Document:

Exhibit 10.5  

San Rafael Bancorp

2003 Non-Employee Directors' Stock Option Plan

Adopted On June 17, 2003

Approved By Shareholders On July 15, 2003  

1.     Purpose.  

        (a)   The
purpose of the San Rafael Bancorp 2003 Non-Employee Directors' Stock Option Plan (the "Plan") is to provide a means by which each director of San Rafael
Bancorp (the "Company") and each director of Tamalpais Bank ("Tamalpais Bank") who is not otherwise an employee of the Company or of Tamalpais Bank or of any Affiliate (each such person being
hereafter referred to as a "Non-Employee Director") shall be given an opportunity to purchase stock of the Company. 

        (b)   The
word "Affiliate" as used in the Plan means any parent corporation or subsidiary corporation of the Company or of Tamalpais Bank as those terms are defined in
Sections 424(e) and (f), respectively, of the Internal Revenue Code of 1986, as amended from time to time (the "Code"). 

        (c)   The
Company, by means of the Plan, seeks to retain the services of persons now serving as Non-Employee Directors, to secure and retain the services of
persons capable of serving in such capacity, and to provide incentives for such persons to exert maximum efforts for the success of the Company and Tamalpais Bank. 

2.     Administration.  

        (a)   The
Plan shall be administered by the Board of Directors of the Company (the "Board") unless and until the Board delegates administration to a committee, as provided in
subsection 2(b). 

        (b)   The
Board may delegate administration of the Plan to a committee composed of not fewer than two (2) members of the Board (the "Committee"). If administration is
delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board, subject, however, to such resolutions, not
inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Committee shall consist of two or more individuals who are "non-employee directors"
under Rule 16b-3 or its successor ("Rule 16b-3") under the Securities Exchange Act of 1934, as amended (the "Exchange Act") and who qualify the Committee to
administer the Plan as contemplated under Rule 16b-3. The Board may abolish the Committee at any time and revest in the Board the administration of the Plan. 

3.     Shares Subject To The Plan.  

        (a)   Subject
to the provisions of Section 10 relating to adjustments upon changes in stock, the stock that may be sold pursuant to options granted under the Plan shall
not exceed in the aggregate sixty-seven thousand (67,000) shares of the Company's common stock. If any option granted under the Plan shall for any reason expire or otherwise terminate without having
been exercised in full, the stock not purchased under such option shall again become available for the Plan. 

        (b)   The
stock subject to the Plan may be unissued shares or reacquired shares, bought on the market or otherwise. 

        (c)   At
no time shall the total number of shares issuable upon exercise of all outstanding options and the total number of shares provided for under any stock bonus or
similar plan of the Company exceed thirty percent (30%) of the then outstanding shares of the Company's common stock, calculated 

1

 

in
accordance with the conditions and exclusions of Rule 260.140.45 of the California Code of Regulations, or successor statute or regulation. 

4.     Eligibility.  

        Options shall be granted only to Non-Employee Directors of the Company and of Tamalpais Bank. 

5.     Option Provisions.  

        All options granted under the Plan shall be nonstatutory stock options. No incentive stock options within the meaning of Section 422 of the Code shall be
granted under the Plan. The terms of options granted pursuant to the Plan shall be set forth in an option agreement (the "Stock Option Agreement"). Options granted pursuant to the Plan shall be
subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the express provisions of the Plan or with applicable law, as the Board (or
the Committee, if applicable) shall determine. 

        (a)   The
term of each option commences on the date it is granted and, unless sooner terminated, as set forth herein, expires on the date ("Expiration Date") ten
(10) years from the date of grant. If the optionee's service as a Non-Employee Director terminates for any reason or for no reason, the option shall terminate on the earlier of the
Expiration Date or the date specified in the Stock Option Agreement, provided that such date in the Stock Option Agreement is at least one month following the date of termination of such service.
Notwithstanding the foregoing, if such termination of service is due to the optionee's death or permanent and total disability (within the meaning of Section 22(e)(3) of the Code), the option
shall terminate on the earlier of the Expiration Date or one (1) year following the date of the optionee's death or permanent and total disability. In any and all circumstances, an option may
be exercised following termination of the optionee's service as a Non-Employee Director only as to that number of shares as to which the option was vested and exercisable on the date of
termination of all such service under the provisions of subsection 5(b) and the Stock Option Agreement. 

        (b)   An
option shall vest and become exercisable as set forth in the Stock Option Agreement. 

        (c)   The
exercise price of each option shall be one hundred percent (100%) of the fair market value of the common stock subject to such option on the date such option is
granted. "Fair market value" shall be determined by the Board in good faith. The Board may use any reasonable valuation method for this purpose, including the valuation methods described in Treas.
Reg. Section 20.2031-2. 

        (d)   Manner
of Exercise. 

        (i)    To
the extent the right to purchase shares has accrued hereunder, options may be exercised from time to time by written notice to the Company stating the number of
shares with respect to which the option is being exercised, and the time of the delivery thereof, which shall not be less than fifteen (15) days and not more than thirty (30) days after
the giving of such notice, unless an earlier date shall have been mutually agreed upon. Shares of common stock of the Company purchased under options granted under the Plan shall, at the time of the
notice specifying the date of delivery, be paid for in full in cash or, with the prior written consent of the Company, in whole or in part through the surrender of previously owned shares of common
stock of the Company. To the extent payment is being made with cash, the optionee shall deliver a certified or official bank check or the equivalent thereof acceptable to the Company. If shares of
common stock are tendered as payment, such shares shall be valued at their fair market value, determined as provided above, as of the date of the notice given to the Company by the optionee with
respect to such exercise. 

        (ii)   At
the time specified in the notice for delivery of the certificate, the Company shall, without transfer or issue tax to the optionee (or other person entitled to
exercise the option), 

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deliver
to the optionee (or other person entitled to exercise the option) at the principal office of the Company, or such other place as shall be mutually acceptable, a certificate or certificates for
such shares; provided, however, that the time of such delivery may be postponed by the Company for such period as may be required for it with reasonable diligence to comply with any requirements of
law. If the optionee (or other person entitled to exercise the option) fails to pay for all or any part of the number of shares specified in such notice or fails to accept delivery of such shares upon
tender of delivery thereof, the right to exercise the option with respect to such undelivered shares may be terminated. The Board may require that a partial exercise of an option may be for no less
than a stated minimum number of shares. 

        (e)   An
option shall not be transferable or assignable except by will or by the laws of descent and distribution, or pursuant to a qualified domestic relations order
satisfying the requirements of Rule 16b-3 under the Exchange Act and shall be exercisable during the lifetime of the person to whom the option is granted only by such person (or by
his guardian or legal representative) or transferee pursuant to such an order. Notwithstanding the foregoing, the optionee may, by delivering written notice to the Company in a form satisfactory to
the Company, designate a third party who, in the event of the death of the optionee, shall thereafter be entitled to exercise the option. 

        (f)    The
Company may require any optionee, or any person to whom an option is transferred under subsection 5(e), as a condition of exercising any such option: (i) to
give written assurances satisfactory to the Company as to the optionee's knowledge and experience in financial and business matters; and (ii) to give written assurances satisfactory to the
Company stating that such person is acquiring the stock subject to the option for such person's own account and not with any present intention of selling or otherwise distributing the stock. These
requirements, and any assurances given pursuant to such requirements, shall be inoperative if (i) the issuance of the shares upon the exercise of the option has been registered under a
then-currently-effective registration statement under the Securities Act of 1933, as amended (the "Securities Act"), or (ii), as to any particular requirement, a determination is made by
counsel for the Company that such requirement need not be met in the circumstances under the then-applicable securities laws. 

        (g)   Notwithstanding
anything to the contrary contained herein, an option may not be exercised unless the shares issuable upon exercise of such option are then registered
under the Securities Act or, if such shares are not then so registered, the Company has determined that such exercise and issuance would be exempt from the registration requirements of the Securities
Act. 

6.     Covenants Of The Company.  

        (a)   During
the terms of the options granted under the Plan, the Company shall keep available at all times the number of shares of stock required to satisfy such options. 

        (b)   The
Company shall seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to issue and sell shares
of stock upon exercise of the options granted under the Plan; provided, however, that this undertaking shall not require the Company to register under the Securities Act either the Plan, any option
granted under the Plan, or any stock issued or issuable pursuant to any such option. If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the
authority which counsel for the Company deems necessary for the lawful issuance and sale of stock under the Plan, the Company shall be relieved from any liability for failure to issue and sell stock
upon exercise of such options. 

7.     Use Of Proceeds From Stock.  

        Proceeds from the sale of stock pursuant to options granted under the Plan shall constitute general funds of the Company. 

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8.     Miscellaneous.  

        (a)   Neither
an optionee nor any person to whom an option is transferred under subsection 5(e) shall be deemed to be the holder of, or to have any of the rights of a holder
with respect to, any shares subject to such option unless and until such person has satisfied all requirements for exercise of the option pursuant to its terms. 

        (b)   Throughout
the term of any option granted pursuant to the Plan, the Company shall make available to the holder of such option, not later than one hundred twenty
(120) days after the close of each of the Company's fiscal years during the option term, upon request, such financial and other information regarding the Company as comprises the annual report
to the shareholders of the Company provided for in the bylaws of the Company and such other information regarding the Company as the holder of such option may reasonably request. 

        (c)   Nothing
in the Plan or in any instrument executed pursuant thereto shall confer upon any Non-Employee Director any right to continue in the service of the
Company or Tamalpais Bank or any Affiliate or shall affect any right of the Company, its Board or shareholders or Tamalpais Bank or its Board or shareholders or any Affiliate to terminate the service
of any Non-Employee Director with or without cause. 

        (d)   No
Non-Employee Director, individually or as a member of a group, and no beneficiary or other person claiming under or through such Non-Employee
Director, shall have any right, title or interest in or to any option reserved for the purposes of the Plan except as to such shares of common stock, if any, as shall have been reserved for such
Non-Employee Director pursuant to an option granted to such Non-Employee Director. 

        (e)   In
connection with each option made pursuant to the Plan, it shall be a condition precedent to the Company's obligation to issue or transfer shares to a
Non-Employee Director, or to evidence the removal of any restrictions on transfer, that such Non-Employee Director make arrangements satisfactory to the Company to insure that
the amount of any federal or other withholding tax required to be withheld with respect to such sale or transfer, or such removal or lapse, is made available to the Company for timely payment of such
tax. 

9.     Restrictions on Shares; Notification of Sale.  

        (a)   Each
Stock Option Agreement shall contain an agreement by the optionee that if he or she at any time contemplates the disposition of any of the stock acquired pursuant
to the Plan, he or she shall first notify the Company of such proposed disposition and shall thereafter cooperate with the Company in complying with all applicable requirements of law which, in the
opinion of the Company, must be satisfied prior to the making of such disposition. 

        (b)   The
Stock Option Agreements setting forth the terms and conditions of options granted under this Plan may require that a participant acquire common stock upon exercise
only for investment and not for resale or distribution, and restrict transfer of the common stock so received as may be necessary under applicable securities laws. 

10.   Adjustments or Changes In Stock.  

        (a)   In
the event that the outstanding shares of common stock are hereafter increased or decreased or changed into or exchanged for a different number or kind of shares or
other securities of the Company or of another corporation, by reason of reorganization, merger, consolidation, recapitalization, reclassification, stock split, combination of shares, dividend payable
in common stock, or acquisition, or any similar transaction, in which the Company receives no additional consideration other than shares or other securities, appropriate adjustment shall be made by
the Board in the number and kind of shares for the purchase of which options may be granted under the Plan. In 

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addition,
the Board shall make appropriate adjustment in the number and kind of shares as to which outstanding options or portions thereof then unexercised, shall be exercisable, so that any
participant's proportionate interest in the Company by reason of rights under unexercised portions of such option shall be maintained as before the occurrence of such event. Such adjustment in
outstanding options shall be made without change in the total price applicable to the unexercised portion of the option and with a corresponding adjustment, if necessary, in the option price per
share. 

        (b)   In
the event of a dissolution or liquidation of the Company, a merger, consolidation, acquisition, or other reorganization involving the Company or a principal
subsidiary, in which the Company or such principal subsidiary is not the surviving or resulting corporation, or a sale by the Company of all or substantially all of its assets, the Board shall cause
the termination of all options outstanding hereunder as of the effective date of such transaction; provided, however, that not less than thirty (30) days written notice of the expected
effective date of such transaction shall be given to each optionee, the shares of all options held by each optionee which have not previously forfeited shall immediately become fully vested, and each
optionee shall have the right, on the effective date of such termination, to exercise his or her option as to all or any part of the shares covered thereby, including shares as to which such option
would not otherwise be exercisable. In any event, the surviving or resulting corporation may, in its absolute and uncontrolled discretion, tender options to purchase its shares on its terms and
conditions. 

11.   Amendment Of The Plan.  

        (a)   The
Board at any time, and from time to time, may amend the Plan, provided, however, that the Board shall not amend the plan more than once every six (6) months,
with respect to the provisions of the Plan which relate to the amount, price and timing of grants, other than to comport with changes in the Code, the Employee Retirement Income Security Act, or the
rules thereunder. Except as provided in Section 10 relating to adjustments upon changes in stock, no amendment shall be effective unless approved by the shareholders of the Company within
twelve (12) months before or after the adoption of the amendment, where the amendment will: 

        (i)    Increase
the number of shares which may be issued under the Plan; 

        (ii)   Modify
the requirements as to eligibility for participation in the Plan (to the extent such modification requires shareholder approval in order for the Plan to comply
with the requirements of Rule 16b-3); or 

        (iii)  Modify
the Plan in any other way if such modification requires shareholder approval in order for the Plan to comply with the requirements of
Rule 16b-3. 

        (b)   Rights
and obligations under any option granted before any amendment of the Plan shall not be impaired by such amendment unless (i) the Company requests the
consent of the person to whom the option was granted and (ii) such person consents in writing. 

12.   Termination Or Suspension Of The Plan.  

        (a)   The
Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on June 16, 2013. No options may be granted under the
Plan while the Plan is suspended or after it is terminated. 

        (b)   Rights
and obligations under any option granted while the Plan is in effect shall not be impaired by suspension or termination of the Plan, except with the consent of
the person to whom the option was granted. 

        (c)   The
Plan shall terminate upon the occurrence of any of the events described in subsection 10(b) above. 

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13.   Effective Date Of Plan; Conditions Of Exercise.  

        (a)   The
Plan shall become effective upon adoption by the Board of Directors, subject to the condition subsequent that the Plan is approved by the shareholders of the
Company. 

        (b)   No
option may be granted under the Plan unless and until the condition of subsection 13(a) above has been met. 

14.   Financial Information.  

        (a)   The
Company shall annually deliver financial statements of the Company to all Optionees to whom such delivery is required by Section 260.140.46 of the California
Code of Regulations, or successor statute or regulation. 

6

   SAN RAFAEL BANCORP  

STOCK OPTION AGREEMENT

SAN RAFAEL BANCORP NON-EMPLOYEE DIRECTORS' STOCK OPTION PLAN  

        THIS STOCK OPTION AGREEMENT ("Agreement") is made as of the day
of                        , 20    , by and between San Rafael Bancorp, a California corporation
("Company"), and                        ("Optionee"). 

RECITAL 

        The
Board of Directors of the Company (the "Board") pursuant to the San Rafael Bancorp Non-Employee Directors' Stock Option ("Plan"), has determined that it desires to grant
to Optionee a nonstatutory stock option to purchase shares of the common stock of the Company on the terms and conditions set forth below. 

        NOW,
THEREFORE, the parties agree as follows: 

        1.    Stock Subject to Option.    The Company hereby grants to Optionee, under and pursuant to the Plan, the right and
option ("Option") to purchase, on the terms and conditions hereinafter set forth, an aggregate of                        
(            ) shares of the Company's common stock. The Option is hereby
designated as a nonstatutory stock option and shall not be an "incentive stock option," as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"). 

        2.    Exercise; Exercisability and Vesting.    Unless otherwise provided in the Plan or elsewhere in this Agreement,
the Option shall vest and become exercisable in installments as follows. The Option shall vest and become exercisable in five (5) equal annual installments of 20% each on the one year
anniversaries of the date hereof. The first installment shall vest and become exercisable on the one year anniversary of the date hereof; the firth (and final) installment shall vest and become
exercisable on the fifth anniversary of the date hereof. 

        Except
as otherwise provided in the Plan or this Agreement, the Option shall continue to vest and become exercisable only for so long as Optionee continues to serve as a
Non-Employee Director (as defined in the Plan) or the Company or of Tamalpais Bank. In no event shall the Company be required to issue fractional shares. 

        3.    Option Price.    The purchase price for shares upon exercise of the Option shall be
$                        per share,
which is 100% of the per share fair market value of the shares of the Company's common stock as of the date of grant of the Option, said value having been established by the Board pursuant to the
Plan. Optionee is in agreement that $                        is the fair market value of the shares of the Company's common stock
as of the date of the grant of the Option. 

        4.    Term of Option; Termination.    The term of this Agreement and the Option shall commence on the date hereof, and
expire ten (10) years from the date hereof, that is, at 5:00 p.m. Pacific Time, on                ,
            , or at such earlier time as provided herein. 

        5.    Manner of Exercise of the Option.    To the extent that the right to purchase shares has vested hereunder, the
Option may be exercised from time to time by written notice to the Company stating the number of shares with respect to which the Option is being exercised, and the time of the delivery thereof, which
shall not be less than fifteen (15) days and not more than thirty (30) days after the giving of such notice, unless an earlier date shall have been mutually agreed upon. Shares of common
stock purchased pursuant to the exercise of the Option shall, at the time of the notice specifying the date of delivery, be paid for in full, in cash or, with the prior written consent of the Company,
in whole or in part through the surrender of previously owned shares of common stock. To the extent payment is being made with cash, Optionee shall deliver a certified or official bank check or the
equivalent thereof acceptable to the Company. If shares of common stock are tendered as payment, such shares shall be 

1

 

valued
at their fair market value, as determined by the Company in accordance with the Plan as of the date the above notice is given to the Company. At the time specified in the notice for delivery of
the certificate, the Company shall, without transfer or issue tax to Optionee (or other person entitled to exercise the Option), deliver to Optionee (or other person entitled to exercise the Option)
at the principal office of the Company, or such other place as shall be mutually acceptable, a certificate or certificates for such shares; provided, however, that the time of such delivery may be
postponed by the Company for such period as may be required for it with reasonable diligence to comply with any requirements of law. If Optionee (or other person entitled to exercise the Option) fails
to pay for all or any part of the number of shares specified in such notice or fails to accept delivery of such shares upon tender of delivery thereof, the right to exercise the Option with respect to
such undelivered shares may be terminated. The Board may require that a partial exercise of the Option be for no less than a stated minimum number of shares. 

        6.    Non-Assignability of Option.    The Option is not transferable or assignable except by will or by
the laws of descent and distribution, or pursuant to a qualified domestic relations order satisfying the requirements of Rule 16b-3 of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"). During Optionee's lifetime, the Option may be exercised only by Optionee or by a transferee pursuant to a qualified domestic relations order. Notwithstanding the
foregoing, Optionee may by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of Optionee's death, shall thereafter be entitled
to exercise the Option. 

        7.    Termination of Service as a Non-Employee Director.    

        (a)   In
the event the Optionee's service as a Non-Employee Director (as defined in the Plan) terminates due to death or permanent and total disability (as defined
in Section 22(e)(3) of the Code), then the Option shall terminate on the earlier of the date set forth in Section 4 above or the date six (6) months following the date of the
Optionee's death or permanent and total disability. 

        (b)   In
the event the Optionee's service as a Non-Employee Director (as defined in the Plan) terminates for any other reason than that specified in
subsection 7(a) above, then the Option shall terminate on the earlier of the date set forth in Section 4 above or the date 30 days following such termination of service. 

        8.    Rights as a Shareholder.    Optionee shall have no rights as a shareholder with respect to any shares of common
stock of the Company until the date of issuance of a stock certificate to Optionee for such shares. No adjustment shall be made for dividends or other rights for which the record date is prior to the
date of such issuance, except as otherwise provided under the Plan. 

        9.    Restrictions on Transfer of Shares; Notification of Sale.    Optionee by accepting this grant represents and
agrees, for himself or herself and his or her transferees, that all stock will be acquired for investment and not for resale or distribution. Upon exercise of any portion of the Option, the person
entitled to exercise the same shall, upon request of the Company, furnish evidence satisfactory to the Company (including a written and signed representation) to the effect that the stock is being
acquired in good faith for investment and not for resale or distribution. Furthermore, the Company, at its sole discretion, may take all reasonable steps, including affixing a legend, which may be in
substantially the following form, on certificates embodying the shares: 

The
shares represented by this certificate have not been registered under the Securities Act of 1933 or qualified under the California Corporate Securities Law of 1968 and may not be sold, pledged,
hypothecated or otherwise transferred or offered for sale in the absence of an effective registration statement with respect to them under the Act and qualification under applicable blue sky law, or a
written opinion of counsel for the optionee which opinion shall be acceptable to counsel for the issuer that registration and qualification are not required. 

2

 

to
assure itself against any sale or distribution by Optionee which does not comply with the Plan or any federal or state securities laws. In addition to the other restrictions on transfer set forth
herein, if Optionee at any time contemplates the disposition of any of the stock acquired upon the exercise of the Option (whether by sale, exchange, gift or other form of transfer), he or she shall
first notify the Company of such proposed disposition and shall thereafter cooperate with the Company in complying with all applicable requirements of law which, in the opinion of the Company, must be
satisfied prior to the making of such disposition. Before consummating such disposition, unless this requirement is waived by the Company, Optionee shall provide to the Company an opinion of
Optionee's counsel, that such disposition will not result in a violation of any state or federal securities laws or regulations. 

        10.    Withholding Taxes.    Whenever the Company proposes or is required to issue or transfer shares of common stock
under this Agreement, the Company shall have the right to require Optionee to remit to the Company an amount sufficient to satisfy any federal, state and/or local withholding tax requirements prior to
the delivery of any certificate or certificates for such shares. Alternatively, the Company may issue or transfer such shares of common stock net of the number of shares sufficient to satisfy the
withholding tax requirements. For withholding tax purposes, the shares of common stock shall be valued as provided in the Plan on the date the withholding obligation is incurred. 

        11.    No Obligation to Exercise.    The granting of the Option hereunder shall impose no obligation upon Optionee to
exercise the Option as to the shares or any portion thereof covered thereby. 

        12.    Incorporation of San Rafael Bancorp Non-Employee Directors' Stock Option Plan.    The Option is
granted by the Company pursuant to the Plan, adopted by the Board and approved by the shareholders of the Company. The parties hereby agree that the terms and conditions of the Plan, as now in effect,
shall by this reference be incorporated in this Agreement as though set forth in full. Optionee acknowledges receipt of a copy of the Plan. A copy of the Plan shall also be maintained at the principal
office of the Company and made available to Optionee for inspection during the business hours of the Company. In the event of any conflict between the provisions of this Agreement and the provisions
of the Plan, then the provisions of the Plan shall be controlling. 

        13.    Notices.    Any notices required or permitted to be given under this Agreement shall be sufficient if in
writing and if sent by registered or certified mail to the address indicated on the signature page of this Agreement for such party, or such other address as one may communicate to the other in
writing. 

        14.    Waiver of Breach.    The waiver by either party of the breach of any provision of this Agreement shall not
operate or be construed as a waiver of any subsequent breach by any such party. 

        15.    Assignment.    The rights and obligations of the Company and Optionee under this Agreement shall inure to the
benefit of and shall be binding upon their successors and assigns, except that the right to exercise the Option herein provided for shall not be assignable except to the extent set forth in
Section 6 hereof. 

        16.    Arbitration.    The parties agree that any and all disputes arising out of the terms of this Agreement and
their interpretation shall be subject to binding arbitration in Marin County, California, before the American Arbitration Association under its employment dispute rules, or by a judge to be mutually
agreed upon. The parties agree that the prevailing party in any arbitration shall be entitled to injunctive relief in any court of competent jurisdiction to enforce the arbitration award. The parties
agree that the prevailing party in any arbitration may be awarded its reasonable attorney's fees and cost (except that the costs of the arbitrator shall not be borne by Optionee, if the Company is the
prevailing party). The parties agree to waive their rights to a jury trial as to matters arising out of the terms of this agreement. 

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        17.    Entire Agreement.    This instrument contains the entire Agreement of the parties. It may not be changed
orally, but only by agreement in writing signed by the parties against whom enforcement of any waiver, change, modification, extension, or discharge is sought. 

[Signature
page follows.] 

4

 

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the            day
of                        , 20        .
 

	 	 	SAN RAFAEL BANCORP,

a California corporation

851 Irwin Street

San Rafael, CA 94901
	

 	
 	

By	
 	

    

	

 	
 	

Its	
 	

    

	

 	
 	

    
 [Name of Optionee]
	

 	
 	

    

	

 	
 	

    
 [Address of Optionee]
	

 	
 	

    
 [Signature of Optionee]

5Exhibit
4.1

 

BUNGE LIMITED
FINANCE CORP.,

as Issuer

 

 

BUNGE LIMITED,

as Guarantor

 

 

AND

 

 

SUNTRUST BANK,

as Trustee

 

5.875% Senior
Notes Due 2013

 

 

INDENTURE

 

Dated as of
May 19, 2003

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE 1

  
	
  DEFINITIONS AND INCORPORATION BY REFERENCE

  
	
   

  	
   

  	
  PAGE

  	 

	
  Section 1.01.

  	
  Definitions.

  	
  1

  
	
  Section 1.02.

  	
  Incorporation by Reference of Trust
  Indenture Act

  	
  12

  
	
  Section 1.03.

  	
  Rules of Construction

  	
  13

  
	
   

  	
   

  
	
  ARTICLE 2

  
	
  THE NOTES

  
	
   

  	
   

  
	
  Section 2.01.

  	
  Form, Dating and Terms

  	
  13

  
	
  Section 2.02.

  	
  Execution and Authentication

  	
  18

  
	
  Section 2.03.

  	
  Registrar and Paying Agent

  	
  19

  
	
  Section 2.04.

  	
  Paying Agent to Hold Money in Trust

  	
  20

  
	
  Section 2.05.

  	
  Noteholder Lists

  	
  20

  
	
  Section 2.06.

  	
  Transfer and Exchange

  	
  20

  
	
  Section 2.07.

  	
  Form of Certificate to Be Delivered in
  Connection with Transfers to Institutional Accredited Investors

  	
  24

  
	
  Section 2.08.

  	
  Form of Certificate to Be Delivered in Connection
  with Transfers Pursuant to Regulation S

  	
  24

  
	
  Section 2.09.

  	
  Mutilated, Destroyed, Lost or Stolen Notes

  	
  24

  
	
  Section 2.10.

  	
  Outstanding Notes

  	
  24

  
	
  Section 2.11.

  	
  Temporary Notes

  	
  25

  
	
  Section 2.12.

  	
  Cancellation

  	
  25

  
	
  Section 2.13.

  	
  Payment of Interest; Defaulted Interest

  	
  25

  
	
  Section 2.14.

  	
  Computation of Interest

  	
  27

  
	
  Section 2.15.

  	
  CUSIP and ISIN Numbers

  	
  27

  
	
   

  	
   

  
	
  ARTICLE 3

  
	
  COVENANTS

  
	
   

  
	
  Section 3.01.

  	
  Payment of Notes

  	
  27

  
	
  Section 3.02.

  	
  Limitation and Restrictions on Activities
  of the Company

  	
  27

  
	
  Section 3.03.

  	
  Limitation on Liens

  	
  28

  
	
  Section 3.04.

  	
  Limitation on Sale-Leaseback Transactions

  	
  29

  
	
  Section 3.05.

  	
  Exclusion from Limitations

  	
  29

  
	
  Section 3.06.

  	
  Maintenance of Office or Agency

  	
  29

  
	
  Section 3.07.

  	
  Corporate Existence

  	
  30

  
	
  Section 3.08.

  	
  Maintenance of Properties; Insurance

  	
  30

  
	
  Section 3.09.

  	
  Payment of Taxes and Other Claims

  	
  30

  
	
  Section 3.10.

  	
  Payments for Consent

  	
  30

  
	
  Section 3.11.

  	
  Compliance Certificate

  	
  31

  
	
  Section 3.12.

  	
  Further Instruments and Acts

  	
  31

  
	
  Section 3.13.

  	
  Statement by Officers as to Default

  	
  31

  

 

i

 

	
  Section 3.14.

  	
  Notice of Change in Bermuda Law, Debt
  Ratings

  	
  31

  
	
   

  	
   

  
	
  ARTICLE 4

  
	
  Successor Guarantor

  
	
   

  
	
  Section 4.01.

  	
  Consolidation, Merger, Amalgamation and
  Sale of Assets by the Guarantor

  	
  31

  
	
   

  	
   

  
	
  ARTICLE 5

  
	
  OPTIONAL REDEMPTION OF NOTES

  
	
   

  	
   

  
	
  Section 5.01.

  	
  Optional Redemption by the Company

  	
  33

  
	
  Section 5.02.

  	
  Applicability of Article

  	
  33

  
	
  Section 5.03.

  	
  Election to Redeem; Notice to Trustee

  	
  33

  
	
  Section 5.04.

  	
  Selection by Trustee of Notes to Be
  Redeemed

  	
  33

  
	
  Section 5.05.

