Document:

Exhibit 10.4

 

FARMER BROS. CO.

 

CHANGE IN CONTROL SEVERANCE AGREEMENT

 

EXECUTIVE OFFICERS

 

 

THIS CHANGE IN CONTROL SEVERANCE AGREEMENT (this “Agreement”),
effective as of June 2, 2006 (the “Effective Date”), is made by and between
FARMER BROS. CO., a Delaware corporation (the “Company”), and Roger M. Laverty
III (the “Executive”).

 

WHEREAS, the Company considers it essential to
foster the continued employment of well qualified, senior executive management
personnel; and

 

WHEREAS, the Company has determined that appropriate
steps should be taken to foster such continued employment by setting forth the
benefits and compensation to be awarded to such personnel in the event of a
voluntary or involuntary termination within the meaning of this Agreement; and

 

WHEREAS, the Company further recognizes that the
possibility of a Change in Control of the Company exists and that such
possibility, and the uncertainty and questions that it may raise among
executive management, may result in the departure or distraction of executive
personnel to the detriment of the Company; and

 

WHEREAS, the Company has further determined that
appropriate steps should be taken to reinforce and encourage the continued
attention and dedication of members of the Company’s executive management,
including the Executive, to their assigned duties without distraction in the
face of potentially disturbing circumstances arising from the possibility of a
Change in Control;

 

NOW, THEREFORE, in consideration of the
premises and the mutual covenants herein contained, the Company and the
Executive hereby agree as follows:

 

1.             Term
of Agreement. The term of this Agreement shall commence as of the
date hereof and expire on the close of business on December 31, 2006; provided,
however, that (i) commencing on January 1, 2007 and each January 1 thereafter,
the term of this Agreement will automatically be extended for an additional
year unless, not later than September 30 of the immediately preceding year, the
Company (provided no Change in Control has occurred and no Threatened Change in
Control is pending) or the Executive shall have given notice that it or the
Executive, as the case may be, does not wish to have the Term extended; (ii)
if, prior to a Change in Control, the Executive ceases for any reason to be an
employee of the Company, thereupon without further action the Term shall be
deemed to have expired and this Agreement will immediately terminate and be of
no further effect.

 

2.             Definitions.

 

(a)
Base Salary shall mean the
Executive’s salary, which excludes Bonuses, at the rate in effect when an event
triggering benefits under Section 3 of this Agreement occurs.

 

(b)
Beneficial Owner or Beneficial Ownership
shall have the meaning ascribed to such term in Rule 13d-3 of the Exchange Act.

 

(c)
Board or Board of Directors
shall mean the Board of Directors of Farmer Bros. Co., or its successor.

 

 

1

 

(d)
Bonus(es) shall mean
current cash compensation over and above Base Salary whether awarded under the
Company’s Incentive Compensation Plan or otherwise awarded.

 

(e) Cause shall mean:

 

(i) the Executive’s material
fraud, malfeasance, or gross negligence, willful and material neglect of
Executive’s employment duties or Executive’s willful and material misconduct
with respect to business affairs of the Company or any subsidiary of the
Company or

 

(ii) Executive’s conviction
of or failure to contest prosecution for a felony or a crime involving moral
turpitude.

 

A
termination of Executive for “Cause” based on clause (i) of the preceding
sentence can be made only by delivery to Executive of a resolution duly adopted
by the affirmative vote of not less than three quarters of the Board then in
office at a meeting of the Board called and held for such purpose, after
reasonable notice to the Executive and an opportunity for the Executive,
together with the Executive’s counsel (if the Executive chooses to have counsel
present at such meeting), to be heard before the Board, finding that, in the
good faith opinion of the Board, the Executive had committed an act
constituting “Cause” as herein defined and specifying the particulars thereof
in detail.  Nothing herein will limit the
right of the Executive or his beneficiaries to contest the validity or
propriety of any such determination.   A
termination for Cause based on clause (ii) above shall take effect immediately
upon giving of the termination notice. No act or omission shall be deemed “willful”
if it was due primarily to an error in judgment or ordinary negligence.

 

(f)
Change in Control shall
mean:

 

(1) An acquisition by any
Person (as such term is defined in Section 3(a)(9) of the Exchange Act and used
in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section
13(d) thereof) of Beneficial Ownership of the Shares then outstanding (the “Company
Shares Outstanding”) or the voting securities of the Company then outstanding
entitled to vote generally in the election of directors (the “Company Voting
Securities Outstanding”), if such acquisition of Beneficial Ownership results
in the Person beneficially owning (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) fifty percent (50%) or more of the Company Shares
Outstanding or fifty percent (50%) or more of the combined voting power of the
Company Voting Securities Outstanding; excluding, however, any such acquisition
by a trustee or other fiduciary holding such Shares under one or more employee
benefit plans maintained by the Company or any of its subsidiaries; or

 

(2) The approval of the
stockholders of the Company of a reorganization, merger, consolidation,
complete liquidation, or dissolution of the Company, the sale or disposition of
all or substantially all of the assets of the Company or any similar corporate
transaction (in each case referred to in this Section 3(e) as a “Corporate
Transaction”), other than a Corporate Transaction that would result in the
outstanding common stock of the Company immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into common
stock of the surviving entity or a parent or affiliate thereof) at least fifty
percent (50%) of the outstanding common stock of the Company or such surviving
entity or parent or affiliate thereof immediately after such Corporate
Transaction; provided, however, if the consummation of such Corporate
Transaction is subject, at the time of such approval by stockholders, to the
consent of any government or governmental agency, the Change in Control shall
not occur until the obtaining of such consent (either explicitly or
implicitly); or

 

2

 

(3) A change in the
composition of the Board such that the individuals who, as of the Effective
Date, constitute the Board (such Board shall be hereinafter referred to as the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board;
provided, however, for purposes of this Section 3(e) that any individual who
becomes a member of the Board subsequent to the Effective Date whose election,
or nomination for election by the Company’s stockholders, was approved by a
vote of at least a majority of those individuals who are members of the Board
and who were also members of the Incumbent Board (or deemed to be such pursuant
to this proviso) shall be considered as though such individual were a member of
the Incumbent Board; but, provided, further, that any such individual whose
initial assumption of office occurs as a result of either an actual or
threatened election contest (as such terms are used in Rule 14a-11 of
Regulation 14A promulgated under the Exchange Act, including any successor to
such Rule), or other actual or threatened solicitation of proxies or consents
by or on behalf of a Person other than the Board, shall not be so considered as
a member of the Incumbent Board.

 

(g)
Code shall mean the
Internal Revenue Code of 1986, as amended from time to time.

 

(h)
Disability shall mean the
Executive’s inability as a result of physical or mental incapacity to
substantially perform his duties for the Company on a full-time basis for a
period of six (6) months.

 

 (i) Exchange
Act shall mean the Securities Exchange Act of 1934, as amended
from time to time, or any successor act thereto.

 

(j)
Involuntary Termination
shall mean termination of employment that is involuntary on the part of the
Executive and that occurs for reasons other than for Cause, Disability or
death.

 

(k)
Threatened Change in Control
shall mean any bona fide pending tender offer for any class of the Company’s
outstanding Shares, or any pending bona fide offer to acquire the Company by
merger or consolidation, or any other pending action or plan to effect, or
which would lead to, a Change in Control of the Company as determined by the
Incumbent Board. A Threatened Change in Control Period shall commence on the
first day the actions described in the preceding sentence become manifest and
shall end when such actions are abandoned or the Change in Control occurs.

 

(l)
Shares shall mean the
shares of common stock of the Company.

 

(m)
 Resignation for Good Reason
shall mean termination of employment that is voluntary on the part of the
Executive but is due to:

 

(i) a significant reduction
of the Executive’s responsibilities, title or status resulting from a formal
change in such title or status, or from the assignment to the Executive of any
duties inconsistent with his title, duties, or responsibilities;

 

(ii) a reduction in the
Executive’s Base Salary or benefits;

 

(iii) the failure to award
Executive a Bonus for any fiscal year which is at least fifty percent (50%) of
the average Bonus awarded to Executive for the three (3) fiscal years prior to
the occurrence of the Change in Control, provided that such reduction in
Bonuses shall not constitute grounds for Resignation for Good Reason if the
Bonus, or lack of Bonus, is determined in accordance with a written plan
adopted by the Company prior to the occurrence of a Change in Control; or

 

3

 

(iv) a Company-required
involuntary relocation of Executive’s place of residence or a significant
increase in the Executive’s travel requirements.

 

3.             Events
That Trigger Benefits Under This Agreement. The Executive shall be
eligible for the compensation and benefits described in Section 4 of this
Agreement as follows:

 

(a)
A Change in Control occurs and Executive’s employment is Involuntarily
Terminated or terminated by Resignation for Good Reason within twenty-four (24)
months following the occurrence of the Change in Control; or

 

(b)
A Threatened Change in Control occurs and the Executive’s employment is
Involuntarily Terminated during a Threatened Change in Control Period or
Executive demonstrates to the Incumbent Board, excluding Executive and any
other Company executives who are parties to Change in Control Agreements for
Executive Officers, that grounds for a Resignation for Good Reason likely will
occur if a Change in Control occurs.  The
determination of the Incumbent Board in that regard shall be conclusive.

 

4.             Benefits
Upon Termination. If the Executive
becomes eligible for benefits under Section 3 above, the Company shall pay or
provide to the Executive the following compensation and benefits:

 

(a)
Salary. The Executive will
continue to receive his Base Salary for the twenty-four (24) month period following
the Executive’s date of termination payable semi-monthly.  The Executive shall also receive two (2)
consecutive annual payments of fifty percent (50%) of Executive’s average Bonus
as reported in the Company’s proxy statement for the last three (3) completed
fiscal years or for the number of completed of fiscal years that Executive has
been in the employ of the Company if fewer than three, prior to the occurrence
of the event triggering benefits under this Agreement.  If a triggering event occurs before a bonus
for fiscal 2007 is awarded to Executive under the Company’s 2005 Incentive
Compensation Plan, the Bonus amount shall be $170,909, payable in two annual
installments of $85,454.50.  The Bonus
amount is payable annually within thirty (30) days after the end of the Company’s
fiscal year commencing with the first fiscal year-end after Executive’s date of
termination.

 

(b)
Qualified and Non-Qualified Plan Coverage.
Subject to the eligibility provisions of the plans, the Executive shall
continue to participate in the tax-qualified and non-qualified retirement,
savings and employee stock ownership plans of the Company during the twenty
four (24) month period following the Executive’s date of termination unless the
Executive commences Employment prior to the end of the twenty four (24) month
period, in which case, such participation shall end on the date of his new employment.
The Executive shall inform the Company promptly upon commencing new employment.

 

(c)
Health, Dental, and Life Insurance
Coverage. The health, dental, and life insurance benefits
coverage provided to the Executive at his date of termination shall be
continued by the Company during the twenty-four (24) month period following the
Executive’s date of termination unless the Executive commences employment prior
to the end of the twenty four (24) month period and qualifies for substantially
equivalent insurance benefits with the Executive’s new employer , in which
case, such insurance coverages shall end on the date of qualification.  The Executive shall inform the Company
promptly of his qualification for any of such insurance coverages.  . The Company shall provide for such insurance
coverages at its expense at the same level and in the same manner as if the
Executive’s employment had not terminated (subject to the customary changes in
such coverages if the Executive retires under a Company retirement plan,
reaches age 65, or similar events and subject to Executive’s right to make any
changes in such coverages that an active employee is permitted to make). Any
additional coverages the Executive had at termination, including dependent
coverage, will also be continued for such period on the same terms, to the
extent permitted by the applicable policies or contracts. Any costs the
Executive was paying for such coverages at the time of termination shall be
paid 

 

4

 

by the Executive by separate
check payable to the Company each month in advance. If the terms of any benefit
plan referred to in this Section do not permit continued participation by the
Executive, the Company will arrange for other coverage at its expense providing
substantially similar benefits. If the Executive is covered by a split-dollar
or similar life insurance program at the date of termination, he shall have the
option in his sole discretion to have such policy transferred to him upon
termination, provided that the Company is paid for its interest m the policy
upon such transfer.

 

(d)
Outplacement Services. The
Company shall provide the Executive with outplacement services by a firm
selected by the Executive, at the expense of the Company, in an amount up to
$25,000.

 

(e)
No Mitigation Obligation.  The Company hereby acknowledges that it will
be difficult and may be impossible for the Executive to find reasonably
comparable employment following termination of Executive’s employment by the
Company and that the non-solicitation covenant contained in Section 6 may
further limit the employment opportunities for the Executive.  Accordingly, the payment of the compensation
and benefits by the Company to the Executive in accordance with the terms of
this Agreement is hereby acknowledged by the Company to be reasonable, and the
Executive will not be required to mitigate the amount of any payment provided
for this Agreement by seeking other employment or otherwise, nor will any
profits, income, earnings or other benefits from any source whatsoever create
any mitigation, offset, reduction or any other obligation on the part of the
Executive hereunder or otherwise, except as expressly provided in the first
sentence of Section 4(c).

 

5.             Parachute
Payments.

 

                Notwithstanding anything contained in this Agreement
to the contrary, in the event that the compensation and benefits provided for
in this Agreement to Executive together with all other payments and the value
of any benefit received or to be received by Executive:

 

(a)
constitute “parachute payments” within the meaning of Section 280G of the Code,
and

 

(b)
but for this Section, would be subject to the excise tax imposed by Section
4999 of the Code, the Executive’s compensation and benefits pursuant to the
terms of this Agreement shall be payable either:

                                (i) in full, or

 

                                (ii) in such lesser amount which
would result in no portion of such compensation and benefits being subject to
excise tax under Section 4999 of the Code, whichever of the foregoing amounts,
taking into account the applicable federal, state and local income taxes and
the excise tax imposed by Section 4999, results in the receipt by Executive on
an after-tax basis, of the greatest amount of compensation and benefits under
this Agreement, notwithstanding that all or some portion of such compensation
and benefits may be subject to the excise tax imposed under Section 4999 of the
Code.  Unless the Company and Executive
otherwise agree in writing, any determination required under this Section 5
shall be made in writing by the Company’s independent public accountants
serving immediately before the Change in Control (the “Accountants”), whose
determination shall be conclusive and binding upon Executive and the Company
for all purposes.  For purposes of making
the calculations required by this Section 5, the Accountants may make
reasonable assumptions and approximations concerning applicable taxes and may
rely on reasonable good faith interpretations concerning the applications of
Section 280G and 4999 of the Code.  The
Company shall cause the Accountants to provide detailed supporting calculations
of its determination to Executive and the Company.  Executive and the Company shall furnish to
the Accountants such information and documents as the Accountants may
reasonably request in order to make a determination under this Section. The
Company shall bear all 

 

5

 

costs the Accountants may
reasonably incur in connection with any calculations contemplated by this
Section 5.

 

6.             Obligation
Not to Solicit.

 

(a)
Executive hereby agrees that while Executive is receiving compensation and
benefits under this Agreement, Executive shall not in any manner attempt to
induce or assist others to attempt to induce any officer, employee, customer or
client of the Company to terminate its association with the Company, nor do
anything directly or indirectly to interfere with the relationship between the
Company and any such persons or concerns.

 

(b)
In the event that the Executive engages in any activity in violation of Section
6(a), all compensation and benefits described in Section 4 shall immediately
cease.

 

7.             Confidentiality. The terms of
this Agreement are to be of the highest confidentiality. In order to insure and
maintain such confidentiality, it is agreed that neither party, including all
persons and entities under a party’s control, shall, directly or indirectly,
publicize or disclose to third persons the terms of this Agreement or the
substance of negotiations with respect to it; provided, however, that nothing
herein shall be construed to prevent disclosures which are reasonably necessary
to enforce the terms of this Agreement or which are otherwise required by law
to be made to governmental agencies or others; moreover, nothing herein shall
be construed to prevent the parties hereto, or their attorneys, from making
such disclosures for legitimate business purposes to their respective insurers,
financial institutions, accountants and attorneys or, in the case of a
corporation, limited liability company or partnership, to its respective
officers, directors, employees, managers, members and agents or any of its
respective subsidiaries, group or divisions, provided that each such recipient
of such disclosures agrees to be bound by the requirements concerning
disclosure of confidential information as set forth in this Paragraph 7.

 

8.             Settlement
of Disputes; Arbitration. (a) All disputes arising
under or in connection with this Agreement, shall be submitted to binding
arbitration in Los Angeles County before an arbitrator selected by mutual
agreement of the parties.  If the parties
are unable to agree mutually on an arbitrator within thirty (30) days after a
written demand for arbitration is made, the matter shall be submitted to
JAMS/ENDISPUTE (“JAMS”) or successor organization for binding arbitration in
Los Angeles County by a single arbitrator who shall be a former California
Superior Court judge.  The arbitrator
shall be selected by JAMS in an impartial manner determined by it.  Except as may be otherwise provided herein,
the arbitration shall be conducted under the California Arbitration Act, Code
of Civil Procedure §1280 et  seq. 
The parties shall have the discovery rights provided in Code of Civil
Procedure §§1283.05 and 1283.1.  The
arbitration hearing shall be commenced within ninety (90) days of the
appointment of the arbitrator, and a decision shall be rendered by the
arbitrator within thirty (30) days of the conclusion of the hearing.  The arbitrator shall have complete authority
to render any and all relief, legal and equitable, appropriate under California
law, including the award of punitive damages where legally available and
warranted.  The arbitrator shall award
costs of the proceeding, including reasonable attorneys’ fees, to the party or
parties determined to have substantially prevailed, but such award for
attorneys’ fees shall not exceed One Hundred Thousand Dollars ($100,000).  Judgment on the award can be entered in a
court of competent jurisdiction.

 

(b)           The foregoing notwithstanding, if the
amount in controversy exceeds $200,000, exclusive of attorneys’ fees and costs,
the matter shall be litigated in the Los Angeles County Superior Court as a
regular civil action except that a former California Superior Court Judge
selected by JAMS in an impartial manner shall be appointed as referee to
determine, sitting without a jury (a jury being waived by all parties hereto),
all issues pursuant to California Code of Civil Procedure §638(1).  Judgment entered on the decision of the
referee shall be appealable as a judgment of the Superior Court.  The prevailing party 

 

6

 

shall be entitled to receive
its reasonable attorneys’ fees and costs from the other party, but such award
for attorneys’ fees shall not exceed One Hundred Thousand Dollars ($100,000).

 

9.             Miscellaneous.

 

 

(a)
Notices. Any notice or
other communication required or permitted under this Agreement shall be
effective only if it is in writing and shall be deemed to have been duly given
when delivered personally or seven days after mailing if mailed first class by
registered or certified mail, postage prepaid, addressed as follows:

 

	
  If
  to the Company:

  	
   

  	
  Farmer
  Bros. Co

  
	
   

  	
   

  	
  20333
  South Normandie Avenue

  
	
   

  	
   

  	
  Torrance,
  CA 90502

  
	
   

  	
   

  	
  Attn:
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
  with
  a copy to:

  	
   

  	
  John
  M. Anglin, Esq.

  
	
   

  	
   

  	
  Anglin,
  Flewelling, Rasmussen, Campbell & Trytten LLP

  
	
   

  	
   

  	
  199
  South Los Robles Avenue, Suite 600

  
	
   

  	
   

  	
  Pasadena,
  CA 91101-2459

  
	
   

  	
   

  	
   

  
	
  If
  to the Executive:

  	
   

  	
   

  
	
   

  	
   

  	
  Roger
  M. Laverty III

  
	
   

  	
   

  	
  700
  The Strand

  
	
   

  	
   

  	
  Manhattan
  Beach, CA 90266

  

 

 

or
to such other address as any party may designate by notice to the others.

 

(b)
Assignment. This Agreement
shall inure to the benefit of and shall be binding upon the parties hereto and
their respective executors, administrators, heirs, personal representatives,
and successors, but, except as hereinafter provided, neither this Agreement nor
any right hereunder may be assigned or transferred by either party thereto, or
by any beneficiary or any other person, nor be subject to alienation,
anticipation, sale, pledge, encumbrance, execution, levy, or other legal
process of any kind against the Executive, his beneficiary or any other person.
Notwithstanding the foregoing, any person or business entity succeeding to
substantially all of the business of the Company by purchase, merger,
consolidation, sale of assets, or otherwise, shall be bound by and shall adopt
and assume this Agreement and the Company shall cause the assumption of this
Agreement by such successor. If Executive shall die while any amount would
still be payable to Executive hereunder (other than amounts that, by their
terms, terminate upon the death of Executive) if Executive had continued to
live, all such amounts, unless otherwise provided herein, shall be paid in
accordance with the terms of this Agreement to the executors, personal
representatives or administrators of Executive’s estate.

 

(c)
No Obligation to Fund. The
agreement of the Company (or its successor) to make payments to the Executive
hereunder shall represent solely the unsecured obligation of the Company (and
its successor), except to the extent the Company (or its successors) in its
sole discretion elects in whole or in part to fund its obligations under this
Agreement pursuant to a trust arrangement or otherwise.

 

(d)
Applicable Law. This
Agreement shall be governed by and construed and enforced in accordance with
the laws of the State of California.

 

7

 

(e)
Amendment. This Agreement
may only be amended by a written instrument signed by the parties hereto, which
makes specific reference to this Agreement.

 

(f)
Severability. If any
provision of this Agreement shall be held invalid or unenforceable by any court
of competent jurisdiction, such holding shall not invalidate or render
unenforceable any other provisions hereof.

 

(g)
Withholding. The Company
shall have the right to withhold any and all local, state and federal taxes
which may be withheld in accordance with applicable law.

 

(h)
Other Benefits. Nothing in
this Agreement shall limit or replace the compensation or benefits payable to
Executive, or otherwise adversely affect Executive’s rights, under any other
benefit plan, program, or agreement to which Executive is a party.

 

(i)
Employment Rights. Nothing
expressed or implied in this Agreement will create any right or duty on the
part of the Company or the Executive to have the Executive remain in the
employment of the Company or any Subsidiary prior to or following any Change in
Control.  The Company and Executive are
parties to an Employment Agreement executed concurrently herewith.  Except as provided in Section 11 of the
Employment Agreement, the provisions of the Employment Agreement and this
Agreement are cumulative.

 

[Signatures Follow]

 

8

 

IN WITNESS WHEREOF, the Company has caused this
Agreement to be executed on its behalf by its duly authorized officers and the
Executive has hereunder set his hand, as of the date first above written.

