Document:

EXHIBIT 10.1

 

AMENDMENT NO. 3 TO THE ORIGINAL LEASE

 

This
AMENDMENT NO. 3 TO THE ORIGINAL LEASE (“Amendment No. 3,”) dated January 11,
2010 for references purposes only, is made by and between GFE Goddard
Investment, LLC (“Lessor”) successor in interest through a Grant Deed from
Edison Spectrum Partners, LLC recorded April 24, 2009 and CombiMatrix
Molecular Diagnostics, Inc., a California corporation (“Lessee.”) This
Amendment No. 3 amends and modifies the terms and conditions of that
certain Lease dated June 26, 2006, as amended by that certain Amendment No. 1
dated July 7, 2007 and as further amended by that certain Amendment No. 2
to the Lease dated March 11, 2009 (as so amended, the “Original Lease”),
each of which are by and between Lessor and Lessee. The Original Lease, as
hereby amended by this Amendment No. 3, is referred to herein as the “Lease.”
Capitalized terms that are not otherwise defined in this Amendment No. 3
have the meanings ascribed to such terms as provided in the Original Lease.

 

RECITALS

 

(I)            Lessor and
Lessee previously entered into the Original Lease, which sets forth the terms
and conditions relating to Lessee’s occupancy of certain space located at 300
Goddard Way, Suite 150, Irvine, California and certain space located at
310 Goddard Way, Suite 150, Irvine, California (the “Original Premises”).

 

(II)           Lessor and
Lessee now desire to amend the Original Lease to (a) provide for Lessee’s
expansion into additional space, (b) adjust the Base Rent payable for the
existing premises and expansion space, and (c) set forth certain other
matters of agreement between Lessor and Lessee. Concurrently with the execution
of this Amendment No. 3, Lessor and Lessee have entered into a Work Letter
Agreement.

 

AGREEMENT

 

For
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Lessor and Lessee hereby agree as follows:

 

1.           Premises/Lease Term. Lessee is
extending its lease on (a) Suite 150 (3,206 rentable square feet) in
the 300 Goddard Way building and (b) Suite 150 (3,691 rentable square
feet) in the 310 Goddard Way building, each for three (3) years. Lessee is
expanding into Suite 100 (2,876 rentable square feet) in the 300 Goddard
Way building effective February 1, 2010 (“Expanded Space No. 1”);
Lessee has the option to occupy Expanded Space No. 1 without any charge
prior to the effective date of February 1, 2010 with the understanding
that tenant improvements will not have been completed.  The tenant improvements will be completed
after Lessee’s occupancy.  Lessor shall coordinate
the completion of the tenant improvements with Lessee to minimize disruption to
Lessee. The Lease term is for three (3) years, as further provided herein.
Lessee will also expand into Suite 100 (2,391 rentable square feet) in the
310 Goddard Way building upon completion of further tenant improvements (“Expanded
Space No. 2”), wherein the estimated completion date of said improvements
is March 1, 2010. The lease for Suite 100 at the 310 Goddard Way
building will terminate at the same time as Lessee’s other suites. No monies
are due on Expanded Space No. 2 until the further tenant improvements are
complete and said space is usable by Lessee for the intended purpose.
Notwithstanding any 

 

1

 

contrary
provision, the termination date is January 31, 2013 for all suites leased
by Lessee. The amount of rentable square feet is as follows: (a) 6,897 not
including either expanded space; (b) 9,773 including only Expanded Space No. 1;
(c) 9,288 including only Expanded Space No. 2; and (d) 12,164
including both expanded spaces. The amount of rentable space in square feet for
both buildings is 47,924. Lessor represents and warrants that the
aforementioned rentable square footages are true and accurate.

 

2.           Base Rent. The Base Rent
for all suites is as follows:

 

	
  Months

  	
   

  	
  Rent/RSF/Month

  	
   

  
	
  February 1, 2010 to January 31, 2011

  	
   

  	
  $

  	
  1.25

  	
   

  
	
  February 1, 2011 to January 31, 2012

  	
   

  	
  $

  	
  1.30

  	
   

  
	
  February 1, 2012 to January 31, 2013

  	
   

  	
  $

  	
  1.35

  	
   

  

 

Base
Rent for the premises is payable on the first day of each month. For any period
during the term that is less than one (1) full calendar month, Base Rent
shall be prorated based upon the actual number of days of the calendar month
involved.

 

3.           Lessee’s Share of
Operating Expenses. Lessee’s Share of Operating Expenses is determined
as provided in the Original Lease, which provides that such expenses are in
proportion to the amount of rentable square feet. The proportion, as a
percentage, is calculated by dividing the amount of square footage rented by
47,924, multiplied by 100, and round to two decimal points. For any period
during the term that is less than one (1) full calendar month, Operating
Expenses shall be prorated based upon the actual number of days of the calendar
month involved. The amount of Operating Expenses based on rentable square feet
is as follows:

 

	
  Space

  	
   

  	
  Sq. Ft.

  	
   

  	
  % Op. Exp.

  	
   

  
	
  Suite 150 in the 300 Goddard Way

  	
   

  	
  3,206

  	
   

  	
  6.69

  	
  %

  
	
  Suite 150 in the 310 Goddard Way

  	
   

  	
  3,691

  	
   

  	
  7.70

  	
  %

  
	
  Suite 100 in the 300 Goddard Way

  	
   

  	
  2,876

  	
   

  	
  6.00

  	
  %

  
	
  Suite 100 in the 310 Goddard Way

  	
   

  	
  2,391

  	
   

  	
  4.99

  	
  %

  
	
  Totals

  	
   

  	
  12,164

  	
   

  	
  25.38

  	
  %

  

 

No
Operating Expenses are due unless Lessee occupies said space as provided in
Paragraph 1.

 

4.           Tenant Improvements. Lessor shall
contribute up to One Hundred Fifty Thousand Dollars ($150,000.00) towards
tenant improvements per a mutually agreeable space plan prepared by Daryl
Malmberg Associates. Lessor’s contribution includes monies allocated for
preliminary space plans, architectural drawings, permits, construction, and
management fees. Any additional cost is the responsibility of Lessee, payable
prior to the start of construction, unless otherwise agreed to. Lessee and
Lessor agree that the tenant improvement work will be completed in phases. Some
of the work will be done in Lessee’s existing premises. Lessor will coordinate
a construction schedule with Lessee to minimize disruption to Lessee’s
business, while permitting the contractors to complete the work as scheduled.
Lessor and Lessee agree that rights and obligations with respect to tenant
improvements are further provided by a Work Letter Agreement entered into
between the parties hereto, and that the Work Letter Agreement further provides
a detailed construction schedule for said improvements. This Amendment No. 3
takes 

 

2

 

precedent
over the Work Letter Agreement in the event of inconsistency between the two
agreements.

 

5.           Vehicle Parking. Lessee is
entitled to forty-two (42) unreserved and unassigned vehicle parking spaces on
those portions of the Common Areas designated by Lessor for vehicle parking.

 

6.           Option to Extend. Lessor hereby
grants Lessee the option to extend the Lease Term for one (1) additional
period of three (3) years at the then prevailing fair market rental rate,
adjusted to include market concessions and commissions. Lessee shall provide
Lessor a minimum of nine (9) months, but not more than twelve (12) months
written notice of its intention to exercise its option to extend.

 

7.           Suite and
Directory Signage. Lessor, at Lessor’s cost, shall provide building
standard directory and suite signage.

 

8.           Building Signage. Lessee has
the option to install one building top sign on the 300 Goddard Way Building.
The sign location would be on the front of the building facing the 310
building. All costs associated with installation and removal of the building
sign are at Lessee’s expense and shall meet the sign criteria established by
the City of Irvine and the Lessor. This sign option is personal to Lessee and
must be exercised during the first twelve (12) months of the Lease Term or the
option expires.

 

9.           Security Deposit. Upon
execution of this amendment, Lessee shall provide to Landlord a security
deposit equal to $30,000. The security deposit is refundable to Lessee per the
terms outlined in Paragraph 5 of the lease. Lessee’s parent company
(CombiMatrix Corporation) shall guarantee the lease in writing.

 

10.         Proposition 13
Protection. Lessee is not responsible for any property tax
increase due to reassessment of the Building, or Project, as a result of
Proposition 13 during the period from February 1, 2011 to January 31,
2013.

 

11.         Building Standard HVAC Hours. 
The Building Standard HVAC hours are Monday through Friday from 8:00 a.m.
to 6:00 p.m., and Saturday from 8:00 a.m. to 12:00 p.m., except
for holidays.  Should Lessee require
after hours HVAC or supplemental air conditioning for their server room, Lessee
shall contact Lessor in writing to arrange such services.  The cost of providing after hours HVAC or
additional electricity to Lessee shall be paid for by Lessee.

 

Lessee and Lessor have
agreed that Lessee’s Premises at 300 Goddard Way, does not need to be
separately metered at this time.  Lessor
and Lessee have agreed that Lessee’s Premises in the 310 Goddard Way building
shall be separately metered to determine Lessee’s electrical and HVAC
usage.  Lessee shall pay Lessor for the
cost of additional electricity that is above standard office usage.  Lessor shall provide Lessee with a monthly
billing statement that indicates Lessee’s additional usage and the cost of such
usage.

 

12.         Furniture. Lessee has
the right to utilize the remaining furniture partitions in Suite 100 in
the 300 Building. There is no cost to Lessee to use said furniture for the
balance of the Lease Term and any extension thereof.

 

3

 

13.         Relocation. Lessor does
not have the right to relocate Lessee within the Building or Project.

 

4

 

EXECUTION

 

IN WITNESS WHEREOF, Lessor and Lessee have
executed this Amendment No. 3 effective as of the last date written below.

 

 

	
  LESSOR: GFE Goddard Investment, LLC

  	
   

  	
  LESSEE: CombiMatrix Molecular
  Diagnostics, Inc.

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ SEAN CAO

  	
   

  	
  Signature:

  	
  /s/ MANSOOR MOHAMMED

  
	
  Printed Name:

  	
  Sean Cao

  	
   

  	
  Printed Name:

  	
  Mansoor Mohammed

  
	
  Title

  	
  Manager

  	
   

  	
  Title

  	
  President &
  CEO

  
	
  Date:

  	
  January 13, 2010

  	
   

  	
  Date:

  	
  January 13, 2010

  
	
  Location:

  	
  Irvine, CA

  	
   

  	
  Location:

  	
  Irvine, CA

  

 

5Exhibit 4.1

 

EXECUTION COPY

 

 

KKR FINANCIAL HOLDINGS LLC, as Issuer,

 

-and-

 

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee

 

 

INDENTURE

 

Dated as of January 15, 2010

 

 

 

Debt Securities

 

 

 

CROSS-REFERENCE TABLE*

 

	
  Trust Indenture Act Section

  	
   

  	
  Indenture Section

  
	
  310

  	
  (a)(1)

  	
   

  	
   

  	
  607

  
	
   

  	
  (a)(2)

  	
   

  	
   

  	
  607

  
	
   

  	
  (a)(3)

  	
   

  	
   

  	
  N.A.

  
	
   

  	
  (a)(4)

  	
   

  	
   

  	
  N.A.

  
	
   

  	
  (a)(5)

  	
   

  	
   

  	
  607

  
	
   

  	
  (b)

  	
   

  	
   

  	
  608

  
	
   

  	
  (c)

  	
   

  	
   

  	
  N.A.

  
	
  311

  	
  (a)

  	
   

  	
   

  	
  604

  
	
   

  	
  (b)

  	
   

  	
   

  	
  604

  
	
   

  	
  (c)

  	
   

  	
   

  	
  N.A.

  
	
  312

  	
  (a)

  	
   

  	
   

  	
  701, 702

  
	
   

  	
  (b)

  	
   

  	
   

  	
  702

  
	
   

  	
  (c)

  	
   

  	
   

  	
  702

  
	
  313

  	
  (a)

  	
   

  	
   

  	
  703

  
	
   

  	
  (b)

  	
   

  	
   

  	
  1601

  
	
   

  	
  (c)

  	
   

  	
   

  	
  703

  
	
   

  	
  (d)

  	
   

  	
   

  	
  703

  
	
  314

  	
  (a)

  	
   

  	
   

  	
  704, 1007

  
	
   

  	
  (b)

  	
   

  	
   

  	
  N.A.

  
	
   

  	
  (c)(1)

  	
   

  	
   

  	
  102

  
	
   

  	
  (c)(2)

  	
   

  	
   

  	
  102

  
	
   

  	
  (c)(3)

  	
   

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
   

  	
  N.A.

  
	
   

  	
  (e)

  	
   

  	
   

  	
  101

  
	
   

  	
  (f)

  	
   

  	
   

  	
  N.A.

  
	
  315

  	
  (a)

  	
   

  	
   

  	
  601

  
	
   

  	
  (b)

  	
   

  	
   

  	
  602

  
	
   

  	
  (c)

  	
   

  	
   

  	
  503

  
	
   

  	
  (d)

  	
   

  	
   

  	
  601

  
	
   

  	
  (e)

  	
   

  	
   

  	
  515

  
	
  316

  	
  (a)(1)(A)

  	
   

  	
   

  	
  502, 512

  
	
   

  	
  (a)(1)(B)

  	
   

  	
   

  	
  513

  
	
   

  	
  (a)(2)

  	
   

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
   

  	
  508

  
	
   

  	
  (c)

  	
   

  	
   

  	
  N.A.

  
	
  317

  	
  (a)(1)

  	
   

  	
   

  	
  503

  
	
   

  	
  (a)(2)

  	
   

  	
   

  	
  504

  
	
   

  	
  (b)

  	
   

  	
   

  	
  1003

  
	
  318

  	
  (a)

  	
   

  	
   

  	
  108

  

 

N.A. means not applicable.

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

 

2

 

TABLE OF CONTENTS

 

 

	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  ARTICLE ONE

  
	
   

  
	
  DEFINITIONS AND OTHER
  PROVISIONS OF GENERAL APPLICATION

  
	
   

  	
   

  	
   

  
	
  Section 101.

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section 102.

  	
  Compliance
  Certificates and Opinions

  	
  12

  
	
   

  	
   

  	
   

  
	
  Section 103.

  	
  Form of
  Documents Delivered to Trustee

  	
  13

  
	
   

  	
   

  	
   

  
	
  Section 104.

  	
  Acts
  of Holders

  	
  13

  
	
   

  	
   

  	
   

  
	
  Section 105.

  	
  Notices,
  etc, to Trustee and Company

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section 106.

  	
  Notice
  to Holders of Securities; Waiver

  	
  16

  
	
   

  	
   

  	
   

  
	
  Section 107.

  	
  Language
  of Notices

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 108.

  	
  Conflict
  with Trust Indenture Act

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 109.

  	
  Effect
  of Headings and Table of Contents

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 110.

  	
  Successors
  and Assigns

  	
  18

  
	
   

  	
   

  	
   

  
	
  Section 111.

  	
  Separability
  Clause

  	
  18

  
	
   

  	
   

  	
   

  
	
  Section 112.

  	
  Benefits
  of Indenture

  	
  18

  
	
   

  	
   

  	
   

  
	
  Section 113.

  	
  Governing
  Law

  	
  18

  
	
   

  	
   

  	
   

  
	
  Section 114.

  	
  Legal
  Holidays

  	
  18

  
	
   

  	
   

  	
   

  
	
  Section 115.

  	
  Counterparts

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 116.

  	
  Judgment
  Currency

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 117.

  	
  Extension
  of Payment Dates

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 118.

  	
  Immunity
  of Shareholders, Directors, Officers and Agents of the Company

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 119.

  	
  Force
  Majeure

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 120.

  	
  Patriot Act

  	
  21

  
				

 

ARTICLE TWO

 

SECURITIES FORMS

 

	
  Section 201.

  	
  Forms
  Generally

  	
  21

  

 

i

 

	
  Section 202.

  	
  Form of
  Trustee’s Certificate of Authentication

  	
  21

  
	
   

  	
   

  	
   

  
	
  Section 203.

  	
  Securities
  in Global Form

  	
  22

  

 

ARTICLE THREE

 

THE SECURITIES

 

	
  Section 301.

  	
  Amount
  Unlimited; Issuable in Series

  	
  23

  
	
   

  	
   

  	
   

  
	
  Section 302.

  	
  Currency;
  Denominations

  	
  28

  
	
   

  	
   

  	
   

  
	
  Section 303.

  	
  Execution,
  Authentication, Delivery and Dating

  	
  28

  
	
   

  	
   

  	
   

  
	
  Section 304.

  	
  Temporary
  Securities

  	
  30

  
	
   

  	
   

  	
   

  
	
  Section 305.

  	
  Registration,
  Transfer and Exchange

  	
  31

  
	
   

  	
   

  	
   

  
	
  Section 306.

  	
  Mutilated,
  Destroyed, Lost and Stolen Securities

  	
  36

  
	
   

  	
   

  	
   

  
	
  Section 307.

  	
  Payment
  of Interest and Certain Additional Amounts; Rights to Interest and Certain
  Additional Amounts Preserved

  	
  37

  
	
   

  	
   

  	
   

  
	
  Section 308.

  	
  Persons
  Deemed Owners

  	
  39

  
	
   

  	
   

  	
   

  
	
  Section 309.

  	
  Cancellation

  	
  40

  
	
   

  	
   

  	
   

  
	
  Section 310.

  	
  Computation
  of Interest

  	
  40

  

 

ARTICLE FOUR

 

SATISFACTION AND DISCHARGE OF INDENTURE

 

	
  Section 401.

  	
  Satisfaction
  and Discharge

  	
  40

  
	
   

  	
   

  	
   

  
	
  Section 402.

  	
  Defeasance
  and Covenant Defeasance

  	
  43

  
	
   

  	
   

  	
   

  
	
  Section 403.

  	
  Application
  of Trust Money

  	
  48

  
	
   

  	
   

  	
   

  
	
  Section 404.

  	
  Reinstatement

  	
  48

  

ARTICLE FIVE

 

REMEDIES

 

	
  Section 501.

  	
  Events
  of Default

  	
  49

  
	
   

  	
   

  	
   

  
	
  Section 502.

  	
  Acceleration
  of Maturity; Rescission and Annulment

  	
  51

  
	
   

  	
   

  	
   

  
	
  Section 503.

  	
  Collection
  of Indebtedness and Suits for Enforcement by Trustee

  	
  53

  
	
   

  	
   

  	
   

  
	
  Section 504.

  	
  Trustee
  May File Proofs of Claim

  	
  54

  

 

ii

 

	
  Section 505.

  	
  Trustee
  May Enforce Claims without Possession of Securities or Coupons

  	
  55

  
	
   

  	
   

  	
   

  
	
  Section 506.

  	
  Application
  of Money Collected

  	
  55

  
	
   

  	
   

  	
   

  
	
  Section 507.

  	
  Limitations
  on Suits

  	
  56

  
	
   

  	
   

  	
   

  
	
  Section 508.

  	
  Unconditional
  Right of Holders to Receive Principal and any Premium, Interest and
  Additional Amounts

  	
  56

  
	
   

  	
   

  	
   

  
	
  Section 509.

  	
  Restoration
  of Rights and Remedies

  	
  57

  
	
   

  	
   

  	
   

  
	
  Section 510.

  	
  Rights
  and Remedies Cumulative

  	
  57

  
	
   

  	
   

  	
   

  
	
  Section 511.

  	
  Delay
  or Omission Not Waiver

  	
  57

  
	
   

  	
   

  	
   

  
	
  Section 512.

  	
  Control
  by Holders of Securities

  	
  58

  
	
   

  	
   

  	
   

  
	
  Section 513.

  	
  Waiver
  of Past Defaults

  	
  58

  
	
   

  	
   

  	
   

  
	
  Section 514.

  	
  Waiver
  of Usury, Stay or Extension Laws

  	
  59

  
	
   

  	
   

  	
   

  
	
  Section 515.

  	
  Undertaking
  for Costs

  	
  59

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIX

  
	
   

  	
   

  	
   

  
	
  THE TRUSTEE

  
	
   

  	
   

  	
   

  
	
  Section 601.

  	
  Certain
  Rights of Trustee

  	
  60

  
	
   

  	
   

  	
   

  
	
  Section 602.

  	
  Notice
  of Defaults

  	
  61

  
	
   

  	
   

  	
   

  
	
  Section 603.

  	
  Not
  Responsible for Recitals or Issuance of Securities

  	
  61

  
	
   

  	
   

  	
   

  
	
  Section 604.

  	
  May Hold
  Securities

  	
  62

  
	
   

  	
   

  	
   

  
	
  Section 605.

  	
  Money
  Held in Trust

  	
  62

  
	
   

  	
   

  	
   

  
	
  Section 606.

  	
  Compensation
  and Reimbursement

  	
  62

  
	
   

  	
   

  	
   

  
	
  Section 607.

  	
  Corporate
  Trustee Required; Eligibility

  	
  63

  
	
   

  	
   

  	
   

  
	
  Section 608.

