Document:

exv4w1

 

Exhibit 4.1

 

PRINCIPAL FINANCIAL GROUP, INC.

AND

THE BANK OF NEW YORK

Trustee

SENIOR INDENTURE

Dated as of October 11, 2006

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE ONE
	 	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	 	 	1	 
	 
	 	 	 	 	 	 
	SECTION 101.
	 	Definitions	 	 	1	 
	          Act	 	 	2	 
	          Affiliate	 	 	2	 
	          Authenticating Agent	 	 	2	 
	          Board of Directors	 	 	2	 
	          Board Resolution	 	 	2	 
	          Business Day	 	 	2	 
	          Commission	 	 	2	 
	          Company	 	 	2	 
	          Company Request and Company Order	 	 	2	 
	          Corporate Trust Office	 	 	3	 
	          corporation	 	 	3	 
	          Covenant Defeasance	 	 	3	 
	          Defaulted Interest	 	 	3	 
	          Defeasance	 	 	3	 
	          Depositary	 	 	3	 
	          Dollar	 	 	3	 
	          Event of Default	 	 	3	 
	          Exchange Act	 	 	3	 
	          Expiration Date	 	 	3	 
	          Foreign Currency	 	 	3	 
	          Global Security	 	 	3	 
	          Governmental Authority	 	 	3	 
	          Government Obligations	 	 	4	 
	          Guarantee	 	 	4	 
	          Guarantor	 	 	4	 
	          Holder	 	 	4	 
	          Indebtedness	 	 	4	 
	          Indenture	 	 	5	 
	          Interest Payment Date	 	 	5	 
	          Interest Rate	 	 	5	 
	          Investment Company Act	 	 	5	 
	          Lien	 	 	5	 
	          Maturity	 	 	5	 
	          Notice of Default	 	 	5	 
	          Officers’ Certificate	 	 	5	 
	          Opinion of Counsel	 	 	5	 
	          Original Issue Date	 	 	5	 
	          Original Issue Discount Security	 	 	5	 

i

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	          Outstanding	 	 	5	 
	          Paying Agent	 	 	6	 
	          Person	 	 	6	 
	          Place of Payment	 	 	7	 
	          Predecessor Security	 	 	7	 
	          Preferred Stock	 	 	7	 
	          Redemption Date	 	 	7	 
	          Redemption Price	 	 	7	 
	          Regular Record Date	 	 	7	 
	          Responsible Officer	 	 	7	 
	          Restricted Subsidiary	 	 	7	 
	          Securities or Security	 	 	7	 
	          Securities Act	 	 	8	 
	          Security Register and Security Registrar	 	 	8	 
	          Special Record Date	 	 	8	 
	          Stated Maturity	 	 	8	 
	          Subsidiary	 	 	8	 
	          Trust Indenture Act	 	 	8	 
	          Trustee	 	 	8	 
	          Vice President	 	 	8	 

	 	 	 	 	 	 	 
	SECTION 102.
	 	Compliance Certificates and Opinions	 	 	8	 
	SECTION 103.
	 	Form of Documents Delivered to Trustee	 	 	9	 
	SECTION 104.
	 	Acts of Holders; Record Dates	 	 	10	 
	SECTION 105.
	 	Notices, Etc., to Trustee and Company	 	 	12	 
	SECTION 106.
	 	Notice to Holders; Waiver	 	 	12	 
	SECTION 107.
	 	Conflict with Trust Indenture Act	 	 	13	 
	SECTION 108.
	 	Effect of Headings and Table of Contents	 	 	13	 
	SECTION 109.
	 	Successors and Assigns	 	 	13	 
	SECTION 110.
	 	Separability Clause	 	 	13	 
	SECTION 111.
	 	Benefits of Indenture	 	 	13	 
	SECTION 112.
	 	Governing Law; Waiver of Jury Trial	 	 	13	 
	SECTION 113.
	 	Legal Holidays	 	 	13	 
	SECTION 114.
	 	Computations	 	 	14	 
	 
	 	 	 	 	 	 
	ARTICLE TWO
	 	SECURITY FORMS	 	 	14	 
	 
	 	 	 	 	 	 
	SECTION 201.
	 	Forms Generally	 	 	14	 
	SECTION 202.
	 	Form of Legend for Global Securities	 	 	15	 
	SECTION 203.
	 	Form of Trustee’s Certificate of Authentication	 	 	15	 
	 
	 	 	 	 	 	 
	ARTICLE THREE
	 	THE SECURITIES	 	 	16	 
	 
	 	 	 	 	 	 
	SECTION 301.
	 	Title; Terms	 	 	16	 
	SECTION 302.
	 	Denominations	 	 	18	 
	SECTION 303.
	 	Execution, Authentication, Delivery and Dating	 	 	18	 
	SECTION 304.
	 	Temporary Securities	 	 	20	 
	SECTION 305.
	 	Registration, Registration of Transfer and Exchange	 	 	20	 
	SECTION 306.
	 	Mutilated, Destroyed, Lost and Stolen Securities	 	 	22	 

ii

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 307.
	 	Payment of Interest; Interest Rights Preserved	 	 	23	 
	SECTION 308.
	 	Persons Deemed Owners	 	 	24	 
	SECTION 309.
	 	Cancellation	 	 	25	 
	SECTION 310.
	 	Computation of Interest	 	 	25	 
	SECTION 311.
	 	CUSIP Numbers	 	 	25	 
	 
	 	 	 	 	 	 
	ARTICLE FOUR
	 	SATISFACTION AND DISCHARGE	 	 	25	 
	 
	 	 	 	 	 	 
	SECTION 401.
	 	Satisfaction and Discharge of Indenture	 	 	25	 
	SECTION 402.
	 	Application of Trust Money	 	 	27	 
	 
	 	 	 	 	 	 
	ARTICLE FIVE
	 	REMEDIES	 	 	27	 
	 
	 	 	 	 	 	 
	SECTION 501.
	 	Events of Default	 	 	27	 
	SECTION 502.
	 	Acceleration of Maturity; Rescission and Annulment	 	 	28	 
	SECTION 503.
	 	Collection of Indebtedness and Suits for Enforcement by Trustee	 	 	29	 
	SECTION 504.
	 	Trustee May File Proofs of Claim	 	 	30	 
	SECTION 505.
	 	Trustee May Enforce Claims Without Possession of Securities	 	 	31	 
	SECTION 506.
	 	Application of Money Collected	 	 	31	 
	SECTION 507.
	 	Limitation on Suits	 	 	31	 
	SECTION 508.
	 	Unconditional Right of Holders to Receive Principal, Premium and Interest	 	 	32	 
	SECTION 509.
	 	Restoration of Rights and Remedies	 	 	32	 
	SECTION 510.
	 	Rights and Remedies Cumulative	 	 	32	 
	SECTION 511.
	 	Delay or Omission Not Waiver	 	 	33	 
	SECTION 512.
	 	Control by Holders	 	 	33	 
	SECTION 513.
	 	Waiver of Past Defaults	 	 	33	 
	SECTION 514.
	 	Undertaking for Costs	 	 	34	 
	SECTION 515.
	 	Waiver of Usury, Stay or Extension Laws	 	 	34	 
	 
	 	 	 	 	 	 
	ARTICLE SIX
	 	THE TRUSTEE	 	 	34	 
	 
	 	 	 	 	 	 
	SECTION 601.
	 	Certain Duties and Responsibilities	 	 	34	 
	SECTION 602.
	 	Notice of Defaults	 	 	35	 
	SECTION 603.
	 	Certain Rights of Trustee	 	 	36	 
	SECTION 604.
	 	Not Responsible for Recitals or Issuance of Securities	 	 	38	 
	SECTION 605.
	 	May Hold Securities	 	 	38	 
	SECTION 606.
	 	Money Held in Trust	 	 	38	 
	SECTION 607.
	 	Compensation and Reimbursement	 	 	38	 
	SECTION 608.
	 	Disqualification; Conflicting Interests	 	 	39	 
	SECTION 609.
	 	Corporate Trustee Required; Eligibility	 	 	39	 
	SECTION 610.
	 	Resignation and Removal; Appointment of Successor	 	 	39	 
	SECTION 611.
	 	Acceptance of Appointment by Successor	 	 	41	 
	SECTION 612.
	 	Merger, Conversion, Consolidation or Succession to Business	 	 	42	 
	SECTION 613.
	 	Preferential Collection of Claims Against Company	 	 	42	 
	SECTION 614.
	 	Appointment of Authenticating Agent	 	 	43	 

iii

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE SEVEN
	 	HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY	 	 	44	 
	 
	 	 	 	 	 	 
	SECTION 701.
	 	Company to Furnish Trustee Names and Addresses of Holders	 	 	44	 
	SECTION 702.
	 	Preservation of Information; Communications to Holders	 	 	45	 
	SECTION 703.
	 	Reports by Trustee	 	 	45	 
	SECTION 704.
	 	Reports by Company	 	 	45	 
	 
	 	 	 	 	 	 
	ARTICLE EIGHT
	 	CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE	 	 	46	 
	 
	 	 	 	 	 	 
	SECTION 801.
	 	Company May Consolidate, Etc., Only on Certain Terms	 	 	46	 
	SECTION 802.
	 	Successor Corporation Substituted	 	 	47	 
	 
	 	 	 	 	 	 
	ARTICLE NINE
	 	SUPPLEMENTAL INDENTURES	 	 	47	 
	 
	 	 	 	 	 	 
	SECTION 901.
	 	Supplemental Indentures Without Consent of Holders	 	 	47	 
	SECTION 902.
	 	Supplemental Indentures With Consent of Holders	 	 	49	 
	SECTION 903.
	 	Execution of Supplemental Indentures	 	 	50	 
	SECTION 904.
	 	Effect of Supplemental Indentures	 	 	50	 
	SECTION 905.
	 	Conformity with Trust Indenture Act	 	 	50	 
	SECTION 906.
	 	Reference in Securities to Supplemental Indentures	 	 	50	 
	 
	 	 	 	 	 	 
	ARTICLE TEN
	 	COVENANTS	 	 	50	 
	 
	 	 	 	 	 	 
	SECTION 1001.
	 	Payment of Principal, Premium and Interest	 	 	50	 
	SECTION 1002.
	 	Maintenance of Office or Agency	 	 	51	 
	SECTION 1003.
	 	Money for Securities Payments to Be Held in Trust	 	 	51	 
	SECTION 1004.
	 	Statement by Officers as to Default	 	 	52	 
	SECTION 1005.
	 	Existence	 	 	53	 
	SECTION 1006.
	 	Payment of Taxes	 	 	53	 
	SECTION 1007.
	 	Limitation on Liens	 	 	53	 
	SECTION 1008.
	 	Waiver of Certain Covenants	 	 	53	 
	SECTION 1009.
	 	Calculation of Original Issue Discount	 	 	54	 
	 
	 	 	 	 	 	 
	ARTICLE ELEVEN
	 	REDEMPTION OF SECURITIES	 	 	54	 
	 
	 	 	 	 	 	 
	SECTION 1101.
	 	Company’s Right of Redemption	 	 	54	 
	SECTION 1102.
	 	Applicability of Article	 	 	54	 
	SECTION 1103.
	 	Election to Redeem; Notice to Trustee	 	 	55	 
	SECTION 1104.
	 	Selection by Trustee of Securities to Be Redeemed	 	 	55	 
	SECTION 1105.
	 	Notice of Redemption	 	 	56	 
	SECTION 1106.
	 	Deposit of Redemption Price	 	 	56	 
	SECTION 1107.
	 	Securities Payable on Redemption Date	 	 	57	 
	SECTION 1108.
	 	Securities Redeemed in Part	 	 	57	 
	 
	 	 	 	 	 	 
	ARTICLE TWELVE
	 	DEFEASANCE AND COVENANT DEFEASANCE	 	 	57	 
	 
	 	 	 	 	 	 
	SECTION 1201.
	 	Company’s Option to Effect Defeasance or Covenant Defeasance	 	 	57	 

iv

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 1202.
	 	Defeasance and Discharge	 	 	57	 
	SECTION 1203.
	 	Covenant Defeasance	 	 	58	 
	SECTION 1204.
	 	Conditions to Defeasance or Covenant Defeasance	 	 	58	 
	SECTION 1205.
	 	Deposited Money and Government Obligations to Be Held in Trust; Miscellaneous Provisions	 	 	60	 
	SECTION 1206.
	 	Reinstatement	 	 	60	 
	SECTION 1207.
	 	Qualifying Trustee	 	 	61	 

v

 

 

CERTAIN SECTIONS OF THIS INDENTURE RELATING

TO SECTIONS 310 THROUGH 318,

INCLUSIVE OF THE TRUST INDENTURE ACT OF 1939:

			
	TRUST INDENTURE ACT SECTION
	 	INDENTURE SECTION
	SECTION 310(a)(1)
	 	609,610
	(a)(2)
	 	609
	(a)(3)
	 	NOT APPLICABLE
	(a)(4)
	 	NOT APPLICABLE
	(a)(5)
	 	609
	(b)
	 	608, 610
	SECTION 311(a)
	 	613
	(b)
	 	613
	SECTION 312(a)
	 	701, 702
	(b)
	 	702
	(c)
	 	702
	SECTION 313(a)
	 	703
	(b)
	 	703
	(c)
	 	703
	(d)
	 	703
	SECTION 314(a)
	 	704
	(a)(4)
	 	101,1004
	(b)
	 	NOT APPLICABLE
	(c)(1)
	 	102
	(c)(2)
	 	102
	(c)(3)
	 	NOT APPLICABLE
	(d)
	 	NOT APPLICABLE
	(e)
	 	102
	SECTION 315(a)
	 	601
	(b)
	 	602
	(c)
	 	601
	(d)
	 	601
	(e)
	 	514
	SECTION 316(a)
	 	101
	(a)(1)(a)
	 	502,512
	(a)(1)(b)
	 	513
	(a)(2)
	 	NOT APPLICABLE
	(b)
	 	508
	(c)
	 	104
	SECTION 317(a)(1)
	 	503
	(a)(2)
	 	504
	(b)
	 	1003
	SECTION 318(a)
	 	107

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

vi

 

 

     SENIOR INDENTURE, dated as of October 11, 2006, between Principal Financial Group, Inc., a
corporation duly organized and existing under the laws of the State of Delaware (herein called the
“Company”), having its principal office at 711 High Street, Des Moines, Iowa 50392, and The Bank of
New York, a New York banking corporation, as Trustee (herein called the “Trustee”).

RECITALS OF THE COMPANY

     The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its unsecured senior debt securities in one or more series (the
“Securities”) of substantially the tenor hereinafter provided, and to provide the terms and
conditions upon which the Securities are to be authenticated, issued and delivered; and all things
necessary to make the Securities, when executed by the Company and authenticated and delivered
hereunder and duly issued by the Company, the valid obligations of the Company, and to make this
Indenture a valid agreement of the Company, in accordance with its terms, have been done.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

SECTION 101. Definitions.

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

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

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

     (3) all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles, and, except as otherwise herein expressly
provided, the term “generally accepted accounting principles” with respect to any computation
required or permitted hereunder shall mean such accounting principles as are generally accepted at
the time of such computation; provided, that when two or more principles are so generally
accepted, it shall mean that set of principles consistent with those in use by the Company;

 

 

     (4) 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; and

     (5) the words “herein”, “hereinafter”, “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.

     “Act” when used with respect to any Holder, has the meaning specified in Section 104.

     “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.

     “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 614 to
act on behalf of the Trustee to authenticate Securities.

     “Board of Directors” means either the board of directors of the Company 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 to have been duly adopted by the Board of Directors or such committee of
the Board of Directors to which authority to act on behalf of the Board of Directors has been
delegated, and to be in full force and effect on the date of such certification, and delivered to
the Trustee.

     “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day
on which the Corporate Trust Office, banking institutions in New York, New York, Chicago, Illinois
or Des Moines, Iowa, or any Place of Payment are authorized or obligated by law or executive order
to close.

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

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

     “Company Request” and “Company Order” mean, respectively, a written request or order signed in
the name of the Company by (i) its Chairman, President, Chief Executive Officer or any Vice
President and (ii) its Treasurer, any Associate Treasurer,

2

 

any Assistant Treasurer, its Controller,
its Secretary or any Assistant Secretary, and delivered to the Trustee.

     “Corporate Trust Office” means the office of the Trustee at which at any particular time its
corporate trust business shall be principally administered, which office at the date hereof is
located at 2 North LaSalle Street, Suite 1020, Chicago, Illinois 60602, Attention: Corporate Trust
Administration, or such other address as the Trustee may designate from time to time by notice to
the Holders and the Company, or the principal corporate trust office of any successor Trustee (or
such other address as such successor Trustee may designate from time to time by notice to the
Holders and the Company).

     “corporation” means a corporation, association, company, joint-stock company or business
trust.

     “Covenant Defeasance” has the meaning specified in Section 1203.

