Document:

exv10w2

 

EXHIBIT 10.2

RELEASE AND AMENDED EMPLOYMENT AGREEMENT

     This Release and Amended Employment Agreement (the “Agreement”) is entered into by and between
Mitchell I. Rosen (hereinafter “Rosen”), on the one hand and Bell Industries Inc., on the other hand
(hereinafter collectively referred to as the “Company”).

Recitals

     A. WHEREAS, Rosen is employed by the Company as its Chief Financial Officer;

     B. WHEREAS, Rosen and the Company have decided to modify their existing employment
relationship, effective January 8, 2007 through January 26, 2007 and thereafter enter into a
certain period during which Rosen will serve the Company as a consultant;

     NOW THEREFORE, in consideration of the covenants and promises contained in this Agreement and
other good and valuable consideration, it is hereby agreed among the parties as follows:

Agreement

     1. Conversion of Employment Relationship/Termination of Agreements.

          1.1 Effective January 8, 2007, Rosen shall no longer serve the Company as its Chief Financial
Officer or Officer of the Company. Rather, for the period beginning January 8, 2007 and ending January 26, 2007 (the
“Modified Employment Arrangement Period”), Rosen shall serve the Company as a full-time employee in
the capacity of advisor to the Chief Executive Officer.

          1.2 Effective January 26, 2007 (the “Separation Date”), Rosen’s employment relationship with
the Company shall end and, subject to Paragraph 1.3, the Severance Agreement entered into by and
between Rosen and the Company, dated as of January 13, 2005 and the Amended Severance Agreement,
dated as of August 16, 2006 (collectively the “Severance Agreement”), shall terminate and be of no
further force or effect. On the Separation Date, the Company shall pay Rosen any accrued but
unpaid salary through the Separation Date, any accrued but unpaid vacation through the Separation
Date in accordance with the Company’s vacation policy, any and all amounts contributed to the
Executive Compensation Deferral Plans, in accordance with the payment provisions of those plans,
and any unreimbursed business expenses incurred on or prior to the Separation Date, subject to
submission by Rosen of documentation in accordance with the Company’s reimbursement policy.

          1.3
Except for this Agreement, the Statement of Confidentiality dated as of the date hereof and
being executed concurrently herewith (the “Confidentiality Agreement”), the Option Agreement
(defined below), and as set forth under Paragraph 6 of the January 13, 2005 Severance Agreement,
all other agreements between the Company and Rosen shall terminate and be of no further force or
effect as of the Separation Date.

     2. Modified Employment Arrangement. Provided that Rosen executes this Agreement and
does not revoke this Agreement as set forth in Paragraph 11 below, the Company shall continue to
employ Rosen as an advisor to the Company’s Chief Executive Officer during the Modified

 

 

Employment Arrangement Period. As an advisor to the Chief Executive Officer, Rosen shall
perform tasks regarding all financial aspects of the Company including, but not limited to,
advising on the Company’s 10-Q and other similar filings. In exchange for Rosen’s services to the
Company in this advisory role during the Modified Employment Arrangement Period, the Company shall
pay to Rosen his current base salary (at the level of $170,000 annually) on a pro rata basis.
During the Modified Employment Arrangement Period, Rosen shall provide his services exclusively to
the Company and shall not provide services of any nature to any other person or entity without the
Company’s prior written consent.

     3. Consulting Arrangement. From January 27, 2007 through April 15, 2007 (the
“Part-Time Consulting Period”), Rosen shall make himself available to the Company on an as needed
basis (not to exceed 10 hours per month without the mutual consent of both Rosen and the Company)
to assist the Company in matters that may arise in which Rosen’s expertise and/or first hand
knowledge may be required. Whether the Company contacts Rosen and requests Rosen’s assistance
during the Part-Time Consulting Period shall remain in the sole discretion of the Company. Other
than the compensation and benefits set forth in Paragraph 5, below, and the other promises made by
the Company herein, Rosen shall not receive any compensation or benefits for his agreement to
provide services during the Part-Time Consulting Period other than
reimbursement for reasonable business expenses incurred while
performing his Part-Time Consulting duties.

     4. Equity Awards/No Accrual of Other Benefits.

          (a) During the term of his employment with the Company, Rosen was granted stock options (the
"Option”) to purchase shares of the Company’s Common Stock. The grant was made pursuant and
subject to the terms and conditions of the Company’s 1994 Stock Option Plan (the “Plan”), copies of
which plans were previously provided to Rosen. The Option grant was made pursuant to an Employee
Stock Option Agreement dated June 3, 2002 (the “Option Agreement”).

          (b) Rosen acknowledges and agrees that except as set forth in this Paragraph 4, he is not
entitled to, nor shall he make any claim for, any other equity interest in the Company of any type
whatsoever, including, but not limited to, any other stock option, any shares of any class or
series of capital stock in the Company or any security of the Company. Rosen further acknowledges
and agrees that he waives any claim of right to any other equity interest in the Company not
specifically set forth in this Paragraph 4.

          (c) Rosen agrees, to the maximum extent allowed by law: (i) that he shall be solely liable for
and shall pay any and all taxes, costs, interest, assessments, penalties, damages, attorney’s fees
or other losses to which he is or may be subject by reason of the payments by the Company to him
identified in Paragraph 5 of this Agreement, and by reason of the equity interest identified in
Paragraph 4 of this Agreement; (ii) to indemnify and hold the Company Releasees (defined below)
harmless from any and all taxes, costs, assessment, interest, penalties, damages, attorney’s fees
or other losses to which the Company Releasees, or any of them, are or may be subject by reason of
such payments, interest, reimbursements and/or loans, including, but not limited to, any claim or
claims against the Company Releasees, for failure to withhold or under withholding of taxes; (iii)
not to seek or make any claim or claims against the Company Releasees, or any of them, for
contribution, indemnity, compensation, recompense, damages, taxes, costs, interest, penalties,
attorneys’ fees or other losses, if a determination is made that withholdings should have been made
from any payments to Rosen; and (iv) to assume responsibility for contesting and defending any
claim or assertion that withholding should have been made from any payment or other interest
provided, or that the Company Releasees, or any of them, owe taxes thereon for any reason, and to
cooperate fully in the defense of any such claim or claims which is/are brought against the Company
Releases, or any of them.

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     5. Further Consideration For Rosen’s Agreement Hereunder. Provided that Rosen
executes this Agreement (and does not revoke it), and provided that Rosen abides by all of the
terms herein, specifically including but not limited to Paragraphs 3, 16, 19 and 20, then the
Company shall provide Rosen with the following:

          (a) A lump sum amount equal to eight (8) months of Rosen’s base salary compensation (at the
rate Rosen was being paid by the Company as of December 31, 2006), which shall be paid within
five business days of the “Separation Date” (i.e., February 2, 2007).

          (b) A lump sum amount equal to $60,000, which shall represent a bonus and of which $35,000 has
previously been paid, such that the lump sum amount owing shall be $25,000. This lump sum shall be
paid within five business day of the end of the “Part-Time Consulting Period” (i.e., April 20,
2007).

          (c) Payment of COBRA continuation coverage for Rosen and Rosen’s eligible family members
beginning February 1, 2007 and ending January 31, 2008, provided however that should Rosen become
re-employed with another employer and become eligible to receive group health insurance coverage
under another employer’s plan(s), Rosen must immediately report said coverage to the Company and
the Company’s obligations under this Paragraph 5(c) shall immediately terminate.

     6. Release of Known and Unknown Claims by Rosen.

          (a) In exchange for the agreements contained herein, Rosen agrees unconditionally and forever
to release and discharge the Company and its affiliated, related, parent and subsidiary
corporations, as well as their respective attorneys, agents, representatives, partners, joint
ventures, successors, assigns, insurers, employees, officers, and directors (“Company Releasees”)
from any and all claims, suits, rights, actions, complaints, demands, agreements, contracts, causes
of action, and liabilities of any kind or nature which he may now have, or ever have, whether known
or unknown, including any claims, causes of action or demands of any nature arising out of or in
any way relating to his employment with, or separation from the Company on or before the date of
the execution of this Agreement.

          (b) This release specifically includes, but is not limited to, any claims for fraud; breach of
contract; breach of implied covenant of good faith and fair dealing; inducement of breach;
interference with contract; wrongful or unlawful discharge or demotion; violation of public policy;
assault and battery (sexual or otherwise); invasion of privacy; intentional or negligent infliction
of emotional distress; intentional or negligent misrepresentation; conspiracy; failure to pay
wages, benefits, vacation pay, severance pay, attorneys’ fees, or other compensation of any sort;
retaliation, discrimination or harassment on the basis of age, race, color, sex, gender, national
origin, ancestry, religion, disability, handicap, medical condition, marital status, sexual
orientation or any other protected category; any claim under Title VII of the Civil Rights Act of
1964, as amended, the Americans with Disabilities Act, the Age Discrimination in Employment Act, as
amended by the Older Workers Benefit Protection Act; the California Fair Employment and Housing
Act; Sarbanes-Oxley, or Section 1981 of Title 42 of the United States Code; violation of COBRA;
violation of any safety and health laws, statutes or regulations; violation of ERISA; violation of
the Internal Revenue Code; or any other wrongful conduct, based upon events occurring prior to the
date of execution of this Agreement.

          (c) Rosen acknowledges that he may hereafter discover facts different from or in addition to
those he now knows or believes to be true with respect to the claims, suits, rights, actions,
complaints, demands, agreements, contracts, causes of action, and liabilities of any nature
whatsoever

3

 

that are the subject of the release set forth in this Agreement, and Rosen expressly agrees to
assume the risk of the possible discovery of additional or different facts, and agrees that this
Agreement shall be and remain effective in all respects regardless of such additional or different
facts.

          (d) Rosen further agrees knowingly to waive the provisions and protections of Section 1542 of
the California Civil Code, which reads:

     A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO
EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF KNOWN BY HIM OR HER, MUST
HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

          (e) Notwithstanding the provisions of Section 1542, and for the purpose of implementing a full
and complete release and discharge of the Company Releasees, Rosen expressly acknowledges that this
Agreement is intended to include and does include in its effect, without limitation, all claims
which Rosen does not know or suspect to exist in his favor against the Company Releasees, or any of
them, at the moment of execution hereof, and that this Agreement expressly contemplates the
extinguishment of all such claims.

          (f) This release of known and unknown claims shall be construed as broadly as possible under
applicable law but shall not include any claim for indemnification under California Labor Code
Section 2802 or California Corporations Code Section 317 or any other claim the release of which
would violate California or federal statutory law or the public policy of the State of California.

          (g) Nothing in this release of known or unknown claims shall be construed as prohibiting Rosen
from making a future claim with the Equal Employment Opportunity Commission or any similar state
agency including, but not limited to the California Department of Fair Employment and Housing
provided, however, that should Rosen pursue such an administrative action against the Company,
Rosen agrees and acknowledges that he will not seek, nor shall he be entitled to recover, any
monetary damages from any such proceeding.

     7. Indemnification. Rosen expressly agrees to indemnify and hold the Company
Releasees, and any of them, harmless from any claim, cause of action, complaint, demand, penalty,
damage, attorney’s fees or other losses to which the Company Releasees, or any of them, are subject
to liability, arising from, related to or any in way connected with any fraudulent, tortious and/or
criminal conduct engaged in by Rosen at any time during his employment with the Company. As a
partial remedy hereunder, in the event Rosen is found by any body having jurisdiction to have
engaged in any fraudulent, tortious or criminal conduct at any time during his employment, the
Part-Time Consulting Period hereunder shall terminate with no further liability or obligations of
the Company whatsoever including no obligation by the Company to pay the sum set forth in Paragraph
5(b), above.

     8. Assistance in Legal Actions. In the event the Company is or becomes involved in
any legal action relating to events which occurred or alleged to have occurred while Rosen was
rendering services to the Company or about which Rosen possesses any information, Rosen agrees to
assist in the preparation, prosecution or defense of any case involving the Company, including,
without limitation, executing truthful declarations or documents or providing information requested
by the Company and attending and/or testifying truthfully at deposition(s) or at trial.

4

 

     9. Knowing and Voluntary. Each party represents and agrees that the party is entering
into this Agreement knowingly and voluntarily. Each party affirms that no promise or inducement was
made to cause the party to enter into this Agreement, other than what is promised to the party in
this Agreement. Each party further confirms that the party has not relied upon any other statement
or representation by anyone other than what is in this Agreement as a basis for the party’s
agreement.

     10. 21 Days to Execute The Agreement. Rosen expressly acknowledges that he has been
provided twenty-one (21) days to consider this Agreement and that he was informed that he had the
right to consult with counsel regarding this Agreement, and that he has had the opportunity to
consult with counsel. To the extent that Rosen has taken fewer than twenty-one (21) days to
consider this Agreement, Rosen acknowledges that he had sufficient time to consider the Agreement
and to consult with counsel and that he does not desire additional time.

     11. 7 Days To Revoke The Agreement. This Agreement is revocable by Rosen for a
period of seven calendar days following the execution of this Agreement. The revocation must be in
writing, must specifically revoke this Agreement, and must be received by Fred Parker via facsimile
at (317) 715-6780, prior to the eighth calendar day following the execution of this Agreement.
This Agreement becomes effective, enforceable and irrevocable on the eighth calendar day following
Rosen’s execution of this Agreement.

     12. Return of Property. Upon the conclusion of the Part-Time Consulting Period, Rosen
agrees to return to the Company all property of the Company which Rosen has in his custody or
control such as office equipment, forms, manuals, documents of client files, computer disks,
personnel files, or other confidential or proprietary materials of the Company provided however
that Rosen may retain possession of the laptop computer, docking station and printer provided to
him by the Company. By signing this Agreement, Rosen hereby certifies that he will not retain
possession of any of the Company’s property, including, but not limited to the original or a copy
of the materials outlined in this Paragraph, except as expressly set forth herein.

     13. No Admission of Liability. This Agreement does not constitute an admission of any
kind by the Company or Rosen. The parties hereto desire to resolve any potential disputes in an
amicable fashion and have entered into this Agreement with the desire to forever resolve between
them those matters described in this Agreement.

     14. Attorneys’ Fees. The prevailing party in any proceeding brought to enforce the
terms of this Agreement shall be entitled to recover from the other party all damages, costs and
expenses, including with limitations, attorneys’ and arbitrator’s fees, incurred as a result of
said action.

     15. Modification. No amendments to this Agreement will be valid unless written and
signed by Rosen and the Company’s President or the President’s designee.

     16. Noncompetition/Nonsolicitation/Noninterference.

          (a) Rosen agrees that during the Modified Employment Arrangement Period and during the
Part-Time Consulting Period, without the prior written consent of the Company, he shall not,
through a corporation, partnership, limited liability company, consulting arrangement or any other
form of business entity, in any capacity, including but not limited to as an employee, officer,
director, shareholder, partner, member, owner or otherwise, in any state or territory of the United
States, engage in any of the lines of business conducted by the Company.

5

 

          (b) Rosen also agrees that during the Modified Employment Arrangement Period and during the
Part-Time Consulting Period and for four months thereafter, Rosen shall not:

               (i) Directly or indirectly solicit the employment of any person who is then or has been within
the month prior to the time of such action, an employee the Company or any of its affiliates or
subsidiaries; or

               (ii) Make any public statement concerning the Company, any of its affiliates or subsidiaries,
or concerning Rosen’s employment with or Rosen’s modified employment arrangement or consulting
arrangement with the Company, unless such public statement has been previously approved by the
Company, except as may be required by law; or

               (iii) Induce, attempt to induce or knowingly encourage any Customer, supplier, vendor,
contractor, or sales agent of the Company or any of its affiliates or subsidiaries to divert any
business or income from the Company or any of its affiliates or subsidiaries or to stop or alter
the manner in which the Customer, supplier, vendor, contractor, or sales agent is or are then doing
business with the Company or any of its affiliates or subsidiaries. The term “Customer” shall mean
any individual or business that was or is a customer or client of, or one that was or is a party in
a selling agreement with, or whose business was actively solicited by, the Company or any of its
affiliates or subsidiaries at any time, regardless of whether such customer was generated, in whole
or in part, by Rosen’s efforts.

          (c) Each party hereto acknowledges that the potential restrictions on Rosen’s future
activities imposed by the covenants in Paragraph 16 are reasonable in both duration and scope and
in all other respects. In the event that the provisions of Paragraph 16 should ever be deemed to
exceed the duration or scope permitted by applicable law, then such provisions shall be reformed to
the maximum time, scope or other limitation, as the case may be, permitted by applicable law, and
each party agrees that the restrictions and prohibitions contained herein shall be effective to the
fullest extent allowed under applicable law in such jurisdiction.

          (d) Rosen understands and agrees that the consideration he is receiving in connection with
this agreement is adequate consideration to support the covenants set forth in this Agreement.
Rosen further understands and agrees that this Paragraph 16 is a material term of this Agreement.

     17. Specific Performance. Rosen acknowledges that in the event of breach or
threatened breach by Rosen of the terms of Paragraph 16 hereof, the Company could suffer
significant and irreparable harm that could not be satisfactorily compensated in monetary terms,
and that the remedies at law available to the Company may otherwise be inadequate and the Company
shall be entitled, in addition to any other remedies to which it may be entitled to under law or in
equity, to specific performance of this Agreement by Rosen including the immediate ex parte
issuance, without bond, of a temporary restraining order enjoining Rosen from any such violation or
threatened violation of this Agreement and to exercise such remedies cumulatively or in conjunction
with all other rights and remedies provided by law and not otherwise limited by this Agreement.
Rosen hereby acknowledges and agrees that the Company shall not be required to post bond as a
condition to obtaining or exercising any such remedies, and Rosen hereby waives any such
requirement or condition. Rosen also specifically acknowledges that the issuance of a temporary
restraining order may be requested by the Company through the dispute resolution procedure set
forth in Paragraph 26, below.

     18. Entire Agreement/Integration. This Agreement, the Option Agreement, the
Confidentiality Agreement, and the ongoing obligations of the Severance Agreement discussed above,

6

 

constitute the entire agreement between Rosen and the Company concerning the terms of Rosen’s
employment with and separation from the Company and the compensation related thereto, and this
Agreement constitutes the entire agreement between Rosen and the Company concerning the terms and
conditions of Rosen’s consulting arrangement with the Company. All prior discussions and
negotiations have been and are merged and integrated into, and are superseded by, this Agreement
and those agreements referenced herein. The parties to this Agreement each acknowledge that no
representations, inducements, promises, agreements or warranties, oral or otherwise, have been made
by them, or anyone acting on their behalf, which are not embodied in this Agreement, the Option
Agreement, as amended hereby, and the Confidentiality Agreement, and that they have not executed
this Agreement in reliance on any such representation, inducement, promise, agreement or warranty.

     19. Non-Disparagement. Rosen agrees that he will not disparage or otherwise make
negative remarks to any person or entity regarding (a) the Company, (b) the Company’s owners,
agents, representatives, attorneys, accountants, employees, officers or directors, or (c) the
Company’s current or potential products, services, plans, strategies, operations, business or
financial condition. Rosen understands and agrees that this Paragraph is a material term of this
Agreement.

     20. Confidentiality. Rosen expressly agrees to hold in strict confidence and not to
disclose, either directly or indirectly, to anyone other than Rosen’s attorney anything regarding
the status of the Company’s search for a new Chief Financial Officer. Rosen understands and agrees
that this Paragraph is a material term of this Agreement.

     21. No Assignment. Rosen represents and warrants that he has made no assignment, and
will make no assignment, of any claim, right of action or any right of any kind whatsoever,
embodied in any of the claims released herein, and that no other person or entity of any kind had
or has any interest in any of the claims, demands, obligations, actions, causes of action, debts,
liabilities, rights, contracts, damages, attorneys’ fees, costs, expenses or losses released
herein.

     22. No Waiver. Failure to insist on compliance with any term, covenant or condition
contained in this Agreement shall not be deemed a waiver of that term, covenant or condition, nor
shall any waiver or relinquishment of any right contained in this Agreement at any one time or more
times be deemed a waiver or relinquishment of any right at any other time or times.

     23. Successors and Assigns. This Agreement may not be assigned by the Executive, but
may be assigned by the Company to any successor to its business and will inure to the benefit of
and be binding upon any such successor.

     24. Severability. Should any portion, word, clause, phrase, sentence or paragraph of
this Agreement be declared void of unenforceable, such portion may be considered and independent
and severable from the remainder, the validity of which shall remain unaffected.

     25. Representations and Warranties. Both parties to this Agreement represent and
warrant that this Agreement in all respects has been voluntarily and knowingly executed by them
after having received independent legal advice, if they desired, from attorneys of their choice.
Both parties also represent and warrant that they have carefully read this Agreement and the
contents hereof are known and understood by them.

     26. Choice of Law. This Agreement has been negotiated and executed in the State of
California and shall in all respects be interpreted, enforced and governed in accordance with the
laws of California. After execution of this Agreement, any dispute regarding enforcement or breach
of this

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Agreement, or any aspect of Rosen’s employment with the Company or the cessation of such
employment, or the consulting arrangement set forth herein, will be submitted to final and binding
arbitration pursuant to the National Rules for the Resolution of Employment Disputes of the
American Arbitration Association (“AAA”) in Los Angeles County, California, as the exclusive remedy
for such claim or dispute. In any such arbitration, discovery may be conducted pursuant to
applicable California law. The arbitrator shall issue a written opinion and shall have full
authority to award all remedies which would be available in court. Judgment upon the award
rendered by the AAA arbitrator may be entered in any court having jurisdiction thereof.

     27. Publicity. To the extent the Company issues a press release regarding the
termination of Rosen’s employment, it shall provide a copy of such press release to Rosen prior to
its release.

     28. Joint Preparation. The parties acknowledge that this Agreement was jointly
prepared by them, by and through their respective legal counsel, and any uncertainty or ambiguity
existing herein shall not be interpreted against any of the parties, but otherwise according to the
application of the rules on interpretation of contracts.

* * *

     PLEASE READ CAREFULLY. THIS AGREEMENT CONTAINS A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.
THE UNDERSIGNED AGREE TO THE TERMS OF THIS AGREEMENT AND VOLUNTARILY ENTER INTO IT WITH THE INTENT
TO BE BOUND THEREBY.

	 	 	 	 	 
	 	 	 
	Date: January 4, 2007 	/s/
Mitchell I. Rosen
 	 
	 	Mitchell I. Rosen 	 
	 	 	 
	 
	Date: January 5, 2007 	BELL INDUSTRIES INC.

 	 
	 	By:  	/s/ John Fellows
 	 
	 	 	Name:  	John Fellows 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

8exv4w1

 

Exhibit
4.1

BAY APARTMENT COMMUNITIES, INC.