 

	
  “COMPANY”

  
	
   

  
	
  Farmer
  Bros. Co., a Delaware corporation

  
	
   

  
	
  By:

  	
  /S/
  GUENTER W. BERGER

  
	
   

  
	
  Name:

  	
  GUENTER
  W. BERGER

  
	
   

  
	
  Title:

  	
  CHAIRMAN
  AND CHIEF EXECUTIVE OFFICER

  
	
   

  
	
  By:

  	
  /S/
  JOHN E. SIMMONS

  
	
   

  
	
  Name:

  	
  JOHN
  E. SIMMONS

  
	
   

  
	
  Title:

  	
  TREASURER
  AND CHIEF FINANCIAL OFFICER

  
	
   

  
	
  “EXECUTIVE”

  
	
   

  
	
   

  	
  /S/
  ROGER M. LAVERTY III

  
	
   

  	
  Roger
  M. Laverty III

  

 

 

9Exhibit 4.1

 

INDENTURE

DATED AS OF JUNE 6, 2006,

between

EDISON
MISSION ENERGY

and

WELLS
FARGO BANK, NATIONAL ASSOCIATION,

as Trustee

Providing for the issuance from time to

time of Notes in one or more series

 

CROSS-REFERENCE TABLE* 

 

	
  Trust Indenture

  Act of 1939 Section

  	
   

  	
  Indenture Section

  
	
  310(a)(1)

  	
   

  	
  5.8

  
	
  (a)(2)

  	
   

  	
  5.8

  
	
  312(a)

  	
   

  	
  2.6

  
	
  313

  	
   

  	
  5.12

  
	
  314(a)(1)

  	
   

  	
  3.4

  
	
  (a)(2)

  	
   

  	
  3.4

  
	
  (a)(3)

  	
   

  	
  5.12

  
	
  (a)(4)

  	
   

  	
  3.3

  
	
  (c)(1)

  	
   

  	
  11.5

  
	
  (c)(2)

  	
   

  	
  11.5

  
	
  (e)

  	
   

  	
  11.5

  
	
  315(a)

  	
   

  	
  5.1(a)

  
	
  (c)

  	
   

  	
  5.1

  
	
  (d)

  	
   

  	
  5.1(a)

  
	
  316(a)(1)

  	
   

  	
  4.8

  
	
  (b)

  	
   

  	
  4.10

  
	
  (c)

  	
   

  	
  6.2

  
	
  317(a)

  	
   

  	
  4.2

  
	
  (b)

  	
   

  	
  2.5

  
	
  318(a)

  	
   

  	
  11.10

  

 

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

 

TABLE
OF CONTENTS

 

	
  

  	
   

  	
  

  	
   

  	
  Page

  
	
  ARTICLE 1.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEFINITIONS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.1

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  Section 1.2

  	
   

  	
  Incorporation by Reference of Trust Indenture Act

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE NOTES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.1

  	
   

  	
  Form and Dating

  	
   

  	
  10

  
	
  Section 2.2

  	
   

  	
  Amount; Issuable in Series

  	
   

  	
  11

  
	
  Section 2.3

  	
   

  	
  Execution and Authentication

  	
   

  	
  12

  
	
  Section 2.4

  	
   

  	
  Registrar and Paying Agent

  	
   

  	
  12

  
	
  Section 2.5

  	
   

  	
  Paying Agent to Hold Money in Trust

  	
   

  	
  13

  
	
  Section 2.6

  	
   

  	
  Holder Lists

  	
   

  	
  13

  
	
  Section 2.7

  	
   

  	
  Transfer and Exchange

  	
   

  	
  14

  
	
  Section 2.8

  	
   

  	
  Replacement Notes

  	
   

  	
  28

  
	
  Section 2.9

  	
   

  	
  Outstanding Notes

  	
   

  	
  28

  
	
  Section 2.10

  	
   

  	
  Temporary Notes

  	
   

  	
  28

  
	
  Section 2.11

  	
   

  	
  Cancellation

  	
   

  	
  28

  
	
  Section 2.12

  	
   

  	
  Defaulted Interest

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COVENANTS OF THE
  COMPANY AND THE TRUSTEE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.1

  	
   

  	
  Payment of Principal and Interest; Payment of
  Liquidated Damages

  	
   

  	
  29

  
	
  Section 3.2

  	
   

  	
  Appointment to Fill Vacancy in Office of Trustee

  	
   

  	
  30

  
	
  Section 3.3

  	
   

  	
  Certificate to Trustee, Notices of Defaults

  	
   

  	
  30

  
	
  Section 3.4

  	
   

  	
  Reports by the Company

  	
   

  	
  30

  
	
  Section 3.5

  	
   

  	
  Restrictions on Liens

  	
   

  	
  30

  
	
  Section 3.6

  	
   

  	
  Maintenance of Corporate Existence

  	
   

  	
  31

  
	
  Section 3.7

  	
   

  	
  Taxes

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EVENTS OF
  DEFAULT AND REMEDIES OF THE TRUSTEE AND NOTEHOLDERS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.1

  	
   

  	
  Event of Default Defined; Acceleration of Maturity;
  Waiver of Default

  	
   

  	
  31

  

 

 ii
 

 

 

	
  Section 4.2

  	
   

  	
  Collection of Indebtedness by Trustee; Trustee
  May Prove Debt

  	
   

  	
  33

  
	
  Section 4.3

  	
   

  	
  Application of Proceeds

  	
   

  	
  35

  
	
  Section 4.4

  	
   

  	
  Suits for Enforcement

  	
   

  	
  36

  
	
  Section 4.5

  	
   

  	
  Restoration of Rights on Abandonment of Proceedings

  	
   

  	
  36

  
	
  Section 4.6

  	
   

  	
  Limitations of Suits by Noteholders

  	
   

  	
  37

  
	
  Section 4.7

  	
   

  	
  Powers and Remedies Cumulative, Delay or Omission
  Not Waiver of Default

  	
   

  	
  37

  
	
  Section 4.8

  	
   

  	
  Control by Noteholders

  	
   

  	
  37

  
	
  Section 4.9

  	
   

  	
  Waiver of Past Defaults

  	
   

  	
  38

  
	
  Section 4.10

  	
   

  	
  Rights of Holders to Receive Payment

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CONCERNING THE
  TRUSTEE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.1

  	
   

  	
  Duties and Responsibilities of the Trustee During
  Default and Prior to Default

  	
   

  	
  38

  
	
  Section 5.2

  	
   

  	
  Certain Rights of the Trustee

  	
   

  	
  39

  
	
  Section 5.3

  	
   

  	
  Trustee Not Responsible for Recitals, Disposition of
  Notes or Application of Proceeds Thereof

  	
   

  	
  41

  
	
  Section 5.4

  	
   

  	
  Trustee and Agents May Hold Notes; Collections,
  Etc

  	
   

  	
  41

  
	
  Section 5.5

  	
   

  	
  Moneys Held by Trustee

  	
   

  	
  41

  
	
  Section 5.6

  	
   

  	
  Compensation and Indemnification of Trustee and Its
  Prior Claim

  	
   

  	
  41

  
	
  Section 5.7

  	
   

  	
  Right of Trustee to Rely on Officers’ Certificate,
  Etc

  	
   

  	
  42

  
	
  Section 5.8

  	
   

  	
  Persons Eligible for Appointment as Trustee

  	
   

  	
  42

  
	
  Section 5.9

  	
   

  	
  Resignation and Removal, Appointment of Successor
  Trustee

  	
   

  	
  42

  
	
  Section 5.10

  	
   

  	
  Acceptance of Appointment by Successor Trustee

  	
   

  	
  43

  
	
  Section 5.11

  	
   

  	
  Merger, Conversion, Consolidation or Succession to
  Business of Trustee

  	
   

  	
  44

  
	
  Section 5.12

  	
   

  	
  Reports by Trustee

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CONCERNING THE
  NOTEHOLDERS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.1

  	
   

  	
  Evidence of Action Taken by Noteholders

  	
   

  	
  45

  
	
  Section 6.2

  	
   

  	
  Proof of Execution of Instruments and of Holding of
  Notes Record Date

  	
   

  	
  45

  
	
  Section 6.3

  	
   

  	
  Holders to Be Treated as Owners

  	
   

  	
  45

  
	
  Section 6.4

  	
   

  	
  Notes Owned by Company Deemed Not Outstanding

  	
   

  	
  46

  
	
  Section 6.5

  	
   

  	
  Right of Revocation of Action Taken

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUPPLEMENTAL
  INDENTURES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.1

  	
   

  	
  Supplemental Indentures Without Consent of
  Noteholders

  	
   

  	
  46

  
	
  Section 7.2

  	
   

  	
  Supplemental Indentures With Consent of Noteholders

  	
   

  	
  48

  
	
  Section 7.3

  	
   

  	
  Effect of Supplemental Indenture

  	
   

  	
  49

  

 

 iii
 

 

 

	
  Section 7.4

  	
   

  	
  Documents to Be Given to Trustee

  	
   

  	
  49

  
	
  Section 7.5

  	
   

  	
  Notation of Notes in Respect of Supplemental
  Indentures

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MERGER,
  CONSOLIDATION, SALE, LEASE OR CONVEYANCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 8.1

  	
   

  	
  Covenant Not to Merge, Consolidate, Sell, Lease or
  Transfer Assets Except Under Certain Conditions      

  	
   

  	
  49

  
	
  Section 8.2

  	
   

  	
  Successor Corporation Substituted

  	
   

  	
  50

  
	
  Section 8.3

  	
   

  	
  Opinion of Counsel to Trustee; Officers’ Certificate

  	
   

  	
  50

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 9.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SATISFACTION AND
  DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 9.1

  	
   

  	
  Satisfaction and Discharge of Indenture

  	
   

  	
  51

  
	
  Section 9.2

  	
   

  	
  Application by Trustee of Funds Deposited for Payment
  of Notes

  	
   

  	
  52

  
	
  Section 9.3

  	
   

  	
  Repayment of Moneys Held by Paying Agent

  	
   

  	
  52

  
	
  Section 9.4

  	
   

  	
  Return of Moneys Held by Trustee and Paying Agent
  Unclaimed for Two Years

  	
   

  	
  52

  
	
  Section 9.5

  	
   

  	
  Defeasance and Discharge of Indenture

  	
   

  	
  52

  
	
  Section 9.6

  	
   

  	
  Defeasance of Certain Obligations

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REDEMPTION OF
  NOTES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.1

  	
   

  	
  Notes Redeemed in Part

  	
   

  	
  55

  
	
  Section 10.2

  	
   

  	
  Notice of Redemption

  	
   

  	
  55

  
	
  Section 10.3

  	
   

  	
  Payment of Notes Called for Redemption

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 11.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MISCELLANEOUS
  PROVISIONS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 11.1

  	
   

  	
  Incorporators, Shareholders, Officers and Directors
  of Company Exempt from Individual Liability

  	
   

  	
  56

  
	
  Section 11.2

  	
   

  	
  Provisions of the Indenture for the Sole Benefit of
  Parties and Noteholders

  	
   

  	
  56

  
	
  Section 11.3

  	
   

  	
  Successors and Assigns of Company Bound by Indenture

  	
   

  	
  56

  
	
  Section 11.4

  	
   

  	
  Notices and Demands on Company, Trustee and
  Noteholders

  	
   

  	
  56

  
	
  Section 11.5

  	
   

  	
  Statements to Be Contained in Officers’ Certificates
  and Opinions of Counsel

  	
   

  	
  57

  
	
  Section 11.6

  	
   

  	
  Payments Due on Saturdays, Sundays and Holidays

  	
   

  	
  58

  
	
  Section 11.7

  	
   

  	
  New York Law to Govern

  	
   

  	
  58

  
	
  Section 11.8

  	
   

  	
  Counterparts

  	
   

  	
  58

  
	
  Section 11.9

  	
   

  	
  Effect of Headings

  	
   

  	
  58

  
	
  Section 11.10

  	
   

  	
  Trust Indenture Act

  	
   

  	
  58

  

 

 iv
 

 

 

	
  EXHIBITS

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  FORM OF NOTE

  	
   

  	
   

  
	
  Exhibit B

  	
   

  	
  FORM OF CERTIFICATE OF TRANSFER

  	
   

  	
   

  
	
  Exhibit B-1

  	
   

  	
  FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL
  ACCREDITED INVESTOR

  	
   

  	
   

  
	
  Exhibit C

  	
   

  	
  FORM OF CERTIFICATE OF EXCHANGE

  	
   

  	
   

  

 

 v

INDENTURE, dated as of June 6, 2006, between
EDISON MISSION ENERGY, a Delaware corporation (the “Company”), and WELLS
FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as trustee
(the “Trustee”).

WITNESSETH:

WHEREAS, the Company has duly authorized the issue of
its senior notes to be issued in one or more series (the “Notes”), and
to provide, among other things, for the authentication, delivery and
administration thereof, the Company has duly authorized the execution and
delivery of this Indenture; and

WHEREAS, all things necessary to make the Notes, when
executed by the Company and authenticated and delivered by the Trustee as in
this Indenture provided, the valid, binding and legal obligations of the
Company, and to constitute these presents a valid Indenture and agreement
according to its terms, have been done;

NOW, THEREFORE:

In consideration of the premises and the purchases of
the Notes by the Holders (as defined herein) thereof, the Company and the
Trustee mutually covenant and agree for the equal and proportionate benefit of
the respective Holders from time to time of the Notes as follows:

ARTICLE 1.

DEFINITIONS

Section 1.1                                   Definitions.

The following terms (except as otherwise expressly
provided) for all purposes of this Indenture shall have the respective meanings
specified in this Section. All accounting terms used herein and not expressly
defined shall have the meanings given to them in accordance with GAAP (as
defined herein). The words “herein,” “hereof” and “hereunder” and other words
of similar import refer to this Indenture as a whole and not to any particular
Article, Section or other subdivision. References to sections or rules under
the Securities Act will be deemed to include substitute, replacement or
successor sections or rules adopted by the SEC from time to time. The term
“or” is not exclusive. The terms defined in this Article include the
plural as well as the singular.

“144A Global Note” means a Global Note
substantially in the form of Exhibit A hereto bearing the Global Note
Legend, and the Private Placement Legend and the ERISA Legend and deposited
with or on behalf of, and registered in the name of, the Depositary or its
nominee that will be issued in a denomination equal to the outstanding
principal amount of the Notes of a series sold in reliance on Rule 144A.

“Additional Notes” means “Additional Notes” as
defined in each Series Supplemental Indenture.

 

“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,” as used with respect to any Person, means 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; provided that
beneficial ownership of 10% or more of the Voting Stock of a Person will be
deemed to be control. For purposes of this definition, the terms “controlling,”
“controlled by” and “under common control with” have correlative meanings.

“Agent” means any Registrar, co-registrar,
Paying Agent or additional paying agent.

“Applicable Procedures” means, with respect to
any transfer or exchange of or for beneficial interests in any Global Note, the
rules and procedures of the Depositary, Euroclear and Clearstream that
apply to such transfer or exchange.

“Authentication Order” has the meaning set
forth in Section 2.3 hereof.

“Bankruptcy Law” means Title 11, U.S. Code or
any similar federal or state law for the relief of debtors.

“Beneficial Owner” has the meaning assigned to
such term in Rule 13d-3 and Rule 13d-5 under the Exchange
Act, except that in calculating the beneficial ownership of any particular “person”
(as that term is used in Section 13(d)(3) of the Exchange
Act), such “person” will be deemed to have beneficial ownership of all
securities that such “person” has the right to acquire by conversion or
exercise of other securities, whether such right is currently exercisable or is
exercisable only after the passage of time. The terms “beneficially owns” and “beneficially
owned” have a corresponding meanings.

“Board of Directors” means:

(1)           with respect to a
corporation, the board of directors of the corporation or any committee thereof
duly authorized to act on behalf of such board;

(2)           with respect to a
partnership, the board of directors of the general partner of the partnership;

(3)           with respect to a
limited liability company, the managing member or members or any controlling
committee of managing members thereof; and

(4)           with respect to any
other Person, the board or committee of such Person serving a similar function.

“Broker-Dealer” has the meaning set forth in
the Registration Rights Agreement.

“Business Day” means a day which is neither a
legal holiday nor a day on which banking institutions (including, without
limitation, the Federal Reserve System) are authorized or required by law or
regulation to close in the City of New York.

 2
 

 

“Capital Stock” means:

(1)           in the case of a
corporation, corporate stock;

(2)           in the case of an
association or business entity, any and all shares, interests, participations,
rights or other equivalents (however designated) of corporate stock;

(3)           in the case of a partnership
or limited liability company, partnership interests (whether general or
limited) or membership interests; and

(4)           any other interest
or participation that confers on a Person the right to receive a share of the
profits and losses of, or distributions of assets of, the issuing Person, but
excluding from all of the foregoing any debt securities convertible into
Capital Stock, whether or not such debt securities include any right of
participation with Capital Stock.

“Clearstream” means Clearstream Banking, S.A.

“Company” means Edison Mission Energy, and any
and all successors thereto.

“Consolidated Net Tangible Assets” means, as of
any date of determination, the total amount of all of the Company’s assets,
determined on a consolidated basis in accordance with GAAP as of such date,
less the sum of (a) the Company’s consolidated current liabilities
determined in accordance with GAAP and (b) the Company’s assets properly
classified as intangible assets in accordance with GAAP, except for any
intangible assets that are distribution or related contracts with an assignable
value.

“Corporate Trust Office” means the principal
office of the Trustee at which the corporate trust business of the Trustee
shall, at any particular time, be principally administered, which office is, at
the date as of which this Indenture is dated, located at Wells Fargo Bank,
National Association, 707 Wilshire Blvd, 17th Floor, Los Angeles, CA  90017.

“Custodian” means the Trustee, as custodian
with respect to the Notes in global form, or any successor entity thereto.

“Default” means any occurrence, circumstance or
event, or any combination thereof, which, with the lapse of time and/or the
giving of notice, would constitute an Event of Default.

“Definitive Note” means a certificated Note
registered in the name of the Holder thereof and issued in accordance with Section 2.7
hereof, substantially in the form of Exhibit A hereto except that
such Note shall not bear the Global Note Legend and shall not have the “Schedule
of Exchanges of Interests in the Global Note” attached thereto.

“Depositary” means, with respect to the Notes
issuable or issued in whole or in part in global form, the Person specified in Section 2.4
hereof as the Depositary with respect to the Notes, and any and all successors
thereto appointed as depositary hereunder and having become such pursuant to
the applicable provision of this Indenture.

“DTC” has the meaning set forth in Section 2.4
hereof.

 3
 

 

“Equity Interests” means Capital Stock and all
warrants, options or other rights to acquire Capital Stock (but excluding any
debt security that is convertible into, or exchangeable for, Capital Stock).

“ERISA Legend” means the legend set forth in Section 2.7(g)(iv) hereof
to be placed on all Notes issued under this Indenture except where otherwise
permitted by the provisions of this Indenture.

“Euroclear” means Euroclear Bank, S.A./N.V., as
operator of the Euroclear system.

“Event of Default” means any event or condition
specified as such in Section 4.1 hereof that shall have continued
for the period of time, if any, therein designated.

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

“Exchange Notes” means the Notes issued in the
Registered Exchange Offer pursuant to Section 2.7(f) hereof.

“Exchange Offer Registration Statement” has the
meaning set forth in the Registration Rights Agreement.

“GAAP” means generally accepted accounting
principles in the United States applied on a basis consistent with the
principles, methods, procedures and practices employed in the preparation of
the Company’s audited financial statements, including, without limitation,
those 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 or in such other
statements by such other entity as have been approved by a significant segment
of the accounting profession, which are in effect from time to time.

“Global Note Legend” means the legend set forth
in Section 2.7(g)(ii) hereof, which is required to be placed
on all Global Notes issued under this Indenture.

“Global Notes” means, individually and
collectively, each of the Restricted Global Notes and the Unrestricted Global
Notes deposited with or on behalf of and registered in the name of the
Depositary or its nominee, substantially in the form of Exhibit A
hereto, that bears the Global Note Legend and has the “Schedule of Exchanges of
Interests in the Global Note” attached thereto.

 4
 

 

“Good Faith Contest” means the contest of an
item if (i) the item is diligently being contested in good faith by
appropriate proceedings timely instituted, (ii) adequate reserves are
established in accordance with GAAP with respect to the contested item, if the
contested item individually or when taken together with all other contested
items for which reserves are not at the time being held could reasonably be
expected to result in liability of the Company in excess of $1,000,000, (iii) during
the period of such contest, the enforcement of any contested item is
effectively stayed, unless such enforcement would not reasonably be expected to
result in a Material Adverse Effect, (iv) any Lien filed in connection
therewith shall have been removed from the record by bonding arrangements by a
reputable surety company, or title insurance or cash deposits are otherwise
provided to assure the discharge of the Company’s obligation in connection
therewith, provided that such cash deposits, in the aggregate, shall not exceed
$2,000,000, (v) such payment shall have been made as is necessary to
prevent the recordation of a tax deed or other similar instrument conveying the
property of the Company or any portion thereof, (vi) the failure to pay or
comply with the contested item during the period of such Good Faith Contest
would not reasonably be expected to result in a Material Adverse Effect and (vii) the
Company has no knowledge of any actual or proposed deficiency or additional
assessment in connection therewith not otherwise satisfying the requirements of
clauses (i) through (vi).

“Holder,” “Holder of Notes,” “Noteholder”
and other similar terms mean the registered holder of any Note as reflected in
the registration records of the Registrar.

“IAI Global Note” means a Global Note
substantially in the form of Exhibit A hereto bearing the Global
Note Legend, the Private Placement Legend and the ERISA Legend and deposited
with or on behalf of and registered in the name of the Depositary or its
nominee that will be issued in a denomination equal to the outstanding
principal amount of the Notes of a series sold to Institutional Accredited
Investors.

“Indebtedness” has the meaning set forth in Section 3.5.

“Indenture” means this instrument as originally
executed and delivered or, if amended or supplemented as herein provided, as so
amended or supplemented.

“Indirect Participant” means a Person who holds
a beneficial interest in a Global Note through a Participant.

“Initial Notes” means “Initial Notes” as
defined in each Series Supplemental Indenture.

“Initial Purchaser” means the initial purchaser
or initial purchasers of any series of Notes.

“Institutional Accredited Investor” means an
institution that is an “accredited investor” as defined in Rule 501(a)(1),
(2), (3) or (7) under the Securities Act, who is not also a QIB.

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

“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.

“Letter of Transmittal” means the letter of
transmittal to be prepared by the Company and sent to all Holders of the Notes
for use by such Holders in connection with the Registered Exchange Offer.

“Liquidated Damages” means all liquidated
damages then owing pursuant to the Registration Rights Agreement.

 5
 

 

“Material Adverse Effect” means a material
adverse effect on the condition (financial or other), business, properties or
results of operations of the Company and its subsidiaries, taken as a whole, or
on the ability of the Company to perform its obligations under this Indenture,
any indenture supplemental hereto, the Notes, any Registration Rights Agreement
or any purchase or underwriting agreement in respect of any series of Notes.

“Non-U.S. Person” means a Person who is not a
U.S. Person.

“Note” or “Notes” has the meaning set
forth in the recitals above. The Initial Notes and any Additional Notes of each
series shall be treated as a single class for all purposes under this
Indenture, and unless the context otherwise requires, all references to the
Notes shall include the Initial Notes and any Additional Notes.

“Notes Register” has the meaning set forth in Section 2.4
hereof.

“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 the Chairman of the Board of Directors or
the President or any Vice President and by the Chief Financial Officer or the
Secretary or any Assistant Secretary or the Treasurer or any Assistant
Treasurer of the Company and delivered to the Trustee. Each such certificate
shall include the statements provided for in Section 11.5 hereof,
if and to the extent required thereby.

“Opinion of Counsel” means an opinion in writing
signed by legal counsel, who may be an employee of or counsel to the Company. Each
such opinion shall include the statements provided for in Section 11.5
hereof, if and to the extent required thereby.

“Original Issue Date” of any Note (or portion
thereof) means the earlier of (a) the date of such Note or (b) the
date of any Note (or portion thereof) in exchange for which such Note was
issued (directly or indirectly) on registration of transfer, exchange or
substitution.

“Outstanding”, when used with reference to
Notes, means, subject to the provisions of Sections 2.9 and 6.4
hereof, as of any particular time, all Notes authenticated and delivered by the
Trustee under this Indenture, except:

(i)            Notes
theretofore canceled by the Trustee or delivered to the Trustee for
cancellation, or which shall have been paid pursuant to Section 2.8
hereof (other than any such Notes in respect of which there shall have been
presented to the Trustee proof satisfactory to it that such Notes are held by a
bona fide purchaser in whose hands the Notes are valid obligations of the
Company); and

 6
 

 

(ii)           Notes,
or portions thereof, for the payment or redemption of which moneys or direct
obligations of the United States of America backed by its full faith and credit
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,
segregated and held in trust by the Company (if the Company shall act as its
own paying agent), provided that if such Notes are to be redeemed prior to the
maturity thereof, written notice of such redemption shall have been herein
provided, or provision satisfactory to the Trustee shall have been given as
herein provided, or provision satisfactory to the Trustee shall have been made
for giving such notice.

“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 DTC,
shall include Euroclear and Clearstream).

“Paying Agent” has the meaning set forth in Section 2.4
hereof.

“Person” means an individual, a corporation, a
partnership, a limited liability company, an association, a trust or any other
entity or organization, including a government or political subdivision or an
agency or instrumentality thereof.

“Private Placement Legend” means the legend set
forth in Section 2.7(g)(i) hereof to be placed on all Notes
issued under this Indenture except where otherwise permitted by the provisions
of this Indenture.

“QIB” means a “qualified institutional buyer”
as defined in Rule 144A.

“Registered Exchange Offer” has the meaning set
forth in the Registration Rights Agreement.

“Registrar” has the meaning set forth in Section 2.4
hereof.

