Document:

<PAGE>

                                                                     EXHIBIT 4.8

                       AMERICAN REAL ESTATE PARTNERS, L.P.
                       AMERICAN REAL ESTATE FINANCE CORP.

                                     Issuers

                                       And

                            WILMINGTON TRUST COMPANY

                                     Trustee

                                   ----------

                                    INDENTURE

                          Dated as of _________, ______

                          Subordinated Debt Securities

<PAGE>

                             CROSS-REFERENCE TABLE*

<TABLE>
<CAPTION>
TRUST INDENTURE                                                    INDENTURE
ACT SECTION                                                         SECTION
---------------                                                -----------------
<S>                                                            <C>
310(a)(1)...................................................   7.10
    (a)(2)..................................................   7.10
    (a)(3)..................................................   N.A.
    (a)(4)..................................................   N.A.
    (a)(5)..................................................   7.10
    (b).....................................................   7.03; 7.10
    (c).....................................................   N.A.
311(a)......................................................   7.11
    (b).....................................................   7.11
    (c).....................................................   N.A.
312(a)......................................................   2.06
    (b).....................................................   11.03
    (c).....................................................   11.03
313(a)......................................................   7.06
    (b)(1)..................................................   N.A
    (b)(2)..................................................   7.06; 7.07
    (c).....................................................   7.06; 12.02
    (d).....................................................   7.06
314(a)......................................................   4.02; 4.03; 12.02
    (b).....................................................   N.A.
    (c)(1)..................................................   12.04
    (c)(2)..................................................   12.04
    (c)(3)..................................................   N.A.
    (d).....................................................   N.A.
    (e).....................................................   12.06
    (f).....................................................   N.A.
315(a)......................................................   7.01
    (b).....................................................   7.05; 12.03
    (c).....................................................   7.01
    (d).....................................................   7.01
    (e).....................................................   6.11
316(a)(last sentence).......................................   2.10
    (a)(1)(A)...............................................   6.05
    (a)(1)(B)...............................................   6.04
    (a)(2)..................................................   N.A.
    (b).....................................................   6.07
    (c).....................................................   2.13
317(a)(1)...................................................   6.08
</TABLE>

                                        i

<PAGE>

<TABLE>
<S>                                                            <C>
    (a)(2)..................................................   6.09
    (b).....................................................   2.05
318(a)......................................................   12.01
    (b).....................................................   N.A.
    (c).....................................................   12.01
</TABLE>

N.A. means not applicable.

*    This Cross-Reference Table is not part of the Indenture.

                                       ii

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                        Page No.
                                                                        --------
<S>                                                                     <C>
ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE.................       1
   SECTION 1.01.  Definitions........................................       1
   SECTION 1.02.  Other Definitions..................................       5
   SECTION 1.03.  Incorporation by Reference of Trust Indenture Act..       5
   SECTION 1.04.  Rules of Construction..............................       6

ARTICLE 2 THE SECURITIES.............................................       6
   SECTION 2.01.  Issuable in Series.................................       6
   SECTION 2.02.  Establishment of Terms of Series of Securities.....       7
   SECTION 2.03.  Execution and Authentication.......................       9
   SECTION 2.04.  Registrar and Paying Agent.........................      10
   SECTION 2.05.  Paying Agent to Hold Money in Trust................      11
   SECTION 2.06.  Holders Lists......................................      11
   SECTION 2.07.  Transfer and Exchange..............................      11
   SECTION 2.08.  Mutilated, Destroyed, Lost and Stolen Securities...      12
   SECTION 2.09.  Outstanding Securities.............................      13
   SECTION 2.10.  Treasury Securities................................      13
   SECTION 2.11.  Temporary Securities...............................      13
   SECTION 2.12.  Cancellation.......................................      13
   SECTION 2.13.  Defaulted Interest.................................      14
   SECTION 2.14.  Global Securities..................................      14
   SECTION 2.15.  CUSIP Numbers......................................      17

ARTICLE 3 REDEMPTION AND PREPAYMENT..................................      17
   SECTION 3.01.  Notices to Trustee.................................      17
   SECTION 3.02.  Selection of Securities to be Redeemed.............      17
   SECTION 3.03.  Notice of Redemption...............................      18
   SECTION 3.04.  Effect of Notice of Redemption.....................      19
   SECTION 3.05.  Deposit of Redemption Price........................      19
   SECTION 3.06.  Securities Redeemed in Part........................      19

ARTICLE 4 COVENANTS..................................................      19
   SECTION 4.01.  Payment of Securities..............................      19
   SECTION 4.02.  Reports............................................      20
   SECTION 4.03.  Compliance Certificate.............................      20
   SECTION 4.04.  Corporate Existence................................      20
   SECTION 4.05.  Calculation of Original Issue Discount.............      21

ARTICLE 5 SUCCESSORS.................................................      21
   SECTION 5.01.  Merger, Consolidation or Sale of Assets............      21

ARTICLE 6 DEFAULTS AND REMEDIES......................................      22
   SECTION 6.01.  Events of Default..................................      22
   SECTION 6.02.  Acceleration.......................................      23
   SECTION 6.03.  Other Remedies.....................................      24
   SECTION 6.04.  Waiver of Past Defaults............................      24
   SECTION 6.05.  Control By Majority................................      24
</TABLE>

                                       iii

<PAGE>

                            TABLE OF CONTENTS CONT'D

<TABLE>
<CAPTION>
                                                                        Page No.
                                                                        --------
<S>                                                                     <C>
   SECTION 6.06.  Limitation on Suits................................      25
   SECTION 6.07.  Rights of Holders to Receive Payment...............      25
   SECTION 6.08.  Collection Suit by Trustee.........................      25
   SECTION 6.09.  Trustee May File Proofs of Claim...................      26
   SECTION 6.10.  Priorities.........................................      26
   SECTION 6.11.  Undertaking For Costs..............................      26

ARTICLE 7 TRUSTEE....................................................      27
   SECTION 7.01.  Duties of Trustee..................................      27
   SECTION 7.02.  Rights of Trustee..................................      28
   SECTION 7.03.  Individual Rights of Trustee.......................      29
   SECTION 7.04.  Trustee's Disclaimer...............................      29
   SECTION 7.05.  Notice of Defaults.................................      29
   SECTION 7.06.  Reports By Trustee to Holders......................      29
   SECTION 7.07.  Compensation and Indemnity.........................      30
   SECTION 7.08.  Replacement of Trustee.............................      30
   SECTION 7.09.  Successor Trustee by Merger, Etc...................      31
   SECTION 7.10.  Eligibility; Disqualification......................      32
   SECTION 7.11.  Preferential Collection of Claims Against the
                  Company............................................      32

ARTICLE 8 DISCHARGE; LEGAL DEFEASANCE AND COVENANT DEFEASANCE........      32
   SECTION 8.01.  Discharge; Option to Effect Legal Defeasance or
                  Covenant  Defeasance...............................      32
   SECTION 8.02.  Legal Defeasance and Discharge.....................      33
   SECTION 8.03.  Covenant Defeasance................................      33
   SECTION 8.04.  Conditions to Legal or Covenant Defeasance.........      34
   SECTION 8.05.  Deposited Money and Government Securities to be
                  Held in Trust; Other Miscellaneous Provisions......      35
   SECTION 8.06.  Repayment to the Company...........................      35
   SECTION 8.07.  Reinstatement......................................      36

ARTICLE 9 AMENDMENT, SUPPLEMENT AND WAIVER...........................      36
   SECTION 9.01.  Without Consent of Holders.........................      36
   SECTION 9.02.  With Consent of Holders of Securities..............      38
   SECTION 9.03.  Compliance with Trust Indenture Act................      39
   SECTION 9.04.  Revocation and Effect of Consents and Waivers......      39
   SECTION 9.05.  Notation on or Exchange of Securities..............      40
   SECTION 9.06.  Trustee to Sign Amendments, Etc....................      40

ARTICLE 10 SUBORDINATION.............................................      40
   SECTION 10.01. Securities Subordinated to Senior Indebtedness.....      40
   SECTION 10.02. Effectuation of Subordination by Trustee...........      43
   SECTION 10.03. Knowledge of Trustee...............................      43
   SECTION 10.04. Trustee's Relation to Senior Indebtedness..........      44
</TABLE>

                                       iv

<PAGE>

                            TABLE OF CONTENTS CONT'D

<TABLE>
<CAPTION>
                                                                        Page No.
                                                                        --------
<S>                                                                     <C>
   SECTION 10.05. Rights of Holders of Senior Indebtedness Not
                  Impaired...........................................      44

ARTICLE 11 NOTE GUARANTEES...........................................      44
   SECTION 11.01. Guarantee..........................................      44
   SECTION 11.02. Limitation on Guarantor Liability..................      45
   SECTION 11.03. Execution and Delivery of Guarantee................      46

ARTICLE 12 MISCELLANEOUS.............................................      46
   SECTION 12.01. Trust Indenture Act Controls.......................      46
   SECTION 12.02. Notices............................................      46
   SECTION 12.03. Communication by Holders of Securities with Other
                  Holders of Securities..............................      47
   SECTION 12.04. Certificate and Opinion as to Conditions
                  Precedent..........................................      47
   SECTION 12.05. Statements Required in Certificate or Opinion......      47
   SECTION 12.06. Rules by Trustee, Paying Agent and Registrar.......      48
   SECTION 12.07. No Personal Liability of Directors, Officers,
                  Employees and Stockholders.........................      48
   SECTION 12.08. GOVERNING LAW......................................      48
   SECTION 12.09. No Adverse Interpretation of Other Agreements......      48
   SECTION 12.10. Successors.........................................      48
   SECTION 12.11. Severability.......................................      48
   SECTION 12.12. Counterpart Originals..............................      48
   SECTION 12.13. Table of Contents, Headings, Etc...................      49
</TABLE>

                                        v
<PAGE>

     INDENTURE dated as of [__________], [_____] between American Real Estate
Partners, L.P. a Delaware limited partnership ("AREP"), American Real Estate
Finance Corp., a Delaware corporation ("AREP Finance" and together with AREP,
the "Company"), and Wilmington Trust Company, as trustee (the "Trustee").

     The Company and the Trustee agree as follows for the benefit of each other
and for the equal and ratable benefit of the Holders of the Securities issued
under this Indenture (the "Securities"):

                                    ARTICLE 1

                   DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.01. Definitions.

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

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

     "AREP" means American Real Estate Partners, L.P. (and not any of its
subsidiaries).

     "AREP Finance" means American Real Estate Finance Corp.

     "Bankruptcy Law" means Title 11 of the United States Code, as amended, or
any similar federal, state or foreign law for the relief of debtors.

     "Board of Directors" means, with respect to any Person, the board of
directors or comparable governing body of such Person.

     "Board Resolution" means a copy of a resolution certified by the Secretary
or an Assistant Secretary of the Company to have been adopted by the Board of
Directors or pursuant to authorization by the Board of Directors and to be in
full force and effect on the date of the certificate and delivered to the
Trustee.

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

     "Capital Stock" of any Person means any and all shares, interests, rights
to purchase, warrants, options, participations or other equivalents of or
interests in (however designated) equity of such Person, including any preferred
stock, but excluding any debt securities convertible into such equity.

<PAGE>

     "Clearstream" means Clearstream Banking, Societe Anonyme, Luxembourg.

     "Commission" or "SEC" means the Securities and Exchange Commission.

     "Company" means, collectively AREP and AREP Finance, and any and all
successors thereto.

     "Company Order" means a written order signed in the name of the Company by
two Officers, one of whom must be the Company's principal executive officer,
principal financial officer or principal accounting officer.

     "Control" means the possession, directly or indirectly, of the power to
direct or cause the direction of management and policies of a Person, whether
through the ownership of Voting Stock, by agreement or otherwise.

     "Corporate Trust Office of the Trustee" shall be at the address of the
Trustee specified in Section 10.02 or such other address as to which the Trustee
may give notice to the Company.

     "Custodian" means the Trustee, as custodian with respect to the Securities
in global form, or any successor entity thereto.

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

     "Definitive Security" means a certificated Security registered in the name
of the Holder thereof and issued in accordance with Section 2.07.

     "Depositary" means, with respect to the Securities issuable or issued in
whole or in part in global form, the Person specified in Section 2.14 as the
Depositary with respect to the Securities, and any and all successors thereto
appointed as depositary hereunder and having become such pursuant to the
applicable provision of this Indenture.

     "Dollar" means a dollar or other equivalent unit in such coin or currency
of the United States as at the time shall be legal tender for the payment of
public and private debt.

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

     "Foreign Currency" means any currency or currency unit issued by a
government other than the government of The United States of America.

     "GAAP" means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board, the Commission or in such other
statements by such other entity as may be approved by a significant segment of
the accounting profession of the United States, which are in effect from time to
time; provided, however, that all reports and other financial information
provided by the

                                        2

<PAGE>

Company to the Holders of the Securities, the Trustee and/or the Commission
shall be prepared in accordance with GAAP, as in effect on the date of such
report or other financial information.

     "Global Security" when used with respect to any Series of Securities issued
hereunder, means a Security which is executed by the Company and authenticated
and delivered by the Trustee to the Depositary or pursuant to the Depositary's
instruction, all in accordance with this Indenture and an indenture supplemental
hereto, if any, or Board Resolution and pursuant to a Company Order, which shall
be registered in the name of the Depositary or its nominee and which shall
represent, and shall be denominated in an amount equal to the aggregate
principal amount of, all the outstanding Securities of such Series or any
portion thereof, in either case having the same terms, including, without
limitation, the same original issue date, date or dates on which principal and
interest are due, and interest rate or method of determining interest and which
shall bear the legend as prescribed by Section 2.14(c).

     "Global Security Legend" means the legend set forth in Section 2.14.(c),
which is required to be placed on all Global Securities issued under this
Indenture.

     "Government Securities" means direct obligations of, or obligations
guaranteed by, the United States of America for the payment of which guarantee
or obligations the full faith and credit of the United States is pledged.

     "Holder" means a Person in whose name a Security is registered on the
Registrar's books.

     "Indebtedness" has the meaning specified in the applicable Board
Resolution, supplemental indenture or Officers' Certificate relating to a
particular Series of Securities.

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

     "Interest Payment Date" when used with respect to any Series of Securities,
means the date specified in such Securities for the payment of any installment
of interest on those Securities.

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

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

     "Offering" means the offering of the Securities by the Company.

                                        3

<PAGE>

     "Officer" means, with respect to any Person, the Chairman of the Board, the
Chief Executive Officer, the President, the Chief Operating Officer, the Chief
Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the
Secretary or any Vice-President of such Person.

     "Officers' Certificate" means a certificate signed on behalf of the Company
by two Officers of the Company, one of whom must be the principal executive
officer, the principal financial officer or the principal accounting officer of
the Company, delivered to the Trustee that meets the requirements of Section
11.05.

     "Opinion of Counsel" means a written opinion from legal counsel that meets
the requirements of Section 11.05. The counsel may be an employee of or counsel
to the Company, any Subsidiary of the Company or the Trustee.

     "Original Issue Discount Security" means any Security that provides for an
amount less than the stated principal amount thereof to be due and payable upon
declaration of acceleration of the maturity thereof pursuant to Section 6.02.

     "Participant" means, with respect to the Depositary, Euroclear or
Clearstream, a Person who has an account with the Depositary, Euroclear or
Clearstream, respectively (and, with respect to the Depositary Trust Company,
shall include Euroclear and Clearstream).

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

     "Responsible Officer," when used with respect to the Trustee, means any
officer within the Corporate Trust Administration of the Trustee (or any
successor group of the Trustee) or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of his knowledge of
and familiarity with the particular subject.

     "Securities" has the meaning assigned to it in the preamble to this
Indenture.

     "Securities Act" means the Securities Act of 1933, as amended.

     "Senior Indebtedness" means all of the Indebtedness of, or indebtedness
guaranteed by, the Company for borrowed money (including the principal of,
premium, if any, and interest on any such borrowed money and any commitment fees
for unborrowed amounts which, if borrowed, would constitute Senior
Indebtedness), whether currently outstanding or hereafter incurred, unless,
under the instrument evidencing the same or under which the same is outstanding,
it is expressly provided that such indebtedness is subordinate to other
indebtedness and obligations of the Company.

     "Series" or "Series of Securities" means each series of debentures, notes
or other debt instruments of the Company created pursuant to Sections 2.01 and
2.02.

                                        4

<PAGE>

     "Significant Subsidiary" means any Subsidiary which would be a "significant
subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated
pursuant to the Securities Act of 1933, as amended.

     "Stated Maturity" when used with respect to any Security, means the date
specified in such Security as the fixed date on which an amount equal to the
principal amount of such Security is due and payable.

     "Subsidiary" of any Person means any corporation, association, partnership
or other business entity of which more than 50% of the total voting power of
shares of Capital Stock or other interests (including partnership interests)
entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by (i) such Person, (ii) such Person and one
or more Subsidiaries of such Person or (iii) one or more Subsidiaries of such
Person.

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

     "Trustee" means the party named as such above until a successor replaces it
in accordance with the applicable provisions of this Indenture and thereafter
means the successor serving hereunder.

     "Wholly Owned Subsidiary" of a Person means a subsidiary of such person all
of the outstanding Capital Stock or other ownership interests of which (other
than directors' qualifying shares) shall at the time be owned by such Person or
by one or more Wholly Owned Subsidiaries of such Person or by such Person and
one or more Wholly Owned Subsidiaries of such Person.

     SECTION 1.02. Other Definitions.

<TABLE>
<CAPTION>
                                                                      Defined in
Term                                                                    Section
----                                                                  ----------
<S>                                                                   <C>
"Covenant Defeasance"..............................................      8.03
"Event of Default".................................................      6.01
"Legal Defeasance".................................................      8.02
"notice of acceleration"...........................................      6.02
"Paying Agent".....................................................      2.04
"Registrar"........................................................      2.04
"Service Agent"....................................................      2.04
"Transfer".........................................................      5.01
</TABLE>

     SECTION 1.03. Incorporation by Reference of Trust Indenture Act.

     Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture.

     The following TIA terms used in this Indenture have the following meanings:

                                        5

<PAGE>

     "Indenture Securities" means the Securities;

     "Indenture Security Holder" means a Holder of a Security;

     "Indenture to be Qualified" means this Indenture;

     "Indenture Trustee" or "Institutional Trustee" means the Trustee; and

     "Obligor" on the Securities means the Company and any successor obligor
upon the Securities.

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

     SECTION 1.04. Rules of Construction.

     Unless the context otherwise requires:

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

     (b) an accounting term not otherwise defined has the meaning assigned to it
in accordance with GAAP;

     (c) "or" is not exclusive;

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

     (e) provisions apply to successive events and transactions; and

     (f) references to sections of or rules under the Securities Act shall be
deemed to include substitute, replacement of successor sections or rules adopted
by the Commission from time to time.

                                    ARTICLE 2

                                 THE SECURITIES

     SECTION 2.01. Issuable in Series. The aggregate principal amount of
Securities that may be authenticated and delivered under this Indenture is
unlimited. The Securities may be issued in one or more Series. All Securities of
a Series shall be identical except as may be set forth in a Board Resolution, a
supplemental indenture or an Officers' Certificate detailing the adoption of the
terms thereof pursuant to the authority granted under a Board Resolution. In the
case of Securities of a Series to be issued from time to time, the Board
Resolution, Officers' Certificate or supplemental indenture may provide for the
method by which specified terms (such as interest rate, maturity date, record
date or date from which interest shall accrue) are to be determined. Securities
may differ between Series in respect of any matters.

                                        6

<PAGE>

     SECTION 2.02. Establishment of Terms of Series of Securities. At or prior
to the issuance of any Securities within a Series, the following shall be
established (as to the Series generally, in the case of Subsection 2.02(a) and
either as to such Securities within the Series or as to the Series generally in
the case of Subsections 2.02(b) through 2.02(y)) by a Board Resolution, a
supplemental indenture or an Officers' Certificate pursuant to authority granted
under a Board Resolution:

     (a) the title of the Securities of the Series (which shall distinguish the
Securities of that particular Series from the Securities of any other Series);

     (b) any limit upon the aggregate principal amount of the Securities of the
Series that may be authenticated and delivered under this Indenture (except for
Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of the Series);

     (c) the date or dates on which the principal and premium, if any, of the
Securities of the Series are payable;

     (d) the rate or rates (which may be fixed or variable) at which the
Securities of the Series shall bear interest, if any, or the method of
determining such rate or rates, the date or dates from which such interest, if
any, shall accrue, the Interest Payment Dates on which such interest, if any,
shall be payable or the method by which the Interest Payment Dates will be
determined, the record dates for the determination of Holders thereof to whom
interest is payable (in the case of Securities in registered form), and the
basis upon which such interest will be calculated if other than that of a
360-day year of twelve 30-day months;

     (e) the currency or currencies, including composite currencies, in which
Securities of the Series shall be denominated, if other than Dollars, the place
or places, if any, in addition to or instead of the Corporate Trust Office of
the Trustee (in the case of Securities in registered form) or the principal New
York office of the Trustee (in the case of Securities in bearer form), where the
principal, premium, if any, and interest with respect to Securities of such
Series shall be payable or the method of such payment, if by wire transfer, mail
or other means;

     (f) the price or prices at which, the period or periods within which, and
the terms and conditions upon which, Securities of the Series may be redeemed,
in whole or in part, at the option of the Company or otherwise;

     (g) whether Securities of the Series are to be issued in registered form or
bearer form or both and, if Securities are to be issued in bearer form, whether
coupons will be attached to them, whether Securities of the Series in bearer
form may be exchanged for Securities of the Series in registered form, and the
circumstances under which and the places at which any such exchanges, if
permitted, may be made;

     (h) if any Securities of the Series are to be issued in bearer form or as
one or more Global Securities representing individual Securities of the Series
in bearer form, whether certain provisions for the payment of additional
interest or tax redemptions shall apply; whether interest

                                        7

<PAGE>

with respect to any portion of a temporary Security of the Series in bearer form
payable with respect to any Interest Payment Date prior to the exchange of such
temporary Security in bearer form for definitive Securities of the Series in
bearer form shall be paid to any clearing organization with respect to the
portion of such temporary Security in bearer form held for its account and, in
such event, the terms and conditions (including any certification requirements)
upon which any such interest payment received by a clearing organization will be
credited to the Person entitled to interest payable on such Interest Payment
Date; and the terms upon which a temporary Security in bearer form may be
exchanged for one or more definitive Securities of the Series in bearer form;

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

     (j) the terms, if any, upon which the Securities of the Series may be
convertible into or exchanged for any of the Company's common stock, preferred
stock, other securities or warrants to purchase the Company's common stock,
preferred stock or other securities and the terms and conditions upon which such
conversion or exchange shall be effected, including the initial conversion or
exchange price or rate, the conversion or exchange period and any other
additional provisions;

     (k) if other than denominations of one thousand U.S. dollars ($1,000) or
any integral multiple thereof, the denominations in which the Securities of the
Series shall be issuable;

     (l) if the amount of principal, premium, if any, or interest with respect
to the Securities of the Series may be determined with reference to an index or
pursuant to a formula, the manner in which such amounts will be determined;

     (m) if the principal amount payable at the Stated Maturity of Securities of
the Series will not be determinable as of any one or more dates prior to such
Stated Maturity, the amount that will be deemed to be such principal amount as
of any such date for any purpose, including the principal amount thereof which
will be due and payable upon any Maturity other than the Stated Maturity and
which will be deemed to be outstanding as of any such date (or, in any such
case, the manner in which such deemed principal amount is to be determined),
and, if necessary, the manner of determining the equivalent thereof in Dollars;

     (n) the applicability of, if any, and any changes or additions to Article
8;

     (o) if other than the principal amount thereof, the portion of the
principal amount of the Securities of the Series that shall be payable upon
declaration of acceleration of the maturity thereof pursuant to Section 6.02;

     (p) the terms, if any, of the transfer, mortgage, pledge or assignment as
security for the Securities of the Series of any properties, assets, moneys,
proceeds, securities or other

                                        8

<PAGE>

collateral, including whether certain provisions of the TIA are applicable and
any corresponding changes to provisions of this Indenture as then in effect;

     (q) any addition to or change in the Events of Default which applies to any
Securities of the Series and any change in the right of the Trustee or the
requisite Holders of such Series of Securities to declare the principal,
premium, if any, and interest on such Series of Securities due and payable
pursuant to Section 6.02;

     (r) if the Securities of the Series shall be issued in whole or in part in
the form of a Global Security, the terms and conditions, if any, upon which such
Global Security may be exchanged in whole or in part for other individual
Definitive Securities of such Series, the Depositary for such Global Security
and the form of any legend or legends to be borne by any such Global Security in
addition to or in lieu of the Global Securities Legend;

     (s) any Trustee, authenticating agent, Paying Agent, transfer agent,
Service Agent or Registrar;

     (t) the applicability of, and any addition to or change in, the covenants
(and the related definitions) set forth in Articles 4 or 5 which applies to the
Securities of the Series;

     (u) any additional or different subordination terms, if any, applicable to
the Securities of the Series;

     (v) with regard to Securities of the Series that do not bear interest, the
dates for certain required reports to the Trustee;

     (w) any United Stated Federal income tax consequences applicable to the
Securities;

     (x) the terms applicable to Original Issue Discount Securities, including
the rate or rates at which original issue discount will accrue; and

     (y) any other terms of Securities of the Series (which terms shall not be
inconsistent with the provisions of this Indenture, except as permitted by
Section 9.01, but which may modify or delete any provision of this Indenture
insofar as it applies to such Series).

     All Securities of any one Series need not be issued at the same time and
may be issued from time to time, consistent with the terms of this Indenture, if
so provided by or pursuant to the Board Resolution, supplemental indenture or
Officers' Certificate referred to above, and the authorized principal amount of
any Series may not be increased to provide for issuances of additional
Securities of such Series, unless otherwise provided in such Board Resolution,
supplemental indenture or Officers' Certificate.

     SECTION 2.03. Execution and Authentication. One Officer shall sign the
Securities for the Company by manual or facsimile signature. If an Officer whose
signature is on a Security no longer holds that office at the time the Security
is authenticated, the Security shall nevertheless be valid. A Security shall not
be valid until authenticated by the manual signature

                                        9

<PAGE>

of the Trustee or an authenticating agent. The signature shall be conclusive
evidence that the Security has been authenticated under this Indenture.

     The Trustee shall at any time, and from time to time, authenticate
Securities for original issue in the principal amount provided in the Board
Resolution, supplemental indenture or Officers' Certificate, upon receipt by the
Trustee of a Company Order. Such Company Order may authorize authentication and
delivery pursuant to oral or electronic instructions from the Company or its
duly authorized agent or agents, which oral instructions shall be promptly
confirmed in writing. Each Security shall be dated the date of its
authentication unless otherwise provided by a Board Resolution, supplemental
indenture or Officers' Certificate.

     The aggregate principal amount of Securities of any Series outstanding at
any time may not exceed any limit upon the maximum principal amount for such
Series set forth in the Board Resolution, supplemental indenture or Officers'
Certificate delivered pursuant to Section 2.02, except as provided in Section
2.08.

     Prior to the issuance of Securities of any Series, the Trustee shall have
received and (subject to Section 7.02) shall be fully protected in relying on:
(a) the Board Resolution, supplemental indenture or Officers' Certificate
establishing the form of the Securities of that Series or of Securities within
that Series and the terms of the Securities of that Series or Securities within
that Series; (b) an Officers' Certificate complying with Section 11.05; and (c)
an Opinion of Counsel complying with Section 11.05.

     The Trustee shall have the right to decline to authenticate and deliver any
Securities of such Series: (a) if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken; or (b) if the Trustee in
good faith by its board of directors or trustees, executive committee or a trust
committee of directors and/or vice-presidents shall determine that such action
would expose the Trustee to personal liability to Holders of any then
outstanding Series of Securities.

     The Trustee may appoint an authenticating agent acceptable to the Company
to authenticate Securities. An authenticating agent may authenticate Securities
whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as an Agent to deal with the Company or
an Affiliate.

     SECTION 2.04. Registrar and Paying Agent. The Company shall maintain, with
respect to each Series of Securities, at the place or places specified with
respect to such Series pursuant to Section 2.02, an office or agency where
Securities of such Series may be presented or surrendered for payment ("Paying
Agent"), where Securities of such Series may be presented for registration of
transfer or for exchange ("Registrar") and where notices and demands to or upon
the Company in respect of the Securities of such Series and this Indenture may
be served ("Service Agent"). The Registrar shall keep a register with respect to
each Series of Securities and to their transfer and exchange. The Company will
give prompt written notice to the Trustee of the name and address, and any
change in the name and address, of each Registrar, Paying Agent or Service
Agent. If at any time the Company shall fail to maintain any such required

                                       10

<PAGE>

Registrar, Paying Agent or Service Agent or shall fail to furnish the Trustee
with the name and 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 co-registrars,
additional paying agents or additional services agents and may from time to time
rescind such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligations to
maintain a Registrar, Paying Agent and Service Agent in each place so specified
pursuant to Section 2.02 for Securities of any Series for such purposes. The
Company will give prompt written notice to the Trustee of any such designation
or rescission and of any change in the name or address of any such co-registrar,
additional paying agent or additional service agent. The term "Registrar"
includes any co-registrar, the term "Paying Agent" includes any additional
paying agent; and the term "Service Agent" includes any additional service
agent.

     The Company hereby appoints the Trustee as the initial Registrar, Paying
Agent and Service Agent for each Series unless another Registrar, Paying Agent
or Service Agent, as the case may be, is appointed prior to the time the
Securities of that Series are first issued.

     SECTION 2.05. Paying Agent to Hold Money in Trust. The Company shall
require each Paying Agent, other than the Trustee, to agree in writing that the
Paying Agent will hold in trust, for the benefit of Holders of any Series of
Securities, or the Trustee, all money held by the Paying Agent for the payment
of principal of or interest on the Series of Securities, and will notify the
Trustee of any default by the Company in making any such payment. While any such
default continues, the Trustee may require a Paying Agent to pay all money held
by it to the Trustee. The Company at any time may require a Paying Agent to pay
all money held by it to the Trustee. Upon payment over to the Trustee, the
Paying Agent (if other than the Company or a Subsidiary) shall have no further
liability for the money. If the Company or a Subsidiary acts as Paying Agent, it
shall segregate and hold in a separate trust fund for the benefit of the Holders
of any Series of Securities all money held by it as Paying Agent. Upon any
bankruptcy or reorganization proceedings relating to the Company, the Trustee
shall serve as Paying Agent for the Securities.

     SECTION 2.06. Holders 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 all Holders of each Series of Securities and shall
otherwise comply with TIA Section 312(a). If the Trustee is not the Registrar,
the Company shall furnish to the Trustee 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 the Holders of each Series of Securities
and the Company shall otherwise comply with TIA Section 312(a).

     SECTION 2.07. Transfer and Exchange. When Securities of a Series are
presented to the Registrar or a co-registrar with a request to register a
transfer or to exchange them for an equal principal amount of Securities of the
same Series, the Registrar shall register the transfer or

                                       11

<PAGE>

make the exchange if its requirements for such transactions are met. To permit
registrations of transfers and exchanges, the Trustee shall authenticate
Securities at the Registrar's request. No service charge shall be made for any
registration of transfer or exchange (except as otherwise expressly permitted
herein), but the Company may require payment of a sum sufficient to cover any
transfer tax or similar governmental charge payable in connection therewith
(other than any such transfer taxes or similar governmental charge payable upon
exchange or transfer pursuant to Sections 2.11, 3.06, or 9.05).

     Neither the Company nor the Registrar shall be required (a) to issue,
register the transfer of, or exchange Securities of any Series for the period
beginning at the opening of business fifteen days immediately preceding the
mailing of a notice of redemption of Securities of that Series selected for
redemption and ending at the close of business on the day of such mailing or (b)
to register the transfer or exchange of any Security of any Series selected,
called or being called for redemption as a whole or the portion being redeemed
of any such Securities selected, called or being called for redemption in part.

     SECTION 2.08. Mutilated, Destroyed, Lost and Stolen Securities. If any
mutilated Security is surrendered to the Trustee, the Company shall execute and
the Trustee shall authenticate and deliver in exchange therefor a new Security
of the same Series and of like tenor and principal amount and bearing a number
not contemporaneously outstanding. If there shall be delivered to the Company
and the Trustee (i) evidence to their satisfaction of the destruction, loss or
theft of any Security and (ii) such security or indemnity as may be required by
them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security has been
acquired by a bona fide purchaser, the Company shall execute and upon its
request the Trustee shall authenticate and make available for delivery, in lieu
of any such destroyed, lost or stolen Security, a new Security of the same
Series and of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

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

     Upon the issuance of any new Security under this Section, 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 expense of the Trustee) connected therewith.

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

                                       12
<PAGE>

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

     SECTION 2.09. Outstanding Securities. The Securities outstanding at any
time are all the Securities authenticated by the Trustee except for those
canceled by it, those delivered to it for cancellation, those reductions in the
interest in a Global Security effected by the Trustee in accordance with the
provisions hereof, and those described in this Section 2.09 as not outstanding.
A Security does not cease to be outstanding because the Company or an Affiliate
of the Company holds the Security.

     If a Security is replaced pursuant to Section 2.08, it ceases to be
outstanding unless the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.

     If the Paying Agent (other than the Company, a Subsidiary or an Affiliate
of any thereof) holds, on the Maturity of Securities of a Series money
sufficient to pay such Securities of the Series payable on that date, then on
and after that date such Securities of the Series shall be deemed to be no
longer outstanding and shall cease to accrue interest.

     In determining whether the Holders of the requisite principal amount of
outstanding Securities have given any request, demand, authorization, direction,
notice, consent or waiver hereunder, the principal amount of an Original Issue
Discount Security that shall be deemed to be outstanding for such purposes shall
be the amount of the principal thereof that would be due and payable as of the
date of such determination upon a declaration of acceleration of the Maturity
thereof pursuant to Section 6.02.

     SECTION 2.10. Treasury Securities. In determining whether the Holders of
the required principal amount of Securities of a Series have concurred in any
request, demand, authorization, notice, direction, waiver or consent, Securities
of a Series owned by the Company or an Affiliate shall be disregarded, except
that for the purposes of determining whether the Trustee shall be protected in
relying on any such request, demand, authorization, notice, direction, waiver or
consent, only Securities of a Series that the Trustee knows are so owned shall
be disregarded.

     SECTION 2.11. Temporary Securities. Until Definitive Securities are ready
for delivery, the Company may prepare and the Trustee shall authenticate
temporary Securities upon a Company Order. Temporary Securities shall be
substantially in the form of Definitive Securities but may have variations that
the Company considers appropriate for temporary Securities. Without unreasonable
delay, the Company shall prepare and the Trustee shall authenticate Definitive
Securities of the same Series and date of maturity in exchange for temporary
Securities. Until so exchanged, temporary Securities shall be entitled to the
same rights under this Indenture as the Definitive Securities.

     SECTION 2.12. Cancellation. The Company at any time may deliver Securities
to the Trustee for cancellation. The Registrar and Paying Agent shall forward to
the Trustee any

                                       13

<PAGE>

Securities surrendered to them for registration of transfer, exchange or
payment. The Trustee shall cancel all Securities surrendered for registration of
transfer, exchange, payment, replacement or cancellation and shall destroy
canceled Securities (subject to the record retention requirement of the Exchange
Act). Certification of the destruction of all canceled Securities shall be
delivered to the Company. The Company may not issue new Securities to replace
Securities that it has paid or that have been delivered to the Trustee for
cancellation.

     SECTION 2.13. Defaulted Interest. If the Company defaults in a payment of
interest on a Series of Securities, it shall pay the defaulted interest in any
lawful manner plus, to the extent lawful, any interest payable on the defaulted
interest, to the Persons who are Holders of the Series on a subsequent special
record date. The Company shall fix each such special record date and payment
date. At least 15 days before the special record date, the Company (or upon the
written request of the Company, the Trustee, in the name and at the expense of
the Company) shall mail or cause to be mailed to Holders of the Series a notice
that states the special record date, the related payment date and the amount of
such interest to be paid. The Company may pay defaulted interest in any other
lawful manner.

     SECTION 2.14. Global Securities.

     (a) Terms of Securities. A Board Resolution, a supplemental indenture
hereto or an Officers' Certificate shall establish whether the Securities of a
Series shall be issued in whole or in part in the form of one or more Global
Securities and the Depositary for such Global Security or Securities.

     (b) Transfer and Exchange. Notwithstanding any provisions to the contrary
contained in Section 2.07 and in addition thereto, any Global Security shall be
exchangeable pursuant to Section 2.07 for Securities registered in the names of
Holders other than the Depositary for such Security or its nominee only if:

          (i) such Depositary notifies the Company that it is unwilling or
     unable to continue as Depositary for such Global Security or if at any time
     such Depositary ceases to be a clearing agency registered under the
     Exchange Act, and in either case, the Company fails to appoint a successor
     Depositary within 90 days of such event;

          (ii) the Company executes and delivers to the Trustee an Officers'
     Certificate to the effect that such Global Security shall be so
     exchangeable; or

          (iii) an Event of Default with respect to the Securities represented
     by such Global Security shall have happened and be continuing. Any Global
     Security that is exchangeable pursuant to the preceding sentence shall be
     exchangeable for Securities registered in such names as the Depository
     shall direct in writing in an aggregate principal amount equal to the
     principal amount of the Global Security with like tenor and terms.

     Except as provided in this Section 2.14(b), a Global Security may not be
transferred except as a whole by the Depositary with respect to such Global
Security to a nominee of such

                                       14

<PAGE>

Depositary, by a nominee of such Depositary to such Depositary or another
nominee of such Depositary or by the Depositary or any such nominee to a
successor Depositary or a nominee of such a successor Depositary.

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

          "THIS GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS DEFINED IN THE
          INDENTURE GOVERNING THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE
          BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO
          ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THIS GLOBAL
          SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION
          2.07 OF THE INDENTURE, (II) THIS GLOBAL SECURITY MAY BE DELIVERED TO
          THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.12 OF THE INDENTURE
          AND (III) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A SUCCESSOR
          DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF AMERICAN REAL ESTATE
          PARTNERS, L.P."

     (d) Acts of Holders.

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

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

                                       15

<PAGE>

          (iii) The ownership of bearer securities may be proved by the
     production of such bearer securities or by a certificate executed by any
     trust company, bank, banker or other depositary, wherever situated, if such
     certificate shall be deemed by the Trustee to be satisfactory, showing that
     at the date therein mentioned such Person had on deposit with such
     depositary, or exhibited to it, the bearer securities therein described; or
     such facts may be proved by the certificate or affidavit of the Person
     holding such bearer securities, if such certificate or affidavit is deemed
     by the Trustee to be satisfactory. The Trustee and the Company may assume
     that such ownership of any bearer security continues until (A) another such
     certificate or affidavit bearing a later date issued in respect of the same
     bearer security is produced, (B) such bearer security is produced to the
     Trustee by some other Person, (C) such bearer security is surrendered in
     exchange for a registered security or (D) such bearer security is no longer
     outstanding. The ownership of bearer securities may also be proved in any
     other manner which the Trustee deems sufficient.

          (iv) The ownership of registered securities shall be proved by the
     register maintained by the Registrar.

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

          (vi) If the Company shall solicit from the Holders any request,
     demand, authorization, direction, notice, consent, waiver or other Act, the
     Company may, at its option, by or pursuant to a Board Resolution, fix in
     advance a record date for the determination of Holders entitled to give
     such request, demand, authorization, direction, notice, consent, waiver or
     other Act, but the Company shall have no obligation to do so if such a
     record date is fixed, such request, demand, authorization, direction,
     notice, consent, waiver or other Act may be given before or after such
     record date, but only the Holders of record at the close of business on
     such record date shall be deemed to be Holders for the purposes of
     determining whether Holders of the requisite proportion of outstanding
     Securities have authorized or agreed or consented to such request, demand,
     authorization, direction, notice, consent, waiver or other Act, and for
     that purpose the outstanding Securities shall be computed as of such record
     date; provided that no such authorization, agreement or consent by the
     Holders on such record date shall be deemed effective unless it shall
     become effective pursuant to the provisions of this Indenture not later
     than six months after the record date.