  	
  Resignation
  and Removal; Appointment of Successor

  	
  64

  
	
   

  	
   

  	
   

  
	
  Section 609.

  	
  Acceptance
  of Appointment by Successor

  	
  65

  
	
   

  	
   

  	
   

  
	
  Section 610.

  	
  Merger,
  Conversion, Consolidation or Succession to Business

  	
  67

  
	
   

  	
   

  	
   

  
	
  Section 611.

  	
  Appointment
  of Authenticating Agent

  	
  67

  
	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN

  
	
   

  	
   

  	
   

  
	
  HOLDERS
  LISTS AND REPORTS BY TRUSTEE AND COMPANY

  
	
   

  	
   

  	
   

  
	
  Section 701.

  	
  Company to Furnish Trustee
  Names and Addresses of Holders

  	
  69

  
	
   

  	
   

  	
   

  
	
  Section 702.

  	
  Preservation of
  Information; Communications to Holders

  	
  70

  

 

iii

 

	
  Section 703.

  	
  Reports
  by Trustee

  	
  70

  
	
   

  	
   

  	
   

  
	
  Section 704.

  	
  Reports
  by Company

  	
  70

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT

  
	
   

  	
   

  	
   

  
	
  CONSOLIDATION, MERGER AND
  SALES

  
	
   

  	
   

  	
   

  
	
  Section 801.

  	
  Company
  May Consolidate, Etc,

  	
  71

  
	
   

  	
   

  	
   

  
	
  Section 802.

  	
  Successor
  Person Substituted for Company

  	
  72

  
	
   

  	
   

  	
   

  
	
  ARTICLE NINE

  
	
   

  	
   

  	
   

  
	
  SUPPLEMENTAL INDENTURES

  
	
   

  	
   

  	
   

  
	
  Section 901.

  	
  Supplemental
  Indentures without Consent of Holders

  	
  72

  
	
   

  	
   

  	
   

  
	
  Section 902.

  	
  Supplemental
  Indentures with Consent of Holders

  	
  75

  
	
   

  	
   

  	
   

  
	
  Section 903.

  	
  Execution
  of Supplemental Indentures

  	
  76

  
	
   

  	
   

  	
   

  
	
  Section 904.

  	
  Effect
  of Supplemental Indentures

  	
  77

  
	
   

  	
   

  	
   

  
	
  Section 905.

  	
  Reference
  in Securities to Supplemental Indentures

  	
  77

  
	
   

  	
   

  	
   

  
	
  Section 906.

  	
  Conformity
  with Trust Indenture Act

  	
  77

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN

  
	
   

  	
   

  	
   

  
	
  COVENANTS

  
	
   

  	
   

  	
   

  
	
  Section 1001.

  	
  Payment
  of Principal, Premium, Interest and Additional Amounts

  	
  77

  
	
   

  	
   

  	
   

  
	
  Section 1002.

  	
  Maintenance
  of Office or Agency

  	
  77

  
	
   

  	
   

  	
   

  
	
  Section 1003.

  	
  Money
  for Securities Payments to Be Held in Trust

  	
  79

  
	
   

  	
   

  	
   

  
	
  Section 1004.

  	
  Additional
  Amounts

  	
  81

  
	
   

  	
   

  	
   

  
	
  Section 1005.

  	
  Legal
  Existence

  	
  81

  
	
   

  	
   

  	
   

  
	
  Section 1006.

  	
  Waiver
  of Certain Covenants

  	
  81

  
	
   

  	
   

  	
   

  
	
  Section 1007.

  	
  Company
  Statement as to Compliance

  	
  82

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  ELEVEN

  
	
   

  	
   

  	
   

  
	
  REDEMPTION
  OF SECURITIES

  
	
   

  	
   

  	
   

  
	
  Section 1101.

  	
  Applicability
  of Article

  	
  82

  

 

iv

 

	
  Section 1102.

  	
  Election
  to Redeem; Notice to Trustee

  	
  82

  
	
   

  	
   

  	
   

  
	
  Section 1103.

  	
  Selection
  by Trustee of Securities to be Redeemed

  	
  83

  
	
   

  	
   

  	
   

  
	
  Section 1104.

  	
  Notice
  of Redemption

  	
  83

  
	
   

  	
   

  	
   

  
	
  Section 1105.

  	
  Deposit
  of Redemption Price

  	
  85

  
	
   

  	
   

  	
   

  
	
  Section 1106.

  	
  Securities
  Payable on Redemption Date

  	
  86

  
	
   

  	
   

  	
   

  
	
  Section 1107.

  	
  Securities
  Redeemed in Part

  	
  87

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE

  
	
   

  	
   

  	
   

  
	
  SINKING FUNDS

  
	
   

  	
   

  	
   

  
	
  Section 1201.

  	
  Applicability
  of Article

  	
  87

  
	
   

  	
   

  	
   

  
	
  Section 1202.

  	
  Satisfaction
  of Sinking Fund Payments with Securities

  	
  88

  
	
   

  	
   

  	
   

  
	
  Section 1203.

  	
  Redemption
  of Securities for Sinking Fund

  	
  88

  
	
   

  	
   

  	
   

  
	
  ARTICLE THIRTEEN

  
	
   

  	
   

  	
   

  
	
  REPAYMENT AT THE OPTION OF
  HOLDERS

  
	
   

  	
   

  	
   

  
	
  Section 1301.

  	
  Applicability
  of Article

  	
  89

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOURTEEN

  
	
   

  	
   

  	
   

  
	
  SECURITIES IN FOREIGN
  CURRENCIES

  
	
   

  	
   

  	
   

  
	
  Section 1401.

  	
  Applicability
  of Article

  	
  89

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIFTEEN

  
	
   

  	
   

  	
   

  
	
  MEETINGS OF HOLDERS OF
  SECURITIES

  
	
   

  	
   

  	
   

  
	
  Section 1501.

  	
  Purposes
  for Which Meetings May Be Called

  	
  90

  
	
   

  	
   

  	
   

  
	
  Section 1502.

  	
  Call,
  Notice and Place of Meetings

  	
  90

  
	
   

  	
   

  	
   

  
	
  Section 1503.

  	
  Persons Entitled to Vote
  at Meetings

  	
  91

  
	
   

  	
   

  	
   

  
	
  Section 1504.

  	
  Quorum; Action

  	
  91

  
	
   

  	
   

  	
   

  
	
  Section 1505.

  	
  Determination of Voting
  Rights; Conduct and Adjournment of Meetings

  	
  92

  
	
   

  	
   

  	
   

  
	
  Section 1506.

  	
  Counting Votes and
  Recording Action of Meetings

  	
  93

  

 

v

 

	
  ARTICLE SIXTEEN

  
	
   

  	
   

  	
   

  
	
  SECURITY

  
	
   

  	
   

  	
   

  
	
  Section 1601.

  	
  Security

  	
  94

  

 

vi

 

INDENTURE, dated as of January 15, 2010 (this
“Indenture”), between KKR Financial Holdings LLC, a limited liability company
duly organized and existing under the laws of the State of Delaware
(hereinafter called the “Company”), having its principal executive office
located at 555 California Street, San Francisco, California 94104 and Wells
Fargo Bank, National Association, a national banking association duly organized
and existing under the laws of the United States of America (hereinafter called
the “Trustee”).

 

RECITALS

 

The Company has duly authorized the execution and
delivery of this Indenture to provide for the issuance from time to time of
senior unsecured and secured debentures, notes or other evidences of
indebtedness (hereinafter called the “Securities”), unlimited as to principal
amount, to bear such rates of interest, to mature at such time or times, to be
issued in one or more series and to have such other provisions as shall be
fixed as hereinafter provided.

 

The Company has duly authorized the execution and
delivery of this Indenture. All things necessary to make this Indenture a valid
agreement of the Company, in accordance with its terms, have been done.

 

This Indenture is subject to the provisions of the
Trust Indenture Act of 1939, as amended, and the rules and regulations of
the Securities and Exchange Commission promulgated thereunder that are required
to be part of this Indenture and, to the extent applicable, shall be governed
by such provisions.

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

For and in consideration of the premises and the
purchase of the Securities by the Holders (as herein defined) thereof, it is
mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Securities or of any series thereof and any Coupons (as herein
defined) as follows:

 

ARTICLE ONE

 

DEFINITIONS AND OTHER
PROVISIONS OF GENERAL APPLICATION

 

Section 101.                                                                            Definitions.

 

Except as otherwise expressly provided in or
pursuant to this Indenture or unless the context otherwise requires, for all
purposes of this Indenture:

 

(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;

 

1

 

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

 

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

 

(4)                                  the words
“herein”, “hereof”, “hereto” 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;

 

(5)                                  the word
“or” is always used inclusively (for example, the phrase “A or B” means “A or B
or both”, not “either A or B but not both”);

 

(6)                                  provisions
apply to successive events and transactions;

 

(7)                                  the term
“merger” includes a statutory share exchange and the terms “merge” and “merged”
have correlative meanings;

 

(8)                                  the
masculine gender includes the feminine and the neuter; and

 

(9)                                  references
to agreements and other instruments include subsequent amendments and
supplements thereto.

 

Certain terms used principally in certain Articles
hereof are defined in those Articles.

 

Except as otherwise expressly provided in or
pursuant to this Indenture or the context otherwise requires, for all purposes
of this Indenture, references to the conversion or exchange of any Securities
for or into other securities (other than Securities of the same series) or
property shall not include the exchange of Securities of any series for other
Securities of the same series.

 

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

 

“Additional Amounts” means any additional amounts
which are required by this Indenture or by any Security, or by the terms of any
Security established pursuant to Section 301, under circumstances
specified herein or therein, to be paid by the Company in respect of certain
taxes, duties, levies, imposts, assessments or other governmental charges
imposed on Holders specified herein or therein.

 

“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 

 

2

 

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 to act on behalf of the Trustee to
authenticate Securities of one or more series.

 

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

 

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

 

“Bearer Security” means any Security in the form
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 generally or
in any particular respect for the Company hereunder. The term “board of
directors” means the board of directors of the Company and does not include
committees of the board of directors.

 

“Board Resolution” means a copy of one or more
resolutions, 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, delivered to the Trustee.

 

“Business Day” means, unless otherwise specified
with respect to the Securities of any series pursuant to Section 301, any
day other than a Saturday, Sunday or other day on which trust companies or
banking institutions in The City of New York are authorized or obligated by
law, regulation or executive order to close; provided that such term shall
mean, when used with respect to any payment of principal of, or premium or
interest, if any, on, or Additional Amounts with respect to, the Securities of
any series to be made at any Place of Payment for such Securities, unless
otherwise specified pursuant to Section 301 with respect to such
Securities, any day other than a Saturday, Sunday or other day on which trust 

 

3

 

companies or banking institutions in such
Place of Payment are authorized or obligated by law, regulation or executive
order to close.

 

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

 

“Common Shares” means the common shares of the
Company as such common shares exist on the date of this Indenture or shares of
any class or classes resulting from any reclassification or reclassifications
thereof and which have no preference in respect of dividends or similar
distributions or of amounts payable in the event of any voluntary or
involuntary liquidation, dissolution or winding up of the Company and which are
not subject to redemption by the Company; provided that,
solely in the case of any Securities that are convertible into Common Shares,
unless otherwise provided pursuant to Section 301 with respect to the
Securities of such series, if at any time there shall be more than one such
resulting class, the shares of each such class then so issuable on conversion
of such Securities shall be substantially in the proportion which the total
number of shares of such class resulting from all such reclassifications bears
to the total number of shares of all such classes resulting from all such
reclassifications.

 

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

 

“Company Request” and “Company Order” mean,
respectively, a written request or order, as the case may be, signed in the
name of the Company by the Chairman, the Chief Executive Officer, the
President, the Chief Financial Officer 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.

 

“Conversion Event” means (i) with respect to
any Foreign Currency other than the Euro, the cessation of use of such Foreign
Currency both by the government of the country or the confederation which
issued such Foreign Currency and for the settlement of transactions by a
central bank or other public institutions of or within the international
banking community or (ii) in the case of the Euro, the cessation of use of
the Euro both within the European Monetary System and for the settlement of
transactions by public institutions of or within the European Union.

 

“Corporate Trust Office” means the principal
corporate trust office of the Trustee at which at any particular time its
corporate trust business shall be administered, which office at the date of
this Indenture is located at 707 Wilshire 

 

4

 

Blvd., 17th Floor, Los
Angeles, California 90017, Attention: Corporate Trust and Escrow Services.

 

The term “Corporation” includes corporations,
partnerships, associations, limited liability companies and other companies,
and business trusts. The term “corporation” means a corporation and does not
include partnerships, associations, limited liability companies or other
companies or business trusts.

 

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

 

“Currency”, with respect to any payment, deposit or
other transfer in respect of the principal of or any premium or interest on or
any Additional Amounts with respect to any Security, means Dollars or the
Foreign Currency, as the case may be, in which such payment, deposit or other
transfer is required to be made by or pursuant to the terms hereof or such
Security and, with respect to any other payment, deposit or transfer pursuant
to or contemplated by the terms hereof or such Security, means Dollars.

 

“CUSIP number” means the alphanumeric designation
assigned to a Security by Standard & Poor’s, CUSIP Service Bureau.

 

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

 

“Depository” means, with respect to any Security
issuable or issued in the form of one or more global Securities, the Person
designated as depository by the Company in or pursuant to this Indenture, and,
unless otherwise provided with respect to any Security, any successor to such
Person. If at any time there is more than one such Person, “Depository” shall
mean, with respect to any Securities, the depository which has been appointed
with respect to such Securities.

 

“Dollars” or “$” means a dollar or other equivalent
unit of legal tender for payment of public or private debts in the United
States of America.

 

“Euro” means the currency introduced at the start of
the third stage of European economic and monetary union pursuant to the Treaty
establishing European Community, as amended by the Treaty on European Union.

 

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

 

“European Union” means the participating member
states that adopt a single currency in accordance with the Treaty establishing
the European Community, as amended by the Treaty on European Union.

 

“Event of Default” has the meaning specified in Section 501.

 

5

 

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

 

“Foreign Currency” means any currency, currency unit
or composite currency, including, without limitation, the Euro, 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 government.

 

“GAAP” and “generally accepted accounting
principles” mean, unless otherwise specified with respect to any series of Securities
pursuant to Section 301, such accounting principles as are generally
accepted in the United States of America as of the date or time of any
computation required hereunder.

 

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

 

“Holder”, in the case of any Registered Security,
means the Person in whose name such Security is registered in the Security
Register and, in the case of any Bearer Security, means the bearer thereof and,
in the case of any Coupon, means the bearer thereof.

 

“Indenture” means this instrument as originally
executed or as it may from time to time be supplemented or amended by one or
more indentures supplemental hereto entered into pursuant to the applicable
provisions hereof and, with respect to any Security, by the terms and
provisions of such Security and any 

 

6

 

Coupon appertaining thereto established
pursuant to Section 301 (as such terms and provisions may be amended
pursuant to the applicable provisions hereof), 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 from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof and
shall include the terms of those particular series of Securities for which such
Person is Trustee established pursuant to Section 301, exclusive, however,
of any provisions or terms which relate solely to other series of Securities
for which such Person is not Trustee, regardless of when such terms or
provisions were adopted.

 

“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”, with respect to any Original Issue
Discount Security which by its terms bears interest only after Maturity, means
interest payable after Maturity.

 

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

 

“Judgment Currency” has the meaning specified in Section 116.

 

“Maturity”, with respect to any Security, means the
date on which the principal of such Security or an installment of principal
becomes due and payable as provided in or pursuant to this Indenture or such
Security, whether at the Stated Maturity or by declaration of acceleration,
upon redemption at the option of the Company, upon repurchase or repayment at
the option of the Holder or otherwise, and includes a Redemption Date for such
Security and a date fixed for the repurchase or repayment of such Security at
the option of the Holder.

 

“New York Banking Day” has the meaning specified in Section 116.

 

“Non-recourse Debt” means any indebtedness the terms
of which provide that the claim for repayment of such indebtedness by the
holder thereof is limited solely to a claim against the property or assets
(including, without limitation, securities or interests in securities) that
secure such indebtedness; provided, however, that any obligations or
liabilities of the debtor or obligor or any other person solely for
indemnities, covenants or breaches of warranties, representations or covenants
or similar matters in respect of any indebtedness will not prevent such
indebtedness from constituting Non-recourse Debt.

 

7

 

“Office” or “Agency”, with respect to any
Securities, means an office or agency of the Company maintained or designated
in a Place of Payment for such Securities pursuant to Section 1002 or any
other office or agency of the Company maintained or designated for such
Securities pursuant to Section 1002 or, to the extent designated or
required by Section 1002 in lieu of such office or agency, the Corporate
Trust Office of the Trustee.

 

“Officers’ Certificate” means a certificate signed
by the Chairman, the Chief Executive Officer, the President, the Chief
Financial Officer or a Vice President and by the Treasurer, an Assistant
Treasurer, the Secretary or an Assistant Secretary of the Company, that
complies with the requirements of Section 314(e) of the Trust
Indenture Act and is delivered to the Trustee.

 

“Opinion of Counsel” means a written opinion of
counsel, who may be an employee of or counsel for the Company or other counsel
who shall be reasonably acceptable to the Trustee, that, if required by the
Trust Indenture Act, complies with the requirements of Section 314(e) of
the Trust Indenture Act.

 

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

 

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

 

(a)                                  any such
Security theretofore cancelled by the Trustee or the Security Registrar or
delivered to the Trustee or the Security Registrar for cancellation;

 

(b)                                 any such
Security for whose payment at the Maturity thereof money in the necessary
amount (or, to the extent that such Security is payable at such Maturity in
Common Shares or other securities or property, Common Shares or such other
securities or property in the necessary amount, together with, if applicable,
cash in lieu of fractional shares or securities) has been theretofore deposited
pursuant hereto (other than pursuant to Section 402) 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 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;

 

8

 

(c)                                  any such
Security with respect to which the Company has effected defeasance or covenant
defeasance pursuant to Section 402, except to the extent provided in Section 402;

 

(d)                                 any such
Security which has 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, unless there shall have been presented to the
Trustee proof satisfactory to it that such Security is held by a bona fide
purchaser in whose hands such Security is a valid obligation of the Company;
and

 

(e)                                  any such
Security converted or exchanged as contemplated by this Indenture into Common
Shares or other securities or property, if the terms of such Security provide
for such conversion or exchange pursuant to Section 301;

 

provided, however, that in determining whether the Holders of the
requisite principal amount of Outstanding Securities have given any request,
demand, authorization, direction, notice, consent or waiver hereunder or are
present at a meeting of Holders of Securities for quorum purposes, (i) the
principal amount of an Original Issue Discount Security that may be counted in
making such determination and that shall be deemed to be Outstanding for such
purposes shall be equal to the amount of the principal thereof that pursuant to
the terms of such Original Issue Discount Security would be declared (or shall
have been declared to be) due and payable upon a declaration of acceleration
thereof pursuant to Section 502 at the time of such determination, and (ii) the
principal amount of any Indexed Security that may be counted in making such
determination 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 in or pursuant to this Indenture, and (iii) the
principal amount of a Security denominated in a Foreign Currency that may be
counted in making such determination and that shall be deemed Outstanding for
such purposes shall be the Dollar equivalent, determined on the date of original
issuance of such Security, of the principal amount (or, in the case of an
Original Issue Discount Security, the Dollar equivalent on the date of original
issuance of such Security of the amount determined as provided in (i) above)
of such Security, and (iv) Securities owned by the Company or any other
obligor upon the Securities, or any Affiliate of the Company or such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in making any such
determination or relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Securities which a Responsible
Officer of the Trustee knows to be so owned shall be so disregarded. Securities
so owned which shall have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the satisfaction of the Trustee (A) the
pledgee’s right so to act with respect to such Securities and (B) that the
pledgee is not the Company or any other obligor upon the Securities or any
Coupons 

 

9

 

appertaining thereto or an Affiliate (other
than a Trust) of the Company or such other obligor.

 

“Patriot Act” means the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001, Pub. L. 107-56, as amended, and signed into law
October 26, 2001.

 

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

 

“Person” and “person” mean any individual,
corporation, joint venture, joint-stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof.

 

“Place of Payment”, with respect to any Security,
means the place or places where the principal of, or any premium or interest
on, or any Additional Amounts with respect to such Security are payable as
provided in or pursuant to this Indenture or such Security.

 

“Predecessor Security” of any particular Security
means every previous Security evidencing all or a portion of the same
indebtedness 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 lost, destroyed, mutilated or stolen Security
or any Security to which a mutilated, destroyed, lost or stolen Coupon
appertains shall be deemed to evidence the same indebtedness as the lost,
destroyed, mutilated or stolen Security or the Security to which a mutilated,
destroyed, lost or stolen Coupon appertains.

