Document:

Exhibit 10.2 Amended and Restated Declaration of Trust

    

     

    

     

    AMENDED
      AND RESTATED TRUST AGREEMENT

     

    Among

     

    

     

    READING
      INTERNATIONAL, INC.,

     

    as
      Depositor

     

    

     

    WELLS
      FARGO BANK, N.A.,

     

    as
      Property Trustee

     

    

     

     WELLS
      FARGO DELAWARE TRUST COMPANY,

     

    as
      Delaware Trustee

     

    

     

    and

     

    THE
      ADMINISTRATIVE TRUSTEES NAMED HEREIN

     

    as
      Administrative Trustees

     

    

     

    __________________________________

     

    Dated
      as
      of February 5, 2007

     

    

     

    __________________________________

     

    

     

    READING
      INTERNATIONAL TRUST I

     

    
      
        
        

         

      

      
         

        
          

        

      

      
         

        
        

      

    

    CONTENTS

     

    Clause Page

     

    

      
        	
                Clause

              	
                Page

              
	
                ARTICLE
                  I
                  DEFINED TERMS

              	
                1

              
	
                SECTION
                  1.1
                  Definitions

              	
                1

              
	
                ARTICLE
                  II
                  THE TRUST 

              	
                11

              
	
                SECTION
                  2.1
                  Name

              	
                11

              
	
                SECTION
                  2.2
                  Office of the Delaware Trustee; Principal Place of
                  Business

              	
                11

              
	
                SECTION
                  2.3
                  Initial Contribution of Trust Property; Fees, Costs and
                  Expenses

              	
                11

              
	
                SECTION
                  2.4
                  Purposes of Trust

              	
                12

              
	
                SECTION
                  2.5
                  Authorization to Enter into Certain Transactions

              	
                12

              
	
                SECTION
                  2.6
                  Assets of Trust

              	
                15

              
	
                SECTION
                  2.7
                  Title to Trust Property

              	
                15

              
	
                ARTICLE
                  III
                  PAYMENT ACCOUNT; PAYING AGENTS

              	
                15

              
	
                SECTION
                  3.1
                  Payment Account

              	
                15

              
	
                SECTION
                  3.2
                  Appointment of Paying Agents

              	
                16

              
	
                ARTICLE
                  IV
                  DISTRIBUTIONS; REDEMPTION

              	
                16

              
	
                SECTION
                  4.1
                  Distributions

              	
                16

              
	
                SECTION
                  4.2
                  Redemption

              	
                18

              
	
                SECTION
                  4.3
                  Subordination of Common Securities

              	
                20

              
	
                SECTION
                  4.4
                  Payment Procedures

              	
                21

              
	
                SECTION
                  4.5
                  Withholding Tax

              	
                21

              
	
                SECTION
                  4.6
                  Tax Returns and Other Reports

              	
                22

              
	
                SECTION
                  4.7
                  Payment of Taxes, Duties, Etc. of the Trust

              	
                22

              
	
                SECTION
                  4.8
                  Payments under Indenture or Pursuant to Direct Actions

              	
                22

              
	
                SECTION
                  4.9
                  Exchanges

              	
                22

              
	
                SECTION
                  4.10
                  Calculation Agent

              	
                23

              
	
                SECTION
                  4.11
                  Certain Accounting Matters

              	
                23

              
	
                ARTICLE
                  V
                  SECURITIES

              	
                24

              
	
                SECTION
                  5.1
                  Initial Ownership

              	
                24

              
	
                SECTION
                  5.2
                  Authorized Trust Securities

              	
                25

              
	
                SECTION
                  5.3
                  Issuance of the Common Securities; Subscription and Purchase of
                  Notes

              	
                25

              
	
                SECTION
                  5.4
                  The Securities Certificates

              	
                25

              
	
                SECTION
                  5.5
                  Rights of Holders

              	
                26

              
	
                SECTION
                  5.6
                  Book-Entry Preferred Securities

              	
                26

              
	
                SECTION
                  5.7
                  Registration of Transfer and Exchange of Preferred Securities
                  Certificates

              	
                28

              
	
                SECTION
                  5.8
                  Mutilated, Destroyed, Lost or Stolen Securities
                  Certificates

              	
                29

              
	
                SECTION
                  5.9
                  Persons Deemed Holders

              	
                30

              
	
                SECTION
                  5.10
                  Cancellation

              	
                30

              
	
                SECTION
                  5.11
                  Ownership of Common Securities by Depositor

              	
                31

              
	
                SECTION
                  5.12
                  Restricted Legends

              	
                31

              
	
                SECTION
                  5.13
                  Form of Certificate of Authentication

              	
                33

              
	
                ARTICLE
                  VI
                  MEETINGS; VOTING; ACTS OF HOLDERS

              	
                34

              
	
                SECTION
                  6.1
                  Notice of Meetings

              	
                34

              
	
                SECTION
                  6.2
                  Meetings of Holders of the Preferred Securities

              	
                34

              
	
                SECTION
                  6.3
                  Voting Rights

              	
                34

              
	
                SECTION
                  6.4
                  Proxies, Etc.

              	
                34

              
	
                SECTION
                  6.5
                  Holder Action by Written Consent

              	
                35

              
	
                SECTION
                  6.6
                  Record Date for Voting and Other Purposes

              	
                35

              
	
                SECTION
                  6.7
                  Acts of Holders

              	
                35

              
	
                SECTION
                  6.8
                  Inspection of Records

              	
                36

              
	
                SECTION
                  6.9
                  Limitations on Voting Rights

              	
                36

              
	
                SECTION
                  6.10
                  Acceleration of Maturity; Rescission of Annulment; Waivers of Past
                  Defaults

              	
                37

              
	
                ARTICLE
                  VII
                  REPRESENTATIONS AND WARRANTIES

              	
                39

              
	
                SECTION
                  7.1
                  Representations and Warranties of the Property Trustee and the
                  Delaware
                  Trustee

              	
                39

              
	
                SECTION
                  7.2
                  Representations and Warranties of Depositor

              	
                41

              
	
                ARTICLE
                  VIII
                  THE TRUSTEES

              	
                42

              
	
                SECTION
                  8.1
                  Number of Trustees

              	
                42

              
	
                SECTION
                  8.2
                  Property Trustee Required

              	
                42

              
	
                SECTION
                  8.3
                  Delaware Trustee Required

              	
                42

              
	
                SECTION
                  8.4
                  Appointment of Administrative Trustees

              	
                43

              
	
                SECTION
                  8.5
                  Duties and Responsibilities of the Trustees

              	
                43

              
	
                SECTION
                  8.6
                  Notices of Defaults and Extensions

              	
                45

              
	
                SECTION
                  8.7
                  Certain Rights of Property Trustee

              	
                45

              
	
                SECTION
                  8.8
                  Delegation of Power

              	
                47

              
	
                SECTION
                  8.9
                  May Hold Securities

              	
                48

              
	
                SECTION
                  8.10
                  Compensation; Reimbursement; Indemnity

              	
                48

              
	
                SECTION
                  8.11
                  Resignation and Removal; Appointment of Successor

              	
                49

              
	
                SECTION
                  8.12
                  Acceptance of Appointment by Successor

              	
                50

              
	
                SECTION
                  8.13
                  Merger, Conversion, Consolidation or Succession to
                  Business

              	
                50

              
	
                SECTION
                  8.14
                  Not Responsible for Recitals Issuance of Securities &
                  Representations

              	
                51

              
	
                SECTION
                  8.15
                  Property Trustee May File Proofs of Claim

              	
                51

              
	
                SECTION
                  8.16
                  Reports to the Property Trustee

              	
                52

              
	
                ARTICLE
                  IX
                  TERMINATION, LIQUIDATION AND MERGER

              	
                53

              
	
                SECTION
                  9.1
                  Dissolution Upon Expiration Date

              	
                53

              
	
                SECTION
                  9.2
                  Early Termination

              	
                53

              
	
                SECTION
                  9.3
                  Termination

              	
                53

              
	
                SECTION
                  9.4
                  Liquidation

              	
                53

              
	
                SECTION
                  9.5
                  Mergers, Consolidations, Amalgamations or Replacements of
                  Trust

              	
                55

              
	
                ARTICLE
                  X
                  MISCELLANEOUS PROVISIONS

              	
                56

              
	
                SECTION
                  10.1
                  Limitation of Rights of Holders

              	
                56

              
	
                SECTION
                  10.2
                  Agreed Tax Treatment of Trust and Trust Securities

              	
                56

              
	
                SECTION
                  10.3
                  Amendment

              	
                57

              
	
                SECTION
                  10.4
                  Separability

              	
                58

              
	
                SECTION
                  10.5
                  Governing Law

              	
                58

              
	
                SECTION
                  10.6
                  Successors

              	
                59

              
	
                SECTION
                  10.7
                  Headings

              	
                59

              
	
                SECTION
                  10.8
                  Reports, Notices and Demands

              	
                69

              
	
                SECTION
                  10.9
                  Agreement Not to Petition

              	
                60

              
	
                SECTION
                  10.10
                  Counterparts

              	
                60

              

      

    

     

    Exhibit
      A Certificate
      of Trust 

    Exhibit
      B Form
      of
      Common Securities Certificate

    Exhibit
      C Form
      of
      Preferred Securities Certificate

    Exhibit
      D Junior
      Subordinated Indenture

    Exhibit
      E Form
      of
      Transferor Certificate to be Executed by Transferees

    Exhibit
      F Form
      of
      Officer’s Financial Certificate of the Depositor

     

    Schedule
      A Calculation
      of LIBOR

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

        
        

      

    

    This
      Amended and Restated Trust Agreement,
      dated
      as of February 5, 2007, among (i) Reading International, Inc., a Nevada
      corporation (including any successors or permitted assigns, the “Depositor”),
      (ii)
      Wells Fargo Bank, N.A., as property trustee (in such capacity, the “Property
      Trustee”),
      (iii)
      Wells Fargo Delaware Trust Company, as Delaware trustee (in such capacity,
      the
“Delaware
      Trustee”),
      (iv)
      James J. Cotter, an individual, Andrzej Matyczynski, an individual and S. Craig
      Tompkins, an individual, each of whose address is c/o Reading International,
      Inc., 500 Citadel Drive, Suite 300, Commerce, California 90040, as
      administrative trustees (in such capacities, each an “Administrative
      Trustee”
and,
      collectively, the “Administrative
      Trustees”
and,
      together with the Property Trustee and the Delaware Trustee, the “Trustees”)
      and
      (v) the several Holders, as hereinafter defined.

     

    WITNESSETH

     

    WHEREAS,
      the Depositor, and the Delaware Trustee have heretofore created a Delaware
      statutory trust pursuant to the Delaware Statutory Trust Act by entering into
      a
      Trust Agreement, dated as of February 2, 2007 (the “Original
      Trust Agreement”),
      and
      by executing and filing with the Secretary of State of the State of Delaware
      the
      Certificate of Trust, substantially in the form attached as Exhibit
      A;
      and

     

    WHEREAS,
      the Depositor and the Trustees desire to amend and restate the Original Trust
      Agreement in its entirety as set forth herein to provide for, among other
      things, (i) the issuance of the Common Securities by the Trust to the Depositor,
      (ii) the issuance and sale of the Preferred Securities by the Trust pursuant
      to
      the Purchase Agreement and (iii) the acquisition by the Trust from the Depositor
      of all of the right, title and interest in and to the Notes (as hereinafter
      defined);

     

    Now,
      THEREFORE, in consideration of the agreements and obligations set forth herein
      and for other good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, each party, for the benefit of the other parties
      and for the benefit of the Holders, hereby amends and restates the Original
      Trust Agreement in its entirety and agrees as follows:

     

    ARTICLE
      I

     

    DEFINED
      TERMS

     

    SECTION
      1.1 Definitions.

     

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

     

    (a) the
      terms
      defined in this Article I have the meanings assigned to them in this Article
      I;

     

    (b) the
      words
“include”, “includes” and “including” shall be deemed to be followed by the
      phrase “without limitation”;

     

    (c) all
      accounting terms used but not defined herein have the meanings assigned to
      them
      in accordance with United States generally accepted accounting
      principles;

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    (d) unless
      the context otherwise requires, any reference to an “Article”, a “Section”, a
“Schedule” or an “Exhibit” refers to an Article, a Section, a Schedule or an
      Exhibit, as the case may be, of or to this Trust Agreement;

     

    (e) the
      words
“hereby”, “herein”, “hereof’ and “hereunder” and other words of similar import
      refer to this Trust Agreement as a whole and not to any particular Article,
      Section or other subdivision;

     

    (f) a
      reference to the singular includes the plural and vice versa; and

     

    (g) the
      masculine, feminine or neuter genders used herein shall include the masculine,
      feminine and neuter genders.

     

    “Act”
has
      the
      meaning specified in Section
      6.7.

     

    “Additional
      Interest”
has
      the
      meaning specified in Section
      1.1
      of the
      Indenture.

     

    “Additional
      Interest Amount”
means,
      with respect to Trust Securities of a given Liquidation Amount and/or a given
      period, the amount of Additional Interest paid by the Depositor on a Like Amount
      of Notes for such period.

     

    “Additional
      Taxes”
has
      the
      meaning specified in Section
      1.1
      of the
      Indenture. 

     

    “Additional
      Tax Sums”
has
      the
      meaning specified in Section
      10.5
      of the
      Indenture.

     

    “Administrative
      Trustee”
means
      each of the Persons identified as an “Administrative Trustee” in the preamble to
      this Trust Agreement, solely in each such Person’s capacity as Administrative
      Trustee of the Trust and not in such Person’s individual capacity, or any
      successor Administrative Trustee appointed as herein provided.

     

    “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.

     

    “Applicable
      Depositary Procedures”
means,
      with respect to any transfer or transaction involving a Book-Entry Preferred
      Security, the rules and procedures of the Depositary for such Book-Entry
      Preferred Security, in each case to the extent applicable to such transaction
      and as in effect from time to time.

     

    “Bankruptcy
      Event”
means,
      with respect to any Person:

     

    (a) the
      entry
      of a decree or order by a court having jurisdiction in the premises (i) judging
      such Person a bankrupt or insolvent, (ii) approving as properly filed a petition
      seeking reorganization, arrangement, adjudication or composition of or in
      respect of such Person under any applicable federal or state
      bankruptcy,

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    insolvency,
      reorganization or other similar law, (iii) appointing a custodian, receiver,
      liquidator, assignee, trustee, sequestrator or other similar official of such
      Person or of any substantial part of its property or (iv) ordering the winding
      up or liquidation of its affairs, and the continuance of any such decree or
      order unstayed and in effect for a period of sixty (60) consecutive days;
      or

     

    (b) the
      institution by such Person of proceedings to be adjudicated a bankrupt or
      insolvent, or the consent by it to the institution of bankruptcy or insolvency
      proceedings against it, or the filing by it of a petition or answer or consent
      seeking reorganization or relief under any applicable federal or state
      bankruptcy, insolvency, reorganization or other similar law, or the consent
      by
      it to the filing of any such petition or to the appointment of a custodian,
      receiver, liquidator, assignee, trustee, sequestrator or similar official of
      such Person 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 be adjudicated a bankrupt or insolvent, or the taking of corporate action
      by
      such Person in furtherance of any such action.

     

    “Bankruptcy
      Laws”
      means
      all federal and state bankruptcy, insolvency, reorganization and other similar
      laws, including the United States Bankruptcy Code.

     

    “Book-Entry
      Preferred Security”
      means a
      Preferred Security, the ownership and transfers of which shall be made through
      book entries by a Depositary.

     

    “Business
      Day”
      means a
      day other than (a) a Saturday or Sunday, (b) a day on which banking institutions
      in the City of New York are authorized or required by law or executive order
      to
      remain closed or (c) a day on which the Corporate Trust Office is closed for
      business.

     

    “Calculation
      Agent”
      has the
      meaning specified in Section
      4.10.

     

    “Closing
      Date”
      has the
      meaning specified in the Purchase Agreement. 

     

    “Code”
means
      the United States Internal Revenue Code of 1986, as amended.

     

    “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
      Trust Agreement such Commission is not existing and performing the duties
      assigned to it, then the body performing such duties at such time.

     

    “Common
      Securities Certificate”
      means a
      certificate evidencing ownership of Common Securities, substantially in the
      form
      attached as Exhibit
      B.

     

    “Common
      Securities Subscription Agreement” means
      that certain Common Securities Subscription Agreement dated of even date
      herewith by and between the Depositor and the Trust.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    “Common
      Security”
      means an
      undivided beneficial interest in the assets of the Trust, having a Liquidation
      Amount of $1,000 and having the rights provided therefor in this Trust
      Agreement.

     

    “Corporate
      Trust Office”
      means
      the principal office of the Property Trustee at which any particular time its
      corporate trust business shall be administered, which office at the date of
      this
      Trust Agreement is located at 919 North Market Street, Suite 700, Wilmington,
      Delaware 19801 Attn: Corporate Trust Services - Reading International Trust
      I.

     

    “Definitive
      Preferred Securities Certificates”
      means
      Preferred Securities issued in certificated, fully registered form that are
      not
      Global Preferred Securities.

     

    “Delaware
      Statutory Trust Act”
      means
      Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code § 3801 et seq., or any
      successor statute thereto, in each case as amended from time to
      time.

     

    “Delaware
      Trustee”
      means
      the Person identified as the “Delaware Trustee” in the preamble to this Trust
      Agreement, solely in its capacity as Delaware Trustee of the Trust and not
      in
      its individual capacity, or its successor in interest in such capacity, or
      any
      successor Delaware Trustee appointed as herein provided.

     

    “Depositary”
      means an
      organization registered as a clearing agency under the Exchange Act that is
      designated as Depositary by the Depositor or any successor thereto. DTC will
      be
      the initial Depositary.

     

    “Depositary
      Participant”
      means a
      broker, dealer, bank, other financial institution or other Person for whom
      from
      time to time the Depositary effects book-entry transfers and pledges of
      securities deposited with the Depositary.

     

    “Depositor”
      has the
      meaning specified in the preamble to this Trust Agreement and any successors
      and
      permitted assigns.

     

    “Depositor
      Affiliate”
      has the
      meaning specified in Section
      4.9.
      

     

    “Distribution
      Date”
      has the
      meaning specified in Section
      4.1(a)(i).

     

    “Distributions”
      means
      amounts payable in respect of the Trust Securities as provided in Section
      4.1.

     

    “DTC”
      means
      The Depository Trust Company, a New York corporation, or any successor
      thereto.

     

    “Early
      Termination Event”
      has the
      meaning specified in Section
      9.2.

     

    “Event
      of Default”
      means
      any one of the following events (whatever the reason for such event and whether
      it shall be voluntary or involuntary or be effected by operation of law or
      pursuant to any judgment, decree or order of any court or any order, rule or
      regulation of any administrative or governmental body):

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    
      (a)
        the
        occurrence of a Note Event of Default; or

       

      (b)
        default by the Trust in the payment of any Distribution when it becomes due
        and
        payable, and continuation of such default for a period of thirty (30) days;
        or

       

    

    (c)
      default by the Trust in the payment of any Redemption Price of any Trust
      Security when it becomes due and payable; or

     

    (d)
      default in the performance, or breach, in any material respect of any covenant
      or warranty of the Trustees in this Trust Agreement (other than those specified
      in clause (b) or (c) above) and continuation of such default or breach for
      a
      period of thirty (30) days after there has been given, by registered or
      certified mail, to the Trustees and to the Depositor by the Holders of at least
      twenty five percent (25%) in aggregate Liquidation Amount of the Outstanding
      Preferred Securities a written notice specifying such default or breach and
      requiring it to be remedied and stating that such notice is a “Notice
      of Default”
      hereunder; or

     

    (e)
      the
      occurrence of a Bankruptcy Event with respect to the Property Trustee if a
      successor Property Trustee has not been appointed within ninety (90) days
      thereof.

     

    “Exchange
      Act”
      means
      the Securities Exchange Act of 1934, and any successor statute thereto, in
      each
      case as amended from time to time.

     

    “Expiration
      Date”
      has the
      meaning specified in Section
      9.1.

     

    “Fiscal
      Year”
      shall be
      the fiscal year of the Trust, which shall be the calendar year, or such other
      period as is required by the Code.

     

    “Fixed
      Rate Period”
      shall
      mean the period through the Interest Payment Date in April, 2012.

     

    “Global
      Preferred Security”
      means a
      Preferred Securities Certificate evidencing ownership of Book-Entry Preferred
      Securities.

     

    “Holder”
      means a
      Person in whose name a Trust Security or Trust Securities are registered in
      the
      Securities Register; any such Person shall be deemed to be a beneficial owner
      within the meaning of the Delaware Statutory Trust Act.

     

    “Indemnified
      Person”
      has the
      meaning specified in Section
      8.10(c).

     

    “Indenture”
      means
      the Junior Subordinated Indenture executed and delivered by the Depositor,
      Reading NZ and the Note Trustee contemporaneously with the execution and
      delivery of this Trust Agreement, for the benefit of the holders of the Notes,
      a
      copy of which is attached hereto as Exhibit
      D,
      as
      amended or supplemented from time to time.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    “Indenture
      Redemption Price”
      means
      the Optional Note Redemption Price or the Special Note Redemption Price, as
      applicable.

     

    “Interest
      Payment Date”
      has the
      meaning specified in Section
      1.1
      of the
      Indenture.

     

    “Investment
      Company Act”
      means
      the Investment Company Act of 1940, or any successor statute thereto, in each
      case as amended from time to time.

     

    “Investment
      Company Event”
      has the
      meaning specified in Section
      1.1
      of the
      Indenture. “LIBOR” has the meaning specified in Schedule
      A.

     

    “Junior
      Subordinated Note Purchase Agreement” means
      that certain Junior Subordinated Note Purchase Agreement dated of even date
      herewith by and among the Depositor, Reading NZ and the Trust.

     

    “LIBOR
      Business Day”
      has the
      meaning specified in Schedule
      A.

     

    “LIBOR
      Determination Date”
      has the
      meaning specified in Schedule
      A.

     

    “Lien”
      means
      any lien, pledge, charge, encumbrance, mortgage, deed of trust, adverse
      ownership interest, hypothecation, assignment, security interest or preference,
      priority or other security agreement or preferential arrangement of any kind
      or
      nature whatsoever.

     

    “Like
      Amount”
      means
      (a) with respect to a redemption of any Trust Securities, Trust Securities
      having a Liquidation Amount equal to the principal amount of Notes to be
      contemporaneously redeemed or paid at maturity in accordance with the Indenture,
      the proceeds of which will be used to pay the Redemption Price of such Trust
      Securities, (b) with respect to a distribution of Notes to Holders of Trust
      Securities in connection with a dissolution of the Trust, Notes having a
      principal amount equal to the Liquidation Amount of the Trust Securities of
      the
      Holder to whom such Notes are distributed, (c) with respect to any distribution
      of Additional Interest Amounts to Holders of Trust Securities, Notes having
      a
      principal amount equal to the Liquidation Amount of the Trust Securities in
      respect of which such distribution is made and (d) with respect to any exchange
      of Preferred Securities owned or held by a Depositor Affiliate, Notes having
      a
      principal amount equal to the liquidation amount of the Preferred Securities
      in
      respect of which such distribution is made.

     

    “Liquidation
      Amount”
      means
      the stated amount of $1,000 per Trust Security.

     

    “Liquidation
      Date”
      means
      the date on which assets are to be distributed to Holders in accordance with
      Section
      9.4(a)
      hereunder following dissolution of the Trust.

     

    “Liquidation
      Distribution”
      has the
      meaning specified in Section
      9.4(d).

     

    “Majority
      in Liquidation Amount”
      means
      Common or Preferred Securities, as the case may be, representing more than
      fifty
      percent (50%) of the aggregate Liquidation Amount of all (or a specified group
      of) then Outstanding Common or Preferred Securities, as the case may
      be.

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    “Note
      Event of Default”
      means
      any “Event
      of Default”
      specified in Section
      5.1
      of the
      Indenture.

     

    “Note
      Redemption Date”
      means,
      with respect to any Notes to be redeemed under the Indenture, the date fixed
      for
      redemption of such Notes under the Indenture.

     

    “Note
      Trustee”
      means
      the Person identified as the “Trustee”
      in the
      Indenture, solely in its capacity as Trustee pursuant to the Indenture and
      not
      in its individual capacity, or its successor in interest in such capacity,
      or
      any successor Trustee appointed as provided in the Indenture.

     

    “Notes”
      means
      the Junior Subordinated Notes of the Depositor and Reading NZ, as co-obligors,
      issued pursuant to the Indenture.

     

    “Officers’
      Certificate”
      means a
      certificate signed by the Chief Executive Officer, the President or a Vice
      President, and by the Chief Financial Officer, Treasurer or an Assistant
      Treasurer, the Secretary or Assistant Secretary of the Depositor, and delivered
      to the Trustees. Any Officers’ Certificate delivered with respect to compliance
      with a condition or covenant provided for in this Trust Agreement (other than
      the certificate provided pursuant to Section
      8.16
      which is
      not an Officers’ Certificate) shall include:

     

    (a)
      a
      statement by each officer signing the Officers’ Certificate that such officer
      has read the covenant or condition and the definitions relating
      thereto;

     

    (b)
      a
      brief statement of the nature and scope of the examination or investigation
      undertaken by such officer in rendering the Officers’ Certificate;

     

    (c)
      a
      statement that such officer has made such examination or investigation as,
      in
      such officer’s opinion, is necessary to enable such officer to express an
      informed opinion as to whether or not such covenant or condition has been
      complied with; and

     

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

     

    “Operative
      Documents”
      means
      the Purchase Agreement, the Indenture, the Trust Agreement, the Notes, the
      Common Securities Subscription Agreement, the Junior Subordinated Note Purchase
      Agreement and the Trust Securities.

     

    “Opinion
      of Counsel”
      means a
      written opinion of counsel, who may be counsel for, or an employee of, the
      Depositor or any Affiliate of the Depositor.

     

    “Optional
      Note Redemption Price”
      means,
      with respect to any Note to be redeemed on any Redemption Date under the
      Indenture, an amount equal to one hundred percent (100%) of the outstanding
      principal amount of such Note, together with accrued interest, including
      any

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    Additional
      Interest (to the extent legally enforceable), thereon through but not including
      the date fixed as such Redemption Date.

     

    “Optional
      Redemption Price”
      means,
      with respect to any Trust Security, an amount equal to one hundred percent
      (100%) of the Liquidation Amount of such Trust Security on the Redemption Date,
      plus accumulated and unpaid Distributions to the Redemption Date, plus the
      related amount of the premium, if any, and/or accrued interest, including
      Additional Interest, if any, thereon paid by the Depositor upon the concurrent
      redemption or payment at maturity of a Like Amount of Notes.

     

    “Original
      Issue Date”
      means
      the date of original issuance of the Trust Securities.

     

    “Original
      Trust Agreement”
      has the
      meaning specified in the recitals to this Trust Agreement.

     

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

     

    (a)
      Trust
      Securities theretofore canceled by the Property Trustee or delivered to the
      Property Trustee for cancellation;

     

    (b)
      Trust
      Securities for which payment or redemption money in the necessary amount has
      been theretofore deposited with the Property Trustee or any Paying Agent in
      trust for the Holders of such Trust Securities; provided, that if such Trust
      Securities are to be redeemed, notice of such redemption has been duly given
      pursuant to this Trust Agreement; and

     

    (c)
      Trust
      Securities that have been paid or in exchange for or in lieu of which other
      Trust Securities have been executed and delivered pursuant to the provisions
      of
      this Trust Agreement, unless proof satisfactory to the Property Trustee is
      presented that any such Trust Securities are held by Holders in whose hands
      such
      Trust Securities are valid, legal and binding obligations of the
      Trust;

     

    provided,
      that in
      determining whether the Holders of the requisite Liquidation Amount of the
      Outstanding Preferred Securities have given any request, demand, authorization,
      direction, notice, consent or waiver hereunder, Preferred Securities owned
      by
      the Depositor, Reading NZ, any Trustee or any Affiliate of the Depositor,
      Reading NZ or of any Trustee shall be disregarded and deemed not to be
      Outstanding, except that (i) in determining whether any Trustee shall be
      protected in relying upon any such request, demand, authorization, direction,
      notice, consent or waiver, only Preferred Securities that such Trustee knows
      to
      be so owned shall be so disregarded and (ii) the foregoing shall not apply
      at
      any time when all of the Outstanding Preferred Securities are owned by the
      Depositor, Reading NZ, one or more of the Trustees and/or any such Affiliate.
      Preferred Securities so owned that have been pledged in good faith may be
      regarded as Outstanding if the pledgee establishes to the satisfaction of the
      Administrative Trustees the

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    pledgee’s
      right so to act with respect to such Preferred Securities and that the pledgee
      is not the Depositor, Reading NZ, any Trustee or any Affiliate of the Depositor,
      Reading NZ or of any Trustee.

     

    “Owner”
      means
      each Person who is the beneficial owner of Book-Entry Preferred Securities
      as
      reflected in the records of the Depositary or, if a Depositary Participant
      is
      not the beneficial owner, then the beneficial owner as reflected in the records
      of the Depositary Participant.

     

    “Paying
      Agent” means
      any
      Person authorized by the Administrative Trustees to pay Distributions or other
      amounts in respect of any Trust Securities on behalf of the Trust.

     

    “Payment
      Account”
      means a
      segregated non-interest-bearing corporate trust account maintained by the
      Property Trustee for the benefit of the Holders in which all amounts paid in
      respect of the Notes will be held and from which the Property Trustee, through
      the Paying Agent, shall make payments to the Holders in accordance
      with
      Sections 3.1,
      4.1
      and
4.2.

     

    “Person”
      means a
      legal person, including any individual, corporation, estate, partnership, joint
      venture, association, joint stock company, company, limited liability company,
      trust, unincorporated association or government, or any agency or political
      subdivision thereof, or any other entity of whatever nature.

     

    “Preferred
      Security”
      means an
      undivided beneficial interest in the assets of the Trust, having a Liquidation
      Amount of $1,000 and having the rights provided therefor in this Trust
      Agreement.

     

    “Preferred
      Securities Certificate”
      means a
      certificate evidencing ownership of Preferred Securities, substantially in
      the
      form attached as Exhibit
      C.

     

    “Property
      Trustee”
      means
      the Person identified as the “Property
      Trustee”
      in the
      preamble to this Trust Agreement, solely in its capacity as Property Trustee
      of
      the Trust and not in its individual capacity, or its successor in interest
      in
      such capacity, or any successor Property Trustee appointed as herein
      provided.

     

    “Purchase
      Agreement”
      means
      the Purchase Agreement executed and delivered by the Trust, the Depositor,
      Reading NZ and Kodiak Warehouse JPM LLC, as purchaser, contemporaneously with
      the execution and delivery of this Trust Agreement, as amended from time to
      time.

     

    “QIB”
      means a
“qualified institutional buyer” as defined in Rule 144A under the Securities Act
      of 1933, as amended.

     

    “QP”
      means a
“qualified purchaser” as defined in Section 2(a)(51) under the Investment
      Company Act of 1940, as amended.

     

    “QIB/QP”
      means a
      QIB that is also a QP.

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    “Reading
      NZ”
means
      Reading New Zealand, Limited, a New Zealand corporation, and any successors
      and
      permitted assigns.

     

    “Redemption
      Date”
      means,
      with respect to any Trust Security to be redeemed, the date fixed for such
      redemption by or pursuant to this Trust Agreement; provided,
      that
      each Note Redemption Date and the stated maturity (or any date of principal
      repayment upon early maturity) of the Notes shall be a Redemption Date for
      a
      Like Amount of Trust Securities.

     

    “Redemption
      Price”
      means
      the Special Redemption Price or Optional Redemption Price, as applicable. If
      the
      Depositor has redeemed the Notes at the Special Note Redemption Price, the
      Trust
      shall redeem the Trust Securities at the Special Redemption Price. If the
      Depositor has redeemed the Notes at the Optional Note Redemption Price, the
      Trust shall redeem the Trust Securities at the Optional Redemption
      Price.

     

    “Reference
      Banks”
      has the
      meaning specified in Schedule
      A.

     

    “Responsible
      Officer”
      means,
      with respect to the Property Trustee, the officer in Corporate Trust Services
      department of the Property Trustee having direct responsibility for the
      administration of this Trust Agreement.

     

    “Securities
      Act”
      means
      the Securities Act of 1933, and any successor statute thereto, in each case
      as
      amended from time to time.

     

    “Securities
      Certificate”
      means
      any one of the Common Securities Certificates or the Preferred Securities
      Certificates.

     

    “Securities
      Register”
      and
“Securities
      Registrar”
      have the
      respective meanings specified in Section
      5.7.

     

    “Special
      Redemption Price”
      means,
      with respect to any Trust Security, an amount equal to one hundred seven and
      one
      half percent (107.5%) of the Liquidation Amount of such Trust Security on the
      Redemption Date, plus accumulated and unpaid Distributions to the Redemption
      Date, plus the related amount of the premium, if any, and/or accrued interest,
      including Additional Interest, if any, thereon paid by the Depositor upon the
      concurrent redemption or payment at maturity of a Like Amount of
      Notes.

     

    “Special
      Note Redemption Price”
      means,
      with respect to any Note to be redeemed on any Redemption Date under the
      Indenture, an amount equal to one hundred seven and one half percent (107.5%)
      of
      the outstanding principal amount of such Note, together with accrued interest,
      including Additional Interest, thereon through but not including the date fixed
      as such Redemption Date.

     

    “Successor
      Securities”
      has the
      meaning specified in Section
      9.5(a).

     

    “Tax
      Event”
      has the
      meaning specified in Section
      1.1
      of the
      Indenture.

     

    “Trust”
      means
      the Delaware statutory trust known as “Reading International Trust I,” which was
      created on February 2, 2007 under the Delaware Statutory Trust Act pursuant
      to
      the

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    Original
      Trust Agreement and the filing of the Certificate of Trust, and continued
      pursuant to this Trust Agreement.

     

    “Trust
      Agreement”
      means
      this Amended and Restated Trust Agreement, as the same may be modified, amended
      or supplemented from time to time in accordance with the applicable provisions
      hereof, including all Schedules and Exhibits.

     

    “Trustees”
      means
      the Administrative Trustees, the Property Trustee and the Delaware Trustee,
      each
      as defined in this Article
      I.

     

    “Trust
      Property”
      means
      (a) the Notes, (b) any cash on deposit in, or owing to, the Payment Account
      and
      (c) all proceeds and rights in respect of the foregoing and any other property
      and assets for the time being held or deemed to be held by the Property Trustee
      pursuant to the trusts of this Trust Agreement.

     

    “Trust
      Security”
      means
      any one of the Common Securities or the Preferred Securities.

     

    

     

    ARTICLE
      II

     

    THE
      TRUST

     

    SECTION
      2.1  Name.

     

    The
      trust
      continued hereby shall be known as “Reading International Trust I”, as such name
      may be modified from time to time by the Administrative Trustees following
      written notice to the Holders of Trust Securities and the other Trustees, in
      which name the Trustees may conduct the business of the Trust, make and execute
      contracts and other instruments on behalf of the Trust and sue and be
      sued.

     

    SECTION
      2.2 Office
      of the Delaware Trustee; Principal Place of Business.

     

    The
      address of the Delaware Trustee in the State of Delaware is 919 North Market
      Street, Suite 700, Wilmington, Delaware 19801, Attn: Corporate Trust Services
      -
      Reading International Trust I, or such other address in the State of Delaware
      as
      the Delaware Trustee may designate by written notice to the Holders, the
      Depositor, the Property Trustee and the Administrative Trustees. The principal
      executive office of the Trust is 500 Citadel Drive, Suite 300, Commerce,
      California 90040, as such address may be changed from time to time by the
      Administrative Trustees following written notice to the Holders and the other
      Trustees.

     

    SECTION
      2.3 Initial
      Contribution of Trust Property; Fees, Costs and Expenses.

     

    The
      Property Trustee acknowledges receipt from the Depositor in connection with
      the
      Original Trust Agreement of the sum of ten dollars ($10), which constituted
      the
      initial Trust Property. The Depositor shall pay all fees, costs and expenses
      of
      the Trust (except with respect to the Trust Securities) as they arise or shall,
      upon request of any Trustee, promptly reimburse such Trustee for any such fees,
      costs and expenses paid by such Trustee. The Depositor shall make no claim
      upon
      the Trust Property for the payment of such fees, costs or expenses.

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    SECTION
      2.4 Purposes
      of Trust.

     

    (a) The
      exclusive purposes and functions of the Trust are to (i) issue and sell Trust
      Securities and use the proceeds from such sale to acquire the Notes, (ii) make
      distributions as provided herein, (iii) enter into and perform its obligations
      under agreements, documents and instructions (including, without limitation,
      the
      Operative Documents to which it is a party) necessary to accomplish (i) and
      (ii)
      and (iv) engage in only those activities necessary or incidental thereto. The
      Delaware Trustee, the Property Trustee and the Administrative Trustees are
      trustees of the Trust, and have all the rights, powers and duties to the extent
      set forth herein. The Trustees hereby acknowledge that they are trustees of
      the
      Trust.

     

    (b) So
      long
      as this Trust Agreement remains in effect, the Trust (or the Trustees acting
      on
      behalf of the Trust) shall not undertake any business, activities or
      transactions except as expressly provided herein or contemplated hereby. In
      particular, the Trust (or the Trustees acting on behalf of the Trust) shall
      not
      (i) acquire any investments or engage in any activities not authorized by this
      Trust Agreement, (ii) sell, assign, transfer, exchange, mortgage, pledge,
      set-off or otherwise dispose of any of the Trust Property or interests therein,
      including to Holders, except as expressly provided herein, (iii) incur any
      indebtedness for borrowed money or issue any other debt, (iv) take or consent
      to
      any action that would result in the placement of a Lien on any of the Trust
      Property, (v) take or consent to any action that would reasonably be expected
      to
      cause the Trust to become taxable as a corporation or classified as other than
      a
      grantor trust for United States federal income tax purposes, (vi) take or
      consent to any action that would cause the Notes to be treated as other than
      indebtedness of the Depositor and Reading NZ for United States federal income
      tax purposes or (vii) take or consent to any action that would cause the Trust
      to be deemed to be an “investment company” required to be registered under the
      Investment Company Act.

     

    SECTION
      2.5 Authorization
      to Enter into Certain Transactions.

     

    (a) The
      Trustees shall conduct the affairs of the Trust in accordance with and subject
      to the terms of this Trust Agreement. In accordance with the following
      provisions (i) and (ii), the Trustees shall have the authority to enter into
      all
      transactions and agreements determined by the Trustees to be appropriate in
      exercising the authority, express or implied, otherwise granted to the Trustees,
      under this Trust Agreement, and to perform all acts in furtherance thereof,
      including the following:

     

    (i) As
      among
      the Trustees, each Administrative Trustee shall severally have the power and
      authority to act on behalf of the Trust with respect to the following
      matters:

     

    (A) the
      issuance and sale of the Trust Securities;

     

    (B) to
      cause
      the Trust to enter into, and to execute, deliver and perform on behalf of the
      Trust, such agreements as may be necessary or desirable in connection with
      the
      purposes and function of the Trust, including, without limitation, the Operative
      Documents to which it is a party;

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    (C) assisting
      in the sale of the Preferred Securities in one or more transactions exempt
      from
      registration under the Securities Act, and in compliance with applicable state
      securities or blue sky laws;

     

    (D) assisting
      in the sending of notices (other than notices of default) and other information
      regarding the Trust Securities and the Notes to the Holders in accordance with
      this Trust Agreement;

     

    (E) the
      appointment of a Paying Agent and Securities Registrar in accordance with this
      Trust Agreement;

     

    (F) execution
      of the Trust Securities on behalf of the Trust in accordance with this Trust
      Agreement;

     

    (G) execution
      and delivery of closing certificates, if any, pursuant to the Purchase Agreement
      and application for a taxpayer identification number for the Trust;

     

    (H) preparation
      and filing of all applicable tax returns and tax information reports that are
      required to be filed on behalf of the Trust;

     

    (I) establishing
      a record date with respect to all actions to be taken hereunder that require
      a
      record date to be established, except as provided in Section
      6.10(a);

     

    (J) unless
      otherwise required by the Delaware Statutory Trust Act to execute on behalf
      of
      the Trust (either acting alone or together with the other Administrative
      Trustees) any documents that such Administrative Trustee has the power to
      execute pursuant to this Trust Agreement; and

     

    (K) the
      taking of any action incidental to the foregoing as such Administrative Trustee
      may from time to time determine is necessary or advisable to give effect to
      the
      terms of this Trust Agreement.

     

    (L) to
      cause
      the Trust, during any period in which it is not subject to and in compliance
      with Section 13 or 15(d) of the Exchange Act, or it is not exempt from such
      reporting requirements pursuant to and in compliance with Rule 12g3-2(b) under
      the Exchange Act, to provide each holder of the Securities and to each
      prospective purchaser (as designated by such holder) of the Securities upon
      the
      request of such holder or prospective purchaser, any information required to
      be
      provided by Rule 144A(d)(4) under the Securities Act, if applicable.

     

    (ii) As
      among
      the Trustees, the Property Trustee shall have the power, duty and authority
      to
      act on behalf of the Trust with respect to the following matters:

     

    (A) the
      receipt and holding of legal title of the Notes;

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    (B) the
      establishment of the Payment Account;

     

    (C) the
      collection of interest, principal and any other payments made in respect of
      the
      Notes and the holding of such amounts in the Payment Account;

     

    (D) the
      distribution through the Paying Agent of amounts distributable to the Holders
      in
      respect of the Trust Securities;

     

    (E) the
      exercise of all of the rights, powers and privileges of a holder of the Notes
      in
      accordance with the terms of this Trust Agreement;

     

    (F) the
      sending of notices of default and other information regarding the Trust
      Securities and the Notes to the Holders in accordance with this Trust
      Agreement;

     

    (G) the
      distribution of the Trust Property in accordance with the terms of this Trust
      Agreement;

     

    (H) to
      the
      extent provided in this Trust Agreement, the winding up of the affairs of and
      liquidation of the Trust, provided that the Administrative Trustees shall have
      the power, duty and authority to act on behalf of the Trust with respect to
      the
      preparation, execution and filing of the certificate of cancellation of the
      Trust with the Secretary of State of the State of Delaware; and

     

    (I) the
      taking of any action incidental to the foregoing as the Property Trustee may
      from time to time determine is necessary or advisable to give effect to the
      terms of this Trust Agreement and protect and conserve the Trust Property for
      the benefit of the Holders (without consideration of the effect of any such
      action on any particular Holder).

     

    (b) In
      connection with the issue and sale of the Preferred Securities, the Depositor
      shall have the right and responsibility to assist the Trust with respect to,
      or
      effect on behalf of the Trust, the following (and any actions taken by the
      Depositor in furtherance of the following prior to the date of this Trust
      Agreement are hereby ratified and confirmed in all respects):

     

    (i) the
      negotiation of the terms of, and the execution and delivery of, the Purchase
      Agreement providing for the sale of the Preferred Securities in one or more
      transactions exempt from registration under the Securities Act, and in
      compliance with applicable state securities or blue sky laws; and

     

    (ii) the
      taking of any other actions necessary or desirable to carry out any of the
      foregoing activities.

     

    (c) Notwithstanding
      anything herein to the contrary, the Administrative Trustees are authorized
      and
      directed to conduct the affairs of the Trust and authorized to operate the
      Trust
      so that the Trust will not be taxable as a corporation or classified as other
      than a grantor trust for United States federal income tax purposes, so that
      the
      Notes will be treated as indebtedness of the Depositor and Reading NZ for United
      States federal income tax purposes and so that the

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    Trust
      will not be deemed to be an “investment company” required to be registered under
      the Investment Company Act. In respect thereof, each Administrative Trustee
      is
      authorized to take any action, not inconsistent with applicable law, the
      Certificate of Trust or this Trust Agreement, that such Administrative Trustee
      determines in his or her discretion to be necessary or desirable for such
      purposes, as long as such action does not adversely affect in any material
      respect the interests of the Holders of the Outstanding Preferred Securities.
      In
      no event shall the Administrative Trustees be liable to the Trust or the Holders
      for any failure to comply with this Section 2.5 to the extent that such failure
      results solely from a change in law or regulation or in the interpretation
      thereof.

     

    (d) Any
      action taken by a Trustee in accordance with its powers shall constitute the
      act
      of and serve to bind the Trust. In dealing with any Trustee acting on behalf
      of
      the Trust, no Person shall be required to inquire into the authority of such
      Trustee to bind the Trust. Persons dealing with the Trust are entitled to rely
      conclusively on the power and authority of any Trustee as set forth in this
      Trust Agreement.

     

    SECTION
      2.6 Assets
      of Trust.

     

    The
      assets of the Trust shall consist of the Trust Property.

     

    SECTION
      2.7 Title
      to Trust Property.

     

    (a) Legal
      title to all Trust Property shall be vested at all times in the Property Trustee
      and shall be held and administered by the Property Trustee in trust for the
      benefit of the Trust and the Holders in accordance with this Trust
      Agreement.

     

    (b) The
      Holders shall not have any right or title to the Trust Property other than
      the
      undivided beneficial interest in the assets of the Trust conferred by their
      Trust Securities and they shall have no right to call for any partition or
      division of property, profits or rights of the Trust except as described below.
      The Trust Securities shall be personal property giving only the rights
      specifically set forth therein and in this Trust Agreement.

     

    ARTICLE
      III

     

    PAYMENT
      ACCOUNT; PAYING AGENTS

     

    SECTION
      3.1 Payment
      Account.

     

    (a) On
      or
      prior to the Closing Date, the Property Trustee shall establish the Payment
      Account. The Property Trustee and the Paying Agent shall have exclusive control
      and sole right of withdrawal with respect to the Payment Account for the purpose
      of making deposits in and withdrawals from the Payment Account in accordance
      with this Trust Agreement. All monies and other property deposited or held
      from
      time to time in the Payment Account shall be held by the Property Trustee in
      the
      Payment Account for the exclusive benefit of the Holders and for Distribution
      as
      herein provided.

     

    (b) The
      Property Trustee shall deposit in the Payment Account, promptly upon receipt,
      all payments of principal of or interest on, and any other payments with respect
      to, the

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

    Notes.
      Amounts held in the Payment Account shall not be invested by the Property
      Trustee pending distribution thereof.

     

    SECTION
      3.2 Appointment
      of Paying Agents.

     

    The
      Paying Agent shall initially be the Property Trustee. The Paying Agent shall
      make Distributions to Holders from the Payment Account and shall report the
      amounts of such Distributions to the Property Trustee and the Administrative
      Trustees. Any Paying Agent shall have the revocable power to withdraw funds
      from
      the Payment Account solely for the purpose of making the Distributions referred
      to above. The Administrative Trustees may revoke such power and remove the
      Paying Agent in their sole discretion. Any Person acting as Paying Agent shall
      be permitted to resign as Paying Agent upon thirty (30) days’ written notice to
      the Administrative Trustees and the Property Trustee. If the Property Trustee
      shall no longer be the Paying Agent or a successor Paying Agent shall resign
      or
      its authority to act be revoked, the Administrative Trustees shall appoint
      a
      successor (which shall be a bank or trust company) to act as Paying Agent.
      Such
      successor Paying Agent appointed by the Administrative Trustees shall execute
      and deliver to the Trustees an instrument in which such successor Paying Agent
      shall agree with the Trustees that as Paying Agent, such successor Paying Agent
      will hold all sums, if any, held by it for payment to the Holders in trust
      for
      the benefit of the Holders entitled thereto until such sums shall be paid to
      such Holders. The Paying Agent shall return all unclaimed funds to the Property
      Trustee and upon removal of a Paying Agent such Paying Agent shall also return
      all funds in its possession to the Property Trustee. The provisions of
Article
      VIII
      shall
      apply to the Property Trustee also in its role as Paying Agent, for so long
      as
      the Property Trustee shall act as Paying Agent and, to the extent applicable,
      to
      any other Paying Agent appointed hereunder. Any reference in this Trust
      Agreement to the Paying Agent shall include any co-paying agent unless the
      context requires otherwise.

     

    ARTICLE
      IV

     

    DISTRIBUTIONS;
      REDEMPTION

     

    SECTION
      4.1 Distributions.

     

    (a) The
      Trust
      Securities represent undivided beneficial interests in the Trust Property,
      and
      Distributions (including any Additional Interest Amounts) will be made on the
      Trust Securities at the rate and on the dates that payments of interest
      (including any Additional Interest) are made on the Notes.
      Accordingly:

     

    (i) Distributions
      on the Trust Securities shall be cumulative, and shall accumulate whether or
      not
      there are funds of the Trust available for the payment of Distributions.
      Distributions shall accumulate from February 5, 2007, and, except as provided
      in
      clause (ii) below, shall be payable quarterly in arrears on January 30, April
      30, July 30 and October 30 of each year, commencing on April 30, 2007. If any
      date on which a Distribution is otherwise payable on the Trust Securities is
      not
      a Business Day, then the payment of such Distribution shall be made on the
      next
      succeeding Business Day (and no interest shall accrue in respect of the amounts
      whose payment is so delayed for the period from and after each such date until
      the next succeeding Business Day), except that, if such Business Day falls
      in
      the next succeeding calendar year, such payment shall 

     

    
      
         

      

      
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      be
        made
        on the immediately preceding Business Day, in each case, with the same force
        and
        effect as if made on such date (each date on which Distributions are payable
        in
        accordance with this Section
        4.1(a)(i),
        a
“Distribution
        Date”);

    

     

    (ii) Reserved.

     

    (iii) Distributions
      shall accumulate in respect of the Trust Securities at a fixed rate, equal
      to
      9.22% per annum of
      the
      Liquidation Amount of the Trust Securities, to but excluding the Interest
      Payment Date on April 30, 2012, and thereafter at a variable rate, reset
      quarterly, equal to LIBOR plus 4.00% per annum of the Liquidation Amount of
      the
      Trust Securities, such rate being the rate of interest payable on the Notes.
      LIBOR shall be determined by the Calculation Agent in accordance with
Schedule
      A.
      During
      the Fixed Rate Period, the amount of Distributions payable for any full
      Distribution period shall be computed on the basis of a three hundred sixty
      (360)-day year of twelve (12) thirty (30)-day months and the amount payable
      for
      any partial period shall be computed on the basis of the actual number of days
      elapsed in a three hundred sixty (360)-day year of twelve (12) thirty (30)-day
      months. Upon expiration of the Fixed Rate Period, the amount of Distributions
      payable for any Distribution period shall be computed on the basis of a three
      hundred sixty (360)-day year and the actual number of days elapsed in the
      relevant Distribution period. The amount of Distributions payable for any period
      shall include any Additional Interest Amounts in respect of such period;
      and

     

    (iv) Distributions
      on the Trust Securities shall be made by the Paying Agent from the Payment
      Account and shall be payable on each Distribution Date only to the extent that
      the Trust has funds then on hand and available in the Payment Account for the
      payment of such Distributions.

     

    (b) Distributions
      on the Trust Securities with respect to a Distribution Date shall be payable
      to
      the Holders thereof as they appear on the Securities Register for the Trust
      Securities at the close of business on the relevant record date, which shall
      be
      at the close of business on the fifteenth day (whether or not a Business Day)
      preceding the relevant Distribution Date. Distributions payable on any Trust
      Securities that are not punctually paid on any Distribution Date as a result
      of
      the Depositor having failed to make an interest payment under the Notes will
      cease to be payable to the Person in whose name such Trust Securities are
      registered on the relevant record date, and such defaulted Distributions and
      any
      Additional Interest Amounts will instead be payable to the Person in whose
      name
      such Trust Securities are registered on the special record date, or other
      specified date for determining Holders entitled to such defaulted Distribution
      and Additional Interest Amount, established in the same manner, and on the
      same
      date, as such is established with respect to the Notes under the
      Indenture.

     

    (c) As
      a
      condition to the payment of any principal of or interest on the Trust Securities
      without the imposition of withholding tax, the Administrative Trustees shall
      require the previous delivery of properly completed and signed applicable U.S.
      federal income tax certifications (generally, an Internal Revenue Service Form
      W-9 (or applicable successor form) in the case of a person that is a “United
      States person” within the meaning of Section 7701(a)(30) of the Code or an
      Internal Revenue Service Form W-8 BEN (or applicable successor form) in the
      case
      of a person that is not a “United States person” within the meaning of
      Section

     

    
      
         

      

      
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    7701(a)(30)
      of the Code) and any other certification acceptable to it to enable the Property
      Trustee or any Paying Agent to determine their respective duties and liabilities
      with respect to any taxes or other charges that they may be required to pay,
      deduct or withhold in respect of such Trust Securities.