     (e) Payments. Notwithstanding the other provisions of this Indenture,
unless otherwise specified as contemplated by Section 2.02, payment of the
principal of and interest, if any, on any Global Security shall be made to the
Holder thereof.

                                       16

<PAGE>

     (f) Consents, Declaration and Directions. Except as provided in Section
2.14(e), the Company, the Trustee and any Agent shall treat a person as the
Holder of such principal amount of outstanding Securities of such Series
represented by a Global Security as shall be specified in a written statement of
the Depositary with respect to such Global Security, for purposes of obtaining
any consents, declarations, waivers or directions required to be given by the
Holders pursuant to this Indenture.

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

                                    ARTICLE 3

                            REDEMPTION AND PREPAYMENT

     SECTION 3.01. Notices to Trustee. The Company may, with respect to any
Series of Securities, reserve the right to redeem and pay the Series of
Securities or may covenant to redeem and pay the Series of Securities or any
part thereof prior to the Stated Maturity thereof at such time and on such terms
as provided for in such Series of Securities. If a Series of Securities is
redeemable and the Company wants or is obligated to redeem prior to the Stated
Maturity thereof all or part of the Series of Securities pursuant to the terms
of such Securities, it shall notify the Trustee of the redemption date and the
principal amount of Securities of the Series to be redeemed and the redemption
price. The Company shall give such notice to the Trustee at least 30 but no more
than 60 days before the redemption date (or such shorter notice as may be
acceptable to the Trustee).

     SECTION 3.02. Selection of Securities to be Redeemed. Unless otherwise
indicated for a particular Series by a Board Resolution, supplemental indenture
or an Officers' Certificate, if less than all of the Securities are to be
redeemed or purchased in an offer to purchase at any time, the Trustee shall
select the Securities to be redeemed or purchased as follows: (a) if the
Securities are listed on any national securities exchange, in compliance with
the requirements of the principal national securities exchange, if any, on which
the Securities are listed; or (b) if the Securities are not listed on a national
securities exchange, on a pro rata basis, by lot or in accordance with any other
method as the Trustee considers fair and appropriate. No Securities of $1,000
principal amount or less will be redeemed in part. Except as provided in the
preceding sentence, provisions of this Indenture that apply to Securities called
for redemption also apply to portions of Securities called for redemption. The
Trustee shall make the selection at least 25 but not more than 60 days before
the redemption date from outstanding Securities of a Series previously called
for redemption.

                                       17

<PAGE>

     If any Security is to be redeemed in part only, the notice of redemption
that relates to such Security shall state the portion of the principal amount of
that Security to be redeemed. A new Security in principal amount equal to the
unredeemed portion of the original Security presented for redemption will be
issued in the name of the Holder thereof upon cancellation of the original
Security. Securities called for redemption become due on the date fixed for
redemption. On and after the redemption date, interest ceases to accrue or
accrete on Securities or portions of them called for redemption.

     SECTION 3.03. Notice of Redemption. Unless otherwise provided for a
particular Series of Securities by a Board Resolution, a supplemental indenture
or an Officers' Certificate, at least 30 days but not more than 60 days before a
redemption date, the Company shall mail or cause to be mailed, by first class
mail, a notice of redemption to each Holder whose Securities are to be redeemed
at its registered address.

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

     (a) the redemption date;

     (b) the Redemption Price (as defined in the Indenture for the Series of
Securities);

     (c) if any Security is being redeemed in part, the portion of the principal
amount of such Security to be redeemed and that, after the redemption date upon
surrender of such Security, a new Security or Securities in principal amount
equal to the unredeemed portion shall be issued upon cancellation of the
original Security;

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

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

     (f) that, unless the Company defaults in making such redemption payment or
the Paying Agent is prohibited from making such payment pursuant to the terms of
this Indenture, interest on the Securities called for redemption ceases to
accrue on and after the redemption date;

     (g) the paragraph of the Securities and/or provision of this Indenture or
any supplemental indenture or Board Resolution pursuant to which the Securities
called for redemption are being redeemed;

     (h) the CUSIP number, if any, printed on the Securities being redeemed; and

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

     At the Company's request, the Trustee shall give the notice of redemption
in the Company's name and at its expense; provided, however, that the Company
shall have delivered to the Trustee, at least 45 days prior to the redemption
date (or such shorter period as shall be acceptable to the Trustee), an
Officers' Certificate requesting that the Trustee give such notice

                                       18

<PAGE>

and setting forth the information to be stated in such notice as provided in the
preceding paragraph.

     SECTION 3.04. Effect of Notice of Redemption. Once notice of redemption is
mailed in accordance with Section 3.03, Securities called for redemption become
irrevocably due and payable on the redemption date at the redemption price, plus
accrued and unpaid interest to such date. A notice of redemption may not be
conditional. Failure to give notice or any defect in the notice to the Holder of
any Security shall not affect the validity of the notice to any other Holder.

     SECTION 3.05. Deposit of Redemption Price. On or before 12:00 p.m. (New
York City time) on the redemption date, the Company shall deposit with the
Trustee or with the Paying Agent (or if the Company or any Subsidiary is the
Paying Agent, shall segregate and hold in trust) money sufficient to pay the
redemption price, of and accrued interest on, all Securities to be redeemed on
that date, other than Securities or portions of Securities called for redemption
that have been delivered to the Trustee for cancellation. The Trustee or the
Paying Agent shall as promptly as practicable return to the Company any money
deposited with the Trustee or the Paying Agent by the Company in excess of the
amounts necessary to pay the redemption price of, and accrued interest on, all
Securities to be redeemed. If such money is then held by the Company or a
Subsidiary in trust and is not required for such purpose, it shall be discharged
from such trust.

     If the Company complies with the provisions of the preceding paragraph, on
and after the redemption, interest shall cease to accrue on the Securities
called for redemption. If a Security is redeemed on or after an interest record
date but on or prior to the related Interest Payment Date, then any accrued and
unpaid interest shall be paid to the Person in whose name such Security was
registered at the close of business on such record date. If any Security called
for redemption shall not be so paid upon surrender for redemption because of the
failure of the Company to comply with the preceding paragraph, interest shall be
paid on the unpaid principal from the redemption date until such principal is
paid, and to the extent lawful, on any interest not paid on such unpaid
principal, in each case at the rate provided in the Securities.

     SECTION 3.06. Securities Redeemed in Part. Upon surrender of a Security
that is redeemed in part, the Company shall execute and, upon the Company's
written request, the Trustee shall authenticate for the Holder at the expense of
the Company a new Security equal in principal amount to the unredeemed portion
of the Security surrendered.

                                    ARTICLE 4

                                    COVENANTS

     SECTION 4.01. Payment of Securities. The Company covenants and agrees for
the benefit of the Holders of each Series of Securities that it will duly and
punctually make all payments in respect of each Series of Securities on the
dates and in the manner provided in such Series of Securities and this
Indenture. Such payments shall be considered made on the date the Trustee or the
Paying Agent, if other than the Company or a Subsidiary thereof, holds, in

                                       19

<PAGE>

accordance with this Indenture, funds sufficient to make all payments with
respect to such Securities then due and the Trustee or the Paying Agent, as the
case may be, is not prohibited from paying such money to the Holders on that
date pursuant to the terms of this Indenture.

     SECTION 4.02. Reports. Unless otherwise indicated in a Board Resolution, a
supplemental indenture or an Officers' Certificate, whether or not required by
the rules and regulations of the Commission so long as any Securities are
outstanding, the Company shall furnish to the Trustee and the Holders of the
Securities the following:

     (a) all quarterly and annual financial information that would be required
to be contained in a filing with the Commission on Forms 10-Q and 10-K if the
Company were required to file such Forms, including a "Management's Discussion
and Analysis of Financial Condition and Results of Operations" and, with respect
to the annual information only, a report thereon by the Company's certified
independent accountants;

     (b) all current reports that would be required to be filed with the
Commission on Form 8-K if the Company were required to file such reports; and

     (c) any other information, reports and documents that the Company is
required to file with the Commission pursuant to Section 13 or Section 15(d) of
the Exchange Act.

in each case, within the time periods specified in the Commission's rules and
regulations; provided that such information and reports need not be furnished to
the Holders if they are generally available on the Internet free of charge.

     In addition, whether or not required by the rules and regulations of the
Commission, the Company shall file a copy of all such information and reports
with the Commission for public availability within the time periods specified in
the Commission's rules and regulations (unless the Commission shall not accept
such a filing) and make such information available to securities analysts and
prospective investors upon request.

     SECTION 4.03. Compliance Certificate

     (a) The Company shall deliver to the Trustee, within 90 days after the end
of each fiscal year of the Company, an Officers' Certificate stating that a
review of the activities of the Company and its Subsidiaries during the
preceding fiscal year has been made under the supervision of the signing
Officers with a view to determining whether each of the Company and any other
obligors has kept, observed, performed and fulfilled its obligations under this
Indenture, and further stating, as to each such Officer signing such
certificate, that to the best of his or her knowledge each entity has fulfilled
all of its obligations under this Indenture throughout such year and is not in
default in the performance or observance of any of the terms, provisions and
conditions of this Indenture (or, if a Default or Event of Default shall have
occurred, describing all such Defaults or Events of Default of which he or she
may have knowledge and the nature and status thereof).

     (b) So long as not contrary to the then current recommendations of the
American Institute of Certified Public Accountants, the year-end financial
statements delivered pursuant to

                                       20

<PAGE>

Section 4.02(a) above shall be accompanied by a written statement of the
Company's independent public accountants (who shall be a firm of established
national reputation, reasonably satisfactory to the Trustee) that in making the
examination necessary for certification of such financial statements, nothing
has come to their attention that would lead them to believe that a Default or an
Event of Default has occurred and is continuing or, if any such Default or Event
of Default has occurred and is continuing, specifying the nature and period of
existence thereof, it being understood that such accountants shall not be liable
directly or indirectly to any Person for any failure to obtain knowledge of any
such Default or Event of Default. In the event that such written statement of
the Company's independent public accountants cannot be obtained, the Company
shall deliver an Officers' Certificate certifying that it has used its best
efforts to obtain such statements and was unable to do so.

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

     SECTION 4.04. Corporate Existence. Subject to Article 5, the Company shall
do or cause to be done all things necessary to preserve and keep in full force
and effect:

     (a) its corporate, partnership or other existence, and the corporate,
partnership or other existence of each of its Subsidiaries, in accordance with
the respective organizational documents (as the same may be amended from time to
time) of the Company or any such Subsidiary; and

     (b) the rights (charter and statutory), licenses and franchises of the
Company and its Subsidiaries; provided, however, that the Company shall not be
required to preserve any such right, license or franchise, or the corporate,
partnership or other existence of any of its Subsidiaries, if the Board of
Directors shall determine that the preservation thereof is no longer desirable
in the conduct of the business of the Company and its Subsidiaries, taken as a
whole, and that the loss thereof is not adverse in any material respect to the
Holders of the Securities.

     SECTION 4.05. Calculation of Original Issue Discount. The Company shall
file with the Trustee promptly at the end of each calendar year (i) a written
notice specifying the amount of original issue discount (including daily rates
and accrual periods) accrued on outstanding Securities as of the end of such
year and (ii) such other specific information relating to such original issue
discount as may then be relevant under the Internal Revenue Code of 1986, as
amended from time to time.

                                    ARTICLE 5

                                   SUCCESSORS

     SECTION 5.01. Merger, Consolidation or Sale of Assets. Unless otherwise
provided for in a particular Series by a Board Resolution, a supplemental
indenture or an Officers' Certificate, the Company shall not consolidate with or
merge into (whether or not the Company is the surviving entity), or sell,
assign, transfer, lease, convey or otherwise dispose of

                                       21

<PAGE>

(collectively, "Transfer") all or substantially all of its properties or assets
to, another Person unless:

     (a) the resulting, surviving or transferee Person (the "Successor Company")
shall be a corporation, limited liability company or limited partnership
organized or existing under the laws of the United States, any state thereof or
the District of Columbia;

     (b) the Person formed by or surviving any such consolidation or merger (if
other than the Company) or the Person to which such Transfer has been made
assumes all the obligations of the Company under the Securities and this
Indenture pursuant to a supplemental indenture or amendment, in a form
reasonably satisfactory to the Trustee;

     (c) immediately after such transaction, no Default exists; and

     (d) the Company shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that such consolidation,
merger or Transfer complies with this Indenture.

     The Successor Company shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Indenture (as modified
by a Board Resolution, supplemental indenture or Officers' Certificate), and the
predecessor Company, except in the case of a lease of all or substantially all
of its assets, shall be released from the obligation to pay the principal of and
interest on the Securities. The foregoing will not prohibit a consolidation or
merger between the Company and a Wholly Owned Subsidiary, the transfer of all or
substantially all of the properties or assets of the Company to a Wholly Owned
Subsidiary or the transfer of all or substantially all of the properties or
assets of a Wholly Owned Subsidiary to the Company; provided, that if the
Company is not the surviving entity of such transaction or the Person to which
such transfer is made, the surviving entity or the Person to which such transfer
is made shall comply with clause (b) of this paragraph.

                                    ARTICLE 6

                              DEFAULTS AND REMEDIES

     SECTION 6.01. Events of Default. Unless otherwise indicated for a
particular Series of Securities by a Board Resolution, a supplemental indenture
or an Officers' Certificate, each of the following constitutes an "Event of
Default" with respect to each Series of Securities:

     (a) default for 30 days in the payment of interest when due with respect to
the Securities;

     (b) default in payment when due of principal or premium, if any, on the
Securities at maturity, upon redemption or otherwise;

     (c) failure by the Company for 30 days after receipt of notice (as
specified below) to comply with the provisions described under Section 2.04,
4.02, 4.03 or 5.01;

                                       22
<PAGE>

     (d) failure by the Company for 60 days after notice (as specified below) to
comply with its other agreements in this Indenture or the Securities;

     (e) the Company or any Significant Subsidiary pursuant to or within the
meaning of any Bankruptcy Law:

          (i) commences a voluntary case;

          (ii) consents to the entry of an order for relief against it in an
     involuntary case in which it is the debtor;

          (iii) consents to the appointment of a custodian of it or for all or
     substantially all of its property; or

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

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

          (i) is for relief against the Company or any Significant Subsidiary in
     an involuntary case in which it is the debtor;

          (ii) appoints a custodian of the Company or for all or substantially
     all of the property of the Company or any Significant Subsidiary; or

          (iii) orders the liquidation of the Company or any Significant
     Subsidiary;

and the order or decree contemplated in clause (i), (ii) or (iii) remains
unstayed and in effect for 60 consecutive days;

     A Default under paragraph (c) or (d) of this Section 6.01 is not an Event
of Default until the Trustee or the Holders of at least 25% in principal amount
of the outstanding Securities notify the Company of the Default and the Company
does not cure such Default within the time specified after receipt of such
notice. Such notice must specify the Default, demand that it be remedied and
state that such notice is a "Notice of Default".

     To the extent that the last day of the period referred to in paragraph (a),
(c), (d), (e) or (f) of this Section 6.01 is not a Business Day, then the first
Business Day following such day shall be deemed to be the last day of the period
referred to in such clauses. Any "day" will be deemed to end as of 11:59 p.m.,
New York City time.

     SECTION 6.02. Acceleration. If an Event of Default with respect to any
Series of Securities at the time outstanding (other than an Event of Default
with respect to the Company specified in paragraph (e) and (f) of Section 6.01)
occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the then outstanding Securities of that Series may declare
the unpaid principal of, (or, in the case of Original Issue Discount Securities
of that Series, the portion thereby specified in the terms of such Security)
premium, if any, and accrued

                                       23

<PAGE>

and unpaid interest on all the Securities of that Series to be due and payable
by notice in writing to the Company (and the Trustee, if given by the Holders)
specifying the respective Event of Default and that it is a "notice of
acceleration". Upon such a declaration, such amounts shall be due and payable
immediately. If an Event of Default with respect to the Company specified in
paragraph (e) or (f) of Section 6.01 occurs, the principal amount of (or, in the
case of Original Issue Discount Securities of that Series, the portion thereby
specified in the terms of such Security), premium, if any, and accrued and
unpaid interest on all the Securities of each Series of Security shall ipso
facto become and be immediately due and payable without any declaration or other
act on the part of the Trustee or any Holder. The Holders of a majority in
principal amount of the then outstanding Securities of any Series of Securities
by written notice to the Trustee may rescind an acceleration and its
consequences if the rescission would not conflict with any judgment or decree
and if all existing Events of Default have been cured or waived with respect to
such Series of Securities (except nonpayment of the principal amount of (or, in
the case of Original Issue Discount Securities of that Series, the portion
thereby specified in the terms of such Security), premium, if any, and accrued
and unpaid interest on all the Securities of that Series that has become due
solely because of the acceleration).

     SECTION 6.03. Other Remedies. If an Event of Default with respect to any
Series of Securities occurs and is continuing, the Trustee may pursue any
available remedy to collect the payment of the principal amount of (or, in the
case of Original Issue Discount Securities of that Series, the portion thereby
specified in the terms of such Security), premium, if any, and accrued and
unpaid interest on all the Securities of that Series or to enforce the
performance of any provision of the Securities of that Series or this Indenture.

     The Trustee may maintain a proceeding even if it does not possess any of
the Securities of a Series or does not produce any of them in the proceeding. A
delay or omission by the Trustee or any Holder in exercising any right or remedy
accruing upon an Event of Default with respect to any Series of Securities shall
not impair the right or remedy or constitute a waiver of or acquiescence in the
Event of Default. All remedies are cumulative to the extent permitted by law.

     SECTION 6.04. Waiver of Past Defaults. Holders of at least a majority in
principal amount of the Securities of any Series (including consents obtained in
connection with a tender offer or exchange for Securities) by notice to the
Trustee may on behalf of the Holders of all of Securities of that Series waive
an existing Default or Event of Default and its consequences hereunder, except a
continuing Default or Event of Default in the payment of the principal amount of
(or, in the case of Original Issue Discount Securities of that Series, the
portion thereby specified in the terms of such Security), premium, if any, and
accrued and unpaid interest on all the Securities of that Series. Upon any such
waiver, such Default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Default or
impair any right consequent thereon.

     SECTION 6.05. Control By Majority. Holders of a majority in principal
amount of the then outstanding Securities of any Series may direct the time,
method and place of conducting any proceeding for exercising any remedy
available to the Trustee or exercising any

                                       24

<PAGE>

trust or power conferred on it with respect to that Series. However, the Trustee
may refuse to follow any direction that conflicts with law or this Indenture or,
subject to Section 7.01, that the Trustee determines may be prejudicial to the
rights of any other Holder of Securities of that Series or that may involve the
Trustee in personal liability.

     SECTION 6.06. Limitation on Suits. Except to enforce the right to receive
payment of the principal amount of (or, in the case of Original Issue Discount
Securities, the portion thereby specified in the terms of such Security),
premium, if any, and accrued and unpaid interest on a Security of Series when
due, no Holder of a Security of that Series may pursue any remedy with respect
to this Indenture or the Securities of that Series unless:

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

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

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

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

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

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

     SECTION 6.07. Rights of Holders to Receive Payment. Notwithstanding any
other provision of this Indenture, the right of any Holder to receive payment of
the principal amount of (or, in the case of Original Issue Discount Securities,
the portion thereby specified in the terms of such Security), premium, if any,
and accrued and unpaid interest on the Securities held by such Holder, on or
after their Maturity, or to bring suit for the enforcement of any such payment
on or after their Maturity, 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(a) or (b) hereof occurs and is continuing, the Trustee
is authorized to recover judgment in its own name and as trustee of an express
trust against the Company or any other obligor under the Securities for the
whole amount then due and, to the extent lawful, interest and such further
amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel.

                                       25

<PAGE>

     SECTION 6.09. Trustee May File Proofs of Claim. The Trustee is authorized
to file such proofs of claim and other papers or documents as may be necessary
or advisable in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and the Holders allowed in any judicial
proceedings relative to the Company (or any other obligor under the Securities),
its creditors or its property and shall be entitled and empowered to collect,
receive and distribute any money or other property payable or deliverable on any
such claims and any custodian in any such judicial proceeding is hereby
authorized by each Holder to make such payments to the Trustee, and in the event
that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.07.

     SECTION 6.10. Priorities. If the Trustee collects any money pursuant to
this Article 6 with respect to any Series of Securities, it shall pay out the
money in the following order:

               FIRST: to the Trustee, its agents and attorneys for amounts due
          under Section 7.07;

               SECOND: to the payment of all Senior Indebtedness if and to the
          extent required by Article 10 of this Indenture or other subordination
          provisions applicable with respect to a Series of Securities;

               THIRD: to Holders for amounts due and unpaid on the Securities of
          that Series for the principal amount of (or, in the case of Original
          Issue Discount Securities of that Series, the portion thereby
          specified in the terms of such Security), premium, if any, and accrued
          and unpaid interest, ratably, without preference or priority of any
          kind, according to the amounts due and payable on the Securities of
          that Series for the principal amount of (or, in the case of Original
          Issue Discount Securities of that Series, the portion thereby
          specified in the terms of such Security), premium, if any, and accrued
          and unpaid interest, respectively; and

               FOURTH: to the Company.

     The Trustee may fix a record date and payment date for any payment to
Holders pursuant to this Section 6.10.

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

                                       26

<PAGE>

Section 6.07, or a suit by Holders of more than 10% in principal amount of the
then outstanding Securities of any Series.

                                    ARTICLE 7

                                     TRUSTEE

     SECTION 7.01. Duties of Trustee.

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

     (b) Except during the continuance of an Event of Default with respect to
any Series of Securities:

          (i) the duties of the Trustee shall be determined solely by the
     express provisions of this Indenture, with respect to the Securities of
     that Series, as modified or supplemented by a Board Resolution, a
     supplemental indenture or an Officers' Certificate, and no implied
     covenants or obligations shall be read into this Indenture against the
     Trustee; and

          (ii) in the absence of bad faith on its part, the Trustee may with
     respect to Securities of that Series, conclusively rely, as to the truth of
     the statements and the correctness of the opinions expressed therein, upon
     certificates or opinions furnished to the Trustee and conforming to the
     requirements of this Indenture. However, the Trustee shall examine the
     certificates and opinions to determine whether or not they conform to the
     requirements of this Indenture (but need not confirm or investigate the
     accuracy of mathematical calculations or other facts stated therein).

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

          (i) this paragraph does not limit the effect of paragraph (b) of this
     Section 7.01;

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

          (iii) 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 and the Trustee shall be entitled
     from time to time to request such direction.

                                       27

<PAGE>

     (d) Whether or not therein expressly so provided, every provision of this
Indenture that in any way relates to the Trustee is subject to paragraphs (a),
(b) and (c) of this Section 7.01.

     (e) No provision of this Indenture shall require the Trustee to expend or
risk its own funds or incur any liability. The Trustee shall be under no
obligation to exercise any of its rights and powers under this Indenture at the
request of any Holders, unless such Holder shall have offered to the Trustee
security and indemnity satisfactory to it against any loss, liability or
expense.

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

     (g) The Trustee shall not be bound to make any investigation into the facts
or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent or other paper or
documents.

     SECTION 7.02. Rights of Trustee.

     (a) The Trustee may conclusively rely on the truth of the statements and
correctness of the opinions contained in, and shall be protected from acting or
refraining from acting upon, any document believed by it to be genuine and to
have been signed or presented by the proper Person. The Trustee need not
investigate any fact or matter stated in the document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit, and, if the Trustee shall determine to make such
further inquiry or investigation, it shall be entitled to examine the books,
records and premises of the Company, personally or by agent or attorney, to the
extent reasonably required by such inquiry or investigation.

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

     (c) The Trustee may act through 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 that it believes to be authorized or within its rights or
powers.

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

                                       28

<PAGE>

     (f) 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 reasonable
security or indemnity satisfactory to the Trustee against the costs, expenses
and liabilities that might be incurred by it in compliance with such request or
direction.

     SECTION 7.03. Individual Rights of Trustee. The Trustee in its individual
or any other capacity may become the owner or pledgee of Securities and may
otherwise deal with the Company or any Affiliate of the Company with the same
rights it would have if it were not Trustee. However, in the event that the
Trustee acquires any conflicting interest it must eliminate such conflict within
90 days, apply to the Commission for permission to continue as Trustee or
resign. Any Agent may do the same with like rights and duties. The Trustee is
also subject to Sections 7.10 and 7.11.

     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 Securities, it shall not be accountable for the Company's use of the
proceeds from the Securities or any money paid to the Company or upon the
Company's direction under any provision of this Indenture, it shall not be
responsible for the use or application of any money received by any Paying Agent
other than the Trustee, and it shall not be responsible for any statement or
recital herein or any statement in the Securities or any other document in
connection with the sale of the Securities or pursuant to this Indenture other
than its certificate of authentication.

     SECTION 7.05. Notice of Defaults. If a Default or Event of Default with
respect to Securities of any Series occurs and is continuing and if it is known
to the Trustee, the Trustee shall mail to Holders of that Series a 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 on any Security pursuant to Section
6.01(a) or (b), the Trustee may withhold the notice if and so long as a
committee of its Responsible Officers in good faith determines that withholding
the notice is in the interests of the Holders.

     SECTION 7.06. Reports By Trustee to Holders. Unless otherwise specified in
the applicable Board Resolution, supplemental indenture or Officers'
Certificate, within 60 days after each May 15 beginning with the May 15
following the date of this Indenture, and for so long as Securities remain
outstanding, the Trustee shall mail to the Holders of the Securities a brief
report dated as of such reporting date that complies with TIA Section 313(a)
(but if no event described in TIA Section 313(a) has occurred within the twelve
months preceding the reporting date, no report need be transmitted). The Trustee
also shall comply with TIA Section 313(b). The Trustee shall also transmit by
mail all reports as required by TIA Section 313(c).

     A copy of each report at the time of its mailing to the Holders shall be
mailed to the Company and filed with the Commission and each stock exchange on
which the Company has informed the Trustee in writing the Securities are listed
in accordance with TIA Section 313(d). The Company shall promptly notify the
Trustee in writing when the Securities are listed on any stock exchange and of
any delisting thereof.

                                       29

<PAGE>

     SECTION 7.07. Compensation and Indemnity. The Company shall pay to the
Trustee from time to time reasonable compensation for its acceptance of this
Indenture and services hereunder. To the extent lawful, the Trustee's
compensation shall not be limited by any law on compensation of a trustee of an
express trust. The Company shall reimburse the Trustee promptly upon request for
all reasonable disbursements, advances and expenses incurred or made by it in
addition to the compensation for its services. Such expenses shall include the
reasonable compensation, disbursements and expenses of the Trustee's agents and
counsel.

     The Company shall indemnify the Trustee against any and all losses,
liabilities or expenses incurred by it arising out of or in connection with the
acceptance or administration of its duties under this Indenture, including the
reasonable costs and expenses of enforcing this Indenture against the Company or
any other obligors under the Securities (including this Section 7.07) and
defending itself against any claim (whether asserted by the Company or any
Holder or any other person) or liability in connection with the exercise or
performance of any of its powers or duties hereunder except to the extent any
such loss, liability or expense may be attributable to its gross negligence, bad
faith or willful misconduct. 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 shall cooperate in the defense.
The Trustee may have separate counsel and the Company shall pay the reasonable
fees and expenses of such counsel. The Company need not pay for any settlement
made without its consent, which consent shall not be unreasonably withheld.

     The obligations of the Company under this Section 7.07 shall survive the
satisfaction and discharge of this Indenture. The obligations of the Company
under this Section 7.07 shall not be subordinated to the payment of Senior
Indebtedness.

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

     When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.01(e) or (f) occurs, the expenses and the
compensation for the services (including the fees and expenses of its agents and
counsel) are intended to constitute expenses of administration under any
Bankruptcy Law.

     The Trustee shall comply with the provisions of TIA Section 313(b)(2) to
the extent applicable.

     SECTION 7.08. Replacement of Trustee. A resignation or removal of the
Trustee and appointment of a successor Trustee shall become effective only upon
the successor Trustee's acceptance of appointment as provided in this Section
7.08.

                                       30

<PAGE>

     The Trustee may resign in writing at any time and be discharged from the
trust hereby created with respect to the Securities of any Series by so
notifying the Company. The Holders of a majority in principal amount of the then
outstanding Securities of any Series may remove the Trustee with respect to such
Series of Securities by so notifying the Trustee and the Company in writing. The
Company may remove the Trustee if:

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

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

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

     (d) the Trustee becomes incapable of acting.

     If the Trustee resigns, is removed by the Company or by the Holders of a
majority in principal amount of the Securities of any Series and such Holders do
not reasonably promptly appoint a successor Trustee or if a vacancy exists in
the office of 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.

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

     If the Trustee, after written request by any Holder of a Security who has
been a Holder of a Security for at least six months, fails to comply with
Section 7.10, such Holder may petition any court of competent jurisdiction for
the removal of the Trustee and the appointment of a successor Trustee.

     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 the
Holders. The retiring Trustee shall promptly transfer all property held by it as
Trustee to the successor Trustee, provided that all sums owing to the Trustee
hereunder have been paid and subject to the lien provided for in Section 7.07.
Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the
Company's obligations under Section 7.07 shall continue for the benefit of the
retiring Trustee.

     SECTION 7.09. Successor Trustee by Merger, Etc. If the Trustee
consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust business to, another corporation, the successor corporation
without any further act shall be the successor Trustee; provided, such
corporation or association shall be otherwise eligible and qualified under this
Article 7 and shall notify the Company of its successor hereunder.

                                       31

<PAGE>

     SECTION 7.10. Eligibility; Disqualification. There shall at all times be a
Trustee hereunder that is a corporation organized and doing business under the
laws of the United States of America or of any state thereof that is authorized
under such laws to exercise corporate trustee power, that is subject to
supervision or examination by federal or state authorities and has a combined
capital and surplus of at least $50.0 million as set forth in its most recent
published annual report of condition.

     This Indenture shall always have a Trustee who satisfies the requirements
of TIA Section 310(a)(1), (2) and (5). The Trustee is subject to TIA Section
310(b).

     SECTION 7.11. Preferential Collection of Claims Against the Company. The
Trustee is subject to TIA Section 311(a), excluding any creditor relationship
listed in TIA Section 311(b). A Trustee who has resigned or been removed shall
be subject to TIA Section 311(a) to the extent indicated therein.

                                   ARTICLE 8

               DISCHARGE; LEGAL DEFEASANCE AND COVENANT DEFEASANCE

     SECTION 8.01. Discharge; Option to Effect Legal Defeasance or Covenant
Defeasance.

     (a) When (i) the Company delivers to the Trustee all outstanding Securities
of a Series (other than Securities replaced pursuant to Section 2.08) for
cancellation or (ii) all outstanding Securities have become due and payable at
maturity and the Company irrevocably deposits with the Trustee funds sufficient
to pay at Maturity all outstanding Securities of such Series, including interest
thereon to Maturity (other than Securities replaced pursuant to Section 2.08),
and if in either case the Company pays all other sums payable hereunder by the
Company, then this Indenture shall cease to be of further effect except as set
out in Section 8.01(c). 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 and at the cost and expense of the
Company.

     (b) The Company may, at the option of its Board of Directors evidenced by a
resolution set forth in an Officers' Certificate, at any time, elect to have all
of its obligations discharged with respect to all outstanding Securities of any
Series pursuant to Section 8.02 or 8.03 and upon compliance with the conditions
set forth below in this Article 8.

     (c) Notwithstanding Section 8.01(a), the Company's obligations in Sections
2.03, 2.04, 2.05, 2.06, 2.07, 2.08 and 2.11 and the rights, powers, trusts,
duties and immunities of the Trustee, including without limitation, under
Sections 7.07, 8.05 and 8.07, and the Company's obligations in connection
therewith, shall survive until the Securities of a Series have been paid in
full. The rights of outstanding Securities to receive solely from the trust
funds described in Section 8.05 payments in respect of principal of, premium, if
any, and interest on such Securities when such payments are due shall also
survive until the Securities have been paid in full. Thereafter, the Company's
obligations in Sections 7.07 and 8.06 shall survive.

                                       32

<PAGE>

     SECTION 8.02. Legal Defeasance and Discharge. Upon the Company's exercise
under Section 8.01(b) of the option applicable to this Section 8.02, the Company
shall, subject to the satisfaction of the conditions set forth in Section 8.04,
be deemed to have been discharged from its obligations with respect to all
outstanding Securities of that Series on the date the conditions set forth below
are satisfied (hereinafter, "Legal Defeasance"). For this purpose, Legal
Defeasance means that the Company shall be deemed to have paid and discharged
the entire Indebtedness represented by the outstanding Securities of that
Series, which shall thereafter be deemed to be "outstanding" only for the
purposes of Section 8.05 and the other Sections of this Indenture referred to in
(a) and (b) below, and to have satisfied all its other obligations under such
Securities and this Indenture (and the Trustee, on demand of and at the expense
of the Company, shall execute proper instruments acknowledging the same), except
for the following provisions which shall survive until otherwise terminated or
discharged hereunder:

     (a) the rights of Holders of outstanding Securities of that Series to
receive solely from the trust fund described in Section 8.04(a), payments in
respect of the principal of, premium, if any, and interest on such Securities of
that Series when such payments are due;

     (b) the Company's obligations with respect to such Securities of that
Series under Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.08 and 2.11;

     (c) the rights, powers, trusts, duties and immunities of the Trustee,
including without limitation, under Sections 7.07, 8.05 and 8.07, and the
Company's obligations in connection therewith; and

     (d) the provisions of this Article 8;

     Subject to compliance with this Article 8, the Company may exercise its
option under this Section 8.02 notwithstanding the prior exercise of its option
under Section 8.03.

     SECTION 8.03. Covenant Defeasance. Upon the Company's exercise under
Section 8.01(b) of the option applicable to this Section 8.03, the Company
shall, subject to the satisfaction of the conditions set forth in Section 8.04,
be released from its obligations under the covenants contained in a Board
Resolution, a supplemental indenture or an Officers' Certificate and Section
5.01 with respect to the outstanding Securities of that Series on and after the
date the conditions set forth below are satisfied (hereinafter, "Covenant
Defeasance"), and the Securities of that Series shall thereafter be deemed not
"outstanding" for the purposes of any direction, waiver, consent or declaration
or act of Holders (and the consequences of any thereof) in connection with such
covenants, but shall continue to be deemed "outstanding" for all other purposes
hereunder (it being understood that such Securities shall not be deemed
outstanding for accounting purposes). For this purpose, Covenant Defeasance
means that, with respect to the outstanding Securities of that Series, the
Company and its Subsidiaries 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 such omission to comply
shall not constitute a Default or an Event of Default under Section 6.01, but,
except as specified above, the remainder of this Indenture and

                                       33

<PAGE>

such Securities shall be unaffected thereby. In addition, upon the Company's
exercise under Section 8.01(a) of the option applicable to this Section 8.03,
subject to the satisfaction of the conditions set forth in Section 8.04, any
event specified in Section 6.01 (other than Section 6.01(e) and (f)) shall not
constitute an Event of Default.

     SECTION 8.04. Conditions to Legal or Covenant Defeasance. The following
shall be the conditions to the application of either Section 8.02 or 8.03 to the
outstanding Securities:

     In order to exercise either Legal Defeasance or Covenant Defeasance with
respect to any Series of Securities:

     (a) the Company must irrevocably deposit with the Trustee, in trust, for
the benefit of the Holders of that Series of Securities, (i) cash in United
States dollars, (ii) non-callable Government Securities or (iii) a combination
thereof, in such amounts as shall be sufficient, in the opinion of a nationally
recognized firm of independent public accountants to pay the principal of,
premium, if any, and interest on the outstanding Securities of such Series on
the stated maturity or on the applicable redemption date, as the case may be,
and the Company must specify whether the Securities of such Series are being
defeased to maturity or to a particular redemption date;

     (b) in the case of an election under Section 8.02, the Company shall have
delivered to the Trustee an Opinion of Counsel in the United States reasonably
acceptable to the Trustee confirming that (i) the Company has received from, or
there has been published by, the Internal Revenue Service a ruling or (ii) since
the date hereof, 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 Holders of the outstanding Securities of such
Series shall not recognize income, gain or loss for federal income tax purposes
as a result of such Legal Defeasance and shall be subject to federal income tax
on the same amounts, in the same manner and at the same time as would have been
the case if such Legal Defeasance had not occurred;

     (c) in the case of an election under Section 8.03, the Company shall have
delivered to the Trustee an Opinion of Counsel in the United States reasonably
acceptable to the Trustee confirming that the Holders of the outstanding
Securities of such Series shall not recognize income, gain or loss for federal
income tax purposes as a result of such Covenant Defeasance and shall 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 Covenant Defeasance had not occurred;

     (d) no Default or Event of Default with respect to that Series of
Securities shall have occurred and be continuing on the date of such deposit
(other than a Default or Event of Default resulting from the borrowing of funds
to be applied to such deposit) or insofar as Sections 6.01(e) and (f) are
concerned, at any time in the period ending on the 91st day after the date of
deposit (it being understood that this condition shall not be deemed satisfied
until the expiration of such period);

                                       34
<PAGE>

     (e) such Legal Defeasance or Covenant Defeasance shall not result in a
breach or violation of, or constitute a default under any material agreement or
instrument (other than this Indenture) to which the Company is a party or by
which the Company is bound;

     (f) the Company shall have delivered to the Trustee an Opinion of Counsel
to the effect that 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' rights generally;

     (g) the Company shall have delivered to the Trustee an Officers'
Certificate stating that the deposit was not made by the Company with the intent
of preferring the Holders over the other creditors of the Company with the
intent of defeating, hindering, delaying or defrauding any other creditors of
the Company or others; and

     (h) the Company shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for relating to the Legal Defeasance or the Covenant
Defeasance have been complied with.

     SECTION 8.05. Deposited Money and Government Securities to be Held in
Trust; Other Miscellaneous Provisions. Subject to Section 8.06, all money and
non-callable Government Securities (including the proceeds thereof) deposited
with the Trustee (or other qualifying trustee, collectively for purposes of this
Section 8.05, the "Trustee") pursuant to Section 8.04 in respect of the
outstanding Securities of that Series shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as Paying Agent) as the Trustee may determine, to
the Holders of such Securities of all sums due and to become due thereon in
respect of principal, premium, if any, and interest but such money need not be
segregated from other funds except to the extent required by law.

     The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the cash or non-callable Government
Securities deposited pursuant to Section 8.04 or the principal and interest
received in respect thereof other than any such tax, fee or other charge which
by law is for the account of the Holders of the outstanding Securities of that
Series.

     Anything in this Article 8 to the contrary notwithstanding, the Trustee
shall deliver or pay to the Company from time to time upon the written request
of the Company, and be relieved of all liability with respect to, any money or
non-callable Government Securities held by it as provided in Section 8.04 which,
in the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee (which may
be the opinion delivered under Section 8.04(a)), are in excess of the amount
thereof that would then be required to be deposited to effect an equivalent
Legal Defeasance or Covenant Defeasance.

     SECTION 8.06. Repayment to the Company. Any money deposited with the
Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the

                                       35

<PAGE>

principal of, premium, if any, and interest on any Security and remaining
unclaimed for one year after such principal, and premium, if any, or interest,
has become due and payable shall be paid to the Company on its written request
or (if then held by the Company) shall be discharged from such trust; and the
Holder of such Security shall thereafter, as an unsecured general creditor, look
only to the Company for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money, and all liability of the
Company as trustee thereof, shall thereupon cease; provided, however, that the
Trustee or such Paying Agent, before being required to make any such repayment,
may at the expense of the Company cause to be published once, in the New York
Times and The Wall Street Journal (national edition), notice that such money
remains unclaimed and that, after a date specified therein, which shall not be
less than 30 days from the date of such notification or publication, any
unclaimed balance of such money then remaining shall be repaid to the Company.