“Registration Rights Agreement” means the
Registration Rights Agreement, dated as of June 6, 2006, between the
Company and the other parties named on the signature pages thereof, as
such agreement may be amended, modified or supplemented from time to time and
with respect to any Additional Notes, one or more registration rights
agreements between the Company and the other parties thereto, as such agreement(s) may
be amended, modified or supplemented from time to time, relating to rights
given by the Company to the purchasers of Additional Notes, or any additional
series of Notes issued after the date hereof, to register such Additional
Notes, or exchange such Additional Notes, or additional series of Notes, for
securities registered under the Securities Act.

“Regulation S” means Regulation S promulgated
under the Securities Act.

“Regulation S Global Note” means a Global Note
substantially in the form of Exhibit A hereto bearing the Global
Note Legend, the Private Placement Legend and the ERISA Legend and deposited
with or on behalf of and registered in the name of the Depositary or its
nominee, issued in a denomination equal to the outstanding principal amount of
the Notes of a series sold in reliance on Rule 903 of Regulation S.

 7
 

 

“Responsible Officer,” when used with respect
to the Trustee, means any officer of the Trustee assigned by the Trustee to
administer its corporate trust matters.

“Restricted Definitive Note” means a Definitive
Note bearing the Private Placement Legend.

“Restricted Global Note” means a Global Note bearing
the Private Placement Legend and deposited with or on behalf of, and registered
in the name of, the Depositary or its nominee.

“Restricted Period” means the 40-day
distribution compliance period as defined in Regulation S.

“Rule 144” means Rule 144 promulgated
under the Securities Act.

“Rule 144A” means Rule 144A
promulgated under the Securities Act.

“Rule 903” means Rule 903 promulgated
under the Securities Act.

“Rule 904” means Rule 904 promulgated
under the Securities Act.

“SEC” means the Securities and Exchange
Commission.

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

“Series Supplemental Indenture” means an
indenture supplemental to this Indenture entered into by the Company and the
Trustee for the purpose of establishing, in accordance with Article 2
of this Indenture, the title, form and terms of the Notes of any series.

“Shelf Registration Statement” means a Shelf
Registration Statement as defined in a Registration Rights Agreement.

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

“Subsidiary” means, with respect to any specified
Person:

(1) any corporation, association or other
business entity of which more than 50% of the total voting power of shares of
Capital Stock 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 such Person or one or more of
the other Subsidiaries of such Person or a combination thereof; or

(2) any partnership (a) the sole general
partner or the managing general partner of which is such Person or a Subsidiary
of such Person or (b) the only general partners of which are that Person
or one or more subsidiaries of that Person (or any combination thereof).

“TIA” means the Trust Indenture Act of 1939, as
amended (15 U.S.C. §§ 77aaa — 77bbbb).

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“Trustee” means the entity identified as “Trustee”
in the first paragraph hereof until the appointment of a successor trustee
pursuant to Article 5, after which “Trustee” shall mean such
successor trustee.

“Unrestricted Definitive Note” means a
Definitive Note that does not bear and is not required to bear the Private
Placement Legend.

“Unrestricted Global Note” means a Global Note
that does not bear and is not required to bear the Private Placement Legend.

“U.S. Government Obligations” means securities
that are (i) direct and unconditional obligations of the United States of
America for the payment of which its full faith and credit is pledged or (ii) obligations
of a Person controlled or supervised by, and acting as an agency or instrumentality
of, the United States of America, the payment of which is unconditionally
guaranteed as a full faith and credit obligation by the United States of
America, which, in either case, are not callable or redeemable at the option of
the issuer thereof, and shall also include a depository receipt issued by a
bank or trust company subject to federal or state supervision or examination
with a combined capital and surplus of at least $100,000,000, as custodian with
respect to any such U.S. Government Obligations or a specific payment of
interest on or principal of any such U.S. 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 U.S. Government
Obligation or the specific payment of interest on or principal of the U.S.
Government Obligation evidenced by such depository receipt.

“U.S. Person” means a U.S. Person as defined in
Rule 902(k) promulgated under the Securities Act.

“Voting Stock” of any specified Person as of
any date means the Capital Stock of such Person that is at the time entitled to
vote in the election of the Board of Directors of such Person.

Section 1.2                                   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:

“indenture securities” means the Notes;

“indenture security Holder” means a Holder of a
Note;

“indenture to be qualified” means this
Indenture;

“indenture trustee” or “institutional
trustee” means the Trustee; and

“obligor” on the Notes means the Company and
any successor obligor upon the Notes.

 9

 

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

ARTICLE 2.

THE NOTES

Section 2.1                                   Form and Dating.

(a)          General. The Notes and the Trustee’s certificate of
authentication shall be substantially in the form of Exhibit A
hereto. The Notes may have notations, legends or endorsements required by law,
stock exchange rule or usage. Each Note shall be dated the date of its authentication.
The Notes shall be in denominations of $2,000 and integral multiples of $1,000
in excess thereof. Interest on the Notes shall be computed on the basis of a 360-day
year consisting of twelve 30-day months.

The terms and provisions contained in the Notes shall
constitute, and are hereby expressly made, a part of this Indenture and the
Company and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby. However,
to the extent any provision of any Note conflicts with the express provisions
of this Indenture, the provisions of this Indenture shall govern and be
controlling.

For purposes of this Article 2, the
unrestricted Notes pertaining to previously restricted Notes (such as the
unrestricted Notes that may be exchanged for restricted Notes pursuant to a
Registered Exchange Offer) shall be deemed to be Notes of the same series,
notwithstanding that such unrestricted Notes and restricted Notes may be
designated as different series and have been issued under different Series Supplemental
Indentures.

(b)          Global Notes. Notes issued in global form shall be substantially
in the form of Exhibit A hereto (including the Global Note Legend
and the ERISA Legend thereon and the “Schedule of Exchanges of Interests in the
Global Note” attached thereto). Notes issued in definitive form shall be
substantially in the form of Exhibit A hereto (including the ERISA
Legend but without the Global Note Legend thereon and without the “Schedule of
Exchanges of Interests in the Global Note” attached thereto). Each Global Note
shall represent such of the outstanding Notes as shall be specified therein and
each shall provide that it represents the aggregate principal amount of
outstanding Notes from time to time endorsed thereon and that the aggregate
principal amount of outstanding Notes represented thereby may from time to time
be reduced or increased, as appropriate, to reflect exchanges and redemptions. Any
endorsement of a Global Note to reflect the amount of any increase or decrease
in the aggregate principal amount of outstanding Notes represented thereby
shall be made by the Trustee or the Custodian, at the direction of the Trustee,
in accordance with instructions given by the Holder thereof as required by Section 2.7
hereof.

(c)           Euroclear and Clearstream Procedures Applicable. The provisions of the “Operating
Procedures of the Euroclear System” and “Terms and Conditions Governing Use of
Euroclear” and the “General Terms and Conditions of Clearstream Banking” and “Customer
Handbook” of Clearstream shall be applicable to transfers of beneficial
interests in each Regulation S Global Note that is held by Participants through
Euroclear or Clearstream.

 10
 

 

Section 2.2                                   Amount; Issuable in Series.

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

The Notes may be issued in one or more series. There
shall be established in one or more Series Supplemental Indentures, prior
to the issuance of Notes of any series:

(a)          the title of the Notes of such series (which shall distinguish the
Notes of such series from all other Notes);

(b)          any limit upon the aggregate principal amount of the Notes of such
series that may be authenticated and delivered under this Indenture (except for
Notes authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Notes of such series pursuant to Section 2.7(f), 2.8, 2.10, 7.5 or 10.1
and except for Notes that are deemed never to have been authenticated and
delivered hereunder);

(c)           the date or dates on which the principal of the Notes
of such series is payable, the amounts of principal payable on such date or
dates and the regular record date for the determination of Holders to whom principal
is payable; and the date or dates on or as of which the Notes of such series
shall be dated, if other than as provided in the first paragraph of Section 2.1(a);

(d)          the rate or rates at which the Notes of such series shall bear
interest, or the method by which such rate or rates shall be determined, the
date or dates from which such interest shall accrue, the interest payment dates
on which such interest shall be payable and the regular record date for the
determination of Holders to whom interest is payable, and the basis of
computation of interest, if other than as provided in the first paragraph of Section 2.1(a);

(e)           if other than as provided in Section 2.4,
the place or places where (i) the principal of and interest on Notes of
such series shall be payable, (ii) Notes of such series may be surrendered
for registration of transfer or exchange and (iii) notices and demands to
or upon the Company in respect of the Notes of such series and this Indenture
may be served;

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

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

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(h)          if other than minimum denominations of $2,000 and any integral
multiples of $1,000 in excess thereof, the denominations in which Notes of such
series shall be issuable;

(i)           any other terms of such series (which terms shall not
be inconsistent with the provisions of this Indenture);

(j)            any trustees, authenticating or paying agents, warrant
agents, transfer agents or registrars with respect to the Notes of such series
if different than those provided for herein; and

(k)          CUSIP numbers, if any.

Section 2.3                                   Execution and Authentication.

Two Officers shall sign the Notes for the Company by
manual or facsimile signature.

If an Officer whose signature is on a Note no longer
holds that office at the time a Note is authenticated, the Note shall
nevertheless be valid.

A Note shall not be valid until authenticated by the
manual signature of the Trustee. The signature shall be conclusive evidence
that the Note has been authenticated under this Indenture.

The Trustee shall, upon a written order of the Company
signed by an Officer (an “Authentication Order”), authenticate the Notes
of a given series for original issue that may be validly issued under this
Indenture up to the aggregate principal amount, if applicable, stated in the
applicable Series Supplemental Indenture. The aggregate principal amount
of Notes of a given series outstanding at any time may not exceed such amount
except as provided in Section 2.8 hereof.

The Trustee may appoint an authenticating agent
acceptable to the Company to authenticate Notes. An authenticating agent may
authenticate Notes 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
Holders or an Affiliate of the Company.

Section 2.4                                   Registrar and Paying Agent.

The Company shall maintain, in the Borough of
Manhattan in the City of New York, an office or agency where Notes may be presented
for registration of transfer or for exchange (“Registrar”) and an office
or agency where Notes may be presented for payment (“Paying Agent”) and
an office or agency where notices and demands to or upon the Company in respect
of the Notes or this Indenture may be served. The Registrar shall keep a
register (the “Notes Register”) of the Notes and of their transfer and
exchange. The Company may appoint one or more co-registrars and one or more
additional paying agents. The term “Registrar” includes any co-registrar
and the term “Paying Agent” includes any additional paying agent. The
Company may change any Paying Agent or Registrar without notice to any Holder. The
Company shall notify the Trustee in writing of the name and address of any
Agent not a party to this Indenture. If the Company fails to appoint or
maintain another entity as Registrar or Paying Agent, the Trustee shall act as
such and shall accept presentations, notices and demands hereunder at the
Corporate Trust Office. The Company or any of its Subsidiaries may act as
Paying Agent or Registrar.

 12
 

 

The Company initially appoints The Depository Trust
Company (“DTC”) to act as Depositary with respect to the Global Notes.

The Company initially appoints the Trustee to act as
the Registrar and Paying Agent and to act as Custodian with respect to the
Global Notes and designates the Trustee’s Minneapolis office as the office or
agency referred to in the first sentence of this Section.

Section 2.5                                   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 shall hold in trust for
the benefit of Holders or the Trustee all money held by the Paying Agent for
the payment of principal, premium or Liquidated Damages, if any, or interest on
the Notes, and will notify the Trustee in writing 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 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 Notes.

The Company shall, prior to each due date, or not
later than 11:00 AM New York City time on each due date, of the principal of,
premium, and Liquidated Damages, if any, or interest on the Notes, deposit with
the Paying Agent a sum sufficient to pay such principal, premium, or interest,
and (unless such Paying Agent is the Trustee) the Company shall promptly notify
the Trustee of any failure to take such action.

Anything in this Section 2.5 to the
contrary notwithstanding, the Company may at any time, for the purpose of
obtaining satisfaction and discharge of this Indenture or for any other reason,
pay or cause to be paid to the Trustee all sums held in trust by any Paying
Agent hereunder, as required by this Section 2.5, such sums to be
held by the Trustee upon the trusts herein contained.

Anything in this Section to the contrary
notwithstanding, the agreement to hold sums in trust as provided in this Section 2.5
is subject to the provisions of Section 9.1 and Section 9.3
hereof.

Section 2.6                                   Holder 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 and shall otherwise comply with TIA § 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 Notes and the Company shall otherwise comply with TIA § 312(a).

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Section 2.7                                   Transfer and Exchange.

(a)          Transfer and Exchange of Global Notes. A Global Note may not be
transferred except as a whole except by the Depositary to a nominee of the
Depositary, by a nominee of the Depositary to the Depositary or to another
nominee of the Depositary, or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary. All Global
Notes will be exchanged by the Company for Definitive Notes if (i) the
Company delivers to the Trustee notice from the Depositary that it is unwilling
or unable to continue to act as Depositary for any of the Global Notes or that
it is no longer a clearing agency registered under the Exchange Act and, in
either case, a successor Depositary is not appointed by the Company within 120
days after the date of such notice from the Depositary, (ii) there shall
have occurred and be continuing a Default or Event of Default with respect to
the applicable Notes and beneficial owners holding interests representing an
aggregate principal amount of at least 51% of such Notes represented by Global
Notes advise the Trustee in writing that the continuation of a book-entry
system through the Depositary is no longer in such owners’ best interests or (iii) the
Company executes and delivers to the Trustee an order that the Global Notes
will be so exchangeable. Upon the occurrence of any of the preceding events in
clauses (i), (ii) or (iii) above, Definitive Notes shall be issued in
such names as the Depositary shall instruct the Trustee in writing. Global
Notes also may be exchanged or replaced, in whole or in part, as provided in Sections
2.8 and 2.10 hereof. Every Note authenticated and delivered in
exchange for, or in lieu of, a Global Note or any portion thereof, pursuant to
this Section 2.7 or Section 2.8 or 2.10 hereof
shall be authenticated and delivered in the form of, and shall be, a Global
Note, except as otherwise provided herein. A Global Note may not be exchanged
for another Note other than as provided in this Section 2.7(a);
however, beneficial interests in a Global Note may be transferred and exchanged
as provided in Section 2.7(b), (c) or (f) hereof.

(b)          Transfer and Exchange of Beneficial Interests in the Global
Notes. The
transfer and exchange of beneficial interests in the Global Notes shall be
effected through the Depositary, in accordance with the provisions of this
Indenture and the Applicable Procedures. Beneficial interests in the Restricted
Global Notes shall be subject to restrictions on transfer comparable to those
set forth herein to the extent required by the Securities Act. Transfers of
beneficial interests in the Global Notes also shall require compliance with
either subparagraph (i) or (ii) below, as applicable, as well as one
or more of the other following subparagraphs, as applicable:

(i)            Transfer of Beneficial Interests in the Same Global Note. Beneficial
interests in any Restricted Global Note may be transferred to Persons who take
delivery thereof in the form of a beneficial interest in the same Restricted
Global Note in accordance with the transfer restrictions set forth in the
Private Placement Legend; provided, however, that prior to the expiration of
the Restricted Period, transfers of beneficial interests in the Regulation
S  Global Note may not be made to a U.S.
Person or for the account or benefit of a U.S. Person (other than an Initial
Purchaser). Beneficial interests in any Unrestricted Global Note may be transferred
to Persons who take delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note. No written orders or instructions shall be required
to be delivered to the Registrar to effect the transfers described in this Section 2.7(b)(i).

 14
 

 

(ii)           All Other Transfers and Exchanges of Beneficial Interests in Global
Notes. In connection with all transfers and exchanges of beneficial
interests that are not subject to Section 2.7(b)(i) above, the
transferor of such beneficial interest must deliver to the Registrar either (A) (1) a
written order from a Participant or an Indirect Participant given to the
Depositary in accordance with the Applicable Procedures directing the
Depositary to credit or cause to be credited a beneficial interest in another
Global Note in an amount equal to the beneficial interest to be transferred or
exchanged and (2) instructions given in accordance with the Applicable
Procedures containing information regarding the Participant account to be
credited with such increase or (B) (1) a written order from a
Participant or an Indirect Participant given to the Depositary in accordance
with the Applicable Procedures directing the Depositary to cause to be issued a
Definitive Note in an amount equal to the beneficial interest to be transferred
or exchanged and (2) instructions given by the Depositary to the Registrar
containing information regarding the Person in whose name such Definitive Note
shall be registered to effect the transfer or exchange referred to in clause
(B)(1) above. Upon consummation of an Registered Exchange Offer by the
Company in accordance with Section 2.7(f) hereof, the
requirements of this Section 2.7(b)(ii) shall be deemed to
have been satisfied upon receipt by the Registrar of the instructions contained
in the Letter of Transmittal delivered by the Holder of such beneficial
interests in the Restricted Global Notes of the applicable series. Upon
satisfaction of all of the requirements for transfer or exchange of beneficial
interests in Global Notes contained in this Indenture and the Notes or
otherwise applicable under the Securities Act, the Trustee shall adjust the
principal amount of the relevant Global Note(s) pursuant to Section 2.7(h) hereof.

(iii)          Transfer of Beneficial Interests in a Restricted Global Note.
A beneficial interest in any Restricted Global Note may be transferred to a
Person who takes delivery thereof in the form of a beneficial interest in
another Restricted Global Note if the transfer complies with the requirements
of Section 2.7(b)(ii) above and the Registrar receives the
following:

(A)          if
the transferee will take delivery in the form of a beneficial interest in a
144A Global Note, then the transferor must deliver a certificate in the form of
Exhibit B hereto, including the certifications in item (1) thereof;

(B)           if
the transferee will take delivery in the form of a beneficial interest in a
Regulation S Global Note, then the transferor must deliver a certificate in the
form of Exhibit B hereto, including the certifications in item (2) thereof;
and

(C)           if
the transferee will take delivery in the form of a beneficial interest in a IAI
Global Note, then the transferor must deliver a certificate in the form of Exhibit B
hereto, including the certifications, certificates and Opinion of Counsel
required by item (3) thereof, if applicable.

 15
 

 

(iv)          Transfer and Exchange of Beneficial Interests in the Restricted Global
Note of a Series for Beneficial Interests in the Unrestricted Global Note
of Such Series. A beneficial interest in the Restricted Global Note
of a series may be exchanged by any holder thereof for a beneficial interest in
the Unrestricted Global Note of such series, or transferred to a Person who
takes delivery thereof in the form of a beneficial interest in the Unrestricted
Global Note of such series, if the exchange or transfer complies with the
requirements of Section 2.7(b)(ii) and:

(A)          such
exchange or transfer is effected pursuant to the Registered Exchange Offer in
accordance with the Registration Rights Agreement and the holder of the
beneficial interest to be exchanged, in the case of an exchange, or the
transferee, in the case of a transfer, certifies in the applicable Letter of
Transmittal that it is not (1) a Broker-Dealer, (2) a Person
participating in the distribution of the Exchange Notes or (3) a Person
who is an affiliate (as defined in Rule 144) of the Company (or such other
certification as the Company determines to be required under applicable law);

(B)           such
transfer is effected pursuant to the Shelf Registration Statement in accordance
with the Registration Rights Agreement;

(C)           such
transfer is effected by a Broker-Dealer pursuant to the Registered Exchange
Offer Registration Statement in accordance with the Registration Rights
Agreement; or

(D)          the
Registrar receives the following:

(1)           if
the holder of such beneficial interest in a Restricted Global Note proposes to
exchange such beneficial interest for a beneficial interest in the Unrestricted
Global Note of such series, a certificate from such holder in the form of Exhibit C
hereto, including the certifications in item (l)(a) thereof; or

(2)           if
the holder of such beneficial interest in a Restricted Global Note proposes to
transfer such beneficial interest to a Person who shall take delivery thereof
in the form of a beneficial interest in the Unrestricted Global Note of such
series, a certificate from such holder in the form of Exhibit B
hereto, including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the
Company so requests or if the Applicable Procedures so require, an Opinion of
Counsel in form reasonably acceptable to the Company to the effect that such
exchange or transfer is in compliance with the Securities Act and that the
restrictions on transfer contained herein and in the Private Placement Legend
are no longer required in order to maintain compliance with the Securities Act.

 16
 

 

If any such transfer is effected pursuant to
subparagraph (B) or (D) above at a time when an Unrestricted Global
Note of the applicable series has not yet been issued, the Company shall issue
and, upon receipt of an Authentication Order in accordance with Section 2.3
hereof, the Trustee shall authenticate, one or more Unrestricted Global Notes
of such series in an aggregate principal amount equal to the aggregate
principal amount of beneficial interests transferred pursuant to subparagraph (B) or
(D) above.

Beneficial interests in an Unrestricted Global Note
cannot be exchanged for, or transferred to Persons who take delivery thereof in
the form of, a beneficial interest in a Restricted Global Note.

(c)           Transfer or Exchange of Beneficial Interests in Global
Notes for Definitive Notes.

(i)            Beneficial Interests in Restricted Global Notes to Restricted
Definitive Notes. If any holder of a beneficial interest in a
Restricted Global Note of a series proposes to exchange such beneficial
interest for a Restricted Definitive Note of such series or to transfer such
beneficial interest to a Person who takes delivery thereof in the form of a
Restricted Definitive Note of such series, then, upon receipt by the Registrar
of the following documentation:

(A)          if
the holder of such beneficial interest in a Restricted Global Note proposes to
exchange such beneficial interest for a Restricted Definitive Note, a
certificate from such holder in the form of Exhibit C hereto,
including the certifications in item (2)(a) thereof;

(B)           if
such beneficial interest is being transferred to a QIB in accordance with Rule 144A
a certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (1) thereof;

(C)           if
such beneficial interest is being transferred to a Non-U.S. Person in an
offshore transaction in accordance with Rule 903 or Rule 904 a
certificate to the effect set forth in Exhibit B hereto, including
the certifications in item (2) thereof;

(D)          if
such beneficial interest is being transferred pursuant to an exemption from the
registration requirements of the Securities Act in accordance with Rule 144
under the Securities Act, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (3)(a) thereof;

(E)           if
such beneficial interest is being transferred to an Institutional Accredited
Investor in reliance on an exemption from the registration requirements of the
Securities Act other than those listed in subparagraphs (B) through (D) above,
a certificate to the effect set forth in Exhibit B hereto,
including the certifications, certificates and Opinion of Counsel required by
item (3) thereof, if applicable;

(F)           if
such beneficial interest is being transferred to the Company or any of its
Subsidiaries, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (3)(b) thereof; or

 17

 

(G)           if
such beneficial interest is being transferred pursuant to an effective
registration statement under the Securities Act, a certificate to the effect
set forth in Exhibit B hereto, including the certifications in item
(3)(c) thereof,

the Trustee shall cause the aggregate principal amount
of the Global Note of such series to be reduced accordingly pursuant to Section 2.7(h) hereof,
and the Company shall execute and the Trustee shall authenticate and deliver to
the Person designated in the instructions a Definitive Note in the appropriate
principal amount. Any Definitive Note issued in exchange for a beneficial
interest in a Restricted Global Note pursuant to this Section 2.7(c) shall
be registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the
Registrar through instructions from the Depositary and the Participant or
Indirect Participant. The Trustee shall deliver such Definitive Notes to the
Persons in whose names such Notes are so registered. Any Definitive Note issued
in exchange for a beneficial interest in a Restricted Global Note pursuant to
this Section 2.7(c)(i) shall bear the Private Placement Legend
and shall be subject to all restrictions on transfer contained therein.

(ii)           Beneficial Interests in Restricted Global Notes to Unrestricted
Definitive Notes. A holder of a beneficial interest in a Restricted
Global Note of a series may exchange such beneficial interest for an
Unrestricted Definitive Note of such series or may transfer such beneficial
interest to a Person who takes delivery thereof in the form of an Unrestricted
Definitive Note of such series only if:

(A)          such
exchange or transfer is effected pursuant to the Registered Exchange Offer in
accordance with the Registration Rights Agreement and the holder of such
beneficial interest, in the case of an exchange, or the transferee, in the case
of a transfer, certifies in the applicable Letter of Transmittal that it is not
(1) a Broker-Dealer, (2) a Person participating in the distribution
of the Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144)
of the Company (or such other certifications as the Company determines to be
required under applicable law);

(B)           such
transfer is effected pursuant to the Shelf Registration Statement in accordance
with the Registration Rights Agreement;

(C)           such
transfer is effected by a Broker-Dealer pursuant to the Registered Exchange
Offer Registration Statement in accordance with the Registration Rights Agreement;
or

(D)          the
Registrar receives the following:

(1)           if
the holder of such beneficial interest in a Restricted Global Note proposes to
exchange such beneficial interest for an Unrestricted Definitive Note, a
certificate from such holder in the form of Exhibit C hereto,
including the certifications in item (1)(b) thereof; or

(2)           if
the holder of such beneficial interest in a Restricted Global Note proposes to
transfer such beneficial interest to a Person who shall take delivery thereof
in the form of an Unrestricted Definitive Note, a certificate from such holder
in the form of Exhibit B hereto, including the certifications in
item (4) thereof;

 18
 

 

and, in each such case set forth in this subparagraph (D), if the
Company so requests or if the Applicable Procedures so require, an Opinion of
Counsel in form reasonably acceptable to the Company to the effect that such
exchange or transfer is in compliance with the Securities Act and that the
restrictions on transfer contained herein and in the Private Placement Legend
are no longer required in order to maintain compliance with the Securities Act.