  	
  Notice of Redemption

  	
  34

  
	
  Section 5.06.

  	
  Deposit of Redemption Price

  	
  35

  
	
  Section 5.07.

  	
  Notes Payable on Redemption Date

  	
  35

  
	
  Section 5.08.

  	
  Notes Redeemed in Part

  	
  35

  
	
   

  	
   

  
	
  ARTICLE 6

  
	
  DEFAULTS AND REMEDIES

  
	
   

  	
   

  
	
  Section 6.01.

  	
  Events of Default

  	
  35

  
	
  Section 6.02.

  	
  Acceleration

  	
  37

  
	
  Section 6.03.

  	
  Other Remedies

  	
  37

  
	
  Section 6.04.

  	
  Waiver of Past Defaults

  	
  37

  
	
  Section 6.05.

  	
  Control by Majority

  	
  38

  
	
  Section 6.06.

  	
  Limitation on Suits

  	
  38

  
	
  Section 6.07.

  	
  Rights of Holders to Receive Payment

  	
  38

  
	
  Section 6.08.

  	
  Collection Suit by Trustee

  	
  39

  
	
  Section 6.09.

  	
  Trustee May File Proofs of Claim

  	
  39

  
	
  Section 6.10.

  	
  Priorities

  	
  39

  
	
  Section 6.11.

  	
  Undertaking for Costs

  	
  39

  
	
   

  	
   

  
	
  ARTICLE 7

  
	
  TRUSTEE

  
	
   

  	
   

  
	
  Section 7.01.

  	
  Duties of Trustee

  	
  40

  
	
  Section 7.02.

  	
  Rights of Trustee

  	
  41

  
	
  Section 7.03.

  	
  Individual Rights of Trustee

  	
  43

  
	
  Section 7.04.

  	
  Trustee’s Disclaimer

  	
  43

  
	
  Section 7.05.

  	
  Notice of Defaults

  	
  43

  
	
  Section 7.06.

  	
  Report by Trustee to Holders

  	
  43

  
	
  Section 7.07.

  	
  Compensation and Indemnity

  	
  43

  
	
  Section 7.08.

  	
  Replacement of Trustee

  	
  44

  
	
  Section 7.09.

  	
  Successor Trustee by Merger

  	
  45

  
	
  Section 7.10.

  	
  Eligibility; Disqualification

  	
  45

  
	
  Section 7.11.

  	
  Preferential Collection of Claims Against
  Company

  	
  45

  

 

ii

 

	
  Section 7.12.

  	
  Trustee’s Application for Instruction from
  the Company

  	
  46

  
	
   

  	
   

  
	
  ARTICLE 8

  
	
  DISCHARGE OF INDENTURE; DEFEASANCE

  
	
   

  	
   

  
	
  Section 8.01.

  	
  Discharge of Liability on Notes; Defeasance

  	
  46

  
	
  Section 8.02.

  	
  Conditions to Defeasance

  	
  47

  
	
  Section 8.03.

  	
  Application of Trust Money

  	
  48

  
	
  Section 8.04.

  	
  Repayment to Company

  	
  49

  
	
  Section 8.05.

  	
  Indemnity for U.S. Government Securities

  	
  49

  
	
  Section 8.06.

  	
  Reinstatement

  	
  49

  
	
   

  	
   

  
	
  ARTICLE 9

  
	
  AMENDMENTS

  
	
   

  	
   

  
	
  Section 9.01.

  	
  Without Consent of Holders

  	
  49

  
	
  Section 9.02.

  	
  With Consent of Holders

  	
  50

  
	
  Section 9.03.

  	
  Compliance with Trust Indenture Act

  	
  51

  
	
  Section 9.04.

  	
  Revocation and Effect of Consents and
  Waivers

  	
  51

  
	
  Section 9.05.

  	
  Notation on or Exchange of Notes

  	
  51

  
	
  Section 9.06.

  	
  Trustee to Sign Amendments

  	
  52

  
	
   

  	
   

  
	
  ARTICLE 10

  
	
  GUARANTEE

  
	
   

  
	
  Section 10.01.

  	
  Guarantee

  	
  52

  
	
  Section 10.02.

  	
  No Subrogation

  	
  53

  
	
  Section 10.03.

  	
  Consideration

  	
  54

  
	
  Section 10.04.

  	
  Additional Amounts

  	
  54

  
	
   

  	
   

  
	
  ARTICLE 11

  
	
  MISCELLANEOUS

  
	
   

  	
   

  
	
  Section 11.01.

  	
  Trust Indenture Act Controls

  	
  54

  
	
  Section 11.02.

  	
  Notices

  	
  54

  
	
  Section 11.03.

  	
  Communication by Holders with Other Holders

  	
  55

  
	
  Section 11.04.

  	
  Certificate and Opinion as to Conditions
  Precedent

  	
  55

  
	
  Section 11.05.

  	
  Statements Required in Certificate or
  Opinion

  	
  56

  
	
  Section 11.06.

  	
  When Notes Disregarded

  	
  56

  
	
  Section 11.07.

  	
  Rules by Trustee, Paying Agent and
  Registrar

  	
  56

  
	
  Section 11.08.

  	
  Legal Holidays

  	
  56

  
	
  Section 11.09.

  	
  GOVERNING LAW

  	
  56

  
	
  Section 11.10.

  	
  No Recourse Against Others

  	
  57

  
	
  Section 11.11.

  	
  Successors

  	
  57

  
	
  Section 11.12.

  	
  Consent to Jurisdiction

  	
  57

  
	
  Section 11.13.

  	
  Appointment for Agent for Service of
  Process

  	
  57

  
	
  Section 11.14.

  	
  Waiver of Immunities

  	
  57

  
	
  Section 11.15.

  	
  Foreign Taxes

  	
  58

  

 

iii

 

	
  Section 11.16.

  	
  Judgment Currency

  	
  58

  
	
  Section 11.17.

  	
  No Bankruptcy Petition Against the
  Borrower; Liability of the Borrower

  	
  58

  
	
  Section 11.18.

  	
  Multiple Originals

  	
  59

  
	
  Section 11.19.

  	
  Qualification of Indenture

  	
  59

  
	
  Section 11.20.

  	
  Table of Contents; Headings

  	
  59

  
	
  EXHIBIT A

  	
  Form of the Initial Note and Subsequent
  Note

  
	
  EXHIBIT B

  	
  Form of the Exchange Note

  
	
  EXHIBIT C

  	
  Form of Certificate to Be Delivered in
  Connection with Transfers to Institutional Accredited Investors

  
	
  EXHIBIT D

  	
  Form of Certificate to Be Delivered in
  Connection with Transfers Pursuant to Regulation S

  
	
  SCHEDULE
  1.1

  	
  Designated
  Obligors and Material Subsidiaries

  
	
  SCHEDULE
  3.4

  	
  Existing
  Liens

  
				

 

iv

 

CROSS-REFERENCE
TABLE

 

	
  Trust Indenture

  Act Section

  	
   

  	
  Indenture

  
	
  310(a)(1)

  	
   

  	
  Section 7.10

  
	
    (a)(2)

  	
   

  	
  Section 7.10

  
	
    (a)(3)

  	
   

  	
  N.A.

  	
   

  
	
    (a)(4)

  	
   

  	
  N.A.

  	
   

  
	
    (b)

  	
   

  	
  Sections 7.08, 7.10

  
	
    (c)

  	
   

  	
  N.A.

  	
   

  
	
  311(a)

  	
   

  	
  Section 7.11

  
	
    (b)

  	
   

  	
  Section 7.11

  
	
    (c)

  	
   

  	
  N.A.

  	
   

  
	
  312(a)

  	
   

  	
  Section 2.05

  
	
    (b)

  	
   

  	
  Section 11.03

  
	
    (c)

  	
   

  	
  Section 11.03

  
	
  313(a)

  	
   

  	
  Section 7.06

  
	
    (b)(1)

  	
   

  	
  N.A.

  	
   

  
	
    (b)(2)

  	
   

  	
  Section 7.06

  
	
    (c)

  	
   

  	
  Section 7.06

  
	
    (d)

  	
   

  	
  Section 7.06

  
	
  314(a)

  	
   

  	
  Sections 3.11, 11.02, 11.05

  
	
    (b)

  	
   

  	
  N.A.

  	
   

  
	
    (c)(1)

  	
   

  	
  Section 11.04

  
	
    (c)(2)

  	
   

  	
  Section 11.04

  
	
    (c)(3)

  	
   

  	
  N.A.

  	
   

  
	
    (d)

  	
   

  	
  N.A.

  	
   

  
	
    (e)

  	
   

  	
  Section 11.05

  
	
  315(a)

  	
   

  	
  Section 7.01

  
	
    (b)

  	
   

  	
  Sections 7.05; 11.02

  
	
    (c)

  	
   

  	
  Section 7.01

  
	
    (d)

  	
   

  	
  Section 7.01

  
	
    (e)

  	
   

  	
  Section 6.11

  
	
  316(a)(last sentence)

  	
  Section 11.06

  
	
    (a)(1)(A)

  	
   

  	
  Section 6.05

  
	
    (a)(1)(B)

  	
   

  	
  Section 6.04

  
	
    (a)(2)

  	
   

  	
  N.A.

  	
   

  
	
    (b)

  	
   

  	
  Section 6.08

  
	
  317(a)(1)

  	
   

  	
  Section 6.08

  
	
    (a)(2)

  	
   

  	
  Section 6.09

  
	
    (b)

  	
   

  	
  Section 2.04

  
	
  318(a)

  	
   

  	
  Section 11.01

  

 

     N.A. means Not
Applicable.

Note: This Cross-Reference Table shall not,
for any purpose, be deemed to be part of this Indenture.

 

i

 

INDENTURE dated as of May 19, 2003, among
BUNGE LIMITED FINANCE CORP., a Delaware corporation (the “Company”), as issuer, BUNGE
LIMITED, a company formed under the laws of Bermuda with limited liability (the
“Guarantor”),
as guarantor, and SUNTRUST BANK, a Georgia bank and trust company (the “Trustee”),
as trustee.

 

Each party agrees as follows for the benefit
of the other parties and for the equal and ratable benefit of the Holders of
(i) the Company’s 5.875% Senior Notes Due 2013 issued on the date hereof and
the guarantees thereof by the Guarantor (the “Initial Notes”), (ii) if and
when issued, additional 5.875% Senior Notes Due 2013 which may be offered
subsequent to the Issue Date and the guarantees thereof by the Guarantor (the “Subsequent
Notes”) and (iii) if and when issued in exchange for the Initial
Notes as provided in the Exchange and Registration Rights Agreement or a
similar agreement relating to the Initial Notes, the Company’s 5.875% Senior
Notes Due 2013 and the guarantees thereof by the Guarantor (the “Exchange
Notes” and together with the Initial Notes and any Subsequent Notes,
the “Notes”).

 

 

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.01.  Definitions.

 

“Affiliate” means, with respect to any
specified Person, 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 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; provided, however, that the
existence of a management contract by the Company or an Affiliate of the
Company to manage another entity shall not be deemed to be control.

 

“Agent Member” has the meaning ascribed to
it in Section 2.01(d)(iii) hereof.

 

“Attributable Indebtedness” means, when used
with respect to any Sale-Leaseback Transaction, as at the time of
determination, the present value (discounted at the rate of interest set forth
in or implicit in the terms of the lease) of the total obligations of the
lessee for rental payments (other than amounts required to be paid on account
of property taxes, maintenance, repairs, insurance, assessments, utilities,
operating and labor costs and other items that do not constitute payments for
property rights) during the remaining term of the lease included in such
Sale-Leaseback Transaction (including any period for which such lease has been
extended).

 

“Authenticating Agent” has the meaning
ascribed to it in Section 2.02 hereof.

 

“Board of Directors” means, with respect to
any Person, the board of directors of such Person or any duly authorized
committee thereof.

 

 

“Bunge Master Trust” means the trust created
pursuant to the Pooling Agreement, a beneficial interest in the assets of which
will be acquired by the Company through the Series 2002-1 VFC.

 

“Business Day” means a day other than a
Saturday, Sunday or other day on which commercial banking institutions are
authorized or required by law to close in The City of New York, New York.

 

“Capital Stock” means, with respect to any
Person, any and all shares, interests, rights to purchase, warrants, options
(whether or not currently exercisable), participations or other equivalents of
or interests in (however designated) the equity (which includes, but is not
limited to, common stock, preferred stock and partnership and joint venture
interests) of such Person (excluding any debt securities convertible into, or
exchangeable for, such equity).

 

“Cereol” means Cereol S.A., a company
organized under the laws of France.

 

“Code” means the U.S. Internal Revenue Code
of 1986, as amended.

 

“Company” means Bunge Limited Finance Corp.
or its successor.

 

“Company Order” has the meaning ascribed to
it in Section 2.02 hereof.

 

“Comparable Treasury Issue” means the United
States Treasury security selected by an Independent Investment Banker as having
a maturity comparable to the remaining term of the Notes 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 Notes.

 

“Comparable Treasury Price” means, with
respect to any date fixed for the redemption of Notes, (a) the bid price for
the Comparable Treasury Issue (expressed as a percentage of its principal amount)
at 4:00 P.M. on the third business day preceding such date, as set forth on
“Telerate Page 500” (or such other page as may replace Telerate Page 500), or
(b) if such page (or any successor page) is not displayed or does not contain
such bid prices at such time (i) the average of the Reference Treasury Dealer
Quotations obtained by the Trustee for such date, after excluding the highest
and lowest of four such Reference Treasury Dealer Quotations, or (ii) if the
Trustee is unable to obtain at least four such Reference Treasury Dealer
Quotations, the average of all Reference Treasury Dealer Quotations obtained by
the Trustee.

 

“Consolidated Net Income” means, with
respect to any period, the consolidated net income (or loss) of the Guarantor
and its Subsidiaries for such period (taken as a cumulative whole) as
determined in accordance with U.S. GAAP, after eliminating all offsetting
debits and credits between the Guarantor and its Subsidiaries and all other
items required to be eliminated in the course of the preparation of
consolidated financial statements of the Guarantor and its Subsidiaries in
accordance with U.S. GAAP.

 

“Consolidated Net Tangible Assets” means, at
any date of determination, the total amount of assets of the Guarantor and its
consolidated Subsidiaries after deducting therefrom:

 

2

 

(1)                                  all current
liabilities (excluding any current liabilities that by their terms are
extendable or renewable at the option of the obligor thereon to a time more
than 12 months after the time as of which the amount thereof is being
computed);

 

(2)                                  total prepaid
expenses and deferred charges; and

 

(3)                                  all goodwill, trade
names, trademarks, patents, licenses, copyrights and other intangible assets,
all as set forth, or on a pro forma basis would be set forth, on the
consolidated balance sheet of the Guarantor and its consolidated Subsidiaries
for its most recently completed fiscal quarter, prepared in accordance with
U.S. GAAP.

 

“Consolidated Total Assets” means, at any
date of determination, the amount at which the total assets of the Guarantor
and the Subsidiaries appear on the then most recent annual consolidated balance
sheet of such Persons prepared in accordance with U.S. GAAP, after deduction of
depreciation, amortization and all other properly deductible valuation
reserves.

 

“Corporate Trust Office” has the meaning
ascribed to it in Section 3.06 hereof.

 

“covenant defeasance option” has the meaning
ascribed to it in Section 8.01(b) hereof.

 

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

 

“Defaulted Interest” has the meaning
ascribed to it in Section 2.13 hereof.

 

“Definitive Notes” means certificated Notes.

 

“Designated Obligor” means the Guarantor and
the Subsidiaries of the Guarantor set forth on Schedule 1.1 hereto and any
other Subsidiary designated by the Guarantor from time to time, and each of
their successors.

 

“DTC” means The Depository Trust Company,
its nominees and their respective successors and assigns, or such other
depository institution hereinafter appointed by the Company.

 

“Event of Default” has the meaning ascribed
to it in Section 6.01 hereof.

 

“Exchange Act” means the U.S. Securities
Exchange Act of 1934, as amended.

 

“Exchange and Registration Rights Agreement”
means the Exchange and Registration Rights Agreement dated the Issue Date among
the Company, the Guarantor and the Representatives to the Initial Purchasers.

 

“Exchange Global Note” has the meaning
ascribed to it in Section 2.01(a) hereof.

 

“Exchange Notes” has the meaning ascribed to
it in the second introductory paragraph of this Indenture.

 

3

 

“Fair Market Value” means, with respect to
any property, the sale value of such property that would be realized in an
arm’s length sale at such time between an informed and willing buyer, and an
informed and willing seller, under no compulsion to buy or sell, respectively.

 

“Fiscal Year” means the fiscal year of the
Company ending on December 31 of each year.

 

“Global Notes” has the meaning ascribed to
it in Section 2.01(a) hereof.

 

“guarantee” means any obligation, contingent
or otherwise, of any Person directly or indirectly guaranteeing any
Indebtedness of any other Person and any obligation, direct or indirect,
contingent or otherwise, of such Person:

 

(1)                                  to purchase or pay
(or advance or supply funds for the purchase or payment of) such Indebtedness
of such other Person (whether arising by virtue of partnership arrangements, or
by agreement to keep-well, to purchase assets, goods, securities or services,
to take-or-pay, or to maintain financial statement conditions or otherwise); or

 

(2)                                  entered into for
purposes of assuring in any other manner the obligee of such Indebtedness of the
payment thereof or to protect such obligee against loss in respect thereof (in
whole or in part);

 

provided,
however,
that the term “guarantee” will not include endorsements for collection or
deposit in the ordinary course of business. The term “guarantee,” when used as
a verb, has a corresponding meaning.

 

“Guarantee” means any guarantee of payment
of the Notes and any other obligations of the Company by the Guarantor pursuant
to the terms of this Indenture.

 

“Guarantor” means Bunge Limited.

 

“Guaranty” means the Fourth Amended and
Restated Guaranty, dated as of May 1, 2003, by the Guarantor to Cooperatieve
Centrale Raiffeisen-Boerenleenbank B.A., JPMorgan Chase Bank and the Master
Trust Trustee, as the same may be amended, supplemented or otherwise modified
from time to time in accordance with its terms, subject to Section 3.02(f)
hereof.

 

“Hedge Agreements” means all interest rate
swaps, caps or collar agreements or similar arrangements dealing with interest
rates or currency exchange rates or the exchange of nominal interest
obligations, either generally or under specific contingencies.

 

“Holder” or “Noteholder” means the Person
in whose name a Note is registered in the Note Register.

 

“IAI” has the meaning ascribed to it in
Section 2.01(a) hereof.

 

4

 

“Indebtedness” means, as to any Person,
without duplication, (a) all obligations of such Person for borrowed money, (b)
all obligations of such Person evidenced by bonds, debentures, notes or other
similar instruments, (c) all obligations of such Person to pay the deferred
purchase price of property, except trade accounts payable arising in the
ordinary course of business, (d) all obligations of such Person as lessee which
are capitalized in accordance with U.S. GAAP, (e) all obligations of such
Person created or arising under any conditional sales or other title retention
agreement with respect to any property acquired by such Person (including
without limitation, obligations under any such agreement which provides that
the rights and remedies of the seller or lender thereunder in the event of
default are limited to repossession or sale of such property), (f) all
obligations of such Person with respect to letters of credit and similar
instruments, including without limitation obligations under reimbursement
agreements, (g) all Indebtedness of others secured by (or for which the holder
of such Indebtedness has existing right, contingent or otherwise, to be secured
by) a Lien on any asset of such Person, whether or not such Indebtedness is
assumed by such Person, (h) all net obligations of such Person in respect of
equity derivatives and Hedge Agreements and (i) all guarantees of such Person
(other than guarantees of obligations of direct or indirect Subsidiaries of
such Person).

 

 “Indenture”
means this Indenture, as amended or supplemented from time to time in
accordance with its terms.

 

“Independent Investment Banker” means either
Credit Suisse First Boston LLC or J.P. Morgan Securities Inc., or, if both such
firms are unwilling or unable to select the applicable Comparable Treasury
Issue, a leading independent investment banking institution appointed by the
Trustee and reasonably acceptable to Bunge Limited Finance.

 

 “Initial
Notes” has the meaning ascribed to it in the second introductory
paragraph of this Indenture.

 

“Initial Purchasers” means, collectively,
Credit Suisse First Boston LLC, J.P. Morgan Securities Inc., Citigroup Global
Markets Inc. and Natexis Bleichroeder Inc.

 

“Institutional Accredited Investor Global Note”
has the meaning ascribed to it in Section 2.01(a) hereof.

 

“Issue Date” means the date on which the
Initial Notes are originally issued.

 

“legal defeasance option” has the meaning
ascribed to it in Section 8.01(b) hereof.

 

“Legal Holiday” has the meaning ascribed to
it in Section 11.08 hereof.

 

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

 

“Master Trust Transaction Documents” means
the collective reference to the Pooling Agreement, the Series 2002-1
Supplement, the Series 2002-1 VFC, the Sale Agreement, the Servicing Agreement
and the Guaranty.

 

“Master Trust Trustee” means The Bank of New
York, as trustee under, and for the purposes of, the Master Trust Transaction
Documents, and any successor thereto.

 

5

 

“Material” means material in relation to the
business, operations, affairs, financial condition, assets or properties of the
Guarantor and its consolidated Subsidiaries taken as a whole.

 

“Material Adverse Effect” means a material
adverse effect, or any development involving a prospective material adverse
effect, in the condition, financial or otherwise, or in the earnings, business
or operations of the Guarantor and its consolidated Subsidiaries taken as a
whole.

 

“Material Subsidiary” means, at any time,
any Subsidiary of the Guarantor which at such time is a “Significant
Subsidiary”  under Regulation S-X of the
Securities Exchange Act of 1934, as amended. 
The Material Subsidiaries as of the date hereof are set forth on
Schedule 1.1 hereto.

 

“Non-Designated Obligor” means any
Subsidiary that is not a Designated Obligor.

 

“Non-U.S. Person” means a person who is not
a U.S. person, as defined in Regulation S.

 

“Note Register” means the register of Notes,
maintained by the Registrar, pursuant to Section 2.03 hereof.

 

“Notes” means the collective reference to
the Initial Notes, the Subsequent Notes and the Exchange Notes.

 

“Obligations” has the meaning ascribed to it
in Section 10.01 hereof.

 

“Officer” means the Chairman of the Board of
Directors, the Chief Executive Officer, the President, the Chief Financial
Officer, any Vice President, the Treasurer, the Controller or the Secretary of
the Company or the Guarantor, as applicable.

 

“Officers’ Certificate” means a certificate
signed by two Officers or attorneys-in-fact or by an Officer and either an
Assistant Treasurer or an Assistant Secretary of the Company or the Guarantor,
as applicable.

 

“Opinion of Counsel” means a written opinion
from legal counsel, which counsel may be an employee of or counsel to the
Company, who shall be acceptable to the Trustee.  The form and substance of such Opinion of Counsel shall likewise
be acceptable to the Trustee.

 

“Pari Passu Indebtedness” means Indebtedness
for borrowed money, the proceeds of which are used to purchase interests in the
Series 2002-1 VFC and/or to refinance Indebtedness originally used for such
purpose, and Indebtedness incurred in connection with Hedge Agreements, in each
case which ranks not greater than pari passu (in priority of payment) with the
Notes.

 

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

 

6

 

“Permitted Indebtedness” means (a)
Indebtedness of the Company under the Notes and (b) Pari Passu Indebtedness.

 

“Permitted Liens” means:

 

(1)           Liens for current taxes, assessments or
other governmental charges which are not delinquent or remain payable without
any penalty, or the validity of which is contested in good faith by appropriate
proceedings upon stay of execution of the enforcement thereof or upon posting a
bond in connection therewith;

 

(2)           any Lien pursuant to any order or attachment
or similar legal process arising in connection with court proceedings; provided
that the execution or other enforcement thereof is effectively stayed or a
sufficient bond had been posted and the claims secured thereby are being
contested at the time in good faith by appropriate proceedings;

 

(3)           any Liens securing bonds posted with respect
to and in compliance with clauses (1) and (2) above;

 

(4)           any Liens securing the claims of mechanics,
laborers, workmen, repairmen, materialmen, suppliers, carriers, warehousemen,
landlords, or vendors or other claims provided for by mandatory provisions of
law which are not yet due and delinquent, or are being contested in good faith
by appropriate proceedings;

 

(5)           any Lien on any Restricted Property securing
Indebtedness incurred or assumed solely for the purpose of financing all or any
part of the cost of constructing or acquiring such Restricted Property, which
Lien attaches to such Restricted Property concurrently with or within 120 days
after construction, acquisition or completion of a series of related
acquisitions thereof;

 

(6)           Liens existing immediately prior to the
execution and delivery of this Indenture (and listed on Schedule 3.4 hereto);

 

(7)           Liens to secure bonds posted in order to
obtain stays of judgments, attachments or orders, the existence of which bonds
would not otherwise constitute an Event of Default;

 

(8)           Liens on Restricted Property existing prior
to the acquisition of such Restricted Property or the acquisition of any
Subsidiary that is the owner of such Restricted Property or arising as a result
of contractual commitments to grant a Lien relating to such Restricted Property
or such Subsidiary existing prior to such acquisition;

 

(9)           Liens created by a Restricted Subsidiary in
favor of the Company, the Guarantor or a Subsidiary;

 

(10)         Liens on any accounts receivable from or
invoices to export customers (including, but not limited to, Subsidiaries) and
the proceeds thereof;

 

7

 

(11)         Liens on rights under contracts to sell,
purchase or receive commodities to or from export customers (including, but not
limited to, Subsidiaries) and the proceeds thereof;

 

(12)         Liens on cash deposited as collateral in
connection with financings where Liens are permitted under clause (10) and (11)
of this definition;

 

(13)         Liens extending, renewing or replacing, in
whole or in part Liens permitted pursuant to (i) clauses (1) through (5) and
(7) through (12), so long as the principal amount of the Indebtedness secured
by such Lien does not exceed its original principal amount and (ii) in the case
of clause (6), so long as the principal amount of the Indebtedness secured by
such Lien does not exceed the principal amount thereof outstanding immediately
prior to the execution and delivery of the Indenture;

 

(14)         minor survey exceptions or minor encumbrances,
easements or reservations, or rights of others for rights-of-way, utilities and
other similar purposes, or zoning or other restrictions as to the use of real
properties that constitute Restricted Property, which are necessary for the
conduct of the activities of the Company, the Guarantor or any Restricted
Subsidiary or which customarily exist on properties of corporations engaged in
similar activities and similarly situated and which do not in any event
materially impair their use in the operation of the business of the Company,
the Guarantor or any Restricted Subsidiary;

 

(15)         Liens on accounts receivable and other related
assets arising in connection with transfers thereof to the extent that such
transfers are treated as sales of financial assets under FASB Statement No.
140, as in effect from time to time; and

 

(16)         Liens on intercompany loans made to the
Guarantor or its Subsidiaries or on any notes or other instruments representing
an interest in such intercompany loans in each case as set forth in the Master
Trust Transaction Documents.

 

For purposes of this definition above, (A) the phrases “accounts
receivable from or invoices to export customers” and “contracts to sell,
purchase or receive commodities to (from) export customers” shall refer to
invoices or accounts receivable derived from the sale of, or contracts to sell,
purchase or receive wheat, soybeans or other commodities or products derived
from the processing of wheat, soybeans or other commodities, by or to the
Guarantor or a Restricted Subsidiary that have been or are to be exported from
the country of origin whether or not such sale is made by a Restricted
Subsidiary or to any of its Subsidiaries; and (B) property of a party to a
corporate reorganization which is not the Guarantor or a Restricted Subsidiary
shall be deemed to be or have been “acquired” by the Guarantor or such
Restricted Subsidiary as part of such corporate reorganization even if the
Guarantor or such Restricted Subsidiary, as the case may be, is not the
surviving entity.

 

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

 

8

 

“Pooling Agreement” means the Fourth Amended
and Restated Pooling Agreement, dated as of May 1, 2003, among Bunge Funding,
Inc., Bunge Management Services, Inc., as servicer, and The Bank of New York,
in its capacity as Master Trust Trustee, as amended, modified or supplemented
from time to time in accordance with its terms, subject to Section 3.02(f)
hereof.

 

“Principal Trust Office” means the Corporate
Trust Office or such other trust office or agency as may be designated by the
Trustee in writing to the Company from time to time.  The initial Principal Trust Office shall be the office of the
Trustee to which notices are to be sent as set forth in Section 11.02 hereof.

 

“Property” means any property, whether
presently owned or hereafter acquired, including any asset, revenue, or right
to receive income or any other property, whether tangible or intangible, real
or personal.

 

“Private Placement Legend” has the meaning
ascribed to it in Section 2.01(c) hereof.

 

“QIB” means any “qualified institutional
buyer” (as defined in Rule 144A under the Securities Act).

 

“Redemption Date” means, with respect to any
redemption of Notes, the date of redemption with respect thereto.

 

“Redemption Price” has the meaning ascribed
to it under the section entitled “Optional Redemption by the Company” on the
reverse side of the Notes, the forms of which are attached as Exhibits A and B
hereto.

 

“Reference Treasury Dealer” means Credit
Suisse First Boston LLC, J.P. Morgan Securities Inc., and two other primary
U.S. government securities dealers in New York City selected by the Independent
Investment Banker (each, a “Primary Treasury Dealer”); provided, however, that if
any of the foregoing shall cease to be a Primary Treasury Dealer, Bunge Limited
Finance will substitute another Primary Treasury Dealer.