     

    SECTION
      4.2 Redemption.

     

    (a) On
      each
      Note Redemption Date and on the stated maturity (or any date of principal
      repayment upon early maturity) of the Notes and on each other date on (or in
      respect of) which any principal on the Notes is repaid, the Trust will be
      required to redeem a Like Amount of Trust Securities at the Redemption
      Price.

     

    (b) Notice
      of
      redemption shall be given by the Property Trustee by first-class mail, postage
      prepaid, mailed not less than thirty (30) nor more than sixty (60) days prior
      to
      the Redemption Date to each Holder of Trust Securities to be redeemed, at such
      Holder’s address appearing in the Securities Register. All notices of redemption
      shall state:

     

    (i) the
      Redemption Date;

     

    (ii) the
      Redemption Price or, if the Redemption Price cannot be calculated prior to
      the
      time the notice is required to be sent, the estimate of the Redemption Price
      provided pursuant to the Indenture, as calculated by the Depositor, together
      with a statement that it is an estimate and that the actual Redemption Price
      will be calculated by the Calculation Agent on the fifth Business Day prior
      to
      the Redemption Date (and if an estimate is provided, a further notice shall
      be
      sent of the actual Redemption Price on the date that such Redemption Price
      is
      calculated);

     

    (iii) if
      less
      than all the Outstanding Trust Securities are to be redeemed, the identification
      (and, in the case of partial redemption, the respective amounts) and Liquidation
      Amounts of the amount of and particular Trust Securities to be
      redeemed;

     

    (iv)
      that
      on the Redemption Date, the Redemption Price will become due and payable upon
      each such Trust Security, or portion thereof, to be redeemed and that
      Distributions thereon will cease to accumulate on such Trust Security or such
      portion, as the case may be, on and after said date, except as provided in
      Section
      4.2(d);

     

    (v) the
      place
      or places where the Trust Securities are to be surrendered for the payment
      of
      the Redemption Price; and

     

    (vi) such
      other provisions as the Property Trustee deems relevant.

     

    (c) The
      Trust
      Securities (or portion thereof) redeemed on each Redemption Date shall be
      redeemed at the Redemption Price with the proceeds from the contemporaneous
      redemption or payment at maturity of Notes. Redemptions of the Trust Securities
      (or portion thereof) shall be made and the Redemption Price shall be payable
      on
      each Redemption Date only to the extent that the Trust has funds then on hand
      and available in the Payment Account for the payment of such Redemption Price.
      Under the Indenture, the Notes may be redeemed by the Depositor on any Interest
      Payment Date, at the Depositor’s option, on or after the expiration of the No
      Call

     

    
      
         

      

      
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    Period
      (as defined in the Indenture), in whole or in part, from time to time at the
      Optional Note Redemption Price. The Notes may also be redeemed by the Depositor,
      at its option pursuant to the terms of the Indenture, at any time during the
      No
      Call Period, in whole but not in part, upon the occurrence and during the
      continuation of an Investment Company Event or a Tax Event, at the Special
      Note
      Redemption Price. In addition, a Like Amount of Notes associated with Electing
      Securities (as defined in the Indenture) must be redeemed or defeased in
      accordance with the Indenture, in either case upon the election of at least
      twenty five percent (25%) in aggregate principal amount of the Holders of
      Preferred Securities, to cause the redemption or defeasance of such Notes in
      accordance with the Indenture upon a Change of Control. 

     

    (d) If
      the
      Property Trustee gives a notice of redemption in respect of any Preferred
      Securities, then by 10:00 A.M., New York City time, on the Redemption Date,
      the
      Depositor shall deposit sufficient funds with the Property Trustee to pay the
      Redemption Price. If such deposit has been made by such time, then by 12:00
      noon, New York City time, on the Redemption Date, the Property Trustee will,
      with respect to Book-Entry Preferred Securities, irrevocably deposit with the
      Depositary for such Book-Entry Preferred Securities, to the extent available
      therefor, funds sufficient to pay the applicable Redemption Price and will
      give
      such Depositary irrevocable instructions and authority to pay the Redemption
      Price to the Holders of the Preferred Securities. With respect to Preferred
      Securities that are not Book-Entry Preferred Securities, the Property Trustee
      will irrevocably deposit with the Paying Agent, to the extent available
      therefor, funds sufficient to pay the applicable Redemption Price and will
      give
      the Paying Agent irrevocable instructions and authority to pay the Redemption
      Price to the Holders of the Preferred Securities upon surrender of their
      Preferred Securities Certificates. Notwithstanding the foregoing, Distributions
      payable on or prior to the Redemption Date for any Trust Securities (or portion
      thereof) called for redemption shall be payable to the Holders of such Trust
      Securities as they appear on the Securities Register on the relevant record
      dates for the related Distribution Dates. If notice of redemption shall have
      been given and funds deposited as required, then upon the date of such deposit,
      all rights of Holders holding Trust Securities (or portion thereof) so called
      for redemption will cease, except the right of such Holders to receive the
      Redemption Price and any Distribution payable in respect of the Trust Securities
      on or prior to the Redemption Date, but without interest, and, in the case
      of a
      partial redemption, the right of such Holders to receive a new Trust Security
      or
      Securities of authorized denominations, in aggregate Liquidation Amount equal
      to
      the unredeemed portion of such Trust Security or Securities, and such Securities
      (or portion thereof) called for redemption will cease to be Outstanding. In
      the
      event that any date on which any Redemption Price is payable is not a Business
      Day, then payment of the Redemption Price payable on such date will be made
      on
      the next succeeding Business Day (and no interest shall accrue in respect of
      the
      amounts whose payment is so delayed for the period from and after each such
      date
      until the next succeeding Business Day), except that, if such Business Day
      falls
      in the next succeeding calendar year, such payment shall be made on the
      immediately preceding Business Day, in each case, with the same force and effect
      as if made on such date. In the event that payment of the Redemption Price
      in
      respect of any Trust Securities (or portion thereof) called for redemption
      is
      improperly withheld or refused and not paid by the Trust, or if the Special
      Note
      Redemption Price or Optional Note Redemption Price, as applicable, is improperly
      withheld or refused to be paid by the Depositor pursuant to the Indenture,
      Distributions on such Trust Securities (or portion thereof) will continue to
      accumulate, as set forth in Section
      4.1,
      from
      the Redemption Date originally established by the Trust for such Trust
      Securities (or portion thereof) to the date such 

     

    
      
         

      

      
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    Redemption
      Price is actually paid, in which case the actual payment date will be the date
      fixed for redemption for purposes of calculating the Redemption
      Price.

     

    (e) Subject
      to Section
      4.3(a),
      if less
      than all the Outstanding Trust Securities are to be redeemed on a Redemption
      Date, then the aggregate Liquidation Amount of Trust Securities to be redeemed
      shall be allocated pro rata to the Common Securities and the Preferred
      Securities based upon the relative aggregate Liquidation Amounts of the Common
      Securities and the Preferred Securities. The Preferred Securities to be redeemed
      shall be selected on a pro rata basis based upon their respective Liquidation
      Amounts not more than sixty (60) days prior to the Redemption Date by the
      Property Trustee from the Outstanding Preferred Securities not previously called
      for redemption; provided,
      that
      with respect to Holders that would be required to hold less than one hundred
      (100) but more than zero (0) Trust Securities as a result of such redemption,
      the Trust shall redeem Trust Securities of each such Holder so that after such
      redemption such Holder shall hold either one hundred (100) Trust Securities
      or
      such Holder no longer holds any Trust Securities, and shall use such method
      (including, without limitation, by lot) as the Trust shall deem fair and
      appropriate; and provided,
      further,
      that so
      long as the Preferred Securities are Book-Entry Preferred Securities, such
      selection shall be made in accordance with the Applicable Depositary Procedures
      for the Preferred Securities by such Depositary. The Property Trustee shall
      promptly notify the Securities Registrar in writing of the Preferred Securities
      (or portion thereof) selected for redemption and, in the case of any Preferred
      Securities selected for partial redemption, the Liquidation Amount thereof
      to be
      redeemed. For all purposes of this Trust Agreement, unless the context otherwise
      requires, all provisions relating to the redemption of Preferred Securities
      shall relate, in the case of any Preferred Securities redeemed or to be redeemed
      only in part, to the portion of the aggregate Liquidation Amount of Preferred
      Securities that has been or is to be redeemed.

     

    (f) The
      Trust
      in issuing the Trust Securities may use “CUSIP” numbers (if then generally in
      use), and, if so, the Property Trustee shall indicate the “CUSIP” numbers of the
      Trust Securities in notices of redemption and related materials as a convenience
      to Holders; provided, that any such notice may state that no representation
      is
      made as to the correctness of such numbers either as printed on the Trust
      Securities or as contained in any notice of redemption and related
      materials.

     

    SECTION
      4.3 Subordination
      of Common Securities.

     

    (a) Payment
      of Distributions (including any Additional Interest Amounts) on, the Redemption
      Price of and the Liquidation Distribution in respect of, the Trust Securities,
      as applicable, shall be made, pro
      rata
      among
      the Common Securities and the Preferred Securities based on the Liquidation
      Amount of the respective Trust Securities; provided,
      that if
      on any Distribution Date, Redemption Date or Liquidation Date an Event of
      Default shall have occurred and be continuing, no payment of any Distribution
      (including any Additional Interest Amounts) on, Redemption Price of or
      Liquidation Distribution in respect of, any Common Security, and no other
      payment on account of the redemption, liquidation or other acquisition of Common
      Securities, shall be made unless payment in full in cash of all accumulated
      and
      unpaid Distributions (including any Additional Interest Amounts) on all
      Outstanding Preferred Securities for all Distribution periods terminating on
      or
      prior thereto, or in the case of payment of the Redemption Price the full amount
      of such Redemption Price on all Outstanding Preferred 

     

    
      
         

      

      
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    Securities
      then called for redemption, or in the case of payment of the Liquidation
      Distribution the full amount of such Liquidation Distribution on all Outstanding
      Preferred Securities, shall have been made or provided for, and all funds
      immediately available to the Property Trustee shall first be applied to the
      payment in full in cash of all Distributions (including any Additional Interest
      Amounts) on, or the Redemption Price of or the Liquidation Distribution in
      respect of, the Preferred Securities then due and payable.

     

    (b) In
      the
      case of the occurrence of any Event of Default, the Holders of the Common
      Securities shall have no right to act with respect to any such Event of Default
      under this Trust Agreement until all such Events of Default with respect to
      the
      Preferred Securities have been cured, waived or otherwise eliminated. Until
      all
      such Events of Default under this Trust Agreement with respect to the Preferred
      Securities have been so cured, waived or otherwise eliminated, the Property
      Trustee shall act solely on behalf of the Holders of the Preferred Securities
      and not on behalf of the Holders of the Common Securities, and only the Holders
      of all the Preferred Securities will have the right to direct the Property
      Trustee to act on their behalf.

     

    SECTION
      4.4 Payment
      Procedures.

     

    Payments
      of Distributions (including any Additional Interest Amounts), the Redemption
      Price, Liquidation Amount or any other amounts in respect of the Preferred
      Securities shall be made by wire transfer at such place and to such account
      at a
      banking institution in the United States as may be designated in writing at
      least ten (10) Business Days prior to the date for payment by the Person
      entitled thereto unless proper written transfer instructions have not been
      received by the relevant record date, in which case such payments shall be
      made
      by check mailed to the address of such Person as such address shall appear
      in
      the Securities Register. If any Preferred Securities are held by a Depositary,
      such Distributions thereon shall be made to the Depositary in immediately
      available funds. Payments in respect of the Common Securities shall be made
      in
      such manner as shall be mutually agreed between the Property Trustee and the
      Holder of all the Common Securities.

     

    SECTION
      4.5 Withholding
      Tax.

     

    (a) The
      Trust
      and the Administrative Trustees shall comply with all withholding and backup
      withholding tax requirements under United States federal, state and local law.
      The Administrative Trustees on behalf of the Trust shall request, and the
      Holders shall provide to the Trust, such forms or certificates as are necessary
      to establish an exemption from withholding and backup withholding tax with
      respect to each Holder and any representations and forms as shall reasonably
      be
      requested by the Administrative Trustees on behalf of the Trust to assist it
      in
      determining the extent of, and in fulfilling, its withholding and backup
      withholding tax obligations. The Administrative Trustees shall file required
      forms with applicable jurisdictions and, unless an exemption from withholding
      and backup withholding tax is properly established by a Holder, shall remit
      amounts withheld with respect to the Holder to applicable jurisdictions. To
      the
      extent that the Trust is required to withhold and pay over any amounts to any
      jurisdiction with respect to Distributions or allocations to any Holder, the
      amount withheld shall be deemed to be a Distribution in the amount of the
      withholding to the Holder. In the event of any claimed overwithholding, Holders
      shall be limited to an action against the applicable jurisdiction. If the amount
      required to be withheld was not withheld from actual Distributions made, the
      Administrative Trustees on behalf of the Trust may reduce subsequent
      Distributions by the amount of such required withholding.

     

    
      
         

      

      
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    SECTION
      4.6 Tax
      Returns and Other Reports.

     

    The
      Administrative Trustees shall prepare (or cause to be prepared) at the principal
      office of the Trust in the United States, as defined for purposes of Treasury
      regulations section 301.7701-7, at the Depositor’s expense, and file, all United
      States federal, state and local tax and information returns and reports required
      to be filed by or in respect of the Trust. The Administrative Trustees shall
      prepare at the principal office of the Trust in the United States, as defined
      for purposes of Treasury regulations section 301.7701-7, and furnish (or cause
      to be prepared and furnished), by January 31 in each taxable year of the Trust
      to each Holder all Internal Revenue Service forms and returns required to be
      provided by the Trust. The Administrative Trustees shall provide the Depositor,
      the Purchaser and the Property Trustee with a copy of all such returns and
      reports promptly after such filing or furnishing.

     

    SECTION
      4.7 Payment
      of Taxes, Duties, Etc. of the Trust.

     

    Upon
      receipt under the Notes of Additional Tax Sums and upon the written direction
      of
      the Administrative Trustees, the Property Trustee shall promptly pay, solely
      out
      of monies on deposit pursuant to this Trust Agreement, any Additional Taxes
      imposed on the Trust by the United States or any other taxing
      authority.

     

    SECTION
      4.8 Payments
      under Indenture or Pursuant to Direct Actions.

     

    Any
      amount payable hereunder to any Holder of Preferred Securities shall be reduced
      by the amount of any corresponding payment such Holder (or any Owner with
      respect thereto) has directly received pursuant to Section
      5.8
      of the
      Indenture or Section
      6.10(b)
      of this
      Trust Agreement.

     

    SECTION
      4.9 Exchanges.

     

    (a) If
      at any
      time the Depositor or any of its Affiliates (in either case, a “Depositor
      Affiliate”)
      is the
      Owner or Holder of any Preferred Securities, such Depositor Affiliate shall
      have
      the right to deliver to the Property Trustee all or such portion of its
      Preferred Securities as it elects and, subject to compliance with Sections
      2.2
      and
3.5
      of the
      Indenture, receive, in exchange therefor, a Like Amount of Notes. Such election
      shall be exercisable effective on any Distribution Date by such Depositor
      Affiliate delivering to the Property Trustee (i) at least ten (10) Business
      Days
      prior to the Distribution Date on which such exchange is to occur, the
      registration instructions and the documentation, if any, required pursuant
      to
Sections
      2.2
      and
3.5
      of the
      Indenture to enable the Indenture Trustee to issue the requested Like Amount
      of
      Notes, (ii) a written notice of such election specifying the Liquidation Amount
      of Preferred Securities with respect to which such election is being made and
      the Distribution Date on which such exchange shall occur, which Distribution
      Date shall be not less than ten (10) Business Days after the date of receipt
      by
      the Property Trustee of such election notice and (iii) shall be conditioned
      upon
      such Depositor Affiliate having delivered or caused to be delivered to the
      Property Trustee or its designee the Preferred Securities that are the subject
      of such election by 10:00 A.M. New York time, on the Distribution Date on which
      such exchange is to occur. After the exchange, such 

     

    
      
         

      

      
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    Preferred
      Securities will be canceled and will no longer be deemed to be Outstanding
      and
      all rights of the Depositor Affiliate with respect to such Preferred Securities
      will cease.

     

    (b) In
      the
      case of an exchange described in Section
      4.9(a),
      the
      Property Trustee on behalf of the Trust will, on the date of such exchange,
      exchange Notes having a principal amount equal to a proportional amount of
      the
      aggregate Liquidation Amount of the Outstanding Common Securities, based on
      the
      ratio of the aggregate Liquidation Amount of the Preferred Securities exchanged
      pursuant to Section
      4.9(a)
      divided
      by the aggregate Liquidation Amount of the Preferred Securities Outstanding
      immediately prior to such exchange, for such proportional amount of Common
      Securities held by the Depositor (which contemporaneously shall be canceled
      and
      no longer be deemed to be Outstanding); provided, that the Depositor delivers
      or
      causes to be delivered to the Property Trustee or its designee the required
      amount of Common Securities to be exchanged by 10:00 A.M. New York time, on
      the
      Distribution Date on which such exchange is to occur.

     

    SECTION
      4.10 Calculation
      Agent.

     

    (a) The
      Property Trustee shall initially, and, subject to the immediately following
      sentence, for so long as it holds any of the Notes, be the Calculation Agent
      for
      purposes of determining LIBOR for each Distribution Date. The Calculation Agent
      may be removed by the Administrative Trustees at any time. If the Calculation
      Agent is unable or unwilling to act as such or is removed by the Administrative
      Trustees, the Administrative Trustees will promptly appoint as a replacement
      Calculation Agent the London office of a leading bank which is engaged in
      transactions in six-month Eurodollar deposits in the international Eurodollar
      market and which does not control or is not controlled by or under common
      control with the Administrative Trustee or its Affiliates. The Calculation
      Agent
      may not resign its duties without a successor having been duly
      appointed.

     

    (b) The
      Calculation Agent shall be required to agree that, as soon as possible after
      11:00 a.m. (London time) on each LIBOR Determination Date, but in no event
      later
      than 11:00 a.m. (London time) on the Business Day immediately following each
      LIBOR Determination Date, the Calculation Agent will calculate the interest
      rate
      (rounded to the nearest cent, with half a cent being rounded upwards) for the
      related Distribution Date, and will communicate such rate and amount to the
      Depositor, the Administrative Trustees, the Note Trustee, each Paying Agent
      and
      the Depositary. The Calculation Agent will also specify to the Administrative
      Trustee the quotations upon which the foregoing rates and amounts are based
      and,
      in any event, the Calculation Agent shall notify the Administrative Trustees
      before 5:00 p.m. (London time) on each LIBOR Determination Date that either:
      (i)
      it has determined or is in the process of determining the foregoing rates and
      amounts or (ii) it has not determined and is not in the process of determining
      the foregoing rates and amounts, together with its reasons therefor. The
      Calculation Agent’s determination of the foregoing rates and amounts for any
      Distribution Date will (in the absence of manifest error) be final and binding
      upon all parties. For the sole purpose of calculating the interest rate for
      the
      Trust Securities, “Business Day” shall be defined as any day on which dealings
      in deposits in Dollars are transacted in the London interbank
      market.

     

    SECTION
      4.11 Certain
      Accounting Matters.

     

    
      
         

      

      
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    (a) At
      all
      times during the existence of the Trust, the Administrative Trustees shall
      keep,
      or cause to be kept at the principal office of the Trust in the United States,
      as defined for purposes of Treasury Regulations section 301.7701-7, full books
      of account, records and supporting documents, which shall reflect in reasonable
      detail each transaction of the Trust. The books of account shall be maintained
      on the accrual method of accounting, in accordance with generally accepted
      accounting principles, consistently applied.

     

    (b) The
      Administrative Trustees shall either (i) if the Depositor is then subject to
      such reporting requirements, cause each Form 10-K and Form 10-Q prepared by
      the
      Depositor and filed with the Commission in accordance with the Exchange Act
      to
      be delivered to each Holder, with a copy to the Property Trustee, within thirty
      (30) days after the filing thereof or (ii) cause to be prepared at the principal
      office of the Trust in the United States, as defined for purposes of Treasury
      Regulations section 301.7701-7, and delivered to each of the Holders, with
      a
      copy to the Property Trustee, within ninety (90) days after the end of each
      Fiscal Year, annual financial statements of the Trust, including a balance
      sheet
      of the Trust as of the end of such Fiscal Year, and the related statements
      of
      income or loss.

     

    (c) If
      the
      Depositor intends to file its annual and quarterly information with the
      Commission in electronic form pursuant to Regulation S-T of the Commission
      using
      the Commission’s Electronic Data Gathering, Analysis and Retrieval (“EDGAR”)
      system,
      the Administrative Trustees shall notify the Property Trustee in the manner
      prescribed herein of each such annual and quarterly filing. The Property Trustee
      is hereby authorized and directed to access the EDGAR system for purposes of
      retrieving the financial information so filed. Compliance with the foregoing
      shall constitute delivery by the Administrative Trustees of its financial
      statements to the Property Trustee in compliance with the provisions of Section
      314(a) of the Trust Indenture Act, if applicable. The Property Trustee shall
      have no duty to search for or obtain any electronic or other filings that the
      Depositor makes with the Commission, regardless of whether such filings are
      periodic, supplemental or otherwise. Delivery of reports, information and
      documents to the Property Trustee pursuant to this Section
      4.11(c)
      shall be
      solely for purposes of compliance with this Section
      4.11
      and, if
      applicable, with Section 314(a) of the Trust Indenture Act. The Property
      Trustee’s receipt of such reports, information and documents shall not
      constitute notice to it of the content thereof or any matter determinable from
      the content thereof, including the Depositor’s compliance with any of its
      covenants hereunder, as to which the Property Trustee is entitled to rely upon
      Officers’ Certificates.

     

    (d) The
      Trust
      shall maintain one or more bank accounts in the United States, as defined for
      purposes of Treasury Regulations section 301.7701-7, in the name and for the
      sole benefit of the Trust; provided, however, that all payments of funds in
      respect of the Notes held by the Property Trustee shall be made directly to
      the
      Payment Account and no other funds of the Trust shall be deposited in the
      Payment Account. The sole signatories for such accounts (including the Payment
      Account) shall be designated by the Property Trustee.

     

    ARTICLE
      V

     

    SECURITIES

     

    SECTION
      5.1 Initial
      Ownership.

     

    
      
         

      

      
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    Upon
      the
      creation of the Trust and the contribution by the Depositor referred to in
      Section
      2.3 and
      until
      the issuance of the Trust Securities, and at any time during which no Trust
      Securities are Outstanding, the Depositor shall be the sole beneficial owner
      of
      the Trust.

     

    SECTION
      5.2 Authorized
      Trust Securities.

     

    The
      Trust
      shall be authorized to issue one series of Preferred Securities having an
      aggregate Liquidation Amount of $50,000,000 and one series of Common Securities
      having an aggregate Liquidation Amount of $1,547,000.

     

    SECTION
      5.3 Issuance
      of the Common Securities; Subscription and Purchase of Notes.

     

    On
      the
      Closing Date, an Administrative Trustee, on behalf of the Trust, shall execute
      and deliver to the Depositor Common Securities Certificates, registered in
      the
      name of the Depositor, evidencing an aggregate of One Thousand Five Hundred
      Forty Seven (1,547) Common Securities having an aggregate Liquidation Amount
      of
      One Million Five Hundred Forty Seven Thousand Dollars ($1,547,000), against
      receipt by the Trust of the aggregate purchase price of such Common Securities
      of One Million Five Hundred Forty Seven Thousand Dollars ($1,547,000).
      Contemporaneously therewith and with the sale by the Trust to the Holders of
      an
      aggregate of Fifty Thousand (50,000) Preferred Securities having an aggregate
      Liquidation Amount of Fifty Million Dollars ($50,000,000), an Administrative
      Trustee, on behalf of the Trust, shall purchase from the Depositor Notes, to
      be
      registered in the name of the Property Trustee on behalf of the Trust and having
      an aggregate principal amount equal to Fifty One Million Five Hundred Forty
      Seven Thousand Dollars ($51,547,000), and, in satisfaction of the purchase
      price
      for such Notes, the Property Trustee, on behalf of the Trust, shall deliver
      to
      the Depositor the sum of Fifty One Million Five Hundred Forty Seven Thousand
      Dollars ($51,547,000) (being the aggregate amount paid by the Holders for the
      Preferred Securities, and the amount paid by the Depositor for the Common
      Securities).

     

    SECTION
      5.4 The
      Securities Certificates.

     

    (a) The
      Preferred Securities Certificates shall be issued in minimum denominations
      of
      $100,000 Liquidation Amount and integral multiples of $1,000 in excess thereof,
      and the Common Securities Certificates shall be issued in minimum denominations
      of $10,000 Liquidation Amount and integral multiples of $1,000 in excess
      thereof. The Securities Certificates shall be executed on behalf of the Trust
      by
      manual or facsimile signature of at least one Administrative Trustee. Securities
      Certificates bearing the signatures of individuals who were, at the time when
      such signatures shall have been affixed, authorized to sign such Securities
      Certificates on behalf of the Trust shall be validly issued and entitled to
      the
      benefits of this Trust Agreement, notwithstanding that such individuals or
      any
      of them shall have ceased to be so authorized prior to the delivery of such
      Securities Certificates or did not have such authority at the date of delivery
      of such Securities Certificates.

     

    (b) On
      the
      Closing Date, upon the written order of an authorized officer of the Depositor,
      the Administrative Trustees shall cause Securities Certificates to be executed
      on behalf of the Trust and delivered, without further corporate action by the
      Depositor, in authorized denominations.

     

    
      
         

      

      
        -25-

        
          

        

      

      
         

      

    

    (c) The
      Preferred Securities issued to QIBs/QPs may be, except as provided in
Section
      5.6,
      Book-Entry Preferred Securities issued in the form of one or more Global
      Preferred Securities registered in the name of the Depositary, or its nominee
      and deposited with the Depositary or a custodian for the Depositary for credit
      by the Depositary to the respective accounts of the Depositary Participants
      thereof (or such other accounts as they may direct). The Preferred Securities
      issued to a Person other than a QIB/QP shall be issued in the form of Definitive
      Preferred Securities Certificates.

     

    (d) A
      Preferred Security shall not be valid until authenticated by the manual
      signature of an authorized signatory of the Property Trustee. Such signature
      shall be conclusive evidence that the Preferred Security has been authenticated
      under this Trust Agreement. Upon written order of the Trust signed by one
      Administrative Trustee, the Property Trustee shall authenticate the Preferred
      Securities for original issue. The Property Trustee may appoint an
      authenticating agent that is a U.S. Person acceptable to the Trust to
      authenticate the Preferred Securities. A Common Security need not be so
      authenticated and shall be valid upon execution by one or more Administrative
      Trustees. The form of this certificate of authentication can be found in
Section 5.13.

     

    SECTION
      5.5 Rights
      of Holders.

     

    The
      Trust
      Securities shall have no preemptive or similar rights and when issued and
      delivered to Holders against payment of the purchase price therefor will be
      fully paid and non assessable by the Trust. Except as provided in Section
      5.11(b),
      the
      Holders of the Trust Securities, in their capacities as such, shall be entitled
      to the same limitation of personal liability extended to stockholders of private
      corporations for profit organized under the General Corporation Law of the
      State
      of Delaware.

     

    SECTION
      5.6 Book-Entry
      Preferred Securities.

     

    (a) A
      Global
      Preferred Security may be exchanged, in whole or in part, for Definitive
      Preferred Securities Certificates registered in the names of the Owners only
      if
      such exchange complies with Section
      5.7,
      and (i)
      the Depositary advises the Administrative Trustees and the Property Trustee
      in
      writing that the Depositary is no longer willing or able properly to discharge
      its responsibilities with respect to the Global Preferred Security, and no
      qualified successor is appointed by the Administrative Trustees within ninety
      (90) days of receipt of such notice, (ii) the Depositary ceases to be a clearing
      agency registered under the Exchange Act and the Administrative Trustees fail
      to
      appoint a qualified successor within ninety (90) days of obtaining knowledge
      of
      such event, (iii) the Administrative Trustees at their option advise the
      Property Trustee in writing that the Trust elects to terminate the book-entry
      system through the Depositary or (iv) a Note Event of Default has occurred
      and
      is continuing. Upon the occurrence of any event specified in clause (i), (ii),
      (iii) or (iv) above, the Administrative Trustees shall notify the Depositary
      and
      instruct the Depositary to notify all Owners of Book-Entry Preferred Securities,
      the Delaware Trustee and the Property Trustee of the occurrence of such event
      and of the availability of the Definitive Preferred Securities Certificates
      to
      Owners of the Preferred Securities requesting the same. Upon the issuance of
      Definitive Preferred Securities Certificates, the Trustees shall recognize
      the
      Holders of the Definitive Preferred Securities Certificates as Holders.
      Notwithstanding the foregoing, if an Owner of a beneficial interest in a
      Global

     

    
      
         

      

      
        -26-

        
          

        

      

      
         

      

    

    Preferred
      Security wishes at any time to transfer an interest in such Global Preferred
      Security to a Person other than a QIB/QP, such transfer shall be effected,
      subject to the Applicable Depositary Procedures, in accordance with the
      provisions of this Section
      5.6
      and
Section
      5.7,
      and the
      transferee shall receive a Definitive Preferred Securities Certificate in
      connection with such transfer. A holder of a Definitive Preferred Securities
      Certificate that is a QIB/QP may, upon request and in accordance with the
      provisions of this Section
      5.6
      and
Section
      5.7,
      exchange such Definitive Preferred Securities Certificate for a beneficial
      interest in a Global Preferred Security.

     

    (b) If
      any
      Global Preferred Security is to be exchanged for Definitive Preferred Securities
      Certificates or canceled in part, or if any Definitive Preferred Securities
      Certificate is to be exchanged in whole or in part for any Global Preferred
      Security, then either (i) such Global Preferred Security shall be so surrendered
      for exchange or cancellation as provided in this Article V
      or (ii)
      the aggregate Liquidation Amount represented by such Global Preferred Security
      shall be reduced, subject to Section
      5.4,
      or
      increased by an amount equal to the Liquidation Amount represented by that
      portion of the Global Preferred Security to be so exchanged or canceled, or
      equal to the Liquidation Amount represented by such Definitive Preferred
      Securities Certificates to be so exchanged for any Global Preferred Security,
      as
      the case may be, by means of an appropriate adjustment made on the records
      of
      the Securities Registrar, whereupon the Property Trustee, in accordance with
      the
      Applicable Depositary Procedures, shall instruct the Depositary or its
      authorized representative to make a corresponding adjustment to its records.
      Upon any such surrender to the Administrative Trustees or the Securities
      Registrar of any Global Preferred Security or Securities by the Depositary,
      accompanied by registration instructions, the Administrative Trustees, or any
      one of them, shall execute the Definitive Preferred Securities Certificates
      in
      accordance with the instructions of the Depositary. None of the Securities
      Registrar or the Trustees shall be liable for any delay in delivery of such
      instructions and may conclusively rely on, and shall be fully protected in
      relying on, such instructions.

     

    (c) Every
      Definitive Preferred Securities Certificate executed and delivered upon
      registration or transfer of, or in exchange for or in lieu of, a Global
      Preferred Security or any portion thereof shall be executed and delivered in
      the
      form of, and shall be, a Global Preferred Security, unless such Definitive
      Preferred Securities Certificate is registered in the name of a Person other
      than the Depositary for such Global Preferred Security or a nominee
      thereof.

     

    (d) The
      Depositary or its nominee, as registered owner of a Global Preferred Security,
      shall be the Holder of such Global Preferred Security for all purposes under
      this Trust Agreement and the Global Preferred Security, and Owners with respect
      to a Global Preferred Security shall hold such interests pursuant to the
      Applicable Depositary Procedures. The Securities Registrar and the Trustees
      shall be entitled to deal with the Depositary for all purposes of this Trust
      Agreement relating to the Global Preferred Securities (including the payment
      of
      the Liquidation Amount of and Distributions on the Book-Entry Preferred
      Securities represented thereby and the giving of instructions or directions
      by
      Owners of Book-Entry Preferred Securities represented thereby and the giving
      of
      notices) as the sole Holder of the Book-Entry Preferred Securities represented
      thereby and shall have no obligations to the Owners thereof. None of the
      Trustees nor the Securities Registrar shall have any liability in respect of
      any
      transfers effected by the Depositary.

     

    
      
         

      

      
        -27-

        
          

        

      

      
         

      

    

    (e) The
      rights of the Owners of the Book-Entry Preferred Securities shall be exercised
      only through the Depositary and shall be limited to those established by law,
      the Applicable Depositary Procedures and agreements between such Owners and
      the
      Depositary and/or the Depositary Participants; provided, that solely for the
      purpose of determining whether the Holders of the requisite amount of Preferred
      Securities have voted on any matter provided for in this Trust Agreement, to
      the
      extent that Preferred Securities are represented by a Global Preferred Security,
      the Trustees may conclusively rely on, and shall be fully protected in relying
      on, any written instrument (including a proxy) delivered to the Property Trustee
      by the Depositary setting forth the Owners’ votes or assigning the right to vote
      on any matter to any other Persons either in whole or in part. To the extent
      that Preferred Securities are represented by a Global Preferred Security, the
      initial Depositary will make book-entry transfers among the Depositary
      Participants and receive and transmit payments on the Preferred Securities
      that
      are represented by a Global Preferred Security to such Depositary Participants,
      and none of the Depositor or the Trustees shall have any responsibility or
      obligation with respect thereto.

     

    (f) To
      the
      extent that a notice or other communication to the Holders is required under
      this Trust Agreement, for so long as Preferred Securities are represented by
      a
      Global Preferred Security, the Trustees shall give all such notices and
      communications to the Depositary, and shall have no obligations to the
      Owners.

     

    SECTION
      5.7 Registration
      of Transfer and Exchange of Preferred Securities Certificates.

     

    (a) The
      Property Trustee shall keep or cause to be kept, at the Corporate Trust Office,
      a register or registers (the “Securities
      Register”)
      in
      which the registrar and transfer agent with respect to the Trust Securities
      (the
“Securities
      Registrar”),
      subject to such reasonable regulations as it may prescribe, shall provide for
      the registration of Preferred Securities Certificates and Common Securities
      Certificates and registration of transfers and exchanges of Preferred Securities
      Certificates as herein provided. The Person acting as the Property Trustee
      shall
      at all times also be the Securities Registrar. The provisions of Article VIII
      shall apply to the Property Trustee in its role as Securities
      Registrar.

     

    (b) Subject
      to Section
      5.7(d),
      upon
      surrender for registration of transfer of any Preferred Securities Certificate
      at the office or agency maintained pursuant to Section
      5.7(f),
      the
      Administrative Trustees or any one of them shall execute by manual or facsimile
      signature and deliver to the Property Trustee, and the Property Trustee upon
      the
      written order of the Trust executed by one Administrative Trustee shall
      authenticate and deliver, in the name of the designated transferee or
      transferees, one or more new Preferred Securities Certificates in authorized
      denominations of a like aggregate Liquidation Amount as may be required by
      this
      Trust Agreement dated the date of execution by such Administrative Trustee
      or
      Trustees. At the option of a Holder, Preferred Securities Certificates may
      be
      exchanged for other Preferred Securities Certificates in authorized
      denominations and of a like aggregate Liquidation Amount upon surrender of
      the
      Preferred Securities Certificate to be exchanged at the office or agency
      maintained pursuant to Section
      5.7(f).
      Whenever any Preferred Securities Certificates are so surrendered for exchange,
      the Administrative Trustees or any one of them shall execute by manual or
      facsimile signature and deliver to the Property Trustee, and the Property
      Trustee upon

     

    
      
         

      

      
        -28-

        
          

        

      

      
         

      

    

    written
      order of the Trust executed by one Administrative Trustee shall authenticate
      and
      deliver, the Preferred Securities Certificates that the Holder making the
      exchange is entitled to receive.

     

    (c) The
      Securities Registrar shall not be required, (i) to issue, register the transfer
      of or exchange any Preferred Security during a period beginning at the opening
      of business fifteen (15) days before the day of selection for redemption of
      such
      Preferred Securities pursuant to Article
      IV
      and
      ending at the close of business on the day of mailing of the notice of
      redemption or (ii) to register the transfer of or exchange any Preferred
      Security so selected for redemption in whole or in part, except, in the case
      of
      any such Preferred Security to be redeemed in part, any portion thereof not
      to
      be redeemed.

     

    (d) Every
      Preferred Securities Certificate presented or surrendered for registration
      of
      transfer or exchange shall be duly endorsed, or be accompanied by a written
      instrument of transfer in form satisfactory to the Securities Registrar duly
      executed by the Holder or such Holder’s attorney duly authorized in writing and
      accompanied by a certificate of the transferee substantially in the form set
      forth as Exhibit
      E
      hereto.

     

    (e) No
      service charge shall be made for any registration of transfer or exchange of
      Preferred Securities Certificates, but the Property Trustee on behalf of the
      Trust may require payment of a sum sufficient to cover any tax or governmental
      charge that may be imposed in connection with any transfer or exchange of
      Preferred Securities Certificates.

     

    (f) The
      Administrative Trustees shall designate an office or offices or agency or
      agencies where Preferred Securities Certificates may be surrendered for
      registration of transfer or exchange and initially designate the Corporate
      Trust
      Office as its office and agency for such purposes. The Administrative Trustees
      shall give prompt written notice to the Depositor, the Property Trustee and
      to
      the Holders of any change in the location of any such office or
      agency.

     

    (g) The
      Preferred Securities may only be transferred to a QP.

     

    Neither
      the Property Trustee nor the Securities Registrar shall be responsible for
      ascertaining whether any transfer hereunder complies with the registration
      provisions of or any exemptions from the Securities Act, applicable state
      securities laws or the applicable laws of any other jurisdiction, ERISA, the
      Code or the Investment Company Act;
      provided,
      that if
      a certificate is specifically required by the express terms of this Section
      5.7
      to be delivered to the Property Trustee or the Securities Registrar by a Holder
      or transferee of a Security, the Property Trustee and the Securities Registrar
      shall be under a duty to receive and examine the same to determine whether
      or
      not the certificate substantially conforms on its face to the requirements
      of
      this Trust Agreement and shall promptly notify the party delivering the same
      if
      such certificate does not comply with such terms.

     

    SECTION
      5.8 Mutilated,
      Destroyed, Lost or Stolen Securities Certificates.

     

    (a) If
      any
      mutilated Securities Certificate shall be surrendered to the Securities
      Registrar together with such security or indemnity as may be required by the
      Securities Registrar to save each of the Trustees harmless, the Administrative
      Trustees, or any one of them, on behalf of
      the
      Trust, shall execute and make available for delivery in exchange therefor a
      new
      Securities Certificate of like class, tenor and
      denomination.

     

    
      
         

      

      
        -29-

        
          

        

      

      
         

      

    

     

    (b) If
      the
      Securities Registrar shall receive evidence to its satisfaction of the
      destruction, loss or theft of any Securities Certificate and there shall be
      delivered to the Securities Registrar such security or indemnity as may be
      required by it to save each of the Trustees harmless, then in the absence of
      notice that such Securities Certificate shall have been acquired by a bona
      fide
      purchaser, the Administrative Trustees, or any one of them, on behalf of the
      Trust, shall execute and make available for delivery, and, with respect to
      Preferred Securities, the Property Trustee upon written order of the Trust
      executed by one Administrative Trustee shall authenticate, in exchange for
      or in
      lieu of any such destroyed, lost or stolen Securities Certificate, a new
      Securities Certificate of like class, tenor and denomination.

     

    (c) In
      connection with the issuance of any new Securities Certificate under this
Section
      5.8,
      the
      Administrative Trustees or the Securities Registrar may require the payment
      of a
      sum sufficient to cover any tax or other governmental charge that may be imposed
      in connection therewith.

     

    (d) Any
      duplicate Securities Certificate issued pursuant to this Section
      5.8
      shall
      constitute conclusive evidence of an undivided beneficial interest in the assets
      of the Trust corresponding to that evidenced by the mutilated, lost, stolen
      or
      destroyed Securities Certificate, as if originally issued, whether or not the
      lost, stolen or destroyed Securities Certificate shall be found at any
      time.

     

    (e) If
      any
      such mutilated, destroyed, lost or stolen Securities Certificate has become
      or
      is about to become due and payable, the Depositor in its discretion may provide
      the Administrative Trustee with the funds to pay such Trust Security and upon
      receipt of such funds, the Administrative Trustee shall pay such Trust Security
      instead of issuing a new Securities Certificate.

     

    (f) The
      provisions of this Section
      5.8
      are
      exclusive and shall preclude (to the extent lawful) all other rights and
      remedies with respect to the replacement of mutilated, destroyed, lost or stolen
      Securities Certificates.

     

    SECTION
      5.9  Persons
      Deemed Holders.

     

    The
      Trustees and the Securities Registrar shall each treat the Person in whose
      name
      any Securities Certificate shall be registered in the Securities Register as
      the
      Holder of such Securities Certificate for the purpose of receiving Distributions
      and for all other purposes whatsoever, and none of the Trustees and the
      Securities Registrar shall be bound by any notice to the contrary.

     

    SECTION
      5.10  Cancellation.

     

    All
      Preferred Securities Certificates surrendered for registration of transfer
      or
      exchange or for payment shall, if surrendered to any Person other than the
      Property Trustee, be delivered to the Property Trustee, and any such Preferred
      Securities Certificates and Preferred Securities Certificates surrendered
      directly to the Property Trustee for any such purpose shall be promptly canceled
      by it. The Administrative Trustees may at any time deliver to the Property
      Trustee for cancellation any Preferred Securities Certificates previously
      delivered hereunder that the Administrative Trustees may have acquired in any
      manner whatsoever, and all Preferred 

     

    
      
         

      

      
        -30-

        
          

        

      

      
         

      

    

    Securities
      Certificates so delivered shall be promptly canceled by the Property Trustee.
      No
      Preferred Securities Certificates shall be executed and delivered in lieu of
      or
      in exchange for any Preferred Securities Certificates canceled as provided
      in
      this Section
      5.10,
      except
      as expressly permitted by this Trust Agreement. All canceled Preferred
      Securities Certificates shall be retained by the Property Trustee in accordance
      with its customary practices.

     

    SECTION
      5.11 Ownership
      of Common Securities by Depositor.

     

    (a) On
      the
      Closing Date, the Depositor shall acquire, and thereafter shall retain,
      beneficial and record ownership of the Common Securities. Neither the Depositor
      nor any successor Holder of the Common Securities may transfer less than all
      the
      Common Securities, and the Depositor or any such successor Holder may transfer
      the Common Securities only (i) in connection with a consolidation or merger
      of
      the Depositor into another Person, or any conveyance, transfer or lease by
      the
      Depositor of its properties and assets substantially as an entirety to any
      Person (in which event such Common Securities will be transferred to such
      surviving entity, transferee or lessee, as the case may be), pursuant to Section
      8.1 of the Indenture or (ii) to the Depositor or an Affiliate of the Depositor,
      in each such case in compliance with applicable law (including the Securities
      Act, and applicable state securities and blue sky laws). To the fullest extent
      permitted by law, any attempted transfer of the Common Securities other than
      as
      set forth in the immediately preceding sentence shall be void. The
      Administrative Trustees shall cause each Common Securities Certificate issued
      to
      the Depositor to contain a legend stating substantially “THIS CERTIFICATE IS NOT
      TRANSFERABLE EXCEPT IN COMPLIANCE WITH APPLICABLE LAW AND SECTION 5.11 OF THE
      TRUST AGREEMENT.”

     

    (b) Any
      Holder of the Common Securities shall be liable for the debts and obligations
      of
      the Trust in the manner and to the extent set forth with respect to the
      Depositor and agrees that it shall be subject to all liabilities to which the
      Depositor may be subject and, prior to becoming such a Holder, shall deliver
      to
      the Administrative Trustees an instrument of assumption satisfactory to such
      Administrative Trustees.

     

    SECTION
      5.12 Restricted
      Legends.

     

    (a) Each
      Preferred Security Certificate shall bear a legend in substantially the
      following form:

     

    “[IF
      THIS SECURITY IS A GLOBAL SECURITY INSERT:
      THIS
      PREFERRED SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE TRUST
      AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
      DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC. THIS PREFERRED SECURITY IS
      EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC
      OR
      ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE TRUST AGREEMENT,
      AND NO TRANSFER OF THIS PREFERRED SECURITY (OTHER THAN A TRANSFER OF THIS
      PREFERRED SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF
      DTC
      TO DTC OR 

     

    
      
         

      

      
        -31-

        
          

        

      

      
         

      

    

    ANOTHER
      NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

     

    UNLESS
      THIS PREFERRED SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
      TO
      READING INTERNATIONAL TRUST I OR ITS AGENT FOR REGISTRATION OF TRANSFER,
      EXCHANGE OR PAYMENT, AND ANY PREFERRED SECURITY ISSUED IS REGISTERED IN THE
      NAME
      OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
      REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO
      SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
      ANY
      TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
      IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
      INTEREST HEREIN.]

     

    THE
      PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED
      IN A
      TRANSACTION EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE “SECURITIES ACT”), AND SUCH PREFERRED SECURITIES OR ANY INTEREST
      THEREIN, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF
      SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF ANY
      PREFERRED SECURITIES IS HEREBY NOTIFIED THAT THE SELLER OF THE PREFERRED
      SECURITIES MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5
      OF
      THE SECURITIES ACT PROVIDED BY RULE 144A UNDER THE SECURITIES ACT.

     

    THE
      HOLDER OF THE PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE AGREES FOR
      THE BENEFIT OF THE TRUST AND THE DEPOSITOR THAT (A) SUCH PREFERRED SECURITIES
      MAY BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED ONLY (I) TO THE TRUST OR (II)
      TO
      A PERSON WHOM THE SELLER REASONABLY BELIEVES IS (a) A "QUALIFIED INSTITUTIONAL
      BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT AND (b) A “QUALIFIED
      PURCHASER” (AS DEFINED IN SECTION 2(a)(51) OF THE INVESTMENT COMPANY ACT OF
      1940, AS AMENDED), OR (III) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES
      IS A
“QUALIFIED PURCHASER” (AS DEFINED IN SECTION 2(a)(51) OF THE INVESTMENT COMPANY
      ACT OF 1940, AS AMENDED), AND (B) THE HOLDER WILL NOTIFY ANY PURCHASER OF ANY
      PREFERRED SECURITIES FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A)
      ABOVE.

     

    THE
      PREFERRED SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING
      AN AGGREGATE LIQUIDATION AMOUNT OF NOT LESS THAN $100,000. TO THE FULLEST EXTENT
      PERMITTED BY LAW, ANY ATTEMPTED TRANSFER OF PREFERRED SECURITIES, OR ANY
      INTEREST THEREIN, IN A BLOCK HAVING AN AGGREGATE LIQUIDATION AMOUNT OF LESS
      THAN
      $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF SHALL 

     

    
      
         

      

      
        -32-

        
          

        

      

      
         

      

    

    BE
      DEEMED
      TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. TO THE FULLEST EXTENT PERMITTED
      BY
      LAW, ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF
      SUCH
      PREFERRED SECURITIES FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT
      OF PRINCIPAL OF OR INTEREST ON SUCH PREFERRED SECURITIES, OR ANY INTEREST
      THEREIN, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST
      WHATSOEVER IN SUCH PREFERRED SECURITIES.

     

    THE
      HOLDER OF THIS SECURITY, OR ANY INTEREST THEREIN, BY ITS ACCEPTANCE HEREOF
      OR
      THEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT,
      INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE
      I OF
      THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”),
      OR
      SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)
      (EACH A
“PLAN”),
      OR AN
      ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S
      INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY
      ACQUIRE OR HOLD THIS PREFERRED SECURITY OR ANY INTEREST THEREIN. ANY PURCHASER
      OR HOLDER OF THE PREFERRED SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED
      TO
      HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT IT IS NOT AN EMPLOYEE
      BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH
      SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON
      BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING
      THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH
      PURCHASE.”

     

    (b) The
      above
      legend shall not be removed from any of the Preferred Securities Certificates
      unless there is delivered to the Property Trustee and the Depositor satisfactory
      evidence, which may include an opinion of counsel, as may be reasonably required
      to ensure that any future transfers thereof may be made without restriction
      under the provisions of the Securities Act and other applicable law and without
      causing the Trust to be an investment company as defined in the Investment
      Company Act. Upon provision of such satisfactory evidence, one or more of the
      Administrative Trustees on behalf of the Trust shall execute and deliver to
      the
      Property Trustee, and the Property Trustee shall deliver, at the written
      direction of the Administrative Trustees and the Depositor, Preferred Securities
      Certificates that do not bear the legend.

     

    SECTION
      5.13 Form
      of Certificate of Authentication.

     

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

     

    
      
         

      

      
        -33-

        
          

        

      

      
         

      

    

    This
      is
      one of the Preferred Securities referred to in the within-mentioned Trust
      Agreement.

    

      
        	
                Dated:

              	
                Wells
                  Fargo Bank, N.A., not in its individual capacity, but solely as
                  Property
                  Trustee

              
	 	 	 
	 	
                By:

              	 
	 	 	
                Authorized
                  signatory

              

      

    

     

     

    ARTICLE
      VI

     

    MEETINGS;
      VOTING; ACTS OF HOLDERS

     

    SECTION
      6.1 Notice
      of Meetings.

     

    Notice
      of
      all meetings of the Holders of the Preferred Securities, stating the time,
      place
      and purpose of the meeting, shall be given by the Administrative Trustees
      pursuant to Section
      10.8
      to each
      Holder of Preferred Securities, at such Holder’s registered address, at least
      fifteen (15) days and not more than ninety (90) days before the meeting. At
      any
      such meeting, any business properly before the meeting may be so considered
      whether or not stated in the notice of the meeting. Any adjourned meeting may
      be
      held as adjourned without further notice.

     

    SECTION
      6.2 Meetings
      of Holders of the Preferred Securities.

     

    (a) No
      annual
      meeting of Holders is required to be held. The Administrative Trustees, however,
      shall call a meeting of the Holders of the Preferred Securities to vote on
      any
      matter upon the written request of the Holders of at least twenty five percent
      (25%) in aggregate Liquidation Amount of the Outstanding Preferred Securities
      and the Administrative Trustees or the Property Trustee may, at any time in
      their discretion, call a meeting of the Holders of the Preferred Securities
      to
      vote on any matters as to which such Holders are entitled to vote.

     

    (b) The
      Holders of at least a Majority in Liquidation Amount of the Preferred
      Securities, present in person or by proxy, shall constitute a quorum at any
      meeting of the Holders of the Preferred Securities.

     

    (c) If
      a
      quorum is present at a meeting, an affirmative vote by the Holders present,
      in
      person or by proxy, holding Preferred Securities representing at least a
      Majority in Liquidation Amount of the Preferred Securities held by the Holders
      present, either in person or by proxy, at such meeting shall constitute the
      action of the Holders of the Preferred Securities, unless this Trust Agreement
      requires a lesser or greater number of affirmative votes.

     

    SECTION
      6.3 Voting
      Rights.

     

    Holders
      shall be entitled to one vote for each $10,000 of Liquidation Amount represented
      by their Outstanding Trust Securities in respect of any matter as to which
      such
      Holders are entitled to vote.

     

    SECTION
      6.4 Proxies,
      Etc.

     

    
      
         

      

      
        -34-

        
          

        

      

      
         

      

    

     

    At
      any
      meeting of Holders, any Holder entitled to vote thereat may vote by proxy,
      provided,
      that no
      proxy shall be voted at any meeting unless it shall have been placed on file
      with the Administrative Trustees, or with such other officer or agent of the
      Trust as the Administrative Trustees may direct, for verification prior to
      the
      time at which such vote shall be taken. Pursuant to a resolution of the Property
      Trustee, proxies may be solicited in the name of the Property Trustee or one
      or
      more officers of the Property Trustee. Only Holders of record shall be entitled
      to vote. When Trust Securities are held jointly by several Persons, any one
      of
      them may vote at any meeting in person or by proxy in respect of such Trust
      Securities, but if more than one of them shall be present at such meeting in
      person or by proxy, and such joint owners or their proxies so present disagree
      as to any vote to be cast, such vote shall not be received in respect of such
      Trust Securities. A proxy purporting to be executed by or on behalf of a Holder
      shall be deemed valid unless challenged at or prior to its exercise, and the
      burden of proving invalidity shall rest on the challenger. No proxy shall be
      valid more than three years after its date of execution.