     SECTION 8.07. Reinstatement. If the Trustee or Paying Agent is unable to
apply any United States dollars or non-callable Government Securities in
accordance with Section 8.02 or 8.03, as the case may be, by reason of any order
or judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, then the obligations of the Company
under this Indenture, and the Securities shall be revived and reinstated as
though no deposit had occurred pursuant to Section 8.02 or 8.03 until such time
as the Trustee or Paying Agent is permitted to apply all such money in
accordance with Section 8.02 or 8.03, as the case may be; provided, however,
that, if the Company makes any payment of principal of, premium, if any, or
interest on any Security following the reinstatement of its obligations, the
Company shall be subrogated to the rights of the Holders of such Securities to
receive such payment from the money held by the Trustee or Paying Agent.

                                   ARTICLE 9

                        AMENDMENT, SUPPLEMENT AND WAIVER

     SECTION 9.01. Without Consent of Holders. Without the consent of any
Holder, the Company and the Trustee may amend or supplement this Indenture or
the Securities:

     (a) to evidence the succession of another Person to the Company pursuant to
Article 5 and the assumption by such successor of the Company's covenants,
agreements and obligations in this Indenture and in the Securities;

     (b) to surrender any right or power conferred upon the Company by this
Indenture, to add to the covenants of the Company such further covenants,
restrictions, conditions or provisions for the protection of the Holders of all
or any Series of Securities as the Board of Directors of the Company shall
consider to be for the protection of the Holders of such Securities, and to make
the occurrence, or the occurrence and continuance, of a default in respect of
any such additional covenants, restrictions, conditions or provisions a Default
or an Event of Default under this Indenture; provided, however, that with
respect to any such additional covenant, restriction, condition or provision,
such amendment may provide for a period of grace after default, which may be
shorter or longer than that allowed in the case of other Defaults, may provide
for an immediate enforcement upon such Default, may limit the remedies available
to

                                       36

<PAGE>

the Trustee upon such Default or may limit the right of Holders of a majority in
aggregate principal amount of the Securities of any Series to waive such
default;

     (c) to cure any ambiguity or correct or supplement any provision contained
in this Indenture, in any supplemental indenture or in any Securities that may
be defective or inconsistent with any other provision contained therein;

     (d) to convey, transfer, assign, mortgage or pledge any property to or with
the Trustee, or to make such other provisions in regard to matters or questions
arising under this Indenture as shall not adversely affect the interests of any
Holders of Securities of any Series;

     (e) to modify or amend this Indenture in such a manner as to permit the
qualification of this Indenture or any supplemental indenture hereto under the
TIA as then in effect;

     (f) to add or to change any of the provisions of this Indenture to provide
that Securities in bearer form may be registrable as to principal, to change or
eliminate any restrictions on the payment of principal or premium with respect
to Securities in registered form or of principal, premium or interest with
respect to Securities in bearer form, or to permit Securities in registered form
to be exchanged for Securities in bearer form, so as to not adversely affect the
interests of the Holders or any coupons of any Series in any material respect or
permit or facilitate the issuance of Securities of any Series in uncertificated
form;

     (g) to make any change in the provisions of this Indenture or any
supplemental indenture relating to subordination that would limit or terminate
the benefits available to any holder of Senior Indebtedness (as defined in the
applicable Board Resolution, supplemental indenture hereto or Officers'
Certificate related to such Series of Subordinated Securities) under such
provisions (but only if each such holder of Senior Indebtedness under such
provisions consents to such change);

     (h) to add guarantees with respect to the Securities or to secure the
Securities;

     (i) to make any change that does not adversely affect the rights of any
Holder;

     (j) to add to, change or eliminate any of the provisions of this Indenture
with respect to one or more Series of Securities, so long as any such addition,
change or elimination not otherwise permitted under this Indenture shall (x)
neither apply to any Security of any Series created prior to the execution of
such supplemental indenture and entitled to the benefit of such provision nor
modify the rights of the Holders of any such Security with respect to the
benefit of such provision or (y) become effective only when there is no such
Security outstanding;

     (k) to conform the text of this Indenture to any provision of this
description of debt securities or any description of debt securities contained
in the prospectus supplement to the extent that such provision was intended to
be a verbatim recitation of the Indenture;

     (l) to evidence and provide for the acceptance of appointment by a
successor or separate Trustee with respect to the Securities of one or more
Series and to add to or change any

                                       37

<PAGE>

of the provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of this Indenture by more than one Trustee; or

     (m) to establish the form or terms of Securities and coupons of any Series
pursuant to Article 2.

     Upon the request of the Company accompanied by a resolution of its Board of
Directors authorizing the execution of any such amended or supplemental
Indenture, and upon receipt by the Trustee of the documents described in Section
9.06, the Trustee shall join with the Company in the execution of any amended or
supplemental Indenture authorized or permitted by the terms of this Indenture
and to make any further appropriate agreements and stipulations that may be
therein contained, but the Trustee shall not be obligated to enter into such
amended or supplemental Indenture that affects its own rights, duties or
immunities under this Indenture or otherwise.

     SECTION 9.02. With Consent of Holders of Securities. The Company and the
Trustee may amend or supplement this Indenture or the Securities of any Series
with the consent of the Holders of at least a majority in principal amount of
the Securities of such Series then outstanding voting as a single class
(including consents obtained in connection with a tender offer or exchange offer
for Securities), and, subject to Sections 6.02, 6.04 and 6.07, any existing
Default or Event of Default (other than a Default or Event of Default in the
payment of the principal of, premium, if any, or interest on the Securities
(except a payment default resulting from an acceleration that has been
rescinded) or compliance with any provision of this Indenture or the Securities
of any Series may be waived with the consent of the Holders of a majority in
principal amount of the then outstanding Securities of such Series voting as a
single class (including consents obtained in connection with or a tender offer
or exchange offer for the Securities).

     Upon the request of the Company accompanied by a resolution of its Board of
Directors authorizing the execution of any such amended or supplemental
indenture, and upon the filing with the Trustee of evidence satisfactory to the
Trustee of the consent of the Holders of Securities as aforesaid, and upon
receipt by the Trustee of the documents described in Section 9.06, the Trustee
shall join with the Company in the execution of such amended or supplemental
Indenture unless such amended or supplemental indenture affects the Trustee's
own rights, duties or immunities under this Indenture or otherwise, in which
case the Trustee may, but shall not be obligated to, enter into such amended or
supplemental indenture.

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

     After an amendment, supplement or waiver under this Section 9.02 becomes
effective, the Company shall mail to the Holders of Securities affected thereby
a notice briefly describing the amendment, supplement or waiver. Any failure of
the Company to mail such notice, or any defect therein, shall not, however, in
any way impair or affect the validity of any such amended or supplemental
Indenture or waiver. However, without the consent of the Holders of all of the

                                       38

<PAGE>

affected Securities, an amendment, supplement or waiver may not (with respect to
any Security of any Series held by a non-consenting Holder):

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

     (b) reduce the principal amount of or extend the Stated Maturity of any
Security, or alter the provisions with respect to the redemption of the
Securities;

     (c) reduce the rate of or extend the time for payment of interest on any
Securities;

     (d) waive a Default or Event of Default in the payment of principal of or
premium, if any, or interest on the Securities (except a rescission of
acceleration of the Securities by the Holders of at least a majority in
aggregate principal amount of the Securities then outstanding and a waiver of
the payment default that resulted from such acceleration);

     (e) make any Security payable in money other than that stated in the
Securities;

     (f) make any change in Section 6.04 or 6.07;

     (g) waive a redemption payment with respect to any Security; or

     (h) make any change in the foregoing amendment and waiver provisions of
this Article 9.

     Notwithstanding the foregoing, any amendment to the provisions of Article
10 of this Indenture with respect to any Series of Securities shall require the
consent of the Holders of at least 75% in aggregate amount of Securities of such
Series then outstanding (including consents obtained in connection with a tender
offer or exchange for such Securities, if such amendment would adversely affect
the rights of the Holders of the Securities of such Series.

     SECTION 9.03. Compliance with Trust Indenture Act. Every amendment or
supplement to this Indenture or the Securities shall comply with the TIA 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 Security shall bind the Holder and
every subsequent Holder of that Security or portion of the Security that
evidences the same debt as the consenting Holder's Security, even if notation of
the consent or waiver is not made on the Security. However, any such Holder or
subsequent Holder may revoke the consent or waiver as to such Holder's Security
or portion of the Security if the Trustee receives the notice of revocation
before the date the amendment or waiver becomes effective. After an amendment or
waiver becomes effective, it shall bind every Holder. An amendment or waiver
becomes effective once both (i) the requisite number of consents have been
received by the Company or the Trustee and (ii) such amendment or waiver has
been executed by the Company and the Trustee.

     The Company may, but shall not be obligated to, fix a record date for the
purpose of determining the Holders entitled to give their consent or take any
other action described above or

                                       39

<PAGE>

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 Holders 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 be valid or
effective for more than 120 days after such record date.

     SECTION 9.05. Notation on or Exchange of Securities. The Trustee may place
an appropriate notation about an amendment, supplement or waiver on any Security
thereafter authenticated. The Company in exchange for all Securities may issue
and the Trustee shall authenticate new Securities that reflect the amendment,
supplement or waiver.

     Failure to make the appropriate notation or issue a new Security shall not
affect the validity and effect of such amendment, supplement or waiver.

     SECTION 9.06. Trustee to Sign Amendments, Etc.. The Trustee shall sign any
amended or supplemental Indenture authorized pursuant to this Article 9 if the
amendment or supplement does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. The Company may not sign an amendment
or supplemental Indenture until the Board of Directors approves it. In executing
any amended or supplemental indenture the Trustee shall be entitled to receive
and (subject to Section 7.01) shall be fully protected in relying upon, in
addition to the documents required by Section 10.04, an Officers' Certificate
and an Opinion of Counsel stating that the execution of such amended or
supplemental indenture is authorized or permitted by this Indenture, that it is
not inconsistent herewith, and that it will be valid and binding upon the
Company in accordance with its terms.

                                   ARTICLE 10

                                  SUBORDINATION

     SECTION 10.01. Securities Subordinated to Senior Indebtedness. The Company
covenants and agrees, and each Holder of Securities by his acceptance thereof,
likewise covenants and agrees, that the indebtedness evidenced by the Securities
and the payment of the principal of, premium, if any and interest on each and
all of the Securities is hereby expressly subordinated, to the extent and in the
manner hereinafter set forth, in right of payment to the prior payment in full
of Senior Indebtedness.

     Anything in this Indenture or in the Securities to the contrary
notwithstanding, the indebtedness evidenced by the Securities shall be
subordinate and junior in right of payment, to the extent and in the manner
hereinafter set forth, to all Senior Indebtedness. Senior Indebtedness shall
continue to be Senior Indebtedness and entitled to the benefits of these
subordination provisions irrespective of any amendment, modification or waiver
of any term of Senior Indebtedness or extension or renewal of Senior
Indebtedness.

     (a) In the event the Company shall default in the payment of any Senior
Indebtedness when the same becomes due and payable, whether at maturity or on a
date fixed for prepayment

                                       40

<PAGE>

or by declaration or otherwise, then, unless and until such default shall have
been cured or waived or shall have ceased to exist, no direct or indirect
payment (in cash, property or securities or by set-off or otherwise) shall be
made or agreed to be made on account of the principal of, premium, if any, or
interest on the Securities, or as a sinking fund for the Securities, or in
respect of any redemption, retirement, purchase or other acquisition of any of
the Securities.

     (b) Upon the happening of an event of default with respect to any Senior
Indebtedness, permitting the holders thereof to accelerate the maturity thereof
(other than under circumstances when the terms of Section 10.01(a) are
applicable), then, unless and until such event of default shall have been cured
or waived or shall have ceased to exist, no direct or indirect payment (in cash,
property or securities or by set-off or otherwise) shall be made or agreed to be
made on account of the principal of, or premium, if any, or interest on the
Securities, or as a sinking fund for the Securities, or in respect of any
redemption, retirement, purchase or other acquisition of any of the Securities,
during any period:

          (i) of 90 days after written notice of such default shall have been
     given to the Company by any holder of Senior Indebtedness; or

          (ii) in which any judicial proceeding shall be pending in respect of
     such default and a notice of acceleration of the maturity of such Senior
     Indebtedness shall have been transmitted to the Company in respect of such
     default.

     (c) In the event of

          (i) any insolvency, bankruptcy, receivership, liquidation,
     reorganization, readjustment, composition or other similar proceeding
     relating to the Company, its creditors or its property;

          (ii) any proceeding for the liquidation, dissolution or other
     winding-up of the Company, voluntary or involuntary, whether or not
     involving insolvency or bankruptcy proceedings;

          (iii) any assignment by the Company for the benefit of creditors; or

          (iv) any other marshalling of the assets of the Company.

     all Senior Indebtedness (including any interest accruing after the
     commencement of such proceedings) shall first be paid in full before any
     payment or distribution, whether in cash, securities or other property,
     shall be made to any Holder of Securities on account of the Securities. Any
     payment or distribution, whether in cash, securities or other property
     (other than securities of the Company or any other corporation provided for
     by a plan of reorganization or readjustment the payment of which is
     subordinate, at least to the extent provided in this Article 10 with
     respect to the Securities, to the payment of all Senior Indebtedness at the
     time outstanding and to any securities issued in respect thereof under any
     such plan of reorganization or readjustment), which would otherwise (but
     for the provisions of this Article 10) be payable or deliverable in respect
     of the Securities shall be paid or delivered directly to the holders of
     Senior Indebtedness in accordance with the

                                       41

<PAGE>

     priorities then existing among such holders until all Senior Indebtedness
     (including any interest thereon accruing after the commencement of any such
     proceedings) shall have been paid in full.

     (d) In the event that any Security shall be declared due and payable as the
result of the occurrence of any one or more defaults in respect thereof, under
circumstances when the terms of Section 10.01(c) are not applicable, no payment
shall be made in respect of any Securities unless and until all Senior
Indebtedness shall have been paid in full or such declaration and its
consequences shall have been rescinded and all such defaults shall have been
remedied or waived.

     (e) If any payment or distribution of any character or any security,
whether in cash, securities or other property (other than securities of the
Company or any other corporation provided for by a plan of reorganization or
readjustment the payment of which is subordinate, at least to the extent
provided in the provisions of this Article 10 with respect to the Securities, to
the payment of all Senior Indebtedness at the time outstanding and to any
securities issued in respect thereof under any such plan or reorganization or
readjustment), shall be received by any Holder of Securities in contravention of
any terms hereof and before all the Senior Indebtedness shall have been paid in
full, such payment or distribution or security shall be received in trust for
the benefit of, and shall be paid over or delivered and transferred to, the
holders of the Senior Indebtedness at the time outstanding, in accordance with
the priorities then existing among such holders for application to the payment
of all Senior Indebtedness remaining unpaid, or, if applicable, to any trustee
in bankruptcy, receiver, liquidating trustee, custodian, assignee, agent or
other Person making paying or distribution of assets of the Company, to the
extent necessary to pay all such Senior Indebtedness in full. In the event of
the failure of any Holder of Securities to endorse or assign any such payment,
distribution or security, each holder of Senior Indebtedness is hereby
irrevocably authorized to endorse or assign the same.

     (f) Nothing contained herein shall impair, as between the Company and the
Holder of any Securities, the obligation of the Company to pay to the Holder
thereof the principal thereof and interest thereon as and when the same shall
become due and payable in accordance with the terms of such Security, or prevent
the Holder of any Securities from exercising all rights, powers and remedies
otherwise permitted by applicable law or pursuant to the terms of this Indenture
and the Security, upon a default or Event of Default under this Indenture, all
subject to the rights of the holders of the Senior Indebtedness to receive cash,
securities or other property otherwise payable or deliverable to the Holders of
the Securities.

     (g) Senior Indebtedness shall not be deemed to have been paid in full
unless the holders thereof shall have received cash equal to the amount of such
Senior Indebtedness then outstanding. Upon the payment in full of all Senior
Indebtedness, the Holders of Securities shall be subrogated to all rights of any
holders of Senior Indebtedness to receive any further payments or distributions
applicable to the Senior Indebtedness until all amounts owing on the Securities
shall have been paid in full, and such payments or distributions received by the
holders of the Securities by reason of such subrogation, of cash, securities or
other property which otherwise would be paid or distributed to the holders of
Senior Indebtedness, shall, as between the Company and its creditors other than
the holders of Senior Indebtedness, on the one hand, and

                                       42

<PAGE>

the Holders of Securities, on the other hand, be deemed to be a payment by the
Company on account of Senior Indebtedness and not on account of Securities.

     The Company shall give prompt written notice to the Trustee of any
insolvency, bankruptcy, receivership, liquidation, reorganization, readjustment,
composition or other similar proceeding relating to the Company within the
meaning of this Section 10.01. Upon any payment or distribution of assets of the
Company referred to in this Article 10, the Trustee, subject to the provisions
of Section 7.01, and the Holders of Securities shall be entitled to rely upon a
certificate of the trustee in bankruptcy, receiver, assignee for the benefit of
creditors or other liquidating agent making such payment or distribution,
delivered to the Trustee or to the Holders of Securities, for the purpose of
ascertaining the person entitled to participate in such distribution, the
holders of the Senior Indebtedness and other indebtedness of the Company, the
amount thereof or payable thereon, the amount or amounts paid or distributed
thereon and all other facts pertinent thereto or to this Article 10.

     In the event that the Trustee determines, in good faith, that further
evidence is required with respect to the right of any person as a holder of
Senior Indebtedness to participate in any payment or distribution pursuant to
this Section 10.01, the Trustee may request such person to furnish evidence to
the reasonable satisfaction of the Trustee as to the amount of Senior
Indebtedness held by such person, as to the extent to which such person is
entitled to participate in such payment or distribution, and as to other facts
pertinent to the rights of such person under this Section 10.01, and if such
evidence is not furnished, the Trustee may defer any payment to such person
pending judicial determination as to the right of such person to receive such
payment.

     SECTION 10.02. Effectuation of Subordination by Trustee. Each Holder of
Securities, by his acceptance thereof, authorizes and directs the Trustee in his
behalf to take such action as may be necessary or appropriate to effectuate, as
between the Holders of the Securities and the holders of Senior Indebtedness,
the subordination provided in this Article 10 and appoints the Trustee his
attorney-in-fact for any and all such purposes.

     SECTION 10.03. Knowledge of Trustee. Nothing contained in this Article 10
or elsewhere in this Indenture, shall (a) prevent the Company from setting aside
in trust or depositing with the Trustee or any Paying Agent, at any time, except
during the pendency of any of the proceedings or upon the happening or
continuance of any of the events referred to in Section 10.01, moneys for the
payment of principal of, or premium, if any, or interest on, the Securities, or
(b) prevent the application by the Trustee or Paying Agent of any moneys
deposited with it hereunder by or on behalf of the Company to the payment of or
on account of the principal of, or the premium, if any, or interest on the
Securities, if the Trustee or the Paying Agent, as the case may be, did not have
written notice of any event prohibiting such application by the close of
business on the Business Day immediately prior to the date of such application.

     Notwithstanding the provisions of this Article or any other provisions of
this Indenture, the Trustee shall not be charged with knowledge of the existence
of any Senior Indebtedness or of any default or event of default with respect to
any Senior Indebtedness or any fact or facts which would prohibit the making of
any payment of moneys to or by the Trustee, or the taking of

                                       43

<PAGE>

any other action by the Trustee, unless and until the Trustee shall have
received written notice thereof from the Company, any Holder of Securities, any
paying or conversion agent of the Company or the holder or representative of any
class of Senior Indebtedness who shall have been certified by the Company or
otherwise established to the reasonable satisfaction of the Trustee to be such
holder or representative or by the trustee under any indenture pursuant to which
Senior Indebtedness shall be outstanding.

     SECTION 10.04. Trustee's Relation to Senior Indebtedness. The Trustee shall
be entitled to all rights set forth in this Article 10 with respect to any
Senior Indebtedness at the time held by it, to the same extent as any other
holder of Senior Indebtedness, and nothing in Section 7.11 or elsewhere in this
Indenture shall deprive the Trustee of any of its rights as such holder. Nothing
in this Article 10 shall subordinate to Senior Indebtedness the claims of, or
payments to, the Trustee under or pursuant to Section 7.07.

     With respect to the holders of Senior Indebtedness, the Trustee undertakes
to perform or to observe only such of its covenants and obligations as are
specifically set forth in this Article 10 and no implied covenants or
obligations with respect to the holders of Senior Indebtedness shall be read
into this Indenture against the Trustee and the Trustee shall not be deemed to
owe any fiduciary duty to the holders of Senior Indebtedness and shall not be
liable to any holder of Senior Indebtedness if it shall pay over or deliver to
Holders, the Company or any other Person monies or assets to which any holder of
Senior Indebtedness shall be entitled by virtue of this Article or otherwise.

     SECTION 10.05. Rights of Holders of Senior Indebtedness Not Impaired. No
right of any present or future holder of any Senior Indebtedness to enforce the
subordination herein shall at any time or in any way be prejudiced or impaired
by any act or failure to act on the part of the Company or by any non-compliance
by the Company with the terms, provisions and covenants of this Indenture,
regardless of any knowledge thereof any such holder may have or be otherwise
charged with.

                                   ARTICLE 11

                                NOTE GUARANTEES

     SECTION 11.01. Guarantee. Subject to this Article 10, the Guarantor hereby
unconditionally guarantees to each Holder of Securities issued by AREP Finance,
authenticated and delivered by the Trustee and to the Trustee and its
successors and assigns, irrespective of the validity and enforceability of this
Indenture, the Securities or the obligations of the Company hereunder or
thereunder, that:

          the principal of, premium and liquidated damages, if any, and interest
     on, the Notes will be promptly paid in full when due, whether at maturity,
     by acceleration, redemption or otherwise, and interest on the overdue
     principal of and interest on the Notes, if any, if lawful, and all other
     obligations of the Company to the Holders or the Trustee hereunder or
     thereunder will be promptly paid in full or performed, all in accordance
     with the terms hereof and thereof; and

          in case of any extension of time of payment or renewal of any
     Securities or any of such other obligations, that same will be promptly
     paid in full when due or performed in accordance with the terms of the
     extension or renewal, whether at stated maturity, by acceleration or
     otherwise.

     Failing payment when due of any amount so guaranteed or any performance so
guaranteed for whatever reason, the Guarantor will pay the same immediately.
The Guarantor agrees that this is a guarantee of payment and not a guarantee of
collection.

     The Guarantor hereby agrees that its obligations hereunder are
unconditional, irrespective of the validity, regularity or enforceability of
the Securities or this Indenture, the absence of any action to enforce the
same, any waiver or consent by any Holder of the Securities with respect to any
provisions hereof or thereof, the recovery of any judgment against the Company,
any action to enforce the same or any other circumstance which might otherwise
constitute a legal or equitable discharge or defense of a guarantor. The
Guarantor hereby waives diligence, presentment, demand of payment, filing of
claims with a court in the event of insolvency or bankruptcy of the Company,
any right to require a proceeding first against the Company, protest, notice
and all demands whatsoever and covenant that this Guarantee will not be
discharged except by complete performance of the obligations contained in the
Securities and this Indenture.

     If any Holder or the Trustee is required by any court or otherwise to
return to the Company, the Guarantor or any custodian, trustee, liquidator or
other similar official acting in relation to either the Company or the
Guarantor, any amount paid by either to the Trustee or such Holder, this
Guarantee, to the extent theretofore discharged, will be reinstated in full
force and effect.

     The Guarantor agrees that it will not be entitled to any right of
subrogation in relation to the Holders in respect of any obligations guaranteed
hereby until payment in full of all obligations guaranteed hereby. The
Guarantor further agrees that, as between the Guarantor, on the one hand, and
the Holders and the Trustee, on the other hand, (1) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article 6
hereof for the purposes of this Guarantee, notwithstanding any stay, injunction
or other prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (2) in the event of any declaration of acceleration of
such obligations as provided in Article 6 hereof, such obligations (whether or
not due and payable) will forthwith become due and payable by the Guarantor for
the purpose of this Guarantee.

     SECTION 11.02. Limitation on Guarantor Liability. The Guarantor, and by
its acceptance of Securities, each Holder, hereby confirms that it is the
intention of all such parties that the Guarantee not constitute a fraudulent
transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or
state law to the extent applicable to any Guarantee. To effectuate the
foregoing intention, the Trustee, the Holders and the Guarantor hereby
irrevocably agree that the obligations of such Guarantor will be limited to the
maximum amount that will, after giving effect to such maximum amount and all
other contingent and fixed liabilities of the Guarantor that are relevant under
such laws.

     SECTION 11.03. Execution and Delivery of Guarantee. To evidence its
Guarantee set forth in Section 10.01 hereof, the Guarantor hereby agrees that a
notation of such Note Guarantee will be endorsed by an Officer of the Guarantor
on each Security authenticated and delivered by the Trustee and that this
Indenture will be executed on behalf of the Guarantor by one of its Officers.

     The Guarantor hereby agrees that its Guarantee set forth in Section 10.01
hereof will remain in full force and effect notwithstanding any failure to
endorse on the Securities a notation of such Guarantee.

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

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

                                   ARTICLE 12

                                 MISCELLANEOUS

     SECTION 12.01. Trust Indenture Act Controls. If any provision of this
Indenture limits, qualifies or conflicts with the duties imposed by TIA Section
318(c), the imposed duties shall control.

     SECTION 12.02. Notices. Any notice or communication by the Company or the
Trustee shall be in writing and delivered in person or mailed by first class
mail (registered or certified, return receipt requested) or by overnight air
courier guaranteeing next day delivery, as follows:

     If to the Company:

          American Real Estate Partners, L.P.

                                       44
<PAGE>

          American Real Estate Finance Corp.
          100 South Bedford Road
          Mount Kisco, New York 10549
          Telecopy: (914) 242-9282
          Attention: Felicia Buebel, Esq.

     With a copy to:

          DLA Piper Rudnick Gray Cary US LLP
          1251 Avenue of the Americas
          New York, New York 10020
          Telecopy: (212) 835-6001
          Attention: Steven L. Wasserman, Esq.

     If to the Trustee:

          Wilmington Trust Company Rodney Square North
          1100 North Market Street
          Wilmington, Delaware 19890
          Telecopier No.: (302) 636-4140
          Attention: Michael G. Oller

     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 to a Holder shall be mailed to its address
shown on the register kept by the Registrar and shall be sufficiently given if
so mailed within the time prescribed.

     Failure to mail a notice or communication to a Holder or any defect in it
shall not affect its sufficiency with respect to other Holders. If a notice or
communication is mailed in the manner provided above within the time prescribed,
it is duly given, whether or not the addressee receives it.

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

     SECTION 12.03. Communication by Holders of Securities with Other Holders of
Securities. Holders may communicate pursuant to TIA Section 312(b) with other
Holders with respect to their rights under this Indenture or the Securities. The
Company, the Trustee, the Registrar and anyone else shall have the protection of
TIA Section 312(c).

     SECTION 12.04. Certificate and Opinion as to Conditions Precedent. Upon any
request or application by the Company to the Trustee to take any action under
this Indenture, the Company shall furnish, at the request of the Trustee, to the
Trustee:

                                       45

<PAGE>

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

     (b) 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 and covenants have been satisfied.

     SECTION 12.05. Statements Required in Certificate or Opinion. Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture shall include:

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

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

     (c) a statement that, in the opinion of such person, he or she 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
satisfied; and

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

     SECTION 12.06. Rules by Trustee, Paying Agent and Registrar. The Trustee
may make reasonable rules for action by or at a meeting of Holders. The
Registrar or Paying Agent may make reasonable rules and set reasonable
requirements for its functions.

     SECTION 12.07. No Personal Liability of Directors, Officers, Employees and
Stockholders. No director, officer, employee, incorporator or stockholder of the
Company as such shall have any liability for any obligations of the Company
under the Securities or this Indenture or for any claim based on, in respect of,
or by reason of, such obligations or their creation. Each Holder of Securities
by accepting a Security waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Securities.

     SECTION 12.08. GOVERNING LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK
SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE AND THE SECURITIES WITHOUT
GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT
THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     SECTION 12.09. No Adverse Interpretation of Other Agreements. This
Indenture may not be used to interpret any other indenture, loan or debt
agreement of the Company or its Subsidiaries or of any other Person. Any such
indenture, loan or debt agreement may not be used to interpret this Indenture.

                                       46

<PAGE>

     SECTION 12.10. Successors. All agreements of the Company in this Indenture
and the Securities shall bind its successors. All agreements of the Trustee in
this Indenture shall bind its successors.

     SECTION 12.11. Severability. In case any provision in this Indenture or in
the Securities shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

     SECTION 12.12. Counterpart Originals. The parties may sign any number of
copies of this Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement.

     SECTION 12.13. Table of Contents, Headings, Etc. The Table of Contents,
Cross-Reference Table and Headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be
considered a part of this Indenture and shall in no way modify or restrict any
of the terms or provisions hereof.

                         [Signatures on following page]

                                       47

<PAGE>

                                   SIGNATURES

Dated as of __________ __, 20[__]       AMERICAN REAL ESTATE PARTNERS, L.P.

                                        By: American Property Investors, Inc. ,
                                            its general partner

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

                       [Signature Page to Base Indenture]
<PAGE>

Dated as of __________ __, 20[__]       AMERICAN REAL ESTATE FINANCE CORP.

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

                       [Signature Page to Base Indenture]

<PAGE>

Dated as of __________ __, 20[__]       WILMINGTON TRUST COMPANY

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

                       [Signature Page to Base Indenture]exv4w1

 

Exhibit 4.1

 

BAXTER FINCO B.V.

as Issuer

And

BAXTER INTERNATIONAL INC.

as Guarantor

And

J. P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION

as Trustee

INDENTURE

Dated as of October 5, 2005

 

 

 

RECONCILIATION AND TIE BETWEEN TRUST INDENTURE ACT OF 1939,

AS AMENDED, AND INDENTURE CROSS-REFERENCE TABLE1

	 	 	 
	TIA Section	 	Indenture Section
	310(a)(1)
	 	7.09
	(a)(2)
	 	7.09
	(a)(3)
	 	N.A.
	(a)(4)
	 	N.A.
	(a)(5)
	 	7.09
	(b)
	 	7.09, 7.10(d)
	(c)
	 	N.A.
	311(a)
	 	7.14
	(b)
	 	7.14
	(c)
	 	N.A.
	312(a)
	 	8.01
	(b)
	 	8.02
	(c)
	 	8.02
	313(a)
	 	8.03
	(b)
	 	8.03
	(c)
	 	8.03
	(d)
	 	8.03
	314(a)(1)
	 	8.04
	(a)(2)
	 	8.04
	(a)(3)
	 	8.04
	(a)(4)
	 	5.11, 8.04
	(b)
	 	N.A.
	(c)(1)
	 	1.02
	(c)(2)
	 	1.02
	(c)(3)
	 	N.A.
	(d)
	 	N.A.
	(e)
	 	1.02
	(f)
	 	N.A.
	315(a)
	 	7.01(a)
	(b)
	 	7.02
	(c)
	 	7.01(b)
	(d)
	 	7.01(a), (c)
	(e)
	 	6.08
	316(a)(1)
	 	6.02, 6.07
	(a)(2)
	 	N.A.
	(a)(last sentence)
	 	9.03
	(b)
	 	11.02
	(c)
	 	9.02
	317(a)
	 	6.03
	(b)
	 	5.10

 

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

I

 

 

	 	 	 
	318(a)
	 	1.06
	(b)
	 	N.A.
	(c)
	 	N.A.

II

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	I.	 	   DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	 	 	1	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	1.01	 	 	Definitions
	 	 	1	 
	 

	 	 	1.02	 	 	Compliance Certificates and Opinions
	 	 	9	 
	 

	 	 	1.03	 	 	Form of Documents Delivered to Trustee
	 	 	10	 
	 

	 	 	1.04	 	 	Notices, Etc., to Trustee, the Company and the Guarantor
	 	 	10	 
	 

	 	 	1.05	 	 	Notice to Holders; Waiver
	 	 	11	 
	 

	 	 	1.06	 	 	Conflict With Trust Indenture Act.
	 	 	12	 
	 

	 	 	1.07	 	 	Effect of Headings and Table of Contents
	 	 	12	 
	 

	 	 	1.08	 	 	Successors and Assigns
	 	 	12	 
	 

	 	 	1.09	 	 	Separability Clause
	 	 	12	 
	 

	 	 	1.10	 	 	Benefits of Indenture
	 	 	12	 
	 

	 	 	1.11	 	 	Governing Law
	 	 	12	 
	 

	 	 	1.12	 	 	Legal Holidays
	 	 	12	 
	 

	 	 	1.13	 	 	Moneys of Different Currencies to be Segregated
	 	 	13	 
	 

	 	 	1.14	 	 	Payment to be in Proper Currency
	 	 	13	 
	 

	 	 	1.15	 	 	Counterparts
	 	 	13	 
	 

	 	 	1.16	 	 	No Adverse Interpretation of Other Agreements
	 	 	13	 
	 

	 	 	1.17	 	 	Rules of Construction
	 	 	13	 
	 
	 	 	 	 	 	 	 	 	 	 
	II.	 	   SECURITY FORMS	 	 	14	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	2.01	 	 	Forms Generally
	 	 	14	 
	 

	 	 	2.02	 	 	Form of Trustee’s Certificate of Authentication
	 	 	14	 
	 

	 	 	2.03	 	 	Forms of Securities
	 	 	15	 
	 
	 	 	 	 	 	 	 	 	 	 
	III.	 	   THE SECURITIES	 	 	15	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.01	 	 	Amount Unlimited; Issuable in Series
	 	 	15	 
	 

	 	 	3.02	 	 	Denominations
	 	 	19	 
	 

	 	 	3.03	 	 	Execution, Authentication, Delivery and Dating
	 	 	19	 
	 

	 	 	3.04	 	 	Temporary Securities
	 	 	21	 
	 

	 	 	3.05	 	 	Registration; Registration of Transfer and Exchange
	 	 	22	 
	 

	 	 	3.06	 	 	Mutilated, Destroyed, Lost and Stolen Securities
	 	 	26	 
	 

	 	 	3.07	 	 	Payment of Defaulted Interest; Interest Rights Preserved
	 	 	27	 
	 

	 	 	3.08	 	 	Persons Deemed Owners
	 	 	29	 
	 

	 	 	3.09	 	 	Cancellation
	 	 	29	 
	 

	 	 	3.10	 	 	Computation of Interest
	 	 	29	 
	 

	 	 	3.11	 	 	CUSIP Numbers
	 	 	29	 
	 
	 	 	 	 	 	 	 	 	 	 
	IV.	 	     REDEMPTION OF SECURITIES AND SINKING FUNDS	 	 	30	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	4.01	 	 	Applicability of Right of Redemption
	 	 	30	 
	 

	 	 	4.02	 	 	Election to Redeem; Notice of Redemption; Partial Redemption
	 	 	30	 
	 

	 	 	4.03	 	 	Payment of Securities Called for Redemption
	 	 	31	 

i

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	4.04	 	 	Deposit of Funds for Redemption of Securities
	 	 	32	 
	 

	 	 	4.05	 	 	Applicability of Sinking Fund
	 	 	32	 
	 

	 	 	4.06	 	 	Satisfaction of Mandatory Sinking Fund Payments with Securities
	 	 	33	 
	 

	 	 	4.07	 	 	Redemption of Securities for Sinking Funds
	 	 	33	 
	 
	 	 	 	 	 	 	 	 	 	 
	V.	 	   PARTICULAR COVENANTS	 	 	34	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	5.01	 	 	Payments of Principal, Premium, if any, and Interest, if any, and
Additional Amounts
	 	 	34	 
	 

	 	 	5.02	 	 	Office or Agency for Certain Purposes
	 	 	34	 
	 

	 	 	5.03	 	 	Maintenance of Corporate Existence and Payment of Taxes
	 	 	35	 
	 

	 	 	5.04	 	 	Additional Amounts
	 	 	35	 
	 

	 	 	5.05	 	 	Restriction on the Creation of Secured Debt
	 	 	37	 
	 

	 	 	5.06	 	 	Restriction on Sale and Leaseback Transactions
	 	 	40	 
	 

	 	 	5.07	 	 	Restriction on Transfer of Principal Facility to Subsidiaries Other
Than Restricted Subsidiaries
	 	 	40	 
	 

	 	 	5.08	 	 	Waiver of Certain Covenants
	 	 	41	 
	 

	 	 	5.09	 	 	Appointments to Fill Vacancies in Trustee’s Office
	 	 	41	 
	 

	 	 	5.10	 	 	Provisions as to Paying Agent
	 	 	41	 
	 

	 	 	5.11	 	 	Annual Officers’ Certificate to Trustee
	 	 	42	 
	 

	 	 	5.12	 	 	Rule 144A Information
	 	 	42	 
	 

	 	 	5.13	 	 	Further Assurances
	 	 	43	 
	 
	 	 	 	 	 	 	 	 	 	 
	VI.	 	   REMEDIES OF THE TRUSTEE AND HOLDERS ON EVENT OF DEFAULT	 	 	43	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	6.01	 	 	Events of Default
	 	 	43	 
	 

	 	 	6.02	 	 	Acceleration of Maturity; Rescission and Annulment
	 	 	44	 
	 

	 	 	6.03	 	 	Collection of Indebtedness by Trustee; Trustee May Prove Debt
	 	 	45	 
	 

	 	 	6.04	 	 	Application of Proceeds
	 	 	46	 
	 

	 	 	6.05	 	 	Limitations on Suits by Holders
	 	 	46	 
	 

	 	 	6.06	 	 	Powers and Remedies Cumulative; Delay or Omission Not Waiver
	 	 	47	 
	 

	 	 	6.07	 	 	Control by Holders; Waiver of Default
	 	 	47	 
	 

	 	 	6.08	 	 	Undertaking for Costs
	 	 	48	 
	 
	 	 	 	 	 	 	 	 	 	 
	VII.	 	   CONCERNING THE TRUSTEE	 	 	48	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	7.01	 	 	Certain Duties and Responsibilities
	 	 	48	 
	 

	 	 	7.02	 	 	Notice of Defaults
	 	 	49	 
	 

	 	 	7.03	 	 	Certain Rights of Trustee
	 	 	49	 
	 

	 	 	7.04	 	 	Trustee Not Responsible for Recitals, Etc.
	 	 	51	 
	 

	 	 	7.05	 	 	Trustee and Others May Hold Securities
	 	 	51	 
	 

	 	 	7.06	 	 	Moneys Held by Trustee or Paying Agent
	 	 	51	 
	 

	 	 	7.07	 	 	Compensation of Trustee and Its Lien
	 	 	51	 
	 

	 	 	7.08	 	 	Right of Trustee to Rely on Certificate of Certain Officers
	 	 	52	 
	 

	 	 	7.09	 	 	Persons Eligible for Appointment As Trustee
	 	 	53	 
	 

	 	 	7.10	 	 	Resignation and Removal of Trustee; Appointment of Successor
	 	 	53	 
	 

	 	 	7.11	 	 	Acceptance of Appointment by Successor Trustee
	 	 	54	 
	 

	 	 	7.12	 	 	Merger, Conversion or Consolidation of Trustee
	 	 	55	 
	 

	 	 	7.13	 	 	Authenticating Agents
	 	 	55	 

ii

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	7.14	 	 	Preferential Collection of Claims
	 	 	57	 
	 
	 	 	 	 	 	 	 	 	 	 
	VIII.	 	   HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY	 	 	58	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	8.01	 	 	Guarantor and Company to Furnish Trustee Names and Addresses of Holders	 	 	58	 
	 

	 	 	8.02	 	 	Preservation of Information; Communications to Holders
	 	 	58	 
	 

	 	 	8.03	 	 	Reports by Trustee
	 	 	58	 
	 

	 	 	8.04	 	 	Reports by Guarantor and Company
	 	 	59	 
	 
	 	 	 	 	 	 	 	 	 	 
	IX.