 

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

 

“Registered Exchange Offer” has the meaning
ascribed to it the Exchange and Registration Rights Agreement.

 

“Registrar” has the meaning ascribed to it
in Section 2.03 hereof.

 

“Regulation S” has the meaning ascribed to
it in Section 2.01(a) hereof.

 

“Regulation S Global Note” has the meaning
ascribed to it in Section 2.01(a) hereof.

 

9

 

“Regulation S Legend” has the meaning
ascribed to it in Section 2.01(c) hereof.

 

“Regulation S Note” has the meaning ascribed
to it in Section 2.01(a) hereof.

 

“Representatives to the Initial Purchasers”
means Credit Suisse First Boston LLC and J.P. Morgan Securities Inc.

 

“Resale Restriction Termination Date” has
the meaning ascribed to it in Section 2.06 hereof.

 

“Restricted Notes Legend” means the Private
Placement Legend set forth in clause (1) of Section 2.01(c) hereof or the
Regulation S Legend set forth in clause (2) of Section 2.01(c) hereof, as
applicable.

 

“Restricted Period” means the 40 consecutive
days beginning on and including the later of (A) the day on which the Initial
Notes are offered to persons other than distributors (as defined in Regulation
S under the Securities Act) and (B) the Issue Date.

 

“Restricted Property” means any building,
mine, structure or other facility (together with the land on which it is
erected and fixtures comprising a part thereof) and inventories now owned or
hereafter acquired by the Guarantor or any Subsidiary and used for oilseed or
grain origination, processing, transportation or storage, mining or fertilizer
refining or storage.

 

“Restricted Subsidiary” means (a) any
Subsidiary that has been designated by the Guarantor as eligible for
intercompany loans to be made by the master trust under Master Trust
Transaction Documents, (b) any other Subsidiary which is a “significant
subsidiary” under Regulation S-X under the Securities Act, or (c) any other
Subsidiary that owns or leases any Restricted Property the aggregate Fair
Market Value of which, as determined by the Board of Directors of the
Guarantor, exceeds three percent of Consolidated Net Tangible Assets.  Notwithstanding the foregoing, Fosfertil
S.A. shall not be deemed a Restricted Subsidiary of the Guarantor for the
purpose of the covenants described under Section 3.03 and Section 3.04.

 

“Rule 144A” has the meaning ascribed to it
in Section 2.01(a) hereof.

 

“Rule 144A Global Note” has the meaning
ascribed to it in Section 2.01(a) hereof.

 

“Rule 144A Note” has the meaning ascribed to
it in Section 2.01(a) hereof.

 

“Sale Agreement” means the Second Amended
and Restated Sale Agreement, dated as of September 6, 2002, among Bunge
Funding, Inc., as buyer, and Bunge Finance Limited and Bunge Finance North
America, Inc., each as a seller, as the same may be amended, supplemented or
otherwise modified from time to time in accordance with its terms, subject to
Section 3.02(f) hereof.

 

“Sale-Leaseback Transaction” means the sale
or transfer by the Guarantor or any Subsidiary of any Property to a Person
(other than the Guarantor or a Subsidiary) and the taking back by the Guarantor
or any Subsidiary, as the case may be, of a lease of such Property.

 

10

 

“SEC” means the U.S. Securities and Exchange
Commission.

 

“Securities Act” means the U.S. Securities
Act of 1933, as amended.

 

“Securities Custodian” means the custodian
with respect to the Global Note (as appointed by DTC), or any successor Person
thereto and shall initially be the Trustee.

 

“Series” means an interest in the Bunge
Master Trust created and authorized pursuant to a supplement to the Pooling
Agreement.

 

“Series 2002-1 Supplement” means the First
Amended and Restated Series 2002-1 Supplement to the Pooling Agreement, dated
as of September 6, 2002, among the Company, Bunge Funding, Inc., Bunge
Management Services, Inc. and the Master Trust Trustee, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with its
terms, subject to Section 3.02(f) hereof.

 

“Series 2002-1 VFC” means the interest in
the Bunge Master Trust created and authorized pursuant to a supplement to the
Pooling Agreement that is designated as the “Series 2002-1 VFC Certificate” in
which the Company will acquire a beneficial interest with the net proceeds of
the Notes and other Permitted Indebtedness.

 

“Servicing Agreement” means the Second
Amended and Restated Servicing Agreement, dated as of February 26, 2002 among
Bunge Funding, Inc., Bunge Management Services, Inc., as the servicer, and The
Bank of New York, in its capacity as the Master Trust Trustee, as the same may
be amended, supplemented or otherwise modified from time to time in accordance
with its terms, subject to Section 3.02(f) hereof.

 

“Special Interest Payment Date” has the
meaning ascribed to it in Section 2.13 hereof.

 

“Special Record Date” has the meaning
ascribed to it in Section 2.13 hereof.

 

“Stated Maturity” means, with respect to any
security, the date specified in such security as the fixed date on which the
payment of principal of such security is due and payable, including pursuant to
any mandatory redemption provision, but shall not include any contingent
obligations to repay, redeem or repurchase any such principal prior to the date
originally scheduled for the payment thereof.

 

“Subsequent Notes” has the meaning ascribed
to it in the second introductory paragraph of this Indenture.

 

“Subsidiary” means any corporation, limited
liability company or other business entity of which the requisite number of
shares of stock or other equity ownership interests having ordinary voting
power (without regard to the occurrence of any contingency) to elect a majority
of the directors, managers or trustees thereof, or any partnership of which
more than 50% of the partners’ equity interests (considering all partners’
equity interests as a single class) is, in each case, at the time owned or
controlled, directly or indirectly, by a Person, one or more of the
Subsidiaries of such Person, or combination thereof.

 

11

 

“Successor Guarantor” has the meaning
ascribed to it in Section 4.01 hereof.

 

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

 

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

 

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

 

“U.S. GAAP” means generally accepted
accounting principles in the United States, as in effect from time to time.

 

“U.S. Government Securities” means
securities that are (a) direct obligations of the United States of America for
the timely payment of which its full faith and credit is pledged or (b)
obligations of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United
States of America, which, in either case, are not callable or redeemable at the
option of the issuer thereof, and shall also include a depository receipt
issued by a bank (as defined in Section 3(a)(2) of the Securities Act), as
custodian with respect to any such U.S. Government Securities or a specific
payment of principal of or interest on any such U.S. Government Securities 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 U.S.
Government Securities or the specific payment of principal of or interest on
the U.S. Government Securities evidenced by such depository receipt.

 

“Voting Stock” means Capital Stock of any
class or classes of a Person, the holders of which are ordinarily, in the absence
of contingencies, entitled to elect corporate directors (or Persons performing
similar functions).

 

Section 1.02.  Incorporation by Reference of Trust
Indenture Act.  This
Indenture is subject to the mandatory provisions of the Trust Indenture Act
which are incorporated by reference in and made a part of this Indenture.  The following Trust Indenture Act terms have
the following meanings:

 

“Commission” means the SEC.

 

“indenture securities” means the Notes.

 

“indenture security holder” means a Noteholder.

 

12

 

“indenture to be qualified” means this
Indenture.

 

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

 

“obligor” on the indenture securities means
the Company and any other obligor on the indenture securities.

 

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

 

Section 1.03.  Rules of Construction.  Unless the context otherwise
requires:

 

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

 

(2)                                  an accounting term
not otherwise defined has the meaning assigned to it in accordance with U.S.
GAAP;

 

(3)                                  “or” is not
exclusive;

 

(4)                                  “including” means
including without limitation;

 

(5)                                  words in the singular
include the plural and words in the plural include the singular; and

 

(6)                                  the principal amount
of any noninterest bearing or other discount security at any date shall be the
principal amount thereof that would be shown on a balance sheet of the issuer
dated such date prepared in accordance with U.S. GAAP.

 

 

ARTICLE 2

THE NOTES

 

Section 2.01.  Form, Dating and Terms.  (a)  The Initial Notes are being
offered and sold by the Company pursuant to a Purchase Agreement, dated May 14, 2003 among the
Company, the Guarantor and Representatives to the Initial Purchasers.  The Initial Notes will be resold initially
only to (A) qualified institutional buyers (as defined in Rule 144A under the
Securities Act (“Rule 144A”)) in reliance on Rule 144A (“QIBs”) and (B) Persons other
than U.S. Persons (as defined in Regulation S under the Securities Act (“Regulation S”))
in reliance on Regulation S.  Such
Initial Notes may thereafter be transferred to among others, QIBs, purchasers
in reliance on Regulation S and IAIs in accordance with Rule 501 of the
Securities Act in reliance on the procedure described herein.

 

Initial Notes offered and sold to the Initial
Purchasers, and subsequently resold to QIBs in the United States of America in
reliance on Rule 144A (the “Rule 144A Note”) will be issued on the
Issue Date in the form of a permanent global Note, without interest coupons,
substantially in the form of Exhibit A hereto, which is hereby incorporated by
reference and made a part of this Indenture, including appropriate legends as
set forth in Section 2.01(c) hereof (the “Rule 144A

 

13

 

Global Note”),
deposited with the Trustee, as custodian for DTC, duly executed by the Company
and authenticated by the Trustee as hereinafter provided.  The Rule 144A Global Note may be represented
by more than one certificate, if so required by DTC’s rules regarding the
maximum principal amount to be represented by a single certificate.  The aggregate principal amount of the Rule
144A Global Note may from time to time be increased or decreased by adjustments
made on the records of the Trustee, as custodian for DTC or its nominee, as
hereinafter provided.

 

Initial Notes offered, sold and resold
outside the United States of America (the “Regulation S Note”) in reliance on
Regulation S shall be issued in the form of a permanent global Note
substantially in the form of Exhibit A hereto, including appropriate legends as
set forth in Section 2.01(c) hereof (the “Regulation S Global Note”), deposited with
the Trustee, as custodian for DTC, duly executed by the Company and
authenticated by the Trustee as hereinafter provided.  The Regulation S Global Note may be represented by more than one
certificate, if so required by DTC’s rules regarding the maximum principal
amount to be represented by a single certificate.  The aggregate principal amount of the Regulation S Global Note
may from time to time be increased or decreased by adjustments made on the
records of the Trustee, as custodian for DTC or its nominee, as hereinafter
provided.

 

Initial Notes resold after an initial resale
to QIBs in reliance on Rule 144A or an initial resale in reliance on Regulation
S to institutional “accredited investors” (as defined in Rules 501(a)(1), (2),
(3) and (7) under the Securities Act) who are not QIBs (the “IAIs”)
in the United States of America will be issued in the form of a permanent
global Note substantially in the form of Exhibit A hereto (the “Institutional
Accredited Investor Global Note”) deposited with the Trustee, as
custodian for DTC, duly executed by the Company and authenticated by the
Trustee as hereinafter provided.  The
Institutional Accredited Investor Global Note may be represented by more that
one certificate, if so required by DTC’s rules regarding the maximum principal
amount to be represented by a single certificate.  The aggregate principal amount of the Institutional Accredited
Investor Global Note may from time to time be increased or decreased by
adjustments made on the records of the Trustee, as custodian for DTC or its
nominee, as hereinafter provided.

 

Exchange Notes exchanged for interests in the
Rule 144A Note, the Regulation S Note and the Institutional Accredited Investor
Global Note will be issued in the form of a permanent global Note substantially
in the form of Exhibit B hereto, which is hereby incorporated by reference and
made a part of this Indenture, deposited with the Trustee as hereinafter
provided, including the appropriate legend set forth in Section 2.01(c) hereof
(the “Exchange
Global Note”).  The Exchange
Global Note may be represented by more than one certificate, if so required by
DTC’s rules regarding the maximum principal amount to be represented by a
single certificate.

 

The Rule 144A Global Note, the Regulation S
Global Note, the Institutional Investor Global Note and the Exchange Global
Note are sometimes collectively herein referred to as the “Global Notes.”

 

Except as described in the succeeding two
sentences, the principal of and premium, if any, and interest on the Notes
shall be payable at the office or agency of the Company

 

14

 

maintained for
such purpose in The City of New York, or at such other office or agency of the
Company as may be maintained for such purpose pursuant to Section 2.03 hereof; provided,
however, that, at the option of the Company, each installment of
interest may be paid by check mailed to addresses of the Persons entitled
thereto as such addresses shall appear on the Note Register.  Payments in respect of Notes represented by
a Global Note (including principal, premium and interest) will be made by wire
transfer of immediately available funds to the accounts specified by DTC.  Payments in respect of Notes represented by
Definitive Notes (including principal, premium, if any, and interest) held by a
Holder of at least U.S.$1,000,000 aggregate principal amount of Notes
represented by Definitive Notes will be made by wire transfer to a U.S. dollar
account maintained by the payee with a bank in the United States if such Holder
elects payment by wire transfer by giving written notice to the Trustee or the
Paying Agent to such effect designating such account no later than 15 days
immediately preceding the relevant due date for payment (or such other date as
the Trustee may accept in its discretion).

 

Any Subsequent Notes shall be in the form of
Exhibit A hereto.

 

The Notes may have notations, legends or
endorsements required by law, stock exchange rule or usage, in addition to
those set forth on Exhibit A hereto and Exhibit B hereto and in Section 2.01(c)
hereof.  The Company and the Trustee
shall approve the forms of the Notes and any notation, endorsement or legend on
them.  Each Note shall be dated the date
of its authentication.  The terms of the
Notes set forth in Exhibit A hereto and Exhibit B hereto are part of the terms
of this Indenture and, to the extent applicable, the Company and the Trustee,
by their execution and delivery of this Indenture, expressly agree to be bound
by such terms.

 

(b)                                 Denominations.  The Notes shall be issuable only in fully
registered form, without coupons, and only in denominations of U.S.$1,000 and
any integral multiple thereof.

 

(c)                                  Restrictive
Legends.  Unless and until (i) an
Initial Note is sold under an effective registration statement or (ii) an
Initial Note is exchanged for an Exchange Note in connection with an effective
registration statement, in each case pursuant to the Exchange and Registration
Rights Agreement or a similar agreement,

 

(1)                        The Rule
144A Global Note and the Institutional Accredited Investor Global Note shall
bear the following legend (the “Private Placement Legend”) on the face
thereof:

 

“THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION.  NEITHER THIS NOTE NOR ANY
INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH
REGISTRATION.

 

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF AGREES, ON ITS OWN
BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH

 

15

 

IT HAS PURCHASED NOTES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE,
PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS TWO YEARS
AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH
BUNGE LIMITED FINANCE CORP. (“THE COMPANY”) OR ANY AFFILIATE OF THE COMPANY WAS
THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF SUCH NOTE), ONLY (A) TO THE
COMPANY OR BUNGE LIMITED, AS GUARANTOR, (B) PURSUANT TO A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO
LONG AS THE NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL
BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES NOTES
FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO
WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,
(D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN
THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL
ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER
THE SECURITIES ACT THAT IS ACQUIRING THE NOTE FOR ITS OWN ACCOUNT, OR FOR THE
ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A
TRANSACTION INVOLVING A MINIMUM PRINCIPAL AMOUNT OF THE NOTES OF U.S.$250,000,
FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION
WITH ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (F) PURSUANT TO
ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY
SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) AND (F) TO REQUIRE
THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION
SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF
THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.”

 

(2)                                  The Regulation S
Global Note shall also bear the following legend (the “Regulation S Legend”) on the
face thereof:

 

“THIS NOTE IS A TEMPORARY GLOBAL NOTE. 
PRIOR TO THE EXPIRATION OF THE RESTRICTED PERIOD APPLICABLE HERETO,
BENEFICIAL INTERESTS HEREIN MAY NOT BE HELD BY ANY PERSON OTHER THAN (1) A
NON-U.S. PERSON OR (2) A U.S. PERSON WHO PURCHASED SUCH INTEREST IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT PURSUANT TO RULE
144A THEREUNDER.  BENEFICIAL INTERESTS
HEREIN ARE NOT EXCHANGEABLE FOR PHYSICAL NOTES OTHER THAN A PERMANENT GLOBAL
NOTE IN ACCORDANCE WITH THE TERMS OF THE INDENTURE.  TERMS IN THIS LEGEND ARE USED AS USED IN REGULATION S UNDER THE
SECURITIES ACT.”

 

16

 

(3)                                  Each of the Global
Notes, whether or not an Initial Note, shall bear the following legend on the
face thereof:

 

“UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW
YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT 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.

 

TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE,
BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
INDENTURE REFERRED TO ON THE REVERSE HEREOF.”

 

(d)                                 Book-Entry
Provisions.  (i)  This Section 2.01(d) shall apply only to
Global Notes deposited with the Trustee, as custodian for DTC.

 

(ii)          Each Global Note
initially shall (A) be registered in the name of DTC or the nominee of DTC, (B)
be delivered to the Trustee as custodian for DTC and (C) bear legends as set
forth in Section 2.01(c) hereof.

 

(iii)       Members of, or participants
in, DTC (“Agent
Members”) shall have no rights under this Indenture with respect to
any Global Note held on their behalf by DTC or by the Trustee as the custodian
of DTC or under such Global Note, and DTC may be treated by the Company, the
Trustee and any agent of the Company or the Trustee as the absolute owner of
such Global Note for all purposes whatsoever. 
Notwithstanding the foregoing, nothing herein shall prevent the Company,
the Trustee or any agent of the Company or the Trustee from giving effect to
any written certification, proxy or other authorization furnished by DTC or
impair, as between DTC and its Agent Members, the operation of customary
practices of DTC governing the exercise of the rights of a Holder of a
beneficial interest in any Global Note.

 

(iv)      In connection with any
transfer of a portion of the beneficial interest in a Global Note pursuant to
Section 2.01(e) hereof to beneficial owners who are required to hold Definitive
Notes, the Securities Custodian shall reflect on its books and records the date
and a decrease in the principal amount of such Global Note in an amount equal
to the principal amount of the beneficial interest in the Global Note to be
transferred, and

 

17

 

the Company shall execute, and the Trustee
shall authenticate and deliver, one or more Definitive Notes of like tenor and
amount.

 

(v)         In connection with the
transfer of an entire Global Note to beneficial owners pursuant to Section
2.01(e) hereof, such Global Note shall be deemed to be surrendered to the
Trustee for cancellation, and the Company shall execute, and the Trustee shall
authenticate and deliver, to each beneficial owner identified by DTC in
exchange for its beneficial interest in such Global Note, an equal aggregate
principal amount of Definitive Notes of authorized denominations.

 

(vi)      The registered Holder of a
Global Note may grant proxies and otherwise authorize any person, including
Agent Members and persons that may hold interests through Agent Members, to
take any action which a Holder is entitled to take under this Indenture or the
Notes.

 

(e)                                  Definitive
Notes.  (i)  Except as
provided below, owners of beneficial interests in Global Notes will not be
entitled to receive Definitive Notes. 
If required to do so pursuant to any applicable law or regulation,
beneficial owners may obtain Definitive Notes in exchange for their beneficial
interests in a Global Note upon written request in accordance with DTC’s and
the Registrar’s procedures.  In
addition, Definitive Notes shall be transferred to all beneficial owners in
exchange for their beneficial interests in a Global Note if (a) DTC notifies
the Company that it is unwilling or unable to continue as depositary for such
Global Note or DTC ceases to be a clearing agency registered under the Exchange
Act, at a time when DTC is required to be so registered in order to act as
depositary, and in each case a successor depositary is not appointed by the
Company within 90 days of such notice or, (b) the Company executes and delivers
to the Trustee and Registrar an Officers’ Certificate stating that such Global
Note shall be so exchangeable or (c) an Event of Default has occurred and is
continuing and the Registrar has received a request from DTC.

 

(ii)               Any Definitive Note
delivered in exchange for an interest in a Global Note pursuant to Section
2.01(d)(iv) or (v) hereof shall, except as otherwise provided by Section
2.06(c) hereof bear the applicable legend regarding transfer restrictions
applicable to the Definitive Note set forth in Section 2.01(c) hereof.

 

(iii)            In connection with the
exchange of a portion of a Definitive Note for a beneficial interest in a
Global Note, the Trustee shall cancel such Definitive Note, and the Company
shall execute, and the Trustee shall authenticate and deliver, to the
transferring Holder a new Definitive Note representing the principal amount not
so transferred.

 

Section 2.02.  Execution and Authentication.  One Officer shall execute the
Notes, on behalf of the Company, by manual or facsimile signature.  If an Officer whose signature is on a Note
no longer holds that office at the time the Trustee authenticates the Note, the
Note shall be valid nevertheless, after giving effect to any exchange of
Initial Notes for Exchange Notes.

 

A Note shall not be valid until an authorized
signatory of the Trustee manually authenticates the Note.  The signature of the Trustee on a Note shall
be conclusive evidence that

 

18

 

such Note has
been duly and validly authenticated and issued under this Indenture.  A Note shall be dated the date of its
authentication.

 

At any time and from time to time after the
execution and delivery of this Indenture, the Trustee shall authenticate and
make available for delivery: (1) Initial Notes for original issue on the Issue
Date initially in an aggregate principal amount of U.S.$300,000,000; (2) if and
when issued, the Subsequent Notes; and (3) Exchange Notes for issue only in a
Registered Exchange Offer pursuant to the Exchange and Registration Rights
Agreement, and only in exchange for Initial Notes of an equal principal amount,
in each case upon a written order of the Company signed by two Officers or by
an Officer and an Assistant Treasurer or an Assistant Secretary of the Company
(the “Company
Order”).  Such Company Order
shall specify the amount of the Notes to be authenticated and the date on which
the original issue of Notes is to be authenticated and whether the Notes are to
be Initial Notes, Exchange Notes or Subsequent Notes.  The aggregate principal amount of Notes which may be
authenticated and delivered under this Indenture is initially limited to
U.S.$300,000,000 outstanding (plus any Subsequent Notes), except for Notes
authenticated and delivered upon registration or transfer of, or in exchange
for, or in lieu of, other Notes of the same class pursuant to Section 2.06,
Section 2.09, Section 2.11, Section 5.08, or Section 9.05 hereof and except for
transactions similar to the Registered Exchange Offer.  All Notes issued on the Issue Date and all
Subsequent Notes shall be identical in all respects other than issue dates, the
date from which interest accrues and any changes relating thereto.  Notwithstanding anything to the contrary
contained in this Indenture, the Initial Notes, any Subsequent Notes and the
Exchange Notes will be treated as a single class of securities under this
Indenture.  Without limiting the
generality of the foregoing sentence, all Notes issued under this Indenture shall
vote and consent together on all matters as one class and no Notes will have
the right to vote or consent as a separate class on any matter.

 

The Trustee may appoint an agent (the “Authenticating
Agent”) reasonably acceptable to the Company to authenticate the
Notes.  Unless limited by the terms of
such appointment, any such Authenticating Agent may authenticate Notes whenever
the Trustee may do so.  Each reference
in this Indenture to authentication by the Trustee includes authentication by
the Authenticating Agent.  An
Authenticating Agent has the same rights as a Paying Agent to deal with Holders
or an Affiliate of the Company.

 

Section 2.03.  Registrar and Paying Agent.  The Company shall cause to be
kept a register for the Notes (the “Note Register”) in which, subject to such
reasonable regulations as the Company may prescribe, the Company shall provide
for the registration of the Notes and of all transfers and exchanges with
respect thereto.  The Note Register
shall be maintained by the Trustee or such other Person (including the Company
or the Guarantor) appointed by the Company as the registrar (the “Registrar”).  The Company shall maintain an office or
agency where Notes may be presented for registration of transfer or for
exchange and an office or agency where Notes may be presented for payment (the
“Place of
Payment”).  The Company shall
cause each of the Registrar and the Paying Agent to maintain an office or
agency in the Borough of Manhattan, The City of New York.  The Company may have one or more
co-registrars and one or more additional paying agents.  The term “Paying Agent” includes any
additional paying agent.

 

19

 

The Company shall enter into an appropriate
agency agreement with any Registrar and Paying Agent that is not a party to
this Indenture, which shall incorporate the terms of the Trust Indenture
Act.  The agreement shall implement the
provisions of this Indenture that relate to such agent.  The Company shall notify the Trustee of the
name and address of each such agent.  If
the Company fails to maintain a Registrar or Paying Agent, the Trustee shall
act as such and shall be entitled to appropriate compensation therefor pursuant
to Section 7.07 hereof.  The Company,
the Guarantor or any Subsidiary of the Company or the Guarantor may act as
Paying Agent, Registrar, co registrar or transfer agent.

 

The Company initially appoints DTC to act as
depository with respect to the Global Notes. 
The Trustee is authorized to enter into a letter of representations with
DTC in the form provided to the Trustee by the Company and to act in accordance
with such letter.

 

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

 

Section 2.04.  Paying Agent to Hold Money in Trust.  By at least 10:00 a.m. (New York
City time) on the date on which any principal of and premium, if any, or
interest on any Note is due and payable, the Company shall deposit with the
Paying Agent a sum sufficient to pay such principal, premium, if any, or
interest when due.  The Company shall
require each Paying Agent (other than the Trustee) to agree in writing that
such Paying Agent shall hold in trust for the benefit of Noteholders or the
Trustee all money held by such Paying Agent for the payment of principal of and
premium, if any, or interest on the Notes and shall notify the Trustee in
writing of any default by the Company or the Guarantor in making any such
payment.  If the Company, the Guarantor
or a Subsidiary of the Company or the Guarantor acts as Paying Agent, it shall
segregate the money held by it as Paying Agent and hold it as a separate trust
fund.  The Company at any time may
require a Paying Agent (other than the Trustee) to pay all money held by it to
the Trustee and to account for any funds disbursed by such Paying Agent.  Upon complying with this Section 2.04, the
Paying Agent (if other than the Company or a Subsidiary of the Company or the
Guarantor) shall have no further liability for the money delivered to the
Trustee.  Upon any bankruptcy,
reorganization or similar proceeding with respect to the Company, the Trustee
shall serve as Paying Agent for the Notes.

 

Section 2.05.  Noteholder Lists.  The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of Noteholders and shall otherwise comply with Trust Indenture Act,
Section 312(a).  If the Trustee is not
the Registrar, or to the extent otherwise required under the Trust Indenture
Act, the Company, on its own behalf and on behalf of the Guarantor, shall
furnish to the Trustee, in writing at least seven Business Days before each
interest payment date and at such other times as the Trustee may request in
writing, a list in such form and as of such date as the Trustee may reasonably
require of the names and addresses of Noteholders and the Company shall
otherwise comply with Trust Indenture Act, Section 312(a).

 

Section 2.06.  Transfer and Exchange.  (a)  The following provisions shall apply with respect to any proposed
transfer of a Rule 144A Note or an Institutional Accredited Investor Global
Note prior to the date which is two years after the later of the date of its
original issue and the last date on which the Company or any affiliate of the
Company was the owner of such Notes (or any predecessor thereto) (the “Resale
Restriction Termination Date”):

 

20

 

(i)             a transfer of a Rule
144A Note or an Institutional Accredited Investor Global Note or a beneficial
interest therein to a QIB shall be made upon the representation of the
transferee in the form as set forth on the reverse of the Note that it is
purchasing the Note for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is a
“qualified institutional buyer” within the meaning of Rule 144A, and is aware
that the sale to it is being made in reliance on Rule 144A and acknowledges
that it has received such information regarding the Company as the proposed
transferee has requested pursuant to Rule 144A or has determined not to request
such information and that it is aware that the transferor is relying upon its
foregoing representations in order to claim the exemption from registration
provided by Rule 144A;

 

(ii)          a transfer of a Rule
144A Note or an Institutional Accredited Investor Global Note or a beneficial
interest therein to an IAI shall be made upon receipt by the Trustee or its
agent of a certificate substantially in the form set forth in Section 2.07
hereof from the proposed transferee and, if requested by the Company or the
Trustee, the delivery of an opinion of counsel, certification and/or other
information satisfactory to each of them; and

 

(iii)       a transfer of a Rule 144A
Note or an Institutional Accredited Investor Global Note or a beneficial
interest therein to a Non-U.S. Person shall be made upon receipt by the Trustee
or its agent of a certificate substantially in the form set forth in Section
2.08 hereof from the proposed transferee and, if requested by the Company or
the Trustee, the delivery of an opinion of counsel, certification and/or other
information satisfactory to each of them.

 

(b)                                 The
following provisions shall apply with respect to any proposed transfer of a
Regulation S Note prior to the expiration of the Restricted Period:

 

(i)             a transfer of a
Regulation S Note or a beneficial interest therein to a QIB shall be made upon
the representation of the transferee, in the form of assignment on the reverse
of the Note, that it is purchasing the Note for its own account or an account
with respect to which it exercises sole investment discretion and that it and
any such account is a “qualified institutional buyer” within the meaning of
Rule 144A, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as
the proposed transferee has requested pursuant to Rule 144A or has determined
not to request such information and that it is aware that the transferor is
relying upon its foregoing representations in order to claim the exemption from
registration provided by Rule 144A;

 

(ii)          a transfer of a
Regulation S Note or a beneficial interest therein to an IAI shall be made upon
receipt by the Trustee or its agent of a certificate substantially in the form
set forth in Section 2.07 hereof from the proposed transferee and, if requested
by the Company or the Trustee, the delivery of an opinion of counsel,
certification and/or other information satisfactory to each of them; and

 

21

 

(iii)       a transfer of a Regulation
S Note or a beneficial interest therein to a Non-U.S. Person shall be made upon
receipt by the Trustee or its agent of a certificate substantially in the form
set forth in Section 2.08 hereof from the proposed transferee and, if requested
by the Company or the Trustee, receipt by the Trustee or its agent of an
opinion of counsel, certification and/or other information satisfactory to each
of them.