     

    SECTION
      6.5 Holder
      Action by Written Consent.

     

    Any
      action that may be taken by Holders of Preferred Securities at a meeting may
      be
      taken without a meeting and without prior notice if Holders holding at least
      a
      Majority in Liquidation Amount of all Preferred Securities entitled to vote
      in
      respect of such action (or such lesser or greater proportion thereof as shall
      be
      required by any other provision of this Trust Agreement) shall consent to the
      action in writing; provided,
      that
      notice of such action is promptly provided to the Holders of Preferred
      Securities that did not consent to such action. Any action that may be taken
      by
      the Holders of all the Common Securities may be taken without a meeting and
      without prior notice if such Holders shall consent to the action in
      writing.

     

    SECTION
      6.6 Record
      Date for Voting and Other Purposes.

     

    Except
      as
      provided in Section
      6.10(a),
      for the
      purposes of determining the Holders who are entitled to notice of and to vote
      at
      any meeting or to act by written consent, or to participate in any distribution
      on the Trust Securities in respect of which a record date is not otherwise
      provided for in this Trust Agreement, or for the purpose of any other action,
      the Administrative Trustees may from time to time fix a date, not more than
      ninety (90) days prior to the date of any meeting of Holders or the payment
      of a
      Distribution or other action, as the case may be, as a record date for the
      determination of the identity of the Holders of record for such
      purposes.

     

    SECTION
      6.7 Acts
      of Holders.

     

    (a) Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action provided or permitted by this Trust Agreement to be given, made 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
      thereof duly appointed in writing; and, except as otherwise expressly provided
      herein, such action shall become effective when such instrument or instruments
      are delivered to an Administrative Trustee. A depositary that is a Holder of
      a
      Global Preferred Security may provide its proxy or proxies to the beneficial
      owners of interests in any such Global Preferred Security though such
      Depositary’s standing instructions and customary practices. Such instrument or
      instruments (and the action embodied therein and evidenced 

     

    
      
         

      

      
        -35-

        
          

        

      

      
         

      

    

    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
      Trust Agreement and conclusive in favor of the Trustees, if made in the manner
      provided in this Section
      6.7.

     

    (b) The
      fact
      and date of the execution by any Person of any such instrument or writing may
      be
      proved by the affidavit of a witness of such execution or by a certificate
      of a
      notary public or other officer authorized by law to take acknowledgments of
      deeds, certifying that the individual signing such instrument or writing
      acknowledged to him the execution thereof. Where such execution is by a signer
      acting in a capacity other than such signer’s individual capacity, such
      certificate or affidavit shall also constitute sufficient proof of such signer’s
      authority. The fact and date of the execution of any such instrument or writing,
      or the authority of the Person executing the same, may also be proved in any
      other manner that any Trustee receiving the same deems sufficient.

     

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

     

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

     

    (e) Without
      limiting the foregoing, a Holder entitled hereunder to take any action hereunder
      with regard to any particular Trust Security may do so with regard to all or
      any
      part of the Liquidation Amount of such Trust Security or by one or more duly
      appointed agents each of which may do so pursuant to such appointment with
      regard to all or any part of such Liquidation Amount.

     

    (f) If
      any
      dispute shall arise among the Holders or the Trustees with respect to the
      authenticity, validity or binding nature of any request, demand, authorization,
      direction, notice, consent, waiver or other Act of such Holder or Trustee under
      this Article
      VI,
      then
      the determination of such matter by the Property Trustee shall be conclusive
      with respect to such matter.

     

    SECTION
      6.8 Inspection
      of Records.

     

    Upon
      reasonable written notice to the Administrative Trustees and the Property
      Trustee, the records of the Trust shall be open to inspection by any Holder
      during normal business hours for any purpose reasonably related to such Holder’s
      interest as a Holder.

     

    SECTION
      6.9 Limitations
      on Voting Rights.

     

    (a) Except
      as
      expressly provided in this Trust Agreement and in the Indenture and as otherwise
      required by law, no Holder of Preferred Securities shall have any right to
      vote
      or in any manner otherwise control the administration, operation and management
      of the Trust or the obligations of the parties hereto, nor shall anything herein
      set forth, or contained in the terms of 

     

    
      
         

      

      
        -36-

        
          

        

      

      
         

      

    

    the
      Securities Certificates, be construed so as to constitute the Holders from
      time
      to time as partners or members of an association.

     

    (b) So
      long
      as any Notes are held by the Property Trustee on behalf of the Trust, the
      Property Trustee shall not (i) direct the time, method and place of conducting
      any proceeding for any remedy available to the Note Trustee, or exercise any
      trust or power conferred on the Property Trustee with respect to the Notes,
      (ii)
      waive any past default that may be waived under Section 5.13 of the Indenture
      or
      waive compliance with any covenant or condition under Section 10.7 of the
      Indenture, (iii) exercise any right to rescind or annul a declaration that the
      principal of all the Notes shall be due and payable or (iv) consent to any
      amendment, modification or termination of the Indenture or the Notes, where
      such
      consent shall be required, without, in each case, obtaining the prior approval
      of the Holders of at least a Majority in Liquidation Amount of the Preferred
      Securities; provided,
      that
      where a consent under the Indenture would require the consent of each holder
      of
      Notes (or each Holder of Preferred Securities) affected thereby, no such consent
      shall be given by the Property Trustee without the prior written consent of
      each
      Holder of Preferred Securities. The Property Trustee shall not revoke any action
      previously authorized or approved by a vote of the Holders of the Preferred
      Securities, except by a subsequent vote of the Holders of the Preferred
      Securities. In addition to obtaining the foregoing approvals of the Holders
      of
      the Preferred Securities, prior to taking any of the foregoing actions, the
      Property Trustee shall, at the expense of the Depositor, obtain an Opinion
      of
      Counsel experienced in such matters to the effect that such action shall not
      cause the Trust to be taxable as a corporation or classified as other than
      a
      grantor trust for United States federal income tax purposes.

     

    (c) If
      any
      proposed amendment to the Trust Agreement provides for, or the Trustees
      otherwise propose to effect, (i) any action that would adversely affect in
      any
      material respect the powers, preferences or special rights of the Preferred
      Securities, whether by way of amendment to the Trust Agreement or otherwise
      or
      (ii) the dissolution, winding-up or termination of the Trust, other than
      pursuant to the terms of this Trust Agreement, then the Holders of Outstanding
      Preferred Securities as a class will be entitled to vote on such amendment
      or
      proposal and such amendment or proposal shall not be effective except with
      the
      approval of the Holders of at least a Majority in Liquidation Amount of the
      Preferred Securities. Notwithstanding any other provision of this Trust
      Agreement, no amendment to this Trust Agreement may be made if, as a result
      of
      such amendment, it would cause the Trust to be taxable as a corporation or
      classified as other than a grantor trust for United States federal income tax
      purposes.

     

    SECTION
      6.10 Acceleration
      of Maturity; Rescission of Annulment; Waivers of Past
      Defaults.

     

    (a) For
      so
      long as any Preferred Securities remain Outstanding, if, upon a Note Event
      of
      Default, the Note Trustee fails or the holders of not less than twenty five
      percent (25%) in principal amount of the outstanding Notes fail to declare
      the
      principal of all of the Notes to be immediately due and payable, the Holders
      of
      at least twenty five percent (25%) in Liquidation Amount of the Preferred
      Securities then Outstanding shall have the right to make such declaration by
      a
      notice in writing to the Property Trustee, the Depositor and the Note Trustee.
      At any time after a declaration of acceleration with respect to the Notes has
      been made and before a judgment or decree for payment of the money due has
      been
      obtained by the Note Trustee as 

     

    
      
         

      

      
        -37-

        
          

        

      

      
         

      

    

    provided
      in the Indenture, the Holders of at least a Majority in Liquidation Amount
      of
      the Preferred Securities, by written notice to the Property Trustee, the
      Depositor and the Note Trustee, may rescind and annul such declaration and
      its
      consequences if:

     

    (i) the
      Depositor has paid or deposited with the Note Trustee a sum sufficient to
      pay:

     

    (A) all
      overdue installments of interest on all of the Notes;

     

    (B) any
      accrued Additional Interest on all of the Notes;

     

    (C) the
      principal of and any premium, if any, on any Notes that have become due
      otherwise than by such declaration of acceleration and interest and Additional
      Interest thereon at the rate borne by the Notes; and

     

    (D) all
      sums
      paid or advanced by the Note Trustee under the Indenture and the reasonable
      compensation, expenses, disbursements and advances of the Note Trustee, the
      Property Trustee and their agents and counsel; and

     

    (ii) all
      Note
      Events of Default, other than the non-payment of the principal of the Notes
      that
      has become due solely by such acceleration, have been cured or waived as
      provided in Section 5.13 of the Indenture.

     

    Upon
      receipt by the Property Trustee of written notice requesting such an
      acceleration, or rescission and annulment thereof, by Holders of any part of
      the
      Preferred Securities, a record date shall be established for determining Holders
      of Outstanding Preferred Securities entitled to join in such notice, which
      record date shall be at the close of business on the day the Property Trustee
      receives such notice. The Holders of Preferred Securities on such record date,
      or their duly designated proxies, and only such Persons, shall be entitled
      to
      join in such notice, whether or not such Holders remain Holders after such
      record date; provided, that, unless such declaration of acceleration, or
      rescission and annulment, as the case may be, shall have become effective by
      virtue of the requisite percentage having joined in such notice prior to the
      day
      that is ninety (90) days after such record date, such notice of declaration
      of
      acceleration, or rescission and annulment, as the case may be, shall
      automatically and without further action by any Holder be canceled and of no
      further effect. Nothing in this paragraph shall prevent a Holder, or a proxy
      of
      a Holder, from giving, after expiration of such ninety (90)-day period, a new
      written notice of declaration of acceleration, or rescission and annulment
      thereof, as the case may be, that is identical to a written notice that has
      been
      canceled pursuant to the proviso to the preceding sentence, in which event
      a new
      record date shall be established pursuant to the provisions of this Section
      6.10(a).

     

    (b) For
      so
      long as any Preferred Securities remain Outstanding, to the fullest extent
      permitted by law and subject to the terms of this Trust Agreement and the
      Indenture, upon a Note Event of Default specified in paragraph (a) or (b) of
      Section 5.1 of the Indenture, any Holder of Preferred Securities shall have
      the
      right to institute a proceeding directly against the Depositor, pursuant to
      Section 5.8 of the Indenture, for enforcement of payment to such Holder of
      any
      amounts payable in respect of Notes having an aggregate principal amount equal
      to the aggregate Liquidation Amount of the Preferred Securities of such Holder.
      Except as set forth in 

     

    
      
         

      

      
        -38-

        
          

        

      

      
         

      

    

    Section 6.10(a)
      and this
Section
      6.10(b),
      the
      Holders of Preferred Securities shall have no right to exercise directly any
      right or remedy available to the holders of, or in respect of, the
      Notes.

     

    (c) Notwithstanding
      paragraphs (a) and (b) of this Section
      6.10,
      the
      Holders of at least a Majority in Liquidation Amount of the Preferred Securities
      may, on behalf of the Holders of all the Preferred Securities, waive any Note
      Event of Default, except any Note Event of Default arising from the failure
      to
      pay any principal of or any premium, if any, or interest on (including any
      Additional Interest) the Notes (unless such Note Event of Default has been
      cured
      and a sum sufficient to pay all matured installments of interest and all
      principal and premium, if any, on all Notes due otherwise than by acceleration
      has been deposited with the Note Trustee) or a Note Event of Default in respect
      of a covenant or provision that under the Indenture cannot be modified or
      amended without the consent of the holder of each outstanding Note. Upon any
      such waiver, such Note Event of Default shall cease to exist and any Note Event
      of Default arising therefrom shall be deemed to have been cured for every
      purpose of the Indenture; but no such waiver shall affect any subsequent Note
      Event of Default or impair any right consequent thereon.

     

    (d) Notwithstanding
      paragraphs (a) and (b) of this Section
      6.10,
      the
      Holders of at least a Majority in Liquidation Amount of the Preferred Securities
      may, on behalf of the Holders of all the Preferred Securities, waive any past
      or
      continuing Event of Default and its consequences. Upon such waiver, any such
      Event of Default shall cease to exist, and any Event of Default arising
      therefrom shall be deemed to have been cured, for every purpose of this Trust
      Agreement, but no such waiver shall extend to any subsequent or other Event
      of
      Default or impair any right consequent thereon.

     

    (e) The
      Holders of a Majority in Liquidation Amount of the Preferred Securities shall
      have the right to direct the time, method and place of conducting any proceeding
      for any remedy available to the Property Trustee in respect of this Trust
      Agreement or the Notes or exercising any trust or power conferred upon the
      Property Trustee under this Trust Agreement; provided,
      that,
      subject to Sections
      8.5
      and
8.7,
      the
      Property Trustee shall have the right to decline to follow any such direction
      if
      the Property Trustee being advised by counsel determines that the action so
      directed may not lawfully be taken, or if the Property Trustee in good faith
      shall, by an officer or officers of the Property Trustee, determine that the
      proceedings so directed would be illegal or involve it in personal liability
      or
      be unduly prejudicial to the rights of Holders not party to such direction,
      and
provided,
      further,
      that
      nothing in this Trust Agreement shall impair the right of the Property Trustee
      to take any action deemed proper by the Property Trustee and which is not
      inconsistent with such direction.

     

    ARTICLE
      VII

     

    REPRESENTATIONS
      AND WARRANTIES

     

    SECTION
      7.1 Representations
      and Warranties of the Property Trustee and the Delaware
      Trustee.

     

    
      The
        Property Trustee and the Delaware Trustee, each severally on behalf of and
        as to
        itself, hereby represents and warrants for the benefit of the Depositor and
        the
        Holders that:

    

    
      
         

      

      
        -39-

        
          

        

      

      
         

      

    

     

    (a) the
      Property Trustee is a national banking association, duly organized and validly
      existing under the laws of the United States;

     

    (b) the
      Property Trustee has full power, authority and legal right to execute, deliver
      and perform its obligations under this Trust Agreement and has taken all
      necessary action to authorize the execution, delivery and performance by it
      of
      this Trust Agreement;

     

    (c) the
      Delaware Trustee is a corporation, duly formed and validly existing under the
      laws of the State of Delaware;

     

    (d) the
      Delaware Trustee has full corporate power, authority and legal right to execute,
      deliver and perform its obligations under this Trust Agreement and has taken
      all
      necessary action to authorize the execution, delivery and performance by it
      of
      this Trust Agreement;

     

    (e) this
      Trust Agreement has been duly authorized, executed and delivered by the Property
      Trustee and the Delaware Trustee and constitutes the legal, valid and binding
      agreement of each of the Property Trustee and the Delaware Trustee enforceable
      against each of them in accordance with its terms, subject to applicable
      bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
      similar laws affecting creditors’ rights generally and to general principles of
      equity;

     

    (f) the
      execution, delivery and performance of this Trust Agreement have been duly
      authorized by all necessary corporate or other action on the part of the
      Property Trustee and the Delaware Trustee and do not require any approval of
      stockholders of the Property Trustee and the Delaware Trustee and such
      execution, delivery and performance will not (i) violate the Restated
      Organization Certificate or Articles of Association, as applicable, or By-laws
      of the Property Trustee or the Delaware Trustee, (ii) violate any provision
      of,
      or constitute, with or without notice or lapse of time, a default under, or
      result in the imposition of any lien on any properties included in the Trust
      Property pursuant to the provisions of any indenture, mortgage, credit
      agreement, license or other agreement or instrument to which the Property
      Trustee or the Delaware Trustee is a party or by which it is bound, or (iii)
      violate any applicable law, governmental rule or regulation of the United States
      or the State of Delaware, as the case may be, governing the banking, trust
      or
      general powers of the Property Trustee or the Delaware Trustee or any order,
      judgment or decree applicable to the Property Trustee or the Delaware
      Trustee;

     

    (g) neither
      the authorization, execution or delivery by the Property Trustee or the Delaware
      Trustee of this Trust Agreement nor the consummation of any of the transactions
      by the Property Trustee or the Delaware Trustee contemplated herein requires
      the
      consent or approval of, the giving of notice to, the registration with or the
      taking of any other action with respect to any governmental authority or agency
      under any existing law of the United States or the State of Delaware governing
      the banking, trust or general powers of the Property Trustee or the Delaware
      Trustee, as the case may be; and

     

    (h) to
      the
      best of each of the Property Trustee’s and the Delaware Trustee’s knowledge,
      there are no proceedings pending or threatened against or affecting the Property
      

    
      
         

      

      
        -40-

        
          

        

      

      
         

      

    

    Trustee
      or the Delaware Trustee in any court or before any governmental authority,
      agency or arbitration board or tribunal that, individually or in the aggregate,
      would materially and adversely affect the Trust or would question the right,
      power and authority of the Property Trustee or the Delaware Trustee, as the
      case
      may be, to enter into or perform its obligations as one of the Trustees under
      this Trust Agreement.

     

    SECTION
      7.2 Representations
      and Warranties of Depositor.

     

    The
      Depositor hereby represents and warrants for the benefit of the Holders and
      the
      Trustees that:

     

    (a) the
      Depositor is a corporation duly organized, validly existing and in good standing
      under the laws of its state of incorporation;

     

    (b) the
      Depositor has full corporate power, authority and legal right to execute,
      deliver and perform its obligations under this Trust Agreement and has taken
      all
      necessary action to authorize the execution, delivery and performance by it
      of
      this Trust Agreement;

     

    (c) this
      Trust Agreement has been duly authorized, executed and delivered by the
      Depositor and constitutes the legal, valid and binding agreement of the
      Depositor enforceable against the Depositor in accordance with its terms,
      subject to applicable bankruptcy, insolvency and similar laws affecting
      creditors’ rights generally and to general principles of equity;

     

    (d) the
      Securities Certificates issued at the Closing Date on behalf of the Trust have
      been duly authorized and will have been duly and validly executed, issued and
      delivered by the applicable Trustees pursuant to the terms and provisions of,
      and in accordance with the requirements of, this Trust Agreement and the Holders
      will be, as of such date, entitled to the benefits of this Trust
      Agreement;

     

    (e) the
      execution, delivery and performance of this Trust Agreement have been duly
      authorized by all necessary corporate or other action on the part of the
      Depositor and do not require any approval of stockholders of the Depositor
      and
      such execution, delivery and performance will not (i) violate the articles
      of
      incorporation or by-laws (or other organizational documents) of the Depositor
      or
      (ii) violate any applicable law, governmental rule or regulation governing
      the
      Depositor or any material portion of its property or any order, judgment or
      decree applicable to the Depositor or any material portion of its
      property;

     

    (f) neither
      the authorization, execution or delivery by the Depositor of this Trust
      Agreement nor the consummation of any of the transactions by the Depositor
      contemplated herein requires the consent or approval of, the giving of notice
      to, the registration with or the taking of any other action with respect to
      any
      governmental authority or agency under any existing law governing the Depositor
      or any material portion of its property; and

     

    (g) there
      are
      no proceedings pending or, to the best of the Depositor’s knowledge, threatened
      against or affecting the Depositor or any material portion of its property
      in
      any court or before any governmental authority, agency or arbitration board
      or
      tribunal that, individually or in the aggregate, would materially and adversely
      affect the Trust or would question the right, 

     

    
      
         

      

      
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    power
      and
      authority of the Depositor, as the case may be, to enter into or perform its
      obligations under this Trust Agreement.

     

    ARTICLE
      VIII

     

    THE
      TRUSTEES

     

    SECTION
      8.1 Number
      of Trustees.

     

    The
      number of Trustees shall be five (5); provided, that the Property Trustee and
      the Delaware Trustee may be the same Person, in which case the number of
      Trustees shall be four (4). The number of Trustees may be increased or decreased
      by Act of the Holder of the Common Securities subject to Sections
      8.2,
      8.3,
      and
8.4.
      The
      death, resignation, retirement, removal, bankruptcy, incompetence or incapacity
      to perform the duties of a Trustee shall not operate to annul, dissolve or
      terminate the Trust.

     

    SECTION
      8.2 Property
      Trustee Required.

     

    There
      shall at all times be a Property Trustee hereunder with respect to the Trust
      Securities. The Property Trustee shall be a corporation or national banking
      association organized and doing business under the laws of the United States
      or
      of any state thereof, authorized to exercise corporate trust powers, having,
      or
      having a parent that has, a combined capital and surplus of at least fifty
      million dollars ($50,000,000), subject to supervision or examination by federal
      or state authority and having an office within the United States. If any such
      Person publishes reports of condition at least annually pursuant to law or
      to
      the requirements of its supervising or examining authority, then for the
      purposes of this Section
      8.2,
      the
      combined capital and surplus of such Person 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 Property Trustee shall cease to be eligible in
      accordance with the provisions of this Section
      8.2,
      it
      shall resign immediately in the manner and with the effect hereinafter specified
      in this Article
      VIII.

     

    SECTION
      8.3 Delaware
      Trustee Required.

     

    (a) If
      required by the Delaware Statutory Trust Act, there shall at all times be a
      Delaware Trustee with respect to the Trust Securities. The Delaware Trustee
      shall either be (i) a natural person who is at least 21 years of age and a
      resident of the State of Delaware or (ii) a legal entity that has its principal
      place of business in the State of Delaware, otherwise meets the requirements
      of
      applicable Delaware law and shall act through one or more persons authorized
      to
      bind such entity. If at any time the Delaware Trustee shall cease to be eligible
      in accordance with the provisions of this Section
      8.3,
      it
      shall resign immediately in the manner and with the effect hereinafter specified
      in this Article
      VIII.
      The
      Delaware Trustee shall have the same rights, privileges and immunities as the
      Property Trustee.

     

    (b) The
      Delaware Trustee shall not be entitled to exercise any powers, nor shall the
      Delaware Trustee have any of the duties and responsibilities, of the Property
      Trustee or the Administrative Trustees set forth herein. The Delaware Trustee
      shall be one of the trustees of the Trust for the sole and limited purpose
      of
      fulfilling the requirements of Section 3807 of the Delaware Statutory Trust
      Act
      and for taking such actions as are required to be taken by a
Delaware trustee under the Delaware Statutory
    Trust Act. The duties
    (including fiduciary duties), 
     

    
      
         

      

      
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    liabilities
      and obligations of the Delaware Trustee shall be limited to (a) accepting legal
      process served on the Trust in the State of Delaware and (b) the execution
      of
      any certificates required to be filed with the Secretary of State of the State
      of Delaware that the Delaware Trustee is required to execute under Section
      3811
      of the Delaware Statutory Trust Act and there shall be no other duties
      (including fiduciary duties) or obligations, express or implied, at law or
      in
      equity, of the Delaware Trustee.

     

    SECTION
      8.4 Appointment
      of Administrative Trustees.

     

    (a) There
      shall at all times be one or more Administrative Trustees hereunder with respect
      to the Trust Securities. Each Administrative Trustee shall be either a natural
      person who is at least 21 years of age or a legal entity that shall act through
      one or more persons authorized to bind that entity. Each of the individuals
      identified as an “Administrative
      Trustee”
in
      the
      preamble of this Trust Agreement hereby accepts his or her appointment as
      such.

     

    (b) Except
      where a requirement for action by a specific number of Administrative Trustees
      is expressly set forth in this Trust Agreement, any act required or permitted
      to
      be taken by, and any power of the Administrative Trustees may be exercised
      by,
      or with the consent of, any one such Administrative Trustee. Whenever a vacancy
      in the number of Administrative Trustees shall occur, until such vacancy is
      filled by the appointment of an Administrative Trustee in accordance with
Section
      8.11,
      the
      Administrative Trustees in office, regardless of their number (and
      notwithstanding any other provision of this Trust Agreement), shall have all
      the
      powers granted to the Administrative Trustees and shall discharge all the duties
      imposed upon the Administrative Trustees by this Trust Agreement.

     

    SECTION
      8.5 Duties
      and Responsibilities of the Trustees.

     

    (a) The
      rights, immunities, duties and responsibilities of the Trustees shall be as
      provided by this Trust Agreement and there shall be no other duties (including
      fiduciary duties) or obligations, express or implied, at law or in equity,
      of
      the Trustees; provided,
      however,
      that if
      an Event of Default known to the Property Trustee has occurred and is
      continuing, the Property Trustee shall, prior to the receipt of directions,
      if
      any, from the Holders of at least a Majority in Liquidation Amount of the
      Preferred Securities, exercise such of the rights and powers vested in it by
      this Trust Agreement, and use the same degree of care and skill in its exercise,
      as a prudent person would exercise or use under the circumstances in the conduct
      of such person’s own affairs. Notwithstanding the foregoing, no provision of
      this Trust Agreement shall require any of the Trustees 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 or their rights or
      powers, if it or they 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. Whether or not herein expressly so provided, every
      provision of this Trust Agreement relating to the conduct or affecting the
      liability of or affording protection to the Trustees shall be subject to the
      provisions of this Section
      8.5.
      Nothing
      in this Trust Agreement shall be construed to release any Administrative Trustee
      from liability for his or her own negligent action, negligent failure to act;
      or
      his or her own willful misconduct. To the extent that, at law or in equity,
      a
      Trustee has duties and liabilities relating to the Trust or to the Holders,
      such
      Trustee shall not be liable to the Trust or to any Holder for such Trustee’s
      good faith reliance on the provisions of this Trust 

     

    
      
         

      

      
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    Agreement.
      The provisions of this Trust Agreement, to the extent that they restrict the
      duties and liabilities of the Trustees otherwise existing at law or in equity,
      are agreed by the Depositor and the Holders to replace such other duties and
      liabilities of the Trustees.

     

    (b) All
      payments made by the Property Trustee or a Paying Agent in respect of the Trust
      Securities shall be made only from the revenue and proceeds from the Trust
      Property and only to the extent that there shall be sufficient revenue or
      proceeds from the Trust Property to enable the Property Trustee or a Paying
      Agent to make payments in accordance with the terms hereof. Each Holder, by
      its
      acceptance of a Trust Security, agrees that it will look solely to the revenue
      and proceeds from the Trust Property to the extent legally available for
      distribution to it as herein provided and that the Trustees are not personally
      liable to it for any amount distributable in respect of any Trust Security
      or
      for any other liability in respect of any Trust Security. This Section
      8.5(b)
      does not
      limit the liability of the Trustees expressly set forth elsewhere in this Trust
      Agreement.

     

    (c) No
      provisions of this Trust Agreement shall be construed to relieve the Property
      Trustee from liability with respect to matters that are within the authority
      of
      the Property Trustee under this Trust Agreement for its own negligent action,
      negligent failure to act or willful misconduct, except that:

     

    (i) the
      Property Trustee shall not be liable for any error or judgment made in good
      faith by an authorized officer of the Property Trustee, unless it shall be
      proved that the Property Trustee was negligent in ascertaining the pertinent
      facts;

     

    (ii) the
      Property 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 at least a Majority in Liquidation Amount of the Preferred Securities
      relating to the time, method and place of conducting any proceeding for any
      remedy available to the Property Trustee hereunder or under the Indenture,
      or
      exercising any trust or power conferred upon the Property Trustee under this
      Trust Agreement;

     

    (iii) the
      Property Trustee’s sole duty with respect to the custody, safe keeping and
      physical preservation of the Notes and the Payment Account shall be to deal
      with
      such Property in a similar manner as the Property Trustee deals with similar
      property for its own account, subject to the protections and limitations on
      liability afforded to the Property Trustee under this Trust
      Agreement;

     

    (iv) the
      Property Trustee shall not be liable for any interest on any money received
      by
      it except as it may otherwise agree in writing with the Depositor; and money
      held by the Property Trustee need not be segregated from other funds held by
      it
      except in relation to the Payment Account maintained by the Property Trustee
      pursuant to Section 3.1
      and
      except to the extent otherwise required by law; and

     

    (v) the
      Property Trustee shall not be responsible for monitoring the compliance by
      the
      Administrative Trustees or the Depositor with their respective duties under
      this Trust Agreement, nor shall the Property Trustee be liable for the default
      or misconduct of any other Trustee or the Depositor.

     

    
      
         

      

      
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    SECTION
      8.6 Notices
      of Defaults and Extensions.

     

    (a) Within
      ninety (90) days after the occurrence of a default actually known to the
      Property Trustee, the Property Trustee shall transmit notice of such default
      to
      the Holders, the Administrative Trustees and the Depositor, unless such default
      shall have been cured or waived. For the purpose of this Section
      8.6,
      the
      term “default” means any event that is, or after notice or lapse of time or both
      would become, an Event of Default.

     

    (b) Reserved.

     

    (c) The
      Property Trustee shall not be charged with knowledge of any Event of Default
      unless either (i) a Responsible Officer of the Property Trustee shall have
      actual knowledge or (ii) the Property Trustee shall have received written notice
      thereof from the Depositor, an Administrative Trustee or a Holder.

     

    (d) The
      Property Trustee shall notify all Holders of the Preferred Securities of any
      notice of default received with respect to the Notes.

     

    SECTION
      8.7 Certain
      Rights of Property Trustee.

     

    Subject
      to the provisions of Section 8.5:

     

    (a) the
      Property Trustee may conclusively rely and shall be protected in acting or
      refraining from acting in good faith and in accordance with the terms hereof
      upon any resolution, Opinion of Counsel, certificate, written representation
      of
      an Administrative Trustee, a Holder or transferee, certificate of auditors
      or
      any other resolution, certificate, statement, instrument, opinion, report,
      notice, request, direction, consent, order, appraisal, 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;

     

    (b) if
      (i) in
      performing its duties under this Trust Agreement the Property Trustee is
      required to decide between alternative courses of action, (ii) in construing
      any
      of the provisions of this Trust Agreement the Property Trustee finds a provision
      ambiguous or inconsistent with any other provisions contained herein or (iii)
      the Property Trustee is unsure of the application of any provision of this
      Trust
      Agreement, then, except as to any matter as to which the Holders of the
      Preferred Securities are entitled to vote under the terms of this Trust
      Agreement, the Property Trustee shall deliver a notice to the Depositor
      requesting the Depositor’s written instruction as to the course of action to be
      taken and the Property Trustee shall take such action, or refrain from taking
      such action, as the Property Trustee shall be instructed in writing to take,
      or
      to refrain from taking, by the Depositor; provided,
      that if
      the Property Trustee does not receive such instructions of the Depositor within
      ten (10) Business Days after it has delivered such notice or such reasonably
      shorter period of time set forth in such notice, the Property Trustee may,
      but
      shall be under no duty to, take such action, or refrain from taking such action,
      as the Property Trustee shall deem advisable and in the best interests of the
      Holders, in which event the Property Trustee shall have no liability except
      for
      its own negligence, bad faith or willful misconduct;

     

    
      
         

      

      
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    (c) any
      direction or act of the Depositor contemplated by this Trust Agreement shall
      be
      sufficiently evidenced by an Officers’ Certificate unless otherwise expressly
      provided herein;

     

    (d) any
      direction or act of an Administrative Trustee contemplated by this Trust
      Agreement shall be sufficiently evidenced by a certificate executed by such
      Administrative Trustee and setting forth such direction or act;

     

    (e) the
      Property Trustee shall have no duty to see to any recording, filing or
      registration of any instrument (including any financing or continuation
      statement or any filing under tax or securities laws) or any re-recording,
      re-filing or re-registration thereof;

     

    (f) the
      Property Trustee may consult with counsel (which counsel may be counsel to
      the
      Property Trustee, the Depositor or any of its Affiliates, and may include any
      of
      its employees) and the advice of such 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 and in accordance with
      such advice; the Property Trustee shall have the right at any time to seek
      instructions concerning the administration of this Trust Agreement from any
      court of competent jurisdiction;

     

    (g) the
      Property Trustee shall be under no obligation to exercise any of the rights
      or
      powers vested in it by this Trust Agreement at the request or direction of
      any
      of the Holders pursuant to this Trust Agreement, unless such Holders shall
      have
      offered to the Property Trustee reasonable security or indemnity against the
      costs, expenses (including reasonable attorneys’ fees and expenses) and
      liabilities that might be incurred by it in compliance with such request or
      direction, including reasonable advances as may be requested by the Property
      Trustee; provided,
      however,
      that
      nothing contained in this Section
      8.7(g)
      shall be
      construed to relieve the Property Trustee, upon the occurrence of an Event
      of
      Default (of which the Property Trustee has knowledge (as defined in Section
      8.6(c) hereof)), of its obligation to exercise the rights and powers vested
      in
      it by this Trust Agreement; provided, further, that nothing contained in this
      Section
      8.7(g)
      shall
      prevent the Property Trustee from exercising its rights under Section
      8.11
      hereof;

     

    (h) the
      Property 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, approval, bond, debenture,
      note or other evidence of indebtedness or other paper or document, unless
      requested in writing to do so by one or more Holders, but the Property Trustee
      may make such further inquiry or investigation into such facts or matters as
      it
      may see fit, and, if the Property Trustee shall determine to make such inquiry
      or investigation, it shall be entitled to examine the books, records and
      premises of the Depositor, personally or by agent or attorney;

     

    
      (i) the
        Property Trustee may execute any of the trusts or powers hereunder or perform
        any duties hereunder either directly or by or through its agents, attorneys,
        custodians or nominees and the Property Trustee shall not be responsible
        for any
        negligence or misconduct on the part of any such agent, attorney, custodian
        or
        nominee appointed with due care by it hereunder;

    

     

    
      
         

      

      
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    (j) whenever
      in the administration of this Trust Agreement the Property Trustee shall deem
      it
      desirable to receive instructions with respect to enforcing any remedy or right
      hereunder, the Property Trustee (i) may request instructions from the Holders
      (which instructions may only be given by the Holders of the same proportion
      in
      Liquidation Amount of the Trust Securities as would be entitled to direct the
      Property Trustee under this Trust Agreement in respect of such remedy, right
      or
      action), (ii) may refrain from enforcing such remedy or right or taking such
      other action until such instructions are received and (iii) shall be protected
      in acting in accordance with such instructions;

     

    (k) except
      as
      otherwise expressly provided by this Trust Agreement, the Property Trustee
      shall
      not be under any obligation to take any action that is discretionary under
      the
      provisions of this Trust Agreement;

     

    (l) without
      prejudice to any other rights available to the Property Trustee under applicable
      law, when the Property Trustee incurs expenses or renders services in connection
      with a Bankruptcy Event, such expenses (including legal fees and expenses of
      its
      agents and counsel) and the compensation for such services are intended to
      constitute expenses of administration under any bankruptcy law or law relating
      to creditors rights generally; 

     

    (m) whenever
      in the administration of this Trust Agreement the Property Trustee shall deem
      it
      desirable that a matter be proved or established prior to taking, suffering
      or
      omitting any action hereunder, the Property Trustee (unless other evidence
      be
      herein specifically prescribed) may, in the absence of bad faith on its part,
      request and rely on an Officers’ Certificate which, upon receipt of such
      request, shall be promptly delivered by the Depositor; and

     

    (n) in
      the
      event the Property Trustee is also acting as Paying Agent, Authenticating Agent
      (as defined in the Indenture), Securities Registrar or Calculation Agent
      hereunder, the rights and protections afforded the Property Trustee pursuant
      to
      this Article VIII shall also be afforded to such Paying Agent, Authenticating
      Agent, Securities Registrar or Calculation Agent. 

     

    No
      provision of this Trust Agreement shall be deemed to impose any duty or
      obligation on any Trustee to perform any act or acts or exercise any right,
      power, duty or obligation conferred or imposed on it, in any jurisdiction in
      which it shall be illegal, or in which such Person shall be unqualified or
      incompetent in accordance with applicable law, to perform any such act or acts,
      or to exercise any such right, power, duty or obligation.

     

    SECTION
      8.8 Delegation
      of Power.

     

    Any
      Trustee may, by power of attorney consistent with
      applicable law, delegate to any other natural person over the age of 21 its,
      his
      or her power for the purpose of executing any documents contemplated in Section
      2.5.
      The
      Trustees shall have power to delegate from time to time to such of their number
      or to the Depositor the doing of such things and the execution of such
      instruments either in the name of the Trust or the names of the Trustees or
      otherwise as the 

    
      
         

      

      
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    Trustees
      may deem expedient, to the extent such delegation is not prohibited by
      applicable law or contrary to the provisions of this Trust
      Agreement.

     

    SECTION
      8.9 May
      Hold Securities.

     

    Any
      Trustee or any other agent of any Trustee or the Trust, in its individual or
      any
      other capacity, may become the owner or pledgee of Trust Securities and except
      as provided in the definition of the term “Outstanding” in Article
      I,
      may
      otherwise deal with the Trust with the same rights it would have if it were
      not
      a Trustee or such other agent.

     

    SECTION
      8.10 Compensation;
      Reimbursement; Indemnity. 

     

    The
      Depositor agrees:

     

    (a) to
      pay to
      the Trustees from time to time such reasonable compensation for all services
      rendered by them hereunder as may be agreed by the Depositor and the Trustees
      from time to time (which compensation shall not be limited by any provision
      of
      law in regard to the compensation of a trustee of an express
      trust);

     

    (b) to
      reimburse the Trustees upon request for all reasonable expenses, disbursements
      and advances incurred or made by the Trustees in accordance with any provision
      of this Trust Agreement (including the reasonable compensation and the expenses
      and disbursements of their agents and counsel), except any such expense,
      disbursement or advance as may be attributable to their gross negligence, bad
      faith or willful misconduct; and

     

    (c) to
      the
      fullest extent permitted by applicable law, to indemnify and hold harmless
      (i)
      each Trustee, (ii) any Affiliate of any Trustee, (iii) any officer, director,
      shareholder, employee, representative or agent of any Trustee or any Affiliate
      of any Trustee and (iv) any employee or agent of the Trust (referred to herein
      as an “Indemnified Person”) from and against any loss, damage, liability, tax
      (other than income, franchise or other taxes imposed on amounts paid pursuant
      to
Section
      8.10(a)
      or
(b)
      hereof),
      penalty, expense or claim of any kind or nature whatsoever incurred without
      negligence, bad faith or willful misconduct on its part, arising out of or
      in
      connection with the acceptance or administration of the Trust hereunder,
      including the advancement of funds to cover 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.

     

    The
      Trust
      shall have no payment, reimbursement or indemnity obligations to the Trustees
      under this Section
      8.10.
      The
      provisions of this Section
      8.10
      shall
      survive the termination of this Trust Agreement and the earlier removal or
      resignation of any Trustee.

     

    
      No
        Trustee may claim any Lien on any Trust Property whether before or after
        termination of the Trust as a result of any amount due pursuant to this
Section
        8.10.

       

      To
        the
        fullest extent permitted by law, in no event shall the Trustees be liable
        for
        any indirect, special, punitive or consequential loss or damage of any kind
        whatsoever, including, but 

    

     

    
      
         

      

      
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    not
      limited to, lost profits, even if the Trustee has been advised of the likelihood
      of such loss or damage and regardless of the form of action.

     

    In
      no
      event shall the Trustees be liable for any failure or delay in the performance
      of its obligations hereunder because of circumstances beyond its control,
      including, but not limited to, acts of God, flood, war (whether declared or
      undeclared), terrorism, fire, riot, embargo, government action, including any
      laws, ordinances, regulations, governmental action or the like which delay,
      restrict or prohibit the providing of the services contemplated by this Trust
      Agreement.

     

    SECTION
      8.11 Resignation
      and Removal; Appointment of Successor.

     

    (a) No
      resignation or removal of any Trustee and no appointment of a successor Trustee
      pursuant to this Article
      VIII
      shall
      become effective until the acceptance of appointment by the successor Trustee
      in
      accordance with the applicable requirements of Section
      8.12.

     

    (b) A
      Trustee
      may resign at any time by giving written notice thereof to the Depositor and,
      in
      the case of the Property Trustee and the Delaware Trustee, to the
      Holders.

     

    (c) Unless
      an
      Event of Default shall have occurred and be continuing, the Property Trustee
      or
      the Delaware Trustee, or both of them, may be removed (with or without cause)
      at
      any time by Act of the Holder of Common Securities. If an Event of Default
      shall
      have occurred and be continuing, the Property Trustee or the Delaware Trustee,
      or both of them, may be removed (with or without cause) at such time by Act
      of
      the Holders of at least a Majority in Liquidation Amount of the Preferred
      Securities, delivered to the removed Trustee (in its individual capacity and
      on
      behalf of the Trust). An Administrative Trustee may be removed (with or without
      cause) only by Act of the Holder of the Common Securities at any
      time.

     

    (d) If
      any
      Trustee shall resign, be removed or become incapable of acting as Trustee,
      or if
      a vacancy shall occur in the office of any Trustee for any reason, at a time
      when no Event of Default shall have occurred and be continuing, the Holder
      of
      the Common Securities, by Act of the Holder of the Common Securities, shall
      promptly appoint a successor Trustee or Trustees, and such successor Trustee
      and
      the retiring Trustee shall comply with the applicable requirements of
Section
      8.12.
      If the
      Property Trustee or the Delaware Trustee shall resign, be removed or become
      incapable of continuing to act as the Property Trustee or the Delaware Trustee,
      as the case may be, at a time when an Event of Default shall have occurred
      and
      be continuing, the Holders of the Preferred Securities, by Act of the Holders
      of
      a Majority in Liquidation Amount of the Preferred Securities, shall promptly
      appoint a successor Property Trustee or Delaware Trustee, and such successor
      Property Trustee or Delaware Trustee and the retiring Property Trustee or
      Delaware Trustee shall comply with the applicable requirements of Section
      8.12.
      If an
      Administrative Trustee shall resign, be removed or become incapable of acting
      as
      Administrative Trustee, at a time when an Event of Default shall have occurred
      and be continuing, the Holder of the Common Securities by Act of the Holder
      of
      Common Securities shall promptly appoint a successor Administrative Trustee
      and
      such successor Administrative Trustee and the retiring Administrative Trustee
      shall comply with the applicable requirements of Section
      8.12.
      If no
      successor Trustee shall have been so appointed by the Holder of the Common
      Securities or Holders of the Preferred Securities, as the case may be, and
      accepted appointment 

     

    
      
         

      

      
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    in
      the
      manner required by Section
      8.12
      within
      thirty (30) days after the giving of a notice of resignation by a Trustee,
      the
      removal of a Trustee, or a Trustee becoming incapable of acting as such Trustee,
      any Holder who has been a Holder of Preferred Securities for at least six (6)
      months may, on behalf of himself and all others similarly situated, and any
      resigning Trustee may, in each case, at the expense of the Depositor, petition
      any court of competent jurisdiction for the appointment of a successor
      Trustee.

     

    (e) The
      Depositor shall give notice of each resignation and each removal of the Property
      Trustee or the Delaware Trustee and each appointment of a successor Property
      Trustee or Delaware Trustee to all Holders in the manner provided in
Section
      10.8.
      Each
      notice shall include the name of the successor Property Trustee or Delaware
      Trustee and the address of its Corporate Trust Office if it is the Property
      Trustee.

     

    (f) Notwithstanding
      the foregoing or any other provision of this Trust Agreement, in the event
      any
      Administrative Trustee or a Delaware Trustee who is a natural person dies or
      becomes, in the opinion of the Holder of Common Securities, incompetent or
      incapacitated, the vacancy created by such death, incompetence or incapacity
      may
      be filled by (i) the unanimous act of the remaining Administrative Trustees
      if
      there are at least two of them or (ii) otherwise by the Holder of the Common
      Securities (with the successor in each case being a Person who satisfies the
      eligibility requirement for Administrative Trustees or Delaware Trustee, as
      the
      case may be, set forth in Sections
      8.3
      and
8.4).

     

    (g) Upon
      the
      appointment of a successor Delaware Trustee, such successor Delaware Trustee
      shall file a Certificate of Amendment to the Certificate of Trust in accordance
      with Section 3810 of the Delaware Statutory Trust Act.

     

    SECTION
      8.12 Acceptance
      of Appointment by Successor.

     

    (a) In
      case
      of the appointment hereunder of a successor Trustee, each successor Trustee
      shall execute and deliver to the Depositor and to the retiring Trustee an
      instrument accepting such appointment, and thereupon the resignation or removal
      of the retiring Trustee shall become effective 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; but, on request
      of
      the Trust or any successor Trustee such retiring Trustee shall, upon payment
      of
      its charges, duly assign, transfer and deliver to such successor Trustee all
      Trust Property, all proceeds thereof and money held by such retiring Trustee
      hereunder with respect to the Trust Securities and the Trust.

     

    (b) Upon
      request of any such successor Trustee, the Trust (or the retiring Trustee if
      requested by the Depositor) 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 the preceding paragraph.

     

    
      (c) 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
        VIII.

       

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

    

    
      
         

      

      
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    Any
      Person into which the Property Trustee or the Delaware Trustee may be merged
      or
      converted or with which it may be consolidated, or any Person resulting from
      any
      merger, conversion or consolidation to which such Trustee shall be a party,
      or
      any Person succeeding to all or substantially all the corporate trust business
      of such Trustee, shall be the successor of such Trustee hereunder, without
      the
      execution or filing of any paper or any further act on the part of any of the
      parties hereto, provided, that such Person shall be otherwise qualified and
      eligible under this Article
      VIII.

     

    SECTION
      8.14 Trustees
      Not Individually Responsible for Recitals and Issuance of Securities &
Representations.

     

    The
      recitals contained herein and in the Securities Certificates shall be taken
      as
      the statements of the Trust and the Depositor, and the Trustees do not assume
      any responsibility for their correctness. The Trustees make no representations
      as to the title to, or value or condition of, the property of the Trust or
      any
      part thereof, nor as to the validity or sufficiency of this Trust Agreement,
      the
      Notes or the Trust Securities. The Trustees shall not be accountable for the
      use
      or application by the Depositor of the proceeds of the Notes.

     

    It
      is
      expressly understood and agreed by the parties hereto that insofar as any
      document, agreement or certificate is executed on behalf of the Trust by any
      Trustee (i) such document, agreement or certificate is executed and delivered
      by
      such Trustee, not in its individual capacity but solely as Trustee under this
      Trust Agreement in the exercise of the powers and authority conferred and vested
      in it, (ii) each of the representations, undertakings and agreements made on
      the
      part of the Trust is made and intended not as representations, warranties,
      covenants, undertakings and agreements by any Trustee in its individual capacity
      but is made and intended for the purpose of binding only the Trust and (iii)
      under no circumstances shall any Trustee in its individual capacity be
      personally liable for the payment of any indebtedness or expenses of the Trust
      or be liable for the breach or failure of any obligation, representation,
      warranty or covenant made or undertaken by the Trust under this Trust Agreement
      or any other document, agreement or certificate.

     

    SECTION
      8.15 Property
      Trustee May File Proofs of Claim.

     

    (a) In
      case
      of any Bankruptcy Event (or event that with the passage of time would become
      a
      Bankruptcy Event) relative to the Trust or any other obligor upon the Trust
      Securities or the property of the Trust or of such other obligor or their
      creditors, the Property Trustee (irrespective of whether any Distributions
      on
      the Trust Securities shall then be due and payable and irrespective of whether
      the Property Trustee shall have made any demand on the Trust for the payment
      of
      any past due Distributions) shall be entitled and empowered, to the fullest
      extent permitted by law, by intervention in such proceeding or
      otherwise:

     

    (i) to
      file
      and prove a claim for the whole amount of any Distributions owing and unpaid
      in
      respect of the Trust Securities and to file such other papers or documents
      as
may
      be necessary or advisable in order to have the claims of the Property Trustee
      (including any claim for the reasonable compensation, expenses, disbursements
      and advances of the Property Trustee, its agents and counsel) and of the Holders
      allowed in such judicial proceeding; and

     

    
      
         

      

      
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    (ii) to
      collect and receive any monies 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 proceeding is hereby authorized by each Holder
      to
      make such payments to the Property Trustee and, in the event the Property
      Trustee shall consent to the making of such payments directly to the Holders,
      to
      pay to the Property Trustee first any amount due it for the reasonable
      compensation, expenses, disbursements and advances of the Property Trustee,
      its
      agents and counsel, and any other amounts due the Property Trustee.

     

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

     

    SECTION
      8.16 Reports
      to the Property Trustee.

     

    (a) The
      Depositor and the Administrative Trustees shall deliver to the Property Trustee,
      not later than forty five (45) days after the end of each of the first three
      fiscal quarters of the Depositor and not later than ninety (90) days after
      the
      end of each fiscal year of the Trust ending after the date of this Trust
      Agreement, an Officers’ Certificate covering the preceding fiscal quarter or
      fiscal year, as the case may be, stating whether or not to the knowledge of
      the
      signers thereof the Depositor and the Trust are in default in the performance
      or
      observance of any of the terms, provisions and conditions of this Trust
      Agreement (without regard to any period of grace or requirement of notice
      provided hereunder) and, if the Depositor or the Trust shall be in default,
      specifying all such defaults and the nature and status thereof of which they
      have knowledge.

     

    (b) The
      Depositor shall furnish (i) to the Property Trustee; (ii) to the Purchaser
      at
      2107 Wilson Blvd., Suite 400, Arlington, VA 22201, Attention: Robert Hurley,
      Chief Financial Officer, or at such other address as designated by Purchaser)
      and (iii) any Owner of the Preferred Securities reasonably identified to the
      Depositor and the Trust (which identification may be made either by such Owner
      or by Purchaser) a duly completed and executed certificate substantively and
      substantially in the form attached hereto as Exhibit
      F,
      including the financial statements referenced in such Exhibit, which certificate
      and financial statements shall be so furnished not later than forty five (45)
      days after the end of each of the first three fiscal quarters of each fiscal
      year of the Depositor and not later than ninety (90) days after the end of
      each
      fiscal year of the Depositor.

     

    (c) The
      Depositor shall furnish to the Owners of the Preferred Securities and to
      prospective purchasers thereof, upon their request, the information required
      to
      be furnished pursuant
      to Rule 144(A)(d)(4) under the Securities Act. The delivery requirement set
      forth in the preceding sentence may be satisfied by compliance with Section
      8.16(b) hereof
       

      (d) The
        Property Trustee may obtain all reports, certificates and information, which
        it
        is entitled to obtain under each of the Operative
        Documents.

    

     

    
      
         

      

      
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    ARTICLE
      IX

     

    TERMINATION,
      LIQUIDATION AND MERGER

     

    SECTION
      9.1 Dissolution
      Upon Expiration Date.

     

    Unless
      earlier dissolved, the Trust shall automatically dissolve on February 5, 2027
      (the “Expiration
      Date”),
      and
      the Trust Property shall be liquidated in accordance with Section
      9.4.

     

    SECTION
      9.2 Early
      Termination.

     

    The
      first
      to occur of any of the following events is an “Early
      Termination Event”,
      upon
      the occurrence of which the Trust shall be dissolved:

     

    (a) the
      occurrence of a Bankruptcy Event in respect of, or the dissolution or
      liquidation of, the Depositor, in its capacity as the Holder of the Common
      Securities, unless the Depositor shall have transferred the Common Securities
      as
      provided by Section
      5.11,
      in
      which case this provision shall refer instead to any such successor Holder
      of
      the Common Securities;

     

    (b) the
      written direction to the Property Trustee from the Holder of the Common
      Securities at any time to dissolve the Trust and, after satisfaction of any
      liabilities of the Trust as required by applicable law and in accordance with
      written instructions of the Administrative Trustees, to distribute the Notes
      to
      Holders in exchange for the Preferred Securities (which direction is optional
      and wholly within the discretion of the Holder of the Common
      Securities);

     

    (c) the
      redemption of all of the Preferred Securities in connection with the payment
      at
      maturity or redemption of all the Notes; and

     

    (d) the
      entry
      of an order for dissolution of the Trust by a court of competent
      jurisdiction.

     

    SECTION
      9.3 Termination.

     

    (a) The
      respective obligations and responsibilities of the Trustees and the Trust shall
      terminate upon the latest to occur of the following: (a) the distribution by
      the
      Property Trustee to Holders of all amounts required to be distributed hereunder
      upon the liquidation of the Trust pursuant to Section
      9.4,
      or upon
      the redemption of all of the Trust Securities pursuant to Section 4.2;
      (b)
      the
      satisfaction of any expenses owed by the Trust; and (c) the discharge of all
      administrative duties of the Administrative Trustees, including the performance
      of any tax reporting obligations with respect to the Trust or the
      Holders.

