Document:

Exhibit 10.6

 

ATLANTIC
POWER HOLDINGS, INC.

THIRD AMENDED AND RESTATED 

LONG-TERM INCENTIVE PLAN

 

RECITALS

 

A.                                    The Board initially adopted the Plan on May 10,
2006, which Plan was then approved by the shareholders of the Issuer on June 7,
2006 and implemented by Atlantic Power Holdings, LLC, the predecessor of
Atlantic Holdings.

 

B.                                    The Board approved an amended and restated Plan
effective April 24, 2007 to reflect certain amendments of an
administrative, non-material nature.

 

C.                                    The independent directors of the Board approved the
terms of the second amended and restated Plan on April 24, 2008, which
amended and restated Plan was then approved by the shareholders of the Issuer
on June 4, 2008 and implemented by Atlantic Power Holdings, LLC.

 

D.                                    The Board approved the terms of this third amended and
restated Plan on January 29, 2010 for use beginning in the Issuer’s 2010
fiscal year.

 

E.                                      The first Financial Statement Approval Date for the
purposes of this Plan shall be March 29, 2010.

 

1.                                      PURPOSE

 

The purpose of the Plan is to align the
interests of Eligible Persons with those of the holders of common shares (“Common Shares”) of Atlantic Power
Corporation (the “Issuer”), to
assist in attracting, retaining and motivating key employees of the Issuer and
its subsidiaries by making a significant portion of the incentive compensation
of key employees directly dependent upon the achievement of key strategic,
financial and operational objectives that are critical to ongoing growth and
profitability of the Issuer.

 

2.                                      DEFINITIONS

 

In this Plan:

 

“2010 Performance Period”
has the meaning set forth in Section 12(a) hereof;

 

“2010 Transition Award”
has the meaning set forth in Section 12(a)(i) hereof;

 

“2011 Transition Award”
has the meaning set forth in Section 12(a)(ii) hereof;

 

“Administrators”
refers to the Compensation Committee of the Board or Person(s) to whom the
Independent Directors delegate their powers hereunder;

 

“Affiliate”
of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such specified Person. For purposes of this definition, “control” (including,
with correlative meanings, the terms “controlling”, “controlled by” and “under
common control with”), as

 

 

used with respect to any Person, means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the
ownership of voting securities, by agreement or otherwise;

 

“Associate”
has the meaning ascribed by the
Securities Act (Ontario);

 

“Atlantic
Holdings”  means Atlantic
Power Holdings, Inc., a U.S. “C” corporation under the laws of the State
of Delaware;

 

“Base Salary”
means the base salary paid by Atlantic Holdings to a Participant for his or her
services, as the same may be amended from time to time;

 

“Board” the
board of directors of the Issuer;

 

“Budget  Date” means the date on which the Board approves the Issuer’s
projection of project distributions and the management and administrative
budget for its upcoming fiscal year;

 

“Business  Day” means any day, other than a Saturday, Sunday, or a day
on which the principal chartered banks located in the Province of Ontario or
the State of Massachusetts are not open for business during normal business
hours;

 

“Cause”
means “cause” as such term is interpreted from time to time by the courts of
Delaware or, where cause is defined in the employment agreement of an Eligible
Person, as defined therein;

 

“CEO” means the
Chief Executive Officer of the Issuer;

 

“Change of Control”
means the occurrence of any of the following:

 

(a)                                  the
sale, lease or transfer to any person or group, in one or a series of related
transactions, of the assets of the Issuer or Atlantic Holdings which assets
generated more than 50% of Atlantic Holdings’ total cash distributions received
from the assets owned, directly or indirectly, by the Issuer in a 12-month
period ended on the last day of the most recent fiscal quarter to any person or
group;

 

(b)                                 the
adoption of a plan related to the liquidation or dissolution of the Issuer or
Atlantic Holdings;

 

(c)                                  the
acquisition by any person or group of a direct or indirect interest in more
than 50% of (i) the Common Shares or the common shares of Atlantic
Holdings; or (ii) the voting power of the Issuer or Atlantic Holding; by
way of purchase, merger, or consolidation or otherwise (other than a creation
of a holding company that does not involve a change in the beneficial ownership
of Atlantic Holdings  as a result
of such transaction);

 

(d)                                 the
merger or consolidation of the Issuer or Atlantic Holdings with or into another
person or the merger of another person into the Issuer or Atlantic Holdings
with the effect that immediately after such transaction the shareholders of the
Issuer or

 

2

 

the holders of common  shares of Atlantic Holdings immediately
prior to such transaction hold, directly or indirectly, less than 50% of the
voting control over the person surviving such merger or consolidation, in each
case other than the creation of a holding company that does not involve a
change in the beneficial ownership of the Issuer or Atlantic Holdings as a
result as such transaction; or

 

(e)                                  the
Issuer or Atlantic Holdings or any of their shareholders enters into any
agreement providing for any of the foregoing, or the date which is 90 days
prior to a definitive announcement by the Issuer or Atlantic Holdings of any of
the foregoing, whichever is earlier, and the transaction contemplated thereby
is ultimately consummated;

 

provided, however, that for the purposes of
this Plan, the sale of any Voting Stock (or equivalent thereof) of the Issuer
(or any successor Person thereto) pursuant to a public offering shall not
constitute a Change of Control;

 

“Code” has the
meaning set forth in Section 13(i) hereof;

 

“Common Share”
means a common share of the Issuer;

 