(iii)          Beneficial Interests in Unrestricted Global Notes to Unrestricted
Definitive Notes. If any holder of a beneficial interest in an
Unrestricted Global Note of a series proposes to exchange such beneficial
interest for a Definitive Note of such series or to transfer such beneficial
interest to a Person who takes delivery thereof in the form of a Definitive
Note of such series, then, upon satisfaction of the conditions set forth in Section 2.7(b)(ii) hereof,
the Trustee shall cause the aggregate principal amount of the Unrestricted
Global Note of such series to be reduced accordingly pursuant to Section 2.7(h) hereof,
and the Company shall execute and the Trustee shall authenticate and deliver to
the Person designated in the instructions a Definitive Note of such series in
the appropriate principal amount. Any Definitive Note issued in exchange for a
beneficial interest pursuant to this Section 2.7(c)(iii) shall
be registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest requests through
instructions to the Registrar from or through the Depositary and the
Participant or Indirect Participant. The Trustee shall deliver such Definitive
Notes to the Persons in whose names such Notes are so registered. Any
Definitive Note issued in exchange for a beneficial interest pursuant to this Section 2.7(c)(iii) shall
not bear the Private Placement Legend.

(d)          Transfer and Exchange of Definitive Notes for Beneficial
Interests in Global Notes.

(i)            Restricted Definitive Notes to Beneficial Interests in Restricted
Global Notes. If any Holder of a Restricted Definitive Note of a
series proposes to exchange such Note for a beneficial interest in a Restricted
Global Note of such series or to transfer such Restricted Definitive Note to a
Person who takes delivery thereof in the form of a beneficial interest in a
Restricted Global Note, then, upon receipt by the Registrar of the following
documentation:

(A)          if
the Holder of such Restricted Definitive Note proposes to exchange such Note
for a beneficial interest in a Restricted Global Note, a certificate from such
Holder in the form of Exhibit C hereto, including the certifications
in item (2)(b) thereof;

(B)           if
such Restricted Definitive Note is being transferred to a QIB in accordance
with Rule 144A, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (1) thereof;

 19
 

 

(C)           if
such Restricted Definitive Note is being transferred to a Non-U.S. Person in an
offshore transaction in accordance with Rule 903 or Rule 904, a
certificate to the effect set forth in Exhibit B hereto, including
the certifications in item (2) thereof;

(D)          if
such Restricted Definitive Note is being transferred pursuant to an exemption
from the registration requirements of the Securities Act in accordance with Rule 144,
a certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (3)(a) thereof;

(E)           if
such Restricted Definitive Note is being transferred to an Institutional
Accredited Investor in reliance on an exemption from the registration
requirements of the Securities Act other than those listed in subparagraphs (B) through
(D) above, a certificate to the effect set forth in Exhibit B
hereto, including the certifications, certificates and Opinion of Counsel
required by item (3) thereof, if applicable;

(F)           if
such Restricted Definitive Note is being transferred to the Company or any of
its Subsidiaries, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (3)(b) thereof; or

(G)           if
such Restricted Definitive Note is being transferred pursuant to an effective
registration statement under the Securities Act, a certificate to the effect
set forth in Exhibit B hereto, including the certifications in item
(3)(c) thereof,

the
Trustee will cancel the Restricted Definitive Note, increase or cause to be
increased the aggregate principal amount of, in the case of clause (A) above,
the appropriate Restricted Global Note of such series, in the case of clause (B) above,
the 144A Global Note of such series, in the case of clause (C) above, the
Regulation S Global Note of such series, in the case of clause (G) above,
the Unrestricted Global Note, and in all other cases, the IAI Global Note of
such series.

(ii)           Restricted Definitive Notes to Beneficial Interests in Unrestricted
Global Notes. A Holder of a Restricted Definitive Note of a series
may exchange such Note for a beneficial interest in an Unrestricted Global Note
of such series or transfer such Restricted Definitive Note to a Person who
takes delivery thereof in the form of a beneficial interest in an Unrestricted
Global Note of such series only if:

(A)          such
exchange or transfer is effected pursuant to the Registered Exchange Offer in
accordance with the Registration Rights Agreement and the Holder, in the case
of an exchange, or the transferee, in the case of a transfer, certifies in the
applicable Letter of Transmittal that it is not (i) a Broker-Dealer, (ii) a
Person participating in the distribution of the Exchange Notes or (iii) a
Person who is an affiliate (as defined in Rule 144) of the Company;

(B)           such
transfer is effected pursuant to the Shelf Registration Statement in accordance
with the Registration Rights Agreement;

 20
 

 

(C)           such
transfer is effected by a Broker-Dealer pursuant to the Registered Exchange
Offer Registration Statement in accordance with the Registration Rights
Agreement; or

(D)          the
Registrar receives the following:

(1)           if
the Holder of such Definitive Notes proposes to exchange such Notes for a
beneficial interest in the Unrestricted Global Note of such series, a
certificate from such Holder in the form of Exhibit C hereto,
including the certifications in item (1)(c) thereof; or

(2)           if
the Holder of such Definitive Notes proposes to transfer such Notes to a Person
who shall take delivery thereof in the form of a beneficial interest in the
Unrestricted Global Note of such series, a certificate from such Holder in the
form of Exhibit B hereto, including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the
Company so requests or if the Applicable Procedures so require, an Opinion of
Counsel in form reasonably acceptable to the Company to the effect that such
exchange or transfer is in compliance with the Securities Act and that the
restrictions on transfer contained herein and in the Private Placement Legend
are no longer required in order to maintain compliance with the Securities Act.

Upon satisfaction of the conditions of any of the
subparagraphs in this Section 2.7(d)(ii), the Trustee shall cancel
the Definitive Note and increase or cause to be increased the aggregate
principal amount of the Unrestricted Global Note of such series.

(iii)          Unrestricted Definitive Notes to Beneficial Interests in Unrestricted
Global Notes. A Holder of an Unrestricted Definitive Note may
exchange such Note for a beneficial interest in an Unrestricted Global Note of
such series or transfer such Definitive Note to a Person who takes delivery
thereof in the form of a beneficial interest in an Unrestricted Global Note of
such series at any time. Upon receipt of a request for such an exchange or
transfer, the Trustee shall cancel the applicable Unrestricted Definitive Note
and increase or cause to be increased the aggregate principal amount of one of
the Unrestricted Global Notes of such series.

If any such exchange or transfer from a Definitive
Note of a series to a beneficial interest is effected pursuant to subparagraphs
(ii)(B), (ii)(D) or (iii) above at a time when an Unrestricted Global
Note of such series has not yet been issued, the Company shall issue and, upon
receipt of an Authentication Order in accordance with Section 2.3
hereof, the Trustee shall authenticate one or more Unrestricted Global Notes of
such series in an aggregate principal amount equal to the principal amount of
Definitive Notes so transferred.

 21
 

 

(e)           Transfer and Exchange of Definitive Notes for Definitive
Notes. Upon
request by a Holder of Definitive Notes and such Holder’s compliance with the
provisions of this Section 2.7(e), the Registrar shall register the
transfer or exchange of Definitive Notes. Prior to such registration of
transfer or exchange, the requesting Holder shall present or surrender to the
Registrar the Definitive Notes duly endorsed or accompanied by a written
instruction of transfer in form satisfactory to the Registrar duly executed by
such Holder or by its attorney, duly authorized in writing. In addition, the
requesting Holder shall provide any additional certifications, documents and
information, as applicable, required pursuant to the following provisions of
this Section 2.7(e).

(i)            Restricted Definitive Notes to Restricted Definitive Notes. Any
Restricted Definitive Note of a series may be transferred to and registered in
the name of Persons who take delivery thereof in the form of a Restricted
Definitive Note of such series if the Registrar receives the following:

(A)          if
the transfer will be made pursuant to Rule 144A, then the transferor must
deliver a certificate in the form of Exhibit B hereto, including
the certifications in item (1) thereof;

(B)           if
the transfer will be made pursuant to Rule 903 or Rule 904, then the
transferor must deliver a certificate in the form of Exhibit B
hereto, including the certifications in item (2) thereof; and

(C)           if
the transfer will be made pursuant to any other exemption from the registration
requirements of the Securities Act, then the transferor must deliver a
certificate in the form of Exhibit B hereto, including the
certifications, certificates and Opinion of Counsel required by item (3) thereof,
if applicable.

(ii)           Restricted Definitive Notes to Unrestricted Definitive Notes.
Any Restricted Definitive Note of a series may be exchanged by the Holder
thereof for an Unrestricted Definitive Note of such series or transferred to a
Person or Persons who take delivery thereof in the form of an Unrestricted
Definitive Note if:

(A)          such
exchange or transfer is effected pursuant to the Registered Exchange Offer in
accordance with the Registration Rights Agreement and the Holder, in the case
of an exchange, or the transferee, in the case of a transfer, certifies in the
applicable Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a
Person participating in the distribution of the Exchange Notes or (3) a
Person who is an affiliate (as defined in Rule 144) of the Company (or
such other certification as the Company determines to be required under
applicable law);

(B)           any
such transfer is effected pursuant to the Shelf Registration Statement in
accordance with the Registration Rights Agreement;

(C)           any
such transfer is effected by a Broker-Dealer pursuant to the Registered
Exchange Offer Registration Statement in accordance with the Registration
Rights Agreement; or

(D)          the
Registrar receives the following:

(1)           if
the Holder of such Restricted Definitive Notes proposes to exchange such Note
for an Unrestricted Definitive Note, a certificate from such Holder in the form
of Exhibit C hereto, including the certifications in item (1)(d) thereof;
or

 22
 

 

(2)           if
the Holder of such Restricted Definitive Note proposes to transfer such Note to
a Person who shall take delivery thereof in the form of an Unrestricted
Definitive Note, a certificate from such Holder in the form of Exhibit B
hereto, including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the
Company so requests, an Opinion of Counsel in form reasonably acceptable to the
Company to the effect that such exchange or transfer is in compliance with the
Securities Act and that the restrictions on transfer contained herein and in
the Private Placement Legend are no longer required in order to maintain
compliance with the Securities Act.

(iii)          Unrestricted Definitive Notes to Unrestricted Definitive Notes.
A Holder of Unrestricted Definitive Notes may transfer such Notes to a Person
who takes delivery thereof in the form of an Unrestricted Definitive Note. Upon
receipt of a request to register such a transfer, the Registrar shall register
the Unrestricted Definitive Notes pursuant to the instructions from the Holder
thereof.

(f)            Exchange Offer. Upon the occurrence of the Registered Exchange Offer
in accordance with a Registration Rights Agreement, the Company shall issue
and, upon receipt of an Authentication Order in accordance with Section 2.3
hereof, the Trustee shall authenticate:

(i)            one
or more Unrestricted Global Notes in an aggregate principal amount equal to the
principal amount of the beneficial interests in the Restricted Global Notes
tendered for acceptance by Persons that certify in the applicable Letters of
Transmittal that (x) they are not Broker-Dealers, (y) they are not
participating in a distribution of the Exchange Notes and (z) they are not
affiliates (as defined in Rule 144) of the Company (or such other
certifications as the Company determines to be required under applicable law),
and accepted for exchange in the Registered Exchange Offer; and

(ii)           Unrestricted
Definitive Notes in an aggregate principal amount equal to the principal amount
of the Restricted Definitive Notes accepted for exchange in the Registered
Exchange Offer by Persons that certify in the applicable Letters of Transmittal
that (A) they are not Broker-Dealers, (B) they are not participating
in a distribution of the Exchange Notes and (C) they are not affiliates
(as defined in Rule 144) of the Company.

Concurrently with the issuance of such Notes, the
Trustee will cause the aggregate principal amount of the applicable Restricted
Global Notes to be reduced accordingly, and the Company will execute and the
Trustee will authenticate and deliver to the Persons designated by the Holders
of Definitive Notes so accepted Unrestricted Definitive Notes in the
appropriate principal amount.

(g)          Legends. The following legends shall appear on the face of
all Global Notes and Definitive Notes issued under this Indenture unless
specifically stated otherwise in the applicable provisions of this Indenture.

 23
 

 

(i)           Private Placement Legend.

(A)          Except
as permitted by subparagraph (B) below, each Global Note and each
Definitive Note (and all Notes issued in exchange therefor or substitution
thereof) shall bear a legend in substantially the following form:

“THIS SECURITY HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD,
ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE
HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR
WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH
SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS
IN THE CASE OF RULE 144A NOTES:
TWO YEARS AND IN THE CASE OF REGULATION S NOTES:
40 DAYS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON
WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS
SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE COMPANY, (B) PURSUANT
TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY
BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT
OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE
SECURITIES ACT, (E) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE
MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT
THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH
AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL
AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A
VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION
OF THE SECURITIES ACT, OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S
AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO
CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM.
THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE
RESTRICTION TERMINATION DATE. [AND, IN THE CASE OF REGULATION S NOTES: BY ITS
ACQUISITION HEREOF, THE HOLDER HEREOF REPRESENTS THAT IT IS NOT A U.S. PERSON
NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S. PERSON AND IS ACQUIRING THIS
SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE
SECURITIES ACT.”

 24
 

 

(B)           Notwithstanding
the foregoing, any Global Note or Definitive Note issued pursuant to
subparagraphs (b)(iv), (c)(ii), (c)(iii), (d)(ii), (d)(iii), (e)(ii), (e)(iii) or
(f) of this Section 2.7 (and all Notes issued in exchange
therefor or substitution thereof) shall not bear the Private Placement Legend.

(ii)           Global Note Legend. Each Global Note shall bear a legend in
substantially the following form:

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS
DEFINED IN THE INDENTURE GOVERNING THIS NOTE) 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) THE TRUSTEE MAY MAKE SUCH
NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.8 OF
THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT
NOT IN PART PURSUANT TO SECTION 2.7(a) OF THE INDENTURE, (III) THIS
GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11
OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A
SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.”

“UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR
NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A
WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE
DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW
YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

(iii) IAI Note Legend. Each Definitive Note held by an
Institutional Accredited Investor shall bear a legend in substantially the
following form:

“IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL
DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER
INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT
THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.”

 25

 

 

(iv) ERISA Legend.
All Notes will bear a legend in substantially the following form:

“THE HOLDER OF THIS NOTE REPRESENTS THAT EITHER (I) NO
PORTION OF THE ASSETS USED BY THE HOLDER TO ACQUIRE AND HOLD THE NOTE
CONSTITUTES ASSETS OF ANY EMPLOYEE BENEFIT PLAN SUBJECT TO SECTION 406 OF
THE UNITED STATES EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (‘‘ERISA’’),
ANY PLAN, ACCOUNT OR OTHER ARRANGEMENT SUBJECT TO SECTION 4975 OF THE
UNITED STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE ‘‘CODE’’), OR
PROVISIONS UNDER ANY FEDERAL, STATE, LOCAL, NON-UNITED STATES OR OTHER LAWS OR
REGULATIONS THAT ARE SIMILAR TO SUCH PROVISIONS OF ERISA OR THE CODE
(COLLECTIVELY, ‘‘SIMILAR LAWS’’), OR ANY ENTITY WHOSE UNDERLYING ASSETS ARE
CONSIDERED TO INCLUDE ‘‘PLAN ASSETS’’ OF ANY SUCH PLAN, ACCOUNT OR ARRANGEMENT
OR (II) THE PURCHASE AND HOLDING OF THE NOTE (AND THE EXCHANGE OF THE NOTE
FOR EXCHANGE NOTES) BY THE HOLDER WILL NOT CONSTITUTE A NON-EXEMPT PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR
A VIOLATION UNDER ANY APPLICABLE SIMILAR LAW.”

(h)          Cancellation and/or Adjustment of Global Notes. At such time as all beneficial
interests in a particular Global Note have been exchanged for Definitive Notes
or a particular Global Note has been redeemed, repurchased or canceled in whole
and not in part, each such Global Note shall be returned to or retained and
canceled by the Trustee in accordance with Section 2.11 hereof. At
any time prior to such cancellation, if any beneficial interest in a Global
Note is exchanged for or transferred to a Person who will take delivery thereof
in the form of a beneficial interest in another Global Note or for Definitive
Notes, the principal amount of Notes represented by such Global Note shall be reduced
accordingly and an endorsement shall be made on such Global Note by the Trustee
or by the Depositary at the direction of the Trustee to reflect such reduction;
and if the beneficial interest is being exchanged for or transferred to a
Person who will take delivery thereof in the form of a beneficial interest in
another Global Note, such other Global Note shall be increased accordingly and
an endorsement shall be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such increase.

(i)           General Provisions Relating to Transfers and Exchanges.

(i)            To
permit registrations of transfers and exchanges, the Company shall execute and
the Trustee shall authenticate Global Notes and Definitive Notes upon receipt
of an Authentication Order in accordance with Section 2.3 hereof or
at the Registrar’s written request.

 26
 

 

(ii)           No
service charge shall be made to a holder of a beneficial interest in a Global
Note or to a Holder of a Definitive Note for any registration of transfer or
exchange, 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 2.10, 7.5 and 10.1
hereof).

(iii)          The
Registrar shall not be required to register the transfer of or exchange any
Note selected for redemption in whole or in part, except the unredeemed portion
of any Note being redeemed in part.

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

(v)           Neither
the Registrar nor the Company will be required:

(A)          to
issue, to register the transfer of or to exchange any Notes during a period
beginning at the opening of business 15 days before the day of any selection of
Notes for redemption under Article 10 hereof and ending at the
close of business on the day of selection;

(B)           to
register the transfer of or to exchange any Note so selected for redemption in
whole or in part, except the unredeemed portion of any Note being redeemed in
part; or

(C)           to
register the transfer of or to exchange a Note between a record date and the
next succeeding Interest Payment Date.

(vi)          Prior
to due presentment for the registration of a transfer of any Note, the Trustee,
any Agent and the Company may deem and treat the Person in whose name any Note
is registered as the absolute owner of such Note for the purpose of receiving
payment of principal of and interest on such Notes and for all other purposes,
and none of the Trustee, any Agent or the Company shall be affected by notice
to the contrary.

(vii)         The
Trustee shall authenticate Global Notes and Definitive Notes in accordance with
the provisions of Section 2.3 hereof.

(viii)        All certifications, certificates and Opinions of Counsel
required to be submitted to the Registrar pursuant to this Section 2.7
to effect a registration of transfer or exchange may be submitted by facsimile
but originals of such opinions shall follow by mail.

 27
 

 

Section 2.8                                   Replacement
Notes.

If any mutilated Note is surrendered to the Trustee or
the Company and the Trustee receives evidence to its satisfaction of the
destruction, loss or theft of any Note, the Company shall issue and the
Trustee, upon receipt of an Authentication Order, shall authenticate a
replacement Note if the Trustee’s requirements are met. If required by the
Trustee or the Company, an indemnity bond must be supplied by the Holder that
is sufficient in the judgment of the Trustee and the Company to protect the
Company, the Trustee, any Agent and any authenticating agent from any loss that
any of them may suffer if a Note is replaced. The Company may charge for its
expenses in replacing a Note.

Every replacement Note is an additional obligation of
the Company and shall be entitled to all of the benefits of this Indenture
equally and proportionately with all other Notes duly issued hereunder.

Section 2.9                                   Outstanding Notes.

The Notes outstanding at any time are all the Notes
authenticated by the Trustee except for those canceled by it, those delivered
to it for cancellation, those reductions in the interest in a Global Note
effected by the Trustee in accordance with the provisions hereof, and those
described in this Section 2.9 as not outstanding. Except as set
forth in Section 6.4 hereof, a Note does not cease to be
outstanding because the Company or an Affiliate of the Company holds the Note.

If a Note is replaced pursuant to Section 2.8
hereof it ceases to be outstanding unless the Trustee receives proof
satisfactory to it that the replaced Note is held by a bona fide purchaser.

If the principal amount of any Note is considered paid
under Section 3.1 hereof, it ceases to be outstanding and interest
on it ceases to accrue.

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

Section 2.10                            Temporary Notes.

Until certificates representing Notes are ready for
delivery, the Company may prepare and the Trustee, upon receipt of an
Authentication Order, shall authenticate temporary Notes. Temporary Notes shall
be substantially in the form of certificated Notes but may have variations that
the Company considers appropriate for temporary Notes and as shall be
reasonably acceptable to the Trustee. Without unreasonable delay, the Company
shall prepare and the Trustee shall authenticate permanent Notes in exchange
for temporary Notes.

Holders of temporary Notes shall be entitled to all of
the benefits of this Indenture.

Section 2.11                            Cancellation.

The Company at any time may deliver Notes to the Trustee
for cancellation. The Registrar and Paying Agent shall forward to the Trustee
any Notes surrendered to them for registration of transfer, exchange or payment.
The Trustee and no one else shall cancel all Notes surrendered for registration
of transfer, exchange, payment, replacement or cancellation and shall dispose
of the canceled Notes pursuant to its customary practices and procedures in
effect from time to time (subject to the record retention requirement of the
Exchange Act). Certification of the destruction of all canceled Notes shall be
delivered to the Company. The Company may not issue new Notes to replace Notes
that it has paid or that have been delivered to the Trustee for cancellation,
except as otherwise provided for herein.

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Section 2.12                            Defaulted
Interest.

If the Company defaults in a payment of interest on
the Notes, it shall pay the defaulted interest in any lawful manner plus, to
the extent lawful, interest payable on the defaulted interest, to the Persons
who are Holders on a subsequent special record date, in each case at the rate
provided in the Notes and in Section 3.1 hereof. The Company shall
notify the Trustee in writing of the amount of defaulted interest proposed to
be paid on each Note and the date of the proposed payment. The Company shall
fix or cause to be fixed each such special record date and payment date; provided that no such special record date shall be less than
10 days prior to the related payment date for such defaulted interest. 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 a notice that states the
special record date, the related payment date and the amount of such interest
to be paid.

ARTICLE 3.

COVENANTS OF THE COMPANY AND THE
TRUSTEE

Section 3.1                                   Payment of Principal and Interest;
Payment of Liquidated Damages.

The Company shall duly and punctually pay or cause to
be paid the principal of, and premium, if any, and interest, if any, on, each
of the Notes at the place or places, at the respective times and in the manner
provided herein and in the applicable Series Supplemental Indenture and
the Notes. The Company will pay all Liquidated Damages, if any, in the same
manner on the dates set forth in the applicable Series Supplemental
Indenture and otherwise pursuant to and in the amounts set forth in the
applicable Registration Rights Agreement. Payment of principal of, and premium
and interest and Liquidated Damages, if any, on the Notes shall be paid by
mailing a check to or upon the written order of the registered Holders of Notes
entitled thereto at their last address as it appears on the Notes Register or,
upon written application to the Trustee (which shall be received by the Trustee
prior to the record date) by a Holder of $1,000,000 or more in aggregate
principal amount of Notes, by wire transfer of immediately available funds to
an account maintained by such Holder with a bank or other financial institution;
provided, however that (subject to the provisions of Section 2.8
hereof) payment of principal of, and premium, if any, on any Note may be
conditioned upon presentation for payment of the certificate representing such
Note.

The Company shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal at the rate equal to the rate set forth in the applicable Series Supplemental
Indenture and the Notes, and it shall pay interest (including post-petition interest
in any proceeding under any Bankruptcy Law) on overdue installments of interest
and Liquidated Damages, if any (without regard to any applicable grace period)
from time to time at the same rate to the extent lawful.