     

    (b) As
      soon
      as practicable thereafter, and after satisfaction of liabilities to creditors
      of
      the Trust as required by applicable law, including section 3808 of the Delaware
      Statutory Trust Act,
      the
      Delaware Trustee, when notified by the Administrative Trustees in writing of
      the
      completion of the winding up of the Trust in accordance with the Delaware
      Statutory Trust Act, shall terminate the Trust by filing, at the expense of
      the
      Depositor, a certificate of cancellation with the Secretary of State of the
      State of Delaware.
       

      SECTION
        9.4  Liquidation.

    

     

    
      
         

      

      
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    (a) If
      an
      Early Termination Event specified in Section
      9.2(a),
      (b)
      or
(d)
      occurs
      or upon the Expiration Date, the Trust shall be liquidated by the Property
      Trustee as expeditiously as the Property Trustee shall determine to be possible
      by distributing, after satisfaction of liabilities to creditors of the Trust
      as
      provided by applicable law, to each Holder a Like Amount of Notes, subject
      to
Section
      9.4(d).
      Notice
      of liquidation shall be given by the Property Trustee not less than thirty
      (30)
      nor more than sixty (60) days prior to the Liquidation Date to each Holder
      of
      Trust Securities at such Holder’s address appearing in the Securities Register.
      All such notices of liquidation shall:

     

    (i) state
      the
      Liquidation Date;

     

    (ii) state
      that from and after the Liquidation Date, the Trust Securities will no longer
      be
      deemed to be Outstanding and (subject to Section
      9.4(d))
      any
      Securities Certificates not surrendered for exchange will be deemed to represent
      a Like Amount of Notes; and

     

    (iii)
      provide such information with respect to the mechanics by which Holders may
      exchange Securities Certificates for Notes, or if Section
      9.4(d)
      applies,
      receive a Liquidation Distribution, as the Administrative Trustees shall deem
      appropriate.

     

    (b) Except
      where Section
      9.2(c)
      or
9.4(d)
      applies,
      in order to effect the liquidation of the Trust and distribution of the Notes
      to
      Holders, the Property Trustee, either itself acting as exchange agent or through
      the appointment of a separate exchange agent, shall establish a record date
      for
      such distribution (which shall not be more than forty five (45) days prior
      to
      the Liquidation Date nor prior to the date on which notice of such liquidation
      is given to the Holders) and establish such procedures as it shall deem
      appropriate to effect the distribution of Notes in exchange for the Outstanding
      Securities Certificates.

     

    (c) Except
      where Section
      9.2(c)
      or
9.4(d)
      applies,
      after the Liquidation Date, (i) the Trust Securities will no longer be deemed
      to
      be Outstanding, (ii) certificates representing a Like Amount of Notes will
      be
      issued to Holders of Securities Certificates, upon surrender of such
      Certificates to the exchange agent for exchange, (iii) the Depositor shall
      use
      its best efforts to have the Notes listed on the New York Stock Exchange or
      on
      such other exchange, interdealer quotation system or self-regulatory
      organization on which the Preferred Securities are then listed, if any, (iv)
      Securities Certificates not so surrendered for exchange will be deemed to
      represent a Like Amount of Notes bearing accrued and unpaid interest in an
      amount equal to the accumulated and unpaid Distributions on such Securities
      Certificates until such certificates are so surrendered (and until such
      certificates are so surrendered, no payments of interest or principal will
      be
      made to Holders of Securities Certificates with respect to such Notes) and
      (v)
      all rights of Holders
      holding Trust Securities will cease, except the right of such Holders to receive
      Notes upon surrender of Securities Certificates.
       

      (d) Notwithstanding
        the other provisions of this Section
        9.4,
        if
        distribution of the Notes in the manner provided herein is determined by
        the
        Property Trustee not to be permitted or practical, the Trust Property shall
        be
        liquidated, and the Trust shall be wound up by the Administrative Trustees
        in
        such manner as the Administrative Trustees determine. In such event, Holders
        will be entitled to receive out of the assets of the Trust available for
        distribution to 

    

     

    
      
         

      

      
        -54-

        
          

        

      

      
         

      

    

    Holders,
      after satisfaction of liabilities to creditors of the Trust as provided by
      applicable law, an amount equal to the Liquidation Amount per Trust Security
      plus accumulated and unpaid Distributions thereon to the date of payment (such
      amount being the “Liquidation
      Distribution”).
      If,
      upon any such winding up the Liquidation Distribution can be paid only in part
      because the Trust has insufficient assets available to pay in full the aggregate
      Liquidation Distribution, then, subject to the next succeeding sentence, the
      amounts payable by the Trust on the Trust Securities shall be paid on a
pro
      rata
      basis
      (based upon Liquidation Amounts). The Holder of the Common Securities will
      be
      entitled to receive Liquidation Distributions upon any such winding up
pro
      rata (based
      upon Liquidation Amounts) with Holders of all Trust Securities, except that,
      if
      an Event of Default has occurred and is continuing, the Preferred Securities
      shall have a priority over the Common Securities as provided in Section
      4.3.

     

    SECTION
      9.5 Mergers,
      Consolidations, Amalgamations or Replacements of Trust.

     

    The
      Trust
      may not merge with or into, consolidate, amalgamate, or be replaced by, or
      convey, transfer or lease its properties and assets substantially as an entirety
      to, any Person except pursuant to this Article
      IX.
      At the
      request of the Holders of the Common Securities, without the consent of the
      Holders of the Preferred Securities, the Trust may merge with or into,
      consolidate, amalgamate, or be replaced by or convey, transfer or lease its
      properties and assets substantially as an entirety to a trust organized as
      such
      under the laws of any State; provided, that:

     

    (a) such
      successor entity either (i) expressly assumes all of the obligations of the
      Trust under this Trust Agreement with respect to the Preferred Securities or
      (ii) substitutes for the Preferred Securities other securities having
      substantially the same terms as the Preferred Securities (such other Securities,
      the “Successor
      Securities”)
      so long
      as the Successor Securities have the same priority as the Preferred Securities
      with respect to distributions and payments upon liquidation, redemption and
      otherwise;

     

    (b) a
      trustee
      of such successor entity possessing substantially the same powers and duties
      as
      the Property Trustee is appointed to hold the Notes;

     

    (c) if
      the
      Preferred Securities or the Notes are rated, such merger, consolidation,
      amalgamation, replacement, conveyance, transfer or lease does not cause the
      Preferred Securities or the Notes (including any Successor Securities) to be
      downgraded by any nationally recognized statistical rating organization that
      then assigns a rating to the Preferred Securities or the Notes;

     

    
      
         

      

      
        -55-

        
          

        

      

      
         

      

    

    (d) the
      Preferred Securities are listed, or any Successor Securities will be listed
      upon
      notice of issuance, on any national securities exchange or interdealer quotation
      system on which the Preferred Securities are then listed, if any;

     

    (e) such
      merger, consolidation, amalgamation, replacement, conveyance, transfer or lease
      does not adversely affect the rights, preferences and privileges of the Holders
      of the Preferred Securities (including any Successor Securities) in any material
      respect;

     

    (f) such
      successor entity has a purpose substantially identical to that of the
      Trust;

     

    (g) prior
      to
      such merger, consolidation, amalgamation, replacement, conveyance, transfer
      or
      lease, the Depositor has received an Opinion of Counsel to the effect that
      (i)
      such merger, consolidation, amalgamation, replacement, conveyance, transfer
      or
      lease does not adversely affect the rights, preferences and privileges of the
      Holders of the Preferred Securities (including any Successor Securities) in
      any
      material respect; (ii) following such merger, consolidation, amalgamation,
      replacement, conveyance, transfer or lease, neither the Trust nor such successor
      entity will be required to register as an “investment company” under the
      Investment Company Act and (iii) following such merger, consolidation,
      amalgamation, replacement, conveyance, transfer or lease, the Trust (or the
      successor entity) will continue to be classified as a grantor trust for U.S.
      federal income tax purposes; and

     

    (h) the
      Depositor or its permitted transferee owns all of the common securities of
      such
      successor entity.

     

    Notwithstanding
      the foregoing, the Trust shall not, except with the consent of Holders of all
      of
      the Preferred Securities, consolidate, amalgamate, merge with or into, or be
      replaced by or convey, transfer or lease its properties and assets substantially
      as an entirety to any other Person or permit any other entity to consolidate,
      amalgamate, merge with or into, or replace, the Trust if such consolidation,
      amalgamation, merger, replacement, conveyance, transfer or lease would cause
      the
      Trust or the successor entity to be taxable as a corporation or classified
      as
      other than a grantor trust for United States federal income tax purposes or
      cause the Notes to be treated as other than indebtedness of the Depositor for
      United States federal income tax purposes.

     

    ARTICLE
      X

     

    MISCELLANEOUS
      PROVISIONS

     

    SECTION
      10.1 Limitation
      of Rights of Holders.

     

    Except
      as
      set forth in Section
      9.2,
      the
      death, bankruptcy, termination, dissolution or incapacity of any Person having
      an interest, beneficial or otherwise, in Trust Securities shall not operate
      to
      terminate this Trust Agreement, nor annul, dissolve or terminate the Trust
      nor
      entitle the legal representatives or heirs of such Person or any Holder for
      such
      Person, to claim an accounting, take any action or bring any proceeding in
      any
      court for a partition or winding up of the arrangements contemplated hereby,
      nor
      otherwise affect the rights, obligations and liabilities of the parties hereto
      or any of them.

     

    
      SECTION
        10.2 Agreed
        Tax Treatment of Trust and Trust Securities.

       

      The
        parties hereto and, by its acceptance or acquisition of a Trust Security
        or a
        beneficial interest therein, the Holder of, and any Person that acquires
        a
        beneficial interest in, such Trust Security intend and agree to treat the
        Trust
        as a grantor trust for United States federal, state and local tax purposes,
        and
        to treat the Trust Securities (including all payments and proceeds with respect
        to such Trust Securities) as undivided beneficial ownership interests in
        the
        Trust Property (and payments and proceeds therefrom, respectively) for United
        States federal, state and local tax 

    

     

    
      
         

      

      
        -56-

        
          

        

      

      
         

      

    

    purposes
      and to treat the Notes as indebtedness of the Depositor for United States
      federal, state and local tax purposes. The provisions of this Trust Agreement
      shall be interpreted to further this intention and agreement of the
      parties.

     

    SECTION
      10.3 Amendment.

     

    (a) 
      This
      Trust Agreement may be amended from time to time by the Property Trustee, the
      Administrative Trustees and the Holder of all the Common Securities, without
      the
      consent of any Holder of the Preferred Securities, (i) to cure any ambiguity,
      correct or supplement any provision herein that may be defective or inconsistent
      with any other provision herein, or to make or amend any other provisions with
      respect to matters or questions arising under this Trust Agreement, which shall
      not be inconsistent with the other provisions of this Trust Agreement, (ii)
      to
      modify, eliminate or add to any provisions of this Trust Agreement to such
      extent as shall be necessary to ensure that the Trust will neither be taxable
      as
      a corporation nor be classified as other than a grantor trust for United States
      federal income tax purposes at all times that any Trust Securities are
      Outstanding or to ensure that the Notes are treated as indebtedness of the
      Depositor for United States federal income tax purposes, or to ensure that
      the
      Trust will not be required to register as an “investment company” under the
      Investment Company Act or (iii) to add to the covenants, restrictions or
      obligations of the Depositor; provided, that in the case of clauses (i), (ii)
      or
      (iii), such action shall not adversely affect in any material respect the
      interests of any Holder.

     

    (b) Except
      as
      provided in Section
      10.3(c),
      any
      provision of this Trust Agreement may be amended by the Property Trustee, the
      Administrative Trustees and the Holder of all of the Common Securities and
      with
      (i) the consent of Holders of at least a Majority in Liquidation Amount of
      the
      Preferred Securities and (ii) receipt by the Trustees of an Opinion of Counsel
      to the effect that such amendment or the exercise of any power granted to the
      Trustees in accordance with such amendment will not cause the Trust to be
      taxable as a corporation or classified as other than a grantor trust for United
      States federal income tax purposes or affect the treatment of the Notes as
      indebtedness of the Depositor for United States federal income tax purposes
      or
      affect the Trust’s exemption from status (or from any requirement to register)
      as an “investment company” under the Investment Company Act. In addition to and
      subject to the foregoing, the Distribution Dates, Redemption Date and Stated
      Maturity (as defined in the Indenture) with respect to the Preferred Securities
      or a portion of the Preferred Securities shall be conformed in connection with
      any modification of the Interest Payment Date, Redemption Date or Stated
      Maturity of the Junior Subordinated Notes made by the Company and the Trust
      at
      the direction of any holder of the Preferred Securities or a portion of the
      Preferred Securities as set forth in Section 6(m) of the Purchase Agreement;
      provided,
      that
      all reasonable expenses in connection with such modification shall be paid
      by
      the Holders of the Preferred Securities directing
      such modification. If, at the time the Purchaser or their successors elect
      to
      exercise such right, the Trust Agreement has not been so amended, the Property
      Trustee, the Administrative Trustees, the Holder of all of the Common Securities
      and each Holder of Preferred Securities each agrees, without prejudice to
      Section 10.3(f), to use commercially reasonable efforts to so amend the Trust
      Agreement upon such election.
       

      (c) Notwithstanding
        any other provision of this Trust Agreement, without the consent of each
        Holder,
        this Trust Agreement may not be amended to (i) change the accrual rate, amount,
        

    

     

    
      
         

      

      
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    currency
      or timing of any Distribution on or the redemption price of the Trust Securities
      or otherwise adversely affect the amount of any Distribution or other payment
      required to be made in respect of the Trust Securities as of a specified date,
      (ii) restrict or impair the right of a Holder to institute suit for the
      enforcement of any such payment on or after such date, (iii) reduce the
      percentage of aggregate Liquidation Amount of Outstanding Preferred Securities,
      the consent of whose Holders is required for any such amendment, or the consent
      of whose Holders is required for any waiver of compliance with any provision
      of
      this Trust Agreement or of defaults hereunder and their consequences provided
      for in this Trust Agreement; (iv) impair or adversely affect the rights and
      interests of the Holders in the Trust Property, or permit the creation of any
      Lien on any portion of the Trust Property; or (v) modify the definition of
      “Outstanding,” this Section
      10.3(c), Sections 4.1, 4.2, 4.3, 6.10(e)
      or
Article
      IX.

     

    (d) Notwithstanding
      any other provision of this Trust Agreement, no Trustee shall enter into or
      consent to any amendment to this Trust Agreement that would cause the Trust
      to
      be taxable as a corporation or to be classified as other than a grantor trust
      for United States federal income tax purposes or that would cause the Notes
      to
      fail or cease to be treated as indebtedness of the Depositor for United States
      federal income tax purposes or that would cause the Trust to fail or cease
      to
      qualify for the exemption from status (or from any requirement to register)
      as
      an “investment company” under the Investment Company Act.

     

    (e) If
      any
      amendment to this Trust Agreement is made, the Administrative Trustees or the
      Property Trustee shall promptly provide to the Depositor and the Note Trustee
      a
      copy of such amendment.

     

    (f) No
      Trustee shall be required to enter into any amendment to this Trust Agreement
      that affects its own rights, duties or immunities under this Trust Agreement.
      The Trustees shall be entitled to receive an Opinion of Counsel and an Officers’
Certificate stating that any amendment to this Trust Agreement is in compliance
      with this Trust Agreement and all conditions precedent herein provided for
      relating to such action have been met.

     

    (g) No
      amendment or modification to this Trust Agreement that adversely affects in
      any
      material respect the rights, duties, liabilities, indemnities or immunities
      of
      the Delaware Trustee hereunder shall be permitted without the prior written
      consent of the Delaware Trustee.

     

    SECTION
      10.4 Separability.

     

    If
      any
      provision in this Trust Agreement or in the Securities Certificates 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,
      and there shall be deemed substituted for the provision
      at issue a valid, legal and enforceable provision as similar as possible to
      the
      provision at issue.
       

      SECTION
        10.5 Governing
        Law.

       

      THIS
        TRUST AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF EACH OF THE HOLDERS, THE
        TRUST, THE DEPOSITOR AND THE TRUSTEES WITH RESPECT TO THIS TRUST AGREEMENT
        AND
        THE TRUST SECURITIES SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND
        

    

     

    
      
         

      

      
        -58-

        
          

        

      

      
         

      

    

    GOVERNED
      BY THE LAWS OF THE STATE OF DELAWARE WITHOUT REFERENCE TO ITS CONFLICTS OF
      LAWS
      PROVISIONS; PROVIDED, HOWEVER, THAT THERE SHALL NOT BE APPLICABLE TO THE PARTIES
      HEREUNDER OR THIS TRUST AGREEMENT ANY PROVISION OF THE LAWS (COMMON OR
      STATUTORY) OF THE STATE OF DELAWARE PERTAINING TO TRUSTS THAT RELATE TO OR
      REGULATE, IN A MANNER INCONSISTENT WITH THE TERMS HEREOF, (A) THE FILING WITH
      ANY COURT OR GOVERNMENTAL BODY OR AGENCY OF TRUSTEE ACCOUNTS OR SCHEDULES OF
      TRUSTEE FEES AND CHARGES, (B) AFFIRMATIVE REQUIREMENTS TO POST BONDS FOR
      TRUSTEES, OFFICERS, AGENTS OR EMPLOYEES OF A TRUST, (C) THE NECESSITY FOR
      OBTAINING COURT OR OTHER GOVERNMENTAL APPROVAL CONCERNING THE ACQUISITION,
      HOLDING OR DISPOSITION OF REAL OR PERSONAL PROPERTY, (D) FEES OR OTHER SUMS
      PAYABLE TO TRUSTEES, OFFICERS, AGENTS OR EMPLOYEES OF A TRUST, (E) THE
      ALLOCATION OF RECEIPTS AND EXPENDITURES TO INCOME OR PRINCIPAL, (F) RESTRICTIONS
      OR LIMITATIONS ON THE PERMISSIBLE NATURE, AMOUNT OR CONCENTRATION OF TRUST
      INVESTMENTS OR REQUIREMENTS RELATING TO THE TITLING, STORAGE OR OTHER MANNER
      OF
      HOLDING OR INVESTING TRUST ASSETS OR (G) THE ESTABLISHMENT OF FIDUCIARY OR
      OTHER
      STANDARDS OF RESPONSIBILITY OR LIMITATIONS ON THE ACTS OR POWERS OF TRUSTEES
      THAT ARE INCONSISTENT WITH THE LIMITATIONS OR AUTHORITIES AND POWERS OF THE
      TRUSTEES HEREUNDER AS SET FORTH OR REFERENCED IN THIS AGREEMENT. SECTION 3540
      OF
      TITLE 12 OF THE DELAWARE CODE SHALL NOT APPLY TO THE TRUST. The parties hereto
      hereby consent to (i) the non-exclusive jurisdiction of the courts of the State
      of Delaware and any Federal court sitting in Wilmington, Delaware, and (ii)
      service of process by certified mail. The foregoing shall not preclude any
      party
      from bringing an action in any other jurisdiction or from serving process in
      any
      other legal means.

     

    SECTION
      10.6 Successors.

     

    This
      Trust Agreement shall be binding upon and shall inure to the benefit of any
      successor to the Depositor, the Trust and any Trustee, including any successor
      by operation of law. Except in connection with a transaction involving the
      Depositor that is permitted under Article
      VIII
      of the
      Indenture and pursuant to which the assignee agrees in writing to perform the
      Depositor’s obligations hereunder, the Depositor shall not assign its
      obligations hereunder.

     

    SECTION
      10.7  Headings.

     

    
      The
        Article and Section headings are for convenience only and shall not affect
        the
        construction of this Trust Agreement

       

      SECTION
        10.8 Reports,
        Notices and Demands.

       

      (a) Any
        report, notice, demand or other communication that by any provision of this
        Trust Agreement is required or permitted to be given or served to or upon
        any
        Holder or the Depositor may be given or served in writing delivered in person,
        or by reputable, overnight 

    

    
      
         

      

      
        -59-

        
          

        

      

      
         

      

    

    courier,
      by telecopy or by deposit thereof, first-class postage prepaid, in the United
      States mail, addressed, (a) in the case of a Holder of Preferred Securities,
      to
      such Holder as such Holder’s name and address may appear on the Securities
      Register; and (b) in the case of the Holder of all the Common Securities or
      the
      Depositor, to Reading International, Inc., 500 Citadel Drive, Suite 300,
      Commerce, California 90040, or to such other address as may be specified in
      a
      written notice by the Holder of all the Common Securities or the Depositor,
      as
      the case may be, to the Property Trustee. Such report, notice, demand or other
      communication to or upon a Holder or the Depositor shall be deemed to have
      been
      given when received in person, within one (1) Business Day following delivery
      by
      overnight courier, when telecopied with receipt confirmed, or within three
      (3)
      Business Days following delivery by mail, except that if a notice or other
      document is refused delivery or cannot be delivered because of a changed address
      of which no notice was given, such notice or other document shall be deemed
      to
      have been delivered on the date of such refusal or inability to
      deliver.

     

    (b) Any
      notice, demand or other communication that by any provision of this Trust
      Agreement is required or permitted to be given or served to or upon the Property
      Trustee, the Delaware Trustee, the Administrative Trustees or the Trust shall
      be
      given in writing by deposit thereof, first-class postage prepaid, in the U.S.
      mail, personal delivery or facsimile transmission, addressed to such Person
      as
      follows: (i) with respect to the Property Trustee to 919 North Market Street,
      Suite 700, Wilmington, Delaware 19801, facsimile no. (302) 575-2006, (ii) with
      respect to the Delaware Trustee, to 919 North Market Street, Suite 700,
      Wilmington, Delaware 19801, facsimile no. (302) 575-2006; (iii) with respect
      to
      the Administrative Trustees, to them at the address above for notices to the
      Depositor, marked “Attention: Administrative Trustees of Reading International
      Trust I”, and (iv) with respect to the Trust, to its principal executive office
      specified in Section
      2.2,
      with a
      copy to the Property Trustee. Such notice, demand or other communication to
      or
      upon the Trust, the Property Trustee or the Administrative Trustees shall be
      deemed to have been sufficiently given or made only upon actual receipt of
      the
      writing by the Trust, the Property Trustee or the Administrative
      Trustees.

     

    SECTION
      10.9 Agreement
      Not to Petition.

     

    Each
      of
      the Trustees and the Depositor agree for the benefit of the Holders that, until
      at least one year and one day after the Trust has been terminated in accordance
      with Article
      IX,
      they
      shall not file, or join in the filing of, a petition against the Trust under
      any
      Bankruptcy Law or otherwise join in the commencement of any proceeding against
      the Trust under any Bankruptcy Law. If the Depositor takes action in violation
      of this Section
      10.9,
      the
      Property Trustee agrees, for the benefit of Holders, that at the expense of
      the
      Depositor, it shall file an answer with the applicable bankruptcy court or
      otherwise properly contest the filing of such petition by the Depositor against
      the Trust or the commencement of such action and raise the defense
      that the Depositor has agreed in writing not to take such action and should
      be
      estopped and precluded therefrom and such other defenses, if any, as counsel
      for
      the Property Trustee or the Trust may assert.
       

      SECTION
        10.10 Counterparts.
        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.

    

     

    
      
         

      

      
        -60-

        
          

        

      

      
         

      

    

    

    

    [REMAINDER
      OF THIS PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
           

        

         

      

      
        -61-

        
          

        

      

      
         

        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Amended and Restated
      Trust Agreement as of the day and year first above written.

     

    
      
        	 	 	
                Reading
                  International, Inc., as Depositor

              
	 	 	 
	 	 	
                By:

              	 
	 	 	
                Name:

              	 
	 	 	
                Title:
                  

              	 
	 	 	 	 
	
                Wells
                  Fargo Bank, N.A., not in its individual capacity, but solely as
                  Property
                  Trustee

              	 	
                Wells
                  Fargo Delaware Trust Company, not in its individual capacity, but
                  solely
                  as Delaware Trustee

              
	 	 	
                 

              
	
                By:

              	 	 	
                By:

              	 
	
                Name:

              	 	 	
                Name:

              	 
	
                Title:
                  

              	 	 	
                Title:

              	 
	 	 	 	 	 
	 	 	 
	
                Administrative
                  Trustee

              	 	
                Administrative
                  Trustee

              
	
                Name:
                  James J. Cotter

              	 	
                Name:
                  Andrzej Matyczynski

              
	 	 	 	
              
	 	 	 
	
                Administrative
                  Trustee

              	 	 
	
                Name:
                  S. Craig Tompkins

              	 	 

      

    

     

    
      
         

      

      
        -62-

        
          

        

      

      
         

      

    

    Exhibit
      A

     

    CERTIFICATE
      OF TRUST

     

    OF

     

    READING
      INTERNATIONAL TRUST I

     

    This
      Certificate of Trust of Reading International Trust I (the "Trust")
      is
      being duly executed and filed on behalf of the Trust by the undersigned, as
      trustee, to form a statutory trust under the Delaware Statutory Trust Act (12
      Del.
      C.§3801
      et seq.)
      (the
      "Act").

     

    1. Name.
      The name
      of the statutory trust formed by this Certificate of Trust is: Reading
      International Trust I.

     

    2. Delaware
      Trustee.
      The name
      and business address of the trustee of the Trust with its principal place of
      business in the State of Delaware are Wells Fargo Delaware Trust Company, 919
      North Market Street, Suite 700, Wilmington, Delaware 19801.

     

    3. Effective
      Date.
      This
      Certificate of Trust shall be effective upon its filing with the Secretary
      of
      State of the State of Delaware.

     

    IN
      WITNESS WHEREOF, the undersigned has duly executed this Certificate of Trust
      in
      accordance with Section 3811(a)(1) of the Act.

     

    

      
        	
                Wells
                  Fargo Delaware Trust Company,
                  not in its individual capacity, but solely as Delaware
                  Trustee

              
	
                 

                By:

              	 
	 	
                 

                Name:

              
	 	
                 

                Title:

              

      

    

     

    
      
         

      

      
        -A-1-

        
          

        

      

      
         

      

    

    Exhibit
      B

     

    [FORM
      OF
      COMMON SECURITIES CERTIFICATE]

     

    THIS
      COMMON SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAWS
      AND
      MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT
      TO AN
      EXEMPTION FROM REGISTRATION. THIS CERTIFICATE IS NOT TRANSFERABLE EXCEPT IN
      COMPLIANCE WITH APPLICABLE LAW AND SECTION 5.11 OF THE TRUST
      AGREEMENT

     

    

      
        	
                Certificate
                  Number

                 

              	
                Number
                  of Common Securities

                 

              
	
                C-1

                 

              	
                1,547

                 

              

      

    

     

    Certificate
      Evidencing Common Securities

     

    READING
      INTERNATIONAL TRUST I

     

    Common
      Securities

     

    (liquidation
      amount $1,000 per Common Security)

     

    Reading
      International Trust I, a statutory trust created under the laws of the State
      of
      Delaware (the "Trust"),
      hereby certifies that Reading International, Inc., a Nevada corporation (the
      "Holder")
      is the
      registered owner of One Thousand Five Hundred Forty Seven (1,547) common
      securities of the Trust representing undivided common beneficial interests
      in
      the assets of the Trust and designated the Reading International Trust I Common
      Securities (liquidation amount $1,000 per Common Security) (the "Common
      Securities").
      Except in accordance with Section
      5.11
      of the
      Trust Agreement (as defined below), the Common Securities are not transferable
      and, to the fullest extent permitted by law, any attempted transfer hereof
      other
      than in accordance therewith shall be void. The designations, rights,
      privileges, restrictions, preferences and other terms and provisions of the
      Common Securities are set forth in, and this certificate and the Common
      Securities represented hereby are issued and shall in all respects be subject
      to
      the terms and provisions of, the Amended and Restated Trust Agreement of the
      Trust, dated as of February 5, 2007 as the same may be amended from time to
      time
      (the "Trust
      Agreement"),
      among
      Reading International, Inc., as Depositor, Wells Fargo Bank, N.A., as Property
      Trustee, Wells Fargo Delaware Trust Company, as Delaware Trustee, the
      Administrative Trustees named therein and the Holders, from time to time, of
      Trust Securities. The Trust will furnish a copy of the Trust Agreement to the
      Holder without charge upon written request to the Trust at the Corporate Trust
      Office.

     

    Upon
      receipt of this certificate, the Holder is bound by the Trust Agreement and
      is
      entitled to the benefits thereunder.

     

    This
      Common Securities Certificate shall be governed by and construed in accordance
      with the laws of the State of Delaware without reference to its conflict of
      law
      provisions.

     

    Terms
      used but not defined herein have the meanings set forth in the Trust
      Agreement.

     

    
      
         

      

      
        -B-1-

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, one of the Administrative Trustees of the Trust has executed
      on
      behalf of the Trust this certificate this 5th day of February,
      2007.

     

    

      
        	 	
                READING
                  INTERNATIONAL TRUST I

              
	 	
                By:

              	 
	 	 	
                 

                Name:
                  

              
	 	 	
                 

                Administrative
                  Trustee

              

      

    

     

    
      
         

      

      
        -B-2-

        
          

        

      

      
         

      

    

    Exhibit
      C

     

    [FORM
      OF PREFERRED SECURITIES CERTIFICATE]

     

    "[IF
      THIS SECURITY IS A GLOBAL SECURITY INSERT:
      THIS
      PREFERRED SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE TRUST
      AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
      DEPOSITORY TRUST COMPANY ("DTC") OR A NOMINEE OF DTC. THIS PREFERRED SECURITY
      IS
      EXCHANGEABLE FOR PREFERRED SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER
      THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
      TRUST
      AGREEMENT, AND NO TRANSFER OF THIS PREFERRED SECURITY (OTHER THAN A TRANSFER
      OF
      THIS PREFERRED SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE
      OF
      DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED
      CIRCUMSTANCES.

     

    UNLESS
      THIS PREFERRED SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
      TO
      READING INTERNATIONAL TRUST I OR ITS AGENT FOR REGISTRATION OF TRANSFER,
      EXCHANGE OR PAYMENT, AND ANY PREFERRED SECURITY ISSUED IS REGISTERED IN THE
      NAME
      OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
      REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO
      SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
      ANY
      TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
      IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
      INTEREST HEREIN.]

     

    THE
      PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED
      IN A
      TRANSACTION EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE "SECURITIES ACT"), AND SUCH PREFERRED SECURITIES OR ANY INTEREST
      THEREIN MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF
      SUCH
      REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF ANY
      PREFERRED SECURITIES IS HEREBY NOTIFIED THAT THE SELLER OF THE PREFERRED
      SECURITIES MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5
      OF
      THE SECURITIES ACT PROVIDED BY RULE 144A UNDER THE SECURITIES ACT.

     

    THE
      HOLDER OF THE PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE AGREES FOR
      THE BENEFIT OF THE TRUST AND THE DEPOSITOR THAT (A) SUCH PREFERRED SECURITIES
      MAY BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED ONLY (I) TO THE TRUST OR THE
      DEPOSITOR OR (II) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS (a) A
      "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES
      ACT AND (b) A “QUALIFIED PURCHASER” (AS DEFINED IN SECTION 2(a)(51) OF THE
      INVESTMENT COMPANY ACT OF 1940, AS AMENDED), OR (III) TO A PERSON WHOM THE
      SELLER REASONABLY BELIEVES IS A “QUALIFIED PURCHASER” (AS DEFINED IN SECTION
      2(a)(51) OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED), AND (B) THE HOLDER
      WILL NOTIFY ANY PURCHASER OF ANY PREFERRED SECURITIES FROM IT OF THE RESALE
      RESTRICTIONS REFERRED TO IN (A) ABOVE.

     

    THE
      PREFERRED SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING
      AN AGGREGATE LIQUIDATION AMOUNT OF NOT LESS THAN $100,000. TO THE FULLEST EXTENT
      PERMITTED BY LAW, ANY ATTEMPTED

     

    
      
         

      

      
        -C-1-

        
          

        

      

      
         

      

    

    TRANSFER
      OF PREFERRED SECURITIES, OR ANY INTEREST THEREIN, IN A BLOCK HAVING AN AGGREGATE
      LIQUIDATION AMOUNT OF LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS
      THEREOF SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. TO THE
      FULLEST EXTENT PERMITTED BY LAW, ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED
      NOT TO BE THE HOLDER OF SUCH PREFERRED SECURITIES FOR ANY PURPOSE, INCLUDING,
      BUT NOT LIMITED TO, THE RECEIPT OF PRINCIPAL OF OR INTEREST ON SUCH PREFERRED
      SECURITIES, OR ANY INTEREST THEREIN, AND SUCH PURPORTED TRANSFEREE SHALL BE
      DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH PREFERRED SECURITIES.

     

    THE
      HOLDER OF THIS SECURITY, OR ANY INTEREST THEREIN, BY ITS ACCEPTANCE HEREOF
      OR
      THEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT,
      INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE
      I OF
      THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"),
      OR
      SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE")
      (EACH
      A "PLAN”), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY REASON
      OF ANY PLAN'S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING "PLAN ASSETS"
      OF
      ANY PLAN MAY ACQUIRE OR HOLD THIS PREFERRED SECURITY OR ANY INTEREST THEREIN.
      ANY PURCHASER OR HOLDER OF THE PREFERRED SECURITIES OR ANY INTEREST THEREIN
      WILL
      BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT IT IS
      NOT
      AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A
      PLAN
      TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON
      ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR
      ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH
      PURCHASE.

     

    THIS
      OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY THE UNITED STATES OR ANY
      AGENCY OR FUND OF THE UNITED STATES, INCLUDING THE FEDERAL DEPOSIT INSURANCE
      CORPORATION (THE "FDIC").

     

    
      
         

      

      
        -C-2-

        
          

        

      

      
         

      

    

    Certificate
      Number P-1 $50,000,000 Aggregate Liquidation Amount 50,000
      Preferred Securities

     

    CUSIP
      NO.

     

    755411AA3

     

    Certificate
      Evidencing Preferred Securities

     

    READING
      INTERNATIONAL TRUST I

     

    Preferred
      Securities

     

    (liquidation
      amount $1,000 per Preferred Security)

     

    Reading
      International Trust I, a statutory trust created under the laws of the State
      of
      Delaware (the "Trust"), hereby certifies that Cede & Co.(the "Holder")
      is the
      registered owner of _____________ Preferred Securities [if
      the Preferred Security is a Global Security, then insert—
or
      such other number of Preferred Securities represented hereby as may be set
      forth
      in the records of the Securities Registrar hereinafter referred to in accordance
      with the Trust Agreement (as defined below)] of the Trust representing an
      undivided preferred beneficial interest in the assets of the Trust and
      designated the Reading International Trust I Preferred Securities, (liquidation
      amount $1,000 per Preferred Security) (the "Preferred
      Securities").
      Subject to the terms of the Trust Agreement (as defined below), the Preferred
      Securities are transferable on the books and records of the Trust, in person
      or
      by a duly authorized attorney, upon surrender of this certificate duly endorsed
      and in proper form for transfer as provided in Section
      5.7
      of the
      Trust Agreement (as defined below). The designations, rights, privileges,
      restrictions, preferences and other terms and provisions of the Preferred
      Securities are set forth in, and this certificate and the Preferred Securities
      represented hereby are issued and shall in all respects be subject to the terms
      and provisions of, the Amended and Restated Trust Agreement of the Trust, dated
      as of February 5, 2007, as the same may be amended from time to time (the
      "Trust
      Agreement"),
      among
      Reading International, Inc., as Depositor, Wells Fargo Bank, N.A., as Property
      Trustee, Wells Fargo Delaware Trust Company, as Delaware Trustee, the
      Administrative Trustees named therein and the Holders, from time to time, of
      Trust Securities. The Trust will furnish a copy of the Trust Agreement to the
      Holder without charge upon written request to the Property Trustee at its
      Corporate Trust Office.

     

    Upon
      receipt of this certificate, the Holders bound by the Trust Agreement and is
      entitled to the benefits thereunder.

     

    This
      Preferred Securities Certificate shall be governed by and construed in
      accordance with the laws of the State of Delaware.

     

    All
      capitalized terms used but not defined in this Preferred Securities Certificate
      are used with the meanings specified in the Trust Agreement including the
      Schedules and Exhibits thereto.

     

    
      
         

      

      
        -C-3-

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, one of the Administrative Trustees of the Trust has executed
      on
      behalf of the Trust this certificate this 5th day of February,
      2007.

     

    
      
        	 	
                READING
                  INTERNATIONAL TRUST I

              
	 	
                By:

              	 
	 	 	
                Name:
                  

              
	 	 	
                Administrative
                  Trustee

              

      

      

      This
        is
        one of the Preferred Securities referred to in the within-mentioned Trust
        Agreement.

       

      Dated:

       

      
        	 	
                WELLS
                  FARGO BANK, N.A., not in its individual capacity, but solely as
                  Property
                  Trustee

              
	 	
                By:

              	 
	 	 	
                Authorized
                  signatory

              

      

    

    
      
         

      

      
        -C-4-

        
          

        

      

      
         

      

    

    [FORM
      OF REVERSE OF SECURITY]

     

    The
      Trust
      promises to pay Distributions from February 5, 2007, or from the most recent
      Distribution Date to which Distributions have been paid or duly provided for,
      quarterly in arrears on January 30, April 30, July 30 and October 30 of each
      year, commencing on April 30, 2007, at a fixed rate equal to 9.22% per annum
      through the Interest Payment Date on April 30, 2012, and thereafter at a
      variable rate, reset quarterly, equal to LIBOR plus 4.00% per annum of
      the
      Liquidation Amount of the Preferred Securities represented by this Preferred
      Securities Certificate, together with any Additional Interest Amounts, in
      respect to such period.

     

    Distributions
      on the Trust Securities shall be made by the Paying Agent from the Payment
      Account and shall be payable on each Distribution Date only to the extent that
      the Trust has funds then on hand and available in the Payment Account for the
      payment of such Distributions.

     

    Distributions
      on the Securities must be paid on the dates payable to the extent that the
      Trust
      has funds available for the payment of such Distributions in the Payment Account
      of the Trust. The Trust's funds available for Distribution to the Holders of
      the
      Preferred Securities will be limited to payments received from the
      Depositor.

     

    During
      any Event of Default, Depositor shall not (i) declare or pay any dividends
      or
      distributions on, or redeem, purchase, acquire or make a liquidation payment
      with respect to, any of the Depositor's capital stock or (ii) make any payment
      of principal of or any interest or premium, if any, on or repay, repurchase
      or
      redeem any debt securities of the Depositor that rank pari
      passu
      in all
      respects with or junior in interest to the Notes (other than (a) repurchases,
      redemptions or other acquisitions of shares of capital stock of the Depositor
      in
      connection with (1) any employment contract, benefit plan or other similar
      arrangement with or for the benefit of any one or more employees, officers,
      directors or consultants, (2) a dividend reinvestment or stockholder stock
      purchase plan or (3) the issuance of capital stock of the Depositor (or
      securities convertible into or exercisable for such capital stock) as
      consideration in an acquisition transaction entered into prior to the applicable
      Event of Default, (b) as a result of an exchange or conversion of any class
      or
      series of the Depositor's capital stock (or any capital stock of a Subsidiary
      (as defined in the Indenture) of the Depositor) for any class or series of
      the
      Depositor's capital stock or of any class or series of the Depositor's
      indebtedness for any class or series of the Depositor's capital stock, (c)
      the
      purchase of fractional interests in shares of the Depositor's capital stock
      pursuant to the conversion or exchange provisions of such capital stock or
      the
      security being converted or exchanged, (d) any declaration of a dividend in
      connection with any Rights Plan (as defined in the Indenture), the issuance
      of
      rights, stock or other property under any Rights Plan, or the redemption or
      repurchase of rights pursuant thereto or (e) any dividend in the form of stock,
      warrants, options or other rights where the dividend stock or the stock issuable
      upon exercise of such warrants, options or other rights is the same stock as
      that on which the dividend is being paid or ranks pari
      passu
      with or
      junior to such stock).

     

    On
      each
      Note Redemption Date, on the stated maturity (or any date of principal repayment
      upon early maturity) of the Notes and on each other date on (or in respect
      of)
      which any principal on the Notes is repaid, the Trust will be required to redeem
      a Like Amount of Trust Securities at the Redemption Price. Under the Indenture,
      the Notes may be redeemed by the Depositor on any Interest Payment Date, at
      the
      Depositor's option, on or after the expiration of the No Call Period, in whole
      or in part from time to time at the Optional Note Redemption Price of the
      principal amount thereof or the redeemed portion thereof, as applicable,
      together, in the case of any such redemption, with accrued interest, including
      additional Interest, to but excluding the date fixed for redemption. The Notes
      may also be redeemed by the Depositor, at its option, at any time, in whole
      but
      not in part, upon the occurrence of an Investment Company Event or a Tax Event
      at the Special Note Redemption Price; and provided,
      further,
      that
      such Investment

     

    
      
         

      

      
        -C-5-

        
          

        

      

      
         

      

    

    Company
      Event or a Tax Event is continuing on the Redemption Date. In addition, upon
      the
      election of at least 25% in aggregate principal amount of the Holders of
      Preferred Securities to cause the redemption or defeasance of the Notes in
      accordance with the Indenture upon a Change of Control, the Notes relating
      to
      the Electing Securities (as defined in the Indenture) must be redeemed at the
      Optional Note Redemption Price or defeased pursuant to the terms of the
      Indenture.

     

    The
      Trust
      Securities redeemed on each Redemption Date shall be redeemed at the Redemption
      Price with the proceeds from the contemporaneous redemption or payment at
      maturity of Notes. Redemptions of the Trust Securities (or portion thereof)
      shall be made and the Redemption Price shall be payable on each Redemption
      Date
      only to the extent that the Trust has funds then on hand and available in the
      Payment Account for the payment of such Redemption Price.

     

    Payments
      of Distributions (including any Additional Interest Amounts), the Redemption
      Price, Liquidation Amount or any other amounts in respect of the Preferred
      Securities shall be made by wire transfer at such place and to such account
      at a
      banking institution in the United States as may be designated in writing at
      least ten (10) Business Days prior to the date for payment by the Person
      entitled thereto unless proper written transfer instructions have not been
      received by the relevant record date, in which case such payments shall be
      made
      by check mailed to the address of such Person as such address shall appear
      in
      the Security Register. If any Preferred Securities are held by a Depositary,
      such Distributions shall be made to the Depositary in immediately available
      funds.

     

    The
      indebtedness evidenced by the Notes is, to the extent provided in the Indenture,
      subordinate and junior in right of payment to the prior payment in full of
      all
      Senior Debt (as defined in the Indenture), and this Security is issued subject
      to the provisions of the Indenture with respect thereto.

     

    
      
         

      

      
        -C-6-

        
          

        

      

      
         

      

    

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned assigns and transfers this Preferred Securities
      Certificate to:

     

    

     

    (Insert
      assignee's social security or tax identification number)

     

    

     

    (Insert
      address and zip code of assignee)

     

    

     

    and
      irrevocably appoints

     

    

     

    agent
      to
      transfer this Preferred Securities Certificate on the books of the Trust. The
      agent may substitute another to act for him or her.

     

    

      
        	
                Date:

              	 
	 	 
	
                Signature:

              	 
	 	
                (Sign
                  exactly as your name appears on the other side of this Preferred
                  Securities Certificate)

                 

              

      

    

     

    The
      signature(s) should be guaranteed by an eligible guarantor institution (banks,
      stockbrokers, savings and loan associations and credit unions with membership
      in
      an approved signature guarantee medallion program), pursuant to S.E.C. Rule
      17Ad-15.

     

    
      
         

      

      
        -C-7-

        
          

        

      

      
         

      

    

    Exhibit
      D

     

    Junior
      Subordinated Indenture

     

    
      
         

      

      
        -D-1-

        
          

        

      

      
         

      

    

    Exhibit
      E

     

    Form
      of Transferee Certificate

    to
      be Executed by Transferees

     

    Wells
      Fargo Bank, N.A.

    919
      North
      Market Street

    Suite
      700

    Wilmington,
      Delaware 19801

    Attention:
      Tracy M. McLamb

    

    Reading
      International Trust I

    500
      Citadel Drive, Suite 300

    Commerce,
      California 90040

    

    
      	 	
              Re:

            	
              Purchase
                of $50,000,000 stated liquidation amount of

            

    

     

    Preferred
      Securities (the "Preferred Securities") of Reading International Trust
      I

     

    Ladies
      and Gentlemen:

     

    In
      connection with our purchase of the Preferred Securities we confirm
      that:

     

    1. We
      understand that the Preferred Securities (the "Preferred Securities") of Reading
      International Trust I (the "Trust") of Reading International, Inc. (the
      "Company") executed in connection therewith) and the Junior Subordinated Notes
      due 2027 of the Company (the "Subordinated Notes") (the entire amount of the
      Trust's outstanding Preferred Securities and the Subordinated Notes together
      being referred to herein as the "Offered Securities"), have not been registered
      under the Securities Act of 1933, as amended (the "Securities Act"), and may
      not
      be offered or sold except as permitted in the following sentence. We agree
      on
      our own behalf and on behalf of any investor account for which we are purchasing
      the Offered Securities that, if we decide to offer, sell or otherwise transfer
      any such Offered Securities, (i) such offer, sale or transfer will be made
      only
      (a) to the Trust, (b) to a person we reasonably believe is a "qualified
      purchaser" (a "QP") (as defined in Section 2(a)(51) of the Investment Company
      Act of 1940, as amended and in compliance with the Securities Act of 1933).
      We
      understand that the certificates for any Offered Security that we receive will
      bear a legend substantially to the effect of the foregoing.

     

    2. We
      are a
      "qualified purchaser" within the meaning of Section 2(a)(51) of the Investment
      Company Act of 1940, as amended, and are purchasing for our own account or
      for
      the account of such a "qualified purchaser," and we have such knowledge and
      experience in financial and business matters as to be capable of evaluating
      the
      merits and risks of our investment in the Offered Securities, and we and any
      account for which we are acting are each able to bear the economic risks of
      our
      or its investment.

     

    3. We
      are
      acquiring the Offered Securities purchased by us for our own account (or for
      one
      or more accounts as to each of which we exercise sole investment discretion
      and
      have authority to make, and do make, the statements contained in this letter)
      and not with a view to any distribution of the Offered Securities, subject,
      nevertheless, to the understanding that the disposition of our property will
      at
      all times be and remain within our control.

     

    4. In
      the
      event that we purchase any Preferred Securities or any Subordinated Notes,
      we
      will acquire such Preferred Securities having an aggregate stated liquidation
      amount

     

    
      
         

      

      
        -E-1-

        
          

        

      

      
         

      

    

    of
      not
      less than $100,000 or such Subordinated Notes having an aggregate principal
      amount not less than $100,000, for our own account and for each separate account
      for which we are acting.

     

    5. We
      acknowledge that we are not a fiduciary of (i) an employee benefit, individual
      retirement account or other plan or arrangement subject to Title I of the
      Employee Retirement Income Security Act of 1974, as amended ("ERISA"), or
      Section 4975 of the Internal Revenue Code of 1986, as amended (the "Code")
      (each
      a "Plan"); or (ii) an entity whose underlying assets include "plan assets"
      by
      reason of any Plan's investment in the entity, and are not purchasing any of
      the
      Offered Securities on behalf of or with "plan assets" by reason of any Plan's
      investment in the entity.

     

    6. We
      acknowledge that the Trust and the Company and others will rely upon the truth
      and accuracy of the foregoing acknowledgments, representations, warranties
      and
      agreements and agree that if any of the acknowledgments, representations,
      warranties and agreements deemed to have been made by our purchase of any of
      the
      Offered Securities are no longer accurate, we shall promptly notify the Company.
      If we are acquiring any Offered Securities as a fiduciary or agent for one
      or
      more investor accounts, we represent that we have sole discretion with respect
      to each such investor account and that we have full power to make the foregoing
      acknowledgments, representations and agreement on behalf of each such investor
      account.

     

    (Name
      of
      Purchaser)

     

    By:  

     

    Date:  

     

    Upon
      transfer, the Preferred Securities (having a stated liquidation amount of
      $ )
      would
      be registered in the name of the new beneficial owner as follows.

     

    Name:
      

     

    
      
        	
                Address:

              	 
	
                 

                Taxpayer
                  ID Number:

              	 

      

    

     

    
      
         

      

      
        -E-2-

        
          

        

      

      
         

      

    

     

    Exhibit
      F

     

    Officer's
      Financial Certificate

     

    The
      undersigned, the [Chairman/Vice Chairman/Chief Executive Officer/President/Vice
      President/Chief Financial Officer/Treasurer/Assistant Treasurer], hereby
      certifies pursuant to Section 8.16(b) of the Amended and Restated Trust
      Agreement, dated as of February 5, 2007 (the "Trust Agreement"), among Reading
      International, Inc. (the "Company"), Wells Fargo Bank, N.A., as property
      trustee, Wells Fargo Delaware Trust Company, as Delaware trustee, and the
      administrative trustees named therein, that, as of [date], [20__], the Company
      had the following ratio and balances:

     

    As
      of
      [Quarterly/Annual Financial Date], 20__

     

    [insert
      calculation of covenants]

     

    *
      A table
      describing the officer's financial certificate calculation procedures is
      provided on page 3

     

    [FOR
      FISCAL YEAR END: Attached hereto are the audited consolidated financial
      statements (including the balance sheet, income statement and statement of
      cash
      flows, and notes thereto, together with the report of the independent
      accountants thereon) of the Company and its consolidated subsidiaries for the
      three years ended ________, 20___].]

     

    [FOR
      FISCAL QUARTER END: Attached hereto are the unaudited consolidated and
      consolidating financial statements (including the balance sheet and income
      statement) of the Company and its consolidated subsidiaries for the fiscal
      quarter ended [date], 20_.]

     

    The
      financial statements fairly present in all material respects, in accordance
      with
      U.S. generally accepted accounting principles ("GAAP"), the financial position
      of the Company and its consolidated subsidiaries, and the results of operations
      and changes in financial condition as of the date, and for the [quarter]
      [annual]
      period
      ended [date],
      20__,
      and such financial statements have been prepared in accordance with GAAP
      consistently applied throughout the period involved (expect as otherwise noted
      therein).

     

    IN
      WITNESS WHEREOF, the undersigned has executed this Officer's Financial
      Certificate as of this ____ day of _________, ____.

     

    

      
        	 	
                Reading
                  International, Inc.

                 

              
	 	
                By:

              	 
	 	
                Name:

              	 
	 	 	 
	 	
                Address:
                  

              
	 	
                500
                  Citadel Drive, Suite 300

              
	 	
                Commerce,
                  California 90040

              

      

    

     

    
      
         

      

      
        -F-1-

        
          

        

      

      
         

      

    

    Schedule
      A

     

    DETERMINATION
      OF LIBOR

     

    With
      respect to the Trust Securities, the London interbank offered rate (“LIBOR”)
      shall be determined by the Calculation Agent in accordance with the following
      provisions (in each case rounded to the nearest .000001%):

     

    (1) On
      the
      second LIBOR Business Day (as defined below) prior to a Distribution Date
      occurring after the expiration of the Fixed Rate Period (each such day, a
“LIBOR
      Determination Date”),
      LIBOR
      for any given security shall for the following interest payment period equal
      the
      rate, as obtained by the Calculation Agent from Bloomberg Financial Markets
      Commodities News, for three-month Eurodollar deposits that appears on Dow Jones
      Telerate Page 3750 (as defined in the International Swaps and Derivatives
      Association, Inc. 2000 Interest Rate and Currency Exchange Definitions), or
      such
      other page as may replace such Page 3750, as of 11:00 a.m. (London time) on
      such
      LIBOR Determination Date.

     

    (2) If,
      on
      any LIBOR Determination Date, such rate does not appear on Dow Jones Telerate
      Page 3750 or such other page as may replace such Page 3750, the Calculation
      Agent shall determine the arithmetic mean of the offered quotations of the
      Reference Banks (as defined below) to leading banks in the London interbank
      market for three-month Eurodollar deposits in an amount determined by the
      Calculation Agent by reference to requests for quotations as of approximately
      11:00 a.m. (London time) on the LIBOR Determination Date made by the Calculation
      Agent to the Reference Banks. If, on any LIBOR Determination Date, at least
      two
      of the Reference Banks provide such quotations, LIBOR shall equal such
      arithmetic mean of such quotations. If, on any LIBOR Determination Date, only
      one or none of the Reference Banks provide such quotations, LIBOR shall be
      deemed to be the arithmetic mean of the offered quotations that leading banks
      in
      the City of New York selected by the Calculation Agent are quoting on the
      relevant LIBOR Determination Date for three-month Eurodollar deposits in an
      amount determined by the Calculation Agent by reference to the principal London
      offices of leading banks in the London interbank market; provided,
      that if
      the Calculation Agent is required but is unable to determine a rate in
      accordance with at least one of the procedures provided above, LIBOR shall
      be
      LIBOR as determined on the previous LIBOR Determination Date.