	 	   CONCERNING THE HOLDERS
	 	 	59	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	9.01	 	 	Evidence of Action Taken by Holders
	 	 	59	 
	 

	 	 	9.02	 	 	Proof of Execution of Instruments and of Holding of Securities
	 	 	60	 
	 

	 	 	9.03	 	 	Securities Owned by Company or the Guarantor Deemed Not Outstanding
	 	 	61	 
	 

	 	 	9.04	 	 	Right of Revocation of Action Taken
	 	 	62	 
	 
	 	 	 	 	 	 	 	 	 	 
	X.

	 	   HOLDERS’ MEETINGS
	 	 	62	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	10.01	 	 	Purposes for Which Holders’ Meetings May be Called
	 	 	62	 
	 

	 	 	10.02	 	 	Call of Meetings by Trustee
	 	 	62	 
	 

	 	 	10.03	 	 	Company, Guarantor and Holders May Call Meeting
	 	 	63	 
	 

	 	 	10.04	 	 	Persons Entitled to Vote at Meeting
	 	 	63	 
	 

	 	 	10.05	 	 	Determination of Voting Rights; Conduct and Adjournment of Meeting
	 	 	63	 
	 

	 	 	10.06	 	 	Counting Votes and Recording Action of Meeting
	 	 	64	 
	 
	 	 	 	 	 	 	 	 	 	 
	XI.

	 	   SUPPLEMENTAL INDENTURES
	 	 	65	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	11.01	 	 	Supplemental Indentures Without Consent of Holders
	 	 	65	 
	 

	 	 	11.02	 	 	Supplemental Indentures With Consent of Holders
	 	 	66	 
	 

	 	 	11.03	 	 	Effect of Supplemental Indentures
	 	 	68	 
	 

	 	 	11.04	 	 	Notation on Securities in Respect of Supplemental Indentures
	 	 	68	 
	 

	 	 	11.05	 	 	Opinion of Counsel to Be Given Trustee
	 	 	68	 
	 
	 	 	 	 	 	 	 	 	 	 
	XII.

	 	   CONSOLIDATION, MERGER AND SALE
	 	 	69	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	12.01	 	 	Company and Guarantor May Consolidate or Merge, Etc.
	 	 	69	 
	 

	 	 	12.02	 	 	Conditions to Consolidation or Merger, Etc.
	 	 	69	 
	 

	 	 	12.03	 	 	Documents and Opinion to Be Furnished to the Trustee
	 	 	70	 
	 
	 	 	 	 	 	 	 	 	 	 
	XIII.

	 	   SATISFACTION AND DISCHARGE OF INDENTURE; DEFEASANCE; UNCLAIMED MONEYS
	 	 	70	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	13.01	 	 	Satisfaction and Discharge
	 	 	70	 
	 

	 	 	13.02	 	 	Defeasance and Covenant Defeasance
	 	 	72	 
	 

	 	 	13.03	 	 	Application by Trustee of Funds Deposited for Payment of Securities
	 	 	77	 
	 

	 	 	13.04	 	 	Repayment of Moneys Held by Paying Agent
	 	 	77	 
	 

	 	 	13.05	 	 	Return of Unclaimed Moneys
	 	 	77	 
	 

	 	 	13.06	 	 	Reinstatement
	 	 	78	 

iii

 

 

	 	 	 	 	 	 	 	 	 	 	 
	XIV.	 	IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS	 	 	78	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	14.01	 	 	Personal Immunity from Liability of Incorporators, Stockholders, Etc.
	 	 	78	 
	 
	 	 	 	 	 	 	 	 	 	 
	XV.	 	SUBMISSION TO JURISDICTION	 	 	78	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	15.01	 	 	Agent for Service: Submission to Jurisdiction
	 	 	78	 
	 

	 	 	15.02	 	 	Waiver of Immunities
	 	 	79	 
	 
	 	 	 	 	 	 	 	 	 	 
	XVI.	 	PARENT GUARANTEE	 	 	79	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	16.01	 	 	Execution and Delivery of Parent Guarantee
	 	 	79	 

iv

 

 

     INDENTURE, dated as of October 5, 2005, among Baxter Finco B.V., a private company with
limited liability organized under the laws of The Netherlands (the “Company”), Baxter
International Inc., a Delaware corporation (the “Guarantor”), and J. P. Morgan Trust
Company, National Association, a national banking association duly incorporated and existing under
the laws of the United States of America, as trustee (the “Trustee”).

     WHEREAS the Company has duly authorized the issue, in one or more series as in this Indenture
provided, from time to time of its debt securities (hereinafter called the “Securities”),
and the Guarantor has duly authorized the guarantee, by the Guarantor, to the extent so provided
for in accordance herewith, of certain Securities, and to provide the general terms and conditions
upon which the Securities and the related guarantees are to be authenticated, issued and delivered,
each of the Company and the Guarantor has duly authorized the execution and delivery of this
Indenture; and

     WHEREAS, the Trustee has the power to enter into this Indenture and to accept and execute the
trusts herein created.

     NOW THEREFORE, each party agrees as follows for the benefit of the other parties and for the
equal and ratable benefit of the Holders of the Securities:

  
I. DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

1.01 Definitions.

     The following terms (except as herein otherwise expressly provided or unless the context
otherwise requires) for all purposes of this Indenture and of any indenture supplemental hereto
shall have the respective meanings specified in this Section. All other terms used in this
Indenture which are defined (either directly or by reference) in the Trust Indenture Act (except as
herein otherwise expressly provided or unless the context otherwise requires) shall have the
meanings so assigned to such terms.

     “Additional Amounts” means any additional amounts which are required hereby or by any
Security, under circumstances specified herein or therein, to be paid by the Company or the
Guarantor in respect of certain taxes, assessments or other governmental charges imposed on Holders
specified therein and which are owing to such Holders.

     “Authenticating Agent” means any agent of the Trustee which at any time shall be appointed and
acting pursuant to the provisions of Section 7.13.

     “Authorized Newspaper” means a newspaper of general circulation in the specified place of
publication, or, if no such place is specified, in New York City, printed in the English language
or in an official language of the country of publication and customarily published on each Business
Day of the year, whether or not such newspaper is published on Saturdays, Sundays, or legal
holidays. Where successive publications are required to be made in Authorized Newspapers, the
successive publications may be made in the same or different newspapers in the same place of
publication meeting the foregoing requirements and in each case on any Business Day.

 

 

     “Authorized Officer” means, in the case of the Company, any Director or Managing Director of
the Company or, in the case of the Guarantor, the Chairman of the Board of Directors, the President
or any Vice President, the Treasurer, any Assistant Treasurer, the Secretary or any Assistant
Secretary of the Guarantor.

     “Bearer Security” means any Security in the form of bearer securities established pursuant to
Section 2.03 that is payable to bearer, including any coupons appertaining thereto, unless
(i) the context otherwise indicates or (ii) the term “coupon” is separately employed for purposes
of clarity.

     “Board of Directors” means the Board of Directors of the Company or the Guarantor, as the case
requires, or any duly authorized committee of such Board or any officers of the Company or the
Guarantor, as the case requires, duly authorized so to act by such Board.

     “Board Resolution” means a copy of a resolution or resolutions certified by, in the case of
the Company, an Authorized Officer, or, in the case of the Guarantor, or the Secretary or an
Assistant Secretary, or by another appropriate officer of the Company or the Guarantor, as the case
requires, to have been duly adopted by the Board of Directors of the Company or the Guarantor, as
the case requires, and to be in force and effect on the date of such certification and delivered to
the Trustee.

     “Business Day,” when used with respect to any Place of Payment or in conjunction with the name
of a city, means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which
banking institutions in that Place of Payment or city are authorized or obligated by or pursuant to
law, regulation or executive order to close, and shall otherwise mean each Monday, Tuesday,
Wednesday, Thursday and Friday which is not a day on which banking institutions at the place where
any specified act pursuant to this Indenture is to occur are authorized or obligated by or pursuant
to law, regulation or executive order to close.

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

     “Company Designation” has the meaning specified in Section 4.02.

     “Consolidated Net Tangible Assets” means the total amount of assets which would be included on
a consolidated balance sheet of the Guarantor and its subsidiaries under GAAP (less applicable
reserves and other properly deductible items) after deducting therefrom:

     (a) all short-term liabilities and liability items, except for indebtedness payable by its
terms more than one year from the date of incurrence thereof (or renewable or extendible at
the option of the obligor for a period ending more than one year after such date of
incurrence); and

     (b) all goodwill, trade names, trademarks, patents, unamortized debt discount, unamortized
expense incurred in the issuance of debt and other like intangibles (except prepaid
royalties).

2

 

     “Conversion Event” means the cessation of use of (i) a Foreign Currency both by the government
of the country or the confederation which issued such Foreign Currency and for the settlement of
transactions by a central bank or other public institutions of or within the international banking
community or (ii) any currency unit or composite currency for the purposes for which it was
established.

     “Corporate Trust Office” means the principal office of the Trustee at which at any time its
corporate trust business shall be administered, which office at the date hereof is located at 227
W. Monroe Street, Suite 2600, Chicago, Illinois 60606, Attention: Institutional Trust Services, or
such other address as the Trustee may designate from time to time by notice to the Holders, the
Company and the Guarantor, or the principal corporate trust office of any successor Trustee (or
such other address as such successor Trustee may designate from time to time by notice to the
Holders, the Company and the Guarantor).

     “corporation” includes corporations, associations, companies and business trusts.

     “coupon” means any interest coupon appertaining to a Bearer Security.

     “debt securities” means notes, bonds, debentures or other similar evidences of indebtedness
for money borrowed.

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

     “Depositary” means, with respect to the Securities of any series issuable or issued in whole
or part in the form of one or more Global Securities, the Person designated as Depositary pursuant
to Section 3.01 until a successor Depositary shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter “Depositary” shall mean or include
each Person who is then a Depositary hereunder, and if at any time there is more than one such
Person, “Depositary” as used with respect to the Securities of any such series shall mean
the Depositary with respect to the Securities of that series.

     “Dollar” and “$” mean the coin or currency of the United States which, at the time of payment,
is legal tender for the payment of public and private debts.

     “Dollar Determination Agent” means a New York clearing house bank appointed by the Company.

     “Event of Default” has the meaning specified in Section 6.01.

     “Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

     “Exchange Rate Agent” means the entity appointed by the Company or the Guarantor pursuant to
Section 9.02.

     “Foreign Currency” means a currency issued by the government of any country other than the
United States of America.

3

 

     “Funded Debt” means any obligation payable by its terms more than one year from the date of
incurrence thereof (or renewable or extendible at the option of the obligor for a period ending
more than one year after such date of incurrence), which under GAAP should be shown on the
consolidated balance sheet of the Guarantor as a liability.

     “GAAP” means, unless otherwise specified with respect to any Securities pursuant to
Section 3.01, such accounting principles as are generally accepted in the United States as
of the date or time of any computation required hereunder.

     “Global Security” means a Registered Security or Bearer Security evidencing all or part of a
series of Securities issued to the Depositary for such series in accordance with Section
3.03.

     “Government Obligations” means securities which are (i) direct obligations of the United
States or the other government or governments in the confederation which issued the Foreign
Currency in which the principal of or any premium or interest on the relevant Security or any
Additional Amounts in respect thereof shall be payable, in each case where the payment or payments
thereunder are supported by the full faith and credit of such government or governments or (ii)
obligations of a Person controlled or supervised by and acting as an agency or instrumentality of
the United States or such other government or governments, in each case where the timely payment or
payments thereunder are unconditionally guaranteed as a full faith and credit obligation by the
United States or such other government or governments, and which, in the case of (i) or (ii), are
not callable or redeemable at the option of the issuer or issuers thereof, and shall also include a
depository receipt issued by a bank or trust company as custodian with respect to any such
Government Obligation or a specific payment of interest on or principal of or other amount with
respect to any such Government Obligation held by such custodian for the account of the holder of a
depository receipt, provided that (except as required by law) such custodian is not authorized to
make any deduction from the amount payable to the holder of such depository receipt from any amount
received by the custodian in respect of the Government Obligation or the specific payment of
interest on or principal of or other amount with respect to the Government Obligation evidenced by
such depository receipt.

     “Guaranteed Series” means a series of Securities issued hereunder the terms of which, as
established pursuant to, or as contemplated by, Section 3.01, or pursuant to a supplemental
indenture in accordance with Article XI, provide for the Guarantor to guarantee, pursuant
to a Parent Guarantee, payments and/or other obligations with respect to any Security of such
series.

     “Holder,” with respect to a Registered Security, means a Person in whose name such Registered
Security is registered in the Security Register, and, with respect to a Bearer Security or a
coupon, means the bearer thereof.

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

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

4

 

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

     “mandatory sinking fund payment” has the meaning specified in Section 4.05.

     “maturity,” when used with respect to any Security, means the date on which the principal (or
a portion thereof) of such Security becomes due and payable as therein or herein provided, whether
at Stated Maturity or by declaration of acceleration, notice of redemption or otherwise.

     “Officers’ Certificate” means a certificate signed by an Authorized Officer of the Company or
the Guarantor, as the case requires, and delivered to the Trustee.

     “Opinion of Counsel” means a written opinion of counsel, who may be counsel for or an employee
of the Company or the Guarantor, which is reasonably acceptable in form and substance to the
Trustee.

     “optional sinking fund payment” has the meaning specified in Section 4.05.

     “Original Issue Discount Security” means any Security which provides for an amount less than
the principal amount thereof to be due and payable upon a declaration of acceleration of the
maturity thereof pursuant to Section 6.02.

     “Outstanding,” when used with reference to Securities, subject to the provisions of
Section 9.03, means, as of any particular time, all Securities authenticated and delivered
by the Trustee under this Indenture, except:

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

     (B) Securities, or portions thereof, for the payment or redemption of which moneys or, as
provided in Section 13.01 or 13.02 hereof, Government Obligations, as the case may
be, in the necessary amount shall have been deposited in trust with the Trustee or with any Paying
Agent (other than the Company) or shall have been set aside and segregated in trust by the Company
(if the Company shall act as its own Paying Agent) (in each case, except as provided in Section
13.01 or 13.02, as the case may be); provided that if such Securities are to be
redeemed prior to the maturity thereof, notice of such redemption shall have been given as provided
in Article IV or provision satisfactory to the Trustee shall have been made for giving such
notice; and

     (C) Securities in lieu of or in substitution for which other Securities shall have been duly
authenticated and delivered pursuant to Section 3.06;

provided, however, that, in determining whether the Holders of the requisite principal amount of
Outstanding Securities have taken any action, given any request, demand, authorization, direction,
notice, consent or waiver hereunder or whether a quorum is present at a meeting of Holders, the
principal amount of an Original Issue Discount Security that shall be deemed to be

5

 

Outstanding shall be the amount of the principal thereof that would be due and payable as of the
date of such determination upon acceleration of the maturity thereof pursuant to Section
6.02.

     “Parent Guarantee” means a guarantee, by the Guarantor, of payments and/or other obligations
in respect of Securities of a Guaranteed Series, the terms of which guarantee are as established
pursuant to, or as contemplated by, Section 3.01, or pursuant to a supplemental indenture
in accordance with Article XI.

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

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

     “Place of Payment,” when used with respect to the Securities of any series, means the
principal office of the Trustee or such other place or places where the principal of, premium, if
any, and interest, if any, on, or any Additional Amounts with respect to, the Securities of that
series are payable as specified in accordance with Section 3.01.

     “Principal Facility” means any manufacturing plant, warehouse, office building or parcel of
real property (including fixtures, but excluding leases and other contract rights which might
otherwise be deemed real property) owned by the Guarantor or any Restricted Subsidiary, whether
owned on the date hereof or thereafter, provided each such plant, warehouse, office building or
parcel of real property has a gross book value (without deduction for any depreciation reserves) in
excess of 2% of Consolidated Net Tangible Assets other than any such plant, warehouse, office
building or parcel of real property or portion thereof which, in the opinion of the Board of
Directors of the Guarantor (evidenced by a Board Resolution), is not of material importance to the
business conducted by the Guarantor and its subsidiaries taken as a whole.

     “redemption date,” when used with respect to any Security to be redeemed, in whole or in part,
means the date fixed for such redemption by or pursuant to this Indenture or the terms of such
Security, as applicable.

     “redemption price,” when used with respect to any Security to be redeemed, means the price
(exclusive of accrued interest, if any) at which it is to be redeemed pursuant to this Indenture or
the terms of such Security, as applicable.

     “Registered Security” means any Security in the form of registered securities established
pursuant to Section 2.03 that is registered in the Security Register.

     “Regular Record Date” for the interest payable on any Interest Payment Date on the Registered
Securities of any series means the day specified for that purpose as contemplated by Section
3.01, whether or not such day shall be a Business Day.

     “Required Currency” has the meaning specified in Section 1.14(a).

6

 

     “Responsible Officer,” when used with respect to the Trustee, means any Senior Trust Officer
or Trust Officer of the Trustee or any other officer of the Trustee customarily performing
functions similar to those performed by any of the above designated officers and also means, with
respect to a particular corporate trust matter, any other officer to whom such matter is referred
because of his or her knowledge of and familiarity with the particular subject.

     “Restricted Subsidiary” means any corporation in which the Guarantor owns voting securities
entitling it to elect a majority of the directors and which is either designated a Restricted
Subsidiary in accordance with this Indenture or (i) existed as such on the date of this Indenture
or is the successor to, or owns, any equity interest in, a corporation which so existed, (ii) has
its principal business and assets in the United States (including Puerto Rico and other territories
and possessions), (iii) whose business is other than the obtaining of financing in capital markets
outside the United States or the financing of the acquisition or disposition of real or personal
property or dealing in real property for residential or office building purposes, and (iv) does not
have assets substantially all of which consist of securities of one or more corporations which are
not Restricted Subsidiaries.

     “Rule 144A Guaranteed Series” means a series of Securities issued hereunder, which series is
both a Rule 144A Series and a Guaranteed Series.

     “Rule 144A Series” means a series of Securities issued hereunder the terms of which, as
established pursuant to Section 3.01, or pursuant to a supplemental indenture in accordance
with Article XI, specifically provide that such series shall be a “Rule 144A Series.”

     “Rule 144A Unguaranteed Series” means a series of Securities issued hereunder, which series is
a Rule 144A Series but not a Guaranteed Series.

     “Sale and Leaseback Transaction” means any sale or transfer made by the Guarantor or one or
more Restricted Subsidiaries (except a sale or transfer made to the Guarantor or one or more
Restricted Subsidiaries) of any Principal Facility which (in the case of a Principal Facility which
is a manufacturing plant, warehouse or office building) has been in operation, use or commercial
production (exclusive of test and start-up periods) by the Guarantor or any Restricted Subsidiary
for more than 120 days prior to such sale or transfer, or which (in the case of a Principal
Facility which is a parcel of real property other than a manufacturing plant, warehouse or office
building) has been owned by the Guarantor or any Restricted Subsidiary for more than 120 days prior
to such sale or transfer, if such sale or transfer is made with the intention of leasing, or as
part of an arrangement involving the lease, of such Principal Facility to the Guarantor or a
Restricted Subsidiary, except (a) a lease for a period of not exceeding 36 months, made with the
intention that the use of the leased Principal Facility by the Guarantor or such Restricted
Subsidiary will be discontinued on or before the expiration of such period and (b) a lease that
secures or relates to obligations issued by the United States or any state, territory or possession
of the United States, or any political subdivision of any of the foregoing, or of the District of
Columbia, in connection with the financing of the cost of construction or acquisition of such
Principal Facility or a part thereof. No Security Interest described in subparagraphs (A)
through (L) of Section 5.05 shall be deemed to create or be defined to be a Sale
and Leaseback Transaction.

7

 

     “Secured Debt” means any indebtedness for money borrowed by, or evidenced by a note or other
similar instrument of the Guarantor or a Restricted Subsidiary, and any other indebtedness of the
Guarantor or a Restricted Subsidiary on which by the terms of such indebtedness interest is paid or
payable (other than indebtedness owed by a Restricted Subsidiary to the Guarantor, by a Restricted
Subsidiary to another Restricted Subsidiary or by the Guarantor to a Restricted Subsidiary), which
in any such case is secured by (a) a Security Interest in any Principal Facility or portion thereof
or (b) a Security Interest in any shares of stock owned directly or indirectly by the Guarantor in
a Restricted Subsidiary or in indebtedness for money borrowed by a Restricted Subsidiary from the
Guarantor or another Restricted Subsidiary. The securing in the foregoing manner of any debt which
immediately prior thereto was not Secured Debt shall be deemed to be the creation of Secured Debt
at the time such security is given. The amount of Secured Debt at any time outstanding shall be
the maximum aggregate amount then owing thereon by the Guarantor and its Restricted Subsidiaries.

     “Securities Act” means the United States Securities Act of 1933, as amended.

     “Security” or “Securities” means one or more, as the case may be, of the Company’s debt
securities authenticated and delivered under this Indenture, which may be Registered Securities or
Bearer Securities, and which may or may not have a Parent Guarantee endorsed thereon by the
Guarantor in accordance with this Indenture.

     “Security Interest” means any mortgage, pledge, lien, encumbrance or other security interest
which secures payment or performance of an obligation.

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

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

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

     “stock” includes any and all shares, interests, participations or other equivalents (however
designated) of corporate stock.

     “Superior Indebtedness” means any obligation of the Guarantor or any Restricted Subsidiary
which constituted Funded Debt as of the date of its creation and which, in the case of Funded Debt
of the Guarantor, is not subordinate and junior in right of payment to the prior payment of the
Securities.

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

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used with respect to the Securities of any series shall mean the Trustee with respect to
Securities of that series.

     “Trust Indenture Act” means the United States Trust Indenture Act of 1939, as amended.

     “Trustee Selection” has the meaning specified in Section 4.02.

     “United States” means the United States of America (including the States thereof and the
District of Columbia), its territories and possessions, the Commonwealth of Puerto Rico and other
areas subject to its jurisdiction.

     “United States Alien”, except as otherwise provided in or pursuant to this Indenture or any
Security, means any Person who, for United States Federal income tax purposes, is a foreign
corporation, a non-resident alien individual, a non-resident alien fiduciary of a foreign estate or
trust, or a foreign partnership one or more of the members of which is, for United States Federal
income tax purposes, a foreign corporation, a non-resident alien individual or a non-resident alien
fiduciary of a foreign estate or trust.

1.02 Compliance Certificates and Opinions.

          (a) Except as otherwise expressly provided in or pursuant to this Indenture, upon any
application or request by the Guarantor or the Company to the Trustee to take any action under any
provision of this Indenture, the Guarantor or the Company shall furnish to the Trustee an Officers’
Certificate stating that all conditions precedent, if any, provided for in this Indenture relating
to the proposed action have been complied with and an Opinion of Counsel stating that, in the
opinion of such counsel, all such conditions precedent, if any, have been complied with, except
that in the case of any such application or request as to which the furnishing of such documents or
any of them is specifically required by any provision of this Indenture relating to such particular
application or request, no additional certificate or opinion need be furnished.

          (b) Such Officers’ Certificate or Opinion of Counsel with respect to compliance with a
condition or covenant provided for in this Indenture (other than the statement required by
Section 5.11) shall also include:

     (1) a statement that such Authorized Officer or counsel has read such covenant or condition;

     (2) a brief statement as to the nature and scope of such examination or investigation upon
which the statements or opinions contained in such Officers’ Certificate or Opinion of Counsel are
based; and

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

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

1.03 Form of Documents Delivered to Trustee.

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

          (b) Any certificate, statement or opinion of an Authorized Officer of the Company or the
Guarantor may be based, insofar as it relates to legal matters, upon a certificate or opinion of or
representations by counsel, unless such Authorized Officer knows, or in the exercise of reasonable
care should know, that the certificate or opinion or representation with respect to the matters
upon which his certificate, statement or opinion is based is erroneous. Any certificate, statement
or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate,
statement or opinion of or representations by an officer or officers of the Company or the
Guarantor stating that the information with respect to such factual matters is in the possession of
the Company or the Guarantor, as the case may be, unless such counsel knows, or in the exercise of
reasonable care should know, that the certificate, statement or opinion or representation with
respect to such matters is erroneous.

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

1.04 Notices, Etc., to Trustee, the Company and the Guarantor.

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

     (A) the Trustee by any Holder or by the Company or the Guarantor shall be made, given,
furnished or filed in writing to or with the Trustee at the Corporate Trust Office of the Trustee,
and, unless otherwise herein expressly provided, any such document shall be deemed to be
sufficiently made, given, furnished or filed upon its actual receipt by a Responsible Officer;

     (B) the Company by the Trustee, the Guarantor or any Holder shall be sufficient for every
purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Company, addressed to it at One Baxter Parkway, Deerfield,
Illinois 60015, Attention: Secretary, or at any other address previously furnished in writing to
the Trustee by the Company; or

     (C) the Guarantor by the Trustee, the Company or any Holder shall be sufficient for every
purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Guarantor addressed to it at One Baxter Parkway, Deerfield,

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Illinois 60015, Attention: Treasurer, or at any other address previously furnished in writing
to the Trustee by the Guarantor.

1.05 Notice to Holders; Waiver.

          (a) Where this Indenture provides for notice to Holders of Registered Securities of any event,
such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class postage prepaid, to each Holder of a Registered Security, at such Holder’s
address as it appears in the Security Register, not later than the latest date and not earlier than
the earliest date prescribed for the giving of such notice, and in the event of suspension of
regular mail service or for any other reason it shall be impracticable to give such notice to
Holders of Registered Securities by mail, then such notification to Holders of Registered
Securities shall be made in the manner specified in Section 1.05(b) and such notification
shall constitute sufficient notification for every purpose hereunder. In any case where notice to
Holders of Registered Securities is given by mail, neither the failure to mail such notice, nor any
defect in any notice so mailed, to any particular Holder of a Registered Security shall affect the
sufficiency of such notice with respect to other Holders of Securities or the sufficiency of any
notice by publication to Holders of Securities given as provided in Section 1.05(b).

          (b) Where this Indenture provides for notice to Holders of Bearer Securities, or where there
has been a suspension of regular mail service or for any other reason it is impracticable to give
notice to Holders of Registered securities by mail, such notice shall be sufficiently given if
published on a Business Day in an Authorized Newspaper in The City of New York and, if the
Securities of such series are then listed on The International Stock Exchange of the United Kingdom
and the Republic of Ireland, in London and, if the Securities of such series are then listed on the
Luxembourg Stock Exchange, in Luxembourg and if the Securities of such series are then listed on
any other stock exchange outside the United States and such stock exchange shall so require, in any
other required city outside the United States, or, if not practicable in any required city, in
London, such publication to be not earlier than the earliest date and not later than the latest
date prescribed for the giving of such notice. In case by reason of the suspension of publication
of any Authorized Newspaper or Authorized Newspapers or by reason of any other cause it shall be
impracticable to publish any notice as provided in this Section 1.05(b), then such
notification shall be given in the manner reasonably approved by the Trustee and shall constitute
sufficient notice to such Holders for every purpose under this Section 1.05(b). Neither
failure to give notice by publication as provided in this Section 1.05(b), nor any defect
in any notice so published, shall affect the sufficiency of any notice mailed to Holders of
Registered Securities as provided in Section 1.05(a).

          (c) Where this Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after the event, and such
waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with
the Trustee, but such filing shall not be a condition precedent to the validity of any action taken
in reliance upon such waiver.

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          (d) Any request, demand, authorization, notice, consent, election, waiver or other act
required or permitted under this Indenture shall be in the English language, except that any
published notice may be in an official language of the country of publication.

1.06 Conflict With Trust Indenture Act.

     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 required provision of
the Trust Indenture Act shall control.

1.07 Effect of Headings and Table of Contents.

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

1.08 Successors and Assigns.

     All covenants and agreements in this Indenture by the Company or the Guarantor, as the case
maybe, shall bind their respective successors and assigns, whether so expressed or not.

1.09 Separability Clause.

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

1.10 Benefits of Indenture.

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

1.11 Governing Law.

     This Indenture, the Securities and the Parent Guarantees shall be governed by and construed in
accordance with the laws of the State of New York, as applied to contracts made and performed
within the State of New York, without regards to principles of conflicts of law.

1.12 Legal Holidays.

     Unless otherwise provided by, or pursuant to, Section 3.01, in any case where any
Interest Payment Date, redemption date or Stated Maturity of any Security shall not be a Business
Day at any Place of Payment, then (notwithstanding any other provision of this Indenture or of the
Securities) payment of the principal of, premium, if any, or interest, if any, on any Additional
Amounts with respect to, such Security need not be made at such Place of Payment on such date, but
may be made on the next succeeding Business Day at such Place of Payment with the same force and
effect as if made on the Interest Payment Date or redemption date, or at the Stated Maturity;
provided, that no additional interest shall accrue with respect to

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the payment due on such date for the period from and after such Interest Payment Date,
redemption date or Stated Maturity, as the case may be, to the next succeeding Business Day.

1.13 Moneys of Different Currencies to be Segregated.

     The Trustee shall segregate moneys, funds and accounts held by the Trustee hereunder in one
currency (or unit thereof) from any moneys, funds or accounts in any other currencies (or units
thereof), notwithstanding any provision herein which would otherwise permit the Trustee to
commingle such amounts.

1.14 Payment to be in Proper Currency.

          (a) In the case of any Security denominated in any particular currency or currency unit (the
“Required Currency”), except as otherwise provided herein, therein or in or pursuant to the
related Board Resolution(s) or supplemental indenture establishing the series of such Security as
provided herein, the obligation of the Company to make any payment of principal of, premium, if
any, or interest, if any, thereon, or any Additional Amounts with respect thereto, shall not be
discharged or satisfied by any tender by the Company, or recovery by the Trustee, in any currency
or currency unit other than the Required Currency, except to the extent that such tender or
recovery, if exchanged for the Required Currency by the Trustee at its election as provided in the
next sentence, shall result in the Trustee timely holding the full amount of the Required Currency
then due and payable.

          (b) Neither the Trustee nor any Paying Agent shall be obligated to make any payment in any
currency or currency unit other than the currency or currency unit tendered to, or recovered by,
the Trustee or such Paying Agent. Notwithstanding the foregoing, if any such tender or recovery is
made in other than the Required Currency, the Trustee may take such actions as it considers
appropriate to exchange such other currency or currency unit for the Required Currency.

1.15 Counterparts.

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

1.16 No Adverse Interpretation of Other Agreements.

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

1.17 Rules of Construction.

     Unless the context otherwise requires:

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

     (B) “or” is not exclusive;

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

     (D) provisions apply to successive events and transactions;

     (E) “including” means “including without limitation”; and

     (F) “herein,” “hereof” and other words of similar import refer to this Indenture as a whole
and not to any particular Article, Section or other subdivision of this Indenture.

II. SECURITY FORMS

2.01 Forms Generally.

     The Securities of each series (and, if such series is a Guaranteed Series, the Parent
Guarantee to be endorsed on Securities of such series) shall be in substantially the form as shall
be established by or pursuant to a Board Resolution of the Company (and, if such series is a
Guaranteed Series, a Board Resolution of the Guarantor) or in one or more indentures supplemental
hereto, in each case with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Indenture and may have such letters, numbers or
other marks of identification and such legends or endorsements placed thereon as may be required to
comply with the rules of any securities exchange or as may, consistently herewith, be determined by
the Authorized Officers executing such Securities as evidenced by their execution of the
Securities. If the form of Securities of any series and any related Parent Guarantee is
established by action taken pursuant to one or more Board Resolution(s), a copy of an appropriate
record of any such action taken shall be certified by the Secretary or an Assistant Secretary, or
another appropriate Authorized Officer, of the Company or the Guarantor, as the case may be, and
delivered to the Trustee at or prior to the delivery of the written order(s) contemplated by
Section 3.03 for the authentication and delivery of the initial Securities of each series.
Any such Board Resolution or record of such action shall have attached thereto a true and correct
copy of the form of Security and any Parent Guarantee referred to therein approved by or pursuant
to such Board Resolution(s).

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

2.02 Form of Trustee’s Certificate of Authentication.

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

     This is one of the Securities of the series designated therein issued under the
within-mentioned Indenture.

J. P. Morgan Trust Company, National Association, as Trustee

By:

     Authorized Signatory

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Dated:

2.03 Forms of Securities.

     Each Security (and, if such Security is of a Guaranteed Series, the Parent Guarantee to be
endorsed thereon) shall be in one of the forms approved from time to time by or pursuant to a Board
Resolution of the Company (and, if such Security is of a Guaranteed Series, a Board Resolution of
the Guarantor) or one or more indentures supplemental hereto which shall set forth the information
required by Section 3.01. Unless otherwise provided as contemplated by Section
3.01 with respect to any series of Securities, the Securities of each series shall be issuable
in registered form without coupons. If so provided as contemplated by Section 3.01, the
Securities of a series shall be issuable in whole or in part (i) in bearer form, with interest
coupons attached, (ii) in registered and bearer form or (iii) in the form of one or more Global
Securities.

III. THE SECURITIES

3.01 Amount Unlimited; Issuable in Series.

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

     The Securities may be issued in one or more series, and each such series shall, except as
otherwise provided as contemplated by this Section 3.01, rank equally and pari passu with
all other unsecured and unsubordinated indebtedness of the Company. There shall be established, in
or pursuant to a Board Resolution of the Company (and, if such series is a Guaranteed Series, a
Board Resolution of the Guarantor), and set forth in an Officers’ Certificate of the Company (and,
if such series is a Guaranteed Series, an Officer’s Certificate of the Guarantor), or established
in one or more indentures supplemental hereto, prior to the initial issuance of Securities of any
series,

     (A) the title of the Securities of the series (which shall distinguish the Securities of the
series from all other Securities, except to the extent that additional Securities of an existing
series are being, or will be, issued);

     (B) any limit upon the aggregate principal amount of the Securities of the series that may be
authenticated and delivered under this Indenture (except for Securities authenticated and delivered
upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the series
pursuant to Section 3.04, 3.05, 3.06, 4.03 or 11.04);

     (C) the date or dates on which the principal and premium, if any, on the Securities of the
series are payable or the method of determination thereof;

     (D) the rate or rates (which may be fixed or variable), or the method of determination
thereof, at which the Securities of the series shall bear interest, if any, the date or dates from
which such interest shall accrue, or the method of determination thereof, the Interest Payment
Dates on which such interest shall be payable and (in the case of Registered Securities) the
Regular Record Date for the interest payable on any Interest Payment Date;

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     (E) if other than such currency of the United States as at the time of payment is legal tender
for payment of public or private debts, the currency or currencies or currency unit or units in
which payment of the principal of, premium, if any, or interest, if any, on, or any Additional
Amounts with respect to, the Securities of the series shall be payable and the Dollar Determination
Agent, if any, for such series;

     (F) if the principal of, premium if any, or interest, if any, on, or any Additional Amounts
with respect to, the Securities of the series are to be payable, at the election of the Company,
the Guarantor or a Holder, in a currency or currencies or currency unit or units other than that in
which the Securities are stated to be payable, the period or periods within which, and the terms
and conditions upon which, such election may be made or the other circumstances under which any of
such Securities are to be so payable, and any provision requiring the Holder to bear currency
exchange costs by deduction from such payments;

     (G) if the amount of payments of principal of, premium, if any, or interest, if any, on, or
any Additional Amounts with respect to, any of the Securities of the series may be determined with
reference to an index, formula, or other method based on (i) a currency or currencies, or currency
unit or units, or in such other commodity as permitted, other than that in which such Securities
are stated to be payable, or (ii) any method not inconsistent with the provisions of this Indenture
specified in or pursuant to such Board Resolution(s) or supplemental indenture(s), then, in either
case (i) or (ii), the manner in which such amounts shall be determined;

     (H) the place or places where the principal of, premium, if any, and interest, if any, on, or
any Additional Amounts with respect to, the Securities of the series shall be payable;

     (I) if applicable, the period or periods within which, the price or prices at which, and the
terms and conditions upon which, Securities of the series may be redeemed, in whole or in part, at
the option of the Company or the Guarantor;

     (J) if applicable, the period or periods within which, the price or prices at which, and the
terms and conditions upon which, Securities of the series may be redeemed, in whole or in part, at
the option of the Holders;

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

     (L) the terms of any right to convert or exchange Securities of the series, either at the
option of the Holder thereof, the Company or the Guarantor, into or for shares of common stock of
the Company or the Guarantor or other securities or property (whether of the Company, the Guarantor
or any other Person), including, without limitation, the period or periods within which and the
price or prices (including adjustments thereto) at which any Securities of the series shall be
converted or exchanged, in whole or in part;

     (M) whether Bearer Securities of the series are to be issuable and, if so, provisions with
respect thereto, if different from the provisions herein relating to Bearer Securities;

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     (N) if Bearer Securities of the series are to be issuable, (i) whether interest in respect of
any portion of a temporary Global Security (representing all of the Outstanding Bearer Securities
of the series) payable in respect of any Interest Payment Date prior to the exchange of such
temporary Security for definitive Securities in the series shall be paid to any Depositary with
respect to the portion of such temporary Global Security held for its account and, in such event,
the terms and conditions (including any certification requirements) upon which any such interest
payment received by such Depositary will be credited to the Persons entitled to interest payable on
such Interest Payment Date; and (ii) the terms upon which interests in such temporary Global
Security may be exchanged for interests in a permanent Global Security or for definitive Securities
of the series and the terms upon which interests in a permanent Global Security, if any, may be
exchanged for definitive Securities of the series;

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

     (P) the denominations in which Registered Securities of the series, if any, shall be issuable,
if other than the denominations of $1,000 and any integral multiple thereof, and the denominations
in which Bearer Securities of the series, if any, shall be issuable if other than the denomination
of $5,000;

     (Q) if other than the principal amount thereof, the portion of the principal amount of any of
the Securities of the series which shall be payable upon declaration of acceleration of the
maturity thereof pursuant to Section 6.02;

     (R) the application, if any, of Section 13.01, or such other means of satisfaction and
discharge as may be specified for the Securities of the series;

     (S) whether the Securities of the series, in whole or any specified part, shall be subject to
defeasance or covenant defeasance pursuant to Section 13.02 and, if so, the provisions
relating thereto and the manner in which any election by the Company or the Guarantor to provide
for defeasance or covenant defeasance of such Securities shall be evidenced if different from the
provisions herein relating thereto;

     (T) any modification to the definitions set forth in Section 1.01 which shall apply to
Securities of the series;

     (U) any deletions from or modifications of or additions to the Events of Default set forth in
Section 6.01 which apply to the Securities of the series, and any other modifications to
Article VI;

     (V) any deletions from or modifications of or additions to the covenants set forth in
Article V which apply to the Securities of the series;

     (W) whether and under what circumstances and with what procedures and documentation the
Company will pay Additional Amounts on any of the Securities of the series to any Holder, in
respect of any tax, assessment or governmental charge withheld or deducted

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and, if so, whether the Company will have the option to redeem such Securities rather than pay
Additional Amounts (and the terms of any such option);

     (X) the Person to whom any interest on any Registered Security of the series shall be payable,
if other than the Person in whose name that Security (or one or more predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest, the manner in
which, or the Person to whom, any interest on any Bearer Security of the series shall be payable,
if otherwise than upon presentation and surrender of the coupons appertaining thereto as they
severally mature and the extent to which, or the manner in which, any interest payable on a
temporary Global Security on an Interest Payment Date will be paid if other than in the manner
provided in Section 3.04;

     (Y) any exceptions to Section 1.12, or variation in the definition of Business Day,
with respect to the Securities of the series;

     (Z) any limitations on the rights of the Holders of the Securities of the Series to transfer
or exchange such Securities or to obtain the registration of transfer thereof;

     (AA) whether any payment or other obligations on Securities of such series are to be secured
by any property and, if so, the nature of such security and provisions related thereto;

     (BB) whether payment of amounts due with respect to Securities of such series is subordinated
in right of payment to the prior payment of any other indebtedness, and, if so, the extent and in
the manner of such subordinations and any other provisions relating thereto;

     (CC) any terms or provisions (if different from the provisions herein relating thereto)
applicable to “original issue discount” (as that term is defined in the Internal Revenue Code of
1986 and the regulations thereunder), if any, including the rate or rates at which such original
issue discount, if any, shall accrue;

     (DD) the form of the Securities of the series (including legends, if any, to be imprinted
thereon and the circumstances, if any, which require the imprinting of such legends);

     (EE) whether such series is a Guaranteed Series and, if so, the form and terms of the Parent
Guarantee to be endorsed on such Securities, and the provisions relating to such Parent Guarantee,
in each case if different from that provided for in Article XVI;

     (FF) whether such series is a Rule 144A Series and, if so, any provisions relating to such
Rule 144A Series that may be different from, or in addition to, those provided herein; and

     (GG) any other terms of the series.