“Common Share
Compensation Arrangement” means a Common Share option, Common Share
option plan, employee Common Share purchase plan or any other compensation or
incentive mechanism involving the issuance or potential issuance of Common
Shares to directors, managers, officers and employees of the Issuer or its
subsidiaries including an Common Share purchase from treasury which is
financially assisted by the Issuer by way of a loan, guarantee or otherwise;

 

“Common Share Ineligible
Participant” means a Participant
that does not qualify under applicable exemptions from the requirement to file
a prospectus or registration statement in order to issue Common Shares to the
Participant on a redemption of Notional Shares under this Plan;

 

“Disability”
means an illness, disease, injury, mental or physical disability or similar
mental or physical state of a Participant that causes the Participant to be
unable to fulfil his or her obligations as an officer or other employee of the
Issuer or any of its subsidiaries for a period of 90 consecutive days, or for
an aggregate of 180 days in any 365 day period;

 

“Eligible
Person” means an officer or other employee of the Issuer or any of
its subsidiaries;

 

“Financial Statement
Approval  Date” means for
a given fiscal year the date that the Board approves the audited financial
statements of the Issuer for such fiscal year of the Issuer, but in no event
shall a Financial Statement Approval Date for a given fiscal year be later than
the last Business Day of the immediately following fiscal year of the Issuer;

 

“Good Reason”
means the occurrence of any one or more of the following events:

 

3

 

(a)                                  the assignment to the Participant of any duties
inconsistent in any material respect with the Participant’s then position of
employment (including status, offices, titles and reporting relationships),
authority, duties or responsibilities, or any other action that when taken as a
whole results in a diminution in the Participant’s position, authority, duties
or responsibilities, excluding for this purpose any isolated, immaterial and
inadvertent action not taken in bad faith and which is remedied within seven
business days after receipt of notice thereof given by the Participant,

 

(b)                                 a reduction in the Participant’s Base Salary without
the consent of such Participant or the failure to continue in effect any
material benefit or compensation plan, life insurance plan, health and accident
plan or disability plan in existence as of the date of this Plan (or a
replacement or substitute plan providing the Participant with substantially
similar benefits) in which the Participant is participating or the material
reduction of the Participant’s benefits under any of such plans (or replacement
or substitute plans), or

 

(c)                                  requiring the Participant to be based at any location
more than 35 miles from Boston, Massachusetts, except for requirements of travel
in the ordinary course of the Participant’s duties;

 

“Independent Directors”
means those members of the Board who
are not members of the management of the Issuer;

 

“Individual  Non-Officer  Pool  Award” has the meaning set forth in Section 9(a) hereof;

 

“Insider
Participant” means a Participant who is (a) an insider of the
Issuer or its subsidiaries as defined in the Securities
Act (Ontario), and (b) an Associate of any person who is an
insider by virtue of (a);

 

“Issuer”
means Atlantic Power Corporation, a corporation continued under the laws of the
Province of British Columbia;

 

“Market Price
per Common Share” means the weighted average Canadian dollar closing
price of Common Shares on the TSX for the five days immediately preceding the
applicable day;

 

“Net Cash
Flow Multiplier” means the percentage multiplier, determined in
accordance with Section 8(c) hereof, that is used to calculate the
adjustment, if any, to the Non-Officer LTI Pool pursuant to Section 8(b) hereof;

 

“Net Project
Cash Flow” means, for a fiscal year of the Issuer, an amount equal
to the total cash distributions received from the assets owned, directly or
indirectly, by the Issuer, less management and administrative expenses;

 

“Non-Officer Group”
means, collectively, Participants who are not members of the Officer Group;

 

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“Non-Officer  LTI Pool” means an amount determined in accordance with Section 8(a) hereof
to be available for allocation among the Non-Officer Group for awards hereunder;

 

“Notional  Base  Award” has the
meaning set forth in Section 6(a) hereof;

 

“Notional
Shares” means notional shares to be issued under the Plan, with each
Notional Share notionally representing one Common Share;

 

“Notional
Share Account” means an account that shall be maintained by Atlantic  Holdings for each Participant that will show the Notional
Shares credited to a Participant from time to time;

 

“Non-Officer TSR Percentage”
means the percentage multiplier, determined in accordance with Section 8(c) hereof,
that is used to calculate the adjustment, if any, to the Non-Officer LTI Pool
pursuant to Section 8(b) hereof;

 

“NYSE” means the
New York Stock Exchange;

 

“Officer Adjusted
Award” has the meaning set forth in Section 7(a) hereof;

 

“Officer  Base  Incentive Amount”
means the amount that is 100% of an Officer Group member’s Base Salary for a
TSR Evaluation Period at the time of the Notional Base Award granted  pursuant to Section 6(a) hereof converted into
Canadian dollars based on the closing rate of exchange published by the Bank of
Canada on the date of calculation of the Officer Base Incentive Amount;

 

“Officer Group”  means, collectively, the CEO, Chief Financial Officer and
the Managing  Director, Asset Management and
Acquisitions of the Issuer, and any other senior executive officers of the
Issuer that the Administrators may designate as belonging to the Officer Group
from time to time;

 

“Officer TSR Percentage”
means the percentage multiplier that is applied to the Officer Base Incentive
Amount for the purpose of adjusting, if required, the amount of Notional Shares
that will vest pursuant to Section 10 hereof, which shall be calculated in
accordance with Section 7(b) hereof;

 

“Participant”
means an Eligible Person who receives a grant of Notional Shares in accordance
with this Plan;

 

“Peer  Group” has the meaning set forth in Section 5(a) hereof;

 

“Person”
means any individual, issuer, partnership, business trust, limited liability
company, joint venture, association, joint-stock company, trust, unincorporated
organization, government or any agency or political subdivision thereof or any
other entity;