 

After the expiration of the Restricted
Period, interests in the Regulation S Note may be transferred without requiring
certification provided for in Section 2.07 or Section 2.08 hereof, or any
additional certification.

 

(c)                                  Restricted
Notes Legend.  Upon the transfer,
exchange or replacement of Notes not bearing a Restricted Notes Legend, the
Registrar shall deliver Notes that do not bear a Restricted Notes Legend.  Upon the transfer, exchange or replacement
of Notes bearing a Restricted Notes Legend, the Registrar shall deliver only
Notes that bear a Restricted Notes Legend unless there is delivered to the
Registrar an Opinion of Counsel to the effect that neither such legend nor the
related restrictions on transfer are required in order to maintain compliance
with the provisions of the Securities Act.

 

(d)                                 The
Registrar shall retain copies of all letters, notices and other written
communications received pursuant to Section 2.01 hereof or this Section
2.06.  The Company shall have the right
to inspect and make copies of all such letters, notices or other written
communications at any reasonable time upon the giving of reasonable prior
written notice to the Registrar.

 

(e)                                  Obligations
with Respect to Transfers and Exchanges of Notes.

 

(i)             To permit
registrations of transfers and exchanges, the Company shall, subject to the
other terms and conditions of this Article 2, execute and the Trustee shall
authenticate Definitive Notes and Global Notes at the Registrar’s or
co-registrar’s request.

 

(ii)          No service charge shall
be made to a Holder for any registration of transfer or exchange, but the
Company or the Guarantor may require from a Holder payment of a sum sufficient
to cover any transfer tax, assessments, or similar governmental charge payable
in connection therewith (other than any such transfer taxes, assessments or
similar governmental charges payable upon exchange or transfer pursuant to
Section 9.05 hereof).

 

(iii)       The Registrar or
co-registrar shall not be required to register the transfer of, or exchange of,
any Note for a period beginning (1) 15 days before the mailing of a notice of
an offer to repurchase or redeem Notes and ending at the close of business on
the day of such mailing or (2) 15 days before an interest payment date and
ending on such interest payment date.

 

(iv)      Prior to the due
presentation for registration of transfer of any Note, the Company, the
Trustee, the Paying Agent, the Registrar or any co-registrar may deem and treat
the person in whose name a Note is registered as the absolute owner of such
Note for the purpose of receiving payment of principal of and premium, if any,
and interest on

 

22

 

such Note and for all other purposes
whatsoever, whether or not such Note is overdue, and none of the Company, the
Trustee, the Paying Agent, the Registrar or any co registrar shall be affected
by notice to the contrary.

 

(v)         Any Definitive Note
delivered in exchange for an interest in a Global Note pursuant to Section
2.01(d) hereof shall, except as otherwise provided by Section 2.06(c) hereof,
bear the applicable legend regarding transfer restrictions applicable to the
Definitive Note set forth in Section 2.01(c) hereof.

 

(vi)      All Notes issued upon any
transfer or exchange pursuant to the terms of this Indenture shall evidence the
same debt and shall be entitled to the same benefits under this Indenture as
the Notes surrendered upon such transfer or exchange.

 

(vii)   All Global Notes shall be
registered in the name of DTC, or a nominee thereof, and all transfers of
beneficial ownership interests therein will be made in accordance with the
rules of DTC.  No investor or other
party purchasing, selling or otherwise transferring beneficial ownership
interests in Global Notes shall receive, hold or deliver any certificate
representing the same.  The Company, the
Guarantor and the Trustee shall have no responsibility or liability for
transfers of beneficial ownership interests in any Global Note.

 

(f)                                    No
Obligation of the Trustee.

 

(i)             The Trustee shall
have no responsibility or obligation to any beneficial owner of a Global Note,
an Agent Member or any other Person with respect to (A) the accuracy of the
records of DTC or its nominee or of any participant or member thereof, with
respect to any ownership interest in the Notes, (B) the delivery to any
participant, member, beneficial owner or other Person (other than DTC) of any
notice (including any notice of redemption) or the payment of any amount or
delivery of any Notes (or other security or property) under or with respect to
such Notes, or (C) the selection of the particular Notes or portions thereof to
be redeemed or refunded in the event of a partial redemption or refunding of
the Notes.  All notices and
communications to be given to the Holders and all payments to be made to
Holders in respect of the Notes shall be given or made only to or upon the
order of the registered Holders (which shall be DTC or its nominee in the case
of a Global Note).  The rights of
beneficial owners in any Global Note shall be exercised only through DTC subject
to the applicable rules and procedures of DTC. 
The Trustee may rely and shall be fully protected in relying upon
information furnished by DTC with respect to its members, participants and any
beneficial owners.

 

(ii)          The Trustee shall have
no obligation or duty to monitor, determine or inquire as to compliance with
any restrictions on transfer imposed under this Indenture or under applicable
law with respect to any transfer of any interest in any Note (including any
transfers between or among DTC, its Agent Members or beneficial owners in any
Global Note) other than to require delivery of such certificates and other
documentation or evidence as are expressly required by, and to do so if and
when expressly required by, the terms of this Indenture with respect to
transfers between Holders, and to examine the 

 

23

 

same to determine substantial compliance as
to form with the express requirements hereof.

 

Section 2.07.  Form of Certificate to Be Delivered in Connection
with Transfers to Institutional Accredited Investors.  The form of certificate to be delivered in connection
with transfers of Notes to IAIs is set forth as Exhibit C hereto.

 

Section 2.08.  Form of Certificate to Be Delivered in
Connection with Transfers Pursuant to Regulation S.  The form of certificate to be delivered in connection
with transfers of Notes pursuant to Regulation S is set forth as Exhibit D
hereto.

 

Section 2.09.  Mutilated, Destroyed, Lost or Stolen
Notes.  If a mutilated Note
is surrendered to the Registrar or if the Holder of a Note claims that the Note
has been lost, destroyed or wrongfully taken, the Company shall issue and the
Trustee shall authenticate a replacement Note if the requirements of Section
8-405 of the New York Uniform Commercial Code are met and the Holder satisfies
any other reasonable requirements of the Trustee.  If required by the Trustee or the Company, such Holder shall
furnish an indemnity bond sufficient in the judgment of the Company and the
Trustee to protect the Company, the Trustee, the Paying Agent, the Registrar
and any co-registrar from any loss which any of them may suffer if a Note is
replaced, and, in the absence of notice to the Company, the Guarantor or the
Trustee that such Note has been acquired by a bona fide purchaser, the Company
shall execute and upon Company Order the Trustee shall authenticate and make
available for delivery, in exchange for any such mutilated Note or in lieu of
any such destroyed, lost or stolen Note, a new Note of like tenor and principal
amount, bearing a number not contemporaneously outstanding.

 

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

 

Upon the issuance of any new Note under this
Section 2.09, 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) in
connection therewith.

 

Every new Note issued pursuant to this
Section 2.09 in lieu of any mutilated, destroyed, lost or stolen Note shall
constitute an original additional contractual obligation of the Company, the
Guarantor (if applicable) and any other obligor upon the Notes, whether or not
the mutilated, destroyed, lost or stolen Note shall be at any time enforceable
by anyone, and shall be entitled to all benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

 

The provisions of this Section 2.09 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 Notes.

 

Section 2.10.  Outstanding Notes.  Notes outstanding at any time are all Notes
authenticated by the Trustee except for those canceled by it, those delivered
to it for cancellation and those described in this Section 2.10 as not
outstanding.  A Note ceases to be
outstanding in 

 

24

 

the event the Company holds the Note, provided, however, that (i) for
purposes of determining which are outstanding for consent or voting purposes
hereunder, Notes shall cease to be outstanding in the event the Company or an
Affiliate of the Company holds the Note and (ii) in determining whether the
Trustee shall be protected in making a determination whether the Holders of the
requisite principal amount of outstanding Notes are present at a meeting of
Holders of Notes for quorum purposes or have consented to or voted in favor of
any request, demand, authorization, direction, notice, consent, waiver,
amendment or modification hereunder, or relying upon any such quorum, consent or
vote, only Notes which a Trust Officer of the Trustee actually knows to be held
by the Company or an Affiliate of the Company shall not be considered
outstanding.

 

If a Note is replaced pursuant to Section
2.09 hereof, it ceases to be outstanding unless the Trustee and the Company
receive proof satisfactory to them that the replaced Note is held by a bona
fide purchaser.

 

If the Paying Agent segregates and holds in
trust, in accordance with this Indenture, on a redemption date or maturity date
money sufficient to pay all principal, premium, if any, and interest payable on
that date with respect to the Notes (or portions thereof) to be redeemed or
maturing, as the case may be, and the Paying Agent is not prohibited from
paying such money to the Noteholders on that date pursuant to the terms of this
Indenture, then on and after that date such Notes (or portions thereof) cease
to be outstanding and interest on them ceases to accrue.

 

Section 2.11.  Temporary Notes.  Until Definitive Notes are ready for delivery, the
Company may prepare and the Trustee shall authenticate temporary Notes.  Temporary Notes shall be substantially in
the form of Definitive Notes but may have variations that the Company considers
appropriate for temporary Notes. 
Without unreasonable delay, the Company shall prepare and the Trustee
shall authenticate Definitive Notes. 
After the preparation of Definitive Notes, the temporary Notes shall be
exchangeable for Definitive Notes upon surrender of the temporary Notes at any
office or agency maintained by the Company for that purpose and such exchange
shall be without charge to the Holder. 
Upon surrender for cancellation of any one or more temporary Notes, the
Company shall execute, and the Trustee shall authenticate and make available
for delivery in exchange therefor, one or more Definitive Notes representing an
equal principal amount of Notes.  Until
so exchanged, the Holder of temporary Notes shall in all respects be entitled
to the same benefits under this Indenture as a holder of Definitive Notes.

 

Section 2.12.  Cancellation.  The Company at any time may deliver Notes to the
Trustee for cancellation.  The Registrar
and the Paying Agent shall forward to the Trustee any Notes surrendered to them
for registration of transfer, exchange or payment.  The Trustee, and no one else, shall cancel and destroy all Notes
surrendered for registration of transfer, exchange, payment or cancellation, in
its customary manner.  The Company may
not issue new Notes to replace Notes it has paid or delivered to the Trustee
for cancellation for any reason other than in connection with a transfer or
exchange.

 

Section 2.13.  Payment of Interest; Defaulted
Interest.  Interest on any
Note 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 such Note (or
one or more predecessor Notes) is registered at the

 

25

 

close of
business on the regular record date for such interest at the office or agency
of the Company maintained for such purpose pursuant to Section 2.03 hereof.

 

Any interest on any Note which is payable,
but is not paid when the same becomes due and payable and such nonpayment
continues for a period of 30 days shall forthwith cease to be payable to the
Holder on the regular record date by virtue of having been such Holder, and
such defaulted interest and (to the extent lawful) interest on such defaulted
interest at the rate borne by the Notes (such defaulted interest and interest thereon
herein collectively called “Defaulted Interest”) shall be paid by the
Company, at its election in each case, as provided in clause (a) or (b) below:

 

(a)                                  The
Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Notes (or their respective predecessor Notes) are registered at
the close of business on a Special Record Date (as defined below) for the
payment of such Defaulted Interest, which shall be fixed in the following
manner.  The Company shall notify the Trustee
in writing of the amount of Defaulted Interest proposed to be paid on each Note
and the date (not less than 30 days after such notice) of the proposed payment
(the “Special
Interest Payment Date”), 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 record date (the “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 Special Interest Payment Date 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 and Special Interest Payment Date therefor to be
given in the manner provided for in Section 11.02 hereof, 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 and Special Interest Payment Date therefor having been so
given, such Defaulted Interest shall be paid on the Special Interest Payment
Date to the Persons in whose names the Notes (or their respective predecessor
Notes) are registered at the close of business on such Special Record Date and
shall no longer be payable pursuant to the following clause (b).

 

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

 

Subject to the foregoing provisions of this
Section 2.13, each Note delivered under this Indenture upon registration of,
transfer of or in exchange for or in lieu of any other Note shall

 

26

 

carry the
rights to interest accrued and unpaid, and to accrue, which were carried by
such other Note.

 

Section 2.14.  Computation of Interest.  Interest on the Notes shall be
computed on the basis of a 360-day year of twelve 30-day months.

 

Section 2.15.  CUSIP and ISIN Numbers.  The Company in issuing the Notes
may use “CUSIP” and “ISIN” numbers (if then generally in use) and, if so, the
Trustee shall use “CUSIP” and “ISIN” numbers in notices of redemption as a
convenience to Holders; provided, however, that any such notice may state that
no representation is made as to the correctness of such numbers either as
printed on the Notes or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on the
Notes, and any such redemption shall not be affected by any defect in or
omission of such CUSIP or ISIN numbers. 
The Company shall promptly notify the Trustee of any change in the CUSIP
and ISIN numbers.

 

 

ARTICLE 3

COVENANTS

 

Section 3.01.  Payment of Notes.  The Company shall promptly pay the principal of and
premium, if any, and interest on the Notes on the dates and in the manner
provided in the Notes and in this Indenture. 
Principal and interest shall be considered paid on the date due if on
such date the Trustee or the Paying Agent holds in accordance with this Indenture
money sufficient to pay all principal and interest then due and the Trustee or
the Paying Agent, as the case may be, is not prohibited from paying such money
to the Noteholders on that date.

 

The Company shall pay interest on overdue
principal and premium, if any, at the rate specified therefor in the Notes, and
it shall pay interest on overdue installments of interest at the same rate to
the extent lawful.

 

Notwithstanding anything to the contrary
contained in this Indenture and subject to Section 10.04, the Company may, to
the extent it is required to do so by law, deduct or withhold income or other
similar taxes imposed by the United States of America from principal or
interest payments hereunder.

 

Section 3.02.  Limitation and Restrictions on Activities of
the Company.  (a)   The Company shall not engage in any business
or enterprise or enter into any transaction or agreement other than in
connection with (i) the issuance and sale of the Notes, (ii) the incurrence of
other Permitted Indebtedness, (iii) the entering into of Hedge Agreements relating
to the Notes or the other Permitted Indebtedness having a notional amount not
exceeding the aggregate principal amount of the Notes and such other Permitted
Indebtedness then outstanding and (iv) the use of the net proceeds from the
issuance of the Notes or the other Permitted Indebtedness to increase its
investment in the Series 2002-1 VFC.

 

27

 

(b)                   The
Company shall not acquire or own any subsidiary or other assets or property
(either real or personal), except for (i) the Series 2002-1 VFC, (ii) Hedge
Agreements, and (iii) instruments evidencing the interests in the foregoing.

 

(c)                    The
Company shall not create, incur, assume or suffer to exist any Indebtedness
other than Permitted Indebtedness.

 

(d)                   The
Company shall not create, assume, incur or suffer to exist any Lien upon or
with respect to any of its Property; provided, however, it being understood,
for the avoidance of doubt, that the Company shall not create, incur, assume or
suffer to exist any Lien including Liens which would otherwise constitute a
Permitted Lien in the case of the Guarantor or any Restricted Subsidiaries.

 

(e)                    The
Company shall not enter into any consolidation, merger, amalgamation, joint
venture, syndicate or other form of combination with any Person, and shall not
sell, lease, convey or otherwise dispose of any of its assets or receivables,
including, without limitation, the Series 2002-1 VFC or any interest in the
Series 2002-1 VFC.

 

(f)                      The
Company shall not amend, supplement, waive or modify, or consent to any
amendment, supplement, waiver or modification of, any Master Trust Transaction
Document except in accordance with the provisions of this Section 3.02(f).  Any provision of any Master Trust
Transaction Document may be amended, waived, supplemented, restated, discharged
or terminated without the consent of the Holders; provided that such amendment,
waiver, supplement or restatement does not (i) render the Series 2002-1 VFC
subordinate in payment to any other Series under the Bunge Master Trust or
otherwise adversely discriminate against the Series 2002-1 VFC relative to any
other Series under the Bunge Master Trust, (ii) reduce in any manner the amount
of, or delay the timing of, distributions which are required to be made on or
in respect of the Series 2002-1 VFC, (iii) change the definition of, the manner
of calculating, or in any way the amount of, the interest of the Company in the
assets of the Bunge Master Trust, (iv) change the definition of “Eligible
Loans” or, to the extent used in such definition, other defined terms used in
such definition, or (v) result in a Default or Event of Default; and provided,
further, that, in each case, the Trustee shall have received prior notice
thereof together with copies of any documentation related thereto.  Any amendment, waiver, supplement or
restatement of a Master Trust Transaction Document (including any exhibit
thereto) of the type described in clauses (i), (ii), (iii), (iv), or (v) of
this Section 3.02(f) shall require the written consent of at least a majority
in principal amount of the Notes then outstanding (including, without
limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for, Notes).

 

Section 3.03.  Limitation on Liens.  The Guarantor shall not, and shall
not permit any Restricted Subsidiary to, create, assume, incur or suffer to
exist any Lien, other than a Permitted Lien, upon or with respect to any of its
Restricted Property or the shares of stock or Indebtedness of any Restricted
Subsidiary to secure any Indebtedness incurred or guaranteed by the Guarantor
or any Restricted Subsidiary (other than the Notes), unless all of the
outstanding Notes and the Guarantee are secured equally and ratably with, or
prior to, such Indebtedness for so long as such Indebtedness shall be so
secured.

 

28

 

Section 3.04.  Limitation on Sale-Leaseback
Transactions.  The Guarantor
shall not, and shall not permit any Restricted Subsidiary to, enter into any
Sale-Leaseback Transaction unless:

 

(a)                                  the
Sale-Leaseback Transaction occurs within six months from the date of the
acquisition of the Restricted Property subject thereto or the date of the
completion of construction or commencement of full operations of such
Restricted Property, whichever is later; or

 

(b)                                 the
Sale-Leaseback Transaction is between the Guarantor and a Restricted Subsidiary
of the Guarantor, or between Restricted Subsidiaries of the Guarantor; or

 

(c)                                  the
Sale-Leaseback Transaction involves a lease for a period, including renewals,
of not more than three years; or

 

(d)                                 the
Sale-Leaseback Transaction constitutes a Permitted Lien for the purposes of
Section 3.03 hereof; or

 

(e)                                  the
Guarantor or such Restricted Subsidiary, within a one year period after such
Sale-Leaseback Transaction, (i) applies or causes to be applied an amount not
less than the Attributable Indebtedness from such Sale-Leaseback Transaction to
the prepayment, repayment, redemption, reduction or retirement of any Indebtedness
of the Guarantor or any Subsidiary having a maturity of more than one year that
is not subordinated to the Notes or the Guarantee or (ii) enters into a bona
fide commitment to expend an amount not less than the Attributable Indebtedness
for such Sale-Leaseback Transaction during such one-year period to the
acquisition, construction or development of other similar Property.

 

Section 3.05.  Exclusion from Limitations.  Notwithstanding Sections 3.03 and
3.04 hereof, the Guarantor may, and may permit any Restricted Subsidiary to,
create, assume, incur or suffer to exist any Lien (other than a Permitted Lien)
upon any Restricted Property to secure Indebtedness incurred or guaranteed by
the Guarantor or any Restricted Subsidiary (other than the Notes) or effect any
Sale-Leaseback Transaction of a Restricted Property that is not excepted by
Section 3.04(a), (b), (c), (d) and (e) hereof, without equally and ratably
securing the Notes or the Guarantee provided that, after giving effect thereto,
the aggregate principal amount of outstanding Indebtedness (other than the
Notes) secured by Liens (other than Permitted Liens) upon Restricted Property
plus the Attributable Indebtedness from Sale-Leaseback Transactions of
Restricted Property not so excepted, do not exceed 15% of the Consolidated Net
Tangible Assets.

 

Section 3.06.  Maintenance of Office or Agency.  The Company will maintain in The
City of New York, an office or agency where the Notes may be presented or
surrendered for payment, where, if applicable, the Notes may be surrendered for
registration of transfer or exchange and where notices and demands to or upon
the Company in respect of the Notes and this Indenture may be served.  The office or agency (the “Corporate
Trust Office”) used by the Trustee in The City of New York as its
office or agency for receiving securities, as the same may from time to time be
designated by the Trustee, shall be such office or agency of the Company,
unless the Company shall designate and maintain some other office or agency for
one or more of such

 

29

 

purposes.  The Company will give prompt written notice
to the Trustee of any change in the location of any such office or agency.  If at any time the Company shall fail to maintain
any such required office or agency or shall fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be
made or served at the Corporate Trust Office of the Trustee, and the Company
hereby appoints the Trustee as its agent to receive all such presentations,
surrenders, notices and demands.

 

The Company may also from time to time
designate one or more other offices or agencies (in or outside of The City of
New York) where the Notes may be presented or surrendered for any or all such
purposes and may from time to time rescind any such designation; 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 City of New
York for such purposes.  The Company
will give prompt written notice to the Trustee of any such designation or
rescission and any change in the location of any such other office or agency.

 

Section 3.07.  Corporate Existence.  Subject to Article 4 hereof, each
of the Company and the Guarantor will do or cause to be done all things
necessary to preserve, renew and keep in full force and effect its corporate
existence and take all reasonable action to maintain its corporate rights
(charter and statutory), licenses, privileges and franchises; provided,
however, that the Company and the Guarantor shall not be required to preserve
any such right, license, privilege or franchise if the Board of Directors of
the Company or the Guarantor, as applicable, shall determine that the
preservation thereof is no longer desirable in the conduct of its business and
that the loss thereof is not, and will not be, disadvantageous in any material
respect to the Holders; and provided further, the Guarantor may merge in accordance
with Section 4.01 hereof.

 

Section 3.08.  Maintenance of Properties; Insurance.  The Guarantor shall, and shall
cause each of its Subsidiaries to, keep all property useful and necessary in
its business in good working order and condition, except where failure to do so
would not have a Material Adverse Effect; and the Guarantor shall maintain with
financially sound and reputable insurance companies insurance on all its
property in at least such amounts and against at least such risks as are customary
for the Guarantor’s type of business.

 

Section 3.09.  Payment of Taxes and Other Claims.  Each of the Company and the
Guarantor shall pay, discharge or otherwise satisfy at or before maturity or
before they become delinquent, as the case may be, all taxes, assessments and
similar governmental charges imposed on it, its incomes, profits or properties,
except where (i) the amount or validity thereof is currently being contested in
good faith by appropriate proceedings and reserves to the extent required by
U.S. GAAP with respect thereto have been provided on the books of the Company
or the Guarantor or (ii) the nonpayment of such taxes, assessments and claims
in the aggregate could not reasonably be expected to have a Material Adverse
Effect.

 

Section 3.10.  Payments for Consent.  Neither the Company, the
Guarantor nor any Subsidiaries of the Company or the Guarantor will, directly
or indirectly, pay or cause to be paid any consideration, whether by way of
interest, fees or otherwise, to any Holder of any Notes for or as an inducement
to any consent, waiver or amendment of any of the terms or provisions of this
Indenture or the Notes unless such consideration is offered to be paid or is
paid to all

 

30

 

Holders of the
Notes that consent, waive or agree to amend in the time frame set forth in the
solicitation documents relating to such consent, waiver or agreement.

 

Section 3.11.  Compliance Certificate.  The Company and the Guarantor
shall deliver to the Trustee within 120 days after the end of each Fiscal Year
of the Company and the Guarantor an Officers’ Certificate stating that in the
course of the performance by the signers of their duties as Officers of the
Company and the Guarantor they would normally have knowledge of any Default or
Event of Default and whether or not the signers know of any Default or Event of
Default that occurred during such period. 
If they do, the certificate shall describe the Default or Event of
Default, its status and what action the Company is taking or proposes to take
with respect thereto.  The Company also
shall comply with Trust Indenture Act, Section 314(a)(4).

 

Section 3.12.  Further Instruments and Acts.  Upon request of the Trustee, the
Company will execute and deliver such further instruments and do such further
acts as may be reasonably necessary or proper to carry out more effectively the
purpose of this Indenture.

 

Section 3.13.  Statement by Officers as to Default.  The Company shall deliver to the
Trustee, as soon as possible and in any event within 10 days after the Company
becomes aware of the occurrence of any Event of Default or an event which, with
notice or the lapse of time or both, would constitute an Event of Default, an
Officers’ Certificate setting forth the details of such Event of Default or
default and the action which the Company proposes to take with respect thereto.

 

Section 3.14.  Notice of Change in Bermuda Law, Debt
Ratings.  The Guarantor shall
give notice to the Trustee promptly after becoming aware of (i) any changes in
taxes, duties or other fees of Bermuda or any political subdivision or taxing
authority thereof or any change in any laws of Bermuda, in each case, that may
affect any payment due under this Indenture, (ii) any change in such Guarantor’s
public or private debt ratings by a “nationally recognized statistical rating
organization,” as such term is defined by the SEC for purposes of Rule
436(g)(2) under the Securities Act, and (iii) any development or event which
has had, or which the Guarantor in its good faith judgment believes will have,
a Material Adverse Effect; provided that the Trustee shall have no
responsibilities or duties with respect to any such notice.  Delivery of any such notice to the Trustee
is for informational purposes only and the Trustee’s receipt of such notice
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 4

SUCCESSOR GUARANTOR

 

Section 4.01.  Consolidation, Merger, Amalgamation and Sale
of Assets by the Guarantor.  The
Guarantor shall not, and shall not cause or permit any Subsidiary to,
consolidate with or merge or amalgamate with or into, or sell, lease, or convey
all or substantially all its assets to, any Person, unless:

 

31

 

(a)                                  in
the case of the Guarantor:

 

(i)                       the resulting,
surviving or transferee Person (the “Successor Guarantor”) shall be either the
Guarantor or a Person organized under the laws of Bermuda, the United States of
America, any State thereof or the District of Columbia, any full member state
of the European Union, Canada, Australia or Switzerland, and the Successor
Guarantor (if not the Guarantor) shall expressly assume, by supplemental
indenture, executed and delivered to the Trustee, all the obligations of the
Guarantor under the Guarantee and this Indenture; and

 

(ii)                    immediately
after giving effect to such transaction, no Event of Default or event which
with notice or lapse of time would be an Event of Default has occurred and is
continuing; or

 

(b)                                 in
the case of any Subsidiary of the Guarantor (other than the Company):

 

(i)                       such
transaction is a merger or amalgamation of such Subsidiary into, or a
consolidation of such Subsidiary with, the Guarantor (so long as the Guarantor
is the surviving entity) or another Subsidiary of the Guarantor or the sale or
other disposition by such Subsidiary of all or substantially all of its
property to the Guarantor or another Subsidiary of the Guarantor; or

 

(ii)                    such
transaction is the merger or amalgamation of such Subsidiary into, the
consolidation of such Subsidiary with, or the sale or other disposition by such
Subsidiary of all or substantially all of its property to, another Person
(provided that such Person is not an Affiliate of such Subsidiary), so long as
immediately prior to, and after giving effect to such transaction, no Default
or Event of Default exists or would exist.

 

For purposes of this Section 4.01, the sale,
lease, conveyance, assignment, transfer, or other disposition of all or
substantially all of the properties and assets of one or more Subsidiaries of
the Guarantor, which properties and assets, if held by the Guarantor instead of
such Subsidiaries, would constitute all or substantially all of the properties
and assets of the Guarantor on a consolidated basis, shall be deemed to be the
transfer of all or substantially all of the properties and assets of the
Guarantor.

 

If the Guarantor engages in one of the
transactions described above and complies with the conditions listed above, the
Successor Guarantor will succeed to, and be substituted for, and may exercise
every right and power of, the Guarantor under this Indenture, but, in the case
of a lease of all or substantially all its assets, the Guarantor will not be
released from the obligation to pay the principal of and premium, if any, and
interest on the Notes.

 

In the event that the Guarantor consolidates
with or merges or amalgamates with or into, or sells, leases or conveys all or
substantially all of its assets to, another Person subject to the terms of this
Section 4.01 (a “Transfer”) and the Successor Guarantor is a Person organized
under the laws of a member state of the European Union, Canada, Australia or
Switzerland, the Guarantor and the Successor Guarantor shall, as a condition to
such Transfer, (A) enter into a supplemental indenture with the Trustee
providing for full, unconditional and irrevocable indemnification of the
Holders of the Notes and the Trustee against any tax or duty of whatever

 

32

 

nature which
is incurred or otherwise suffered by such Holders and the Trustee with respect
to the Notes and which would not have been incurred or otherwise suffered in
the absence of such Transfer; and (B) deliver to the Trustee, for the benefit
of the Holders of the Notes, legal opinions of independent legal counsel in New
York and the applicable member state of the European Union, Canada, Australia
or Switzerland the laws of which the successor is organized under, as
applicable, to the effect that the Obligations of the Successor Guarantor with
respect to the Guarantee are legal, valid, binding and enforceable in
accordance with their terms.

 

 

ARTICLE 5

OPTIONAL REDEMPTION OF NOTES

 

Section 5.01.  Optional Redemption by the Company.  The Notes may be redeemed at any
time as a whole or from time to time in part, subject to the conditions and at
the Redemption Prices specified in the form of Notes set forth in Exhibit A and
Exhibit B hereto, which are hereby incorporated by reference and made a part of
this Indenture, together with accrued and unpaid interest to the Redemption
Date.