     If any of the terms of the series are established by action taken pursuant to one or more
Board Resolutions, a copy of an appropriate record of such action shall be delivered to the Trustee
at or prior to the initial issuance of Securities of such series.

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3.02 Denominations.

     Unless otherwise provided as contemplated by Section 3.01 with respect to any series
of Securities, and except as provided in Section 3.03, the Registered Securities of each
series, if any, shall be issuable in denominations of $1,000 and any integral multiple thereof and
the Bearer Securities of each series, if any, shall be issuable in the denomination of $5,000.
Securities of each series shall be numbered, lettered or otherwise distinguished in such manner or
in accordance with such plan as the Authorized Officers of the Company executing the same may
determine with the reasonable approval of the Trustee.

3.03 Execution, Authentication, Delivery and Dating.

     The Securities shall be signed on behalf of the Company by an Authorized Officer of the
Company. Such signatures may be manual or facsimile signatures of the present or any future such
Authorized Officers and may be imprinted or otherwise reproduced on the Securities. Any coupons
shall be executed on behalf of the Company by the manual or facsimile signature of any such
Authorized Officer of the Company. If such Securities are of a Guaranteed Series, the Parent
Guarantees to be endorsed on such Securities shall, unless otherwise provided as contemplated by
Section 3.01, be executed and delivered in accordance with Article XVI.

     Only such Securities as shall bear thereon a certificate of authentication substantially in
the form hereinbefore recited, executed by the Trustee, shall be entitled to the benefits of this
Indenture or be valid or obligatory for any purpose. Such certificate by the Trustee upon any
Security executed by the Company shall be conclusive evidence that the Security so authenticated
has been duly authenticated and delivered hereunder.

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

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series executed by the Company (and, if such series is a
Guaranteed Series, with a Parent Guarantee endorsed thereon executed by the Guarantor) to the
Trustee for authentication. The Trustee shall thereupon authenticate and deliver such Securities
to or upon the written order of the Company, signed by an Authorized Officer of the Company
(accompanied, if such Securities are of a Guaranteed Series, by a written order of the Guarantor,
signed by an Authorized Officer of the Guarantor, approving the terms and delivery of the Parent
Guarantees to be endorsed on such Securities), or pursuant to such procedures acceptable to the
Trustee and such recipients, without any further action by the Company (or the Guarantor);
provided, however, that, in connection with its original issuance, a Bearer Security may be
delivered only outside the United States and only if the Company and the Guarantor or their
respective agent(s) shall have received from the Person entitled to delivery of such Bearer
Security a certificate or certificates addressing such matters as may be reasonably requested by
the Company, the Guarantor or the Trustee and in a form reasonably satisfactory to the Company and
the Trustee. In authenticating such Securities, and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be entitled to receive, and

19

 

shall be fully protected in relying upon the documents specified in Section 314 of the Trust
Indenture Act, and in addition:

     (A) the instrument or instruments establishing the form or forms and terms of the Securities
of such series (and, if such series is a Guaranteed Series, the Parent Guarantee to be endorsed
thereon), as provided in Sections 2.01 and 3.01;

     (B) an Opinion of Counsel prepared in accordance with Section 1.02, to the following
effect, which Opinion of Counsel may contain such assumptions, qualifications and limitations as
such counsel shall deem appropriate:

          (i) the forms and terms of such Securities, and if such Securities are of a Guaranteed Series,
the forms and terms of the Parent Guarantees to be endorsed thereon, have been established in
conformity with Section 2.01 and Section 3.01 of this Indenture;

          (ii) all conditions precedent set forth in Sections 2.01, 3.01 and
3.03 of this Indenture to the authentication and delivery of such Securities, and if such
Securities are of a Guaranteed Series, the Parent Guarantees endorsed thereon, have been complied
with; and

          (iii) such Securities, and, if such Securities are of a Guaranteed Series, the Parent
Guarantees endorsed thereon, when authenticated and delivered by the Trustee and issued by the
Company and, if such Securities are of a Guaranteed Series, the Guarantor, in the manner and
subject to any conditions specified in such Opinion of Counsel, will constitute valid and legally
binding obligations of the Company and, if such Securities are of a Guaranteed Series, the
Guarantor, entitled to the benefits provided by this Indenture, and enforceable in accordance with
their terms, subject to bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance
or other similar laws affecting creditors’ rights generally and by general principles of equity
(regardless of whether enforceability is considered in a proceeding in equity or at law).

     The Trustee shall have the right to decline to authenticate and deliver the Securities of such
series if the Trustee reasonably determines that such action may not lawfully be taken, would
expose the Trustee to personal liability or would add to the obligations and duties of the Trustee
hereunder in any material respect. In addition, prior to the authentication upon original issuance
of the first Security of a series to be issued which is denominated in a Foreign Currency or
currency unit the Trustee shall have the right to decline to authenticate and deliver any
Securities of such series if the Trustee determines in its reasonable discretion that it would not
be able to properly fulfill its obligations hereunder in respect of such Securities or to do so
would be unduly burdensome to the Trustee.

     If the Company and, if such series is a Guaranteed Series, the Guarantor shall establish,
pursuant to or as contemplated by Section 3.01, that the Securities of a series are to be
issued in whole or in part in the form of one or more Global Securities, then the Company shall
execute and the Trustee shall, in accordance with this Section 3.03, authenticate and
deliver (and, if such series is a Guaranteed Series, the Guarantor shall endorse a Parent Guarantee
thereon) one or more Global Securities in temporary or permanent form that (i) shall represent and
shall be denominated in an amount equal to the aggregate principal amount of the Outstanding
Securities of such series to be represented by one or more Global Securities, (ii) shall be
registered, if in

20

 

registered form, in the name of the Depositary for such Global Security or Global Securities
or the nominee of such Depositary, (iii) shall be delivered by the Trustee to such Depositary or
pursuant to such Depositary’s instruction, and (iv) shall bear a legend to substantially the
following effect:

     “Unless and until it is exchanged in whole or in part for Securities in definitive
registered form, this Security may not be transferred except as a whole by the Depositary to
the nominee of the Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary or by the Depositary or any such nominee to a successor Depositary
or to a nominee of such successor Depositary.”

     Each Depositary designated pursuant to or as contemplated by Section 3.01 for a Global
Security in registered form to be delivered in the United States must, at the time of its
designation and at all times while it serves as Depositary, be a clearing agency registered under
the Exchange Act and any other applicable statute or regulation.

     Each Registered Security shall be dated the date of its authentication. Each Bearer Security
shall be dated as of the date specified pursuant to or as contemplated by Section 3.01.

     Notwithstanding the provisions of Section 3.01 and of this Section 3.03, if
all Securities of a series are not to be originally issued at one time, it shall not be necessary
to deliver the Officers’ Certificate(s) otherwise required pursuant to Section 3.01 or the
written order of the Company (and, if applicable, of the Guarantor) and Opinion of Counsel
otherwise required pursuant to this Section 3.03 at or prior to the time of authentication
of each Security of such series if such documents are delivered at or prior to the authentication
upon original issuance of the first Security of such series to be issued.

3.04 Temporary Securities.

     Pending the preparation of a permanent Global Security or definitive Securities of any series,
the Company may execute, and upon compliance with Section 3.03, the Trustee shall
authenticate and deliver and, if such Securities are of a Guaranteed Series, the Guarantor shall
endorse a Parent Guarantee thereon, temporary Securities which are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of
the tenor of the definitive Securities in lieu of which they are issued, in registered form or, if
authorized, in bearer form with one or more coupons or without coupons, and with such appropriate
insertions, omissions, substitutions and other variations as the Authorized Officers executing such
Securities and coupons may determine, as evidenced by their execution of such Securities and
coupons. In the case of Securities of any series, such temporary securities may be in global form,
representing all or a portion of the Outstanding Securities of such series.

     If temporary Securities of any series are issued, the Company will cause definitive Securities
with, if such Securities are of a Guaranteed Series, Parent Guarantees endorsed thereon by the
Guarantor of that series to be prepared without unreasonable delay. Except as otherwise specified
as contemplated by Section 3.01 with respect to a series of Securities issuable as Bearer
Securities, (i) after the preparation of definitive Securities of such series, the temporary
Securities of such series shall be exchangeable for definitive Securities of such series

21

 

with, if such series is a Guaranteed Series, Parent Guarantees endorsed thereon upon surrender
of the temporary Securities of such series at the office or agency of the Company in a Place of
Payment for such series and (ii) upon surrender for cancellation of any one or more temporary
Securities of any series accompanied by any unmatured coupons appertaining thereto, the Company
shall execute and the Trustee shall authenticate and deliver in exchange therefor and, if such
series is a Guaranteed Series, the Guarantor shall endorse a Parent Guarantee thereon a like
principal amount of definitive Securities of the same series of authorized denominations and of
like tenor; provided, however, that no definitive Bearer Security shall be delivered in exchange
for a temporary Security unless the Company and the Guarantor, or their respective agents, shall
have received from the person entitled to receive the definitive Bearer Security a certificate or
certificates addressing such matters as may be reasonably requested by the Company, the Guarantor
or the Trustee and in a form reasonably satisfactory to the Company, the Guarantor and the Trustee;
provided further, that delivery of a Bearer Security shall occur only outside the United States;
provided further, that neither a beneficial interest in a permanent Global Security in bearer form
nor a definitive Bearer Security will be issued if the Company or the Guarantor has reason to know
that any such certificate is false. Until so exchanged, the temporary Securities of any series
shall in all respects be entitled to the same benefits under this Indenture as definitive
Securities of such series except as otherwise specified as contemplated by Section 3.01
with respect to the payment of interest on Securities in temporary form. Such exchanges shall be
made by the Company at its expense and without any charge therefor.

3.05   Registration; Registration of Transfer and Exchange.

          The Company shall cause to be kept for each series of Registered Securities at one of the
offices or agencies maintained in accordance with Section 5.02 a register or registers
herein sometimes collectively referred to as the “Security Register” in which, subject to
such reasonable regulations as it may prescribe, the Company shall provide for the registration of
such Registered Securities and of transfers of such Registered Securities. Said office or agency
is hereby appointed the “Security Registrar” for the purpose of registering such Registered
Securities and transfers of such Registered Securities as herein provided.

          Upon surrender for registration of transfer of any Registered Security of any series at an
office or agency maintained in accordance with Section 5.02, the Company shall execute, and
the Trustee shall authenticate and deliver (and, if such series is a Guaranteed Series, the
Guarantor shall endorse a Parent Guarantee thereon), in the name of the designated transferee or
transferees, one or more new Registered Securities of the same series and of like tenor, of any
authorized denominations and of a like aggregate principal amount and Stated Maturity.

          In no case shall there be more than one Security Register for a series of Registered
Securities.

          At the option of the Holder, Registered Securities of any series (except a Global Security)
may be exchanged for other Registered Securities of the same series and of like tenor with, if such
series is a Guaranteed Series, Parent Guarantees endorsed thereon, of any authorized denominations
and of a like aggregate principal amount and Stated Maturity, upon surrender of the Registered
Securities to be exchanged at an office or agency maintained in accordance with Section
5.02. Whenever any Securities are so surrendered for exchange, the Company shall

22

 

execute, and the Trustee shall authenticate and deliver and, if such Securities are of a
Guaranteed Series, the Guarantor shall endorse a Parent Guarantee thereon, the Securities which the
Holder making the exchange is entitled to receive. Bearer Securities may not be delivered in
exchange for Registered Securities, except with the consent, and in the sole discretion, of the
Company and the Guarantor.

          Notwithstanding any other provision of this Section 3.05, unless and until it is
exchanged in whole or in part for Securities in definitive registered form, a Global Security
representing all or a portion of the Securities of a series may not be transferred except as a
whole by the Depositary to the nominee of the Depositary or by a nominee of the Depositary to the
Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a
successor Depositary or to a nominee of such successor Depositary.

          At the option of the Holder, except as otherwise specified as contemplated by Section
3.01 with respect to a Global Security issued in bearer form, Registered Securities may be
issued in exchange for Bearer Securities of the same series (if the Securities of such series are
issuable as Registered Securities) or Bearer Securities of any series may be issued in exchange for
Bearer Securities of the same series (if Bearer Securities of such series are issuable in more than
one denomination), of any authorized denomination and of like tenor and aggregate principal amount
with, if such Securities are of a Guaranteed Series, Parent Guarantees endorsed thereon, upon
surrender of the Bearer Securities to be exchanged at an office or agency maintained in accordance
with Section 5.02, with all unmatured coupons and all matured coupons in default thereto
appertaining; provided, however, that delivery of a Bearer Security shall occur only outside the
United States. If the Holder of a Bearer Security is unable to produce any such unmatured coupon
or coupons or matured coupon or coupons in default, such exchange may be effected if the Bearer
Securities are accompanied by payment in funds acceptable to the Company and the Guarantor in an
amount equal to the face amount of such missing coupon or coupons, or the surrender of such missing
coupon or coupons may be waived by the Company and the Guarantor if there be furnished to the
Company, the Guarantor and the Trustee such security or indemnity as the Company may require in its
sole discretion to save the Company, the Guarantor, the Trustee and any Paying Agent harmless. If
thereafter the Holder of such Security shall surrender to any Paying Agent any such missing coupon
in respect of which such a payment shall have been made, such Holder shall be entitled to receive
the amount of such payment; provided, however, that, except as otherwise provided in Section
5.02, interest represented by coupons shall be payable only upon presentation and surrender of
those coupons at an office or agency located outside the United States. Notwithstanding the
foregoing, in case a Bearer Security of any series is surrendered at any such office or agency in
exchange for a Registered Security of the same series after the close of business at such office or
agency on (i) any Regular Record Date and before the opening of business at such office or agency
on the relevant Interest Payment Date, or (ii) any Special Record Date and before the opening of
business at such office or agency on the related date for payment of Defaulted Interest, such
Bearer Security shall be surrendered without the coupon relating to such Interest Payment Date or
proposed date of payment, as the case may be.

          If at any time the Depositary for the Securities of a series notifies the Company that it is
unwilling or unable to continue as Depositary for the Securities of such series, or if at any time
the Depositary for the Securities of such series shall no longer be eligible under Section
3.03, the

23

 

Company shall use its commercially reasonable efforts to appoint a successor Depositary with
respect to the Securities of such series. If a successor Depositary for the Securities of such
series is not appointed by the Company within 90 days after the Company receives such notice or
becomes aware of such ineligibility, the Company’s election pursuant to Section 3.01(O)
shall no longer be effective with respect to the Securities of such series and the Company shall
execute and, if such Securities are of a Guaranteed Series, the Guarantor shall endorse a Parent
Guarantee thereon, and the Trustee, upon receipt of a written order of the Company for the
authentication and delivery of definitive Securities of such series accompanied, if such Securities
are of a Guaranteed Series, by a written order of the Guarantor, shall authenticate and deliver as
specified in such written order(s), Securities of such series in definitive form in an aggregate
principal amount equal to the principal amount of the Global Security or Securities representing
such series in exchange for such Global Security or Securities.

          The Company may at any time and in its sole discretion determine that the Securities of any
series issued in the form of one or more Global Securities shall no longer be represented by such
Global Security or Securities. In such event, the Company shall execute and, if such Securities
are of a Guaranteed Series, the Guarantor shall endorse a Parent Guarantee thereon, and the
Trustee, upon receipt of a written order of the Company (accompanied, if such Securities are of a
Guaranteed Series, by a written order of the Guarantor) for the authentication and delivery of
definitive Securities of such series, shall authenticate and deliver as specified in such written
order(s), Securities of such series in definitive form and in an aggregate principal amount equal
to the principal amount of the Global Security or Securities representing such series in exchange
for such Global Security or Securities.

          If specified pursuant to Section 3.01 with respect to a series of Securities, the
Depositary for such series of Securities may surrender a Global Security for such series of
Securities in exchange in whole or in part for Securities of such series in definitive form on such
terms as are acceptable to the Company and such Depositary. Thereupon, the Company shall execute
and, if such series is a Guaranteed Series, the Guarantor shall endorse a Parent Guarantee thereon,
and the Trustee shall authenticate and deliver, without service charge,

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

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

          In any exchange provided for in any of the preceding three paragraphs, the Company shall
execute and, if such Securities are of a Guaranteed Series, the Guarantor shall endorse a Parent
Guarantee thereon, and the Trustee shall authenticate and deliver, Securities (i) in definitive
registered form in authorized denominations, if the Securities of such series are issuable as
Registered Securities, (ii) in definitive bearer form in authorized denominations, with coupons
attached, if the Securities of such series are issuable as Bearer Securities or (iii) as either
Registered Securities or Bearer Securities, if the Securities of such series are issuable in either

24

 

form; provided, however, that no definitive Bearer Security shall be delivered in exchange for
a temporary Global Security unless the Company and the Guarantor, or their respective agents, shall
have received from the Person entitled to receive the definitive Bearer Security a certificate or
certificates addressing such matters as may be reasonably requested by the Company, the Guarantor
or the Trustee and in a form reasonably satisfactory to the Company, the Guarantor and the Trustee;
provided further, that delivery of a Bearer Security shall occur only outside the United States;
provided further, that no definitive Bearer Security will be issued if the Company or the Guarantor
has reason to know that such certificate is false.

          Upon the exchange of a Global Security for Securities in definitive form, such Global Security
shall be cancelled by the Trustee. Registered Securities issued in exchange for a Global Security
pursuant to this Section 3.05 shall be registered in such names and in such authorized
denominations as the Depositary for such Global Security shall instruct the Trustee. The Trustee
shall deliver such Registered Securities to the Persons in whose names such Securities are so
registered. The Trustee shall deliver Bearer Securities issued in exchange for a Global Security
pursuant to this Section 3.05 to the Persons, and in such denominations, as the Depositary
for such Global Security shall instruct the Trustee; provided, however, that no definitive Bearer
Security shall be delivered in exchange for a temporary Global Security unless the Company and the
Guarantor, or their respective agents, shall have received from the Person entitled to receive the
definitive Bearer Security a certificate or certificates addressing such matters as may be
reasonably requested by the Company, the Guarantor or the Trustee and in a form reasonably
satisfactory to the Company, the Guarantor and the Trustee; provided further, that delivery of a
Bearer Security shall occur only outside the United States; provided further, that no definitive
Bearer Security shall be issued if the Company or the Guarantor has reason to know that any such
certificate is false.

          All Securities (and, if such Security is of a Guaranteed Series, Parent Guarantees) issued
upon any registration of transfer or exchange of Securities shall be the valid obligations of the
Company (and, if such Security is of a Guaranteed Series, the Guarantor), evidencing the same debt,
and entitled to the same benefits under this Indenture, as the Securities (and, if such Security is
of a Guaranteed Series, endorsed Parent Guarantees) surrendered upon such registration of transfer
or exchange.

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

          No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company or the Guarantor may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration of transfer or exchange
of Securities.

          Neither the Company nor the Guarantor shall be required (i) to issue, register the transfer of
or exchange Securities of any particular series during a period beginning at the opening of
business 15 days before the day of selection of Securities of such series to be redeemed under

25

 

          Section 4.02 and ending at the close of business on the day of the mailing of a notice
of redemption of Securities of such series selected for redemption, (ii) to register the transfer
of or exchange any Registered Security so selected for redemption in whole or in part, except the
unredeemed portion of any Registered Security being redeemed in part, (iii) to exchange any Bearer
Security so selected for redemption except that such a Bearer Security may be exchanged for a
Registered Security of that series (if the Securities of such series are issuable as Registered
Securities), provided that such Registered Security shall be immediately surrendered for redemption
with written instruction for payment consistent with the provisions of this Indenture or (iv) to
issue, register the transfer of or exchange any Security which, in accordance with its terms, has
been surrendered for repayment at the option of the Holder and not withdrawn, except the portion,
if any, of such Security not to be so repaid.

          Each Holder of a Security agrees to indemnify the Company, the Guarantor and the Trustee
against any liability that may result from the transfer, exchange or assignment of such Holder’s
Security in violation of any provision of this Indenture and/or applicable United States Federal or
state securities law.

          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 Security (including any transfers between or among
Depositary participants or beneficial owners of interests in any Global Security) 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, and to examine the
same to determine substantial compliance as to form with the express requirements hereof.

          None of the Trustee nor any Paying Agent or Security Registrar, nor the Company or the
Guarantor, shall have any responsibility for any actions taken or not taken by the Depositary.

3.06   Mutilated, Destroyed, Lost and Stolen Securities.

          If any mutilated Security, or a Bearer Security with one or more mutilated coupons
appertaining to it, is surrendered to the Trustee, the Company shall execute and, if such Security
is of a Guaranteed Series, the Guarantor shall endorse a Parent Guarantee thereon, and the Trustee
shall authenticate and deliver in exchange therefor a new Security with, if Bearer Securities, all
coupons corresponding to the coupons surrendered with the surrendered Bearer Security (including
mutilated coupons), if any, of the same series and of like tenor and principal amount and bearing a
number not contemporaneously outstanding.

          If there shall be delivered to the Company, the Guarantor and the Trustee (i) evidence to
their satisfaction of the destruction, loss or theft of any Security or coupon and (ii) such
security or indemnity as may be requested by them to hold each of them and any agent of any of them
harmless, then, in the absence of notice to the Company, the Guarantor or the Trustee that such
security or coupon has been acquired by a bona fide purchaser, the Company shall execute and, if
such Security is of a Guaranteed Series, the Guarantor shall endorse a Parent Guarantee thereon
and, upon request, the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost
or stolen Security or in exchange for the Security to which a destroyed, lost or

26

 

stolen coupon appertains (upon surrender to the Trustee of such Security with all appurtenant
coupons not destroyed, lost or stolen), a new Security of the same series and of like tenor and
principal amount and bearing a number not contemporaneously outstanding, with coupons corresponding
to the coupons, if any, appertaining to such destroyed, lost or stolen Security or to the Security
to which such destroyed, lost or stolen coupon appertains.

          In case any such mutilated, destroyed, lost or stolen Security or coupon has become or is
about to become due and payable, the Company (or, if the Security is of a Guaranteed Series, the
Guarantor) in its discretion may, instead of issuing a new Security or coupon, pay such Security or
coupon; provided, however, that principal of (and premium, if any) and any interest on, and any
Additional Amounts with respect to, Bearer Securities shall, except as otherwise provided in
Section 5.02, be payable only at an office or agency located outside the United States and
unless otherwise specified as contemplated by Section 3.01, any interest on Bearer
Securities shall be payable only upon presentation and surrender the coupons appertaining thereto.

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

          Every new Security or coupon of any series issued pursuant to this Section 3.06 in
lieu of any destroyed, lost or stolen Security or coupon (and, if such Security is of a Guaranteed
Series, the Parent Guarantee endorsed thereon) shall constitute an original additional contractual
obligation of the Company (and, if such Security is of a Guaranteed Series, the Guarantor, but only
to the extent provided in such Parent Guarantee), whether or not the destroyed, lost or stolen
Security or coupon shall be at any time enforceable by anyone, and shall be entitled to all the
benefits of this Indenture equally and proportionately with any and all other Securities or coupons
of that series duly issued hereunder.

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

3.07   Payment of Defaulted Interest; Interest Rights Preserved.

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

          Any interest on any Registered Security of any series which is payable, but is not punctually
paid or duly provided for, on any Interest Payment Date (herein called “Defaulted
Interest”) shall forthwith cease to be payable to the Holder at the close of business on the
relevant Regular Record Date, and such Defaulted Interest shall be paid by the Company (or, if
applicable, the Guarantor), at its election, as provided in either clause (A) or (B) below:

          (A) The Company (or, if applicable, the Guarantor) may elect to make payment of any Defaulted
Interest to the Persons in whose names the Registered Securities of such series (or

27

 

their respective predecessor Securities) are registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest, which Special Record Date shall be fixed in
the following manner. The Company (or, if applicable, the Guarantor) shall notify the Trustee in
writing as to the amount of Defaulted Interest proposed to be paid on each Registered Security of
such series and the date of the proposed payment, and at the same time the Company (or, if
applicable, the Guarantor) 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
reasonably satisfactory to the Trustee for such deposit prior to the date of the proposed payment,
such money when deposited to be held in trust for the benefit of the Persons entitled to such
Defaulted Interest as in this clause provided. Thereupon, the Trustee shall fix a Special Record
Date for the payment of such Defaulted Interest which shall be not more than 15 days and not less
than 10 days prior to the date of the proposed payment and, unless otherwise agreed to by the
Trustee, 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 (and, if applicable, the Guarantor) of such
Special Record Date and, in the name and at the expense of the Company (or, if applicable, the
Guarantor), shall cause notice of the proposed payment of such Defaulted Interest and the Special
Record Date therefor to be mailed, first-class postage prepaid, to each Holder of Registered
Securities of such series at such Holder’s address as it appears in the Security Register, not less
than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest shall
be paid to the Persons in whose names the Registered Securities of such series (or their respective
predecessor Securities) are registered at the close of business on such Special Record Date. In
case a Bearer Security of any series is surrendered at the office or agency in a Place of Payment
for such series in exchange for a Registered Security of such series after the close of business at
such office or agency on any Special Record Date and before the opening of business at such office
or agency on the related proposed date for payment of Defaulted Interest, such Bearer Security
shall be surrendered without the coupon relating to such proposed date of payment and Defaulted
Interest will not be payable on such proposed date of payment in respect of the Registered Security
issued in exchange for such Bearer Security, but will be payable only to the Holder of such coupon
when due in accordance with the provisions of this Indenture.

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

          Subject to the foregoing provisions of this Section 3.07, each Security delivered
under this indenture upon registration of transfer of or in exchange for or in lieu of any other
Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried
by such other Security.

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3.08   Persons Deemed Owners.

          The Company, the Guarantor and the Trustee, and their respective agents, shall treat the
Person in whose name any Registered Security is registered as the owner of such Registered Security
for the purpose of receiving payment of principal of, premium, if any, and (subject to Section
3.07) interest, if any, on, and any Additional Amounts with respect to, such Registered
Security and for all other purposes whatsoever, whether or not such Registered Security shall be
overdue, and neither the Company, the Guarantor nor the Trustee, nor their respective agents, shall
be affected by notice to the contrary.

          The Company, the Guarantor and the Trustee, and their respective agents, may treat the bearer
of any Bearer Security and the bearer of any coupon as the absolute owner of such Bearer Security
or coupon for the purpose of receiving payment thereof or on account thereof and for all other
purposes whatsoever, whether or not such Bearer Security or coupon be overdue, and neither the
Company, the Guarantor nor the Trustee, nor their respective agents, shall be affected by notice to
the contrary.

          None of the Company, the Guarantor, the Trustee, any Paying Agent or the Security Registrar
will have any responsibility or liability for any aspect of the records relating to or payments
made on account of beneficial ownership interests of a Global Security or for maintaining,
supervising or reviewing any records relating to such beneficial ownership interests.

3.09   Cancellation.

          All Securities surrendered for payment, redemption, registration of transfer or exchange or
for credit against any payment in respect of a sinking fund or analogous obligation shall, if
surrendered to any Person other than the Trustee, be delivered to the Trustee and shall be promptly
cancelled by it. The Company and the Guarantor may at any time deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder which the Company or
the Guarantor may have acquired in any manner whatsoever, and all Securities so delivered shall be
promptly cancelled by the Trustee. No Securities shall be authenticated in lieu of or in exchange
for any Securities cancelled as provided in this Section 3.09, except as expressly
permitted by this Indenture. All cancelled Securities held by the Trustee shall be destroyed by
the Trustee, and the Trustee shall, upon written request therefor, deliver to the Company and the
Guarantor a certificate of destruction in respect thereof.

3.10   Computation of Interest.

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

3.11   CUSIP Numbers.

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

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may be placed only on the other identification numbers printed on the Securities. The Company
will promptly notify the Trustee of any change in the “CUSIP” numbers.

IV. REDEMPTION OF SECURITIES AND SINKING FUNDS

4.01   Applicability of Right of Redemption.

          Redemption of Securities (other than pursuant to a sinking fund or analogous provision)
permitted by the terms of any series of Securities shall be made in accordance with such terms and
Sections 4.02, 4.03 and 4.04; provided, however, that, notwithstanding
anything to the contrary in this Article IV, if any such terms of a series of Securities
shall conflict with any provisions of this Article IV, the terms of such series shall
govern.

4.02   Election to Redeem; Notice of Redemption; Partial Redemption.

          The election of the Company to redeem any Securities of any series shall be evidenced by, or
pursuant to an Officers’ Certificate. In case the Company shall desire to exercise such right to
redeem all, or, as the case may be, any part of the Securities of any series in accordance with the
right reserved so to do, it shall give notice of such redemption to Holders of the Securities to be
redeemed as hereinafter provided in this Section 4.02.

          Any notice of redemption to be given to the Holders of Securities to be redeemed as a whole or
in part shall be given in the manner provided in Section 1.05 not less than 30 nor more
than 60 days prior to the date fixed for redemption.

          Each such notice of redemption shall specify the date fixed for redemption and the redemption
price at which Securities are to be redeemed, shall state that the conditions precedent to such
redemption, if any, have occurred and describe the same, and shall state that payment of the
redemption price of the Securities to be redeemed, together with interest accrued thereon to, but
excluding, the date fixed for redemption (except that if such redemption date is an Interest
Payment Date such interest due on such date with respect to a particular Registered Security shall
instead be payable on such Interest Payment Date to the Holder of record at the close of business
on the Regular Record Date for such Interest Payment Date), will be made at the office or agency to
be maintained by the Company in accordance with Section 5.02 (or, if desired by the
Company, at the Corporate Trust Office of the Trustee) upon presentation and surrender of such
securities and that from and after said date fixed for redemption any interest thereon will cease
to accrue, such Securities subject to such redemption shall cease to be outstanding and the
Holder(s) thereof shall have no rights with respect thereto other than the right to receive the
redemption price upon such presentation and surrender. If less than all the Securities of a series
are to be redeemed, the notice to each Holder of Securities to be redeemed shall identify such
Holder’s securities to be redeemed as a whole or in part. In case any Security of a series is to
be redeemed in part only (which part shall be the minimum denomination of the Securities of such
series as set forth pursuant to Section 3.01 or a multiple thereof), the notice which
relates to such Securities shall state the portion of the principal amount to be redeemed, and that
on and after the redemption date, upon surrender of such Security, a new Security or Securities of
the same series in principal amount equal to the unredeemed portion thereof (with, if such series
is a Guaranteed Series, a Parent Guarantee endorsed thereon by the Guarantor) shall be issued. No
Security

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whose denomination is the minimum denomination, as set forth pursuant to Section 3.01,
of principal amount may be redeemed in part.

          To the extent that the Securities of any series have different terms, the Company shall
designate the Securities to be redeemed if less than all of a series are to be redeemed
(“Company Designation”). If less than all the Securities of a series having the
same terms are to be redeemed, the Company shall give the Trustee, not less than 10 days (or such
lesser number of days as the Trustee shall approve) prior to the date fixed by the Company for such
redemption, written notice of the aggregate amount of the Securities to be redeemed, and thereupon
the Trustee shall select, in such manner as in its sole discretion it shall deem appropriate and
fair, the Securities of such series or portions thereof to be redeemed (“Trustee
Selection”), and shall thereafter promptly notify the Company and any Paying Agent in writing
of the Securities of such series or portions thereof to be redeemed. Except in the event of a
Company Designation or a Trustee Selection, notice of redemption published as contemplated by
Section 1.05 need not identify particular Securities to be redeemed.

          Any notice of redemption may be given by the Company pursuant to this Section 4.02 or
may be given, at the Company’s direction, which direction is delivered to the Trustee at least 10
days (or such lesser number of days as the Trustee shall approve) prior to the date such notice is
to be given, by the Trustee in the name and at the expense of the Company.

4.03   Payment of Securities Called for Redemption.

          If notice of redemption shall have been given in the manner provided in Section 4.02,
the Securities or portions of Securities specified in such notice shall become due and payable on
the date and at the place stated in such notice at the applicable redemption price, together with
interest accrued thereon, if any, to, but excluding, the date fixed for redemption, and on and
after such date of redemption (unless the Company shall default in the payment of such Securities
or portions thereof at the redemption price, together with interest accrued thereon, if any, to,
but excluding, the date fixed for redemption) any interest on the Securities or portions of
Securities so called for redemption shall cease to accrue and such Securities and portions of
Securities shall be deemed not to be outstanding hereunder and shall not be entitled to any benefit
under this Indenture except for the right of the Holder(s) thereof to receive, in accordance with
the next sentence, payment of the redemption price, together, if applicable, with accrued interest
thereon, if any, to, but excluding, the date fixed for redemption. On presentation and surrender
of such Securities, on or after the redemption date at the Place of Payment specified in the notice
of redemption, such Securities or specified portions thereof shall be paid and redeemed by the
Company at the applicable redemption price together with interest accrued thereon, if any, to, but,
excluding, the date fixed for redemption; provided, however, that installments of interest on
Bearer Securities that mature on or prior to the redemption date shall be payable only at an office
or agency located outside the United States (except as otherwise provided in Section 5.02)
and, unless otherwise specified as contemplated by Section 3.01, only upon presentation and
surrender of coupons for such interest; provided further, that unless otherwise specified as
contemplated by Section 3.01, installments of interest that mature on Registered Securities
on or prior to the redemption date shall be payable to the Holders of such Securities, or one or
more predecessor Securities, registered as such at the close of business on the relevant Regular
Record Dates according to their terms and the provisions of Section 3.07.

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          If any Bearer Security surrendered for redemption shall not be accompanied by all appurtenant
coupons maturing after the redemption date, such Security may be paid after deducting from the
redemption price an amount equal to the face amount of all such missing coupons, or the surrender
of such missing coupon or coupons may be waived by the Company and the Trustee if there be
furnished to them such security or indemnity as they may require to save each of them and any
Paying Agent harmless. If thereafter the Holder shall surrender to the Trustee or any Paying Agent
any such missing coupon in respect of which a deduction shall have been made from the redemption
price, such Holder shall be entitled to receive the amount so deducted; provided, however, that
interest represented by coupons shall be payable only at an office or agency located outside the
United States (except as otherwise provided in Section 5.02), and, unless otherwise
specified as contemplated by Section 3.01, only upon presentation and surrender of those
coupons.

          Upon presentation and surrender of any Security which is to be redeemed in part only, the
Company shall execute and, if such Security is of a Guaranteed Series, the Guarantor shall endorse
a Parent Guarantee thereon and the Trustee shall authenticate and deliver to the Holder, at the
expense of the Company, a new Security or Securities of the same series of authorized denominations
in principal amount equal to the unredeemed portion of the Security so surrendered.

4.04      Deposit of Funds for Redemption of Securities.

          On or prior to the date fixed for redemption of any Securities as hereinbefore provided in
this Article IV, the Company shall deposit in trust with the Trustee or with any Paying
Agent (or if and to the extent that the Company shall be acting as its own Paying Agent, the
Company shall set aside, segregate and hold in trust) funds sufficient to redeem the Securities or
portions thereof to be redeemed on such redemption date, at the applicable redemption price,
together with interest accrued thereon, if any, to, but excluding, the redemption date.

4.05   Applicability of Sinking Fund.

          Redemption of Securities permitted or required pursuant to a sinking fund for the retirement
of Securities of a series by the terms of such series of Securities established pursuant to
Section 3.01 shall be made in accordance with such terms of such series of Securities
established pursuant to Section 3.01 and this Article IV; provided, however, that,
notwithstanding anything to the contrary in this Article IV, if any such terms of a series
of Securities shall conflict with any provision of this Article IV, the terms of such
series shall govern.

          The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a “mandatory sinking fund payment,” and any payment in
excess of such minimum amount provided for by the terms of Securities of any series is herein
referred to as an “optional sinking fund payment.” If provided for by the terms of
Securities of any series, the cash amount of any mandatory sinking fund payment may be subject to
reduction as provided in Section 4.06.

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4.06   Satisfaction of Mandatory Sinking Fund Payments with Securities.

          Subject to Section 4.07, in lieu of making all or any part of any mandatory sinking
fund payment with respect to any Securities of a series in cash, the Company may at its option (i)
deliver to the Trustee Securities of that series theretofore purchased or otherwise acquired by the
Company, or (ii) receive credit for the principal amount of Securities of that series which have
been previously delivered to the Trustee by the Company or redeemed either at the election of the
Company pursuant to the terms of such Securities or through the application of permitted optional
sinking fund payments pursuant to the terms of such Securities; provided, that such Securities have
not been previously so credited. Such Securities shall be received and credited for such purpose
by the Trustee at the redemption price specified in such Securities for redemption through
operation of the sinking fund and the amount of such mandatory sinking fund payment shall be
reduced accordingly.

4.07   Redemption of Securities for Sinking Funds.

          Not less than 10 days prior to each sinking fund payment date for any series of Securities,
the Company will deliver to the Trustee an Officer’s Certificate specifying the amount of the next
ensuing sinking fund payment for that series pursuant to the terms of that series, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which
is to be satisfied through delivery and/or crediting of Securities of that series pursuant to
Section 4.06 and whether the Company intends to exercise its right to make a permitted
optional sinking fund payment with respect to such series. Such certificate shall be irrevocable,
and upon its delivery, the Company shall be obligated to make the payment, delivery, and/or
crediting therein referred to, if any, on or prior to such sinking fund payment date. In the case
of the failure of the Company to deliver such certificate, the sinking fund payment due with
respect to the next sinking fund payment date for that series of Securities shall be paid entirely
in cash and shall be made in an amount sufficient to redeem the principal amount of such Securities
subject to a mandatory sinking fund payment without the option to deliver or credit Securities as
provided in Section 4.06 and without the right to make any optional sinking fund payment
with respect to such series.

          Any sinking fund payment or payments (mandatory or optional) made in cash, plus any unused
balance of any preceding sinking fund payments made in cash, which shall equal or exceed $100,000
(or the equivalent in Foreign Currency or currency units in which Securities of the series are
payable if applicable), or a lesser sum if the Company shall so request, with respect to the
Securities of any particular series, shall be applied by the Trustee, a Paying Agent or the
Company, if it acts as its own Paying Agent, on the sinking fund payment date next following the
date of such payment, to the redemption of such Securities at the redemption price specified in
such Securities for operation of the sinking fund together with accrued interest, if any, to the
sinking fund payment date. Any sinking fund moneys not so applied or allocated to the redemption
of Securities shall be added to the next cash sinking fund payment received by the Trustee or such
Paying Agent or set aside and segregated by the Company for such series and, together with such
payment, shall be applied in accordance with the provisions of this Section 4.07. Any and
all sinking fund moneys with respect to the Securities of any particular series held by the
Trustee, such Paying Agent or the Company on the last sinking fund payment date with respect to
Securities of such series and not held for the payment or redemption of

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particular Securities shall be applied by the Trustee, such Paying Agent or the Company,
together with other moneys, if necessary, to be deposited sufficient for the purpose, to the
payment of principal of such Securities at maturity.

          Not more than 60 days and not less than 30 days prior to each sinking fund payment date, the
Trustee shall select the Securities to be redeemed upon such sinking fund payment date in
accordance with Section 4.02. The Company shall cause notice of the redemption thereof to
be given not less than 30 nor more than 60 days prior to the sinking fund payment date in the
manner provided in Section 4.02, except that the notice of redemption shall also state that
the Securities of such series are being redeemed by operation of the sinking fund and the sinking
fund payment date. Such notice having been duly given, the redemption of such Securities shall be
made on the sinking fund payment date upon the terms and in the manner stated in Section
4.03.