     “Defaulted Interest” has the meaning specified in Section 307.

     “Defeasance” has the meaning specified in Section 1202.

     “Depositary” means the clearing agency registered under the Exchange Act that is designated by
the Company in Section 301 to act as depositary for any series of Securities with respect to such
series (or any successor to such clearing agency).

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

     “Event of Default,” unless otherwise specified with respect to Securities of a series pursuant
to Section 301, has the meaning specified in Section 501.

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

     “Expiration Date” has the meaning specified in Section 104.

     “Foreign Currency” means any currency issued by the government of one or more countries other
than the United States of America or by any recognized confederation or association of such
governments.

     “Global Security” means a Security that evidences all or part of a series of Securities issued
to the Depositary or its nominee for such series, and registered in the name of such Depositary or
its nominee and bearing the legend set forth in Section 202.

     “Governmental Authority” means any Federal, state, local or foreign court or governmental
agency, authority, instrumentality or regulatory body.

3

 

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

     “Guarantee”, when used with respect to the Securities of or within any series, means a
guarantee by the Guarantor of the obligations of the Company under such Securities, which guarantee
may be included in an indenture or indentures supplemental hereto or in a separate agreement.

     “Guarantor” means Principal Financial Services, Inc., an Iowa business corporation, and its
successors and assigns.

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

     “Indebtedness” of any person means the principal of and premium, if any, and interest due on
indebtedness of such Person, whether outstanding on the date of this Indenture or thereafter
created, incurred or assumed, whether recourse is to all or a portion of the assets of such Person
and whether or not contingent which is (a) indebtedness for money borrowed, and (b) any amendments,
renewals, extensions, modifications and refundings of any such indebtedness. For the purposes of
this definition, “indebtedness for money borrowed” means (i) any obligation of, or any obligation
guaranteed by, such Person for the repayment of borrowed money,
whether or not evidenced by bonds, debentures, notes or other written instruments, (ii) any
obligation of, or any such obligation guaranteed by, such Person evidenced by bonds, debentures,
notes or similar written instruments, including obligations assumed or incurred in connection with
the acquisition of property, assets or businesses (provided, however, that the
deferred purchase price of any property, assets or business shall not be considered Indebtedness if
the purchase price thereof is payable in full within 90 days from the date on which such
indebtedness was created), and (iii) any obligations of such Person as lessee under leases required
to be capitalized on the balance sheet of the lessee under generally accepted accounting principles
and leases of property or assets made as part of any sale and lease-back transaction to which such
Person is a party. Indebtedness does not include trade accounts payable or accrued liability
arising in the ordinary course of business.

4

 

     “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, and shall include the terms of each particular series of Securities
established as contemplated by Section 301, including, for all purposes of this instrument and any
such supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part
of and govern this instrument and any such supplemental indenture, respectively.

     “Interest Payment Date” means as to each series of Securities the Stated Maturity of an
installment of interest on such Securities.

     “Interest Rate” means the rate of interest specified or determined as specified in each
Security as being the rate of interest payable on such Security.

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

     “Lien” means any mortgage, pledge, lien, security interest or other encumbrance.

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

     “Notice of Default” means a written notice of the kind specified in Section 501(3).

     “Officers’ Certificate” means a certificate signed by (i) the Chairman, President, Chief
Executive Officer or any Vice President, and (ii) the Treasurer, any Associate Treasurer, any
Assistant Treasurer, the Controller, the Secretary or any Assistant Secretary, of the Company, and
delivered to the Trustee. One
of the officers signing an Officers’ Certificate given pursuant to Section 1004 shall be the
principal executive, financial or accounting officer of the Company.

     “Opinion of Counsel” means a written opinion of counsel, who may be counsel for (and an
employee of) the Company, and who shall be reasonably acceptable to the Trustee.

     “Original Issue Date” means the date of issuance specified as such in each Security.

     “Original Issue Discount Security” means any security which provides for an amount less than
the principal amount thereof to be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 502.

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

5

 

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

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

     (3) Securities which have been paid pursuant to Section 306 or in exchange for or in lieu of
which other Securities have been authenticated and delivered pursuant to this Indenture, other than
any such Securities in respect of which there shall have been presented to the Trustee proof
satisfactory to it that such Securities are held by Holders in whose hands such Securities are
valid, binding and legal obligations of the Company;

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given, made or taken any request, demand,
authorization, direction, notice, consent, waiver or other action hereunder as of any date, (A) the
principal amount of an Original Issue Discount Security which shall be deemed to be Outstanding
shall be the amount of the principal thereof which would be due and payable as of such date upon
acceleration of the Maturity thereof to such date pursuant to Section 502, (B) if, as of such date,
the principal amount payable at the Stated Maturity of a Security is not determinable, the
principal amount of such Security which shall be deemed to be Outstanding shall be the amount as
specified or determined as contemplated by Section 301, and (C) Securities beneficially owned by
the Company or any other obligor upon the Securities or any Affiliate of the Company or of such
other obligor shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in conclusively relying upon any such request,
demand, authorization, direction, notice, consent, waiver or other action, only Securities which a
Responsible Officer knows to be so owned shall be so disregarded. Securities so owned which have
been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that
the pledgee is not the Company or any other obligor upon the Securities or any Affiliate of the
Company or of such other obligor.

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

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

6

 

     “Place of Payment” means, with respect to the Securities of any series, the place or places
where the principal of and any premium and interest on the Securities of such series are payable as
specified as contemplated by Section 301.

     “Predecessor Security” of any particular Security means every previous Security evidencing all
or a portion of the same debt as that evidenced by such particular Security; and, for the purposes
of this definition, any Security authenticated and delivered under Section 306 in exchange for or
in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same
debt as the mutilated, destroyed, lost or stolen Security.

     “Preferred Stock” shall mean any capital stock entitled by its terms to a preference (a) as to
dividends or (b) upon a distribution of assets.

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

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

     “Regular Record Date” for the interest payable on any Interest Payment Date on the Securities
of a series means, unless otherwise provided pursuant to Section 301 with respect to Securities of
a series, the date which is fifteen days next preceding such Interest Payment Date (whether or not
a Business Day).

     “Responsible Officer” shall mean any officer within the corporate trust department of the
Trustee, including any vice president, assistant vice president, assistant secretary, assistant
treasurer, trust officer or any other officer of the Trustee who customarily performs functions
similar to those performed by the Persons who at the time shall be such officers, respectively, or
to whom any corporate trust matter is referred because of such person’s knowledge of and
familiarity with the particular subject and who shall have direct responsibility for the
administration of this Indenture.

     “Restricted Subsidiary” means Principal Life Insurance Company and any other Subsidiary which
is incorporated in any State of the United States or in the District of Columbia and which is a
regulated insurance company principally engaged in one or more of the life, annuity, property and
casualty insurance businesses, provided that no such Subsidiary, other than Principal Life
Insurance Company, shall be a Restricted Subsidiary if (i) the total assets of such Subsidiary are
less than 10% of the total assets of the Company and its consolidated Subsidiaries (including such
Subsidiary), in each case as set forth on the most recent fiscal year-end balance sheets of such
Subsidiary and the Company and its consolidated Subsidiaries, respectively, and computed in
accordance with generally accepted accounting principles, or (ii) in the judgment of the Board of
Directors, as evidenced by a Board Resolution, such Subsidiary is not material to the financial
condition of the Company and its consolidated Subsidiaries taken as a whole.

     “Securities” or “Security” means any debt securities or debt security, as the case may be,
authenticated and delivered under this Indenture.

7

 

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

     “Security Register” and “Security Registrar” have the respective meanings specified in Section
305.

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 307.

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

     “Subsidiary” means a corporation, partnership or other entity of which, at the time of
determination, more than 50% of the outstanding voting stock or equivalent interest is owned,
directly or indirectly, by the Company or by one or more other Subsidiaries, or by the Company and
one or more other Subsidiaries.

     For the purposes of this definition, “voting stock” means stock which ordinarily has voting
power for the election of directors, whether at all times or only so long as no senior class of
stock has such voting power by reason of any contingency.

     “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as of
which this instrument was executed; provided, however, that in the event the Trust
Indenture Act of 1939 is amended after such date, “Trust Indenture Act” means, to the extent
required by any such amendment, the Trust Indenture Act of 1939 as so amended.

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

     “Vice President” when used with respect to the Company or the Trustee, means any officer with
a title of “Vice President”, “Senior Vice President” or “Executive Vice President”.

SECTION 102. Compliance Certificates and Opinions.

     Upon any application or request by the Company to the Trustee to take any action under any
provision of this Indenture, the Company shall furnish to the Trustee such certificates and
opinions as may be required under the Trust Indenture Act. Each such certificate or opinion shall
be given in the form of an Officers’ Certificate, if to be given by an officer of the Company, or
an Opinion of Counsel, if to be given by counsel, and

8

 

shall comply with the requirements of the
Trust Indenture Act and any other requirements set forth in this Indenture. In the case of an
application or request as to which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or request, no additional
certificate or opinion need be furnished.

     Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (other than the certificates provided pursuant to Section 1004) shall
include:

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

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

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

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

SECTION 103. Form of Documents Delivered to Trustee.

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

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

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

9

 

SECTION 104. Acts of Holders; Record Dates.

     (a) 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 may be embodied in
and evidenced by one or more instruments of substantially similar tenor signed by such Holders in
person or by an agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments are delivered to
the Trustee and, where it is hereby expressly required, to the Company. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred
to as the “Act” of the Holders signing such instrument or instruments. Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient for any purpose of
this Indenture and (subject to Section 601) conclusive and may be relied upon by the Trustee, the
Company, and any agent of the Trustee or the Company, if made in the manner provided in this
Section.

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

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

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

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

     (f) The Company may, but shall not be obligated to, 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, provided
that the Company may not set a record date for, and the provisions of this paragraph shall not
apply with respect to, the giving or making of any notice, declaration, request or direction
referred to in the next paragraph. 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

10

 

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 below) 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 cancelled and of no effect), and nothing in this
paragraph shall be construed to render ineffective any action taken by Holders of the requisite
principal amount of Outstanding Securities on the date such action is taken. 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 106.

     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 referred to in Section 502, (iii) any request to institute
proceedings referred to in Section 507(2) or (iv) any direction referred to in Section 512. 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
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 cancelled and of no effect), and nothing in this
paragraph shall be construed to render ineffective any action taken by Holders of the requisite
principal amount of Outstanding Securities on the date such action is taken. Promptly after any
record date is set pursuant to this paragraph, the Trustee, at the Company’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
106.

     With respect to any record date set pursuant to this Section, the party hereto which sets such
record dates 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 106, 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, the party hereto which set such record date shall be deemed to
have initially designated the 180th 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 180th day after the
applicable record date.

11

 

     Without limiting the foregoing, a Holder entitled hereunder 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.

SECTION 105. Notices, Etc., to Trustee and Company.

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

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

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

     Neither the Company nor the Trustee shall be deemed to have received any such request, demand,
authorization, direction, notice, consent, waiver or Act of Holders unless given, furnished or
filed as provided in this Section 105.

SECTION 106. Notice to Holders; Waiver.

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

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

12

 

SECTION 107. Conflict with Trust Indenture Act.

     If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture
Act which is required under such Act to be a part of and govern this Indenture, the latter
provision shall control. If any provision of this Indenture modifies or excludes any provision of
the Trust Indenture Act which may be so modified or excluded, the latter provision shall be deemed
to apply to this Indenture as so modified or to be excluded, as the case may be.

SECTION 108. Effect of Headings and Table of Contents.

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

SECTION 109. Successors and Assigns.

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

SECTION 110. Separability Clause.

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

SECTION 111. Benefits of Indenture.

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

SECTION 112. Governing Law; Waiver of Jury Trial.

     This Indenture and the Securities shall be governed by and construed in accordance with the
laws of the State of New York, without regard to conflicts of laws principles thereof.

     EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THE INDENTURE, THE SECURITIES OR THE TRANSACTION CONTEMPLATED HEREBY.

SECTION 113. Legal Holidays.

     In any case where any Interest Payment Date, Redemption Date, Maturity or Stated Maturity of
any Security shall not be a Business Day, then (notwithstanding any

13

 

other provision of this
Indenture or of the Securities (other than a provision of any Security which specifically states
that such provision shall apply in lieu of this Section)) payment of interest or principal (and
premium, if any) need not be made on such date, but may be made on the next succeeding Business Day
with the same force and effect as if made on the Interest Payment Date or Redemption Date, or at
the Maturity or Stated Maturity and no interest shall accrue for the period from and after such
Interest Payment Date, Redemption Date, Maturity or Stated Maturity, as the case may be, if such
payment is made or duly provided for on the next succeeding Business Day, except that, if such
Business Day is in the next succeeding calendar year, such payment shall be made on the immediately
preceding Business Day.

SECTION 114. Computations.

     Unless otherwise specifically provided, the certificate or opinion of any independent firm of
public accountants of recognized standing selected by the Board of Directors shall be conclusive
evidence of the correctness of any computation made under the provisions of this Indenture. The
Company shall furnish to the Trustee upon its request a copy of any such certificate or opinion.

ARTICLE TWO

SECURITY FORMS

SECTION 201. Forms Generally.

     The Securities of each series shall be substantially in the form attached as Exhibit A, or in
such other form or forms as shall be established by or pursuant to a Board Resolution or in one or
more indentures supplemental hereto, in each case with such appropriate provisions as are required
or permitted by this Indenture, and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may be required to comply with applicable tax
laws or the rules of any securities exchange or Depositary therefor or as may, consistently
herewith, be determined by the officers executing such Securities, as evidenced by their execution
thereof. If the form of Securities of any series is established by action taken pursuant to a
Board Resolution, a copy of an appropriate record of such action shall be certified by the
Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior to the
delivery of the Company Order contemplated by Section 303 with respect to the authentication and
delivery of such Securities.

     The Trustee’s certificate of authentication shall be substantially in the form set forth in
this Article.

     The definitive Securities shall be printed, typewritten or 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.

14

 

     The Securities of each series will initially be issued in the form of one or more Global
Securities. Each such Global Security shall represent such of the Outstanding Securities of such
series as shall be specified therein and each shall provide that it shall represent the aggregate
amount of Outstanding Securities of such series from time to time endorsed thereon and that the
aggregate amounts of Outstanding Securities of such series represented thereby may from time to
time be reduced or increased, as appropriate. The Global Security or Securities evidencing the
Securities of a series (and all Securities issued in exchange therefore) shall bear the legend
indicated in Section 202.

SECTION 202. Form of Legend for Global Securities.

     Every Global Security authenticated and delivered hereunder shall, in addition to the
provisions contained in Exhibit A, bear a legend in substantially the following form:

     UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY 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 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.

     THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF DTC OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN
WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART
MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN DTC OR SUCH NOMINEE, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

SECTION 203. Form of Trustee’s Certificate of Authentication.

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

Certificate of Authentication

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

	 	 	 
	Dated:
	 	 
	 
	 	 
	 

	 	                                                            
	 

	 	as Trustee

15

 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

ARTICLE THREE

THE SECURITIES

SECTION 301. Title; Terms.

     The aggregate principal amount of Securities which may be authenticated and delivered under
this Indenture is unlimited.