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Section 3.2                                   Appointment
to Fill Vacancy in Office of Trustee.

The Company, whenever necessary to avoid or fill a
vacancy in the office of Trustee, shall appoint, in the manner provided in Section 5.9
hereof, a Trustee, so that there shall at all times be a Trustee hereunder.

Section 3.3                                   Certificate to Trustee, Notices of
Defaults.

The Company shall furnish to the Trustee (i) on
or before March 31 in each year (beginning with March 31, 2007) a
brief certificate from the principal executive, financial or accounting officer
of the Company as to his or her knowledge of the Company’s compliance with all
covenants under this Indenture (such compliance to be determined without regard
to any period of grace or requirement of notice provided under this Indenture)
and (ii) upon becoming aware of any Default or Event of Default, a
statement specifying such Default or Event of Default. Within 30 days of its
becoming aware of any Default or Event of Default, the Trustee shall provide
the Holders with a notice specifying such Default or Event of Default.

Section 3.4                                   Reports
by the Company.

(a)          The Company shall deliver to the Trustee and provide Noteholders,
within 15 days after it files them with the SEC, copies of its annual reports
and of the information, documents and other reports that the Company is
required to file with the SEC pursuant to Section 13 or 15(d) of
the Exchange Act, and shall deliver to the Trustee copies of any other report
that the Company files with the SEC. Delivery of such reports, information and
documents to the Trustee is for informational purposes only and the Trustee’s
receipt of such shall not constitute constructive notice of any information
contained therein, including the Company’s compliance with any of its covenants
contained hereunder.

(b)          The Company shall, for so long as any Notes remain outstanding, if
at any time it is not required to file with the SEC the reports required by
clause (a) of this Section 3.4, furnish to the Holders of
Notes and to securities analysts and prospective investors, upon their request,
the information required to be delivered pursuant to Rule 144A(d)(4) under
the Securities Act.

Section 3.5                                   Restrictions on Liens.

The Company shall not pledge, mortgage or hypothecate,
or permit to exist, any mortgage, pledge or other lien upon any property at any
time directly owned by the Company to secure any indebtedness for money
borrowed that is incurred, issued, assumed or guaranteed by the Company (“Indebtedness”),
without providing for the Notes to be equally and ratably secured with any and
all such Indebtedness and with any other Indebtedness similarly entitled to be
equally and ratably secured; provided, however, that this
restriction shall not apply to or prevent the creation or existence of (i) liens
existing on the date of this Indenture, (ii) purchase money liens not to
exceed the cost or value of the purchased property, (iii) other liens not
to exceed 10% of Consolidated Net Tangible Assets, and (iv) liens granted
in connection with extending, renewing, replacing or refinancing, in whole or
in part, the Indebtedness (including, without limitation, increasing the
principal amount of such Indebtedness) secured by liens described in the
foregoing clauses (i) through (iii).

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In the event that the Company proposes to pledge,
mortgage or hypothecate any property at any time directly owned by it to secure
any Indebtedness, other than as permitted by clauses (i) through (iv) of
the previous paragraph, the Company shall give prior written notice thereof to
the Trustee, who shall give notice to the Holders, and the Company shall, prior
to or simultaneously with such pledge, mortgage or hypothecation, effectively
secure all the Notes equally and ratably with such Indebtedness.

Section 3.6                                   Maintenance of Corporate Existence.

Subject to the provisions of Article 8
hereof, the Company shall at all times preserve and maintain in full force and
effect (i) its corporate existence and good standing under the laws of the
State of Delaware and (ii) its qualification to do business in each other
jurisdiction in which the character of its properties or the nature of its
activities make such qualification necessary, except where the failure to be so
qualified would not reasonably be expected to result in a Material Adverse
Effect.

Section 3.7                                   Taxes.

The Company shall, prior to the time penalties attach
thereto, (i) file, or cause to be filed, all tax and information returns
that are required to be, or are required to have been, filed by it in any
jurisdiction, and (ii) pay or cause to be paid all taxes shown to be, or
to have been, due and payable on such returns and all other taxes lawfully
imposed and payable by it, except to the extent there is a Good Faith Contest
thereof by the Company.

ARTICLE 4.

EVENTS OF DEFAULT AND REMEDIES OF
THE TRUSTEE AND NOTEHOLDERS

Section 4.1                                   Event of Default Defined;
Acceleration of Maturity; Waiver of Default.

If one or more of the following Events of Default
(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 or otherwise) shall have occurred and
be continuing:

(a)          default in the payment of all or any part of the principal of, or
premium, if any, on, any of the Notes as and when the same shall become due and
payable either at maturity, upon any redemption or required repurchase, by
declaration of acceleration or otherwise; or

(b)          default in the payment of any installment of interest upon any of
the Notes as and when the same shall become due and payable, and continuance of
such default for a period of 30 days; or

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(c)           an event of default, as defined in any instrument of
the Company under which there may be issued, or by which there may be secured
or evidenced, any Indebtedness of the Company that has resulted in the
acceleration of such Indebtedness, or any default occurring in payment of any
such Indebtedness at final maturity (and after the expiration of any applicable
grace periods), other than such Indebtedness (i) which is payable solely
out of the property or assets of a partnership, joint venture or similar entity
of which the Company or any of its Subsidiaries or Affiliates is a participant,
or which is secured by a lien on the property or assets owned or held by such
entity, without further recourse to or liability of the Company, or (ii) the
principal of, and interest on, which, when added to the principal of and
interest on all other such Indebtedness (exclusive of Indebtedness under clause
(i) above), does not exceed $20,000,000; or

(d)          failure on the part of the Company duly to observe or perform any
other of the covenants or agreements on the part of the Company in the Notes or
in this Indenture and such failure continues for a period of 90 days after the
date on which written notice specifying such failure, stating that such notice
is a “Notice of Default” hereunder and demanding that the Company remedy the
same, shall have been given to the Company by the Trustee, or to the Company
and the Trustee by the Holders of at least 25% in aggregate principal amount of
the Notes at the time Outstanding; or

(e)           one or more final, nonappealable judgments, decrees or
orders of any court, tribunal, arbitrator, administrative or other governmental
body or similar entity for the payment of money shall be rendered against the
Company or any of its properties in an aggregate amount in excess of
$20,000,000 (excluding the amount thereof covered by insurance) and such
judgment, decree or order shall remain unvacated, undischarged and unstayed for
more than 90 days, except while being contested in good faith by appropriate
proceedings; or

(f)            a court having jurisdiction in the premises shall
enter a decree or order for relief in respect of the Company in an involuntary
case or proceeding under any applicable bankruptcy, insolvency, reorganization
or other similar law now or hereafter in effect, or a decree or order adjudging
the Company a bankrupt or insolvent, or approving as properly filed a petition
seeking reorganization, arrangement, adjustment, or composition of or in
respect of the Company under any applicable federal or state law, or appointing
a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official of the Company or for any substantial part of its property or ordering
the winding up or liquidation of its affairs, shall have been entered, and such
decree or order shall remain unstayed and in effect for a period of 90
consecutive days; or

(g)          the Company shall commence a voluntary case or proceeding under any
applicable federal or state bankruptcy, insolvency, reorganization or other
similar law now or hereafter in effect or of any other case or proceeding to be
adjudicated a bankrupt or insolvent, or consent to the entry of a decree or
order for relief in an involuntary case or proceeding under any such law, or to
the commencement of any bankruptcy or insolvency case or proceeding against the
Company, or the filing by the Company of a petition or answer or consent seeking
reorganization or relief under any such applicable federal or state law, or the
consent by the Company to the filing of such petition or to the appointment of
or the taking possession by a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of the Company or of any
substantial part of its property, or the making by the Company of an assignment
for the benefit of creditors, or the taking of action by the Company in
furtherance of any such action;

 32
 

 

then
and in each and every such case (other than an Event of Default with respect to
the Company specified in Section 4.1(f) or 4.1(g) hereof),
unless the principal amount of all of the Notes shall have already become due
and payable, either the Trustee or the Holders of not less than 25% in
aggregate principal amount of the Notes then Outstanding hereunder, by notice
in writing to the Company (and to the Trustee if given by Noteholders), may
declare the entire principal amount of all the Notes and the interest accrued thereon
to be due and payable immediately, and upon any such declaration the same shall
become immediately due and payable. This provision, however, is subject to the
condition that if, at any time after the principal of the Notes shall have been
so declared due and payable, and before any judgment or decree for the payment
of the moneys due shall have been obtained or entered as hereinafter provided,
the Company shall pay or shall deposit with the Trustee a sum sufficient to pay
all matured installments of interest upon all the Notes and the principal and
premium, if any, of any and all Notes that shall have become due otherwise than
by acceleration (with interest upon such principal and premium, if any, and, to
the extent that payment of such interest is enforceable under applicable law,
on overdue installments of interest, at the rate of interest specified in the
Notes, to the date of such payment or deposit) and such amount as shall be
sufficient to cover reasonable compensation to the Trustee and each predecessor
Trustee, their respective agents, attorneys and counsel, and all other
reasonable expenses and liabilities incurred and all reasonable advances made
by the Trustee and each predecessor Trustee except as a result of gross
negligence or bad faith, and if any and all Events of Default under this
Indenture, other than the non-payment of the principal that shall have become
due by acceleration, shall have been cured, waived or otherwise remedied as
provided herein, then and in every such case the Holders of a majority in
aggregate principal amount of the Notes then Outstanding, by written notice to
the Company and to the Trustee, may waive all defaults (except, unless
theretofore cured, a default in payment of principal of, or premium, if any, or
interest on, the Notes) and rescind and annul such declaration and its
consequences, but no such waiver or rescission and annulment shall extend to or
shall affect any subsequent default or shall impair any right consequent
thereon.

If an Event of Default specified in Section 4.1(f) or
4.1(g) hereof occurs with respect to the Company, the principal of
and accrued interest on the Notes shall become and be immediately due and
payable without any declaration or other act on the part of the Trustee or any
Noteholder.

Section 4.2                                   Collection of Indebtedness by
Trustee; Trustee May Prove Debt.

The Company covenants that (a) in case default
shall be made in the payment of any installment of interest on any of the Notes
when such interest shall have become due and payable, and such default shall
have continued for a period of 30 days or (b) in case default shall be
made in the payment of all or any part of the principal of, or premium, if any,
on, any of the Notes when the same shall have become due and payable, whether
upon maturity or upon any redemption or by declaration or acceleration or
otherwise, then upon demand of the Trustee, the Company shall pay to the
Trustee for the benefit of the Holders of the Notes the whole amount that then
shall have become due and payable on all such Notes of principal, premium and
interest, as the case may be (with interest to the date of such payment upon
the overdue principal or premium and, to the extent that payment of such
interest is enforceable under applicable law, on overdue installments of
interest at the rate of interest specified in the Notes), and in addition
thereto, such further amount as shall be sufficient to cover the costs and
expenses of collection, including reasonable compensation to the Trustee and
each predecessor Trustee, their respective agents, attorneys and counsel, and
any reasonable expenses and liabilities incurred, and all reasonable advances
made, by the Trustee and each predecessor Trustee, except as a result of its
gross negligence or bad faith.

 33
 

 

Until such demand is made by the Trustee, the Company
may pay the principal of and premium and interest on the Notes to the
registered Holders, whether or not the Notes are overdue.

In case the Company shall fail forthwith to pay such
amounts upon such demand, the Trustee, in its own name and as trustee of an
express trust, shall be entitled and empowered to institute any action or
proceeding at law or in equity for the collection of the sums so due and
unpaid, and may prosecute any such action or proceedings to judgment or final
decree, and may enforce any such judgment or final decree against the Company
or other obligor upon the Notes and collect in the manner provided by law out
of the property of the Company or other obligor upon the Notes, wherever
situated, the moneys adjudged or decreed to be payable.

In case there shall be pending proceedings relative to
the Company or any other obligor upon the Notes under Title 11 of the United
States Code or any other applicable federal or state bankruptcy, insolvency or
other similar law, or in case a receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, custodian, sequestrator or similar official shall
have been appointed for or taken possession of the Company or its property or
such other obligor, or in case of any other comparable judicial proceedings
relative to the Company or other obligor upon the Notes, or to the creditors or
property of the Company or such other obligor, the Trustee, irrespective of
whether the principal of the Notes shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective or whether the
Trustee shall have made any demand pursuant to the provisions of this Section 4.2,
shall be entitled and empowered, by intervention in such proceedings or
otherwise:

(a)          to file and prove a claim or claims for the whole amount of
principal, premium and interest owing and unpaid in respect of the Notes, and
to file such other papers or documents as may be necessary or advisable in
order to have the claims of the Trustee (including any claim for reasonable
compensation to the Trustee and each predecessor Trustee, and their respective
agents, attorneys and counsel, and for reimbursement of all reasonable expenses
and liabilities incurred, and all reasonable advances made, by the Trustee and
each predecessor Trustee, except as a result of gross negligence or bad faith)
and of the Noteholders, allowed in any judicial proceedings relative to the
Company or other obligor upon the Notes, or to the creditors or property of the
Company or such other obligor;

(b)          unless prohibited by applicable law and regulations, to vote on
behalf of the Holders of the Notes in any election of a trustee or a standby
trustee in arrangement, reorganization, liquidation or other bankruptcy or
insolvency proceedings or person performing similar functions in comparable
proceedings; and

 34
 

 

(c)           to collect and receive any moneys or other property
payable or deliverable on any such claims, and to distribute all amounts
received with respect to the claims of the Noteholders and of the Trustee on
their behalf; and any trustee, receiver, or liquidator, custodian or other
similar official is hereby authorized by each of the Noteholders to make
payments to the Trustee, and, in the event that the Trustee shall consent to
the making of payments directly to the Noteholders, to pay to the Trustee such
amounts as shall be sufficient to cover reasonable compensation to the Trustee,
each predecessor Trustee and their respective agents, attorneys and counsel, and
all other reasonable expenses and liabilities incurred, and all reasonable
advances made, by the Trustee and each predecessor Trustee except as a result
of negligence or bad faith.

Nothing herein contained shall be deemed to authorize
the Trustee to authorize or consent to or vote for or accept or adopt on behalf
of any Noteholders any plan or reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Noteholder in any
such proceeding except, as aforesaid, to vote for the election of a trustee in
bankruptcy or similar person.

All rights of action and of asserting claims under
this Indenture, or under any of the Notes, may be enforced by the Trustee
without the possession of any of the Notes or the production thereof at any
trial or other proceeding relative thereto, and any such action or proceeding
instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment, subject to the payment of the
expenses, disbursements and compensation of the Trustee, each predecessor
Trustee and their respective agents and attorneys, shall be for the ratable
benefit of the Holders of the Notes.

In any proceedings brought by the Trustee (and also
any proceedings involving the interpretation of any provision of this Indenture
to which the Trustee shall be a party), the Trustee shall be held to represent
all the Holders of the Notes, and it shall not be necessary to make any Holders
of the Notes parties to any such proceedings.

Section 4.3                                   Application of Proceeds.

Any moneys collected by the Trustee pursuant to this Article shall
be applied in the following order at the date or dates fixed by the Trustee
and, in case of the distribution of such moneys on account of principal or
interest, upon presentation of the several Notes and stamping (or otherwise
noting) thereon the payment, or issuing Notes in reduced principal amounts in
exchange for the presented Notes if only partially paid, or upon surrender
thereof if fully paid:

FIRST: To the payment of costs and expenses, including
reasonable compensation to the Trustee and each predecessor Trustee and their
respective agents and attorneys and of all reasonable expenses and liabilities
incurred, and all reasonable advances made, by the Trustee and each predecessor
Trustee, except as a result of gross negligence or bad faith, and all other
amounts due under Section 5.6 hereof;

SECOND: In case the principal and premium, if any, of
the Notes shall not have become and be then due and payable, to the payment of
interest in default in the order of the maturity of the installments of such
interest, with interest (to the extent that such interest has been collected by
the Trustee) upon the overdue installments of interest payable at the rate of
interest specified in the Notes, such payments to be made ratably to the
persons entitled thereto, without discrimination or preference;

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THIRD: In case the principal of the Notes shall have
become and shall be then due and payable, to the payment of the whole amount
then owing and unpaid upon all the Notes for principal, premium and interest,
with interest upon the overdue principal and premium, if any, and (to the
extent that such interest has been collected by the Trustee) upon overdue
installments of interest payable at the rate of interest specified in the
Notes, and in case such moneys shall be insufficient to pay in full the whole
amount so due and unpaid upon the Notes, then to the payment of such principal,
premium and interest, without preference or priority of principal or premium
over interest, or of interest over principal or premium, or of any installment
of interest over any other installment of interest, or of any Note over any
other Note, ratably to the aggregate of such principal, premium and accrued and
unpaid interest; and

FOURTH: To the payment of the remainder, if any, to
the Company or any other Person lawfully entitled thereto.

The Trustee may fix a record date and payment date for
any payment to Noteholders pursuant to this Section 4.3.

Section 4.4                                   Suits for Enforcement.

In case an Event of Default has occurred, has not been
waived and is continuing, the Trustee may 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 at law or in equity or 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.

Section 4.5                                   Restoration of Rights on Abandonment
of Proceedings.

In case the Trustee shall have proceeded to enforce
any right under this Indenture and such proceedings shall have been
discontinued or abandoned for any reason, or shall have been determined adversely
to the Trustee, then and in every such case the Company and the Trustee shall
be restored respectively to their former positions and rights hereunder, and
all rights, remedies and powers of the Company, the Trustee and the Noteholders
shall continue as though no such proceedings had been taken.

 36
 

 

Section 4.6                                   Limitations
of Suits by Noteholders.

Subject to Section 4.10, no Holder of any
Note shall have any right by virtue or by availing of any provision of this
Indenture to institute any action or proceeding at law or in equity or in
bankruptcy or otherwise upon or under or with respect to this Indenture, or for
the appointment of a trustee, receiver, liquidator, custodian or other similar
official or for any other remedy hereunder, unless (i) such Holder
previously has given to a Responsible Officer of the Trustee written notice of
default and of the continuance hereof, as hereinbefore provided, (ii) the
Holders of not less than 25% in aggregate principal amount of the Notes then
Outstanding have made written request upon the Trustee to institute such action
or proceeding in its own name as Trustee hereunder and have offered to the
Trustee such reasonable security and indemnity as it may require against the
costs, expenses and liabilities to be incurred therein or thereby, (iii) the
Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such action or proceeding and (iv) no
direction inconsistent with such written request has been given to the Trustee
pursuant to Section 4.8 hereof; it being understood and intended,
and being expressly covenanted by the taker and Holder of every Note with every
other taker and Holder and the Trustee, that no one or more Holders of Notes
shall have any right in any manner whatever by virtue or by availing of any
provision of this Indenture to affect, disturb or prejudice the rights of any
other Holder of Notes, or to obtain or seek 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 Notes. For the protection and enforcement of
the provisions of this Section 4.6, each and every Noteholder and
the Trustee shall be entitled to such relief as can be given either at law or
in equity.

Section 4.7                                   Powers and Remedies Cumulative,
Delay or Omission Not Waiver of Default.

No right or remedy herein conferred upon or reserved
to the Trustee or to the Noteholders is intended to be exclusive of any other
right or remedy, and every right and remedy shall, to the extent permitted by
law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The
assertion or employment of any right or remedy hereunder, or otherwise, shall
not prevent the concurrent assertion or employment of any other appropriate
right or remedy.

No delay or omission of the Trustee or of any Holder
of any of the Notes to exercise as aforesaid any such right or power accruing
upon any Event of Default occurring and continuing as aforesaid shall impair
any such right or power or shall be construed to be a waiver of any such Event
of Default or an acquiescence therein; and, subject to Section 4.6
hereof, every power and remedy given by this Indenture or by law to the Trustee
or to the Noteholders may be exercised from time to time, and as often as shall
be deemed expedient, by the Trustee or by the Noteholders.

Section 4.8                                   Control by Noteholders.

The Holders of a majority in aggregate principal
amount of the Notes at the time Outstanding 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 by this
Indenture; provided that such direction shall not be otherwise than in
accordance with law and the provisions of this Indenture; and provided  further
that (subject to the provisions of Section 5.1 hereof) the Trustee
shall have the right to decline to follow any such direction if the Trustee,
being advised by counsel, shall determine that the action or proceeding so
directed may not lawfully be taken or if the Trustee in good faith by its board
of directors, the executive committee, or a trust committee of directors or
Responsible Officers of the Trustee shall determine that the action or
proceedings so directed would involve the Trustee in personal liability, or if
the Trustee in good faith shall so determine that the actions or forbearances
specified in or pursuant to such direction shall be unduly prejudicial to the
interests of Holders of the Notes not joining in the giving of said direction,
it being understood that (subject to Section 5.1 hereof) the
Trustee shall have no duty to ascertain whether or not such actions or
forbearances are unduly prejudicial to such Holders.

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

Section 4.9                                   Waiver of Past Defaults.

Prior to the declaration of the maturity of the Notes
as provided in Section 4.1 hereof, the Holders of a majority in
aggregate principal amount of the Notes at the time Outstanding may on behalf
of the Holders of all the Notes waive any past Default or Event of Default
hereunder and its consequences, except a Default (a) in the payment of
principal of, premium, if any, or interest on any of the Notes or (b) in
respect of a covenant or provision hereof that cannot be modified or amended
without the consent of the Holder of each Note affected. In the case of any
such waiver, the Company, the Trustee and the Holders of the Notes shall be
restored to their former positions and rights hereunder, respectively, but no
such waiver shall extend to any subsequent or other default or impair any right
consequent thereon.

Upon any such waiver, such default shall cease to
exist and be deemed to have been cured and not to have occurred, and any Event
of Default arising therefrom shall be deemed to have been cured, and not to
have occurred for every purpose of this Indenture, but no such waiver shall
extend to any subsequent or other default or Event of Default or impair any
right consequent thereon.

Section 4.10                            Rights of Holders to Receive
Payment.

Notwithstanding any other provision of this Indenture
(including, without limitation, Section 4.6 hereof), the right of
any Holder to receive, and to institute suit to enforce, payment of the
principal of, and premium, if any, and interest on the Notes on or after the
respective due dates expressed in such Notes (including upon redemption and
acceleration of the maturity of the principal of and premium, if any, and
interest on the Notes), shall not be affected or impaired, and shall be
absolute and unconditional.

ARTICLE 5.

CONCERNING THE TRUSTEE

Section 5.1                                   Duties and Responsibilities of the
Trustee During Default and Prior to Default.

The Trustee, prior to the occurrence of an Event of Default
and after the curing or waiving of all Events of Default that may have
occurred, undertakes to perform only such duties as are specifically set forth
in this Indenture. In case an Event of Default has occurred (which has not been
cured or waived), the Trustee shall exercise such of the rights and powers
vested in it by this Indenture, and shall 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 own affairs.

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

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(a)          prior to the occurrence of an Event of Default and after the curing
or waiving of all such Events of Default that may have occurred:

(i)            the
duties and obligations of the Trustee shall be determined solely by the express
provisions of this Indenture, and the Trustee shall not be liable except for
the performance of such duties and obligations as are specifically set forth in
this Indenture, and no implied covenants or obligations shall be read into this
Indenture against the Trustee; and

(ii)           in
the absence of bad faith on the part of the Trustee, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon any statements, certificates or opinions
furnished to the Trustee and conforming to the requirements of this Indenture;
but in the case of any such statements, 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;

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

(c)           the Trustee shall not be liable with respect to any
action taken or omitted to be taken by it in good faith in accordance with the
direction of the Holders of not less than a majority in principal amount of the
Notes at the time Outstanding relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture.

None of the provisions contained in this Indenture
shall require the Trustee to expend or risk its own funds or otherwise incur
personal financial liability in the performance of any of its duties or in the
exercise of any of its rights or powers, if there shall be reasonable ground
for believing that the repayment of such funds or indemnity reasonably
satisfactory to it against such liability is not reasonably assured to it.

Section 5.2                                   Certain Rights of the Trustee.