          Prior to each sinking fund payment date, the Company shall pay to the Trustee or to a Paying
Agent in cash (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 5.10(b)) a sum equal to any interest accrued to, but excluding, the
date fixed for redemption of Securities or portions thereof to be redeemed on such sinking fund
payment date pursuant to this Section 4.07.

V. PARTICULAR COVENANTS

5.01    Payments of Principal, Premium, if any, and Interest, if any, and Additional Amounts.

          The Company covenants and agrees for the benefit of each series of Securities that it will
duly and punctually pay or cause to be paid the principal of, premium, if any, and interest, if
any, on, and any Additional Amounts with respect to, the Securities of that series at the times and
places and in the manner provided herein and in the Securities of that series.

5.02   Office or Agency for Certain Purposes.

          The Company will maintain in each Place of Payment for any series of Securities an office or
agency where Securities of such series (but, except as otherwise provided below, unless such Place
of Payment is located outside the United States, not Bearer Securities) may be presented or
surrendered for payment, where Securities of such series may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Company in respect of the
Securities of such series and this Indenture may be served. If Securities of a series are issuable
as Bearer Securities, the Company will maintain, subject to any laws or regulations applicable
thereto, an office or agency in a Place of Payment for such series that is located outside the
United States where Securities of such series may be presented and surrendered for payment;
provided, however, that such an office or agency shall be maintained, if the Securities of such
series are then listed on The International Stock Exchange of the United Kingdom and the Republic
of Ireland and such stock exchange shall so require, in London, and, if the Securities of such
series are then listed on the Luxembourg Stock Exchange and such stock exchange shall so require,
in Luxembourg and, if the Securities of such series are then listed on any other stock exchange
outside the United States and such stock exchange shall so require, in

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any other required city, so long as the Securities of such series are listed on such
exchanges. The Company will give prompt written notice to the Trustee of the location, and any
change in the location of, any such office or agency.

          No payment of principal of or premium or interest on, or Additional Amounts with respect to,
Bearer Securities shall be made at any office or agency of the Company in the United States or by
check mailed to any address in the United States or by transfer to an account maintained with a
bank located in the United States; provided, however, that payment of principal of and any premium
and interest on, or Additional Amounts with respect to, any Bearer Security may be made in Dollars
at the Corporate Trust Office of the Trustee in the Borough of Manhattan, The City of New York, if
(but only if) payment of the full amount of such principal, premium, interest or Additional Amount
at all offices outside the United States maintained for the purpose by the Company in accordance
with this Indenture is illegal or effectively precluded by exchange controls or other similar
restrictions.

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

5.03   Maintenance of Corporate Existence and Payment of Taxes.

          Each of the Company and the Guarantor will preserve its corporate existence, but this covenant
shall not require the Company or the Guarantor to continue its corporate existence in the event of
a consolidation or merger of the Company or the Guarantor with or into any other corporation in
accordance with the provision of Article XII hereof as a result of which the Company or the
Guarantor shall lose its corporate identity, or in the event of a sale or conveyance of all or
substantially all of the property of the Company or the Guarantor in accordance with the provisions
of said Article XII. Each of the Company and the Guarantor will punctually pay and
discharge, or cause to be paid and discharged, all taxes, assessments and governmental charges or
levies imposed upon or assessed against it which are material to it provided, however, that nothing
herein contained shall require the Company or the Guarantor to pay any such tax, assessment, charge
or levy so long as it shall in good faith contest the validity or the amount of the same by
appropriate legal proceedings and stay any execution thereof.

5.04   Additional Amounts.

          If any Securities of a series provide for the payment of Additional Amounts, the Company and
the Guarantor each agree to pay to the Holder of any such Securities or any coupon appertaining
thereto Additional Amounts as provided in or pursuant to this Indenture or such Securities.
Whenever in this Indenture there is mentioned, in any context, the payment of the principal of or
any premium or interest on, or in respect of, any Security of any series or any coupon, such
mention shall be deemed to include mention of the payment of Additional

35

 

Amounts provided by the terms of such series established hereby or pursuant hereto to the
extent that, in such context, Additional Amounts are, were or would be payable in respect thereof
pursuant to such terms, and express mention of the payment of Additional Amounts (if applicable) in
any provision hereof shall not be construed as excluding Additional Amounts in those provisions
hereof where such express mention is not made.

          Except as otherwise provided in or pursuant to this Indenture or the Securities of any series,
if the Securities of a series provide for the payment of Additional Amounts, at least 10 days prior
to the first Interest Payment Date with respect to such series of Securities (or if the Securities
of such series shall not bear interest prior to maturity, the first day on which a payment of
principal is made), and at least 10 days prior to each date of payment of principal or interest if
there has been any change with respect to the matters set forth in the below-mentioned Officers’
Certificate, the Company or the Guarantor, as the case may be, shall furnish to the Trustee and the
Paying Agent, if other than the Trustee, an Officers’ Certificate instructing the Trustee and such
Paying Agent whether such payment of principal of and premium, if any, or interest, if any, on the
Securities of such series shall be made to Holders of Securities of such series or the coupons
appertaining thereto who are United States Aliens or non-residents of The Netherlands without
withholding for or on account of any tax, assessment or other governmental charge described in the
Securities of such series or pursuant to Section 3.01 with respect to the Securities of
such series. If any such withholding shall be required, then such Officers’ Certificate shall
specify by country the amount, if any, required to be withheld on such payments to such Holders of
Securities or coupons, and the Company agrees to pay to the Trustee or such Paying Agent the
Additional Amounts required by the terms of such Securities. Notwithstanding the foregoing, no
Additional Amounts shall be so payable for or on account of:

          (1) any tax, duty, assessment or other governmental charge imposed by the United States or any
political subdivision or taxing authority thereof or therein;

          (2) any tax, duty, assessment or other governmental charge which would not have been imposed
but for (A) the existence of any present or former connection between such Holder (or between a
fiduciary, settlor, beneficiary, member, shareholder or possessor of a power over such Holder, if
such Holder is an estate, trust, partnership or corporation) and The Netherlands, including,
without limitation, such Holder (or such fiduciary, settlor, beneficiary, member, shareholder or
possessor) being or having been a citizen, national or resident thereof, or being or having been
engaged in a trade or business or present therein or having or having had a permanent establishment
therein, but not including the mere holding or ownership of a Security, or the collection of
principal of and interest on, or the enforcement of, a Security, or (B) the presentation of such
Security for payment more than 30 days after the date on which such payment became due or was
provided for, whichever is later;

          (3) any estate, inheritance, gift, sale, transfer, personal property or similar tax,
assessment or other governmental charge or any other tax, assessment or other governmental charge
which is payable otherwise than by withholding or deduction from payments of (or in respect of)
principal of or any premium or interest on the Securities;

          (4) any tax, duty, assessment or other governmental charge that is imposed or withheld by
reason of the failure to comply by the Holder or the beneficial owner of a Security

36

 

with a request of the Company or the Guarantor addressed to the Holder (A) to provide
information concerning the nationality, residence or identity of the Holder or such beneficial
owner or (B) to make any declaration or other similar claim or satisfy any information or reporting
requirement, which, in the case of (A) or (B), is required or imposed by statute, treaty,
regulation or administrative practice of the taxing jurisdiction as a precondition to exemption
from all or part of such tax, duty, assessment or other governmental charge;

          (5) any estate, inheritance, gift, sales, transfer or personal property tax or any similar
tax, duty, assessment, or other governmental charge;

          (6) where such withholding or deduction is imposed on a payment to an individual and is
required to be made pursuant to any European Union Directive on the taxation of savings income or
any law implementing or complying with or introduced in order to conform to such Directive; or

          (7) any combination of paragraphs (1) through (6).

          Additional Amounts shall not be paid with respect to any payment in respect of any Security to
any Holder who is a fiduciary or partnership or other than the sole beneficial owner of such
Security to the extent such payment would be required by the laws of The Netherlands (or any
political subdivision or taxing authority thereof or therein) to be included in the income for tax
purposes of a beneficiary or settlor with respect to such fiduciary or a member of such partnership
or a beneficial owner who would not have been entitled to such Additional Amounts had it been the
Holder of such Security.

          Each of the Company and the Guarantor jointly and severally covenants to indemnify the Trustee
and any Paying Agent for, and to hold them harmless against, any loss, liability or expense
reasonably incurred without negligence or bad faith on their part arising out of or in connection
with actions taken or omitted by any of them in reliance on any Officers’ Certificate furnished
pursuant to this Section 5.04.

          The provisions of this Section 5.04 shall apply mutatis mutandis to any withholding or
deduction for or on account of any present or future taxes, duties, assessments or other
governmental charges of whatever nature of any jurisdiction in which any successor Person to the
Company is organized, or any political subdivision or taxing authority thereof or therein.

5.05   Restriction on the Creation of Secured Debt.

          After the date hereof, the Guarantor will not at any time create, incur, assume or guarantee,
and will not cause or permit a Restricted Subsidiary to create, incur, assume or guarantee, any
Secured Debt (including the creation of Secured Debt by the securing of existing indebtedness)
without first making effective provision (and the Guarantor covenants that in such case it will
first make or cause to be made effective provision) whereby the Securities then Outstanding and any
other indebtedness of or guaranteed by the Guarantor or such Restricted Subsidiary then entitled
thereto shall be secured equally and ratably with (or prior to) any and all other obligations and
indebtedness thereby secured, so long as any such other obligations and indebtedness shall be so
secured; provided, however, that the foregoing covenants shall not be applicable to Secured Debt
secured solely by one or more of the following Security Interests:

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     (A) (1) any Security Interest upon any property which is a parcel of real property at a
manufacturing plant, a warehouse or an office building and which is hereafter acquired,
constructed, developed or improved by the Guarantor or a Restricted Subsidiary which
Security Interest is created prior to or contemporaneously with, or within 120 days after
(i) in the case of the acquisition of such property, the completion of such acquisition and
(ii) in the case of the construction, development or improvement of such property, the later
to occur of the completion of such construction, development or improvement or the
commencement of operation, use or commercial production (exclusive of test and start-up
periods) of the property, which Security Interest secures or provides for the payment of all
or any part of the acquisition cost of such property or the cost of construction,
development or improvement thereof, as the case may be; (2) the acquisition by the Guarantor
or a Restricted Subsidiary of property subject to any Security Interest upon such property
existing at the time of the acquisition thereof, which Security Interest secures obligations
assumed by the Guarantor or a Restricted Subsidiary; (3) any conditional sales agreement or
other title retention agreement with respect to any property acquired by the Guarantor or
any Restricted Subsidiary; (4) any Security Interest existing on the property or on the
outstanding shares or indebtedness of a corporation or firm at the time such corporation or
firm shall become a Restricted Subsidiary or is merged or consolidated with the Guarantor or
a Restricted Subsidiary; or (5) any Security Interest on property of a corporation or firm
existing at the time such corporation or firm is merged into or consolidated with the
Guarantor or a Restricted Subsidiary or at the time of a sale, lease or other disposition of
the properties of a corporation or firm as an entirety or substantially as an entirety to
the Guarantor or a Restricted Subsidiary; provided, in each case that any such Security
Interest described in clauses (2), (3), (4) or (5) does not
attach to or affect property owned by the Guarantor or any such Restricted Subsidiary prior
to the event referred to in such clauses;

     (B) any Security Interest to secure indebtedness of a Restricted Subsidiary to the
Guarantor or a Restricted Subsidiary;

     (C) mechanics’, materialmen’s, carriers’ or other like liens arising in the ordinary
course of business (including construction of facilities) in respect of obligations which
are not due or which are being contested in good faith;

     (D) any Security Interest arising by reason of deposit with, or the giving of any form
of security to, any governmental agency or any body created or approved by law or
governmental regulations which is required by law or governmental regulation as a condition
to the transaction of any business or the exercise of any privilege, franchise or license;

     (E) Security Interests for taxes, assessments or governmental charges or levies not yet
delinquent or Security Interests for taxes, assessments or governmental charges or levies
already delinquent but the validity of which is being contested in good faith;

     (F) Security Interests (including judgment liens) arising in connection with legal
proceedings so long as such proceedings are being contested in good faith and, in the case
of judgment liens, execution thereon is stayed;

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     (G) landlords’ liens on fixtures located on premises leased by the Guarantor or a
Restricted Subsidiary in the ordinary course of business;

     (H) Security Interests arising in connection with contracts and subcontracts with or
made at the request of the United States, any state thereof, or any department, agency or
instrumentality of the United States or any state thereof;

     (I) any Security Interest that secures an obligation issued by the United States or any
state, territory or possession of the United States or any political subdivision of any of
the foregoing or the District of Columbia, in connection with the financing of the cost of
construction or acquisition of Principal Facility or a part thereof;

     (J) any Security Interest arising by reason of deposits to qualify the Guarantor or a
Restricted Subsidiary to conduct business, to maintain self-insurance, or to obtain the
benefit of, or comply with, laws;

     (K) the extension of any Security Interest existing as of the date of this Indenture on
a Principal Facility to additions, extensions or improvements thereto and not as a result of
borrowing money or the securing of indebtedness incurred after that date; or

     (L) any extension, renewal or refunding (or successive extensions, renewals or
refundings) in whole or in part of any Secured Debt secured by any Security Interest
referred to in the foregoing subparagraphs (A) through (K), inclusive,
provided that the principal amount of such Secured Debt secured thereby shall not exceed the
principal amount outstanding immediately prior to such extension, renewal or refunding, and
that the Security Interest securing such Secured Debt shall be limited to the property
which, immediately prior to such extension, renewal or refunding, secured such Secured Debt
and additions to such property.

          Notwithstanding the foregoing provisions of this Section 5.05, the Guarantor and any
one or more Restricted Subsidiaries may create, incur, assume or guarantee Secured Debt (not
including Secured Debt permitted to be secured under subparagraphs (A) through (L),
inclusive above) in an aggregate amount which, together with all other Secured Debt (not including
Secured Debt permitted to be secured under subparagraphs (A) through (L), inclusive
above) of the Guarantor and its Restricted Subsidiaries which is created, incurred, assumed or
guaranteed after the date hereof and the aggregate value of all Sale and Leaseback Transactions
entered into after the date hereof (not including Sale and Leaseback Transactions referred to in
clause (b) of Section 5.06), does not at the time exceed 15% of the Consolidated
Net Tangible Assets. The term “value” shall mean, with respect to a Sale and Leaseback
Transaction, as of any particular time, the present value (discounted at the rate of interest
implicit in the lease involved in such Sale and Leaseback Transaction, as determined in good faith
by the Guarantor) of the obligation of the lessee thereunder for rental payments (excluding,
however, any amounts required to be paid by such lessee, whether or not designated as rent or
additional rent, on account of maintenance and repairs, insurance, taxes, assessments, water rates
or similar charges or any amounts required to be paid by such lessee thereunder contingent upon the
amount of sales, maintenance and repairs, insurance, taxes, assessments, water rates or similar
charges) during the

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remaining term of such lease (including any period for which such lease has been extended or
may, at the option of the lessor, be extended).

5.06   Restriction on Sale and Leaseback Transactions.

          After the date hereof, the Guarantor will not, and will not cause or permit any Restricted
Subsidiary to, enter into any Sale and Leaseback Transaction, unless (a) the Guarantor or such
Restricted Subsidiary would be entitled to incur Secured Debt only by reason of the last paragraph
of Section 5.05 equal in amount to the value of the Sale and Leaseback Transaction without
equally and ratably securing the Securities as provided in Section 5.05 or (b) the
Guarantor or a Restricted Subsidiary shall apply, within one year after the effective date of such
sale or transfer, or shall have committed within one year after such effective date to apply, an
amount at least equal to the net proceeds of the sale of the property sold and transferred or to be
sold or to be transferred pursuant to such Sale and Leaseback Transaction to (1) the acquisition,
construction, development or improvement of properties, facilities or equipment which are, or, upon
such acquisition, construction, development or improvement will be, a Principal Facility or a part
thereof or (2) the optional redemption of Securities in accordance with the provisions of
Article IV and at the redemption price applicable at the time of such redemption, or the
repayment of Superior Indebtedness of the Guarantor or of any Restricted Subsidiary (other than
Superior Indebtedness owed to the Guarantor or any Restricted Subsidiary), or in part to such
acquisition, construction, development or improvement and in part to such redemption or repayment;
provided, that in lieu of applying an amount equal to all or part of such net proceeds to such
redemption, the Guarantor may, within one year after such sale or transfer, deliver to the Trustee
Securities (other than Securities made the basis of a reduction in any mandatory sinking fund
payment provisions contained in any series of Securities) for cancellation and thereby reduce the
amount to be applied to the redemption of Securities pursuant to clause (2) above by an amount
equal to the aggregate principal amount of Securities so delivered. Securities redeemed or
delivered to the Trustee for cancellation pursuant to this Section 5.06 shall not be used
as credits against mandatory sinking fund payments.

5.07   Restriction on Transfer of Principal Facility to Subsidiaries Other Than Restricted
Subsidiaries.

          After the date hereof, the Guarantor will not, and will not cause or permit any Restricted
Subsidiary to, transfer (whether by merger, consolidation or otherwise) any Principal Facility to
any subsidiary that is not a Restricted Subsidiary, unless it shall apply, within one year after
the effective date of such transaction, or shall have committed within one year after such
effective date to apply an amount equal to the fair value of such Principal Facility at the time of
such transfer, as determined by the Board of Directors of the Guarantor (evidenced by a Board
Resolution), to (a) the acquisition, construction, development, improvement of properties,
facilities or equipment which are, or, upon such acquisition, construction, development or
improvement will be, a Principal Facility or a part thereof or (b) the optional redemption of
Securities in accordance with the provisions of Article IV and at the redemption price
applicable at the time of such redemption or the repayment of other Superior Indebtedness of the
Guarantor or of any Restricted Subsidiary (other than Superior Indebtedness owed to the Guarantor
or any Restricted Subsidiary), or in part to such acquisition, construction, development and in
part to such redemption or repayment; provided that, in lieu of applying an amount equivalent to
all or

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any part of such fair value to such redemption, the Guarantor may, within one year after such
transfer, deliver to the Trustee Securities (other than Securities made the basis of a reduction in
any mandatory sinking payment provisions contained in any series of Securities) for cancellation
and thereby reduce the amount to be applied to the redemption of Securities pursuant to clause
(b) above by an amount equivalent to the aggregate principal amount of the Securities to be
delivered. Securities redeemed or delivered to the Trustee for cancellation pursuant to this
Section 5.07 shall not be used as credits against mandatory sinking fund payments.

5.08   Waiver of Certain Covenants.

          The Guarantor and the Company may omit in any particular instance to comply with any term,
provision or condition set forth in Section 5.02 through Section 5.07, inclusive,
with respect to the Securities of any series and, if expressly provided pursuant to Section
3.01, any additional covenants applicable to the Securities of such series if before the time
for such compliance the Holders of at least a majority in aggregate principal amount of the
Outstanding Securities of such series, by act of such Holders, either shall waive such compliance
in such instance or generally shall have waived compliance with such term, provision or condition,
but no such waiver shall extend to or affect such term, provision or condition except to the extent
so expressly waived, and, until such waiver shall become effective, the obligations of the
Guarantor, the Company and the duties of the Trustee in respect of any such term, provision or
condition shall remain in full force and effect.

5.09   Appointments to Fill Vacancies in Trustee’s Office.

          The Company, whenever necessary to avoid or fill a vacancy in the office of the Trustee, will
appoint, in the manner provided in Section 7.10, a Trustee, so that there shall at all
times be a Trustee hereunder.

5.10   Provisions as to Paying Agent

               (a) If the Company shall appoint a Paying Agent other than the Trustee with respect to any
series of Securities, the Company will cause such Paying Agent to execute and deliver to the
Trustee an instrument in which such agent shall agree with the Trustee subject to this Section
5.10, that it will, in addition to fulfilling the duties provided in Section 317 of the Trust
Indenture Act, at any time during the continuance any such default, upon the written request of the
Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

               (b) If the Company shall act as its own Paying Agent with respect to any series of Securities,
it will comply with Section 317 of the Trust Indenture Act.

               (c) Whenever the Company shall have one or more Paying Agents for any series of Securities, it
will, at or prior to 12:00 p.m. on each due date (except with respect to Securities issued outside
the United States, which the Company will, at or prior to 5:00 p.m. on the day prior to each due
date) of the principal of, premium, if any, or interest, if any, on any Securities of that series,
deposit with a Paying Agent a sum sufficient to pay the principal, premium, if any, or interest, if
any, so becoming due, such sum to be held in trust for the benefit

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of the Holders of such Securities, and (unless such Paying Agent is the Trustee) the Company
will promptly notify the Trustee of its action or failure so to act.

               (d) Anything in this Section 5.10 to the contrary notwithstanding, the Company or the
Guarantor may, at its option, at any time, for the purpose of obtaining a satisfaction and
discharge with respect to one or more or all series of Securities hereunder, or for any other
reason, pay or cause to be paid to the Trustee all sums held in trust for any such series by it, or
by any Paying Agent hereunder, as required by this Section 5.10, such sums to be held by
the Trustee upon the trusts herein contained.

               (e) Anything in this Section 5.10 to the contrary notwithstanding, the agreement to
hold sums in trust as provided in this Section 5.10 is subject to Sections 13.04
and 13.05.

5.11   Annual Officers’ Certificate to Trustee.

          The Company and the Guarantor shall each deliver to the Trustee, within 120 days after the end
of each of their respective fiscal years, a written statement (which need not be contained in or
accompanied by an Officers’ Certificate) signed by its principal executive officer, principal
financial officer or principal accounting officer or other appropriate Authorized Officer, stating
whether or not, to the best of his or her knowledge, the Company or the Guarantor, as the case may
be, is in default in the performance and observance of any of the terms, provisions and conditions
of this Indenture (without regard to notice requirements or periods of grace) and if the Company or
the Guarantor, as the case may be, shall be in default, specifying all such defaults and the nature
and status thereof of which he or she may have knowledge.

5.12   Rule 144A Information

          (A) At any time when the Company is not subject to Sections 13 or 15(d) of the Exchange Act,
the Company shall provide to the Trustee and shall, upon request, provide to any Holder, beneficial
owner or prospective purchaser of Securities, the information required, if any, to be delivered
pursuant to Rule 144A(d)(4) under the Securities Act to facilitate the resale of such Securities
pursuant to Rule 144A under the Securities Act; provided, however, that this Section
5.12(A) shall only apply to Securities that are of a Rule 144A Unguaranteed Series and, at such
time, constitute “restricted securities” within the meaning of Rule 144(a)(3) under the Securities
Act.

          (B) At any time when neither the Company nor the Guarantor is subject to Sections 13 or 15(d)
of the Exchange Act, the Company or the Guarantor shall provide to the Trustee and shall, upon
request, provide to any Holder, beneficial owner or prospective purchaser of Securities, the
information required, if any, to be delivered pursuant to Rule 144A(d)(4) under the Securities Act
to facilitate the resale of such Securities pursuant to Rule 144A under the Securities Act;
provided, however, that this Section 5.12(B) shall only apply to Securities that are of a
Rule 144A Guaranteed Series and, at such time, constitute “restricted securities” within the
meaning of Rule 144(a)(3) under the Securities Act.

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5.13   Further Assurances.

          From time to time whenever reasonably requested by the Trustee, each of the Guarantor and the
Company will make, execute and deliver or cause to be made, executed and delivered any and all such
further and other instruments and assurances as may be reasonably necessary or proper to carry out
the intention or facilitate the performance of the terms of this Indenture.

VI. REMEDIES OF THE TRUSTEE AND HOLDERS ON EVENT OF DEFAULT

6.01   Events of Default.

          “Event of Default,” wherever used herein with respect to Securities of any series,
means any one of the following events (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any administrative or governmental
body) unless such event is specifically deleted or modified in or pursuant to the supplemental
indenture or Officers’ Certificate establishing the terms of such series pursuant to Section
3.01 of this Indenture:

          (A) default in the payment of any interest on, or any Additional Amounts payable in respect of
any interest on, any of the Securities of such series or any coupon appertaining thereto when such
interest or such Additional Amounts, as the case may be, become due and payable, and continuance of
such default for a period of 30 days;

          (B) default in the payment of any principal of or premium, if any, on, or any Additional
Amounts payable in respect of any principal of or premium, if any, on, any of the Securities of
such series when due (whether at maturity or otherwise and whether payable in cash or securities);

          (C) default in the deposit of any sinking fund payment or payment under any analogous
provision when due with respect to any of the Securities of such series;

          (D) default in the performance, or breach, of any covenant or warranty of the Company or the
Guarantor in this Indenture or any Security of such series (other than a covenant or warranty for
which the consequences of breach or nonperformance are addressed elsewhere in this Section
6.01 or a covenant or warranty which has expressly been included in this Indenture, whether or
not by means of a supplemental indenture, solely for the benefit of Securities of a series other
than such series), and continuance of such default or breach (without such default or breach having
been cured or waived in accordance with the provisions of this Indenture) for a period of 90 days
after the Company and the Guarantor have received written notice, by registered or certified mail,
delivered by the Trustee or after the Company, the Guarantor and the Trustee have received written
notice, by registered or certified mail, delivered by the Holders of at least 25% in aggregate
principal amount of the Outstanding Securities of such series, specifying such default or breach
and requiring it to be remedied and stating that such notice is a “notice of default”
hereunder;

          (E) the Company or the Guarantor fails to make any payment when due, including any applicable
grace period, in respect of indebtedness for borrowed money of the Company or

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the Guarantor, which payment is in an amount in excess of $50,000,000, or the Company or the
Guarantor defaults with respect to any indebtedness for borrowed money of the Company or the
Guarantor, which default results in acceleration of any such indebtedness which is in an amount in
excess of $50,000,000;

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

          (G) the commencement by the Company or the Guarantor of a voluntary case or proceeding under
any applicable bankruptcy, insolvency, reorganization or other similar law or of any other case or
proceeding to be adjudicated a bankrupt or insolvent, or the consent by the Company or the
Guarantor to the entry of a decree or order for relief in respect of the Company or the Guarantor
in an involuntary case or proceeding under any applicable bankruptcy, insolvency, reorganization or
other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against
the Company or the Guarantor, or the filing by the Company or the Guarantor of a petition or answer
or consent seeking reorganization or relief under any applicable law, or the consent by the Company
or the Guarantor to the filing of such petition or to the appointment of or taking possession by a
custodian, receiver, conservator, liquidator, assignee, trustee, sequestrator or similar official
of the Company or the Guarantor or of substantially all of the property of the Company or the
Guarantor, or the making by the Company or the Guarantor of an assignment for the benefit of
creditors, or the taking of corporate action by the Company in furtherance of any such action; or

          (H) any other Event of Default provided in or pursuant to this Indenture with respect to
Securities of such series.

6.02   Acceleration of Maturity; Rescission and Annulment.

          If an Event of Default (other than an Event of Default specified in clause (F) or
(G) of Section 6.01) with respect to Securities of any series occurs and is
continuing, then either the Trustee or the Holders of not less than 25% in aggregate principal
amount of the Outstanding Securities of such series may declare the principal of all the Securities
of such series, or such lesser amount as may be provided for in the Securities of such series, and
accrued and unpaid interest, if any, thereon to be due and payable immediately, by a notice in
writing to the Company and the Guarantor (and to the Trustee if given by the Holders), and upon any
such declaration such principal or such lesser amount, as the case may be, and such accrued and
unpaid interest shall become immediately due and payable. If an Event of Default specified in
clause (F) or (G) of Section 6.01 with respect to the Securities of any
series occurs, then the

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principal of all of the Securities of such series, or such lesser amount as may be provided
for in the Securities of such series, and accrued and unpaid interest, if any, thereon shall ipso
facto become and be immediately due and payable without any declaration or other act on the part of
the Trustee or any Holder of the Securities of such series.

          At any time after Securities of any series have been accelerated (whether by declaration of
the Trustee or the Holders or automatically) and before a judgment or decree for payment of the
money due has been obtained by the Trustee as hereinafter in this Article VI provided, the
Holders of not less than a majority in aggregate principal amount of the Outstanding Securities of
such series, by written notice to the Company, the Guarantor and the Trustee, may rescind and annul
such declaration and its consequences if the rescission would not conflict with any judgment or
decree and if all existing Events of Default with respect to that series have been cured or waived
as provided in Section 6.07 except nonpayment of principal (or such lesser amount) or
interest that has become due solely because of the acceleration. No such rescission shall affect
any subsequent default or impair any right consequent thereon.

          The Company, the Guarantor and the Trustee may, to the extent provided in Section
11.01, enter into one or more indentures supplemental hereto with respect to any series of the
Securities which may provide for additional, different or fewer Events of Default with respect to
such series of Securities. Additional, different or fewer Events of Default with respect to such
series of Securities may also be set forth pursuant to Section 3.01.

6.03   Collection of Indebtedness by Trustee; Trustee May Prove Debt.

          The Company covenants that (i) in case a default shall be made in the payment of any
installment of interest on, or any Additional Amounts with respect to, any of the Securities, as
and when the same shall become due and payable, and such default shall have continued for a period
in excess of 30 days, or (ii) in case a default shall be made in the payment of the principal of or
premium, if any, on any of the Securities when and as the same shall have become due and payable,
whether upon maturity of the Securities or upon redemption or upon declaration or otherwise, then,
upon demand of the Trustee, the Company will pay to the Trustee, for the benefit of the Holders of
such Securities, the whole amount that then shall have become due and payable on such Securities
for principal and premium, if any, Interest, if any, and Additional Amounts, if any, with interest
upon the overdue principal and premium, if any, of each such Security and (to the extent legally
enforceable under applicable law) upon any installments of interest or Additional Amounts, at the
rate borne by such Security; and, in addition thereto, such further amount as shall be sufficient
to cover the costs and expenses of collection, including a reasonable compensation to the Trustee,
its agents, attorneys and counsel, and any expenses or liabilities incurred by the Trustee
hereunder other than through its negligence or bad faith.

          All rights of action and of asserting claims under this Indenture, or under any of the
Securities of any series, may be enforced by the Trustee without the possession of any of the
Securities of such series, or the production thereof on any trial or other proceeding relative
thereto, and any such suit or proceeding instituted by the Trustee shall be brought in its own name
as trustee of an express trust, and any recovery of judgment shall be for the ratable benefit of
the Holders of the Securities of such series. In any proceedings brought by the Trustee (and also
any proceedings involving the interpretation of any provision of this Indenture to which the

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Trustee shall be a party), the Trustee shall be held to represent all the Holders of the
Securities of a series, and it shall not be necessary to make any Holders of the Securities of such
series parties to any such proceedings.

          In case of an Event of Default hereunder with respect to Securities of a particular series,
the Trustee may, but, unless first requested so to do by the Holders of at least a majority in
aggregate principal amount of the Outstanding Securities of such series and furnished with
indemnity satisfactory to the Trustee against all costs, expenses and liabilities, shall not be
under any obligation to, proceed to protect and enforce the rights vested in it by this Indenture
by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and
enforce any of such rights, either by suit in equity or by action at law or by proceedings in
bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement
contained in this Indenture or in aid of the exercise of any power granted in this Indenture, or to
enforce any other legal or equitable right vested in the Trustee by this Indenture or by law.
Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or
accept or adopt on behalf of the Holder of any Security any plan of reorganization, arrangement,
adjustment or composition affecting the Securities of any series or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect of the claim of any Holder of any Security
in any such proceeding.

6.04   Application of Proceeds.

          Any money collected by the Trustee with respect to a series of Securities pursuant to
Section 6.03 shall be applied in the following order, at the date or dates fixed by the
Trustee for the distribution of such moneys:

          FIRST: To the payment of all costs and expenses in connection with the collection of such
moneys, and all amounts payable to the Trustee under Section 7.07; and

          SECOND: To the payment of the entire amounts then due and unpaid upon the Securities in
respect of which or for the benefit of which such moneys shall have been collected, without any
preference or priority, ratably according to the amounts due and payable upon such Securities upon
presentation of the several Securities and notation of such payment thereon, if partly paid, and
upon surrender thereof, if fully paid.

          Any surplus then remaining shall be paid to the Company (or, if applicable, the Guarantor) or
to such other person as shall be entitled to receive it.

6.05   Limitations on Suits by Holders.

          Except as set forth in Section 316(b) of the Trust Indenture Act, no Holder of any Security of
any series shall have any right by virtue or by availing itself of any provision of this Indenture
to institute any suit, action or proceeding in equity or at law upon or under or with respect to
this Indenture or for the appointment of a receiver or trustee, or for any other remedy hereunder,
unless such Holder previously shall have given to the Trustee written notice of default and of the
continuance thereof with respect to the Securities of the series, and unless also the Holders of no
less than 25% in aggregate principal amount of the Outstanding Securities of that series shall have
made written request upon the Trustee to institute such action, suit or

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proceeding in its own name as Trustee hereunder and shall have offered to the Trustee such
indemnity as it may require against the costs, expenses and liabilities to be incurred therein or
thereby, and the Trustee for 60 days after its receipt of such notice, request and offer of
indemnity, shall have failed to institute any such action, suit or proceeding and no direction
inconsistent with such written request shall have been given to the Trustee pursuant to Section
6.07; it being understood and intended, and being expressly covenanted by the Holder of every
Security of such series with every other Holder of Securities of such series and the Trustee, that
no one or more Holders of Securities of such series shall have any right in any manner whatever by
virtue or by availing itself of any provision of this Indenture to affect, disturb, prejudice the
rights of the Holders of any other of Securities or to obtain priority over or preference to any
other such Holder, or to enforce any right under this Indenture, except in the manner herein
provided and for the equal, ratable and common benefit of all Holders of Securities of such series.

6.06   Powers and Remedies Cumulative; Delay or Omission Not Waiver.

          All powers and remedies given by this Article VI to the Trustee or to the Holders of
Securities of any series shall, to the extent permitted by law and subject to Section 6.05,
be deemed cumulative and not exclusive of any other such powers and remedies or of any other powers
or remedies available to the Trustee or such Holders, by judicial proceedings or otherwise, to
enforce the performance or observance of the covenants and agreements contained in this Indenture,
and no delay or omission of the Trustee or of any Holder of the Securities of any series to
exercise any right or power accruing upon any default occurring and continuing as aforesaid, shall
impair any such right or power, or shall be construed to be a waiver of any such default or an
acquiescence therein; and, subject to Section 6.05, every power and remedy given by this
Article VI or by law to the Trustee or to such Holders may be exercised from time to time,
and as often as shall be deemed expedient, by the Trustee or by such Holders.

6.07   Control by Holders; Waiver of Default.

          The Holders of a majority in aggregate principal amount of the Outstanding Securities of any
series shall have the right to direct the time, method and place of conducting any proceeding for
any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee with
respect to Securities of such series; provided, however, that such direction shall not be otherwise
than in accordance with law and the provisions of this Indenture; provided further, that nothing in
this Indenture shall impair the right of the Trustee to take any action deemed proper by the
Trustee and which is not inconsistent with such direction by such Holders. The Holders of at least
a majority in aggregate principal amount of the Outstanding Securities of any series may on behalf
of the Holders of all of the Securities of such series waive any past default hereunder with
respect to the securities of such series and its consequences, except (i) a default in the payment
of the principal of, premium, if any, or interest, if any, on, or Additional Amounts with respect
to, any of the Securities of such series or (ii) in respect of a covenant or provision hereof
which, under Section 11.02, cannot be modified or amended without the consent of the Holder
of each Outstanding Security of such series affected. In the case of any such waiver, such default
shall cease to exist, any Event of Default arising therefrom shall be deemed to have been cured for
every purpose of this Indenture, and the Company, Guarantor, the Trustee and the Holders of the
Securities of such series shall be restored to their former positions and rights

47

 

hereunder, respectively; but no such waiver shall extend to any subsequent or other default or
impair any right consequent thereon.

6.08   Undertaking for Costs.

          In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as a Trustee, a court in its discretion
may require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees 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; provided, however, that this
Section 6.08 shall not apply to a suit by the Trustee, the Company or the Guarantor, a suit
by a Holder pursuant to Section 6.05 hereof, or a suit by Holders of more than 10% in
principal amount of the then Outstanding Securities of any series.

VII. CONCERNING THE TRUSTEE

7.01   Certain Duties and Responsibilities.

               (a) Except during the continuance of an Event of Default,

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

          (ii) in the absence of bad faith, willful misconduct or negligence on its part, the Trustee
may conclusively rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture; but in the case of any such certificates or opinions which by any
provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be
under a duty to examine the same to determine whether or not they conform to the requirements of
this Indenture (but need not confirm or investigate the accuracy of mathematical calculations or
other facts stated therein, except to the extent set forth in a supplemental indenture or pursuant
to Section 3.01).

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

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

          (i) this Section 7.01(c) shall not be construed to limit the effect of Section
7.01(a);

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

          (iii) the Trustee shall not be liable with respect to any action taken or omitted to be taken
by it in good faith in accordance with a direction received by it pursuant to Section 6.07;
and

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

               (d) Whether or not therein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section 7.01.

7.02   Notice of Defaults.

          Within 90 days after the occurrence of any default hereunder with respect to the Securities of
any series, the Trustee shall transmit by mail to all Holders of Securities of such series entitled
to receive reports pursuant to Section 8.03, notice of such default hereunder actually
known to a Responsible Officer of the Trustee, unless such default shall have been cured or waived;
provided, however, that, except in the case of a default in the payment of the principal of (or
premium, if any), or interest, if any, on, or Additional Amounts with respect to, any Security of
such series, the Trustee shall be protected in withholding such notice if and so long as the board
of directors, the executive committee or a trust committee of directors and/or Responsible Officers
of the Trustee in good faith determine that the withholding of such notice is in the best interest
of the Holders of Securities and coupons of such series; and provided, further, that in the case of
any default of the character specified in Section 6.01(D) with respect to Securities of
such series, no such notice to Holders shall be given until at least 30 days after the occurrence
thereof. For the purpose of this Section 7.02, the term “default” means any event
which is, or after notice or lapse of time or both would become, an Event of Default with respect
to Securities of such series.

7.03   Certain Rights of Trustee.

          Except as otherwise provided in Section 315 of the Trust Indenture Act:

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

          (B) Any request, direction, order or demand of the Company or the Guarantor mentioned herein
shall be sufficiently evidenced by an instrument signed in the name of the Company or the
Guarantor, as the case may be, by an Authorized Officer thereof (unless other

49

 

evidence in respect thereof be herein specifically prescribed); and any resolution of the
Board of Directors of the Company or the Guarantor may be evidenced to the Trustee by a copy
thereof certified by the Secretary or an Assistant Secretary, or another appropriate officer, of
the Company or the Guarantor, as the case may be;

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

          (D) The Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request, order or direction of any of the Holders, pursuant to the
provisions of this Indenture, unless such Holders shall have offered to the Trustee security or
indemnity satisfactory to the Trustee against the costs, expenses and liabilities which may be
incurred therein or thereby;

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

          (F) The Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent,
order, approval, appraisal, bond, debenture or other paper or document with respect to such series
of Securities, but the Trustee, in its discretion, may make such further inquiry or investigation
into such facts or matters as it may see fit, and, if the Trustee shall determine to make such
further inquiry or investigation, it shall be entitled, during normal business hours of the Company
and the Guarantor and upon reasonable prior notice to the Company and the Guarantor, to examine the
books, records and premises of the Company or the Guarantor, personally or by agent or attorney,
the reasonable costs thereof to be reimbursed to the Trustee by the Company;

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

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

          (I) The Trustee shall not be deemed to have notice of any default or Event of Default unless a
Responsible 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 Corporate Trust Office of
the Trustee, and such notice references the Securities and this Indenture;

          (J) 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

50

 

enforceable by, the Trustee in each of its capacities hereunder (excluding those contemplated
by Section 7.05), and to each agent, custodian and other Person employed to act hereunder;
and

          (K) The Trustee may request that the Company and the Guarantor deliver a certificate setting
forth the names of individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this Indenture.