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

     (a) the title of the securities of such series, which shall distinguish the Securities of the
series from all other Securities;

     (b) the limit, if any, upon the aggregate principal amount of the Securities of such series
which may be authenticated and delivered under this Indenture (except for Securities authenticated
and delivered upon registration or transfer of, or in exchange for, or in lieu of, other Securities
of the same series pursuant to Section 304, 305, 306, 906 or 1108 and except for any Securities
which, pursuant to Section 303, are deemed never to have been authenticated and delivered
hereunder); provided, however, that the authorized aggregate principal amount of
such series may be increased above such amount by a Board Resolution to such effect;

     (c) the Stated Maturity or Maturities on which the principal of the Securities of such series
is payable or the method of determination thereof;

     (d) the rate or rates, if any, at which the Securities of such series shall bear interest or
the method of determining such rate or rates, the Interest Payment Dates on which such interest
shall be payable, the right, if any, of the Company to defer or extend an Interest Payment Date,
the Regular Record Date (if other than as defined in this Indenture) for the interest payable on
any Interest Payment Date and the dates from which interest shall accrue and the method of
determining these dates;

     (e) the place or places where the principal of (and premium, if any) and interest on the
Securities of such series shall be payable, the place or places where the Securities of such series
may be presented for registration of transfer or exchange, and the place or places where notices
and demands to or upon the Company in respect of the Securities of such series may be made;

     (f) the period or periods within or the date or dates on which, if any, the price or prices at
which and the terms and conditions upon which the Securities of such series may be redeemed or
prepaid, in whole or in part, at the option of the Company;

16

 

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

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

     (i) if other than Dollars, the currency or currencies (including currency unit or units) in
which the principal of (and premium, if any) and interest, if any, on the Securities of the series
shall be payable, or in which the Securities of the series shall be denominated;

     (j) the additions, modifications or deletions, if any, in the Events of Default or covenants
of the Company set forth herein with respect to the Securities of such series;

     (k) if other than the principal amount thereof, the portion of the principal amount of
Securities of such series that shall be payable upon declaration of acceleration of the Maturity
thereof;

     (l) the additions or changes, if any, to this Indenture with respect to the Securities of such
series as shall be necessary to permit or facilitate the issuance of the Securities of such series
in bearer form, registrable or not registrable as to principal, and with or without interest
coupons;

     (m) any index or indices used to determine the amount of payments of principal of and premium,
if any, on the Securities of such series or the manner in which such amounts will be determined;

     (n) the issuance of a temporary Global Security representing all of the Securities of such
series and the terms upon which such temporary Global Security may be exchanged for definitive
Securities of such series;

     (o) whether the Securities of the series shall be issued in whole or in part in the form of
one or more Global Securities and, in such case, the identity of the Depositary for such Global
Securities;

     (p) the appointment of any Paying Agent or Agents for the Securities of such series;

     (q) the terms and conditions of any right or obligation on the part of the Company, or any
option on the part of the Holders, to convert or exchange Securities of such series into cash or
any other securities or property of the Company or any other Person, and the additions or changes,
if any, to this Indenture with respect to the Securities of such series to permit or facilitate
such conversion or exchange;

17

 

     (r) whether the Guarantor will guarantee the obligations of the Company under the Securities
of such series and if so, the specific form of such Guarantee or Guarantees, any related
modifications, amendments, supplements or deletions of any of the terms of this Indenture, and a
statement that the Guarantor shall be an “obligor” as such term is defined in and solely for
purposes of the Trust Indenture Act and shall be required to comply with those provisions of this
Indenture compliance with which is required by an “obligor” under the Trust Indenture Act; and

     (s) any other terms of the Securities of such series or any related Guarantee (which terms
shall not be inconsistent with the provisions of the Trust Indenture Act, but may modify, amend,
supplement or delete any of the terms of this Indenture with respect to such series), including any
terms which may be required by or advisable under United States laws or regulations or advisable
(as determined by the Company) in connection with the marketing of Securities of the series;

provided, that if the Guarantor will guarantee the obligations of the Company under the
Securities of a series, such matters shall be established in one or more indenture
supplements hereto to which the Company, the Guarantor and the Trustee shall be a party.

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

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

SECTION 302. Denominations.

     The Securities of each series shall be in registered form without coupons and shall be
issuable in denominations of $1,000 and any integral multiples thereof, unless otherwise specified
as contemplated by Section 301.

SECTION 303. Execution, Authentication, Delivery and Dating.

     The Securities shall be executed on behalf of the Company by its Chairman, President, Chief
Executive Officer or any Vice President. The signature of any of these officers on the Securities
may be manual or facsimile.

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

18

 

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities executed by the Company to the Trustee for authentication, together
with a Company Order for the authentication and delivery of such Securities, and the Trustee in
accordance with the Company Order shall authenticate and deliver such Securities.

     Notwithstanding the provisions of the preceding paragraph, if all Securities of a series are
not to be originally issued at one time, it shall not be necessary to deliver the Company Order
otherwise required pursuant to such preceding paragraph at or prior to the authentication of each
Security of such series if such Company Order is delivered at or prior to the authentication upon
original issuance of the first Security of such series to be issued.

     Each Security shall be dated the date of its authentication.

     No Security shall be entitled to any 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, and the Company shall deliver
such Security to the Trustee for cancellation as provided in Section 309, 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.

     Minor typographical and other minor errors in the text of any Security shall not affect the
validity and enforceability of such Security if it has been duly authenticated and delivered by the
Trustee.

     The Company shall execute and the Trustee shall authenticate and deliver one or more Global
Securities with respect to each series of Securities that (i) shall represent an aggregate amount
equal to the aggregate principal amount of the initially issued Securities of such series, (ii)
shall be registered in the name of the Depositary or the nominee of the Depositary, (iii) shall be
delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction and (iv)
shall bear a legend substantially in the form required in Section 202.

     The Trustee shall have the right to decline to authenticate and deliver any Securities under
this Section if the Trustee, being advised by counsel, determines in good faith that such action
may not lawfully be taken or if the Trustee in good faith shall determine that such action would
expose the Trustee to personal liability to existing Holders.

     The Depositary must, at all times while it serves as such Depositary, be a clearing agency
registered under the Exchange Act, and any other applicable statute or regulation.

19

 

Neither the Trustee nor any agent shall have any responsibility for any actions taken or
not taken by the Depositary.

SECTION 304. Temporary Securities.

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

     If temporary Securities of any series are issued, the Company will cause definitive Securities
of such series 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 in a Place of Payment without
charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities, the
Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like
principal amount of definitive Securities of the same series of authorized denominations and 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 305. Registration, Registration of Transfer and Exchange.

     The Company shall cause to be kept at the Corporate Trust Office a register (the register
maintained in such office or in any other office or agency of the Company in a Place of Payment
being herein sometimes referred to as the “Security Register”) in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration of Securities and
of transfers and exchanges of Securities. The Trustee is hereby appointed “Security Registrar” for
the purpose of registering Securities and transfers of Securities as herein provided.

     Upon surrender for registration of transfer of any Security at the office or agency of the
Company in a Place of Payment, the Company shall execute, and the Trustee shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more new Securities of the
same series of any authorized denominations and of a like tenor and aggregate principal amount, of
the same original Issue Date and Stated Maturity and having the same terms.

     Notwithstanding any other provision of this Section, unless and until it is exchanged in whole
or in part for the individual Securities represented thereby, a Global Security representing all or
a portion of the Securities may not be transferred except as a whole by the Depositary to a nominee
of such Depositary, or by a nominee of such Depositary to such Depositary or another nominee of
such Depositary, or by such

20

 

Depositary or any such nominee to a successor Depositary or nominee of such successor
Depositary.

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

     If at any time the Depositary notifies the Company that it is unwilling or unable to continue
as Depositary or if at any time the Depositary shall cease to be a clearing agency registered under
the Exchange Act as provided in Section 303, the Company shall appoint a successor Depositary. If
a successor Depositary is not appointed by the Company within 90 days after the Company receives
such notice or becomes aware of such ineligibility, the Company will execute, and the Trustee, upon
receipt of a Company Order for the authentication and delivery of individual Securities, will
authenticate and make available for delivery, individual Securities in an aggregate principal
amount equal to the principal amount of the Global Security or Securities representing the
Securities in exchange for such Global Security or Securities.

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

     The Depositary may surrender a Global Security in exchange in whole or in part for individual
Securities on such terms as are acceptable to the Company, the Trustee and such Depositary.
Thereupon, the Company shall execute, and the Trustee shall authenticate and make available for
delivery, without service charge:

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

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

     Upon the exchange of a Global Security for individual Securities in an aggregate principal
amount equal to the principal amount of such Global Security, such Global

21

 

Security shall be canceled by the Trustee. Individual Securities issued in exchange for a
Global Security pursuant to this Section shall be registered in such names and in such authorized
denominations as the Depositary for such Global Security, pursuant to instructions from its direct
or indirect participants or otherwise, shall instruct the Trustee. The Trustee shall make
available for delivery such individual Securities to the Persons in whose names such Securities are
so registered.

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

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

     No service charge shall be made to a Holder for any registration of transfer or exchange of
Securities, but the Company may require payment of a sum sufficient to cover any tax, assessment or
other governmental charge that may be imposed in connection with any registration of transfer or
exchange of Securities, other than exchanges pursuant to Section 304, 906 or 1108 not involving any
transfer.

     Neither the Company nor the Trustee shall be required, pursuant to the provisions of this
Section: (i) to issue, register the transfer of or exchange any Security of any series during a
period beginning at the opening of business 15 Business Days before the day of the mailing of a
notice of redemption of any such Securities selected for redemption of Securities pursuant to
Article Eleven and ending at the close of business on the day of such mailing of 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 Security to be redeemed in part, any portion
thereof that is not redeemed.

SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities.

     If any mutilated Security is surrendered to the Trustee together with such security or
indemnity as may be required by the Company or the Trustee to save each of them harmless, the
Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new
Security of the same issue and series, of like tenor and principal amount, having the same Original
Issue Date and Stated Maturity and bearing the same Interest Rate as such mutilated Security, and
bearing a number not contemporaneously outstanding.

     If there shall be delivered to the Company and to the Trustee (i) evidence to their
satisfaction of the destruction, loss or theft of any Security and (ii) such security or indemnity
as may be required by them to save each of them and any agent of either of them harmless, then, in
the absence of notice to the Company or the Trustee that such

22

 

Security has been acquired by a bona fide purchaser, the issuing Company shall execute and
upon its request the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or
stolen Security, a new Security of the same issue and series of like tenor and principal amount,
having the same Original Issue Date and Stated Maturity and bearing the same Interest Rate as such
destroyed, lost or stolen Security, and bearing a number not contemporaneously outstanding.

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

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

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

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

SECTION 307. Payment of Interest; Interest Rights Preserved.

     Interest on any Security of any series which is payable, and is punctually paid or duly
provided for, on any Interest Payment Date shall be paid to the Person in whose name that Security
(or one or more Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest in respect of Securities of such series. The initial payment of
interest on any Security of any series which is issued between a Regular Record Date and the
related Interest Payment Date shall be payable as provided in such Security or in the Board
Resolution pursuant to Section 301 with respect to the related series of Securities.

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

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

23

 

in the following manner. The Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each Security and the date of the proposed payment, and
at the same time the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the Persons entitled to
such Defaulted Interest as in this Clause provided. Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall be not more than 15 days and not
less than 10 days prior to the date of the proposed payment and not less than 10 days after the
receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify
the Company of such Special Record Date and, in the name and at the expense of the Company, shall
cause notice of the proposed payment of such Defaulted Interest and the Special Record Date
therefor to be mailed, first class, postage prepaid, to each Holder of a Security of such series at
the address of such Holder as it appears in the Security Register not less than 10 days prior to
such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to the
Persons in whose names the Securities of such series (or their respective Predecessor Securities)
are registered at the close of business on such Special Record Date and shall no longer be payable
pursuant to the following Clause (2).

     (2) The Company may make payment of any Defaulted Interest on the Securities of any series in
any other lawful manner not inconsistent with the requirements of any securities exchange on which
the Securities of the series in respect of which interest is in default may be listed, and upon
such notice as may be required by such exchange (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 manner of payment shall be deemed practicable by the Trustee.

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

SECTION 308. Persons Deemed Owners.

     The Company, the Trustee and any agent of the Company or the Trustee may 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 premium and (subject to Section 307) any interest on such Security
and for all other purposes whatsoever, whether or not such Security be overdue, and neither the
Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the
contrary.

     None of the Company, the Trustee nor any agent of the Company or the Trustee will have any
responsibility or liability for any aspect of the records relating to or payments made on account
of beneficial ownership interests of a Global Security or

24

 

maintaining, supervising or reviewing any records relating to such beneficial ownership
interests.

SECTION 309. Cancellation.

     All Securities surrendered for payment, redemption, registration of transfer or exchange
shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee, and any
such Securities and Securities surrendered directly to the Trustee for any such purpose shall be
promptly cancelled by it. The Company may at any time deliver to the Trustee for cancellation any
Securities previously authenticated and delivered hereunder which the Company may have acquired in
any manner whatsoever, and may deliver to the Trustee (or to any other Person for delivery to the
Trustee) for cancellation any Securities previously authenticated hereunder which the Company has
not issued and sold, and all Securities so delivered shall be promptly cancelled by the Trustee.
No Securities shall be authenticated in lieu of or in exchange for any Securities cancelled as
provided in this Section, except as expressly permitted by this Indenture. All cancelled
Securities held by the Trustee shall be disposed by the Trustee in accordance with its customary
procedures. Acquisition by the Company of any Security shall not operate as a redemption or
satisfaction of the indebtedness represented by such Security unless and until the same is
delivered to the Trustee for cancellation.

SECTION 310. Computation of Interest.

     Except as otherwise specified as contemplated by Section 301 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a 360-day year
consisting of twelve 30-day months.

SECTION 311. CUSIP Numbers.

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

ARTICLE FOUR

SATISFACTION AND DISCHARGE

SECTION 401. 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

25

 

expressly provided for) and the Trustee at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture, when:

     (1) either

     (A) all Securities theretofore authenticated and delivered (other than (i) Securities
which have been destroyed, lost or stolen and which have been replaced or paid as provided
in Section 306 and (ii) Securities for whose payment money has theretofore been deposited
in trust or segregated and held in trust by the Company and thereafter repaid to the
Company or discharged from such trust, as provided in Section 1003) have been delivered to
the Trustee for cancellation; or

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

     (i) have become due and payable, or

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

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

and the Company, in the case of (i), (ii) or (iii) above, has deposited or caused to be deposited
with the Trustee as trust funds: (A) money in an amount; (B) Government Obligations which 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; 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 of such series (but such opinion need only be delivered if Government Obligations have been
so deposited), to pay and discharge, and which shall be applied by the Trustee, to pay and
discharge the entire indebtedness on such Securities not theretofore delivered to the Trustee for
cancellation, for principal (and premium, if any) and interest to the date of such deposit (in the
case of Securities which have become due and payable) or to the Stated Maturity or Redemption Date,
as the case may be;

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

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

26

 

     The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the Government Obligations deposited pursuant to Section 401 or the
principal and interest received in respect thereof other than any such tax, fee or other charge
which by law is for the account of the Holders of Outstanding Securities.

     Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 607 and the preceding paragraph, the obligations of the
Company to any Authenticating Agent under Section 614 and, if money and/or Government Obligations
shall have been deposited with the Trustee pursuant to subclause (B) of Clause (1) of this Section,
the obligations of the Trustee under Section 402 and the last paragraph of Section 1003 shall
survive.

SECTION 402. Application of Trust Money.

     Subject to the provisions of the last paragraph of Section 1003, all money and Government
Obligations deposited with the Trustee pursuant to Section 401 and all proceeds of such Government
Obligations and the interest thereon, shall be held in trust and applied by it, in accordance with
the provisions of the Securities and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine,
to the Persons entitled thereto, of the principal and any premium and interest for whose payment
such money and Government Obligations have been deposited with the Trustee.

ARTICLE FIVE

REMEDIES

SECTION 501. Events of Default.

     “Event of Default”, wherever used herein with respect to the Securities of any series, means
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):

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

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

     (3) default in the performance, or breach, of any covenant or warranty of the Company in this
Indenture (other than a covenant or warranty a default in the performance of which or the breach of
which is specifically dealt with elsewhere in this Section), and continuance of such default or
breach for a period of 90 days after there has been given, by registered or certified mail, to the
Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in
aggregate principal amount of

27

 

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

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

     (5) the institution by the Company of proceedings to be adjudicated 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 of 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 receiver, liquidator
assignee, trustee, sequestrator (or other similar official) of the Company or of any substantial
part of its property, or the making by it of an assignment for the benefit of creditors, or the
admission by it in writing of its inability to pay its debts generally as they become due and its
willingness to be adjudicated bankrupt, or the taking of corporate action by the Company in
furtherance of any such action; or

     (6) any other Event of Default specified with respect to Securities of that series as
contemplated in Section 301.

SECTION 502. Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default (other than an Event of Default specified in Section 501(4) or 501(5))
with respect to Securities of any series at the time Outstanding occurs and is continuing, then in
every such case the Trustee or the Holders of not less than 25% in aggregate principal amount of
the Outstanding Securities of that series may declare the principal amount (or, if the Securities
of that series are Original Issue Discount Securities, such portion of the principal amount as may
be specified in the terms of that series) of all of the Securities of that series to be due and
payable immediately, by a notice in writing to the Company (and to the Trustee if given by
Holders), and upon any such declaration such principal amount (or specified amount) shall become
immediately due and payable. If an Event of Default specified in Section 501(4) or 501(5) with
respect to Securities of a series at the time Outstanding occurs, the principal amount of all the
Securities of such series (or specified amount) shall automatically, and without any declaration or
other action on the part of the Trustee or any Holder, become immediately due and payable.

     At any time after such a declaration of acceleration with respect to Securities of any series
has been made and before a judgment or decree for payment of the money due

28

 

has been obtained by the Trustee as hereinafter in this Article provided, the Holders of not
less than a majority in aggregate principal amount of the Outstanding Securities of that series, by
written notice to the Company and the Trustee, may rescind and annul such declaration and its
consequences if:

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

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

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

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

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

     (2) all Events of Default with respect to Securities of that series, other than the
non-payment of the principal (or a specified portion of the principal) of and interest on
Securities of that series which has become due solely by such declaration of acceleration, have
been cured or waived as provided in Section 513.

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

SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee.