     

    (3) As
      used
      herein: “Reference
      Banks”
means
      four major banks in the London interbank market selected by the Calculation
      Agent; and “LIBOR
      Business Day”
means
      a
      day on which commercial banks are open for business (including dealings in
      foreign exchange and foreign currency deposits) in London.EXHIBIT
      10.4

     

    JUNIOR
      SUBORDINATED INDENTURE

     

    among

     

    READING
      INTERNATIONAL, INC.,

     

    READING
      NEW ZEALAND, LIMITED

     

    and

     

    WELLS
      FARGO BANK, N.A.,

     

    as
      Trustee

     

    _______________________

     

    Dated
      as
      of February 5, 2007

     

    ________________________

     

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

     

    
      Table
        of Contents

       

      
        	 	
                Page

              
	
                ARTICLE
                  I
                  DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

              	
                1

              
	
                SECTION
                  1.1.
                  Definitions

              	
                1

              
	
                SECTION
                  1.2.
                  Compliance Certificate and Opinions

              	
                10

              
	
                SECTION
                  1.3.
                  Forms of Documents Delivered to Trustee

              	
                11

              
	
                SECTION
                  1.4.
                  Acts of Holders

              	
                11

              
	
                SECTION
                  1.5.
                  Notices, Etc. to Trustee and Company

              	
                13

              
	
                SECTION
                  1.6.
                  Notice to Holders; Waiver

              	
                13

              
	
                SECTION
                  1.7.
                  Effect of Headings and Table of Contents

              	
                14

              
	
                SECTION
                  1.8.
                  Successors and Assigns; Option of Company

              	
                14

              
	
                SECTION
                  1.9.
                  Separability Clause

              	
                14

              
	
                SECTION
                  1.10.
                  Benefits of Indenture

              	
                14

              
	
                SECTION
                  1.11.
                  Governing Law

              	
                14

              
	
                SECTION
                  1.12.
                  Submission to Jurisdiction

              	
                15

              
	
                SECTION
                  1.13.
                  Non-Business Days

              	
                15

              
	
                SECTION
                  1.14.
                  Company as Agent

              	
                15

              
	
                SECTION
                  1.15.
                  Acknowledgement of Joint and Several Liability

              	
                16

              
	
                ARTICLE
                  II
                  SECURITY FORMS

              	
                17

              
	
                SECTION
                  2.1.
                  Form of Security

              	
                17

              
	
                SECTION
                  2.2.
                  Restricted Legend

              	
                21

              
	
                SECTION
                  2.3.
                  Form of Trustee’s Certificate of Authentication

              	
                23

              
	
                SECTION
                  2.4.
                  Temporary Securities

              	
                23

              
	
                SECTION
                  2.5.
                  Definitive Securities

              	
                24

              
	
                ARTICLE
                  III
                  THE SECURITIES

              	
                24

              
	
                SECTION
                  3.1.
                  Payment of Principal and Interest

              	
                24

              
	
                SECTION
                  3.2.
                  Denominations

              	
                26

              
	
                SECTION
                  3.3.
                  Execution, Authentication, Delivery and Dating

              	
                26

              
	
                SECTION
                  3.4.
                  Global Securities

              	
                27

              
	
                SECTION
                  3.5.
                  Registration, Transfer and Exchange Generally

              	
                29

              
	
                SECTION
                  3.6.
                  Mutilated, Destroyed, Lost and Stolen Securities

              	
                30

              
	
                SECTION
                  3.7.
                  Persons Deemed Owners

              	
                31

              
	
                SECTION
                  3.8.
                  Cancellation

              	
                31

              
	
                SECTION
                  3.9.
                  Reserved

              	
                31

              
	
                SECTION
                  3.10.
                  Reserved

              	
                31

              
	
                SECTION
                  3.11.
                  Agreed Tax Treatment

              	
                31

              
	
                SECTION
                  3.12.
                  CUSIP Numbers

              	
                31

              
	
                ARTICLE
                  IV
                  SATISFACTION AND DISCHARGE

              	
                32

              
	
                SECTION
                  4.1.
                  Satisfaction and Discharge of Indenture

              	
                32

              
	
                SECTION
                  4.2.
                  Application of Trust Money

              	
                33

              
	
                ARTICLE
                  V
                  REMEDIES

              	
                33

              
	
                SECTION
                  5.1.
                  Events of Default

              	
                33

              
	
                SECTION
                  5.2.
                  Acceleration of Maturity; Rescission and Annulment

              	
                34

              
	
                SECTION
                  5.3.
                  Collection of Indebtedness and Suits for Enforcement by
                  Trustee

              	
                35

              
	
                SECTION
                  5.4.
                  Trustee May File Proofs of Claim

              	
                36

              
	
                SECTION
                  5.5.
                  Trustee May Enforce Claim Without Possession of
                  Securities

              	
                36

              
	
                SECTION
                  5.6.
                  Application of Money Collected

              	
                36

              
	
                SECTION
                  5.7.
                  Limitation on Suits

              	
                37

              
	
                SECTION
                  5.8.
                  Unconditional Right of Holders to Receive Principal, Premium, if
                  any, and
                  Interest; Direct Action by Holders of Preferred
                  Securities

              	
                37

              
	
                SECTION
                  5.9.
                  Restoration of Rights and Remedies

              	
                37

              
	
                SECTION
                  5.10.
                  Rights and Remedies Cumulative

              	
                38

              
	
                SECTION
                  5.11.
                  Delay or Omission Not Waiver

              	
                38

              
	
                SECTION
                  5.12.
                  Control by Holders

              	
                38

              
	
                SECTION
                  5.13.
                  Waiver of Past Defaults

              	
                38

              
	
                SECTION
                  5.14.
                  Undertaking for Costs

              	
                39

              
	
                SECTION
                  5.15.
                  Waiver of Usury, Stay or Extension Laws

              	
                39

              
	
                ARTICLE
                  VI
                  THE TRUSTEE

              	
                39

              
	
                SECTION
                  6.1.
                  Corporate Trustee Required

              	
                39

              
	
                SECTION
                  6.2.
                  Certain Duties and Responsibilitie

              	
                40

              
	
                SECTION
                  6.3.
                  Notice of Defaults

              	
                41

              
	
                SECTION
                  6.4.
                  Certain Rights of Trustee

              	
                42

              
	
                SECTION
                  6.5.
                  May Hold Securities

              	
                43

              
	
                SECTION
                  6.6.
                  Compensation; Reimbursement; Indemnity

              	
                43

              
	
                SECTION
                  6.7.
                  Resignation and Removal; Appointment of Successor

              	
                44

              
	
                SECTION
                  6.8.
                  Acceptance of Appointment by Successor

              	
                45

              
	
                SECTION
                  6.9.
                  Merger, Conversion, Consolidation or Succession to
                  Business

              	
                45

              
	
                SECTION
                  6.10.
                  Not Responsible for Recitals or Issuance of
                  Securities

              	
                46

              
	
                SECTION
                  6.11.
                  Appointment of Authenticating Agent

              	
                46

              
	
                ARTICLE
                  VII
                  HOLDER’S LISTS AND REPORTS BY COMPANY AND READING NZ

              	
                47

              
	
                SECTION
                  7.1.
                  Company to Furnish Trustee Names and Addresses of
                  Holders

              	
                47

              
	
                SECTION
                  7.2.
                  Preservation of Information, Communications to
                  Holders

              	
                48

              
	
                SECTION
                  7.3.
                  Reports by Company

              	
                48

              
	
                ARTICLE
                  VIII
                  CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

              	
                49

              
	
                SECTION
                  8.1.
                  Company and Reading NZ May Consolidate, Etc., Only on Certain
                  Terms

              	
                49

              
	
                SECTION
                  8.2.
                  Successor Substituted

              	
                49

              
	
                ARTICLE
                  IX
                  SUPPLEMENTAL INDENTURES

              	
                50

              
	
                SECTION
                  9.1. Supplemental Indentures without Consent of Holders

              	
                50

              
	
                SECTION
                  9.2.
                  Supplemental Indentures with Consent of Holders

              	
                51

              
	
                SECTION
                  9.3.
                  Execution of Supplemental Indentures

              	
                51

              
	
                SECTION
                  9.4.
                  Effect of Supplemental Indentures

              	
                52

              
	
                SECTION
                  9.5.
                  Reference in Securities to Supplemental Indentures

              	
                52

              
	
                ARTICLE
                  X
                  COVENANTS

              	
                52

              
	
                SECTION
                  10.1.
                  Payment of Principal, Premium, if any, and Interest

              	
                52

              
	
                SECTION
                  10.2.
                  Money for Security Payments to be Held in Trust

              	
                52

              
	
                SECTION
                  10.3.
                  Statement as to Compliance

              	
                53

              
	
                SECTION
                  10.4.
                  Calculation Agent

              	
                53

              
	
                SECTION
                  10.5.
                  Additional Tax Sums

              	
                54

              
	
                SECTION
                  10.6.
                  Additional Covenants

              	
                54

              
	
                SECTION
                  10.7.
                  Financial Covenants

              	
                56

              
	
                SECTION
                  10.8.
                  Waiver of Covenants

              	
                57

              
	
                SECTION
                  10.9.
                  Treatment of Securities

              	
                57

              
	
                SECTION
                  10.10.
                  Financial Covenant Deposit

              	
                57

              
	
                ARTICLE
                  XI
                  REDEMPTION OF SECURITIES

              	
                58

              
	
                SECTION
                  11.1.
                  Redemption at Option of Company

              	
                58

              
	
                SECTION
                  11.2.
                  Redemption at Option of Holders

              	
                59

              
	
                SECTION
                  11.3.
                  Election to Redeem; Notice to Trustee

              	
                59

              
	
                SECTION
                  11.4.
                  Selection of Securities to be Redeemed

              	
                60

              
	
                SECTION
                  11.5.
                  Notice of Redemption

              	
                60

              
	
                SECTION
                  11.6.
                  Deposit of Redemption Price

              	
                61

              
	
                SECTION
                  11.7.
                  Payment of Securities Called for Redemption

              	
                61

              
	
                ARTICLE
                  XII

              	
                62

              
	
                SUBORDINATION
                  OF SECURITIES

              	
                62

              
	
                SECTION
                  12.1.
                  Securities Subordinate to Senior Debt

              	
                62

              
	
                SECTION
                  12.2.
                  No Payment When Senior Debt in Default; Payment Over of Proceeds
                  Upon
                  Dissolution, Etc.

              	
                62

              
	
                SECTION
                  12.3.
                  Payment Permitted If No Default

              	
                63

              
	
                SECTION
                  12.4.
                  Subrogation to Rights of Holders of Senior Debt

              	
                63

              
	
                SECTION
                  12.5.
                  Provisions Solely to Define Relative Rights

              	
                64

              
	
                SECTION
                  12.6.
                  Trustee to Effectuate Subordination

              	
                64

              
	
                SECTION
                  12.7.
                  No Waiver of Subordination Provisions

              	
                64

              
	
                SECTION
                  12.8.
                  Notice to Trustee

              	
                65

              
	
                SECTION
                  12.9.
                  Reliance on Judicial Order or Certificate of Liquidating
                  Agent

              	
                65

              
	
                SECTION
                  12.10.
                  Trustee Not Fiduciary for Holders of Senior Debt

              	
                65

              
	
                SECTION
                  12.11.
                  Rights of Trustee as Holder of Senior Debt; Preservation of Trustee’s
                  Rights

              	
                66

              
	
                SECTION
                  12.12.
                  Article Applicable to Paying Agents

              	
                66

              
	
                ARTICLE
                  XIII
                  DEFEASANCE

              	
                66

              
	
                SECTION
                  13.1.
                  Defeasance and Discharge

              	
                66

              
	
                SECTION
                  13.2.
                  Conditions to Defeasance

              	
                67

              
	
                SECTION
                  13.3.
                  Deposited Money and U.S. Government Obligations to be Held in Trust;
                  Other
                  Miscellaneous Provisions

              	
                67

              
	
                SECTION
                  13.4.
                  Reinstatement

              	
                68

              

      

       

    

    SCHEDULES

     

    Schedule
      A -  Determination
      of LIBOR

     

    Exhibit
      A
      - Form
      of
      Officer’s Financial Certificate

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    JUNIOR
      SUBORDINATED INDENTURE,
      dated
      as of February 5, 2007, among Reading International, Inc., a Nevada corporation
      (the “Company”),
      Reading New Zealand, Limited, a New Zealand corporation (“Reading
      NZ”),
      and
      Wells Fargo Bank, N.A., as Trustee (in such capacity, the “Trustee”).

     

    RECITALS
      OF THE COMPANY

     

    WHEREAS,
      the Company and Reading NZ have duly authorized the execution and delivery
      of
      this Indenture to provide for the issuance of their unsecured junior
      subordinated interest notes (the “Securities”)
      issued
      to evidence loans made to the Company (on behalf of itself and Reading NZ)
      of
      the proceeds from the issuance by Reading International Trust I, a Delaware
      statutory trust (the “Trust”),
      of
      undivided preferred beneficial interests in the assets of the Trust (the
“Preferred
      Securities”)
      and
      undivided common beneficial interests in the assets of the Trust (the
“Common
      Securities”
      and,
      collectively with the Preferred Securities, the “Trust
      Securities”),
      and to
      provide the terms and conditions upon which the Securities are to be
      authenticated, issued and delivered; and

     

    WHEREAS,
      all things necessary to make this Indenture a valid agreement of the Company
      and
      Reading NZ, 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, as follows:

     

    ARTICLE
      I

     

    DEFINITIONS
      AND OTHER PROVISIONS OF GENERAL APPLICATION

     

    SECTION
      1.1. Definitions.

     

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

     

    (a) the
      terms
      defined in this Article
      I
      have the
      meanings assigned to them in this Article
      I;

     

    (b) the
      words
“include”, “includes” and “including” shall be deemed to be followed by the
      phrase “without limitation”;

     

    (c) all
      accounting terms not otherwise defined herein have the meanings assigned to
      them
      in accordance with GAAP;

     

    (d) unless
      the context otherwise requires, any reference to an “Article” or a “Section”
refers to an Article or a Section, as the case may be, of this
      Indenture;

     

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

     

    (f) a
      reference to the singular includes the plural and vice versa; and

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    (g) the
      masculine, feminine or neuter genders used herein shall include the masculine,
      feminine and neuter genders.

     

    “Act”
      when
      used with respect to any Holder, has the meaning specified in Section
      1.4.

     

    “Administrative
      Trustee”
      means,
      with respect to the Trust, each Person identified as an “Administrative Trustee”
in the Trust Agreement, solely in its capacity as Administrative Trustee of
      the
      Trust under the Trust Agreement and not in its individual capacity, or its
      successor in interest in such capacity, or any successor Administrative Trustee
      appointed as therein provided.

     

    “Additional
      Interest”
      means
      the interest, if any, that shall accrue on any amounts payable on the
      Securities, the payment of which has not been made on the applicable Interest
      Payment Date and which shall accrue at the rate per annum specified or
      determined as specified in such Security, in each case to the extent legally
      enforceable.

     

    “Additional
      Tax Sums”
      has the
      meaning specified in Section
      10.5.

     

    “Additional
      Taxes”
      means
      taxes, duties or other governmental charges imposed on the Trust as a result
      of
      a Tax Event (which, for the sake of clarity, does not include amounts required
      to be deducted or withheld by the Trust from payments made by the Trust to
      or
      for the benefit of the Holder of, or any Person that acquires a beneficial
      interest in, the Securities).

     

    “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.

     

    “Applicable
      Depositary Procedures”
      means,
      with respect to any transfer or transaction involving a Global Security or
      beneficial interest therein, the rules and procedures of the Depositary for
      such
      Security, in each case to the extent applicable to such transaction and as
      in
      effect from time to time.

     

    “Authenticating
      Agent”
      means
      any Person authorized by the Trustee pursuant to Section
      6.11
      to act
      on behalf of the Trustee to authenticate the Securities.

     

    “Bankruptcy
      Code”
      means
      Title 11 of the United States Code or any successor statute(s) thereto, or
      any
      similar federal or state law for the relief of debtors, in each case as amended
      from time to time.

     

    “Board
      of Directors”
      means
      the board of directors of the Company or Reading NZ, as applicable, or any
      duly
      authorized committee of that board.

     

    “Board
      Resolution”
      means a
      copy of a resolution certified by the Secretary or an Assistant Secretary of
      the
      Company or Reading NZ, as applicable, to have been duly adopted by the Board
      of
      Directors and to be in full force and effect on the date of such
      certification.

     

    “Business
      Day”
      means
      any day other than (i) a Saturday or Sunday, (ii) a day on which banking
      institutions in the City of New York are authorized or required by law or
      executive order to remain closed or (iii) a day on which the Corporate Trust
      Office of the Trustee is closed for business.

     

    “Calculation
      Agent”
      has the
      meaning specified in Section
      10.4.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    “Change
      of Control”
      means
      (i) the direct or indirect sale, transfer, conveyance or other disposition
      of
      all or substantially all of the Company’s assets, stock or properties to any
      Person other than a sale, transfer, conveyance or disposition to (a) James
      J.
      Cotter, James J. Cotter, Jr. or Ellen Margaret Cotter (the “Cotters”),
      or
      (b) an entity controlled by the Cotters and formed solely for the purposes
      of
      acquiring the Company, (ii) the consummation of any transaction (including
      a
      merger or consolidation of the Company with or into another entity or any other
      corporate reorganization) if the Company is not the surviving entity of such
      transaction or the shareholders of the Company, immediately prior to such
      transaction own or control less than a majority of the voting power of the
      surviving corporation following the transaction, (iii) the adoption of a plan
      relating to the liquidation or dissolution of the Company, other than in a
      transaction where the Company is liquidated or dissolved into a new holding
      entity for the Company which immediately after the liquidation is controlled
      by
      the shareholders of the Company immediately prior to such transaction, or (iv)
      so long as Reading NZ is an Obligor under this Indenture which has not been
      released in accordance with Section
      1.8(b)
      hereof,
      the direct or indirect sale, transfer, conveyance or other disposition of all
      or
      substantially all of Reading NZ’s assets, stock or properties to any Person, or
      the consummation of any transaction (including a merger, consolidation,
      liquidation or dissolution of Reading NZ with or into another entity or any
      other corporate reorganization) if Reading NZ is not the surviving entity of
      such transaction or the shareholders of Reading NZ, immediately prior to such
      transaction own or control less than a majority of the voting power of the
      surviving corporation following the transaction.

     

    “Common
      Securities”
      has the
      meaning specified in the first recital of this Indenture. 

     

    “Common
      Stock”
means
      the common stock, par value $0.01 per share, of the Company.

     

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

     

    “Company
      Request”
      and
“Company
      Order”
      mean,
      respectively, the written request or order signed in the name of the Company
      (on
      behalf of itself and Reading NZ) by its Chairman of the Board of Directors,
      its
      Vice Chairman of the Board of Directors, its Chief Executive Officer, President
      or a Vice President, and by its Chief Financial Officer, its Treasurer, an
      Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered
      to
      the Trustee.

     

    “Corporate
      Trust Office”
      means
      the principal office of the Trustee at which at any particular time its
      corporate trust business shall be administered, which office at the date of
      this
      Indenture is located at 919 North Market Street, Suite 700, Wilmington, Delaware
      19801.

     

    “Debt”
      means,
      with respect to any Person, whether recourse is to all or a portion of the
      assets of such Person, whether currently existing or hereafter incurred and
      whether or not contingent and without duplication, (i) every obligation of
      such
      Person for money borrowed; (ii) every obligation of such Person evidenced by
      bonds, debentures, notes or other similar instruments, including obligations
      incurred in connection with the acquisition of property, assets or businesses;
      (iii) every reimbursement obligation of such Person with respect to letters
      of
      credit, bankers’ acceptances or similar facilities issued for the account of
      such Person; (iv) every obligation of such Person issued or assumed as the
      deferred purchase price of property or services (but excluding trade accounts
      payable or other accrued liabilities arising in the ordinary course of
      business); (v) every capital lease obligation of such Person; (vi) all
      indebtedness of such Person, whether incurred on or prior to the date of this
      Indenture or thereafter incurred, for claims in respect of derivative products,
      including interest rate, foreign exchange rate and commodity forward contracts,
      options and swaps and similar arrangements; (vii) every obligation of the type
      referred to in clauses (i) through (vi) of another Person and all dividends
      of

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    another
      Person the payment of which, in either case, such Person has guaranteed or
      is
      responsible or liable for, directly or indirectly, as obligor or otherwise;
      and
      (viii) any renewals, extensions, refundings, amendments or modifications of
      any
      obligation of the type referred to in clauses (i) through (vii).

     

    “Defaulted
      Interest”
      has the
      meaning specified in Section
      3.1.

     

    “Defeasance”
has
      the
      meaning specified in Section
      13.1.

     

    “Defeasance
      Maturity Date”
      has the
      meaning specified in Section
      13.2.

     

    “Delaware
      Trustee”
      means,
      with respect to the Trust, the Person identified as the “Delaware
      Trustee”
      in the
      Trust Agreement, solely in its capacity as Delaware Trustee of the Trust under
      the Trust Agreement and not in its individual capacity, or its successor in
      interest in such capacity, or any successor Delaware Trustee appointed as
      therein provided.

     

    “Depositary”
      means an
      organization registered as a clearing agency under the Exchange Act that is
      designated as Depositary by the Company (on behalf of itself and Reading NZ)
      or
      any successor thereto. DTC will be the initial Depositary.

     

    “Depositary
      Participant”
      means a
      broker, dealer, bank, other financial institution or other Person for whom
      from
      time to time a Depositary effects book-entry transfers and pledges of securities
      deposited with the Depositary.

     

    “Distributions”
      means
      amounts payable in respect of the Trust Securities as provided in the Trust
      Agreement and referred to therein as“Distributions.”

     

    “Dollar”
      or
“$”
      means
      the currency of the United States of America that, as at the time of payment,
      is
      legal tender for the payment of public and private debts.

     

    “DTC”
      means
      The Depository Trust Company, a New York corporation, or any successor
      thereto.

     

    “EBITDA”
      means
      the consolidated net income of the Company and its Subsidiaries in accordance
      with GAAP, plus,
      to the
      extent deducted in determining such net income, (i) interest expense, (ii)
      income tax expense, (iii) depreciation, and (iv) amortization. 

     

    “Electing
      Securities”
      means
      the Outstanding Securities corresponding to the Preferred Securities held by
      the
      holders of Preferred Securities making a Change of Control Election with respect
      to a Change of Control, provided that
      the
      holders of at least twenty five percent (25%) of the Preferred Securities make
      a
      Change of Control Election with respect to such Change of Control.

     

    “Event
      of Default”
      has the
      meaning specified in Section
      5.1.

     

    “Exchange
      Act”
      means
      the Securities Exchange Act of 1934 or any statute successor thereto, in each
      case as amended from time to time.

     

    “Expiration
      Date”
      has the
      meaning specified in Section
      1.4.

     

    “Extraordinary
      Nonrecurring Expense” means
      a
      one-time only actual expense (up to a maximum amount of $7 million) which is
      (i)
      in excess of reserves established as of December 31, 2006, and (ii)
      extraordinary and nonrecurring in nature (including, by way of example,
      uninsured casualty losses, taxes relating to periods prior to January 1, 2007,
      uninsured liability

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    claims,
      to the extent not related to the day-to-day operations of the Company’s
      businesses, and asset write-downs), which expense may be paid in a lump sum
      or
      over time via installments. 

     

    “Financial
      Covenant Deposit” has
      the
      meaning set forth in Section
      10.7(c)
      hereof.

     

    “Fixed
      Charge Coverage Ratio”
means,
      for each period of four consecutive fiscal quarters ending on the last day
      of a
      fiscal quarter, the ratio of (a) the total for such period of EBITDA of the
      Company and its Subsidiaries as determined in accordance with GAAP as in effect
      as of September 30, 2006, minus
      the sum
      of (i) income taxes paid in cash by the Company and (ii) Unfinanced Capital
      Expenditures, to
      (b) the
      sum for such period of (i) consolidated cash interest expense of the Company
      and
      its Subsidiaries (calculated without reference to interest which (a) under
      GAAP
      as determined in accordance with GAAP as in effect as of September 30, 2006,
      would be capitalized and (b) which is financed as part of a construction loan)
      and (ii) required payments of principal of all Debt of the Company (including
      the Securities but excluding pay-offs of Debt in the event of a refinancing
      or
      sale);
      provided that
      following notice from the Company to the Trustee, the Holders and the holders
      of
      the Preferred Securities, of the incurrence of an Extraordinary Nonrecurring
      Expense, the reason therefor and the actual amount thereof during any period(s)
      (including the amount above any reserves relating thereto), the Company exclude
      from part (a) of this Ratio, on a one-time only basis (and for the four fiscal
      quarters associated therewith) or, if applicable, for multiple periods
      associated therewith (if paid via installments), the amount of such
      Extraordinary Nonrecurring Expense during such period(s) in an aggregate amount
      not to exceed $7 million; and provided further
      that
      following notice from the Company to the Trustee, the Holders and the holders
      of
      the Preferred Securities detailing the type and amounts thereof, the Company
      may
      also exclude from part (a) of this Ratio all types of non-cash compensation
      including stock options, restricted stock, accrued retirement benefits and
      carried interests.

     

    “GAAP”
      means
      United States generally accepted accounting principles, consistently applied,
      from time to time in effect unless otherwise specifically provided
      herein.

     

    “Global
      Security”
      means a
      Security that evidences all or part of the Securities, the ownership and
      transfers of which shall be made through book entries by a
      Depositary.

     

    “Government
      Obligation”
      means
      (a) any security that is (i) a direct obligation of the United States of America
      of which the full faith and credit of the United States of America is pledged
      or
      (ii) an obligation of a Person controlled or supervised by and acting as an
      agency or instrumentality of the United States of America or the payment of
      which is unconditionally guaranteed as a full faith and credit obligation by
      the
      United States of America, which, in either case (i) or (ii), is not callable
      or
      redeemable at the option of the issuer thereof, and (b) any depositary receipt
      issued by a bank (as defined in Section 3(a)(2) of the Securities Act) as
      custodian with respect to any Government Obligation that is specified in clause
      (a) above and held by such bank for the account of the holder of such depositary
      receipt, or with respect to any specific payment of principal of or interest
      on
      any Government Obligation that is so specified and held, provided, that (except
      as required by law) such custodian is not authorized to make any deduction
      from
      the amount payable to the holder of such depositary receipt from any amount
      received by the custodian in respect of the Government Obligation or the
      specific payment of principal or interest evidenced by such depositary
      receipt.

     

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

     

    “Indenture”
      means
      this instrument as originally executed or as it may from time to time be amended
      or supplemented by one or more amendments or indentures supplemental hereto
      entered into pursuant to the applicable provisions hereof.

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    “Interest
      Payment Date”
      means January
      30, April 30, July 30 and October 30 of each year, commencing on April 30,
      2007,
      during the term of this Indenture.

     

    “Investment
      Company Act”
      means
      the Investment Company Act of 1940 or any successor statute thereto, in each
      case as amended from time to time.

     

    “Investment
      Company Event”
      means
      the receipt by the Company of an Opinion of Counsel experienced in such matters
      to the effect that, as a result of the occurrence of a change in law or
      regulation (including any announced prospective change) or a written change
      in
      interpretation or application of law or regulation by any legislative body,
      court, governmental agency or regulatory authority, there is more than an
      insubstantial risk that the Trust is or, within ninety (90) days of the date
      of
      such opinion will be, considered an “investment company” that is required to be
      registered under the Investment Company Act, which change or prospective change
      becomes effective or would become effective, as the case may be, on or after
      the
      date of the issuance of the Securities.

     

    “LIBOR”
      has the
      meaning specified in Schedule
      A.

     

    “LIBOR
      Business Day”
      has the
      meaning specified in Schedule
      A.
      

     

    “LIBOR
      Determination Date”
      has the
      meaning specified in Schedule
      A.
      

     

    “Liquidation
      Amount”
      has the
      meaning specified in the Trust Agreement.

     

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

     

    “Net
      Asset Value of Real Estate”
means
      the fair market value, as established by independent appraisals no more than
      two
      (2) years old, of fee interests and leasehold interests in real estate of the
      Company and its Subsidiaries, less all Debt of the Company and its Subsidiaries
      (excluding the Securities); provided
      that
      the
      value of any such interests /Debt in which the Company or any of its
      Subsidiaries has a minority interest shall be included to the extent of the
      Company’s or its Subsidiaries’ interests/ Debt (e.g., if the Company owns a 10%
      interest in an entity that owns a $100 million property, $10 million of value
      will be included for the purposes of this definition).

     

    “Net
      Worth”
means
      (a) the aggregate amount of all assets of the Company, less (b) the aggregate
      amount of all liabilities of the Company, in each case as may be properly
      classified as such in accordance with GAAP consistently applied.

     

    “No
      Call Period” means
      the
      period of time beginning on the Original Issue Date and ending on April 30,
      2012. 

     

    “Notice
      of Default”
      means a
      written notice of the kind specified in Section
      5.1(c).

     

    “Obligor”
      has the
      meaning set forth in Section
      1.14.

     

    “Officers’
      Certificate”
      means a
      certificate signed by the Chairman of the Board, a Vice Chairman of the Board,
      the Chief Executive Officer, the President or a Vice President, and by the
      Chief
      Financial Officer, the Treasurer, an Assistant Treasurer, the Secretary or
      an
      Assistant Secretary, of the Company or Reading NZ, as applicable, and delivered
      to the Trustee.

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    “Operative
      Documents”
      means
      the Trust Agreement, the Indenture, the Purchase Agreement and the
      Securities.

     

    “Opinion
      of Counsel”
      means a
      written opinion of counsel, who may be counsel for or an employee of the Company
      or Reading NZ or any Affiliate of the Company.

     

    “Optional
      Redemption Price”
      has the
      meaning set forth in Section
      11.1.
      

     

    “Original
      Issue Date”
      means
      the date of original issuance of each Security.

     

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

     

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

     

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

     

    (iii) Securities
      that have been paid or in substitution for or in lieu of which other Securities
      have been authenticated and delivered pursuant to the provisions of this
      Indenture, unless proof satisfactory to the Trustee is presented that any such
      Securities are held by Holders in whose hands such Securities are valid, binding
      and legal obligations of the Company;

     

    provided,
      that in
      determining whether the Holders of the requisite principal amount of Outstanding
      Securities have given any request, demand, authorization, direction, notice,
      consent or waiver hereunder, Securities owned by the Company, Reading NZ or
      any
      other obligor upon the Securities or any Affiliate of the Company, Reading
      NZ or
      such other obligor shall be disregarded and deemed not to be Outstanding unless
      the Company or Reading NZ shall hold all outstanding Securities, except that,
      in
      determining whether the Trustee shall be protected in relying upon any such
      request, demand, authorization, direction, notice, consent or waiver, only
      Securities that a Responsible Officer of the Trustee actually knows to be so
      owned shall be so disregarded. Securities so owned that 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, Reading NZ or any other
      obligor upon the Securities or any Affiliate of the Company, Reading NZ or
      such
      other obligor. Notwithstanding anything herein to the contrary, Securities
      initially issued to the Trust that are owned by the Trust shall be deemed to
      be
      Outstanding notwithstanding the ownership by the Company, Reading NZ or an
      Affiliate of any beneficial interest in the Trust.

     

    “Paying
      Agent”
      means
      the Trustee or any Person authorized by the Company (on behalf of itself and
      Reading NZ) to pay the principal of or any premium or interest on, or other
      amounts in respect of, any Securities on behalf of the Company (on behalf of
      itself and Reading NZ).

     

    “Person”
      means a
      legal person, including any individual, corporation, estate, partnership, joint
      venture, association, joint stock company, company, limited liability company,
      trust, unincorporated association or government, or any agency or political
      subdivision thereof, or any other entity of whatever nature.

     

    
      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

    

     

    “Place
      of Payment”
      means,
      with respect to the Securities, the Corporate Trust Office of the
      Trustee.

     

    “Preferred
      Securities”
      has the
      meaning specified in the first recital of this Indenture.

     

    “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. For the purposes
      of
      this definition, any security authenticated and delivered under Section
      3.6
      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.

     

    “Proceeding”
      has the
      meaning specified in Section
      12.2.

     

    “Property
      Trustee”
      means
      the Person identified as the “Property Trustee” in the Trust Agreement, solely
      in its capacity as Property Trustee of the Trust under the Trust Agreement
      and
      not in its individual capacity, or its successor in interest in such capacity,
      or any successor Property Trustee appointed as therein provided.

     

    “Purchase
      Agreement”
      means
      the agreement, dated as of the date hereof, among the Company, Reading NZ,
      the
      Trust and the Purchaser.

     

    “Purchaser”
      means
      Kodiak Warehouse JPM LLC, a Delaware limited liability company.

     

    “Reading
      NZ”
means
      the Person named as “Reading
      NZ”
in
      the
      first paragraph of this Indenture.

     

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

     

    “Redemption
      Price”
      means,
      when used with respect to any Security to be redeemed, in whole or in part,
      the
      Special Redemption Price or the Optional Redemption Price, as applicable, at
      which such Security or portion thereof is to be redeemed as fixed by or pursuant
      to this Indenture.

     

    “Reference
      Banks”
      has the
      meaning specified in Schedule
      A.

     

    “Regular
      Record Date”
      for the
      interest payable on any Interest Payment Date with respect to the Securities
      means the date that is fifteen (15) days preceding such Interest Payment Date
      (whether or not a Business Day).

     

    “Release
      Notice”
      has the
      meaning specified in Section
      1.8(b).

     

    “Responsible
      Officer”
      means,
      when used with respect to the Trustee, the officer in the Corporate Trust
      Services department of the Trustee having direct responsibility for the
      administration of this Indenture.

     

    “Rights
      Plan”
      means a
      plan of the Company providing for the issuance by the Company to all holders
      of
      its Common Stock of rights entitling the holders thereof to subscribe for or
      purchase shares of any class or series of capital stock of the Company which
      rights (i) are deemed
      to
      be transferred with such shares of such Common Stock and (ii) are also issued
      in
      respect of future issuances of such Common Stock, in each case until the
      occurrence of a specified event or events.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    “Securities”
      or
“Security”
      has the
      meaning set forth in the first recital to this Indenture and more particularly
      means the Securities authenticated and delivered under this
      Indenture.

     

    “Securities
      Act”
      means
      the Securities Act of 1933 or any successor statute thereto, in each case as
      amended from time to time.

     

    “Securities
      Register”
      and
“Securities
      Registrar”
      have the
      respective meanings specified in Section
      3.5.

     

    “Senior
      Debt”
      means
      the principal of and any premium and interest on (including interest accruing
      on
      or after the filing of any petition in bankruptcy or for reorganization relating
      to the Company, whether or not such claim for post-petition interest is allowed
      in such proceeding) all Debt of the Company or Reading NZ, as applicable,
      whether incurred on or prior to the date of this Indenture or thereafter
      incurred, unless it is provided in the instrument creating or evidencing the
      same or pursuant to which the same is outstanding, that such obligations are
      not
      superior in right of payment to the Securities issued under this
      Indenture.

     

    “Special
      Event”
      means
      the occurrence of an Investment Company Event or a Tax Event.

     

    “Special
      Record Date”
      for the
      payment of any Defaulted Interest means a date fixed by the Trustee pursuant
      to
Section
      3.1.

     

    “Special
      Redemption Price”
      has the
      meaning set forth in Section
      11.1(b).
      

     

    “Stated
      Maturity”
      means
      April 30, 2027.

     

    “Subsidiary”
      means a
      Person more than fifty percent (50%) of the outstanding voting stock or other
      voting interests of which is owned, directly or indirectly, by another Person
      or
      by one or more other Subsidiaries thereof, or by such other Person and one
      or
      more other Subsidiaries, in each case as may be classified as such in accordance
      with GAAP. For purposes of this definition, “voting
      stock”
      means
      stock that ordinarily has voting power for the election of directors, whether
      at
      all times or only so long as no senior class of stock has such voting power
      by
      reason of any contingency.

     

    “Tax
      Event”
      means
      the receipt by the Company (on behalf of itself and Reading NZ) of an Opinion
      of
      Counsel experienced in such matters to the effect that, as a result of (a)
      any
      amendment to or change (including any announced prospective change) in the
      laws
      or any regulations thereunder of the United States or any political subdivision
      or taxing authority thereof or therein or (b) any judicial decision or any
      official administrative pronouncement (including any private letter ruling,
      technical advice memorandum or field service advice) or regulatory procedure,
      including any notice or announcement of intent to adopt any such pronouncement
      or procedure (an “Administrative
      Action”),
      regardless of whether such judicial decision or Administrative Action is issued
      to or in connection with a proceeding involving the Company, Reading NZ or
      the
      Trust and whether or not subject to review or appeal, which amendment, change,
      judicial decision or Administrative Action is enacted, promulgated or announced,
      in each case, on or after the date of issuance of the Securities, there is
      more
      than an insubstantial risk that (i) the Trust is, or will be within ninety
      (90)
      days of the date of such opinion, subject to United States federal income tax
      with respect to income received or accrued on the Securities, (ii) interest
      payable by the Company and Reading NZ on the Securities is not, or within ninety
      (90) days of the date of such opinion, will not be, deductible by the Company
      or
Reading
      NZ, in whole or in part, for United States federal income tax purposes, or
      (iii)
      the Trust is, or will be within ninety (90) days of the date of such opinion,
      subject to more than a de
      minimis
      amount
      of other taxes, duties or other governmental charges.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    “Trust”
      has the
      meaning specified in the first recital of this Indenture.

     

    “Trust
      Agreement”
      means
      the Amended and Restated Trust Agreement executed and delivered by the Company,
      the Property Trustee, the Delaware Trustee and the Administrative Trustees
      named
      therein, contemporaneously with the execution and delivery of this Indenture,
      for the benefit of the holders of the Trust Securities, as amended or
      supplemented from time to time.

     

    “Trustee”
      means
      the Person named as the “Trustee”
      in the
      first paragraph of this instrument, solely in its capacity as such and not
      in
      its individual capacity, 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.

     

    “Trust
      Indenture Act”
      means
      the Trust Indenture Act of 1939, as amended and as in effect on the date of
      this
      Indenture.

     

    “Trust
      Securities”
      has the
      meaning specified in the first recital of this Indenture. 

     

    “Unfinanced
      Capital Expenditures”
      means,
      without duplication for any period, all cash expenditures of the Company and
      its
      Subsidiaries during such period that, in conformity with GAAP in effect as
      of
      September 30, 2006, are or would be required to be capitalized and included
      in
      the property, plant and equipment reflected in the consolidated balance sheet
      of
      the Company, except to the extent that such expenditures are financed (whether
      through borrowings, installment sale, capitalized lease arrangement, issuance
      of
      the Company’s equity securities or otherwise), and excluding, however (i)
      purchase price of acquisitions of assets or businesses, (ii) reinvestments
      of
      sales or insurance proceeds from one property into a new property, and (iii)
      cash expenditures for replacement equipment to the extent of the fair market
      value of such replaced equipment at such time.

     

    SECTION
      1.2. Compliance
      Certificate and Opinions.

     

    (a) Upon
      any
      application or request by the Company (on behalf of itself and Reading NZ)
      to
      the Trustee to take any action under any provision of this Indenture, the
      Company shall, if requested by the Trustee, furnish to the Trustee an Officers’
Certificate stating that all conditions precedent (including covenants
      compliance with which constitutes a condition precedent), if any, provided
      for
      in this Indenture relating to the proposed action have been complied with and
      an
      Opinion of Counsel stating that in the opinion of such counsel all such
      conditions precedent (including covenants compliance with which constitutes
      a
      condition precedent), if any, have been complied with.

     

    (b) Every
      certificate or opinion with respect to compliance with a condition or covenant
      provided for in this Indenture (other than the certificate provided pursuant
      to
Section
      10.3)
      shall
      include:

     

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

     

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

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    SECTION
      1.3. Forms
      of Documents Delivered to Trustee.

     

    (a) 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.

     

    (b) Any
      certificate or opinion of an officer of the Company or Reading NZ, as
      applicable, 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 after reasonable inquiry should know, that the certificate or opinion
      or representations with respect to matters upon which his or her certificate
      or
      opinion is based are erroneous. Any such certificate or Opinion of Counsel
      may
      be based, insofar as it relates to factual matters, upon a certificate or
      opinion of, or representations by, an officer or officers of such Person stating
      that the information with respect to such factual matters is in the possession
      of such Person, unless such counsel knows, or after reasonable inquiry should
      know, that the certificate or opinion or representations with respect to such
      matters are erroneous.

     

    (c) 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.

     

    (d) Whenever,
      subsequent to the receipt by the Trustee of any Board Resolution, Officers’
Certificate, Opinion of Counsel or other document or instrument, a clerical,
      typographical or other inadvertent or unintentional error or omission shall
      be
      discovered therein, a new document or instrument may be substituted therefor
      in
      corrected form with the same force and effect as if originally received in
      the
      corrected form and, irrespective of the date or dates of the actual execution
      and/or delivery thereof, such substitute document or instrument shall be deemed
      to have been executed and/or delivered as of the date or dates required with
      respect to the document or instrument for which it is substituted. Without
      limiting the generality of the foregoing, any Securities issued under the
      authority of such defective document or instrument shall nevertheless be the
      valid obligations of the Company and Reading NZ entitled to the benefits of
      this
      Indenture equally and ratably with all other Outstanding
      Securities.

     

    SECTION
      1.4. Acts
      of Holders.

     

    (a) Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action provided by this Indenture to be given to 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 thereof duly appointed
      in
      writing; and, except as herein otherwise expressly provided, such action shall
      become effective when such instrument or instruments (including any appointment
      of an agent) is or are delivered to the Trustee, and, where it is hereby
      expressly required, to the Company (on behalf of itself and Reading NZ). Such
      instrument or instruments (and the action embodied therein and evidenced
      thereby) are herein sometimes 

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    referred
      to as the “Act” of the Holders signing such instrument or instruments. Proof of
      execution of any such instrument or of a writing appointing any such agent
      shall
      be sufficient for any purpose of this Indenture and conclusive in favor of
      the
      Trustee, Reading NZ and the Company, if made in the manner provided in this
      Section
      1.4.

     

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

     

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

     

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

     

    (e) Without
      limiting the foregoing, a Holder entitled to take any action hereunder with
      regard to any particular Security may do so with regard to all or any part
      of
      the principal amount of such Security or by one or more duly appointed agents
      each of which may do so pursuant to such appointment with regard to all or
      any
      part of such principal amount.

     

    (f) Except
      as
      set forth in paragraph (g) of this Section
      1.4,
      the
      Company may set any day as a record date for the purpose of determining the
      Holders of Outstanding Securities entitled to give, make or take any request,
      demand, authorization, direction, notice, consent, waiver or other action
      provided or permitted by this Indenture to be given, made or taken by Holders
      of
      Securities. If any record date is set pursuant to this paragraph, the Holders
      of
      Outstanding Securities on such record date, and no other Holders, shall be
      entitled to take the relevant action, whether or not such Holders remain Holders
      after such record date; provided,
      that no
      such action shall be effective hereunder unless taken on or prior to the
      applicable Expiration Date (as defined in Section
      1.4(h))
      by
      Holders of the requisite principal amount of Outstanding Securities on such
      record date. Nothing in this paragraph shall be construed to prevent the Company
      from setting a new record date for any action for which a record date has
      previously been set pursuant to this paragraph (whereupon the record date
      previously set shall automatically and with no action by any Person be canceled
      and of no effect). Promptly after any record date is set pursuant to this
      paragraph, the Company, at its own expense, shall cause notice of such record
      date, the proposed action by Holders and the applicable Expiration Date to
      be
      given to the Trustee in writing and to each Holder of Securities in the manner
      set forth in Section
      1.6.

     

    (g) The
      Trustee may set any day as a record date for the purpose of determining the
      Holders of Outstanding Securities entitled to join in the giving or making
      of
      (i) any Notice of Default, (ii) any declaration of acceleration or rescission
      or
      annulment thereof referred to in Section
      5.2,
      (iii)
      any request to institute proceedings referred to in Section
      5.7(b)
      or (iv)
      any direction referred to in Section
      5.12.
      If any
      record date is set pursuant to this paragraph, the Holders of Outstanding
      Securities on such record date, and no other Holders, shall be entitled to
      join
      in such notice, declaration, request or direction, whether or not such Holders
      remain Holders after such record date; provided,
      that no
      such action shall be effective hereunder unless taken on or prior to the
      applicable Expiration Date by Holders of the requisite principal amount of
      

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    Outstanding
      Securities on such record date. Nothing in this paragraph shall be construed
      to
      prevent the Trustee from setting a new record date for any action for which
      a
      record date has previously been set pursuant to this paragraph (whereupon the
      record date previously set shall automatically and with no action by any Person
      be canceled and of no effect). Promptly after any record date is set pursuant
      to
      this paragraph, the Trustee, at the Company’s and Reading NZ’s expense, shall
      cause notice of such record date, the proposed action by Holders and the
      applicable Expiration Date to be given to the Company in writing and to each
      Holder of Securities in the manner set forth in Section
      1.6.

     

    (h) With
      respect to any record date set pursuant to paragraph (f) or (g) of this
Section
      1.4,
      the
      party hereto that sets such record date may designate any day as the “Expiration
      Date” and from time to time may change the Expiration Date to any earlier or
      later day; provided, that no such change shall be effective unless notice of
      the
      proposed new Expiration Date is given to the other party hereto in writing,
      and
      to each Holder of Securities in the manner set forth in Section
      1.6,
      on or
      prior to the existing Expiration Date. If an Expiration Date is not designated
      with respect to any record date set pursuant to this Section
      1.4,
      the
      party hereto that set such record date shall be deemed to have initially
      designated the ninetieth (90th) day after such record date as the Expiration
      Date with respect thereto, subject to its right to change the Expiration Date
      as
      provided in this paragraph. Notwithstanding the foregoing, no Expiration Date
      shall be later than the one hundred eightieth (180th) day after the applicable
      record date.

     

    SECTION
      1.5. Notices,
      Etc. to Trustee and Company.

     

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

     

    (a) the
      Trustee by any Holder, any holder of Preferred Securities or the Company (on
      behalf of itself and Reading NZ) 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, or

     

    (b) the
      Company (on behalf of itself and Reading NZ) by the Trustee, any Holder or
      any
      holder of Preferred Securities shall be sufficient for every purpose hereunder
      if in writing and mailed, first class, postage prepaid, to the Company addressed
      to it at 500 Citadel Drive, Suite 300, Commerce, California 90040, Attention:
      Andrzej Matyczynski, or at any other address previously furnished in writing
      to
      the Trustee by the Company.

     

    SECTION
      1.6. Notice
      to Holders; Waiver.

     

    Where
      this Indenture provides for notice to Holders of any event, such notice shall
      be
      sufficiently given (unless otherwise herein expressly provided) if in writing
      and mailed, first class, postage prepaid, to each Holder affected by such event
      to the address of such Holder as it appears in the Securities Register, not
      later than the latest date (if any), and not earlier than the earliest date
      (if
      any), prescribed for the giving of such notice. If, by reason of the suspension
      of or irregularities in regular mail service or for any other reason, it shall
      be impossible or impracticable to mail notice of any event to Holders when
      said
      notice is required to be given pursuant to any provision of this Indenture,
      then
      any manner of giving such notice as shall be satisfactory to the Trustee shall
      be deemed to be a sufficient 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 

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    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.

     

    SECTION
      1.7. 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 of this
      Indenture.

     

    SECTION
      1.8. Successors
      and Assigns; Option of Company.

     

    (a) This
      Indenture shall be binding upon and shall inure to the benefit of any successor
      to the Company, Reading NZ and the Trustee, including any successor by operation
      of law. Except in connection with (i) clause (b) of this Section 1.8, or (ii)
      a
      transaction involving the Company that is permitted under Article
      VIII
      and
      pursuant to which the assignee agrees in writing to perform the Company’s
      obligations hereunder, neither the Company nor Reading NZ shall assign its
      obligations hereunder.

     

    (b) The
      Company shall have the right, upon thirty (30) days prior written notice to
      the
      Trustee, the Holders and the holders of the Preferred Securities (the
“Release
      Notice”),
      to
      assume in full the obligations of Reading NZ under the Securities, this
      Indenture and the other Operative Documents, and to release Reading NZ from
      any
      further, future or on-going liability or obligation under the Securities, this
      Indenture and any other Operative Documents, whereupon Reading NZ shall be
      released from and shall have no further liability or obligation under the
      Securities, this Indenture or any other Operative Documents. The Release Notice
      shall be effective whether or not an Event of Default has occurred, exists
      or is
      continuing, or would upon the giving of any applicable notices and the
      expiration of any applicable cure period, have occurred, be existing or be
      continuing. Upon the effectiveness of the Release Notice, the Securities, this
      Indenture and the other Operative Documents shall be automatically, and without
      the need for any action by any Person, be amended to delete Reading NZ as a
      party to any such agreement, and to remove all rights and obligations of Reading
      NZ under any such agreement, with the same effect as if the Company and the
      Trustee had been the only parties to this Indenture and the Company had been
      the
      only Obligor under the Securities. 

     

    SECTION
      1.9. Separability
      Clause.

     

    If
      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, and there
      shall
      be deemed substituted for the provision at issue a valid, legal and enforceable
      provision as similar as possible to the provision at issue.

     

    SECTION
      1.10. Benefits
      of Indenture.

     

    Nothing
      in this Indenture or in the Securities, express or implied, shall give to any
      Person, other than the parties hereto and their successors and assigns, the
      holders of Senior Debt, the Holders of the Securities and, to the extent
      expressly provided in Sections
      5.2,
      5.8,
      5.9,
      5.11,
      5.13,
      9.2
      and
10.7,
      the
      holders of Preferred Securities, any benefit or any legal or equitable right,
      remedy or claim under this Indenture.

     

    SECTION
      1.11.  Governing Law.

     

    This
      Indenture and the rights and obligations of each of the Holders, the Company,
      Reading NZ and the Trustee shall be construed and enforced in accordance with
      and 

    
      
        
          
          

        

        
          -14-

          
            

          

        

        
          
          

        

      

    

    

    governed
      by the laws of the State of New York without reference to its conflict of laws
      provisions (other than Section 5-1401 of the General Obligations
      Law).

     

    SECTION
      1.12. Submission
      to Jurisdiction.

     

    ANY
      LEGAL
      ACTION OR PROCEEDING BY OR AGAINST ANY PARTY HERETO OR WITH RESPECT TO OR
      ARISING OUT OF THIS INDENTURE MAY BE BROUGHT IN OR REMOVED TO THE COURTS OF
      THE
      STATE OF NEW YORK, IN AND FOR THE COUNTY OF NEW YORK, OR OF THE UNITED STATES
      OF
      AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK (IN EACH CASE SITTING IN THE
      BOROUGH OF MANHATTAN). BY EXECUTION AND DELIVERY OF THIS INDENTURE, EACH PARTY
      ACCEPTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND
      UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS (AND COURTS OF APPEALS
      THEREFROM) FOR LEGAL PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS
      INDENTURE.

     

    SECTION
      1.13. Non-Business
      Days.

     

    If
      any
      Interest Payment Date, Redemption Date or Stated Maturity of any Security shall
      not be a Business Day, then (notwithstanding any other provision of this
      Indenture or the Securities) payment of interest, premium, if any, or principal
      or other amounts in respect of such Security shall not be made on such date,
      but
      shall be made on the next succeeding Business Day (and no interest shall accrue
      in respect of the amounts whose payment is so delayed for the period from and
      after such Interest Payment Date, Redemption Date or Stated Maturity, as the
      case may be, until such next succeeding Business Day) except that, if such
      Business Day falls in the next succeeding calendar year, such payment shall
      be
      made on the immediately preceding Business Day, in each case with the same
      force
      and effect as if made on the Interest Payment Date or Redemption Date or at
      the
      Stated Maturity.

     

    SECTION
      1.14. Company
      as Agent.