TO

STATE STREET BANK AND TRUST COMPANY

Trustee

 

Indenture

Dated as of January 16, 1998

 

Senior Debt Securities

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	RECITALS OF THE COMPANY
	 	 	1	 
	ARTICLE ONE — DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 	 	1	 
	SECTION 101. Definitions
	 	 	1	 
	SECTION 102. Compliance Certificates and Opinions
	 	 	11	 
	SECTION 103. Form of Documents Delivered to Trustee
	 	 	11	 
	SECTION 104. Acts of Holders
	 	 	12	 
	SECTION 105. Notices, etc., to Trustee and Company
	 	 	14	 
	SECTION 106. Notice to Holders: Waiver
	 	 	14	 
	SECTION 107. Counterparts; Effect of Headings and Table of Contents
	 	 	15	 
	SECTION 108. Successors and Assigns
	 	 	15	 
	SECTION 109. Severability Clause
	 	 	15	 
	SECTION 110. Benefits of Indenture
	 	 	15	 
	SECTION 111. Governing Law
	 	 	16	 
	SECTION 112. Legal Holidays
	 	 	16	 
	SECTION 113. Immunity of Stockholders, Directors, Officers and Agents of the Company
	 	 	16	 
	SECTION 114. Conflict with Trust Indenture Act
	 	 	16	 
	ARTICLE TWO — SECURITIES FORMS
	 	 	17	 
	SECTION 201. Forms of Securities
	 	 	17	 
	SECTION 202. Form of Trustee’s Certificate of Authentication
	 	 	17	 
	SECTION 203. Securities Issuable in Global Form
	 	 	17	 
	ARTICLE THREE — THE SECURITIES
	 	 	19	 
	SECTION 301. Amount Unlimited; Issuable in Series
	 	 	19	 
	SECTION 302. Denominations
	 	 	22	 
	SECTION 303. Execution, Authentication, Delivery and Dating
	 	 	22	 
	SECTION 304. Temporary Securities
	 	 	25	 
	SECTION 305. Registration, Registration of Transfer and Exchange
	 	 	27	 
	SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities
	 	 	30	 
	SECTION 307. Payment of Interest; Interest Rights Preserved
	 	 	32	 
	SECTION 308. Persons Deemed Owners
	 	 	34	 
	SECTION 309. Cancellation
	 	 	35	 
	SECTION 310. Computation of Interest
	 	 	35	 
	ARTICLE FOUR — SATISFACTION AND DISCHARGE
	 	 	35	 
	SECTION 401. Satisfaction and Discharge of Indenture
	 	 	35	 
	SECTION 402. Application of Trust Funds
	 	 	37	 
	ARTICLE FIVE — REMEDIES
	 	 	37	 
	SECTION 501. Events of Default
	 	 	37	 
	SECTION 502. Acceleration of Maturity; Rescission and Annulment
	 	 	39	 
	SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	40	 
	SECTION 504. Trustee May File Proofs of Claim
	 	 	40	 

(i)

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 505. Trustee May Enforce Claims Without Possession of Securities or
Coupons
	 	 	41	 
	SECTION 506. Application of Money Collected
	 	 	42	 
	SECTION 507. Limitation on Suits
	 	 	42	 
	SECTION 508. Unconditional Right of Holders to Receive Principal, Premium or Make-Whole
Amount, if any, and Interest
	 	 	43	 
	SECTION 509. Restoration of Rights and Remedies
	 	 	43	 
	SECTION 510. Rights and Remedies Cumulative
	 	 	43	 
	SECTION 511. Delay or Omission Not Waiver
	 	 	43	 
	SECTION 512. Control by Holders of Securities
	 	 	43	 
	SECTION 513. Waiver of Past Defaults
	 	 	44	 
	SECTION 514. Waiver of Usury, Stay or Extension Laws
	 	 	44	 
	SECTION 515. Undertaking for Costs
	 	 	45	 
	ARTICLE SIX — THE TRUSTEE
	 	 	45	 
	SECTION 601. Notice of Defaults
	 	 	45	 
	SECTION 602. Certain Rights of Trustee
	 	 	45	 
	SECTION 603. Not Responsible for Recitals or Issuance of Securities
	 	 	47	 
	SECTION 604. May Hold Securities
	 	 	47	 
	SECTION 605. Money Held in Trust
	 	 	48	 
	SECTION 606. Compensation and Reimbursement
	 	 	48	 
	SECTION 607. Corporate Trustee Required; Eligibility; Conflicting Interests
	 	 	48	 
	SECTION 608. Resignation and Removal; Appointment of Successor
	 	 	49	 
	SECTION 609. Acceptance of Appointment by Successor
	 	 	50	 
	SECTION 610. Merger, Conversion, Consolidation or Succession to Business
	 	 	51	 
	SECTION 611. Appointment of Authenticating Agent
	 	 	52	 
	SECTION 612. Certain Duties and Responsibilities of the Trustee.
	 	 	53	 
	ARTICLE SEVEN — HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

	 	 	55	 
	SECTION 701. Disclosure of Names and Addresses of Holders
	 	 	55	 
	SECTION 702. Reports by Trustee
	 	 	55	 
	SECTION 703. Reports by Company
	 	 	55	 
	SECTION 704. Company to Furnish Trustee Names and Addresses of Holders
	 	 	56	 
	ARTICLE EIGHT — CONSOLIDATION, MERGER, SALE, LEASE OR CONVEYANCE
	 	 	56	 
	SECTION 801. Consolidations and Mergers of Company and Sales, Leases and Conveyances
Permitted Subject to Certain Conditions
	 	 	56	 
	SECTION 802. Rights and Duties of Successor Corporation
	 	 	56	 
	SECTION 803. Officers’ Certificate and Opinion of Counsel
	 	 	57	 
	ARTICLE NINE — SUPPLEMENTAL INDENTURES
	 	 	57	 
	SECTION 901. Supplemental Indentures Without Consent of Holders
	 	 	57	 
	SECTION 902. Supplemental Indentures with Consent of Holders
	 	 	59	 
	SECTION 903. Execution of Supplemental Indentures
	 	 	60	 
	SECTION 904. Effect of Supplemental Indentures
	 	 	60	 
	SECTION 905. Conformity with Trust Indenture Act
	 	 	60	 
	SECTION 906. Reference in Securities to Supplemental Indentures
	 	 	60	 

(ii)

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE TEN — COVENANTS
	 	 	61	 
	SECTION 1001. Payment of Principal, Premium or Make-Whole Amount, if any; and
Interest
	 	 	61	 
	SECTION 1002. Maintenance of Office or Agency
	 	 	61	 
	SECTION 1003. Money for Securities Payments to Be Held in Trust
	 	 	62	 
	SECTION 1004. Existence
	 	 	64	 
	SECTION 1005. Maintenance of Properties
	 	 	64	 
	SECTION 1006. Insurance
	 	 	64	 
	SECTION 1007. Payment of Taxes and Other Claims
	 	 	64	 
	SECTION 1008. Statement as to Compliance
	 	 	65	 
	SECTION 1009. Waiver of Certain Covenants
	 	 	65	 
	ARTICLE ELEVEN — REDEMPTION OF SECURITIES
	 	 	65	 
	SECTION 1101. Applicability of Article
	 	 	65	 
	SECTION 1102. Election to Redeem; Notice to Trustee
	 	 	65	 
	SECTION 1103. Selection by Trustee of Securities to Be Redeemed
	 	 	65	 
	SECTION 1104. Notice of Redemption
	 	 	66	 
	SECTION 1105. Deposit of Redemption Price
	 	 	67	 
	SECTION 1106. Securities Payable on Redemption Date
	 	 	67	 
	SECTION 1107. Securities Redeemed in Part
	 	 	68	 
	ARTICLE TWELVE — SINKING FUNDS
	 	 	69	 
	SECTION 1201. Applicability of Article
	 	 	69	 
	SECTION 1202. Satisfaction of Sinking Fund Payments with Securities
	 	 	69	 
	SECTION 1203. Redemption of Securities for Sinking Fund
	 	 	69	 
	ARTICLE THIRTEEN — REPAYMENT AT THE OPTION OF HOLDERS
	 	 	70	 
	SECTION 1301. Applicability of Article
	 	 	70	 
	SECTION 1302. Repayment of Securities
	 	 	70	 
	SECTION 1303. Exercise of Option
	 	 	70	 
	SECTION 1304. When Securities Presented for Repayment Become Due and Payable
	 	 	71	 
	SECTION 1305. Securities Repaid in Part
	 	 	72	 
	ARTICLE FOURTEEN — DEFEASANCE AND COVENANT DEFEASANCE
	 	 	72	 
	SECTION 1401. Applicability of Article: Company’s Option to Effect Defeasance or Covenant
Defeasance
	 	 	72	 
	SECTION 1402. Defeasance and Discharge
	 	 	72	 
	SECTION 1403. Covenant Defeasance
	 	 	73	 
	SECTION 1404. Conditions to Defeasance or Covenant Defeasance
	 	 	73	 
	SECTION 1405. Deposited Money and Government Obligations to Be Held in Trust; Other
Miscellaneous Provisions
	 	 	75	 
	ARTICLE FIFTEEN — MEETINGS OF HOLDERS OF SECURITIES
	 	 	76	 
	SECTION 1501. Purposes for Which Meetings May Be Called
	 	 	76	 
	SECTION 1502. Call, Notice and Place of Meetings
	 	 	76	 
	SECTION 1503. Persons Entitled to Vote at Meetings
	 	 	77	 
	SECTION 1504. Quorum; Action
	 	 	77	 
	SECTION 1505. Determination of Voting Rights; Conduct and Adjournment of Meetings
	 	 	78	 

(iii)

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 1506. Counting Votes and Recording Action of Meetings
	 	 	79	 
	SIGNATURES AND SEALS
	 	 	80	 
	ACKNOWLEDGMENT
	 	 	81	 
	EXHIBIT
A FORM OF REDEEMABLE OR NON-REDEEMABLE SENIOR SECURITY
	 	 	1	 
	EXHIBIT B FORMS OF CERTIFICATION
	 	 	1	 

(iv)

 

BAY APARTMENT COMMUNITIES, INC.

     Reconciliation and tie between Trust Indenture Act of 1939 (the “Trust Indenture Act” or
“TIA”) and Indenture, dated as of January 16, 1998.

	 	 	 	 	 	 
	Trust Indenture	 	 	 	 	
	Act Section	 	 	 	Indenture Section
	§310(a)(1)
	 	 	 	607	
	(a)(2)
	 	 	 	607	
	(b) 
	 	 	 	607, 608	
	
§312(c)
	 	 	 	701	
	§313(a)
	 	 	 	702	
	(c) 
	 	 	 	702	
	§314(a)
	 	 	 	703	
	(a)(4)
	 	 	 	1008	
	(c)(1)
	 	 	 	102	
	(c)(2)
	 	 	 	102	
	(e) 
	 	 	 	102	
	§315(b)
	 	 	 	601	
	§316(a)
	 	(last sentence)	 	 101	 (“Outstanding”)
	(a)(1)(A)
	 	 	 	502, 512	
	(a)(1)(B)
	 	 	 	513	
	(b) 

	 	 	 	508	
	
§317(a)(1)
	 	 	 	503	
	(a)(2)
	 	 	 	504	
	§318(a)
	 	 	 	111	
	(c)
	 	 	 	111	

 

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

     Attention should also be directed to TIA Section 318(c), which provides that the provisions of
TIA Sections 310 to and including 317 of the Trust Indenture Act are a part of and govern every
qualified indenture, whether or not physically contained therein.

(v)

 

     INDENTURE, dated as of January 16, 1998, between BAY APARTMENT COMMUNITIES, INC., a
corporation organized under the laws of the State of Maryland (hereinafter called the “Company”),
having its principal office at 4340 Stevens Creek Boulevard, Suite 275, San Jose, California 95129,
and STATE STREET BANK AND TRUST COMPANY, a trust company organized under the laws of The
Commonwealth of Massachusetts, as Trustee hereunder (hereinafter called the “Trustee”), having a
Corporate Trust Office at Two International Place, Boston, Massachusetts 02110.

RECITALS OF THE COMPANY

     The Company deems it necessary to issue from time to time for its lawful purposes senior debt
securities (hereinafter called the “Securities”) evidencing its unsecured and senior indebtedness,
and has duly authorized the execution and delivery of this Indenture to provide for the issuance
from time to time of the Securities, to be issued in one or more Series as provided in this
Indenture.

     This Indenture is subject to the provisions of the Trust Indenture Act of 1939, as amended
(the “Trust Indenture Act” or “TIA”), that are deemed to be incorporated into this Indenture and
shall, to the extent applicable, be governed by such provisions.

     All things necessary to make this Indenture a valid agreement of the Company, in accordance
with its terms, have been done.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE
ONE — DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

     SECTION 101. Definitions. For all purposes of this
Indenture, except as otherwise expressly provided or unless the context otherwise requires:

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

     (2) all other terms used herein which are defined in the TIA, either directly or by
reference therein, have the meanings assigned to them therein, and the terms “cash
transactions” and “self-liquidating paper,” as used in TIA Section 311, shall have the
meanings assigned to them in the rules of the Commission adopted under the TIA;

 

 

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

     (4) 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.

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

     “Affiliate” of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with such specified Person.
For the purposes of this definition, “control” when used with respect to any specified Person
means the power to direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative to the foregoing.

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

     “Authorized Newspaper” means a newspaper, printed in the English language or in an
official language of the country of publication, customarily published on each Business Day,
whether or not published on Saturdays, Sundays or holidays, and of general circulation in each
place in connection with which the term is used or in the financial community of each such place.
Whenever successive publications are required to be made in Authorized Newspapers, the successive
publications may be made in the same or in different Authorized Newspapers in the same city meeting
the foregoing requirements and in each case on any Business Day.

     “Bankruptcy Law” has the meaning specified in Section 501.

     “Bearer Security” means any Security established pursuant to Section 201 which is
payable to bearer.

     “Board of Directors” means the board of directors of the Company or any committee of
that board duly authorized to act hereunder.

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

     “Business Day,” when used with respect to any Place of Payment or any other
particular location referred to in this Indenture or in the Securities, means, unless otherwise
specified with
respect to any Securities issued pursuant to Section 301, any day, other than a Saturday or
Sunday, that is not a day on which banking institutions in that Place of Payment or particular
location are authorized or required by law, regulation or executive order to close.

 

 

     “Capital Stock” means, with respect to any Person, any capital stock (including
preferred stock), shares, interests, participations or other ownership interests (however
designated) of such Person and any rights (other than debt securities convertible into or
exchangeable for corporate stock), warrants or options to purchase any thereof.

     “CEDEL” means Centrale de Livraison de Valeurs Mobiliéres, S.A., or its successor.

     “Commission” means the Securities and Exchange Commission, as from time to time
constituted, created under the Securities Exchange Act of 1934, or, if at any time after execution
of this instrument such Commission is not existing and performing the duties now assigned to it
under the Trust Indenture Act, then the body performing such duties on such date.

     “Common Stock” means, with respect to any Person, all shares of capital stock issued
by such Person other than Preferred Stock.

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

     “Company Request” and “Company Order” mean, respectively, a written request or
order signed in the name of the Company by its Chairman of the Board, the President or a Vice
President, and by its Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary,
of the Company, and delivered to the Trustee.

     “Consolidated Net Assets” means as of any particular time the aggregate amount of
assets (less applicable reserves and other properly deductible items) after deducting therefrom all
current liabilities except for (a) notes and loans payable, (b) current maturities of long-term
debt and (c) current maturities of obligations under capital leases, all as set forth on the most
recent consolidated balance sheet of the Company and its consolidated Subsidiaries and computed in
accordance with generally accepted accounting principles and practices as in effect on January 16,
1998.

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

     “Corporate Trust Office” means the office of the Trustee at which, at any particular
time, its corporate trust business shall be principally administered, which office at the date
hereof is located at Two International Place, Boston, Massachusetts 02110, Attention: Corporate
Trust Department.

 

 

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

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

     “Custodian” has the meaning specified in Section 501.

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

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

     “ECU” means the European Currency Unit as defined and revised from time to time by the
Council of the European Communities.

     “Euroclear” means Morgan Guaranty Trust Company of New York, Brussels office, or its
successor, as operator of the Euroclear System.

     “European Communities” means the European Economic Community, the European Coal and
Steel Community and the European Atomic Energy Community.

     “European Monetary System” means the European Monetary System established by the
Resolution of December 5, 1978 of the Council of the European Communities.

     “Event of Default” has the meaning specified in Article Five.

     “Foreign Currency” means any currency, currency unit or composite currency, including,
without limitation, the ECU issued by the government of one or more countries other than the United
States of America or by any recognized confederation or association of such governments.

     “GAAP” means, except as otherwise provided herein, generally accepted accounting
principles, as in effect from time to time, as used in the United States applied on a consistent
basis.

     “Global Security” means a Security evidencing all or a part of a series of Securities
issued to and registered in the name of the depository for such series, or its nominee, in
accordance with Section 305, and bearing the legend prescribed in Section 203.

     “Government Obligations” means securities which are (i) direct obligations of the
United States of America or the government which issued the Foreign Currency in which the
Securities of a particular series are payable, 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 or such government which issued the Foreign
Currency in which

 

 

the Securities of such series are payable, the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United States of America or
such other government, which, in either case, are not callable or redeemable at the option of the
issuer thereof, and (iii) shall also include a depository receipt issued by a bank or trust company
as custodian with respect to any such Government Obligation or a specific payment of interest on or
principal of any such Government Obligation held by such custodian for the account of the holder of
a depository receipt, provided that (except as required by law) such custodian is not
authorized to make any deduction from the amount payable to the holder of such depository receipt
from any amount received by the custodian in respect of the Government Obligation or the specific
payment of interest on or principal of the Government Obligation evidenced by such depository
receipt.

     “Guaranty” by any Person means any Obligation, contingent or otherwise, of such Person
guaranteeing any Indebtedness of any other Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including, without limitation, every Obligation of such Person (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or to
purchase (or to advance or supply funds for the purchase of) any security for the payment of such
Indebtedness, (ii) to purchase property, securities or services for the purpose of assuring the
holder of such Indebtedness of the payment of such Indebtedness or (iii) to maintain working
capital, equity capital or other financial statement condition or liquidity of the primary obligor
so as to enable the primary obligor to pay such Indebtedness; provided, however,
that a Guaranty by any Person shall not include endorsements by such Person for collection or
deposit, in either case in the ordinary course of business. The terms “Guaranteed,” “Guaranteeing”
and “Guarantor” shall have meanings correlative to the foregoing.

     “Holder” means, in the case of a Registered Security, the Person in whose name a
Security is registered in the Security Register and, in the case of a Bearer Security, the bearer
thereof and, when used with respect to any coupon, shall mean the bearer thereof.

     “Indebtedness” means, with respect to any Person, without duplication, (i) any
Obligation of such Person relating to any indebtedness of such Person (A) for borrowed money
(whether or not the recourse of the lender is to the whole of the assets, of such person or only to
a portion thereof), (B) evidenced by notes, debentures or similar instruments (including purchase
money obligations) given in connection with the acquisition of any property or assets (other than
trade accounts payable for inventory or similar property acquired in the ordinary course of
business), including securities, for the payment of which such Person is liable, directly or
indirectly, or the payment of which is secured by a lien, charge or encumbrance on property or
assets of such Person, (C) for goods, materials or services purchased in the ordinary course of
business (other than trade accounts payable arising in the ordinary course of business), (D) with
respect to letters of credit or bankers acceptances issued for the account of such Person or
performance, surety or
similar bonds, (E) for the payment of money relating to a Capitalized Lease Obligation or (F)
under interest rate swaps, caps or similar agreements and foreign exchange contracts, currency
swaps or similar agreements; (ii) any liability of others of the kind described in the preceding
clause (i), which such Person has Guaranteed or which is otherwise its legal liability; and

 

 

(iii)
any and all deferrals, renewals, extensions and refunding of, or amendments, modifications or
supplements to, any liability of the kind described in any of the preceding clauses (i) or (ii).

     “Indenture” means this instrument as originally executed or as it may be supplemented
or amended from time to time by one or more indentures supplemental hereto entered into pursuant to
the applicable provisions hereof, and shall include the terms of particular series of Securities
established as contemplated by Section 301; provided, however, that, if at any time
more than one Person is acting as Trustee under this instrument, “Indenture” shall mean, with
respect to any one or more series of Securities for which such Person is Trustee, this instrument
as originally executed or as it may be supplemented or amended from time to time by one or more
indentures supplemental hereto entered into pursuant to the applicable provisions hereof and shall
include the terms of the or those particular series of Securities for which such Person is Trustee
established as contemplated by Section 301, exclusive, however, of any provisions or terms which
relate solely to other series of Securities for which such Person is Trustee, regardless of when
such terms or provisions were adopted, and exclusive of any provisions or terms adopted by means of
one or more indentures supplemental hereto executed and delivered after such Person had become such
Trustee but to which such Person, as such Trustee, was not a party.

     “Indexed Security” means a Security the terms of which provide that the principal
amount thereof payable at Stated Maturity may be more or less than the principal face amount
thereof at original issuance.

     “Interest,” when used with respect to an Original Issue Discount Security which by its
terms bears interest only after Maturity, shall mean interest payable after Maturity.

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

     “Make-Whole Amount,” when used with respect to any Security, means the amount, if any,
in addition to principal (and accrued interest thereon, if any) which is required by a Security,
under the terms and conditions specified therein or as otherwise specified as contemplated by
Section 301, to be paid by the Company to the Holder thereof in connection with any optional
redemption or accelerated payment of such Security.

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

     “Obligation” of any Person with respect to any specified Indebtedness means any
obligation of such Person to pay principal, premium, interest (including interest accruing on or
after the filing of any petition in bankruptcy or for reorganization relating to such Person,
whether or not a claim for such post-petition interest is allowed in such Proceeding), penalties,

 

 

reimbursement or indemnification amounts, fees, expenses or other amounts relating to such
Indebtedness.

     “Officers’ Certificate” means a certificate signed by the Chairman of the Board of
Directors, the President or a Vice President and by the Treasurer, an Assistant Treasurer, the
Secretary or an Assistant Secretary of the Company, and delivered to the Trustee.

     “Opinion of Counsel” means a written opinion of counsel, who may be counsel for the
Company or who may be an employee of or other counsel for the Company and who shall be satisfactory
to the Trustee.

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

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

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

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

     (iii) Securities, except to the extent provided in Sections 1402 and 1403, with respect
to which the Company has effected defeasance and/or covenant defeasance as provided in
Article Fourteen; and

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

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder or are present at a meeting of Holders for quorum
purposes, and for the purpose of making the calculations required by TIA Section 313, (i) the
principal amount of an Original Issue Discount Security that may be counted in making such
determination or

 

 

calculation and that shall be deemed to be Outstanding for such purpose shall be
equal to the amount of principal thereof that would be (or shall have been declared to be) due and
payable, at the time of such determination, upon a declaration of acceleration of the maturity
thereof pursuant to Section 502, (ii) the principal amount of any Security denominated in a Foreign
Currency that may be counted in making such determination or calculation and that shall be deemed
Outstanding for such purpose shall be equal to the Dollar equivalent, determined pursuant to
Section 301 as of the date such Security is originally issued by the Company, of the principal
amount (or, in the case of an Original Issue Discount Security, the Dollar equivalent as of such
date of original issuance of the amount determined as provided in clause (i) above) of such
Security, (iii) the principal amount of any Indexed Security that may be counted in making such
determination or calculation and that shall be deemed outstanding for such purpose shall be equal
to the principal face amount of such Indexed Security at original issuance, unless otherwise
provided with respect to such Security pursuant to Section 301, and (iv) Securities owned by the
Company or any other obligor upon the Securities or any Affiliate of the Company or of such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in determining whether
the Trustee shall be protected in making such calculation or in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities which the Trustee
knows to be so owned shall be so disregarded. Securities owned as provided in clause (iv) above
which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to
the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and
that the pledgee is not the Company or any other obligor upon the Securities or any Affiliate of
the Company or of such other obligor. 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.

     “Paying Agent” means any Person authorized by the Company to pay the principal of (and
premium or Make-Whole Amount, if any) or interest on any Securities or coupons on behalf of the
Company.

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

     “Place of Payment,” when used with respect to the Securities of or within any series,
means the place or places where the principal of (and premium or Make-Whole Amount, if any) and
interest on such Securities are payable as specified as contemplated by Sections 301 and 1002.

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

 

 

as
the mutilated, destroyed, lost or stolen Security or the Security to which the mutilated,
destroyed, lost or stolen coupon appertains.

     “Preferred Stock” means, with respect to any Person, all capital stock issued by such
Person that are entitled to a preference or priority over any other capital stock issued by such
Person with respect to any distribution of such Person’s assets, whether by dividend or upon any
voluntary or involuntary liquidation, dissolution or winding up.

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

     “Redemption Price,” when used with respect to any Security to be redeemed, means the
price specified in the related Officers’ Certificate or supplemental indenture contemplated by and
pursuant to Section 301, at which it is to be redeemed pursuant to this Indenture.

     “Registered Security” shall mean any Security which is registered in the Security
Register.

     “Regular Record Date” for the interest payable on any Interest Payment Date on the
Registered Securities of or within any series means the date specified for that purpose as
contemplated by Section 301, whether or not a Business Day.

     “Repayment Date” means, when used with respect to any Security to be repaid at the
option of the Holder, the date fixed for such repayment by or pursuant to this Indenture.

     “Repayment Price” means, when used with respect to any Security to be repaid at the
option of the Holder, the price at which it is to be repaid by or pursuant to this Indenture.

     “Responsible Officer,” when used with respect to the Trustee, means any senior
vice president, vice president (whether or not designated by a number or a word or words added
before or after the title “vice president”), assistant vice president, assistant secretary, trust
officer or assistant trust officer working in its Corporate Trust Department, or any other officer
of the Trustee customarily performing functions similar to those performed by any of the above
designated officers and working in its Corporate Trust Department, and also means, with respect to
a particular corporate trust matter, any other officer to whom such matter is referred because of
such officer’s knowledge and familiarity with the particular subject.

     “Security” has the meaning stated in the first recital of this Indenture and, more
particularly, means any Security or Securities authenticated and delivered under this Indenture;
provided, however, that, if at any time there is more than one Person acting
as Trustee under this Indenture, “Securities” with respect to the Indenture as to which such Person
is Trustee shall have the meaning stated in the first recital of this Indenture and shall more
particularly mean Securities authenticated and delivered under this Indenture, exclusive, however,
of Securities of any series as to which such Person is not Trustee.

 

 

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

     “Significant Subsidiary” means any Subsidiary which is a “significant subsidiary” (as
defined in Article I, Rule 1-02 of Regulation S-X, promulgated under the Securities Act of 1933) of
the Company.

     “Special Record Date” for the payment of any Defaulted Interest on the Registered
Securities of or within any series means a date fixed by the Company pursuant to Section 307.

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

     “Subsidiary” means, with respect to any Person, any corporation, limited liability
company, partnership or other entity of which a majority of (i) the voting power of the voting
equity securities or (ii) the outstanding equity interests are owned, directly or indirectly, by
such Person. For the purposes of this definition, “voting equity securities” means equity
securities having voting power for the election of directors, whether at all times or only so long
as no senior class of security has such voting power by reason of any contingency.

     “Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939, as
amended and as in force at the date as of which this Indenture was executed, except as provided in
Section 905.

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

     “United States” means, unless otherwise specified with respect to any Securities
pursuant to Section 301, the United States of America (including the states and the District of
Columbia), its territories, its possessions and other areas subject to its jurisdiction.

     “United States Person” means, unless otherwise specified with respect to any
Securities pursuant to Section 301, an individual who is a citizen or resident of the United
States, a
corporation, partnership or other entity created or organized in or under the laws of the
United States or an estate or trust the income of which is subject to United States Federal income
taxation regardless of its source.

 

 

     “Yield to Maturity” means the yield to maturity, computed at the time of issuance of a
Security (or, if applicable, at the most recent redetermination of interest on such Security) and
as set forth in such Security in accordance with generally accepted United States bond yield
computation principles.

     SECTION 102. Compliance Certificates and Opinions. Upon any application or request by the Company to the Trustee to take any action
under any provision of this Indenture, the Company shall furnish to the Trustee an Officers’
Certificate stating that all conditions precedent, if any, provided for in this Indenture relating
to the proposed action have been complied with and an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent, if any, have been complied with, except that
in the case of any such application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture relating to such particular application or
request, no additional certificate or opinion need be furnished.

     Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (including certificates delivered pursuant to Section 1008) shall include:

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

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

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

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

     SECTION 103. Form of Documents Delivered to Trustee. In any case where several matters are required to be certified
by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they be so certified or
covered by only one document, but one such Person may certify or give an opinion with respect to
some matters
and one or more other such Persons as to other matters, and any such Person may certify or
give an opinion as to such matters in one or several documents.

     Any certificate or opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon an Opinion of Counsel, or a certificate or representations by counsel, unless
such officer knows, or in the exercise of reasonable care should know, that the opinion,

 

 

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

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

     SECTION 104. Acts of Holders. (a) Any request,
demand, authorization, direction, notice, consent, waiver or other action provided by this
Indenture to be given or taken by Holders of the Outstanding Securities of all series or one or
more series, as the case may be, may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by agents duly appointed in
writing. If Securities of a series are issuable as Bearer Securities, any request, demand,
authorization, direction, notice, consent, waiver or other action provided by this Indenture to be
given or taken by Holders of Securities of such series may, alternatively, be embodied in and
evidenced by the record of Holders of Securities of such series voting in favor thereof, either in
person or by proxies duly appointed in writing, at any meeting of Holders of Securities of such
series duly called and held in accordance with the provisions of Article Fifteen, or a combination
of such instruments and any such record. Except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments or record or both are delivered
to the Trustee and, where it is hereby expressly required, to the Company. Such instrument or
instruments and any such record (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the “Act” of the Holders signing such instrument or instruments or so
voting at any such meeting. Proof of execution of any such instrument or of a writing appointing
any such agent, or of the holding by any Person of a Security, shall be sufficient for any purpose
of this Indenture and conclusive in favor of the Trustee and the Company and any agent of the
Trustee or the Company, if made in the manner provided in this Section. The record of any meeting
of Holders of Securities shall be proved in the manner provided in Section 1506.