 

“Plan”
means this Long-Term Incentive Plan, as amended and/or amended and restated
from time to time;

 

5

 

“Pro Rata Portion”
means, in respect of each individual grant of Notional Shares for a certain TSR
Evaluation Period, the percentage of Notional Shares deemed to be earned by an
Officer Group Participant to the date of the calculation of the Pro Rata Portion,
calculated as follows:

 

	
  Year of a given TSR Evaluation Period

  (e.g. 1, 2 or 3) in which termination of employment occurs*

  
	
  3

  

 

*                 For greater certainty, regardless of the month in
which termination of employment occurs during a   year
of a TSR Evaluation Period, the numerator shall be rounded up to that year
(e.g. if termination of employment occurs three months into the first year of a
TSR Evaluation Period, the numerator shall be 1).

 

“Retirement”
means the retirement or resignation of an officer or other employee of the
Issuer or a subsidiary of the Issuer from that capacity upon attaining 65 years
of age;

 

“Target” has the
meaning set forth in Section 8(c) hereof;

 

“TSR” means
total shareholder return, which refers to the change in the total value of a
Common Share investment in the Issuer over a given period, calculated by
comparing the change in the Market Price per Common Share from the first
Business Day of the period to the last Business Day of the period, taking into
account reinvested dividends on the Common Shares during such period, as may be
calculated more particularly by the Administrators from time to time;

 

“TSR  Evaluation  Period” means
the period that begins on the first Business Day of each fiscal year of the
Issuer and ends on the last Business Day of the 36th month following
such date, or such shorter period as may otherwise be provided in this Plan;

 

“TSR Performance List”
has the meaning set forth in Section 7(b)(i) hereof;

 

“TSX” means the
Toronto Stock Exchange; and

 

“Vesting Date”
means the date upon which Notional Shares vest to an Officer Group Participant
or Non-Officer Group Participant, as the case may be, pursuant to Sections
10(a), 11(a) or 12(c) hereof, as applicable.

 

3.                                      ADMINISTRATION

 

The Plan shall be administered by the Administrators,
who will have, except as otherwise provided herein, the sole and complete
authority to make all determinations and to take all actions necessary or
advisable for the implementation and administration of the Plan, subject to
Sections 17(a) and 24
and, in the case of Participants who are members of the Officer Group, subject
to the terms of such Participants’ employment agreements. In the course of the
administration of the Plan, the Administrators will exercise discretion to
alter or adjust any provision that is expressly provided herein only in limited
circumstances so as to operate the Plan as objectively as possible. All
decisions and determinations of the Administrators respecting the Plan shall be
binding and conclusive on the Plan and the Participants.

 

6

 

4.                                      PARTICIPATION IN THE PLAN

 

(a)                                  Participation
Right

 

No person shall be entitled as of right to
participate in the Plan and the decision as to who will have the opportunity to
participate in the Plan and the extent of such participation shall be made by
the Administrators in the case of the Officer Group, and the CEO in the case of
the Non-Officer Group, in their sole and absolute discretion.

 

(b)                                 Participation
Agreement and Confirmation

 

Participation in the Plan by each Participant
is conditional on the Participant signing a Participation Agreement and
Confirmation in the form attached hereto as Schedule “A”.

 

5.                                      GENERAL PERFORMANCE METRICS

 

(a)                                  Peer
Group

 

The initial Peer
Group shall be comprised of the entities set out in Schedule “B” hereto (the “Peer  Group”). The Peer Group will be adjusted, as necessary, to
reflect changes such as mergers and acquisitions or a change in a Peer Group
entity’s line of business; in particular, entities that belong to the Peer
Group that merge or are acquired during a given TSR Evaluation Period shall be
removed from the Peer Group for the purpose of generating the TSR Performance
List under Section 7(b)(i) hereof in respect of such TSR Evaluation
Period.

 

(b)                                 Net
Project Cash Flow

 

On the Budget Date, the  Administrators shall establish the
budgeted Net Project Cash Flow for the upcoming fiscal year of the Issuer.

 

6.                                      GRANT OF NOTIONAL BASE AWARD TO
OFFICER GROUP PARTICIPANTS

 

(a)                                  Grant of
Notional Shares

 

On the first Financial Statement Approval Date that falls within a
given TSR Evaluation Period, each Participant who is a member of the Officer
Group shall have credited to their
Notional Share Account the number of Notional Shares (the “Notional  Base
Award”) that is determined by
dividing the Officer Base Incentive Amount (or such other amount as the
Administrators may deem appropriate within the scope of their discretion
pursuant to Section 3 hereof) by the Market Price per Common Share on such
Financial Statement Approval Date.

 

(b)                                 Entitlement
to Dividends on Notional Shares

 

Each Notional Share credited to an Officer
Group Participant’s Notional Share Account shall receive a distribution equal
to the amount of dividends paid per Common Share. Such distributions shall be
credited to an Officer Group Participant’s Notional Share Account in the form
of additional Notional Shares immediately following any dividend 

 

7

 

on the Common Shares. The number of Notional
Shares to be credited for each dividend will be equal to the amount of the
dividend divided by the Market Price per Common Share determined on the payment
date for the dividend.  For the purposes
of the Plan, any references to an Officer Group Participant’s Notional Shares
for a specific TSR Evaluation Period and Notional Base Award shall include
Notional Shares credited to such Officer Group Participant’s Notional Share
Account in lieu of Common Share dividends pursuant to this Section 6(b).