     

    Each
      of
      the Company and Reading NZ (each an “Obligor”
and
      collectively, the “Obligors”)
      hereby
      designates, appoints, authorizes and empowers the Company as its agent to act
      as
      specified in this Indenture and each of the other Operative Documents and the
      Company hereby acknowledges such designation, authorization and empowerment,
      and
      accepts such appointment. Each Obligor hereby irrevocably authorizes and directs
      the Company to take such action on its behalf under the provisions of this
      Indenture and the other Operative Documents, and any other instruments,
      documents and agreements referred to herein or therein, and to exercise such
      powers and to perform such duties hereunder and thereunder as are specifically
      delegated to or required of the Obligors by the respective terms and provisions
      hereof and thereof, and such other powers as are reasonably incidental thereto,
      including, without limitation, to take the following actions for and on such
      Obligor’s behalf:

     

    (i)
       to
      submit
      and receive notices, certificates, reports and other communications in
      accordance with the provisions of this Indenture and the other Operative
      Documents; 

     

    (ii)
       to
      receive proceeds of the Securities in accordance with the provisions of this
      Indenture, such proceeds to be disbursed to or for the account of the applicable
      Obligor as soon as practicable after its receipt thereof; 

     

    (iii)
       to
      make
      interest payments and other payments required under this Indenture and the
      other
      Operative Documents;

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    (iv) if
      appointed as such pursuant to this Indenture, to act as Paying Agent and
      Calculation Agent in accordance with the terms of this Indenture;
      and

    

    (v)
       to
      redeem
      and defease the Securities pursuant to the terms of this Indenture.

     

    The
      Company is further authorized and directed by each Obligor to take all such
      actions on behalf of such Obligor necessary to exercise the specific power
      granted in clauses (i) through (iii) above and to perform such other duties
      hereunder and under the other Operative Documents, and deliver such documents
      as
      delegated to or required of the Company by the terms hereof or thereof. The
      agency relationship established pursuant to this Section 1.14 is for
      administrative convenience only and such agency relationship shall not extend
      to
      any matter outside the scope of the Operative Documents.

     

    SECTION
      1.15. Acknowledgement
      of Joint and Several Liability. 

     

    (a) Each
      Obligor acknowledges that it is jointly and severally liable for all of the
      obligations with respect to the Securities and this Indenture. 

     

    (b) Each
      Obligor’s obligations under this Indenture shall, to the fullest extent
      permitted by law, be unconditional irrespective of (i) the validity or
      enforceability, avoidance, or subordination of the obligations of any other
      Obligor or of any document evidencing all or any part of the obligations of
      any
      other Obligor, (ii) the absence of any attempt to collect the obligations
      from any other Obligor or the absence of any other action to enforce the same,
      (iii) the waiver, consent, extension, forbearance, or granting of any
      indulgence by the Holders with respect to any provision of any instrument
      evidencing the obligations of any other Obligor or any part thereof, or any
      other agreement now or hereafter executed by any other Obligor and delivered
      in
      favor of the Holders, or (iv)  any other circumstances which might
      constitute a legal or equitable discharge or defense of a guarantor or of any
      other Obligor (other than actual indefeasible payment in full in cash). With
      respect to any Obligor’s obligations arising as a result of the joint and
      several liability of Obligors hereunder with respect to proceeds of the
      Securities disbursed to or for any of the other Obligors hereunder, such Obligor
      waives, until the obligations shall have been indefeasibly paid in full and
      this
      Indenture shall have been terminated, any right to enforce any right of
      subrogation or any remedy which such Obligor now have or may hereafter have
      against any other Obligor, or any endorser of all or any part of the
      obligations. During the existence of any Event of Default, the Trustee and
      the
      Holders may proceed directly and at once, except as required in this Indenture
      without notice, against any Obligor to collect and recover the full amount,
      or
      any portion of the obligations, without first proceeding against any other
      Obligor or any other Person. Each Obligor consents and agrees that neither
      the
      Trustee nor the Holders shall be under any obligation to marshal any assets
      in
      favor of any Obligor or against or in payment of any or all of the
      obligations.

     

    (c) This
      Indenture shall in all respects be continuing, absolute and unconditional,
      and
      shall remain in full force and effect with respect to each Obligor until all
      obligations shall
      have been indefeasibly fully paid. No compromise, settlement, release or
      discharge of, or indulgence with
      respect to, or failure, neglect or omission to enforce or exercise any right
      against, any one or more of the Obligors shall release or discharge any other
      Obligors.

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      II

     

    SECURITY
      FORMS

     

    SECTION
      2.1. Form
      of Security.

     

    Any
      Security issued hereunder shall be in substantially the following form:

     

    READING
      INTERNATIONAL, INC.

     

    And

     

    READING
      NEW ZEALAND, LIMITED

     

    Junior
      Subordinated Note due 2027

    

      
        	
                No.
                  1

              	
                $51,547,000

              

      

    

     

    Each
      of
      Reading International, Inc., a corporation organized and existing under the
      laws
      of Nevada (hereinafter called the “Company,”
      which
      term includes any successor Person under the Indenture hereinafter referred
      to)
      and Reading New Zealand, Limited, a New Zealand corporation (“Reading
      NZ”
and
      collectively with the Company, the “Obligors”),
      for
      value received, jointly and severally hereby promises to pay to Wells Fargo
      Bank, N.A., not in its individual capacity, but solely as Property Trustee
      of
      Reading International Trust I, a Delaware statutory trust, or registered
      assigns, the principal sum of Fifty One Million Five Hundred and Forty Seven
      Thousand Dollars ($51,547,000) on April 30, 2027. The Obligors further promise
      to pay interest on said principal sum from February 5, 2007, or from the most
      recent Interest Payment Date to which interest has been paid or duly provided
      for, quarterly in arrears on January 30, April 30, July 30, and October 30,
      of
      each year, commencing April 30, 2007, or if any such day is not a Business
      Day,
      on the next succeeding Business Day (and no interest shall accrue in respect
      of
      the amounts whose payment is so delayed for the period from and after such
      Interest Payment Date until such next succeeding Business Day), except that,
      if
      such Business Day falls in the next succeeding calendar year, such payment
      shall
      be made on the immediately preceding Business Day, in each case, with the same
      force and effect as if made on the Interest Payment Date, at a fixed rate equal
      to 9.22% per annum through the Interest Payment Date on April 30, 2012, and
      thereafter at a variable rate, reset quarterly, equal to LIBOR plus 4.00% per
      annum, together with Additional Tax Sums, if any, as provided in Section
      10.5
      of the
      Indenture, until the principal hereof is paid or duly provided for or made
      available for payment; provided,
      further,
      that
      any overdue principal, premium, if any, or Additional Tax Sums and any overdue
      installment of interest shall bear Additional Interest at a fixed rate equal
      to
      9.22% per
      annum
      through the Interest Payment Date on April 30, 2012, and thereafter at a
      variable rate, reset quarterly, equal to LIBOR plus 4.00% per annum (to the
      extent that the payment of such interest shall be legally enforceable),
      compounded quarterly, from the dates such amounts are due until they are paid
      or
      made available for payment, and such interest shall be payable on
      demand.

     

    During
      the No Call Period, the amount of interest payable for any full interest period
      shall be computed on the basis of a three hundred sixty (360)-day year of twelve
      (12) thirty (30)-day months and the amount payable for any partial interest
      period shall be computed on the basis of the actual number of days elapsed
      in a
      three hundred sixty (360)-day year of twelve (12) thirty (30)-day months. Upon
      expiration of the No Call Period, the amount of interest payable for any
      interest period will be computed on the basis of a three hundred sixty (360)-day
      year and the actual number of days elapsed in the relevant interest period.
      The
      interest so payable, and 

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

    punctually
      paid or duly provided for, on any Interest Payment Date shall, as provided
      in
      the Indenture, be paid to the Person in whose name this Security (or one or
      more
      Predecessor Securities) is registered at the close of business on the Regular
      Record Date for such interest installment. Any such interest not so punctually
      paid or duly provided for shall forthwith cease to be payable to the Holder
      on
      such Regular Record Date and may either be paid to the Person in whose name
      this
      Security (or one or more Predecessor Securities) is registered at the close
      of
      business on a Special Record Date for the payment of such Defaulted Interest
      to
      be fixed by the Trustee, notice whereof shall be given to Holders of Securities
      not less than ten (10) days prior to such Special Record Date, or be paid at
      any
      time in any other lawful manner not inconsistent with the requirements of any
      securities exchange on which the Securities may be listed, and upon such notice
      as may be required by such exchange, all as more fully provided in the
      Indenture.

     

    Payment
      of principal of, premium, if any, and interest on this Security shall be made
      in
      such coin or currency of the United States of America as at the time of payment
      is legal tender for payment of public and private debts. Payments of principal,
      premium, if any, and interest due at the Maturity of this Security shall be
      made
      at the Place of Payment upon surrender of such Securities to the Paying Agent,
      and payments of interest shall be made, subject to such surrender where
      applicable, by wire transfer at such place and to such account at a banking
      institution in the United States as may be designated in writing to the Paying
      Agent at least ten (10) Business Days prior to the date for payment by the
      Person entitled thereto unless proper written wire transfer instructions have
      not been received by the relevant record date, in which case such payments
      shall
      be made by check mailed to the address of such Person as such address shall
      appear in the Security Register. Notwithstanding the foregoing, so long as
      the
      Holder of this Security is the Property Trustee, the payment of the principal
      of
      (and premium, if any) and interest (including any overdue installment of
      interest and Additional Tax Sums, if any) on this Security will be made at
      such
      place and to such account as may be designated by the Property
      Trustee.

     

    The
      indebtedness evidenced by this Security is, to the extent provided in the
      Indenture, subordinate and junior in right of payment to the prior payment
      in
      full of all Senior Debt, and this Security is issued subject to the provisions
      of the Indenture with respect thereto. Each Holder of this Security, by
      accepting the same, (a) agrees to and shall be bound by such provisions, (b)
      authorizes and directs the Trustee on his or her behalf to take such actions
      as
      may be necessary or appropriate to effectuate the subordination so provided
      and
      (c) appoints the Trustee his or her attorney-in-fact for any and all such
      purposes. Each Holder hereof, by his or her acceptance hereof, waives all notice
      of the acceptance of the subordination provisions contained herein and in the
      Indenture by each holder of Senior Debt, whether now outstanding or hereafter
      incurred, and waives reliance by each such holder upon said
      provisions.

     

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

     

    [FORM
      OF REVERSE OF SECURITY]

     

    This
      Security is one of a duly authorized issue of securities of the Company and
      Reading NZ (the “Securities”)
      issued
      under the Junior Subordinated Indenture, dated as of February 5, 2007 (the
      “Indenture”),
      among
      the Company, Reading NZ and Wells Fargo Bank, N.A., as Trustee (in such
      capacity, the “Trustee,”
      which
      term includes any successor trustee under the Indenture), to which Indenture
      and
      all indentures supplemental thereto reference is hereby made for a statement
      of
      the respective rights, limitations of rights, duties and immunities thereunder
      of the
      Company, Reading NZ, the Trustee, the holders of Senior Debt, the Holders of
      the
      Securities and the holders of the Preferred Securities, and of the terms upon
      which the Securities are, and are to be, authenticated and
      delivered.

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

     

    All
      terms
      used in this Security that are defined in the Indenture or in the Amended and
      Restated Trust Agreement, dated as of February 5, 2007 (as modified, amended
      or
      supplemented from time to time, the “Trust
      Agreement”),
      relating to the Reading International Trust I (the “Trust”)
      among
      the Company, as Depositor, the Trustees named therein and the Holders from
      time
      to time of the Trust Securities issued pursuant thereto, shall have the meanings
      assigned to them in the Indenture or the Trust Agreement, as the case may
      be.

     

    The
      Obligors may, on any Interest Payment Date, at their option, upon not less
      than
      thirty (30) days’ nor more than sixty (60) days’ written notice to the Holders
      of the Securities (unless a shorter notice period shall be satisfactory to
      the
      Trustee) on or after the No Call Period, and subject to the terms and conditions
      of Article
      XI
      of this
      Indenture, redeem this Security in whole at any time or in part from time to
      time at a Redemption Price equal to one hundred percent (100%) of the principal
      amount hereof, together, in the case of any such redemption, with accrued
      interest, including any Additional Interest, through but excluding the date
      fixed as the Redemption Date.

     

    If
      a
      Change of Control occurs and holders of Preferred Securities holding at least
      25% in aggregate principal amount of the Preferred Securities give written
      notice to the Company (on behalf of itself and Reading NZ) within thirty (30)
      days following the date the Company (on behalf of itself and Reading NZ)
      notifies such holders of Preferred Securities of the Change of Control (such
      30-day period, the “Notice
      Period”),
      of
      their election to cause the redemption or defeasance, as applicable of the
      Securities (a “Change
      of Control Election”),
      the
      Company shall be required (on behalf of itself and Reading NZ), within thirty
      (30) days following the end of the Notice Period to:

     

    (a)
      defease this Security, if the holder thereof is a holder of Electing Securities,
      in accordance with the first sentence of Article XIII of this Indenture if,
      after applying the requirements of Section 11.2 of this Indenture to redeem
      the
      Securities no later than thirty (30) days following the end of the Notice
      Period, the Securities would be redeemed prior to the expiration of the No
      Call
      Period; or

     

    (b)
      redeem this Security, if the holder thereof is a holder of Electing Securities,
      and subject to the terms and conditions of Article XI of this Indenture, at
      a
      Redemption Price equal to one hundred (100%) of the principal amount hereof,
      together, in the case of any such redemption, with accrued interest, including
      any Additional Interest, to but excluding the date fixed as the Redemption
      Date
      if, after applying the requirement of Section 11.2 of the Indenture to redeem
      the Securities no later than thirty (30) days following the end of the Notice
      Period, the Securities would be redeemed on or after the expiration of the
      No
      Call Period. 

     

    In
      addition, upon the occurrence and during the continuation of a Special Event
      during the No Call Period, the Obligors may, at their option, upon not less
      than
      thirty (30) days’ nor more than sixty (60) days’ written notice to the Holders
      of the Securities (unless a shorter notice period shall be satisfactory to
      the
      Trustee), redeem this Security, in whole but not in part, subject to the terms
      and conditions of Article
      XI
      of this
      Indenture at a Redemption Price equal to one hundred seven and one half percent
      (107.5%) of the principal amount hereof, together, in the case of any such
      redemption, with accrued interest, including any Additional Interest, through
      but excluding the date fixed as the Redemption Date.

     

    In
      the
      event of redemption of this Security in part only, a new Security or Securities
      for the unredeemed portion hereof will be issued in the name of the Holder
      hereof upon the cancellation hereof. If less than all the Securities are to
      be
      redeemed, the particular Securities to be redeemed shall be selected not more
      than sixty (60) days prior to the Redemption Date by the Trustee from the
      Outstanding Securities not previously called for redemption, by such method
      as

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

    the
      Trustee shall deem fair and appropriate and which may provide for the selection
      for redemption of a portion of the principal amount of any
      Security.

     

    This
      Indenture permits the Company at any time, upon thirty (30) days’ prior written
      notice to the Trustee, the Holders and the holders of the Preferred Securities,
      to assume in full the obligations of Reading NZ under the Securities, this
      Indenture and the other Operative Documents, and to release Reading NZ
      therefrom, whereupon Reading NZ shall be released from and have no further
      liability or obligation thereunder.

     

    This
      Indenture permits, with certain exceptions as therein provided, the Company,
      Reading NZ and the Trustee at any time to enter into a supplemental indenture
      or
      indentures for the purpose of modifying in any manner the rights and obligations
      of the Company, Reading NZ and of the Holders of the Securities, with the
      consent of the Holders of not less than a majority in principal amount of the
      Outstanding Securities. This Indenture also contains provisions permitting
      Holders of specified percentages in principal amount of the Securities, on
      behalf of the Holders of all Securities, to waive compliance by the Company
      and
      Reading NZ with certain provisions of this Indenture and certain past defaults
      under this Indenture and their consequences. Any such consent or waiver by
      the
      Holder of this Security shall be conclusive and binding upon such Holder and
      upon all future Holders of this Security and of any Security issued upon the
      registration of transfer hereof or in exchange herefor or in lieu hereof,
      whether or not notation of such consent or waiver is made upon this
      Security.

     

    No
      reference herein to the Indenture and no provision of this Security or of the
      Indenture shall alter or impair the obligations of the Company and Reading
      NZ,
      which, subject to the Company’s right to release Reading NZ from its liability
      and obligations under this Security as referred to above, are absolute and
      unconditional, to pay the principal of and any premium, if any, and interest,
      including any Additional Interest (to the extent legally enforceable), on this
      Security at the times, place and rate, and in the coin or currency, herein
      prescribed.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Security is restricted to transfers to “Qualified
      Purchasers” (as such term is defined in the Investment Company Act of 1940, as
      amended,) and is registrable in the Securities Register, upon surrender of
      this
      Security for registration of transfer at the office or agency of the Company
      (on
      behalf of itself and Reading NZ) maintained for such purpose, duly endorsed
      by,
      or accompanied by a written instrument of transfer in form satisfactory to
      the
      Company and the Securities Registrar and duly executed by, the Holder hereof
      or
      such Holder’s attorney duly authorized in writing, and thereupon one or more new
      Securities, of like tenor, of authorized denominations and for the same
      aggregate principal amount, will be issued to the designated transferee or
      transferees.

     

    The
      Securities are issuable only in registered form without coupons in minimum
      denominations of $100,000 and any integral multiple of $1,000 in excess thereof.
      As provided in the Indenture and subject to certain limitations therein set
      forth, Securities are exchangeable for a like aggregate principal amount of
      Securities and of like tenor of a different authorized denomination, as
      requested by the Holder surrendering the same.

     

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

     

    The
      Company (on behalf of itself and Reading NZ), the Trustee and any agent of
      the
      Company or the Trustee may treat the Person in whose name this Security is
      registered as the owner hereof for all purposes, whether or not this Security
      be
      overdue, and neither the Company, Reading NZ the Trustee nor any such agent
      shall be affected by notice to the contrary.

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

     

    The
      Company, Reading NZ and, by its acceptance of this Security or a beneficial
      interest herein, the Holder of, and any Person that acquires a beneficial
      interest in, this Security agree that, for United States federal, state and
      local tax purposes, it is intended that this Security constitute
      indebtedness.

     

    This
      Security shall be construed and enforced in accordance with and governed by
      the
      laws of the State of New York, without reference to its conflict of laws
      provisions (other than Section 5-1401 of the General Obligations
      Law).

     

    IN
      WITNESS WHEREOF, each of the Company and Reading NZ has caused this instrument
      to be duly executed on this 5th day of February, 2007.

    

      
        	 	
                READING
                  INTERNATIONAL, INC.

                 

              
	 	 	 
	 	
                By:

              	 
	 	 	
                Name:
                  

              
	 	 	
                Title:

                 

              
	 	
                READING
                  NEW ZEALAND, LIMITED

                 

              
	 	 	 
	 	
                By:

              	 
	 	 	
                Name:
                  

              
	 	 	
                Title:

                 

              

      

    

     

    SECTION
      2.2. Restricted
      Legend.

     

    (a) Any
      Security issued hereunder shall bear a legend in substantially the following
      form:

     

    “[IF
      THIS SECURITY IS A GLOBAL SECURITY INSERT:
      THIS
      SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
      REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY
      (“DTC”) OR A NOMINEE OF DTC. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES
      REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE
      LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS
      SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY DTC TO A NOMINEE
      OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE
      REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES. 

     

    UNLESS
      THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE ISSUER
      OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY
      ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN 

     

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

    SUCH
      OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
      HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS 1S REQUESTED BY AN
      AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
      FOR
      VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
      OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED IN A
      TRANSACTION EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE “SECURITIES ACT”), AND SUCH SECURITIES, AND ANY INTEREST THEREIN,
      MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
      REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF ANY
      SECURITIES IS HEREBY NOTIFIED THAT THE SELLER OF THE SECURITIES MAY BE RELYING
      ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED
      BY RULE 144A UNDER THE SECURITIES ACT.

     

    THE
      HOLDER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE AGREES FOR THE BENEFIT
      OF THE TRUST AND THE DEPOSITOR THAT (A) SUCH SECURITIES MAY BE OFFERED, RESOLD
      OR OTHERWISE TRANSFERRED ONLY (I) TO THE DEPOSITOR OR THE TRUST OR (II) TO
      A
      PERSON WHOM THE SELLER REASONABLY BELIEVES IS (a) A "QUALIFIED INSTITUTIONAL
      BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT AND (b) A “QUALIFIED
      PURCHASER” (AS DEFINED IN SECTION 2(a)(51) OF THE INVESTMENT COMPANY ACT OF
      1940, AS AMENDED), OR (III) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES
      IS A
“QUALIFIED PURCHASER” (AS DEFINED IN SECTION 2(a)(51) OF THE INVESTMENT COMPANY
      ACT OF 1940, AS AMENDED), AND (B) THE HOLDER WILL NOTIFY ANY PURCHASER OF ANY
      SECURITIES FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A)
      ABOVE.

     

    THE
      SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN
      AGGREGATE PRINCIPAL AMOUNT OF NOT LESS THAN $100,000. TO THE FULLEST EXTENT
      PERMITTED BY LAW, ANY ATTEMPTED TRANSFER OF SECURITIES, OR ANY INTEREST THEREIN,
      IN A BLOCK HAVING AN AGGREGATE PRINCIPAL AMOUNT OF LESS THAN $100,000 AND
      MULTIPLES OF $1,000 IN EXCESS THEREOF SHALL BE DEEMED TO BE VOID AND OF NO
      LEGAL
      EFFECT WHATSOEVER. TO THE FULLEST EXTENT PERMITTED BY LAW, ANY SUCH PURPORTED
      TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH SECURITIES FOR ANY
      PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF PRINCIPAL OF OR INTEREST
      ON SUCH SECURITIES, OR ANY INTEREST THEREIN, AND SUCH PURPORTED TRANSFEREE
      SHALL
      BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH SECURITIES.

     

    THE
      HOLDER OF THIS SECURITY, OR ANY INTEREST THEREIN, BY ITS ACCEPTANCE HEREOF
      OR
      THEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT,
      INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE
      I OF
      THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”),
      OR
      SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)
      (EACH A
“PLAN”),
      OR AN
      ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY 

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

    REASON
      OF
      ANY PLAN’S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING “PLAN ASSETS” OF
      ANY PLAN MAY ACQUIRE OR HOLD THIS SECURITY OR ANY INTEREST THEREIN. ANY
      PURCHASER OR HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED
      TO
      HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT IT IS NOT AN EMPLOYEE
      BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH
      SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON
      BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING
      THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH
      PURCHASE.”

     

    (b) The
      above
      legends shall not be removed from any Security unless there is delivered to
      the
      Company (on behalf of itself and Reading NZ) satisfactory evidence, which may
      include an Opinion of Counsel, as may be reasonably required to ensure that
      any
      future transfers thereof may be made without restriction under or violation
      of
      the provisions of the Securities Act and other applicable law. Upon provision
      of
      such satisfactory evidence, the Company and Reading NZ shall execute and deliver
      to the Trustee, and the Trustee shall deliver, upon receipt of a Company Order
      directing it to do so, a Security that does not bear the legend.

     

    SECTION
      2.3. Form
      of Trustee’s Certificate of Authentication.

     

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

     

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

     

    Dated:

    

      
        	 	
                WELLS
                  FARGO BANK, N.A., not
                  in its individual capacity, but solely as Trustee

                 

              
	 	 	 
	 	
                By:

              	 
	 	 	
                Authorized
                  signatory

                 

              

      

    

     

    SECTION
      2.4. Temporary
      Securities.

     

    (a) Pending
      the preparation of definitive Securities, the Company (on behalf of itself
      and
      Reading NZ) may execute, and upon Company Order the Trustee shall authenticate
      and deliver, temporary Securities that are printed, lithographed, typewritten,
      mimeographed or otherwise produced, in any 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.

     

    (b) If
      temporary Securities are issued, the Company (on behalf of itself and Reading
      NZ) will cause definitive Securities to be prepared without unreasonable delay.
      After the preparation of definitive Securities, the temporary Securities shall
      be exchangeable for definitive Securities upon surrender of the temporary
      Securities at the office or agency of the Company designated for that purpose
      without charge to the Holder. Upon surrender for cancellation of any one or
      more
      temporary Securities, the Company and Reading NZ shall execute and the Trustee
      shall authenticate and deliver in exchange therefor one or more definitive
      Securities of any 

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

    authorized
      denominations having the same Original Issue Date and Stated Maturity and having
      the same terms as such temporary Securities. Until so exchanged, the temporary
      Securities shall in all respects be entitled to the same benefits under this
      Indenture as definitive Securities.

     

    SECTION
      2.5. Definitive
      Securities.

     

    The
      Securities issued on the Original Issue Date shall be in definitive form. The
      definitive Securities shall be printed, lithographed or engraved, or produced
      by
      any combination of these methods, if required by any securities exchange on
      which the Securities may be listed, on a steel engraved border or steel engraved
      borders or may be produced in any other manner permitted by the rules of any
      securities exchange on which the Securities may be listed, all as determined
      by
      the officers executing such Securities, as evidenced by their execution of
      such
      Securities.

     

    ARTICLE
      III

     

    THE
      SECURITIES

     

    SECTION
      3.1. Payment
      of Principal and Interest.

     

    (a) The
      unpaid principal amount of the Securities shall bear interest at a fixed rate
      equal to 9.22% per annum through the Interest Payment Date on April 30, 2012,
      and thereafter at a variable rate, reset quarterly, equal to LIBOR plus 4.00%
      per annum, such interest to accrue from the Original Issue Date or from the
      most
      recent Interest Payment Date to which interest has been paid or duly provided
      for, and any overdue principal, premium, if any, or Additional Tax Sums and
      any
      overdue installment of interest shall bear Additional Interest at the rate
      equal
      to a fixed rate equal to 9.22% per annum through the Interest Payment Date
      on
      April 30, 2012, and thereafter at a variable rate, reset quarterly, equal to
      LIBOR plus 4.00% per annum compounded quarterly from the dates such amounts
      are
      due until they are paid or funds for the payment thereof are made available
      for
      payment.

     

    (b) Interest
      and Additional Interest on any Security that 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, except that interest and any Additional Interest payable on the Stated
      Maturity (or any date of principal repayment upon early maturity) of the
      principal of a Security or on a Redemption Date shall be paid to the Person
      to
      whom principal is paid. The initial payment of interest on any Security that
      is
      issued between a Regular Record Date and the related Interest Payment Date
      shall
      be payable as provided in such Security.

     

    (c) Any
      interest on any Security that is due and payable, but is not timely paid or
      duly
      provided for, on any Interest Payment Date for Securities (herein called
“Defaulted
      Interest”)
      shall
      forthwith cease to be payable to the registered Holder on the relevant Regular
      Record Date by virtue of having been such Holder, and such Defaulted Interest
      may be paid by the Company and Reading NZ, at its election in each case, as
      provided in paragraph (i) or (ii) below:

     

    
      (i) The
        Company and Reading NZ may elect to make payment of any Defaulted Interest
        to
        the Persons in whose names the Securities (or their respective Predecessor
        Securities) are registered at the close of business on a Special Record Date
        for
        the payment of such Defaulted Interest (a “Special
        Record Date”),
        which
        shall be fixed in the following manner. At least thirty (30) days prior to
        the
        date of the proposed payment, the Company (on behalf of itself and Reading
        NZ)
        shall notify the Trustee in 

       

      
        
           

        

        
          -24-

          
            

          

        

        
           

        

      

      

        writing
          of the amount of Defaulted Interest proposed to be paid on each Security
          and the
          date of the proposed payment, and at the same time the Company (on behalf
          of
          itself and Reading NZ) 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.
          Thereupon the Trustee shall fix a Special Record Date for the payment of
          such
          Defaulted Interest, which shall be not more than fifteen (15) days and
          not less
          than ten (10) days prior to the date of the proposed payment and not less
          than
          ten (10) days after the receipt by the Trustee of the notice of the proposed
          payment. The Trustee shall promptly notify the Company (on behalf of itself
          and
          Reading NZ) of such Special Record Date and, in the name and at the expense
          of
          the Company and Reading NZ, 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 a Security at the address of
          such
          Holder as it appears in the Securities Register not less than ten (10)
          days
          prior to such Special Record Date. Notice of the proposed payment of such
          Defaulted Interest and the Special Record Date therefor having been so
          mailed,
          such Defaulted Interest shall be paid to the Persons in whose names the
          Securities (or their respective Predecessor Securities) are registered
          on such
          Special Record Date; or

         

      

    

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

     

    (d) Payments
      of interest on the Securities shall include interest accrued to but excluding
      the respective Interest Payment Dates. During
      the No Call Period, the amount of interest payable for any full interest period
      shall be computed on the basis of a three hundred sixty (360)-day year of twelve
      (12) thirty (30)-day months and the amount payable for any partial interest
      period shall be computed on the basis of the actual number of days elapsed
      in a
      three hundred sixty (360)-day year of twelve (12) thirty (30)-day months. Upon
      expiration of the No Call Period, the amount of interest payable for any
      interest period will be computed on the basis of a three hundred sixty (360)-day
      year and the actual number of days elapsed in the relevant interest
      period.

     

    (e) Payment
      of principal of, premium, if any, and interest on the Securities shall be made
      in such coin or currency of the United States of America as at the time of
      payment is legal tender for payment of public and private debts. Payments of
      principal, premium, if any, and interest due at the Maturity of such Securities
      shall be made at the Place of Payment upon surrender of such Securities to
      the
      Paying Agent and payments of interest shall be made subject to such surrender
      where applicable, by wire transfer at such place and to such account at a
      banking institution in the United States as may be designated in writing to
      the
      Paying Agent at least ten (10) Business Days prior to the date for payment
      by
      the Person entitled thereto unless proper written wire transfer instructions
      have not been received by the relevant record date, in which case such payments
      shall be made by check mailed to the address of such Person as such address
      shall appear in the Security Register. Notwithstanding the foregoing, so long
      as
      the holder of this Security is the Property Trustee, the payment of the
      principal of (and premium, if any)
      and
      interest (including any overdue installment of interest and Additional Tax
      Sums,
      if any) on this Security will be made at such place and to such account as
      may
      be designated by the Property Trustee.

    
      
        
        

      

      
        -25-

        
          

        

      

      
        
        

      

    

     

    (f) The
      parties hereto acknowledge and agree that the holders of the Preferred
      Securities have certain rights to direct the Company and Reading NZ to modify
      the Interest Payment Dates and corresponding Redemption Date and Stated Maturity
      of the Securities or a portion of the Securities pursuant to the Purchase
      Agreement. In the event any such modifications are made to the Securities or
      a
      portion of the Securities, appropriate changes to the form of Security set
      forth
      in Article II
      hereof
      shall be made prior to the issuance and authentication of new or replacement
      Securities. Any such modification of the Interest Payment Date and corresponding
      Redemption Date and Stated Maturity with respect to any Securities or tranche
      of
      Securities shall not require or be subject to the consent of the Trustee. All
      reasonable expenses in connection with such modification shall be paid by the
      holders of the Preferred Securities.

     

    (g) Subject
      to the foregoing provisions of this Section
      3.1,
      each
      Security delivered under this Indenture upon 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, that were carried by such other Security.

     

    SECTION
      3.2. Denominations.

     

    The
      Securities shall be in registered form without coupons and shall be issuable
      in
      minimum denominations of $100,000 and any integral multiple of $1,000 in excess
      thereof.

     

    SECTION
      3.3. Execution,
      Authentication, Delivery and Dating.

     

    (a) At
      any
      time and from time to time after the execution and delivery of this Indenture,
      the Company and Reading NZ may deliver Securities in an aggregate principal
      amount (including all then Outstanding Securities) not in excess of Fifty One
      Million Five Hundred Forty Seven Thousand Dollars ($51,547,000) executed by
      the
      Company and Reading NZ 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. In authenticating such Securities, and accepting the additional
      responsibilities under this Indenture in relation to such Securities, the
      Trustee shall be entitled to receive, and shall be fully protected in relying
      upon:

     

    (i) a
      copy of
      any Board Resolution relating thereto; and

     

    (ii) an
      Opinion of Counsel stating that: (1) such Securities, when authenticated and
      delivered by the Trustee and issued by the Company and Reading NZ in the manner
      and subject to any conditions specified in such Opinion of Counsel, will
      constitute, and the Indenture constitutes, valid and legally binding obligations
      of the Company and Reading NZ, each enforceable in accordance with its terms,
      subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
      moratorium and similar laws of general applicability relating to or affecting
      creditors’ rights and to general equity principles; (2) the Securities have been
      duly authorized and executed by the Company and Reading NZ and have been
      delivered to the Trustee for authentication in accordance with this Indenture;
      (3) the Securities are not required to be registered under the Securities Act;
      and (4) the Indenture is not required to be qualified under the Trust Indenture
      Act.

    (b) The
      Securities shall be executed on behalf of each of the Company and Reading NZ
      by
      its Chairman of the Board, its Vice Chairman of the Board, its Chief Executive
      Officer, its President or one of its Vice Presidents. 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 or Reading NZ shall bind the Company

     

    
      
        
        

      

      
        -26-

        
          

        

      

      
        
        

      

    

     

    and Reading NZ, respectively, notwithstanding that such
      individuals or any of them have ceased to hold such offices prior to the
      authentication and delivery of such Securities or did not hold such offices
      at
      the date of such Securities.

    (c) 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 the manual signature of one of its authorized signatories, and such
      certificate upon any Security shall be conclusive evidence, and the only
      evidence, that such Security has been duly authenticated and delivered
      hereunder. Notwithstanding the foregoing, if any Security shall have been
      authenticated and delivered hereunder but never issued and sold by the Company
      (on behalf of itself and Reading NZ), and the Company (on behalf of itself
      and
      Reading NZ) shall deliver such Security to the Trustee for cancellation as
      provided in Section
      3.8,
      for all
      purposes of this Indenture such Security shall be deemed never to have been
      authenticated and delivered hereunder and shall never be entitled to the
      benefits of this Indenture.

     

    (d) Each
      Security shall be dated the date of its authentication. 

     

    SECTION
      3.4. Global
      Securities.

     

    (a) Upon
      the
      election of the Holder after the Original Issue Date, which election need not
      be
      in writing, the Securities owned by such Holder shall be issued in the form
      of
      one or more Global Securities registered in the name of the Depositary or its
      nominee. Each Global Security issued under this Indenture shall be registered
      in
      the name of the Depositary designated by the Company (on behalf of itself and
      Reading NZ) for such Global Security or a nominee thereof and delivered to
      such
      Depositary or a nominee thereof or custodian therefor, and each such Global
      Security shall constitute a single Security for all purposes of this
      Indenture.

     

    (b) Notwithstanding
      any other provision in this Indenture, no Global Security may be exchanged
      in
      whole or in part for registered Securities, and no transfer of a Global Security
      in whole or in part may be registered, in the name of any Person other than
      the
      Depositary for such Global Security or a nominee thereof unless (i) such
      Depositary advises the Trustee and the Company (on behalf of itself and Reading
      NZ) in writing that such Depositary is no longer willing or able to properly
      discharge its responsibilities as Depositary with respect to such Global
      Security, and no qualified successor is appointed by the Company within ninety
      (90) days of receipt by the Company of such notice, (ii) such Depositary ceases
      to be a clearing agency registered under the Exchange Act and no successor
      is
      appointed by the Company within ninety (90) days after obtaining knowledge
      of
      such event, (iii) the Company executes and delivers to the Trustee a Company
      Order stating that the Company elects to terminate the book-entry system through
      the Depositary or (iv) an Event of Default shall have occurred and be
      continuing. Upon the occurrence of any event specified in clause (i), (ii),
      (iii) or (iv) above, the Trustee shall notify the Depositary and instruct the
      Depositary to notify all owners of beneficial interests in such Global Security
      of the occurrence of such event and of the availability of Securities to such
      owners of beneficial interests requesting the same. The Trustee may conclusively
      rely, and be protected in relying, upon the written identification of the owners
      of beneficial interests furnished by the Depositary, and shall not be liable
      for
      any delay resulting from a delay by the Depositary. Upon the issuance of such
      Securities and the registration in the Securities Register of
      such
      Securities in the names of the Holders of the beneficial interests therein,
      the
      Trustees shall recognize such holders of beneficial interests as Holders.
       

      (c) If
        any
        Global Security is to be exchanged for other Securities or canceled in part,
        or
        if another Security is to be exchanged in whole or in part for a beneficial
        interest in any Global Security, then either (i) such Global Security shall
        be
        so surrendered for exchange or 

    

     

    
      
        
        

      

      
        -27-

        
          

        

      

      
        
        

      

    

    cancellation
      as provided in this Article
      III
      or (ii)
      the principal amount thereof shall be reduced or increased by an amount equal
      to
      (x) the portion thereof to be so exchanged or canceled, or (y) the principal
      amount of such other Security to be so exchanged for a beneficial interest
      therein, as the case may be, by means of an appropriate adjustment made on
      the
      records of the Securities Registrar, whereupon the Trustee, in accordance with
      the Applicable Depositary Procedures, shall instruct the Depositary or its
      authorized representative to make a corresponding adjustment to its records.
      Upon any such surrender or adjustment of a Global Security by the Depositary,
      accompanied by registration instructions, the Company shall execute and the
      Trustee shall authenticate and deliver any Securities issuable in exchange
      for
      such Global Security (or any portion thereof) in accordance with the
      instructions of the Depositary. The Trustee shall not be liable for any delay
      in
      delivery of such instructions and may conclusively rely on, and shall be fully
      protected in relying on, such instructions.

     

    (d) Every
      Security authenticated and delivered upon registration of transfer of, or in
      exchange for or in lieu of, a Global Security or any portion thereof shall
      be
      authenticated and delivered in the form of, and shall be, a Global Security,
      unless such Security is registered in the name of a Person other than the
      Depositary for such Global Security or a nominee thereof.

     

    (e) Securities
      distributed to holders of Book-Entry Preferred Securities (as defined in the
      applicable Trust Agreement) upon the dissolution of the Trust shall be
      distributed in the form of one or more Global Securities registered in the
      name
      of a Depositary or its nominee, and deposited with the Securities Registrar,
      as
      custodian for such Depositary, or with such Depositary, for credit by the
      Depositary to the respective accounts of the beneficial owners of the Securities
      represented thereby (or such other accounts as they may direct). Securities
      distributed to holders of Preferred Securities other than Book-Entry Preferred
      Securities upon the dissolution of the Trust shall not be issued in the form
      of
      a Global Security or any other form intended to facilitate book-entry trading
      in
      beneficial interests in such Securities.

     

    (f) The
      Depositary or its nominee, as the registered owner of a Global Security, shall
      be the Holder of such Global Security for all purposes under this Indenture
      and
      the Securities, and owners of beneficial interests in a Global Security shall
      hold such interests pursuant to the Applicable Depositary Procedures.
      Accordingly, any such owner’s beneficial interest in a Global Security shall be
      shown only on, and the transfer of such interest shall be effected only through,
      records maintained by the Depositary or its nominee or its Depositary
      Participants. The Securities Registrar and the Trustee shall be entitled to
      deal
      with the Depositary for all purposes of this Indenture relating to a Global
      Security (including the payment of principal and interest thereon and the giving
      of instructions or directions by owners of beneficial interests therein and
      the
      giving of notices) as the sole Holder of the Security and shall have no
      obligations to the owners of beneficial interests therein. Neither the Trustee
      nor the Securities Registrar shall have any liability in respect of any
      transfers effected by the Depositary.

     

    (g) The
      rights of owners of beneficial interests in a Global Security shall be exercised
      only through the Depositary and shall be limited to those established by law
      and
      agreements between such owners and the Depositary and/or its Depositary
      Participants.

     

    (h) No
      holder
      of any beneficial interest in any Global Security held on its behalf by a
      Depositary shall have any rights under this Indenture with respect to such
      Global Security, and such Depositary may be treated by the Company, Reading
      NZ,
      the Trustee and any agent of the Company Reading NZ, or the Trustee as the
      owner
      of such Global Security for all purposes whatsoever. None of the Company,
      Reading NZ, the Trustee nor any agent of the Company, Reading NZ, 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. Notwithstanding the foregoing, nothing herein
      shall prevent the Company, Reading NZ, the 

     

    
      
        
        

      

      
        -28-

        
          

        

      

      
        
        

      

    

    Trustee
      or any agent of the Company, Reading NZ, or the Trustee from giving effect
      to
      any written certification, proxy or other authorization furnished by a
      Depositary or impair, as between a Depositary and such holders of beneficial
      interests, the operation of customary practices governing the exercise of the
      rights of the Depositary (or its nominee) as Holder of any
      Security.

     

    SECTION
      3.5. Registration,
      Transfer and Exchange Generally.

     

    (a) The
      Trustee shall cause to be kept at the Corporate Trust Office a register (the
      “Securities
      Register”)
      in
      which the registrar and transfer agent with respect to the Securities (the
      “Securities
      Registrar”),
      subject to such reasonable regulations as it may prescribe, shall provide for
      the registration of Securities and of transfers and exchanges of Securities.
      The
      Trustee shall at all times also be the Securities Registrar. The provisions
      of
Article
      VI
      shall
      apply to the Trustee in its role as Securities Registrar.

     

    (b) Subject
      to compliance with Section
      2.2(b),
      upon
      surrender for registration of transfer of any Security at the offices or
      agencies of the Company designated for that purpose the Company and Reading
      NZ
      shall execute, and the Trustee shall authenticate and deliver, in the name
      of
      the designated transferee or transferees, one or more new Securities of any
      authorized denominations of like tenor and aggregate principal
      amount.

     

    (c) At
      the
      option of the Holder, Securities may be exchanged for other Securities of any
      authorized denominations, of like tenor and aggregate principal amount, upon
      surrender of the Securities to be exchanged at such office or agency. Whenever
      any Securities are so surrendered for exchange, the Company and Reading NZ
      shall
      execute, and the Trustee shall authenticate and deliver, the Securities that
      the
      Holder making the exchange is entitled to receive.

     

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

     

    (e) Every
      Security presented or surrendered for transfer or exchange shall (if so required
      by the Company (on behalf of itself and Reading NZ) or the Trustee) be duly
      endorsed, or be accompanied by a written instrument of transfer in form
      satisfactory to the Company and the Securities Registrar, duly executed by
      the
      Holder thereof or such Holder’s attorney duly authorized in
      writing.

     

    (f) No
      service charge shall be made to a Holder for any 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
      transfer or exchange of Securities.

     

    (g) Neither
      the Company nor the Trustee shall be required pursuant to the provisions of
      this
Section
      3.5(g):
      (i) to
      issue, register the transfer of or exchange any Security during a period
      beginning at the opening of business fifteen (15) days before the day of
      selection for redemption of Securities pursuant to Article
      XI
      and
      ending at the close of business on the day of mailing
      of the notice of redemption or (ii) to register the transfer of or exchange
      any
      Security so selected for redemption in whole or in part, except, in the case
      of
      any such Security to be redeemed in part, any portion thereof not to be
      redeemed.
       

      (h) The
        Company shall designate an office or offices or agency or agencies where
        Securities may be surrendered for registration or transfer or exchange. The
        Company initially 

    

    
      
        
        

      

      
        -29-

        
          

        

      

      
        
        

      

    

    designates
      the Corporate Trust Office as its office and agency for such purposes. The
      Company shall give prompt written notice to the Trustee and to the Holders
      of
      any change in the location of any such office or agency.

     

    (i) The
      Securities may only be transferred to a “Qualified Purchaser” as such term is
      defined in Section 2(a)(51) of the Investment Company Act.

     

    (j) Neither
      the Trustee nor the Securities Registrar shall be responsible for ascertaining
      whether any transfer hereunder complies with the registration provisions of
      or
      any exemptions from the Securities Act, applicable state securities laws or
      the
      applicable laws of any other jurisdiction, ERISA, the United States Internal
      Revenue Code of 1986, as amended, or the Investment Company Act; provided,
      that
      if a certificate is specifically required by the express terms of this Section
      3.5 to be delivered to the Trustee or the Securities Registrar by a Holder
      or
      transferee of a Security, the Trustee and the Securities Registrar shall be
      under a duty to receive and examine the same to determine whether or not the
      certificate substantially conforms on its face to the requirements of this
      Indenture and shall promptly notify the party delivering the same if such
      certificate does not comply with such terms.

     

    SECTION
      3.6. Mutilated,
      Destroyed, Lost and Stolen Securities.

     

    (a) If
      any
      mutilated Security is surrendered to the Trustee together with such security
      or
      indemnity as may be required by the Trustee to save the Company and the Trustee
      harmless, the Company and Reading NZ shall execute and the Trustee shall
      authenticate and deliver in exchange therefor a new Security of like tenor
      and
      aggregate principal amount and bearing a number not contemporaneously
      outstanding.

     

    (b) If
      there
      shall be delivered to the Trustee (i) evidence to its satisfaction of the
      destruction, loss or theft of any Security and (ii) such security or indemnity
      as may be required by it to save each of the Company, Reading NZ and the Trustee
      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 and Reading NZ shall execute and upon its written request
      the Trustee shall authenticate and deliver, in lieu of any such destroyed,
      lost
      or stolen Security, a new Security of like tenor and aggregate principal amount
      as such destroyed, lost or stolen Security, and bearing a number not
      contemporaneously outstanding.

     

    (c) If
      any
      such mutilated, destroyed, lost or stolen Security has become or is about to
      become due and payable, the Company and Reading NZ in their discretion may,
      instead of issuing a new Security, pay such Security.

     

    (d) Upon
      the
      issuance of any new Security under this Section
      3.6,
      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.

     

    (e) Every
      new
      Security issued pursuant to this Section
      3.6
      in lieu
      of any mutilated, destroyed, lost or stolen Security shall constitute an
      original additional contractual obligation of the Company and Reading NZ,
      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
      duly issued hereunder.
       

      (f) The
        provisions of this Section
        3.6
        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.

    

    
      
        
        

      

      
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    SECTION
      3.7. Persons
      Deemed Owners.

     

    The
      Company, Reading NZ, the Trustee and any agent of the Company, Reading NZ,
      or
      the Trustee shall treat the Person in whose name any Security is registered
      as
      the owner of such Security for the purpose of receiving payment of principal
      of
      and any interest on such Security and for all other purposes whatsoever, and
      neither the Company, Reading NZ, the Trustee nor any agent of the Company,
      Reading NZ or the Trustee shall be affected by notice to the
      contrary.

     

    SECTION
      3.8. Cancellation.

     

    All
      Securities surrendered for payment, redemption, transfer or exchange shall,
      if
      surrendered to any Person other than the Trustee, be delivered to the Trustee,
      and any such Securities and Securities surrendered directly to the Trustee
      for
      any such purpose shall be promptly canceled by it. The Company (on behalf of
      itself and Reading NZ) may at any time deliver to the Trustee for cancellation
      any Securities previously authenticated and delivered hereunder that the Company
      may have acquired in any manner whatsoever, and all Securities so delivered
      shall be promptly canceled by the Trustee. No Securities shall be authenticated
      in lieu of or in exchange for any Securities canceled as provided in this
Section
      3.8,
      except
      as expressly permitted by this Indenture. All canceled Securities shall be
      retained or disposed of by the Trustee in accordance with its customary
      practices and the Trustee shall deliver to the Company a certificate of such
      disposition.

     

    SECTION
      3.9. Reserved.

     

    SECTION
      3.10. Reserved.

     

    SECTION
      3.11. Agreed
      Tax Treatment.

     

    Each
      Security issued hereunder shall provide that the Company and Reading NZ and,
      by
      its acceptance or acquisition of a Security or a beneficial interest therein,
      the Holder of, and any Person that acquires a direct or indirect beneficial
      interest in, such Security, intend and agree to treat such Security as
      indebtedness of the Company and Reading NZ for United States federal, state
      and
      local tax purposes and to treat the Preferred Securities (including but not
      limited to all payments and proceeds with respect to the Preferred Securities)
      as an undivided beneficial ownership interest in the Securities (and any other
      Trust property) (and payments and proceeds therefrom, respectively) for United
      States federal, state and local tax purposes. The provisions of this Indenture
      shall be interpreted to further this intention and agreement of the
      parties.

     

    SECTION
      3.12. CUSIP
      Numbers.

     

    The
      Company and Reading NZ in issuing the Securities may use “CUSIP” numbers (if
      then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in
      notices of redemption and other similar or related materials as a convenience
      to
      Holders; provided,
      that any
      such notice or other materials may state that no representation is made as
      to
      the correctness of such numbers either as printed on the Securities or as
      contained in any notice of redemption or other
      materials and that reliance may be placed only on the other identification
      numbers printed on the Securities, and any such redemption shall not be affected
      by any defect in or omission of such numbers.

     

    
      
        
        

      

      
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    ARTICLE
      IV

     

    SATISFACTION
      AND DISCHARGE

     

    SECTION
      4.1. Satisfaction
      and Discharge of Indenture.

     

    This
      Indenture shall, upon Company Request, cease to be of further effect (except
      as
      to any surviving rights of registration of transfer or exchange of Securities
      herein expressly provided for and as otherwise provided in this Section
      4.1)
      and the
      Trustee, on demand of and at the expense of the Company and Reading NZ, shall
      execute proper instruments acknowledging satisfaction and discharge of this
      Indenture, when

     

    (a) either

     

    (i) all
      Securities theretofore authenticated and delivered (other than (A) Securities
      that have been mutilated, destroyed, lost or stolen and that have been replaced
      or paid as provided in Section
      3.6
      and (B)
      Securities for whose payment money has theretofore been deposited in trust
      or
      segregated and held in trust by the Company (on behalf of itself and Reading
      NZ)
      and thereafter repaid to the Company (on behalf of itself and Reading NZ) or
      discharged from such trust as provided in Section
      10.2)
      have
      been delivered to the Trustee for cancellation; or

     

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

     

    (A) have
      become due and payable, or

     

    (B) will
      become due and payable at their Stated Maturity within one year of the date
      of
      deposit, or

     

    (C) 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 Reading NZ,

     

    and
      the
      Company (on behalf of itself and Reading NZ), in the case of subclause (ii)(A),
      (B) or (C) above, has deposited or caused to be deposited with the Trustee
      as
      trust funds in trust for such purpose (x) an amount in the currency or
      currencies in which the Securities are payable, (y) Government Obligations
      which
      through the scheduled payment of principal and interest in respect thereof
      in
      accordance with their terms will provide, not later than the due date of any
      payment, money in an amount or (z) a combination thereof, in each case
      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 any
      premium and interest (including any Additional Interest) to the date of such
      deposit (in the case of Securities that have become due and payable) or to
      the
      Stated Maturity (or any date of principal repayment upon early maturity) or
      Redemption Date, as the case may be;

    

      (b) the
        Company and Reading NZ have paid or caused to be paid all other sums payable
        hereunder by the Company and Reading NZ; and

      

        
          
            
            

          

          
            -32-

            
              

            

          

          
            
            

          

        

      

    

     

    (c) the
      Company (on behalf of itself and Reading NZ) 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
      and Reading NZ to the Trustee under Section
      6.6,
      the
      obligations of the Company and Reading NZ to any Authenticating Agent under
      Section
      6.11
      and, if
      money shall have been deposited with the Trustee pursuant to subclause (a)(ii)
      of this Section
      4.1,
      the
      obligations of the Trustee under Section
      4.2
      and
Section
      10.2(e)
      shall
      survive.

     

    SECTION
      4.2. Application
      of Trust Money.

     

    Subject
      to the provisions of Section
      10.2(e),
      all
      money deposited with the Trustee pursuant to Section
      4.1
      or
Article
      XIII
      shall be
      held in trust and applied by the Trustee, in accordance with the provisions
      of
      the Securities and this Indenture, to the payment in accordance with
Section
      3.1,
      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 any premium and interest (including any Additional Interest)
      for the payment of which such money or obligations have been deposited with
      or
      received by the Trustee. Moneys held by the Trustee under this Section
      4.2
      shall
      not be subject to the claims of holders of Senior Debt under Article
      XII.

     

    ARTICLE
      V

     

    REMEDIES

     

    SECTION
      5.1. Events
      of Default.