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

 

 

     (c) The ownership of Registered Securities shall be proved by the Security Register. As to
any matter relating to beneficial ownership interests in any Global Security, the appropriate
depository’s records shall be dispositive for purposes of this Indenture.

     (d) The ownership of Bearer Securities may be proved by the production of such Bearer
Securities or by a certificate executed, as depository, by any trust company, bank, banker or other
depository, wherever situated, if such certificate shall be deemed by the Trustee to be
satisfactory, showing that at the date therein mentioned such Person had on deposit with such
depository, or exhibited to it, the Bearer Securities therein described; or such facts may be
proved by the certificate or affidavit of the Person holding such Bearer Securities, if such
certificate or affidavit is deemed by the Trustee to be satisfactory. The Trustee and the Company
may assume that such ownership of any Bearer Security continues until (1) another certificate or
affidavit bearing a later date issued in respect of the same Bearer Security is produced, or (2)
such Bearer Security is produced to the Trustee by some other Person, or (3) such Bearer Security
is surrendered in exchange for a Registered Security, or (4) such Bearer Security is no longer
Outstanding. The ownership of Bearer Securities may also be proved in any other manner which the
Trustee deems sufficient.

     (e) If the Company shall solicit from the Holders of Registered Securities any request,
demand, authorization, direction, notice, consent, waiver or other Act, the Company may, at its
option, in or pursuant to a Board Resolution, fix in advance a record date for the determination of
Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or
other Act, but the Company shall have no obligation to do so. Notwithstanding TIA Section 316(c),
such record date shall be the record date specified in or pursuant to such Board Resolution, which
shall be a date not earlier than the date 30 days prior to the first solicitation of Holders
generally in connection therewith and not later than the date such solicitation is completed. If
such a record date is fixed, such request, demand, authorization, direction, notice, consent,
waiver or other Act may be given before or after such record date, but only the Holders of record
at the close of business on such record date shall be deemed to be Holders for the purposes of
determining whether Holders of the requisite proportion of Outstanding Securities have authorized
or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver
or other Act, and for that purpose the Outstanding Securities shall be computed as of such record
date; provided that no such authorization, agreement or consent by the Holders on such
record date shall be deemed effective unless it shall become effective pursuant to the provisions
of this Indenture not later than eleven months after the record date.

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

 

 

     SECTION 105. Notices, etc., to Trustee and Company. Any request, demand, authorization, direction, notice, consent, waiver or Act of
Holders or other document provided or permitted by this Indenture to be made upon, given or
furnished to, or filed with,

	 	               (1) the
Trustee by any Holder or by the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing to or with the Trustee at State
Street Bank and Trust Company, Two International Place, Boston MA 02110, Attention:
Corporate Trust Department; or
	 
	 	               (2)
the Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing and mailed, first class
postage prepaid, to the Company addressed to it at the address of its principal office
specified in the first paragraph of this Indenture or at any other address previously
furnished in writing to the Trustee by the Company, Attention: Chief Financial Officer, or
	 
	 	               (3)
either the Trustee or the Company, by the other party, shall be sufficient for
every purpose hereunder if given by facsimile transmission, receipt confirmed by telephone
followed by an original copy delivered by guaranteed overnight courier; if to the Trustee at
facsimile number (617) 664-5371; and if to the Company at facsimile number (408) 554-9780.

     SECTION 106. Notice to Holders: Waiver.
Where this Indenture provides for notice of any event to Holders of Registered Securities by the
Company or the Trustee, such notice shall be sufficiently given (unless otherwise herein expressly
provided) if in writing and mailed, first-class postage prepaid, to each such Holder affected by
such event, at his address as it appears in the Security Register, not later than the latest date,
if any, and not earlier than the earliest date, if any, prescribed for the giving of such notice.
In any case where notice to Holders of Registered Securities is given by mail, neither the failure
to mail such notice, nor any defect in any notice so mailed, to any particular Holder shall affect
the sufficiency of such notice with respect to other Holders of Registered Securities or the
sufficiency of any notice to Holders of Bearer Securities given as provided herein. Any notice
mailed to a Holder in the manner herein prescribed shall be conclusively deemed to have been
received by such Holder, whether or not such Holder actually receives such notice.

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

     Except as otherwise expressly provided herein or otherwise specified with respect to any
Securities pursuant to Section 301, where this Indenture provides for notice to Holders of Bearer
Securities of any event, such notice shall be sufficiently given if published in an Authorized
Newspaper in The City of New York and in such other city or cities as may be specified in such

 

 

Securities on a Business Day, such publication to be not later than the latest date, if any, and
not earlier than the earliest date, if any, prescribed for the giving of such notice. Any such
notice shall be deemed to have been given on the date of such publication or, if published more
than once, on the date of the first such publication.

     If by reason of the suspension of publication of any Authorized Newspaper or Authorized
Newspapers or by reason of any other cause it shall be impracticable to publish any notice to
Holders of Bearer Securities as provided above, then such notification to Holders of Bearer
Securities as shall be given with the approval of the Trustee shall constitute sufficient notice to
such Holders for every purpose hereunder. Neither the failure to give notice by publication to any
particular Holder of Bearer Securities as provided above, nor any defect in any notice so
published, shall affect the sufficiency of such notice with respect to other Holders of Bearer
Securities or the sufficiency of any notice to Holders of Registered Securities given as provided
herein.

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

     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.

     SECTION
107. Counterparts; Effect of Headings and Table of Contents. This Indenture may be executed in any
number of counterparts, each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same Indenture. The Article and Section
headings herein and the Table of Contents are for convenience only and shall not affect the
construction hereof.

     SECTION 108. Successors and Assigns. All
covenants and agreements in this Indenture by the Company shall bind its successors and assigns,
whether so expressed or not.

     SECTION 109. Severability Clause. In case any
provision in this Indenture or in any Security or coupon shall be held invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

     SECTION 110. Benefits of Indenture. Nothing in
this Indenture or in the Securities or coupons, express or implied, shall give to any Person, other
than the parties hereto, any Security Registrar, any Paying Agent, any Authenticating Agent and
their successors hereunder and the Holders any benefit or any legal or equitable right, remedy or
claim under this Indenture.

 

 

     SECTION 111. Governing Law. This Indenture and the
Securities and coupons shall be governed by and construed in accordance with the law of the State
of New York. This Indenture is subject to the provisions of the TIA that are required to be part
of this Indenture and shall, to the extent applicable, be governed by such provisions.

     SECTION 112. Legal Holidays. In any case where any
Interest Payment Date, Redemption Date, Repayment Date, sinking fund payment date, Stated Maturity
or Maturity of any Security or the last date on which a Holder has the right to exchange a Security
shall not be a Business Day at any Place of Payment, then (notwithstanding any other provision of
this Indenture or any Security or coupon other than a provision in the Securities of any series
which specifically states that such provision shall apply in lieu hereof), payment of interest or
principal (and premium or Make-Whole Amount, if any) or exchange of such security need not be made
at such Place of Payment on such date, but (except as otherwise provided in the supplemental
indenture with respect to such Security) may be made on the next succeeding Business Day at such
Place of Payment with the same force and effect as if made on the Interest Payment Date, Redemption
Date, Repayment Date or sinking fund payment date, or at the Stated Maturity or Maturity, or on
such last day for exchange, provided that no interest shall accrue on the amount so payable for the
period from and after such Interest Payment Date, Redemption Date, Repayment Date, sinking fund
payment date, Stated Maturity or Maturity, as the case may be.

     SECTION 113. Immunity of Stockholders, Directors, Officers and Agents of the
Company.
No recourse under or upon any obligation, covenant or agreement contained in this Indenture, or in
any Security, or because of any indebtedness evidenced thereby, shall be had against any past,
present or future stockholder, employee, 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 Securities by the Holders and as part of the consideration for
the issue of the Securities.

     SECTION 114. Conflict with Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with another provision hereof
which is required or deemed to be included in this Indenture by any of the provisions of the Trust
Indenture Act, such required provision shall control. If any provision of this Indenture modifies
or excludes any provision of the Trust Indenture Act that may be so modified or excluded, the
latter provision shall be deemed to apply to this Indenture as so modified or to be excluded, as
the case may be.

 

 

ARTICLE TWO — SECURITIES FORMS

     SECTION 201. Forms of Securities. The Registered
Securities, if any, of each series and the Bearer Securities, if any, of each series and related
coupons shall be substantially in the form of Exhibit A hereto or in such other form as
shall be established in one or more indentures supplemental hereto or approved from time to time by
or pursuant to a Board Resolution in accordance with Section 301, shall have such appropriate
insertions, omissions, substitutions and other variations as are required or permitted by this
Indenture or any indenture supplemental hereto, and may have such letters, numbers or other marks
of identification or designation and such legends or endorsements placed thereon as the Company may
deem appropriate and as are not inconsistent with the provisions of this Indenture, or as may be
required to comply with any law or with any rule or regulation made pursuant thereto or with any
rule or regulation of any stock exchange on which the Securities may be listed, or to conform to
usage.

     Unless otherwise specified as contemplated by Section 301, Bearer Securities shall have
interest coupons attached.

     The definitive Securities and coupons shall be printed, lithographed or engraved or produced
by any combination of these methods on a steel engraved border or steel engraved borders or
mechanically reproduced on safety paper or may be produced in any other manner, all as determined
by the officers executing such Securities or coupons, as evidenced by their execution of such
Securities or coupons.

     SECTION 202. Form of Trustee’s Certificate of Authentication. Subject to Section 611, the Trustee’s certificate of
authentication shall be in substantially the following form:

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

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	[                                        ],	 	 
	 	 	 	 	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	 	 	Authorized Signatory	 	 

     SECTION 203. Securities Issuable in Global Form. If Securities of or within a series are issuable in the form of one or more
Global Securities, then, notwithstanding clause (8) of Section 301 and the provisions of Section
302, any such Global Security or Securities may provide that it or they shall represent the
aggregate amount of all Outstanding Securities of such series (or such lesser amount as is
permitted by the terms thereof) from time to time endorsed thereon and may also provide that the
aggregate amount of Outstanding Securities of such series represented thereby may from time to time
be increased or decreased to reflect exchanges. Any endorsement of any Global Security to reflect
the amount, or any increase or decrease in the

 

 

amount, or changes in the rights of Holders thereof,
of Outstanding Securities represented thereby shall be made (or caused to be made) by the Trustee
in such manner or by such Person or Persons as shall be specified therein or in the Company Order
to be delivered to the Trustee pursuant to Section 303 or 304. Subject to the provisions of
Section 303 and, if applicable, Section 304, the Trustee shall deliver and redeliver any Global
Security in permanent global form in the manner and upon instructions given by the Person or
Persons specified therein or in the applicable Company Order. If a Company Order pursuant to
Section 303 or 304 has been, or simultaneously is, delivered, any instructions by the Company with
respect to endorsement or delivery or redelivery of a Global Security shall be in writing but need
not comply with Section 102 and need not be accompanied by an Opinion of Counsel.

     The provisions of the last sentence of Section 303 shall apply to any Security represented by
a Global Security if such Security was never issued and sold by the Company and the Company
delivers to the Trustee the Global Security together with written instructions (which need not
comply with Section 102 and need not be accompanied by an Opinion of Counsel) with regard to the
reduction in the principal amount of Securities represented thereby, together with the written
statement contemplated by the last sentence of Section 303.

     Notwithstanding the provisions of Section 307, unless otherwise specified as
contemplated by Section 301, payment of principal of and any premium or Make-Whole Amount, if any,
and interest on any Global Security in permanent global form shall be made to the registered Holder
thereof.

     Notwithstanding the provisions of Section 308 and except as provided in the preceding
paragraph, the Company, the Trustee and any agent of the Company and the Trustee shall treat as
the Holder of such principal amount of Outstanding Securities represented by a permanent
Global Security (i) in the case of a permanent Global Security in registered form, the Holder of
such permanent Global Security in registered form, or (ii) in the case of a permanent Global
Security in bearer form, Euroclear or CEDEL.

     Any Global Security authenticated and delivered hereunder shall bear a legend in substantially
the following form:

“This
Security is a Global Security within the meaning set forth in
the Indenture hereinafter referred to and is registered in the name
of a Depository or a nominee of a Depository. This Security is
exchangeable for Securities registered in the name of a person other
than the Depository or its nominee only in the limited circumstances
described in the Indenture, and may not be transferred except as a
whole by the Depository to a nominee of the Depository or by a
nominee of the Depository to the Depository or another nominee of
the Depository or by the Depository or its nominee to a successor
Depository or its nominee.”

 

 

ARTICLE THREE -THE SECURITIES

     SECTION 301. Amount Unlimited; Issuable in Series. The aggregate principal amount of Securities which may be authenticated and
delivered under this Indenture is unlimited.

     The Securities may be issued in one or more series. There shall be established in one or more
Board Resolutions or pursuant to authority granted by one or more Board Resolutions and, subject to
Section 303, set forth in an Officers’ Certificate, or established in one or more indentures
supplemental hereto, prior to the issuance of Securities of any series:

     (1) The title of the Securities of the series (which shall distinguish the Securities
of such series from all other series of Securities);

     (2) Any limit upon the aggregate principal amount of the Securities of the
series that may be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu
of, other Securities of the series pursuant to Section 304, 305, 306, 906, 1107 or 1305) and
the minimum authorized denominations with respect to the Securities of such series;

     (3) The price (expressed as a percentage of the principal amount thereof) at which such
Securities will be issued and, if other than the principal amount thereof, the portion of
the principal amount thereof payable upon declaration of acceleration of the maturity
thereof;

     (4) The date or dates, or the method for determining such date or dates, on which the
principal of such Securities will be payable;

     (5) The rate or rates (which may be fixed or variable), or the method by which such
rate or rates shall be determined, at which such Securities will bear interest, if any;

     (6) The date or dates, or the method for determining such date or dates, from which any
such interest will accrue, the dates on which any such interest will be payable, the record
dates for such interest payment dates, or the method by which such dates shall be
determined, the persons to whom such interest shall be payable, and the basis upon which
interest shall be calculated if other than that of a 360-day year of twelve 30-day months;

     (7) The Make-Whole Amount, if any, or method for determining the Make-Whole Amount, if
any, payable with respect to such Securities, and the terms upon which such amount, if any,
will be payable;

     (8) The place or places where the principal of (and premium or Make-Whole Amount, if
any) and interest, if any, on such Securities will be payable,

 

 

where such Securities may be
surrendered for registration of transfer or exchange and where notices or demands to or upon
the Company in respect of such Securities and this Indenture may be served;

     (9) The period or periods, if any, within which, the price or prices at which and the
other terms and conditions upon which such Securities may, pursuant to any optional or
mandatory redemption provisions, be redeemed, as a whole or in part, at the option of the
Company;

     (10) The obligation, if any, of the Company to redeem, repay or purchase such
Securities pursuant to any sinking fund or analogous provision or at the option of a holder
thereof, and the period or periods within which, the price or prices at which and the other
terms and conditions upon which such Securities will be redeemed, repaid or purchased, as a
whole or in part, pursuant to such obligation;

     (11) If other than Dollars, the currency or currencies in which such Securities
are denominated and payable, which may be a foreign currency or units of two or more foreign
currencies or a composite currency or currencies, the manner of determining the equivalent
thereof in Dollars for purposes of the definition of “Outstanding” in Section 101, and the
terms and conditions relating thereto;

     (12) Whether the amount of payments of principal of (and premium or Make-Whole Amount,
if any, including any amount due upon redemption, if any) or interest, if any, on such
Securities may be determined with reference to an index, formula or other method (which
index, formula or method may, but need not be, based on the yield on or trading price of
other securities, including United States Treasury securities or on a currency, currencies,
currency unit or units, or composite currency or currencies) and the manner in which such
amounts shall be determined;

     (13) Whether the principal of (and premium or Make-Whole Amount, if any) or interest on
the Securities of the series are to be payable, at the election of the Company or a Holder
thereof, in a currency or currencies, currency unit or units or composite currency or
currencies other than that in which such Securities are denominated or stated to be payable,
the period or periods within which, and the terms and conditions upon which, such election
may be made, and the time and manner of, and identity of the exchange rate agent with
responsibility for, determining the exchange rate between the currency or currencies,
currency unit or units or composite currency or currencies in which such Securities are
denominated or stated to be payable and the currency or currencies, currency unit or units
or composite currency or currencies in which such Securities are to be so payable;

     (14) Provisions, if any, granting special rights to the Holders of Securities of the
series upon the occurrence of such events as may be specified;

 

 

     (15) Any deletions from, modifications of or additions to the Events of Default or
covenants of the Company with respect to Securities of the series, whether or not such
Events of Default or covenants are consistent with the Events of Default or covenants set
forth herein;

     (16) Whether and under what circumstances the Company will pay any additional amounts
on such Securities in respect of any tax, assessment or governmental charge and, if so,
whether the Company will have the option to redeem such Securities in lieu of making such
payment;

     (17) Whether Securities of the series are to be issuable as Registered
Securities, Bearer Securities (with or without coupons) or both, any restrictions applicable
to the offer, sale or delivery of Bearer Securities and the terms upon which Bearer
Securities of the series may be exchanged for Registered Securities of the series and vice
versa (if permitted by applicable laws and regulations), whether any Securities of the
series are to be issuable initially in temporary global form and whether any Securities of
the series are to be issuable in permanent global form with or without coupons and, if so,
whether beneficial owners of interests in any such permanent global Security may, or shall
be required to, exchange such interests for Securities of such series and of like tenor of
any authorized form and denomination and the circumstances under which any such exchanges
may, or shall be required to, occur, if other than in the manner provided in the
Indenture, and, if Registered Securities of the series are to be issuable as a Global
Security, the identity of the depository for such series;

     (18) The date as of which any Bearer Securities of the series and any temporary Global
Security representing outstanding Securities of the series shall be dated if other than the
date of original issuance of the first Security of the series to be issued;

     (19) The Person to whom any interest on any Registered Security of the series shall be
payable, if other than the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date for such
interest, the manner in which, or the Person to whom, any interest on any Bearer Security of
the series shall be payable, if otherwise than upon presentation and surrender of the
coupons appertaining thereto as they severally mature, and the extent to which, or the
manner in which, any interest payable on a temporary Global Security on an Interest Payment
Date will be paid if other than in the manner provided herein; provided, however, in each
case, that the manner of determining such Person or making such payment shall be acceptable
to the Trustee (as not imposing on it any undue administrative burden or risk of liability);

     (20) The applicability, if any, of the defeasance and covenant defeasance provisions of
Article Fourteen hereof to the Securities of the series;

 

 

     (21) If the Securities of such series are to be issuable in definitive form (whether
upon original issue or upon exchange of a temporary Security of such series) only upon
receipt of certain certificates or other documents or satisfaction of other conditions, then
the form and/or terms of such certificates, documents or conditions;

     (22) Designation of the Trustee, if different from the Trustee under the Indenture,
with respect to such series and the terms applicable to such Trustee (which shall be
accepted by such Trustee by its execution and delivery of a supplemental indenture as
provided therein); and

     (23) Any other terms of the series (which terms shall not be inconsistent with the
provisions of this Indenture).

     All Securities of any one series and the coupons appertaining to any Bearer Securities
of such series shall be substantially identical except, in the case of Registered Securities, as to
denomination and except as may otherwise be provided in or pursuant to such Board Resolution
(subject to Section 303) and set forth in such Officers’ Certificate or in any such indenture
supplemental hereto. All Securities of any one series need not be issued at the same time and,
unless otherwise provided, a series may be reopened, without the consent of the Holders, for
issuances of additional Securities of such series.

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

     SECTION 302. Denominations. The Securities of each series
shall be issuable in such denominations as shall be specified as contemplated by Section 301. With
respect to Securities of any series denominated in Dollars, in the absence of any such provisions
with respect to the Securities of any series, the Securities of such series, other than Global
Securities (which may be of any denomination), shall be issuable in denominations of $1,000 and any
integral multiple thereof.

     SECTION 303. Execution, Authentication, Delivery and Dating. The Securities and any coupons appertaining thereto shall
be executed on behalf of the Company by its Chairman of the Board, its President or one of its Vice
Presidents, under its corporate seal reproduced thereon, and attested by its Secretary or one of
its Assistant Secretaries. The signature of any of these officers on the Securities and coupons
may be manual or facsimile signatures of the present or any future such authorized officer and may
be imprinted or otherwise reproduced on the Securities.

     Securities or coupons bearing the manual or facsimile signatures of individuals who were at
any time the proper officers of the Company shall bind the Company, notwithstanding that

 

 

such individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Securities or did not hold such offices at the date of such
Securities or coupons.

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series, together with any coupon appertaining thereto,
executed by the Company to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities (accompanied by a copy of the Board Resolution and
the Officers’ Certificate or supplemental indenture contemplated by Section 301), and the Trustee
in accordance with the Company Order shall authenticate and deliver such Securities;
provided, however, that, in connection with its original issuance, no Bearer
Security shall be mailed or otherwise delivered to any location in the United States; and
provided further that, unless otherwise specified with respect to any series of
Securities pursuant to Section 301, a Bearer Security may be delivered in connection with its
original issuance only if the Person entitled to receive such Bearer Security shall have furnished
a certificate to Euroclear or CEDEL, as the case may be, in the form set forth in Exhibit
B-1 to this Indenture or such other certificate as may be specified by the Company with respect
to any series of Securities pursuant to Section 301, dated no earlier than 15 days prior to the
earlier of the date on which such Bearer Security is delivered and the date on which any temporary
Security first becomes exchangeable for such Bearer Security in accordance with the terms of such
temporary Security and this Indenture. If any Security shall be represented by a permanent global
Bearer Security, then, for purposes of this Section and Section 304, the notation of a beneficial
owner’s interest therein upon original issuance of such Security or upon exchange of a portion of a
temporary Global Security shall be deemed to be delivery in connection with its original issuance
of such beneficial owner’s interest in such permanent Global Security. Except as permitted by
Section 306, the Trustee shall not authenticate and deliver any Bearer Security unless all
appurtenant coupons for interest then matured have been detached and canceled.

     If all the Securities of any series are not to be issued at one time and if the Board
Resolution or supplemental indenture establishing such series shall so permit, such Company Order
may set forth procedures acceptable to the Trustee for the issuance of such Securities and
determining the terms of particular Securities of such series, such as interest rate or formula,
maturity date, date of issuance and date from which interest shall accrue. In authenticating such
Securities, and accepting the additional responsibilities under this Indenture in relation to such
Securities, the Trustee shall be entitled to receive, and (subject to TIA Section 315(a) through
315(d)) shall be fully protected in relying upon,

     (i) an Opinion of Counsel stating that

     (a) the form or forms of such Securities and any coupons have been established
in conformity with the provisions of this Indenture;

     (b) the terms of such Securities and any coupons have been established in
conformity with the provisions of this Indenture; and

 

 

     (c) such Securities, together with any coupons appertaining thereto,
when completed by appropriate insertions and executed and delivered by the Company
to the Trustee for authentication in accordance with this Indenture, authenticated
and delivered by the Trustee in accordance with this Indenture and issued by the
Company in the manner and subject to any conditions specified in such Opinion of
Counsel, will constitute legal, valid and legally binding obligations of the
Company, enforceable in accordance with their terms, subject to applicable
bankruptcy, insolvency, fraudulent transfer, reorganization and other similar laws
of general applicability relating to or affecting the enforcement of creditors’
rights generally and to general equitable principles; and

     (ii) an Officers’ Certificate stating that all conditions precedent provided for in
this Indenture relating to the issuance of the Securities have been complied with and that,
to the best of the knowledge of the signers of such certificate, that no Event of Default
with respect to any of the Securities shall have occurred and be continuing.

If such form or terms have been so established, the Trustee shall not be required to authenticate
such Securities (or to enter into the related supplemental indenture, if applicable) if the issue
of such Securities pursuant to this Indenture will affect the Trustee’s own rights, duties,
obligations or immunities under the Securities and this Indenture or otherwise in a manner which is
not reasonably acceptable to the Trustee.

     Notwithstanding the provisions of Section 301 and of the preceding paragraph, if all the
Securities of any series are not to be issued at one time, it shall not be necessary to deliver an
Officers’ Certificate otherwise required pursuant to Section 301 or a Company Order, or an Opinion
of Counsel or an Officers’ Certificate otherwise required pursuant to the preceding paragraph at
the time of issuance of each Security of such series, but such order, opinion and certificates,
with appropriate modifications to cover such future issuances, shall be delivered at or before the
time of issuance of the first Security of such series.

     Each Registered Security shall be dated the date of its authentication and each Bearer
Security shall be dated as of the date specified as contemplated by Section 301.

     No Security or coupon shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Security or Security to which such coupon
appertains a certificate of authentication substantially in the form provided for herein duly
executed by the Trustee (subject to Section 611) by manual signature of an authorized signatory,
and such certificate upon any Security shall be conclusive evidence, and the only evidence, that
such Security has been duly authenticated and delivered hereunder and is entitled to the benefits
of this Indenture. Notwithstanding the foregoing, if any Security (including a Global Security)
shall have been authenticated and delivered hereunder but never issued and sold by the Company, and
the Company shall deliver such Security to the Trustee for cancellation as provided in Section 309
together with a written statement (which need not comply with Section 102 and need not be
accompanied by an Opinion of Counsel) stating that such Security

 

 

has never been issued and sold by
the Company, for all purposes of this Indenture such Security shall be deemed never to have been
authenticated and delivered hereunder and shall never be entitled to the benefits of this
Indenture.

     SECTION 304. Temporary Securities.

     (a) Pending the preparation of definitive Securities of any series, the Company may execute,
and upon Company Order the Trustee shall authenticate and deliver, temporary Securities which are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities in lieu of which they are
issued, in registered form, or, if authorized, in bearer form with one or more coupons or without
coupons, and with such appropriate insertions, omissions, substitutions and other variations as the
officers executing such Securities may determine, as conclusively evidenced by their execution of
such Securities. In the case of Securities of any series, such temporary Securities may be in
global form.