 

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

 

“Redemption Price”, with respect to any Security or
portion thereof to be redeemed, means the price at which it is to be redeemed
as determined by or pursuant to this Indenture or such Security.

 

“Registered Security” means any Security established
pursuant to Section 201 which is registered in the Security Register.

 

“Regular Record Date” for the interest payable on
any Registered Security on any Interest Payment Date therefor means the date,
if any, specified in or pursuant to this Indenture or such Security as the
record date for the payment of such interest.

 

“Required Currency” has the meaning specified in Section 116.

 

10

 

 

“Responsible Officer” means any officer of the
Trustee in its Corporate Trust Office having direct responsibility for matters
pertaining to this Indenture and also means, with respect to a particular
corporate trust matter, any other officer or employee of the Trustee to whom
such matter is referred because of his or her knowledge of and familiarity with
the particular subject.

 

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

 

“Security” or “Securities” means any note or notes,
bond or bonds, debenture or debentures, or any other evidences of indebtedness,
as the case may be, 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 any such Person, shall 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, as of any date of
determination, a Subsidiary of the Company that would constitute a “significant
subsidiary,” as such term is defined under Rule 1-02(w) of Regulation
S-X of the Commission as in effect on the date of this Indenture.

 

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

 

“Stated Maturity”, with respect to any Security or
any installment of principal thereof or interest thereon or any Additional
Amounts with respect thereto, means the date established by or pursuant to this
Indenture or such Security as the fixed date on which the principal of such
Security or such installment of principal or interest is, or such Additional
Amounts are, due and payable.

 

“Subsidiary” of any Person means (a) any
corporation, association or other business entity (other than a partnership,
joint venture, limited liability company or similar entity) of which more than
50% of the total ordinary voting power of shares of capital stock entitled
(without regard to the occurrence of any contingency) to vote in the election
of directors, managers or trustees thereof (or persons performing similar
functions) or (b) any partnership, joint venture, limited liability
company or similar entity of which more than 50% of the capital accounts,
distribution rights, total equity and voting interests or general or limited
partnership interests, as applicable, that is, in the case of clauses (a) and
(b), at the time owned or controlled, directly or indirectly, by (1) such
Person, (2) such

 

11

 

Person and one or more Subsidiaries of such
Person or (3) one or more Subsidiaries of such Person.

 

“Trust Indenture Act” means the Trust Indenture Act
of 1939, as amended, and any reference herein to the Trust Indenture Act or a
particular provision thereof shall mean such Act or provision, as the case may
be, as amended or replaced from time to time or as supplemented from time to
time by rules or regulations adopted by the Commission under or in
furtherance of the purposes of such Act or provision, as the case may be.

 

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

 

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

 

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

 

“Vice President”, when used with respect to the
Company or the Trustee, means any vice president, whether or not designated by
a number or a word or words added before or after the title “Vice President”.

 

Section 102.                                                                            Compliance
Certificates and Opinions.

 

Except as otherwise expressly provided in or
pursuant to this Indenture, 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

 

12

 

any such application or request as to which
the furnishing of such documents or any of them is specifically required by any
provision of this Indenture relating to such particular application or request,
no additional certificate or opinion need be furnished.

 

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, unless such officer knows, or in the exercise of reasonable care
should know, that the opinion with respect to the matters upon which his
certificate or opinion is based is erroneous. Any such Opinion of Counsel may
be based, insofar as it relates to factual matters, upon a certificate or
opinion of, or representations by, an officer or officers of the Company, a
governmental official or officers or any other Person or Persons stating that
the information with respect 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, 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 or any Security, they may,
but need not, be consolidated and form one instrument.

 

Section 104.                                                                            Acts of
Holders.

 

(1)                                  Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by or pursuant to this Indenture to be made, given or taken by
Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by an agent
duly appointed in writing. If, but only if, Securities of a series are issuable
as Bearer Securities, any request, demand, authorization, direction, notice,
consent, waiver or other action provided in or pursuant to this Indenture to be
made, 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

 

13

 

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 (subject to Section 315 of the Trust Indenture Act)
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.

 

Without limiting the generality of this Section 104,
unless otherwise provided in or pursuant to this Indenture, a Holder, including
a Depository that is a Holder of a global Security, may make, give or take, by
a proxy or proxies, duly appointed in writing, any request, demand,
authorization, direction, notice, consent, waiver or other Act provided in or
pursuant to this Indenture or the Securities to be made, given or taken by
Holders, and a Depository that is a Holder of a global Security may provide its
proxy or proxies to the beneficial owners of interests in any such global
Security through such Depository’s standing instructions and customary
practices.

 

(2)                                  The fact
and date of the execution by any Person of any such instrument or writing may
be proved in any reasonable manner which the Trustee deems sufficient and in
accordance with such reasonable rules as the Trustee may determine; and
the Trustee may in any instance require further proof with respect to any of
the matters referred to in this Section.

 

(3)                                  The
ownership, principal amount and serial numbers of Registered Securities held by
any Person, and the date of the commencement and the date of the termination of
holding the same, shall be proved by the Security Register.

 

(4)                                  The
ownership, principal amount and serial numbers of Bearer Securities held by any
Person, and the date of the commencement and the date of the termination of
holding the same, may be proved by the production of such Bearer Securities or
by a certificate executed, as depositary, by any trust company, bank, banker or
other depositary reasonably acceptable to the Company, wherever situated, if
such certificate shall be deemed by the Company and the Trustee to be
satisfactory, showing that at the date therein mentioned such Person had on
deposit with such depositary, or exhibited to it, the Bearer Securities therein
described; or such facts may be proved by the certificate or affidavit of the
Person holding such Bearer Securities, if such certificate or affidavit is
deemed by the

 

14

 

Company and 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, principal amount and serial numbers of Bearer Securities held by
the Person so executing such instrument or writing and the date of the
commencement and the date of the termination of holding the same may also be
proved in any other manner which the Company and the Trustee deem sufficient.

 

(5)                                  If the
Company shall solicit from the Holders of any Registered Securities any
request, demand, authorization, direction, notice, consent, waiver or other
Act, the Company may at its option (but is not obligated to), by Board
Resolution fix in advance a record date for the determination of Holders of
Registered Securities entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other Act. 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 Registered Securities of record at the close of business on such
record date shall be deemed to be Holders for the purpose 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 of Registered
Securities shall be deemed effective unless it shall become effective pursuant
to the provisions of this Indenture not later than six months after the record
date.

 

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

 

Section 105.                                                                            Notices,
etc, to Trustee and Company.

 

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

 

15

 

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

 

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

 

Section 106.                                                                            Notice
to Holders of Securities; Waiver.

 

Except as otherwise expressly provided in or
pursuant to this Indenture, where this Indenture provides for notice to Holders
of Securities of any event,

 

(1)                                  such
notice shall be sufficiently given to Holders of Registered Securities if in
writing and mailed, first-class postage prepaid, to each Holder of a Registered
Security affected by such event, at his address as it appears in the Security
Register, not later than the latest date, and not earlier than the earliest
date, prescribed for the giving of such notice; and

 

(2)                                  such
notice shall be sufficiently given to Holders of Bearer Securities, if any, if
published in an Authorized Newspaper in The City of New York and, if such
Securities are then listed on any stock exchange outside the United States, in
an Authorized Newspaper in such city as the Company shall advise the Trustee
that such stock exchange so requires, on a Business Day at least twice, the
first such publication to be not earlier than the earliest date and the second
such publication not later than the latest date 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 of a Registered
Security 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 which is mailed in the
manner herein provided shall be conclusively presumed to have been duly given
or provided. In the case by reason of the suspension of regular mail service or
by reason of any other cause it shall be impracticable to give such notice by
mail, then such notification as shall be made with the approval of the Trustee
shall constitute a sufficient notification for every purpose hereunder.

 

In case by reason of the suspension of publication
of any Authorized Newspaper or Authorized Newspapers or by reason of any other
cause it shall be impracticable to publish any notice to Holders of Bearer
Securities as provided 

 

16

 

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 failure to give notice by publication to Holders of Bearer Securities
as provided above, nor any defect in any notice so published, shall affect the
sufficiency of any notice mailed to Holders of Registered Securities as
provided above.

 

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 of Securities 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.

 

Anything herein to the contrary notwithstanding,
unless otherwise expressly stated in this Indenture or pursuant to Section 301
with respect to the Securities of any series, if a Depository or its nominee is
the Holder of any Security, then any notice given to such Depository or its
nominee, as the case may be, in respect of such Security may be given by the
Company or the Trustee electronically in accordance with the procedures of such
Depository as in effect from time to time in lieu of giving notice to such
Depository or such nominee, as the case may be, by mail and all references in
this Indenture to the mailing of any such notice shall be deemed to mean,
solely as concerns the notice given by the Company or the Trustee to such
Depository or its nominee, as the case may be, the electronic transmission of
such notice as aforesaid, mutatis  mutandis.

 

Section 107.                                                                            Language
of Notices.

 

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

 

Section 108.                                                                            Conflict
with Trust Indenture Act.

 

If any provision hereof limits, qualifies or
conflicts with any duties under any required provision of the Trust Indenture
Act imposed hereon by Section 318(c) thereof, such required provision
of the Trust Indenture Act shall control.

 

Section 109.                                                                            Effect
of Headings and Table of Contents.

 

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

 

17

 

Section 110.                                                                            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 111.                                                                            Separability
Clause.

 

In case any provision in this Indenture, any
Security or any Coupon shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not, to
the fullest extent permitted by law, in any way be affected or impaired
thereby.

 

Section 112.                                                                            Benefits
of Indenture.

 

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

 

Section 113.                                                                            Governing
Law.

 

This Indenture, the Securities and any Coupons shall
be governed by and construed in accordance with the laws of the State of New
York applicable to agreements made or instruments entered into and, in each
case, performed in said State.

 

Section 114.                                                                            Legal
Holidays.

 

Unless otherwise specified in or pursuant to this
Indenture or any Securities, in any case where any Interest Payment Date,
Stated Maturity or Maturity of, or any other day on which a payment is due with
respect to, any Security shall be a day which is not a Business Day at any
Place of Payment, then  payment need not
be made at such Place of Payment on such date, but such payment may be made on
the next succeeding day that is a Business Day at such Place of Payment with
the same force and effect as if made on the Interest Payment Date, at the
Stated Maturity or Maturity or on any such other payment date, as the case may
be, and no interest shall accrue on the amount payable on such date or at such
time for the period from and after such Interest Payment Date, Stated Maturity,
Maturity or other payment date, as the case may be, to the next succeeding
Business Day.

 

18

 

Section 115.                                                                            Counterparts.

 

This Indenture may be executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

 

Section 116.                                                                            Judgment
Currency.

 

The Company agrees, to the fullest extent that it
may effectively do so under applicable law, that (a) if for the purpose of
obtaining judgment against it in any court, it is necessary to convert the sum
due in respect of the principal of, or premium or interest, if any, or
Additional Amounts on the Securities of any series (the “Required Currency”)
into a currency in which a judgment will be rendered (the “Judgment Currency”),
the rate of exchange used shall be the rate at which in accordance with normal
banking procedures the Trustee could purchase in The City of New York the
Required Currency with the Judgment Currency on the New York Banking Day
preceding that on which a final unappealable judgment is given and (b) its
obligations under this Indenture to make payments in the Required Currency (i) shall
not be discharged or satisfied by any tender, or any recovery pursuant to any
judgment (whether or not entered in accordance with clause (a)), in any
currency other than the Required Currency, except to the extent that such
tender or recovery shall result in the actual receipt, by the payee, of the
full amount of the Required Currency expressed to be payable in respect of such
payments, (ii) shall be enforceable as an alternative or additional cause
of action for the purpose of recovering in the Required Currency the amount, if
any, by which such actual receipt shall fall short of the full amount of the
Required Currency so expressed to be payable and (iii) shall not be
affected by judgment being obtained for any other sum due under this Indenture.
For purposes of the foregoing, “New York Banking Day” means any day except a
Saturday, Sunday or a legal holiday in The City of New York or a day on which
trust companies or banking institutions in The City of New York are authorized
or obligated by law, regulation or executive order to be closed. The provisions
of this Section 116 shall not be applicable with respect to any payment
due on a Security which is payable in Dollars.

 

Section 117.                                                                            Extension
of Payment Dates.

 

In the event that (i) the terms of any Security
or Coupon appertaining thereto established in or pursuant to this Indenture
permit the Company or any Holder thereof to extend the date on which any
payment of principal of, or premium, if any, or interest, if any, on, or
Additional Amounts, if any, with respect to such Security or Coupon is due and
payable and (ii) the due date for any such payment shall have been so
extended, then all references herein to the Stated Maturity of such payment
(and all references of like import) shall be deemed to refer to the date as so
extended.

 

19

 

Section 118.                                                                            Immunity
of Shareholders, 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, or for any claim based thereon or otherwise in
respect thereof, shall be had against any past, present or future shareholder,
incorporator, employee, officer or director, as such, of the Company or any
predecessor or successor to the Company, either directly or through the Company
or any such predecessor or 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; it being expressly
understood that, without limitation to the foregoing, this Indenture and the
Securities and the obligations created hereunder and thereunder are solely
corporate, limited liability company, partnership, limited partnership or
similar obligations, as the case may be, of the Company and that no such
personal liability whatever shall attach to, or is or shall be incurred by, any
past, present or future shareholder, incorporator, employee, officer or
director, as such, of the Company or any of its predecessors or successors, or
any of them, because of the creation of the indebtedness hereby authorized, or
under or by reason of the obligations, covenants or agreements contained in
this Indenture or in any Security or implied herefrom or therefrom and that any
and all such personal liability of every type and nature, either at common law
or in equity or by constitution or statute, of, and any and all such rights and
claims against, every such past, present or future shareholder, incorporator,
employee, officer or director, as such, because of the creation of the
indebtedness hereby authorized, or under or by reason of the obligations,
covenants or agreements contained in this Indenture or in any Security or
implied herefrom or therefrom, are hereby expressly waived and released as a
condition of, and as a consideration for, the execution of this Indenture and
the issuance of the Securities. As used in this Section 118, all
references to “shareholders” shall be deemed to mean, with respect to any
Person, any past, present or future holder or owner of an equity interest in
such Person, including, without limitation, owners or holders of capital stock,
limited or general partnership interests and limited liability company
interests.

 

Section 119.                                                                            Force
Majeure.

 

In
no event shall the Trustee be responsible or liable for any failure or delay in
the performance of its obligations hereunder arising out of or caused by,
directly or indirectly, forces beyond its control, including, without
limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil
or military disturbances, nuclear or natural catastrophes or acts of God, and
interruptions, loss or malfunctions of utilities, communications or computer
(software and

 

20

 

hardware) services; it being understood that
the Trustee shall use reasonable efforts which are consistent with accepted
practices in the banking industry to resume performance as soon as practicable
under the circumstances.

 

Section 120.                                                                            Patriot
Act.

 

The parties hereto
acknowledge that in accordance with Section 326 of the Patriot Act, the
Trustee, like all financial institutions and in order to help fight the funding
of terrorism and money laundering, is required to obtain, verify, and record
information that identifies each person or legal entity that establishes a
relationship or opens an account with the Trustee.  The parties to this
Indenture agree that they will provide the Trustee with such information as it
may request in order for the Trustee to satisfy the requirements of the Patriot
Act.

 

ARTICLE TWO

 

SECURITIES FORMS

 

Section 201.                                                                            Forms
Generally.

 

Each Registered Security, Bearer Security, Coupon
and temporary or permanent global Security issued pursuant to this Indenture
shall be in the form established by or pursuant to a Board Resolution and set
forth in an Officers’ Certificate, or established in one or more indentures
supplemental hereto, shall have such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by or pursuant
to this Indenture or any indenture supplemental hereto and may have such
letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may, consistently herewith, be determined by any
officer of the Company executing such Security or Coupon as evidenced by the
execution of such Security or Coupon.

 

Unless otherwise provided in or pursuant to this
Indenture or any Securities, the Securities shall be issuable in registered
form without Coupons.

 

Definitive Securities and definitive 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 may be produced
in any other manner, all as determined by the officers of the Company 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:

 

21

 

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

 

	
   

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  

 

Section 203.                                                                            Securities
in Global Form.

 

Unless otherwise provided in or pursuant to this
Indenture or any Securities, the Securities shall not be issuable in global
form. If Securities of a series shall be issuable in temporary or permanent
global form, any such Security may provide that it or any number of such
Securities 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 or reflected on the books and records of the
Trustee and may also provide that the aggregate amount of Outstanding
Securities represented thereby may from time to time be increased or reduced to
reflect exchanges. Any endorsement of any Security in global form to reflect
the amount, or any increase or decrease in the amount, or changes in the rights
of Holders, of Outstanding Securities represented thereby shall be made in such
manner and by such Person or Persons as shall be specified therein or pursuant
to Section 301 with respect to such Security or in the Company Order to be
delivered pursuant to Section 303 or 304 with respect thereto. Subject to
the provisions of Section 303 and, if applicable, Section 304, the
Trustee shall deliver and redeliver any Security in global form in the manner
and upon instructions given by the Person or Persons specified therein or
pursuant to Section 301 with respect to such Security 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 a Security in global form shall be in writing but need not be accompanied by
or contained in an Officers’ Certificate and need not be accompanied by an
Opinion of Counsel. Notwithstanding the foregoing provisions of this paragraph,
in the event a global Security is exchangeable for definitive Securities as
provided in Section 305, then, unless otherwise provided in or pursuant to
this Indenture with respect to the Securities of such series, the Trustee shall
deliver and redeliver such global Security to the extent necessary to effect
such exchanges, shall endorse such global Security to reflect any decrease in
the principal amount thereto resulting

 

22

 

from such exchanges and shall take such other
actions, all as contemplated by Section 305.

 

Notwithstanding the provisions of Section 307,
unless otherwise specified in or pursuant to this Indenture or any Securities,
payment of principal of, any premium and interest on, and any Additional
Amounts in respect of, any Security in temporary or permanent global form shall
be made to the Person or Persons specified therein.

 

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 global Security (i) in
the case of a global Security in registered form, the Holder of such global
Security in registered form, or (ii) in the case of a global Security in
bearer form, the Person or Persons specified pursuant to Section 301.

 

ARTICLE THREE

 

THE SECURITIES

 

Section 301.                                                                            Amount
Unlimited; Issuable in Series.

 

The aggregate principal amount of Securities that
may be authenticated and delivered under this Indenture is unlimited. The
Securities may be issued in one or more series.