 

7.                                      CALCULATION OF OFFICER ADJUSTED AWARD

 

(a)                                  Performance
Adjustment of Notional Base Award

 

On the Financial Statement
Approval Date immediately following each TSR Evaluation Period and prior to the
vesting of each Officer Group Participant’s Notional Shares for such TSR
Evaluation Period in accordance with Section 10(a) hereof, an
adjusted award of Notional Shares (the “Officer Adjusted Award”)
shall be calculated as follows:

 

	
  Officer Adjusted Award

  	
  =

  	
  Notional Base Award*

  	
  X

  	
  Officer TSR Percentage**

  

 

	
  *

  	
   

  	
  Includes, for greater
  certainty, any Notional Shares credited pursuant to
  Section 6(b) hereof on or after the date on which the Notional Base
  Award is initially granted.

  
	
   

  	
   

  	
   

  
	
  **

  	
   

  	
  Calculated in accordance with
  Section 7(b) below.

  

 

and the Notional Shares in
each Officer Group Participant’s Notional Share Account shall be adjusted
accordingly to correspond to the Officer Adjusted Award.

 

(b)                                 Calculation
of Officer TSR Percentage

 

The Administrators shall calculate the Officer
TSR Percentage as follows:

 

(i)                  calculate the TSR in respect
of the applicable TSR Evaluation Period, for the Issuer and each member of the
Peer Group and list such entities in descending order, beginning with the
entity with the highest TSR to the entity with the lowest TSR (the “TSR Performance List”);

 

(ii)               assign to each entity on the
TSR Performance List a percentile ranking reflecting its position on such list,
where the entity with the highest TSR over the applicable TSR Evaluation Period
is given a percentile rank of 100 and each subsequent entity is given a
percentile rank decreasing in equal percentile intervals to a percentile rank
of 0 for the entity with the lowest TSR over such TSR Evaluation Period; and

 

(iii)            assign an Officer TSR
Percentage with the Officer TSR Percentage adjusted on a pro rata
basis if the Issuer’s percentile ranking falls between the 25th percentile
and the 75th percentile as follows:

 

8

 

	
  Issuer’s Percentile Rank on 

  TSR Performance List

  	
   

  	
  Officer 

  TSR Percentage

  	
   

  
	
  75th percentile or
  higher

  	
   

  	
  150

  	
  %

  
	
  50th percentile

  	
   

  	
  100

  	
  %

  
	
  25th percentile

  	
   

  	
  50

  	
  %

  
	
  Below 25th percentile

  	
   

  	
  0

  	
  %

  

 

8.                                      CALCULATION AND ADJUSTMENT OF
NON-OFFICER LTI POOL

 

(a)                                  Initial
Determination of Non-Officer LTI Pool

 

On the Financial Statement Approval Date of
each fiscal year of the Issuer, the Non-Officer LTI Pool in respect of such
fiscal year shall be proposed by the CEO based on the salaries and target
long-term incentives of then-current members of the Non-Officer Group and
approved by the Administrators.

 

(b)                                 Performance
Adjustment of Non-Officer LTI Pool

 

On the Financial Statement Approval Date
immediately following each fiscal year of the Issuer, the Non-Officer LTI Pool
shall be adjusted as follows:

 

	
  Non-Officer LTI Pool

  	
  X

  	
  [

  	
  2/3 Net Cash Flow

  Multiplier*

  	
  +

  	
  1/3 Non-Officer TSR

  Percentage**

  	
  ]

  

 

	
  *

  	
  Calculated in accordance
  with Section 8(c) below.

  
	
  **

  	
  Calculated in accordance
  with Section 8(d) below.

  

 

 

provided that, subject to Section 8(e) hereof,
the Non-Officer LTI Pool shall not be increased pursuant to this Section 8(b) beyond
the amount determined by the Administrators pursuant to Section 8(a) hereof.

 

(c)                                  Calculation
of Net Cash Flow Multiplier

 

Subject to the transitional provisions in Section 12(d), the CEO
shall calculate the Net Cash Flow Multiplier in accordance with the following
scale, with the Net Cash Flow Multiplier adjusted on a pro rata
basis if the Issuer’s New Project Cash Flow falls between the budgeted amount
set on the applicable Budget Date (the “Target”)
and 25% below the Target:

 

	
  Net Project Cash Flow

  	
   

  	
  Net Cash Flow Multiplier

  	
   

  
	
  At or above the Target

  	
   

  	
  100

  	
  %

  
	
  25% below the Target

  	
   

  	
  50

  	
  %

  
	
  More than 25% below the
  Target

  	
   

  	
  0

  	
  %

  

 

(d)                                 Calculation
of Non-Officer TSR Percentage

 

Subject to the transitional provisions in Section 12(d), the CEO
shall calculate the Non-Officer TSR Percentage in accordance with Section 7(b) hereof,
except that the following 

 

9

 

scale shall be used with the Non-Officer TSR Percentage adjusted on a pro rata basis if the Issuer’s percentile ranking falls
between the 25th percentile and the 50th percentile:

 

	
  Issuer’s Percentile Rank on

  TSR Performance List

  	
   

  	
  Non-Officer

  TSR Percentage

  	
   

  
	
  50th percentile or
  higher

  	
   

  	
  100

  	
  %

  
	
  25th percentile

  	
   

  	
  50

  	
  %

  
	
  Below 25th percentile

  	
   

  	
  0

  	
  %

  

 

(e)                                  Subsequent
Adjustment of Non-Officer LTI Pool

 

Notwithstanding Section 8(b) or anything else contained in
this Plan, if the Issuer’s performance during a fiscal year results in it
significantly exceeding either the 50th percentile on the TSR Performance List and/or
100% of the Target, then the CEO may request that the Administrators increase
the Non-Officer LTI Pool for such fiscal year, and the Administrators shall have
the discretion (as set out in Section 3 hereof) to increase the size of
the Non-Officer LTI Pool for such fiscal year.