Subject to Section 5.1 hereof:

(a)          the Trustee may rely conclusively and shall be fully protected in
acting or refraining from acting upon any resolution, Officers’ Certificate or
any other certificate (including, without limitation, any certificate provided
to the Trustee pursuant to Section 3.3 hereof), statement,
instrument, opinion, report, notice, request, consent, order, bond, debenture,
note, coupon, security or other paper 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 mentioned
herein shall be sufficiently evidenced by an Officers’ Certificate (unless
other evidence in respect thereof be herein specifically prescribed) and any
resolution of the Board of Directors may be evidenced to the Trustee by a copy
thereof certified by the Secretary or an Assistant Secretary of the Company;

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

(d)          the Trustee shall be under no obligation to exercise any of the
trusts or powers vested in it by this Indenture at the request, order or
direction of any of the Noteholders pursuant to the provisions of this
Indenture, unless such Noteholders shall have offered to the Trustee security
or indemnity reasonably satisfactory to it against the costs, expenses and
liabilities that might be incurred therein or thereby;

(e)           the Trustee shall not be liable for any action taken
or omitted by it in good faith and believed by it to be authorized or within
the discretion, 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, note, coupon, security, or other paper or
document unless requested in writing to do so by the Holders of not less than a
majority in aggregate principal amount of the Notes then Outstanding; provided
that if the payment within a reasonable time to the Trustee of the costs,
expenses or liabilities likely to be incurred by it in the making of such
investigation is, in the opinion of the Trustee, not reasonably assured by the
security afforded to it by the terms of this Indenture, the Trustee may require
indemnity reasonably satisfactory to it against such expenses or liabilities as
a condition to proceeding, and the reasonable expenses of every such
examination shall be paid by the Company, or by the Trustee or any predecessor
Trustee and repaid by the Company upon demand;

(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, order, bond, debenture,
note, other evidence of indebtedness or other paper or document, but the
Trustee 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;

(h)          in the absence of bad faith on the part of the Trustee, the Trustee
may conclusively rely, as to the truth of the statements and the correctness of
the opinions expressed therein, upon any certificates or opinions furnished to
the Trustee which conform to the requirements of this Indenture;

(i)           the Trustee shall not be liable for any error of
judgment made in good faith by an officer or officers of the Trustee, unless it
shall be conclusively determined by a court of competent jurisdiction that the
Trustee was grossly negligent in ascertaining the pertinent facts;

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

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(k)          the Trustee shall not be deemed to have notice of an Event of
Default unless a Responsible Officer of the Trustee has actual knowledge
thereof or written notice of any Event of Default is received by the Trustee at
its Corporate Trust Office.

Section 5.3                                   Trustee Not Responsible for
Recitals, Disposition of Notes or Application of Proceeds Thereof.

The recitals contained herein and in the Notes, except
the Trustee’s certificates of authentication, shall be taken as the statements
of the Company, and the Trustee assumes no responsibility for the correctness
of the same. The Trustee makes no representation as to the validity or
sufficiency of this Indenture or of the Notes. The Trustee shall not be
accountable for the use or application by the Company of any of the Notes or of
the proceeds thereof.

Section 5.4                                   Trustee and Agents May Hold
Notes; Collections, Etc.

The Trustee or any agent of the Company or the
Trustee, in its individual or any other capacity, may become the owner or
pledgee of Notes with the same rights it would have if it were not the Trustee
or such agent and may otherwise deal with the Company and receive, collect,
hold and retain collections from the Company with the same rights it would have
if it were not the Trustee or such agent.

Section 5.5                                   Moneys Held by Trustee.

Subject to the provisions of Section 9.4
hereof, all moneys received by the Trustee shall, until used or applied as
herein provided, be held in trust for the purposes for which they were
received, but need not be segregated from other funds except to the extent
required by mandatory provisions of law. Neither the Trustee nor any agent of
the Company or the Trustee shall be under any liability for interest on any
moneys received by it hereunder, except as the Company and the Trustee
otherwise may agree.

Section 5.6                                   Compensation and Indemnification of
Trustee and Its Prior Claim.

The Company covenants and agrees to pay to the Trustee
from time to time as shall be agreed upon between the Company and the Trustee
in writing from time to time, and the Trustee shall be entitled to reasonable
compensation (which shall not be limited by any provision of law relating to
the compensation of a trustee of an express trust), and the Company covenants
and agrees to pay or reimburse the Trustee and each predecessor Trustee upon
its request for all reasonable expenses, disbursements and advances incurred or
made by or on behalf of it in accordance with any of the provisions of this
Indenture (including the reasonable compensation and expenses and disbursements
of its counsel and of all agents and other persons not regularly in its
employ), except to the extent any such expense, disbursement or advance may
arise from the Trustee’s gross negligence or bad faith. The Company also
covenants to indemnify the Trustee and each predecessor Trustee for, and to
hold it harmless against, any and all loss, liability, damage, claims or
expenses arising out of or in connection with the acceptance or administration
of this Indenture or the trusts hereunder and its duties hereunder and the performance
of its duties hereunder, including the costs and expenses of defending and
investigating any claim of liability in the premises, except to the extent any
such loss, liability or expense is due to its own gross negligence or bad faith.
The obligations of the Company under this Section 5.6 to compensate
and indemnify the Trustee and each predecessor Trustee and to pay or reimburse
the Trustee and each predecessor Trustee for expenses, disbursements and
advances shall constitute additional indebtedness hereunder and shall survive
the satisfaction and discharge of this Indenture.

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Section 5.7            Right
of Trustee to Rely on Officers’ Certificate, Etc.

Subject to Section 5.1 and Section 5.2
hereof, whenever in the administration of the trusts of this Indenture the
Trustee shall deem it necessary or desirable that a matter be proved or
established prior to taking or suffering or omitting any action hereunder, such
matter (unless other evidence in respect thereof be herein specifically
prescribed) may, in the absence of gross 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.

Section 5.8                                   Persons Eligible for Appointment as
Trustee.

The Trustee hereunder shall at all times be a
corporation organized and doing business under the laws of the United States or
of a state thereof having a combined capital and surplus of at least
$100,000,000, and which is authorized under such laws to exercise corporate
trust powers and is 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 federal, state or
District of Columbia supervising or examining authority, then for the purposes
of this Section 5.8, 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. No obligor on the Notes or
Person directly or indirectly controlling, controlled by or under common
control with such obligor shall serve as Trustee.

Section 5.9                                   Resignation and Removal, Appointment
of Successor Trustee.

(a)          The Trustee may at any time resign by giving written notice of
resignation to the Company and by mailing notice thereof by first-class mail to
Holders of Notes at their last addresses as they shall appear on the Notes
Register. Upon receiving such notice of resignation, the Company shall promptly
appoint a successor trustee by written instrument in duplicate, executed by
authority of the Board of Directors, one copy of which instrument shall be
delivered to the resigning Trustee and one copy to the successor Trustee. If no
such successor trustee shall have been so appointed 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, at the
expense of the Company, for the appointment of a successor trustee, or any
Noteholder who has been a bona fide Holder of a Note or Notes for at least six
months may, on behalf of itself 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.

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(b)          In case at any time any of the following shall occur:

(i)            the
Trustee shall fail to comply with the provisions of TIA § 310(b), after written
request thereafter by the Company or by any Noteholder who has been a bona fide
Holder of a Note or Notes for at least six months;

(ii)           the
Trustee shall cease to be eligible in accordance with the provisions of Section 5.8
hereof and shall fail to resign after written request therefor by the Company
or by any such Noteholder; or

(iii)          the
Trustee shall become incapable of acting, or shall be adjudged a bankrupt or
insolvent, or a receiver or liquidator 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 may remove the
Trustee and appoint a successor trustee by written instrument, in duplicate,
executed by order of the Board of Directors of the Company, one copy of which
instrument shall be delivered to the Trustee so removed and one copy of which
shall be delivered to the successor trustee, or any Noteholder who has been a
bona fide Holder of a Note or Notes for at least six months may, on behalf of
itself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
trustee. Such court may thereupon, after such notice, if any, as it may deem
proper and prescribe, remove the Trustee and appoint a successor trustee.

(c)           The Holders of a majority in aggregate principal
amount of the Notes at the time Outstanding may at any time remove the Trustee
and appoint a successor trustee by delivering to the Trustee so removed, to the
successor trustee so appointed and to the Company the evidence provided for in Section 6.1
hereof of the action in that regard taken by the Noteholders.

(d)          Any resignation or removal of the Trustee and any appointment of a
successor trustee pursuant to any of the provisions of this Section 5.9
shall become effective only upon acceptance of appointment by the successor
trustee as provided in Section 5.10 hereof.

Section 5.10                            Acceptance of Appointment by
Successor Trustee.

Any successor trustee appointed as provided in Section 5.9
hereof shall execute and deliver to the Company and to its predecessor Trustee
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 rights, powers, duties and obligations of its
predecessor hereunder, with like effect as if originally named as trustee
herein; but, nevertheless, on the written request of the Company or of the
successor trustee, upon payment of its charges then unpaid, the Trustee ceasing
to act shall, subject to Section 9.4 hereof, pay over to the
successor trustee all moneys at the time held by it hereunder and shall execute
and deliver an instrument transferring to such successor trustee all such
rights, powers, duties and obligations. Upon request of any such successor
trustee, the Company shall execute appropriate instruments in writing for more
fully and certainly vesting in and confirming to such successor such rights and
powers. Any Trustee ceasing to act shall, nevertheless, retain a prior claim
upon all property or funds held or collected by such Trustee to secure any
amounts then due it pursuant to the provisions of Section 5.6
hereof.

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Upon acceptance of appointment by a successor trustee
as provided in this Section 5.10, the Company shall mail notice
thereof by first-class mail to the Holders of Notes at their last addresses as
they shall appear in the Notes Register. If the acceptance of appointment is
substantially contemporaneous with a resignation, then the notice called for by
the preceding sentence may be combined with the notice called for by Section 5.9
hereof. If the Company fails to mail such notice within 10 days after
acceptance of appointment by the successor trustee, the successor trustee shall
cause such notice to be mailed at the expense of the Company.

Notwithstanding replacement of the Trustee pursuant to
this Section 5.10, the Company’s obligations under Section 5.6
hereof shall continue for the benefit of the retiring Trustee.

Section 5.11                            Merger, Conversion, Consolidation or
Succession to Business 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 of the
corporate trust business of the Trustee, shall be the successor of the Trustee
hereunder, as long as such corporation shall be eligible under the provisions
of Section 5.8 hereof, without the execution or filing of any paper
or any further act on the part of any of the parties hereto, anything herein to
the contrary notwithstanding.

In case any of the Notes shall have been authenticated
but not delivered at the time such successor to the Trustee shall succeed to
the trusts created by this Indenture, any such successor to the Trustee may
adopt the certificate of authentication of any predecessor Trustee and deliver
such Notes so authenticated and, in case at that time any of the Notes shall
not have been authenticated, any successor to the Trustee may authenticate such
Notes either in the name of any predecessor hereunder or in the name of the
successor trustee, and in such cases such certificate shall have the full force
which it is anywhere in the Notes or in this Indenture provided that the
certificate of the Trustee shall have; provided that the right to adopt
the certificate of authentication of any predecessor Trustee or to authenticate
Notes in the name of any predecessor Trustee shall apply only to its successor
or successors by merger, conversion or consolidation.

Section 5.12                            Reports by Trustee.

The Trustee shall provide to the Holders the reports
required to be provided by the Trustee pursuant to Section 313 of
the TIA.

 

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ARTICLE
6.

CONCERNING THE NOTEHOLDERS

Section 6.1                                   Evidence of Action Taken by
Noteholders.

Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken
by Noteholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Noteholders, in person or by agent
duly appointed in writing, and, except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments are
received by the Trustee. Proof of execution of any instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture
and (subject to Section 5.1 and Section 5.2 hereof)
conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Article.

Section 6.2                                   Proof of Execution of Instruments
and of Holding of Notes Record Date.

Subject to Section 5.1 and Section 5.2
hereof, the execution of any instrument by a Noteholder or his agent or proxy
may be provided in accordance with such reasonable rules and regulations
as may be prescribed by the Trustee or in such manner as shall be satisfactory
to the Trustee. The holding of Notes shall be as provided by the Notes Register
or by a certificate of the Registrar thereof. The Company may set a record date
for purposes of determining the identity of Holders of Notes entitled to vote
or consent to any action referred to in Section 6.1 hereof, which
record date may be set at any time or from time to time by written notice to
the Trustee for any date or dates (in the case of any adjournment or
resolicitation) not more than 60 days nor less than five days prior to the
proposed date of such vote or consent, and, thereafter, notwithstanding any
other provisions hereof, only Holders of Notes of record on such record date
shall be entitled to so vote or give such consent or to withdraw such vote or
consent.

Section 6.3                                   Holders to Be Treated as Owners.

The Company, the Trustee and any agent of the Company
or the Trustee may deem and treat the Person in whose name any Note shall be
registered upon the Notes Register as the absolute owner of such Note (whether
or not such Note shall be overdue and notwithstanding any notation of ownership
or other writing thereon) for the purpose of receiving payment of or on account
of the principal of, and premium, if any, on and, subject to the provisions of
this Indenture, interest on such Note and for all other purposes, and neither
the Company nor the Trustee nor any agent of the Company or the Trustee shall
be affected by any notice to the contrary. All such payments so made to any
such Person, or upon his order, shall be valid and to the extent of the sum or
sums so paid, effectual to satisfy and discharge the liability for moneys
payable upon any such Note.

 45
 

 

Section 6.4                                   Notes Owned by Company Deemed Not
Outstanding.

In determining whether the Holders of the requisite
aggregate principal amount of Notes have concurred in any direction, consent or
waiver under this Indenture, Notes that are owned by the Company or any other
obligor on the Notes or by any Person directly or indirectly controlling or
controlled by or under direct or indirect common control with the obligor on
the Notes shall be disregarded and deemed not to be Outstanding for the purpose
of any such determination, except that for the purpose of determining whether a
Responsible Officer of the Trustee shall be protected in relying on any such
direction, consent or waiver, only Notes that the Trustee actually knows are so
owned shall be so disregarded. Notes so owned that have been pledged in good
faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such
Notes and that the pledgee is not the Company or any other obligor upon the
Notes or any Person directly or indirectly controlling or controlled by or
under direct or indirect common control with the Company or any other obligor
on the Notes. In case of a dispute as to such right, the advice of counsel
shall be full protection in respect of any decision made by the Trustee in
accordance with such advice. Upon request of the Trustee, the Company shall
furnish to the Trustee promptly an Officers’ Certificate listing and
identifying all Notes, if any, known by the Company to be owned or held by or
for the account of any of the above-described Persons, and, subject to Section 5.1
and Section 5.2 hereof, the Trustee shall be entitled to accept
such Officers’ Certificate as conclusive evidence of the facts therein set
forth and of the fact that all Notes not listed therein are Outstanding for the
purpose of any such determination.

Section 6.5                                   Right of Revocation of Action Taken.

At any time prior to (but not after) the evidencing to
the Trustee, as provided in Section 6.1 hereof, of the taking of
any action by the Holders of the percentage in aggregate principal amount of
the Notes specified in this Indenture in connection with such action, any
Holder of a Note the serial number of which is shown by the evidence to be
included among the serial numbers of the Notes the Holders of which have
consented to such action may, by filing written notice at the Corporate Trust
Office and upon proof of holding as provided in this Article, revoke such
action so far as concerns such Note. Except as aforesaid any such action taken
by the Holder of any Note shall be conclusive and binding upon such Holder and
upon all future Holders and owners of such Note and of any Notes issued in exchange
or substitution therefor, irrespective of whether or not any notation in regard
thereto is made upon any such Note. Any action taken by the Holders of the
percentage in aggregate principal amount of the Notes specified in this
Indenture in connection with such action shall be conclusively binding upon the
Company, the Trustee and the Holders of all such Notes.

ARTICLE 7.

SUPPLEMENTAL INDENTURES

Section 7.1                                   Supplemental Indentures Without
Consent of Noteholders.

The Company, when authorized by 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 for one or more of the
following purposes:

(a)          to convey, transfer, assign, mortgage or pledge to the Trustee as
security for the Notes any property or assets;

 46
 

 

(b)          to evidence the succession of another corporation to the Company,
or successive successions, and the assumption by the successor corporation of
the covenants, agreements and obligations of the Company pursuant to Article 8
hereof;

(c)           to add to the covenants of the Company such further
covenants, restrictions, conditions or provisions as the Board of Directors
shall consider to be for the protection of the Holders of Notes, and to make
the occurrence, or the occurrence and continuance of a Default in any such
additional covenants, restrictions, conditions or provisions an Event of
Default permitting the enforcement of all or any of the several remedies
provided in this Indenture as herein set forth; provided that in respect
of any such additional covenant, restriction, condition or provision, 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 immediate enforcement upon such an Event of
Default or may limit the remedies available to the Trustee due solely to such
an Event of Default or may limit the right of the Holders of a majority in
aggregate principal amount of the Notes to waive such an Event of Default;

(d)          to cure any ambiguity or to cure, correct or supplement any
defective provision contained herein or in the Notes, or to make such other
provisions in regard to matters or questions arising under this Indenture or
under any supplemental indenture as the Board of Directors may deem necessary
or desirable, and in any case which the Trustee and the Company shall determine
(i) are not inconsistent with this Indenture and the Notes and (ii) shall
not adversely affect the interests of the Holders of the Notes;

(e)           to modify or supplement this Indenture or any
indenture supplemental hereto in such manner as to permit the qualification
thereof under the TIA or any other similar federal statute hereafter in effect;

(f)            to provide for the issuance of additional Notes in
accordance with the limitations set forth in this Indenture as of the date of
this Indenture; and

(g)          to permit or facilitate the issuance of a series of Notes pursuant
to the provisions hereof.

The Trustee is hereby authorized to join in the
execution of any such supplemental Indenture, to make any further appropriate
agreements and stipulations that may be therein continued 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 that affects the Trustee’s own rights, duties,
indemnities or immunities under this Indenture or otherwise.

Any supplemental indenture authorized by the provisions
of this Section 7.1 may be executed without the consent of the
Holders of any of the Notes at the time Outstanding, notwithstanding any of the
provisions of Section 7.2 hereof.

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Section 7.2                                   Supplemental Indentures With Consent
of Noteholders.

With the consent (evidenced as provided in Article 6,
hereof) of the Holders of not less than a majority in aggregate principal
amount of the Notes at the time Outstanding, the Company, when authorized by a
resolution of its Board of Directors, and the Trustee may, from time to time
and at any time, modify this Indenture, any indentures supplemental hereto, the
Notes or the rights of the Holders of the Notes, provided that no such
modification shall (a) change the Stated Maturity of the principal of, or
any installment of principal of or interest on, any Note, or reduce the
principal amount thereof, or reduce the rate or extend the time of payment of
interest thereon, or reduce any amount payable on redemption thereof or impair
the right of any Noteholder to institute suit for the enforcement of any
payment on or with respect to any Note or change the place or currency of
payment of principal of, or interest on, any Note, in each case without the
consent of the Holder of each Note so affected, or (b) without the consent
of the Holders of all Notes then Outstanding, (i) reduce the aforesaid
percentage of Notes the consent of the Holders of which is required for any
such modification, or the percentage of Notes the consent of the Holders of
which is required for any waiver provided for in this Indenture, (ii) change
any obligation of the Company to maintain an office or agency in the places and
for the purposes specified in Section 2.4 or (iii) make any
change in Section 4.9 or this Section 7.2, except to
increase any percentages or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holders of
each Outstanding Note affected thereby.

Upon the request of the Company, accompanied by a copy
of a resolution of the Board of Directors certified by the Secretary or an
Assistant Secretary of the Company authorizing the execution of any such
supplemental indenture, and upon the filing with the Trustee of evidence of the
consent of Noteholders and other documents, if any, required by Section 6.1
hereof, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee’s
own rights, duties, indemnities 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.

It shall not be necessary for the consent of the
Noteholders under this Section 7.2 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 and the
Trustee of any supplemental indenture pursuant to the provisions of this Section 7.2,
the Company shall mail a notice thereof by first class mail to the Holders of
Notes at their addresses as they shall appear on the Notes Register, setting
forth in general terms the substance of such supplemental indenture. 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 supplemental
indenture.

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Section 7.3                                   Effect of Supplemental Indenture.

Upon the execution of any supplemental indenture
pursuant to the provisions hereof, this Indenture shall be and be deemed to be
modified and amended in accordance therewith and the respective rights,
limitations of rights, obligations, duties and immunities under this Indenture
of the Trustee, the Company and the Holders of Notes 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.

Section 7.4                                   Documents to Be Given to Trustee.

The Trustee, subject to the provisions of Section 5.1
and Section 5.2 hereof, shall receive an Officers’ Certificate and
an Opinion of Counsel as conclusive evidence that any such supplemental
indenture complies with the applicable provisions of this Indenture and that
all conditions precedent to the execution of such supplemental indenture have
been met.

Section 7.5                                   Notation of Notes in Respect of
Supplemental Indentures.

Notes authenticated and delivered after the execution
of any supplemental indenture pursuant to the provisions of this Article 7
may bear a notation in form approved by the Trustee as to any matters provided
for by such supplemental indenture or as to any action taken at any such
meeting as the Company shall so determine, and new Notes so modified as to
conform, in the opinion of the Trustee and the Board of Directors, to any
modification of this Indenture contained in any such supplemental indenture may
be prepared by the Company, authenticated by the Trustee and delivered in
exchange for the Notes then Outstanding, which Notes so exchanged shall be
canceled by the Trustee.

ARTICLE 8.

MERGER, CONSOLIDATION, SALE, LEASE OR CONVEYANCE

Section 8.1                                   Covenant Not to Merge, Consolidate,
Sell, Lease or Transfer Assets Except Under Certain Conditions.

(a)          The Company shall not merge or consolidate with or into any other
person and the Company shall not sell, lease or convey all or substantially all
of its assets to any person, unless (1) the Company is the continuing
corporation, or the successor corporation or the person that acquires all or
substantially all of the Company’s assets is a corporation organized and
existing under the laws of the United States or a State thereof or the District
of Columbia and expressly assumes all the Company’s obligations under the Notes
and this Indenture, (2) immediately after such merger, consolidation,
sale, lease or conveyance, there is no Default or Event of Default hereunder, (3) if,
as a result of the merger, consolidation, sale, lease or conveyance, any or all
of the Company’s property would become the subject of a lien that would not be
permitted by this Indenture, the Company secures the Notes equally and ratably
with the obligations secured by that lien and (4) the Company delivers or
causes to be delivered to the Trustee an Officers’ Certificate and Opinion of
Counsel each stating that the merger, consolidation, sale, lease or conveyance
comply with this Indenture.

 49
 

 

(b)          Except for the sale of the properties and assets of the Company
substantially as an entirety pursuant to subsection (a) above, and other
than assets required to be sold to conform with governmental regulations, the
Company shall not sell or otherwise dispose of any assets (other than
short-term, readily marketable investments purchased for cash management
purposes with funds not representing the proceeds of other asset sales) if, on
a pro forma basis, the aggregate net book value of all such sales during the most
recent 12-month period would exceed 10% of Consolidated Net Tangible
Assets computed as of the end of the most recent fiscal quarter preceding such
sale; provided, however, that any such sales shall be disregarded
for purposes of this 10% limitation if the proceeds are invested in assets in
similar or related lines of business of the Company and, provided further, that
the Company may sell or otherwise dispose of assets in excess of such 10%
limitation if the proceeds from such sales or dispositions, which are not
reinvested as provided above, are retained by the Company as cash or cash
equivalents or are used by the Company to purchase Notes, which are then
delivered to the Trustee for cancellation, or to reduce or retire Indebtedness
ranking pari passu in right of payment to the Notes or indebtedness of the
Company’s Subsidiaries.

Section 8.2                                   Successor Corporation Substituted.

In case of any such merger, consolidation, sale,
lease, or transfer, and following such an assumption by the successor
corporation of the Company’s obligations under the Notes and this Indenture,
such successor corporation shall succeed to and be substituted for the Company,
with the same effect as if it had been named herein.

Such successor corporation may cause to be signed, and
may issue either in its own name or in the name of the Company prior to such
succession, any or all of the Notes issuable hereunder that theretofore shall
not have been signed by the Company and delivered to the Trustee, and, upon the
order of such successor corporation, instead of the Company, and subject to all
the terms, conditions and limitations in this Indenture prescribed, the Trustee
shall authenticate and shall deliver any Notes that previously shall have been
signed and delivered by the officers of the Company to the Trustee for
authentication and any Notes that such successor corporation thereafter shall
cause to be signed and delivered to the Trustee for that purpose. All of the
Notes so issued shall in all respects have the same legal rank and benefit
under this Indenture as the Notes theretofore or thereafter issued in
accordance with the terms of this Indenture as though all of such Notes had
been issued at the date of the execution hereof.