 

Section 5.02.  Applicability of Article.  Redemption of Notes at the
election of the Company or otherwise, as permitted or required by any provision
of this Indenture, shall be made in accordance with such provision and this
Article 5.

 

Section 5.03.  Election to Redeem; Notice to Trustee.  The election of the Company to
redeem any Notes pursuant to Section 5.01 hereof shall be evidenced by a
resolution of the Board of Directors of the Company.  In case of any redemption at the election of the Company, the
Company shall, upon not later than the earlier of the date that is 30 days
prior to the Redemption Date fixed by the Company or the date on which notice
is given to the Holders (except as provided in Section 5.05 hereof or unless a
shorter notice shall be satisfactory to the Trustee), notify the Trustee of
such Redemption Date and of the principal amount of Notes to be redeemed and
shall deliver to the Trustee such documentation and records as shall enable the
Trustee to select the Notes to be redeemed pursuant to Section 5.04 hereof.

 

Section 5.04.  Selection by Trustee of Notes to Be
Redeemed.  If less than all
the Notes are to be redeemed at any time pursuant to an optional redemption,
the particular Notes to be redeemed shall be selected not more than 60 days
prior to the Redemption Date by the Trustee, from the outstanding Notes not
previously called for redemption, in compliance with the requirements of the
principal securities exchange, if any, on which such Notes are listed, or, if
such Notes are not so listed, on a pro rata basis, by lot or by such other
method as the Trustee shall deem fair and appropriate and which may provide for
the selection for redemption of portions of the principal of the Notes;
provided, however, that no such partial redemption shall reduce the portion of
the principal amount of a Note not redeemed to less than U.S.$1,000.

 

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

 

33

 

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

 

Section 5.05.  Notice of Redemption.  Notice of redemption shall be
given in the manner provided for in Section 11.02 hereof not less than 30 nor
more than 60 days prior to the Redemption Date, to each Holder of Notes to be
redeemed.  The Trustee shall give notice
of redemption in the Company’s name and at the Company’s expense; provided,
however, that the Company shall deliver to the Trustee, at least 15 days prior
to the date the notice of redemption is to be given (unless a shorter period
shall be acceptable to the Trustee), an Officers’ Certificate requesting that
the Trustee give such notice and setting forth the information to be stated in
such notice as provided in the following items.

 

All notices of redemption shall state:

 

(1)                                  the Redemption Date,

 

(2)                                  the Redemption Price
and the amount of accrued interest to the Redemption Date payable as provided
in Section 5.07 hereof, if any,

 

(3)                                  if less than all
outstanding Notes are to be redeemed, the identification of the particular
Notes (or portion thereof) to be redeemed, as well as the aggregate principal
amount of Notes to be redeemed and the aggregate principal amount of Notes to
be outstanding after such partial redemption,

 

(4)                                  in case any Note is
to be redeemed in part only, the notice which relates to such Note shall state
that on and after the Redemption Date, upon surrender of such Note, the Holder
will receive, without charge, a new Note or Notes of authorized denominations
for the principal amount thereof remaining unredeemed,

 

(5)                                  that on the
Redemption Date the Redemption Price (and accrued interest, if any, to the
Redemption Date payable as provided in Section 5.07 hereof) will become due and
payable upon each such Note, or the portion thereof, to be redeemed, and,
unless the Company defaults in making the redemption payment, that interest on
Notes called for redemption (or the portion thereof) will cease to accrue on
and after said date,

 

(6)                                  the place or places
where such Notes are to be surrendered for payment of the Redemption Price and
accrued interest, if any,

 

(7)                                  the name and address
of the Paying Agent,

 

(8)                                  that Notes called for
redemption must be surrendered to the Paying Agent to collect the Redemption
Price, and

 

(9)                                  the CUSIP number, and
that no representation is made as to the accuracy or correctness of the CUSIP
number, if any, listed in such notice or printed on the Notes.

 

34

 

Section 5.06.  Deposit of Redemption Price.  Prior to any Redemption Date, the
Company shall deposit with the Trustee or with a Paying Agent (or, if the
Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 2.04 hereof) an amount of money sufficient to pay the
Redemption Price of, and accrued interest on, all the Notes which are to be
redeemed on that date.

 

Section 5.07.  Notes Payable on Redemption Date.  Notice of redemption having been
given as aforesaid, the Notes to be redeemed shall, on the Redemption Date,
become due and payable at the Redemption Price therein specified (together with
accrued interest, if any, to the Redemption Date), and from and after such date
(unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Notes shall cease to bear interest.  Upon surrender of any such Note for
redemption in accordance with said notice, such Note shall be paid by the
Company at the Redemption Price, together with accrued interest, if any, to the
Redemption Date (subject to the rights of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date).

 

If any Note called for redemption shall not
be so paid upon surrender thereof for redemption, the principal and premium, if
any, shall, until paid, bear interest from the Redemption Date at the rate
borne by the Notes.

 

Section 5.08.  Notes Redeemed in Part.  Any Note which is to be redeemed
only in part (pursuant to the provisions of this Article 5) shall be
surrendered at the office or agency of the Company maintained for such purpose
pursuant to Section 3.06 hereof (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 such Holder’s attorney duly authorized in writing), and the Company
shall execute, and the Trustee shall authenticate and make available for
delivery to the Holder of such Note at the expense of the Company, a new Note
or Notes, of any authorized denomination as requested by such Holder, in an
aggregate principal amount equal to and in exchange for the unredeemed portion
of the principal of the Note so surrendered, provided that each such new Note
will be in a principal amount of U.S.$1,000 or integral multiple thereof.  Notwithstanding the foregoing, DTC shall
select the Notes for redemption if evidenced by a Global Note according to
DTC’s stated procedures therefor.

 

 

ARTICLE 6

DEFAULTS AND REMEDIES

 

Section 6.01.  Events of Default.  An “Event of Default” occurs if:

 

(1)                                  the
Company defaults in any payment of interest or additional interest (as required
by the Exchange and Registration Rights Agreement) on any Note when the same
becomes due and payable, and such default continues for a period of 30 days;

 

(2)                                  the
Company defaults in the payment of the principal or premium, if any, on any
Note when the same becomes due and payable at its Stated Maturity, upon
optional redemption, upon declaration of acceleration or otherwise;

 

35

 

(3)                                  the
Company or the Guarantor defaults in the performance of or a breach by the Company
or the Guarantor of any other covenant or agreement in this Indenture or under
the Notes (other than those referred to in (1) or (2) above) and such default
continues for 60 days after written notice from the Trustee or the Holders of
at least 25% in principal amount of the outstanding Notes;

 

(4)                                  the
Company, the Guarantor or any Subsidiary shall (i) default in making any
payment of any principal of any indebtedness for borrowed money, including
obligations evidenced by any mortgage, indenture, bond, debenture, note,
guarantee or other similar instruments to which it is a party on the scheduled
or original due date with respect thereto; or (ii) default in making any
payment of any interest on any such indebtedness beyond the period of grace, if
any, provided in the instrument or agreement under which such indebtedness was
created; or (iii) default in the observance or performance of any other
agreement or condition relating to any such indebtedness or contained in any
instrument or agreement evidencing, securing or relating thereto, the effect of
which default or condition is to cause, or to permit the holder or beneficiary
of such indebtedness (or a trustee or agent on behalf of such holder or
beneficiary) to cause, with the giving of notice if required, such indebtedness
to become due prior to its stated maturity or (in the case of any such
indebtedness constituting a guarantee) to become payable and such acceleration
has not been cured within 15 days after notice of acceleration; provided, that
a default, event or condition described in clause (i), (ii) or (iii) of this
paragraph (4) shall not at any time constitute an Event of Default unless, at
such time, one or more defaults, events or conditions of the type described in
clauses (i), (ii) and (iii) of this paragraph (4) shall have occurred and be
continuing with respect to such indebtedness in an amount exceeding
U.S.$50,000,000;

 

(5)                                  (i)
the Company, the Guarantor, a Designated Obligor or any Material Subsidiary
shall commence any case, proceeding or other action (A) under any existing or
future law of any jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization or relief of debtors, seeking to have an order for
relief entered with respect to it, or seeking to adjudicate it bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, winding up,
liquidation, dissolution, composition or other relief with respect to it or its
debts, or (B) seeking appointment of a receiver, trustee, custodian,
conservator or other similar official for it or for all or any substantial part
of its assets, or the Company, the Guarantor, a Designated Obligor or any
Material Subsidiary shall make a general assignment for the benefit of its
creditors; or (ii) there shall be commenced against the Company, the Guarantor,
a Designated Obligor or any Material Subsidiary any case, proceeding or other
action of a nature referred to in clause (i) above that (A) results in the
entry of an order for relief or any such adjudication or appointment or (B)
remains undismissed, undischarged or unbonded for a period of 60 days; or (iii)
there shall be commenced against the Company, the Guarantor, a Designated
Obligor or any Material Subsidiary any case, proceeding or other action seeking
issuance of a warrant of attachment, execution, distraint or similar process
against all or any substantial part of its assets that results in the entry of
an order for any such relief that shall not have been vacated, discharged, or
stayed or bonded pending appeal within 60 days from the entry thereof; or (iv)
the Company, the Guarantor, a Designated Obligor or any Material Subsidiary
shall take any action in furtherance of, or indicating its consent to, approval
of, or acquiescence in, any of the acts set forth in clause (i), (ii), or (iii)
above; or (v) the Company, the Guarantor, a Designated Obligor or any Material

 

36

 

Subsidiary
shall generally not, or shall be unable to, or shall admit in writing its
inability to, pay its debts as they become due.

 

The foregoing will constitute Events of
Default whatever the reason for any such Event of Default and whether it is
voluntary or involuntary or is 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.

 

The Company shall deliver to the Trustee,
within 10 days after the occurrence thereof, written notice in the form of an
Officers’ Certificate of any Default or Event of Default under clauses (3), (4)
or (5) of this Section 6.01, which such notice shall contain the status thereof
and a description of the action being taken or proposed to be taken by the
Company in respect thereof.

 

Section 6.02.  Acceleration.  (a) If an Event of Default occurs and is continuing,
the Trustee by written notice to the Company, or the Holders of at least 25% in
outstanding principal amount of the Notes by written notice to the Company and
the Trustee, may, and the Trustee at the request of such Holders shall, declare
the principal of and premium, if any, and accrued and unpaid interest on all
the Notes to be due and payable.  Upon
such a declaration, such principal, premium, if any, and accrued and unpaid
interest shall be immediately due and payable. 
If an Event of Default described in paragraph (5) of Section 6.01 hereof
occurs and is continuing, then in each and every such case, the principal
amount of the Notes, the premium, if any, and all accrued and unpaid interest
shall be immediately due and payable without any declaration or other act on
the part of the Trustee or the Holders.

 

(b)                                 In
the event the principal of and premium, if any, and accrued and unpaid interest
on the Notes becomes due and payable pursuant to Section 6.02(a) hereof, the
Trustee shall instruct the Company, and the Company shall instruct the Master
Trust Trustee, to declare due and payable the principal and accrued interest in
respect of the intercompany loans that had been made using the net proceeds
from the sale of the Notes invested in the Series 2002-1 VFC.

 

Section 6.03.  Other Remedies.  If an Event of Default occurs and is continuing, the
Trustee may pursue any available remedy to collect the payment of principal of
and premium, if any, or interest on the Notes or to enforce the performance of
any provision of the Notes or this Indenture.

 

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

 

Section 6.04.  Waiver of Past Defaults.  The Holders of a majority in
principal amount of the outstanding Notes by notice to the Trustee may (a)
waive, by their consent (including, without limitation consents obtained in
connection with a purchase of, or tender offer or exchange offer for, Notes),
an existing Default or Event of Default and its consequences except (i) a
Default or Event of Default in the payment of the principal of and premium, if
any, or

 

37

 

interest on a
Note or (ii) a Default or Event of Default in respect of a provision that under
Section 9.02 hereof cannot be amended without the consent of each Noteholder
affected and (b) rescind any such acceleration with respect to the Notes and
its consequences if (1) rescission would not conflict with any judgment or
decree of a court of competent jurisdiction and (2) all existing Events of
Default, other than the nonpayment of the principal of and premium, if any, and
interest on the Notes that have become due solely by such declaration of
acceleration, have been cured or waived. 
When a Default or Event of Default is waived, it is deemed cured, but no
such waiver shall extend to any subsequent or other Default or Event of Default
or impair any consequent right.

 

Section 6.05.  Control by Majority.  The Holders of a majority in
principal amount of the outstanding Notes may direct the time, method and place
of conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on the Trustee.  However, the Trustee may refuse to follow
any direction that conflicts with law or this Indenture or, subject to Section
7.01 and Section 7.02 hereof, that the Trustee determines is prejudicial to the
rights of other Noteholders or would involve the Trustee in personal liability;
provided, however, that the Trustee may take any other action deemed proper by
the Trustee that is not inconsistent with such direction.  Prior to taking any action hereunder, the Trustee
shall be entitled to indemnification satisfactory to it in its sole discretion
against all losses and expenses caused by taking or not taking such action.

 

Section 6.06.  Limitation on Suits.  Subject to Section 6.07 hereof, a
Noteholder may not pursue any remedy with respect to this Indenture or the
Notes unless:

 

(1)                                  the Holder gives to
the Trustee written notice stating that an Event of Default is continuing;

 

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

 

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

 

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

 

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

 

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

 

Section 6.07.  Rights of Holders to Receive Payment.  Notwithstanding any other
provision of this Indenture (including, without limitation, Section 6.06
hereof), the right of any Holder to receive payment of principal of and
premium, if any, or interest on the Notes held by such Holder, on or after the
respective due dates expressed in the Notes, or to bring suit for the

 

38

 

enforcement of
any such payment on or after such respective dates, shall not be impaired or
affected without the consent of such Holder.

 

Section 6.08.  Collection Suit by Trustee.  If an Event of Default specified
in Section 6.01 or (2) hereof occurs and is continuing, the Trustee may recover
judgment in its own name and as trustee of an express trust against the Company
for the whole amount then due and owing (together with interest on any unpaid
interest to the extent lawful) and the amounts provided for in Section 6.07
hereof.

 

Section 6.09.  Trustee May File Proofs of Claim.  The Trustee may file such proofs
of claim and other papers or documents as may be necessary or advisable in
order to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel) and the Noteholders allowed in any judicial proceedings relative
to the Company, the Guarantor, any of the Subsidiaries or their respective
creditors or properties and, unless prohibited by law or applicable
regulations, may be entitled and empowered to participate as a member of any
official committee of creditors appointed in such matter and, may vote on
behalf of the Holders in any election of a trustee in bankruptcy or other
Person performing similar functions, and any custodian in any such judicial
proceeding is hereby authorized by each Holder to make payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and its counsel, and any other amounts due the Trustee under Section
7.07 hereof.

 

Section 6.10.  Priorities. 
If the Trustee collects any money or property pursuant to
this Article 6, it shall pay out the money or property in the following order:

 

FIRST: 
to the Trustee for amounts due under Section 7.07 hereof;

 

SECOND: 
to Noteholders for amounts due and unpaid on the Notes for principal and
premium, if any, and interest, ratably, without preference or priority of any
kind, according to the amounts due and payable on the Notes for principal and
interest, respectively; and

 

THIRD: 
to the Company.

 

The Trustee may fix a record date and payment
date for any payment to Noteholders pursuant to this Section 6.10.  At least 15 days before such record date,
the Company shall mail to each Noteholder and the Trustee a notice that states
the record date, the payment date and amount to be paid.

 

Section 6.11.  Undertaking for Costs.  In any suit for the enforcement
of any right or remedy under this Indenture or in any suit against the Trustee
for any action taken or omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay
the costs of the suit, and the court in its discretion may assess reasonable
costs, including reasonable attorneys’ fees and expenses, against any party
litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. 
This Section 6.11 does not apply to a suit by the Trustee, a suit by the
Company, a suit 

 

39

 

by a Holder pursuant to Section
6.07 hereof or a suit by Holders of more than 10% in outstanding principal
amount of the Notes.

 

 

ARTICLE 7

TRUSTEE

 

Section 7.01.  Duties of Trustee.  (a)  If an Event of Default has occurred and
is continuing, the Trustee shall exercise 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
such Person’s own affairs; provided that if an Event of Default occurs and is
continuing, the Trustee will be under no obligation to exercise any of the
rights or powers under this Indenture at the request or direction of any of the
Holders unless such Holders have offered to the Trustee indemnity or security
reasonably satisfactory to it against loss, liability or expense.

 

Except during the continuance of an Event of
Default:

 

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

 

(2)                                  in the absence of bad
faith on its part, the Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture. 
However, in the case of any such certificates or opinions which by any
provisions hereof are specifically required to be furnished to the Trustee, the
Trustee shall examine such certificates and opinions 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)                                 The
Trustee may not be relieved from liability for its own negligent action, its
own negligent failure to act or its own willful misconduct, except that:

 

(1)                                  this paragraph does
not limit the effect of the second paragraph of Section 7.01(a);

 

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

 

(3)                                  the Trustee shall not
be liable with respect to any action it takes or omits to take in good faith in
accordance with a direction received by it pursuant to Section 6.05 hereof.

 

(c)                                  Every
provision of this Indenture that in any way relates to the Trustee is subject
to paragraphs Section 7.01(a) and (b) hereof.

 

(d)                                 The
Trustee shall not be liable for interest on any money received by it except as
the Trustee may agree in writing with the Company.

 

40

 

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

 

(f)                                    No
provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur 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 to believe that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

 

(g)                                 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 8.01 and to the provisions of the Trust Indenture Act.

 

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

 

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

 

Section 7.02.  Rights of Trustee.  Subject to Section 7.01 hereof:

 

(a)                                  The
Trustee may conclusively rely on any document (whether in its original or
facsimile form) reasonably believed by it to be genuine and to have been signed
or presented by the proper person.  The
Trustee need not investigate any fact or matter stated in the document.  The Trustee shall receive and retain
financial reports and statements of the Company as provided herein, but shall
have no duty to review or analyze such reports or statements to determine
compliance under covenants or other obligations of the Company;

 

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

 

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

 

(d)                                 The
Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or powers,
provided however, that the Trustee’s conduct does not constitute willful
misconduct or negligence;

 

(e)                                  The
Trustee may consult with counsel of its selection, and the advice or opinion of
counsel with respect to legal matters relating to this Indenture and the Notes
shall be full and complete authorization and protection from liability in
respect to any

 

41

 

action taken, omitted or suffered by it
hereunder in good faith and in accordance with the advice or opinion of such
counsel;

 

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

 

(g)                                 The
rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to,
and shall be enforceable by, the Trustee in each of its capacities hereunder
(including Registrar and Paying Agent), and each agent, custodian and other
Person employed to act hereunder; and

 

(h)                                 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.

 

(i)                                     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.

 

(j)                                     The
Trustee’s rights, powers, indemnities, immunities and protections from
liability and its rights to compensation and indemnification in connection with
the performance of its duties under this Indenture shall extend to (1) the
Trustee, whether serving in any other capacity hereunder, including without
limitation, in the capacity of Paying Agent or Registrar and (2) the Trustee’s
officers, directors, agents, counsel and employees.  Such immunities and protections and rights to indemnification,
together with the Trustee’s right to compensation, shall survive the Trustee’s
resignation or removal, the discharge of this Indenture and final payment of
the Notes.

 

(k)                                  The
Trustee shall have no responsibility for any information in any offering
document or other disclosure material distributed with respect to any series of
Notes, and the Trustee shall have no responsibility for compliance with any
state or federal securities laws in connection with the Notes, other than the
filing of any documents required to be filed by an indenture trustee pursuant
to the Trust Indenture Act or otherwise required in the Indenture.

 

(l)                                     Notwithstanding
anything else herein contained, whenever any provision of this Indenture
indicates that any confirmation of a condition or event is qualified by the
words “to the knowledge of” or “known to” the Trustee or other words of similar
meaning, said words shall mean and refer to the current awareness of one or
more Trust Officers who are located at the Principal Trust Office of the
Trustee or who are otherwise responsible for administering the trusts created
under this Indenture.

 

42

 

Section 7.03.  Individual Rights of Trustee.  The Trustee in its individual or
any other capacity may become the owner or pledgee of Notes and may otherwise
deal with the Company or its Affiliates with the same rights it would have if
it were not Trustee.  Any Paying Agent,
Registrar, co-registrar or co-paying agent may do the same with like
rights.  However, the Trustee must
comply with Section 7.10 and Section 7.11 hereof.  In addition, the Trustee shall be permitted to engage in
transactions with the Company; provided, however, that if the Trustee acquires
any conflicting interest the Trustee must (i) eliminate such conflict within 90
days of acquiring such conflicting interest, (ii) apply to the Commission for
permission to continue acting as Trustee or (iii) resign.

 

Section 7.04.  Trustee’s Disclaimer.  The Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of
this Indenture or the Notes, shall not be accountable for the Company’s use of
the proceeds from the Notes, shall not be responsible for the use or
application of any money received by any Paying Agent other than the Trustee
and shall not be responsible for any statement of the Company in this Indenture
or in any document issued in connection with the sale of the Notes or in the
Notes other than the Trustee’s certificate of authentication.

 

Section 7.05.  Notice of Defaults.  If a Default or Event of Default
occurs and is continuing and if a Trust Officer has actual knowledge thereof,
the Trustee shall mail to each Noteholder at the address set forth in the Note
Register notice of the Default or Event of Default within 90 days after it
occurs.  Except in the case of a Default
or Event of Default in payment of principal of and premium, if any, or interest
on any Note (including payments pursuant to the optional redemption or required
repurchase provisions of such Note, if any), the Trustee may withhold the
notice if and so long as the Trustee’s Board of Directors or an executive
committee thereof or a trust committee of its directors and/or officers in good
faith determines that withholding the notice is in the interests of
Noteholders.

 

Section 7.06.  Report by Trustee to Holders.  Within 60 days after each May 15
beginning with the May 15 following the date of this Indenture, and in any
event prior to August 15 in each year, the Trustee shall mail to each
Noteholder a brief report dated as of such May 15  that complies with Trust Indenture Act, Section 313(a), but only
if required under such Section.  The
Trustee also shall comply with Trust Indenture Act, Section 313(b).  The Trustee shall also transmit by mail all
reports required by Trust Indenture Act, Section 313(c).

 

Following the issuance of any Exchange Notes,
a copy of each report at the time of its mailing to Noteholders shall be filed
with the SEC and each stock exchange (if any) on which the Notes are
listed.  The Company agrees to notify
promptly the Trustee whenever the Notes become listed on any stock exchange and
of any delisting thereof.

 

Section 7.07.  Compensation and Indemnity.  The Company shall pay to the
Trustee such compensation for its acceptance of this Indenture and for its
services hereunder as Trustee, Paying Agent, Registrar and in all other
capacities in which it is serving hereunder as the Company and the Trustee shall
from time to time agree in writing.  The
Trustee’s compensation shall not be limited by any law on compensation of a
trustee of an express trust.  The
Company shall reimburse the Trustee upon request for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection,
costs of preparing and reviewing reports, certificates

 

43

 

and other
documents, costs of preparation and mailing of notices to Noteholders and
reasonable costs of counsel retained by the Trustee, in addition to the
compensation for its services.  Such
expenses shall include the reasonable compensation and expenses, disbursements
and advances of the Trustee’s agents, counsel, accountants and experts.  The Company shall indemnify the Trustee, and
any predecessor Trustee and their respective officers, directors, employees,
counsel and agents, against any and all loss, liability, damages, claims or
expense (including reasonable attorneys’ fees and expenses) incurred by it without
negligence or willful misconduct on its part in connection with the
administration of this trust or the performance of its duties hereunder,
including the costs and expenses of enforcing this Indenture (including this
Section 7.07) and of defending itself against any claims (whether asserted by
any Noteholder, the Company or otherwise). 
The Trustee shall notify the Company promptly of any claim for which it
may seek indemnity.  Failure by the
Trustee to so notify the Company shall not relieve the Company of its
obligations hereunder.  The Company
shall defend the claim and the Trustee may have separate counsel and the
Company shall pay the fees and expenses of such counsel, provided that the
Company shall not be required to pay such fees and expenses if it assumes the
obligation for defending the Trustee, and, in the reasonable judgment of the
Trustee, there is no conflict of interest between the Company and the Trustee
in connection with such action and there is no defense that could not be adequately
raised if the Company assumes such obligation. 
The Company need not reimburse any expense or indemnify against any
loss, liability or expense incurred by the Trustee through the Trustee’s own
willful misconduct, negligence or bad faith.

 

To secure the Company’s payment obligations
in this Section 7.07, the Trustee shall have a lien prior to the Notes on all
money or property held or collected by the Trustee other than money or property
held in trust to pay principal of and premium, if any, and interest on
particular Notes.  Such lien shall
survive the satisfaction and discharge of this Indenture.  The Trustee’s right to receive payment of
any amounts due under this Section 7.07 shall not be subordinate to any other
liability or Indebtedness of the Company.

 

The Company’s payment obligations pursuant to
this Section 7.07 shall survive the discharge of this Indenture.  When the Trustee incurs expenses after the
occurrence of a Default specified in Section 6.01(5) hereof with respect to the
Company, the expenses are intended to constitute expenses of administration
under any bankruptcy law.

 

Section 7.08.  Replacement of Trustee.  The Trustee may resign at any
time by so notifying the Company.  The
Holders of a majority in principal amount of the Notes may remove the Trustee
by so notifying the Trustee and may appoint a successor Trustee.  The Company shall remove the Trustee if:

 

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

 

(2)                                  the Trustee is
adjudged bankrupt or insolvent;

 

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

 

(4)                                  the Trustee otherwise
becomes incapable of acting.

 

If the Trustee resigns or is removed by the
Company or by the Holders of a majority in principal amount of the Notes and
such Holders do not reasonably promptly appoint a successor

 

44

 

Trustee, or if
a vacancy exists in the office of the Trustee for any reason (the Trustee in
such event being referred to herein as the retiring Trustee), the Company shall
promptly appoint a successor Trustee.

 

A successor Trustee shall deliver a written
acceptance of its appointment to the retiring Trustee and to the Company.  Thereupon the resignation or removal of the
retiring Trustee shall become effective, and the successor Trustee shall have
all the rights, powers and duties of the Trustee under this Indenture.  The successor Trustee shall mail a notice of
its succession to Noteholders.  The
retiring Trustee shall promptly transfer all property held by it as Trustee to
the successor Trustee, subject to the lien provided for in Section 7.07 hereof.

 

If a successor Trustee does not take office
within 60 days after the retiring Trustee resigns or is removed, the retiring
Trustee or the Holders of 10% in principal amount of the Notes may petition, at
the Company’s expense, any court of competent jurisdiction for the appointment
of a successor Trustee.

 

If the Trustee fails to comply with Section
7.10 hereof, any Noteholder may petition any court of competent jurisdiction
for the removal of the Trustee and the appointment of a successor Trustee.

 

Notwithstanding the replacement of the
Trustee pursuant to this Section 7.08, the Company’s obligations under Section
7.07 hereof shall continue for the benefit of the retiring Trustee.

 

Section 7.09.  Successor Trustee by Merger.  If the Trustee consolidates with,
merges or converts into, or transfers all or substantially all its corporate
trust business or assets to, another corporation or banking association, the resulting,
surviving or transferee corporation without any further act shall be the
successor Trustee.

 

In case at the time such successor or
successors by merger, conversion, consolidation or transfer of assets to the
Trustee shall succeed to the trusts created by this Indenture, any of the Notes
shall have been authenticated but not delivered, any such successor to the
Trustee may adopt the certificate of authentication of any predecessor trustee,
and deliver such Notes so authenticated; and in case at that time any of the
Notes shall not have been authenticated, any successor to the Trustee may
authenticate such Notes either in the name of any predecessor hereunder or in
the name of the successor to the Trustee.

 

Section 7.10.  Eligibility; Disqualification.  The Trustee shall at all times
satisfy the requirements of Trust Indenture Act, Section 310(a).  The Trustee shall have a combined capital
and surplus of at least U.S.$50,000,000 as set forth in its most recent filed
annual report of condition.  The Trustee
shall comply with Trust Indenture Act, Section 310(b); provided, however, that
there shall be excluded from the operation of Trust Indenture Act, Section
310(b)(1) any indenture or indentures under which other securities or
certificates of interest or participation in other securities of the Company
are outstanding if the requirements for such exclusion set forth in Trust
Indenture Act, Section 310(b)(1) are met.

 

Section 7.11.  Preferential Collection of Claims Against
Company.  The Trustee shall
comply with Trust Indenture Act, Section 311(a), excluding any creditor
relationship listed in

 

45

 

Trust Indenture Act, Section
311(b).  A Trustee who has resigned or
been removed shall be subject to Trust Indenture Act, Section 311(a) to the
extent indicated.

 

Section 7.12.  Trustee’s Application for Instruction from
the Company.  Any application
by the Trustee for written instructions from the Company may, at the option of
the Trustee, set forth in writing any action proposed to be taken or omitted by
the Trustee under this Indenture and the date on and/or after which such action
shall be taken or such omission shall be effective.  The Trustee shall not be liable for any action taken by, or
omission of, the Trustee in accordance with a proposal included in such
application on or after the date specified in such application (which date
shall not be less than three Business Days after the date any officer of the
Company actually receives such application, unless any such officer shall have
consented in writing to any earlier date) unless prior to taking any such
action (or the effective date in the case of an omission), the Trustee shall
have received written instructions in response to such application specifying
the action to be taken or omitted.