     

    “Event
      of Default”
      means,
      wherever used herein with respect to the Securities, any one of the following
      events (whatever the reason for such Event of Default and whether it shall
      be
      voluntary or involuntary or be effected by operation of law or pursuant to
      any
      judgment, decree or order of any court or any order, rule or regulation of
      any
      administrative or governmental body):

     

    (a) default
      in the payment of any interest upon any Security, including any Additional
      Interest in respect thereof, when it becomes due and payable, and continuance
      of
      such default for a period of thirty (30) days; or

     

    (b) default
      in the payment of the principal of or any premium on any Security at its
      Maturity; or

     

    (c) default
      in the performance, or breach, of any covenant or warranty of the Company or
      Reading NZ in this Indenture and continuance of such default or breach for
      a
      period of thirty (30) days after there has been given, by registered or
      certified mail, to the Company (on behalf of itself and Reading NZ) by the
      Trustee or to the Company and the Trustee by the Holders of at least twenty
      five
      percent (25%) in aggregate principal amount of the Outstanding Securities a
      written notice specifying such default or breach and requiring it to be remedied
      and stating that such notice is a “Notice of Default” hereunder;

    

      (d) the
        entry
        by a court having jurisdiction in the premises of a decree or order adjudging
        the Company or Reading NZ a bankrupt or insolvent, or approving as properly
        filed a petition seeking reorganization, arrangement, adjustment or composition
        of or in respect of the 

    

    
      
        
        

      

      
        -33-

        
          

        

      

      
        
        

      

    

     

    Company or Reading NZ under any applicable federal or state
      bankruptcy, insolvency, reorganization or other similar law, or appointing
      a
      custodian, receiver, liquidator, assignee, trustee, sequestrator or other
      similar official of the Company or Reading NZ 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 sixty (60) consecutive days; provided
      that it
      shall not be an Event of Default hereunder if a bankruptcy event occurs with
      respect to Reading NZ and the Company promptly exercises its right under
Section
      1.8(b)
      hereof;

    (e) the
      institution by the Company or Reading NZ of proceedings to be adjudicated a
      bankrupt or insolvent, or the consent by the Company or Reading NZ to the
      institution of bankruptcy or insolvency proceedings against it, or the filing
      by
      the Company or Reading NZ of a petition or answer or consent seeking
      reorganization or relief under any applicable federal or state bankruptcy,
      insolvency, reorganization or other similar 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 other
      similar official of the Company or Reading NZ 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 be adjudicated a bankrupt or insolvent,
      or the taking of corporate action by the Company or Reading NZ in furtherance
      of
      any such action; provided
      that it
      shall not be an Event of Default hereunder if a bankruptcy event occurs with
      respect to Reading NZ and the Company promptly exercises its right under
Section
      1.8(b)
      hereof;
      or

     

    (f) the
      Trust
      shall have voluntarily or involuntarily liquidated, dissolved, wound-up its
      business or otherwise terminated its existence, except in connection with (1)
      the distribution of the Securities to holders of the Preferred Securities in
      liquidation of their interests in the Trust, (2) the redemption of all of the
      outstanding Preferred Securities or (3) certain mergers, consolidations or
      amalgamations, each as and to the extent permitted by the Trust
      Agreement.

     

    SECTION
      5.2. Acceleration
      of Maturity; Rescission and Annulment.

     

    (a) If
      an
      Event of Default occurs and is continuing, then and in every such case the
      Trustee or the Holders of not less than twenty five percent (25%) in aggregate
      principal amount of the Outstanding Securities may declare the principal amount
      of all the Securities to be due and payable immediately, by a notice in writing
      to the Company (on behalf of itself and Reading NZ) (and to the Trustee if
      given
      by Holders), provided, that if, upon an Event of Default, the Trustee or the
      Holders of not less than twenty five percent (25%) in principal amount of the
      Outstanding Securities fail to declare the principal of all the Outstanding
      Securities to be immediately due and payable, the holders of at least twenty
      five percent (25%) in aggregate Liquidation Amount of the Preferred Securities
      then outstanding shall have the right to make such declaration by a notice
      in
      writing to the Property Trustee, the Company (on behalf of itself and Reading
      NZ) and the Trustee; and upon any such declaration the principal amount of
      and
      the accrued interest (including any Additional Interest) on all the Securities
      shall become immediately due and payable.

     

    (b) At
      any
      time after such a declaration of acceleration with respect to Securities has
      been made and before a judgment or decree for payment of the money due has
      been
      obtained by the Trustee as hereinafter provided in this Article
      V,
      the
      Holders of a majority in aggregate principal amount of the Outstanding
      Securities, by written notice to the Trustee, or the holders of a majority
      in
      aggregate Liquidation Amount of the Preferred Securities, by written notice
      to
      the Property
      Trustee, the Company (on behalf of itself and Reading NZ) and the Trustee,
      may
      rescind and annul such declaration and its consequences
      if:

    
      
        
        

      

      
        -34-

        
          

        

      

      
        
        

      

    

     

    (i) the
      Company and Reading NZ have paid or deposited with the Trustee a sum sufficient
      to pay:

     

    (A) all
      overdue installments of interest on all Securities,

     

    (B) any
      accrued Additional Interest on all Securities,

     

    (C) the
      principal of and any premium on any Securities that have become due otherwise
      than by such declaration of acceleration and interest (including any Additional
      Interest) thereon at the rate borne by the Securities, and

     

    (D) all
      sums
      paid or advanced by the Trustee hereunder and the reasonable compensation,
      expenses, disbursements and advances of the Trustee, the Property Trustee and
      their agents and counsel; and

     

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

     

    provided,
      that if
      the Holders of such Securities fail to annul such declaration and waive such
      default, the holders of not less than a majority in aggregate Liquidation Amount
      of the Preferred Securities then outstanding shall also have the right to
      rescind and annul such declaration and its consequences by written notice to
      the
      Property Trustee, the Company (on behalf of itself and Reading NZ) and the
      Trustee, subject to the satisfaction of the conditions set forth in paragraph
      (b) of this Section
      5.2.
      No such
      rescission shall affect any subsequent default or impair any right consequent
      thereon.

     

    SECTION
      5.3. Collection
      of Indebtedness and Suits for Enforcement by Trustee.

     

    (a) Each
      of
      the Company and Reading NZ covenants that if:

     

    (i)
      default is made in the payment of any installment of interest (including any
      Additional Interest) on any Security when such interest becomes due and payable
      and such default continues for a period of thirty (30) days, or

     

    (ii) default
      is made in the payment of the principal of and any premium on any Security
      at
      the Maturity thereof,

     

    then
      the
      Company and Reading NZ will, upon demand of the Trustee, pay to the Trustee,
      for
      the benefit of the Holders of such Securities, the whole amount then due and
      payable on such Securities for principal and any premium and interest (including
      any Additional Interest) and, in addition thereto, all amounts owing the Trustee
      under Section
      6.6.

     

    (b) If
      the
      Company and Reading NZ fail to pay such amounts forthwith upon such demand,
      the
      Trustee, in its own name and as trustee of an express trust, at the expense
      of
      the Company and Reading NZ, may institute a judicial proceeding for the
      collection of the sums so due and unpaid, and may prosecute such proceeding
      to
      judgment or final decree, and may enforce the same against the Company, Reading
      NZ 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, Reading NZ or any other obligor upon the Securities,
      wherever situated.

    
      
        
        

      

      
        -35-

        
          

        

      

      
        
        

      

    

     

    (c) If
      an
      Event of Default with respect to Securities 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 by such appropriate judicial proceedings
      as
      the Trustee shall deem most effectual to protect and enforce any such rights,
      whether for the specific enforcement of any covenant or agreement in this
      Indenture or in aid of the exercise of any power granted herein, or to enforce
      any other proper remedy.

     

    SECTION
      5.4. Trustee
      May File Proofs of Claim.

     

    In
      case
      of any receivership, insolvency, liquidation, bankruptcy, reorganization,
      arrangement, adjustment, composition or similar judicial proceeding relative
      to
      the Company or Reading NZ (or any other obligor upon the Securities), its
      property or its creditors, the Trustee shall be entitled and empowered, by
      intervention in such proceeding or otherwise, to take any and all actions
      authorized hereunder in order to have claims of the Holders and the Trustee
      allowed in any such proceeding. In particular, the Trustee shall be authorized
      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 first 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 owing
      the
      Trustee, any predecessor Trustee and other Persons under Section
      6.6.

     

    SECTION
      5.5. Trustee
      May Enforce Claim 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, subject to
      Article
      XII
      and
      after provision for the payment of all the amounts owing the Trustee, any
      predecessor Trustee and other Persons under Section
      6.6,
      be for
      the ratable benefit of the Holders of the Securities in respect of which such
      judgment has been recovered.

     

    SECTION
      5.6. Application
      of Money Collected.

     

    Any
      money
      or property collected or to be applied by the Trustee with respect to the
      Securities pursuant to this Article
      V
      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 or property on account of principal
      or
      any premium or interest (including any Additional 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, any predecessor Trustee and other
      Persons under Section
      6.6;

     

    SECOND:
      To the payment of all Senior Debt of the Company if and to the extent required
      by Article
      XII;

    

      THIRD:
        Subject to Article
        XII,
        to the
        payment of the amounts then due and unpaid upon the Securities for principal
        and
        any premium and interest (including any Additional Interest) in respect of
        which
        or for the benefit of which such money has been collected, ratably, without
        

      

        
          
            
            

          

          
            -36-

            
              

            

          

          
            
            

          

        

      

    

     

    preference or priority of any kind, according to the amounts
      due and payable on the Securities for principal and any premium and interest
      (including any Additional Interest), respectively; and

    FOURTH:
      The balance, if any, to the Person or Persons entitled thereto.

     

    SECTION
      5.7. Limitation
      on Suits.

     

    Subject
      to Section
      5.8,
      no
      Holder of any Securities shall have any right to institute any proceeding,
      judicial or otherwise, with respect to this Indenture or for the appointment
      of
      a custodian, receiver, assignee, trustee, liquidator, sequestrator (or other
      similar official) or for any other remedy hereunder, unless:

     

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

     

    (b) the
      Holders of not less than a majority in aggregate principal amount of the
      Outstanding Securities 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;

     

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

     

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

     

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

     

    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 itself of, any provision
      of
      this Indenture to affect, disturb or prejudice the rights of any other Holders
      of Securities, 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
      5.8. Unconditional
      Right of Holders to Receive Principal, Premium, if any, and Interest; Direct
      Action by Holders of Preferred Securities.

     

    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 any premium on such Security at its Maturity and payment of interest
      (including any Additional Interest) on such Security when due and payable and
      to
      institute suit for the enforcement of any such payment, and such right shall
      not
      be impaired without the consent of such Holder. Any registered holder of the
      Preferred Securities shall have the right, upon the occurrence of an Event
      of
      Default described in Section
      5.1(a)
      or
Section
      5.1(b),
      to
      institute a suit directly against the Company or Reading NZ for enforcement
      of
      payment to such holder of principal of and any premium and interest (including
      any Additional Interest) on the Securities having a principal amount equal
      to
      the aggregate Liquidation Amount of the Preferred Securities held by such
      holder.

     

    SECTION
      5.9.  Restoration of Rights and Remedies.

    
      
        
        

      

      
        -37-

        
          

        

      

      
        
        

      

    

     

    If
      the
      Trustee, any Holder or any holder of Preferred Securities 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, such Holder or such holder of Preferred
      Securities, then and in every such case the Company, Reading NZ, the Trustee,
      such Holders and such holder of Preferred Securities shall, subject to any
      determination in such proceeding, be restored severally and respectively to
      their former positions hereunder, and thereafter all rights and remedies of
      the
      Trustee, such Holder and such holder of Preferred Securities shall continue
      as
      though no such proceeding had been instituted.

     

    SECTION
      5.10. Rights
      and Remedies Cumulative.

     

    Except
      as
      otherwise provided in Section
      3.6(f),
      no
      right or remedy herein conferred upon or reserved to the Trustee or the Holders
      is intended to be exclusive of any other right or remedy, and every right and
      remedy shall, to the extent permitted by law, be cumulative and in addition
      to
      every other right and remedy given hereunder or now 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, any Holder of any Securities or any holder of any
      Preferred Security to exercise any right or remedy accruing upon any Event
      of
      Default shall impair any such right or remedy or constitute a waiver of any
      such
      Event of Default or an acquiescence therein. Every right and remedy given by
      this Article
      V
      or by
      law to the Trustee or to the Holders and the right and remedy given to the
      holders of Preferred Securities by Section
      5.8
      may be
      exercised from time to time, and as often as may be deemed expedient, by the
      Trustee, the Holders or the holders of Preferred Securities, as the case may
      be.

     

    SECTION
      5.12. Control
      by Holders.

     

    The
      Holders of not less than a majority in aggregate principal amount of the
      Outstanding Securities (or, as the case may be, the holders of a majority in
      aggregate Liquidation Amount of Preferred Securities) 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; provided,
      that:

     

    (a) such
      direction shall not be in conflict with any rule of law or with this
      Indenture,

     

    (b) the
      Trustee may take any other action deemed proper by the Trustee that is not
      inconsistent with such direction, and

     

    (c) subject
      to the provisions of Section
      6.2,
      the
      Trustee shall have the right to decline to follow such direction if a
      Responsible Officer or Officers of the Trustee shall, in good faith, reasonably
      determine that the proceeding so directed would be unjustly prejudicial to
      the
      Holders not joining in any such direction or would involve the Trustee in
      personal liability.

     

    SECTION
      5.13. Waiver
      of Past Defaults.

     

    (a) The
      Holders of not less than a majority in aggregate principal amount of the
      Outstanding Securities or the holders of not less than a majority in aggregate
      Liquidation

      Amount
        of
        the Preferred Securities may waive any past Event of Default hereunder and
        its
        consequences except an Event of Default:

    

    
      
        
        

      

      
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    (i) in
      the
      payment of the principal of or any premium or interest (including any Additional
      Interest) on any Outstanding Security (unless such Event of Default has been
      cured and the Company and Reading NZ have paid to or deposited with the Trustee
      a sum sufficient to pay all installments of interest (including any Additional
      Interest) due and past due and all principal of and any premium on all
      Securities due otherwise than by acceleration), or

     

    (ii)
      in
      respect of a covenant or provision hereof that under Article
      IX
      cannot
      be modified or amended without the consent of each Holder of any Outstanding
      Security.

     

    (b) Any
      such
      waiver shall be deemed to be on behalf of the Holders of all the Outstanding
      Securities or, in the case of a waiver by holders of Preferred Securities issued
      by such Trust, by all holders of Preferred Securities.

     

    (c) Upon
      any
      such waiver, such Event of 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 Event
      of
      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 or
      her
      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 or
      omitted by it as Trustee, the filing by any party litigant in such suit of
      an
      undertaking to pay the costs of such suit, and that such court may in its
      discretion assess reasonable costs, including reasonable attorneys’ fees and
      expenses, against any party litigant in such suit, having due regard to the
      merits and good faith of the claims or defenses made by such party litigant;
      but
      the provisions of this Section
      5.14
      shall
      not apply to any suit instituted by the Trustee, to any suit instituted by
      any
      Holder, or group of Holders, holding in the aggregate more than ten percent
      (10%) in aggregate principal amount of the Outstanding Securities, or to any
      suit instituted by any Holder for the enforcement of the payment of the
      principal of or any premium on the Security after the Stated Maturity or any
      interest (including any Additional Interest) on any Security after it is due
      and
      payable.

     

    SECTION
      5.15. Waiver
      of Usury, Stay or Extension Laws.

     

    Each
      of
      the Company and Reading NZ 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 usury, 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 each of the Company and
      Reading NZ (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
        6.1. Corporate
        Trustee Required.

       

    

    
      
        
        

      

      
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    There
      shall at all times be a Trustee hereunder with respect to the Securities. The
      Trustee shall be a corporation or national banking organization organized and
      doing business under the laws of the United States or of any state thereof,
      authorized to exercise corporate trust powers, having, or having a parent that
      has, a combined capital and surplus of at least $50,000,000, subject to
      supervision or examination by federal or state authority and having an office
      within the United States. If such entity publishes reports of condition at
      least
      annually, pursuant to law or to the requirements of such supervising or
      examining authority, then, for the purposes of this Section
      6.1,
      the
      combined capital and surplus of such entity 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
      6.1,
      it
      shall resign immediately in the manner and with the effect hereinafter specified
      in this Article
      VI.

     

    SECTION
      6.2. Certain
      Duties and Responsibilities. 

     

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

     

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

     

    (ii) in
      the
      absence of bad faith on its part, the Trustee may conclusively rely, as to
      the
      truth of the statements and the correctness of the opinions expressed therein,
      upon certificates or opinions furnished to the Trustee and conforming to the
      requirements of this Indenture; provided,
      that in
      the case of any such certificates or opinions that 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 substantially
      conform on their face to the requirements of this Indenture.

     

    (b) If
      an
      Event of Default known to the Trustee has occurred and is continuing, the
      Trustee shall, prior to the receipt of directions, if any, from the Holders
      of
      at least a majority in aggregate principal amount of the Outstanding Securities
      (or, if applicable, from the holders of at least a majority in aggregate
      Liquidation Amount of Preferred Securities), exercise such of the rights and
      powers vested in it by this Indenture, and use the same degree of care and
      skill
      in its exercise, as a prudent person would exercise or use under the
      circumstances in the conduct of such person’s own affairs.

     

    (c) Notwithstanding
      the foregoing, 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. 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
      6.2.
      To the
      extent that, at law or in equity, the Trustee has duties and liabilities
      relating to the Holders, the Trustee shall not be liable to any Holder or any
      holder of Preferred Securities for the Trustee’s good faith reliance on the
      provisions of this Indenture. The provisions of this Indenture, to the extent
      that they restrict the duties and liabilities of the Trustee otherwise existing
      at law or in equity,
      are agreed by the Company, Reading NZ and the Holders and the holders of
      Preferred Securities to replace such other duties and liabilities of the
      Trustee.
       

      (d) No
        provisions of this Indenture shall be construed to relieve the Trustee from
        liability with respect to matters that are within the authority of the Trustee
        under this Indenture for its own negligent action, negligent failure to act
        or
        willful misconduct, except that:

    

    
      
        
        

      

      
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    (i) the
      Trustee shall not be liable for any error or judgment made in good faith by
      an
      authorized officer of the Trustee, unless it shall be proved that the Trustee
      was negligent in ascertaining the pertinent facts;

     

    (ii) 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
      at
      least a majority in aggregate principal amount of the Outstanding Securities
      (or, as the case may be, the holders of a majority in aggregate Liquidation
      Amount of Preferred Securities) relating to the time, method and place of
      conducting any proceeding for any remedy available to the Trustee under this
      Indenture; and

     

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

     

    (e) If
      at any
      time the Trustee hereunder is not the same Person as the Property Trustee under
      the Trust Agreement:

     

    (i) whenever
      a reference is made herein to the dissolution, termination or liquidation of
      the
      Trust, the Trustee shall be entitled to assume that no such dissolution,
      termination, or liquidation has occurred so long as the Securities are or
      continue to be registered in the name of such Property Trustee, and the Trustee
      shall be charged with notice or knowledge of such dissolution, termination
      or
      liquidation only upon written notice thereof given to the Trustee by the
      Depositor under the Trust Agreement; and

     

    (ii) the
      Trustee shall not be charged with notice or knowledge that any Person is a
      holder of Preferred Securities or Common Securities issued by the Trust or
      whether any group of holders of Preferred Securities constitutes any specified
      percentage of all outstanding Preferred Securities for any purpose under this
      Indenture, unless and until the Trustee is furnished with a list of holders
      by
      such Property Trustee and the aggregate Liquidation Amount of the Preferred
      Securities then outstanding. The Trustee may conclusively rely and shall be
      protected in relying on such list.

     

    (f) Notwithstanding
      Section
      1.10,
      the
      Trustee shall not, and shall not be deemed to, owe any fiduciary duty to the
      holders of any of the Trust Securities issued by the Trust and shall not be
      liable to any such holder (other than for the willful misconduct or negligence
      of the Trustee) if the Trustee in good faith (i) pays over or distributes to
      a
      registered Holder of the Securities or to the Company (on behalf of itself
      and
      Reading NZ) or to any other Person, cash, property or securities to which such
      holders of such Trust Securities shall be entitled or (ii) takes any action
      or
      omits to take any action at the request of the Holder of such Securities.
      Nothing in this paragraph shall affect the obligation of any other such Person
      to hold such payment for the benefit of, and to pay such amount over to, such
      holders of Preferred Securities or Common Securities or their
      representatives.

     

    SECTION
      6.3. Notice
      of Defaults.

    

      Within
        ninety (90) days after the occurrence of any default actually known to the
        Trustee, the Trustee shall give the Holders notice of such default unless
        such
        default shall have been cured or waived; provided,
        that
        except in the case of a default in the payment of the principal of or any
        premium or interest on any Securities, the Trustee shall be fully protected
        in
        withholding the notice if and so long as the board of directors, the executive
        committee or a trust committee of directors and/or Responsible Officers of
        the
        Trustee in good faith determines that withholding 

       

    

    
      
        
        

      

      
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    the notice is in the interest of holders of Securities;
      and
provided,
      further,
      that in
      the case of any default of the character specified in Section
      5.1(c),
      no such
      notice to Holders shall be given until at least thirty (30) days after the
      occurrence thereof. For the purpose of this Section
      6.3,
      the
      term “default” means any event which is, or after notice or lapse of time or
      both would become, an Event of Default.

     

    SECTION
      6.4. Certain
      Rights of Trustee.

     

    Subject
      to the provisions of Section
      6.2:

     

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

     

    (b) if
      (i) in
      performing its duties under this Indenture the Trustee is required to decide
      between alternative courses of action, (ii) in construing any of the provisions
      of this Indenture the Trustee finds ambiguous or inconsistent with any other
      provisions contained herein or (iii) the Trustee is unsure of the application
      of
      any provision of this Indenture, then, except as to any matter as to which
      the
      Holders are entitled to decide under the terms of this Indenture, the Trustee
      shall deliver a notice to the Company (on behalf of itself and Reading NZ)
      requesting the Company’s written instruction as to the course of action to be
      taken and the Trustee shall take such action, or refrain from taking such
      action, as the Trustee shall be instructed in writing to take, or to refrain
      from taking, by the Company; provided, that if the Trustee does not receive
      such
      instructions from the Company within ten Business Days after it has delivered
      such notice or such reasonably shorter period of time set forth in such notice
      the Trustee may, but shall be under no duty to, take such action, or refrain
      from taking such action, as the Trustee shall deem advisable and in the best
      interests of the Holders, in which event the Trustee shall have no liability
      except for its own negligence, bad faith or willful misconduct;

     

    (c) any
      request or direction of the Company 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;

     

    (d) the
      Trustee may consult with counsel (which counsel may be counsel to the Trustee,
      the Company or any of its Affiliates, and may include any of its employees)
      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
      or any holder of Preferred Securities pursuant to this Indenture, unless such
      Holders (or such holders of Preferred Securities)
      shall have offered to the Trustee security or indemnity reasonably satisfactory
      to it against the costs, expenses (including reasonable attorneys’ fees and
      expenses) and liabilities that might be incurred by it in compliance with such
      request or direction, including reasonable advances for such costs, expenses
      and
      liabilities as may be requested by the Trustee;
       

      (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, indenture, note or other
        paper
        or document, but the Trustee in its discretion may make such inquiry or
        investigation into such facts or matters as it may see fit,

    

    
      
        
        

      

      
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    and,
      if
      the Trustee shall determine to make such inquiry or investigation, it shall
      be
      entitled to examine the books, records and premises of the Company and Reading
      NZ, personally or by agent or attorney;

     

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

     

    (i) whenever
      in the administration of this Indenture the Trustee shall deem it desirable
      to
      receive instructions with respect to enforcing any remedy or right or taking
      any
      other action with respect to enforcing any remedy or right hereunder, the
      Trustee (i) may request instructions from the Holders (which instructions may
      only be given by the Holders of the same aggregate principal amount of
      Outstanding Securities as would be entitled to direct the Trustee under this
      Indenture in respect of such remedy, right or action), (ii) may refrain from
      enforcing such remedy or right or taking such action until such instructions
      are
      received and (iii) shall be protected in acting in accordance with such
      instructions;

     

    (j) except
      as
      otherwise expressly provided by this Indenture, the Trustee shall not he under
      any obligation to take any action that is discretionary under the provisions
      of
      this Indenture;

     

    (k) without
      prejudice to any other rights available to the Trustee under applicable law,
      when the Trustee incurs expenses or renders services in connection with any
      bankruptcy, insolvency or other proceeding referred to in clauses (d) or (e)
      of
      the definition of Event of Default, such expenses (including legal fees and
      expenses of its agents and counsel) and the compensation for such services
      are
      intended to constitute expenses of administration under any bankruptcy laws
      or
      law relating to creditors rights generally;

     

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

     

    (m) the
      Trustee shall not be charged with knowledge of any Event of Default unless
      either (i) a Responsible Officer of the Trustee shall have actual knowledge
      or
      (ii) the Trustee shall have received written notice thereof from the Company,
      Reading NZ or a Holder; and

     

    (n) in
      the
      event that the Trustee is also acting as Paying Agent, Authenticating Agent
      or
      Securities Registrar hereunder, the rights and protections afforded to the
      Trustee pursuant to this Article
      VI
      shall
      also be afforded such Paying Agent, Authenticating Agent, or Securities
      Registrar.

     

    SECTION
      6.5.  May
      Hold Securities.

     

    The
      Trustee, any Authenticating Agent, any Paying Agent, any Securities Registrar
      or
      any other agent of the Company, in its individual or any other capacity, may
      become the owner or pledgee of Securities and may otherwise deal with the
      Company (on behalf of itself and Reading NZ) with the same rights it would
      have
      if it were not Trustee, Authenticating Agent, Paying Agent, Securities Registrar
      or such other agent.

     

    SECTION
      6.6. Compensation;
      Reimbursement; Indemnity.

    
      
        
        

      

      
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    (a) Each
      of
      the Company and Reading NZ agrees:

     

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

     

    (ii) to
      reimburse the Trustee upon its request for all reasonable expenses,
      disbursements and advances incurred or made by the Trustee in accordance with
      any provision of this Indenture (including the reasonable compensation and
      the
      expenses and disbursements of its agents and counsel), except any such expense,
      disbursement or advance as may be attributable to its negligence, bad faith
      or
      willful misconduct; and

     

    (iii) to
      the
      fullest extent permitted by applicable law, to indemnify the Trustee and its
      Affiliates, and their officers, directors, shareholders, agents, representatives
      and employees for, and to hold them harmless against, any loss, damage,
      liability, tax (other than income, franchise or other taxes imposed on amounts
      paid pursuant to (i) or (ii) hereof), penalty, expense or claim of any kind
      or
      nature whatsoever incurred without negligence, bad faith or willful misconduct
      on its part arising out of or in connection with the acceptance or
      administration of this trust or the performance of the Trustee’s 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.

     

    (b) To
      secure
      the Company’s payment obligations in this Section
      6.6,
      each of
      the Company and Reading NZ hereby grants and pledges to the Trustee and the
      Trustee shall have a lien prior to the Securities on all money or property
      held
      or collected by the Trustee, other than money or property held in trust to
      pay
      principal and interest on particular Securities. Such lien shall survive the
      satisfaction and discharge of this Indenture or the resignation or removal
      of
      the Trustee.

     

    (c) The
      obligations of the Company and Reading NZ under this Section
      6.6
      shall
      survive the satisfaction and discharge of this Indenture and the earlier
      resignation or removal of the Trustee.

     

    (d) In
      no
      event shall the Trustee be liable for any indirect, special, punitive or
      consequential loss or damage of any kind whatsoever, including, but not limited
      to, lost profits, even if the Trustee has been advised of the likelihood of
      such
      loss or damage and regardless of the form of action.

     

    (e) In
      no
      event shall the Trustee be liable for any failure or delay in the performance
      of
      its obligations hereunder because of circumstances beyond its control,
      including, but not limited to, acts of God, flood, war (whether declared or
      undeclared), terrorism, fire, riot, embargo,
      government action, including any laws, ordinances, regulations, governmental
      action or the like which delay, restrict or prohibit the providing of the
      services contemplated by this Indenture.
       

      SECTION
        6.7. 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
        VI
        shall
        become effective until the acceptance of appointment by the successor Trustee
        under Section
        6.8.

    

    
      
        
        

      

      
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    (b) The
      Trustee may resign at any time by giving written notice thereof to the Company
      (on behalf of itself and Reading NZ).

     

    (c) Unless
      an
      Event of Default shall have occurred and be continuing, the Trustee may be
      removed at any time by the Company (on behalf of itself and Reading NZ) by
      a
      Board Resolution. If an Event of Default shall have occurred and be continuing,
      the Trustee may be removed by Act of the Holders of a majority in aggregate
      principal amount of the Outstanding Securities, delivered to the Trustee and
      to
      the Company.

     

    (d) 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 reason, at a time when no Event
      of
      Default shall have occurred and be continuing, the Company (on behalf of itself
      and Reading NZ), by a Board Resolution, shall promptly appoint a successor
      Trustee, and such successor Trustee and the retiring Trustee shall comply with
      the applicable requirements of Section
      6.8.
      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 reason, at a time when an Event
      of
      Default shall have occurred and be continuing, the Holders, by Act of the
      Holders of a majority in aggregate principal amount of the Outstanding
      Securities, shall promptly appoint a successor Trustee, and such successor
      Trustee and the retiring Trustee shall comply with the applicable requirements
      of Section
      6.8.
      If no
      successor Trustee shall have been so appointed by the Company or the Holders
      and
      accepted appointment within sixty (60) days after the giving of a notice of
      resignation by the Trustee or the removal of the Trustee in the manner required
      by Section
      6.8,
      any
      Holder who has been a bona fide Holder of a Security for at least six months
      may, on behalf of such Holder and all others similarly situated, and any
      resigning Trustee may, at the expense of the Company and Reading NZ, petition
      any court of competent jurisdiction for the appointment of a successor
      Trustee.

     

    (e) The
      Company shall give notice to all Holders in the manner provided in Section
      1.6
      of each
      resignation and each removal of the Trustee and each appointment of a successor
      Trustee. Each notice shall include the name of the successor Trustee and the
      address of its Corporate Trust Office.

     

    SECTION
      6.8. Acceptance
      of Appointment by Successor.

     

    (a) In
      case
      of the appointment hereunder of a successor Trustee, each successor Trustee
      so
      appointed shall execute, acknowledge and deliver to the Company (on behalf
      of
      itself and Reading NZ) 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 (on behalf
      of
      itself and Reading NZ) 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) Upon
        request of any such successor Trustee, the Company and Reading NZ shall execute
        any and all instruments for more fully and certainly vesting in and confirming
        to such successor Trustee all rights, powers and trusts referred to in paragraph
        (a) of this Section
        6.8.

       

      (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
        VI.

       

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

    

    
      
        
        

      

      
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    Any
      Person into which the Trustee may be merged or converted or with which it may
      be
      consolidated, or any Person resulting from any merger, conversion or
      consolidation to which the Trustee shall be a party, or any Person succeeding
      to
      all or substantially all of the corporate trust business of the Trustee, shall
      be the successor of the Trustee hereunder, without the execution or filing
      of
      any paper or any further act on the part of any of the parties hereto, provided,
      that such Person shall be otherwise qualified and eligible under this
Article
      VI.
      In case
      any Securities shall have been authenticated, but not delivered, by the Trustee
      then in office, any successor by merger, conversion or consolidation or as
      otherwise provided above in this Section
      6.9
      to such
      authenticating Trustee may adopt such authentication and deliver the Securities
      so authenticated, and in case any Securities shall not have been authenticated,
      any successor to the Trustee may authenticate such Securities either in the
      name
      of any predecessor Trustee or in the name of such successor Trustee, and in
      all
      cases the certificate of authentication shall have the full force which it
      is
      provided anywhere in the Securities or in this Indenture that the certificate
      of
      the Trustee shall have.

     

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

     

    The
      recitals contained herein and in the Securities, except the Trustee’s
      certificates of authentication, shall be taken as the statements of the Company
      and Reading NZ, and neither the Trustee nor any Authenticating Agent assumes
      any
      responsibility for their correctness. The Trustee makes no representations
      as to
      the validity or sufficiency of this Indenture or of the Securities. Neither
      the
      Trustee nor any Authenticating Agent shall be accountable for the use or
      application by the Company of the Securities or the proceeds
      thereof.

     

    SECTION
      6.11. Appointment
      of Authenticating Agent.

     

    (a) The
      Trustee may appoint an Authenticating Agent or Agents with respect to the
      Securities, which shall be authorized to act on behalf of the Trustee to
      authenticate Securities issued upon original issue and upon exchange,
      registration of transfer or partial redemption thereof or pursuant to
Section
      3.6,
      and
      Securities so authenticated shall be entitled to the benefits of this Indenture
      and shall be valid and obligatory for all purposes as if authenticated by the
      Trustee hereunder. Wherever reference is made in this Indenture to the
      authentication and delivery of Securities by the Trustee or the Trustee’s
      certificate of authentication, such reference shall be deemed to include
      authentication and delivery on behalf of the Trustee by an Authenticating Agent.
      Each Authenticating Agent shall be acceptable to the Company and shall at all
      times be a corporation organized and doing business under the laws of the United
      States of America, or of any State or Territory thereof or the District of
      Columbia, authorized under such laws to act as Authenticating Agent, having
      a
      combined capital and surplus of not less than $50,000,000 and subject to
      supervision or examination by federal or state authority. If such Authenticating
      Agent publishes reports of condition at least annually pursuant to law or to
      the
requirements
      of said supervising or examining authority, then for the purposes of this
Section
      6.11
      the
      combined capital and surplus of such Authenticating Agent shall be deemed to
      be
      its combined capital and surplus as set forth in its most recent report of
      condition so published. If at any time an Authenticating Agent shall cease
      to be
      eligible in accordance with the provisions of this Section
      6.11,
      such
      Authenticating Agent shall resign immediately in the manner and with the effect
      specified in this Section
      6.11.
       

      (b) Any
        Person into which an Authenticating Agent may be merged or converted or with
        which it may be consolidated, or any Person resulting from any merger,
        conversion or consolidation to which such Authenticating Agent shall be a
        party,
        or any Person succeeding to all or substantially all of the corporate trust
        business of an Authenticating Agent shall be the successor Authenticating
        Agent
        hereunder, provided such Person shall be otherwise eligible

    

    
      
        
        

      

      
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    under
      this Section
      6.11,
      without
      the execution or filing of any paper or any further act on the part of the
      Trustee or the Authenticating Agent.

     

    (c) An
      Authenticating Agent may resign at any time by giving written notice thereof
      to
      the Trustee and to the Company (on behalf of itself and Reading NZ). The Trustee
      may at any time terminate the agency of an Authenticating Agent by giving
      written notice thereof to such Authenticating Agent and to the Company. Upon
      receiving such a notice of resignation or upon such a termination, or in case
      at
      any time such Authenticating Agent shall cease to be eligible in accordance
      with
      the provisions of this Section
      6.11,
      the
      Trustee may appoint a successor Authenticating Agent eligible under the
      provisions of this Section
      6.11,
      which
      shall be acceptable to the Company, and shall give notice of such appointment
      to
      all Holders. Any successor Authenticating Agent upon acceptance of its
      appointment hereunder shall become vested with all the rights, powers and duties
      of its predecessor hereunder, with like effect as if originally named as an
      Authenticating Agent.

     

    (d) Each
      of
      the Company and Reading NZ agrees to pay to each Authenticating Agent from
      time
      to time reasonable compensation for its services under this Section
      6.11
      in such
      amounts as the Company, Reading NZ and the Authenticating Agent shall agree
      from
      time to time.

     

    (e) If
      an
      appointment of an Authenticating Agent is made pursuant to this Section
      6.11,
      the
      Securities may have endorsed thereon, in addition to the Trustee’s certificate
      of authentication, an alternative certificate of authentication in the following
      form:

     

    This
      is
      one of the Securities referred to in the within mentioned Indenture.

     

    Dated:

    

      
        	 	
                WELLS
                  FARGO BANK, N.A., not in its individual capacity, but solely as
                  Trustee

              
	 	 	 
	 	 	 
	 	 	 
	 	
                By:

              	 
	 	 	
                Authenticating
                  Agent

              

      

    

    

    

    ARTICLE
      VII

     

    HOLDER’S
      LISTS AND REPORTS BY COMPANY
      AND READING NZ

     

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

     

    The
      Company (on behalf of itself and Reading NZ) will furnish or cause to be
      furnished to the Trustee:

     

    (a) semiannually,
      on or before June 30 and December 31 of each year, a list, in such form as
      the
      Trustee may reasonably require, of the names and addresses of the Holders as
      of
      a date not more than fifteen (15) days prior to the delivery thereof,
      and

     

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

    
      
        
          
          

        

        
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    is
      furnished, in each case to the extent such information is in the possession
      or
      control of the Company (on behalf of itself and Reading NZ) and has not
      otherwise been received by the Trustee in its capacity as Securities
      Registrar.

     

    SECTION
      7.2. 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
      7.1
      and the
      names and addresses of Holders received by the Trustee in its capacity as
      Securities Registrar. The Trustee may destroy any list furnished to it as
      provided in Section
      7.1
      upon
      receipt of a new list so furnished.

     

    (b) The
      rights of Holders to communicate with other Holders with respect to their rights
      under this Indenture or under the Securities, and the corresponding rights
      and
      privileges of the Trustee, shall be as provided in the Trust Indenture
      Act.

     

    (c) Every
      Holder of Securities, by receiving and holding the same, agrees with the
      Company, Reading NZ and the Trustee that none of the Company, Reading NZ or
      the
      Trustee nor any agent of any of them shall be held accountable by reason of
      the
      disclosure of information as to the names and addresses of the Holders made
      pursuant to the Trust Indenture Act.

     

    SECTION
      7.3. Reports
      by Company.

     

    (a) The
      Company (on behalf of itself and Reading NZ) shall furnish to the Holders and
      to
      prospective purchasers of Securities, upon their request, the information
      required to be furnished pursuant to Rule 144A(d)(4) under the Securities Act.
      The delivery requirement set forth in the preceding sentence may be satisfied
      by
      compliance with Section
      7.3(b)
      hereof.

     

    (b) The
      Company shall furnish to each of (i) the Trustee, (ii) the Holders and to
      subsequent holders of Securities, (iii) the Purchaser at 2107 Wilson Blvd.,
      Suite 400, Arlington, VA 22201, Attention: Robert Hurley, Chief Financial
      Officer, or such other address as designated by Purchaser) and (iv) any
      beneficial owner of the Securities reasonably identified to the Company (which
      identification may be made either by such beneficial owner or by Purchaser),
      a
      duly completed and executed certificate substantially and substantively in
      the
      form attached hereto as Exhibit
      A,
      including the financial statements referenced in such Exhibit, which certificate
      and financial statements shall be so furnished by the Company not later than
      forty-five (45) days after the end of each of the first three fiscal quarters
      of
      each fiscal year of the Company and not later than ninety (90) days after the
      end of each fiscal year of the Company. The delivery requirements under this
      Section
      7.3(b)
      may be
      satisfied by compliance with Section
      8.16(b)
      of the
      Trust Agreement.

     

    (c) If
      the
      Company intends to file its annual and quarterly information with the Securities
      and Exchange Commission (the “Commission”)
      in
      electronic form pursuant to Regulation S-T of the Commission using the
      Commission’s Electronic Data Gathering, Analysis and Retrieval (“EDGAR”)
      system, the Company shall notify the Trustee in the manner prescribed herein
      of
      each such annual and quarterly filing. The Trustee is hereby authorized and
      directed to access the EDGAR system for purposes of retrieving the financial
      information so filed. Compliance with the foregoing shall constitute delivery
      by
      the Company of its financial statements to the
      Trustee
      in compliance with the provisions of Section 314(a) of the Trust Indenture
      Act,
      if applicable. The Trustee shall have no duty to search for or obtain any
      electronic or other filings that the Company makes with the Commission,
      regardless of whether such filings are periodic, supplemental or otherwise.
      Delivery of reports, information and documents to the Trustee pursuant to this
      Section
      7.3(c)
      shall be
      solely for purposes of 

    
      
        
        

      

      
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    compliance
      with this Section
      7.3
      and, if
      applicable, with Section 314(a) of the Trust Indenture Act. The Trustee’s
      receipt of such reports, information and documents shall not constitute notice
      to it of the content thereof or any matter determinable from the content
      thereof, including the Company’s compliance with any of its covenants hereunder,
      as to which the Trustee is entitled to rely upon Officers’
Certificates.

     

    ARTICLE
      VIII

     

    CONSOLIDATION,
      MERGER, CONVEYANCE,
      TRANSFER OR LEASE

     

    SECTION
      8.1. Company
      and Reading NZ May Consolidate, Etc., Only on Certain Terms.

     

    Neither
      the Company nor Reading NZ shall consolidate with or merge into any other Person
      or convey, transfer or lease its properties and assets substantially as an
      entirety to any Person, and no Person shall consolidate with or merge into
      the
      Company or Reading NZ or convey, transfer or lease its properties and assets
      substantially as an entirety to the Company or Reading NZ, unless:

     

    (a) if
      the
      Company or Reading NZ shall consolidate with or merge into another Person or
      convey, transfer or lease its properties and assets substantially as an entirety
      to any Person, the entity formed by such consolidation or into which the Company
      or Reading NZ is merged or the Person that acquires by conveyance or transfer,
      or that leases, the properties and assets of the Company or Reading NZ
      substantially as an entirety shall be an entity organized and existing under
      the
      laws of the United States of America or any State or Territory 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, the due and punctual payment of the principal of and any premium
      and interest (including any Additional Interest) on all the Securities and
      the
      performance of every covenant of this Indenture on the part of the Company
      or
      Reading NZ to be performed or observed;

     

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

     

    (c) the
      Company and Reading NZ have delivered to the Trustee an Officers’ Certificate
      and an Opinion of Counsel, each stating that such consolidation, merger,
      conveyance, transfer or lease and, if a supplemental indenture is required
      in
      connection with such transaction, any such supplemental indenture comply with
      this Article
      VIII and
      that
      all conditions precedent herein provided for relating to such transaction have
      been complied with; and the Trustee may rely upon such Officers’ Certificate and
      Opinion of Counsel as conclusive evidence that such transaction complies with
      this Section
      8.1.

     

    
      SECTION
        8.2.  Successor Substituted.

       

      (a) Upon
        any
        consolidation or merger by the Company or Reading NZ with or into any other
        Person, or any conveyance, transfer or lease by the Company or Reading NZ
        of its
        properties and assets substantially as an entirety to any Person in accordance
        with Section
        8.1
        and the
        execution and delivery to the Trustee of the supplemental indenture described
        in
Section
        8.1(a),
        the
        successor entity formed by such consolidation or into which the Company or
        Reading NZ is merged or to which such conveyance, transfer or lease is made
        shall succeed to, and be substituted for, and may exercise every right and
        power
        of, the Company or Reading NZ under 

       

    

    
      
        
        

      

      
        -49-

        
          

        

      

      
        
        

      

    

     

    this
      Indenture with the same effect as if such successor Person had been named as
      the
      Company or an Obligor herein; and in the event of any such conveyance or
      transfer, following the execution and delivery of such supplemental indenture,
      and compliance with Section
      4.2(a)
      or
11.2,
      as
      applicable, hereof, the Company or Reading NZ shall be discharged from all
      obligations and covenants under the Indenture and the Securities.

     

    (b) Such
      successor Person may cause to be executed, and may issue either in its own
      name
      or in the name of the Company or Reading NZ, any or all of the Securities
      issuable hereunder that theretofore shall not have been signed by the Company
      or
      Reading NZ and delivered to the Trustee; and, upon the order of such successor
      Person instead of the Company or Reading NZ and subject to all the terms,
      conditions and limitations in this Indenture prescribed, the Trustee shall
      authenticate and shall deliver any Securities that previously shall have been
      signed and delivered by the officers of the Company or Reading NZ to the Trustee
      for authentication, and any Securities that such successor Person thereafter
      shall cause to be executed and delivered to the Trustee on its behalf. All
      the
      Securities so issued shall in all respects have the same legal rank and benefit
      under this Indenture as the Securities theretofore or thereafter issued in
      accordance with the terms of this Indenture.

     

    (c) In
      case
      of any such consolidation, merger, sale, conveyance or lease, such changes
      in
      phraseology and form may be made in the Securities thereafter to be issued
      as
      may be appropriate to reflect such occurrence.

     

    ARTICLE
      IX

     

    SUPPLEMENTAL
      INDENTURES

     

    SECTION
      9.1. Supplemental
      Indentures without Consent of Holders.

     

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

     

    (a) to
      evidence the succession of another Person to the Company or Reading NZ, and
      the
      assumption by any such successor of the covenants of the Company or Reading
      NZ
      herein and in the Securities; or

     

    (b) to
      evidence and provide for the acceptance of appointment hereunder by a successor
      trustee; or

     

    (c) to
      cure
      any ambiguity, to correct or supplement any provision herein that may be
      defective or inconsistent with any other provision herein, or to make or amend
      any other provisions with respect to matters or questions arising under this
      Indenture, which shall not be inconsistent
      with the other provisions of this Indenture, provided,
      that
      such action pursuant to this clause (b) shall not adversely affect in any
      material respect the interests of any Holders or the holders of the Preferred
      Securities; or
       

      (d) to
        comply
        with the rules and regulations of any securities exchange or automated quotation
        system on which any of the Securities may be listed, traded or quoted;
        or

       

      (e) to
        add to
        the covenants, restrictions or obligations of the Company or Reading NZ or
        to
        add to the Events of Default, provided, that such action pursuant to this
        clause
        (e) shall not 

    

    
      
        
        

      

      
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    adversely
      affect in any material respect the interests of any Holders or the holders
      of
      the Preferred Securities; or

     

    (f) to
      modify, eliminate or add to any provisions of the Indenture or the Securities
      to
      such extent as shall be necessary to ensure that the Securities are treated
      as
      indebtedness of the Company and Reading NZ for United States federal income
      tax
      purposes, provided, that such action pursuant to this clause (d) shall not
      adversely affect in any material respect the interests of any Holders or the
      holders of the Preferred Securities.

     

    SECTION
      9.2. Supplemental
      Indentures with Consent of Holders.

     

    (a) Subject
      to Section
      9.1,
      with
      the consent of the Holders of not less than a majority in aggregate principal
      amount of the Outstanding Securities, by Act of said Holders delivered to the
      Company (on
      behalf of itself and Reading NZ) and
      the
      Trustee, the Company, when authorized by a Board Resolution, Reading NZ, when
      authorized by a Board Resolution, and the Trustee may enter into an indenture
      or
      indentures supplemental hereto for the purpose of adding any provisions to
      or
      changing in any manner or eliminating any of the provisions of this
      Indenture
      or of
      modifying in any manner the rights of the Holders of Securities under this
      Indenture; provided, that no such supplemental indenture shall, without the
      consent of the Holder of each Outstanding Security,

     

    (i) change
      the Stated Maturity of the principal or any premium of any Security or change
      the date of payment of any installment of interest (including any Additional
      Interest) on any Security, or reduce the principal amount thereof or the rate
      of
      interest thereon or any premium payable upon the redemption thereof or change
      the place of payment where, or the coin or currency in which, any Security
      or
      interest thereon is payable, or restrict or impair the right to institute suit
      for the enforcement of any such payment on or after such date, or

     

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

     

    (iii) modify
      any of the provisions of this Section
      9.2,
      Section
      5.13
      or
Section
      10.8,
      except
      to increase any percentage in aggregate principal amount of the Outstanding
      Securities, the consent of whose Holders is required for any reason, or to
      provide that certain other provisions of this Indenture cannot be modified
      or
      waived without the consent of the Holder of each Security;

     

    provided,
      further,
      that,
      so long as any Preferred Securities remain outstanding, no amendment under
      this
Section
      9.2
      shall be
      effective until the holders of a majority in Liquidation Amount of the Preferred
      Securities shall have consented to such amendment; provided,
      further,
      that if
      the consent
      of the Holder of each Outstanding Security is required for any amendment under
      this Indenture, such amendment shall not be effective until the holder of each
      Outstanding Preferred Security shall have consented to such amendment.
       

      (b) It
        shall
        not be necessary for any Act of Holders under this Section
        9.2
        to
        approve the particular form of any proposed supplemental indenture, but it
        shall
        be sufficient if such Act shall approve the substance thereof.

       

      SECTION
        9.3. Execution
        of Supplemental Indentures.

    

     

    
      
        
        

      

      
        -51-

        
          

        

      

      
        
        

      

    

     

    In
      executing or accepting the additional trusts created by any supplemental
      indenture permitted by this Article
      IX
      or the
      modifications thereby of the trusts created by this Indenture, the Trustee
      shall
      be entitled to receive, and shall be fully protected in conclusively relying
      upon, an Officers’ Certificate and an Opinion of Counsel stating that the
      execution of such supplemental indenture is authorized or permitted by this
      Indenture, and that all conditions precedent herein provided for relating to
      such action have been complied with. The Trustee may, but shall not be obligated
      to, enter into any such supplemental indenture that affects the Trustee’s own
      rights, duties, indemnities or immunities under this Indenture or otherwise.
      Copies of the final form of each supplemental indenture shall be delivered
      by
      the Trustee at the expense of the Company and Reading NZ to each Holder, and,
      if
      the Trustee is the Property Trustee, to each holder of Preferred Securities,
      promptly after the execution thereof.

     

    SECTION
      9.4. Effect
      of Supplemental Indentures.

     

    Upon
      the
      execution of any supplemental indenture under this Article
      IX,
      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 and every holder of Preferred Securities theretofore or thereafter
      authenticated and delivered hereunder shall be bound thereby.

     

    SECTION
      9.5. Reference
      in Securities to Supplemental Indentures.

     

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

     

    ARTICLE
      X

     

    COVENANTS

     

    SECTION
      10.1. Payment
      of Principal, Premium, if any, and Interest.

     

    Each
      of
      the Company and Reading NZ covenants and agrees for the benefit of the Holders
      of the Securities that it will duly and punctually pay the principal of and
      any
      premium and interest (including any Additional Interest) on the Securities
      in
      accordance with the terms of the Securities and this Indenture.

     

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

    

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

       

      
        (b) Whenever
          the Company shall have one or more Paying Agents, it will, prior to 10:00
          a.m.,
          New York City time, on each due date of the principal of or any premium
          or
          interest 

        

        
          
            
              
              

            

            
              -52-

              
                

              

            

            
              
              

            

          

        

         

        (including
          any Additional Interest) on any
          Securities, deposit with a Paying Agent a sum sufficient to pay such amount,
          such sum to be held as provided in the Trust Indenture Act and (unless
          such
          Paying Agent is the Trustee) the Company will promptly notify the Trustee
          of its
          failure so to act.

      

    

    (c) The
      Company will cause each Paying Agent for the Securities other than the Trustee
      to execute and deliver to the Trustee an instrument in which such Paying Agent
      shall agree with the Trustee, subject to the provisions of this Section
      10.2,
      that
      such Paying Agent will (i) comply with the provisions of this Indenture and
      the
      Trust Indenture Act applicable to it as a Paying Agent and (ii) during the
      continuance of any default by the Company (or any other obligor upon the
      Securities) in the making of any payment in respect of the Securities, upon
      the
      written request of the Trustee, forthwith pay to the Trustee all sums held
      in
      trust by such Paying Agent for payment in respect of the
      Securities.

     

    (d) 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.

     

    (e) 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 any premium or interest (including
      any Additional Interest) on any Security and remaining unclaimed for two years
      after such principal and any premium or interest has become due and payable
      shall (unless otherwise required by mandatory provision of applicable escheat
      or
      abandoned or unclaimed property law) be paid on Company Request to the Company,
      or (if then held by the Company) shall (unless otherwise required by mandatory
      provision of applicable escheat or abandoned or unclaimed property law) 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, that the Trustee or such Paying Agent, before being required
      to
      make any such repayment, may at the expense of the Company cause to be published
      once, in a newspaper published in the English language, customarily published
      on
      each Business Day and of general circulation in the Borough of Manhattan, The
      City of New York, notice that such money remains unclaimed and that, after
      a
      date specified therein, which shall not be less than thirty (30) days from
      the
      date of such publication, any unclaimed balance of such money then remaining
      will be repaid to the Company.

     

    SECTION
      10.3. Statement
      as to Compliance.