In case of any such merger, consolidation, sale, lease
or transfer such changes in phraseology and form (but not in substance) may be
made in the Notes thereafter to be issued as may be appropriate.

In the event of any such sale or transfer (other than
a transfer by way of lease) the Company or any successor corporation, which
shall theretofore have become such in the manner described in this Article 8,
shall be discharged from all obligations and covenants under this Indenture and
the Notes and may be liquidated and dissolved.

Section 8.3                                   Opinion of Counsel to Trustee;
Officers’ Certificate.

The Trustee, subject to the provisions of Section 5.1
and Section 5.2 hereof, shall receive an Officers’ Certificate and
an Opinion of Counsel as conclusive evidence that any such merger,
consolidation, sale, lease or transfer, and any such assumption of obligations
described in this Article 8, and any such liquidation or
dissolution described in this Article 8, complies with the
applicable provisions of this Indenture.

 50
 

 

ARTICLE 9.

SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

Section 9.1                                   Satisfaction and Discharge of
Indenture.

If at any time (a) the Company shall have paid or
caused to be paid the principal of and premium, if any, and interest on all the
Notes Outstanding hereunder, as and when the same shall have become due and
payable, or (b) the Company shall have delivered to the Trustee for
cancellation all Notes theretofore authenticated (other than any Notes which
shall have been destroyed, lost or stolen and which shall have been replaced or
paid as provided in Section 2.8 hereof) or (c)(i) all such
Notes not theretofore delivered to the Trustee for cancellation shall have
become due and payable, or are by their terms to become due and payable within
one year or are to be called for redemption under arrangements satisfactory to
the Trustee for the giving of notice of redemption, and (ii) the Company
shall have irrevocably deposited or caused to be deposited with the Trustee as
trust funds the entire amount in cash (other than moneys repaid by the Trustee
or any paying agent to the Company in accordance with Section 9.4
hereof) or U.S. Government Obligations, maturing as to principal, premium, if
any, and interest in such amounts and at such times as will insure (without
reinvestment) the availability of cash sufficient, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, to pay at maturity all
such Notes not theretofore delivered to the Trustee for cancellation, including
principal, premium, if any, and interest due or to become due to such date of
maturity as the case may be, and if, in any such case, the Company shall also
pay or cause to be paid all other sums payable hereunder by the Company, then
this Indenture shall cease to be of further effect (except as to (i) rights
of registration of transfer and exchange, and the Company’s right to optional
redemption, (ii) substitution of apparently mutilated, defaced, destroyed,
lost or stolen Notes, (iii) rights of Holders to receive payments of
principal of and premium, if any, and interest on, the Notes upon the original
stated due dates therefor (but not upon acceleration), (iv) the rights and
obligations and immunities of the Trustee hereunder, (v) the rights of the
Noteholders as beneficiaries hereof with respect to the property so deposited
with the Trustee payable to all or any of them and (vi) the maintenance by
the Company of its existence), and the Trustee, upon written demand of the
Company accompanied by an Officers’ Certificate and an Opinion of Counsel and
at the cost and expense of the Company, shall execute proper instruments
acknowledging such satisfaction of and discharging this Indenture; provided
that the rights of Holders of the Notes to receive amounts in respect of
principal of and premium, if any, and interest on the Notes held by them shall
not be delayed longer than required by then applicable mandatory rules or
policies of any securities exchange upon which the Notes are listed.

The Company shall reimburse the Trustee for any costs
or expenses thereafter reasonably and properly incurred and shall compensate
the Trustee for any services thereafter reasonably and properly rendered by the
Trustee in connection with this Indenture or the Notes.

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Section 9.2                                   Application by Trustee of Funds
Deposited for Payment of Notes.

Subject to Section 9.4 hereof, all moneys
deposited with the Trustee pursuant to Section 9.1 hereof shall be
held in trust and 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 Notes for the payment or redemption of which such
moneys have been deposited with the Trustee, of all sums due and to become due
thereon for principal, premium, if any, and interest, but such money need not
be segregated from other funds except to the extent required by law.

Section 9.3                                   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 under the provisions
of this Indenture shall, upon demand of the Company, be repaid to it or paid to
the Trustee and thereupon such Paying Agent shall be released from all further
liability with respect to such moneys.

Section 9.4                                   Return of Moneys Held by Trustee and
Paying Agent Unclaimed for Two Years.

Any moneys deposited with or paid to the Trustee or
any Paying Agent for the payment of the principal of or premium or interest on
any Note and not applied but remaining unclaimed for two years after the date
upon which such principal, premium or interest shall have become due and
payable shall, upon the written request of the Company, be repaid to the
Company by the Trustee or such Paying Agent, and the Holder of such Note shall,
unless otherwise required by mandatory provisions of applicable escheat or
abandoned or unclaimed property laws, thereafter look only to the Company for
any payment which such Holder may be entitled to collect, and all liability of
the Trustee or any Paying Agent with respect to such moneys shall thereupon
cease.

Section 9.5                                   Defeasance and Discharge of
Indenture.

The Company will be deemed to have paid and will be
discharged from any and all obligations in respect of the Notes on the 123rd
day after the deposit referred to in subparagraph (A) below has been made,
and the provisions of this Indenture and any Series Supplemental Indenture
will no longer be in effect with respect to the Notes (and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging the
same), except as to (a) rights of registration of transfer and exchange,
and the Company’s right of optional redemption, (b) substitution of
apparently mutilated, defaced, destroyed, lost or stolen securities, (c) rights
of Holders to receive payments of principal thereof and premium, if any, and
interest thereon, (d) the rights, obligations and immunities of the
Trustee hereunder, (e) the rights of the Noteholders as beneficiaries
hereof with respect to the property so deposited with the Trustee payable to
all or any of them, (f) the obligations of the Company to maintain a place
of payment for the Notes under Section 3.1 hereof and (g) the
maintenance by the Company of its existence; provided that the following
conditions shall have been satisfied:

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(A)          with
reference to this Section 9.5, the Company has irrevocably
deposited or caused to be irrevocably deposited with the Trustee (or another
trustee satisfying the requirements of Section 5.8 hereof) as trust
funds in trust, specifically pledged as security for, and dedicated solely to,
the benefit of the Holders of the Notes, (i) money in an amount, (ii) U.S.
Government Obligations, which through the payment of interest and principal in
respect thereof in accordance with their terms (without reinvestment), will
provide not later than one day before the due date of any payment referred to
in clause (x) or (y) of this subparagraph (A) money in an
amount, or (iii) a combination thereof, sufficient, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, after
payment of all federal, state and local taxes or other charges and assessments
in respect thereof, (x) the principal of, premium, if any, and each
installment of principal and interest on the Outstanding Notes at the maturity
date of such principal or installment of principal or interest and (y) any
mandatory sinking fund payments or analogous payments applicable to the Notes
on the day on which such payments are due and payable in accordance with the
terms of this Indenture and the Notes;

(B)           the
Company has delivered to the Trustee (i) an Opinion of Counsel, reasonably
acceptable to the Trustee, to the effect that Holders will not recognize
income, gain or loss for federal income tax purposes as a result of the Company’s
exercise of its option under this Section 9.5 and will be subject
to federal income tax on the same amount and in the same manner and at the same
times as would have been the case if such deposit, defeasance and discharge had
not occurred, which Opinion of Counsel must be based on (x) a change in
applicable federal income tax law or related Treasury Regulations after the
date of this Indenture or (y) a ruling of the Internal Revenue Service to
the same effect and (ii) an Opinion of Counsel to the effect that the
defeasance trust does not constitute an “investment company” under the
Investment Company Act of 1940, as amended, and after the passage of 123 days
following the deposit, the trust fund will not be subject to the effect of Section 547
of the U.S. Bankruptcy Code or Section 15 of the New York Debtor and
Creditor Law;

(C)           immediately
after giving effect to such deposit, no Default or Event of Default shall have
occurred and be continuing on the date of such deposit or during the period
ending on the 123rd day after the date of such deposit, and such deposit shall
not result in a breach or violation of, or constitute a default under, any
other agreement or to which the Company is a party or by which the Company is
bound; and

(D)          if
at such time the Notes are listed on a national securities exchange, the
Company has delivered to the Trustee an Opinion of Counsel to the effect that
the Notes will not be delisted as a result of such deposit, defeasance and
discharge.

Section 9.6                                   Defeasance of Certain Obligations.

The Company may omit to comply with any term,
provision, or condition set forth in Sections 3.4, 3.5 and 8.1(b),
and Section 4.1(d) (with respect to Sections 3.4, 3.5
and 8.1(b)) and Sections 4.1(c) and (e) shall be
deemed not to be Events of Default on the 123rd day after the deposit referred
to in subparagraph (A) below if:

 53
 

 

(A)          with
reference to this Section 9.6, the Company has irrevocably
deposited or caused to be irrevocably deposited with the Trustee (or another
trustee satisfying the requirements of Section 5.6 hereof) as trust
funds in trust, specifically pledged as security for, and dedicated solely to,
the benefit of the Holders of the Notes, (i) money in an amount, (ii) U.S.
Government Obligations, which through the payment of interest and principal in
respect thereof in accordance with their terms (without reinvestment), will
provide not later than one day before the due date of any payment referred to
in clauses (x) or (y) of this Section 9.6, money in an
amount, or (iii) a combination thereof, sufficient, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
certification thereof delivered to the Trustee, to pay and discharge, after
payment of all federal, state and local taxes or other charges and assessments
in respect thereof, (x) the principal of, premium, if any, and each
installment of principal and interest on the Outstanding Notes at the maturity
date of such principal or installment of principal or interest and (y) any
mandatory sinking fund payments or analogous payments applicable to the Notes
on the day on which such payments are due and payable in accordance with the
terms of this Indenture and the Notes;

(B)           the
Company has delivered to the Trustee (i) an Opinion of Counsel, reasonably
acceptable to the Trustee, to the effect that Holders will not recognize
income, gain or loss for federal income tax purposes as a result of the Company’s
exercise of its option under this Section 9.6 and will be subject
to federal income tax on the same amount and in the same manner and at the same
times as would have been the case if such deposit, defeasance and discharge had
not occurred, and (ii) an Opinion of Counsel to the effect that the
defeasance trust does not constitute an “investment company” under the
Investment Company Act of 1940, as amended, and after the passage of 123 days
following the deposit, the trust fund will not be subject to the effect of Section 547
of the U.S. Bankruptcy Code or Section 15 of the New York Debtor
and Creditor Law;

(C)           immediately
after giving effect to such deposit, no Event of Default, or event that after
the giving of notice or lapse of time or both would become an Event of Default,
shall have occurred and be continuing on the date of such deposit or during the
period ending on the 123rd day after the date of such deposit, and such deposit
shall not result in a breach or violation of or constitute a default under any
other agreement or instrument to which the Company is a party or by which the
Company is bound; and

(D)          if
at such time the Notes are listed on a national securities exchange, the
Company has delivered to the Trustee an Opinion of Counsel to the effect that
the Notes will not be delisted as a result of such deposit, defeasance and
discharge.

 54

 

ARTICLE 10.

REDEMPTION OF NOTES

Section 10.1                            Notes Redeemed in Part.

Upon surrender of a Note that is redeemed in part, the
Company shall issue and the Trustee shall authenticate for the Holder at the
expense of the Company a new Note equal in principal amount to the unredeemed
portion of the Note surrendered.

Section 10.2                            Notice of Redemption.

Notice of redemption to the Holders of Notes to be
redeemed in accordance with any Series Supplemental Indenture shall be
given by the Company by mailing notice of such redemption by first class mail,
postage prepaid, at least 30 days and not more than 60 days prior to the date
fixed for redemption to such Holders of Notes at their last addresses as they
shall appear in the Notes Register. Failure to give notice by mail, or any
defect in the notice to the Holder of any Note designated for redemption as a
whole or in part shall not affect the validity of the proceedings for the
redemption of any other Note.

The notice of redemption to each Holder shall specify
that the Notes are being redeemed pursuant to this Article 10 and
the applicable Series Supplemental Indenture, the date fixed for
redemption, the place or places of payment, the CUSIP and ISIN numbers (as
applicable) of the Notes being redeemed, that payment will be made upon
presentation and surrender of the Notes, that interest accrued to the date
fixed for redemption will be paid as specified in this Article and that,
on and after said date, interest thereon or on the portions thereof redeemed
will cease to accrue.

Any notice of redemption of Notes to be redeemed at
the option of the Company shall be given by the Company or, at the Company’s
request, by the Trustee in the name and at the expense of the Company.

At least one Business Day prior to the redemption date
specified in the notice of redemption given as provided in this Section 10.2,
the Company shall deposit with the Trustee or with one or more paying agents
(or, if the Company is acting as its own paying agent, set aside, segregate and
hold in trust as provided in Section 2.5 hereof) an amount of money
sufficient to redeem on the redemption date all the Notes so called for
redemption.

Section 10.3                            Payment of Notes Called for
Redemption.

If notice of redemption has been given as above
provided, the Notes shall become due and payable on the date and at the place
stated in such notice at the redemption price, and on and after said date
(unless the Company shall default in the payment of such Notes at the
redemption price) interest on the Notes or portions of Notes so called for
redemption shall cease to accrue and, except as provided in Section 5.5
and Section 9.4 hereof, such Notes shall cease from and after the
date fixed for redemption to be entitled to any benefit or security under this
Indenture, and the Holders thereof shall have no right in respect of such Notes
except the right to receive the redemption price thereof. On presentation and
surrender of such Notes at a place of payment specified in said notice, said
Notes shall be paid and redeemed by the Company at the redemption price, provided
that any semiannual payment of interest becoming due on the date fixed for
redemption shall be payable to the Holders of such Notes registered as such on
the relevant record date subject to the terms and provisions of Section 2.7(i) hereof.

 55
 

 

If the Company defaults in the payment of the
redemption price with respect to any Note called for redemption, upon surrender
thereof for redemption, the principal shall, until paid or duly provided for,
bear interest from the date fixed for redemption at the rate borne by the Note.

ARTICLE 11.

MISCELLANEOUS PROVISIONS

Section 11.1                            Incorporators, Shareholders,
Officers and Directors of Company Exempt from Individual Liability.

No recourse under or upon any obligation, covenant or
agreement contained in this Indenture, or in any Note, or because of any
indebtedness evidenced thereby, shall be had against any incorporator, as such,
or against any past, present or future shareholder, officer or director, as
such, of the Company or of any successor, either directly or through the
Company or any successor, under any rule of law, statute or constitutional
provision or by the enforcement of any assessment or by any legal or equitable
proceeding or otherwise, all such liability being expressly waived and released
by the acceptance of the Notes by the Holders thereof and as part of the
consideration for the issue of the Notes.

Section 11.2                            Provisions of the Indenture for the
Sole Benefit of Parties and Noteholders.

Nothing in this Indenture or in the Notes, expressed
or implied, shall give or be construed to give to any Person, other than the
parties hereto and their successors and the Holders (and, where expressly set
forth herein, owners of interests in any Global Note), any legal or equitable
right, remedy or claim under this Indenture or under any covenant or provision
herein contained, all such covenants and provisions being for the sole benefit
of the parties hereto and their successors and the Holders (and, where
expressly set forth herein, owners of interests in any Global Note).

Section 11.3                            Successors and Assigns of Company
Bound by Indenture.

All the covenants, stipulations, promises and
agreements in this Indenture contained by or on behalf of the Company shall
bind its successors and assigns, whether so expressed or not.

Section 11.4                            Notices and Demands on Company,
Trustee and Noteholders.

Any notice or demand which by any provision of this
Indenture is required or permitted to be given or served by the Trustee or by
the Holders to or on the Company may be given or served by being deposited
postage prepaid, first-class mail (except as otherwise specifically provided
herein) addressed (until another address of the Company is filed by the Company
with the Trustee) to Edison Mission Energy, 18101 Von Karman Avenue, Suite 1700,
Irvine, California 92612, Attention: Chief Financial Officer. Any notice,
direction, request or demand by the Company or any Noteholder to or upon the
Trustee shall be deemed to have been sufficiently given or made, for all
purposes, if given or made at the Corporate Trust Office.

 56
 

 

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

In case, by reason of the suspension of or
irregularities in regular mail service, it shall be impracticable to mail
notice to the Company and Noteholders when such notice is required to be given
pursuant to any provision of this Indenture, then any manner of giving such
notice as shall be satisfactory to the Trustee shall be deemed to be a
sufficient giving of such notice.

Section 11.5                            Statements to Be Contained in
Officers’ Certificates and Opinions of Counsel.

Upon any application or demand by the Company to the
Trustee to take any action under any of the provisions of this Indenture, the
Company shall furnish to the Trustee an Officers’ Certificate stating that all
conditions precedent 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 have been complied with,
except that in the case of any such application or demand as to which the
furnishing of such documents is specifically required by any provision of this
Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished.

Each certificate or opinion provided for in this
Indenture and delivered to the Trustee with respect to compliance with a condition
or covenant provided for in this Indenture shall include (a) 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 has made such examination or investigation as is
necessary to enable him to express an informed opinion as to whether or not
such covenant or condition has been complied with and (d) a statement as
to whether or not, in the opinion of such Person, such condition or covenant
has been complied with.

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

 57
 

 

Any certificate, statement or opinion of an officer of
the Company or of counsel may be based, insofar as it relates to accounting
matters, upon a certificate or opinion of or representations by an accountant
or firm of accountants in the employ of the Company, unless such officer or
counsel, as the case may be, knows that the certificate or opinion or
representations with respect to the accounting matters upon which his
certificate, statement or opinion may be based as aforesaid are erroneous, or
in the exercise of reasonable care should know that the same are erroneous.

Any certificate or opinion of any independent firm of
public accountants filed with the Trustee shall contain a statement that such
firm is independent.

Section 11.6                            Payments Due on Saturdays, Sundays
and Holidays.

If the date of maturity of interest on or principal,
or premium, if any, of the Notes or the date fixed for redemption of any Note
shall not be a Business Day, then payment of interest, principal, or premium
need not be made on such date, but may be made on the next succeeding Business
Day with the same force and effect as if made on the date of maturity or the
date fixed for redemption, and no interest shall accrue for the period after
such date.

Section 11.7                            New York Law to Govern.

THIS INDENTURE SHALL BE GOVERNED BY THE LAW OF THE
STATE OF NEW YORK, WITHOUT REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF
(OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW).

Section 11.8                            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 agreement.

Section 11.9                            Effect of Headings.

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

Section 11.10                     Trust Indenture Act.

When this Indenture is qualified under the TIA, the
mandatory provisions thereof shall be deemed to be incorporated by reference
herein.

 

 58

IN WITNESS WHEREOF, the
parties hereto have caused this Indenture to be duly executed by their
respective officers thereunto duly authorized as of the date first written
above. 

	
  

  	
  EDISON MISSION ENERGY, as Company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ STEVEN D. EISENBERG

  
	
   

  	
   

  	
  Name: Steven D. Eisenberg

  
	
   

  	
   

  	
  Title:  Vice
  President and Associate

             General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL

           ASSOCIATION,
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ FRANK MCDONALD

  
	
   

  	
   

  	
  Name: Frank McDonald

  
	
   

  	
   

  	
  Title:  Vice
  President

  

 

 

 

 

 

 

 

 

 

 

 

 

EME - Indenture

  
  
 

 

 

EXHIBIT A

[Face of Note]

CUSIP/CINS
__________

ISIN __________

_%
Senior Notes due __________

	
  No.

  	
   

  	
   

  	
  $

  	
   

  

 

EDISON
MISSION ENERGY

promises
to pay to __________________________________________________________________________ 

or
registered assigns,

the
principal sum of _________________________________________________________________ DOLLARS

on
________________________ , ______ .

Interest
Payment Dates:             and ______________ 

Record
Dates:                and ­_______

Dated:____________________________ , ______ 

	
  

  	
  EDISON MISSION ENERGY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

	
  This is one of the Notes
  referred to in the within-mentioned Indenture:

  
	
   

  	
   

  
	
  WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  
	
   

  	
  Authorized
  Signatory

  
	
   

  	
   

  

 

 A-1
  
 

 

[Back of Note]

_____ % Senior Notes due __________

[Insert
the Global Note Legend, if applicable pursuant to the provisions of the
Indenture]

[Insert
the Private Placement Legend, if applicable pursuant to the provisions of the
Indenture]

[Insert
the IAI Note Legend, if applicable pursuant to the provisions of the Indenture]

[Insert
the ERISA Legend, if applicable pursuant to the provisions of the Indenture]

Capitalized terms used herein shall have the meanings
assigned to them in the Indenture referred to below unless otherwise indicated.

1.             INTEREST.
Edison Mission Energy, a Delaware corporation (the “Company”), promises to pay
interest on the principal amount of this Note at _____% per annum ­­____, ____
until maturity and to pay the Liquidated Damages, if applicable, payable
pursuant to Section ___ of the Registration Rights Agreement referred to
below. The Company will pay interest and Liquidated Damages, if applicable,
semi-annually in arrears on _____ and _____ of each year, (each an “Interest
Payment Date”); provided that
if any such day is not a Business Day, then such payment will be made on the
next succeeding Business Day. Interest on this Note will accrue from the most
recent date to which interest has been paid or, if no interest has been paid,
from ______; provided that if there is no
existing Default in the payment of interest, and if this Note is authenticated
between a record date referred to on the face hereof and the next succeeding
Interest Payment Date, interest shall accrue from such next succeeding Interest
Payment Date; provided, further,
that the first Interest Payment Date in respect of this Note shall be ______. The
Company shall pay interest (including post-petition interest in any proceeding
under any Bankruptcy Law) on overdue principal at the rate that is equal to the
rate set forth on the face of this Note, and it shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest and Liquidated Damages, if any, (without regard to any
applicable grace periods) from time to time at the same rate to the extent
lawful. Interest will be computed on the basis of a 360-day year
consisting of twelve 30-day months.

2.             METHOD
OF PAYMENT. The Company will pay interest on this Note (except
defaulted interest) and Liquidated Damages, if applicable, to the Person who is
the registered Holder of this Note at the close of business on the ____ or
_____ next preceding the Interest Payment Date, even if this Note is canceled
after such record date and on or before such Interest Payment Date, except as
provided in Section 2.12 of the Indenture with respect to defaulted
interest. This Note will be payable as to principal, premium and Liquidated
Damages, if applicable, and interest by mailing a check for such to or upon the
written order of the registered Holder of this Note entitled thereto at its
last address as it appears on the Notes Register or, upon written application
to the Trustee (which shall be received by the Trustee prior to the record
date) by a Holder of $1,000,000 or more in aggregate principal amount of Notes,
by wire transfer of immediately available funds to an account maintained by
such Holder with a bank or other financial institution; provided, however,
that (subject to the provisions of Section 2.8 of the Indenture)
payment of principal of, and premium, if any, on any Note may be conditioned
upon presentation for payment of the certificate representing such Note. Such
payment shall be in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts.

 A-2
  
 

 

3.             PAYING
AGENT AND REGISTRAR. Initially, Wells Fargo Bank, National
Association, the Trustee under the Indenture, will act as Paying Agent and
Registrar. The Company may change any Paying Agent or Registrar without notice
to any Holder. The Company or any of its Subsidiaries may act in any such
capacity.

4.             INDENTURE.
The Company issued this Note under an Indenture, dated as of June 6, 2006
(the “Original Indenture”), between the Company and the Trustee, as
supplemented by the [ ] Supplemental Indenture, dated as of __________ ,
__________ (the “[ ] Supplemental Indenture”), between the Company and the
Trustee (the Original Indenture, as so supplemented, and as the same may be
amended, modified and further supplemented, the “Indenture”). The terms of this
Note include those stated in the Indenture and those made part of the Indenture
by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§
77aaa-77bbbb). This Note is subject to all such terms, and Holders are
referred to the Indenture and such Act for a statement of such terms. To the
extent any provision of this Note conflicts with the express provisions of the
Indenture, the provisions of the Indenture shall govern and be controlling. The
Notes are unsecured obligations of the Company[, and the series of Notes of
which this Note is a part is limited to $_____ million in aggregate principal
amount.] [the aggregate principal amount of the series of Notes of which this Note
is a part is unlimited.]