 

(f)                                    References
to Adjusted Non-Officer LTI Pool

 

For greater certainty, for the purposes of the Plan, any references to
the Non-Officer LTI Pool for a given fiscal year of the Issuer shall include
adjustments thereto made pursuant to Sections 8(b) and 8(e) hereof.

 

9.                                      ALLOCATION OF NON-OFFICER AWARDS

 

(a)                                  Allocation
of Non-Officer Awards from Non-Officer LTI Pool

 

Following the Financial Statement Approval Date for a given fiscal year
of the Issuer, the CEO, in consultation
with the Issuer’s other senior officers, shall have the discretion to allocate
to each Participant who is a member of the Non-Officer Group a percentage of
the Non-Officer LTI Pool based on such Participant’s performance during such
fiscal year (the “Individual  Non-Officer  Pool  Award”).

 

(b)                                 Grant of
Notional Shares

 

As soon as possible following the
determination of Individual Non-Officer Pool Awards pursuant to Section 9(a) hereof,
each Participant that is a member of the Non-Officer Group who receives an
Individual Non-Officer Pool Award shall have credited to their Notional Share
Account a number of Notional Shares determined by dividing the dollar amount of the Individual Non-Officer
LTI Pool Award by the Market Price per Common Share on the day of the award.

 

(c)                                  Entitlement
to Dividends on Notional Shares

 

Each Notional Share credited to a Non-Officer
Group Participant’s Notional Share Account pursuant to Section 9(b) hereof
shall receive dividends equal to the amount of dividends paid per Common Share.
Such distributions shall be credited to a Non-Officer 

 

10

 

Group Participant’s Notional Share Account in
the form of additional Notional Shares immediately following any dividend on
the Common Shares. The number of Notional Shares to be credited for each
dividend will be equal to the amount of the dividend divided by the Market
Price per Common Share determined on the payment date for the dividend. For the
purposes of the Plan, any references to an Non-Officer Group Participant’s
Notional Shares for a specific TSR Evaluation Period shall include Notional
Shares issued on such Notional Shares pursuant to this Section 9(c).

 

10.                               VESTING OF NOTIONAL SHARES — OFFICER
GROUP

 

(a)                                  Timing

 

Except as otherwise specified herein, an
Officer Group Participant’s Officer Adjusted Award shall vest on the last
Business Day of the month in which the Financial Statement Approval Date  falls  for
the applicable TSR Evaluation Period.

 

(b)                                 Termination
of Employment — Death or Retirement

 

If the employment of an Officer Group
Participant is terminated by the death or Retirement of such Participant, the
Pro Rata Portion of the Notional Shares credited to such Participant’s Notional
Share Account, calculated for each respective TSR Evaluation Period for which
Notional Shares have been credited to such Notional Share Account (including,
for greater certainty, the 2010 Transition Award and the 2011 Transition
Award), shall vest or be deemed to have vested effective the date immediately
prior to the date of such Participant’s death or Retirement and the remainder
of the Notional Shares in such Participant’s Notional Share Account shall
immediately be cancelled and such Participant or, in the event of death, his or
her legal representative(s), shall forfeit all rights, title and interest with
respect to such Notional Shares.

 

(c)                                  Termination
of Employment — Disability

 

If the employment of an Officer Group
Participant is terminated due to the Disability of such Participant, the Pro
Rata Portion of the Notional Shares credited to such Participant’s Notional
Share Account, calculated for each respective TSR Evaluation Period for which Notional
Shares have been credited to such Notional Share Account (including, for
greater certainty, the 2010 Transition Award and the 2011 Transition Award),
shall vest or be deemed to have vested effective the date immediately prior to
the date of termination of such Participant’s employment and the remainder of
the Notional Shares in such Participant’s Notional Share Account shall
immediately be cancelled and such Participant and, if applicable, his or her
legal representative(s), shall forfeit all rights, title and interest with
respect to such Notional Shares.

 

(d)                                 Termination
of Employment — Change of Control

 

If the employment of
an Officer Group Participant is terminated following a Change of Control by
such Participant for Good Reason or by the Issuer or Atlantic Holdings without
Cause, the Pro Rata Portion of the Notional Shares credited to such
Participant’s Notional Share Account, calculated for each respective TSR
Evaluation Period for which 

 

11

 

Notional Shares have been credited to such
Notional Share Account (including, for greater certainty, the 2010 Transition
Award and the 2011 Transition Award), shall vest effective the date immediately
prior to the date of such termination of such Participant’s employment and the
remainder of the Notional Shares in such Participant’s Notional Share Account
shall immediately be cancelled and such Participant shall forfeit all rights,
title and interest with respect to such Notional Shares.

 

(e)                                  Termination
of Employment for Cause

 

If the employment of an Officer Group
Participant is terminated for Cause, such Participant shall, unless otherwise
expressly determined by the Administrators in writing, forfeit all rights,
title and interest with respect to Notional Shares which have not vested on or
prior to such Participant’s termination date. An Officer Group Participant’s
termination date shall be such Participant’s last day at work and shall not
include any period of statutory or common law notice of termination of
employment or period of salary continuation following such Participant’s
termination date for vesting or any other purpose under this Plan.