 

 

ARTICLE 8

DISCHARGE OF INDENTURE; DEFEASANCE

 

Section 8.01.  Discharge of Liability on Notes;
Defeasance.  (a)  Subject
to Section 8.01(b) hereof, when (i)(x) the Company delivers to the Trustee all
outstanding Notes (other than Notes replaced pursuant to Section 2.09 hereof)
for cancellation or (y) all outstanding Notes not theretofore delivered for
cancellation have become due and payable, whether at maturity or upon
redemption or will become due and payable within one year or 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 or the Guarantor irrevocably deposits or
causes to be deposited with the Trustee as trust funds in trust solely for the
benefit of the Holders money in U.S. dollars, non-callable U.S. Government
Securities, or a combination thereof, in such amounts as will be sufficient
without consideration of any reinvestment of interest to pay and discharge the
entire indebtedness on such Notes not theretofore delivered to the Trustee for
cancellation for principal and premium, if any, and accrued interest to the
date of maturity or redemption, (ii) no Default or Event of Default shall have
occurred and be continuing on the date of such deposit or shall occur as a
result of such deposit and such deposit will not result in a breach or
violation of, or constitute a default under, any other instrument to which the
Company or the Guarantor is a party or by which the Company or the Guarantor is
bound; (iii) the Company or the Guarantor has paid or caused to be paid all
sums payable by it under this Indenture and the Notes; and (iv) the Company has
delivered irrevocable instructions to the Trustee under this Indenture to apply
the deposited money toward the payment of such Notes at maturity or the
Redemption Date, as the case may be, then the Trustee shall acknowledge
satisfaction and discharge of this Indenture on demand of the Company
(accompanied by an Officers’ Certificate and an Opinion of Counsel stating that
all conditions precedent specified herein relating to the satisfaction and
discharge of this Indenture have been complied with) and at the cost and expense
of the Company.

 

(b)                   Subject
to Section 8.01(c)and Section 8.02 hereof, the Company at any time may
terminate (i) all its obligations under the Notes and this Indenture (“legal
defeasance option”), and after giving effect to such legal defeasance, any omission
to comply with such obligations

 

46

 

shall no
longer constitute a Default or Event of Default or (ii) its obligations under,
Section 3.02, Section 3.03, Section 3.04, Section 3.05, Section 3.08 and Section
3.09 hereof, and 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
covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or by reason of any reference in any such covenant
to any other provision herein or in any other document, and the operation of
Section 6.01(3) (only with respect to the covenants terminated pursuant to this
Section 8.01(b)(ii)), Section 6.01(4) and Section 6.01(5) hereof, and the
events specified in such Sections shall no longer constitute an Event of
Default (clause (ii) being referred to as the “covenant defeasance option”),
but except as specified above, the remainder of this Indenture and the Notes
shall be unaffected thereby.  The
Company may exercise its legal defeasance option notwithstanding its prior
exercise of its covenant defeasance option. If the Company exercises its
covenant defeasance option, the Company may elect to have the Guarantee
terminate.

 

If the Company exercises its legal defeasance
option, payment of the Notes may not be accelerated because of an Event of
Default, and the Guarantee shall terminate. 
If the Company exercises its covenant defeasance option, payment of the
Notes may not be accelerated because of an Event of Default specified in
Section 6.01(3) (only with respect to the covenants terminated pursuant to
Section 8.01(b)(ii) above), Section 6.01(4) and Section 6.01(5) hereof.

 

Upon satisfaction of the conditions set forth
herein and upon request of the Company, the Trustee shall acknowledge in
writing the discharge of those obligations that the Company terminates.

 

(c)                                  Notwithstanding
the provisions of Section 8.01(a) and (b) hereof, the Company’s obligations in
Section 2.02, Section 2.03, Section 2.04, Section 2.05, Section 2.06, Section
2.09, Section 2.10, Section 2.11, Section 2.12, Section 3.01, Section 3.06,
Section 3.07, Section 3.10, Section 3.11, Section 3.12, Section 3.13, Section
3.14, Section 6.07, Section 7.07, Section 7.08 hereof and in this Article 8
shall survive until the Notes have been paid in full.  Thereafter, the Company’s obligations in Section 7.07, Section
8.04 and Section 8.05 hereof shall survive.

 

Section 8.02.  Conditions to Defeasance.  The Company may exercise its
legal defeasance option or its covenant defeasance option only if:

 

(1)                                  the Company
irrevocably deposits in trust with the Trustee for the benefit of the Holders
money in U.S. dollars or U.S. Government Securities or a combination thereof
for the payment of principal of and premium, if any, and interest on the Notes
to maturity or redemption, as the case may be;

 

(2)                                  the Company delivers
to the Trustee a certificate from a firm of independent accountants expressing
their opinion that the payments of principal and interest when due and without
reinvestment on the deposited U.S. Government Securities plus any deposited
money without investment will provide cash at such times and in such amounts as
will be sufficient to pay principal and interest when due on all the Notes to
maturity;

 

47

 

(3)                                  no Default or Event
of Default shall have occurred and be continuing on the date of such deposit
or, with respect to certain bankruptcy or insolvency Events of Default, on the
91st day after such date of deposit;

 

(4)                                  such legal defeasance
or covenant defeasance shall not result in a breach or violation of, or
constitute a Default under, this Indenture or any other material agreement or
instrument to which the Company, the Guarantor or any of its Subsidiaries is a
party or by which the Company, the Guarantor or any of its Subsidiaries is
bound;

 

(5)                                  the Company shall
have delivered to the Trustee an Opinion of Counsel (subject to customary
assumptions and exclusions) to the effect that (A) the Notes and (B) assuming
no intervening bankruptcy of the Company between the date of deposit and the
91st day following the deposit and that no Holder of the Notes is an insider of
the Company, after the 91st day following the deposit, the trust funds will not
be subject to the effect of any applicable bankruptcy, insolvency,
reorganization or similar laws affecting creditors’ right generally;

 

(6)                                  the deposit does not
constitute a default under any other agreement binding on the Company;

 

(7)                                  the Company delivers
to the Trustee an Opinion of Counsel (subject to customary assumptions and
exclusions) to the effect that the trust resulting from the deposit does not
constitute, or is qualified as, a regulated investment company under the U.S.
Investment Company Act of 1940, as amended;

 

(8)                                  in the case of the
legal defeasance option, the Company shall have delivered to the Trustee an
Opinion of Counsel (subject to customary assumptions and exclusions) in the
United States stating that (i) the Company has received from, or there has been
published by, the U.S. Internal Revenue Service a ruling, or (ii) since the
date of this Indenture there has been a change in the applicable federal income
tax law, in either case to the effect that, and based thereon such Opinion of
Counsel shall confirm that, the Noteholders will not recognize income, gain or
loss for federal income tax purposes as a result of such defeasance and will be
subject to federal income tax on the same amounts, in the same manner and at
the same times as would have been the case if such legal defeasance had not
occurred;

 

(9)                                  in the case of the
covenant defeasance option, the Company shall have delivered to the Trustee an
Opinion of Counsel (subject to customary assumptions and exclusions) in the
United States to the effect that the Noteholders will not recognize income,
gain or loss for federal income tax purposes as a result of such deposit and
covenant defeasance and will be subject to federal income tax on the same
amount, in the same manner and at the same times as would have been the case if
such deposit and covenant defeasance had not occurred; and

 

(10)                            the Company delivers to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
all conditions precedent to the defeasance and discharge of the Notes and this
Indenture as contemplated by this Article 8 have been complied with.

 

Section 8.03.  Application of Trust Money.  The Trustee shall hold in trust
money or U.S. Government Securities deposited with it pursuant to this Article
8.  It shall apply the deposited money
and the money from U.S. Government Securities through the Paying Agent and in

 

48

 

accordance
with this Indenture to the payment of principal of and premium, if any, and
interest on the Notes.

 

Section 8.04.  Repayment to Company.  The Trustee and the Paying Agent
shall promptly turn over to the Company upon request any excess money or
securities held by them upon payment of all the obligations under this
Indenture.

 

Subject to any applicable abandoned property
law, the Trustee and the Paying Agent shall pay to the Company upon request any
money held by them for the payment of principal of and premium, if any, or
interest on the Notes that remains unclaimed for two years, and, thereafter,
Noteholders entitled to the money must look to the Company for payment as
general creditors.

 

Section 8.05.  Indemnity for U.S. Government
Securities.  The Company
shall pay and shall indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against deposited U.S. Government Securities or the
principal and interest received on such U.S. Government Securities.

 

Section 8.06.  Reinstatement.  If the Trustee or Paying Agent is unable to apply any
money or U.S. Government Securities in accordance with this Article 8 by reason
of any legal proceeding or by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, the obligations of the Company under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to
this Article 8 until such time as the Trustee or Paying Agent is permitted to
apply all such money or U.S. Government Securities in accordance with this
Article 8; provided, however, that, if the Company has made any payment of
interest on or principal of any Notes because of the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of
such Notes to receive such payment from the money or U.S. Government Securities
held by the Trustee or Paying Agent.

 

The Trustee’s rights under this Article 8
shall survive termination of this Indenture and the resignation or removal of
the Trustee.

 

 

ARTICLE 9

AMENDMENTS

 

Section 9.01.  Without Consent of Holders.  The Company, the Guarantor and
the Trustee may amend this Indenture or the Notes without notice to or consent
of any Noteholder:

 

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

 

(2)                                  to comply with
Article 4 in respect of the assumption by a Successor Guarantor of an
obligation of the Guarantor under this Indenture;

 

(3)                                  to provide for
uncertificated Notes in addition to or in place of certificated Notes;
provided, however, that the uncertificated Notes are issued in registered form
for purposes of

 

49

 

Section 163(f)
of the Code or in a manner such that the uncertificated Notes are described in
Section 163(f)(2)(B) of the Code;

 

(4)                                  to add guarantees
with respect to the Notes;

 

(5)                                  to secure the Notes;

 

(6)                                  to add to the
covenants of the Company or the Guarantor for the benefit of the Holders or to
surrender any right or power herein conferred upon the Company or the
Guarantor;

 

(7)                                  to make any change
that does not adversely affect the interests of any Noteholder;

 

(8)                                  to provide for the
issuance of the Exchange Notes, which will have terms substantially identical
in all material respects to the Initial Notes (except that the transfer
restrictions contained in the Initial Notes will be modified or eliminated, as
appropriate), and which will be treated, together with any outstanding Initial
Notes, as a single issue of securities;

 

(9)                                  to provide for the issuance
of any Subsequent Notes; or

 

(10)                            to comply with any
requirement of the SEC in connection with the qualification of this Indenture
under the Trust Indenture Act.

 

After an amendment under this Section 9.01
becomes effective, the Company shall mail to Noteholders a notice briefly
describing such amendment.  The failure
to give such notice to all Noteholders at the address set forth in the Note
Register, or any defect therein, shall not impair or affect the validity of an
amendment under this Section 9.01.

 

Section 9.02.  With Consent of Holders.  The Company, the Guarantor and
the Trustee may amend this Indenture or the Notes without notice to any
Noteholder but with the written consent of the Holders of at least a majority
in principal amount of the Notes then outstanding (including, without
limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for, Notes).  However,
without the consent of each Noteholder affected, an amendment may not:

 

(1)                                  reduce the amount of
Notes whose Holders must consent to an amendment of this Indenture or the
Notes;

 

(2)                                  reduce the amount of
Notes whose Holders must consent to an amendment of provisions of the Master
Trust Transaction Documents pursuant to Section 3.02(f) hereof;

 

(3)                                  reduce the stated
rate of or extend the stated time for payment of interest on any Note;

 

(4)                                  reduce the principal
of, or extend the Stated Maturity of, any Note;

 

(5)                                  reduce the premium
payable upon the redemption of any Note as described above under Article 5
hereof or any similar provision, whether through an amendment to or waiver of
Article 5 hereof, a definition or otherwise;

 

50

 

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

 

(7)                                  impair the right of
any Holder to receive payment of principal of and premium, if any, and interest
on such Holder’s Notes on or after the due dates therefor or to institute suit
for the enforcement of any payment on or with respect to such Holder’s Notes;

 

(8)                                  make any change to
the amendment provisions which require each Holder’s consent or to the waiver
provisions; or

 

(9)                                  release the Guarantor
or modify the Guarantee other than in accordance with the provisions of this
Indenture.

 

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

 

After an amendment under this Section 9.02
becomes effective, the Company shall mail to Noteholders a notice briefly
describing such amendment.  The failure
to give such notice to all Noteholders, or any defect therein, shall not impair
or affect the validity of an amendment under this Section 9.02.

 

Section 9.03.  Compliance with Trust Indenture Act.  Every amendment to this Indenture
or the Notes shall comply with the Trust Indenture Act as then in effect.

 

Section 9.04.  Revocation and Effect of Consents and
Waivers.  A consent to an
amendment or a waiver by a Holder of a Note shall bind the Holder and every
subsequent Holder of that Note or portion of the Note that evidences the same
debt as the consenting Holder’s Note, even if notation of the consent or waiver
is not made on the Note.  However, any
such Holder or subsequent Holder may revoke the consent or waiver as to such
Holder’s Note or portion of the Note if the Trustee receives the notice of
revocation before the date the amendment or waiver becomes effective or
otherwise in accordance with any related solicitation documents.  After an amendment or waiver becomes
effective, it shall bind every Noteholder. 
An amendment or waiver shall become effective upon receipt by the Trustee
of the requisite number of written consents under Section 9.01 or 9.02 hereof,
as applicable.

 

The Company may, but shall not be obligated
to, fix a record date for the purpose of determining the Noteholders entitled
to give their consent or take any other action described above or required or
permitted to be taken pursuant to this Indenture.  If a record date is fixed, then notwithstanding the immediately
preceding paragraph, those Persons who were Noteholders at such record date (or
their duly designated proxies), and only those Persons, shall be entitled to
give such consent or to revoke any consent previously given or to take any such
action, whether or not such Persons continue to be Holders after such record
date.  No such consent shall become
valid or effective more than 120 days after such record date.

 

Section 9.05.  Notation on or Exchange of Notes.  If an amendment changes the terms
of a Note, the Trustee may require the Holder of the Note to deliver it to the
Trustee.  The Trustee may place an
appropriate notation on the Note regarding the changed terms and return it to
the Holder.  Alternatively, if the
Company or the Trustee so determines, the Company in exchange

 

51

 

for the Note
shall issue and the Trustee shall authenticate a new Note that reflects the
changed terms.  Failure to make the
appropriate notation or to issue a new Note shall not affect the validity of
such amendment.

 

Section 9.06.  Trustee to Sign Amendments.  The Trustee shall sign any
amendment authorized pursuant to this Article 9 if the amendment does not affect
the rights, duties, protections, privileges, indemnities, powers, liabilities
or immunities of the Trustee.  If it
does, the Trustee may but need not sign it. 
In signing such amendment the Trustee shall be entitled to receive
indemnity reasonably satisfactory to it and shall be provided with, and
(subject to Sections 7.01 and 7.02 hereof), shall be fully protected in relying
upon an Officers’ Certificate and an Opinion of Counsel stating that such
amendment is authorized or permitted by this Indenture, that it conforms to the
applicable requirements of the Trust Indenture Act and that such amendment is
the legal, valid and binding obligation of the Company and any Guarantors,
enforceable against them in accordance with its terms, subject to customary
exceptions and complies with the provisions hereof (including Section 9.03
hereof).

 

 

ARTICLE 10

GUARANTEE

 

Section 10.01.  Guarantee. 
The Guarantor hereby fully, unconditionally and irrevocably
guarantees, as primary obligor and not merely as surety, to each Holder of the
Notes and the Trustee the full and punctual payment when due, whether at
maturity, by acceleration, by redemption or otherwise, of the principal of and
premium, if any, and interest on the Notes and all other obligations of the
Company under this Indenture, including, without limitation, the obligations of
the Company under Section 7.07 hereof (all the foregoing being hereinafter
collectively called the “Obligations”).  The Guarantor further agrees (to the extent permitted by law)
that the Obligations may be extended or renewed, in whole or in part, without
notice or further assent from it, and that it will remain bound under this
Article 10 notwithstanding any extension or renewal of any Obligation.

 

The Guarantor waives presentation to, demand
of payment from and protest to the Company of any of the Obligations and also
waives notice of protest for nonpayment. 
The Guarantor waives notice of any default under the Notes or the
Obligations.  The obligations of the
Guarantor hereunder shall not be affected by (a) the failure of the Trustee or
any Holder to assert any claim or demand or to enforce any right or remedy
against the Company or any other person under this Indenture, the Notes or any
other agreement or otherwise; (b) any extension or renewal of any thereof; (c)
any rescission, waiver, amendment or modification of any of the terms or
provisions of this Indenture, the Notes or any other agreement; (d) the release
of any security held by any Holder or the Trustee for the Obligations or any of
them; or (e) any change in the ownership of the Company.

 

The Guarantor further agrees that the
Guarantee herein constitutes a guarantee of payment when due (and not a
guarantee of collection) and waives any right to require that any resort be had
by any Holder or the Trustee to any security held for payment of the
Obligations.

 

52

 

The obligations of the Guarantor hereunder
shall not be subject to any reduction, limitation, impairment or termination for
any reason (other than payment of the Obligations in full), including any claim
of waiver, release, surrender, alteration or compromise, and shall not be
subject to any defense of setoff, counterclaim, recoupment or termination
whatsoever or by reason of the invalidity, illegality or unenforceability of
the Obligations or otherwise.  Without
limiting the generality of the foregoing, the obligations of the Guarantor
herein shall not be discharged or impaired or otherwise affected by the failure
of any Holder to assert any claim or demand or to enforce any remedy under this
Indenture, the Notes or any other agreement, by any waiver or modification of
any thereof, by any default, failure or delay, willful or otherwise, in the
performance of the Obligations, or by any other act or thing or omission or
delay to do any other act or thing which may or might in any manner or to any
extent vary the risk of the Guarantor or would otherwise operate as a discharge
of the Guarantor as a matter of law or equity.

 

The Guarantor further agrees that the
Guarantee herein shall continue to be effective or be reinstated, as the case
may be, if at any time payment, or any part thereof, of principal of and
premium, if any, or interest on any of the Obligations is rescinded or must
otherwise be restored by any Holder upon the bankruptcy or reorganization of
the Company or otherwise.

 

In furtherance of the foregoing and not in
limitation of any other right which any Holder has at law or in equity against
the Guarantor by virtue hereof, upon the failure of the Company to pay any of
the Obligations when and as the same shall become due, whether at maturity, by
acceleration, by redemption or otherwise, the Guarantor hereby promises to and
will, upon receipt of written demand by the Trustee, forthwith pay, or cause to
be paid, in cash, to the Holders an amount equal to the sum of (i) the unpaid
amount of such Obligations then due and owing and (ii) accrued and unpaid
interest on such Obligations then due and owing (but only to the extent not
prohibited by law).

 

The Guarantor further agrees that, as between
the Guarantor, on the one hand, and the Holders, on the other hand, (x) the
maturity of the Obligations guaranteed hereby may be accelerated as provided in
this Indenture for the purposes of the Guarantee herein, notwithstanding any
stay, injunction or other prohibition preventing such acceleration in respect
of the Obligations guaranteed hereby and (y) in the event of any such
declaration of acceleration of such Obligations, such Obligations (whether or
not due and payable) shall forthwith become due and payable by the Guarantor
for the purposes of this Guarantee.

 

The Guarantor also agrees to pay any and all
reasonable costs and expenses (including reasonable attorneys’ fees) incurred
by the Trustee or the Holders in enforcing any rights under this Section.

 

Section 10.02.  No Subrogation.  Notwithstanding any payment or payments made by the
Guarantor hereunder, the Guarantor shall not be entitled to be subrogated to
any of the rights of the Trustee or any Holder against the Company or any
collateral security or guarantee or right of offset held by the Trustee or any
Holder for the payment of the Obligations, nor shall the Guarantor seek or be
entitled to seek any contribution or reimbursement from the Company in respect
of payments made by the Guarantor hereunder, until all amounts owing to the
Trustee and the Holders, as well as the holders of any other Permitted
Indebtedness, by the Company on account of the Obligations are paid in full.  If any amount shall be paid to the Guarantor
on

 

53

 

account of
such subrogation rights at any time when all of the Obligations shall not have
been paid in full, such amount shall be held by the Guarantor in trust for the
Trustee and the Holders, segregated from other funds of the Guarantor, and
shall, forthwith upon receipt by the Guarantor, be turned over to the Trustee
in the exact form received by the Guarantor (duly indorsed by the Guarantor to
the Trustee, if required), to be applied against the Obligations.

 

Section 10.03.  Consideration.  The Guarantor has received, or will receive, direct or
indirect benefits from the making of the Guarantee.

 

Section 10.04.  Additional Amounts.  In the event that payments are
made by the Guarantor pursuant to its obligations under this Article, the
Guarantor will pay to the Holder of any Note additional amounts as may be
necessary so that every net payment made by the Guarantor of the principal of
and premium, if any, and interest on such Note, after deducting or withholding
for or on account of any present or future tax, duty, fee, assessment or other
governmental charge duly imposed by, and payable by that Holder to, Bermuda,
will not be less than the amount provided in that Note to be then due and
payable.  The Guarantor will not be
required, however, to make any payment of additional amount for or on account
of any such tax imposed by reason of the Holder having some connection with any
such jurisdiction other than its participation as Holder.

 

 

ARTICLE 11

MISCELLANEOUS

 

Section 11.01.  Trust Indenture Act Controls.  If any provision of this
Indenture limits, qualifies or conflicts with another provision which is
required to be included in this Indenture by the Trust Indenture Act, the
provision required by the Trust Indenture Act shall control.  The Guarantor in addition to performing its
obligations under the Guarantee shall perform such other obligations as may be
imposed upon it with respect to this Indenture under the Trust Indenture Act.

 

Section 11.02.  Notices. 
Any notice or communication shall be in writing and (a)
delivered in person, (b) sent by a recognized overnight delivery service (with
charges prepaid), or (c) sent by telecopy if the sender on the same day sends a
confirming copy of such notice by a recognized overnight delivery service
(charges prepaid), addressed as follows:

 

If to the
Company:

 

Bunge Limited
Finance Corp.

11720 Borman
Drive

St. Louis,
Missouri 63146

Attention:  Francis X. Marchiony

Telephone:   (314)
292-6538

Telecopy:     (314)
292-6530

 

with a copy
to:

 

54

 

Carey Dubois

Telecopy:  (914) 684-3443

 

If to the
Guarantor:

 

Bunge Limited

50 Main Street

White Plains, New York  10606

Attention:  Morris M. Kalef / Carey
Dubois

Telephone:  (914)
684-3440/(914) 684-3365

Telecopy:    (914)
684-3443

 

if to the
Trustee:

 

SunTrust Bank

25 Park Place

24th Floor

Atlanta, Georgia 30303-2900

Attention:  Corporate Trust Department

Telephone:  (404)
588-7591

Telecopy:    (404)
588-7335

 

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

 

Any notice or communication mailed to a
registered Noteholder shall be mailed to the Noteholder at the Noteholder’s
address as it appears on the registration books of the Registrar and shall be
sufficiently given if so mailed within the time prescribed.

 

Failure to mail a notice or communication to
a Noteholder or any defect in it shall not affect its sufficiency with respect
to other Noteholders.  If a notice or
communication is sent in the manner provided above, it is duly given, whether
or not the addressee receives it, except that notices to the Trustee shall be
effective only upon receipt.

 

Section 11.03.  Communication by Holders with Other
Holders.  Noteholders may
communicate pursuant to Trust Indenture Act, Section 312(b) with other
Noteholders with respect to their rights under this Indenture or the
Notes.  The Company, the Trustee, the
Registrar and anyone else shall have the protection of Trust Indenture Act,
Section 312(c).

 

Section 11.04.  Certificate and Opinion as to Conditions
Precedent.  Upon any request
or application by the Company to the Trustee to take or refrain from taking any
action under this Indenture, the Company shall furnish to the Trustee:

 

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

 

55

 

(2)                                  an Opinion of Counsel
in form and substance reasonably satisfactory to the Trustee stating that, in
the opinion of such counsel, all such conditions precedent have been complied
with.

 

Section 11.05.  Statements Required in Certificate or
Opinion.  Each certificate or
opinion with respect to compliance with a covenant or condition provided for in
this Indenture shall include:

 

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

 

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

 

(3)                                  a statement that, in
the opinion of such 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 or not, in the opinion of such individual, such covenant or condition
has been complied with.

 

In giving such Opinion of Counsel, counsel
may rely as to factual matters on an Officers’ Certificate or on certificates
of public officials.

 

Section 11.06.  When Notes Disregarded.  In determining whether the
Holders of the required principal amount of Notes have concurred in any
direction, waiver or consent, Notes owned by the Company or by an Affiliate of
the Company shall be disregarded and deemed not to be outstanding, except that,
for the purpose of determining whether the Trustee shall be protected in
relying on any such direction, waiver or consent, only Notes which a Trust
Officer of the Trustee actually knows are so owned shall be so
disregarded.  Also, subject to the
foregoing, only Notes outstanding at the time shall be considered in any such
determination.

 

Section 11.07.  Rules by Trustee, Paying Agent and
Registrar.  The Trustee may
make reasonable rules for action by, or a meeting of, Noteholders.  The Registrar and the Paying Agent may make
reasonable rules for their functions.

 

Section 11.08.  Legal Holidays.  A “Legal Holiday” is a Saturday, a Sunday or other day
on which commercial banking institutions are authorized or required to be
closed in New York, New York or Hamilton, Bermuda.  If a payment date is a Legal Holiday, payment shall be made on
the next succeeding day that is not a Legal Holiday, and no interest shall
accrue for the intervening period.  If a
regular record date is a Legal Holiday, the record date shall not be affected.

 

Section 11.09.  GOVERNING LAW.  THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

56

 

Section 11.10.  No Recourse Against Others.  An incorporator, director,
officer, employee, affiliate or stockholder of the Company or the Guarantor,
solely by reason of this status, shall not have any liability for any
obligations of the Company under the Notes, this Indenture or the Guarantee or
for any claim based on, in respect of or by reason of such obligations or their
creation.  By accepting a Note, each
Noteholder shall waive and release all such liability.  The waiver and release shall be part of the
consideration for the issue of the Notes.

 

Section 11.11.  Successors. 
All agreements of the Company in this Indenture and the Notes
shall bind their respective successors. 
All agreements of the Trustee in this Indenture shall bind its
successors.

 

Section 11.12.  Consent to Jurisdiction.  The Guarantor irrevocably submits
to the jurisdiction of any New York state or U.S. federal court sitting in the
Borough of Manhattan, The City of New York, in any action or proceeding
relating to its obligations, liabilities or any other matter arising out of or
in connection with this Indenture or the Notes.  The Guarantor hereby irrevocably agrees that all claims in respect
of any such action or proceeding may be heard and determined in such New York
state or U.S. federal court.  The
Guarantor also hereby irrevocably waives, to the fullest extent permitted by
law, any objection to venue or the defense of an inconvenient forum to the
maintenance of any such action or proceeding in any such court.

 

Section 11.13.  Appointment for Agent for Service of
Process.  The Guarantor
hereby (i) irrevocably designates and appoints its Chief Financial Officer
(from time to time) at its principal executive offices at 50 Main Street, White
Plains, New York 10606 (the “Authorized Agent”), as its agent upon which
process may be served in any suit, action or proceeding described in the first
sentence of Section 11.12 hereof and represents and warrants that the
Authorized Agent has accepted such designation and (ii) agrees that service of
process upon the Authorized Agent and written notice of said service to the
Guarantor mailed or delivered to its Secretary at its registered office at 2
Church Street, Hamilton, Bermuda, shall be deemed in every respect effective
service of process upon the Guarantor in any such suit or proceeding.  The Guarantor further agrees to take any and
all action, including the execution and filing of any and all such documents
and instruments, as may be necessary to continue such designation and
appointment of the Authorized Agent in full force and effect so long as any of
the Notes shall be outstanding.

 

Section 11.14.  Waiver of Immunities.  To the extent that the Guarantor
or any of its properties, assets or revenues may have or may hereafter become
entitled to, or have attributed to them, any right of immunity, on the grounds
of sovereignty, from any legal action, suit or proceeding, from set-off or
counterclaim, from the jurisdiction of any court, from service of process, from
attachment upon or prior to judgment, or from attachment in aid of execution of
judgment, or from execution of judgment, or other legal process or proceeding
for the giving of any relief or for the enforcement of any judgment, in any
jurisdiction in which proceedings may at any time be commenced, with respect to
its obligations, liabilities or any other matter under or arising out of or in
connection with this Indenture or the Notes, the Guarantor hereby irrevocably
and unconditionally, to the extent permitted by applicable law, waives and
agrees not to plead or claim any such immunity and consents to such relief and
enforcement.