     Except in the case of temporary Global Securities (which shall be exchanged as otherwise
provided herein or as otherwise provided in or pursuant to a Board Resolution or supplemental
indenture pursuant to Section 301), if temporary Securities of any series are issued, the Company
will cause definitive Securities of that series to be prepared without unreasonable delay. After
the preparation of definitive Securities of such series, the temporary Securities of such series
shall be exchangeable for definitive Securities of such series upon surrender of the temporary
Securities of such series at the office or agency of the Company in a Place of Payment for that
series, without charge to the Holder. Upon surrender for cancellation of any one or more temporary
Securities of any series (accompanied by any non-matured coupons appertaining thereto), the Company
shall execute and the Trustee shall authenticate and deliver in exchange therefor a like principal
amount of definitive Securities of the same series of authorized denominations; provided,
however, that no definitive Bearer Security shall be delivered in exchange for a temporary
Registered Security; and provided further that a definitive Bearer Security shall
be delivered in exchange for a temporary Bearer Security only in compliance with the conditions set
forth in Section 303. Until so exchanged, the temporary Securities of any series shall in all
respects be entitled to the same benefits under this Indenture as definitive Securities of such
series.

     (b) Unless otherwise provided in or pursuant to a Board Resolution or supplemental indenture
pursuant to Section 301, the following provisions of this Section 304(b) shall govern the exchange
of temporary Securities other than through the facilities of The Depository Trust Company. If any
such temporary Security is issued in global form, then such temporary Global Security shall, unless
otherwise provided therein, be delivered to the London office of a depository or common depository
upon and pursuant to written direction of the Company (the “Common Depository”), for the benefit of
Euroclear and CEDEL, for credit to the respective accounts of the beneficial owners of such
Securities (or to such other accounts as they may direct).

 

 

     Without unnecessary delay but in any event not later than the date specified in, or
determined pursuant to the terms of, any such temporary Global Security (the “Exchange Date”), the
Company shall deliver to the Trustee definitive Securities, in aggregate principal amount equal to
the principal amount of such temporary Global Security, executed by the Company. On or after the
Exchange Date, such temporary Global Security shall be surrendered by the Common Depository to the
Trustee, as the Company’s agent for such purpose, to be exchanged, in whole or from time to time in
part, for definitive Securities without charge, and the Trustee shall authenticate and deliver, in
exchange for each portion of such temporary Global Security, an equal aggregate principal amount of
definitive Securities of the same series of authorized denominations and of like tenor as the
portion of such temporary Global Security to be exchanged. The definitive Securities to be
delivered in exchange for any such temporary Global Security shall be in bearer form, registered
form, permanent global bearer form or permanent global registered form, or any combination thereof,
as specified as contemplated by Section 301, and, if any combination thereof is so specified, as
requested by the beneficial owner thereof (as directed by or pursuant to information provided by
the Common Depository); provided, however, that, unless otherwise specified in such
temporary Global Security, upon such presentation by the Common Depository, such temporary Global
Security shall be accompanied by a certificate dated the Exchange Date or a subsequent date and
signed by Euroclear as to the portion of such temporary Global Security held for its account then
to be exchanged and a certificate dated the Exchange Date or a subsequent date and signed by CEDEL
as to the portion of such temporary Global Security held for its account then to be exchanged, each
in the form set forth in Exhibit A-2 to this Indenture or in such other form as may be
established pursuant to Section 301; and provided further that definitive Bearer
Securities shall be delivered in exchange for a portion of a temporary Global Security only in
compliance with the requirements of Section 303.

     Unless otherwise specified in such temporary Global Security, the interest of a beneficial
owner of Securities of a series in a temporary Global Security shall be exchanged for definitive
Securities of the same series and of like tenor following the Exchange Date when the account holder
instructs Euroclear or CEDEL, as the case may be, to request such exchange on his behalf and
delivers to Euroclear or CEDEL, as the case may be, a certificate in the form set forth in
Exhibit B-1 to this Indenture (or in such other form as may be established pursuant to
Section 301), dated no earlier than 15 days prior to the Exchange Date, copies of which certificate
shall be available from the offices of Euroclear and CEDEL, the Trustee, any Authenticating Agent
appointed for such series of Securities and each Paying Agent. Unless otherwise specified in such
temporary Global Security, any such exchange shall be made free of charge to the beneficial owners
of such temporary Global Security, except that a Person receiving definitive Securities must bear
the cost of insurance, postage, transportation and the like unless such Person takes delivery of
such definitive Securities in person at the offices of Euroclear or CEDEL. Definitive Securities
in bearer form to be delivered in exchange for any portion of a temporary Global Security shall be
delivered only to an address located outside the United States.

     Until exchanged in full as hereinabove provided, the temporary Securities of any series
shall in all respects be entitled to the same benefits under this Indenture as definitive
Securities of the same series and of like tenor authenticated and delivered hereunder, except that,
unless

 

 

otherwise specified as contemplated by Section 301, interest payable on a temporary Global
Security on an Interest Payment Date for Securities of such series occurring prior to the
applicable Exchange Date shall be payable to Euroclear and CEDEL on such Interest Payment Date upon
delivery by Euroclear and CEDEL to the Trustee of a certificate or certificates in the form set
forth in Exhibit B-2 to this Indenture (or in such other forms as may be established
pursuant to Section 301), for credit without further interest on or after such Interest Payment
Date to the respective accounts of Persons who are the beneficial owners of such temporary Global
Security on such Interest Payment Date and who have each delivered to Euroclear or CEDEL, as the
case may be, a certificate dated no earlier than 15 days prior to the Interest Payment Date
occurring prior to such Exchange Date in the form set forth as Exhibit B-1 to this
Indenture (or in such other forms as may be established pursuant to Section 301). Notwithstanding
anything to the contrary herein contained, the certifications made pursuant to this paragraph shall
satisfy the certification requirements of the preceding two paragraphs of this Section 304(b) and
of the third paragraph of Section 303 of this Indenture and the interests of the Persons who are
the beneficial owners of the temporary Global Security with respect to which such certification was
made will be exchanged for definitive Securities of the same series and of like tenor on the
Exchange Date or the date of certification if such date occurs after the Exchange Date, without
further act or deed by such beneficial owners. Except as otherwise provided in this paragraph, no
payments of principal or interest owing with respect to a beneficial interest in a temporary Global
Security will be made unless and until such interest in such temporary Global Security shall have
been exchanged for an interest in a definitive Security. Any interest so received by Euroclear and
CEDEL and not paid as herein provided shall be returned to the Trustee prior to the expiration of
two years after such Interest Payment Date in order to be repaid to the Company.

     SECTION 305. Registration, Registration of Transfer and Exchange. The Company shall
cause to be kept at the Corporate Trust Office of the Trustee or in any office or agency of the
Company in a Place of Payment a register for each series of Securities (the registers maintained in
such office or in any such office or agency of the Company in a Place of Payment being herein
sometimes referred to collectively as the “Security Register”) in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration of Registered
Securities and of transfers of Registered Securities. The Security Register shall be in written
form or any other form capable of being converted into written form within a reasonable time. The
Trustee, at its Corporate Trust Office, is hereby initially appointed “Security Registrar” for the
purpose of registering Registered Securities and transfers of Registered Securities on such
Security Register as herein provided. In the event that the Trustee shall cease to be Security
Registrar, it shall have the right to examine, and be provided a copy of, the Security Register at
all reasonable times.

     Subject to the provisions of this Section 305, upon surrender for registration of
transfer of any Registered Security of any series at any office or agency of the Company in a Place
of Payment for that series, the Company shall execute, and the Trustee shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more new Registered
Securities of the same series, of any authorized denominations and of a like aggregate principal

 

 

amount, bearing a number not contemporaneously outstanding, and containing identical terms and
provisions.

     Subject to the provisions of this Section 305, at the option of the Holder, Registered
Securities of any series may be exchanged for other Registered Securities of the same series, of
any authorized denomination or denominations and of a like aggregate principal amount, containing
identical terms and provisions, upon surrender of the Registered Securities to be exchanged at any
such office or agency. Whenever any such Registered Securities are so surrendered for exchange,
the Company shall execute, and the Trustee shall authenticate and deliver, the Registered
Securities which the Holder making the exchange is entitled to receive. Unless otherwise specified
with respect to any series of Securities as contemplated by Section 301, Bearer Securities may not
be issued in exchange for Registered Securities.

     If (but only if) permitted by the applicable Board Resolution and (subject to Section
303) set forth in the applicable Officers’ Certificate, or in any indenture supplemental hereto,
delivered as contemplated by Section 301, at the option of the Holder, Bearer Securities of any
series may be exchanged for Registered Securities of the same series of any authorized
denominations and of a like aggregate principal amount and tenor, upon surrender of the Bearer
Securities to be exchanged at any such office or agency, with all unmatured coupons and all matured
coupons in default thereto appertaining. If the Holder of a Bearer Security is unable to produce
any such unmatured coupon or coupons or matured coupon or coupons in default, any such permitted
exchange may be effected if the Bearer Securities are accompanied by payment in funds acceptable to
the Company in an amount equal to the face amount of such missing coupon or coupons, or the
surrender of such missing coupon or coupons may be waived by the Company and the Trustee if there
is furnished to them such security or indemnity as they may require to save each of them and any
Paying Agent harmless. If thereafter the Holder of such Security shall surrender to any Paying
Agent any such missing coupon in respect of which such a payment shall have been made, such Holder
shall be entitled to receive the amount of such payment; provided, however, that,
except as otherwise provided in Section 1002, interest represented by coupons shall be payable only
upon presentation and surrender of those coupons at an office or agency located outside the United
States. Notwithstanding the foregoing, in case a Bearer Security of any series is surrendered at
any such office or agency in a permitted exchange for a Registered Security of the same series and
like tenor after the close of business at such office or agency on (i) any Regular Record Date and
before the opening of business at such office or agency on the relevant Interest Payment Date, or
(ii) any Special Record Date and before the opening of business at such office or agency on the
related proposed date for payment of Defaulted Interest, such Bearer Security shall be surrendered
without the coupon relating to such Interest Payment Date or proposed date for payment, as the case
may be, and interest or Defaulted Interest, as the case may be, will not be payable on such
Interest Payment Date or proposed date for payment, as the case may be, in respect of the
Registered Security issued in exchange for such Bearer Security, but will be payable only to the
Holder of such coupon when due in accordance with the provisions of this Indenture. Whenever any
Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange is entitled to
receive.

 

 

     Notwithstanding the foregoing, except as otherwise specified as contemplated by Section
301, any permanent Global Security shall be exchangeable only as provided in this paragraph. If
the depository for any permanent Global Security is The Depository Trust Company (“DTC”), then,
unless the terms of such Global Security expressly permit such Global Security to be exchanged in
whole or in part for definitive Securities, a Global Security may be transferred, in whole but not
in part, only to a nominee of DTC, or by a nominee of DTC to DTC, or to a successor to DTC for such
Global Security selected or approved by the Company or to a nominee of such successor to DTC. If
at any time DTC notifies the Company that it is unwilling or unable to continue as depository for
the applicable Global Security or Securities or if at any time DTC ceases to be a clearing agency
registered under the Securities Exchange Act of 1934 if so required by applicable law or
regulation, the Company shall appoint a successor depository with respect to such Global Security
or Securities. If (x) a successor depository for such Global Security or Securities is not
appointed by the Company within 90 days after the Company receives such notice or becomes aware of
such unwillingness, inability or ineligibility, (y) an Event of Default has occurred and is
continuing and the beneficial owners representing a majority in principal amount of the applicable
series of Securities represented by such Global Security or Securities advise DTC to cease acting
as depository for such Global Security or Securities or (z) the Company, in its sole discretion,
determines at any time that all Outstanding Securities (but not less than all) of any series issued
or issuable in the form of one or more Global Securities shall no longer be represented by such
Global Security or Securities, then the Company shall execute, and the Trustee shall authenticate
and deliver definitive Securities of like series, rank, tenor and terms in definitive form in an
aggregate principal amount equal to the principal amount of such Global Security or Securities. If
any beneficial owner of an interest in a permanent global Security is otherwise entitled to
exchange such interest for Securities of such series and of like tenor and principal amount of
another authorized form and denomination, as specified as contemplated by Section 301 and provided
that any applicable notice provided in the permanent Global Security shall have been given, then
without unnecessary delay but in any event not later than the earliest date on which such interest
may be so exchanged, the Company shall execute, and the Trustee shall authenticate and deliver
definitive Securities in aggregate principal amount equal to the principal amount of such
beneficial owner’s interest in such permanent Global Security. On or after the earliest date on
which such interests may be so exchanged, such permanent Global Security shall be surrendered for
exchange by DTC or such other depository as shall be specified in the Company Order with respect
thereto to the Trustee, as the Company’s agent for such purpose; provided, however,
that no such exchanges may occur during a period beginning at the opening of business 15 days
before any selection of Securities to be redeemed and ending on the relevant Redemption Date if the
Security for which exchange is requested may be among those selected for redemption; and
provided further that no Bearer Security delivered in exchange for a portion of a
permanent Global Security shall be mailed or otherwise delivered to any location in the United
States. If a Registered Security is issued in exchange for any portion of a permanent Global
Security after the close of business at the office or agency where such exchange occurs on (i) any
Regular Record Date and before the opening of business at such office or agency on the relevant
Interest Payment Date, or (ii) any Special Record Date and the opening of business at such office
or agency on the related proposed date for

 

 

payment of Defaulted Interest, interest or Defaulted
Interest, as the case may be, will not be payable on such Interest Payment Date or proposed date
for payment, as the case may be, in respect of such Registered Security, but will be payable on
such Interest Payment Date or proposed date for payment, as the case may be, only to the Person to
whom interest in respect of such portion of such permanent Global Security is payable in accordance
with the provisions of this Indenture.

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

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

     No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 906, 1107 or 1305 not involving any
transfer.

     The Company or the Trustee, as applicable, shall not be required (i) to issue, register
the transfer of or exchange any Security if such Security may be among those selected for
redemption during a period beginning at the opening of business 15 days before selection of the
Securities to be redeemed under Section 1103 and ending at the close of business on (A) if such
Securities are issuable only as Registered Securities, the day of the mailing of the relevant
notice of redemption and (B) if such Securities are issuable as Bearer Securities, the day of the
first publication of the relevant notice of redemption or, if such Securities are also issuable as
Registered Securities and there is no publication, the mailing of the relevant notice of
redemption, or (ii) to register the transfer of or exchange any Registered Security so selected for
redemption in whole or in part, except, in the case of any Registered Security to be redeemed in
part, the portion thereof not to be redeemed, or (iii) to exchange any Bearer Security so selected
for redemption except that such a Bearer Security may be exchanged for a Registered Security of
that series and like tenor, provided that such Registered Security shall be simultaneously
surrendered for redemption, or (iv) to issue, register the transfer of or exchange any Security
which has been surrendered for repayment at the option of the Holder, except the portion, if any,
of such Security not to be so repaid.

     SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities. If any mutilated
Security or a Security with a mutilated coupon appertaining to it is surrendered to the Trustee or
the Company, together with, in proper cases, such security or indemnity as may be required by the
Company or the Trustee to save each of them or any agent of either of them harmless, the

 

 

Company
shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of
the same series and principal amount, containing identical terms and provisions and bearing a
number not contemporaneously outstanding, with coupons corresponding to the coupons, if any,
appertaining to the surrendered Security.

     If there shall be delivered to the Company and to the Trustee (i) evidence to their
satisfaction of the destruction, loss or theft of any Security or coupon, and (ii) such security or
indemnity as may be required by them to save each of them and any agent of either of them harmless,
then, in the absence of notice to the Company or the Trustee that such Security or coupon has been
acquired by a bona fide purchaser, the Company shall execute and upon its request the Trustee shall
authenticate and deliver, in lieu of any such destroyed, lost or stolen Security or in exchange for
the Security to which a destroyed, lost or stolen coupon appertains (with all appurtenant coupons
not destroyed, lost or stolen), a new Security of the same series and principal amount, containing
identical terms and provisions and bearing a number not contemporaneously outstanding, with coupons
corresponding to the coupons, if any, appertaining to such destroyed, lost or stolen Security or to
the Security to which such destroyed, lost or stolen coupon appertains.

     Notwithstanding the provisions of the previous two paragraphs, in case any such mutilated,
destroyed, lost or stolen Security or coupon has become or is about to become due and payable, the
Company in its discretion may, instead of issuing a new Security, with coupons corresponding to the
coupons, if any, appertaining to such destroyed, lost or stolen Security or to the Security to
which such destroyed, lost or stolen coupon appertains, pay such Security or coupon;
provided, however, that payment of principal of (and premium or Make-Whole Amount,
if any), and any interest on, Bearer Securities shall, except as otherwise provided in Section
1002, be payable only at an office or agency located outside the United States and, unless
otherwise specified as contemplated by Section 301, any interest on Bearer Securities shall be
payable only upon presentation and surrender of the coupons appertaining thereto.

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

     Every new Security of any series with its coupons, if any, issued pursuant to this
Section in lieu of any destroyed, lost or stolen Security, or in exchange for a Security to which a
destroyed, lost or stolen coupon appertains, shall constitute an original additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen Security and its coupons,
if any, or the destroyed, lost or stolen coupon shall be at any time enforceable by anyone, and
shall be entitled to all the benefits of this Indenture equally and proportionately with any and
all other Securities of that series and their coupons, if any, duly issued hereunder.

 

 

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

     SECTION 307. Payment of Interest; Interest Rights Preserved. Except as otherwise
specified with respect to a series of Securities in accordance with the provisions of Section 301,
interest on any Registered Security that is payable, and is punctually paid or duly provided for,
on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for
such interest at the office or agency of the Company maintained for such purpose pursuant to
Section 1002; provided, however, that each installment of interest on any
Registered Security may at the Company’s option be paid by (i) mailing a check for such interest,
payable to or upon the written order of the Person entitled thereto pursuant to Section 308, to the
address of such Person as it appears on the Security Register or (ii) transfer to an account
maintained by the payee located inside the United States.

     Unless otherwise provided as contemplated by Section 301 with respect to the Securities of any
series, payment of interest may be made, in the case of a Bearer Security, by transfer to an
account maintained by the payee with a bank located outside the United States.

     Unless otherwise provided as contemplated by Section 301, every permanent global Security will
provide that interest, if any, payable on any Interest Payment Date will be paid to DTC, Euroclear
and/or CEDEL, as the case may be, with respect to that portion of such permanent global Security
held for its account by Cede & Co. or the Common Depository, as the case may be, for the purpose of
permitting such party to credit the interest received by it in respect of such permanent global
Security to the accounts of the beneficial owners thereof.

     In case a Bearer Security of any series is surrendered in exchange for a Registered Security
of such series after the close of business (at an office or agency in a Place of Payment for such
series) on any Regular Record Date and before the opening of business (at such office or agency) on
the next succeeding Interest Payment Date, such Bearer Security shall be surrendered without the
coupon relating to such Interest Payment Date and interest will not be payable on such Interest
Payment Date in respect of the Registered Security issued in exchange for such Bearer Security, but
will be payable only to the Holder of such coupon when due in accordance with the provisions of
this Indenture.

     Except as otherwise specified with respect to a series of Securities in accordance with
the provisions of Section 301, any interest on any Registered Security of any series that is
payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein
called “Defaulted Interest”) shall forthwith cease to be payable to the registered Holder thereof
on the relevant Regular Record Date by virtue of having been such Holder, and such Defaulted
Interest may be paid by the Company, at its election in each case, as provided in clause (1) or (2)
below:

          (1) The Company may elect to make payment of any Defaulted Interest to the
Persons in whose names the Registered Securities of such series (or their respective

 

 

Predecessor Securities) are registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest, which shall be fixed in the following manner. The
Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to
be paid on each Registered Security of such series and the date of the proposed payment
(which shall not be less than 20 days after such notice is received by the Trustee), and at
the same time the Company shall deposit with the Trustee an amount of money in the currency
or currencies, currency unit or units or composite currency or currencies in which the
Securities of such series are payable (except as otherwise specified pursuant to Section 301
for the Securities of such series) equal to the aggregate amount proposed to be paid in
respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee
for such deposit on or prior to the date of the proposed payment, such money when deposited
to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in
this clause provided. Thereupon the Trustee shall fix a Special Record Date for the payment
of such Defaulted Interest which shall be not more than 15 days and not less than 10 days
prior to the date of the proposed payment and not less than 10 days after the receipt by the
Trustee of the notice of the proposed payment. The Trustee shall promptly notify the
Company of such Special Record Date and, in the name and at the expense of the Company,
shall cause notice of the proposed payment of such Defaulted Interest and the Special Record
Date therefor to be mailed, first-class postage prepaid, to each Holder of Registered
Securities of such series at his address as it appears in the Security Register not less
than 10 days prior to such Special Record Date. The Trustee may, in its discretion, in the
name and at the expense of the Company, cause a similar notice to be published at least once
in an Authorized Newspaper in each Place of Payment, but such publications shall not be a
condition precedent to the establishment of such Special Record Date. Notice of the
proposed payment of such Defaulted Interest and the Special Record Date therefor having been
mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names the
Registered Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on such Special Record Date and shall no longer be
payable pursuant to the following clause (2). In case a Bearer Security of any series is
surrendered at the office or agency in a Place of Payment for such series in exchange for a
Registered Security of such series after the close of business at such office or agency on
any Special Record Date and before the opening of business at such office or agency on the
related proposed date for payment of Defaulted Interest, such Bearer Security shall be
surrendered without the coupon relating to such proposed date of payment and Defaulted
Interest will not be payable on such proposed date of payment in respect of the Registered
Security issued in exchange for such Bearer Security, but will be payable only to the Holder
of such coupon when due in accordance with the provisions of this Indenture.

          (2) The Company may make payment of any Defaulted Interest on the Registered Securities
of any series in any other lawful manner not inconsistent with the requirements of any
securities exchange on which such Securities may be listed, and upon such notice as may be
required by such exchange, if, after notice given by the Company

 

 

to the Trustee of the
proposed payment pursuant to this clause, such manner of payment shall be deemed practicable
by the Trustee.

     Subject to the foregoing provisions of this Section and Section 305, each Security delivered
under this Indenture upon registration of transfer of or in exchange for or in lieu of any other
Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried
by such other Security.

     SECTION 308. Persons Deemed Owners. Prior to due presentment of a Registered
Security for registration of transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the Person in whose name such Registered Security is registered as the owner of
such Security for the purpose of receiving payment of principal of (and premium or Make-Whole
Amount, if any), and (subject to Sections 305 and 307) interest on, such Registered Security and
for all other purposes whatsoever, whether or not such Registered Security be overdue, and neither
the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to
the contrary. All such payments so made to any such Person, or upon such Person’s order, shall be
valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the
liability for money payable upon any such Security.

     Title to any Bearer Security and any coupons appertaining thereto shall pass by delivery. The
Company, the Trustee and any agent of the Company or the Trustee may treat the Holder of any Bearer
Security and the Holder of any coupon as the absolute owner of such Security or coupon for the
purpose of receiving payment thereof or on account thereof and for all other purposes whatsoever,
whether or not such Security or coupon be overdue, and neither the Company, the Trustee nor any
agent of the Company or the Trustee shall be affected by notice to the contrary.

     No holder of any beneficial interest in any Global Security held on its behalf by a
depository shall have any rights under this Indenture with respect to such Global Security and such
depository (which is the Holder of such security) shall be treated by the Company, the Trustee, and
any agent of the Company or the Trustee as the owner of such Global Security for all purposes
whatsoever. None of the Company, the Trustee, any Paying Agent or the Security Registrar will
have any responsibility or liability for any aspect of the records relating to or payments made on
account of beneficial ownership interests of a Global Security or for maintaining, supervising or
reviewing any records relating to such beneficial ownership interests.

     Notwithstanding the foregoing, with respect to any Global Security, nothing herein shall
prevent the Company, the Trustee, or any agent of the Company or the Trustee, from giving effect to
any written certification, proxy or other authorization furnished by any depository, as a Holder,
with respect to such Global Security or impair, as between such depository and owners of beneficial
interests in such Global Security, the operation of customary practices governing the exercise of
the rights of such depository (or its nominee) as Holder of such Global Security.

 

 

     SECTION 309. Cancellation. All Securities and coupons surrendered for payment,
redemption, repayment at the option of the Holder, registration of transfer or exchange or for
credit against any sinking fund payment shall, if surrendered to any Person other than the Trustee,
be delivered to the Trustee, and any such Securities and coupons and Securities and coupons
surrendered directly to the Trustee for any such purpose shall be promptly cancelled by it. The
Company may at any time deliver to the Trustee for cancellation any Securities previously
authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever,
and may deliver to the Trustee (or to any other Person for delivery to the Trustee) for
cancellation any Securities previously authenticated hereunder which the Company has not issued and
sold, and all Securities so delivered shall be promptly cancelled by the Trustee. If the Company
shall so acquire any of the Securities, however, such acquisition shall not operate as a redemption
or satisfaction of the indebtedness represented by such Securities unless and until the same are
surrendered to the Trustee for cancellation. No Securities shall be authenticated in lieu of or in
exchange for any Securities cancelled as provided in this Section, except as expressly permitted by
this Indenture. Cancelled Securities and coupons held by the Trustee shall be destroyed by the
Trustee and the Trustee shall deliver a certificate of such destruction to the Company, unless the
Trustee is otherwise directed by a Company Order.

     SECTION 310. Computation of Interest. Except as otherwise specified as contemplated
by Section 301 with respect to Securities of any series, interest on the Securities of each series
shall be computed on the basis of a 360-day year consisting of twelve 30-day months.