 

(f)                                    Termination
of Employment — Employment Agreement

 

Notwithstanding any provision to the contrary
herein, if an Officer Group Participant has entered into an employment
agreement with the Issuer or any of its subsidiaries, all Notional Shares
credited to such Participant’s Notional Share Account shall vest subject to any
vesting provisions set forth in such employment agreement. For certainty, to
the extent there is any conflict or inconsistency between the vesting
provisions set out in such Participant’s employment agreement and the vesting
provisions set out in this Plan, the vesting provisions of such Participant’s
employment agreement shall govern.

 

11.                               VESTING OF NOTIONAL SHARES —
NON-OFFICER GROUP

 

(a)                                  Timing

 

Except as otherwise specified herein, one-third
of a Non-Officer Group Participant’s Notional Shares credited to such
Non-Officer Group Participant’s Notional Share Account for a given fiscal year
of the Issuer shall vest on the last Business Day of the month in which the
Financial Statement Approval Date falls for such fiscal year of the Issuer, 50%
of the Notional Shares credited to the Non-Officer Group Participant’s Notional
Account on the first anniversary of the initial vesting date shall vest on that
date, and all remaining Notional Shares for such fiscal year credited to the
Non-Officer Group Participant’s Notional Account on the second anniversary of
the initial vesting date shall vest on that date.

 

(b)                                 Termination
of Employment — Death or Retirement

 

If the employment of a Non-Officer Group
Participant is terminated by the death or Retirement of such Participant, all
Notional Shares credited to such Participant’s Notional Share Account shall
vest or be deemed to have vested effective the date immediately prior to the
date of such Participant’s death or Retirement.

 

12

 

(c)                                  Termination
of Employment — Disability

 

If the employment of a Non-Officer Group
Participant is terminated due to the Disability of such Participant, all
Notional Shares credited to such Participant’s Notional Share Account shall
vest on the Vesting Date as if such Participant continued to be actively
employed until the Vesting Date.

 

(d)                                 Termination
of Employment — Change of Control

 

If the employment of a Non-Officer Group
Participant is terminated following a Change of Control, by such Participant
for Good Reason or by the Issuer of any of its subsidiaries without Cause prior
to the Vesting Date, all Notional Shares credited to such Participant’s
Notional Share Account shall vest effective the date immediately prior to the
date of such termination of such Participant’s employment.

 

(e)                                  Termination
of Employment for Cause

 

If the employment of a Non-Officer Group
Participant is terminated for Cause, such Participant shall, unless otherwise
expressly determined by the Administrators in writing, forfeit all rights,
title and interest with respect to Notional Shares which have not vested on or
prior to such Participant’s termination date. A Non-Officer Group Participant’s
termination date shall be such Participant’s last day at work and shall not
include any period of statutory or common law notice of termination of
employment or period of salary continuation following such Participant’s
termination date for vesting or any other purpose under this Plan.

 

(f)                                    Termination
of Employment — Employment Agreement

 

Notwithstanding any provision to the contrary
herein, if a Non-Officer Group Participant has entered into an employment
agreement with the Issuer or any of its subsidiaries, all Notional Shares
credited to such Participant’s Notional Share Account shall vest subject to any
vesting provisions set forth in such employment agreement. For certainty, to
the extent there is any conflict or inconsistency between the vesting
provisions set out in such Participant’s employment agreement and the vesting
provisions set out in this Plan, the vesting provisions of such Participant’s
employment agreement shall govern.

 

12.                               TRANSITIONAL PROVISIONS

 

(a)                                  Transitional
Grants to Officer Group

 

In addition to the grant of Notional Shares to
Officer Group Participants pursuant to Section 6(a) hereof, on or
about the Financial Statement Approval Date for the Issuer’s 2009 fiscal year (March 29,
2010), the following separate special transition awards of Notional Shares
shall be granted in respect of the year ended December 31, 2010 (the “2010 Performance Period”) and the year ended December 31,
2011 (the “2011 Performance Period”) to each
Officer Group Participant and credited to each Officer Group Participant’s
Notional Share Account:

 

13

 

(i)                  an amount of Notional Shares
(including fractional Notional Shares) equal to one-third of the amount that is
calculated by dividing the dollar amount of the Officer Base Incentive Amount
by the Market Price per Common Share as at the Financial Statement Approval
Date for the 2009 fiscal year of the Issuer (the “2010  Transition  Award”); and

 

(ii)               an amount of Notional Shares
(including fractional Notional Shares) equal to two-thirds of the amount that
is calculated by dividing the dollar amount of the Officer Base Incentive
Amount by the Market Price per Common Share as at the Financial Statement
Approval Date for the 2009 fiscal year of the Issuer (the “2011  Transition
Award”).

 

(b)                                 Adjustment
of 2010 and 2011 Transitional Awards

 

Immediately prior to the
vesting of the 2010 Transition Award and 2011 Transition Award, in accordance
with Section 12(c) below, the Administrators shall:

 

(i)                  multiply the number of
Notional Shares in an Officer Group Participant’s Notional Share Account
comprising the 2010 Transition Award and the 2011 Transition Award, as
applicable, by the Officer TSR Percentage determined in accordance with Section 7(b) hereof,
except that:

 

(A)                              for the 2010 Transition
Award, the applicable TSR Evaluation Period for the purpose of the
determinations required by Section 7(b) hereof shall be the period
that begins on January 1, 2010 and ends on December 31, 2010, and

 

(B)                                for the 2011 Transition
Award, the applicable TSR Evaluation Period for the purpose of the
determinations required by Section 7(b) hereof shall be the period
that begins on January 1, 2010 and ends on December 31, 2011; and

 

(ii)               adjust such number of
Notional Shares representing the 2010 Transition Award and the 2011 Transition
Award, respectively, as set out in Section 7(a) hereof.