 

57

 

Section 11.15.  Foreign Taxes.  Any payments by the Guarantor to the Trustee or the
Noteholders hereunder shall be made free and clear of, and without deduction or
withholding for or on account of, any and all present and future income, stamp
or other taxes, levies, imposts, duties, charges, fees, deductions or
withholdings, now or hereinafter imposed, levied, collected, withheld or
assessed by Bermuda or any other foreign jurisdiction in which the Guarantor or
any Subsidiary has an office from which payment is made or deemed to be made,
excluding any such tax imposed by reason of the Trustee or any Noteholder
having some connection with any such jurisdiction other than its participation
as the Trustee or Noteholder under the Indenture (all such taxes, “Foreign
Taxes”).  If the Guarantor is
prevented by operation of law or otherwise from paying, causing to be paid or
remitting that portion of amounts payable hereunder represented by Foreign
Taxes withheld or deducted, then amounts payable under this Indenture shall, to
the extent permitted by law, be increased to such amount as is necessary to
yield and remit to the Trustee and the Noteholders an amount which, after
deduction of all Foreign Taxes (including all Foreign Taxes payable on such
increased payments) equals the amount that would have been payable if no
Foreign Taxes applied.

 

Section 11.16.  Judgment Currency.  If for the purposes of obtaining judgment in any court
it is necessary to convert a sum due hereunder into any currency other than
U.S. dollars, the parties hereto agree, to the fullest extent permitted by law,
that the rate of exchange used shall be the rate at which in accordance with
normal banking procedures the Trustee or any Holder, as the case may be, could
purchase U.S. dollars with such other currency in New York City on the Business
Day preceding that on which final judgment is given.  The obligation of the Guarantor with respect to any sum due from
it to the Trustee or any Holder shall, notwithstanding any judgment in a
currency other than U.S. dollars, be discharged only if and to the extent that
on the first Business Day following receipt by the Trustee or such Holder, as
the case may be, of any sum adjudged to be so due in such other currency, the
Trustee or such Holder may in accordance with normal banking procedures
purchase U.S. dollars with such other currency.  If the U.S. dollars so purchased are less than the sum originally
due to the Trustee or such Holder hereunder, the Guarantor agrees, as a
separate obligation and notwithstanding any such judgment, to indemnify the
Trustee or such Holder against such loss. 
If the U.S. dollars so purchased are greater than the sum originally due
to the Trustee or such Holder hereunder, the Trustee or such Holder, as the
case may be, agrees to pay to the Guarantor an amount equal to the excess of
the U.S. dollars so purchased over the sum originally due to the Trustee or
such Holder hereunder.

 

Section 11.17.  No Bankruptcy Petition Against the Borrower;
Liability of the Borrower.  Each
of the Noteholders and the Trustee hereby covenants and agrees that, prior to
the date which is one year and one day after the payment in full of the last
maturing Note and all other Indebtedness of the Company ranking equal with or
junior to the Notes in right of payment, it will not institute against, or join
with or assist any other Person in instituting against, the Company, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any applicable insolvency laws.

 

Notwithstanding any other provision hereof, the
sole remedy of any Noteholder, the Trustee or any other Person against the
Company in respect of any obligation, covenant, representation, warranty or
agreement of the Company under or related to this Indenture or the Notes shall
be against the assets of the Company. 
Neither the Trustee, nor any Noteholder nor

 

58

 

any other
Person shall have any claim against the Company to the extent that such assets
are insufficient to meet such obligations, covenant, representation, warranty
or agreement (the difference being referred to herein as a “shortfall”)
and all claims in respect of the shortfall shall be extinguished; provided,
however, that the provisions of this Section 11.17 apply solely to the
obligations of the Company and shall not extinguish such shortfall or otherwise
restrict such Person’s rights or remedies against the Guarantor for purposes of
the obligations of the Guarantor to any Person under the Guarantee.

 

The provisions of this Section 11.17 shall
survive the termination of this Indenture and the resignation or removal of the
Trustee .

 

Section 11.18.  Multiple Originals.  The parties may sign any number
of copies of this Indenture.  Each
signed copy shall be an original, but all of them together represent the same
agreement.  One signed copy is enough to
prove this Indenture.

 

Section 11.19.  Qualification of Indenture.  The Company shall qualify this
Indenture under the Trust Indenture Act in accordance with the terms and
conditions of the Exchange and Registration Rights Agreement and shall pay all
reasonable costs and expenses (including attorneys’ fees and expenses for the
Company, the Trustee and the Holders) incurred in connection therewith,
including, but not limited to, costs and expenses of qualification of this
Indenture and the Notes and printing this Indenture and the Notes.  The Trustee shall be entitled to receive
from the Company any such Officers’ Certificates, Opinions of Counsel or other documentation
as it may reasonably request in connection with any such qualification of this
Indenture under the Trust Indenture Act.

 

Section 11.20.  Table of Contents; Headings.  The table of contents,
cross-reference sheet and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not
intended to be considered a part hereof and shall not modify or restrict any of
the terms or provisions hereof.

 

59

 

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

 

	
   

  	
  BUNGE LIMITED FINANCE CORP., as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Morris Kalef

  	
   

  
	
   

  	
   

  	
  Name: Morris Kalef

  	
   

  
	
   

  	
   

  	
  Title: President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BUNGE LIMITED, as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William Wells

  	
   

  
	
   

  	
   

  	
  Name: William Wells

  	
   

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Morris Kalef

  	
   

  
	
   

  	
   

  	
  Name: Morris Kalef

  	
   

  
	
   

  	
   

  	
  Title: Treasurer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SUNTRUST BANK, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George Hogan

  	
   

  
	
   

  	
   

  	
  Name: George Hogan

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  	
   

  

 

60

 

Exhibit A

 

 

[FORM OF FACE
OF INITIAL NOTE AND SUBSEQUENT NOTE]

 

[Depository
Legend, if applicable]

 

[Applicable
Restricted Notes Legend]

 

No.
[        ]                                                                                                               Principal
Amount
U.S.$[                          ],
as revised by the Schedule of Increases and Decreases in Global Note attached
hereto

 

	
  CUSIP
  NO.                     

  	
   

  
	
  ISIN:                     

  	
   

  

 

5.875% Senior
Notes Due 2013

 

Bunge Limited Finance Corp., a Delaware
corporation, promises to pay to
[                   ],
or registered assigns, the principal sum of
[                             ]
U.S. Dollars, as revised by the Schedule of Increases and Decreases in Global
Note attached hereto, on November 15, 2013.

 

Interest Payment Dates: May 15 and November
15

Record Dates: May 1 and November 15

 

Additional provisions of this Note are set
forth on the reverse side hereof.

 

A-1

 

IN WITNESS
WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.

 

 

	
   

  	
  BUNGE LIMITED FINANCE CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  [SEAL]

  
	
   

  	
   

  
	
   

  	
   

  
	
  TRUSTEE’S
  CERTIFICATE OF

  	
   

  
	
    AUTHENTICATION

  	
   

  
	
   

  	
   

  
	
  SUNTRUST
  BANK,

  	
   

  
	
  as Trustee,
  certifies that this is one of

  	
   

  
	
  the Notes
  referred to in the Indenture.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Authorized Signatory

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:                                  ,
  2003

  	
   

  
						

 

A-2

 

[FORM OF
REVERSE SIDE OF 

INITIAL NOTE AND SUBSEQUENT NOTE]

 

5.875% Senior
Note Due 2013

 

1.                                       General

 

Bunge Limited Finance Corp., a Delaware
corporation (such corporation, and its successors and assigns under the
Indenture hereinafter referred to, being herein called the “Company”), issued
the Notes under an Indenture, dated as of May 19, 2003, among the Company, the
Guarantor and the Trustee (as such Indenture may be amended or supplemented
from time to time in accordance with the terms thereof, the “Indenture”).  The terms of the Notes include those stated
in the Indenture and those made part of the Indenture by reference to the U.S.
Trust Indenture Act of 1939 as in effect on the date of the Indenture (the
“Trust Indenture Act”).  Capitalized
terms used herein and not defined herein have the meanings ascribed thereto in
the Indenture.  The Notes are subject to
all such terms, and Noteholders are referred to the Indenture and the Trust
Indenture Act for a statement of those terms.

 

The Notes are general unsecured senior
obligations of the Company, including (a) U.S.$300,000,000 in aggregate
principal amount of Notes being offered on the Issue Date (subject to Section
2.09 of the Indenture) and (b) any Subsequent Notes.  The Notes rank equally with all other unsecured and
unsubordinated indebtedness of the Company. 
This Note is one of the [Initial] [Subsequent] Notes referred to in the
Indenture.

 

The Company may from time to time, without
the consent of existing Holders, create and issue Subsequent Notes having the
same terms and conditions as the Initial Notes in all respects, except for the
Issue Date, issue price and first payment of interest thereon.  Subsequent Notes issued in this manner will
be consolidated with and will form a single class with the previously
outstanding Notes.

 

The Initial Notes, any Subsequent Notes and
the Exchange Notes will be treated as a single class of securities under the
Indenture.  The Indenture includes
various covenants that limit the ability of the Company, among other things, to
engage in any business or transaction, acquire assets or subsidiaries, incur
Indebtedness or Liens or enter into any consolidations, mergers, amalgamations
or sales of assets.  In addition, the
Indenture imposes certain limitations on, among other things, (i) the
incurrence of Liens by the Guarantor or any Restricted Subsidiary, (ii)
Sale-Leaseback Transactions by the Guarantor or any Restricted Subsidiary and
(iii) consolidations, mergers, amalgamations and sales of assets of the
Guarantor or any Subsidiary.

 

To guarantee the due and punctual payment of
the principal of and premium, if any, and interest on the Notes and all other
amounts payable by the Company under the Indenture and the Notes when and as
the same shall be due and payable, whether at maturity, by acceleration or
otherwise, according to the terms of the Notes and the Indenture, the Guarantor
has unconditionally guaranteed such obligations pursuant to the terms of the
Indenture.  The Guarantee is an
unsecured and unsubordinated obligation of the Guarantor and ranks equally with
all other unsecured and unsubordinated indebtedness and obligations of the
Guarantor.

 

A-3

 

2.                                       Interest

 

The Company promises to pay interest on the
principal amount of this Note at the rate per annum shown above.

 

The Company will pay interest semi-annually
on May 15 and November 15 of each year commencing November 15, 2003.  Interest on the Notes will accrue from the
most recent date to which interest has been paid on the Notes or, if no
interest has been paid, from May 19, 2003. 
The Company shall pay interest on overdue principal or premium, if any,
plus interest on such interest to the extent lawful, at the rate borne by the
Notes to the extent lawful.  Interest
will be computed on the basis of a 360-day year of twelve 30-day months.

 

3.                                       Method of
Payment

 

By at least 10:00 a.m. (New York City time)
on the date on which any principal of and premium, if any, or interest on any
Note is due and payable, the Company shall irrevocably deposit with the Trustee
or the Paying Agent money sufficient to pay such principal, premium, if any,
and/or interest.  The Company will pay
interest (except Defaulted Interest) to the Persons who are registered Holders
of Notes at the close of business on the November 1 or May 1 next preceding the
interest payment date even if Notes are cancelled, repurchased or redeemed
after the record date and on or before the interest payment date.  Holders must surrender Notes to a Paying
Agent to collect principal payments. 
The Company will pay principal and interest in money of the United States
that at the time of payment is legal tender for payment of public and private
debts.  Except as described in the
succeeding two sentences, the principal of and premium, if any, and interest on
the Notes shall be payable at the office or agency of the Company maintained
for such purpose in The City of New York, or at such other office or agency of
the Company as may be maintained for such purpose pursuant to Section 2.03 of
the Indenture; provided, however,
that, at the option of the Company, each installment of interest may be paid by
check mailed to addresses of the Persons entitled thereto as such addresses
shall appear on the Note Register. 
Payments in respect of Notes represented by a Global Note (including principal,
premium and interest) will be made by wire transfer of immediately available
funds to the account specified by The Depository Trust Company.  Payments in respect of Notes represented by
Definitive Notes (including principal, premium, if any, and interest) held by a
Holder of at least U.S.$1,000,000 aggregate principal amount of Notes will be
made by wire transfer to a U.S. dollar account maintained by the payee with a
bank in the United States if such Holder elects payment by wire transfer by
giving written notice to the Trustee or the Paying Agent to such effect
designating such account no later than 15 days immediately preceding the
relevant due date for payment (or such other date as the Trustee may accept in
its discretion).

 

4.                                       Paying Agent
and Registrar

 

Initially, SunTrust Bank (the “Trustee”),
will act as Trustee, Paying Agent and Registrar.  The Company may appoint and change any Paying Agent, Registrar or
co-registrar without notice to any Noteholder. 
The Company, the Guarantor or any Subsidiary may act as Paying Agent,
Registrar or co-registrar.

 

A-4

 

5.                                       Optional
Redemption by the Company

 

The Notes will be redeemable at the option of
the Company, in whole at any time or in part from time to time, on at least 30
days but not more than 60 days’ prior notice mailed to the registered address
of each Holder of Notes to be so redeemed, at a redemption price equal to (a)
the greater of (i) 100% of their principal amount to be redeemed or (ii) the
sum of the present values of the remaining scheduled payments of principal and
interest thereon from the date of redemption to the date of maturity (except
for currently accrued but unpaid interest) discounted to the date of
redemption, on a semi-annual basis (assuming a 360-day year consisting of twelve
30-day months), at the applicable Treasury Yield (as defined below), plus 37.5
basis points (such greater amount, the “Redemption Price”), plus (b) accrued
and unpaid interest, if any, to the date of redemption.

 

For purposes of determining the Redemption
Price, the following definitions are applicable:

 

“Comparable Treasury Issue” means the United
States Treasury security selected by an Independent Investment Banker as having
a maturity comparable to the remaining term of the Notes 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 such Notes.

 

“Comparable Treasury Price” means, with
respect to any redemption date, (a) the bid price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) at 4:00 P.M. on the
third business day preceding such redemption date, as set forth on “Telerate
Page 500” (or such other page as may replace Telerate Page 500), or (b) if such
page (or any successor page) is not displayed or does not contain such bid
prices at such time (i) the average of the Reference Treasury Dealer Quotations
or (ii) if the Trustee is unable to obtain at least four such Reference
Treasury Dealers Quotations, the average of all Reference Treasury Dealer
Quotations obtained by the Trustee.

 

“Independent Investment Banker” means any of
Credit Suisse First Boston LLC or J.P. Morgan Securities Inc. or, if all such
firms are unwilling or unable to select the applicable Comparable Treasury
Issue, an independent investment banking institution of national standing
appointed by the Trustee and reasonably acceptable to the Company.

 

“Reference Treasury Dealer” means Credit
Suisse First Boston LLC, J.P. Morgan Securities Inc., and two other primary
U.S. Government securities dealer in New York City selected by the Independent
Investment Banker (each, a “Primary Treasury Dealer”); provided however, that
if any of the foregoing shall cease to be a Primary Treasury Dealer, the
Company shall substitute therefor another Primary Treasury Dealer.

 

“Reference Treasury Dealer Quotations” means,
with respect to each Reference Treasury Dealer and any redemption date for the
Notes, an average, as determined by the Trustee, of the bid and asked prices
for the Comparable Treasury Issue for the Notes (expressed in each case as a
percentage of its principal amount) quoted in writing to the Trustee by such

 

A-5

 

Reference
Treasury Dealer at 5:00 p.m. on the third business day preceding such
redemption date.

 

“Treasury Yield” means, with respect to any
redemption date applicable to the Notes, the rate per annum equal to the
semi-annual equivalent yield to maturity (computed as of the third business day
immediately preceding such redemption date) of the Comparable Treasury Issue,
assuming a price for the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the applicable Comparable Treasury Price for
such redemption date.

 

In the case of any partial redemption,
selection of the Notes for redemption will be made by the Trustee in compliance
with the requirements of the principal national securities exchange, if any, on
which the Notes are listed or, if the Notes are not listed, then on a pro rata
basis, by lot or by such other method as the Trustee in its sole discretion
shall deem to be fair and appropriate, although no Notes of U.S.$1,000 in
original principal amount or less will be redeemed in part.  If any Note is to be redeemed in part only,
the notice of redemption relating to such Note shall state the portion of the
principal amount thereof to be redeemed. 
A new Note in principal amount equal to the unredeemed portion thereof
will be issued in the name of the Holder thereof upon cancellation of the
original Note.  On and after the
redemption date, interest will cease to accrue on Notes or portions thereof
called for redemption as long as the Company has deposited with the Paying
Agent funds in satisfaction of the applicable Redemption Price pursuant to the
Indenture.

 

6.                                       Additional
Amounts

 

The Guarantor will, subject to certain
limitations set forth in the Indenture, pay to the Holder of any Note
additional amounts as necessary so that every net payment made by the Guarantor
of principal of and premium, if any, and interest on such Note, after deducting
or withholding for or on account of any present or future tax, duty, fee,
assessment or other governmental charge imposed on that holder by Bermuda or
any other foreign jurisdiction, will not be less than the amount provided in
the Note to be then due and payable.

 

7.                                       Denominations;
Transfer; Exchange

 

The Notes are in registered form without
coupons in denominations of principal amount of U.S.$1,000 and whole multiples
of U.S.$1,000.  A Holder may transfer or
exchange Notes in accordance with the Indenture.  The Registrar may require a Holder, among other things, to
furnish appropriate endorsements or transfer documents and to pay any taxes and
fees required by law or permitted by the Indenture.  The Registrar need not register the transfer of or exchange (i)
any Notes selected for redemption (except, in the case of a Note to be redeemed
in part, the portion of the Note not to be redeemed) for a period beginning 15
days before the mailing of a notice of Notes to be redeemed and ending on the
date of such mailing or (ii) any Notes for a period beginning 15 days before an
interest payment date and ending on such interest payment date.

 

8.                                       Persons
Deemed Owners

 

The registered Holder of this Note may be
treated as the owner of it for all purposes.

 

A-6

 

9.                                       Unclaimed
Money

 

If money for the payment of principal or
interest remains unclaimed for two years, the Trustee or Paying Agent shall pay
the money back to the Company at its request unless an abandoned property law
designates another Person.  After any
such payment, Holders entitled to the money must look only to the Company and
not to the Trustee for payment.

 

10.                                 Defeasance

 

Subject to certain conditions set forth in
the Indenture, the Company at any time may terminate some or all of its
obligations under the Notes and the Indenture if the Company deposits with the
Trustee money or U.S. Government Securities for the payment of principal and
interest on the Notes to redemption or maturity, as the case may be.

 

11.                                 Amendment, Waiver

 

The Indenture or the Notes may be amended
with the written consent of the Holders of at least a majority in principal
amount of the then outstanding Notes; provided,
however, that the consent of each
Noteholder affected is required to (i) reduce the amount of Notes whose Holders
must consent to an amendment of the Indenture, the Notes or specified provisions
of the Master Trust Transaction Documents, (ii) reduce the stated rate or
extend the stated time for payment of interest on a Note, (iii) reduce the
principal of or extend the Stated Maturity of a Note, (iv) reduce the premium
payable upon redemption of a Note, (v) make any Note payable in money other
than that stated herein, (vi) impair the right of a Holder to receive payment
under the Note or institute suit for the enforcement of such payment, (vii)
make any change to the amendment provisions which require each Holder’s consent
or the waiver provisions, or (viii) release the Guarantor or modify the
Guarantee.

 

Subject to certain exceptions set forth in
the Indenture, without the consent of any Noteholder, the Company and the
Trustee may amend the Indenture or the Notes to cure any ambiguity, omission,
defect or inconsistency, or to comply with Article 4 of the Indenture, or to
provide for uncertificated Notes in addition to or in place of certificated
Notes, or to add guarantees with respect to the Notes, or to secure the Notes,
or to add additional covenants of the Company, the Guarantor or any Subsidiary,
or surrender rights and powers conferred on the Company, the Guarantor or any
Subsidiary, issue Subsequent Notes, or to comply with any requirement of the
SEC in connection with qualifying the Indenture under the Trust Indenture Act,
or to make any change that does not adversely affect the rights of any
Noteholder, or to provide for the issuance of Exchange Notes.

 

Subject to certain exceptions set forth in
the Indenture, any default (other than with respect to nonpayment or in respect
of a provision that cannot be amended without the written consent of each
Noteholder affected) or noncompliance with any provision may be waived with the
written consent of the Holders of a majority in principal amount of the then
outstanding Notes.

 

A-7

 

12.                                 Defaults and
Remedies

 

Under the Indenture, Events of Default
include (1) default for 30 days in payment of interest or additional
interest when due on the Notes; (2) default in payment of principal of or
premium, if any, on the Notes at Stated Maturity, upon optional redemption,
upon declaration or otherwise; (3)  the failure by the Company or the
Guarantor to comply for 60 days after written notice with its other
agreements contained in the Indenture or under the Notes (other than those
referred to in (1) or (2) above); (4) the failure of the Company, the
Guarantor or any Subsidiary (a) to pay the principal of any indebtedness for
borrowed money, including obligations evidenced by any mortgage, indenture,
bond, debenture, note, guarantee or other similar instruments, on the scheduled
or original date due; (b) to pay interest on any such indebtedness beyond any
provided grace period; or (c) to observe or perform any agreement or condition
relating to such indebtedness, the effect of which is to cause such
indebtedness to become due prior to its stated maturity and such acceleration
has not been cured within 15 days after notice of acceleration; provided that an event described in clause
(a), (b) or (c) above shall not constitute an Event of Default unless, at such
time, one or more events of the type described in clauses (a), (b) or (c) shall
have occurred or be continuing with respect to indebtedness in an amount
exceeding U.S.$50,000,000; or (5) certain events of bankruptcy, insolvency
or reorganization of the Company, the Guarantor, a Designated Obligor or any
Material Subsidiary (the “bankruptcy events”).  However, a default under clause (3) will not
constitute an Event of Default until the Trustee or the Holders of at least 25%
in principal amount of the outstanding Notes notify the Company or the
Guarantor, as the case may be, of the default and the Company or the Guarantor,
as the case may be, does not cure such default within the time specified in
clause (3) hereof after receipt of such notice.

 

If an Event of Default other than a
bankruptcy event occurs and is continuing, the Trustee or the Holders of at
least 25% in principal amount of the Notes may declare all the Notes by written
notice to the Company to be due and payable immediately.  If an Event of Default in connection with a
bankruptcy event occurs and is continuing, the principal amount of the Notes,
the premium, if any, and all accrued and unpaid interest shall be immediately
due and payable without any action or other act on the part of the Trustee or
the Holders.

 

Noteholders may not enforce the Indenture or
the Notes except as provided in the Indenture. 
The Trustee may refuse to enforce the Indenture or the Notes unless it
receives reasonable indemnity or security. 
Subject to certain limitations, Holders of a majority in principal
amount of the Notes may direct the Trustee in its exercise of any trust or power.  The Trustee may withhold from Noteholders
notice of any continuing Default or Event of Default (except a Default or Event
of Default in payment of principal or interest) if it determines that
withholding notice is in their interest.

 

13.                                 Trustee Dealings
with the Company

 

Subject to certain limitations set forth in
the Indenture, the Trustee under the Indenture, in its individual or any other
capacity, may become the owner or pledgee of Notes and may otherwise deal with
and collect obligations owed to it by the Company or its Affiliates and may
otherwise deal with the Company or its Affiliates with the same rights it would
have if it were not Trustee.

 

A-8

 

14.                                 No Recourse Against
Others

 

An incorporator, director, officer, employee,
affiliate or stockholder, of each of the Company, or the Guarantor, solely by
reason of this status, shall not have any liability for any obligations of the
Company under the Notes, the Indenture or the Guarantee or for any claim based
on, in respect of or by reason of such obligations or their creation.  By accepting a Note, each Noteholder waives
and releases all such liability.  The
waiver and release are part of the consideration for the issue of the Notes.

 

15.                                 No Petition

 

By its acquisition of this Note, each Holder
hereof agrees that neither it nor the Trustee on its behalf may commence, or
join with any other person in the commencement of, a bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding with respect
to the Company under any applicable insolvency laws until one year and one date
after the Notes and all other Indebtedness of the Company ranking equal with or
junior to the Notes in right of payment, including all interest and premium
thereon, if any, are paid in full.

 

16.                                 Authentication

 

This Note shall not be valid until an
authorized signatory of the Trustee (or an authenticating agent acting on its
behalf) manually signs the certificate of authentication appearing on this
Note.

 

17.                                 Abbreviations

 

Customary abbreviations may be used in the
name of a Noteholder or an assignee, such as TEN COM (=tenants in common), TEN
ENT (=tenants by the entirety), JT TEN (=joint tenants with rights of
survivorship and not as tenants in common), CUST (=custodian) and U/G/M/A
(=Uniform Gift to Minors Act).

 

18.                                 CUSIP Numbers

 

Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures the Company has
caused CUSIP numbers to be printed on the Notes and has directed the Trustee to
use CUSIP numbers in notices of redemption as a convenience to
Noteholders.  No representation is made
as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

 

19.                                 Governing Law

 

This Note shall be governed by, and construed
in accordance with, the laws of the State of New York.

 

A-9

 

The Company will furnish to any Noteholder
upon written request and without charge to the Noteholder a copy of the
Indenture.  Requests may be made to:

 

Bunge Limited Finance Corp.

11720 Borman Drive

St. Louis, Missouri 63146

Attention:  Francis X. Marchiony,
Treasurer

 

A-10

 

ASSIGNMENT
FORM

 

To assign this Note, fill in the form below:

 

I or we assign and transfer this Note to

 

	
   

  
	
  (Print or
  type assignee’s name, address and zip code)

  
	
   

  
	
   

  
	
  (Insert
  assignee’s soc. sec. or tax I.D. No.)

  

 

and irrevocably
appoint
                   
agent to transfer this Note on the books of the Company.  The agent may substitute another to act for
him.

 

 

 

	
  Date:

  	
   

  	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  
	
  (Signature
  must be guaranteed)

  
	
   

  
	
   

  
	
  Sign exactly
  as your name appears on the other side of this Note.

  
						

 

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

 

In connection
with any transfer or exchange of any of the Notes evidenced by this certificate
occurring prior to the date that is two years after the later of the date of
original issuance of such Notes and the last date, if any, on which such Notes
were owned by the Company or any Affiliate of the Company, the undersigned
confirms that such Notes are being:

 

CHECK ONE BOX
BELOW:

 

	
   

  	
   

  
	
  o            1

  	
  acquired for
  the undersigned’s own account, without transfer; or

  
	
   

  	
   

  
	
  o            2

  	
  transferred
  to the Company; or

  
	
   

  	
   

  
	
  o            3

  	
  transferred
  pursuant to and in compliance with Rule 144A under the Securities Act of
  1933, as amended (the “Securities Act”); or

  
	
   

  	
   

  
	
  o            4

  	
  transferred
  pursuant to an effective registration statement under the Securities Act; or

  
	
   

  	
   

  
	
  o            5

  	
  transferred
  pursuant to and in compliance with Regulation S under the Securities Act; or

  

 

A-11

 

	
  o            6

  	
  transferred
  to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2),
  (3) or (7) under the Securities Act), that has furnished to the Trustee a
  signed letter containing certain representations and agreements (the form of
  which letter appears as Section 2.07 of the Indenture); or

  
	
   

  	
   

  
	
  o            7

  	
  transferred
  pursuant to another available exemption from the registration requirements of
  the Securities Act of 1933.

  

 

Unless one of
the boxes is checked, the Trustee will refuse to register any of the Notes
evidenced by this certificate in the name of any person other than the registered
Holder thereof; provided, however,
that if box (5), (6) or (7) is checked, the Trustee or the Company may require,
prior to registering any such transfer of the Notes, in their sole discretion,
such legal opinions, certifications and other information as the Trustee or the
Company may reasonably request to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act of 1933, such as the exemption
provided by Rule 144 under such Act.

 

	
   

  	
   

  	
   

  
	
   

  	
  Signature

  
	
  Signature Guarantee:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Signature must be guaranteed)

  	
  Signature

  
				

 

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

 

TO BE
COMPLETED BY PURCHASER IF (1) OR (3) ABOVE IS CHECKED.

 

The undersigned represents and warrants that
it is purchasing this Note for its own account or an account with respect to
which it exercises sole investment discretion and that it and any such account
is a “qualified institutional buyer” within the meaning of Rule 144A under the
Securities Act of 1933, as amended, and is aware that the sale to it is being
made in reliance on Rule 144A and acknowledges that it has received such
information regarding the Company as the undersigned has requested pursuant to
Rule 144A or has determined not to request such information and that it is aware
that the transferor is relying upon the undersigned’s foregoing representations
in order to claim the exemption from registration provided by Rule 144A.

 

	
   

  	
   

  
	
  Dated:

  

 

A-12

 

[TO BE
ATTACHED TO GLOBAL NOTES]

 

SCHEDULE OF
INCREASES OR DECREASES IN GLOBAL NOTE

 

The following increases or decreases in this Global Note have been
made:

 

	
  Date of Exchange

  	
   

  	
  Amount of
  decrease in Principal Amount of this Global Note

  	
   

  	
  Amount of
  increase in Principal Amount of this Global Note

  	
   

  	
  Principal
  Amount of this Global Note following such decrease or increase

  	
   

  	
  Signature
  of authorized signatory of Trustee or Securities Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-13

 

EXHIBIT B

 

 

[FORM OF FACE
OF EXCHANGE NOTE]

 

[Depository
Legend, if applicable]

 

	
  No.
  [            ]

  	
  Principal
  Amount
  U.S.$[                                         ],

  
	
   

  	
  as revised
  by the Schedule of

  Increases and Decreases in Global

  Note attached hereto

  
	
   

  	
   

  
	
   

  	
   

  
	
  CUSIP NO.