     The Company covenants that if:

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

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

the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such
Securities, the whole amount then due and payable on such Securities for principal, including any
sinking fund payment or analogous obligations (and premium, if any) and interest, including, to the
extent that payment of such interest shall be legally enforceable, interest on any overdue
principal or premium, if any, and on any overdue interest, at the rate or rates prescribed therefor
in such Securities, and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including the compensation, reasonable disbursements,
advances and expenses of the Trustee, its agents and counsel.

29

 

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

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

SECTION 504. Trustee May File Proofs of Claim.

     In case of any judicial proceeding relative to the Company (or any other obligor upon the
Securities), its property or its creditors:

     (a) the Trustee shall be entitled and empowered, by intervention in such proceeding or
otherwise,

     (i) to take any and all actions authorized under the Trust Indenture Act in order to
have claims of the Holders and the Trustee allowed in any such proceeding, and

     (ii) 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 in
accordance with Section 506; and

     (b) 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 for distribution in accordance with Section 506, and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to the Trustee any
amount due it for the compensation, reasonable disbursements, advances and expenses of the Trustee,
its agents and counsel, and any other amounts due the Trustee under Section 607.

     No provision of this Indenture shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding;
provided, however, that the Trustee may, on behalf of the Holders, vote for the
election of a trustee in bankruptcy or similar official and be a member of a creditors’ or other
similar committee.

30

 

SECTION 505. Trustee May Enforce Claims Without Possession of Securities.

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

SECTION 506. Application of Money Collected.

     Any money or property collected or to be applied by the Trustee with respect to a series of
Securities pursuant to this Article 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 premium, if any, or interest, upon presentation of the Securities and the notation
thereon of the payment if only partially paid and upon surrender thereof if fully paid:

     FIRST: To the payment of all amounts due the Trustee and any predecessor Trustee under
Section 607;

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

     THIRD: To the payment of the remainder, if any, to the Company, its successors or assigns or
to whomsoever may be lawfully entitled to receive the same or as a court of competent jurisdiction
may direct.

SECTION 507. Limitation on Suits.

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

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

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

31

 

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

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

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

it being understood and intended that no one or more of such Holders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb
or prejudice the rights of any other of such Holders (it being understood that the Trustee does not
have an affirmative duty to ascertain whether or not such actions or forbearances are unduly
prejudicial to such Holders), or to obtain or to seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in the manner herein
provided and for the equal and ratable benefit of all of such Holders.

SECTION 508. Unconditional Right of Holders to Receive Principal, Premium and Interest.

     Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the principal of (and
premium, if any) and (subject to Section 307) interest on such Security on the respective Stated
Maturities expressed in such Security (or, in the case of redemption, on the Redemption Date) and
to institute suit for the enforcement of any such payment, and such rights shall not be impaired
without the consent of such Holder.

SECTION 509. Restoration of Rights and Remedies.

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

SECTION 510. Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 306, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of
any other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The

32

 

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 511. Delay or Omission Not Waiver.

     No delay or omission of the Trustee or of any Holder of any Securities to exercise any right
or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by
this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

SECTION 512. Control by Holders.

     The Holders of a majority in aggregate principal amount of the Outstanding Securities of any
series shall have the right to direct the time, method and place of conducting any proceeding for
any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee,
with respect to the Securities of such series, provided that:

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

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

SECTION 513. Waiver of Past Defaults.

     The Holders of not less than a majority in aggregate principal amount of the Outstanding
Securities of any series may, on behalf of the Holders of all the Securities of such series, waive
any past default hereunder with respect to such series and its consequences, except a default:

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

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

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

33

 

SECTION 514. Undertaking for Costs.

     All parties to this Indenture agree, and each holder of any Security by his acceptance thereof
shall be deemed to have agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any
action taken, suffered or omitted by it as Trustee, any party litigant in such suit to file an
undertaking to pay the costs of such suit, and that court may in its discretion assess reasonable
costs, including reasonable attorneys’ fees, against any such party litigant in such suit, having
due regard to the merits and good faith of the claims or defenses made by such party litigant, in
the manner and to the extent provided in the Trust Indenture Act; provided, that neither
this Section nor the Trust Indenture Act shall be deemed to authorize any court to require such an
undertaking or to make such an assessment in any suit instituted by the Company or by the Trustee,
to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10%
in principal amount of the Outstanding Securities of any series, or any suit instituted by any
Holder for the enforcement of the payment of the principal of (or premium, if any) or interest on
any Security on or after the respective Stated Maturities expressed in such Security (or in the
case of redemption, on the Redemption Date).

SECTION 515. Waiver of Usury, Stay or Extension Laws.

     The Company covenants (to the extent that it may lawfully do so) that it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any
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 the Company (to the extent that it
may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants
that it will not hinder, delay or impede the execution of any power herein granted to the Trustee,
but will suffer and permit the execution of every such power as though no such law had been
enacted.

ARTICLE SIX

THE TRUSTEE

SECTION 601. 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; but in the case of any such certificates or opinions which by any provision
hereof are specifically required to be furnished to the Trustee, the Trustee shall be under
a duty to examine the same

34

 

to determine whether or not they conform to the requirements of this Indenture (but
need not confirm or investigate the accuracy of mathematical calculations or other facts
stated therein).

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

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

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

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

     (iii) the Trustee shall not be liable with respect to any action taken or omitted to
be taken by it in good faith in accordance with the direction of the Holders of a majority
in principal amount of the Outstanding Securities of any series, determined as provided in
Sections 101, 104 and 512, relating to the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or power
conferred upon the Trustee, under this Indenture with respect to the Securities of such
series; and

     (iv) 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.

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

SECTION 602. Notice of Defaults.

     If a default occurs hereunder with respect to the Securities of a series, the Trustee within
90 days of such default shall give the Holders notice of such default as and to the extent provided
by the Trust Indenture Act; provided, however, that in the case of any default of
the character specified in Section 501(3) with respect to such Securities, no such notice to
Holders shall be given until at least 30 days after the occurrence thereof; and provided,
further, that the Trustee may withhold notice to the Holders, of any default with respect
to Securities of a series (except any default of the character specified in Section 501(1) and
(2)), if and so long as the board of directors, the executive committee

35

 

or a trust committee of directors or Responsible Officers of the Trustee in good faith
determine that the withholding of the notice is in the interest of the Holders of such Securities.
For the purpose of this Section, the term “default” means any event which is, or after notice or
lapse of time or both would become, an Event of Default with respect to the Securities of a series.

SECTION 603. Certain Rights of Trustee.

     Subject to the provisions of Section 601:

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

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

     (3) 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, rely upon an Officers’ Certificate and may at its discretion secure such further
evidence deemed necessary or advisable, but shall in no case be bound to secure the same;

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

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

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

     (7) the Trustee’s immunities and protections from liability and its rights to compensation
and indemnification in connection with the performance of its duties under

36

 

this Indenture shall extend to the Trustee’s officers, directors, agents and employees and its
services as Paying Agent, Security Registrar or any other role assumed by the Trustee hereunder or
to which it has been appointed with respect to the Securities issued hereunder. Such immunities
and protections and right to indemnification, together with the Trustee’s right to compensation,
shall survive the Trustee’s resignation or removal and final payment of the Securities;

     (8) the Trustee is not required to give any bond or surety with respect to the performance of
its duties or the exercise of its powers under this Indenture;

     (9) the Trustee shall not be deemed to have actual knowledge of any “default” or Event of
Default hereunder except (i) during any period it is serving as Paying Agent for the Securities of
a series, any Event of Default pursuant to Section 501(1) or (2), or (ii) any default or Event of
Default of which a Responsible Officer shall have received written notification from the Company or
the Holders of at least 25% in aggregate principal amount of the Securities of the series with
respect to which such default or Event of Default has occurred and is continuing or obtained
“actual knowledge.” The term “actual knowledge” as used herein shall mean the actual fact or
statement of knowing by a Responsible Officer without independent investigation with respect
thereto. The term “default” as used in this Section 603 shall mean any event which is, or after
notice or lapse of time or both would become, an Event of Default with respect to Securities of a
series;

     (10) the Trustee shall be under no obligation to exercise any of the rights or powers vested
in it by this Indenture (other than the payment of debt service on the Securities from moneys
furnished to it pursuant hereto), whether at the request or direction of the Holders or any other
Person, pursuant to this Indenture or otherwise, unless it shall have been offered indemnity or
security satisfactory to it against the fees, advances, costs, expenses and liabilities which might
be incurred by it in connection with the exercise of any such rights or powers;

     (11) in no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action; and

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

     Notwithstanding anything else herein contained, (i) the Trustee shall not be liable for any
error of judgment made in good faith by any officer of the Trustee and (ii) 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

37

 

in the exercise of any of its rights or powers if it believes the repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to it.

SECTION 604. 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 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 Securities or the proceeds thereof.

SECTION 605. May Hold Securities.

     The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other
agent of the Company, in its individual or any other capacity, may become the owner or pledgee of
Securities and, subject to Sections 608 and 613, may otherwise deal with the Company with the same
rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security Registrar
or such other agent.

SECTION 606. Money Held in Trust.

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

SECTION 607. Compensation and Reimbursement.

     The Company agrees:

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

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

     (3) to indemnify each of the Trustee or any predecessor Trustee and their agents for, and to
hold them harmless against, any and all loss, damage, claim, liability or expense, including taxes
(other than taxes based upon, measured by or determined by the income of the Trustee), arising out
of or in connection with the acceptance or administration of the trust or trusts hereunder,
including the costs and expenses of

38

 

defending itself against any claim (whether asserted by the Company, or any Holder or any
other Person) or liability in connection with the exercise or performance of any of its powers or
duties hereunder, or in connection with enforcing the provisions of this Section, except to the
extent that such loss, damage, claim, liability or expense is due to its own negligence or bad
faith; and

     (4) without limiting any rights available to the Trustee under applicable law, that when the
Trustee incurs expenses or renders services in connection with an Event of Default specified in
Section 501(4) or Section 501(5), the expenses (including the reasonable charges and expenses of
its counsel) and the compensation for the services are intended to constitute expenses of
administration under any applicable federal or state bankruptcy, insolvency or other similar law.

SECTION 608. Disqualification; Conflicting Interests.

     If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust
Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the
manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture.
To the extent permitted by the Trust Indenture Act, the Trustee shall not be deemed to have a
conflicting interest by virtue of being a trustee under this Indenture with respect to Securities
of more than one series.

SECTION 609. Corporate Trustee Required; Eligibility.

     The Trustee shall at all times satisfy the requirements of TIA §310(a). The Trustee shall (i)
be a corporation organized and doing business under the laws of the United States of America, any
State thereof or the District of Columbia, (ii) be authorized under such laws to exercise corporate
trust powers, (iii) have a combined capital and surplus of at least $50,000,000, and (iv) be
subject to supervision or examination by Federal or State authority. If such corporation files
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, the combined capital and surplus of
such corporation shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so filed. If the Trustee has or shall acquire a conflicting interest
within the meaning of the Trust Indenture Act, the Trustee shall either eliminate such interest or
resign, to the extent and in the manner provided by, and subject to the provisions of, the Trust
Indenture Act and this Indenture. If at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section, it shall resign immediately in the manner and with
the effect hereinafter specified in this Article Six. Neither the Company nor any Person directly
or indirectly controlling, controlled by or under common control with the Company shall serve as
Trustee for the Securities of any series issued hereunder.

SECTION 610. Resignation and Removal; Appointment of Successor.

     No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to
this Article shall become effective until the acceptance of

39

 

appointment by the successor Trustee in accordance with the applicable requirements of Section
611.

     The Trustee may resign as Trustee at any time with respect to the Securities of one or more
series by giving written notice thereof to the Company. If the instrument of acceptance by a
successor Trustee required by Section 611 shall not have been delivered to the resigning Trustee
within 30 days after the giving of such notice of resignation, the resigning Trustee may, at the
expense of the Company, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.

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

     If at any time an instrument of acceptance by a successor Trustee required by Section 611
shall not have been delivered to the Trustee within 30 days after the date a notice of removal is
delivered to the Trustee, the Trustee being removed may, at the expense of the Company, petition
any court of competent jurisdiction for the appointment of a successor Trustee with respect to the
Securities of such series.

     If at any time:

     (1) the Trustee shall fail to comply with Section 608 after written request therefor by the
Company or by any Holder who has been a bona fide Holder of a Security for at least six months; or

     (2) the Trustee shall cease to be eligible under Section 609 and shall fail to resign after
written request therefor by the Company or by any such Holder; or

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

then, in any such case, (A) the Company by a Board Resolution may remove the Trustee, or (B)
subject to Section 514, any Holder who has been a bona fide Holder of a Security for at least six
months may, on behalf of himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee or Trustees.

     If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall
occur in the office of Trustee for any cause with respect to the Securities of one or more series,
the Company, by a Board Resolution, shall promptly appoint a successor Trustee or Trustees with
respect to the Securities of that or those series and shall comply with the applicable requirements
of Section 611. If, within one year after such resignation, removal or incapability, or the
occurrence of such vacancy, a successor Trustee with respect to the Securities of any series shall
be appointed by Act of the

40

 

Holders of a majority in principal amount of the Outstanding Securities of such series
delivered to the Company and the retiring Trustee, the successor Trustee so appointed shall,
forthwith upon its acceptance of such appointment in accordance with the applicable requirements of
Section 611, become the successor Trustee with respect to the Securities of such series and to that
extent supersede the successor Trustee appointed by the Company. If no successor Trustee with
respect to the Securities of any series shall have been so appointed by the Company or the Holders
and accepted appointment in the manner required by Section 611, any Holder who has been a bona fide
Holder of a Security for at least six months may, subject to Section 514, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for the appointment of
a successor Trustee with respect to the Securities of such series.

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

SECTION 611. Acceptance of Appointment by Successor.

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

     (b) In case of the appointment hereunder of a successor Trustee with respect to the Securities
of one or more (but not all) series, the Company and each successor Trustee with respect to the
Securities of one or more series shall execute and deliver an indenture supplemental hereto wherein
each successor trustee shall accept such appointment and which (1) shall contain such provisions as
shall be necessary or desirable to transfer and confirm to, and to vest in, each successor Trustee
all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of
that or those series to which the appointment of such successor Trustee relates, (2) if the
retiring Trustee is not retiring with respect to all Securities, shall contain such provisions as
shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of
the retiring Trustee with respect to the Securities of that or those series as to which the
retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (3) shall
add to or change any of the provisions of this Indenture as shall be necessary to

41

 

provide for or facilitate the administration of the trusts hereunder by more than one Trustee,
it being understood that nothing herein or in such supplemental indenture shall constitute such
Trustees co-trustees of the same trust and that each such Trustee shall be trustee of a trust or
trusts hereunder separate and apart from any trust or trusts hereunder administered by any other
such Trustee and upon the execution and delivery of such supplemental indenture the resignation or
removal of the retiring Trustee shall become effective to the extent provided therein and each such
successor Trustee, without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts, and duties of the retiring Trustee with respect to the Securities of that
or those series to which the appointment of such successor Trustee relates; but, on request of the
Company or any successor Trustee, such retiring Trustee shall duly assign, transfer and deliver to
such successor Trustee all property and money held by such retiring Trustee hereunder with respect
to the Securities of that or those series to which the appointment of such successor Trustee
relates.

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

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

SECTION 612. Merger, Conversion, Consolidation or Succession to Business.

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

SECTION 613. Preferential Collection of Claims Against Company.

     If and when the Trustee shall be or become a creditor of the Company (or any other obligor
upon the Securities), the Trustee shall be subject to the provisions of the Trust Indenture Act
regarding the collection of claims against the Company (or any such other obligor).

42

 

SECTION 614. Appointment of Authenticating Agent.

     The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series
of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities
of such series issued upon original issue and upon exchange, registration of transfer or partial
redemption thereof or pursuant to Section 306, and Securities so authenticated shall be entitled to
the benefits of this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and delivery on behalf of
the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the
Company and shall at all times be a corporation organized and doing business under the laws of the
United States of America, any State, Territory 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 files 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, 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 filed.

     If at any time an Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, such Authenticating Agent shall resign immediately in the manner and
with the effect specified in this Section.

     Any corporation into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or consolidation to
which such Authenticating Agent shall be a party, or any corporation succeeding to all or
substantially all of the corporate trust business of an Authenticating Agent, shall be the
successor Authenticating Agent hereunder, provided such corporation shall be otherwise eligible
under this Section, without the execution or filing of any paper or any further act on the part of
the Trustee or the Authenticating Agent.

     An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee
and to the Company. 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, the Trustee may
appoint a successor Authenticating Agent which shall be acceptable to the Company and shall give
notice of such appointment in the manner provided in Section 106 to all Holders of Securities of
the series with respect to which such Authenticating Agent will serve. Any successor Authenticating
Agent upon acceptance of its appointment hereunder shall become vested

43

 

with all the rights, powers and duties of its predecessor hereunder, with like effect as if
originally named as an Authenticating Agent.