 

(c)                                  Transitional
Vesting Provisions for Officer Group

 

The Notional Shares comprising the 2010
Transition Award, after the adjustment provided for in Section 12(b) above and
including, for greater certainty, any Notional Shares issued pursuant to 6(b) hereof,
shall vest on the last Business Day of the month in which the Financial
Statement Approval Date falls for the Issuer’s fiscal year ended December 31,
2010, subject to earlier vesting pursuant to Section 10 hereof. The
Notional Shares comprising the 2011 Transition Award, after the adjustment
provided for in Section 12(b) above and including, for greater
certainty, any Notional Shares issued pursuant to 6(b) hereof, shall vest
on the last Business Day of the month in which the Financial Statement Approval
Date falls for the Issuer’s fiscal year ended December 31, 2011, subject
to earlier vesting pursuant to Section 10 hereof.

 

14

 

(d)                                 Transitional
Calculation of Non-Officer LTI Pool

 

For the years ended December 31, 2010 and 2011
of the Issuer, for the purposes of the calculation of the Non-Officer TSR
Percentage pursuant to Section 8(c), the TSR Evaluation Periods set out in
Sections 12(b)(i)(A) and (B) above shall apply.

 

13.                               REDEMPTION OF VESTED NOTIONAL SHARES

 

(a)                                  General

 

Effective as of the Vesting Date, Atlantic
Holdings shall, subject to Section 13(b) below, forthwith following
the applicable Vesting Date, redeem the vested portion of each Participant’s
Notional Shares (including fractional Notional Shares) by:

 

(i)                  making a lump sum cash
payment (net of any applicable withholdings) to each Participant or the
Participant’s legal representative, if applicable, in respect of one-third of
the Notional Shares to be redeemed; and

 

(ii)               exchanging two-thirds of the
Notional Shares to be redeemed for Common Shares pursuant to Section 13(f) below.

 

(b)                                 Payment
of 100% Cash

 

Notwithstanding Section 13(a) above,
effective as of the Vesting Date, or prior to the Vesting Date if the
Administrators so choose, acting within the scope of their discretion pursuant
to Section 3 hereof, Atlantic Holdings may elect to redeem the vested
portion of each Participant’s Notional Shares (including fractional Notional
Shares) by making a lump sum cash payment (net of any applicable withholdings)
to each Participant or the Participant’s legal representative, if applicable,
in respect of the Notional Shares to be redeemed.

 

(c)                                  Election
for 100% of Common Shares

 

Notwithstanding Section 13(a) above,
each Participant that is a member of the Officer Group may elect to redeem
vested Notional Shares for 100% Common Shares, provided that the Participant
provides written notice of such election at least 30 days prior to the date of
such redemption.

 

(d)                                 Redemption
from Common Share Ineligible Participants

 

Notwithstanding Sections 13(a) and (b) above,
effective as of the Vesting Date, or prior to the Vesting Date if the
Administrators so chose, acting within the scope of their discretion pursuant
to Section 3 hereof, Atlantic Holdings shall redeem the vested portion of
each Common Share Ineligible Participant’s Notional Shares (including
fractional Notional Shares) by making a lump sum cash payment (net of any
applicable withholdings) to each Common Share Ineligible Participant or the
Participant’s legal representative, if applicable, in respect of 100% of the
Notional Shares to be redeemed.

 

15

 

(e)                                  Delivery
of Common Shares on a Redemption

 

To satisfy its obligation to deliver Common
Shares on a redemption of vested Notional Shares, Atlantic Holdings shall, at
its option, elect to acquire Common Shares either:

 

(i)                  from the Issuer at the
Market Price per Common Share; or

 

(ii)               on the TSX or NYSE.

 

(f)                                    Acquisition
of Common Shares from the Issuer

 

If Atlantic Holdings elects to acquire Common Shares from the Issuer
under Section 13(e)(i) above, the following provisions shall apply:

 

(i)                  Upon actual receipt by the
Issuer of written notice and payment for the aggregate purchase price for the
Common Shares from Atlantic  Holdings,
subject to payment of all applicable security transfer, income, withholding or
other taxes or other governmental charges and compliance with all applicable
securities laws, the Issuer shall issue to Atlantic  Holdings the applicable number of Common Shares and Atlantic
Holdings will use such Common Shares to satisfy the redemption.

 

(ii)               The Issuer shall not be
required to issue, and Atlantic Holdings shall not be required to cause the
issuance of, fractional Common Shares upon the acquisition of Common Shares pursuant
to Section 13(e)(i) above. If any fractional interest in an Common
Share would be deliverable upon the acquisition of Common Shares pursuant to
Section 13(e)(i) above, Atlantic  Holdings
shall, in lieu of delivering, or causing the delivery of, any certificate
representing such fractional interest, make a cash payment to the Participant
of an amount equal to the fractional interest which would have been issuable
multiplied by the Market Price per Common Share, less applicable withholding
taxes, if any.

 

(iii)            The Issuer covenants with
Atlantic Holdings that it will at all times reserve and keep available out of
its authorized Common Shares (if the number thereof is or becomes limited),
solely for the purpose of issuing such Common Shares to Atlantic  Holdings in connection with a redemption
under this Plan, such number of Common Shares as shall then be deliverable by
Atlantic  Holdings under the Plan,
to enable and permit Atlantic  Holdings
to perform its obligation hereunder to deliver the requisite number of Common
Shares to Participants. The Issuer covenants with Atlantic  Holdings that all Common Shares, which
shall be so issuable, shall be duly and validly issued as fully-paid and
non-assessable upon receipt by the Issuer of fair value consideration for such
Common Shares from Atlantic  Holdings
in the form of a cash payment. The Issuer further covenants with Atlantic  Holdings that it shall take all actions
and do all things necessary or desirable to enable and permit Atlantic  

 

16

 

Holdings, in accordance with applicable law,
to perform all of its obligations hereunder.