ARTICLE FOUR — SATISFACTION AND DISCHARGE

     SECTION 401. Satisfaction and Discharge of Indenture. This Indenture shall
upon Company Request cease to be of further effect with respect to any series of Securities
specified in such Company Request (except as to any surviving rights of registration of transfer or
exchange of Securities of such series herein expressly provided for), and the Trustee, upon receipt
of a Company Order, and at the expense of the Company, shall execute instruments in form and
substance satisfactory to the Trustee and the Company acknowledging satisfaction and discharge of
this Indenture as to such series when

          (1) either

     (A) all Securities of such series theretofore authenticated and delivered and
all coupons, if any, appertaining thereto (other than (i) coupons appertaining to
Bearer Securities surrendered for exchange for Registered Securities and maturing
after such exchange, whose surrender is not required or has been waived as provided
in Section 305, (ii) Securities and coupons of such series which have been
destroyed, lost or stolen and which have been replaced or paid as provided in
Section 306, (iii) coupons appertaining to Securities called for redemption and
maturing after the relevant Redemption Date, whose surrender has been waived as
provided in Section 1106, and (iv) Securities and coupons of such series for

 

 

whose
payment money has theretofore been deposited in trust or segregated and held in
trust by the Company and thereafter repaid to the Company or discharged from such
trust, as provided in Section 1003) have been delivered to the Trustee for
cancellation; or

     (B) all Securities of such series and, in the case of (i) or (ii) below, any
coupons appertaining thereto not theretofore delivered to the Trustee for
cancellation

     (i) have become due and payable, or

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

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

and the Company, in the case of (i), (ii) or (iii) above, has irrevocably
deposited or caused to be deposited with the Trustee as trust funds in trust for the
purpose an amount in the currency or currencies, currency unit or units or composite
currency or currencies in which the Securities of such series are payable,
sufficient to pay and discharge the entire indebtedness on such Securities and such
coupons not theretofore delivered to the Trustee for cancellation, for principal
(and premium or Make-Whole Amount, if any) and interest to the date of such deposit
(in the case of Securities which have become due and payable) or to the Stated
Maturity or Redemption Date, as the case may be;

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

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

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to
the Trustee and any predecessor Trustee under Section 606, the obligations of the Company to any
Authenticating Agent under Section 611 and, if money shall have been deposited with and held by the
Trustee pursuant to subclause (B) of clause (1) of this Section, the obligations of the Trustee
under Section 402 and the last paragraph of Section 1003 shall survive.

 

 

     SECTION 402. Application of Trust Funds. Subject to the provisions of the last
paragraph of Section 1003, all money deposited with the Trustee pursuant to Section 401 shall be
held in trust and applied by it, in accordance with the provisions of the Securities, the coupons
and this Indenture, to the payment, either directly or through any Paying Agent (including the
Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled
thereto, of the principal (and premium or Make-Whole Amount, if any), and any interest for whose
payment such money has been deposited with or received by the Trustee, but such money need not be
segregated from other funds except to the extent required by law.

ARTICLE FIVE — REMEDIES

     SECTION 501. Events of Default. “Event of Default,” wherever used herein with
respect to any particular series of Securities, means any one of the following events (whatever the
reason for such Event of Default and whether or not it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of any court or any
order, rule or regulation of any administrative or governmental body):

          (1) default in the payment of any interest on any Security of that series or of any
coupon appertaining thereto, when such interest or coupon becomes due and payable, and
continuance of such default for a period of 30 days; or

          (2) default in the payment of the principal of (or premium or Make-Whole Amount,
if any, on) any Security of that series when it becomes due and payable at its Maturity; or

          (3) default in the deposit of any sinking fund payment, when and as due by the terms of
any Security of that series; or

          (4) default in the performance, or breach, of any covenant or warranty of the Company
in this Indenture with respect to any Security of that series (other than a covenant or
warranty a default in whose performance or whose breach is elsewhere in this Section
specifically dealt with), and continuance of such default or breach for a period of 60 days
after there has been given, by registered or certified mail, to the Company by the Trustee
or to the Company and the Trustee by the Holders of at least 25% in principal amount of the
Outstanding Securities of that series a written notice specifying such default or breach and
requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder;
or

          (5) default under any bond, debenture, note, mortgage, indenture or instrument under
which there may be issued or by which there may be secured or evidenced any indebtedness for
money borrowed by the Company (or by any Subsidiary, the repayment of which the Company has
guaranteed or for which the Company is directly responsible or liable as obligor or
guarantor), having an aggregate principal

 

 

amount outstanding of at least $25,000,000,
whether such indebtedness now exists or shall hereafter be created, which default shall have
resulted in such indebtedness becoming or being declared due and payable prior to the date
on which it would otherwise have become due and payable, without such indebtedness having
been discharged, or such acceleration having been rescinded or annulled, within a period of
10 days after there shall have been given, by registered or certified mail, to the Company
by the Trustee or to the Company and the Trustee by the Holders of at least 10% in principal
amount of the Outstanding Securities of that series a written notice specifying such default
and requiring the Company to cause such indebtedness to be discharged or cause such
acceleration to be rescinded or annulled and stating that such notice is a “Notice of
Default” hereunder; or

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

          (A) commences a voluntary case,

          (B) consents to the entry of an order for relief
against it in an involuntary case,

          (C) consents to the appointment of a Custodian of it or for all or
substantially all of its property, or

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

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

          (A) is for relief against the Company or any Significant Subsidiary in an
involuntary case,

          (B) appoints a Custodian of the Company or any Significant Subsidiary or for
all or substantially all of either of its property, or

          (C) orders the liquidation of the Company or any Significant Subsidiary, and
the order or decree remains unstayed and in effect for 90 days; or

          (8) any other Event of Default provided with respect to Securities of that series.

As used in this Section 501, the term “Bankruptcy Law” means title 11, U.S. Code or any similar
Federal or state law for the relief of debtors and the term “Custodian” means any receiver,
trustee, assignee, liquidator or other similar official under any Bankruptcy Law.

 

 

     SECTION 502. Acceleration of Maturity; Rescission and Annulment. If an Event of
Default with respect to Securities of any series at the time Outstanding occurs and is continuing,
then and in every such case the Trustee or the Holders of not less than 25% in principal amount of
the Outstanding Securities of that series may declare the principal amount (or, if Securities of
that Series are Original Issue Discount Securities or Indexed Securities, such portion of the
principal as may be specified in the terms thereof) of all the Securities of that series to be due
and payable immediately, by a notice in writing to the Company (and to the Trustee if given by the
Holders), and upon any such declaration such principal or specified portion thereof shall become
immediately due and payable.

     At any time after such a declaration of acceleration with respect to Securities of any series
has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of
the Outstanding Securities of that series, by written notice to the Company and the Trustee, may
rescind and annul such declaration of acceleration and its consequences if:

          (1) the Company has paid or deposited with the Trustee a sum sufficient to pay
in the currency, currency unit or composite currency in which the Securities of such series
are payable (except as otherwise specified pursuant to Section 301 for the Securities of
such series):

          (A) all overdue installments of interest on all Outstanding Securities of that
series and any related coupons,

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

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

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

          (2) all Events of Default with respect to Securities of that series, other than the
nonpayment of the principal of (or premium or Make-Whole Amount, if any) or interest on
Securities of that series which have become due solely by such declaration of acceleration,
have been cured or waived as provided in Section 513.

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

 

 

     SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee. The
Company covenants that if:

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

          (2) default is made in the payment of the principal of (or premium or Make-Whole
Amount, if any, on) any Security of any series at its Maturity,

then the Company will, upon demand of the Trustee, pay to the Trustee, for the benefit of
the Holders of such Securities of such series and coupons, the whole amount then due and payable on
such Securities and coupons for principal (and premium or Make-Whole Amount, if any) and interest,
with interest upon any overdue principal (and premium or Make-Whole Amount, if any) and, to the
extent that payment of such interest shall be legally enforceable, upon any overdue installments of
interest at the rate or rates borne by or provided for in such Securities, and, in addition
thereto, such further amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel.

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

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

     SECTION 504. Trustee May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or of such other obligor or their creditors, the Trustee
(irrespective of whether the principal of the Securities of any series shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee
shall have made any demand on the Company for the payment of overdue principal, premium or

 

 

Make-Whole Amount, if any, or interest) shall be entitled and empowered, by intervention in such
proceeding or otherwise:

          (i) to file and prove a claim for the whole amount, or such lesser amount as may be
provided for in the Securities of such series, of principal (and premium or Make-Whole
Amount, if any) and interest owing and unpaid in respect of the Securities 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 the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel) and of the Holders allowed in such
judicial proceeding, and

          (ii) to collect and receive any moneys or other property
payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator (or other similar
official) in any such judicial proceeding is hereby authorized by each Holder of Securities of such
series and coupons to make such payments to the Trustee, and in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay to the Trustee any amount
due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee and
any predecessor Trustee, their agents and counsel, and any other amounts due the Trustee or any
predecessor Trustee under Section 606.

     Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Holder of a Security or coupon any plan of reorganization,
arrangement, adjustment or composition affecting the Securities or coupons or the rights of any
Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder of a
Security or coupon in any such proceeding.

     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 Securities, and it shall not be necessary
to make any Holders of the Securities parties to any such proceedings.

     SECTION 505.  Trustee May Enforce Claims Without Possession of Securities or Coupons.
All rights of action and claims under this Indenture or any of the Securities or coupons may be
prosecuted and enforced by the Trustee without the possession of any of the Securities or coupons
or the production thereof in any proceeding relating thereto, and any such proceeding instituted by
the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of
judgment shall, after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of
the Holders of the Securities and coupons in respect of which such judgment has been recovered.

 

 

     SECTION 506. Application of Money Collected. Any money 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 money on account of principal (or premium or
Make-Whole Amount, if any) or interest, upon presentation of the Securities or coupons, or both, as
the case may be, and the notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

     FIRST: To the payment of all amounts due the Trustee and any predecessor Trustee under
Section 606;

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

     THIRD: To the payment of the remainder, if any, to the Company.

     SECTION 507. Limitation on Suits. No Holder of any Security of any series or any
related coupon shall have any right to institute any proceeding, judicial or otherwise, with
respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless:

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

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

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

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

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

it being understood and intended that no one or more of such Holders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb

 

 

or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or
preference over any other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all such Holders.

     SECTION 508. Unconditional Right of Holders to Receive Principal, Premium or Make-Whole
Amount, if any, and Interest. Notwithstanding any other provision in this Indenture, the
Holder of any Security or coupon shall have the right which is absolute and unconditional to
receive payment of the principal of (and premium or Make-Whole Amount, if any) and (subject to
Sections 305 and 307) interest on such Security or payment of such coupon on the respective due
dates expressed in such Security or coupon (or, in the case of redemption, on the Redemption Date)
and to institute suit for the enforcement of any such payment, and such rights shall not be
impaired without the consent of such Holder.

     SECTION 509. Restoration of Rights and Remedies. If the Trustee or any Holder
of a Security or coupon has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any reason, or has been
determined adversely to the Trustee or to such Holder, then and in every such case, the Company,
the Trustee and the Holders of Securities and coupons shall, subject to any determination in such
proceeding, be restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted.

     SECTION 510. Rights and Remedies Cumulative. Except as otherwise provided with
respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities or coupons
in the last paragraph of Section 306, no right or remedy herein conferred upon or reserved to the
Trustee or to the Holders of Securities or coupons is intended to be exclusive of any other right
or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

     SECTION 511. Delay or Omission Not Waiver. No delay or omission of the Trustee or of
any Holder of any Security or coupon to exercise any right or remedy accruing upon any Event of
Default shall impair any such right or remedy or constitute a waiver of any such Event of Default
or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee
or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by
the Trustee or by the Holders of Securities or coupons, as the case may be.

     SECTION 512. Control by Holders of Securities. The Holders of not less than a
majority in principal amount of the Outstanding Securities of any series shall have the right to
direct the time, method and place of conducting any proceeding for any remedy available to the
Trustee or exercising any trust or power conferred on the Trustee with respect to the Securities of
such series, provided that

 

 

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

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

          (3) the Trustee need not take any action which might involve it in personal liability
or be unduly prejudicial to the Holders of Securities of such series not joining therein.

     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
Holders.

     SECTION 513. Waiver of Past Defaults. The Holders of not less than a majority in
principal amount of the Outstanding Securities of any series may on behalf of the Holders of all
the Securities of such series and any related coupons waive any past default hereunder with respect
to such series and its consequences, except a default

          (1) in the payment of the principal of (or premium or Make-Whole Amount, if any) or
interest on any Security of such series or any related coupons, or

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

          (3) in respect of a covenant or provision hereof for the benefit
or protection of the Trustee, without its express written consent.

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

     SECTION 514. Waiver of Usury, Stay or Extension Laws. The Company covenants (to the
extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any
manner whatsoever claim or take the benefit or advantage of, any usury, stay or extension law
wherever enacted, now or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that it will not hinder,
delay or impede the execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law had been enacted.

 

 

     SECTION 515. Undertaking for Costs. All parties to this Indenture agree, and
each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any
court may in its discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken or omitted by it as
Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such
suit, and that such court may in its discretion assess reasonable costs, including reasonable
attorneys’ fees, against any party litigant in such suit having due regard to the merits and good
faith of the claims or defenses made by such party litigant; but the provisions of this Section
shall not apply to any suit instituted by the Trustee, to any suit instituted by any Holder, or
group of Holders, holding in the aggregate more than 10% in principal amount of the Outstanding
Securities of any series, or to any suit instituted by any Holder for the enforcement of the
payment of the principal of (or premium or Make-Whole Amount, if any) or interest on any Security
on or after the respective Stated Maturities expressed in such Security (or, in the case of
redemption, on or after the Redemption Date).

ARTICLE SIX — THE TRUSTEE

     SECTION 601. Notice of Defaults. Within 90 days after the occurrence of any default
hereunder with respect to the Securities of any series, the Trustee shall transmit in the manner
and to the extent provided in TIA Section 313(c), notice of such default hereunder known to the
Trustee, unless such default shall have been cured or waived; provided, however,
that, except in the case of a default in the payment of the principal of (or premium or Make-Whole
Amount, if any) or interest on any Security of such series, or in the payment of any sinking or
purchase fund installment with respect to the Securities of such series, the Trustee shall be
protected in withholding such notice if and so long as the board of directors, the executive
committee, or a trust committee of directors and/or Responsible Officers of the Trustee in good
faith determine that the withholding of such notice is in the interests of the Holders of the
Securities and coupons of such series; and provided further that in the case of any
default or breach of the character specified in Section 501(4) with respect to the Securities and
coupons of such series, no such notice to Holders shall be given until at least 60 days after the
occurrence thereof. For the purpose of this Section, the term “default” means any event which is,
or after notice or lapse of time or both would become, an Event of Default with respect to the
Securities of such series.

     SECTION 602. Certain Rights of Trustee. Subject to the provisions of TIA Section
315(a) through 315(d):

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

 

 

          (2) any request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order (other than delivery of any Security,
together with any coupons appertaining thereto, to the Trustee for authentication and
delivery pursuant to Section 303 which shall be sufficiently evidenced as provided therein)
and any resolution of the Board of Directors may be sufficiently evidenced by a Board
Resolution;

          (3) whenever in the administration of this Indenture the Trustee shall deem it
desirable that a matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may,
in the absence of bad faith on its part, rely upon an Officers’ Certificate;

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

          (5) the Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the Holders of
Securities of any series or any related coupons pursuant to this Indenture, unless such
Holders shall have offered to the Trustee security or indemnity reasonably satisfactory to
the Trustee against the costs, expenses and liabilities which might be incurred by it in
compliance with such request or direction;

          (6) 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, coupon or other paper or
document, unless requested in writing so to do by the Holders of not less than a majority in
aggregate principal amount of the Outstanding Securities of any series; 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 to the Trustee by the security afforded to it
by the terms of this Indenture, the Trustee may require reasonable indemnity against such
expenses or liabilities as a condition to proceeding; the reasonable expenses of every such
examination shall be paid by the Holders or, if paid by the Trustee, shall be repaid by the
Holders upon demand. The Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee shall
determine to make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, relevant to the facts or matters that are the
subject of its inquiry, personally or by agent or attorney;

          (7) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the

 

 

Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or attorney appointed
with due care by it hereunder;

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

          (9) any permissive right or power available to the Trustee under this Indenture
or any supplement hereto shall not be construed to be a mandatory duty or obligation;

          (10) the Trustee shall not be charged with knowledge of any matter (including any
default, other than as described in Section 501(1), (2) or (3)) unless and except to the
extent actually known to a Responsible Officer of the Trustee or to the extent written
notice thereof is received by the Trustee at the Corporate Trust Office; and

          (11) the Trustee shall have no liability for the selection of any Independent
Investment Banker; and shall have no liability for any inaccuracy in the books and records
of, or for any actions or omissions of, DTC, Euroclear or CEDEL or any depository acting on
behalf of any of them.

     The Trustee shall not be required to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder, or in the exercise of any of
its rights or powers, if it shall have reasonable grounds for believing that repayment of such
funds or adequate indemnity against such risk or liability is not reasonably assured to it.

     Except during the continuance of an Event of Default, the Trustee undertakes to perform only
such duties as are specifically set forth in this Indenture, and no implied covenants or
obligations shall be read into this Indenture against the Trustee.

     SECTION 603. Not Responsible for Recitals or Issuance of Securities. The recitals
contained herein and in the Securities, except the Trustee’s certificate of authentication, and in
any coupons shall be taken as the statements of the Company, and neither the Trustee nor any
Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the Securities or
coupons, except that the Trustee represents that it is duly authorized to execute and deliver this
Indenture, authenticate the Securities and perform its obligations hereunder. Neither the Trustee
nor any Authenticating Agent shall be accountable for the use or application by the Company of
Securities or the proceeds thereof.

     SECTION 604. May Hold Securities. The Trustee, any Paying Agent, Security Registrar,
Authenticating Agent or any other agent of the Company, in its individual or any other capacity,
may become the owner or pledgee of Securities and coupons and, subject to TIA Sections 310(b) and
311, may otherwise deal with the Company with the same rights it would

 

 

have if it were not Trustee, Paying Agent, Security Registrar, Authenticating Agent or such
other agent.

     SECTION 605. Money Held in Trust. Money held by the Trustee in trust
hereunder need not be segregated from other funds except to the extent required by law. The
Trustee shall be under no liability for interest on any money received by it hereunder except as
otherwise agreed with the Company.

     SECTION 606. Compensation and Reimbursement. The Company agrees:

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

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

     (3) to indemnify each of the Trustee and any predecessor Trustee for, and to hold it
harmless against, any loss, liability or expense incurred without negligence or bad faith on
its part, arising out of or in connection with the acceptance or administration of the trust
or trusts hereunder, including the costs and expenses of defending itself against any claim
or liability in connection with the exercise or performance of any of its powers or duties
hereunder.

     When the Trustee incurs expenses or renders services in connection with an Event of Default
specified in Section 501(7) or Section 501(8), the expenses (including the reasonable charges and
expenses of its counsel) and the compensation for the services are intended to constitute expenses
of administration under any applicable Federal or state bankruptcy, insolvency or other similar
law.

     As security for the performance of the obligations of the Company under this Section, the
Trustee shall have a lien prior to the Securities upon all property and funds held or collected by
the Trustee as such, except funds held in trust for the payment of principal of (or premium or
Make-Whole Amount, if any) or interest on particular Securities or any coupons.

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

     SECTION 607. Corporate Trustee Required; Eligibility; Conflicting Interests.
There shall at all times be a Trustee hereunder which shall be eligible to act as Trustee under TIA
Section 310(a)(1) and shall have at all times a combined capital and surplus of at least

 

 

$50,000,000. If the
Trustee publishes reports of condition at least annually, pursuant to law or the requirements
of Federal, state, territorial or District of Columbia supervising or examining authority, then for
the purposes of this Section, the combined capital and surplus of the Trustee shall be deemed to be
its combined capital and surplus as set forth in its most recent report of condition so published.
If at any time the Trustee shall cease to be eligible in accordance with the provisions of this
Section, it shall resign immediately in the manner and with the effect hereinafter specified in
this Article. Neither the Company nor any Person directly or indirectly controlling, controlled
by, or under common control with the Company shall serve as Trustee.

     SECTION 608. Resignation and Removal; Appointment of Successor.

          (a) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of Section 609.

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

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

          (d) If at any time:

          (1) the Trustee shall fail to comply with the provisions of TIA Section 310(b) after
written request therefor by the Company or by any Holder of a Security who has been a bona
fide Holder of a Security for at least six months, or

          (2) the Trustee shall cease to be eligible under Section 607 and shall fail to resign
after written request therefor by the Company or by any Holder of a Security who has been a
bona fide Holder of a Security for at least six months, or

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

then, in any such case, (i) the Company by or pursuant to a Board Resolution may remove the Trustee
and appoint a successor Trustee with respect to all Securities, or (ii) subject to TIA Section
315(e), any Holder of a Security who has been a bona fide Holder of a Security for at

 

 

least six
months may, on behalf of himself and all others similarly situated, petition any court of
competent jurisdiction for the removal of the Trustee with respect to all Securities and the
appointment of a successor Trustee or Trustees.

          (e) If the Trustee shall resign, be removed or become incapable of acting, or if a
vacancy shall occur in the office of Trustee for any cause with respect to the Securities of one or
more series, the Company, by or pursuant to a Board Resolution, shall promptly appoint a successor
Trustee or Trustees with respect to the Securities of that or those series (it being understood
that any such successor Trustee may be appointed with respect to the Securities of one or more or
all of such series and that at any time there shall be only one Trustee with respect to the
Securities of any particular series). If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee with respect to the Securities
of any series shall be appointed by Act of the Holders of a majority in principal amount of the
Outstanding Securities of such series delivered to the Company and the retiring Trustee, the
successor Trustee so appointed shall, forthwith upon its acceptance of such appointment, become the
successor Trustee with respect to the Securities of such series and to that extent supersede the
successor Trustee appointed by the Company. If no successor Trustee with respect to the Securities
of any series shall have been so appointed by the Company or the Holders of Securities and accepted
appointment in the manner hereinafter provided, any Holder of a Security who has been a bona fide
Holder of a Security of such series for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to Securities of such series.

          (f) The Company shall give notice of each resignation and each removal of the Trustee with
respect to the Securities of any series and each appointment of a successor Trustee with respect to
the Securities of any series in the manner provided for notices to the Holders of Securities in
Section 106. Each notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

     SECTION 609. Acceptance of Appointment by Successor. (a) In case of the appointment
hereunder of a successor Trustee with respect to all Securities, every such successor Trustee so
appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal of the retiring
Trustee shall become effective and such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring
Trustee; but, on request of the Company or the successor Trustee, such retiring Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such successor Trustee
all the rights, powers and trusts of the retiring Trustee, and shall duly assign, transfer and
deliver to such successor Trustee all property and money held by such retiring Trustee hereunder,
subject nevertheless to its claim, if any, provided for in Section 606.

          (b) In case of the appointment hereunder of a successor Trustee with respect to the
Securities of one or more (but not all) series, the Company, the retiring Trustee and each
successor Trustee with respect to the Securities of one or more series shall execute and deliver an
indenture supplemental hereto, pursuant to Article Nine hereof, wherein each successor Trustee

 

 

shall accept such appointment and which (1) shall contain such provisions as shall be necessary or
desirable to transfer and confirm to, and to vest in, each successor Trustee all the rights,
powers,
trusts and duties of the retiring Trustee with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates, (2) if the retiring Trustee is
not retiring with respect to all Securities, shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series as to which the retiring Trustee is
not retiring shall continue to be vested in the retiring Trustee, and (3) shall add to or change
any of the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, it being understood that nothing
herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same
trust and that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart
from any trust or trusts hereunder administered by any other such Trustee; and upon the execution
and delivery of such supplemental indenture the resignation or removal of the retiring Trustee
shall become effective to the extent provided therein and each such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates; but, on request of the Company or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor Trustee
all property and money held by such retiring Trustee hereunder with respect to the Securities of
that or those series to which the appointment of such successor Trustee relates.

          (c) Upon request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such successor Trustee all
such rights, powers and trusts referred to in paragraph (a) or (b) of this Section 609, as the case
may be.

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

     SECTION 610. Merger, Conversion, Consolidation or Succession to Business. Any
corporation into which the Trustee may be merged or converted or with which it may be consolidated,
or any corporation resulting from any merger, conversion or consolidation to which the Trustee
shall be a party, or any corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article, without the execution or
filing of any paper or any further act on the part of any of the parties hereto. In case any
Securities or coupons shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation to such authenticating Trustee may
adopt such authentication and deliver the Securities or coupons so authenticated with the same
effect as if such successor Trustee had itself authenticated such Securities or coupons. In case
any Securities or coupons shall not have been authenticated by such predecessor Trustee, any such
successor Trustee may authenticate and deliver such Securities or coupons, in either its own

 

 

name
or that of its predecessor Trustee, with the full force and effect which this Indenture provides
for the certificate of authentication of the Trustee.

     SECTION 611. Appointment of Authenticating Agent. At any time when any of the
Securities remain Outstanding, the Trustee may appoint an Authenticating Agent or Agents with
respect to one or more series of Securities which shall be authorized to act on behalf of the
Trustee to authenticate Securities of such series issued upon exchange, registration of transfer or
partial redemption or repayment thereof, and Securities so authenticated shall be entitled to the
benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated
by the Trustee hereunder. Any such appointment shall be evidenced by an instrument in writing
signed by a Responsible Officer of the Trustee, a copy of which instrument shall be promptly
furnished to the Company. Wherever reference is made in this Indenture to the authentication and
delivery of Securities by the Trustee or the Trustee’s certificate of authentication, such
reference shall be deemed to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an
Authenticating Agent. Each Authenticating Agent shall be acceptable to the Company and shall at
all times be a bank or trust company or corporation organized and doing business and in good
standing under the laws of the United States of America or of any state or the District of
Columbia, authorized under such laws to act as Authenticating Agent, having a combined capital and
surplus of not less than $50,000,000 and subject to supervision or examination by Federal or state
authorities. If such Authenticating Agent publishes reports of condition at least annually,
pursuant to law or the requirements of the aforesaid supervising or examining authority, then for
the purposes of this Section, the combined capital and surplus of such Authenticating Agent shall
be deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published. In case at any time an Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, such Authenticating Agent shall resign immediately
in the manner and with the effect specified in this Section.

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

     An Authenticating Agent for any series of Securities may at any time resign by giving
written notice of resignation to the Trustee for such series and to the Company. The Trustee for
any series of Securities may at any time terminate the agency of an Authenticating Agent by giving
written notice of termination to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee for
such series may appoint a successor Authenticating Agent which shall be acceptable to the Company
and shall give notice of such appointment to all Holders of Securities

 

 

of the series with respect
to which such Authenticating Agent will serve in the manner set forth in Section 106. Any
successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested
with all the rights, powers and duties of its predecessor hereunder, with like
effect as if originally named as an Authenticating Agent herein. No successor Authenticating
Agent shall be appointed unless eligible under the provisions of this Section.

     The Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation including reimbursement of its reasonable expenses for its services under this
Section.