 

With respect to any Securities to be authenticated
and delivered hereunder, there shall be established in or pursuant to one or
more Board Resolutions and set forth in an Officers’ Certificate, or
established in one or more indentures supplemental hereto, prior to the
issuance of any Securities of a series,

 

(1)                                  the title
of the Securities of such series;

 

(2)                                  any limit
upon the aggregate principal amount of the Securities of such series which may
be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities of such series pursuant to Section 304,
305, 306, 905 or 1107, upon repayment in part of any Security of such series
pursuant to Article Thirteen or upon surrender in part of any Security for
conversion or exchange into Common Shares or other securities or property
pursuant to its terms), and if such series may not be reopened from time to
time for the issuance of additional Securities of such series;

 

23

 

(3)                                  if such
Securities are to be issuable as Registered Securities, as Bearer Securities or
alternatively as Bearer Securities and Registered Securities, and whether the
Bearer Securities are to be issuable with Coupons, without Coupons or both, and
any restrictions applicable to the offer, sale or delivery of the Bearer
Securities and the terms, if any, upon which Bearer Securities may be exchanged
for Registered Securities and vice versa;

 

(4)                                  if any of
such Securities are to be issuable in global form, when any of such Securities
are to be issuable in global form and (i) whether such Securities are to
be issued in temporary or permanent global form or both, (ii) whether
beneficial owners of interests in any such global Security may exchange such
interests for Securities of the same series and of like tenor and of any
authorized form and denomination, and the circumstances under which any such
exchanges may occur, if other than in the manner specified in Section 305,
(iii) the name of the Depository with respect to any such global Security
and (iv) if applicable and  in
addition to the Persons specified in Section 305, the Person or Persons
who shall be entitled to make any endorsements on any such global Security and
to give the instructions and take the other actions with respect to such global
Security contemplated by the first paragraph of Section 203;

 

(5)                                  if any of
such Securities are to be issuable as Bearer Securities, the date as of which
any such Bearer Security shall be dated (if other than the date of original
issuance of the first of such Securities to be issued);

 

(6)                                  if any of
such Securities are to be issuable as Bearer Securities, whether interest in
respect of any portion of a temporary Bearer Security in global form payable in
respect of an Interest Payment Date therefor prior to the exchange, if any, of
such temporary Bearer Security for definitive Securities shall be paid to any
clearing organization with respect to the portion of such temporary Bearer
Security held for its account and, in such event, the terms and conditions
(including any certification requirements) upon which any such interest payment
received by a clearing organization will be credited to the Persons entitled to
interest payable on such Interest Payment Date;

 

(7)                                  the date
or dates, or the method or methods, if any, by which such date or dates shall
be determined, on which the principal and premium, if any, of such Securities
is payable;

 

(8)                                  the rate
or rates at which such Securities shall bear interest, if any, or the method or
methods, if any, by which such rate or rates are to be determined, the date or
dates, if any, from which such interest shall begin to accrue or the method or
methods, if any, by which such date or dates are to be determined, the Interest
Payment Dates, if any, on which such interest shall be payable and the Regular
Record Date, if any, for the interest payable on Registered Securities on any
Interest Payment Date, the notice, if any, to Holders regarding the
determination

 

24

 

of interest on a floating rate
Security and the manner of giving such notice, and the basis upon which
interest shall be calculated if other than that of a 360-day year of twelve
30-day months;

 

(9)                                  if in
addition to or other than the place where the Corporate Trust Office of the Trustee
may from time to time be located, the place or places where the principal of,
premium, if any, and interest, if any, on, and Additional Amounts, if any, with
respect to, such Securities shall be payable, any of such Securities that are
Registered Securities may be surrendered for registration of transfer or
exchange, any of such Securities may be surrendered for conversion or exchange
and notices or demands to or upon the Company in respect of such Securities and
this Indenture may be served;

 

(10)                            whether
any of such Securities are to be redeemable at the option of the Company and,
if so, the date or dates on which, the period or periods within which, the
price or prices at which and the other terms and conditions upon which such
Securities may be redeemed, in whole or in part, at the option of the Company;

 

(11)                            if the
Company is obligated to redeem or purchase any of such Securities pursuant to
any sinking fund or analogous provision or at the option of any Holder thereof
and, if so, the date or dates on which, the period or periods within which, the
price or prices at which and the other terms and conditions upon which such
Securities shall be redeemed or purchased, in whole or in part, pursuant to
such obligation, and any provisions for the remarketing of such Securities so
redeemed or purchased;

 

(12)                            the
denominations in which any of such Securities that are Registered Securities
shall be issuable if other than denominations of $1,000 and any integral
multiples thereof, and the denominations in which any of such Securities that
are Bearer Securities shall be issuable if other than the denomination of
$5,000;

 

(13)                            whether
the Securities of the series will be convertible into and/or exchangeable for
Common Shares or other securities or property, and if so, the terms and
conditions upon which such Securities will be so convertible or exchangeable,
and any deletions from or modifications or additions to this Indenture to
permit or to facilitate the issuance of such convertible or exchangeable Securities
or the administration thereof;

 

(14)                            if other
than the principal amount thereof, the portion of the principal amount of any
of such Securities that shall be payable upon declaration of acceleration of
the Maturity thereof pursuant to Section 502 or the method by which such
portion is to be determined;

 

25

 

(15)                            if other
than Dollars, the Foreign Currency in which payment of the principal of, any
premium or interest on or any Additional Amounts with respect to any of such
Securities shall be payable;

 

(16)                            if the
principal of, any premium or interest on or any Additional Amounts with respect
to any of such Securities are to be payable, at the election of the Company or
a Holder thereof or otherwise, in Dollars or in a Foreign Currency other than
that in which such Securities are stated to be payable, the date or dates on
which, the period or periods within which, and the other terms and conditions
upon which, such election may be made, and the time and manner of determining
the exchange rate between the Currency in which such Securities are stated to
be payable and the Currency in which such Securities or any of them are to be
paid pursuant to such election, and any deletions from or modifications of or
additions to the terms of this Indenture to provide for or to facilitate the
issuance of Securities denominated or payable, at the election of the Company
or a Holder thereof or otherwise, in a Foreign Currency;

 

(17)                            if the
amount of payments of principal of, any premium or interest on or any
Additional Amounts with respect to such Securities may be determined with
reference to an index, formula or other method or methods (which index, formula
or method or methods may be based, without limitation, on one or more Currencies,
commodities, equity indices or other indices), and, if so, the terms and
conditions upon which and the method by which such amounts shall be determined
and paid or payable;

 

(18)                            any
deletions from, modifications of or additions to the Events of Default or
covenants of the Company with respect to such Securities (whether or not such
Events of Default or covenants are consistent with the Events of Default or
covenants set forth herein), and, if any additional covenants not contained in
this Indenture as of its date shall be applicable with respect to such
Securities, whether Section 1006 shall be applicable with respect to any
such additional covenants;

 

(19)                            if any
one or more of Section 401 relating to satisfaction and discharge, Section 402(2) relating
to defeasance or Section 402(3) relating to covenant defeasance shall
not be applicable to the Securities of such series, and any covenants in
addition to or other than those covenants, if any, specified in Section 402(3) relating
to the Securities of such series which shall be subject to covenant defeasance,
and, if the Securities of such series are subject to repurchase or repayment at
the option of the Holders thereof pursuant to Article Thirteen, if the
Company’s obligation to repurchase or repay such Securities will not be subject
to satisfaction and discharge pursuant to Section 401 or to defeasance
pursuant to Section 402, and, if the Holders of such Securities have the
right to convert or exchange such Securities into Common Shares or other securities
or property, if the right to effect such conversion or exchange will be subject
to satisfaction and discharge pursuant to Section 401 or to defeasance or
covenant defeasance

 

26

 

pursuant to Section 402, and
any deletions from, or modifications or additions to, the provisions of Article Four
in respect of the Securities of such series;

 

(20)                            if any of
such Securities are to be issuable upon the exercise of warrants, and the time,
manner and place for such Securities to be authenticated and delivered;

 

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

 

(22)                            whether
and under what circumstances the Company will pay Additional Amounts on such
Securities to any Holder who is a United States Alien in respect of specified
taxes, assessments or other government charges and, if so, whether the Company
will have the option to redeem such Securities rather than pay such Additional
Amounts;

 

(23)                            if there
is more than one Trustee, the identity of the Trustee and, if not the Trustee,
the identity of each Security Registrar, Paying Agent or Authenticating Agent
with respect to such Securities;

 

(24)                            the
Person to whom any interest on any Registered Security of such series shall be
payable, if other than the Person in whose name the Registered 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 such series shall be payable, if
other 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 will be paid if other than in
the manner provided in this Indenture;

 

(25)                            whether
the Securities of such series are to be secured by any property, assets or
other collateral and, if so, the applicable collateral, any deletions from, or
modifications or additions to, the provisions of Article Sixteen hereof or
any other provisions of this Indenture in connection therewith or in connection
with any other instrument or agreement entered into in connection therewith;
and

 

(26)                            any other
terms of such Securities (whether or not such other terms are consistent or
inconsistent with any other terms of this Indenture) and any deletions from or
modifications or additions to this Indenture in respect of such Securities.

 

27

 

All Securities of any one series and all Coupons, if
any, appertaining to Bearer Securities of such series shall be substantially
identical except as to Currency of payments due thereunder, denomination and
the rate of interest, or method of determining the rate of interest, if any,
Maturity, and the date from which interest, if any, shall accrue and except as
may otherwise be provided by the Company in or pursuant to the Board Resolution
and set forth in the Officers’ Certificate or in any indenture or indentures
supplemental hereto pertaining to such series of Securities. The terms of the
Securities of any series may provide, without limitation, that the Securities
shall be authenticated and delivered by the Trustee on original issue from time
to time upon written or (if acceptable to the Trustee) oral order of persons
designated in the Board Resolution, Officers’ Certificate or supplemental
indenture, as the case may be, pertaining to such series of Securities
(telephonic instructions to be promptly confirmed in writing by such person)
and that such persons are authorized to determine, consistent with such Board
Resolution, Officers’ Certificate or supplemental indenture, such terms and
conditions of the Securities of such series as are specified in such Board
Resolution, Officers’ Certificate or supplemental indenture. All Securities of
any one series need not be issued at the same time and, unless otherwise
provided by the Company as contemplated by this Section 301, a series may
be reopened from time to time without the consent of any Holders for issuances
of additional Securities of such series.

 

If any of the terms of the Securities of any series
shall be established by action taken by or pursuant to one or more Board
Resolutions, such Board Resolutions shall be delivered to the Trustee at or
prior to the delivery of the Officers’ Certificate setting forth the terms of
such series.

 

Section 302.                                                                            Currency;
Denominations.

 

Unless otherwise provided in or pursuant to this
Indenture, the principal of, any premium and interest on and any Additional
Amounts with respect to the Securities shall be payable in Dollars. Unless
otherwise provided in or pursuant to this Indenture, Registered Securities
denominated in Dollars shall be issuable in registered form without Coupons in
denominations of $1,000 and any integral multiples thereof, and the Bearer
Securities denominated in Dollars shall be issuable in the denomination of
$5,000. Securities not denominated in Dollars shall be issuable in such denominations
as are established with respect to such Securities in or pursuant to this
Indenture.

 

Section 303.                                                                            Execution,
Authentication, Delivery and Dating.

 

Securities shall be executed on behalf of the
Company by its Chairman, its Chief Executive Officer, its President or one of
its Vice Presidents and by its Treasurer, one of its Assistant Treasurers, its
Secretary or one of its Assistant Secretaries and may (but need not) have its
corporate or other seal or a facsimile

 

28

 

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

 

Securities and any Coupons appertaining thereto
bearing the manual or facsimile signatures of individuals who were at any time
the proper officers of the Company shall, to the fullest extent permitted by law,
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,
together with any Coupons appertaining thereto, executed by the Company, to the
Trustee for authentication and, provided that the Board Resolution and
Officers’ Certificate or supplemental indenture or indentures with respect to
such Securities referred to in Section 301 and a Company Order for the
authentication and delivery of such Securities have been delivered to the
Trustee, the Trustee in accordance with the Company Order and subject to the
provisions hereof and of such Securities shall authenticate and deliver such
Securities. In authenticating such Securities, and accepting the additional
responsibilities under this Indenture in relation to such Securities and any
Coupons appertaining thereto, the Trustee shall be entitled to receive, and
(subject to the applicable provisions of Sections 315(a) through 315(d) of
the Trust Indenture Act) shall be fully protected in relying upon, an Opinion
of Counsel to the following effect, which Opinion of Counsel may contain such
assumptions, qualifications and limitations as such counsel shall deem
appropriate:

 

(a)                                  the form or
forms and terms of such Securities and Coupons, if any, have been established
in conformity with Sections 201 and 301 of this Indenture; and

 

(b)                                 all conditions
precedent set forth in Sections 201, 301 and 303 of this Indenture to the
authentication and delivery of such Securities and Coupons, if any,
appertaining thereto have been complied with and that such Securities, and
Coupons, when completed by appropriate insertions (if applicable), executed by
duly authorized officers of the Company, delivered by duly authorized officers
of the Company to the Trustee for authentication pursuant to this Indenture,
and authenticated and delivered by the Trustee and issued by the Company in the
manner and subject to any conditions specified in such Opinion of Counsel, will
constitute valid and binding obligations of the Company, enforceable against the
Company in accordance with their terms, except as enforcement thereof may be
subject to or limited by bankruptcy, insolvency, reorganization, moratorium,
arrangement, fraudulent conveyance, fraudulent transfer or other similar laws
relating to or affecting creditors’ rights generally, and subject to general
principles

 

29

 

of equity (regardless of
whether enforcement is sought in a proceeding in equity or at law).

 

If all the Securities of any series are not to be
issued at one time, it shall not be necessary to deliver an Opinion of Counsel
at the time of issuance of each Security, but such opinion, with such
modifications as counsel shall deem appropriate, shall be delivered at or
before the time of issuance of the first Security of such series. After any
such first delivery, any separate request by the Company that the Trustee
authenticate Securities of such series for original issue will be deemed to be
a certification by the Company that all conditions precedent provided for in
this Indenture relating to authentication and delivery of such Securities
continue to have been complied with.

 

The Trustee shall not be required to authenticate or
to cause an Authenticating Agent to authenticate any Securities if the issue of
such Securities pursuant to this Indenture will affect the Trustee’s own
rights, duties or immunities under the Securities and this Indenture or
otherwise in a manner that is not reasonably acceptable to the Trustee or if
the Trustee, being advised by counsel, determines that such action may not
lawfully be taken.

 

Each Registered Security shall be dated the date of
its authentication. Each Bearer Security and any Bearer Security in global form
shall be dated as of the date specified in or pursuant to this Indenture.

 

No Security or Coupon appertaining thereto shall be
entitled to any benefit under this Indenture or be valid or obligatory for any
purpose, unless there appears on such Security a certificate of authentication
substantially in the form provided for in Section 202 or 611 executed by
or on behalf of the Trustee or by the Authenticating Agent by the manual
signature of one of its authorized signatories. Such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder. Except as
permitted by Section 306 or 307 or as may otherwise be provided in or
pursuant to this Indenture, the Trustee shall not authenticate and deliver any
Bearer Security unless all Coupons appertaining thereto then matured have been
detached and cancelled.

 

Section 304.                                                                            Temporary
Securities.

 

Pending the preparation of definitive Securities,
the Company may execute and deliver to the Trustee and, upon Company Order, the
Trustee shall authenticate and deliver, in the manner provided in Section 303,
temporary Securities in lieu thereof 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 or pursuant
to this Indenture, in

 

30

 

bearer form with one or more Coupons or
without Coupons and with such appropriate insertions, omissions, substitutions
and other variations as the officers of the Company executing such Securities
may determine, as conclusively evidenced by their execution of such Securities.
Such temporary Securities may be in global form.

 

Except in the case of temporary Securities in global
form, which shall be exchanged in accordance with the provisions set forth in
this Indenture or the provisions established pursuant to Section 301, if
temporary Securities are issued, the Company shall cause definitive Securities
to be prepared without unreasonable delay. Except as otherwise provided in or
pursuant to this Indenture, after the preparation of definitive Securities of
the same series and containing terms and provisions that are identical to those
of any temporary Securities, such temporary Securities shall be exchangeable
for such definitive Securities upon surrender of such temporary Securities at
an Office or Agency for such Securities, without charge to any Holder thereof.
Except as otherwise provided in or pursuant to this Indenture, upon surrender
for cancellation of any one or more temporary Securities (accompanied by any
unmatured 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 authorized denominations of the same series
and containing identical terms and provisions; provided,
however, that no definitive Bearer
Security, except as provided in or pursuant to this Indenture, 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 or pursuant
to this Indenture. Unless otherwise provided in or pursuant to this Indenture
with respect to a temporary global Security, 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.

 

Section 305.                                                                            Registration,
Transfer and Exchange.

 

With respect to the Registered Securities of each
series, if any, the Company shall cause to be kept a register (each such
register being herein sometimes referred to as the “Security Register”) at an
Office or Agency for such series in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration
of the Registered Securities of such series and of transfers of the Registered
Securities of such series. Such Office or Agency shall be the “Security
Registrar” for that series of Securities. Unless otherwise specified in or
pursuant to this Indenture or the Securities, the initial Security Registrar
for each series of Securities shall be as specified in the last paragraph of Section 1002.
The Company shall have the right to remove and replace from time to time the
Security Registrar for any series of Securities; provided that no such removal
or replacement shall be effective until a successor

 

31

 

Security Registrar with respect to such
series of Securities shall have been appointed by the Company and shall have
accepted such appointment. In the event that the Trustee shall not be or shall
cease to be Security Registrar with respect to a series of Securities, it shall
have the right to examine the Security Register for such series at all
reasonable times. There shall be only one Security Register for each series of
Securities.

 

Except as otherwise provided in or pursuant to this
Indenture, upon surrender for registration of transfer of any Registered
Security of any series at any Office or Agency for such 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 denominated as authorized in or pursuant to this Indenture,
of a like aggregate principal amount bearing a number not contemporaneously
outstanding and containing identical terms and provisions.

 

Except as otherwise provided in or pursuant to this
Indenture, at the option of the Holder, Registered Securities of any series may
be exchanged for other Registered Securities of the same series containing
identical terms and provisions, in any authorized denominations, and of a like
aggregate principal amount, upon surrender of the Securities to be exchanged at
any Office or Agency for such series. Whenever any 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.

 

If provided in or pursuant to this Indenture, with
respect to Securities of any series, at the option of the Holder, Bearer
Securities of such series may be exchanged for Registered Securities of such
series containing identical terms, denominated as authorized in or pursuant to
this Indenture and in the same aggregate principal amount, upon surrender of
the Bearer Securities to be exchanged at any Office or Agency for such series,
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, such
exchange may be effected if the Bearer Securities are accompanied by payment in
funds acceptable to the Company and the Trustee 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 from and against any and all loss,
liability or expense. If thereafter the Holder of such Bearer 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

 

32

 

Coupons at an Office or Agency for such
series located outside the United States. Notwithstanding the foregoing, in
case a Bearer Security of any series is surrendered at any such Office or
Agency for such series in exchange for a Registered Security of such 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 date for
payment of Defaulted Interest, such Bearer Security shall be surrendered
without the Coupon relating to such Interest Payment Date or proposed date of
payment, as the case may be (or, if such Coupon is so surrendered with such
Bearer Security, such Coupon shall be returned to the Person so surrendering
the Bearer Security), and interest or Defaulted Interest, as the case may be,
shall 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 shall be payable only to the Holder of
such Coupon when due in accordance with the provisions of this Indenture.

 

If provided in or pursuant to this Indenture with
respect to Securities of any series, at the option of the Holder, Registered Securities
of such series may be exchanged for Bearer Securities upon such terms and
conditions as may be provided in or pursuant to this Indenture with respect to
such series.

 

Whenever any Securities are surrendered for exchange
as contemplated by the immediately preceding two paragraphs, 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
provided in or pursuant to this Indenture, the global Securities of any series
shall be exchangeable for definitive certificated Securities of such series
only if (i) the Depository for such global Securities notifies the Company
that it is unwilling or unable to continue as a Depository for such global
Securities or at any time the Depository for such global Securities ceases to
be a clearing agency registered as such under the Exchange Act, if so required
by applicable law or regulation, and no successor Depository for such
Securities shall have been appointed within 90 days of such notification or of
the Company becoming aware of the Depository’s ceasing to be so registered, as
the case may be, (ii) the Company, in its sole discretion, determines that
the Securities of such series shall no longer be represented by one or more
global Securities and executes and delivers to the Trustee a Company Order to
the effect that such global Securities shall be so exchangeable, or (iii) an
Event of Default has occurred and is continuing with respect to such
Securities.

 

33

 

If the beneficial owners of interests in a global
Security are entitled to exchange such interests for definitive Securities as
the result of an event described in clause (i), (ii) or (iii) of the
preceding paragraph, then without unnecessary delay but in any event not later
than the earliest date on which such interests may be so exchanged, the Company
shall deliver to the Trustee definitive Securities in such form and denominations
as are required by or pursuant to this Indenture, and of the same series,
containing identical terms and in aggregate principal amount equal to the
principal amount of such global Security, executed by the Company.  On or after the earliest date on which such
interests may be so exchanged, such global Security shall be surrendered from
time to time by the Depository (or its custodian) as shall be specified in the
Company Order with respect thereto (which the Company agrees to deliver), and
in accordance with instructions given to the Trustee and the Depository (which
instructions shall be in writing but need not be contained in or accompanied by
an Officers’ Certificate or be accompanied by an Opinion of Counsel), as shall
be specified in the Company Order with respect thereto to the Trustee, as the
Company’s agent for such purpose, to be exchanged, in whole or in part, for
definitive Securities as described above without charge. The Trustee shall
authenticate and make available for delivery, in exchange for each portion of
such surrendered global Security, a like aggregate principal amount of
definitive Securities of the same series of authorized denominations and of
like tenor as the portion of such global Security to be exchanged, which (unless
such Securities are not issuable both as Bearer Securities and as Registered
Securities, in which case the definitive Securities exchanged for the global
Security shall be issuable only in the form in which the Securities are
issuable, as provided in or pursuant to this Indenture) shall be in the form of
Bearer Securities or Registered Securities, or any combination thereof, and
which shall be in such denominations and, in the case of Registered Securities,
registered in such names, as shall be specified by the Depository, but subject
to the satisfaction of any certification or other requirements to the issuance
of Bearer Securities; provided, however, that no such exchanges may occur during a period
beginning at the opening of business 15 days before any selection of Securities
of the same series to be redeemed and ending on the relevant Redemption Date;
and provided, further,
that (unless otherwise provided in or pursuant to this Indenture) no Bearer
Security delivered in exchange for a portion of a global Security shall be
mailed or otherwise delivered to any location in the United States. Promptly
following any such exchange in part, such global Security shall be returned by
the Trustee to such Depository (or its custodian) or such other Depository (or its
custodian) referred to above in accordance with the instructions of the Company
referred to above, and the Trustee shall endorse such global Security to
reflect the decrease in the principal amount thereof resulting from such
exchange. If a Registered Security is issued in exchange for any portion of a
global Security after the close of business at the Office or Agency for such
Security where such exchange occurs on or after (i) any Regular Record
Date for such Security and before the opening of business at such Office or
Agency on the next Interest

 

34

 

Payment Date, or (ii) any Special Record
Date for such Security and before the opening of business at such Office or
Agency on the related proposed date for payment of interest or Defaulted
Interest, as the case may be, interest shall 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 shall 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 global Security shall be 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 entitling the Holders thereof 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 for such Security) be duly
endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar for such Security 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, or any redemption or repayment of
Securities, or any conversion or exchange of Securities for other types of
securities or property, 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, 905 or 1107, upon repayment or
repurchase in part of any Registered Security pursuant to Article Thirteen,
or upon surrender in part of any Registered Security for conversion or exchange
into Common Shares or other securities or property pursuant to its terms, in
each case not involving any transfer.