7.04   Trustee Not Responsible for Recitals, Etc.

          The recitals contained herein and in the Securities or any Parent Guarantee endorsed thereon,
except the Trustee’s certificate of authentication and the representation as to the power of the
Trustee to enter into this Indenture and accept and execute the trusts hereby created, shall be
taken as the statements of the Company and the Guarantor, as applicable, and the Trustee assumes no
responsibility for the correctness of the same. The Trustee makes no representations as to the
validity or sufficiency of this Indenture or of the Securities. The Trustee shall not be
accountable for the use or application by the Company of any of the Securities or of the proceeds
of such Securities.

7.05   Trustee and Others May Hold Securities.

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

7.06   Moneys Held by Trustee or Paying Agent.

          Subject to Sections 13.04 and 13.05, all moneys received by the Trustee or any
Paying Agent, need not be segregated from other funds except to the extent required by law.
Neither the Trustee nor any Paying Agent shall be under any liability for interest on any moneys
received by it hereunder except such as it may agree with the Company (or, if applicable, the
Guarantor). So long as no Event of Default with respect to Securities of any series shall have
occurred and be continuing, all interest allowed on any such moneys shall be paid from time to time
pursuant to, and upon, the written order of the Company (or, if applicable the Guarantor), signed
by an Authorized Officer thereof. The provisions of this Section 7.06 shall not apply to
the Company (or, if applicable, the Guarantor) acting as its own Paying Agent pursuant to
Section 5.10(b).

7.07   Compensation of Trustee and Its Lien.

          Each of the Company and the Guarantor jointly and severally covenants and agrees to pay to the
Trustee from time to time, and the Trustee shall be entitled to, reasonable compensation (which
shall be agreed to from time to time by the Company, the Guarantor and the Trustee and which shall
not be limited by any provision of law in regard to the compensation of a trustee of an express
trust), and, except as herein otherwise expressly provided, the Company and the Guarantor will pay
or reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances
incurred or made by the Trustee in accordance with any of the provisions of this Indenture
(including the reasonable compensation and the expenses and

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disbursements of its counsel and of all persons not regularly in its employ) except any such
expense, disbursement or advance as may arise from its negligence or bad faith. If any property
other than cash shall at any time be subject to the lien of this Indenture, the Trustee, if and to
the extent authorized by a receivership or bankruptcy court of competent jurisdiction or by the
supplemental instrument subjecting such property to such lien, shall be entitled (but shall not be
required) to make advances from funds collected or held in trust by the Trustee as such for the
purpose of preserving such property or of discharging tax liens or other prior liens or
encumbrances thereon. Each of the Company and the Guarantor also jointly and severally covenants
and agrees to indemnify the Trustee, any predecessor Trustee or their agents for, and to hold them
harmless against, any loss, liability or expense incurred without negligence or bad faith on their
part, arising out of or in connection with the acceptance or administration of the trust or trusts
hereunder, including the costs and expenses of defending themselves against any claim (whether
asserted by the Company, the Guarantor or any Holder or any other Person) or liability in
connection with the exercise or performance of any of the Trustee’s powers or duties hereunder, or
in connection with the enforcement the provisions of this Section 7.07, except to the
extent that such loss, liability or expense is due to their own negligence, bad faith or willful
misconduct; provided, however, that the Company and the Guarantor need not pay for any settlement
made without its consent, which consent shall not be unreasonably withheld. The Trustee shall
notify the Company and the Guarantor promptly of any claim for which it may seek indemnification.

          The obligations of the Company and the Guarantor under this Section 7.07 shall
constitute additional indebtedness hereunder. Such additional indebtedness shall be secured by a
lien prior to that of the Securities upon all property and funds held or collected by the Trustee
as such, except funds held in trust for the benefit of the Holders of particular Securities.

          When the Trustee incurs expenses or renders services in connection with an Event of Default
specified in Section 6.01(F) or Section 6.01(G), the expenses (including the
reasonable charges and expenses of its counsel) and the compensation for the services are intended
to constitute expenses of administration under any applicable bankruptcy, insolvency,
reorganization or other similar law.

          The provisions of this Section 7.07 shall survive the termination of this Indenture.

7.08    Right of Trustee to Rely on Certificate of Certain Officers.

          Except as otherwise provided in Section 315 of the Trust Indenture Act, whenever in the
administration of the provisions of this Indenture the Trustee shall deem it necessary or desirable
that a matter be proved or established prior to taking or suffering any action hereunder, such
matter (unless other evidence in respect hereof be herein specifically prescribed) may, in the
absence of negligence or bad faith on the part of the Trustee, be deemed to be conclusively proved
and established by an Officers’ Certificate delivered to the Trustee and such certificate, in the
absence of negligence or bad faith on the part of the Trustee, shall be full warrant to the Trustee
for any action taken, suffered or omitted by it under the provisions of this Indenture upon the
faith thereof.

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7.09   Persons Eligible for Appointment As Trustee.

          There shall at all times be a Trustee hereunder that is a corporation organized and doing
business under the laws of the United States, any state thereof or the District of Columbia,
authorized under such laws to exercise corporate trust powers, having a combined capital and
surplus of at least $50,000,000 and subject to supervision or examination by Federal or state
authority. If such corporation publishes reports of condition at least annually, pursuant to law
or to the requirements of a supervising or examining authority, then for the purposes of this
Section 7.09, the combined capital and surplus of such corporation shall be deemed to be
its combined capital and surplus as set forth in its most recent report of condition so published.
In case at any time the Trustee shall cease to be eligible in accordance with this Section
7.09 or the Trust Indenture Act, the Trustee shall resign immediately in the manner and with
the effect specified in Section 7.10. Neither the Guarantor, the Company nor any Person
directly or indirectly controlling, controlled by, or under common control with the Guarantor or
the Company shall serve as Trustee for the Securities of any series issued hereunder. If the
Trustee has or shall acquire a conflicting interest within the meaning of the Trust Indenture Act,
the Trustee shall either eliminate such interest or resign, to the extent and in the manner
provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture. To the
extent permitted by the Trust Indenture Act, the Trustee shall not be deemed to have a conflicting
interest by virtue of being a trustee under this Indenture with respect to Securities of more than
one series.

7.10   Resignation and Removal of Trustee; Appointment of Successor.

               (a) The Trustee, or any Trustee or Trustees hereafter appointed, may at any time resign with
respect to any one or more or all series of Securities by giving written notice to the Company and
the Guarantor and by giving notice of such resignation to the Holders of Securities in the manner
provided in Section 1.05. Upon receiving such notice of resignation, the Guarantor and
Company shall use their commercially reasonable efforts to promptly appoint a successor Trustee or
Trustees with respect to the applicable series by written instrument executed by order of the Board
of Directors of the Company or the Guarantor, as the case may be, one copy of which instrument
shall be delivered to the resigning Trustee and one copy to the successor Trustee. If no successor
Trustee shall have been so appointed with respect to a particular series and have accepted
appointment within 30 days after the mailing of such notice of resignation, the resigning Trustee
may petition any court of competent jurisdiction for the appointment of a successor Trustee, or any
Holder who has been a bona fide Holder of a Security or Securities of the applicable series for at
least 6 months may, on behalf of himself and all others similarly situated, petition any such court
for the appointment of a successor Trustee. Such court may thereupon after such notice, if any, as
it may deem proper and prescribe, appoint a successor Trustee.

               (b) In case at any time any of the following shall occur:

          (A) the Trustee shall cease to be eligible under Section 7.09 and shall fail to resign
after written request therefor by the Company, the Guarantor or by any such Holder, or

53

 

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

then, in any such case, the Company or the Guarantor may remove the Trustee with respect to the
applicable series of Securities and appoint a successor Trustee by written instrument, in
duplicate, executed by order of the Board of Directors of the Company or the Guarantor, as the case
may be, one copy of which instrument shall be delivered to the Trustee so removed and one copy to
the successor Trustee, or any Holder who has been a bona fide Holder of a Security or Securities of
any such series for at least 6 months may, an behalf of such Holder and all others similarly
situated, petition, any court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee with respect to such series. Such court may thereupon after
such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a
successor Trustee with respect to such series.

          (c) The Holders of a majority in aggregate principal amount of the Outstanding Securities of
any series may at any time remove the Trustee with respect to that series and appoint with respect
to such series a successor Trustee by delivering to the Trustee so removed, to the successor
Trustee so appointed and to the Company and the Guarantor, the evidence provided for in Section
9.01 of the action taken by the Holders.

          (d) Any resignation or removal of the Trustee and any appointment of a successor Trustee
pursuant to this Section 7.10 shall become effective only upon acceptance of appointment by
the successor Trustee as provided in Section 7.11.

7.11 Acceptance of Appointment by Successor Trustee.

     Any successor Trustee appointed under Section 7.10 shall execute, acknowledge and
deliver to the Company, the Guarantor and to the predecessor Trustee with respect to any and all
applicable series an instrument accepting such appointment hereunder, and thereupon the resignation
or removal of the predecessor Trustee shall become effective and such successor Trustee, without
any further act, deed, or conveyance, shall become vested with all the rights, powers, trusts,
duties and obligations with respect of such series of its predecessor hereunder, with like effect
as if originally named as Trustee herein; but, nevertheless, on the written request of the Company,
the Guarantor or of the successor Trustee, the Trustee ceasing to act shall, upon payment of any
such amounts then due it pursuant to the provisions of Section 7.07, execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and trusts with respect to
such series of the Trustee so ceasing to act. Upon the reasonable request of any such successor
Trustee, the Company and the Guarantor shall execute any and all instruments in writing more fully
and certainly vesting in and confirming to such successor Trustee all such rights and powers. Any
Trustee ceasing to act shall, nevertheless, retain a lien upon all property or funds held or
collected by such Trustee to secure any amounts then due it pursuant to Section 7.07.

     In the case of the appointment hereunder of a successor Trustee with respect to the Securities
of one or more (but not all) series, the Company, the Guarantor, the predecessor

54

 

Trustee and each successor Trustee with respect to the Securities of any applicable series
shall execute and deliver an indenture supplemental hereto which shall contain such provisions as
shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of
the predecessor Trustee with respect to the Securities of any series as to which the predecessor
Trustee is not retiring shall continue to be vested in the predecessor Trustee, and shall add to or
change any of the provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such Trustees co-Trustees of the
same trust and that each such Trustee shall be trustee of a trust or trusts hereunder separate and
apart from any trust or trusts hereunder administered by any other such Trustee.

     No successor Trustee with respect to any series of Securities shall accept appointment as
provided in this Section unless at the time of such acceptance such successor Trustee shall with
respect to such series be eligible under Section 7.09.

     Upon acceptance of appointment by a successor Trustee with respect to the Securities of any
series, the Company shall give notice of the succession of such Trustee hereunder to the Holders of
Securities in the manner provided in Section 1.05. If the Company fails to give such
notice within 10 days after acceptance of appointment by the successor Trustee, the successor
Trustee shall cause such notice to be given at the expense of the Company.

7.12 Merger, Conversion or Consolidation of Trustee.

     Any corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or substantially all the
corporate trust business of the Trustee, shall be the successor of the Trustee hereunder without
the execution filing of any paper or any further act on the part of any of the parties hereto,
provided that such successor Trustee shall be eligible under the provisions of Section 7.09
hereof and Section 310(a) of the Trust Indenture Act.

7.13 Authenticating Agents.

     There may be an Authenticating Agent or Authenticating Agents with respect to one or more
series of Securities appointed by the Trustee from time to time with power to act on its behalf and
subject to its direction in connection with the authentication and delivery of Securities of such
series issued upon exchange, transfer or redemption thereof as fully to all intents and purposes as
though such Authenticating Agent had been expressly authorized to authenticate and deliver
Securities, and Securities so authenticated shall be entitled to the benefits of this Indenture and
shall be valid and obligatory for all purposes as though authenticated by the Trustee hereunder.
For all purposes of this Indenture (except in the case of original issuance of Securities and the
issuance of Securities in replacement of lost, stolen, mutilated or destroyed Securities), the
authentication and delivery of Securities by an Authenticating Agent appointed pursuant to the
provisions of this Section 7.13 shall be deemed to be the authentication and delivery of
such Securities “by the Trustee,” and whenever this Indenture provides (except in the case of
original issuance of the Securities and the issuance of Securities in replacement of lost, stolen,
mutilated or destroyed Securities) that “the Trustee shall authenticate and deliver”

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Securities, such authentication and delivery by any Authenticating Agent shall be deemed be
authentication and delivery by the Trustee. Any such Authenticating Agent shall at all times be a
corporation organized and doing business under the laws of the United States or any State or the
District of Columbia, with a combined capital and surplus of at least $50,000,000 and authorized
under such laws to act as an authenticating agent, duly registered to act as such, if and to the
extent required by applicable law and subject to supervision or examination by Federal, State or
District of Columbia authority. If such corporation publishes reports of its condition at least
annually, pursuant to law or the requirements of such authority, then for the purposes of this
Section 7.13 the combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published. If
at any time an Authenticating Agent shall cease to be eligible to act as such in accordance with
the provisions of this Section 7.13, it shall resign immediately in the manner and with the
effect herein specified in this Section 7.13.

     Any corporation into which any Authenticating Agent may be merged or converted or with which
it may be consolidated, or any corporation resulting from any merger, conversion or consolidation
to which any Authenticating Agent shall be a party, or any corporation succeeding to the corporate
agency business of any Authenticating Agent, shall be the successor of the Authenticating Agent
hereunder, if such successor corporation is otherwise eligible to act as such in accordance with
the provisions of this Section 7.13, without the execution or filing of any paper or any
further act on the part of the Trustee or the Authenticating Agent or such successor corporation.

     Any Authenticating Agent may at any time resign by giving written notice of resignation to the
Trustee, the Company and the Guarantor. The Trustee may at any time terminate the agency of any
Authenticating Agent by giving written notice of termination to such Authenticating Agent and to
the Company and the Guarantor. Upon receiving such a notice or resignation or upon a termination,
or in case at any time any Authenticating Agent shall cease to be eligible to act as such in
accordance with the provisions of this Section 7.13, the Trustee may appoint a successor
authenticating agent. Upon the appointment, at any time after the original issuance of any of the
Securities, of any successor, additional or new authenticating agent, the Trustee shall give
written notice of such appointment to the Company and the Guarantor and shall at the expense of the
Company give notice of such appointment to all Holders of Securities of the series with respect to
which such Authenticating Agent will serve in the manner provided in Section 1.05. Any
successor authenticating agent upon acceptance of its appointment pursuant to the provisions of
this Section 7.13 shall become vested with all the rights, powers, duties and obligations
of its predecessor hereunder, with like effect as if initially appointed as an Authenticating
Agent. No successor authenticating agent shall be appointed unless eligible to act as such in
accordance with the provisions of this Section 7.13.

     Any Authenticating Agent by the acceptance of its appointment shall be deemed to have
represented to the Trustee that it is eligible for appointment as Authenticating Agent under this
Section 7.13 and to have agreed with the Trustee that:

     (A) it will perform and carry out the duties of an Authenticating Agent as herein set forth,
including, among other things, the duties to authenticate and deliver Securities when presented to
it in connection with exchanges, registrations of transfer or redemptions thereof;

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     (B) it will keep and maintain, and furnish to the Trustee from time to time as requested by
the Trustee, appropriate records of all transactions carried out by it as Authenticating Agent and
will furnish the Trustee such other information and reports as the Trustee may reasonably require;
and

     (C) it will notify the Trustee promptly if it shall cease to be eligible to act as
Authenticating Agent in accordance with the provisions of this Section 7.13.

     Any Authenticating Agent, by the acceptance of its appointment, shall be deemed to have agreed
with the Trustee to indemnify the Trustee against any loss, liability or expense incurred by the
Trustee and to defend any claim asserted against the Trustee by reason of any acts or failures to
act of such Authenticating Agent, but such Authenticating Agent shall have no liability for any
action taken by it in accordance with the specific written direction of the Trustee.

     The Trustee agrees to pay to each Authenticated Agent from time to time reasonable
compensation and expenses for its services (to the extent such compensation is not paid by the
Company or the Guarantor), and the Trustee shall be entitled to be reimbursed for such payments
subject to the provisions of Section 7.07.

     The provisions of Sections 7.04, 7.05 and 7.08 shall inure to the
benefit of each Authenticating Agent to the same extent that they inure to the benefit of the
Trustee.

     If an appointment with respect to one or more series is made pursuant to this Section
7.13, the Securities of such series may have endorsed thereon, in addition to the Trustee’s
certificate of authentication, an alternate certificate of authentication in substantially the
following form:

     This is one of the Securities of the series designated therein issued under the
within-mentioned Indenture.

J. P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee

By [FULL LEGAL NAME OF AUTHENTICATING AGENT], as Authenticating Agent

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 
	 

	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 	 	 

7.14 Preferential Collection of Claims.

     If and when the Trustee shall be or become a creditor of the Guarantor or Company (or any
other obligor upon the Securities), the Trustee shall be subject to Section 311 of the Trust
Indenture Act regarding the collection of claims against the Guarantor or Company (or any other
obligor upon the Securities).

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VIII. HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY

8.01 Guarantor and Company to Furnish Trustee Names and Addresses of Holders.

     In accordance with Section 312(a) of the Trust Indenture Act, the Guarantor and the Company
shall furnish or cause to be furnished to the Trustee:

     (1) semi annually with respect to Securities of each series not later than March 15 and
September 15 of each year or upon such other dates as are set forth in or pursuant to the Board
Resolution or indenture supplemental hereto authorizing such series, a list, in each case in such
form as the Trustee may reasonably require, of the names and addresses of Holders as of the
applicable date, and

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

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

8.02 Preservation of Information; Communications to Holders.

          (a) The Trustee shall comply with the obligations imposed upon it pursuant to Section 312 of
the Trust Indenture Act.

          (b) Every Holder of Securities or coupons, by receiving and holding the same, agrees that
neither the Company, the Guarantor, the Trustee, any Paying Agent or any Security Registrar shall
be held accountable by reason of the disclosure of any such information as to the names and
addresses of the Holders of Securities in accordance with Section 312(c) of the Trust Indenture
Act, regardless of the source from which such information was derived, and that the Trustee shall
not be held accountable by reason of mailing any material pursuant to a request made under Section
312(b) of the Trust Indenture Act.

8.03 Reports by Trustee.

          (a) The Trustee shall transmit to Holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant thereto. If required by Section 313(a) of the Trust Indenture Act, the
Trustee shall, within 60 days after each May 15 following the first issuance of Securities pursuant
to Section 3.01, transmit, pursuant to Section 313(c) of the Trust Indenture Act, a brief
report dated as of such May 15 with respect to any of the events specified in said Sections 313(a)
and 313(b)(2) of the Trust Indenture Act which may have occurred since the later of the immediately
preceding May 15 and the date of this Indenture.

          (b) The Trustee shall transmit the reports required by Section 313(a) of the Trust Indenture
Act at the times specified therein.

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          (c) Reports pursuant to this Section 8.03 shall be transmitted in the manner and to
the Persons required by Sections 313(c) and 313(d) of the Trust Indenture Act.

8.04 Reports by Guarantor and Company.

     The Guarantor and the Company, pursuant to Section 314(a) of the Trust Indenture Act, shall:

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

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

     (3) transmit within 30 days after the filing thereof with the Trustee, in the manner and to
the extent provided in Section 313(c) of the Trust Indenture Act, such summaries of any
information, documents and reports required to be filed by the Guarantor or the Company pursuant to
clauses (1) and (2) of this Section 8.04 as may be required by rules and regulations
prescribed from time to time by the Commission.

IX. CONCERNING THE HOLDERS

9.01 Evidence of Action Taken by Holders.

     Whenever in this Indenture it is provided that the Holders of a specified percentage or a
majority in aggregate principal amount of the Securities or of any series of Securities may take
any action (including the making of any demand or request, the giving of any notice, consent or
waiver or the taking of any other action) the fact that at the time of taking any such action the
Holders of such specified percentage or majority have joined therein may be evidenced (i) by any
instrument or any number of instruments of similar tenor executed by Holders in person or by agent
or proxy appointed in writing, or (ii) by the record of the Holders of Securities voting in favor
thereof at any meeting of Holders duly called and held in accordance with the provisions of
Article X, or (iii) by a combination of such instrument or instruments and any such record
of such a meeting of Holders.

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9.02 Proof of Execution of Instruments and of Holding of Securities.

     Subject to the provisions of Sections 7.03 and 10.05 and Section 315 of the
Trust Indenture Act, proof of the execution of any instrument by a Holder or his agent or proxy and
proof of the holding by any person of any of the Securities shall be sufficient if made in the
following manner:

     The fact and date of the execution by any such Person of any instrument may be proved by the
certificate of any notary public or other officer authorized to take acknowledgments of deeds to be
recorded in any State within the United States, that the Person executing such instrument
acknowledged to such notary or other officer the execution thereof, or by an affidavit of a witness
to such execution sworn to before any such notary or other such officer. Where such execution is
by an officer of a corporation or association or a member of a partnership on behalf of such
corporation, association or partnership, such certificate or affidavit shall also constitute
sufficient proof of such officer’s or member’s authority. The fact and date of the execution of
any such instrument may also be proved in any other manner which the Trustee may deem sufficient.

     The ownership of Registered Securities may be proved by the Security Register or by a
certificate of the Security Registrar.

     The principal amount and serial numbers of Bearer Securities held by any Person, and the date
of holding the same, may be proved by the production of such Bearer Securities or by a certificate
executed, as depositary, by any trust company, bank, banker or other depositary, wherever situated,
if such certificate shall be deemed by the Trustee to be satisfactory, showing that at the date
therein mentioned such Person had on deposit with such depositary, or exhibited to it, the Bearer
Securities in the amount and with the serial numbers therein described; or such facts may be proved
by the certificate or affidavit of the Person holding such Bearer Securities, if such certificate
or affidavit is deemed by the Trustee to be satisfactory. The Trustee, the Company and the
Guarantor may assume that such ownership of any Bearer Security continues until (i) another
certificate or affidavit bearing a later date issued in respect of the same Bearer Security is
produced, or (ii) such Bearer Security is produced to the Trustee by some other Person, or (iii)
such Bearer Security is surrendered in exchange for a Registered Security, or (iv) such Bearer
Security is no longer Outstanding.

     The fact and date of execution of any such instrument or writing, the authority of the Person
executing the same and the principal amount and serial numbers of Bearer Securities held by the
Person so executing such instrument or writing and the date of holding the same may also be proved
in any other manner which the Trustee deems sufficient; and the Trustee may in any instance require
further proof with respect to any of the matters referred in this Section 9.02.

     If the Company or the Guarantor shall solicit from the Holders of Securities of any series any
request, demand, authorization, direction, notice, consent, waiver or other act, the Company or the
Guarantor, as the case may be, may, at its option, by Board Resolution, fix in advance a record
date for the determination of Holders of Registered Securities entitled to give such request,
demand, authorization, direction, notice, consent, waiver or other act, but the Company and the
Guarantor shall have no obligation to do so. Any such record date shall be fixed at the

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discretion of the Company or the Guarantor, as the case may be. If such a record date is
fixed, such request, demand, authorization, direction, notice, consent, waiver or other act may be
sought or given before or after the record date, but only the Holders of Registered Securities of
record at the close of business on such record date shall be deemed to be the Holders of Registered
Securities for the purpose of determining whether Holders of the requisite proportion of Securities
of such series outstanding have authorized or agreed or consented to such request, demand,
authorization, direction, notice, consent, waiver or other act, and for that purpose the Registered
Securities of such series outstanding shall be computed as of such record date.

     Whenever any act is to be taken hereunder by the Holders of two or more series of Securities
denominated in different currencies or currency units, then, for the purpose of determining the
principal amount of Securities held by such Holders, the aggregate principal amount of the
Securities denominated in a Foreign Currency (or any currency units) shall be deemed to be that
amount of Dollars that could be obtained for such principal amount on the basis of the spot rate of
exchange for such Foreign Currency or such currency unit as determined by the Company or the
Guarantor, as the case may be, or by an authorized Exchange Rate Agent and evidenced to the Trustee
by an Officers’ Certificate of the Company or the Guarantor, as the case may be, as of the date the
taking of such act by the Holders of the requisite percentage in principal amount of the Securities
is evidenced to the Trustee. An “Exchange Rate Agent” may be appointed in advance or from
time to time by the Company or the Guarantor. Any such determination by the Company or the
Guarantor or by any such Exchange Rate Agent shall be conclusive and binding on all Holders, the
Company, the Guarantor and the Trustee, and neither the Company, the Guarantor nor any such
Exchange Rate Agent shall be liable therefor in the absence of bad faith.

     The Trustee may require such additional proof, if any, of any matter referred to in this
Section 9.02 as it shall deem necessary.

     The record of any Holders meeting shall be proved as provided in Section 10.06.

9.03 Securities Owned by Company or the Guarantor Deemed Not Outstanding.

     In determining whether the Holders of the requisite aggregate principal amount of Securities
have concurred in any request, demand, authorization, direction, notice, consent, waiver or other
act under this Indenture, Securities which are owned by the Company, the Guarantor or any other
obligor on the Securities or by any person directly or indirectly controlling or controlled by or
under direct or indirect common control with the Company, the Guarantor or any other obligor on the
Securities shall be disregarded and deemed not to be outstanding for the purpose of any such
determination, except that, for the purposes of determining whether the Trustee shall be protected
in relying on any such request, demand, authorization, direction, notice, consent, waiver or other
act, only Securities which a Responsible Officer of the Trustee actually knows are so owned as
conclusively evidenced by the Security Register shall be so disregarded. The Company shall furnish
the Trustee, upon its reasonable request, with a list of such other obligors and Persons so
controlling, controlled by or under common control with the Company, the Guarantor or such other
obligors. Securities so owned which have been pledged in good faith may be regarded as outstanding
for the purposes of this Section 9.03, if the pledgee shall establish to the satisfaction
of the Trustee that the pledgee has

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the right to vote such Securities and that the pledgee is not a Person directly or indirectly
controlling or controlled by or under direct or indirect common control with the Company, the
Guarantor or any such other obligor. Subject to the provisions of Section 315 of the Trust
Indenture Act, in case of a dispute as to such right, any decision by the Trustee, taken upon the
advice of counsel, shall be full protection to the Trustee.

9.04 Right of Revocation of Action Taken.

     At any time prior to (but not after) the evidencing to the Trustee, as provided in Section
9.01, of the taking of any action by the Holders of the percentage in aggregate principal
amount of the Securities or of any series of Securities specified in this Indenture in connection
with such action, any Holder of a Security the serial number of which is shown, by evidence, to be
included in the Securities the Holders of which have consented to such action may, by filing
written notice with the Trustee at its principal office and upon proof of holding as provided in
Section 9.02, revoke such action so far as concerns such Security. Except as aforesaid,
any such action taken by the Holder of any Security shall be conclusive and binding upon such
Holder and upon all future holders and owners of such Security, and of any Security issued in
exchange therefor or in place thereof, irrespective of whether or not any notation in regard
thereto is made upon such Security or any Security issued in exchange therefor or in place thereof.
Any action taken by the Holders of the percentage in aggregate principal amount of the Securities
specified in this Indenture in connection with such action shall be conclusively binding upon the
Company, the Guarantor, the Trustee and the Holders of all the Securities.

X. HOLDERS’ MEETINGS

10.01 Purposes for Which Holders’ Meetings May be Called.

     A meeting of Holders may be called at any time and from time to time pursuant to this
Article X for any of the following purposes:

     (A) to give any notice to the Company, the Guarantor or to the Trustee, or to give any
directions to the Trustee, or to waive or to consent to the waiving of any default hereunder and
its consequences, or to take any other action authorized to be taken by Holders pursuant to
Article VI;

     (B) to remove the Trustee and appoint a successor Trustee pursuant to Article VII;

     (C) to consent to the execution of an indenture or indentures supplemental hereto pursuant to
Section 11.02; or

     (D) to take any other action authorized to be taken by or on behalf of the Holders of any
specified aggregate principal amount of the Securities under any other provision of this Indenture
or under applicable law.

10.02 Call of Meetings by Trustee.

     The Trustee may at any time call a meeting of Holders of any series to be held at such time
and at such place in the Borough of Manhattan, The City of New York, as the Trustee shall

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determine or, with the approval of the Company, at any other place. Notice of every meeting
of Holders, setting forth the time and the place of such meeting and in general terms the action
proposed to be taken at such meeting, shall be given by the Trustee, in the manner provided in
Section 1.05, not less than 20 nor more than 180 days prior to the date fixed for the
meeting, to the Holders of Securities of such series.

10.03 Company, Guarantor and Holders May Call Meeting.

     In case the Company, pursuant to a resolution of its Board of Directors, the Guarantor,
pursuant to a resolution of its Board of Directors, or the Holders of at least 10% in aggregate
principal amount of the Outstanding Securities of any series, shall have requested the Trustee to
call a meeting of Holders of such series, by written request setting forth in general terms the
action proposed to be taken at the meeting, and the Trustee shall not have made the mailing of the
notice of such meeting within 20 days after receipt of such request, then the Company, the
Guarantor or the Holders of such Securities in the amount above specified may determine the time
and the place in the Borough of Manhattan, The City of New York (or, with the approval of the
Company, such other place), for such meeting and may call such meeting to take any action
authorized in Section 10.01, by giving notice thereof as provided in Section 10.02.

10.04 Persons Entitled to Vote at Meeting.

     To be entitled to vote at any meeting of Holders, a Person shall be (i) the Holder of one or
more Securities with respect to which such meeting is being held or (ii) a Person appointed by an
instrument in writing as proxy for the Holder or Holders of such Securities by a Holder of one or
more such Securities. The only Persons who shall be entitled to be present or to speak at any
meeting of Holders shall be the Persons entitled to vote at such meeting and their counsel and any
representatives of the Trustee and its counsel and any representatives of the Company and the
Guarantor and their respective counsel.

10.05 Determination of Voting Rights; Conduct and Adjournment of Meeting.

     Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable
regulations as it may deem advisable for a meeting of Holders, in regard to proof of the holding of
Securities and of the appointment of proxies, and in regard to the appointment and duties of
inspectors of votes, the submission and examination of proxies, certificates and other evidence of
the right to vote, and such other matters concerning the conduct of the meeting as it shall think
fit. Such regulations may provide that written instruments appointing proxies, regular on their
face, may be presumed valid and genuine without the proof specified in Section 9.02 or
other proof. Except as otherwise permitted or required by any such regulations, the holding of
Securities shall be proved in the manner specified in Section 9.02 and the appointment of
any proxy shall be proved in the manner specified in said Section 9.02 or by having the
signature the person executing the proxy witnessed or guaranteed by any bank, banker, trust company
or firm satisfactory to the Trustee.

     The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting,
unless the meeting shall have been called by the Company or the Guarantor or by Holders as provided
in Section 10.03, in which case the Company, the Guarantor or the Holders

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calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A
permanent chairman and a permanent secretary of the meeting shall be elected by vote of the Holders
of a majority in principal amount of the Securities represented at the meeting and entitled to
vote.

     Subject to the provisions of Section 9.03, at any meeting, each Holder of a Security
of the applicable series or related proxy shall be entitled to vote with respect to the outstanding
Securities of such series held or represented by him; provided, however, that no vote shall be
counted at any meeting in respect of any Security challenged as not outstanding and ruled by the
chairman of the meeting to be not Outstanding.

     The chairman of the meeting shall have no right to vote other than by virtue of Securities of
such series held by him or instruments in writing as aforesaid duly designating him as the person
to vote on behalf of other Holders of such series. Any meeting of Holders duly called pursuant to
Section 10.02 or 10.03 may be adjourned from time to time, and the meeting may be
held as so adjourned without further notice.

     At any meeting, the presence of persons holding or representing Securities with respect to
which such meeting is being held in an aggregate principal amount sufficient to take action upon
the business for the transaction of which such meeting was called shall be necessary to constitute
a quorum; but, if less than a quorum be present, the persons holding or representing a majority of
the Securities represented at the meeting may adjourn such meeting with the same effect, for all
intents and purposes, as though a quorum had been present.

10.06 Counting Votes and Recording Action of Meeting.

     The vote upon any resolution submitted to any meeting of Holders of a series of Securities
shall be by written ballots on which shall be subscribed the signatures of the Holders of
Securities of such series or of their representatives by proxy and the serial numbers and principal
amounts of the Securities of such series held or represented by them. The permanent chairman of
the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for
or against any resolution and who shall make and file with the secretary of the meeting their
verified written reports in triplicate of all votes cast at the meeting. A record in triplicate of
the proceedings of each meeting of Holders shall be prepared by the secretary of the meeting, and
there shall be attached to said record the original reports of the inspectors of votes on any vote
by ballot taken thereat and affidavits by one or more persons having knowledge of the facts setting
forth a copy of the notice of the meeting and showing that said notice was given as provided in
Section 10.02 or 10.03. The record shall show the serial numbers of the securities
voting in favor of or against any resolution. The record shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting, and one of the triplicates shall
be delivered to the Company, another to the Guarantor and the other to the Trustee to be preserved
by the Trustee, the latter to have attached thereto the ballots voted at the meeting.

     Any record so signed and verified shall be conclusive evidence of the matters therein stated.

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XI. SUPPLEMENTAL INDENTURES

11.01 Supplemental Indentures Without Consent of Holders.

     The Company, when authorized by a Board Resolution, the Guarantor, when authorized by a Board
Resolution, and the Trustee may from time to time and at any time enter into an indenture or
indentures supplemental hereto (which shall, but only to the extent applicable, conform to the
provisions of the Trust Indenture Act as it shall be in force at the date of execution of such
indenture or indentures) for one or more of the following purposes:

     (A) to convey, transfer, assign, mortgage or pledge to the Trustee as security for the
Securities any property or assets which the Company or the Guarantor may desire;

     (B) to evidence the succession of another corporation to the Company or the Guarantor, or
successive successions, and the assumption by the successor corporation of the covenants,
agreements and obligations of the Company, pursuant to Article XII, or of the Guarantor, as
the case may be;

     (C) to add to the covenants and agreements of the Company or of the Guarantor such further
covenants, agreements, restrictions or conditions for the protection of the Holders of the
Securities of all or any series as its Board of Directors and the Trustee shall consider to be for
the protection of the Holders of Securities of such series (and if such covenants, agreements,
restrictions or conditions are to be for the benefit of less than all series of Securities,
specifying the series to which such covenants, agreements, restrictions or conditions are
applicable), and to make the occurrence, or the occurrence and continuance, of a default in any
such additional covenants, agreements, restrictions or conditions a default or an Event of Default
permitting the enforcement of all or any of the several remedies provided in this Indenture as
herein set forth; provided, however, that, in respect of any such additional covenant, agreement,
restriction or condition, such supplemental indenture may provide for a particular period of grace
after default (which period may be shorter or longer than that allowed in the case of other
defaults) or may provide for an immediate enforcement upon such default or may limit the remedies
available to the Trustee upon such default or may limit the right of the Holders of a majority in
aggregate principal amount of the Securities of a particular series to waive such default;

     (D) to add, delete or modify any Events of Default with respect to all or any series of the
Securities, the form and terms of which are being established pursuant to such supplemental
indenture as permitted in Sections 2.01, 3.01 and 3.03 (and, if any such
Event of Default is applicable to fewer than all such series of the Securities, specifying the
series to which such Event of Default is applicable) and to specify the rights and remedies of the
Trustee and the Holders of such Securities in connection therewith;

     (E) to prohibit the authentication and delivery of additional series of Securities;

     (F) to cure any ambiguity or to correct or supplement any provision contained herein in any
supplemental indenture which may be defective or inconsistent with any other provisions contained
herein or in any supplemental indenture;

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     (G) to make such other provisions in regard to matters or questions arising under this
Indenture as shall not be inconsistent with the provisions of this Indenture or any supplemental
indenture and shall not adversely affect the interests of the holders of the Securities in any
material respect;

     (H) to establish the form and terms of the Securities (or any related Parent Guarantees) of
any series as permitted in Sections 2.01, 3.01 and 3.03, or to authorize
the issuance of additional Securities of a series previously authorized or to add to the
conditions, limitations or restrictions on the authorized amount, terms or purposes of issue,
authentication or delivery of the Securities of any series, as herein set forth, or other
conditions, limitations or restrictions thereafter to be observed; and

     (I) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee
with respect to the Securities of one or more series or to add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Trustee, pursuant to the requirements of Section 7.11.

     The Trustee is hereby authorized to join with the Company and the Guarantor in the execution
of any such supplemental indenture, to make any further appropriate agreements and stipulations
which may be therein contained and to accept the conveyance, transfer, assignment, mortgage, or
pledge of any property thereunder, but the Trustee shall not be obligated to enter into any such
supplemental indenture which affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise. In addition, the Trustee shall not be obligated to enter into any
supplemental indenture which provides for the issuance of Securities of any series denominated in a
Foreign Currency or currency unit, if the Trustee determines in its reasonable discretion that it
would not be able to properly fulfill its obligations hereunder and thereunder in respect of such
Securities or to do so would be unduly burdensome to the Trustee.

     Any supplemental indenture authorized by the provisions of this Section 11.01 shall be
executed by the Company, the Guarantor and the Trustee and shall not require the consent of the
Holders of any of the Securities at the time outstanding, notwithstanding Section 11.02.

11.02 Supplemental Indentures With Consent of Holders.

     With the consent (evidenced as provided in Section 9.01) of the Holders of not less
than a majority of the aggregate principal amount of the Outstanding Securities of any series
affected by such supplemental indenture, the Company, when authorized by or pursuant to a
resolution of its Board of Directors, the Guarantor, when authorized by or pursuant to a resolution
of its Board of Directors, and the Trustee may from time to time and at any time enter into an
indenture or indentures supplemental hereto (which shall, but only to the extent applicable,
conform to the provisions of the Trust Indenture Act as shall be in force at the date of execution
of such supplemental indenture or indentures) for the purpose, with respect to Securities of such
series, of adding any provisions to or changing in any manner or eliminating any of the provisions
of this Indenture or of any supplemental indenture with respect to Securities of such series or of
modifying in any manner the rights of the Holders of the Securities of such series; provided,

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however, that no such supplemental indenture shall, without the consent of the Holder of each
Security so affected:

     (1) change the Stated Maturity of the principal of, or premium, if any, or any installment of
interest, if any, on, or any Additional Amounts, if any, with respect to, any Security, or reduce
the principal amount thereof or the premium, if any, thereon or the rate (or modify the calculation
of such rate) of interest thereon, or reduce the amount payable upon redemption thereof at the
option of the Company or repayment thereof at the option of the Holder, or reduce any Additional
Amounts payable with respect thereto, or change the obligation of the Company and the Guarantor to
pay Additional Amounts pursuant to Section 5.04 (except as contemplated by Article
XII and permitted by Section 11.01, or reduce the amount of the principal of any
Original Issue Discount Security that would be due and payable upon a declaration of acceleration
of the maturity thereof pursuant to Section 6.02 or the amount thereof provable in
bankruptcy pursuant to Section 6.03, or adversely affect any right of repayment at the
option of any Holder with respect to any Security, or change the Place of Payment where or the
currency in which the principal of, any premium or interest on, or any Additional Amounts with
respect to, any Security is payable, or impair the right to institute suit for the enforcement of
any such payment on or after the Stated Maturity thereof (or, in the case of redemption, on or
after the redemption date or, in the case of repayment at the option of the Holder, on or after the
date for repayment) in each case as such Stated Maturity, redemption date or date for repayment
may, if applicable, be extended in accordance with the terms of such Security or any coupon
appertaining thereto, or, in the case of any Security which is convertible into or exchangeable for
other securities, impair the right to institute suit to enforce the right to convert or exchange
such Security in accordance with its terms;

     (2) reduce the aggregate percentage in principal amount of the Outstanding Securities of any
series, the consent of whose Holders is required for any such supplemental indenture, or the
consent of whose Holders is required for any waiver (of compliance with certain provisions of this
Indenture or certain defaults hereunder and their consequences) provided for in Section
5.08 or Section 6.07 of this Indenture;

     (3) modify any of the provisions of this Section 11.02 or Section 5.08 or
Section 6.07, except to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent of the Holder of each
Outstanding Security affected thereby; or

     (4) make any change that adversely affects the right, if any, to convert or exchange any
Security for common stock or other securities in accordance with its terms.