  	
   

  
	
  ISIN:

  	
   

  
					

 

5.875% Senior
Notes Due 2013

 

Bunge Limited Finance Corp., a Delaware
corporation, promises to pay to
[                       ],
or registered assigns, the principal sum of
[                            ]
U.S. Dollars, as revised by the Schedule of Increases and Decreases in Global
Note attached hereto, on November 1, 2013.

 

Interest Payment Dates: May 15 and November
15

 

Record Dates: May 1 and November 1

 

Additional provisions of this Note are set
forth on the reverse side hereof.

 

B-1

 

IN WITNESS WHEREOF, the Company has caused
this instrument to be duly executed under its corporate seal.

 

 

	
   

  	
  BUNGE LIMITED FINANCE CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  [SEAL]

  
	
   

  	
   

  
	
  TRUSTEE’S
  CERTIFICATE OF
  AUTHENTICATION

  	
   

  
	
   

  	
   

  
	
  SUNTRUST
  BANK,

  	
   

  
	
  as Trustee,
  certifies that this is one of

  the Notes referred to in the Indenture.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:
                                         ,
  2003

  	
   

  
						

 

B-2

 

[FORM OF
REVERSE SIDE OF EXCHANGE NOTE]

 

5.875% Senior
Note Due 2013

 

1.                                       General

 

Bunge Limited Finance Corp., a Delaware
corporation (such corporation, and its successors and assigns under the Indenture
hereinafter referred to, being herein called the “Company”), issued the
Notes under an Indenture, dated as of May 19, 2003, among the Company, the
Guarantor and the Trustee (as such Indenture may be amended or supplemented
from time to time in accordance with the terms thereof, the “Indenture”).  The terms of the Notes include those stated
in the Indenture and those made part of the Indenture by reference to the U.S.
Trust Indenture Act of 1939 as in effect on the date of the Indenture (the
“Trust Indenture Act”).  Capitalized
terms used herein and not defined herein have the meanings ascribed thereto in
the Indenture.  The Notes are subject to
all such terms, and Noteholders are referred to the Indenture and the Trust
Indenture Act for a statement of those terms.

 

The Notes are general unsecured senior
obligations of the Company, including (a) U.S.$300,000,000 in aggregate
principal amount of Notes being offered on the Issue Date (subject to Section
2.09 of the Indenture) and (b) any Subsequent Notes.  The Notes rank equally with all other unsecured and
unsubordinated indebtedness of the Company. 
This Note is one of the Exchange Notes referred to in the Indenture.

 

The Company may from time to time, without
the consent of existing Holders, create and issue Subsequent Notes having the
same terms and conditions as the Initial Notes in all respects, except for the
Issue Date, issue price and first payment of interest thereon.  Subsequent Notes issued in this manner will
be consolidated with and will form a single class with the previously
outstanding Notes.

 

The Initial Notes, any Subsequent Notes and
the Exchange Notes will be treated as a single class of securities under the
Indenture.  The Indenture includes
various covenants that limit the ability of the Company, among other things, to
engage in any business or transaction, acquire assets or subsidiaries, incur
Indebtedness or Liens or enter into any consolidations, mergers, amalgamations
or sales of assets.  In addition, the
Indenture imposes certain limitations on, among other things, (i) the
incurrence of Liens by the Guarantor or any Restricted Subsidiary, (ii)
Sale-Leaseback Transactions by the Guarantor or any Restricted Subsidiary and
(iii) consolidations, mergers, amalgamations and sales of assets of the
Guarantor or any Subsidiary.

 

To guarantee the due and punctual payment of
the principal of and premium, if any, and interest on the Notes and all other
amounts payable by the Company under the Indenture and the Notes when and as
the same shall be due and payable, whether at maturity, by acceleration or
otherwise, according to the terms of the Notes and the Indenture, the Guarantor
has unconditionally guaranteed such obligations pursuant to the terms of the
Indenture.  The Guarantee is an unsecured
and unsubordinated obligation of the Guarantor and ranks equally with all other
unsecured and unsubordinated indebtedness and obligations of the Guarantor.

 

B-3

 

2.                                       Interest

 

The Company promises to pay interest on the
principal amount of this Note at the rate per annum shown above.

 

The Company will pay interest semi-annually
on May 15 and November 15 of each year commencing November 15, 2003.  Interest on the Notes will accrue from the
most recent date to which interest has been paid on the Notes or, if no
interest has been paid, from May 19, 2003. 
The Company shall pay interest on overdue principal or premium, if any,
plus interest on such interest to the extent lawful, at the rate borne by the
Notes to the extent lawful.  Interest
will be computed on the basis of a 360-day year of twelve 30-day months.

 

3.                                       Method of
Payment

 

By at least 10:00 a.m. (New York City time)
on the date on which any principal of and premium, if any, or interest on any
Note is due and payable, the Company shall irrevocably deposit with the Trustee
or the Paying Agent money sufficient to pay such principal, premium, if any,
and/or interest.  The Company will pay
interest (except Defaulted Interest) to the Persons who are registered Holders
of Notes at the close of business on the November 1 or May 1 next preceding the
interest payment date even if Notes are cancelled, repurchased or redeemed
after the record date and on or before the interest payment date.  Holders must surrender Notes to a Paying
Agent to collect principal payments. 
The Company will pay principal, premium, if any, and interest in money
of the United States that at the time of payment is legal tender for payment of
public and private debts.  Except as
described in the succeeding two sentences, the principal of and premium, if
any, and interest on the Notes shall be payable at the office or agency of the
Company maintained for such purpose in The City of New York, or at such other
office or agency of the Company as may be maintained for such purpose pursuant
to Section 2.03 of the Indenture; provided,
however, that, at the option of the Company, each installment of
interest may be paid by check mailed to addresses of the Persons entitled
thereto as such addresses shall appear on the Note Register.  Payments in respect of Notes represented by
a Global Note (including principal, premium and interest) will be made by wire
transfer of immediately available funds to the account specified by The
Depository Trust Company.  Payments in
respect of Notes represented by Definitive Notes (including principal, premium,
if any, and interest) held by a Holder of at least U.S.$1,000,000 aggregate
principal amount of Notes will be made by wire transfer to a U.S. dollar
account maintained by the payee with a bank in the United States if such Holder
elects payment by wire transfer by giving written notice to the Trustee or the
Paying Agent to such effect designating such account no later than 15 days
immediately preceding the relevant due date for payment (or such other date as
the Trustee may accept in its discretion).

 

4.                                       Paying Agent
and Registrar

 

Initially, SunTrust Bank (the “Trustee”),
will act as Trustee, Paying Agent and Registrar.  The Company may appoint and change any Paying Agent, Registrar or
co-registrar without notice to any Noteholder. 
The Company, the Guarantor or any Subsidiary may act as Paying Agent,
Registrar or co-registrar.

 

B-4

 

5.                                       Optional
Redemption by the Company

 

The Notes will be redeemable at the option of
the Company, in whole at any time or in part from time to time, on at least 30
days but not more than 60 days’ prior notice mailed to the registered address
of each Holder of Notes to be so redeemed, at a redemption price equal to (a)
the greater of (i) 100% of their principal amount to be redeemed or (ii) the
sum of the present values of the remaining scheduled payments of principal and
interest thereon from the date of redemption to the date of maturity (except
for currently accrued but unpaid interest) discounted to the date of
redemption, on a semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months), at the applicable Treasury Yield (as defined below),
plus 37.5 basis points (such greater amount, the “Redemption Price”), plus (b)
accrued and unpaid interest, if any, to the date of redemption.

 

For purposes of determining the Redemption
Price, the following definitions are applicable:

 

“Comparable Treasury Issue” means the United
States Treasury security selected by an Independent Investment Banker as having
a maturity comparable to the remaining term of the Notes 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 such Notes.

 

“Comparable Treasury Price” means, with
respect to any redemption date, (a) the bid price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) at 4:00 P.M. on the
third business day preceding such redemption date, as set forth on “Telerate
Page 500” (or such other page as may replace Telerate Page 500), or (b) if such
page (or any successor page) is not displayed or does not contain such bid
prices at such time (i) the average of the Reference Treasury Dealer Quotations
or (ii) if the Trustee is unable to obtain at least four such Reference
Treasury Dealers Quotations, the average of all Reference Treasury Dealer
Quotations obtained by the Trustee.

 

“Independent Investment Banker” means any of
Credit Suisse First Boston LLC or J.P. Morgan Securities Inc., or, if all such
firms are unwilling or unable to select the applicable Comparable Treasury
Issue, an independent investment banking institution of national standing
appointed by the Trustee and reasonably acceptable to the Company.

 

“Reference Treasury Dealer” means Credit
Suisse First Boston LLC, J.P. Morgan Securities Inc., and two other primary
U.S. Government securities dealer in New York City selected by the Independent
Investment Banker (each, a “Primary Treasury Dealer”); provided however,
that if any of the foregoing shall cease to be a Primary Treasury Dealer, the
Company shall substitute therefor another Primary Treasury Dealer.

 

“Reference Treasury Dealer Quotations” means,
with respect to each Reference Treasury Dealer and any redemption date for the
Notes, an average, as determined by the Trustee, of the bid and asked prices
for the Comparable Treasury Issue for the Notes (expressed in each case as a
percentage of its principal amount) quoted in writing to the Trustee by such

 

B-5

 

Reference Treasury Dealer at
5:00 p.m. on the third business day preceding such redemption date.

 

“Treasury Yield” means, with respect to any
redemption date applicable to the Notes, the rate per annum equal to the
semi-annual equivalent yield to maturity (computed as of the third business day
immediately preceding such redemption date) of the Comparable Treasury Issue,
assuming a price for the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the applicable Comparable Treasury Price for
such redemption date.

 

In the case of any partial redemption,
selection of the Notes for redemption will be made by the Trustee in compliance
with the requirements of the principal national securities exchange, if any, on
which the Notes are listed or, if the Notes are not listed, then on a pro rata
basis, by lot or by such other method as the Trustee in its sole discretion
shall deem to be fair and appropriate, although no Notes of U.S. $1,000 in
original principal amount or less will be redeemed in part.  If any Note is to be redeemed in part only,
the notice of redemption relating to such Note shall state the portion of the
principal amount thereof to be redeemed. 
A new Note in principal amount equal to the unredeemed portion thereof
will be issued in the name of the Holder thereof upon cancellation of the
original Note.  On and after the
redemption date, interest will cease to accrue on Notes or portions thereof
called for redemption as long as the Company has deposited with the Paying
Agent funds in satisfaction of the applicable Redemption Price pursuant to the
Indenture.

 

6.                                       Additional
Amounts

 

The Guarantor will, subject to certain
limitations set forth in the Indenture, pay to the Holder of any Note
additional amounts as necessary so that every net payment made by the Guarantor
of principal of and premium, if any, and interest on such Note, after deducting
or withholding for or on account of any present or future tax, duty, fee,
assessment or other governmental charge imposed on that holder by Bermuda or
any other foreign jurisdiction, will not be less than the amount provided in the
Note to be then due and payable.

 

7.                                       Denominations;
Transfer; Exchange

 

The Notes are in registered form without
coupons in denominations of principal amount of U.S. $1,000 and whole multiples
of U.S. $1,000.  A Holder may transfer
or exchange Notes in accordance with the Indenture.  The Registrar may require a Holder, among other things, to
furnish appropriate endorsements or transfer documents and to pay any taxes and
fees required by law or permitted by the Indenture.  The Registrar need not register the transfer of or exchange (i)
any Notes selected for redemption (except, in the case of a Note to be redeemed
in part, the portion of the Note not to be redeemed) for a period beginning 15
days before the mailing of a notice of Notes to be redeemed and ending on the
date of such mailing or (ii) any Notes for a period beginning 15 days before an
interest payment date and ending on such interest payment date.

 

8.                                       Persons
Deemed Owners

 

The registered Holder of this Note may be
treated as the owner of it for all purposes.

 

B-6

 

9.                                       Unclaimed
Money

 

If money for the payment of principal or
interest remains unclaimed for two years, the Trustee or Paying Agent shall pay
the money back to the Company at its request unless an abandoned property law
designates another Person.  After any
such payment, Holders entitled to the money must look only to the Company and
not to the Trustee for payment.

 

10.                                 Defeasance

 

Subject to certain conditions set forth in
the Indenture, the Company at any time may terminate some or all of its
obligations under the Notes and the Indenture if the Company deposits with the
Trustee money or U.S. Government Securities for the payment of principal and
interest on the Notes to redemption or maturity, as the case may be.

 

11.                                 Amendment, Waiver

 

The Indenture or the Notes may be amended
with the written consent of the Holders of at least a majority in principal
amount of the then outstanding Notes; provided,
however, that the consent of each
Noteholder affected is required to (i) reduce the amount of Notes whose Holders
must consent to an amendment of the Indenture, the Notes or specified
provisions of the Master Trust Transaction Documents, (ii) reduce the stated
rate or extend the stated time for payment of interest on a Note, (iii) reduce
the principal of or extend the Stated Maturity of a Note, (iv) reduce the
premium payable upon redemption of a Note, (v) make any Note payable in money
other than that stated herein, (vi) impair the right of a Holder to receive
payment under the Note or institute suit for the enforcement of such payment,
(vii) make any change to the amendment provisions which require each Holder’s
consent or the waiver provisions, or (viii) release the Guarantor or modify the
Guarantee.

 

Subject to certain exceptions set forth in
the Indenture, without the consent of any Noteholder, the Company and the
Trustee may amend the Indenture or the Notes to cure any ambiguity, omission,
defect or inconsistency, or to comply with Article 4 of the Indenture, or to
provide for uncertificated Notes in addition to or in place of certificated
Notes, or to add guarantees with respect to the Notes, or to secure the Notes,
or to add additional covenants of the Company, the Guarantor or any Subsidiary,
or surrender rights and powers conferred on the Company, the Guarantor or any
Subsidiary, issue Subsequent Notes, or to comply with any requirement of the
SEC in connection with qualifying the Indenture under the Trust Indenture Act,
or to make any change that does not adversely affect the rights of any
Noteholder, or to provide for the issuance of Exchange Notes.

 

Subject to certain exceptions set forth in
the Indenture, any default (other than with respect to nonpayment or in respect
of a provision that cannot be amended without the written consent of each
Noteholder affected) or noncompliance with any provision may be waived with the
written consent of the Holders of a majority in principal amount of the then
outstanding Notes.

 

B-7

 

12.                                 Defaults and
Remedies

 

Under the Indenture, Events of Default
include (1) default for 30 days in payment of interest or additional
interest when due on the Notes; (2) default in payment of principal of or
premium, if any, on the Notes at Stated Maturity, upon optional redemption,
upon declaration or otherwise; (3)  the failure by the Company or the
Guarantor to comply for 60 days after written notice with its other
agreements contained in the Indenture or under the Notes (other than those
referred to in (1) or (2) above); (4) the failure of the Company, the
Guarantor or any Subsidiary (a) to pay the principal of any indebtedness for
borrowed money, including obligations evidenced by any mortgage, indenture,
bond, debenture, note, guarantee or other similar instruments, on the scheduled
or original date due; (b) to pay interest on any such indebtedness beyond any
provided grace period; or (c) to observe or perform any agreement or condition
relating to such indebtedness, the effect of which is to cause such
indebtedness to become due prior to its stated maturity and such acceleration
has not been cured within 15 days after notice of acceleration; provided that
an event described in clause (a), (b) or (c) above shall not constitute an
Event of Default unless, at such time, one or more events of the type described
in clauses (a), (b) or (c) shall have occurred or be continuing with respect to
indebtedness in an amount exceeding U.S.$50,000,000; or (5) certain events
of bankruptcy, insolvency or reorganization of the Company, the Guarantor, a
Designated Obligor or any Material Subsidiary (the “bankruptcy events”).  However, a default under clause (3) will not
constitute an Event of Default until the Trustee or the Holders of at least 25%
in principal amount of the outstanding Notes notify the Company or the
Guarantor, as the case may be, of the default and the Company or the Guarantor,
as the case may be, does not cure such default within the time specified in
clause (3) hereof after receipt of such notice.

 

If an Event of Default other than a
bankruptcy event occurs and is continuing, the Trustee or the Holders of at
least 25% in principal amount of the Notes may declare all the Notes by written
notice to the Company to be due and payable immediately.  If an Event of Default in connection with a
bankruptcy event occurs and is continuing, the principal amount of the Notes,
the premium, if any, and all accrued and unpaid interest shall be immediately
due and payable without any action or other act on the part of the Trustee or
the Holders.

 

Noteholders may not enforce the Indenture or
the Notes except as provided in the Indenture. 
The Trustee may refuse to enforce the Indenture or the Notes unless it
receives reasonable indemnity or security. 
Subject to certain limitations, Holders of a majority in principal
amount of the Notes may direct the Trustee in its exercise of any trust or
power.  The Trustee may withhold from
Noteholders notice of any continuing Default or Event of Default (except a
Default or Event of Default in payment of principal or interest) if it
determines that withholding notice is in their interest.

 

13.                                 Trustee Dealings
with the Company

 

Subject to certain limitations set forth in
the Indenture, the Trustee under the Indenture, in its individual or any other
capacity, may become the owner or pledgee of Notes and may otherwise deal with
and collect obligations owed to it by the Company or its Affiliates and may
otherwise deal with the Company or its Affiliates with the same rights it would
have if it were not Trustee.

 

B-8

 

14.                                 No Recourse Against
Others

 

An incorporator, director, officer, employee,
affiliate or stockholder of each of the Company or the Guarantor, solely by
reason of this status, shall not have any liability for any obligations of the
Company under the Notes, the Indenture or the Guarantee or for any claim based
on, in respect of or by reason of such obligations or their creation.  By accepting a Note, each Noteholder waives
and releases all such liability.  The
waiver and release are part of the consideration for the issue of the Notes.

 

15.                                 No Petition

 

By its acquisition of this Note, each Holder
hereof agrees that neither it nor the Trustee on its behalf may commence, or
join with any other person in the commencement of, a bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding with respect
to the Company under any applicable insolvency laws until one year and one date
after the Notes and all other Indebtedness of the Company ranking equal with or
junior to the Notes in right of payment, including all interest and premium
thereon, if any, are paid in full.

 

16.                                 Authentication

 

This Note shall not be valid until an
authorized signatory of the Trustee (or an authenticating agent acting on its
behalf) manually signs the certificate of authentication appearing on this
Note.

 

17.                                 Abbreviations

 

Customary abbreviations may be used in the
name of a Noteholder or an assignee, such as TEN COM (=tenants in common), TEN
ENT (=tenants by the entirety), JT TEN (=joint tenants with rights of
survivorship and not as tenants in common), CUST (=custodian) and U/G/M/A
(=Uniform Gift to Minors Act).

 

18.                                 CUSIP Numbers

 

Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures the Company has
caused CUSIP numbers to be printed on the Notes and has directed the Trustee to
use CUSIP numbers in notices of redemption as a convenience to Noteholders.  No representation is made as to the accuracy
of such numbers either as printed on the Notes or as contained in any notice of
redemption and reliance may be placed only on the other identification numbers
placed thereon.

 

19.                                 Governing Law

 

This Note shall be governed by, and construed
in accordance with, the laws of the State of New York.

 

B-9

 

The Company will furnish to any Noteholder
upon written request and without charge to the Noteholder a copy of the
Indenture.  Requests may be made to:

 

Bunge Limited Finance Corp.

11720 Borman Drive

St. Louis, Missouri 63146

Attention:  Francis X. Marchiony,
Treasurer

 

B-10

 

ASSIGNMENT
FORM

 

To assign this
Note, fill in the form below:

 

I or we assign
and transfer this Note to

 

 

	
   

  
	
  (Print or
  type assignee’s name, address and zip code)

  
	
   

  
	
   

  
	
  (Insert
  assignee’s soc. sec. or tax I.D. No.)

  

 

and
irrevocably appoint
                             
agent to transfer this Note on the books of the Company.  The agent may substitute another to act for
him.

 

 

 

	
  Date:

  	
   

  	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  
	
  (Signature
  must be guaranteed)

  
	
   

  
	
   

  
	
  Sign exactly
  as your name appears on the other side of this Note.

  
						

 

 

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

 

B-11

 

[TO BE
ATTACHED TO GLOBAL NOTES]

 

SCHEDULE OF
INCREASES OR DECREASES IN GLOBAL NOTE

 

The following increases or decreases in this Global Note have been
made:

 

	
  Date of Exchange

  	
   

  	
  Amount of
  decrease in Principal Amount of this Global Note

  	
   

  	
  Amount of
  increase in Principal Amount of this Global Note

  	
   

  	
  Principal
  Amount of this Global Note following such decrease or increase

  	
   

  	
  Signature
  of authorized signatory of Trustee or Securities Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

B-12

 

EXHIBIT C

 

	
   

  	
  [Date]

  

 

Bunge Limited

50 Main Street

White Plains, New York 10606

Attention:  Morris M. Kalef/Carey Dubois

 

SunTrust Bank

25 Park Place

24th Floor

Atlanta, Georgia 30303-2900

Attention:  Corporate Trust Dept.

 

Re:                               Bunge
Limited Finance Corp.

5.875% Senior Notes Due 2013 (the “Notes”)

 

Dear Sirs:

 

This certificate is delivered to request a
transfer of
U.S.$                   principal
amount of the 5.875% Senior Notes Due 2013 (the “Notes”) of Bunge Limited
Finance Corp. (the “Company”).

 

	
   

  	
  Upon
  transfer, the Notes would be registered in the name of the new beneficial
  owner as follows:

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer ID
  Number:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  The
  undersigned represents and warrants to you that:

  
						

 

1.                                       We are an
institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) under the Securities Act of 1933, as amended (the “Securities Act”))
purchasing for our own account or for the account of such an institutional
“accredited investor” at least U.S. $250,000 principal amount of the Notes, and
we are acquiring the Notes not with a view to, or for offer or sale in
connection with, any distribution in violation of the Securities Act.  We have such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risk of our investment in the Notes and we invest in or purchase securities
similar to the Notes in the normal course of our business.  We and any accounts for which we are acting
are each able to bear the economic risk of our or its investment.

 

2.                                       We understand
that the Notes have not been registered under the Securities Act and, unless so
registered, may not be sold except as permitted in the following

 

C-1

 

sentence.  We agree on our own behalf and on behalf of
any investor account for which we are purchasing Notes to offer, sell or
otherwise transfer such Notes prior to the date which is two years after the later
of the date of original issue and the last date on which the Company or any
affiliate of the Company was the owner of such Notes (or any predecessor
thereto) (the “Resale Restriction Termination Date”) only (a) to the
Company or Bunge Limited, as guarantor, (b) pursuant to a registration
statement which has been declared effective under the Securities Act, (c) in a
transaction complying with the requirements of Rule 144A under the Securities
Act (“Rule 144A”), to a person we reasonably believe is a qualified
institutional buyer under Rule 144A (a “QIB”) that purchases Notes for
its own account or for the account of a QIB and to whom notice is given that
the transfer is being made in reliance on Rule 144A, (d) pursuant to offers and
sales that occur outside the United States within the meaning of Regulation S
under the Securities Act, (e) to an institutional “accredited investor” within
the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act that is
purchasing for its own account or for the account of such an institutional
“accredited investor,” in each case in a transaction involving a minimum
principal amount of Notes of U.S. $250,000 or (f) pursuant to any other
available exemption from the registration requirements of the Securities Act,
subject in each of the foregoing cases to any requirement of law that the
disposition of our property or the property of such investor account or
accounts be at all times within our or their control and in compliance with any
applicable state securities laws.  The
foregoing restrictions on resale will not apply subsequent to the Resale
Restriction Termination Date.  If any
resale or other transfer of the Notes is proposed to be made pursuant to clause
(e) above prior to the Resale Restriction Termination Date, the transferor
shall deliver a letter from the transferee substantially in the form of this
letter to the Company and the Trustee, which shall provide, among other things,
that the transferee is an institutional “accredited investor” (within the meaning
of Rule 501(a)(1), (2), (3) or (7) under the Securities Act) that is acquiring
such Notes for investment purposes and not for distribution in violation of the
Securities Act.  Each purchaser
acknowledges that the Company and the Trustee reserve the right prior to any
offer, sale or other transfer prior to the Resale Termination Date of the Notes
pursuant to clauses (d), (e) or (f) above to require the delivery of an opinion
of counsel, certifications and/or other information satisfactory to the Company
and the Trustee.

 

	
   

  	
  TRANSFEREE:

  	
   

  
	
   

  	
   

  
	
   

  	
  BY:

  	
   

  
				

 

C-2

 

EXHIBIT D

 

	
   

  	
  [Date]

  

 

Bunge Limited

50 Main Street

White Plains, New York 10606

Attention:  Morris M. Kalef/Carey Dubois

 

SunTrust Bank

25 Park Place

24th Floor

Atlanta, Georgia 30303-2900

Attention:  Corporate Trust Dept.

 

Re:                               Bunge
Limited Finance Corp.

5.875% Senior Notes Due 2013 (the “Notes”)

 

Ladies and
Gentlemen:

 

In connection with our proposed sale of
U.S.$                 
aggregate principal amount of the Notes, we confirm that such sale has been
effected pursuant to and in accordance with Regulation S under the United
States Securities Act of 1933, as amended (the “Securities Act”), and,
accordingly, we represent that:

 

the offer of the Notes was not made
to a person in the United States;

 

either (i) at the time the
buy order was originated, the transferee was outside the United States or we
and any person acting on our behalf reasonably believed that the transferee was
outside the United States or (ii) the transaction was executed in, on or
through the facilities of a designated off-shore securities market and neither
we nor any person acting on our behalf knows that the transaction has been
pre-arranged with a buyer in the United States;

 

no directed selling efforts
have been made in the United States in contravention of the requirements of
Rule 903(a)(2) or Rule 904(a)(2) of Regulation S, as applicable;
and

 

the transaction is not part of
a plan or scheme to evade the registration requirements of the Securities Act.

 

In addition, if the sale is made during a
distribution compliance period and the provisions of Rule 903(b)(2) or
Rule 904(b)(1) of Regulation S are applicable thereto, we confirm
that such sale has been made in accordance with the applicable provisions of
Rule 903(b)(2) or Rule 904(b)(1), as the case may be.

 

You are entitled to rely upon this letter and
are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or

 

D-1

 

official
inquiry with respect to the matters covered hereby.  Terms used in this certificate have the meanings set forth in
Regulation S.

 

Very truly yours,

 

[Name of Transferor]

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Authorized Signature

  	
   

  

 

D-2

 

SCHEDULE 1.1

 

Designated
Obligors and Material Subsidiaries

 

The following Subsidiaries
constitute all of the Designated Obligors as of the date hereof:

 

•                  Bunge Global Markets Inc.

 

•                  Bunge N.A. Holdings, Inc.

 

•                  Bunge North America, Inc.

 

•                  Koninklijke Bunge B.V.

 

•                  Bunge Alimentos S.A.

 

•                  Bunge Argentina S.A.

 

•                  Bunge Fertilizantes International Limited

 

•                  Bunge Fertilizantes S.A. (Brazil)

 

•                  Ceval International Limited

 

•                  Bunge Brasil S.A.

 

•                  Bunge S.A.

 

•                  Central Soya Company, Inc.

 

The following Subsidiaries constitute all of the Material Subsidiaries
as of the date hereof:

 

•                  Bunge Argentina, S.A.

 

•                  Bunge Fertilizantes S.A.

 

•                  Bunge Alimentos S.A.

 

•                  Bunge North America, Inc.

 

•                  Fosfertil S.A.

 

•                  Bunge Brasil S.A.

 

•                  Cereol S.A.

 

•                  Bunge Global Markets, Inc.

 

D-3

 

SCHEDULE 3.4

 

Existing Liens

 

	
  Subsidiary/Joint

  Ventures

  	
   

  	
  Facility

  	
   

  	
  Amount

  Outstanding

  	
   

  	
  Description of Collateral

  	
   

  
	
  Bunge
  Argentina

  S.A.

  	
   

  	
  IFC Loan

  	
   

  	
  $13.6
  million

  	
   

  	
  land and
  buildings

  	
   

  
	
  Terminal 6
  and

  Terminal 6I (joint

  ventures)

  	
   

  	
  IFC Loan

  (Bunge’s share)

  	
   

  	
  $22.0
  million

  	
   

  	
  shares of
  stock of Terminal 6

  and Terminal 6I

  	
   

  
	
  Bunge
  Alimentos

  S.A.

  	
   

  	
  BEMAT 

  Various other 

  lenders

  	
   

  	
  $9.6 million

  $15.2 million

  	
   

  	
  buildings

  equipment

  	
   

  
	
  Bunge

  Fertilizantes S.A.

  	
   

  	
  BNDES
  (various)

  	
   

  	
  $43.4
  million

  	
   

  	
  buildings
  and shares of stock 

  of Fosfertil S.A.

  	
   

  
	
  Fosfertil
  S.A.

  	
   

  	
  BNDES
  (various)

   

  IFC

  Banco Do
  Brasil

  	
   

  	
  $139.1
  million

   

  $49.1
  million

  $5.7 million

  	
   

  	
  land,
  equipment and shares of

  Ultrafertil 

  land and equipment 

  land and buildings

  	
   

  
	
  Cereol and
  Bunge

  Global Markets

  	
   

  	
  Various
  secured

  working capital

  bank facilities

  	
   

  	
  $57.3
  million

  	
   

  	
  cash

  	
   

  

 

D-4

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