 

Except as otherwise provided in or pursuant to this
Indenture, the Company shall not be required (i) to issue, register the
transfer of or exchange any Securities during a period beginning at the opening
of business 15 days before the day of the selection for redemption of
Securities of like tenor and terms and of the same series under Section 1103
and ending at the close of business on the day of such selection, or (ii) to
register the transfer of or exchange any Registered Security, or portion
thereof, so selected for redemption, 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, to the extent
provided with respect to such Bearer Security, that such Bearer Security may be
exchanged for a Registered Security of like tenor and terms and of the same
series, provided that such Registered Security shall be simultaneously
surrendered for redemption with written instruction for payment consistent with

 

35

 

the provisions of this Indenture or (iv) to
issue, register the transfer of or exchange any Security which, in accordance
with its terms, has been surrendered for repayment at the option of the Holder
pursuant to Article Thirteen and not withdrawn, 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, subject to
the provisions of this Section 306, the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a new Security of
the same series containing identical terms and of like principal amount and
bearing a number not contemporaneously outstanding, with Coupons appertaining
thereto corresponding to the Coupons, if any, appertaining to the surrendered
Security.

 

If there 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 from and against any and all loss, liability or expense, 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
the Company’s request the Trustee shall authenticate and deliver, in exchange
for or in lieu of any such mutilated, 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 containing identical terms and of like principal
amount and bearing a number not contemporaneously outstanding, with Coupons
corresponding to the Coupons, if any, appertaining to such destroyed, lost or
stolen Security or to the Security to which such destroyed, lost or stolen
Coupon appertains.

 

Notwithstanding the foregoing provisions of this Section 306,
in case any 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, pay such Security or Coupon; provided, however, that
payment of principal of, any premium or interest on or any Additional Amounts
with respect to any Bearer Securities shall, except as otherwise provided in Section 1002,
be payable only at an Office or Agency for such Securities located outside the
United States and, unless otherwise provided in or pursuant to this Indenture,
any interest on Bearer Securities and any Additional Amounts with respect to
such interest 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

 

36

 

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, with any Coupons appertaining
thereto 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 a separate obligation of the Company,
whether or not the destroyed, lost or stolen Security and Coupons appertaining
thereto 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 such
series and any Coupons, if any, duly issued hereunder.

 

The provisions of this Section, as amended or
supplemented pursuant to this Indenture with respect to particular Securities
or generally, shall (to the extent lawful) be 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 and Certain Additional Amounts; Rights to Interest and Certain
Additional Amounts Preserved.

 

Unless otherwise provided in or pursuant to this
Indenture, any interest on and any Additional Amounts with respect to any
Registered Security which shall be payable, and are punctually paid or duly
provided for, on any Interest Payment Date shall be paid to the Person in whose
name such Security (or one or more Predecessor Securities) is registered as of
the close of business on the Regular Record Date for such interest. Unless
otherwise provided in or pursuant to this Indenture, in case a Bearer Security
is surrendered in exchange for a Registered Security after the close of
business at an Office or Agency for such Security on any Regular Record Date
therefor and before the opening of business at such Office or Agency on the
next succeeding Interest Payment Date therefor, such Bearer Security shall be
surrendered without the Coupon relating to such Interest Payment Date and
interest shall not be payable on such Interest Payment Date in respect of the
Registered Security issued in exchange for such Bearer Security, but shall be
payable only to the Holder of such Coupon when due in accordance with the
provisions of this Indenture.

 

Unless otherwise provided in or pursuant to this
Indenture, any interest on and any Additional Amounts with respect to any
Registered Security which shall be payable, but shall not be punctually paid or
duly provided for, on any Interest Payment Date for such Registered Security
(herein called “Defaulted Interest”) shall forthwith cease to be payable to the
Holder thereof on the relevant Regular Record Date by virtue of having been
such Holder; and such Defaulted Interest

 

37

 

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 Person in
whose name such Registered Security (or a Predecessor Security thereof) shall
be 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 such Registered Security and the date of the proposed
payment, and at the same time the Company shall deposit with the Trustee an
amount of money equal to the aggregate amount proposed to be paid in respect of
such Defaulted Interest or shall make arrangements satisfactory to the Trustee
for such deposit on or prior to the date of the proposed payment, such money
when so deposited to be held in trust for the benefit of the Person 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 the Holder of such Registered Security (or a Predecessor Security
thereof) 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 of general circulation in
the Borough of Manhattan, The City of New York, but such publication 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 Person in whose name such Registered Security (or a
Predecessor Security thereof) shall be 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 is surrendered at the Office or
Agency for such Security in exchange for a Registered Security 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 Defaulted Interest and Defaulted Interest
shall not be payable on such proposed date of payment in respect of the
Registered Security issued in exchange for such Bearer Security, but shall be
payable only to the Holder of such Coupon when due in accordance with the
provisions of this Indenture.

 

38

 

(2)                                  The Company may make payment of any Defaulted Interest in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which such Security 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 payment shall be deemed
practicable by the Trustee.

 

Unless otherwise provided in or pursuant to this
Indenture or the Securities of any particular series, at the option of the
Company, interest on Registered Securities that bear interest may be paid by
mailing a check to the address of the Person entitled thereto as such address
shall appear in the Security Register or by transfer to an account maintained
by the payee with a bank located in the United States of America.

 

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 in the Security Register as the owner of such Registered
Security for the purpose of receiving payment of principal of, any premium and
(subject to Sections 305 and 307) interest on and any Additional Amounts with
respect to such Registered Security and for all other purposes whatsoever,
whether or not any payment with respect to such Registered Security shall be
overdue, and none of the Company, the Trustee or any agent of the Company or
the Trustee shall be affected by notice to the contrary.

 

The Company, the Trustee and any agent of the
Company or the Trustee may treat the bearer of any Bearer Security or the
bearer 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 any payment with respect to such Security
or Coupon shall be overdue, and none of the Company, the Trustee or 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 may 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

 

39

 

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, nothing herein shall
prevent the Company, the Trustee, any Paying Agent or the Security Registrar
from giving effect to any written certification, proxy or other authorization
furnished by the applicable Depository, as a Holder, with respect to a global
Security or impair, as between such Depository and the 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 the
Holder of such global Security.

 

Section 309.                                                                            Cancellation.

 

All Securities and Coupons surrendered for payment,
redemption, registration of transfer, exchange or conversion 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,
as well as Securities and Coupons surrendered directly to the Trustee for any
such purpose, shall be cancelled promptly by the Trustee. 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 all Securities so delivered shall be cancelled
promptly by the Trustee. No Securities shall be authenticated in lieu of or in
exchange for any Securities cancelled as provided in this Section, except as
expressly permitted by or pursuant to this Indenture. All cancelled Securities
and Coupons held by the Trustee shall be destroyed by the Trustee in accordance
with customary procedures.

 

Section 310.                                                                            Computation
of Interest.

 

Except as otherwise provided in or pursuant to this
Indenture or in the Securities of any series, interest on the Securities shall
be computed on the basis of a 360-day year of twelve 30-day months.

 

ARTICLE FOUR

 

SATISFACTION AND DISCHARGE
OF INDENTURE

 

Section 401.                                                                            Satisfaction
and Discharge.

 

Unless, pursuant to Section 301, the provisions
of this Section 401 shall not be applicable with respect to the Securities
of any series, upon the direction of the Company by a Company Order, this
Indenture shall cease to be of further

 

40

 

effect with respect to any series of
Securities specified in such Company Order and any Coupons appertaining
thereto, and the Trustee, on receipt of a Company Order, at the expense of the
Company, shall execute proper instruments 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
appertaining thereto (other than (i) Coupons appertaining to Bearer
Securities of such series surrendered in exchange for Registered Securities of
such series and maturing after such exchange whose surrender is not required or
has been waived as provided in Section 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 of such series 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, if applicable,
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 deposited or caused to be deposited with the Trustee as
trust funds in trust for such purpose, money in the Currency in which such
Securities are payable in an amount sufficient to pay and discharge the entire
indebtedness on such Securities and any Coupons appertaining thereto not
theretofore delivered to the Trustee for cancellation, including the principal
of, any premium and interest on, and, to the extent that the Securities of such
series provide for the payment of Additional Amounts thereon and the amount of
any such Additional Amounts which are or will be payable with respect to the
Securities of such series is at the time of deposit reasonably determinable by
the Company (in the exercise by the Company of its sole and

 

41

 

absolute discretion), any Additional Amounts
with respect to, such Securities and any Coupons appertaining thereto, to the
date of such deposit (in the case of Securities which have become due and
payable) or to the Maturity thereof, as the case may be;

 

(2)                                  the Company has paid or caused to be paid all other sums payable
hereunder by the Company with respect to the Outstanding Securities of such
series and any Coupons appertaining thereto; and

 

(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.

 

In the event there are Securities of two or more
series Outstanding hereunder, the Trustee shall be required to execute an
instrument acknowledging satisfaction and discharge of this Indenture only if
requested to do so with respect to Securities of such series as to which it is
Trustee and if the other conditions thereto are met.

 

Notwithstanding the satisfaction and discharge of this
Indenture with respect to any series of Securities, the obligations of the
Company to the Trustee under Section 606 and, if money shall have been
deposited with the Trustee pursuant to subclause (b) of clause (1) of
this Section, the respective obligations of the Company and the Trustee with
respect to the Securities of such series under Sections 305, 306, 403, 404,
1002 and 1003, any rights of Holders of the Securities of such series (unless
otherwise provided pursuant to Section 301 with respect to the Securities
of such series) to convert or exchange, and the obligations of the Company to
convert or exchange, such Securities into Common Shares or other securities or
property, and, if expressly provided pursuant to Section 301 with respect
to the Securities of such series, any rights of Holders of the Securities of
such series to require the Company to repurchase or repay, and the obligations
of the Company to repurchase or repay, such Securities at the option of such
Holders as contemplated by Article Thirteen hereof, shall survive, and, if
the Securities of such series provide for the payment of Additional Amounts
pursuant to Section 1004, the Company will remain obligated, following
satisfaction and discharge of this Indenture with respect to the Securities of
such series, to pay Additional Amounts with respect to such Securities as
contemplated by Section 1004, to the extent (and only to the extent) that
the Additional Amounts payable with respect to such Securities exceed the
amount deposited in respect of such Additional Amounts pursuant to subclause (b) of
clause (1) of this Section.

 

42

 

Section 402.                                                                            Defeasance
and Covenant Defeasance.

 

(1)                                  Unless, pursuant to Section 301, either or both of (i) defeasance
of the Securities of or within a series under clause (2) of this Section 402
or (ii) covenant defeasance of the Securities of or within a series under
clause (3) of this Section 402 shall not be applicable with respect
to the Securities of such series, then such provisions, together with the other
provisions of this Section 402 (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 the
Securities of or within such series and any Coupons appertaining thereto, elect
to have Section 402(2) or Section 402(3) be applied to such
Outstanding Securities and any Coupons appertaining thereto upon compliance
with the conditions set forth below in this Section 402. Unless otherwise
specified pursuant to Section 301 with respect to the Securities of any
series, defeasance under clause (2) of this Section 402 and covenant
defeasance under clause (3) of this Section 402 may be effected with
respect to any or all of the Outstanding Securities of any series. To the
extent that the terms of any Security or Coupon appertaining thereto
established in or pursuant to this Indenture permit the Company or any Holder
thereof to extend the date on which any payment of principal of, or premium, if
any, or interest, if any, on, or Additional Amounts, if any, with respect to
such Security or Coupon is due and payable, then unless otherwise provided
pursuant to Section 301, the right to extend such date shall terminate
upon defeasance or covenant defeasance, as the case may be.

 

(2)                                  Upon the Company’s exercise of the above option applicable to this Section 402(2) 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 clause (4) of this Section 402 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 clause (5) of
this Section 402 and the other Sections of this Indenture referred to in
clauses (i) through (iv) of this paragraph, and shall be deemed 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: (i) the rights of Holders of such Outstanding
Securities and any Coupons appertaining thereto to receive, solely (except as
provided in clause (ii) below) from the trust fund described in clause (4)(a) of
this Section 402 and as more fully set forth in this

 

43

 

Section 402 and Section 403,
payments in respect of the principal of (and premium, if any) and interest, if
any, on, and Additional Amounts, if any, with respect to, such Securities and
any Coupons appertaining thereto when such payments are due, (ii) the
obligations of the Company and the Trustee with respect to such Securities
under Sections 305, 306, 1002 and 1003 and, if applicable to the Securities of
such series, any rights of Holders of such Securities (unless otherwise
provided pursuant to Section 301 with respect to the Securities of such
series) to convert or exchange, and the obligations of the Company to convert
or exchange, such Securities into Common Shares or other securities or
property, and, if expressly provided pursuant to Section 301 with respect
to the Securities of such series, any rights of Holders of the Securities of
such series to require the Company to repurchase or repay, and the obligations
of the Company to repurchase or repay, such Securities at the option of such
Holders as contemplated by Article Thirteen hereof, and, if the Securities
of such series provide for the payment of Additional Amounts pursuant to Section 1004,
the Company will remain obligated, following defeasance of this Indenture with
respect to the Securities of such series, to pay Additional Amounts with
respect to such Securities as contemplated by Section 1004, to the extent
(and only to the extent) that the Additional Amounts payable with respect to
such Securities exceed the amount deposited in respect of such Additional
Amounts pursuant to clause 4(a) of this Section 402, (iii) the
rights, powers, trusts, duties and immunities of the Trustee hereunder and (iv) this
Section 402 and Sections 403 and 404. The Company may exercise its option
under this Section 402(2) notwithstanding the prior exercise of its
option under Section 402(3) with respect to such Securities and any
Coupons appertaining thereto.

 

(3)                                  Upon the Company’s exercise of the above option applicable to this Section 402(3) with
respect to any Securities of or within a series, the Company shall be released
from its obligations under any covenants applicable to such Securities which
are specified pursuant to Section 301 as being subject to covenant
defeasance on and after the date the conditions set forth in clause (4) of
this Section 402 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 any such 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 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

 

44

 

Section 501(5) or
501(11) or otherwise, as the case may be, but, except as specified above, the
remainder of this Indenture and such Securities and Coupons appertaining
thereto shall be unaffected thereby.

 

(4)                                  The following shall be the conditions to application of clause (2) or
(3) of this Section 402 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 Section 402 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 Dollars or in such Foreign Currency in which such Securities and any
Coupons appertaining thereto are then specified as payable at Stated Maturity
or, if such defeasance or covenant defeasance is to be effected in compliance
with subsection (f) below, on the relevant Redemption Date, as the case
may be, or (2) Government Obligations applicable to such Securities and
Coupons appertaining thereto (determined on the basis of the Currency in which
such Securities and Coupons appertaining thereto are then specified as payable
at Stated Maturity or, if such defeasance or covenant defeasance is to be
effected in compliance with subsection (f) below, on the relevant
Redemption Date, as the case may be) which through the scheduled payment of
principal and interest in respect thereof in accordance with their terms will
provide, not later than one day before the due date of any payment of principal
of (and premium, if any) and interest, if any, on such Securities and any
Coupons appertaining thereto, money in an amount, or (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, (y) the principal of (and premium, if any) and interest, if
any, on, and, to the extent that such Securities provide for the payment of
Additional Amounts thereon and the amount of any such Additional Amounts which
are or will be payable with respect to the Securities of such series is at the
time of deposit reasonably determinable by the Company (in the exercise by the
Company of its sole and absolute discretion), any Additional Amounts with
respect to, such Outstanding Securities and any Coupons appertaining thereto on
the Stated Maturity of such principal or installment of principal or interest
or the applicable Redemption Date, as the case may be, and (z) any
mandatory sinking fund payments or analogous payments applicable to such
Outstanding Securities and any Coupons appertaining thereto on the day on which
such payments are due and payable in accordance with the terms of this
Indenture and of such Securities and any Coupons appertaining thereto.

 

45

 

(b)                                 Such defeasance
or covenant defeasance shall not result in a breach or violation of, or
constitute a default under, this Indenture.

 

(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, and,
solely in the case of defeasance under Section 402(2), no Event of Default
with respect to the Company under clauses (8), (9) or (10) of Section 501
with respect to such Securities and any Coupons appertaining thereto or event
which with notice or lapse of time or both would become an Event of Default with
respect to the Company under clauses (8), (9) or (10) of Section 501
with respect to such Securities and any Coupons appertaining thereto shall have
occurred and be continuing at any time during the period ending on and
including the 91st day after the date of such deposit (it being understood that
this condition to defeasance under Section 402(2) shall not be deemed
satisfied until the expiration of such period).

 

(d)                                 In the case of
defeasance pursuant to Section 402(2), the Company shall have delivered to
the Trustee an opinion of independent counsel reasonably acceptable to the
Trustee stating that (x) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling, or (y) since the date
of this Indenture there has been a change in applicable U.S. federal income tax
law, in either case to the effect that, and based thereon such opinion of
independent counsel shall confirm that, the Holders of such Outstanding
Securities and any Coupons appertaining thereto will not recognize income, gain
or loss for U.S. federal income tax purposes as a result of such defeasance and
will be subject to U.S. federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such defeasance had
not occurred; or, in the case of covenant defeasance pursuant to Section 402(3),
the Company shall have delivered to the Trustee an opinion of independent
counsel reasonably acceptable to the Trustee to the effect that the Holders of
such Outstanding Securities and any Coupons appertaining thereto will not
recognize income, gain or loss for U.S. federal income tax purposes as a result
of such covenant defeasance and will be subject to U.S. federal income tax on
the same amounts, in the same manner and at the same times as would have been
the case if such covenant defeasance had not occurred.

 

(e)                                  The Company
shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent to the defeasance or
covenant defeasance, as the case may be, under this Indenture have been
complied with.

 

(f)                                    If the monies
or Government Obligations or combination thereof, as the case may be, deposited
under clause (a) above are sufficient to pay the principal of, and
premium, if any, and interest, if any, on and, to the extent provided in such

 

46

 

clause (a), Additional
Amounts with respect to, such Securities provided such Securities are redeemed
on a particular Redemption Date, the Company shall have given the Trustee
irrevocable instructions to redeem such Securities on such date and to provide
notice of such redemption to Holders as provided in or pursuant to this
Indenture.

 

(g)                                 Notwithstanding
any other provisions of this Section 402(4), 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.

 

(5)                                  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 402(5) and
Section 403, the “Trustee”) pursuant to clause (4)(a) of Section 402
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 (other than the Company or any Subsidiary or Affiliate of the
Company acting as 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, if any) and interest
and Additional Amounts, if any, but such money need not be segregated from
other funds except to the extent required by law.

 

Unless otherwise specified in or pursuant to this
Indenture or any Securities, if, after a deposit referred to in Section 402(4)(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 other than that in
which the deposit pursuant to Section 402(4)(a) has been made in
respect of such Security, or (b) a Conversion Event occurs in respect of
the Foreign Currency in which the deposit pursuant to Section 402(4)(a) has
been made, the indebtedness represented by such Security and any Coupons
appertaining thereto shall be deemed to have been, and will be, fully
discharged and satisfied through the payment of the principal of (and premium,
if any), and interest, if any, on, and Additional Amounts, if any, with respect
to, such Security as the same becomes due out of the proceeds yielded by
converting (from time to time as specified below in the case of any such
election) the amount or other property deposited in respect of such Security
into the Currency in which such Security becomes payable as a result of such
election or Conversion Event based on (x) in the case of payments made
pursuant to clause (a) above, the applicable market exchange rate for such
Currency in effect on the second Business Day prior to each payment date, or (y) with
respect to a Conversion

 

47

 

Event, the applicable market exchange rate
for such Foreign Currency in effect (as nearly as feasible) at the time of the
Conversion Event.

 

The Company shall pay and indemnify the Trustee
against any tax, fee or other charge, imposed on or assessed against the
Government Obligations deposited pursuant to this Section 402 or the
principal or interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of such
Outstanding Securities and any Coupons appertaining thereto.

 

Anything in this Section 402 to the contrary
notwithstanding, the Trustee shall deliver or pay to the Company from time to
time upon Company Request any money or Government Obligations (or other
property and any proceeds therefrom) held by it as provided in clause (4)(a) of
this Section 402 which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then
be required to be deposited to effect a defeasance or covenant defeasance, as
applicable, in accordance with this Section 402.