     If an appointment with respect to one or more series is made pursuant to this Section, the
Securities of such series may have endorsed thereon, in addition to or in lieu of the Trustee’s
certificate of authentication, an alternate certificate of authentication substantially in the
following form:

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

	 	 	 	 	 
	 	 	[__________________]
	 

	 	 	 	     as Trustee
	Dated:                     

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	as Authenticating Agent
	 
	 	 	 	 
	Dated:                     

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

     SECTION 612. Certain Duties and Responsibilities of the Trustee.

     (a) With respect to the Securities of any series, except during the continuance of an Event of
Default with respect to the Securities of such series:

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

     (2) in the absence of bad faith on its part, the Trustee may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed therein,
upon certificates or opinions furnished to the Trustee and conforming to the requirements of
this Indenture; but in the case of any such certificates or opinions which by any provision
hereof are specifically required to be furnished to the Trustee, the Trustee shall be under
a duty to examine the same to determine whether or not they conform to the

 

 

requirements of
this Indenture, but shall not be under any duty to verify the contents or accuracy thereof.

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

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

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

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

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

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

     (d) Whether or not therein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section 612.

     (e) The Trustee shall not be liable for interest on any money or assets held by it
except to the extent the Trustee may agree in writing with the Company. Assets held in trust by
the Trustee need not be segregated from other assets except to the extent required by law.

 

 

ARTICLE SEVEN — HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

     SECTION 701. Disclosure of Names and Addresses of Holders. Every Holder of
Securities or coupons, by receiving and holding the same, agrees with the Company and the Trustee
that neither the Company nor the Trustee nor any Authenticating Agent nor any Paying Agent nor any
Security Registrar shall be held accountable by reason of the disclosure of any information as to
the names and addresses of the Holders of Securities in accordance with TIA Section 312, regardless
of the source from which such information was derived, and that the Trustee shall not be held
accountable by reason of mailing any material pursuant to a request made under TIA Section 312(b).

     SECTION 702. Reports by Trustee. The Trustee shall transmit to Holders such reports
concerning the Trustee and its actions under this Indenture as may be required by TIA Section 313
at the times and in the manner provided by the TIA, which shall initially be not less than every
twelve months commencing on January ___, 1998. A copy of each such report shall, at the time of
such transmission to Holders, be filed by the Trustee with each stock exchange, if any, upon which
any Securities are listed, with the Commission and with the Company. The Company will notify the
Trustee when any Securities are listed on any stock exchange.

     SECTION 703. Reports by Company. The Company will:

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

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

     (3) transmit by mail to the Holders of Securities, within 30 days after the filing
thereof with the Trustee, in the manner and to the extent provided in TIA Section 313(c),
such summaries of any information, documents and reports required to be filed by the Company
pursuant to paragraphs (1) and (2) of this Section as may be required by rules and
regulations prescribed from time to time by the Commission.

 

 

     SECTION 704. Company to Furnish Trustee Names and Addresses of Holders. The Company
will furnish or cause to be furnished to the Trustee:

          (a) semiannually, not later than 15 days after the Regular Record Date for interest for each
series of Securities, a list, in such form as the Trustee may reasonably require, of the names and
addresses of the Holders of Registered Securities of such series as of such Regular Record Date, or
if there is no Regular Record Date for interest for such series of Securities, semiannually, upon
such dates as are set forth in the Board Resolution or indenture supplemental hereto authorizing
such series, and

          (b) at such other times as the Trustee may request in writing, within 30 days after the
receipt by the Company of any such request, a list of similar form and content as of a date not
more than 15 days prior to the time such list is furnished,

provided, however, that, so long as the Trustee is the Security Registrar, no such
list shall be required to be furnished.

ARTICLE EIGHT — CONSOLIDATION, MERGER, SALE, LEASE OR CONVEYANCE

     SECTION 801. Consolidations and Mergers of Company and Sales, Leases and
Conveyances Permitted Subject to Certain Conditions. The Company may consolidate with, or
sell, lease or convey all or substantially all of its assets to, or merge with or into any other
corporation, provided that in any such case, (1) either the Company shall be the continuing
corporation, or the successor corporation shall be a corporation organized and existing under the
laws of the United States or a State thereof and such successor corporation shall expressly assume
the due and punctual payment of the principal of (and premium or Make-Whole Amount, if any) and any
interest on all of the Securities, according to their tenor, and the due and punctual performance
and observance of all of the covenants and conditions of this Indenture to be performed by the
Company by supplemental indenture, complying with Article Nine hereof, satisfactory to the Trustee,
executed and delivered to the Trustee by such corporation and (2) immediately after giving effect
to such transaction and treating any indebtedness which becomes an obligation of the Company or any
Subsidiary as a result thereof as having been incurred by the Company or such Subsidiary at the
time of such transaction, no Event of Default, and no event which, after notice or the lapse of
time, or both, would become an Event of Default, shall have occurred and be continuing.

     SECTION 802. Rights and Duties of Successor Corporation. In case of any such
consolidation, merger, sale, lease or conveyance and upon any such assumption by the successor
corporation, such successor corporation shall succeed to and be substituted for the Company, with
the same effect as if it had been named herein as the party of the first part, and the

 

 

predecessor
corporation, except in the event of a lease, shall be relieved of any further obligation under this
Indenture and the Securities. Such successor corporation thereupon may cause to be signed, and may
issue either in its own name or in the name of the Company, any or all of the Securities issuable
hereunder which 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 Securities which previously shall have been signed and delivered by the officers
of the Company to the Trustee for authentication, and any Securities which such successor
corporation thereafter shall cause to be signed and delivered to the Trustee for that purpose. All
the Securities so issued shall in all respects have the same legal rank and benefit under this
Indenture as the Securities theretofore or thereafter issued in accordance with the terms of this
Indenture as though all of such Securities had been issued at the date of the execution hereof.

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

     SECTION 803. Officers’ Certificate and Opinion of Counsel. Any consolidation,
merger, sale, lease or conveyance permitted under Section 801 is also subject to the condition that
the Trustee receive an Officers’ Certificate and an Opinion of Counsel to the effect that any such
consolidation, merger, sale, lease or conveyance, and the assumption by any successor corporation,
complies with the provisions of this Article and that all conditions precedent herein provided for
relating to such transaction have been complied with.

ARTICLE NINE — SUPPLEMENTAL INDENTURES

     SECTION 901. Supplemental Indentures Without Consent of Holders. Without the consent
of any Holders of Securities or coupons, the Company, when authorized by or pursuant to a Board
Resolution, and the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following
purposes:

     (1) to evidence the succession of another Person to the Company and the
assumption by any such successor of the covenants of the Company contained herein and in the
Securities; or

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

 

 

     (3) to add any additional Events of Default for the benefit of the Holders of all or
any series of Securities (and if such Events of Default are to be for the benefit of less
than all series of Securities, stating that such Events of Default are expressly being
included solely for the benefit of such series); provided, however, that in
respect of any such additional Events of Default such supplemental indenture may provide for
a particular period of grace after default (which period may be shorter or longer than that
allowed in the case of other defaults) or may provide for an immediate enforcement upon such
default or may limit the remedies available to the Trustee upon such default or may limit
the right of the Holders of a majority in aggregate principal amount of that or those series
of Securities to which such additional Events of Default apply to waive such default; or

     (4) to add to or change any of the provisions of this Indenture to provide that Bearer
Securities may be registrable as to principal, to change or eliminate any restrictions on
the payment of principal of or premium or Make-Whole Amount, if any, or interest on Bearer
Securities, to permit Bearer Securities to be issued in exchange for Registered Securities,
to permit Bearer Securities to be issued in exchange for Bearer Securities of other
authorized denominations or to permit or facilitate the issuance of Securities in
uncertificated form, provided that any such action shall not adversely affect the
interests of the Holders of Securities of any series or any related coupons in any material
respect; or

     (5) to change or eliminate any of the provisions of this Indenture, provided
that any such change or elimination shall become effective only when there is no Security
Outstanding of any series created prior to the execution of such supplemental indenture
which is entitled to the benefit of such provision; or

     (6) to secure the Securities; or

     (7) to establish the form or terms of Securities of any series and any related
coupons as permitted or contemplated by Sections 201 and 301; or

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

     (9) to cure any ambiguity, to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein, or to make any other provisions
with respect to matters or questions arising under this Indenture which shall not be
inconsistent with the provisions of this Indenture, provided such
provisions shall not adversely affect the interests of the Holders of Securities of any
series or any related coupons in any material respect; or

 

 

     (10) to supplement any of the provisions of this Indenture to such extent as shall be
necessary to permit or facilitate the defeasance and discharge of any series of Securities
pursuant to Sections 401, 1402 and 1403; provided that any such action shall not
adversely affect the interests of the Holders of Securities of such series and any related
coupons or any other series of Securities in any material respect.

     SECTION 902. Supplemental Indentures with Consent of Holders. With the consent of
the Holders of not less than a majority in principal amount of all Outstanding Securities affected
by such supplemental indenture, by Act of said Holders delivered to the Company and the Trustee,
the Company, when authorized by or pursuant to a Board Resolution, and the Trustee may enter into
an indenture or indentures supplemental hereto for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture or of modifying in
any manner the rights of the Holders of Securities and any related coupons under this Indenture;
provided, however, that no such supplemental indenture shall, without the consent
of the Holder of each Outstanding Security affected thereby:

     (1) change the Stated Maturity of the principal of (or premium or Make-Whole Amount, if
any, on) or any installment of principal of or interest on, any Security; or reduce the
principal amount thereof or the rate or amount of interest thereon, or any premium or
Make-Whole Amount payable upon the redemption thereof, or reduce the amount of the principal
of an Original Issue Discount Security that would be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 502 or the amount thereof provable
in bankruptcy pursuant to Section 504, or adversely affect any right of repayment at the
option of the Holder of any Security, or change any Place of Payment where, or the currency
or currencies, currency unit or units or composite currency or currencies in which, any
Security or any premium or Make-Whole Amount or the interest thereon is payable, or impair
the right to institute suit for the enforcement of any such payment on or after the Stated
Maturity thereof (or, in the case of redemption or repayment at the option of the Holder, on
or after the Redemption Date or the Repayment Date, as the case may be), or

     (2) reduce the percentage in principal amount of the Outstanding Securities of
any series, the consent of whose Holders is required for any such supplemental indenture, or
the consent of whose Holders is required for any waiver with respect to such series (or
compliance with certain provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in this Indenture, or reduce the requirements of Section 1504 for
quorum or voting, or

     (3) modify any of the provisions of this Section, Section 513 or Section 1009, except
to increase the required percentage to effect such action or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent of the Holder
of each Outstanding Security affected thereby, provided, however, that this
clause shall not be deemed to require the consent of any Holder with respect to
changes in the references to “the Trustee” and concomitant

 

 

changes in this Section 902
and Section 1009, or the deletion of this proviso, in accordance with the requirements of
Sections 609(b) and 901(11).

     It shall not be necessary for any Act of Holders under this Section 902 to approve the
particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.

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

     SECTION 903. Execution of Supplemental Indentures. In executing, or accepting the
additional trusts created by, any supplemental indenture permitted by this Article or the
modification thereby of the trusts created by this Indenture, the Trustee shall be entitled to
receive, and shall be fully protected in relying upon, an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this Indenture. The Trustee
may, but shall not be obligated to, enter into any such supplemental indenture which affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise.

     SECTION 904. Effect of Supplemental Indentures. Upon the execution of any
supplemental indenture under this Article, this Indenture shall be modified in accordance
therewith, and such supplemental indenture shall form a part of this Indenture for all purposes;
and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder and
of any coupon appertaining thereto shall be bound thereby.

     SECTION 905. Conformity with Trust Indenture Act. Every supplemental indenture
executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act as
then in effect.

     SECTION 906. Reference in Securities to Supplemental Indentures. Securities
of any series authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and shall, if required by the Trustee, bear a notation in form
approved by the Trustee as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Securities of any series so modified as to conform, in the opinion
of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by
the Company and authenticated and delivered by the Trustee in exchange for Outstanding Securities
of such series.

 

 

ARTICLE TEN — COVENANTS

     SECTION 1001. Payment of Principal, Premium or Make-Whole Amount, if any; and
Interest. The Company covenants and agrees for the benefit of the Holders of each series of
Securities that it will duly and punctually pay the principal of (and premium or Make-Whole Amount,
if any) and interest on the Securities of that series in accordance with the terms of such series
of Securities, any coupons appertaining thereto and this Indenture. Unless otherwise specified as
contemplated by Section 301 with respect to any series of Securities, any interest due on Bearer
Securities on or before Maturity shall be payable only upon presentation and surrender of the
several coupons for such interest installments as are evidenced thereby as they severally mature.
Unless otherwise specified with respect to Securities of any series pursuant to Section 301, at the
option of the Company (upon written notice to the Trustee), all payments of principal may be paid
by check to the registered Holder of the Registered Security or other person entitled thereto
against surrender of such Security.

     SECTION 1002. Maintenance of Office or Agency. If Securities of a series are
issuable only as Registered Securities, the Company shall maintain in each Place of Payment for any
series of Securities an office or agency where Securities of that series may be presented or
surrendered for payment, where Securities of that series may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Company in respect of the
Securities of that series and this Indenture may be served. If Securities of a series are issuable
as Bearer Securities, the Company will maintain: (A) in the Borough of Manhattan, The City of New
York, an office or agency where any Registered Securities of that series may be presented or
surrendered for payment, where any Registered Securities of that series may be surrendered for
registration of transfer, where Securities of that series may be surrendered for exchange, where
notices and demands to or upon the Company in respect of the Securities of that series and this
Indenture may be served and where Bearer Securities of that series and related coupons may be
presented or surrendered for payment in the circumstances described in the following paragraph (and
not otherwise); (B) subject to any laws or regulations applicable thereto, in a Place of Payment
for that series which is located outside the United States, an office or agency where Securities of
that series and related coupons may be presented and surrendered for payment; provided,
however, that if the Securities of that series are listed on any stock exchange located
outside the United States and such stock exchange shall so require, the Company will maintain a
Paying Agent for the Securities of that series in any required city located outside the United
States, as the case may be, so long as the Securities of that series are listed on such exchange;
and (C) subject to any laws or regulations applicable thereto, in a Place of Payment for that
series located outside the United States an office or agency where any Registered Securities of
that series may be surrendered for registration of transfer, where Securities of that series may be
surrendered for exchange and where notices and demands to or upon the Company in respect of the
Securities of that series and this Indenture may be served. The Company will give prompt written
notice to the Trustee of the location, and any change in the location, of each such office or
agency. If at any time the Company shall fail to maintain any such required office or agency or
shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices
and demands may be made or served at the Corporate Trust Office of the Trustee, except

 

 

that Bearer
Securities of that series and the related
coupons may be presented and surrendered for payment at the offices specified in the Security,
in London, England, and the Company hereby appoints the same as its agent to receive such
respective presentations, surrenders, notices and demands, and the Company hereby appoints the
Trustee its agent to receive all such presentations, surrenders, notices and demands.

     Unless otherwise specified with respect to any Securities pursuant to Section 301, no payment
of principal, premium or Make-Whole Amount or interest on Bearer Securities shall be made at any
office or agency of the Company in the United States or by check mailed to any address in the
United States or by transfer to an account maintained with a bank located in the United States;
provided, however, that, if the Securities of a series are payable in Dollars,
payment of principal of and any premium or Make-Whole Amount and interest on any Bearer Security
shall be made at the office of the Company’s Paying Agent in the Borough of Manhattan, The City of
New York, if (but only if) payment in Dollars of the full amount of such principal, premium or
Make-Whole Amount, or interest, as the case may be, at all offices or agencies outside the United
States maintained for the purpose by the Company in accordance with this Indenture, is illegal or
effectively precluded by exchange controls or other similar restrictions.

     The Company may from time to time designate one or more other offices or agencies where
the Securities of one or more series may be presented or surrendered for any or all of such
purposes, and may from time to time rescind such designations; provided, however,
that no such designation or rescission shall in any manner relieve the Company of its obligation to
maintain an office or agency in accordance with the requirements set forth above for Securities of
any series for such purposes. The Company will give prompt written notice to the Trustee of any
such designation or rescission and of any change in the location of any such other office or
agency. Unless otherwise specified with respect to any Securities pursuant to Section 301 with
respect to a series of Securities, the Company hereby designates as a Place of Payment for each
series of Securities, each of (i) the office or agency of the Company in the Borough of Manhattan,
The City of New York, and (ii) the Corporate Trust Office of the Trustee (as Paying Agent); and the
Company hereby initially appoints the Trustee at its Corporate Trust Office as Paying Agent in such
city; and the Company hereby initially appoints as its agent to receive all such presentations,
surrenders, notices and demands each of the Trustee, at its Corporate Trust Office, and State
Street Bank and Trust Company, N.A. at its offices at 61 Broadway, New York, NY 10005.

     Unless otherwise specified with respect to any Securities pursuant to Section 301, if and so
long as the Securities of any series (i) are denominated in a Foreign Currency or (ii) may be
payable in a Foreign Currency, or so long as it is required under any other provision of the
Indenture, then the Company will maintain with respect to each such series of Securities, or as so
required, at least one exchange rate agent (of which it shall give written notice to the Trustee).

     SECTION 1003. Money for Securities Payments to Be Held in Trust. If the Company
shall at any time act as its own Paying Agent with respect to any series of any Securities and any

 

 

related coupons, it will, on or before each due date of the principal of (and premium or Make-Whole
Amount, if any), or interest on any of the Securities of that series, segregate and hold in trust
for the benefit of the Persons entitled thereto a sum in the currency or currencies, currency unit
or units or composite currency or currencies in which the Securities of such series are payable
(except as
otherwise specified pursuant to Section 301 for the Securities of such series) sufficient to
pay the principal (and premium or Make-Whole Amount, if any) or interest so becoming due until such
sums shall be paid to such Persons or otherwise disposed of as herein provided, and will promptly
notify the Trustee of its action or failure so to act.

     Whenever the Company shall have one or more Paying Agents for any series of Securities and any
related coupons, it will, on or before each due date of the principal of (and premium or Make-Whole
Amount, if any), or interest on any Securities of that series, deposit with a Paying Agent a sum
(in the currency or currencies, currency unit or units or composite currency or currencies
described in the preceding paragraph) sufficient to pay the principal (and premium or Make-Whole
Amount, if any) or interest so becoming due, such sum to be held in trust for the benefit of the
Persons entitled to such principal, premium or Make-Whole Amount, if any, or interest and (unless
such Paying Agent is the Trustee) the Company will promptly notify the Trustee of its action or
failure so to act.

     The Company will cause each Paying Agent for any series of Securities other than the Trustee
to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the
Trustee, subject to the provisions of this Section, that such Paying Agent will

     (1) hold all sums held by it for the payment of principal of (and premium or Make-Whole
Amount, if any) or interest on Securities in trust for the benefit of the Persons entitled
thereto until such sums shall be paid to such Persons or otherwise disposed of as herein
provided;

     (2) give the Trustee notice of any default by the Company (or any other obligor
upon the Securities) in the making of any such payment of principal (and premium or
Make-Whole Amount, if any) or interest on the Securities of that series; and

     (3) at any time during the continuance of any such default upon the written request of
the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

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

 

 

     Except as otherwise provided in the Securities of any series, and subject to applicable laws,
any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for
the payment of the principal of (and premium or Make-Whole Amount, if any) or interest on any
Security of any series and remaining unclaimed for two years after such principal (and premium or
Make-Whole Amount, if any) or interest has become due and payable shall be paid to the Company upon
Company Request or (if then held by the Company) shall be discharged from such trust; and the
Holder of such Security shall thereafter, as an unsecured
general creditor, look only to the Company for payment of such principal of (and premium or
Make-Whole Amount, if any) or interest on any Security, without interest thereon, and all liability
of the Trustee or such Paying Agent with respect to such trust money, and all liability of the
Company as trustee thereof, shall thereupon cease; provided, however, that the
Trustee or such Paying Agent, before being required to make any such repayment, may at the expense
of the Company cause to be published once, in an Authorized Newspaper, notice that such money
remains unclaimed and that, after a date specified therein, which shall not be less than 30 days
from the date of such publication, any unclaimed balance of such money then remaining will be
repaid to the Company.

     SECTION 1004. Existence. Subject to Article Eight, the Company will do or cause to
be done all things necessary to preserve and keep in full force and effect its corporate existence,
all material rights (by articles of incorporation, by-laws and statute) and material franchises;
provided, however, that the Company shall not be required to preserve any such
right or franchise if the Board of Directors shall determine that the preservation thereof is no
longer desirable in the conduct of the business of the Company.

     SECTION 1005. Maintenance of Properties. The Company will cause all of its
material properties used or useful in the conduct of its business or the business of any Subsidiary
to be maintained and kept in good condition, repair and working order and supplied with all
necessary equipment and will cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof, all as in the judgment of the Company may be necessary so
that the business carried on in connection therewith may be properly and advantageously conducted
at all times; provided, however, that the Company and its Subsidiaries shall not be
prevented from selling or otherwise disposing of their properties for value in the ordinary course
of business.

     SECTION 1006. Insurance. The Company will cause each of its and its Subsidiaries’
insurable properties to be insured against loss or damage in an amount deemed reasonable by the
Board of Directors with insurers of recognized responsibility.

     SECTION 1007. Payment of Taxes and Other Claims. The Company will pay or discharge
or cause to be paid or discharged, before the same shall become delinquent, (1) all taxes,
assessments and governmental charges levied or imposed upon it or any Subsidiary or upon the
income, profits or property of the Company or any Subsidiary, and (2) all lawful claims for labor,
materials and supplies which, if unpaid, might by law become a lien upon the property of the
Company or any Subsidiary; provided, however, that the Company shall not be
required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or
claim

 

 

whose amount, applicability or validity is being contested in good faith by appropriate
proceedings.

     SECTION 1008. Statement as to Compliance. The Company will deliver to the Trustee,
within 120 days after the end of each fiscal year, a brief certificate from the principal executive
officer, principal financial officer or principal accounting officer as to his or her knowledge of
the Company’s compliance with all
conditions and covenants under this Indenture and, in the event of any noncompliance,
specifying such noncompliance and the nature and status thereof. For purposes of this Section
1008, such compliance shall be determined without regard to any period of grace or requirement of
notice under this Indenture.

     SECTION 1009. Waiver of Certain Covenants. The Company may omit in any particular
instance to comply with any term, provision or condition set forth in Sections 1004 to 1008,
inclusive, if before or after the time for such compliance the Holders of at least a majority in
principal amount of all outstanding Securities of such series, by Act of such Holders, either waive
such compliance in such instance or generally waive compliance with such covenant or condition, but
no such waiver shall extend to or affect such covenant or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the obligations of the Company and
the duties of the Trustee in respect of any such term, provision or condition shall remain in full
force and effect.

ARTICLE ELEVEN — REDEMPTION OF SECURITIES

     SECTION 1101. Applicability of Article. Securities of any series which are
redeemable before their Stated Maturity shall be redeemable in accordance with their terms and
(except as otherwise specified as contemplated by Section 301 for Securities of any series) in
accordance with this Article.

     SECTION 1102. Election to Redeem; Notice to Trustee. The election of the Company to
redeem any Securities shall be evidenced by or pursuant to a Board Resolution. In case of any
redemption at the election of the Company of less than all of the Securities of any series, the
Company shall, at least 45 days prior to the giving of the notice of redemption in Section 1104
(unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such
Redemption Date and of the principal amount of Securities of such series to be redeemed. In the
case of any redemption of Securities prior to the expiration of any restriction on such redemption
provided in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish
the Trustee with an Officers’ Certificate evidencing compliance with such restriction.

     SECTION 1103. Selection by Trustee of Securities to Be Redeemed. If less than all
the Securities of any series issued on the same day with the same terms are to be redeemed, the
particular Securities to be redeemed shall be selected not more than 60 days prior to the
Redemption Date by the Trustee, from the Outstanding Securities of such series issued on such date
with the same terms not previously called for redemption, by such method as the Trustee shall deem
fair and appropriate and which may provide for the selection for redemption of

 

 

portions (equal to
the minimum authorized denomination for Securities of that series or any integral multiple thereof)
of the principal amount of Securities of such series of a denomination larger than the minimum
authorized denomination for Securities of that series.

     The Trustee shall promptly notify the Company and the Security Registrar (if other than
itself) in writing of the Securities selected for redemption and, in the case of any Securities
selected for partial redemption, the principal amount thereof to be redeemed.

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

     SECTION 1104. Notice of Redemption. Notice of redemption shall be given in the
manner provided in Section 106, not less than 30 days nor more than 60 days prior to the Redemption
Date, unless a shorter period is specified by the terms of such series established pursuant to
Section 301, to each Holder of Securities to be redeemed, but failure to give such notice in the
manner herein provided to the Holder of any Security designated for redemption as a whole or in
part, or any defect in the notice to any such Holder, shall not affect the validity of the
proceedings for the redemption of any other such Security or portion thereof.

     Any notice that is mailed to the Holders of Registered Securities in the manner herein
provided shall be conclusively presumed to have been duly given, whether or not the Holder receives
the notice.

     All notices of redemption shall state:

     (1) the Redemption Date,

     (2) the Redemption Price, accrued interest to the Redemption Date payable as provided
in Section 1106, if any,

     (3) if less than all Outstanding Securities of any series are to be redeemed, the
identification (and, in the case of partial redemption, the principal amount) of the
particular Security or Securities to be redeemed,

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

     (5) that on the Redemption Date the Redemption Price and accrued interest to the
Redemption Date payable as provided in Section 1106, if any, will become

 

 

due and payable
upon each such Security, or the portion thereof, to be redeemed and, if applicable, that
interest thereon shall cease to accrue on and after said date,

     (6) the Place or Places of Payment where such Securities, together in the case of
Bearer Securities with all coupons appertaining thereto, if any, maturing after
the Redemption Date, are to be surrendered for payment of the Redemption Price and
accrued interest, if any,

     (7) that the redemption is for a sinking fund, if such is the case,

     (8) that, unless otherwise specified in such notice, Bearer Securities of any series,
if any, surrendered for redemption must be accompanied by all coupons maturing subsequent to
the date fixed for redemption or the amount of any such missing coupon or coupons will be
deducted from the Redemption Price, unless security or indemnity satisfactory to the
Company, the Trustee for such series and any Paying Agent is furnished,

     (9) if Bearer Securities of any series are to be redeemed and any Registered
Securities of such series are not to be redeemed, and if such Bearer Securities may be
exchanged for Registered Securities not subject to redemption on this Redemption Date
pursuant to Section 305 or otherwise, the last date, as determined by the Company, on which
such exchanges may be made, and

     (10) the CUSIP number of such Security, if any.