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

     The Company agrees to pay to each Authenticating Agent from time to time compensation for its
services under this Section as agreed to in writing between the parties.

     If an appointment with respect to one or more series is made pursuant to this Section, the
Securities of such series may have endorsed thereon, in addition to 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.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	As Authenticating Agent	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Dated:                     	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Authorized Signatory	 	 

ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

SECTION 701. Company to Furnish Trustee Names and Addresses of Holders.

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

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

     (2) at such other times as the Trustee may request in writing, within 30 days after the
receipt by the Company of any such request, a list of similar form and content as of a date not
more than 15 days prior to the time such list is furnished; provided, that no such list
need be provided in any case to the extent it would include names and addresses received by the
Trustee in its capacity as Security Registrar.

44

 

SECTION 702. Preservation of Information; Communications to Holders.

     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 701 and the names and addresses of Holders received by the Trustee in its capacity as
Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 701
upon receipt of a new list so furnished.

     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 by the Trust Indenture Act.

     Every Holder of Securities, by receiving and holding the same, agrees with the Company and the
Trustee that neither the Company nor the Trustee nor any agent of either of them shall be held
accountable by reason of any disclosure of information as to names and addresses of Holders made
pursuant to the Trust Indenture Act.

SECTION 703. Reports by Trustee.

     The Trustee shall transmit to Holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant thereto. If required by Section 313(a) of the Trust Indenture Act, the
Trustee shall, within 60 days after each May 15 following the date of this Indenture, deliver to
Holders a brief report, dated as of such May 15, which complies with the provisions of such Section
313(a).

     A copy of each such report shall, at the time of such transmission to Holders, be filed by the
Trustee with each stock exchange, if any, upon which any Securities are listed, with the Commission
and with the Company. The Company will notify the Trustee whenever any Securities are listed on
any stock exchange and any delisting thereof.

SECTION 704. Reports by Company.

     The Company shall:

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

45

 

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

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

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

ARTICLE EIGHT

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

SECTION 801. Company May Consolidate, Etc., Only on Certain Terms.

     (a) Subject to Section 801(c), the Company shall not consolidate with or merge with or into
any other Person or convey, transfer or lease its assets substantially as an entirety to any
Person, and the Company shall not permit any Person to consolidate with or merge with or into the
Company, unless:

     (1) the Company is the surviving corporation in a merger or consolidation; or

     (2) in case the Company shall consolidate with or merge into another Person or convey,
transfer or lease its assets substantially as an entirety to any Person, the Person formed by such
consolidation or into which the Company is merged or the Person which acquires by conveyance or
transfer, or which leases, the assets of the Company substantially as an entirety shall be a
corporation, partnership, trust or limited liability company, organized and validly existing under
the laws of the United States of America, any State thereof or the District of Columbia and shall
expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, the
due and punctual payment of the principal of and any premium and interest on all the Securities and
the performance or observance of every covenant of this Indenture on the part of the Company to be
performed or observed; and

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

46

 

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

     (b) Subject to Section 801(c), any indebtedness which becomes an obligation of the Company or
any Subsidiary as a result of any such transaction shall be treated as having been incurred by the
Company or such Subsidiary at the time of such transaction.

     (c) The provisions of Section 801(a) and (b) shall not be applicable to:

     (1) the direct or indirect conveyance, transfer or lease of all or any portion of the stock,
assets or liabilities of any of the Company’s wholly owned Subsidiaries to the Company or to other
wholly owned Subsidiaries of the Company; or

     (2) any recapitalization transaction, a change of control of the Company or a highly
leveraged transaction unless such transaction or change of control is structured to include a
merger or consolidation by the Company or the conveyance, transfer or lease of the Company’s assets
substantially as an entirety.

SECTION 802. Successor Corporation Substituted.

     Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any conveyance, transfer or lease of the assets of the Company substantially as an entirety in
accordance with Section 801, the successor Person formed by such consolidation or into which the
Company is merged or to which such conveyance, transfer or lease is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under this Indenture with
the same effect as if such successor Person had been named as the Company herein, and thereafter,
except in the case of any lease, the Company shall be relieved of all obligations and covenants
under this Indenture and the Securities and may be dissolved and liquidated.

     In case of any such consolidation, merger, conveyance, transfer or lease, such changes in
phraseology and form may be made in the Securities thereafter to be issued as may be appropriate.

ARTICLE NINE

SUPPLEMENTAL INDENTURES

SECTION 901. Supplemental Indentures Without Consent of Holders.

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

47

 

     (1) to evidence the succession of another Person to the Company and the assumption by any
such successor of the covenants of the Company herein and in the Securities or, if applicable, to
evidence the succession of another Person to the Guarantor and the assumption by any such successor
of the Guarantor’s obligations under any Guarantee (in either case with such changes herein and
therein as may be necessary or advisable to reflect such Person’s legal status, if such Person is
not a corporation); or

     (2) to convey, transfer, assign, mortgage or pledge any property to or with the Trustee or to
surrender any right or power herein conferred upon the Company; or

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

     (4) to establish the form or terms of Securities of any series as permitted by Sections 201
or 301; or

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

     (6) to add any additional Events of Default; or

     (7) to secure the Securities; or

     (8) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or change any provisions
of this Indenture as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Trustee pursuant to the requirements of Section 611(b); or

     (9) to cure any ambiguity, to correct or supplement any provision herein, in any Securities
or in any Guarantee which may be defective or inconsistent with any other provision herein, or to
make any other provisions with respect to matters or questions arising under this Indenture as the
Company and the Trustee may deem necessary and desirable, provided that such action
pursuant to this Clause (9) shall not adversely affect the interests of the Holders of Securities
of any series in any material respect; or

     (10) to comply with the requirements of the Commission in order to effect or maintain the
qualification of this Indenture or any Guarantee under the Trust Indenture Act or otherwise as
necessary to comply with applicable law; or

     (11) to make any change that does not adversely affect the rights of any Holder in any
material respect.

48

 

SECTION 902. Supplemental Indentures With Consent of Holders.

     With the consent of the Holders of not less than a majority in principal amount of the
Outstanding Securities of each series affected by such supplemental indenture, by Act of said
Holders delivered to the Company and the Trustee, the Company, 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 of such
series under this Indenture and, if applicable, the Guarantor and the Trustee may enter into an
agreement or agreements supplemental hereto to add to or to change or eliminate any provisions of a
Guarantee; provided, however, that no such supplemental indenture shall, without
the consent of the Holder of each Outstanding Security affected thereby:

     (1) change the Stated Maturity of the principal of, or any installment of interest payable
on, any Outstanding Security, or reduce the principal amount of or the rate of interest thereon or
any premium payable upon the redemption thereof, or reduce the amount of principal of an Original
Issue Discount Security that would be due and payable upon redemption or would be provable in
bankruptcy, or adversely affect any right of repayment of the Holder of any Security or change the
Place of Payment or the coin or currency in which, any Outstanding Security or the interest thereon
is payable, or impair the right to institute suit for the enforcement of any such payment on or
after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption Date);
or

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

     (3) modify any of the provisions of this Section, Section 513 or Section 1008, except to
increase any such percentage or to provide that certain other provisions of this Indenture cannot
be modified or waived without the consent of the Holder of each Outstanding Security affected
thereby; provided, however, that this clause shall not be deemed to require the
consent of any Holder with respect to changes in the references to “the Trustee” and concomitant
changes in this Section and Section 1008, or the deletion of this proviso, in accordance with the
requirements of Sections 611 and 901(8).

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

49

 

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

SECTION 903. Execution of Supplemental Indentures.

     In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by this Indenture, the
Trustee shall be entitled to receive, and (subject to Section 601) shall be fully protected in
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 have been complied with. The Trustee may, but shall not be obligated to, enter into any
such supplemental indenture which affects the Trustee’s own rights, duties, protections,
privileges, indemnities, liabilities or immunities under this Indenture or otherwise.

SECTION 904. Effect of Supplemental Indentures.

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

SECTION 905. Conformity with Trust Indenture Act.

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

SECTION 906. Reference in Securities to Supplemental Indentures.

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

ARTICLE TEN

COVENANTS

SECTION 1001. Payment of Principal, Premium and Interest.

     The Company covenants and agrees for the benefit of each series of Securities that it will
duly and punctually pay the principal of, premium, if any, and interest on the

50

 

Securities of that series in accordance with the terms of such Securities and this Indenture.

     Unless otherwise specified as contemplated by Section 301, the Company shall pay interest on
overdue amounts at the rate set forth in the first paragraph of the Securities, and it shall pay
interest on overdue interest at the same rate (to the extent that the payment of such interest
shall be legally enforceable), which interest on overdue interest shall accrue from the date such
amounts became overdue.

SECTION 1002. Maintenance of Office or Agency.

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

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

SECTION 1003. Money for Securities Payments to Be Held in Trust.

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

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

51

 

due, such sum to be held as provided by the Trust Indenture Act, and (unless such Paying Agent
is the Trustee) the Company will promptly notify the Trustee of its action or failure so to act.

     The Company will cause each Paying Agent other than the Trustee to execute and deliver to the
Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the
provisions of this Section, that such Paying Agent will (1) comply with the provisions of the Trust
Indenture Act applicable to it as a Paying Agent, (2) give the Trustee notice of any default by the
Company (or any other obligor upon the Securities) in the making of any payment of principal (and
premium, if any) or interest, and (3) at any time during the continuance of any such default, upon
the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such
Paying Agent.

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

     Any money or U.S. Government Obligation (including the proceeds thereof and the interest
thereon) deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for
the payment of the principal of, premium, if any, or interest on any Security and remaining
unclaimed for two years after such principal, premium, if any, or interest has become due and
payable shall be paid to the Company at its option on Company Request (unless otherwise required by
mandatory provision of applicable escheat or abandoned or unclaimed property law) 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,
however, that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company cause to be published once, in a newspaper published
in the English language, customarily published on each Business Day and of general circulation in
the Borough of Manhattan, The City of New York, notice that such money remains unclaimed and that,
after a date specified therein, which shall not be less than 30 days from the date of such
publication, any unclaimed balance of such money then remaining will be repaid to the Company.

SECTION 1004. Statement by Officers as to Default.

     The Company will deliver to the Trustee, within 120 days after the end of each fiscal year of
the Company ending after the date hereof, an Officers’ Certificate covering the preceding fiscal
year, stating whether or not, to the best knowledge of the signers

52

 

thereof, the Company is in default in the performance and 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 shall be in default, specifying all such defaults
and the nature and status thereof of which they may have knowledge.

SECTION 1005. Existence.

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

SECTION 1006. Payment of Taxes.

     The Company will pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, all taxes, assessments and governmental charges levied or imposed upon the
Company or any Restricted Subsidiary or upon the income, profits or property of the Company or any
Restricted Subsidiary, and lawful claims for labor, materials and supplies, which, if unpaid, might
by law become a Lien upon the property of the Company or any Restricted Subsidiary;
provided, however, that the Company shall not be required to pay or discharge or
cause to be paid or discharged any such tax, assessment or governmental charge whose amount,
applicability or validity is being contested in good faith by appropriate proceedings or where the
failure to effect such payment is not adverse in any material respect to the Holders of the
Securities.

SECTION 1007. Limitation on Liens.

     The Company will not, nor will it permit any Restricted Subsidiary, directly or indirectly,
to, create, issue, assume, incur, or guarantee or become liable with respect to indebtedness for
money borrowed if such indebtedness is secured by a Lien on any present or future common stock of
any Restricted Subsidiary (whether such shares of common stock are now owned or hereafter acquired)
without in any such case making or causing to be made effective a provision (and the Company
covenants that in any such case it shall make or cause to be made effective such provision) whereby
the Securities, will be secured equally and ratably with, or prior to, such indebtedness or
guarantee; it being understood that in such event the Company may also so secure any other such
indebtedness of the Company or such Restricted Subsidiary entitled thereto, subject to any
applicable priority of payment.

SECTION 1008. Waiver of Certain Covenants.

     The Company may omit in any particular instance to comply with any term, provision, covenant
or condition set forth in any covenant provided pursuant to Section 901(5) for the benefit of the
Holders or in any of Sections 1006 and 1007, with respect to the Securities of any series if before
or after the time for such compliance the Holders of

53

 

at least a majority in principal amount of the Outstanding Securities of such series shall, by
Act of such Holders, either waive such compliance in such instance or generally waive compliance
with such term, provision or condition, but no such waiver shall extend to or affect such term,
provision or condition except to the extent so expressly waived, and, until such waiver shall
become effective, the obligations of the Company and the duties of the Trustee in respect of any
such term, provision or condition shall remain in full force and effect.

SECTION 1009. Calculation of Original Issue Discount.

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

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

SECTION 1101. Company’s Right of Redemption.

     Unless otherwise specified as contemplated by Section 301 with respect to the Securities of a
particular series, and notwithstanding any additional redemption rights that may be so specified,
the Company may, at its option, redeem the Securities of any series after their date of issuance in
whole or in part at any time and from time to time, subject to the provisions of this Section 1101
and the other provisions of this Article Eleven. Unless otherwise specified as contemplated by
Section 301 with respect to the Securities of a particular series, the redemption price for any
Security so redeemed shall be equal to 100% of the principal amount of such Securities then
Outstanding plus accrued and unpaid interest up to, but excluding, the date fixed for redemption;
provided, however, that installments of accrued and unpaid interest whose Stated
Maturity is on or prior to the Redemption Date will be payable to the Holders of such Securities,
or one or more Predecessor Securities, registered as such at the close of business on the relevant
Regular Record Dates according to their terms and the provisions of Section 307.

SECTION 1102. Applicability of Article.

     Redemption of Securities, as permitted or required by any form of Security issued pursuant to
this Indenture or the documentation providing therefor, shall be made in accordance with such form
of Security or documentation and this Article Eleven; provided, however, that if
any provision of any such form of Security or documentation shall conflict with any provision of
this Article, the provision of such form of Security or documentation shall govern. Except as
otherwise set forth in the form of Security for such series or such documentation, each Security
shall be subject to partial redemption only in the amount of $1,000 or integral multiples of
$1,000.

54

 

SECTION 1103. Election to Redeem; Notice to Trustee.

     The election of the Company to redeem any Securities shall be evidenced by or pursuant to a
Board Resolution. In case of any redemption at the election of the Company of the Securities of a
series, the Company shall, at least 45 days but not more than 60 days prior to the Redemption Date
fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the
Trustee of such Redemption Date, of the principal amount of Securities to be redeemed and, if
applicable, of the tenor of the Securities to be redeemed. In the case of any redemption of
Securities (a) prior to the expiration of any restriction on such redemption provided in the terms
of such Securities or (b) pursuant to an election of the Company which is subject to a condition
specified in the terms of such Securities, the Company shall furnish the Trustee with an Officers’
Certificate and an Opinion of Counsel evidencing compliance with such restriction or condition.

SECTION 1104. Selection by Trustee of Securities to Be Redeemed.

     If less than all the Securities are to be redeemed (unless such redemption affects only a
single Security), the particular Securities to be redeemed shall be selected not more than 45 days
prior to the Redemption Date by the Trustee, from the Outstanding Securities not previously called
for redemption, by such method as the Trustee in its sole discretion shall deem fair and
appropriate and which may provide for the selection for redemption of a portion of the principal
amount of any Security, 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. If less than all the Securities and of a
specified tenor are to be redeemed (unless such redemption affects only a single Security), the
particular Securities to be redeemed shall be selected not more than 45 days prior to the
Redemption Date by the Trustee, from the Outstanding Securities and specified tenor not previously
called for redemption in accordance with the preceding sentence.

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

     The provisions of the two preceding paragraphs 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.

     For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to
be redeemed only in part, to the portion of the principal amount of such Securities which has been
or is to be redeemed. If the Company shall so direct, Securities registered in the name of the
Company, any Affiliate or any Subsidiary thereof shall not be included in the Securities selected
for redemption.

55

 

SECTION 1105. Notice of Redemption.

     Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than
30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed,
at its address appearing in the Security Register. Unless the Company defaults in payment of the
Redemption Price, on and after the Redemption Date, interest shall cease to accrue on the
Securities.

     All notices of redemption shall state:

     (1) the Redemption Date;

     (2) the Redemption Price, or if not then ascertainable, the manner of calculation thereof;

     (3) if less than all the Outstanding Securities consisting of more than a single Security are
to be redeemed, the identification (and, in the case of partial redemption of any such Securities,
the principal amounts) of the particular Securities to be redeemed and, if less than all the
Outstanding Securities consisting of a single Security are to be redeemed, the principal amount of
the particular Security to be redeemed;

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

     (5) the place or places where each such Security is to be surrendered for payment of the
Redemption Price; and

     (6) the CUSIP numbers, if any.

     Notice of redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of
the Company and shall be irrevocable. The notice if mailed in the manner herein provided shall be
conclusively presumed to have been duly given, whether or not the Holder receives such notice In
any case, a failure to give such notice by mail or any defect in the notice to the Holder of any
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 1106. Deposit of Redemption Price.