 

Section 403.                                                                            Application
of Trust Money.

 

Subject to the provisions of the last paragraph of Section 1003,
all money and Government Obligations deposited with the Trustee pursuant to Section 401
or 402 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, premium, interest and Additional Amounts for whose
payment such money has or Government Obligations have been deposited with or received
by the Trustee; but such money and Government Obligations need not be
segregated from other funds except to the extent required by law.

 

Section 404.                                                                            Reinstatement.

 

If the Trustee (or other qualifying trustee
appointed pursuant to Section 402(4)(a)) or any Paying Agent is unable to
apply any moneys or Government Obligations deposited pursuant to Section 401(1) or
402(4)(a) to pay any principal of or premium, if any, or interest, if any,
on or Additional Amounts, if any, with respect to the Securities of the
applicable series by reason of any legal proceeding or any order or judgment of
any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, then the Company’s obligations under this
Indenture and the Securities of such series shall be revived and reinstated as
though no such deposit had occurred, until such time as the Trustee (or other
qualifying trustee) or Paying Agent is permitted to apply all such

 

48

 

moneys and Government Obligations to pay the
principal of and premium, if any, and interest, if any, on and Additional
Amounts, if any, in respect of the Securities of such series as contemplated by
Sections 401 or 402 as the case may be, and Section 403; provided,
however, that if the Company makes any payment of the principal of or premium,
if any, or interest if any, on or Additional Amounts, if any, in respect of the
Securities of such series following the reinstatement of its obligations as
aforesaid, the Company shall be subrogated to the rights of the Holders of such
Securities to receive such payment from the funds held by the Trustee (or other
qualifying trustee) or Paying Agent.

 

ARTICLE FIVE

 

REMEDIES

 

Section 501.                                                                            Events
of Default.

 

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

 

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

 

(2)                                  default in the payment of any principal of or premium, if any, on, or
any Additional Amounts, if any, payable in respect of any principal of or
premium, if any, on, any of the Securities of such series when due (whether at
Maturity or otherwise and whether payable in cash or in Common Shares or other
securities or property); or

 

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

 

(4)                                  default in the delivery when due of any securities, cash or other
property (including, without limitation, any Common Shares) when required to be
delivered upon conversion of any convertible Security of such series or upon
the exchange of any Security of such series which is exchangeable for Common

 

49

 

Shares or other securities or
property (other than an exchange of Securities of such series for other
Securities of the same series); or

 

(5)                                  default in the performance, or breach, of any covenant or warranty
applicable to the Company in this Indenture or any Security of such series
(other than a covenant or warranty for which the consequences of breach or
nonperformance are addressed elsewhere in this Section 501 or a covenant
or warranty which has expressly been included in this Indenture, whether or not
by means of a supplemental indenture, solely for the benefit of Securities of a
series other than such series), and continuance of such default or breach
(without such default or breach having been cured or waived in accordance of
the provisions of this Indenture) 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 aggregate principal
amount of the Outstanding Securities of such 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

 

(6)                                  default after the expiration of any applicable grace period in the
payment of principal when due, or resulting in acceleration of, other
indebtedness (other than Non-recourse Debt) of the Company or any Significant
Subsidiary of the Company for borrowed money where the aggregate principal
amount with respect to which the default or acceleration has occurred exceeds
$60.0 million and such indebtedness has not been discharged, or such default in
payment or acceleration has not been cured or rescinded, prior to written
notice of acceleration of the Outstanding Securities of such series; or

 

(7)                                  failure by the Company or any of its Subsidiaries to pay final
judgments entered by a court or courts of competent jurisdiction aggregating in
excess of $60.0 million, which judgments are not paid, discharged or stayed for
a period of 30 days after such judgments become final and non-appealable; or

 

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

 

(i)                                     commences a
voluntary case or proceeding seeking liquidation, reorganization or other
relief with respect to it or its debts or seeking the appointment of a trustee,
receiver, liquidator, custodian or other similar official of it or any
substantial part of its property; or

 

(ii)                                  consents to any
such relief or to the appointment of or taking possession by any such official
in an involuntary case or other proceeding commenced against it; or

 

50

 

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

 

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

 

(9)                                  an involuntary case or other proceeding shall be commenced against the
Company or any Significant Subsidiary of the Company seeking liquidation,
reorganization or other relief with respect to it or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official of  it or any substantial part
of its property, and such involuntary case or other proceeding shall remain
undismissed and unstayed for a period of 60 days; or

 

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

 

(i)                                     is for relief
against the Company or any Significant Subsidiary of the Company in an
involuntary case or proceeding; or

 

(ii)                                  appoints a
trustee, receiver, liquidator, custodian or other similar official of the
Company or any Significant Subsidiary of the Company or any substantial part of
their respective properties; or

 

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

 

and, in each case in this clause (11), the
order or decree remains unstayed and in effect for 60 days; or

 

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

 

Section 502.                                                                            Acceleration of
Maturity; Rescission and Annulment.

 

If an Event of Default (other than an Event of
Default specified in clauses (8), (9) or (10) of Section 501
with respect to the Company) occurs and is continuing with respect to
Securities of any series, then either the Trustee or the Holders of not less
than 25% in aggregate principal amount of the Outstanding Securities of such
series may declare the principal of all the Securities of such series, or such
lesser amount as may be provided for in the Securities of such series, and
accrued and unpaid interest, if any, thereon to be due and payable immediately,
by a notice in writing to the Company (and to the Trustee if given by the
Holders), and upon any such declaration such principal or such lesser amount,
as the case may be, and such accrued and unpaid interest shall become
immediately due and payable. If an Event of Default specified in clause (8), (9) or
(10) of Section 501 with respect to the Company occurs with respect
to the

 

51

 

Securities of any series, then the principal
of all of the Securities of such series, or such lesser amount as may be
provided for in the Securities of such series, and accrued an unpaid interest,
if any, thereon shall ipso  facto become and be immediately due
and payable without any declaration or other act on the part of the Trustee or
any Holder of the Securities of such series. For purposes of clarity, the
parties hereto agree that references in this Indenture to an Event of Default
specified in clauses (8), (9) or (10) of Section 501 with
respect to the Company shall not include any Event of Default specified in clauses
(8), (9) or (10) of Section 501 with respect to any Significant
Subsidiary of the Company.

 

At any time after Securities of any series have been
accelerated (whether by declaration of the Trustee or the Holders or
automatically) and before a judgment or decree for payment of the money due has
been obtained by the Trustee as hereinafter in this Article provided, the
Holders of not less than a majority in aggregate principal amount of the
Outstanding Securities of such series, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if

 

(1)                                  the Company has paid or deposited with the Trustee a sum of money
sufficient to pay (or, to the extent that the terms of the Securities of such
series established pursuant to Section 301 expressly provide for payment
to be made in Common Shares or other securities or property, Common Shares or
other securities or property, together with cash in lieu of fractional shares
or securities to the extent required pursuant to the terms of such Securities,
sufficient to pay)

 

(a)                                  all overdue
installments of any interest on any Securities of such series and any Coupons
appertaining thereto which have become due otherwise than by such declaration
of acceleration and any Additional Amounts with respect thereto,

 

(b)                                 the principal
of and any premium on any Securities of such series which have become due
otherwise than by such declaration of acceleration and any Additional Amounts
with respect thereto and, to the extent permitted by applicable law, interest
thereon at the rate or respective rates, as the case may be, provided for in or
with respect to such Securities, or, if no such rate or rates are so provided,
at the rate or respective rates, as the case may be, of interest borne by such
Securities,

 

(c)                                  to the extent
permitted by applicable law, interest upon installments of any interest, if
any, which have become due otherwise than by such declaration of acceleration
and any Additional Amounts with respect thereto at the rate or respective
rates, as the case may be, provided for in or with respect to such Securities,
or, if no such rate or rates are so provided, at the rate or respective rates,
as the case may be, of interest borne by such Securities, and

 

52

 

(d)                                 all sums paid
or advanced by the Trustee hereunder and the reasonable compensation, fees and
expenses, disbursements and advances of the Trustee, its agents and counsel and
all other amounts due the Trustee under Section 606; and

 

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

 

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

 

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

 

The Company covenants that if:

 

(1)                                  default is made in the payment of any interest on, or any Additional
Amounts payable in respect of any interest on, any Security or any Coupon
appertaining thereto when such interest or Additional Amounts, as the case may
be, shall have become due and payable and such default continues for a period
of 30 days, or

 

(2)                                  default is made in the payment of any principal of or premium, if any,
on, or any Additional Amounts payable in respect of any principal of or
premium, if any, on, any Security at its Maturity, or

 

(3)                                  default is made in the deposit of any sinking fund payment when due,

 

the Company shall, upon demand of the
Trustee, pay to the Trustee, for the benefit of the Holders of such Securities
and any Coupons appertaining thereto, the whole amount of money then due and
payable with respect to such Securities and any Coupons appertaining thereto,
with interest upon the overdue principal, any premium and, to the extent
permitted by applicable law, upon any overdue installments of interest and
Additional Amounts at the rate or respective rates, as the case may be,
provided for or with respect to such Securities or, if no such rate or rates
are so provided, at the rate or respective rates, as the case may be, of
interest borne by such Securities, and, in addition thereto, such further
amount of money 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 and all other amounts due to
the Trustee under Section 606.

 

53

 

If the Company fails to pay the money it is required
to pay the Trustee pursuant to the preceding paragraph forthwith upon the
demand of the Trustee, the Trustee, in its own name and as trustee of an
express trust, may institute a judicial proceeding for the collection of the
money 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 and any Coupons appertaining thereto and collect the monies
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 and any
Coupons appertaining thereto, 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 Coupons appertaining thereto 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 such Securities or in aid of the exercise of
any power granted herein or therein, 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 such other
obligor or their creditors, the Trustee (irrespective of whether the principal
of the Securities 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 any overdue principal,
premium, interest or Additional Amounts) shall be entitled and empowered, by
intervention in such proceeding or otherwise,

 

(1)                                  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 the principal and
any premium, interest and Additional Amounts owing and unpaid in respect of the
Securities and any Coupons appertaining thereto 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 or counsel) and of the
Holders of Securities or any Coupons allowed in such judicial proceeding, and

 

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

 

54

 

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 or any 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 of Securities or
any Coupons, to pay to the Trustee any amount due to it for the reasonable
compensation, fees and expenses, disbursements and advances of the Trustee, its
agents and counsel and any other amounts due the 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 any 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 any Coupon in any such
proceeding.

 

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 or judgment, after provision for the payment of
the reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, shall be for the ratable benefit of each and every
Holder of a Security or Coupon 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 with
respect to the Securities of any series 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 any premium, interest or
Additional Amounts, upon presentation of such Securities or the Coupons, if
any, appertaining thereto, 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 any Coupons for principal and any premium,
interest and Additional Amounts in respect of which or for the benefit of which
such money

 

55

 

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 any premium, interest
and Additional Amounts;

 

THIRD: The balance, if any, to the Person or Persons
entitled thereto.

 

Section 507.                                                                            Limitations
on Suits.

 

No Holder of any Security of any series or any
Coupons appertaining thereto 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 such series;

 

(2)                                  the Holders of not less than 25% in aggregate principal amount of the
Outstanding Securities of such 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, fees and expenses and
liabilities which might 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 such 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 or any Security to
affect, disturb or prejudice the rights of any other such Holders or Holders of
Securities of any other series, or to obtain or to seek to obtain priority or
preference over any other 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 and any Premium, Interest and Additional
Amounts.

 

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, any
premium, if any, and (subject to Sections

 

56

 

305 and 307) interest, if any, on and any
Additional Amounts with respect to such Security or such Coupon, as the case
may be, on the respective Stated Maturity or Maturities therefor specified in
such Security or Coupon (or, in the case of redemption, on the Redemption Date
or, in the case of repayment pursuant to Article Thirteen hereof at the
option of such Holder if provided in or pursuant to this Indenture, on the date
such repayment is due) and, in the case of any Security which is convertible
into or exchangeable for other securities or property, to convert or exchange,
as the case may be, such Security in accordance with its terms, and to
institute suit for the enforcement of any such payment and any such right to convert
or exchange, and such right 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 a
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 each such Holder 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 each such Holder shall continue as though no such
proceeding had been instituted.

 

Section 510.                                                                            Rights
and Remedies Cumulative.

 

To the extent permitted by applicable law and 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 each
and every Holder of a Security or a Coupon is intended to be exclusive of any
other right or remedy, and every right and remedy, to the extent permitted by
law, shall 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, to the extent permitted by law, 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, to the extent permitted by applicable law, 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 any

 

57

 

Holder of a Security or a Coupon may, to the
extent permitted by applicable law, be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by such Holder, as the case
may be.

 

Section 512.                                                                            Control
by Holders of Securities.

 

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

 

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

 

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

 

(3)                                  such direction is not unduly prejudicial to the rights of the other
Holders of Securities of such series not joining in such action.

 

Section 513.                                                                            Waiver of Past
Defaults.

 

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

 

(1)                                  a default in the payment of the principal of, any premium or interest
on, or any Additional Amounts with respect to, any Security of such series or
any Coupons appertaining thereto, or

 

(2)                                  in the case of any Securities which are convertible into or
exchangeable for Common Shares or other securities or property, a default in
any such conversion or exchange, or

 

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

 

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

 

58

 

Section 514.                         Waiver
of Usury, Stay or Extension Laws.

 

The Company covenants that (to the extent that it
may lawfully do so) it will not at any time insist upon, or plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay or extension
law or any usury law or any other law wherever enacted, now or at any time
hereafter in force, which would prohibit or forgive the Company from paying all
or any portion of the principal of or premium, if any, or interest, if any, on
or Additional Amounts, if any, with respect to any Securities as contemplated
herein and therein or which may affect the covenants or the performance of this
Indenture or the Securities; and the Company (to the extent that it may
lawfully do so) 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 or the Holders, 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 to be taken by it as Trustee, the filing by any
party litigant in such suit of any undertaking to pay the costs of such suit,
and that such court may in its discretion assess reasonable costs, including
reasonable attorneys’ fees and disbursements, 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 515
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 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, if any) or interest, if any, on or Additional Amounts, if any, with
respect to 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, and, in the case of repayment at the option of the Holder pursuant to Article Thirteen
hereof, on or after the date for repayment) or for the enforcement of the
right, if any, to convert or exchange any Security into Common Shares or other
securities in accordance with its terms.

 

59

 

ARTICLE SIX

 

THE TRUSTEE

 

Section 601.                         Certain
Rights of Trustee.

 

Subject to Sections 315(a) through 315(d) of
the Trust Indenture Act:

 

(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 reasonably 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 a Company Order (in each case, 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 shall 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 or pursuant to this Indenture at the request or direction of
any of the Holders of Securities of any series or any Coupons appertaining
thereto pursuant to this Indenture, unless such Holders shall have offered to
the Trustee security or indemnity reasonably satisfactory to the Trustee
against the costs, fees and 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, coupon or other
paper or document, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit, and, if
the Trustee shall 

 

60

 

determine to make such further
inquiry or investigation, it shall be entitled to examine, during business
hours and upon reasonable notice, the books, records and premises of the
Company, 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; and

 

(8)           No
provision of this Indenture shall require the Trustee for any series of the
Securities 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. Whether or not therein expressly
so provided, every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section.

 

Section 602.                         Notice
of Defaults.

 

Within 90 days after the occurrence of any default
hereunder with respect to the Securities of any series, the Trustee shall
transmit by mail to all Holders of Securities of such series entitled to
receive reports pursuant to Section 703(3), 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, if any), or interest, if any, on, or Additional Amounts or any sinking
fund installment with respect to, any Security of such series, the Trustee
shall be protected in withholding such notice if and so long as the board of
directors, the executive committee or a trust committee of directors and/or
Responsible Officers of the Trustee in good faith determine that the
withholding of such notice is in the best interest of the Holders of Securities
and Coupons of such series; and provided,
further, that in the case of any default of the character specified in Section 501(5) or
501(11) with respect to Securities of such series, no such notice to Holders
shall be given until at least 30 days after the occurrence thereof. For the
purpose of this Section, the term “default” means any event which is, or after
notice or lapse of time or both would become, an Event of Default with respect
to Securities of such series.

 

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 

 

61

 

to the validity or sufficiency of this
Indenture or of the Securities or the 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 and that the
statements made by it in a Statement of Eligibility on Form T-1 supplied
to the Company are true and accurate, subject to the qualifications set forth
therein. Neither the Trustee nor any Authenticating Agent shall be accountable
for the use or application by the Company of the Securities or the proceeds
thereof.

 

Section 604.                         May Hold
Securities.

 

The Trustee, any Authenticating Agent, any Paying
Agent, any Security Registrar or any other Person that may be an agent of the
Trustee or the Company, in its individual or any other capacity, may become the
owner or pledgee of Securities or Coupons and, subject to Sections 310(b) and
311 of the Trust Indenture Act, may otherwise deal with the Company with the
same rights it would have if it were not Trustee, Authenticating Agent, Paying
Agent, Security Registrar or such other Person.

 

Section 605.                         Money
Held in Trust.

 

Except as provided in Section 403 and Section 1003,
money held by the Trustee in trust hereunder need not be segregated from other
funds except to the extent required by law and shall be held uninvested. The
Trustee shall be under no liability for interest on any money received by it
hereunder except as otherwise agreed in writing 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 the Trustee hereunder (which compensation shall not be limited by any
provision of law in regard to the compensation of a trustee of an express
trust);

 

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

 

(3)           to
indemnify the Trustee and its agents for, and to hold them harmless against,
any loss, liability or reasonable expense (including, without limitation,

 

62

 

the reasonable fees and
disbursements of the Trustee’s agents, legal counsel, accountants and experts)
incurred without negligence or bad faith on their part, arising out of or in
connection with the acceptance or administration of the trust or trusts
hereunder, including the reasonable costs and expenses of defending themselves
against any claim or liability in connection with the exercise or performance
of any of their powers or duties hereunder, except to the extent that any such
loss, liability or expense was due to the Trustee’s negligence or bad faith.

 

As security for the performance of the obligations
of the Company under this Section, the Trustee shall have a lien prior to the
Securities of any series 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 interest on or any Additional Amounts with respect to Securities or
any Coupons appertaining thereto.

 

Any compensation or expense incurred by the Trustee
after a default specified by Section 501(8), (9) or (10) is
intended to constitute an expense of administration under any then applicable
bankruptcy or insolvency law. “Trustee” for purposes of this Section 606 shall
include any predecessor Trustee but the negligence or bad faith of any Trustee
shall not affect the rights of any other Trustee under this Section 606.
The provisions of this Section 606 shall, to the extent permitted by law,
survive any termination of this Indenture (including, without limitation,
termination pursuant to any Bankruptcy Laws) and the resignation or removal of
the Trustee.

 

Section 607.                         Corporate
Trustee Required; Eligibility.

 

(1)           There
shall at all times be a Trustee hereunder that is a Corporation, organized and
doing business under the laws of the United States of America, any state
thereof or the District of Columbia, eligible under Section 310(a)(1) of
the Trust Indenture Act to act as trustee under an indenture qualified under the
Trust Indenture Act and that has a combined capital and surplus (computed in
accordance with Section 310(a)(2) of the Trust Indenture Act) of at
least $50,000,000 subject to supervision or examination by Federal or state
authority. 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.

 

(2)           The
following indenture shall be considered specifically described herein for
purposes of clause (i) of the proviso contained in Section 310(b)(1) of
the Trust Indenture Act: Indenture dated as of July 23, 2007 among the
Company, KKR Financial Corp. and Wells Fargo Bank, National Association, as
trustee; and, pursuant to Section 310(b)(1)(C)(i) of the Trust
Indenture Act, unless otherwise ordered by the Commission, an Event of Default
or default by the Company under 

 

63

 

this Indenture will not
disqualify the Trustee under this Indenture because it is a trustee under such
other indenture.

 

Section 608.                         Resignation and
Removal; Appointment of Successor.

 

(1)           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 pursuant to Section 609.

 

(2)           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 the instrument of
acceptance by a successor Trustee required by Section 609 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 with respect to such
series.

 

(3)           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 the Company.

 

(4)           If at any
time:

 

(a)           the Trustee shall fail to
comply with the obligations imposed upon it under Section 310(b) of
the Trust Indenture Act with respect to Securities of any series after written
request therefor by the Company or any Holder of a Security of such series who
has been a bona fide Holder of a Security of such series for at least six
months, or

 

(b)           the Trustee shall cease to
be eligible under Section 607 and shall fail to resign after written
request therefor by the Company or any such Holder, or

 

(c)           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 with respect to
all Securities or the Securities of such series, or (ii) subject to Section 315(e) of
the Trust Indenture Act, 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 removal of the Trustee with respect to all Securities of
such series and the appointment of a successor Trustee or Trustees.