     Notice of redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of
the Company.

     SECTION 1105. Deposit of Redemption Price. On or prior to any Redemption Date, the
Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its
own Paying Agent, which it may not do in the case of a sinking fund payment under Article Twelve,
segregate and hold in trust as provided in Section 1003) an amount of money in the currency or
currencies, currency unit or units or composite currency or currencies in which the Securities of
such series are payable (except as otherwise specified pursuant to Section 301 for the Securities
of such series) sufficient to pay on the Redemption Date the Redemption Price of, and (except if
the Redemption Date shall be an Interest Payment Date) accrued interest on, all the Securities or
portions thereof which are to be redeemed on that date.

     SECTION 1106. Securities Payable on Redemption Date. Notice of redemption having
been given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due
and payable at the Redemption Price therein specified in the currency or currencies, currency unit
or units or composite currency or currencies in which the Securities of such series are payable
(except as otherwise specified pursuant to Section 301 for the Securities of such series)

 

 

(together
with accrued interest, if any, to the Redemption Date), and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued interest) such Securities
shall, if the same were interest-bearing, cease to bear interest and the coupons for such interest
appertaining to any Bearer Securities so to be redeemed, except to the extent provided below, shall
be void. Upon surrender of any such Security for redemption in accordance with said
notice, together with all coupons, if any, appertaining thereto maturing after the Redemption
Date, such Security shall be paid by the Company at the Redemption Price, together with accrued
interest, if any, to the Redemption Date; provided, however, that installments of
interest on Bearer Securities whose Stated Maturity is on or prior to the Redemption Date shall be
payable only at an office or agency located outside the United States (except as otherwise provided
in Section 1002) and, unless otherwise specified as contemplated by Section 301, only upon
presentation and surrender of coupons for such interest; and provided further that
installments of interest on Registered Securities whose Stated Maturity is on or prior to the
Redemption Date shall be payable to the Holders of such Securities, or one or more Predecessor
Securities, registered as such at the close of business on the relevant Record Dates according to
their terms and the provisions of Section 307.

     If any Bearer Security surrendered for redemption shall not be accompanied by all
appurtenant coupons maturing after the Redemption Date, such Security may be paid after deducting
from the Redemption Price an amount equal to the face amount of all such missing coupons, or the
surrender of such missing coupon or coupons may be waived by the Company and the Trustee if there
be furnished to them such security or indemnity as they may require to save each of them and any
Paying Agent harmless. If thereafter the Holder of such Security shall surrender to the Trustee or
any Paying Agent any such missing coupon in respect of which a deduction shall have been made from
the Redemption Price, such Holder shall be entitled to receive the amount so deducted;
provided, however, that interest represented by coupons shall be payable only at an
office or agency located outside the United States (except as otherwise provided in Section 1002)
and, unless otherwise specified as contemplated by Section 301, only upon presentation and
surrender of those coupons.

     If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal (and premium or Make-Whole Amount, if any) shall, until paid, bear
interest from the Redemption Date at the rate borne by the Security.

     SECTION 1107. Securities Redeemed in Part. Any Registered Security which is to be
redeemed only in part (pursuant to the provisions of this Article or of Article Twelve) shall be
surrendered at a Place of Payment therefor (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing) and the
Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Security
without service charge a new Security or Securities of the same series, of any authorized
denomination as requested by such Holder in aggregate principal amount equal to and in exchange for
the unredeemed portion of the principal of the Security so surrendered. If a Global Security is so
surrendered, the Company shall execute and the Trustee shall authenticate and deliver to the
depository, without service charge, a new Global Security in a denomination equal

 

 

to and in
exchange for the unredeemed portion of the principal of the Global Security so surrendered.

ARTICLE TWELVE — SINKING FUNDS

     SECTION 1201. Applicability of Article. The provisions of this Article shall be
applicable to any sinking fund for the retirement of Securities of a series except as otherwise
specified as contemplated by Section 301 for Securities of such series.

     The minimum amount of any sinking fund payment provided for by the terms of Securities
of any series is herein referred to as a “mandatory sinking fund payment,” and any payment in
excess of such minimum amount provided for by the terms of such Securities of any series is herein
referred to as an “optional sinking fund payment.” If provided for by the terms of any Securities
of any series, the cash amount of any mandatory sinking fund payment may be subject to reduction as
provided in Section 1202. Each sinking fund payment shall be applied to the redemption of
Securities of any series as provided for by the terms of Securities of such series.

     SECTION 1202. Satisfaction of Sinking Fund Payments with Securities. The Company
may, in satisfaction of all or any part of any mandatory sinking fund payment with respect to the
Securities of a series, (1) deliver Outstanding Securities of such series (other than any
previously called for redemption) together in the case of any Bearer Securities of such series with
all unmatured coupons appertaining thereto and (2) apply as a credit Securities of such series
which have been redeemed either at the election of the Company pursuant to the terms of such
Securities or through the application of permitted optional sinking fund payments pursuant to the
terms of such Securities, as provided for by the terms of such Securities, or which have otherwise
been acquired by the Company; provided that such Securities so delivered or applied as a
credit have not been previously so credited. Such Securities shall be received and credited for
such purpose by the Trustee at the applicable Redemption Price specified in such Securities for
redemption through operation of the sinking fund and the amount of such mandatory sinking fund
payment shall be reduced accordingly.

     SECTION 1203. Redemption of Securities for Sinking Fund. Not less than 60 days prior
to each sinking fund payment date for Securities of any series, the Company will deliver to the
Trustee an Officers’ Certificate specifying the amount of the next ensuing mandatory sinking fund
payment for that series pursuant to the terms of that series, the portion thereof, if any, which is
to be satisfied by payment of cash in the currency or currencies, currency unit or units or
composite currency or currencies in which the Securities of such series are payable (except as
otherwise specified pursuant to Section 301 for the Securities of such series) and the portion
thereof, if any, which is to be satisfied by delivering and crediting Securities of that series
pursuant to Section 1202, and the optional amount, if any, to be added in cash to the next ensuing
mandatory sinking fund payment, and will also deliver to the Trustee any Securities to be so
delivered and credited. If such Officers’ Certificate shall specify an optional amount to be added

 

 

in cash to the next ensuing mandatory sinking fund payment, the Company shall thereupon be
obligated to pay the amount therein specified. Not less than 30 days before each such sinking fund
payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment
date in the manner specified in Section 1103 and cause notice of the redemption thereof to be given
in the name of
and at the expense of the Company in the manner provided in Section 1104. Such notice having
been duly given, the redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 1106 and 1107.

ARTICLE THIRTEEN — REPAYMENT AT THE OPTION OF HOLDERS

     SECTION 1301. Applicability of Article. Repayment of Securities of any series
before their Stated Maturity at the option of Holders thereof shall be made in accordance with the
terms of such Securities, if any, and (except as otherwise specified by the terms of such series
established pursuant to Section 301) in accordance with this Article.

     SECTION 1302. Repayment of Securities. Securities of any series subject to repayment
in whole or in part at the option of the Holders thereof will, unless otherwise provided in the
terms of such Securities, be repaid at a price equal to the principal amount thereof, together with
interest, if any, thereon accrued to the Repayment Date specified in or pursuant to the terms of
such Securities. The Company covenants that on or prior to the Repayment Date it will deposit with
the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate
and hold in trust as provided in Section 1003) an amount of money in the currency or currencies,
currency unit or units or composite currency or currencies in which the Securities of such series
are payable (except as otherwise specified pursuant to Section 301 for the Securities of such
series) sufficient to pay the principal (or, if so provided by the terms of the Securities of any
series, a percentage of the principal) of, and (except if the Repayment Date shall be an Interest
Payment Date) accrued interest on, all the Securities or portions thereof, as the case may be, to
be repaid on such date.

     SECTION 1303. Exercise of Option. Securities of any series subject to
repayment at the option of the Holders thereof will contain an “Option to Elect Repayment” form on
the reverse of such Securities. In order for any Security to be repaid at the option of the
Holder, the Trustee must receive at the Place of Payment therefor specified in the terms of such
Security (or at such other place or places of which the Company shall from time to time notify the
Holders of such Securities) not earlier than 60 days nor later than 30 days prior to the Repayment
Date (1) the Security so providing for such repayment together with the “Option to Elect Repayment”
form on the reverse thereof duly completed by the Holder (or by the Holder’s attorney duly
authorized in writing) or (2) a telegram, telex, facsimile transmission or a letter from a member
of a national securities exchange, or the National Association of Securities Dealers, Inc.
(“NASD”), or a commercial bank or trust company in the United States setting forth the name of the
Holder of the Security, the principal amount of the Security, the principal amount of the Security
to be repaid, the CUSIP number, if any, or a description of the tenor and terms of the Security, a
statement that the
option to elect repayment is being exercised thereby and a guarantee that the

 

 

Security to be repaid, together with the duly completed form entitled “Option to Elect Repayment”
on the reverse of the Security, will be received by the Trustee not later than the fifth Business
Day after the date of such telegram, telex, facsimile transmission or letter; provided,
however, that such telegram, telex, facsimile
transmission or letter shall only be effective if such Security and form duly completed are
received by the Trustee by such fifth Business Day. If less than the entire principal amount of
such Security is to be repaid in accordance with the terms of such Security, the principal amount
of such Security to be repaid, in increments of the minimum denomination for Securities of such
series, and the denomination or denominations of the Security or Securities to be issued to the
Holder for the portion of the principal amount of such Security surrendered that is not to be
repaid, must be specified. The principal amount of any Security providing for repayment at the
option of the Holder thereof may not be repaid in part if, following such repayment, the unpaid
principal amount of such Security would be less than the minimum authorized denomination of
Securities of the series of which such Security to be repaid is a part. Except as otherwise may be
provided by the terms of any Security providing for repayment at the option of the Holder thereof,
exercise of the repayment option by the Holder shall be irrevocable unless waived by the Company.

     SECTION 1304. When Securities Presented for Repayment Become Due and Payable. If
Securities of any series providing for repayment at the option of the Holders thereof shall have
been surrendered as provided in this Article and as provided by or pursuant to the terms of such
Securities, such Securities or the portions thereof, as the case may be, to be repaid shall become
due and payable and shall be paid by the Company on the Repayment Date therein specified, and on
and after such Repayment Date (unless the Company shall default in the payment of such Securities
on such Repayment Date) such Securities shall, if the same were interest-bearing, cease to bear
interest and the coupons for such interest appertaining to any Bearer Securities so to be repaid,
except to the extent provided below, shall be void. Upon surrender of any such Security for
repayment in accordance with such provisions, together with all coupons, if any, appertaining
thereto maturing after the Repayment Date, the principal amount of such Security so to be repaid
shall be paid by the Company, together with accrued interest, if any, to the Repayment Date;
provided, however, that coupons whose Stated Maturity is on or prior to the
Repayment Date shall be payable only at an office or agency located outside the United States
(except as otherwise provided in Section 1002) and, unless otherwise specified pursuant to Section
301, only upon presentation and surrender of such coupons; and provided further that, in
the case of Registered Securities, installments of interest, if any, whose Stated Maturity is on or
prior to the Repayment Date shall be payable (but without interest thereon, unless the Company
shall default in the payment thereof) to the Holders of such Securities, or one or more Predecessor
Securities, registered as such at the close of business on the relevant Record Dates according to
their terms and the provisions of Section 307.

     If any Bearer Security surrendered for repayment shall not be accompanied by all appurtenant
coupons maturing after the Repayment Date, such Security may be paid after deducting from the
amount payable therefor as provided in Section 1302 an amount equal to the face amount of all such
missing coupons, or the surrender of such missing coupon or coupons may be waived by the Company
and the Trustee if there be furnished to them such security or

 

 

indemnity as they may require to
save each of them and any Paying Agent harmless. If thereafter the Holder of such Security shall
surrender to the Trustee or any Paying Agent any such missing coupon in respect of which a
deduction shall have been made as provided in the preceding sentence, such Holder shall be entitled
to receive the amount so deducted; provided, however,
that interest represented by coupons shall be payable only at an office or agency located
outside the United States (except as otherwise provided in Section 1002) and, unless otherwise
specified as contemplated by Section 301, only upon presentation and surrender of those coupons.

     If the principal amount of any Security surrendered for repayment shall not be so
repaid upon surrender thereof, such principal amount (together with interest, if any, thereon
accrued to such Repayment Date) shall, until paid, bear interest from the Repayment Date at the
rate of interest or Yield to Maturity (in the case of Original Issue Discount Securities) set forth
in such Security.

     SECTION 1305. Securities Repaid in Part. Upon surrender of any Registered Security
which is to be repaid in part only, the Company shall execute and the Trustee shall authenticate
and deliver to the Holder of such Security, without service charge and at the expense of the
\Company, a new Registered Security or Securities of the same series, of any authorized
denomination specified by the Holder, in an aggregate principal amount equal to and in exchange for
the portion of the principal of such Security so surrendered which is not to be repaid.

ARTICLE FOURTEEN — DEFEASANCE AND COVENANT DEFEASANCE

     SECTION 1401. Applicability of Article: Company’s Option to Effect Defeasance or Covenant
Defeasance. If, pursuant to Section 301, provision is made for either or both of (a)
defeasance of the Securities of or within a series under Section 1402 or (b) covenant defeasance of
the Securities of or within a series under Section 1403, then the provisions of such Section or
Sections, as the case may be, together with the other provisions of this Article (with such
modifications thereto as may be specified pursuant to Section 301 with respect to any Securities),
shall be applicable to such Securities and any coupons appertaining thereto, and the Company may at
its option by Board Resolution, at any time, with respect to such Securities and any coupons
appertaining thereto, elect to have Section 1402 (if applicable) or Section 1403 (if applicable) be
applied to such Outstanding Securities and any coupons appertaining thereto upon compliance with
the conditions set forth below in this Article.

     SECTION 1402. Defeasance and Discharge. Upon the Company’s exercise of the
above option applicable to this Section with respect to any Securities of or within a series, the
Company shall be deemed to have been discharged from its obligations with respect to such
Outstanding Securities and any coupons appertaining thereto on the date the conditions set forth in
Section 1404 are satisfied (hereinafter, “defeasance”). For this purpose, such defeasance means
that the Company shall be deemed to have paid and discharged the entire indebtedness represented by
such Outstanding Securities and any coupons appertaining thereto, which shall thereafter be deemed
to be “Outstanding” only for the purposes of Section 1405 and the other Sections of this

 

 

Indenture
referred to in clauses (A) and (B) below, and to have satisfied all of its other obligations under
such Securities and any coupons appertaining thereto and this Indenture insofar as such Securities
and any coupons
appertaining thereto are concerned (and the Trustee, at the expense of the Company, shall
execute proper instruments acknowledging the same), except for the following which shall survive
until otherwise terminated or discharged hereunder: (A) the rights of Holders of such Outstanding
Securities and any coupons appertaining thereto to receive, solely from the trust fund described in
Section 1404 and as more fully set forth in such Section, payments in respect of the principal of
(and premium or Make-Whole Amount, if any) and interest, if any, on such Securities and any coupons
appertaining thereto when such payments are due, (B) the Company’s obligations with respect to such
Securities under Sections 305, 306, 1002 and 1003, and the Company’s obligations under Section 606
hereof (C) the rights, powers, trusts, duties and immunities of the Trustee hereunder and (D) this
Article. Subject to compliance with this Article Fourteen, the Company may exercise its option
under this Section notwithstanding the prior exercise of its option under Section 1403 with respect
to such Securities and any coupons appertaining thereto.

     SECTION 1403. Covenant Defeasance. Upon the Company’s exercise of the above option
applicable to this Section with respect to any Securities of or within a series, the Company shall
be released from its obligations under Sections 1004 to 1009, inclusive, and, if specified pursuant
to Section 301, its obligations under any other covenant contained herein or in any indenture
supplemental hereto, with respect to such Outstanding Securities and any coupons appertaining
thereto on and after the date the conditions set forth in Section 1404 are satisfied (hereinafter,
“covenant defeasance”), and such Securities and any coupons appertaining thereto shall thereafter
be deemed to be not “Outstanding” for the purposes of any direction, waiver, consent or declaration
or Act of Holders (and the consequences of any thereof) in connection with Sections 1004 to 1009,
inclusive, or such other covenant, but shall continue to be deemed “Outstanding” for all other
purposes hereunder. For this purpose, such covenant defeasance means that, with respect to such
Outstanding Securities and any coupons appertaining thereto, the Company may omit to comply with
and shall have no liability in respect of any term, condition or limitation set forth in any such
Section or such other covenant, whether directly or indirectly, by reason of any reference
elsewhere herein to any such Section or such other covenant or by reason of reference in any such
Section or such other covenant to any other provision herein or in any other document and such
omission to comply shall not constitute a default or an Event of Default under Section 501(4) or
501(8) or otherwise, as the case may be, but, except as specified above, the remainder of this
Indenture and such Securities and any coupons appertaining thereto shall be unaffected thereby.

     SECTION 1404. Conditions to Defeasance or Covenant Defeasance. The following shall
be the conditions to application of Section 1402 or Section 1403 to any Outstanding Securities of
or within a series and any coupons appertaining thereto:

          (a) The Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee satisfying the requirements of Section 607 who shall agree to comply
with the provisions of this Article Fourteen applicable to it) as trust funds in trust for the

 

 

purpose of making the following payments, specifically pledged as security for, and dedicated
solely to, the benefit of the Holders of such Securities and any coupons appertaining thereto, (1)
an amount in such currency, currencies or currency unit in which such Securities and any coupons
appertaining thereto are then specified as payable at Stated Maturity, or (2) Government
Obligations applicable to such Securities and coupons appertaining thereto (determined on the
basis of the currency, currencies or currency unit in which such Securities and coupons
appertaining thereto are then specified as payable at Stated Maturity) which through the scheduled
payment of principal and interest in respect thereof in accordance with their terms will provide,
not later than the due date of any payment of principal of (and premium or Make-Whole Amount, if
any) and interest, if any, on such Securities and any coupons appertaining thereto, money in an
amount, or (3) a combination thereof, in any case, in an amount, sufficient, without consideration
of any reinvestment of such principal and interest, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof delivered to the
Trustee, to pay and discharge, and which shall be applied by the Trustee (or other qualifying
trustee) to pay and discharge, (i) the principal of (and premium or Make-Whole Amount, if any) and
interest, if any, on such Outstanding Securities and any coupons appertaining thereto on the Stated
Maturity of such principal or installment of principal or interest and (ii) any mandatory sinking
fund payments or analogous payments applicable to such Outstanding Securities and any coupons
appertaining thereto on the day on which such payments are due and payable in accordance with the
terms of this Indenture and of such Securities and any coupons appertaining thereto.

          (b) Such defeasance or covenant defeasance shall not result in a breach or violation of, or
constitute a default under, this Indenture or any other material agreement or instrument to which
the Company is a party or by which it is bound.

          (c) No Event of Default or event which with notice or lapse of time or both would become an
Event of Default with respect to such Securities and any coupons appertaining thereto shall have
occurred and be continuing on the date of such deposit or, insofar as Sections 501(6) and 501(7)
are concerned, at any time during the period ending on the 91st day after the date of such deposit
(it being understood that this condition shall not be deemed satisfied until the expiration of such
period).

          (d) In the case of an election under Section 1402, the Company shall have delivered to the
Trustee an Opinion of Counsel stating that (i) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling, or (ii) since the date of execution of this
Indenture, there has been a change in the applicable Federal income tax law, in either case to the
effect that, and based thereon such opinion shall confirm that, the Holders of such Outstanding
Securities and any coupons appertaining thereto will not recognize income, gain or loss for Federal
income tax purposes as a result of such defeasance and will be subject to Federal income tax on the
same amounts, in the same manner and at the same times as would have been the case if such
defeasance had not occurred.

 

 

          (e) In the case of an election under Section 1403, the Company shall have
delivered to the Trustee an Opinion of Counsel to the effect that the Holders of such Outstanding
Securities and any coupons appertaining thereto will not recognize income, gain or loss for Federal
income tax purposes as a result of such covenant defeasance and will be subject to Federal income
tax on the same amounts, in the same manner and at the same times as would have been the case if
such covenant defeasance had not occurred.

          (f) The Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent to the defeasance under Section 1402 or the
covenant defeasance under Section 1403 (as the case may be) have been complied with and an Opinion
of Counsel to the effect that either (i) as a result of a deposit pursuant to subsection (a) above
and the related exercise of the Company’s option under Section 1402 or Section 1403 (as the case
may be), registration is not required under the Investment Company Act of 1940, as amended, by the
Company, with respect to the trust funds representing such deposit or by the Trustee for such trust
funds or (ii) all necessary registrations under said Act have been effected.

          (g) Notwithstanding any other provisions of this Section, such defeasance or covenant
defeasance shall be effected in compliance with any additional or substitute terms, conditions or
limitations which may be imposed on the Company in connection therewith pursuant to Section 301.

          (h) The payment of amounts payable to the Trustee pursuant to this Indenture shall be paid or
provided for to the reasonable satisfaction of the Trustee.

     SECTION 1405. Deposited Money and Government Obligations to Be Held in Trust; Other
Miscellaneous Provisions. Subject to the provisions of the last paragraph of Section 1003, all
money and Government Obligations (or other property as may be provided pursuant to Section 301)
(including the proceeds thereof) deposited with the Trustee (or other qualifying trustee,
collectively for purposes of this Section 1405, the “Trustee”) pursuant to Section 1404 in respect
of any Outstanding Securities of any series and any coupons appertaining thereto shall be held in
trust and applied by the Trustee, in accordance with the provisions of such Securities and any
coupons appertaining thereto and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine,
to the Holders of such Securities and any coupons appertaining thereto of all sums due and to
become due thereon in respect of principal (and premium or Make-Whole Amount, if any) and interest,
but such money need not be segregated from other funds except to the extent required by law.

     Unless otherwise specified with respect to any Security pursuant to Section 301, if,
after a deposit referred to in Section 1404(a) has been made, (a) the Holder of a Security in
respect of which such deposit was made is entitled to, and does, elect pursuant to Section 301 or
the terms of such Security to receive payment in a currency or currency unit other than that in
which the deposit pursuant to Section 1404(a) has been made in respect of such Security, or (b) a

 

 

Conversion Event occurs in respect of the currency or currency unit in which the deposit
pursuant to Section 1404(a) has been made, the indebtedness represented by such Security and any
coupons appertaining thereto shall be deemed to have been, and will be, fully discharged and
satisfied through the payment of the principal of (and premium or Make-Whole Amount, if any), and
interest, if any, on such Security as the same becomes due out of the proceeds yielded by
converting (from time to time as specified below in the case of any such election) the amount or
other property deposited in respect of such Security into the currency or currency unit in which
such Security becomes payable as a result of such election or Conversion Event based on the
applicable market exchange rate for such currency or currency unit in effect on the second Business
Day prior to each payment date, except, with respect to a Conversion Event, for such currency or
currency unit in effect (as nearly as feasible) at the time of the Conversion Event.

     The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the Government Obligations deposited pursuant to Section 1404 or the
principal and interest received in respect thereof other than any such tax, fee or other charge
which by law is for the account of the Holders of such Outstanding Securities and any coupons
appertaining thereto.

     Anything in this Article to the contrary notwithstanding, subject to Section 606, the Trustee
shall deliver or pay to the Company from time to time upon Company Request any money or Government
Obligations (or other property and any proceeds therefrom) held by it as provided in Section 1404
which, in the opinion of a nationally recognized firm of independent public accountants expressed
in a written certification thereof delivered to the Trustee, are in excess of the amount thereof
which would then be required to be deposited to effect a defeasance or covenant defeasance, as
applicable, in accordance with this Article.

ARTICLE FIFTEEN — MEETINGS OF HOLDERS OF SECURITIES

     SECTION 1501. Purposes for Which Meetings May Be Called. A meeting of Holders of
Securities of any series may be called at any time and from time to time pursuant to this Article
to make, give or take any request, demand, authorization, direction, notice, consent, waiver or
other action provided by this Indenture to be made, given or taken by Holders of Securities of such
series.

     SECTION 1502. Call, Notice and Place of Meetings. (a) The Trustee may at any time
call a meeting of Holders of Securities of any series for any purpose specified in Section 1501, to
be held at such time and at such place as the Trustee shall determine. Notice of every meeting of
Holders of Securities of any series, setting forth the time and the place of such meeting and in
general terms the action proposed to be taken at such meeting, shall be given, in the manner
provided in Section 106, not less than 20 nor more than 180 days prior to the date fixed for the
meeting.

 

 

          (b) In case at any time the Company, pursuant to a Board Resolution, or the Holders of
at least 25% in principal amount of the Outstanding Securities of any series shall have
requested the Trustee to call a meeting of the Holders of Securities of such series for any
purpose specified in Section 1501, by written request setting forth in reasonable detail the action
proposed to be taken at the meeting, and the Trustee shall not have made the first publication of
the notice of such meeting within 20 days after receipt of such request or shall not thereafter
proceed to cause the meeting to be held as provided herein, then the Company or the Holders of
Securities of such series in the amount above specified, as the case may be, may determine the time
and the place for such meeting and may call such meeting for such purposes by giving notice thereof
as provided in subsection (a) of this Section.

     SECTION 1503. Persons Entitled to Vote at Meetings. To be entitled to vote at any
meeting of Holders of Securities of any series, a Person shall be (1) a Holder of one or more
Outstanding Securities of such series, or (2) a Person appointed by an instrument in writing as
proxy for a Holder or Holders of one or more Outstanding Securities of such series by such Holder
or Holders. The only Persons who shall be entitled to be present or to speak at any meeting of
Holders of Securities of any series shall be the Persons entitled to vote at such meeting and their
counsel, any representatives of the Trustee and its counsel and any representatives of the Company
and its counsel.