     Prior to 10:00 a.m. New York City time on any Redemption Date, the Company shall deposit with
the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate
and hold in trust as provided in Section 1003) an amount of money sufficient to pay the Redemption
Price of, and (except if the Redemption Date shall be an Interest Payment Date) accrued interest
on, all the Securities which are to be redeemed on that date.

56

 

SECTION 1107. Securities Payable on Redemption Date.

     Notice of redemption having been given pursuant to Section 1105, the Securities to be so
redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein
specified, and from and after such date (unless the Company shall default in the payment of the
Redemption Price and accrued interest) such Securities shall cease to bear or accrue any interest.
Upon surrender of any such Security for redemption in accordance with said notice, such Security
shall be paid by the Company at the Redemption Price, together with any accrued but unpaid interest
to, but excluding, the Redemption Date; provided, however, that installments of
accrued and unpaid interest whose Stated Maturity is on or prior to the Redemption Date will be
payable to the Holders of such Securities, or one or more Predecessor Securities, registered as
such at the close of business on the relevant Regular Record Dates according to their terms and the
provisions of Section 307.

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

SECTION 1108. Securities Redeemed in Part.

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

ARTICLE TWELVE

DEFEASANCE AND COVENANT DEFEASANCE

SECTION 1201. Company’s Option to Effect Defeasance or Covenant Defeasance.

     The Company may elect, at its option at any time, to have Section 1202 or Section 1203 applied
to any Securities upon compliance with the conditions set forth below in this Article. Any such
election shall be evidenced by a Board Resolution.

SECTION 1202. Defeasance and Discharge.

     Upon the Company’s exercise of its option (if any) to have this Section applied to any
Securities, the Company shall be deemed to have been discharged from its obligations with respect
to such Securities as provided in this Section on and after the date the conditions set forth in
Section 1204 are satisfied (hereinafter called “Defeasance”). For this purpose, such Defeasance
means that the Company shall be

57

 

deemed to have paid and discharged the entire indebtedness represented by such Securities and
to have satisfied all its other obligations under such Securities and this Indenture insofar as
such Securities are concerned (and the Trustee, at the expense of the Company and upon Company
Request, shall execute proper instruments acknowledging the same), subject to the following, which
shall survive until otherwise terminated or discharged hereunder: (1) the Company’s obligations
with respect to such Securities under Sections 304, 305, 306, 1002 and 1003; (2) the rights,
powers, trusts, duties and immunities of the Trustee hereunder, including but not limited to those
enumerated under Sections 601, 603 and 607; and (3) this Article. Subject to compliance with this
Article, the Company may exercise its option (if any) to have this Section applied to any
Securities notwithstanding the prior exercise of its option (if any) to have Section 1203 applied
to such Securities.

SECTION 1203. Covenant Defeasance.

     Upon the Company’s exercise of its option (if any) to have this Section applied to any
Securities (1) the Company shall be released from its obligations under Sections 801, Sections 1006
and 1007, and any covenants provided pursuant to 901(5) for the benefit of the Holders of such
Securities; and (2) the occurrence of any event specified in Sections 501(3) (with respect to any
of Section 801, Sections 1006 and 1007, and any such covenants provided pursuant to Section 901(5))
shall be deemed not to be or result in an Event of Default, in each case with respect to such
Securities as provided in this Section on and after the date the conditions set forth in Section
1204 are satisfied (hereinafter called “Covenant Defeasance”). For this purpose, such Covenant
Defeasance means that, with respect to such Securities, the Company may omit to comply with and
shall have no liability in respect of any term, condition or limitation set forth in any such
specified Section (to the extent so specified in the case of Section 501(3)), whether directly or
indirectly by reason of any reference elsewhere herein to any such Section or by reason of any
reference in any such Section to any other provision herein or in any other document, but the
remainder of this Indenture and such Securities shall be unaffected thereby.

     Notwithstanding any Covenant Defeasance with respect to Section 801, any Person that would
otherwise have been required to assume the obligations of the Company pursuant to said Section
shall be required, as a condition to any merger, consolidation, conveyance, transfer or lease
contemplated thereby, to assume the obligations of the Company to the Trustee under Sections 607
and 1205.

SECTION 1204. Conditions to Defeasance or Covenant Defeasance.

     The following shall be the conditions to the application of Section 1202 or Section 1203 to
any Securities:

     (1) The Company shall irrevocably have deposited or caused to be deposited with the Trustee
(or another trustee which satisfies the requirements contemplated by Section 609 and agrees to
comply with the provisions of this Article applicable to it) as trust funds in trust for the
purpose of making the following payments, specifically pledged as

58

 

security for, and dedicated solely to, the benefits of the Holders of such Securities, (A)
money in an amount, or (B) Government Obligations which 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, 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,
the principal of and any premium and interest on such Securities on the respective Stated
Maturities or on the Redemption Date, in accordance with the terms of this Indenture and such
Securities.

     (2) In the event of an election to have Section 1202 apply to any Securities, the Company
shall have delivered to the Trustee an Opinion of Counsel stating that (A) the Company has received
from, or there has been published by, the Internal Revenue Service a ruling or (B) since the date
of this instrument, there has been a change in the applicable Federal income tax law, in the case
of either (A) or (B) to the effect that, and based thereon such opinion shall confirm that, the
Holders of such Securities will not recognize gain or loss for Federal income tax purposes as a
result of the deposit, Defeasance and discharge to be effected with respect to such Securities and
will be subject to Federal income tax on the same amount, in the same manner and at the same times
as would be the case if such deposit, Defeasance and discharge were not to occur.

     (3) In the event of an election to have Section 1203 apply to any Securities, the Company
shall have delivered to the Trustee an Opinion of Counsel to the effect that the Holders of such
Securities will not recognize gain or loss for Federal income tax purposes as a result of the
deposit and Covenant Defeasance to be effected with respect to such Securities and will be subject
to Federal income tax on the same amount, in the same manner and at the same times as would be the
case if such deposit and Covenant Defeasance were not to occur.

     (4) No event which is, or after notice or lapse of time or both would become, an Event of
Default with respect to such Securities or any other Securities shall have occurred and be
continuing at the time of such deposit or, with regard to any such event specified in Sections
501(4) and (5), at any time on or prior to the 90th day after the date of such deposit (it being
understood that this condition shall not be deemed satisfied until after such 90th day).

     (5) Such Defeasance or Covenant Defeasance shall not result in a breach or violation of, or
constitute a default under, any indenture or other agreement or instrument for borrowed money to
which the Company is a party or by which it is bound.

     (6) Such Defeasance or Covenant Defeasance shall not result in the trust arising from such
deposit constituting an investment company within the meaning of the Investment Company Act unless
such trust shall be registered under the Investment Company Act or exempt from registration
thereunder.

59

 

     (7) If such Securities are to be redeemed prior to Stated Maturity (other than from mandatory
sinking fund payments or analogous payments), notice of such redemption shall have been duly given
pursuant to this Indenture or provision therefor satisfactory to the Trustee shall have been made.

     (8) 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 or Covenant
Defeasance have been complied with.

SECTION 1205. Deposited Money and Government Obligations to Be Held in Trust; Miscellaneous
Provisions.

     Subject to the provisions of the last paragraph of Section 1003, all money and Government
Obligations (including the proceeds thereof and the interest thereon) deposited with the Trustee or
other qualifying trustee (solely for purposes of this Section and Section 1206, the Trustee and any
such other trustee are referred to collectively as the “Trustee”) pursuant to Section 1204 in
respect of any Securities shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Securities and this Indenture, to the payment, either directly or through any
such Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Holders of such Securities, of all sums due and to become due thereon in respect
of principal and any premium and interest, but money so held in trust need not be segregated from
other funds except to the extent required by law.

     The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the Government Obligations deposited pursuant to Section 1204 or the
principal and interest received in respect thereof other than any such tax, fee or other charge
which by law is for the account of the Holders of Outstanding Securities.

     Anything in this Article 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 1204 with respect to any Securities which, 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 which would then be required to be
deposited to effect the Defeasance or Covenant Defeasance, as the case may be, with respect to such
Securities.

SECTION 1206. Reinstatement.

     If the Trustee or the Paying Agent is unable to apply any money in accordance with this
Article with respect to any Securities by reason of any order or judgment of any court or
Governmental Authority enjoining, restraining or otherwise prohibiting such application, then the
obligations under this Indenture and such Securities from which the Company has been discharged or
released pursuant to Section 1202 or 1203 shall be revived and reinstated as though no deposit had
occurred pursuant to this Article with respect to such Securities, until such time as the Trustee
or Paying Agent is permitted to

60

 

apply all money held in trust pursuant to Section 1205 with respect to such Securities in
accordance with this Article; provided, however, that if the Company makes any
payment of principal of or any premium or interest on any such Security following such
reinstatement of its obligations, the Company shall be subrogated to the rights (if any) of the
Holders of such Securities to receive such payment from the money so held in trust.

SECTION 1207. Qualifying Trustee.

     Any trustee appointed pursuant to Section 1204 for the purpose of holding trust funds
deposited pursuant to that Section shall be appointed under an agreement in form acceptable to the
Trustee and shall provide to the Trustee a certificate of such trustee, upon which certificate the
Trustee shall be entitled to conclusively rely, that all conditions precedent provided for herein
to the related Defeasance or Covenant Defeasance have been complied with. In no event shall the
Trustee be liable for any acts or omissions of said trustee.

*      *      *

61

 

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

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of
the day and year first above written.

	 	 	 	 	 
	PRINCIPAL FINANCIAL GROUP, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Joyce N. Hoffman
 

Name: Joyce N. Hoffman
	 	 
	 

	 	Title: Senior Vice President & Corporate Secretary	 	 
	 
	 	 	 	 
	THE BANK OF NEW YORK,

as Trustee	 	 
	 
	 	 	 	 
	By:

	 	/s/ Van K. Brown	 	 
	 

	 	 	 	 
	 

	 	Name: Van K. Brown	 	 
	 

	 	Title: Vice President	 	 

62

 

EXHIBIT A

[SPECIMEN BOND]

(FORM OF FACE OF SECURITY)

[If the Security is an Original Issue Discount Security, insert—For purposes of Section 1271 of the
United States Internal Revenue Code of 1986, as amended, the issue price of this security is ___%
of its principal amount and the Issue Date is                     , 20___]

PRINCIPAL FINANCIAL GROUP, INC.

[Title of Security]

			
	 	 	 
	 
	 	CUSIP:                                         
	 	 	 
	No.                     
	 	$                     

     PRINCIPAL FINANCIAL GROUP, INC., a corporation organized and existing under the laws of
Delaware (hereinafter called the “Company”, which term includes any successor corporation under the
Indenture hereinafter referred to), for value received, hereby promises to pay to [Insert if Global
Security-Cede & Co.], or registered assigns, the principal sum of                      Dollars on
                     [If the Security is to bear interest prior to Maturity, insert — , and to pay
interest thereon from                      or from the most recent Interest Payment Date to which interest
has been paid or duly provided for, semi-annually on                      and                      in each year,
commencing                     , at the rate of ___% per annum, on the basis of a 360-day year consisting of
twelve 30-day months, until the principal hereof is paid or duly provided for or made available for
payment] [(If applicable insert – , and (to the extent that the payment of such interest shall be
legally enforceable) at the rate of ___% per annum on any overdue principal and premium and on any
overdue installment of interest)].

     [If the Security is to bear interest prior to Maturity, insert — The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, 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,
which shall be the date which is fifteen days (whether or not a Business Day) next preceding such
Interest Payment Date. Any such interest not so punctually paid or duly provided for will
forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to
the person in whose name this Security (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed
by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than
10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the

A-1

 

Securities of this series may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in said Indenture].

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

     Payment of the principal of (and premium, if any) and [if applicable, insert — any interest]
on this Security will be made at the office or agency of the Company maintained for that purpose in
The City of New York, in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts
[if applicable, insert —;
provided, however, that at the option of the Company payment of interest may be
made by check mailed to the address of the Person entitled thereto as such address shall appear in
the Security Register].

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

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

A-2

 

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

	 	 	 	 	 
	 	PRINCIPAL FINANCIAL GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 
	 	THE BANK OF NEW YORK,

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

Dated:

A-3

 

FORM OF REVERSE OF SECURITY

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under a Senior Indenture, dated as
of                     , ___ as supplemented and amended from time to time (herein called the “Indenture”),
between the Company and The Bank of New York, as Trustee (herein called 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, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be, authenticated and
delivered. This Security is one of the series designated on the face hereof [if applicable insert
—, limited in aggregate principal amount to $                    ].

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

     [If applicable, insert — The Securities of this series are subject to redemption upon not less
than 30 nor more than 60 days’ notice by mail, at any time [on or after                     , 20___], as a
whole or in part, at the election of the Company. The Redemption Price for any Security so
redeemed shall be equal to 100% of the principal amount of such Securities then Outstanding plus
accrued and unpaid interest up to but not including the date fixed for redemption. In the event of
redemption of this Security in part only, a new Security or Securities of this series for the
unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.]

     [Installments of accrued and unpaid interest whose Stated Maturity is on or prior to the
Redemption Date will be payable to the Holders of the Securities of this series, or one or more
Predecessor Securities, registered as such at the close of business on the relevant Regular Record
Dates according to their terms.]

     The Indenture contains provisions for satisfaction, discharge and defeasance of the entire
indebtedness on this security, upon compliance by the Company with certain conditions set forth
therein.

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

     Upon payment of the amount of principal so declared due and payable [if applicable insert—
and of interest on any overdue principal and overdue interest (in each

A-4

 

case to the extent that the payment of such interest shall be legally enforceable)], all of
the Company’s obligations in respect of the payment of the principal of and interest, if any, on
the Securities of this series shall terminate.]

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting
the Holders of specified percentages in principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange 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 obligation of the Company, which is absolute and unconditional, to pay
the principal of (and premium, if any) and interest 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 registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of (and premium, if any) and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities of this series, of authorized denominations and for the
same aggregate principal amount, will be issued to the designated transferee or transferees.

     The Securities of this series are issuable only in registered form without coupons in
denominations of $                     and any integral multiple thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Securities of this series are exchangeable for a
like aggregate principal amount of Securities of this series of 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 may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     The Company, the Trustee and any agent of the Company or the Trustee may treat the Person in
whose name this Security is registered as the owner hereof for all purposes,

A-5

 

whether or not this Security be overdue, and neither the Company, the Trustee nor any such
agent shall be affected by notice to the contrary.

     THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

     EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THE INDENTURE, THIS SECURITY OR THE TRANSACTION CONTEMPLATED HEREBY.

A-6exv4w2

 

Exhibit 4.2

PRINCIPAL FINANCIAL GROUP, INC.,

Issuer

And

PRINCIPAL FINANCIAL SERVICES, INC.,

Guarantor

And

THE BANK OF NEW YORK,

Trustee

 

FIRST SUPPLEMENTAL INDENTURE

Dated as of October 16, 2006

 

$500,000,000

6.05% Senior Notes Due 2036

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 

	 	ARTICLE I	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	The Series of Securities	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 1.1.

	 	Establishment
	 	 	1	 
	SECTION 1.2.

	 	Definitions
	 	 	2	 
	SECTION 1.3.

	 	Payment of Principal, Premium, if any, and Interest
	 	 	2	 
	SECTION 1.4.

	 	Denominations
	 	 	2	 
	SECTION 1.5.

	 	No Sinking Fund
	 	 	3	 
	SECTION 1.6.

	 	Global Securities
	 	 	3	 
	SECTION 1.7.

	 	Transfer
	 	 	3	 
	SECTION 1.8.

	 	Defeasance
	 	 	3	 
	SECTION 1.9.

	 	Optional Redemption
	 	 	3	 
	SECTION 1.10.

	 	Events of Default
	 	 	5	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE II	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Guarantee	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 2.1.

	 	Guarantee
	 	 	6	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE III	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Miscellaneous	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 3.1.

	 	Recitals by the Company
	 	 	6	 
	SECTION 3.2.

	 	Application of Supplemental Indenture
	 	 	6	 
	SECTION 3.3.