 

(5)           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 

 

64

 

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) and shall comply with the applicable requirements of Section 609.
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 in accordance with the
applicable requirements of Section 609, 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
required by Section 609, 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 the
Securities of such series.

 

(6)           The
Company shall give notice of each resignation and each removal of the Trustee
with respect to the Securities of any series and each appointment of a
successor Trustee with respect to the Securities of any series by mailing
written notice of such event by first-class mail, postage prepaid, to the
Holders of Registered Securities, if any, of such series as their names and
addresses appear in the Security Register and, if Securities of such series are
issued as Bearer Securities, by publishing notice of such event once in an
Authorized Newspaper in each Place of Payment located outside the United
States. 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.

 

(1)           Upon the
appointment hereunder of any successor Trustee with respect to all Securities,
such successor Trustee so appointed shall execute, acknowledge and deliver to
the Company and 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
hereunder of the retiring Trustee; but, on the request of the Company or such
successor Trustee, such retiring Trustee, upon payment of its charges, shall
execute and deliver an instrument transferring to such successor Trustee all
the rights, powers and trusts of the retiring Trustee and, subject to Section 1003,
shall 

 

65

 

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.

 

(2)           Upon the
appointment hereunder of any successor Trustee with respect to the Securities
of one or more (but not all) series, the Company, the retiring Trustee and such
successor Trustee shall execute and deliver an indenture supplemental hereto
wherein each successor Trustee shall accept such appointment and which (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, such 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, 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 that no
Trustee shall be responsible for any notice given to, or received by, or any
act or failure to act on the part of any other Trustee hereunder, 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, such retiring Trustee shall have no further responsibility for the
exercise of rights and powers or for the performance of the duties and
obligations vested in the Trustee under this Indenture with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates other than as hereinafter expressly set forth, 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 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 such successor
Trustee, such retiring Trustee, upon payment of its charges with respect to the
Securities of that or those series to which the appointment of such successor
relates and subject to Section 1003 shall duly assign, transfer and
deliver to such successor Trustee, to the extent contemplated by such
supplemental indenture, the 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, subject to its claim, if any,
provided for in Section 606.

 

66

 

(3)           Upon
request of any Person appointed hereunder as a 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 (1) or (2) of this Section, as the case may
be.

 

(4)           No Person
shall accept its appointment hereunder as a successor Trustee unless at the
time of such acceptance such successor Person 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 that such Corporation shall otherwise be qualified and eligible under
this Article), without the execution or filing of any paper or any further act
on the part of any of the parties hereto. In case any Securities shall have
been authenticated but not delivered by the Trustee then in office, any such
successor to such authenticating Trustee may adopt such authentication and
deliver the Securities so authenticated with the same effect as if such
successor Trustee had itself authenticated such Securities. In case any
Securities shall not have been authenticated by such predecessor Trustee, any
such successor Trustee may authenticate and deliver such Securities in either
its own name or that of its predecessor Trustee.

 

Section 611.                         Appointment
of Authenticating Agent.

 

The Trustee may appoint one or more Authenticating
Agents acceptable to the Company with respect to one or more series of
Securities which shall be authorized to act on behalf of the Trustee to
authenticate Securities of that or those series issued upon original issue,
exchange, registration of transfer, partial redemption, partial repayment,
partial conversion or exchange for Common Shares or other securities or
property, or pursuant to Section 306, and Securities so authenticated
shall be entitled to the benefits of this Indenture and shall be valid and
obligatory for all purposes as if authenticated by the Trustee hereunder.
Wherever reference is made in this Indenture to the authentication and delivery
of Securities by the Trustee or the Trustee’s certificate of authentication,
such reference shall be deemed to include authentication and delivery on behalf
of the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent.

 

Each Authenticating Agent shall be acceptable to the
Company and, except as provided in or pursuant to this Indenture, shall at all
times be a 

 

67

 

Corporation that would be permitted by the
Trust Indenture Act to act as trustee under an indenture qualified under the
Trust Indenture Act, is authorized under applicable law and by its charter to
act as an Authenticating Agent and has a combined capital and surplus (computed
in accordance with Section 310(a)(2) of the Trust Indenture Act) of
at least $50,000,000. If at any time an Authenticating Agent shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect specified in this Section.

 

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

 

An Authenticating Agent may resign at any time by
giving written notice thereof to the Trustee and the Company. The Trustee may
at any time terminate the agency of an Authenticating Agent by giving written
notice thereof to such Authenticating Agent and the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall (i) mail written
notice of such appointment by first-class mail, postage prepaid, to all Holders
of Registered Securities, if any, of the series with respect to which such
Authenticating Agent shall serve, as their names and addresses appear in the
Security Register, and (ii) if Securities of the series are issued as
Bearer Securities, publish notice of such appointment at least once in an
Authorized Newspaper in the place where such successor Authenticating Agent has
its principal office if such office is located outside the United States. 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.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.

 

The Company agrees to pay each Authenticating Agent
from time to time reasonable compensation for its services under this Section.
If the Trustee makes such payments, it shall be entitled to be reimbursed for
such payments, subject to the provisions of Section 606.

 

68

 

The provisions of Sections 308, 603 and 604 shall be
applicable to each Authenticating Agent.

 

If an Authenticating Agent is appointed with respect
to one or more series of Securities 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 in substantially the following form:

 

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

 

	
   

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION, As Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  As
  Authenticating Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  

 

If all of the Securities of any series may not be
originally issued at one time, and if the Trustee does not have an office
capable of authenticating Securities upon original issuance located in a Place
of Payment where the Company wishes to have Securities of such series
authenticated upon original issuance, the Trustee, if so requested in writing
(which writing need not be accompanied by or contained in an Officers’
Certificate of the Company), shall appoint in accordance with this Section an
Authenticating Agent having an office in a Place of Payment designated by the
Company with respect to such series of Securities.

 

ARTICLE
SEVEN

 

HOLDERS
LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

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

 

In accordance with Section 312(a) of the
Trust Indenture Act, the Company shall furnish or cause to be furnished to the
Trustee

 

(1)           semi-annually
with respect to Securities of each series not later than 15 days after each
Regular Record Date or upon such other dates as are set forth in or 

 

69

 

pursuant to the Board Resolution
or indenture supplemental hereto authorizing such series, a list, in each case
in such form as the Trustee may reasonably require, of the names and addresses
of Holders as of the applicable date, and

 

(2)           at such
other times as the Trustee may request in writing, within 30 days after the
receipt by the 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.

 

Section 702.                         Preservation
of Information; Communications to Holders.

 

The Trustee shall comply with the obligations
imposed upon it pursuant to Section 312 of the Trust Indenture Act. 

 

Every Holder of Securities or Coupons, by receiving
and holding the same, agrees with the Company and the Trustee that none of the
Company, the Trustee, any Paying Agent or any Security Registrar shall be held
accountable by reason of the disclosure of any such information as to the names
and addresses of the Holders of Securities in accordance with Section 312(c) of
the Trust Indenture Act, regardless of the source from which such information
was derived, and that the Trustee shall not be held accountable by reason of
mailing any material pursuant to a request made under Section 312(b) of
the Trust Indenture Act.

 

Section 703.                         Reports
by Trustee.

 

(1)           Within 60
days after May 15 of each year commencing with the first May 15
following the first issuance of Securities pursuant to Section 301, if
required by Section 313(a) of the Trust Indenture Act, the Trustee
shall transmit, pursuant to Section 313(c) of the Trust Indenture
Act, a brief report dated as of such May 15 with respect to any of the
events specified in said Sections 313(a) and 313(b)(2) which may have
occurred since the later of the immediately preceding May 15 and the date
of this Indenture.

 

(2)           The
Trustee shall transmit the reports required by Section 313(a) of the
Trust Indenture Act at the times specified therein.

 

(3)           Reports
pursuant to this Section shall be transmitted in the manner and to the
Persons required by Sections 313(c) and 313(d) of the Trust Indenture
Act.

 

Section 704.                         Reports
by Company.

 

The Company, pursuant to Section 314(a) of
the Trust Indenture Act, shall:

 

70

 

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

 

(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
within 30 days after the filing thereof with the Trustee, in the manner and to
the extent provided in Section 313(c) of the Trust Indenture Act,
such summaries of any information, documents and reports required to be filed
by the 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.

 

ARTICLE
EIGHT

 

CONSOLIDATION,
MERGER AND SALES

 

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

 

The Company shall not, in any transaction or series
of related transactions, consolidate with, or sell, lease or convey all or
substantially all of its property and assets to, or merge with or into, any
Person unless:

 

(1)           either (A) the
Company shall be the continuing Person (in the case of a merger) or (B) the
successor Person (if other than the Company) formed by or resulting from the
consolidation or merger or which shall have received the transfer of assets
shall be an entity organized and existing under the laws of the United States
of America, any state thereof or the District of Columbia and shall expressly
assume the due and punctual payment of the principal of, premium, if any, and
interest, if any, on, and Additional Amounts, if any, with respect to, all
Securities Outstanding under this Indenture and the due and punctual
performance 

 

71

 

and observance of all covenants
and conditions in such Outstanding Securities and this Indenture to be
performed or satisfied by the Company (including, without limitation, the
obligation to convert or exchange any Securities that are convertible into or
exchangeable for other securities or property in accordance with the provisions
of such Securities and this Indenture) by a supplemental indenture reasonably
satisfactory in form to the Trustee;

 

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

 

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

 

Section 802.                         Successor
Person Substituted for Company.

 

In the case of any such consolidation, sale, lease,
conveyance or merger in which the Company is not the continuing entity and upon
execution and delivery by the successor Person of the supplemental indenture
described in Section 801, such successor Person shall succeed to, and be
substituted for, the Company and may exercise every right and power of, the
Company under this Indenture with the same effect as if such successor Person
had been named as the Company herein, and the predecessor Company shall be
automatically released and discharged from all obligations and covenants under
this Indenture, the Securities and the Coupons.

 

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 reasonably 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

 

72

 

(2)           to add to
the covenants of the Company for the benefit of the Holders of all or any
series of Securities (as shall be specified in such supplemental indenture or
indentures) or to surrender any right or power herein conferred upon the
Company with respect to all or any series of Securities issued under this
Indenture (as shall be specified in such supplemental indenture or indentures);
or

 

(3)           to add to
or change any of the provisions of this Indenture to facilitate the issuance of
Bearer Securities, to provide that Bearer Securities may be registrable as to
principal, to change or eliminate any restrictions on the payment of principal
of, any premium or interest on or any Additional Amounts with respect to
Securities, to permit Bearer Securities to be issued in exchange for Registered
Securities, to permit Bearer Securities to be exchanged for Bearer Securities
of other authorized denominations or to permit or facilitate the issuance of
Securities in uncertificated or global form, provided any such action shall not
adversely affect the interests of the Holders of Securities of any series then
Outstanding or any Coupons appertaining thereto; or

 

(4)           to
establish the form or terms of Securities of any series and any Coupons
appertaining thereto as permitted by Sections 201 and 301, including, without
limitation, any conversion or exchange provisions applicable to Securities
which are convertible into or exchangeable for other securities or property,
and to make any deletions from or additions or changes to this Indenture in
connection with any matters referred to in this clause (4) (provided that
any such deletions, additions and changes shall not be applicable to any other
series of Securities then Outstanding); or

 

(5)           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, pursuant to the requirements of Section 609; or

 

(6)           to cure
any ambiguity or to correct or supplement any provision herein which may be
defective or which may be 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 adversely affect the interests of the Holders of
Securities of any series then Outstanding or any Coupons appertaining thereto
in any material respect; or

 

(7)           to add any
additional Events of Default with respect to all or any series of Securities
(as shall be specified in such supplemental indenture); or

 

(8)           to
supplement any of the provisions of this Indenture to such extent as shall be
necessary to permit or facilitate the defeasance, covenant defeasance and/or
satisfaction and discharge of any series of Securities pursuant to Article 

 

73

 

Four, provided that any such
action shall not adversely affect the interests of any Holder of a Security of
such series and any Coupons appertaining thereto or any other Security or
Coupon in any material respect; or

 

(9)           to add
guarantees or guarantors in respect of all or any Securities under this
Indenture, and to evidence the release and discharge of any guarantor from its
obligations under its guarantee of any or all Securities and its obligations
under this Indenture in respect of any or all Securities in accordance with the
terms of this Indenture; or

 

(10)         to secure
or, if applicable, to provide additional security for all or any Securities
issued under this Indenture and all or any guarantees, if any, of all or any
such Securities and to provide for any and all matters relating thereto, and to
provide for the release of any collateral as security for all or any Securities
or all or any guarantees, if any, of all or any Securities in accordance with
the terms of this Indenture; or

 

(11)         to make
any change in this Indenture or any Securities to conform the terms thereof to
the terms reflected in any prospectus, prospectus supplement, offering
memorandum or similar offering document used in connection with the initial
offering or sale of any Securities; or

 

(12)         in the
case of any series of Securities which are convertible into or exchangeable for
Common Shares or other securities or property, to safeguard or provide for the
conversion or exchange rights, as the case may be, of such Securities in the
event of any reclassification or change of outstanding Common Shares (or any
other securities of the Company into which such Securities are convertible or
for which such Securities are exchangeable), or in the event of any merger,
consolidation, statutory share exchange or combination of the Company with or
into another Person or any sale, lease, assignment, transfer, disposition or
other conveyance of all or substantially all of the properties and assets of
the Company to any other Person or other similar transactions, if expressly
required by the terms of such series of Securities established pursuant to Section 301;
or

 

(13)         to amend
or supplement any provision contained herein, in any supplemental indenture or
in any Securities (which amendment or supplement may apply to one or more
series of Securities or to one or more Securities within any series as
specified in such supplemental indenture), provided that
such amendment or supplement does not apply to any Outstanding Security issued
prior to the date of such supplemental indenture and entitled to the benefits
of such provision.

 

74

 

Section 902.                         Supplemental
Indentures with Consent of Holders.

 

With the consent of the Holders of not less than a
majority in principal amount of the Outstanding Securities of each series
affected by such supplemental indenture, by Act of said Holders delivered to
the Company and the Trustee, the Company (when authorized by 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 the
Securities of such series or of modifying in any manner the rights of the
Holders of Securities of such series under this Indenture; provided, that no
such supplemental indenture, without the consent of the Holder of each
Outstanding Security affected thereby, shall

 

(1)           change
the Stated Maturity of the principal of, or premium, if any, or any installment
of interest, if any, on, or any Additional Amounts, if any, with respect to,
any Security, or reduce the principal amount thereof or the premium, if any,
thereon or the rate (or modify the calculation of such rate) of interest
thereon, or reduce the amount payable upon redemption thereof, whether such
redemption is mandatory or at the option of the Company, or upon repayment
thereof at the option of the Holder, or reduce any Additional Amounts payable
with respect thereto, or change the obligation of the Company to pay Additional
Amounts pursuant to Section 1004 (except as contemplated by Section 801(1) and
permitted by Section 901(1)), or reduce the amount of the principal of any
Original Issue Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 502
or the amount thereof provable in bankruptcy pursuant to Section 504, or
adversely affect the right of repayment at the option of any Holder as
contemplated by Article Thirteen, or change the Place of Payment where or
the Currency in which the principal of, any premium or interest on, or any
Additional Amounts with respect to any Security is payable, or impair the right
to institute suit for the enforcement of any such payment on or after the
Stated Maturity thereof (or, in the case of redemption, on or after the
Redemption Date or, in the case of repayment pursuant to Article Thirteen
at the option of the Holder, on or after the date for repayment) in each case
as such Stated Maturity, Redemption Date or date for repayment may, if applicable,
be extended in accordance with the terms of such Security or any Coupon
appertaining thereto, or in the case of any Security which is convertible into
or exchangeable for other securities or property, impair the right to institute
suit to enforce the right to convert or exchange such Security in accordance
with its terms, or

 

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

 

75

 

and their consequences) provided
for in Section 513 or 1006 of this Indenture, or reduce the requirements
of Section 1504 for quorum or voting, or

 

(3)           make any
change that adversely affects the right, if any, to convert or exchange any
Security for Common Shares or other securities or property in accordance with
its terms, or

 

(4)           modify
any of the provisions of this Section, Section 513 or Section 1006,
except to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent
of the Holder of each Outstanding Security affected thereby.

 

A supplemental indenture which changes or eliminates
any covenant or other provision of this Indenture which shall have 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.

 

Anything in this Indenture to the contrary
notwithstanding, if more than one series of Securities is Outstanding, the
Company shall be entitled to enter into a supplemental indenture under this Section 902
with respect to any one or more series of Outstanding Securities without entering
into a supplemental indenture with respect to any other series of Outstanding
Securities.

 

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

 

Section 903.                         Execution
of Supplemental Indentures.

 

As a condition to executing, or accepting the
additional trusts created by, any supplemental indenture permitted by this Article or
the modifications thereby of the trust created by this Indenture, the Trustee
shall be entitled to receive, and (subject to Sections 315(a) through 315(d) of
the Trust Indenture Act) shall be fully protected in relying upon, an Officers’
Certificate to the effect that the execution of such supplemental indenture is
authorized or permitted by this Indenture and that such supplemental indenture
has been duly authorized, executed and delivered by, and is a valid, binding
and enforceable obligation of, the Company, subject to customary exceptions.
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.

 

76

 

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 a Security theretofore or thereafter
authenticated and delivered hereunder and of any Coupon appertaining thereto
shall be bound thereby.

 

Section 905.                         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.

 

Section 906.                         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.

 

ARTICLE
TEN

 

COVENANTS

 

Section 1001.                       Payment
of Principal, Premium, Interest and Additional Amounts.

 

The Company covenants and agrees for the benefit of
the Holders of the Securities of each series that it will duly and punctually
pay the principal of, any premium and interest on and any Additional Amounts
with respect to the Securities of such series, whether payable in cash, Common
Shares or other securities or property, in accordance with the terms thereof,
any Coupons appertaining thereto and this Indenture. Any interest due on any
Bearer Security on or before the Maturity thereof, and any Additional Amounts
payable with respect to such interest, shall be payable only upon presentation
and surrender of the Coupons appertaining thereto for such interest as they
severally mature.

 

Section 1002.                       Maintenance
of Office or Agency.

 

The Company shall maintain in each Place of Payment
for any series of Securities an Office or Agency where Securities of such
series (but not Bearer 

 

77

 

Securities, except as otherwise provided
below, unless such Place of Payment is located outside the United States) may
be presented or surrendered for payment, where Securities of such series may be
surrendered for registration of transfer or exchange, where Securities of such
series that are convertible or exchangeable may be surrendered for conversion
or exchange, and where notices and demands to or upon the Company in respect of
the Securities of such series relating thereto and this Indenture may be
served. If Securities of a series are issuable as Bearer Securities, the
Company shall maintain, subject to any laws or regulations applicable thereto,
an Office or Agency in a Place of Payment for such series which is located
outside the United States where Securities of such series and any Coupons
appertaining thereto may be presented and surrendered for payment; provided, however, that
if the Securities of such series are listed on any stock exchange located
outside the United States and such stock exchange shall so require, the Company
shall maintain a Paying Agent in a city located outside the United States
required by such stock exchange, so long as the Securities of such series are
listed on such exchange. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of 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
such series and any Coupons appertaining thereto may be presented and surrendered
for payment at the place specified for the purpose with respect to such
Securities as provided in or pursuant to this Indenture, and the Company hereby
appoints the Trustee as its agent to receive all such presentations,
surrenders, notices and demands.

 

Except as otherwise provided in or pursuant to this
Indenture, no payment of principal, premium, interest or Additional Amounts
with respect to Bearer Securities shall be made at any Office or Agency 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, if
amounts owing with respect to any Bearer Securities shall be payable in
Dollars, payment of principal of, any premium or interest on and any Additional
Amounts with respect to any such Security may be made at the Corporate Trust
Office of the Trustee or any Office or Agency designated by the Company in the
United States designated for such purpose, if (but only if) payment of the full
amount of such principal, premium, interest or Additional Amounts at all
offices outside the United States maintained for such purpose by the Company in
accordance with this Indenture is illegal or effectively precluded by exchange
controls or other similar restrictions (in which case the Company shall so
notify the Trustee in writing).

 

The Company may also 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 such purposes and may from time
to time rescind

 

78

 

such designations; provided,
however, that no such designation or
rescission shall in any manner relieve the Company of its obligations to maintain
an Office or Agency in each Place of Payment for Securities of any series for
such purposes. The Company shall 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 provided in or pursuant to this
Indenture (including, without limitation, pursuant to Section 301 with
respect to the Securities of any series), the Company hereby designates the
place where the Trustee shall from time to time maintain its Corporate Trust
Office as the Company’s Office or Agency for such purpose and initially
appoints the Trustee as the Security Registrar for each series of Securities
and, if the Securities of any series are convertible into or exchangeable for Common
Shares or other securities or property, initially appoints the Trustee as
conversion or exchange agent, as the case may be, for the Securities of such
series. The Company may subsequently appoint a different or additional Office
or Agency and, as provided in Section 305, may remove and replace from
time to time the Security Registrar.