     Upon the request of the Company and the Guarantor, accompanied by a copy of the Board
Resolutions authorizing the execution of any such supplemental indenture, and upon the filing with
the Trustee of evidence of the consent of the Holders as aforesaid, the Trustee shall join with the
Company and the Guarantor in the execution of such supplemental indenture unless such supplemental
indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise,
in which case the Trustee may in its discretion but shall not be obligated to enter into such
supplemental indenture.

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

     It shall not be necessary for the consent of the Holders under this Section 11.02 to
approve the particular form of any proposed supplemental indenture, but it shall be sufficient if
such consent shall approve the substance thereof.

     Promptly after the execution by the Company, the Guarantor and the Trustee of any supplemental
indenture under this Section 11.02, the Company shall give notice, setting forth in general
terms the substance of such supplemental indenture, to the Holders of Securities in the manner
provided in Section 1.05. Any failure of the Company to give such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any such supplemental
indenture.

11.03 Effect of Supplemental Indentures.

     Upon the execution of any supplemental indenture pursuant to the provisions of this
Article XI, this Indenture shall be and be deemed to be modified and amended in accordance
therewith and the respective rights, limitation of rights, obligations, duties and immunities under
this Indenture of the Trustee, the Company, the Guarantor and the Holders of Securities shall
thereafter be determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of any such supplemental indenture
shall be and be deemed to be part of the terms and conditions of this Indenture for any and all
purposes.

11.04 Notation on Securities in Respect of Supplemental Indentures.

     Securities authenticated and delivered after the execution of any supplemental indenture
pursuant to the provisions of this Article XI or after any action taken at a Holders
meeting pursuant to the provisions of Article X may, and if required by the Trustee shall,
bear a notation in form approved by the Trustee as to any matter provided for in such supplemental
indenture or as to any such action. If the Company, the Guarantor and the Trustee shall so
determine, new Securities of any series so modified as to conform, in the opinion of the Company,
the Guarantor and the Trustee, to any modification of this Indenture contained in any such
supplemental indenture may be prepared by the Company or the Guarantor, authenticated by the
Trustee and delivered in exchange for the Securities of such series then outstanding.

11.05 Opinion of Counsel to Be Given Trustee.

     The Trustee, subject to Section 7.03 and, to the extent applicable, Section 315 of the
Trust Indenture Act, shall receive an Opinion of Counsel or an Officers’ Certificate of the Company
and the Guarantor as conclusive evidence that any such supplemental indenture is authorized by the
terms of this Indenture and that is proper for the Trustee under the provisions of this Article
XI to join in the execution thereof.

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XII. CONSOLIDATION, MERGER AND SALE

12.01 Company and Guarantor May Consolidate or Merge, Etc.

     Subject to the provisions of Section 12.02, nothing contained in this Indenture shall
prevent any consolidation of the Company (or the Guarantor) with or the merger of the Company (or
the Guarantor) into any other Person, or any merger of any other Person into the Company (or into
the Guarantor) or successive consolidations or mergers to which the Company (or the Guarantor) or
its successor or successors shall be a party or parties, or shall prevent any sale, transfer or
lease of all or substantially all of the properties and assets of the Company or of the Guarantor
to any other Person lawfully entitled to acquire the same.

12.02 Conditions to Consolidation or Merger, Etc.

     (A) The Company shall not consolidate with or merge into any other Person or sell, transfer or
lease all or substantially all of its properties and assets to another Person unless (i) in the
case of a merger, the Company shall be the continuing Person, or (ii) in case the Company shall
consolidate with or merge into another Person (and the Company shall not be the continuing Person)
or sell, transfer or lease all or substantially all of its properties and assets to another Person,
the Person formed by such consolidation or into which the Company is merged or the Person which
acquires by sale or transfer, or which leases, all or substantially all of the properties and
assets of the Company shall assume, by an indenture supplemental hereto executed and delivered to
the Trustee, the due and punctual payment of the principal of (and premium, if any) and interest
on, and the Company’s other obligations under this indenture in respect of, the Securities.

     (B) The Guarantor shall not consolidate with or merge into any other Person or sell, transfer
or lease all or substantially all of its properties and assets to another Person unless (i) in the
case of a merger, the Guarantor shall be the continuing Person, or (ii) in case the Guarantor shall
consolidate with or merge into another Person (and the Guarantor shall not be the continuing
Person) or sell, transfer or lease all or substantially all of its properties and assets to another
Person, the Person formed by such consolidation or into which the Guarantor is merged or the Person
which acquires by sale or transfer, or which leases, all or substantially all of the properties and
assets of the Guarantor shall assume, by an indenture supplemental hereto executed and delivered to
the Trustee, the Guarantor’s obligations in respect in respect of its guarantees under this
indenture;

     (C) Every such successor Person, upon executing such indenture supplemental hereto, in form
reasonably satisfactory to the Trustee, shall succeed to (and, except in the case of a lease, be
substituted for) the Company or the Guarantor, as the case may be, with the same effect as if it
had been an original party hereto (which succession shall, except in the case of a lease, relieve
the Company or the Guarantor, as the case may be, of all liabilities hereunder), and such successor
Person shall possess and from time to time may exercise each and every power hereunder of the
Company or the Guarantor, as the case may be, and may execute and deliver Securities or Parent
Guarantees, as the case may be, hereunder, either in the name of the Company or the Guarantor, as
the case may be, or of such successor Person, and any act or proceeding required by this Indenture
to be done or performed by any board or officer of the

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Company or the Guarantor, as the case may be, may be done or performed with like force and
effect by the like board or officer of such successor Person.

12.03 Documents and Opinion to Be Furnished to the Trustee.

     The Company and the Guarantor each covenant and agree that if it shall consolidate with or
merge into any other Person or if it shall sell, transfer or lease all or substantially all of its
properties and assets, it will promptly furnish to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that its covenants contained in Section 12.02 have been
complied with.

XIII. SATISFACTION AND DISCHARGE OF INDENTURE;

DEFEASANCE; UNCLAIMED MONEYS

13.01 Satisfaction and Discharge.

     Unless pursuant to Section 3.01 this Section 13.01 is declared not applicable
with respect to the Securities of any series, upon the direction of the Company or the Guarantor by
a written order, this Indenture shall cease to be of further effect with respect to any series of
Securities specified in such written order and any coupons appertaining thereto, and the Trustee,
on receipt of such written order, at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture as to such series, when

     (A) either

     (i) all Securities of such series theretofore authenticated and delivered and
all coupons appertaining thereto (other than (1) coupons appertaining to Bearer
Securities of such series surrendered in exchange for Registered Securities of such
series and maturing after such exchange whose surrender is not required or has been
waived as provided in Section 3.05, (2) Securities and coupons of such
series which have been destroyed, lost or stolen and which have been replaced or
paid as provided in Section 3.06, (3) coupons appertaining to Securities of
such series called for redemption and maturing after the relevant redemption date
whose surrender has been waived as provided in Section 4.03 and (4)
Securities and coupons of such series for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Company or the Guarantor
and thereafter repaid to the Company or the Guarantor or discharged from such trust,
as provided in Section 13.05) have been delivered to the Trustee for
cancellation; or

     (ii) all Securities of such series and, in the case of (1) or (2) below, if
applicable, any coupons appertaining thereto not theretofore delivered to the
Trustee for cancellation

     (1) have become due and payable,

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

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     (3) if redeemable at the option of the Company, 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, in the case of (1), (2) or (3) above, has
deposited or caused to be deposited with the Trustee as trust funds in trust for
such purpose, money in the currency in which such Securities are payable or
Government Obligations (determined on the basis of the currency in which such
Securities and coupons appertaining thereto are then specified as payable at Stated
Maturity) in an amount sufficient to pay and discharge the entire indebtedness on
such Securities and any coupons appertaining thereto not theretofore delivered to
the Trustee for cancellation, including the principal of, any premium and interest
on, and, to the extent that the Securities of such series provide for the payment of
Additional Amounts thereon and the amount of any such Additional Amounts which are
or will be payable with respect to the Securities of such series is at the time of
deposit reasonably determinable by the Company (in the exercise by the Company of
its sole and absolute discretion), any Additional Amounts with respect to, such
Securities and any coupons appertaining thereto, to the date of such deposit (in the
case of Securities which have become due and payable) or to the maturity thereof, as
the case may be;

     (B) the Company or the Guarantor, as the case may be, has paid or caused to be paid all other
sums payable hereunder by the Company with respect to the Outstanding Securities of such series and
any coupons appertaining thereto; and

     (C) the Company or the Guarantor, as the case may be, has delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent herein
provided for relating to the satisfaction and discharge of this Indenture as to such series have
been complied with.

     In the event there are Securities of two or more series Outstanding hereunder, the Trustee
shall be required to execute an instrument acknowledging satisfaction and discharge of this
Indenture only if requested to do so with respect to Securities of such series as to which it is
Trustee and if the other conditions thereto are met.

     Notwithstanding the satisfaction and discharge of this Indenture with respect to any series of
Securities, the obligations of the Company and the Guarantor to the Trustee under Section
7.07 and, if money shall have been deposited with the Trustee pursuant to subclause
(ii) of clause (A) of this Section 13.01, the obligations of the Company, the
Guarantor and the Trustee with respect to the Securities of such series under Sections
3.05, 3.06, 5.02, 5.10, 13.03 and 13.06 and with
respect to the payment of Additional Amounts, if any, with respect to such Securities as
contemplated by Section 5.04 (but only to the extent that the Additional Amounts payable
with respect to such Securities exceed the amount deposited in respect of such Additional Amounts
pursuant to Section 13.01(A)(ii)), any rights of Holders of the Securities of such series
(unless otherwise provided pursuant to Section 3.01 with respect to the Securities of such
series) to require the Company and the Guarantor to repurchase or repay, and the obligations of the

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Company to repurchase or repay, such Securities at the option of the Holders pursuant to
Section 3.01 hereof, and any rights of Holders of the Securities of such series (unless
otherwise provided pursuant to Section 3.01 with respect to the Securities of such series)
to convert or exchange, and the obligation of the Company to convert or exchange, such Securities
into common stock or other securities, shall survive; provided, however, that following the
satisfaction and discharge of this Indenture with respect to any series of Securities whose Holders
have the right to require the Company to repurchase or repay such Securities or to convert or
exchange such Securities into common stock or other securities, the right of the Holder to require
repurchase, repayment, conversion or exchange, as the case may be, of any such Security and the
Company’s obligation to repurchase, repay, convert or exchange, as the case may be, any such
Security shall (unless otherwise provided pursuant to Section 3.01 with respect to the
Securities of such series) terminate immediately following the close of business on the final
Stated Maturity of such Security or immediately following the close of business on any earlier
redemption date of such Security (so long as the Company does not default in the payment of the
redemption price plus accrued and unpaid interest, if any, due on such redemption date), as the
case may be.

13.02 Defeasance and Covenant Defeasance.

          (a) Unless pursuant to Section 3.01, either or both of (i) defeasance of the
Securities of or within a series under clause (b) of this Section 13.02 or (ii)
covenant defeasance of the Securities of or within a series under clause (c) of this
Section 13.02 shall not be applicable with respect to the Securities of such series, then
such provisions, together with the other provisions of this Section 13.02 (with such
modifications thereto as may be specified pursuant to Section 3.01 with respect to any
Securities), shall be applicable to such Securities and any coupons appertaining thereto, and the
Company may at its option by Board Resolution, at any time, with respect to the Securities of or
within such series and any coupons appertaining thereto, elect to have Section 13.02(b) or
Section 13.02(c) be applied to such Outstanding Securities and any coupons appertaining
thereto upon compliance with the conditions set forth below in this Section 13.02. Unless
otherwise specified pursuant to Section 3.01 with respect to the Securities of any series,
defeasance under clause (b) of this Section 13.02 and covenant defeasance under
clause (c) of this Section 13.02 may be effected only with respect to all, and not
less than all, of the Outstanding Securities of any series. To the extent that the terms of any
Security or coupon appertaining thereto established in or pursuant to this Indenture permit the
Company or any Holder thereof to extend the date on which any payment of principal of, or premium,
if any, or interest, if any, on, or Additional Amounts, if any, with respect to such Security or
coupon is due and payable, then unless otherwise provided pursuant to Section 3.01, the
right to extend such date shall terminate upon defeasance or covenant defeasance, as the case may
be.

          (b) Upon the Company’s exercise of the option applicable to this Section 13.02(b) with
respect to any Securities of or within a series, the Company and the Guarantor shall be deemed to
have been discharged from their obligations with respect to such Outstanding Securities and any
coupons appertaining thereto, and with respect to the Parent Guarantees endorsed thereon, on the
date the conditions set forth in clause (d) of this Section 13.02 are satisfied
(hereinafter, “defeasance”). For this purpose, such defeasance means that the Company and
the Guarantor shall be deemed to have paid and discharged the entire indebtedness represented by
such Outstanding Securities and any coupons appertaining thereto and any Parent

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Guarantee endorsed thereon, which shall thereafter be deemed to be “Outstanding” only
for the purposes of clause (e) of this Section 13.02 and the other Sections of this
Indenture referred to in clauses (i) through (iv) of this paragraph, and to have
satisfied all of their other obligations under such Securities and any coupons appertaining thereto
and this Indenture insofar as such Securities and any coupons appertaining thereto are concerned
(and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging the
same), except for the following which shall survive until otherwise terminated or discharged
hereunder: (i) the rights of Holders of such Outstanding Securities and any coupons appertaining
thereto to receive, solely (except as provided in clause (ii) below) from the trust fund
described in clause (d)(A) of this Section 13.02 and as more fully set forth in
this Section 13.02 and Section 13.03, payments in respect of the principal of (and
premium, if any) and interest, if any, on, and Additional Amounts, if any, with respect to, such
Securities and any coupons appertaining thereto when such payments are due, (ii) the obligations of
the Company and the Trustee with respect to such Securities under Sections 3.05,
3.06, 5.02 and 5.10 and with respect to the payment of Additional Amounts,
if any, with respect to such Securities as contemplated by Section 5.04 (but only to the
extent that the Additional Amounts payable with respect to such Securities exceed the amount
deposited in respect of such Additional Amounts pursuant to clause (d)(A) of this
Section 13.02), with respect to any rights of Holders of such Securities (unless otherwise
provided pursuant to Section 3.01 with respect to the Securities of such series) to require
the Company and the Guarantor to repurchase or repay, and the obligations of the Company to
repurchase or repay, such Securities at the option of the Holders pursuant to Section 3.01
hereof, and with respect to any rights of Holders of such Securities (unless otherwise provided
pursuant to Section 3.01 with respect to the Securities of such series) to convert or
exchange, and the obligations of the Company to convert or exchange, such Securities into common
stock or other securities, (iii) the rights, powers, trusts, duties and immunities of the Trustee
hereunder and (iv) this Section 13.02 and Sections 13.03 and 13.06;
provided, however, that following defeasance with respect to any series of Securities whose Holders
have the right to require the Company and the Guarantor to repurchase or repay such Securities or
to convert or exchange such Securities into common stock or other securities, the right of the
Holder to require repurchase, repayment, conversion or exchange, as the case may be, of any such
Security and the Company’s and the Guarantor’s obligation to repurchase, repay, convert or
exchange, as the case may be, any such Security shall (unless otherwise provided pursuant to
Section 3.01 with respect to the Securities of such series) terminate immediately following
the close of business on the final Stated Maturity of such Security or immediately following the
close of business on any earlier redemption date of such Security (so long as the Company and the
Guarantor do not default in the payment of the redemption price plus accrued and unpaid interest,
if any, due on such redemption date), as the case may be.

          (c) Upon the Company’s exercise of the above option applicable to this Section
13.02(c) with respect to any Securities of or within a series, the Company and the Guarantor
shall be released from their obligations under Sections 5.03, 5.05, 5.06
and 5.07 and, to the extent specified pursuant to Section 3.01, any other covenant
applicable to such Securities with respect to such Securities and any coupons appertaining thereto
and the provisions set forth in Section 6.01(E) shall cease to be applicable to such
Securities on and after the date the conditions set forth in clause (c) of this Section
13.02 are satisfied (hereinafter, “covenant defeasance”), and such Securities and any
coupons appertaining thereto shall thereafter be deemed to be not “Outstanding” for the purposes of
any direction, waiver, consent or declaration

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or act of Holders (and the consequences of any thereof) in connection with any such covenant
or with respect to any Event of Default set forth in Section 6.01(E), but shall continue to
be deemed “Outstanding” for all other purposes hereunder. For this purpose, such covenant
defeasance means that (i) with respect to such Outstanding Securities and any coupons appertaining
thereto and the Parent Guarantees endorsed thereon, the Company and the Guarantor may omit to
comply with, and shall have no liability in respect of, any term, condition or limitation set forth
in any such Section or any such other covenant, whether directly or indirectly, by reason of any
reference elsewhere herein to any such Section or such other covenant or by reason of reference in
any such Section or such other covenant to any other provision herein or in any other document and
such omission to comply shall not constitute a default or an Event of Default under Section
6.01(D) or 6.01(H) or otherwise, as the case may be, and (ii) the occurrence of any
event or condition specified in Section 6.01(E) shall not constitute an Event of Default
with respect to such Outstanding Securities, but, except as specified above, the remainder of this
Indenture and such Securities and coupons appertaining thereto and the Parent Guarantees endorsed
thereon shall be unaffected thereby.

          (d) The following shall be the conditions to application of clause (b) or (c)
of this Section 13.02 to any Outstanding Securities of or within a series and any coupons
appertaining thereto and the Parent Guarantees endorsed thereon:

     (A) The Company or the Guarantor shall irrevocably have deposited or caused to be deposited
with the Trustee (or another trustee satisfying the requirements of Section 7.09 who shall
agree to comply with the provisions of this Section 13.02 applicable to it) as trust funds
in trust for the purpose of making the following payments, specifically pledged as security for,
and dedicated solely to, the benefit of the Holders of such Securities and any coupons appertaining
thereto and the Parent Guarantees endorsed thereon, (i) an amount in Dollars or in such Foreign
Currency in which such Securities and any coupons appertaining thereto are then specified as
payable at Stated Maturity or, if such defeasance or covenant defeasance is to be effected in
compliance with subsection (F) below, on the relevant redemption date, as the case may be,
(ii) Government Obligations applicable to such Securities and coupons appertaining thereto
(determined on the basis of the currency in which such Securities and coupons appertaining thereto
and the Parent Guarantees endorsed thereon are then specified as payable at Stated Maturity or, if
such defeasance or covenant defeasance is to be effected in compliance with subsection (F)
below, on the relevant redemption date, as the case may be) which through the scheduled payment of
principal and interest in respect thereof in accordance with their terms will provide, not later
than one day before the due date of any payment of principal of (and premium, if any) and interest,
if any, on such Securities and any coupons appertaining thereto, money in an amount, or (iii) a
combination thereof, in any case, sufficient, without consideration of any reinvestment of such
principal and interest, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the Trustee, to pay and
discharge, and which shall be applied by the Trustee (or other qualifying trustee) to pay and
discharge, (y) the principal of (and premium, if any) and interest, if any, on, and, to the extent
that such Securities provide for the payment of Additional Amounts thereon and the amount of any
such Additional Amounts which are or will be payable with respect to the Securities of such series
is at the time of deposit reasonably determinable by the Company and the Guarantor (in the exercise
by the Company and the Guarantor of their sole and absolute discretion), any Additional Amounts
with respect to, such Outstanding Securities and any

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coupons appertaining thereto and the Parent Guarantees endorsed thereon on the Stated Maturity
of such principal or installment of principal or interest or the applicable redemption date, as the
case may be, and (z) any mandatory sinking fund payments or analogous payments applicable to such
Outstanding Securities and any coupons appertaining thereto on the day on which such payments are
due and payable in accordance with the terms of this Indenture and of such Securities and any
coupons appertaining thereto.

     (B) Such 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 subsidiary of the Guarantor is a party or by which it is bound.

     (C) No Event of Default or event which with notice or lapse of time or both would become an
Event of Default with respect to such Securities and any coupons appertaining thereto and the
Parent Guarantees endorsed thereon shall have occurred and be continuing on the date of such
deposit, and, solely in the case of defeasance under Section 13.02(b), no Event of Default
with respect to such Securities and any coupons appertaining thereto under clause (F) or
(G) of Section 6.01 or event which with notice or lapse of time or both would
become an Event of Default with respect to such Securities and any coupons appertaining thereto and
the Parent Guarantees endorsed thereon under clause (F) or (G) of Section
6.01 shall have occurred and be continuing at any time during the period ending on and
including the 91st day after the date of such deposit (it being understood that this condition to
defeasance under Section 13.02(b) shall not be deemed satisfied until the expiration of
such period).

     (D) In the case of defeasance pursuant to Section 13.02(b), the Company or the
Guarantor, as the case may be, shall have delivered to the Trustee an opinion of independent
counsel stating that (x) the Company or the Guarantor, as the case may be, has received from, or
there has been published by, the Internal Revenue Service a ruling, or (y) since the date of this
Indenture there has been a change in applicable United States Federal income tax law, in either
case to the effect that, and based thereon such opinion of independent counsel shall confirm that,
the Holders of such Outstanding Securities and any coupons appertaining thereto and the Parent
Guarantees endorsed thereon will not recognize income, gain or loss for United States Federal
income tax purposes as a result of such defeasance and will be subject to United States Federal
income tax on the same amounts, in the same manner and at the same times as would have been the
case if such defeasance had not occurred; or, in the case of covenant defeasance pursuant to
Section 13.02(c), the Company or the Guarantor, as the case may be, shall have delivered to
the Trustee an opinion of independent counsel to the effect that the Holders of such Outstanding
Securities and any coupons appertaining thereto will not recognize income, gain or loss for United
States Federal income tax purposes as a result of such covenant defeasance and will be subject to
United States Federal income tax on the same amounts, in the same manner and at the same times as
would have been the case if such covenant defeasance had not occurred.

     (E) The Company or the Guarantor, as the case may be, shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent to the
defeasance or covenant defeasance, as the case may be, under this Indenture have been complied
with.

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     (F) If the monies or Government Obligations or combination thereof, as the case may be,
deposited under clause (A) above are sufficient to pay the principal of, and premium, if
any, and interest, if any, on and, to the extent provided in such clause (A), Additional
Amounts with respect to, such Securities provided such Securities are redeemed on a particular
redemption date, the Company or the Guarantor shall have given the Trustee irrevocable instructions
to redeem such Securities on such date and to provide notice of such redemption to Holders as
provided in or pursuant to this Indenture.

     (G) Notwithstanding any other provisions of this Section 13.02(d), such defeasance or
covenant defeasance shall be effected in compliance with any additional or substitute terms,
conditions or limitations which may be imposed on the Company in connection therewith pursuant to
Section 3.01.

          (e) Subject to Section 13.05, all money and Government Obligations (or other property
as may be provided pursuant to Section 3.01) (including the proceeds thereof) deposited
with the Trustee (or other qualifying trustee, collectively for purposes of this Section
13.02(e) and Section 13.03, the “Trustee”) pursuant to clause (d)(A) of
Section 13.02 in respect of any Outstanding Securities of any series and any coupons
appertaining thereto shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Securities and any coupons appertaining thereto and the Parent Guarantees
endorsed thereon and this Indenture, to the payment, either directly or through any Paying Agent
(other than the Company acting as its own Paying Agent) as the Trustee may determine, to the
Holders of such Securities and any coupons appertaining thereto and the Parent Guarantees endorsed
thereon of all sums due and to become due thereon in respect of principal (and premium, if any) and
interest and Additional Amounts, if any, but such money need not be segregated from other funds
except to the extent required by law.

     Unless otherwise specified in or pursuant to this Indenture or any Securities, if, after a
deposit referred to in Section 13.02(d)(A) has been made, (i) the Holder of a Security in
respect of which such deposit was made is entitled to, and does, elect pursuant to Section
3.01 or the terms of such Security to receive payment in a currency other than that in which
the deposit pursuant to Section 13.02(d)(A) has been made in respect of such Security, or
(ii) a Conversion Event occurs in respect of the Foreign Currency in which the deposit pursuant to
Section 13.02(d)(A) has been made, the indebtedness represented by such Security and any
coupons appertaining thereto shall be deemed to have been, and will be, fully discharged and
satisfied through the payment of the principal of (and premium, if any), and interest, if any, on,
and Additional Amounts, if any, with respect to, such Security as the same becomes due out of the
proceeds yielded by converting (from time to time as specified below in the case of any such
election) the amount or other property deposited in respect of such Security into the Currency in
which such Security becomes payable as a result of such election or Conversion Event based on (x)
in the case of payments made pursuant to clause (i) above, the applicable market exchange
rate for such currency in effect on the second Business Day prior to each payment date, or (y) with
respect to a Conversion Event, the applicable market exchange rate for such Foreign currency in
effect (as nearly as feasible) at the time of the Conversion Event.

     The Company shall pay and the Company and the Guarantor shall jointly and severally indemnify
the Trustee against any tax, fee or other charge, imposed on or assessed against the

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Government Obligations deposited pursuant to this Section 13.02 or the principal or
interest received in respect thereof other than any such tax, fee or other charge which by law is
for the account of the Holders of such Outstanding Securities and any coupons appertaining thereto
and the Parent Guarantees endorsed thereon.

     Anything in this Section 13.02 to the contrary notwithstanding, the Trustee shall
deliver or pay to the Company or the Guarantor, as the case may be, from time to time upon written
order any money or Government Obligations (or other property and any proceeds therefrom) held by it
as provided in clause (d)(A) of this Section 13.02 which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, are in excess of the amount thereof which would then be required
to be deposited to effect a defeasance or covenant defeasance, as applicable, in accordance with
this Section 13.02.

13.03 Application by Trustee of Funds Deposited for Payment of Securities.

     All money deposited with the Trustee pursuant to Sections 13.01 and 13.02, or
received by the Trustee in respect of obligations deposited with the Trustee pursuant to
Section 13.01, or 13.02, shall be held in trust until such time as such money is to
be applied by it to the payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent), to the Holders of the particular Securities, for the payment of
which such moneys have been deposited with the Trustee, of all sums due and to become due thereon
for the principal thereof, premium, if any, and interest, if any, thereon. Moneys held under this
Section 13.03 need not be segregated from other funds except to the extent required by law,
and the Trustee shall be under no liability with respect to interest on any such moneys.

13.04 Repayment of Moneys Held by Paying Agent.

     In connection with the satisfaction and discharge of this Indenture, all moneys then held by
any Paying Agent, other than the Trustee, under this Indenture shall, upon and in accordance with
demand of the Company (or, if applicable, the Guarantor), be paid to the Trustee, and thereupon
such Paying Agent shall be released from all further liability with respect to such moneys.

13.05 Return of Unclaimed Moneys.

     Any moneys deposited with the Trustee or any Paying Agent not applied but remaining unclaimed
by the Holders of Securities for two years after the date upon which the principal of, premium, if
any, or interest, if any, on such Securities shall have become due and payable shall be repaid to
the Company (or, if applicable, the Guarantor) by the Trustee or such agent on written demand; and
the Holder of any of the Securities entitled to receive such payment shall thereafter look only to
the Company (and, if applicable, the Guarantor) for the payment thereof, and all liability of the
Trustee or any Paying Agent with respect to such moneys shall thereupon cease; provided, however,
that the Trustee or such agent, before being required to make any such repayment, may at the
expense of the Company (or, if applicable, the Guarantor) cause to be published once a week for two
consecutive weeks (in each case on any day of the week) in an Authorized Newspaper in the Borough
of Manhattan, The City of New York, and once in an

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authorized newspaper in London, notice that said moneys have not been so applied and that
after a date named therein, which shall not be less than 30 days from the date of such mailing or
publication, any unclaimed balance of said moneys then remaining will be returned to the Company
(or, if applicable, the Guarantor).

13.06 Reinstatement.

     If the Trustee (or other qualifying trustee appointed pursuant to Section 13.02(d)(A))
or any Paying Agent is unable to apply any moneys or Government Obligations deposited pursuant to
Section 13.01 or Section 13.02(d)(A) to pay any principal of or premium, if any, or
interest, if any, on or Additional Amounts, if any, with respect to the Securities of any series by
reason of any legal proceeding or any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, then the Company’s and the
Guarantor’s obligations under this Indenture and the Securities of such series shall be revived and
reinstated as though no such deposit had occurred, until such time as the Trustee (or other
qualifying trustee) or Paying Agent is permitted to apply all such moneys and Government
Obligations to pay the principal of and premium, if any, and interest, if any, on and Additional
Amounts, if any, in respect of the Securities of such series as contemplated by Section
13.01 or Section 13.02 as the case may be, and Section 13.03; provided,
however, that if the Company or the Guarantor make any payment of the principal of or premium, if
any, or interest, if any, on or Additional Amounts, if any, in respect of the Securities of such
series following the reinstatement of its obligations as aforesaid, the Company and the Guarantor
shall be subrogated to the rights of the Holders of such payment from the funds held by the Trustee
(or other qualifying trustee) or Paying Agent.

XIV. IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

14.01 Personal Immunity from Liability of Incorporators, Stockholders, Etc.

     No recourse under or upon any obligation, covenant or agreement of this Indenture or any
indenture supplemental hereto, or of any Security, or for any claim based thereon or otherwise in
respect thereof, shall be had against any incorporator or against any past, present or future
stockholder, officer or director, as such, of the Company or the Guarantor or of any successor
corporation, either directly or through the Company or the Guarantor or any successor corporation,
whether by virtue of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise, all such liability and any and all such claims being hereby
expressly waived and released as a condition of, and as a consideration for, the execution of this
Indenture and issue of the Securities.

XV. SUBMISSION TO JURISDICTION

15.01 Agent for Service: Submission to Jurisdiction.

     By the execution and delivery of this Indenture, the Company (i) acknowledges that it has
irrevocably designated and appointed CT Corporation System, 111 Eighth Avenue, New York, New York
10011, as its authorized agent upon which process may be served in any suit or proceeding arising
out of or relating to any Securities or this Indenture that may be instituted in

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any United States Federal or New York state court located in The City of New York, and
acknowledges that CT Corporation System has accepted such designation and appointment, (ii)
irrevocably submits to the non-exclusive jurisdiction of such courts in any such suit or
proceeding, and (iii) agrees that service of process upon CT Corporation System and written notice
of said service to the Company (mailed or delivered to the Company as provided in Section
1.04), shall be deemed in every respect effective service of process upon the Company in any
such suit or proceeding. The Company further agrees to take any and all actions, including the
execution and filing of any and all such documents and instruments, as may be reasonably necessary
to continue such designation and appointment of CT Corporation System in full force and effect so
long as this Indenture shall be in full force and effect.

     The Company irrevocably and unconditionally waives, to the fullest extent permitted by law,
any objection that it may now or hereafter have to the laying of venue of any such action, suit or
proceeding in any such court or any appellate court with respect thereto. The Company irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action, suit or proceeding in any such court.

15.02 Waiver of Immunities.

     To the extent that the Company or the Guarantor has or hereafter may acquire any immunity from
jurisdiction of any court or from any legal process (whether through service of notice, attachment
prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself
or its property, the Company and the Guarantor hereby irrevocably waive such immunity in respect of
their obligations under this Indenture, the Securities and the Parent Guarantee, to the extent
permitted by law.

XVI. PARENT GUARANTEE

16.01 Execution and Delivery of Parent Guarantee.

     If a series of Securities issued or to be issued hereunder is a Guaranteed Series, then the
Parent Guarantee to be endorsed on the Securities of such series shall include the terms and form
of the Parent Guarantee set forth in Exhibit A hereto or such other terms or form as may be
established pursuant to Section 3.01(EE), and the Guarantor hereby agrees to execute all
such Parent Guarantees to be endorsed on each Security of such series authenticated and delivered
by the Trustee. Notwithstanding anything herein to the contrary, no Securities shall be so
endorsed with a Parent Guarantee, and the Guarantor shall be under no obligation to so endorse any
Parent Guarantee, unless such Securities are of a Guaranteed Series.

     The Parent Guarantee shall be executed on behalf of the Guarantor by an Authorized Officer of
the Guarantor. The signature of any such Authorized Officer on the Guarantee may be manual or
facsimile.

     A Parent Guarantee bearing the manual or facsimile signature of an individual who was at the
time of execution an Authorized Officer of the Guarantor shall bind the Guarantor, notwithstanding
that any such individual has ceased to be an Authorized Officer prior to the authentication and
delivery of the Security on which such Parent Guarantee is endorsed.

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     The delivery by the Trustee, after the authentication thereof hereunder, of any Security duly
endorsed by a Parent Guarantee shall constitute due delivery of the Parent Guarantee endorsed
thereon on behalf of the Guarantor. The Guarantor hereby agrees that the Parent Guarantee with
respect to any series of Securities that is duly designated with the Guarantor’s express written
consent as a Guaranteed Series shall remain in full force and effect notwithstanding any failure to
endorse a Parent Guarantee on the related Securities. The Guarantor, by its execution of this
Indenture, hereby authorizes the Company, in the name and on behalf of the Guarantor, to confirm
any applicable Parent Guarantee to the Holder of each Security authenticated and delivered
hereunder by its execution and delivery of each such Security, with such Parent Guarantee endorsed
thereon, authenticated and delivered by the Trustee.

[The Remainder of This Page Intentionally Left Blank; Signature Page Follows]

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

	 	 	 	 	 
	 	 	BAXTER FINCO B. V.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	   Name:
	 

	 	 	 	   Title:
	 
	 	 	 	 
	 	 	BAXTER INTERNATIONAL INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	   Name:
	 

	 	 	 	   Title:
	 
	 	 	 	 
	 	 	J. P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	   Name:
	 

	 	 	 	   Title:

81

 

EXHIBIT A

GUARANTEE

     GUARANTEE, dated as of                                         , 2005 of BAXTER INTERNATIONAL INC., a corporation
organized under the laws of Delaware (the “Guarantor”).

     The Guarantor, for value received, hereby agrees as follows for the benefit of the holders of
record (the “Holders”) from time to time of the Securities hereinafter described:

     1. The Guarantor irrevocably guarantees payment in full, as and when the same becomes due and
payable (whether at maturity, by declaration of acceleration, call for redemption, or otherwise),
of the principal of, premium, if any, and interest, if any, on, and any Additional Amounts with
respect to, the [title of securities] (the “Securities”) issued by Baxter Finco B.V., a
private company of limited liability organized under the laws of The Netherlands and an indirect
wholly-owned subsidiary of the Guarantor (the “Issuer”), from time to time pursuant to the
Indenture, dated as of October 5, 2005 as the same may be amended, supplemented or modified from
time to time, among the Issuer, the Guarantor and J. P. Morgan Trust Company, National Association
(the “Indenture”).

     2. The Guarantor’s obligations under this Guarantee shall be unconditional, irrespective of
the validity or enforceability of any provision of the Indenture or the Securities.

     3. This Guarantee is a guaranty of the due and punctual payment (and not merely of collection)
of the principal of, premium, if any, and interest, if any, on, and any Additional Amounts with
respect to, the Securities by the Issuer and shall remain in full force and effect until all
amounts have been validly, finally and irrevocably paid in full, and shall not be affected in any
way by any circumstance or condition whatsoever, including without limitation (i) the absence of
any action to obtain such amounts from the Issuer, (ii) any variation, extension, waiver,
compromise or release of any or all of the obligations of the Issuer under the Indenture or the
Securities or of any collateral security therefor (provided, however, that no such variation,
extension, waiver, compromise or release shall, without the consent of the Guarantor, increase the
principal amount of such Securities, or increase the interest rate thereon, or change any
redemption provisions thereof (including any change to increase any premium payable upon redemption
thereof), or change the stated maturity thereof) or (iii) any change in the existence or structure
of, or the bankruptcy or insolvency of, the Issuer or by any other circumstance (other than by
complete, irrevocable payment) that might otherwise constitute a legal or equitable discharge or
defense of a guarantor or surety. The Guarantor waives all requirements as to diligence,
presentment, demand for payment, protest and notice of any kind with respect to the Indenture and
the Securities.

     4. In the event of a default in payment of principal of, or premium, if any, or interest, if
any, on, and any Additional Amounts with respect to, any Securities, the Holders of such Securities
may institute legal proceedings directly against the Guarantor to enforce this Guarantee without
first proceeding against the Issuer.

     5. This Guarantee shall remain in full force and effect until the date upon which the entire
principal of, premium, if any, and interest, if any, on, and any Additional Amounts with

1

 

respect to, the Securities have been, or have been deemed pursuant to the provisions of
Article XIII of the Indenture to have been, paid in full or otherwise discharged; provided,
however, that this Guarantee shall be reinstated if at any time any payment by the Issuer of the
principal of, or premium, if any, or interest, if any, on, or any Additional Amounts with respect
to, the Securities, in whole or in part, is rescinded or must otherwise be returned by the Holder
upon the insolvency, bankruptcy or reorganization of the Issuer or otherwise, all as though such
payment had not been made.

     6. This Guarantee shall be governed by and construed in accordance with the laws of the State
of New York as applied to contracts made and performed within the State of New York, without regard
to principles of conflicts of law.

     7. (a)The Guarantor hereby irrevocably accepts and submits to the non-exclusive jurisdiction
of the United States federal courts located in the Borough of Manhattan.

     (b) The Guarantor hereby irrevocably designates, appoints and empowers CT Corporation System,
111 Eighth Avenue, New York, New York 10011, as its designee, appointee and agent to receive,
accept and acknowledge for and on its behalf, and its properties, service for any and all legal
process, summons, notices and documents which may be served in any such action, suit or proceeding
brought in the courts listed in Section 7(a) hereof which may be made on such designee,
appointee and agent in accordance with legal procedures prescribed for such courts, with respect to
any action, suit or proceeding in connection with or arising out of this Guarantee. If for any
reason such designee, appointee and agent hereunder shall cease to be available to act as such, the
Guarantor agrees to designate a new designee, appointee and agent in the City of New York on the
terms and for the purposes of this Section 7. The Guarantor further hereby irrevocably
consents and agrees to the service of any and all legal process, summons, notices and documents out
of any of the aforesaid courts in any such action, suit or proceeding by serving a copy thereof
upon the agent for service of process referred to in this Section 7 (whether or not the
appointment of such agent shall for any reason prove to be ineffective or such agent shall accept
or acknowledge such service) or by mailing copies thereof by registered or certified airmail,
postage prepaid, to it at its address specified in or designated pursuant to this Guarantee. The
Guarantor agrees that the failure of any such designee, appointee and agent to give any notice of
such service to the Guarantor shall not impair or affect in any way the validity of such service or
any judgment rendered in any action or proceeding based thereon. Nothing herein shall in any way
be deemed to limit the ability of the Holders of any Securities to serve any such legal process,
summons, notices and documents in any other manner permitted by applicable law or to obtain
jurisdiction over the undersigned or bring actions, suits or proceedings against the undersigned in
such other jurisdictions, and in such other manner, as may be permitted by applicable law. The
Guarantor hereby irrevocably and unconditionally waives any objection which it may now or hereafter
have to the laying of venue of any of the aforesaid actions, suits or proceedings arising out of or
in connection with this Guarantee brought in the courts listed in Section 7(a) and hereby
further irrevocably and unconditionally waives and agrees not to plead or claim in any such court
that any such action, suit or proceeding brought in any such court has been brought in an
inconvenient forum.

     8. The Guarantor shall be subrogated to all rights of the Holders of the Securities against
the Issuer in respect of any amounts paid by the Guarantor on account of such Securities

2

 

pursuant to the provisions of this Guarantee or the Indenture; provided, however, that the
Guarantor shall not be entitled to enforce or to receive any payments arising out of, or based
upon, such right of subrogation until the principal of, and premium, if any, and interest, if any,
on such Securities shall have been paid in full.

	 	 	 	 	 
	 	 	BAXTER INTERNATIONAL INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Its:	 	 
	 

	 	 	 	 

3

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