	 	Executed in Counterparts
	 	 	6	 
	 
	 	 	 	 	 	 
	Exhibit A

	 	Form of Global Note	 	 	 	 
	Exhibit B

	 	Form of Guarantee	 	 	 	 

i 

 

 

     FIRST SUPPLEMENTAL INDENTURE, dated as of October 16, 2006, among PRINCIPAL FINANCIAL GROUP,
INC., a Delaware corporation (the “Company”), PRINCIPAL FINANCIAL SERVICES, INC., an Iowa
corporation (the “Guarantor”) and THE BANK OF NEW YORK, a New York banking corporation, as trustee
(the “Trustee”):

     WHEREAS, the Company has heretofore entered into an Indenture, dated as of October 11, 2006
(the “Original Indenture”) with the Trustee;

     WHEREAS, the Original Indenture is incorporated herein by this reference and the Original
Indenture, as supplemented by this First Supplemental Indenture, is herein called the “Indenture”;

     WHEREAS, Section 301 of the Original Indenture provides for various matters with respect to
Securities issued under the Original Indenture to be established in an indenture supplemental to
the Original Indenture;

     WHEREAS, Section 901(4) of the Original Indenture permits the execution and delivery of a
supplemental indenture without the consent of any Holders to establish the form or terms of
Securities of any series;

     WHEREAS, the Company proposes to create under the Indenture a new series of Securities;

     WHEREAS, the Guarantor will fully and unconditionally guarantee the obligations of the Company
under the new series of Securities in accordance with the provisions of the Indenture; and

     WHEREAS, all the conditions and requirements necessary to make this First Supplemental
Indenture, when duly executed and delivered, a valid and binding agreement in accordance with its
terms and for the purposes herein expressed have been performed and fulfilled.

     NOW THEREFORE, in consideration of the agreements and obligations set forth herein and for
other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties
hereto hereby agree as follows:

ARTICLE I

THE SERIES OF SECURITIES

     SECTION 1.1. Establishment.

     There is hereby established a new series of Securities to be issued under the Indenture, to be
designated as the Company’s 6.05% Senior Notes due 2036 (the “Senior Notes”).

1

 

     The initial limit upon the aggregate principal amount of the Senior Notes that may be
authenticated and delivered under the Indenture (except for Senior Notes authenticated and
delivered upon registration or transfer of, or in exchange for or in lieu of, other Senior Notes
pursuant to Sections 304, 305, 306, 906 or 1108 of the Original Indenture) is $500,000,000;
provided, however, that the aggregate principal amount of the Senior Notes may be increased in the
future, without the consent of the holders of the Senior Notes, on the same terms and with the same
CUSIP and ISIN numbers as the Senior Notes, except that the issue price, the first interest payment
date and the issue date may vary.

     The Senior Notes shall be issued in the form of one or more Global Securities in substantially
the form set forth in Exhibit A hereto. The Depositary with respect to the Senior Notes shall be
The Depository Trust Company.

     SECTION 1.2. Definitions.

     The following defined terms used herein shall, unless the context otherwise requires, have the
meanings specified below. Capitalized terms used herein for which no definition is provided herein
shall have the meanings set forth in the Original Indenture.

     “Interest Payment Date” means April 15 and October 15 of each year, commencing April 15, 2007.

     “Regular Record Date” mean, the April 1st or October 1st of each year
immediately preceding the related Interest Payment Date.

     SECTION 1.3. Payment of Principal, Premium, if any, and Interest.

     The Senior Notes will mature on October 15, 2036. The Senior Notes shall bear interest at the
rate of 6.05% per annum from October 16, 2006. Interest shall be paid semi-annually on each
Interest Payment Date, commencing April 15, 2007, to the Person in whose name the Senior Notes are
registered on the Regular Record Date for such Interest Payment Date. Any such interest that is
not so punctually paid or duly provided for will forthwith cease to be payable to the holders on
such Regular Record Date and may be paid as provided in Section 307 of the Original Indenture.

     Principal of, and premium, if any, and interest on the Senior Notes will be payable, and
transfers of the Senior Notes will be registrable, at the Company’s office or agency in the Borough
of Manhattan, The City of New York, which initially shall be the Corporate Trust Office of the
Trustee. Transfers of the Senior Notes will also be registrable at any of the Company’s other
offices or agencies that it may maintain for that purpose.

     SECTION 1.4. Denominations.

     The Senior Notes may be issued in denominations of $2,000 or any multiple of $1,000 in excess
thereof.

2

 

     SECTION 1.5. No Sinking Fund.

     The Senior Notes are not entitled to the benefit of any sinking fund.

     SECTION 1.6. Global Securities.

     The Senior Notes will be issued in the form of one or more Global Securities registered in the
name of the Depositary or its nominee. Except under the limited circumstances described below,
Senior Notes represented by Global Securities will not be exchangeable for, and will not otherwise
be issuable as, Senior Notes in definitive form. The Global Securities described above may not be
transferred except by the Depositary to a nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary or to a successor Depositary or
its nominee.

     Owners of beneficial interests in such Global Securities will not be considered the holders
thereof for any purpose under the Indenture, and no Global Security representing a Senior Note
shall be exchangeable, except for another Global Security of like denomination and tenor to be
registered in the name of the Depositary or its nominee or to a successor Depositary or its
nominee. The rights of holders of such Global Securities shall be exercised only through the
Depositary.

     A Global Security shall be exchangeable for Senior Notes registered in the names of Persons
other than the Depositary or its nominee only as provided by Section 305 of the Original Indenture.
Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable
for Senior Notes registered in such names as the Depositary shall direct.

     SECTION 1.7. Transfer.

     No service charge will be made for any registration of transfer or exchange of Senior Notes,
but payment will be required of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection therewith.

     SECTION 1.8. Defeasance.

     The provisions of Sections 1202 and 1203 of the Original Indenture will apply to the Senior
Notes.

     SECTION 1.9. Optional Redemption.

     The Senior Notes will be redeemable, at the option of the Company, in whole at any time or in
part from time to time (a “Redemption Date”), at a redemption price (the “Redemption Price”) equal
to the greater of (i) 100% of the principal amount of the Senior Notes to be redeemed or (ii) an
amount equal to the sum of the present values of the remaining scheduled payments of principal and
interest on the Senior Notes to be redeemed, not including any portion of the payments of interest
accrued as of such Redemption Date, discounted to such Redemption Date on a semiannual basis
(assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate, plus 20 basis

3

 

points, as calculated by an Independent Investment Banker; plus in each case, accrued and
unpaid interest on the Senior Notes to be redeemed to, but excluding, such Redemption Date.

     If the Company has given notice as provided in the Original Indenture and made funds available
for the redemption of any Senior Notes called for redemption on the Redemption Date referred to in
that notice, those Senior Notes will cease to bear interest on that Redemption Date. Any interest
accrued to the date fixed for redemption will be paid as specified in such notice. The Company
will give written notice of any redemption of any Senior Notes to holders of the Senior Notes to be
redeemed at their addresses, as shown in the security register for the Senior Notes, at least 30
days and not more than 60 days prior to the date fixed for redemption. The notice of redemption
will specify, among other items, the date fixed for redemption, the redemption price and the
aggregate principal amount of the Senior Notes to be redeemed.

     If the Company chooses to redeem less than all of the Senior Notes, the particular Senior
Notes to be redeemed shall be selected by the Trustee not more than 45 days prior to the Redemption
Date. The Trustee will select the method in its sole discretion, in such manner as it shall deem
appropriate and fair, for the Senior Notes to be redeemed in part.

     “Comparable Treasury Issue” means the United States Treasury security selected by the
Independent Investment Banker as having a maturity comparable to the remaining term of the Senior
Notes to be redeemed that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the Senior Notes.

     “Comparable Treasury Price” means, with respect to any Redemption Date for the Senior Notes,
the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding
the highest and lowest of such Reference Treasury Dealer Quotations, or if the Company obtains
fewer than five such Reference Treasury Dealer Quotations, the average of all such quotations.

     “Independent Investment Banker” means an independent investment banking institution of
national standing appointed by the Company that is acceptable to the Trustee.

     “Reference Treasury Dealer” means each of Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner
& Smith Incorporated, Morgan Stanley & Co. Incorporated and two other primary U.S government
securities dealers (each, a “Primary Treasury Dealer”), as specified by the Company; provided that
if any of Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley
& Co. Incorporated or any Primary Treasury Dealer as specified by the Company shall cease to be a
Primary Treasury Dealer, the Company will substitute therefor another Primary Treasury Dealer and
if the Company fails to select a substitute within a reasonable period of time, then the substitute
will be a Primary Treasury Dealer selected by the Trustee after consultation with the Company.

4

 

     “Reference Treasury Dealer Quotations” means, with respect to the Reference Treasury Dealer
and any Redemption Date, the average, as determined by the Company, of the bid and asked prices for
the Comparable Treasury Issue (expressed, in each case, as a percentage of its principal amount)
quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m., New York City
time, on the third business day preceding such Redemption Date.

     “Treasury Rate” means the rate per year equal to the semiannual equivalent yield to maturity
of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such
Redemption Date. The Treasury Rate shall be calculated on the third business day preceding the
Redemption Date.

     SECTION 1.10. Events of Default.

     In addition to the Events of Default set forth in Section 501 of the Original Indenture, each
of the following will also constitute an “Event of Default” for the Senior Notes:

	 	•	 	default for 30 days in the payment of any interest on the Notes under the
Guarantee by the Guarantor;
	 
	 	•	 	default in the payment of principal of the Notes, or premium, if any, when due
under the Guarantee by the Guarantor;
	 
	 	•	 	default in the performance, or breach, of any covenant or warranty of the Guarantor
in the Indenture or the Guarantee (other than a covenant or warranty a default in the
performance of which or the breach of which is specifically dealt with elsewhere in
this Section), and continuance of such default or breach for a period of 90 days after
there has been given, by registered or certified mail, to the Guarantor by the Trustee
or to the Guarantor and the Trustee by the Holders of at least 25% in aggregate
principal amount of the Outstanding Securities of that series a written notice
specifying such default or breach and requiring it to be remedied and stating that
such notice is a “Notice of Default” hereunder;
	 
	 	•	 	the entry of a decree or order by a court having jurisdiction in the premises
adjudging the Guarantor bankrupt or insolvent, or approving as properly filed a
petition seeking reorganization, arrangement, adjustment or composition of or in
respect of the Guarantor under any applicable Federal or State bankruptcy, insolvency,
reorganization or other similar law, or appointing a receiver, liquidator, assignee,
trustee, sequestrator (or other similar official) of the Guarantor 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 unstayed and in effect for a
period of 90 consecutive days; or

5

 

	 	•	 	the Guarantee ceases to be in full force and effect (other than in accordance with
its terms) or the Guarantor denies or disaffirms its obligations under the Guarantee.

ARTICLE II

GUARANTEE

     SECTION 2.1. Guarantee.

     The Guarantor shall fully and unconditionally guarantee the Senior Notes pursuant to a
guarantee in substantially the form set forth in Exhibit B hereto.

ARTICLE III

MISCELLANEOUS

     SECTION 3.1. Recitals by the Company.

     The recitals in this First Supplemental Indenture are made by the Company and the Guarantor
only and not by the Trustee, and all of the provisions contained in the Original Indenture in
respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable
in respect of the Senior Notes and of this First Supplemental Indenture as fully and with like
effect as if set forth herein in full.

     SECTION 3.2. Application of Supplemental Indenture.

     Each and every term and condition contained in this First Supplemental Indenture that
modifies, amends or supplements the terms and conditions of the Original Indenture shall apply to
the Senior Notes created hereby and not to any future series of Securities established under the
Original Indenture.

     SECTION 3.3. Executed in Counterparts.

     This First Supplemental Indenture may be simultaneously executed in several counterparts, each
of which shall be deemed to be an original, and such counterparts shall together constitute one and
the same instrument.

6

 

     IN WITNESS WHEREOF, each party hereto has caused this First Supplemental Indenture to be duly
executed as of the day and year first above written.

	 	 	 	 	 
	 	PRINCIPAL FINANCIAL GROUP, INC.

 	 
	 	By:  	/s/ Joyce N. Hoffman
 	 
	 	 	Name:  	Joyce N. Hoffman      	 
	 	 	Title:  	Sr. Vice President & Corporate Secretary 	 
	 

	 	 	 	 	 
	 	PRINCIPAL FINANCIAL 

SERVICES, INC.

 	 
	 	By:  	/s/ Joyce N. Hoffman
 	 
	 	 	Name:  	Joyce N. Hoffman      	 
	 	 	Title:  	Sr. Vice President & Corporate Secretary 	 
	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK, 

as Trustee

 	 
	 	By:  	/s/ Van K. Brown
 	 
	 	 	Name:  	Van K. Brown      	 
	 	 	Title:  	Vice President 	 
	 

7

 

EXHIBIT A

[FORM OF GLOBAL NOTE]

(FORM OF FACE OF SECURITY)

     UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY 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 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.

     THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF DTC OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN
WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART
MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN DTC OR SUCH NOMINEE, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

PRINCIPAL FINANCIAL GROUP, INC.

6.05% Senior Notes due 2036

			
	 
	 	CUSIP: 74251V AA 0

ISIN: US74251VAA08
	 	 	 
	No.                     
	 	$[•]
	 	 	 

     PRINCIPAL FINANCIAL GROUP, INC., a corporation organized and existing under the laws of
Delaware (hereinafter called the “Company”, which term includes any successor corporation under the
Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or
registered assigns, the principal sum of                      Dollars on October 15, 2036, and to pay
interest thereon from October 16, 2006 or from the most recent Interest Payment Date to which
interest has been paid or

A-1

 

duly provided for, semi-annually on April 15 and October 15 in each year, commencing April 15,
2007, at the rate of 6.05% per annum, on the basis of a 360-day year consisting of twelve 30-day
months, until the principal hereof is paid or duly provided for or made available for payment.

     The interest so payable, and punctually paid or duly provided for, on any Interest Payment
Date will, 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, which shall be the April 1st or October 1st of each year
(whether or not a Business Day) next preceding such Interest Payment Date. Any such interest not
so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities of this series may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in said Indenture.

     Payment of the principal of (and premium, if any) and any interest on this Security will be
made at the office or agency of the Company maintained for that purpose in The City of New York, 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.

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

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

A-2

 

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

	 	 	 	 	 	 	 
	 	 	PRINCIPAL FINANCIAL GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,	 	 
	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Signatory	 	 

Dated: October 16, 2006

A-3

 

(FORM OF REVERSE OF SECURITY)

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”) issued and to be issued in one or more series under a Senior Indenture, dated as
of October 11, 2006 as supplemented and amended from time to time (herein called the “Indenture”),
between the Company and The Bank of New York, as trustee (herein called the “Trustee”, which term
includes any successor trustee under the Indenture), including by the First Supplemental Indenture
thereto dated as of October 16, 2006 among the Company, Principal Financial Services, Inc (the
“Guarantor”) and the Trustee (the “Supplemental 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, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be, authenticated and
delivered. This Security is one of the series designated on the face hereof, initially limited in
aggregate principal amount to $500,000,000.

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

     The Securities of this series will be redeemable, at the option of the Company, as set forth
in Section 1.9 of the Supplemental Indenture.

     The Indenture contains provisions for satisfaction, discharge and defeasance of the entire
indebtedness on this security, upon compliance by the Company with certain conditions set forth
therein.

     If an Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due and payable in the
manner and with the effect provided in the Indenture. Upon payment of the amount of principal so
declared due and payable and of interest on any overdue principal and overdue interest at the rate
per annum applicable to the Securities of this series set forth on the face hereof (in each case to
the extent that the payment of such interest shall be legally enforceable), all of the Company’s
obligations in respect of the payment of the principal of and interest, if any, on the Securities
of this series shall terminate.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting
the Holders of specified percentages in principal amount of the Securities of each series at the
time Outstanding,

A-4

 

on behalf of the Holders of all Securities of such series, to waive compliance by the Company
with certain provisions of the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and
binding upon such Holder and upon all future Holders of this Security and of any Security issued
upon the registration of transfer hereof or in exchange 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 obligation of the Company, which is absolute and unconditional, to pay
the principal of (and premium, if any) and interest 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 registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of (and premium, if any) and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities of this series, of authorized denominations and for the
same aggregate principal amount, will be issued to the designated transferee or transferees.

     The Securities of this series are issuable only in registered form without coupons in
denominations of $2,000 and in multiples of $1,000 in excess thereof. As provided in the Indenture
and subject to certain limitations therein set forth, Securities of this series are exchangeable
for a like aggregate principal amount of Securities of this series of 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 may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

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

     The obligations of the Company under the Indenture and the Securities of this series,
including payment of principal of, and premium, if any, and interest on the Securities of this
series, will be fully and unconditionally guaranteed by the Guarantor pursuant to the Guarantee
dated as of October 16, 2006.

     THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

A-5

 

     EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THE INDENTURE, THIS SECURITY OR THE TRANSACTION CONTEMPLATED HEREBY.

A-6

 

EXHIBIT B

FORM OF GUARANTEE

 

GUARANTEE

from

PRINCIPAL FINANCIAL SERVICES, INC., as Guarantor

to

THE BANK OF NEW YORK, as Trustee

Dated as of October 16, 2006

 

B-1

 

GUARANTEE

     This Guarantee (this “Guarantee”) is made and entered into as of October 16, 2006, from
PRINCIPAL FINANCIAL SERVICES, INC., a corporation duly organized and existing under the laws of the
State of Iowa and having its principal office at 711 High Street, Des Moines, Iowa 50392, as
guarantor (the “Guarantor”), to THE BANK OF NEW YORK, a New York banking corporation, as trustee
(the “Trustee”). Defined terms used herein without definition shall have the meanings given to them
in the Senior Indenture, dated as of October 11, 2006 between Principal Financial Group, Inc., a
Delaware corporation (the “Company”), and the Trustee, as supplemented by the First Supplemental
Indenture, dated as of October 16, 2006, among the Company, the Guarantor and the Trustee with
respect to the Securities as defined below (the “Indenture”).