 

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

 

If the Company shall at any time act as its own
Paying Agent with respect to any series of Securities, it shall, on or before
each due date of the principal of, any premium or interest on, or any
Additional Amounts with respect to any of the Securities of such series,
segregate and hold in trust for the benefit of the Persons entitled thereto a
sum in the Currency or Currencies in which the Securities of such series are
payable sufficient to pay the principal, any premium, interest and Additional
Amounts, as the case may be, so becoming due until such sums shall be paid to
such Persons or otherwise disposed of as herein provided, and shall 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, it shall, on or prior to each due date of
the principal of, or any premium or interest on or any Additional Amounts with
respect to, any Securities of such series, deposit with any Paying Agent a sum
(in the Currency or Currencies described in the preceding paragraph) sufficient
to pay the principal, premium, interest and Additional Amounts, as the case may
be, so becoming due, such sum to be held in trust for the benefit of the
Persons entitled thereto, 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 shall 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 shall:

 

79

 

(1)           hold all
sums held by it for the payment of the principal of, any premium or interest on
or any Additional Amounts with respect to Securities of such series in trust
for the benefit of the Persons entitled thereto until such sums shall be paid
to such Persons or otherwise disposed of as provided in or pursuant to this
Indenture;

 

(2)           give the
Trustee notice of any default by the Company (or any other obligor upon the
Securities of such series) in the making of any payment of principal, any
premium or interest on or any Additional Amounts with respect to the Securities
of such 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.

 

To the extent that the terms of any
Securities established pursuant to Section 301 provide that any principal
of, or premium or interest, if any, on or any Additional Amounts with respect
to any such Securities is or may be payable in Common Shares or other
securities or property, then the provisions of this Section 1003 shall
apply, mutatis  mutandis, to such Common Shares or other
securities or property.

 

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 terms 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 herein or pursuant
hereto, 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, any premium or
interest on or any Additional Amounts with respect to any Security of any
series or any Coupon appertaining thereto and remaining unclaimed for two years
after such principal or such premium or interest or Additional Amount shall
have become due and payable shall be paid to the Company on Company Request, or
(if then held by the Company) shall be discharged from such trust; and the
Holder of such Security or any Coupon appertaining thereto shall thereafter, as
an unsecured general creditor, look only to the Company for payment thereof,
and all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Company as trustee thereof, shall thereupon
cease; provided, however,
that the Trustee or such Paying Agent, before being required to make any such
repayment, may, not later than 30 days after the Company’s request for 

 

80

 

such repayment, at the expense of the Company
cause to be published once, in an Authorized Newspaper in each Place of Payment
for such series or to be mailed to Holders of Registered Securities of such
series, or both, 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 or mailing nor shall it be earlier than two years after such
principal and any premium or interest or Additional Amounts shall have become
due and payable, any unclaimed balance of such money then remaining will be
repaid to the Company.

 

Section 1004.                                                                     Additional
Amounts.

 

If any Securities of a series provide for the
payment of Additional Amounts by the Company, the Company agrees to pay to the
Holder of any such Security or any Coupon appertaining thereto Additional
Amounts as provided in or pursuant to this Indenture or such Securities.
Whenever in this Indenture there is mentioned, in any context, the payment of
the principal of or any premium or interest on, or in respect of, any Security
of any series or any Coupon, such mention shall be deemed to include mention of
the payment of Additional Amounts provided by the terms of such series
established hereby or pursuant hereto to the extent that, in such context,
Additional Amounts are, were or would be payable in respect thereof pursuant to
such terms, and express mention of the payment of Additional Amounts (if
applicable) in any provision hereof shall not be construed as excluding
Additional Amounts in those provisions hereof where such express mention is not
made.

 

Section 1005.                                                                     Legal
Existence.

 

Subject to Article Eight, the Company shall do
or cause to be done all things necessary to preserve and keep in full force and
effect its legal existence as any type of Corporation (it being understood that
nothing in this Section 1005 shall prohibit the Company from changing its
legal form from one type of Corporation to another type of Corporation).

 

Section 1006.                                                                     Waiver
of Certain Covenants.

 

The Company may omit in any particular instance to
comply with any term, provision or condition set forth in Sections 801, 802,
1002, 1003 or 1005 with respect to the Securities of any series and, if expressly
provided pursuant to Section 301 with respect to the Securities of such
series, any additional covenants applicable to the Securities of such series if
before the time for such compliance the Holders of at least a majority in
principal amount of the Outstanding Securities of such series, by Act of such
Holders, either shall waive such compliance in such instance or generally shall
have waived compliance with such term, provision or condition, but no such
waiver shall extend to or affect such term, provision or condition except to
the extent so expressly waived, and, until 

 

81

 

such waiver shall become effective, the
obligations of the Company and the duties of the Trustee in respect of any such
term, provision or condition shall remain in full force and effect.

 

Section 1007.                                                                     Company
Statement as to Compliance.

 

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

 

ARTICLE ELEVEN

 

REDEMPTION OF SECURITIES

 

Section 1101.                                                                     Applicability
of Article.

 

Redemption of Securities of any series at the option
of the Company as permitted or required by the terms of such Securities shall
be made in accordance with the terms of such Securities and (except as
otherwise provided herein or pursuant hereto) 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 60 days prior to the Redemption Date
fixed by the Company (unless a shorter notice shall be satisfactory to the
Trustee), notify the Trustee of such Redemption Date and of the principal
amount of Securities of such series to be redeemed and, in the event that the
Company shall determine that the Securities of any series to be redeemed shall
be selected from Securities of such series having the same issue date, interest
rate or interest rate formula, Stated Maturity and other terms (the “Equivalent
Terms”), the Company shall notify the Trustee of such Equivalent Terms.

 

In the case of any redemption of Securities (A) prior
to the expiration of any restriction on such redemption provided in the terms
of such Securities or elsewhere in this Indenture or (B) pursuant to an
election of the Company which is subject to a condition specified in the terms
of such Securities or elsewhere in

 

82

 

this Indenture, the Company shall furnish to
the Trustee an Officers’ Certificate evidencing compliance with such
restriction or condition.

 

Section 1103.                                                                     Selection
by Trustee of Securities to be Redeemed.

 

If less than all of the Securities of any series are
to be redeemed or if less than all of the Securities of any series with
Equivalent 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 or from the Outstanding
Securities of such series with Equivalent Terms, as the case may be, 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 of the principal amount of Registered Securities of such series; provided, however, that
no such partial redemption shall reduce the portion of the principal amount of
a Security of such series not redeemed to less than the minimum denomination
for a Security of such series established herein or pursuant hereto.

 

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 Securities redeemed or to be redeemed only in
part, to the portion of the principal of such Securities which has been or is
to be redeemed.

 

Unless otherwise specified in or pursuant to this
Indenture or the Securities of any series or in a notice of redemption, if any
Security selected for partial redemption is converted or exchanged for Common
Shares or other securities or property in part before termination of the
conversion or exchange right with respect to the portion of the Security so
selected, the converted or exchanged portion of such Security shall be deemed
(so far as may be) to be the portion selected for redemption. Securities which have
been converted or exchanged during a selection of Securities to be redeemed
shall be treated by the Trustee as Outstanding for the purpose of such
selection.

 

Section 1104.                                                                     Notice
of Redemption.

 

Notice of redemption shall be given in the manner
provided in Section 106, not less than 30 nor more than 60 days prior to
the Redemption Date, unless a shorter period is specified in the Securities to
be redeemed, to the Holders of Securities to be redeemed. Failure to give
notice by mailing in the manner herein provided to the Holder of any Registered
Securities designated for redemption as 

 

83

 

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 Securities or portions thereof.

 

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

 

All notices of redemption
shall state:

 

(1)           the
Redemption Date,

 

(2)           the
Redemption Price or, if applicable, the manner in which the Redemption Price
will be determined,

 

(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)           that, in
case any Security is to be redeemed in part only, on and after the Redemption
Date, upon surrender of such Security, the Holder of such Security will
receive, without 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 shall become due and payable upon
each such Security or portion thereof to be redeemed, (subject, if applicable,
to the provisos to the first paragraph of Section 1106), and, if
applicable, that interest thereon shall cease to accrue on and after said date,

 

(6)           the place
or places 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,

 

(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 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 the

 

84

 

Redemption Date pursuant to Section 305
or otherwise, the last date, as determined by the Company, on which such
exchanges may be made,

 

(10)         in the
case of Securities of any series that are convertible or exchangeable into
Common Shares or other securities or property, the then current conversion or
exchange price or rate, the date or dates on which the right to convert or
exchange the principal of the Securities of such series to be redeemed will
commence or terminate, as applicable, and the place or places where and the
Persons to whom such Securities may be surrendered for conversion or exchange,

 

(11)         the CUSIP
number of such Securities, if any, and

 

(12)         if the
Redemption Price or any portion thereof shall be payable, at the option of the
Company, in cash or in Common Shares or other securities or property (or a
combination thereof), a statement as to whether the Company has elected to pay
the Redemption Price in cash or Common Shares or other securities or property
or a combination thereof and, if applicable, the portion of the Redemption
Price that is to be paid in cash, Common Shares or other securities or
property.

 

A notice of redemption published as contemplated by Section 106
need not identify particular Registered Securities to be redeemed.

 

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 respect to the Securities of any series called for
redemption pursuant to Section 1104, 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 applicable
Currency or, if the Redemption Price shall be payable in cash, securities
and/or other property, an amount of money in the applicable Currency,
securities and/or other property, as the case may be, sufficient to pay the
Redemption Price of all such Securities or portions thereof which are to be
redeemed on that date, except that, if the Securities of such series are
convertible or exchangeable into Common Shares or other securities or property,
no such deposit shall be required (unless otherwise specified pursuant to Section 301
with respect to the Securities of such series) with respect to any such
Securities (or portions thereof) which have been converted or exchanged prior
to such Redemption Date.

 

85

 

Section 1106.                                                                     Securities
Payable on Redemption Date.

 

Notice of redemption having been given as aforesaid,
the Securities so to be redeemed (except, in the case of Securities which are
convertible or exchangeable into Common Shares or other securities or property,
any such Securities which shall have been so converted or exchanged prior to
the applicable Redemption Date) shall, on the Redemption Date, become due and
payable at the Redemption Price therein specified, and from and after such date
(unless the Company shall default in the payment of the Redemption Price) such
Securities shall 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; provided,
however, that, except as otherwise
provided in or pursuant to this Indenture or the Bearer Securities of such
series, installments of interest on Bearer Securities whose Stated Maturity is
on or prior to the Redemption Date shall be payable only upon presentation and
surrender of Coupons for such interest (at an Office or Agency located outside
the United States except as otherwise provided in Section 1002), and provided, further, that,
except as otherwise specified in or pursuant to this Indenture or the
Registered Securities of such series, 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 Regular Record
Dates therefor 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 or, at the option of the Company, after payment to the Trustee for the
benefit of the Company of, 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 from and against any and all loss, liability or expense. 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 any interest or Additional Amounts represented by Coupons shall be payable
only upon presentation and surrender of those Coupons at an Office or Agency
for such Security located outside of the United States except as otherwise
provided in Section 1002.

 

86

 

If any Security called for redemption shall not be
so paid upon surrender thereof for redemption, the principal and any premium,
until paid, shall bear interest from the Redemption Date at the rate prescribed
therefor in the Security or, if no rate is prescribed therefor in the Security,
at the rate of interest, if any, borne by such Security.

 

Section 1107.                                                                     Securities
Redeemed in Part.

 

Any Registered Security which is to be redeemed only
in part shall be surrendered at any Office or Agency for such Security (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 Registered Security or
Securities of the same series, containing identical terms and provisions, 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 Security in global form is so surrendered,
the Company shall, if so requested by the Trustee, execute, and the Trustee
shall authenticate and deliver to the Depository for such Security in global
form as shall be specified in the Company Order with respect thereto to the
Trustee, without service charge, a new Security in global form in a
denomination equal to and in exchange for the unredeemed portion of the
principal of the Security in global form 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 permitted or required in or pursuant to this Indenture or
any Security of such series issued pursuant to this Indenture.

 

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

 

87

 

Section 1202.                                                                     Satisfaction
of Sinking Fund Payments with Securities.

 

The Company may, in satisfaction of all or any part
of any sinking fund payment with respect to the Securities of any series to be
made pursuant to the terms of such Securities (1) deliver Outstanding
Securities of such series (other than any of such Securities previously called
for redemption or any of such Securities in respect of which cash shall have
been released to the Company), 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 series of Securities or
through the application of permitted optional sinking fund payments pursuant to
the terms of such Securities, provided that such Securities have not been
previously so credited. Such Securities shall be received and credited for such
purpose by the Trustee at the Redemption Price specified in such Securities for
redemption through operation of the sinking fund and the amount of such sinking
fund payment shall be reduced accordingly. If as a result of the delivery or
credit of Securities of any series in lieu of cash payments pursuant to this Section 1202,
the principal amount of Securities of such series to be redeemed in order to
exhaust the aforesaid cash payment shall be less than $100,000, the Trustee
need not call Securities of such series for redemption, except upon Company
Request, and such cash payment shall be held by the Trustee or a Paying Agent
and applied to the next succeeding sinking fund payment, provided, however,
that the Trustee or such Paying Agent shall at the request of the Company from
time to time pay over and deliver to the Company any cash payment so being held
by the Trustee or such Paying Agent upon delivery by the Company to the Trustee
of Securities of that series purchased by the Company having an unpaid
principal amount equal to the cash payment requested to be released to the
Company.

 

Section 1203.                                                                     Redemption
of Securities for Sinking Fund.

 

Not less than 75 days prior to each sinking fund
payment date for any series of Securities, the Company shall 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 and the portion thereof, if any, which is to be satisfied by delivering and
crediting of 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 credited and not theretofore delivered. 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 60 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 

 

88

 

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.

 

Securities of any series which are repayable at the
option of the Holders thereof before their Stated Maturity shall be repaid in
accordance with the terms of the Securities of such series. The repayment of
any principal amount of Securities pursuant to such option of the Holder to
require repayment of Securities before their Stated Maturity, for purposes of Section 309,
shall not operate as a payment, redemption or satisfaction of the indebtedness
represented by such Securities unless and until the Company, at its option,
shall deliver or surrender the same to the Trustee with a directive that such
Securities be cancelled. Notwithstanding anything to the contrary contained in
this Section 1301, in connection with any repayment of Securities, the
Company may arrange for the purchase of any Securities by an agreement with one
or more investment bankers or other purchasers to purchase such Securities by
paying to the Holders of such Securities on or before the applicable repayment
date an amount not less than the repayment price payable by the Company on
repayment of such Securities, and the obligation of the Company to pay the
repayment price of such Securities shall be satisfied and discharged to the
extent such payment is so paid by such purchasers.

 

Unless otherwise expressly stated in this Indenture
or pursuant to Section 301 with respect to the Securities of any series or
unless the context otherwise requires, all references in this Indenture to the
repayment of Securities at the option of the Holders thereof (and all
references of like import) shall be deemed to include a reference to the
repurchase or redemption of Securities at the option of the Holders thereof.

 

ARTICLE FOURTEEN

 

SECURITIES IN FOREIGN
CURRENCIES

 

Section 1401.                                                                     Applicability
of Article.

 

Whenever this Indenture provides for (i) any
action by, or the determination of any of the rights of, Holders of Securities
of any series in which

 

89

 

not all of such Securities are denominated in
the same Currency or (ii) any distribution to Holders of Securities of any
series in which not all of such Securities are denominated in the same
Currency, in the absence of any provision to the contrary in or pursuant to
this Indenture or the Securities of such series, any amount in respect of any
Security denominated in a Currency other than Dollars shall be treated for any
such action, determination or distribution as that amount of Dollars that could
be obtained for such amount on such reasonable basis of exchange and as of the
record date with respect to Registered Securities of such series (if any) for
such action, determination or distribution (or, if there shall be no applicable
record date, such other date reasonably proximate to the date of such
distribution) as the Company may specify in a written notice to the Trustee.

 

ARTICLE FIFTEEN

 

MEETINGS OF HOLDERS OF
SECURITIES

 

Section 1501.                                                                     Purposes
for Which Meetings May Be Called.

 

Unless otherwise provided pursuant to Section 301
with respect to the Securities of any series, the provisions of this Article Fifteen
shall be applicable to a series of Securities if (and only if) the terms of
such Securities established pursuant to Section 301 provide that the
Securities of such series shall be issued or issuable, in whole or in part, as
Bearer Securities. A meeting of Holders of Securities of any series issued or
issuable, in whole or in part, as Bearer Securities 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 Act
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.

 

(1)                                  The Trustee may at any time call a meeting of Holders of Securities of
any series issued or issuable, in whole or in part, as Bearer Securities, for
any purpose specified in Section 1501, to be held at such time and at such
place in the Borough of Manhattan, The City of New York, or in London or in
such place outside the United States as the Company shall determine. Notice of
every meeting of Holders of Securities of any such 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 21 nor more than 180 days prior to the date fixed for the
meeting.

 

(2)                                  In case at any time the Company (by or pursuant to a Board Resolution)
or the Holders of at least 33 1/3 % in principal amount of the Outstanding
Securities of any series issued or issuable, in whole or in part, as Bearer
Securities, shall have requested the Trustee to call a meeting of the Holders
of Securities of such 

 

90

 

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
mailed notice of or made the first publication of the notice of such meeting
within 21 days after receipt of such request (whichever shall be required
pursuant to Section 106) 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 in London for such meeting and may call
such meeting for such purposes by giving notice thereof as provided in clause (1) 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 or duly reconvened meeting of Holders of Securities of such series; provided, however, that
if any action is to be taken at such meeting with respect to any request,
demand, authorization, direction, notice, consent, waiver or other action which
this Indenture expressly provides may be given by the Holders of a greater
percentage in principal amount of the Outstanding Securities of a series, the
Persons entitled to at least such greater 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 any
such adjourned meeting, such adjourned meeting may be further adjourned for a
period of not less than 10 days as determined by the chairman of the meeting
prior to the adjournment of such adjourned meeting. Notice of the reconvening
of any adjourned meeting shall be given as provided in Section 1502(1),
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. Notice of the
reconvening of an adjourned meeting shall state expressly the percentage, as
provided above, of the 

 

91

 

principal amount of the Outstanding
Securities of such series which shall constitute a quorum.

 

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 only by the affirmative
vote of the Holders of a majority in principal amount of the Outstanding
Securities of that series; 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 Act which this Indenture expressly provides
may be made, given or taken by the Holders of a specified percentage, which is
less than or more 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 such 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 Coupons appertaining thereto, whether or not such Holders were
present or represented at the meeting.

 

Section 1505.                                                                     Determination
of Voting Rights; Conduct and Adjournment of Meetings.

 

(1)                                  Notwithstanding any other provisions of this Indenture, the Trustee may
make such reasonable regulations as it may deem advisable for any meeting of
Holders of Securities of such 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.

 

(2)                                  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(2), 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

 

92

 

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.

 

(3)                                  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 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. If the Securities of such series
are issuable in minimum denominations of less than $1,000, then a Holder of
such a Security in a principal amount of less than $1,000 shall be entitled to
a fraction of one vote which is equal to the fraction that the principal  amount of such Security bears to $1,000. The chairman of the meeting
shall have no right to vote, except as a Holder of a Security of such series or
proxy.

 

(4)                                  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 triplicate of all votes cast at the meeting. A
record, at least in triplicate, 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 facts 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.

 

93

 

ARTICLE SIXTEEN

 

SECURITY

 

Section 1601.                                                                     Security.

 

If so provided pursuant to Section 301 with
respect to the Securities of any series, the Securities of such series may be
secured by such property, assets or other collateral as may be specified in or
pursuant to Section 301. Any and all terms and provisions applicable to
the security for the Securities of such series shall also be provided in or pursuant
to Section 301, which may include, without limitation, provisions for the
execution and delivery of such security agreements, pledge agreements,
collateral agreements and other similar or related agreements as the Company
may elect and which may provide for the Trustee to act as collateral agent or
in a similar or other capacity. The Trustee shall comply with Sections 313(a)(5) and
(6) and 313(b)(1) of the Trust Indenture Act and the Company shall
comply with Sections 314(b), 314(c) and 314(d) of the Trust Indenture
Act, in each case in respect of any secured Securities that may be outstanding
hereunder from time to time.

 

* * * * *

 

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

 

94

 

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

 

	
   

  	
  KKR
  FINANCIAL HOLDINGS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  MICHAEL R. MCFERRAN

  
	
   

  	
   

  	
  Name:
  Michael R. McFerran

  
	
   

  	
   

  	
  Title:  Chief Operating Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Maddy Hall

  
	
   

  	
   

  	
  Name:
  Maddy Hall

  
	
   

  	
   

  	
  Title:  Vice President

  

 

95

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