     SECTION 1504. Quorum; Action. The Persons entitled to vote a majority in principal
amount of the Outstanding Securities of a series shall constitute a quorum for a meeting of Holders
of Securities of such series; provided, however, that if any action is to be taken
at such meeting with respect to a consent or waiver which this Indenture expressly provides may be
given by the Holders of not less than a specified percentage in principal amount of the Outstanding
Securities of a series, the Persons entitled to vote such specified percentage in principal amount
of the Outstanding Securities of such series shall constitute a quorum. In the absence of a quorum
within 30 minutes after the time appointed for any such meeting, the meeting shall, if convened at
the request of Holders of Securities of such series, be dissolved. In any other case the meeting
may be adjourned for a period of not less than 10 days as determined by the chairman of the meeting
prior to the adjournment of such meeting. In the absence of a quorum at the reconvening of any
such adjourned meeting, such adjourned meeting may be further adjourned for a period of not less
than 10 days; at the reconvening of any meeting adjourned or further adjourned for lack of a
quorum, the persons entitled to vote 25% in aggregate principal amount of the then Outstanding
Securities shall constitute a quorum for the taking of any action set forth in the notice of the
original meeting. Notice of the reconvening of any adjourned meeting shall be given as provided in
Section 1502(a), except that such notice need be given only once not less than five days prior to
the date on which the meeting is scheduled to be reconvened.

     Except as limited by the proviso to Section 902, any resolution presented to a meeting
or adjourned meeting duly reconvened at which a quorum is present as aforesaid may be adopted by
the affirmative vote of the persons entitled to vote a majority in aggregate principal amount of
the Outstanding Securities represented at such meeting; provided, however, that,
except as limited by

 

 

the proviso to Section 902, any resolution with respect to any request,
demand, authorization, direction, notice, consent, waiver or other action which this Indenture
expressly provides may be made, given or taken by the Holders of a specified percentage, which is
less than a majority, in principal amount of the Outstanding Securities of a series may be adopted
at a meeting or an
adjourned meeting duly reconvened and at which a quorum is present as aforesaid by the
affirmative vote of the Holders of such specified percentage in principal amount of the Outstanding
Securities of that series.

     Any resolution passed or decision taken at any meeting of Holders of Securities of any series
duly held in accordance with this Section shall be binding on all the Holders of Securities of such
series and the related coupons, whether or not present or represented at the meeting.

     Notwithstanding the foregoing provisions of this Section 1504, if any action is to be taken at
a meeting of Holders of Securities of any series with respect to any request, demand,
authorization, direction, notice, consent, waiver or other action that this Indenture expressly
provides may be made, given or taken by the Holders of a specified percentage in principal amount
of all Outstanding Securities affected thereby, or of the Holders of such series and one or more
additional series:

               (i) there shall be no minimum quorum requirement for such meeting; and

               (ii) the principal amount of the Outstanding Securities of such series that vote in
favor of such request, demand, authorization, direction, notice, consent, waiver or other
action shall be taken into account in determining whether such request, demand,
authorization, direction, notice, consent, waiver or other action has been made, given or
taken under this Indenture.

     SECTION 1505. Determination of Voting Rights; Conduct and Adjournment of Meetings.
(a) Notwithstanding any provisions of this Indenture, the Trustee may make such reasonable
regulations as it may deem advisable for any meeting of Holders of Securities of a series in regard
to proof of the holding of Securities of such series and of the appointment of proxies and in
regard to the appointment and duties of inspectors of votes, the submission and examination of
proxies, certificates and other evidence of the right to vote, and such other matters concerning
the conduct of the meeting as it shall deem appropriate. Except as otherwise permitted or required
by any such regulations, the holding of Securities shall be proved in the manner specified in
Section 104 and the appointment of any proxy shall be proved in the manner specified in Section 104
or by having the signature of the Person executing the proxy witnessed or guaranteed by any trust
company, bank or banker authorized by Section 104 to certify to the holding of Bearer Securities.
Such regulations may provide that written instruments appointing proxies, regular on their face,
may be presumed valid and genuine without the proof specified in Section 104 or other proof.

 

 

          (b) The Trustee shall, by an instrument in writing appoint a temporary chairman of the
meeting, unless the meeting shall have been called by the Company or by Holders of Securities as
provided in Section 1502(b), in which case the Company or the Holders of Securities of the series
calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A
permanent chairman and a permanent secretary of the meeting shall be
elected by vote of the Persons entitled to vote a majority in principal amount of the
Outstanding Securities of such series represented at the meeting.

          (c) At any meeting each Holder of a Security of such series or proxy shall be entitled to one
vote for each $1,000 principal amount of the Outstanding Securities of such series held or
represented by him; provided, however, that no vote shall be cast or counted at any
meeting in respect of any Security challenged as not Outstanding and ruled by the chairman of the
meeting to be not Outstanding. The chairman of the meeting shall have no right to vote, except as
a Holder of a Security of such series or proxy.

          (d) Any meeting of Holders of Securities of any series duly called pursuant to Section 1502 at
which a quorum is present may be adjourned from time to time by Persons entitled to vote a majority
in principal amount of the Outstanding Securities of such series represented at the meeting, and
the meeting may be held as so adjourned without further notice.

     SECTION 1506. Counting Votes and Recording Action of Meetings. The vote upon any
resolution submitted to any meeting of Holders of Securities of any series shall be by written
ballots on which shall be subscribed the signatures of the Holders of Securities of such series or
of their representatives by proxy and the principal amounts and serial numbers of the Outstanding
Securities of such series held or represented by them. The permanent chairman of the meeting shall
appoint two inspectors of votes who shall count all votes cast at the meeting for or against any
resolution and who shall make and file with the secretary of the meeting their verified written
reports in duplicate of all votes cast at the meeting. A record, at least in duplicate, of the
proceedings of each meeting of Holders of Securities of any Series shall be prepared by the
secretary of the meeting and there shall be attached to said record the original reports of the
inspectors of votes on any vote by ballot taken thereat and affidavits by one or more persons
having knowledge of the fact, setting forth a copy of the notice of the meeting and showing that
said notice was given as provided in Section 1502 and, if applicable, Section 1504. Each copy
shall be signed and verified by the affidavits of the permanent chairman and secretary of the
meeting and one such copy shall be delivered to the Company and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting.
Any record so signed and verified shall be conclusive evidence of the matters therein stated.

 

 

SIGNATURES AND SEALS

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

	 	 	 	 	 
	 	 	BAY APARTMENT COMMUNITIES, INC.
	 
	 	 	 	 
	[Corporate Seal]

	 	By:
	 	/s/ Gilbert M. Meyer
	 

	 	 	 	 
	 

	 	 	 	Name: Gilbert M. Meyer
	 

	 	 	 	Title: President
	 
	 	 	 	 
	 

	 	 	 	Attest: Jeffrey B. VanHorn
	 

	 	 	 	Title: Chief Financial Officer
	 
	 	 	 	 
	 	 	STATE STREET BANK AND TRUST COMPANY,
	 

	 	 	 	as Trustee
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Robert J. Dunn
	 

	 	 	 	 
	 

	 	 	 	Name: Robert J. Dun
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 

	 	 	 	Attest:/s/ [illegible]
	 

	 	 	 	Title: Vice President

 

 

ACKNOWLEDGMENT

STATE OF CALIFORNIA

) ss:

COUNTY OF SANTA CLARA

On the 15TH day of January, 1998, before me personally came Gilbert M. Meyer, to me known, who,
being by me duly sworn, did depose and say that he is the President of BAY APARTMENT COMMUNITIES,
INC., one of the parties described in and which executed the foregoing instrument, and that he
signed his name thereto by authority of the Board of Directors.

[Notarial Seal]

/s/ Anna Maria Kintzer                    

Notary Public

Commission Expires

STATE OF MASSACHUSETTS

) ss:

COUNTY OF SUFFOLK

On the 15TH day of January, 1998, before me personally came Robert J. Dunn, to me known, who, being
by me duly sworn, did depose and say that he is a Vice President of STATE STREET BANK AND TRUST
COMPANY, one of the parties described in and which executed the foregoing instrument, and that he
signed his name thereto by authority of the Board of Directors.

[Notarial Seal]

/s/ [illegible]                    

Notary Public

Commission Expires

 

 

EXHIBIT A

FORM OF REDEEMABLE OR NON-REDEEMABLE SENIOR SECURITY

[Face of Security]

[If the Holder of this Security (as indicated below) is The Depository Trust Company (“DTC”) or a
nominee of DTC, this Security is a Global Security and the following two legends apply:

Unless this Security is presented by an authorized representative of The Depository Trust Company
(“DTC”), 55 Water Street, New York, New York to the issuer or its agent for registration of
transfer, exchange or payment, and such Security issued is registered in the name of CEDE & CO., or
such other name as 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, since the registered owner
hereof, CEDE & CO., has an interest herein.

Unless and until this Security is exchanged in whole or in part for Securities in certificated
form, this Security may not be transferred except as a whole by DTC to a nominee thereof or by a
nominee thereof to DTC or another nominee of DTC or by DTC or any such nominee to a successor of
DTC or a nominee of such successor.]

[If this Security is an Original Issue Discount Security, insert — FOR PURPOSES OF SECTION
1273 and 1275 OF THE UNITED STATES INTERNAL REVENUE CODE, THE AMOUNT OF ORIGINAL ISSUE DISCOUNT ON
THIS SECURITY IS  % OF ITS PRINCIPAL AMOUNT, THE ISSUE DATE
IS                    ,19___ [AND] THE YIELD TO MATURITY IS                     %. [THE METHOD USED TO DETERMINE THE
AMOUNT OF ORIGINAL ISSUE DISCOUNT APPLICABLE TO THE SHORT ACCRUAL PERIOD OF                     ,
19___TO                     , 19___, IS                     % OF THE PRINCIPAL AMOUNT OF THIS
SECURITY.]

BAY APARTMENT COMMUNITIES, INC.

[Designation of Series]

			
	No.                     
	 	$                    
	 	 	 

BAY APARTMENT COMMUNITIES, INC., a Maryland corporation (herein referred to as the
“Company,” which term includes any successor corporation under the Indenture referred to on the
reverse hereof), for value received, hereby promises to pay to
                                         or
registered assigns the principal sum of                      Dollars on                                          (the “Stated
Maturity Date”) [or insert date fixed for earlier redemption (the “Redemption Date,” and
together with the Stated Maturity Date with respect to principal repayable on such date, the
“Maturity Date.”)]

 

 

[If the Security is to bear interest prior to Maturity, insert — and to pay interest
thereon from                      or from the most recent Interest Payment Date to which interest has
been paid or duly provided for, semi-annually on                      and                     in each year (each, an
“Interest Payment Date”), commencing                     , at the rate of ___% per annum, until the principal
hereof is paid or duly provided for. The interest so payable, and punctually paid or duly provided
for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Holder in
whose name this Security (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such interest, which shall be the                      or                     
(whether or not a Business Day), as the case may be, next preceding such Interest Payment Date [at
the office or agency of the Company maintained for such purpose; provided, however,
that such interest may be paid, at the Company’s option, by mailing a check to such Holder at its
registered address or by transfer of funds to an account maintained by such Holder within the
United States]. Any such interest not so punctually paid or duly provided for shall forthwith
cease to be payable to the Holder on such Regular Record Date, and may be paid to the Holder in
whose name this Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10
days prior to such Special Record Date, or may be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the Securities of this
series may be listed, and upon such notice as may be required by such exchange, all as more fully
provided in the Indenture. Interest will be computed on the basis of a 360-day year of twelve
30-day months.]

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

The principal of this Security payable on the Stated Maturity Date [or the principal of,
premium or Make-Whole Amount, if any, and, if the Redemption Date is not an Interest Payment Date,
interest on this Security payable on the Redemption Date] will be paid against presentation of this
Security at the office or agency of the Company maintained for that purpose in                                         ,
in such coin or currency of the United States of America as at the time of payment is legal tender
for the payment of public and private debts.

 

 

Interest payable on this Security on any Interest Payment Date and on the [Stated] Maturity Date
[or Redemption Date, as the case may be,] will include interest accrued from and including the
next preceding Interest Payment Date in respect of which interest has been paid or duly provided
for (or from and including                     , if no interest has been paid on this Security) to but
excluding such Interest Payment Date or the [Stated] Maturity Date [or Redemption Date, as the case
may be.] If any Interest Payment Date or the [Stated] Maturity Date or [Redemption Date] falls on
a day that is not a Business Day, as defined below, principal, premium or Make-Whole Amount, if
any, and/or interest payable with respect to such Interest Payment Date or [Stated] Maturity Date
[or Redemption Date, as the case may be,] will be paid on the next succeeding Business Day with the
same force and effect as if it were paid on the date such payment was due, and no interest shall
accrue on the amount so payable for the period from and after such Interest Payment Date or
[Stated] Maturity Date [or Redemption Date, as the case may be.] “Business Day” means any day,
other than a Saturday or Sunday, on which banks in                      are not required or
authorized by law or executive order to close.

[If this Security is a Global Security, insert — All payments of principal, premium or
Make-Whole Amount, if any, and interest in respect of this Security will be made by the Company in
immediately available funds.]

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

Unless the Certificate of Authentication hereon has been executed by the Trustee by manual
signature of one of its authorized signatories, this Security shall not be entitled to any benefit
under the Indenture, or be valid or obligatory for any purpose.

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

	 	 	 	 	 
	Dated:                          	 	BAY APARTMENT COMMUNITIES, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Attest:
	 	 	 	 
	 
	 	 	 	 
	                                        
	 	 	 	 
	Secretary
	 	 	 	 

 

 

[Reverse of Security]

BAY APARTMENT COMMUNITIES, INC.

This Security is one of a duly authorized issue of securities of the Company (herein called the
“Securities”), issued and to be issued in one or more
series under an Indenture, dated as of ______, 199______(herein
called the “Indenture”) between the Company and
______, as Trustee (herein called the “Trustee,” which term includes any successor
trustee under the Indenture with respect to the series of which this Security is a part), to which
Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and are
to be, authenticated and delivered. This Security is one of the duly authorized series of
Securities designated on the face hereof (collectively, the “Securities”), [if applicable,
insert — and the aggregate principal amount of the Securities to be issued under such series
is limited to $______(except for Securities authenticated and delivered upon transfer of, or in
exchange for, or in lieu of other Securities).] All terms used in this Security which are defined
in the Indenture shall have the meanings assigned to them in the Indenture.

If an Event of Default, as defined in the Indenture, shall occur and be continuing, the principal
of the Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture.

[If applicable, insert — The Securities may not be redeemed prior to the Stated Maturity
Date.]

[If applicable, insert — The Securities are subject to redemption [ (l) (If
applicable, insert — on ___in any year commencing with the year _________and ending with
the year ______through operation of the sinking fund for this series at a Redemption Price equal to
100% of the principal amount, and (2) ] [If applicable, insert — at any time [on or after
___], as a whole or in part, at the election of the Company, at the following Redemption
Prices (expressed as percentages of the principal amount):

If redeemed on or before ______, ______% and if redeemed during the 12-month period
beginning
______of the years indicated at the Redemption Prices indicated below.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Year	 	Redemption Price	 	 	Year	 	 	Redemption Price	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

and thereafter at a Redemption Price equal to ___% of the principal amount, together in the
case of any such redemption [If applicable, insert — (whether through operation of the
sinking fund or otherwise)] with accrued interest to the Redemption Date; provided,
however, that installments

 

 

of interest on this Security whose Stated Maturity is on or prior to
such Redemption Date will be
payable to the Holder of this Security, or one or more Predecessor Securities, of record at the
close of business on the relevant Record Dates referred to on the face hereof, all as provided in
the Indenture.]

     [If applicable, insert — The Securities are subject to redemption (1) on ___ in
any year commencing with the year ___ and ending with the year ___ through operation of the
sinking fund for this series at the Redemption Prices for redemption through operation of the
sinking fund (expressed as percentages of the principal amount) set forth in the table below, and
(2) at any time [on or after ______], as a whole or in part, at the election of the Company, at
the Redemption Prices for redemption otherwise than through operation of the sinking fund
(expressed as percentages of the principal amount) set forth in the table below: If redeemed during
the 12-month period beginning ______ of the years indicated,

	 	 	 	 	 	 	 	 	 
	 	 	Redemption Price for	 	 	Redemption Price for	 
	 	 	Redemption Through	 	 	Redemption Otherwise	 
	 	 	Operation of the	 	 	Than Through Operation	 
	Year	 	Sinking Fund	 	 	of the Sinking Fund	 
	 
	 	 	 	 	 	 	 	 

and thereafter at a Redemption Price equal to ___% of the principal amount, together in the case
of any such redemption (whether through operation of the sinking fund or otherwise) with accrued
interest to the Redemption Date; provided, however, that installments of interest
on this Security whose Stated Maturity is on or prior to such Redemption Date will be payable to
the Holder of this Security, or one or more Predecessor Securities, of record at the close of
business on the relevant Record Dates referred to on the face hereof, all as provided in the
Indenture.]

     [If applicable, insert — Notwithstanding the foregoing, the Company may not, prior to
______, redeem any Securities as contemplated by [Clause (2) of] the preceding paragraph as a part
of, or in anticipation of, any refunding operation by the application, directly or indirectly, of
moneys borrowed having an interest cost to the Company (calculated in accordance with generally
accepted financial practice) of less than ______% per annum.]

     [If applicable, insert — The sinking fund for the Securities provides for the
redemption on ______in each year, beginning with the year ______and ending with the year ___, of
[not less than] $______] [(“mandatory sinking fund”) and not more than $___] aggregate
principal amount of the Securities. [The Securities acquired or redeemed by the Company otherwise
than through [mandatory] sinking fund payments may be credited against subsequent [mandatory]
sinking fund payments otherwise required to be made in the [describe order] order in which
they become due.]]

     Notice of redemption will be given by mail to Holders of Securities, not less than 30 nor more
than 60 days prior to the Redemption Date, all as provided in the Indenture.

 

 

     In the event of redemption of this Security in part only, a new Security or Securities for the
unredeemed portion hereof shall be issued in the name of the Holder hereof upon the cancellation
hereof.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities under the Indenture at any time by the Company and the Trustee with the consent of the
Holders of not less than a majority of the aggregate principal amount of all Securities issued
under the Indenture at the time Outstanding and affected thereby. The Indenture also contains
provisions permitting the Holders of not less than a majority of the aggregate principal amount of
the Outstanding Securities, on behalf of the Holders of all such Securities, to waive compliance by
the Company with certain provisions of the Indenture. Furthermore, provisions in the Indenture
permit the Holders of not less than a majority of the aggregate principal amount, in certain
instances, of the Outstanding Securities of any series to waive, on behalf of all of the Holders of
Securities of such series, certain past defaults under the Indenture and their consequences. Any
such consent or waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and other Securities issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation
of such consent or waiver is made upon this Security.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of (and premium or Make-Whole Amount, if any) and interest on this Security at the
times, places and rate, and in the coin or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein [and herein] set
forth, the transfer of this Security is registrable in the Security Register of the Company upon
surrender of this Security for registration of transfer at the office or agency of the Company in
any place where the principal of (and premium or Make-Whole Amount, if any) and interest on this
Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or by
his attorney duly authorized in writing, and thereupon one or more new Securities, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

     As provided in the Indenture and subject to certain limitations therein [and herein]
set forth, this Security is exchangeable for a like aggregate principal amount of Securities of
different authorized denominations but otherwise having the same terms and conditions, as requested
by the Holder hereof surrendering the same.

     The Securities of this series are issuable only in registered form [without coupons] in
denominations of $______ and any integral multiple thereof.

 

 

     No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith,

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

     No recourse shall be had for the payment of the principal of or premium or Make-Whole Amount,
if any, or the interest on this Security, or for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against
any past, present or future stockholder, employee, officer or director, as such, of the Company or
of any successor, either directly or through the Company or any successor, whether by virtue of any
constitution, statute or rule of law or by the enforcement of any assessment or penalty or
otherwise, all such liability being, by the acceptance hereof and as part of the consideration for
the issue hereof, expressly waived and released.

     The Indenture and the Securities shall be governed by and construed in accordance with the
laws of [the State of New York] applicable to agreements made and to be performed entirely in such
State.

 

 

EXHIBIT B

FORMS OF CERTIFICATION

EXHIBIT B-1

FORM OF CERTIFICATE TO BE GIVEN BY PERSON ENTITLED

TO RECEIVE BEARER SECURITY OR TO OBTAIN INTEREST

PAYABLE PRIOR TO THE EXCHANGE DATE

CERTIFICATE

     [Insert title or sufficient description of Securities to be delivered]

     This is to certify that, as of the date hereof, and except as set forth below, the
above-captioned Securities held by you for our account (i) are owned by person(s) that are not
citizens or residents of the United States, domestic partnerships, domestic corporations or any
estate or trust the income of which is subject to United States Federal income taxation regardless
of its source (“United States person(s)”), (ii) are owned by United States person(s) that are (a)
foreign branches of United States financial institutions (financial institutions, as defined in
United States Treasury Regulations Section 2.165-12(c)(1)(v) are herein referred to as “financial
institutions”) purchasing for their own account or for resale, or (b) United States person(s) who
acquired the Securities through foreign branches of United States financial institutions and who
hold the Securities through such United States financial institutions on the date hereof (and in
either case (a) or (b), each such United States financial institution hereby agrees, on its own
behalf or through its agent, that you may advise Bay Apartment Communities, Inc. or its agent that
such financial institution will comply with the requirements of Section 165(j)(3)(A), (B) or (C) of
the United States Internal Revenue Code of 1986, as amended, and the regulations thereunder), or
(iii) are owned by United States or foreign financial institution(s) for purposes of resale during
the restricted period (as defined in United States Treasury Regulations Section
1.163-5(c)(2)(i)(D)(7)), and, in addition, if the owner is a United States or foreign financial
institution described in clause (iii) above (whether or not also described in clause (i) or (ii)),
this is to further certify that such financial institution has not acquired the Securities for
purposes of resale directly or indirectly to a United States person or to a person within the
United States or its possessions.

     As used herein, “United States” means the United States of America (including the States and
the District of Columbia); and its “possessions” include Puerto Rico, the U.S. Virgin Islands,
Guam, American Samoa, Wake Island and the Northern Mariana Islands.

 

 

     We undertake to advise you promptly by tested telex on or prior to the date on which
you intend to submit your certification relating to the above-captioned Securities held by you for
our
account in accordance with your Operating Procedures if any applicable statement herein is not
correct on such date, and in the absence of any such notification it may be assumed that this
certification applies as of such date.

     This certificate excepts and does not relate to [U.S.$] of such interest in the
above-captioned Securities in respect of which we are not able to certify and as to which we
understand an exchange for an interest in a permanent Global Security or an exchange for and
delivery of definitive Securities (or, if relevant, collection of any interest) cannot be made
until we do so certify.

     We understand that this certificate may be required in connection with certain tax legislation
in the United States. If administrative or legal proceedings are commenced or threatened in
connection with which this certificate is or would be relevant, we irrevocably authorize you to
produce this certificate or a copy thereof to any interested party in such proceedings.

Dated:
___, ___

[To be dated no earlier than the 15th day prior to (i) the Exchange Date or (ii) the relevant
Interest Payment Date occurring prior to the Exchange Date, as applicable]

	 	 	 
	 

	 	[Name of Person Making Certification]
	 
	 	 
	 

	 	 
	 

	 	(Authorized Signature)
	 

	 	Name:
	 

	 	Title:

 

 

EXHIBIT B-2

FORM OF CERTIFICATE TO BE GIVEN BY EUROCLEAR

AND CEDEL S.A. IN CONNECTION WITH THE EXCHANGE OF

A PORTION OF A TEMPORARY GLOBAL SECURITY OR TO

OBTAIN INTEREST PAYABLE PRIOR TO THE EXCHANGE DATE

CERTIFICATE

     [Insert title or sufficient description of Securities to be delivered]

     This is to certify that, based solely on written certifications that we have received in
writing, by tested telex or by electronic transmission from each of the persons appearing in our
records as persons entitled to a portion of the principal amount set forth below (our “Member
Organizations”) substantially in the form attached hereto, as of the date hereof, [U.S.$] principal
amount of the above-captioned Securities (i) is owned by person(s) that are not citizens or
residents of the United States, domestic partnerships, domestic corporations or any estate or trust
the income of which is subject to United States Federal income taxation regardless of its source
(“United States person(s)”), (ii) is owned by United States person(s) that are (a) foreign branches
of United States financial institutions (financial institutions, as defined in U.S. Treasury
Regulations Section 1.165-12(c)(1)(v) are herein referred to as “financial institutions”)
purchasing for their own account or for resale, or (b) United States person(s) who acquired the
Securities through foreign branches of United States financial institutions and who hold the
Securities through such United States financial institutions on the date hereof (and in either case
(a) or (b), each such financial institution has agreed, on its own behalf or through its agent,
that we may advise Bay Apartment Communities, Inc. or its agent that such financial institution
will comply with the requirements of Section 165(j)(3)(A), (B) or (C) of the Internal Revenue Code
of 1986, as amended, and the regulations thereunder), or (iii) is owned by United States or foreign
financial institution(s) for purposes of resale during the restricted period (as defined in United
States Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)), and, to the further effect, that
financial institutions described in clause (iii) above (whether or not also described in clause (i)
or (ii)) have certified that they have not acquired the Securities for purposes of resale directly
or indirectly to a United States person or to a person within the United States or its possessions.

     As used herein, “United States” means the United States of America (including the States and
the District of Columbia); and its “Possessions” include Puerto Rico, the U.S. Virgin Islands,
Guam, American Samoa, Wake Island and the Northern Mariana Islands.

     We further certify that (i) we are not making available herewith for exchange (or, if
relevant, collection of any interest) any portion of the temporary Global Security representing the
above-captioned Securities excepted in the above-referenced certificates of Member Organizations
and (ii) as of the date hereof we have not received any notification from any of our Member
Organizations to the effect that the statements made by such Member Organizations

 

 

with respect to any portion of the part submitted herewith for exchange (or, if relevant,
collection of any interest) are no longer true and cannot be relied upon as of the date hereof.

     We understand that this certification is required in connection with certain tax legislation
in the United States. If administrative or legal proceedings are commenced or threatened in
connection with which this certificate is or would be relevant, we irrevocably authorize you to
produce this certificate or a copy thereof to any interested party in such proceedings.

Dated: ______ ___

[To be dated no earlier than the Exchange Date or the relevant Interest Payment Date occurring
prior to the Exchange Date, as applicable]

	 	 	 	 	 
	 	 	[Morgan Guaranty Trust Company of New York, 
Brussels
Office,] as Operator of the Euroclear 
System [CEDEL
S.A.]
	 
	 	 	 	 
	 

	 	By:

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