5.             REDEMPTION.

[Insert relevant provisions if the series of Notes is
redeemable pursuant to the applicable Series Supplemental Indenture]

6.             NOTICE
OF REDEMPTION. Notice of redemption will be mailed at least 30 days
but not more than 60 days before the redemption date to each Holder whose Notes
are to be redeemed at its last registered address. Subject to payment by the
Company of a sum sufficient to pay the amount due on redemption, interest on
the Notes ceases to accrue upon the date duly fixed for redemption of the
Notes.

7.             DENOMINATIONS,
TRANSFER, EXCHANGE. The Notes of this series are issuable only in
registered form without coupons in denominations of $2,000 and integral
multiples of $1,000 in excess thereof. The transfer of Notes may be registered
and Notes may be exchanged as provided in the Indenture. The Registrar and the
Trustee may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and the Company may require a Holder to pay
taxes and fees required by law or permitted by the Indenture. The Company need
not exchange or register the transfer of any Note or portion of a Note selected
for redemption, except for the unredeemed portion of any Note being redeemed in
part. Also, the Company need not exchange or register the transfer of any Notes
for a period of 15 days before a selection of Notes to be redeemed or during
the period between a record date and the corresponding Interest Payment Date.

8.             PERSONS
DEEMED OWNERS. The registered Holder of a Note may be treated as its
owner for all purposes.

 A-3
  
 

 

9.             AMENDMENT,
SUPPLEMENT. With the consent of the Holders of not less than a
majority in aggregate principal amount of the Notes at the time Outstanding,
evidenced as in the Indenture provided, the Indenture or any supplemental
indentures or the rights of the Holders of the Notes may be modified; provided that no such modification shall (a) change the
Stated Maturity of the principal of, or any installment of principal of or
interest on, any Note, or reduce the principal amount thereof, or reduce the
rate or extend the time of payment of interest thereon, or reduce any amount
payable on the redemption thereof or impair or affect the rights of any
Noteholder to institute suit for the enforcement of any payment on or with
respect to any Note or change the place or currency of payment of principal of,
or interest on, any Note, in each case without the consent of the Holder of
each Note so affected, or (b) without the consent of the Holders of all
Notes then outstanding, (i) reduce the aforesaid percentage of Notes the
consent of the Holders of which is required for any such modification, or the
percentage of Notes the consent of Holders of which is required for any waiver
provided for in the Indenture, (ii) change any obligation of the Company
to maintain an office or agency for payment of and transfer and exchange of the
Notes or (iii) make certain changes to provisions relating to the waiver
of past defaults or to the provisions for supplementing the Indenture with the
consent of the Holders.

10.           DEFAULTS
AND REMEDIES. Events of Default include: (i) default for 30
days in the payment when due of interest on the Notes; (ii) default in
payment when due of principal of or premium, if any, on the Notes when the same
becomes due and payable at maturity, upon redemption or otherwise, (iii) failure
by the Company for 90 days after notice to the Company by the Trustee or the
Holders of at least 25% in principal amount of the Notes then outstanding voting
as a single class to comply with certain other agreements in the Indenture or
the Notes; (iv) default under certain other agreements relating to
Indebtedness of the Company which default results in the acceleration of such
Indebtedness prior to its express maturity; (v) certain final judgments
for the payment of money that remain undischarged for a period of 90 days; and (vi) certain
events of bankruptcy or insolvency with respect to the Company. If any Event of
Default occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the then outstanding Notes may declare the principal of all
the Notes and the interest accrued thereon to be due and payable immediately. Notwithstanding
the foregoing, in the case of an Event of Default arising from certain events
of bankruptcy or insolvency, all outstanding Notes will become due and payable
without further action or notice. Holders may not enforce the Indenture or the
Notes except as provided in the Indenture. Holders of a majority in aggregate
principal amount of the Notes then outstanding by notice to the Trustee may on
behalf of the Holders of all of the Notes waive any past Default or Event of
Default except a Default (a)  in the payment of principal of, premium, if
any, or interest on, any of the Notes or (b) in respect of a covenant or
provision in the Indenture that cannot be modified or amended without the
consent of the Holders of each Note affected. The Company is required to
deliver to the Trustee annually a statement regarding compliance with the
Indenture, and the Company is required upon becoming aware of any Default or
Event of Default, to deliver to the Trustee a statement specifying such Default
or Event of Default.

11.           TRUSTEE
DEALINGS WITH COMPANY. The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the
Company or its Affiliates, and may otherwise deal with the Company or its
Affiliates, as if it were not the Trustee.

12.           NO
RECOURSE AGAINST OTHERS. A director, officer, employee, incorporator
or stockholder of the Company, as such, shall not have any liability for any
obligations of the Company under the Notes, the Indenture or any indenture
supplemental thereto or for any claim based on, in respect of, or by reason of,
such obligations or their creation. Each Holder by accepting a Note waives and
releases all such liability. The waiver and release are part of the
consideration for the issuance of the Notes.

 A-4
  
 

 

13.           AUTHENTICATION.
This Note shall not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent.

14.           ABBREVIATIONS.
Customary abbreviations may be used in the name of a Holder or an assignee,
such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties),
JT TEN (= joint tenants with right of survivorship and not as tenants in
common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

[15.          ADDITIONAL
RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND RESTRICTED DEFINITIVE NOTES.
In addition to the rights provided to Holders of Notes under the Indenture,
Holders of Restricted Global Notes and Restricted Definitive Notes shall have
all the rights set forth in the Registration Rights Agreement dated as of
__________, _____, between the Company and the parties named on the signature pages thereof,
or, in the case of Additional Notes, Holders of Restricted Global Notes and
Restricted Definitive Notes will have the rights set forth in one or more
registration rights agreement, if any, between the Company and the parties
named on the signature pages thereto (collectively, the “Registration
Rights Agreement”).]

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

17.           THIS NOTE AND THIS INDENTURE SHALL BE
GOVERNED BY THE LAW OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO THE CHOICE
OF LAW PROVISIONS THEREOF (OTHER THAN SECTION 5-1401 OF THE
NEW YORK GENERAL OBLIGATIONS LAW).

The Company will furnish to any Holder upon written
request and without charge a copy of the Indenture and/or the Registration
Rights Agreement. Requests may be made to:

Edison Mission Energy

18101 Von Karman Avenue

Suite 1700

Irvine, California 92612

Attention: Chief
Financial Officer

 A-5
  
 

 

ASSIGNMENT FORM

To assign this Note, fill in the form below:

	
  (I) or (we) assign and
  transfer this Note to:

  	
   

  
	
  `

  	
  (Insert
  assignee’s legal name)

  
	
   

  	
   

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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

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

  

 

	
  and irrevocably appoint

  	
   

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

  

 

	
  Date:

  	
   

  

 

	
  

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears on the face of this Note)

  

 

	
  Signature Guarantee*:

  	
   

  	
   

  	
   

  

 

* Participant in a
recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

 A-6
  
 

 

SCHEDULE OF
EXCHANGES OF INTERESTS IN THE GLOBAL NOTE*

The following exchanges
of a part of this Global Note for an interest in another Global Note or for a
Definitive Note, or exchanges of a part of another Global Note or Definitive
Note for an interest in this Global Note, have been made:

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Principal Amount

  	
   

  	
  Signature of

  	
   

  
	
   

  	
   

  	
  Amount of decrease in

  	
   

  	
  Amount of increase in

  	
   

  	
  of this Global Note

  	
   

  	
  authorized officer of

  	
   

  
	
   

  	
   

  	
  Principal Amount

  	
   

  	
  Principal Amount

  	
   

  	
  following such decrease

  	
   

  	
  Trustee or

  	
   

  
	
  Date of Exchange

  	
   

  	
  of this Global Note

  	
   

  	
  of this Global Note

  	
   

  	
  (or increase)

  	
   

  	
  Custodian

  	
   

  

 

*  This schedule should be
included only if the Note is issued in global form.

 A-7
  

 

EXHIBIT B

FORM OF CERTIFICATE OF TRANSFER

Edison Mission Energy

18101 Von Karman Avenue

Suite 1700

Irvine, California 92612

Wells Fargo Bank,
National Association

707 Wilshire Blvd, 17th Floor

Los Angeles, California  90017

Attention: Corporate Trust Administration

Re:  [   ]% Senior Notes due [           ]

Reference is hereby made to the Indenture, dated as of
June 6, 2006 and the [    ] Series Supplemental
Indenture, dated as of ___, ____) (together, the “Indenture”)
each between Edison Mission Energy, as issuer (the “Company”),
and Wells Fargo Bank, National Association, as trustee. Capitalized terms used
but not defined herein shall have the meanings given to them in the Indenture.

_______________, (the “Transferor”)
owns and proposes to transfer the Note[s] or interest in such Note[s] specified
in Annex A hereto, in the principal amount of $__________ in such Note[s] or
interests (the “Transfer”), to __________ (the “Transferee “), as further specified in Annex A hereto. In
connection with the Transfer, the Transferor hereby certifies that:

[CHECK ALL THAT APPLY]

1.             o  Check if Transferee will
take delivery of a beneficial interest in the 144A Global Note or a Restricted
Definitive Note Pursuant to Rule 144A. The Transfer is
being effected pursuant to and in accordance with Rule 144A under the
United States Securities Act of 1933, as amended (the “Securities Act”), and,
accordingly, the Transferor hereby further certifies that the beneficial
interest or Definitive Note is being transferred to a Person that the
Transferor reasonably believed and believes is purchasing the beneficial
interest or Definitive Note for its own account, or for one or more accounts
with respect to which such Person exercises sole investment discretion, and
such Person and each such account is a “qualified institutional buyer” within
the meaning of Rule 144A in a transaction meeting the requirements of Rule 144A;
and such Transfer is in compliance with any applicable blue sky securities laws
of any state of the United States. Upon consummation of the proposed Transfer
in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the 144A Global Note
and/or the Definitive Note and in the Indenture and the Securities Act.

 B-1
 

 

2.             o  Check if Transferee will
take delivery of a beneficial interest in the Regulation S Global Note or a
Definitive Note pursuant to Regulation S. The Transfer is being
effected pursuant to and in accordance with Rule 903 or Rule 904
under the Securities Act and, accordingly, the Transferor hereby further
certifies that (i) the Transfer is not being made to a person in the
United States and (x) at the time the buy order was originated, the
Transferee was outside the United States or such Transferor and any Person
acting on its behalf reasonably believed and believes that the Transferee was
outside the United States or (y) the transaction was executed in, on or
through the facilities of a designated offshore securities market and neither
such Transferor nor any Person acting on its behalf knows that the transaction
was prearranged with a buyer in the United States, (ii) no directed
selling efforts have been made in contravention of the requirements of Rule 903(b) or
Rule 904(b) of Regulation S under the Securities Act, (iii) the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act and (iv) if the proposed transfer is
being made prior to the expiration of the Restricted Period, the transfer is
not being made to a U.S. Person or for the account or benefit of a U.S. Person
(other than an Initial Purchaser). Upon consummation of the proposed transfer
in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will be subject to the restrictions on Transfer
enumerated in the Private Placement Legend printed on the Regulation S Global
Note and/or the Restricted Definitive Note and in the Indenture and the
Securities Act.

3.             o  Check and complete if
Transferee will take delivery of a beneficial interest in the IAI Global Note
or a Restricted Definitive Note pursuant to any provision of the Securities Act
other than Rule 144A or Regulation S. The Transfer is being
effected in compliance with the transfer restrictions applicable to beneficial
interests in Restricted Global Notes and Restricted Definitive Notes and
pursuant to and in accordance with the Securities Act and any applicable blue
sky securities laws of any state of the United States, and accordingly the
Transferor hereby further certifies that (check one):

(a)           o            such
Transfer is being effected pursuant to and in accordance with Rule 144
under the Securities Act;

or

(b)           o            such
Transfer is being effected to the Company or a subsidiary thereof; or

(c)           o            such
Transfer is being effected pursuant to an effective registration statement
under the Securities Act and in compliance with the prospectus delivery
requirements of the Securities Act; or

(d)           o            such
Transfer is being effected to an Institutional Accredited Investor and pursuant
to an exemption from the registration requirements of the Securities Act other
than Rule 144A, Rule 144, Rule 903 or Rule 904, and the
Transferor hereby further certifies that it has not engaged in any general
solicitation within the meaning of Regulation D under the Securities Act and the
Transfer complies with the transfer restrictions applicable to beneficial
interests in a Restricted Global Note or Restricted Definitive Notes and the
requirements of the exemption claimed, which certification is supported by (1) a
certificate executed by the Transferee in the form of Exhibit B-1
to the Indenture and (2) if such Transfer is in respect of a principal
amount of Notes at the time of Transfer of less than $250,000, an Opinion of
Counsel provided by the Transferor or the Transferee (a copy of which the
Transferor has attached to this certification), to the effect that such
Transfer is in compliance with the Securities Act. Upon consummation of the
proposed transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on
the IAI Global Note and/or the Restricted Definitive Notes and in the Indenture
and the Securities Act.

 B-2
 

 

4.             o  Check if Transferee will
take delivery of a beneficial interest in an Unrestricted Global Note or of an
Unrestricted Definitive Note.

(a)           o 
Check if Transfer is pursuant to Rule 144.
(i) The Transfer is being effected pursuant to and in accordance with Rule 144
under the Securities Act and in compliance with the transfer restrictions
contained in the Indenture and any applicable blue sky securities laws of any
state of the United States and (ii) the restrictions on transfer contained
in the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will no longer be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on
the Restricted Global Notes, on Restricted Definitive Notes and in the
Indenture.

(b)           o 
Check if Transfer is Pursuant to Regulation S.
(i) The Transfer is being effected pursuant to and in accordance with Rule 903
or Rule 904 under the Securities Act and in compliance with the transfer
restrictions contained in the Indenture and any applicable blue sky securities
laws of any state of the United States and (ii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act. Upon
consummation of the proposed Transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will no
longer be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Global Notes, on Restricted
Definitive Notes and in the Indenture.

(c)           o 
Check if Transfer is Pursuant to Other Exemption.
(i) The Transfer is being effected pursuant to and in compliance with an
exemption from the registration requirements of the Securities Act, other than Rule 144,
Rule 903 or Rule 904 and in compliance with the transfer restrictions
contained in the Indenture and any applicable blue sky securities laws of any
State of the United States and (ii) the restrictions on transfer contained
in the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will not be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the
Restricted Global Notes or Restricted Definitive Notes and in the Indenture.

 B-3
 

 

This certificate and the statements contained herein
are made for your benefit.

	
  

  	
   

  
	
   

  	
   

  	
  [Insert Name of
  Transferor]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	 

						

 

 B-4
 

 

ANNEX
A TO CERTIFICATE OF TRANSFER

1.             The Transferor owns and proposes to
transfer the following:

[CHECK
ONE]

(a)          o                                                        a
beneficial interest in the:

(i)            o            144A
Global Note (CUSIP ____); or

(ii)           o            Regulation
S Global Note (CUSIP _____); or

(iii)          o            IAI
Global Note (CUSIP_____); or

(b)           o            a
Restricted Definitive Note.

2.             After the Transfer the Transferee
will hold:

[CHECK
ONE]

(a)           o            a
beneficial interest in the:

(i)            o            144A
Global Note (CUSIP ____); or

(ii)           o            Regulation
S Global Note (CUSIP _____); or

(iii)          o            IAI
Global Note (CUSIP_____); or

(iv)          o            Unrestricted
Global Note (CUSIP _____); or

(b)           o            a
Restricted Definitive Note; or

(c)           o            an
Unrestricted Definitive Note,

in
accordance with the terms of the Indenture.

 B-5

 

EXHIBIT B-1

FORM OF CERTIFICATE FROM

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

Edison Mission Energy

18101 Von Karman Avenue

Suite 1700

Irvine, California 92612

Wells Fargo Bank,
National Association

707 Wilshire Blvd, 17th Floor

Los Angeles, California  90017

Attention: Corporate Trust Administration

Re: [ ]% Senior Notes due [ __________]

(CUSIP __________)

Reference is hereby made to the Indenture, dated as of
June 6, 2006 and the [    ] Series Supplemental
Indenture, dated as of ___, ____) (together, the “Indenture”)
each between Edison Mission Energy, as issuer (the “Company”),
and Wells Fargo Bank, National Association, as trustee. Capitalized terms used
but not defined herein shall have the meanings given to them in the Indenture.

In connection with our
proposed purchase of $____________ aggregate principal amount of:

(a) 
o               a beneficial interest in a Global
Note, or

(b) 
o               a Definitive Note,

we confirm that:

1.             We understand that any subsequent transfer of the Notes
or any interest therein is subject to certain restrictions and conditions set
forth in the Indenture and the undersigned agrees to be bound by, and not to
resell, pledge or otherwise transfer the Notes or any interest therein except
in compliance with, such restrictions and conditions and the Securities Act of
1933, as amended (the “Securities Act”).

2.             We understand that the offer and sale of the Notes have
not been registered under the Securities Act, and that the Notes and any
interest therein may not be offered or sold except as permitted in the
following sentence. We agree, on our own behalf and on behalf of any accounts
for which we are acting as hereinafter stated, that if we should sell the Notes
or any interest therein, we will do so only (A) to the Company or any
subsidiary thereof, (B) in accordance with Rule 144A under the
Securities Act to a “qualified institutional buyer” (as defined therein), (C) to
an institutional “accredited investor” (as defined below) that, prior to such
transfer, furnishes (or has furnished on its behalf by a U.S. broker-dealer) to
you and to the Company a signed letter substantially in the form of this letter
and, if such transfer is in respect of a principal amount of Notes at the time
of transfer of less than $250,000, an Opinion of Counsel in form reasonably
acceptable to the Company to the effect that such transfer is in compliance
with the Securities Act, (D) outside the United States in accordance with Rule 904
of Regulation S under the Securities Act, (E) pursuant to the provisions
of Rule 144(k) under the Securities Act or (F) pursuant to an
effective registration statement under the Securities Act, and we further agree
to provide to any Person purchasing the Definitive Note or beneficial interest
in a Global Note from us in a transaction meeting the requirements of clauses (A) through
(E) of this paragraph a notice advising such purchaser that resales
thereof are restricted as stated herein.

 1
 

 

3.             We understand that, on any proposed resale of the Notes
or beneficial interest therein, we will be required to furnish to you and the
Company such certifications, legal opinions and other information as you and
the Company may reasonably require to confirm that the proposed sale complies
with the foregoing restrictions. We further understand that the Notes purchased
by us will bear a legend to the foregoing effect.

4.             We are an institutional “accredited investor” (as
defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under
the Securities Act) and have such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of our investment
in the Notes, and we and any accounts for which we are acting are each able to
bear the economic risk of our or its investment.

5.             We are acquiring the Notes or beneficial interest
therein purchased by us for our own account or for one or more accounts (each
of which is an institutional “accredited investor”) as to each of which we
exercise sole investment discretion.

You
and the Company are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceedings or official inquiry with respect to the
matters covered hereby.

	
  

  	
   

  	
   

  
	
   

  	
   

  	
  [Insert Name of
  Accredited Investor]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
  Dated:

  	
   

  	
   

  	 

						

 

 2

 

EXHIBIT C

FORM OF CERTIFICATE OF EXCHANGE

Edison Mission Energy

18101 Von Karman Avenue

Suite 1700

Irvine, California 92612

Wells Fargo Bank,
National Association

707 Wilshire Blvd, 17th Floor

Los Angeles, California  90017

Attention: Corporate Trust Administration

Re: [ ]% Senior Notes due [ __________]

(CUSIP __________)

Reference is hereby made to the Indenture, dated as of
June 6, 2006 and the [    ] Series Supplemental
Indenture, dated as of ___, ____) (together, the “Indenture”)
each between Edison Mission Energy, as issuer (the “Company”),
and Wells Fargo Bank, National Association, as trustee. Capitalized terms used
but not defined herein shall have the meanings given to them in the Indenture.

____________________, (the “Owner”)
owns and proposes to exchange the Note[s] or interest in such Note[s] specified
herein, in the principal amount of $__________in such Note[s] or interests (the
“Exchange”). In connection with the
Exchange, the Owner hereby certifies that:

1.             Exchange of Restricted
Definitive Notes or Beneficial Interests in a Restricted Global Note for
Unrestricted Definitive Notes or Beneficial Interests in an Unrestricted Global
Note.

(a)           o  Check if Exchange is from
beneficial interest in a Restricted Global Note to beneficial interest in an
Unrestricted Global Note. In connection with the Exchange of the
Owner’s beneficial interest in a Restricted Global Note for a beneficial
interest in an Unrestricted Global Note in an equal principal amount, the Owner
hereby certifies (i) the beneficial interest is being acquired for the
Owner’s own account without transfer, (ii) such Exchange has been effected
in compliance with the transfer restrictions applicable to the Global Notes and
pursuant to and in accordance with the United States Securities Act of 1933, as
amended (the “Securities Act”), (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the beneficial interest in an Unrestricted Global Note is being
acquired in compliance with any applicable blue sky securities laws of any
state of the United States.

 C-1
 

 

(b)           o  Check if Exchange is from
beneficial interest in a Restricted Global Note to Unrestricted Definitive Note.
In connection with the Exchange of the Owner’s beneficial interest in a
Restricted Global Note for an Unrestricted Definitive Note, the Owner hereby
certifies (i) the Definitive Note is being acquired for the Owner’s own
account without transfer, (ii) such Exchange has been effected in
compliance with the transfer restrictions applicable to the Restricted Global
Notes and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the Definitive Note is being acquired in compliance with any
applicable blue sky securities laws of any state of the United States.

(c)           o  Check if Exchange is from
Restricted Definitive Note to beneficial interest in an Unrestricted Global
Note. In connection with the Owner’s Exchange of a Restricted Definitive
Note for a beneficial interest in an Unrestricted Global Note, the Owner hereby
certifies (i) the beneficial interest is being acquired for the Owner’s
own account without transfer, (ii) such Exchange has been effected in
compliance with the transfer restrictions applicable to Restricted Definitive
Notes and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the beneficial interest is being acquired in compliance with any
applicable blue sky securities laws of any state of the United States.

(d)           o  Check if Exchange is from
Restricted Definitive Note to Unrestricted Definitive Note. In
connection with the Owner’s Exchange of a Restricted Definitive Note for an
Unrestricted Definitive Note, the Owner hereby certifies (i) the
Unrestricted Definitive Note is being acquired for the Owner’s own account
without transfer, (ii) such Exchange has been effected in compliance with
the transfer restrictions applicable to Restricted Definitive Notes and
pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the Unrestricted Definitive Note is being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

2.             Exchange of Restricted
Definitive Notes or Beneficial Interests in Restricted Global Notes for
Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes.

(a)           o  Check if Exchange is from
beneficial interest in a Restricted Global Note to Restricted Definitive Note.
In connection with the Exchange of the Owner’s beneficial interest in a
Restricted Global Note for a Restricted Definitive Note with an equal principal
amount, the Owner hereby certifies that the Restricted Definitive Note is being
acquired for the Owner’s own account without transfer. Upon consummation of the
proposed Exchange in accordance with the terms of the Indenture, the Restricted
Definitive Note issued will continue to be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted
Definitive Note and in the Indenture and the Securities Act.

 C-2
 

 

(b)           o  Check if Exchange is from
Restricted Definitive Note to beneficial interest in a Restricted Global Note.
In connection with the Exchange of the Owner’s Restricted Definitive Note for a
beneficial interest in the [check one] o
144A Global Note,  o
Regulation S Global Note, or o IAI Global
Note, with an equal principal amount, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without
transfer and (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to the Restricted Global Notes and pursuant to
and in accordance with the Securities Act, and in compliance with any
applicable blue sky securities laws of any state of the United States. Upon
consummation of the proposed Exchange in accordance with the terms of the
Indenture, the beneficial interest issued will be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the
Restricted Global Note and in the Indenture and the Securities Act.

This certificate and the
statements contained herein are made for your benefit and the benefit of the
Company.

	
  

  	
   

  	
   

  
	
   

  	
   

  	
  [Insert Name of Transferor]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
  Dated:

  	
   

  	
   

  	 

						

 

 C-3

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