     

    
      The
        Company (on behalf of itself and Reading NZ) shall deliver to the Trustee,
        within one hundred and twenty (120) days after the end of each fiscal year
        of
        the Company ending after the date hereof, an Officers’ Certificate covering the
        preceding calendar year, stating whether or not to the knowledge of the signers
        thereof the Company or Reading NZ is in default in the performance or observance
        of any of the terms, provisions and conditions of this Indenture (without
        regard
        to any period of grace or requirement of notice provided hereunder), and
        if the
        Company or Reading NZ shall be in default, specifying all such defaults and
        the
        nature and status thereof of which they may have knowledge. The delivery
        requirements of this Section
        10.3
        may be
        satisfied by compliance with Section
        8.16(a)
        of the
        Trust Agreement.

       

      
        SECTION
          10.4. Calculation
          Agent.

      

       

    

    
      
        
        

      

      
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    (a) Each
      of
      the Company and Reading NZ hereby agrees that for so long as any of the
      Securities remain Outstanding, there will at all times be an agent appointed
      to
      calculate LIBOR in respect of each Interest Payment Date in accordance with
      the
      terms of Schedule
      A
      (the
“Calculation
      Agent”).
      The
      Company has initially appointed the Property Trustee as Calculation Agent for
      purposes of determining LIBOR for each Interest Payment Date. The Calculation
      Agent may be removed by the Company at any time. So long as the Property Trustee
      holds any of the Securities, the Calculation Agent shall be the Property
      Trustee, except as described in the immediately preceding sentence. If the
      Calculation Agent is unable or unwilling to act as such or is removed by the
      Company, the Company will promptly appoint as a replacement Calculation Agent
      the London office of a leading bank which is engaged in transactions in
      Eurodollar deposits in the international Eurodollar market and which does not
      control or is not controlled by or under common control with the Company or
      its
      Affiliates. The Calculation Agent may not resign its duties without a successor
      having been duly appointed.

     

    (b) The
      Calculation Agent shall be required to agree that, as soon as possible after
      11:00 a.m. (London time) on each LIBOR Determination Date (as defined in
Schedule
      A),
      but in
      no event later than 11:00 a.m. (London time) on the Business Day immediately
      following each LIBOR Determination Date, the Calculation Agent will calculate
      the interest rate (the interest payment shall be rounded to the nearest cent,
      with half a cent being rounded upwards) for the related Interest Payment Date,
      and will communicate such rate and amount to the Company, the Trustee, each
      Paying Agent and the Depositary. The Calculation Agent will also specify to
      the
      Company the quotations upon which the foregoing rates and amounts are based
      and,
      in any event, the Calculation Agent shall notify the Company before 5:00 p.m.
      (London time) on each LIBOR Determination Date that either: (i) it has
      determined or is in the process of determining the foregoing rates and amounts
      or (ii) it has not determined and is not in the process of determining the
      foregoing rates and amounts, together with its reasons therefor. The Calculation
      Agent’s determination of the foregoing rates and amounts for any Interest
      Payment Date will (in the absence of manifest error) be final and binding upon
      all parties. For the sole purpose of calculating the interest rate for the
      Securities, “Business Day” shall be defined as any day on which dealings in
      deposits in Dollars are transacted in the London interbank market.

     

    SECTION
      10.5. Additional
      Tax Sums.

     

    So
      long
      as no Event of Default has occurred and is continuing, if (a) the Trust is
      the
      Holder of all of the Outstanding Securities and (b) a Tax Event described in
      clause (i) or (iii) in the definition of Tax Event in Section
      1.1
      hereof
      has occurred and is continuing, the Company and Reading NZ shall pay to the
      Trust (and its permitted successors or assigns under the related Trust
      Agreement) for so long as the Trust (or its permitted successor or assignee)
      is
      the registered holder of the Outstanding Securities, such amounts as may be
      necessary in order that the
      amount of Distributions (including any Additional Interest Amount (as defined
      in
      the Trust Agreement)) then due and payable by the Trust on the Preferred
      Securities and Common Securities that at any time remain outstanding in
      accordance with the terms thereof shall not be reduced as a result of any
      Additional Taxes arising from such Tax Event (additional such amounts payable
      by
      the Company and Reading NZ to the Trust, the “Additional
      Tax Sums”).
      Whenever in this Indenture or the Securities there is a reference in any context
      to the payment of principal of or interest on the Securities, such mention
      shall
      be deemed to include mention of the payments of the Additional Tax Sums provided
      for in this Section
      10.5
      to the
      extent that, in such context, Additional Tax Sums are, were or would be payable
      in respect thereof pursuant to the provisions of this Section
      10.5
      and
      express mention of the payment of Additional Tax Sums (if applicable) in any
      provisions hereof shall not be construed as excluding Additional Tax Sums in
      those provisions hereof where such express mention is not made.
       

      SECTION
        10.6. Additional
        Covenants.

    

     

    
      
        
        

      

      
        -54-

        
          

        

      

      
        
        

      

    

     

    (a) Each
      of
      the Company and Reading NZ covenants and agrees with each Holder of Securities
      that if an Event of Default shall have occurred and be continuing, it shall
      not
      (i) declare or pay any dividends or distributions on, or redeem, purchase,
      acquire or make a liquidation payment with respect to, any shares of the
      Company’s capital stock (for the avoidance of doubt, the term “capital stock”
includes both common stock and preferred stock of the Company), (ii) except
      for
      dividends, distributions, redemptions, purchases, acquisitions or liquidation
      payments paid solely to the Company, vote in favor of or permit or otherwise
      allow any of its subsidiaries to declare or pay any dividends or distributions
      on, or redeem, purchase, acquire or make a liquidation payment with respect
      to
      or otherwise retire, any shares of such subsidiaries preferred stock (for the
      avoidance of doubt, whether such preferred stock is perpetual or otherwise),
      or
      (iii) make any payment of principal of or any interest or premium, if any,
      on or
      repay, repurchase or redeem any debt securities of the Company that rank
pari
      passu in
      all
      respects with or junior in interest to the Securities (other than (A)
      repurchases, redemptions or other acquisitions of shares of capital stock of
      the
      Company in connection with any employment contract, benefit plan or other
      similar arrangement with or for the benefit of any one or more employees,
      officers, directors or consultants, in connection with a dividend reinvestment
      or stockholder stock purchase plan or in connection with the issuance of capital
      stock of the Company (or securities convertible into or exercisable for such
      capital stock) as consideration in an acquisition transaction entered into
      prior
      to the Event of Default, (B) as a result of an exchange or conversion of any
      class or series of the Company’s capital stock (or any capital stock of a
      Subsidiary of the Company) for any class or series of the Company’s capital
      stock or of any class or series of the Company’s indebtedness for any class or
      series of the Company’s capital stock, (C) the purchase of fractional interests
      in shares of the Company’s capital stock pursuant to the conversion or exchange
      provisions of such capital stock or the security being converted or exchanged,
      (D) any declaration of a dividend in connection with any Rights Plan, the
      issuance of rights, stock or other property under any Rights Plan or the
      redemption or repurchase of rights pursuant thereto or (E) any dividend in
      the
      form of stock, warrants, options or other rights where the dividend stock or
      the
      stock issuable upon exercise of such warrants, options or other rights is the
      same stock as that on which the dividend is being paid or ranks pari
      passu
      with or
      junior to such stock).

     

    (b) The
      Company also covenants with each Holder of Securities (i) to hold, directly
      or
      indirectly, one hundred percent (100%) of the Common Securities of the Trust,
      provided,
      that any
      permitted successor of the Company hereunder may succeed to the Company’s
      ownership of such Common Securities, (ii) as holder of such Common Securities,
      not to voluntarily dissolve, wind-up or liquidate the Trust other than (A)
      in
      connection with a distribution of the Securities to the holders of the Preferred
      Securities in liquidation of the Trust or (B) in connection with certain
      mergers, consolidations or amalgamations permitted by the Trust Agreement and
      (iii) to use its reasonable
      commercial efforts, consistent with the terms and provisions of the Trust
      Agreement, to cause the Trust to continue to be taxable as a grantor trust
      and
      not as a corporation for United States federal income tax purposes.
       

      (c) [Intentionally
        omitted].

       

      (d) The
        Company shall notify in writing, within five (5) Business Days of the occurrence
        thereof, the Trustee and each holder of Preferred Securities of the occurrence
        of a Change of Control (the “Change
        of Control Notice”),
        describing the transaction or transactions that constitute the Change of
        Control
        and stating that the Electing Securities will either be (i) defeased in
        accordance with Article XIII of this Indenture, if, after applying the
        requirements of Section 11.2 of this Indenture to redeem the Electing Securities
        no later than thirty (30) days following the end of the Notice Period (defined
        below), the Electing Securities would be redeemed prior to the expiration
        of the
        No Call Period, or (ii) redeemed by the Company, pursuant to Section 11.2
        of
        this Indenture, if the Redemption Date is on or after the expiration of the
        No
        Call Period, in either case only if the Company and the Trustee receive,
        within
        thirty (30) 

    

     

    
      
        
        

      

      
        -55-

        
          

        

      

      
        
        

      

    

    days
      after the Company gives a Change of Control Notice (such 30-day period referred
      to as the “Notice
      Period”),
      notice from holders of at least twenty five percent (25%) in aggregate principal
      amount of the Preferred Securities electing to cause either the Defeasance
      or
      redemption, as applicable, of the Securities (a “Change
      of Control Election”).
      If
      the Company and the Trustee shall have received a Change of Control Election
      from the holders of at least twenty five percent (25%) in aggregate principal
      amount of Preferred Securities within the Notice Period, then the Company shall
      either (A) defease the Electing Securities in accordance with Article XIII
      of
      this Indenture, if, after applying the requirements in Section 11.2 of this
      Indenture, the Redemption Date would be prior to the expiration of the No Call
      Period, or (B) redeem the Electing Securities, pursuant to Section 11.2 of
      this
      Indenture, if the Redemption Date is on or after the expiration of the No Call
      Period. 

     

    SECTION
      10.7. Financial
      Covenants. 

     

    Each
      of
      the Company and Reading NZ hereby covenants and agrees as follows:

     

    (a) for
      so
      long as any of the Securities remain outstanding, the Company shall maintain
      at
      all times (i) Net Worth as determined in accordance with GAAP as in effect
      as of
      September 30, 2006, in an amount greater than or equal to Eighty Five Million
      Dollars ($85,000,000), and (ii) the Net Asset Value of Real Estate in an amount
      greater than or equal to One Hundred Sixty Five Million Dollars
      ($165,000,000).

     

    (b) for
      so
      long as any of the Securities remain outstanding, unless the prior written
      consent of holders of at least a majority in principal amount of the Preferred
      Securities has been obtained, the Company shall not at any time issue any
      additional Debt other than Senior Debt unless, at such time, the sum of (i)
      the
      aggregate principal amount of any such proposed additional Debt, and (ii) the
      aggregate principal amount of the Company’s outstanding Debt other than Senior
      Debt at such time (including the outstanding principal amount of the Securities)
      would not exceed twenty five percent (25%) of the Net Asset Value of Real Estate
      at such time.

     

    (c) for
      so
      long as any of the Securities remain outstanding, the Company shall not permit
      its Fixed Charge Coverage Ratio, calculated as of the end of each fiscal quarter
      for the four fiscal quarters then ended, to be less than the ratios set forth
      below for the time periods set forth below:

     

    (i) Original
      Issue Date through first anniversary thereof: 1.25
      to
      1.0;

     

    
      (ii) first
        anniversary through second anniversary thereof: 1.45
        to
        1.0;

       

      (iii) second
        anniversary through third anniversary thereof: 1.55
        to
        1.0; and

       

      (iv) third
        anniversary and all times thereafter: 1.65
        to
        1.0.

    

     

    
      (d) If
        the
        Company is not in compliance with the required level or ratio for any of
        the
        covenants calculated as described above in Section
        10.7(a), (b) or (c) at
        any
        time and if there exists no other Event of Default at such time, the Company
        shall have the option, exercisable by notice to the Trustee at any time prior
        to
        the expiration of the thirty (30)-day period following any Notice of Default
        with respect to such default, to deposit in escrow with the Trustee cash
        in an
        amount equal to one (1) year of all scheduled interest payments required
        under
        this Indenture with respect to the Securities (the “Financial
        Covenant Deposit”),
        in
        which case the Company shall be given a period of one (1) year in which to
        use
        its good faith efforts to cure such default; 

    

    
      
        
        

      

      
        -56-

        
          

        

      

      
        
        

      

    

     

    provided that
      the
      Company shall nonetheless be obligated to make all payments (including quarterly
      interest payments) required hereunder, and provided,
      further, that
      if an
      Event of Default under Section
      5.1(a), (b), (d), (e) or (f)
      exists
      or occurs during such period, then the Trustee, the Holders and the holders
      of
      Preferred Securities shall have the rights and remedies given to them under
      Article
      V
      and
      elsewhere in this Indenture and the Company shall have no one (1)-year cure
      period for any such Event of Default. In the event that the Company makes such
      Financial Covenant Deposit, the Company shall be required to provide a quarterly
      Officer’s Certificate to the Trustee, the Holders and the holders of the
      Preferred Securities setting forth the steps that the Company is taking to
      cure
      such default and certifying that the Company is using its good faith efforts
      toward such cure. If the Company fails to cure such Event of Default within
      the
      one (1)-year period described herein, then the holders of the Preferred
      Securities, upon thirty (30) days written notice to the Company shall have
      the
      right to require the Company to redeem their respective Securities in accordance
      with the following: (i) if during the period from the first anniversary of
      Original Issue Date through the second anniversary thereof, at a Redemption
      Price equal to one hundred three percent (103%) of the principal amount thereof,
      together, in the case of any such redemption, with accrued interest, including
      any Additional Interest, through but excluding the date fixed as the Redemption
      Date, (ii) if during the period from the second anniversary of Original Issue
      Date through the third anniversary thereof, at a Redemption Price equal to
      one
      hundred two percent (102%) of the principal amount thereof, together, in the
      case of any such redemption, with accrued interest, including any Additional
      Interest, through but excluding the date fixed as the Redemption Date, (iii)
      if
      during the period from the third anniversary of Original Issue Date through
      the
      fourth anniversary thereof, at a Redemption Price equal to one hundred one
      percent (101%) of the principal amount thereof, together, in the case of any
      such redemption, with accrued interest, including any Additional Interest,
      through but excluding the date fixed as the Redemption Date, and (iv) at any
      time thereafter, at a Redemption Price equal to one hundred percent (100%)
      of
      the principal amount thereof, together, in the case of any such redemption,
      with
      accrued interest, including any Additional Interest, through but excluding
      the
      date fixed as the Redemption Date.

     

    SECTION
      10.8. Waiver
      of Covenants.

     

    The
      Company and Reading NZ may omit in any particular instance to comply with any
      covenant or condition contained in Section
      10.6 or
      Section
      10.7
      if,
      before or after the time for such compliance, the Holders of at least a majority
      in aggregate principal amount of the Outstanding Securities shall, by Act of
      such Holders, and at least a majority of the aggregate Liquidation Amount of
      the
      Preferred Securities then outstanding, by consent of such holders, either waive
      such compliance in such instance or generally waive compliance with such
      covenant or condition, but no such waiver shall extend to or affect such
      covenant or condition except
      to
      the extent so expressly waived, and, until such waiver shall become effective,
      the obligations of the Company and Reading NZ in respect of any such covenant
      or
      condition shall remain in full force and effect.
       

      SECTION
        10.9. Treatment
        of Securities.

       

      Each
        of
        the Company and Reading NZ will treat the Securities as indebtedness, and
        the
        amounts, other than payments of principal, payable in respect of the principal
        amount of such Securities as interest, for all U.S. federal income tax purposes.
        All payments in respect of the Securities will be made free and clear of
        U.S.
        withholding tax to any beneficial owner thereof that has provided an Internal
        Revenue Service Form W-9 or W-8BEN (or any substitute or successor form)
        establishing its U.S. or non-U.S. status for U.S. federal income tax purposes,
        or any other applicable form establishing a complete exemption from U.S.
        withholding tax.

       

      SECTION
        10.10. Financial
        Covenant Deposit.

    

     

    
      
        
        

      

      
        -57-

        
          

        

      

      
        
        

      

    

     

    
      (a) The
        Company hereby pledges and assigns to the Trustee for the benefit of the
        Holders
        of the Securities, as security for all payments required under this Indenture
        with respect to the Securities and the performance of all other terms,
        conditions and covenants of this Indenture on the Company’s part to be paid and
        performed, all of Company’s right, title and interest in and to the Financial
        Covenant Deposit. The Financial Covenant Deposit shall be under the sole
        dominion and control of Trustee for the benefit of the Holders of the
        Securities.

       

    

    
      (b) Upon
        the occurrence of an
        Event of Default or the failure of the Company to make any payments required
        under this Indenture, whether or not such failure shall be deemed an Event
        of
        Default pursuant to the terms hereof, the Trustee shall have the right to
        apply
        all or any part of the Financial Covenant Deposit to any payments required
        on
        the Company’s part under this Indenture with respect to the
        Securities.

       

      (c) Upon
        receipt of a written
        certification and notice from the Company to the Trustee, the Holders and
        the
        holders of the Preferred Securities that (1) the Company has cured a previously
        existing Event of Default (under Section 10.7(a), (b) or (c) hereof) as
        described in Section 10.7(d) hereof and (2) no Event of Default exists or
        is continuing, the holders of the Preferred Securities, if such holders have
        received such notice and certification, shall within 30 days after receipt
        thereof review such certification and confirm or object to the matters therein.
        If confirming such matters, the holders of majority in aggregate liquidation
        amount of the Preferred Securities shall promptly provide written instructions
        to the Trustee, instructing the Trustee to promptly return the Financial
        Covenant Deposit to the Company (less any amounts as may have been applied
        to
        payments by the Company required hereunder), and the Trustee shall promptly
        return such Deposit within 5 Business Days following receipt of such
        instructions. In the event that the holders of the Preferred Securities object
        to the matters set forth in the certification, the holders of a majority
        in
        aggregate liquidation amount of the Preferred Securities shall provide written
        notice to the Company, the Holders and the Trustee thereof and the reasons
        therefor and the Financial Covenant Deposit shall not be returned. If the
        holders of the Preferred Securities have received such notice and certification,
        but have failed to respond either confirming or objecting to the matters
        contained therein during the 30-day period following receipt thereof, the
        Trustee shall apply funds comprising the Financial Covenant Deposit to the
        interest payments required under this Indenture until such funds have been
        depleted.

    

     

    (d) All
      interest, if any, on the Financial Covenant Deposit shall accrue and shall
      be
      deemed to be a part of the Financial Covenant Deposit.

     

    ARTICLE
      XI

     

    REDEMPTION
      OF SECURITIES

     

    
      SECTION
        11.1. Redemption
        at Option of Company.

       

      (a) Optional
        Redemption. 

       

      The
        Company (on behalf of itself and Reading NZ) may, at its option, on any Interest
        Payment Date, on or after the expiration of the No Call Period, redeem the
        Securities in whole at any time or in part from time to time, at a Redemption
        Price equal to one hundred percent (100%) of the principal amount thereof
        (or of
        the redeemed portion thereof, as applicable), together, in the case of any
        such
        redemption, with accrued and unpaid interest, including any Additional Interest,
        through but excluding the date fixed as the Redemption Date (the “Optional
        Redemption Price”).

    

     

    
      
        
        

      

      
        -58-

        
          

        

      

      
        
        

      

    

     

    (b) Special
      Event Redemption. 

     

    During
      the No Call Period, upon the occurrence and during the continuation of a Special
      Event, the Company (on behalf of itself and Reading NZ) may, at its option,
      redeem the Securities, in whole but not in part, at a Redemption Price equal
      to
      one hundred seven and one half percent (107.5%) of the principal amount thereof,
      together, in the case of any such redemption, with accrued interest, including
      any Additional Interest, through but excluding the date fixed as the Redemption
      Date (the “Special
      Redemption Price”). 

     

    SECTION
      11.2. Redemption
      at Option of Holders.

     

    (a) Change
      of
      Control Redemption.

     

    The
      Company (on behalf of itself and Reading NZ) shall, upon receipt during the
      Notice Period from holders of at least twenty-five percent (25%) in aggregate
      Liquidation Amount of Preferred Securities of a Change of Control Election
      with
      respect to a Change of Control, redeem the Electing Securities, on a date no
      more than thirty (30) days following the end of the Notice Period, at the
      Optional Redemption Price; provided
      that
      the
      Company shall redeem the Electing Securities only if the Redemption Date is
      on
      or after the expiration of the No Call Period.

     

    (b) Fixed
      Charge Coverage Ratio Failure to Cure Redemption.

     

    The
      Company shall, upon receipt of thirty (30) days written notice to the Company
      from holders of Preferred Securities following the Company’s failure to cure the
      Fixed Charge Coverage Ratio in accordance with Section
      10.7(c)
      hereof,
      redeem their respective Securities in accordance with the following: (i) if
      during the period from the first anniversary of Original Issue Date through
      the
      second anniversary thereof, at a Redemption Price equal to one hundred three
      percent (103%) of the principal amount thereof, together, in the case of any
      such redemption, with accrued interest, including any Additional Interest,
      through but excluding the date fixed as the Redemption Date, (ii) if during
      the
      period from the second anniversary of Original Issue Date through the third
      anniversary thereof, at a Redemption Price equal to one hundred two percent
      (102%) of the principal amount thereof, together, in the case of any such
      redemption, with accrued interest, including any Additional Interest, through
      but excluding the date fixed as the Redemption Date, (iii) if during the period
      from the third anniversary of Original Issue Date
      through the fourth anniversary thereof, at a Redemption Price equal to one
      hundred one percent (101%) of the principal amount thereof, together, in the
      case of any such redemption, with accrued interest, including any Additional
      Interest, through but excluding the date fixed as the Redemption Date, and
      (iv)
      at any time thereafter, at a Redemption Price equal to one hundred percent
      (100%) of the principal amount thereof, together, in the case of any such
      redemption, with accrued interest, including any Additional Interest, through
      but excluding the date fixed as the Redemption Date

     

    SECTION
      11.3. Election to Redeem; Notice to Trustee.

     

    The
      election of the Company (on behalf of itself and Reading NZ) to redeem any
      Securities, in whole or in part, shall be evidenced by or pursuant to a Board
      Resolution of each of Reading NZ and the Company. In case of any redemption
      at
      the election of the Company, the Company shall, not less than forty-five (45)
      days and not more than seventy-five (75) days prior to the Redemption Date
      (unless a shorter notice shall be satisfactory to the Trustee), notify the
      Trustee and the Property Trustee under the Trust Agreement in writing of such
      date and of the 

     

    
      
        
        

      

      
        -59-

        
          

        

      

      
        
        

      

    

    principal
      amount of the Securities to be redeemed and provide the additional information
      required to be included in the notice or notices contemplated by Section
      11.5.
      In the
      case of any redemption of Securities, in whole or in part, (a) prior to the
      expiration of any restriction on such redemption provided in this Indenture
      or
      the Securities or (b) pursuant to an election of the Company which is subject
      to
      a condition specified in this Indenture or the Securities, the Company shall
      furnish the Trustee with an Officers’ Certificate and an Opinion of Counsel
      evidencing compliance with such restriction or condition.

     

    SECTION
      11.4. Selection
      of Securities to be Redeemed.

     

    (a) If
      less
      than all the Securities are to be redeemed, the particular Securities to be
      redeemed shall be selected and redeemed on a pro rata basis not more than sixty
      (60) days prior to the Redemption Date by the Trustee from the Outstanding
      Securities not previously called for redemption, provided,
      that the
      unredeemed portion of the principal amount of any Security shall be in an
      authorized denomination (which shall not be less than the minimum authorized
      denomination) for such Security.

     

    (b) 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 Security
      redeemed or to be redeemed only in part, to the portion of the principal amount
      of such Security that has been or is to be redeemed.

     

    (c) The
      provisions of paragraphs (a) and (b) of this Section
      11.4
      shall
      not apply with respect to any redemption affecting only a single Security,
      whether such Security is to be redeemed in whole or in part. In the case of
      any
      such redemption in part, the unredeemed portion of the principal amount of
      the
      Security shall be in an authorized denomination (which shall not be less than
      the
      minimum
      authorized denomination) for such Security.

     

    SECTION
      11.5. Notice
      of Redemption.

     

    (a) Notice
      of
      redemption shall be given not later than the thirtieth (30th) day, and not
      earlier than the sixtieth (60th) day, prior to the Redemption Date to each
      Holder of Securities to be redeemed, in whole or in part (unless a shorter
      notice shall be satisfactory to the Property Trustee under the related Trust
      Agreement).

     

    
      (b) With
        respect to Securities to be redeemed, in whole or in part, each notice of
        redemption shall state:

       

      (i) the
        Redemption Date;

       

      (ii) the
        Redemption Price or, if the Redemption Price cannot be calculated prior to
        the
        time the notice is required to be sent, the estimate of the Redemption Price,
        as
        calculated by the Company, together with a statement that it is an estimate
        and
        that the actual Redemption Price will be calculated on the fifth Business
        Day
        prior to the Redemption Date (and if an estimate is provided, a further notice
        shall be sent of the actual Redemption Price on the date that such Redemption
        Price is calculated);

       

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

      

        
          
            
            

          

          
            -60-

            
              

            

          

          
            
            

          

        

      

       

    

    (iv) that
      on
      the Redemption Date, the Redemption Price will become due and payable upon
      each
      such Security or portion thereof, and that any interest (including any
      Additional Interest) on such Security or such portion, as the case may be,
      shall
      cease to accrue on and after said date;

     

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

     

    (vi) Such
      other provisions as the Company deems relevant.

     

    (c) Notice
      of
      redemption of Securities to be redeemed, in whole or in part, at the election
      of
      the Company shall be given by the Company or, at the Company’s request, by the
      Trustee in the name and at the expense of the Company and shall be irrevocable.
      The notice if mailed in the manner provided above shall be conclusively presumed
      to have been duly given, whether or not the Holder receives such notice. In
      any
      case, a failure to give such notice by mail or any defect in the notice to
      the
      Holder of any Security designated for redemption as a whole or in part shall
      not
      affect the validity of the proceedings for the redemption of any other
      Security.

     

    SECTION
      11.6. Deposit
      of Redemption Price.

     

    Prior
      to
      10:00 a.m., New York City time, on the Redemption Date specified in the notice
      of redemption given as provided in Section
      11.5,
      the
      Company and Reading NZ will deposit with the Trustee or with one or more Paying
      Agents (or if the Company is acting as its own Paying Agent, the Company will
      segregate and hold in trust as provided in Section
      10.2)
      an
      amount of money sufficient to pay the Redemption Price of, and any accrued
      interest (including any Additional Interest) on, all the Securities (or portions
      thereof) that are to be redeemed on that date.

     

    SECTION
      11.7. Payment
      of Securities Called for Redemption.

     

    (a) If
      any
      notice of redemption has been given as provided in Section
      11.5,
      the
      Securities or portion of Securities with respect to which such notice has been
      given shall become due and payable on the date and at the place or places stated
      in such notice at the applicable Redemption Price, together with accrued
      interest (including any Additional Interest) to the Redemption Date. On
      presentation and surrender of such Securities at a Place of Payment specified
      in
      such notice, the Securities or the specified portions thereof shall be paid
      and
redeemed
      by the Company at the applicable Redemption Price, together with accrued
      interest (including any Additional Interest) to the Redemption Date.
       

      (b) Upon
        presentation of any Security redeemed in part only, the Company and Reading
        NZ
        shall execute and the Trustee shall authenticate and deliver to the Holder
        thereof, at the expense of the Company and Reading NZ, a new Security or
        Securities, of authorized denominations, in aggregate principal amount equal
        to
        the unredeemed portion of the Security so presented and having the same Original
        Issue Date, Stated Maturity and terms.

       

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

    

    
      
        
        

      

      
        -61-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      XII

     

    SUBORDINATION
      OF SECURITIES

     

    SECTION
      12.1. Securities
      Subordinate to Senior Debt.

     

    The
      Company and Reading NZ covenant and agree, and each Holder of a Security, by
      its
      acceptance thereof, likewise covenants and agrees, that, to the extent and
      in
      the manner hereinafter set forth in this Article
      XII,
      the
      payment of the principal of and any premium and interest (including any
      Additional Interest) on each and all of the Securities are hereby expressly
      made
      subordinate and subject in right of payment to the prior payment in full of
      all
      Senior Debt, except as otherwise provided in Section 4.2.

     

    SECTION
      12.2. No
      Payment When Senior Debt in Default; Payment Over of Proceeds Upon Dissolution,
      Etc.

     

    (a) In
      the
      event and during the continuation of any default by the Company in the payment
      of any principal of or any premium or interest on any Senior Debt (following
      any
      grace period, if applicable) when the same becomes due and payable, whether
      at
      maturity or at a date fixed for prepayment or by declaration of acceleration
      or
      otherwise, then, upon written notice of such default to the Company by the
      holders of such Senior Debt or any trustee therefor, unless and until such
      default shall have been cured or waived or shall have ceased to exist, no direct
      or indirect payment (in cash, property, securities, by set-off or otherwise)
      shall be made or agreed to be made on account of the principal of or any premium
      or interest (including any Additional Interest) on any of the Securities, or
      in
      respect of any redemption, repayment, retirement, purchase or other acquisition
      of any of the Securities.

     

    (b) In
      the
      event of a bankruptcy, insolvency or other proceeding described in clause (d)
      or
      (e) of the definition of Event of Default (each such event, if any, herein
      sometimes referred to as a “Proceeding”),
      all
      Senior Debt (including any interest thereon accruing after the commencement
      of
      any such proceedings) shall first be paid in full before any payment or
      distribution, whether in cash, securities or other property, shall be made
      to
      any Holder of any of the Securities on account thereof. Any payment or
      distribution, whether in cash, securities or other property (other than
      securities of the Company or any other entity provided for by a plan of
      reorganization or readjustment the payment of which is subordinate, at least
      to
      the extent provided in these subordination provisions with respect to the
      indebtedness evidenced by the Securities, to the payment of all Senior Debt
      at
      the time outstanding and to any securities issued in respect thereof under
      any
      such plan of reorganization or readjustment), which would otherwise (but
      for
      these subordination provisions) be payable or deliverable in respect of the
      Securities shall be paid or delivered directly to the holders of Senior Debt
      in
      accordance with the priorities then existing among such holders until all Senior
      Debt (including any interest thereon accruing after the commencement of any
      Proceeding) shall have been paid in full.
       

      (c) In
        the
        event of any Proceeding, after payment in full of all sums owing with respect
        to
        Senior Debt, the Holders of the Securities, together with the holders of
        any
        obligations of the Company ranking on a parity with the Securities, shall
        be
        entitled to be paid from the remaining assets of the Company the amounts
        at the
        time due and owing on account of unpaid principal of and any premium and
        interest (including any Additional Interest) on the Securities and such other
        obligations before any payment or other distribution, whether in cash, property
        or otherwise, shall be made on account of any capital stock or any obligations
        of the Company ranking junior to the Securities and such other obligations.
        If,
        notwithstanding the foregoing, 

    

    
      
        
        

      

      
        -62-

        
          

        

      

      
        
        

      

    

    any
      payment or distribution of any character or any security, whether in cash,
      securities or other property (other than securities of the Company or any other
      entity provided for by a plan of reorganization or readjustment the payment
      of
      which is subordinate, at least to the extent provided in these subordination
      provisions with respect to the indebtedness evidenced by the Securities, to
      the
      payment of all Senior Debt at the time outstanding and to any securities issued
      in respect thereof under any such plan of reorganization or readjustment) shall
      be received by the Trustee or any Holder in contravention of any of the terms
      hereof and before all Senior Debt shall have been paid in full, such payment
      or
      distribution or security shall be received in trust for the benefit of, and
      shall be paid over or delivered and transferred to, the holders of the Senior
      Debt at the time outstanding in accordance with the priorities then existing
      among such holders for application to the payment of all Senior Debt remaining
      unpaid, to the extent necessary to pay all such Senior Debt (including any
      interest thereon accruing after the commencement of any Proceeding) in full.
      In
      the event of the failure of the Trustee or any Holder to endorse or assign
      any
      such payment, distribution or security, each holder of Senior Debt is hereby
      irrevocably authorized to endorse or assign the same.

     

    (d) The
      Trustee and the Holders, at the expense of the Company, shall take such
      reasonable action (including the delivery of this Indenture to an agent for
      any
      holders of Senior Debt or consent to the filing of a financing statement with
      respect hereto) as may, in the opinion of counsel designated by the holders
      of a
      majority in principal amount of the Senior Debt at the time outstanding, be
      necessary or appropriate to assure the effectiveness of the subordination
      effected by these provisions.

     

    (e) The
      provisions of this Section
      12.2
      shall
      not impair any rights, interests, remedies or powers of any secured creditor
      of
      the Company in respect of any security interest the creation of which is not
      prohibited by the provisions of this Indenture.

     

    (f) The
      securing of any obligations of the Company, otherwise ranking on a parity with
      the Securities or ranking junior to the Securities, shall not be deemed to
      prevent such obligations from constituting, respectively, obligations ranking
      on
      a parity with the Securities or ranking junior to the Securities.

     

    SECTION
      12.3. Payment
      Permitted If No Default.

     

    Nothing
      contained in this Article
      XII
      or
      elsewhere in this Indenture or in any of the Securities shall prevent (a) the
      Company, at any time, except during the pendency of the conditions described
      in
      paragraph (a) of Section
      12.2
      or of
      any Proceeding referred to in Section
      12.2,
      from
      making payments at any time of principal of and any premium or interest
      (including any Additional Interest) on the Securities or (b) the application
      by
      the Trustee of any moneys deposited with it hereunder to the payment of or
      on
      account of the principal of and any premium or
      interest (including any Additional Interest) on the Securities or the retention
      of such payment by the Holders, if, at the time of such application by the
      Trustee, it did not have knowledge (in accordance with Section
      12.8)
      that
      such payment would have been prohibited by the provisions of this Article
      XII,
      except
      as provided in Section
      12.8.
       

      SECTION
        12.4. Subrogation
        to Rights of Holders of Senior Debt.

       

      Subject
        to the payment in full of all amounts due or to become due on all Senior
        Debt,
        or the provision for such payment in cash or cash equivalents or otherwise
        in a
        manner satisfactory to the holders of Senior Debt, the Holders of the Securities
        shall be subrogated to the extent of the payments or distributions made to
        the
        holders of such Senior Debt pursuant to the provisions of this Article
        XII
        (equally
        and ratably with the holders of all indebtedness of the Company that by its
        express terms is subordinated to Senior Debt of the Company to substantially
        the
        same 

    

     

    
      
        
        

      

      
        -63-

        
          

        

      

      
        
        

      

    

    extent
      as
      the Securities are subordinated to the Senior Debt and is entitled to like
      rights of subrogation by reason of any payments or distributions made to holders
      of such Senior Debt) to the rights of the holders of such Senior Debt to receive
      payments and distributions of cash, property and securities applicable to the
      Senior Debt until the principal of and any premium and interest (including
      any
      Additional Interest) on the Securities shall be paid in full. For purposes
      of
      such subrogation, no payments or distributions to the holders of the Senior
      Debt
      of any cash, property or securities to which the Holders of the Securities
      or
      the Trustee would be entitled except for the provisions of this Article
      XII,
      and no
      payments made pursuant to the provisions of this Article
      XII
      to the
      holders of Senior Debt by Holders of the Securities or the Trustee, shall,
      as
      among the Company, its creditors other than holders of Senior Debt, and the
      Holders of the Securities, be deemed to be a payment or distribution by the
      Company to or on account of the Senior Debt.

     

    SECTION
      12.5. Provisions
      Solely to Define Relative Rights.

     

    The
      provisions of this Article
      XII
      are and
      are intended solely for the purpose of defining the relative rights of the
      Holders of the Securities on the one hand and the holders of Senior Debt on
      the
      other hand. Nothing contained in this Article
      XII
      or
      elsewhere in this Indenture or in the Securities is intended to or shall (a)
      impair, as between the Company and the Holders of the Securities, the
      obligations of the Company, which are absolute and unconditional, to pay to
      the
      Holders of the Securities the principal of and any premium and interest
      (including any Additional Interest) on the Securities as and when the same
      shall
      become due and payable in accordance with their terms, (b) affect the relative
      rights against the Company of the Holders of the Securities and creditors of
      the
      Company other than their rights in relation to the holders of Senior Debt or
      (c)
      prevent the Trustee or the Holder of any Security (or to the extent expressly
      provided herein, the holder of any Preferred Security) from exercising all
      remedies otherwise permitted by applicable law upon default under this
      Indenture, including filing and voting claims in any Proceeding, subject to
      the
      rights, if any, under this Article
      XII
      of the
      holders of Senior Debt to receive cash, property and securities otherwise
      payable or deliverable to the Trustee or such Holder.

     

    SECTION
      12.6. Trustee
      to Effectuate Subordination.

     

    Each
      Holder of a Security by his or her acceptance thereof authorizes and directs
      the
      Trustee on his or her behalf to take such action as may be necessary or
      appropriate to acknowledge or effectuate the subordination provided in this
      Article
      XII
      and
      appoints the Trustee his or her attorney-in-fact for any and all such
      purposes.

     

    SECTION
      12.7. No
      Waiver of Subordination Provisions.

    

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

      

        (b) Without
          in any way limiting the generality of paragraph (a) of this Section
          12.7,
          the
          holders of Senior Debt may, at any time and from to time, without the consent
          of
          or notice to the Trustee or the Holders of the Securities, without incurring
          responsibility to such Holders of the Securities and without impairing
          or
          releasing the subordination provided in this Article
          XII
          or the
          obligations hereunder of such Holders of the Securities to the holders
          of Senior
          Debt, do any one or more of the following: (i) change the manner, place
          or terms
          of payment or extend the 

        

        
          
            
              
              

            

            
              -64-

              
                

              

            

            
              
              

            

          

        

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

      

    

     

    SECTION
      12.8. Notice
      to Trustee.

     

    (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
      to or by the Trustee in respect of the Securities. Notwithstanding the
      provisions of this Article
      XII
      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 to or by the Trustee in respect of the Securities, unless and until
      a
      Responsible Officer of the Trustee shall have received written notice thereof
      from the Company or a holder of Senior Debt or from any trustee, agent or
      representative therefor; provided, that if the Trustee shall not have received
      the notice provided for in this Section
      12.8
      at least
      two (2) Business Days prior to the date upon which by the terms hereof any
      monies may become payable for any purpose (including, the payment of the
      principal of and any premium on or interest (including any Additional Interest)
      on any Security), then, anything herein contained to the contrary
      notwithstanding, the Trustee shall have full power and authority to receive
      such
      monies and to apply the same to the purpose for which they were received and
      shall not be affected by any notice to the contrary that may be received by
      it
      within two Business Days prior to such date.

     

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

     

    SECTION
      12.9. Reliance
      on Judicial Order or Certificate of Liquidating Agent.

    

      Upon
        any
        payment or distribution of assets of the Company referred to in this
Article
        XII,
        the
        Trustee and the Holders of the Securities shall be entitled to conclusively
        rely
        upon any order or decree entered by any court of competent jurisdiction in
        which
        such Proceeding is pending, or a certificate of the trustee in bankruptcy,
        receiver, liquidating trustee, custodian, assignee for the benefit of creditors,
        agent or other Person making such payment or distribution, delivered to the
        Trustee or to the Holders of Securities, for the purpose of ascertaining
        the
        Persons entitled to participate in such payment or distribution, the holders
        of
        the Senior Debt 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
        XII.

       

      
        SECTION
          12.10. Trustee
          Not Fiduciary for Holders of Senior Debt.

      

    

    
      
        
        

      

      
        -65-

        
          

        

      

      
        
        

      

    

     

    The
      Trustee, in its capacity as trustee under this Indenture, shall not be deemed
      to
      owe any fiduciary duty to the holders of Senior Debt and shall not be liable
      to
      any such holders if it shall in good faith mistakenly pay over or distribute
      to
      Holders of Securities or to the Company or to any other Person cash, property
      or
      securities to which any holders of Senior Debt shall be entitled by virtue
      of
      this Article
      XII
      or
      otherwise.

     

    SECTION
      12.11. Rights
      of Trustee as Holder of Senior Debt; Preservation of Trustee’s
      Rights.

     

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

     

    SECTION
      12.12. Article
      Applicable to Paying Agents.

     

    If
      at any
      time any Paying Agent other than the Trustee shall have been appointed by the
      Company and be then acting hereunder, the term “Trustee” as used in this
Article
      XII
      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
      XII
      in
      addition to or in place of the Trustee; provided, that Sections
      12.8 and
      12.11
      shall
      not apply to the Company or any Affiliate of the Company if the Company or
      such
      Affiliate acts as Paying Agent.

     

    ARTICLE
      XIII

     

    DEFEASANCE

     

    SECTION
      13.1. Defeasance
      and Discharge.

     

    The
      Company (on behalf of itself and Reading NZ) shall, upon receipt during the
      Notice Period from holders of at least twenty-five percent (25%) in aggregate
      Liquidation Amount of Preferred Securities of a Change of Control Election
      with
      respect to a Change of Control, satisfy the conditions set forth in Section
      13.2
      with respect to the Electing Securities, on a date no more than thirty (30)
      days
      following the end of the Notice Period if, after applying the requirements
      of
      Section 11.2 to redeem the Electing Securities no later than thirty (30) days
      following the end of the Notice Period, the Electing Securities would be
      redeemed prior to the expiration of the No Call Period. The Company and Reading
      NZ shall be deemed to have been discharged from its obligations with respect
      to
      the Outstanding Securities as provided in this Section
      13.1
      on and
      after the date the conditions set forth in Section
      13.2
      are
      satisfied (referred to herein as “Defeasance”).
      For
      this purpose, such Defeasance means that the Company and Reading NZ shall be
      deemed to have paid and discharged the entire indebtedness represented by the
      Outstanding Securities and to have satisfied all of its other obligations under
      the Securities and this Indenture insofar as the Securities are concerned (and
      the Trustee, upon Company Request and at the expense of the Company and Reading
      NZ, shall execute proper instruments acknowledging the same), subject to the
      following, which shall survive until otherwise terminated or discharged
      hereunder: (1) the rights of Holders of the Securities to receive, solely from
      the trust fund described in Section
      13.2
      and as
      more fully set forth in such Section
      13.2,
      payments in respect of the principal of, premium, if any, and interest on the
      Securities when payments are due, (2) the Company’s and Reading NZ’s obligations
      with respect to the Securities under Sections 2.4,
      3.5,
      3.6,
      10.2
      and any
      additional Tax Sums under Section
      10.5,
      

     

    
      
        
        

      

      
        -66-

        
          

        

      

      
        
        

      

    

    (3) the
      rights, powers, trusts, duties and immunities of the Trustee hereunder and
      (4)
      this Article XIII.
      

     

    SECTION
      13.2. Conditions
      to Defeasance. 

     

    The
      following shall be the conditions to application of Section
      13.1
      to the
      Outstanding Securities:

     

    (1) The
      Company and Reading NZ shall irrevocably have deposited or caused to be
      deposited with the Trustee (or another trustee that satisfies the requirements
      contemplated by Section
      6.1
      and
      agrees to comply with the provisions of this Article
      XIII
      applicable to it) as trust funds in trust for the purpose of making the
      following payments, specifically pledged as security for, and dedicated solely
      to, the benefit of the Holders of Outstanding Securities, (A) money in an amount
      in Dollars, (B) Government Obligations that through the scheduled payment of
      principal and interest in respect thereof in accordance with their terms will
      provide, not later than one day before the due date of any payment, money in
      an
      amount in Dollars, or (C) a combination thereof, in each case 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, and which shall be applied by the Trustee (or any such other
      qualifying Trustee) to pay and discharge, one hundred percent (100%) of the
      principal amount of the Securities on December 30, 2011 (the “Defeasance
      Maturity Date”)
      plus
      interest on the Securities due and payable on the Interest Payment Dates
      occurring prior to and including the Defeasance Maturity Date. 

     

    (2) Such
      Defeasance shall not cause the Trustee to have a conflicting interest within
      the
      meaning of the Trust Indenture Act.

     

    (3) Such
      Defeasance shall not result in the trust arising from such deposit constituting
      an “investment company” within the meaning of the Investment Company Act of
      1940, unless such trust shall be qualified or exempt from regulation
      thereunder.

     

    (4) The
      Company shall have delivered to the Trustee an Officers’ Certificate and an
      Opinion of Counsel, each stating that all conditions precedent with respect
      to
      such Defeasance have been complied with.

     

    SECTION
      13.3.  Deposited
      Money and U.S. Government Obligations to be Held in Trust; Other Miscellaneous
      Provisions.

     

    
      Subject
        to the provisions of Section
        10.2(e),
        all
        money and Government Obligations (including the proceeds thereof) deposited
        with
        the Trustee or other qualifying trustee (solely for purposes of this
Section
        13.3
        and
Section
        13.4,
        the
        Trustee and any such other trustee are referred to collectively as the
“Trustee”)
        pursuant to Section
        13.2
        in
        respect of the Securities shall be held in trust and applied by the Trustee,
        in
        accordance with the provisions of the Securities and this Indenture, to the
        payment, either directly or through any such Paying Agent (including the
        Company
        acting as its own Paying Agent) as the Trustee may determine, to the Holders
        of
        the Securities, of all sums due and to become due thereon in respect of
        principal, premium, if any, and interest, but money so held in trust need
        not be
        segregated from other funds except to the extent required by law.

       

    

    
      Each
        of
        the Company and Reading NZ shall pay and indemnify the Trustee against any
        tax,
        fee or other charge imposed on or assessed against the Government Obligations
        

    

    
      
        
        

      

      
        -67-

        
          

        

      

      
        
        

      

    

    deposited
      pursuant to Section
      13.2
      or the
      principal and interest received in respect thereof other than any such tax,
      fee
      or other charge that by law is for the account of the Holders of Outstanding
      Securities.

     

    Anything
      in this Article
      XIII
      to the
      contrary notwithstanding, the Trustee shall deliver or pay to the Company from
      time to time upon Company Request any money or Government Obligations held
      by it
      as provided in Section
      13.2
      with
      respect to the Securities that, in the opinion of a nationally recognized firm
      of independent public accountants expressed in a written certification thereof
      delivered to the Trustee, are in excess of the amount thereof that would then
      be
      required to be deposited to effect an equivalent Defeasance with respect to
      the
      Securities.

     

    SECTION
      13.4. Reinstatement. 

     

    If
      the
      Trustee or the Paying Agent is unable to apply any money in accordance with
      this
      Article XIII with respect to the Securities by reason of any order or judgment
      of any court or governmental authority enjoining, restraining or otherwise
      prohibiting such application, then the Company’s obligations under this
      Indenture and the Securities shall be revived and reinstated as though no
      deposit had occurred pursuant to this Article
      XIII
      with
      respect to Securities until such time as the Trustee or Paying Agent is
      permitted to apply all money held in trust pursuant to Section
      13.3
      with
      respect to the Securities in accordance with this Article
      XIII;
      provided, however, that if the Company makes any payment of principal of,
      premium, if any, or interest on any Security following the reinstatement of
      its
      obligations, the Company shall be subrogated to the rights of the Holders of
      Securities to receive such payment from the money so held in trust.

     

    ****

     

    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. This instrument may be
      executed by any one or more of the parties hereto by facsimile. 

     

    
      
         

      

      
        -68-

        
          

        

      

      
         

      

    

     

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

      

        
          	 	 	
                  READING
                    INTERNATIONAL, INC. 

                
	 	 	 
	 	
                  By:

                	 
	 	 	
                  Name:

                
	 	 	
                  Title:

                
	 	 	 
	 	 	
                  READING
                    NEW ZEALAND, LIMITED

                
	 	 	 
	 	
                  By:

                	 
	 	 	
                  Name:

                
	 	 	
                  Title:

                
	 	 	 
	 	 	
                  WELLS
                    FARGO BANK, N.A.,
                    as Trustee

                
	 	 	 
	 	
                  By:

                	 
	 	 	
                  Name:

                
	 	 	
                  Title:

                

        

      

       

    

    
      
         

      

      
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    Junior
      Subordinated Indenture

     

    Schedule
      A 

     

    DETERMINATION
      OF LIBOR

     

    With
      respect to the Securities, the London interbank offered rate ("LIBOR")
      shall
      be determined by the Calculation Agent in accordance with the following
      provisions (in each case rounded to the nearest .000001%):

     

    (1) On
      the
      second LIBOR Business Day (as defined below) prior to an Interest Payment Date
      occurring after the expiration of the No Call Period (each such day, a
      "LIBOR
      Determination Date"),
      LIBOR
      for any given security shall for the following interest payment period equal
      the
      rate, as obtained by the Calculation Agent from Bloomberg Financial Markets
      Commodities News, for three-month Eurodollar deposits that appears on Dow Jones
      Telerate Page 3750 (as defined in the International Swaps and Derivatives
      Association, Inc. 1991 Interest Rate and Currency Exchange Definitions), or
      such
      other page as may replace such Page 3750, as of 11:00 a.m. (London time) on
      such
      LIBOR Determination Date.

     

    (2) If,
      on
      any LIBOR Determination Date, such rate does not appear on Dow Jones Telerate
      Page 3750 or such other page as may replace such Page 3750, the Calculation
      Agent shall determine the arithmetic mean of the offered quotations of the
      Reference Banks (as defined below) to leading banks in the London interbank
      market for three-month Eurodollar deposits in an amount determined by the
      Calculation Agent by reference to requests for quotations as of approximately
      11:00 a.m. (London time) on the LIBOR Determination Date made by the Calculation
      Agent to the Reference Banks. If, on any LIBOR Determination Date, at least
      two
      of the Reference Banks provide such quotations, LIBOR shall equal such
      arithmetic mean of such quotations. If, on any LIBOR Determination Date, only
      one or none of the Reference Banks provide such quotations, LIBOR shall be
      deemed to be the arithmetic mean of the offered quotations that leading banks
      in
      the City of New York selected by the Calculation Agent are quoting on the
      relevant LIBOR Determination Date for three-month Eurodollar deposits in an
      amount determined by the Calculation Agent by reference to the principal London
      offices of leading banks in the London interbank market; provided that, if
      the
      Calculation Agent is required but is unable to determine a rate in accordance
      with at least one of the procedures provided above, LIBOR shall be LIBOR as
      determined on the previous LIBOR Determination Date.

     

    (3) As
      used
      herein: "Reference
      Banks"
      means
      four major banks in the London interbank market selected by the Calculation
      Agent; and "LIBOR
      Business Day"
      means a
      day on which commercial banks are open for business (including dealings in
      foreign exchange and foreign currency deposits) in London.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Exhibit
      A

     

    Form
      of Officer’s Financial Certificate

     

    The
      undersigned, the [Chief Financial Officer/Treasurer/Assistant Treasurer/
      Secretary/ Assistant Secretary, Chairman/Vice Chairman/Chief Executive
      Officer/President/Vice President] hereby certifies, pursuant to Section 7.3(b)
      of the Junior Subordinated Indenture, dated as of February 5, 2007 (the
“Indenture”), among Reading International, Inc. (the “Company”), Reading New
      Zealand, Limited, and Wells Fargo Bank, N.A., as trustee, that, as of [date],
      [20__], the Company, if applicable, and its subsidiaries had the following
      ratios and balances:

     

    As
      of
      [Quarterly/Annual Financial Date], 20__:

     

    [insert
      calculation of covenants]

     

    [FOR
      FISCAL YEAR END: Attached hereto are the audited consolidated financial
      statements (including the balance sheet, income statement and statement of
      cash
      flows, and notes thereto, together with the report of the independent
      accountants thereon) of the Company and its consolidated subsidiaries for the
      three years ended [date], 20__.]

     

    [FOR
      FISCAL QUARTER END: Attached hereto are the unaudited consolidated and
      consolidating financial statements (including the balance sheet and income
      statement) of the Company and its consolidated subsidiaries for the fiscal
      quarter ended [date], 20__.]

     

    The
      financial statements fairly present in all material respects, in accordance
      with
      U.S. generally accepted accounting principles (“GAAP”), the financial position
      of the Company and its consolidated subsidiaries, and the results of operations
      and changes in financial condition as of the date, and for the [quarter]
      [annual] period ended [date], 20__, and such financial statements have been
      prepared in accordance with GAAP consistently applied throughout the period
      involved (expect as otherwise noted therein).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the undersigned has executed this Officer’s Financial
      Certificate as of this _____ day of ____, 200__

     

     

     

    READING
      INTERNATIONAL, INC.

    

    By:

    Name:

     

    Address:

    500
      Citadel Drive, Suite 300

    Commerce,
      California 90040

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