RECITALS

     The Guarantor is a wholly-owned subsidiary of the Company and has duly authorized the
execution and delivery of this Guarantee to provide for the guarantee by the Guarantor for the
benefit of the Holders of the Company’s 6.05% Senior Notes due 2036 (the “Securities”) issued
pursuant to the Indenture.

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

ARTICLE I

REPRESENTATIONS AND WARRANTIES OF GUARANTOR

     SECTION 1.1 Guarantor Representations and Warranties.

     The Guarantor does hereby represent and warrant that it is a corporation duly incorporated and
in good standing under the laws of the State of Iowa, has the power to enter into and perform this
Guarantee and to own its corporate property and assets, has duly authorized the execution and
delivery of this Guarantee by proper corporate action and neither this Guarantee, the
authorization, execution, delivery and performance hereof, the performance of the agreements herein
contained nor the consummation of the transactions herein contemplated will violate in any material
respect any provision of law, any order of any court or agency of government or any agreement,
indenture or other instrument to which the Guarantor is a party or by which it or its property is
bound, or in any material respect be in conflict with or result in a breach of or constitute a
default under any indenture, agreement or other instrument or any provision of its certificate of

B-2

 

incorporation, bylaws or any requirement of law. This Guarantee constitutes the legal, valid
and binding obligation of the Guarantor enforceable against the Guarantor in accordance with its
terms, except as the enforceability hereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the rights of creditors generally and by
general equitable principles.

ARTICLE II

GUARANTEE OF OBLIGATIONS

     SECTION 2.1 Obligations Guaranteed.

     The Guarantor hereby unconditionally guarantees (a) to each Holder of a Security authenticated
and delivered by the Trustee or Authenticating Agent, (i) the full and prompt payment of the
principal of, and premium, if any, and interest on, and any Redemption Price with respect to, such
Security, when, where and as the same shall become due and payable, whether at the stated maturity
thereof, by acceleration, call for redemption or otherwise in accordance with the terms of such
Security and the Indenture and (ii) the full and prompt payment of interest on the overdue
principal and interest, if any, on such Security, at the rate specified in such Security and to the
extent lawful and (b) to the Trustee the full and prompt payment upon written demand therefor of
all amounts due it in accordance with the terms of the Indenture (collectively the “Guaranteed
Obligation”). If for any reason the Company shall fail punctually to pay any such Guaranteed
Obligation, the Guarantor hereby agrees to cause any such Guaranteed Obligation to be made
punctually when, where and as the same shall become due and payable, whether at the stated maturity
thereof, by acceleration, call for redemption or otherwise. All payments by the Guarantor hereunder
shall be paid in lawful money of the United States of America. This Guarantee is unsecured and
ranks equally in right of payment with all of the Guarantor’s existing and future senior
indebtedness.

     SECTION 2.2 Obligations Unconditional.

     The obligations of the Guarantor under this Guarantee shall be absolute, unconditional and
irrevocable and shall constitute a continuing guarantee of payment and not of collectability. Such
obligations shall remain in full force and effect until this Guarantee shall terminate in
accordance with the provisions of Section 5.1 hereof, and, to the maximum extent permitted by
applicable law, such obligations shall not be affected, modified, released or impaired by any state
of facts or the happening from time to time of any event, including, without limitation, any of the
following, whether or not with notice to, or the consent of, the Guarantor:

     (a) the waiver, compromise, settlement, release or termination of any or all of the
obligations, covenants or agreements of the Company contained in the Securities or the Indenture,
or of the payment, performance or observance thereof;

B-3

 

     (b) the failure to give notice to the Guarantor of the occurrence of any default or an Event
of Default under the terms and provisions of the Securities or the Indenture;

     (c) the assignment or purported assignment of any of the obligations, covenants and agreements
contained in this Guarantee;

     (d) the extension of the time for payment of any principal of, premium, if any, or interest
on, or any Redemption Price with respect to the Securities or of the time for performance of any
obligations, covenants or agreements under or arising out of the Securities or the Indenture or the
extension or the renewal of any thereof;

     (e) the modification or amendment (whether material or otherwise) of any obligation, covenant
or agreement set forth in the Securities or the Indenture;

     (f) the taking or the omission to take any of the actions referred to in this Guarantee or in
the Indenture;

     (g) any failure, omission or delay on the part of, or the inability of, the Trustee or the
Holders of the Securities to enforce, assert or exercise any right, power or remedy conferred on
the Trustee, such Holders or any other person in this Guarantee or in the Indenture for any reason;

     (h) the voluntary or involuntary liquidation, dissolution, merger, consolidation, sale or
other disposition of all or substantially all the assets, marshaling of assets and liabilities,
receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization,
arrangement, composition with creditors or readjustment of, or other similar proceedings affecting
the Company or any or all of its assets, or any allegation or contest of the validity of the
Securities or the Indenture or the disaffirmance of the Securities or the Indenture in any such
proceeding; it being specifically understood, consented and agreed to that this Guarantee shall
remain and continue in full force and effect and shall be enforceable against the Guarantor to the
same extent and with the same force and effect as if such proceedings had not been instituted, and
it is the intent and purpose of this Guarantee that the Guarantor shall and does hereby waive, to
the maximum extent permitted by applicable law, all rights and benefits which might accrue to the
Guarantor by reason of any such proceedings;

     (i) any event or action that would, in the absence of this clause, result in the release or
discharge by operation of law of the Guarantor from the performance or observance of any
obligation, covenant or agreement contained in this Guarantee;

     (j) the default or failure of the Guarantor fully to perform any of its obligations set forth
in this Guarantee;

     (k) the release, substitution or replacement of any security pledged for the benefit of the
Holders of the Securities under the Indenture;

B-4

 

     (l) the disposition by the Guarantor of any or all of its interest in any capital stock of the
Company, or any change, restructuring or termination of the corporate structure, ownership,
corporate existence or any rights or franchises of the Company;

     (m) any other circumstances which might otherwise constitute a legal or equitable discharge or
defense of a surety or a guarantor; or

     (n) any other occurrence whatsoever, whether similar or dissimilar to the foregoing.

     SECTION 2.3 No Waiver or Set-Off.

     The Guarantor agrees that, to the maximum extent permitted by law, (a) no act of commission or
omission of any kind or at any time on the part of the Trustee or any Holder of the Securities, or
their successors and assigns, in respect of any matter whatsoever shall in any way impair the
rights of the Trustee or such Holders to enforce any right, power or benefit under this Guarantee,
and (b) no set-off, counterclaim, reduction, or diminution of any obligation, or any defense of any
kind or nature (other than performance), which the Guarantor or the Company has or may have against
the Trustee or such Holders or any assignee or successor thereof shall be available hereunder to
the Guarantor.

     SECTION 2.4 Waiver of Notice; Expenses.

     The Guarantor hereby expressly waives notice from the Trustee or the Holders of the Securities
of their acceptance and reliance on this Guarantee. The Guarantor further waives, to the maximum
extent permitted by law, any right that it may have (a) to require the Trustee or the Holders of
the Securities to take action or otherwise proceed against the Company, (b) to require the Trustee
or the Holders of the Securities to proceed against or exhaust any security pledged for the benefit
of the Holders of the Securities under the Indenture or (c) to require the Trustee or the Holders
of the Securities otherwise to enforce, assert or exercise any other right, power or remedy that
may be available to the Trustee or such Holders. The Guarantor agrees to pay all costs, expenses
and fees, including all reasonable attorneys’ fees and expenses, that may be incurred by the
Trustee in enforcing or attempting to enforce this Guarantee or protecting the rights of the
Trustee or the Holders of the Securities following any default on the part of the Guarantor
hereunder, whether the same shall be enforced by suit or otherwise.

     SECTION 2.5 Subrogation of Guarantor; Subordination.

     Notwithstanding any payment or payments made by the Guarantor, the Guarantor agrees that it
will not enforce, by reason of subrogation, contribution, indemnity or otherwise, any rights the
Trustee or the Holders of the Securities may have against the Company until all of the Guaranteed
Obligations shall have been finally, indefeasibly and unconditionally paid in full. Any claim of
the Guarantor against the Company arising from payments made by the Guarantor by reason of this
Guarantee shall be in all respects subordinated to the final, indefeasible, unconditional, full and
complete payment or discharge of all of the Guaranteed Obligations guaranteed hereby.

B-5

 

     SECTION 2.6 Reinstatement.

     This Guarantee shall continue to be effective, or be automatically reinstated, as the case may
be, if at any time payment, or any part thereof, made by or on behalf of the Company or the
Guarantor in respect of any of the Securities is rescinded or must otherwise be restored or
returned by the Trustee or any Holder of such Securities for any reason whatsoever, whether upon
the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Company, or upon or
as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar
officer for the Company or any substantial part of its properties, or otherwise, all as though such
payment had not been made.

     SECTION 2.7 Rights of Holders.

     The Guarantor expressly acknowledges that the Trustee has the right to enforce this Guarantee
on behalf of the Holders of the Securities in accordance with and subject to the provisions of the
Indenture.

ARTICLE III

COVENANTS OF THE GUARANTOR

     SECTION 3.1 Consolidation or Merger of the Guarantor.

     The Guarantor may merge or consolidate with or into any other Person or sell, convey, transfer
or otherwise dispose of all or substantially all of its assets to any Person, if (a) (i) in the
case of a merger or consolidation, the Guarantor or the Company is the surviving Person or (ii) in
the case of a merger or consolidation where the Guarantor or the Company is not the surviving
Person and in the case of any sale, conveyance, transfer or other disposition, the resulting,
surviving or transferee Person is organized and existing under the laws of the United States or a
State thereof or the District of Columbia and such Person expressly assumes by supplemental
agreement all the obligations of the Guarantor under this Guarantee, (b) immediately after giving
effect to such transaction, no Event of Default, and no event which, after notice or lapse of time
or both, would become an Event of Default, shall have happened and be continuing and (c) the
Guarantor shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel
each stating that such merger, consolidation, sale, conveyance, transfer or other disposition
complies with this Section and that all conditions precedent herein provided for relating to such
transaction have been complied with. In the event of the assumption by a successor Person of the
obligations of the Guarantor as provided in clause (a)(ii) of the immediately preceding sentence,
such successor Person shall succeed to and be substituted for the Guarantor hereunder and all such
obligations of the Guarantor shall terminate.

B-6

 

     SECTION 3.2 Reports by the Guarantor.

     During the term hereof, the Guarantor covenants:

     (a) to file with the Trustee, within 30 days after the Guarantor is required to file the same
with the Commission, copies of the annual reports and of the information, documents and other
reports (or copies of such portions of any of the foregoing as the Commission may from time to time
by rules and regulations prescribe) which the Guarantor may be required to file with the Commission
pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934, as amended; or, if
the Guarantor is not required to file information, documents or reports pursuant to either of such
sections, then to file with the Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission pursuant to Section 314(a) of the Trust
Indenture Act such of the supplementary and periodic information, documents and reports which may
be required pursuant to section 13 of the Securities Exchange Act of 1934, as amended, in respect
of a security listed and registered on a national securities exchange as may be prescribed from
time to time in such rules and regulations;

     (b) to file with the Trustee and the Commission, in accordance with the rules and regulations
prescribed from time to time by the Commission pursuant to Section 314(a) of the Trust Indenture
Act such additional information, documents and reports with respect to compliance by the Guarantor
with the conditions and covenants provided for in this Guarantee and the Indenture, as may be
required from time to time by such rules and regulations;

     (c) to transmit to all Holders of the Securities within 30 days after the filing thereof with
the Trustee, in the manner and to the extent provided in Section 313(c) of the Trust Indenture Act,
such summaries of any information, documents and reports required to be filed by the Guarantor
pursuant to subsections (a) and (b) of this Section 3.2, as may be required by rules and
regulations prescribed from time to time by the Commission pursuant to Section 314(a) of the Trust
Indenture Act; and

     (d) to deliver to the Trustee, within 120 days after the end of each fiscal year of the
Guarantor, a brief certificate from the principal executive officer, principal financial officer,
or principal accounting officer as to his or her knowledge of the Guarantor’s compliance with all
conditions and covenants under this Guarantee. For purposes of this Section 3.2, such compliance
shall be determined without regard to any period of grace or requirement of notice provided under
this Guarantee.

ARTICLE IV

NOTICES

B-7

 

     SECTION 4.1 Notices.

     All notices, certificates or other communications to the Guarantor hereunder shall be
sufficient for every purpose hereunder if in writing and mailed, first-class postage prepaid, to
the Guarantor addressed to it at Principal Financial Services, Inc. 711 High Street, Des Moines,
Iowa 50392, Attention: General Counsel, or at any other address previously furnished in writing to
the Trustee by the Guarantor.

ARTICLE V

MISCELLANEOUS

     SECTION 5.1 Effective Date; Termination.

     The obligations of the Guarantor hereunder shall arise absolutely and unconditionally upon the
date of the initial delivery of and authentication of the Securities. Subject to Section 2.6, this
Guarantee shall terminate on such date as the Indenture is discharged and satisfied.

     SECTION 5.2 Evidence of Compliance with Conditions Precedent.

     The Guarantor shall provide the Trustee with such evidence of compliance with such conditions
precedent, if any, provided for in this Guarantee that relate to the matters set forth in Section
314(c) of the Trust Indenture Act. Any certificate or opinion required to be given by an officer
pursuant to Section 314(c)(1) may be given in the form of an Officers’ Certificate.

     SECTION 5.3 Remedies Not Exclusive.

     No remedy herein conferred upon or reserved to the Trustee or Holders of the Securities is
intended to be exclusive of any other available remedy or remedies, but, to the maximum extent
permitted by law, each and every such remedy shall be cumulative and shall be in addition to every
other remedy given under this Guarantee or now or hereafter existing at law or in equity. No delay
or omission to exercise any right or power accruing upon any default, omission or failure of
performance hereunder shall impair any such right or power or shall be construed to be a waiver
thereof, but any such right or power may be exercised from time to time and as often as may be
deemed expedient. In order to entitle the Trustee and Holders of the Securities to exercise any
remedy reserved to any of them in this Guarantee, to the maximum extent permitted by applicable
law, it shall not be necessary to give any notice. In the event any provision contained in this
Guarantee should be breached, and thereafter duly waived, such waiver shall be limited to the
particular breach so waived and shall not be deemed to waive any other breach hereunder. To the
maximum extent permitted by applicable law, no waiver, amendment, release or modification of this
Guarantee shall be established by conduct, custom or course of dealing, but solely by an instrument
in writing duly executed by the parties to this Guarantee and consistent with the terms of the
Indenture.

B-8

 

     SECTION 5.4 Limitation of Guarantor’s Liability.

     Any term or provision of this Guarantee notwithstanding, the Guarantee shall not exceed the
maximum amount that can be guaranteed by the Guarantor without rendering the Guarantee voidable
under applicable law relating to fraudulent conveyance or fraudulent transfer or similar laws
affecting the rights of creditors generally.

     SECTION 5.5 Entire Agreement; Counterparts.

     This Guarantee constitutes the entire agreement, and supersedes all prior agreements and
understandings, both written and oral, between the parties with respect to the subject matter
hereof and may be executed simultaneously in several counterparts, each of which shall be deemed an
original, and all of which together shall constitute one and the same instrument.

     SECTION 5.6 Severability.

     To the maximum extent permitted by applicable law, the invalidity or unenforceability of any
one or more phrases, sentences, clauses or sections contained in this Guarantee shall not affect
the validity or enforceability of the remaining portions of this Guarantee, or any part thereof.

     SECTION 5.7 Governing Law.

     THIS GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF. This Guarantee is subject to the
Trust Indenture Act and if any provision hereof limits, qualifies or conflicts with a provision of
the Trust Indenture Act that is required by the Trust Indenture Act to be a part of and govern this
Guarantee, the latter provision shall control. If any provision of this Guarantee modifies or
excludes any provision of the Trust Indenture Act that may be so modified or excluded, the latter
provision shall be deemed to apply to this Guarantee as so modified, or to be excluded, as the case
may be, whether or not such provision of this Guarantee refers expressly to such provision of the
Trust Indenture Act. The Guarantor shall be an “obligor” with respect to the Securities as such
term is defined in and solely for the purposes of the Trust Indenture Act and shall comply with
those provisions of the Indenture compliance with which is required by an “obligor” under the Trust
Indenture Act.

B-9

 

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

	 	 	 	 	 	 	 
	 	 	PRINCIPAL FINANCIAL SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

B-10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]