 

(iv)           Immediately following the
acquisition of Common Shares from the Issuer by Atlantic  Holdings to satisfy a redemption of
Notional Shares pursuant to Section 13(e)(i) above, the Issuer shall,
at its option, using the proceeds of the issuance of Common Shares, either: (A) acquire
from Atlantic Holdings common shares or (B) acquire Common Shares on the
TSX, such acquisition in (A) or (B) shall be equivalent in number to
the number of Common Shares acquired by Atlantic Holdings pursuant to this
Section 13(f). Atlantic Holdings covenants with the Issuer that it will at
all times reserve and keep available out of its authorized capital a sufficient
number of common shares to be issued from treasury to satisfy the acquisition
by the Issuer pursuant to this Section 13(f)(iv).

 

(g)                                 Effect
of Redemption of Notional Shares

 

A Participant shall have no further rights
respecting any Notional Share, which has been redeemed.

 

(h)                                 Calculation
of Cash Payments

 

Lump sum cash payments made under this Section 13
by Atlantic  Holdings to a Participant or a
Participant’s legal representative, if applicable, in respect of Notional
Shares to be redeemed shall be calculated by multiplying the number of Notional
Shares to be redeemed by the Market Price per Common Share as at the Vesting
Date, converted into United States dollars based on the closing rate of
exchange published by the Bank of Canada on the Vesting Date.

 

(i)                                     Section 409A

 

To the extent that the Plan is determined to
constitute “nonqualified deferred compensation” within the meaning of Section 409A
of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), the Plan shall be administered in accordance with Section 409A.
In this regard, to the extent any provision of the Plan is ambiguous as to its
compliance with Section 409A of the Code, the provision shall be read in
such a manner so that all payments hereunder comply with Section 409A of
the Code. Further, if any amount payable hereunder is payable upon a “separation
from service” (within the meaning of Section 409A) to a Participant who is
then considered a “specified employee” (within the meaning of Section 409A),
then no such payment shall be made prior to the date that is the earlier of (i) six
months and one day after the Participant’s separation from service, or (ii) the
Participant’s death, but only to the extent such delay is necessary to prevent
such payment from being subject to interest, penalties and/or additional tax
imposed pursuant to Section 409A.

 

17

 

14.                               COMMON SHARES SUBJECT TO ISSUANCE
UNDER THE PLAN

 

The aggregate number of Common Shares that may
be issued under the Plan upon the redemption of Notional Shares is 1,000,000
Common Shares subject to increase or decrease by reason of amalgamation, rights
offerings, reclassifications, consolidations or subdivisions, or as may
otherwise be permitted by applicable law and the TSX.

 

15.                               LIMIT ON ISSUANCE OF COMMON SHARES

 

Except with the approval of the shareholders of
the Issuer given by the affirmative vote of a majority of the votes cast at a
meeting of the shareholders of the Issuer, excluding the votes attaching to
Common Shares beneficially owned by Insider Participants to whom Common Shares
may be issued pursuant to this Plan and their Associates, no Notional Shares
shall be credited to any Participant if such credit could result, at any time,
in:

 

(a)                                  the
number of Common Shares reserved for issuance to Participants pursuant to the
redemption of Notional Shares together with any other Common Share Compensation
Arrangement exceeding 10% of Common Shares then issued and outstanding;

 

(b)                                 the
number of Common Shares issuable to Insider Participants, at any time under
this Plan pursuant to the redemption of Notional Shares and any other Common
Share Compensation Arrangements, exceeding 10% of Common Shares then issued and
outstanding; or

 

(c)                                  the
number of Common Shares issued to Insider Participants, within any one-year
period, under this Plan pursuant to the redemption of Notional Shares and any
other Common Share Compensation Arrangements, exceeding 10% of Common Shares
then issued and outstanding.

 

In the event that the Issuer or any of its
subsidiaries purchases Common Shares for cancellation or if Common Shares are
separated pursuant to their terms, the Issuer shall be deemed to be in
compliance with the foregoing maximum limits, if immediately prior to such
purchase, expiration, separation or other extinguishment, the Issuer  was
in compliance with such limit.

 

16.                               UNFUNDED PLAN

 

Unless otherwise determined by the
Administrators, the Plan shall be unfunded. To the extent a Participant holds
any rights by virtue of participation in the Plan, such rights (unless
otherwise determined by the Administrators) shall be no greater than the rights
of an unsecured general creditor of Atlantic  Holdings.

 

17.                               AMENDMENT

 

(a)                                  The
Administrators may amend the Plan or any grant of Notional Shares at any time
without the consent of Participants provided that such amendment shall:

 

18

 

(i)                  not operate to materially
affect any rights already acquired by a Participant under the Plan, including
the vesting terms of any award previously made under the Plan;

 

(ii)               be subject to any regulatory
approvals including, where required, the approval of the TSX; and

 

(iii)            not be subject to approval
of the Issuer’s shareholders unless such amendment involves:

 

(A)                              any increase in the number
of Common Shares reserved for issuance under the Plan;

 

(B)                                any reduction in the pricing
of Notional Shares issuable under the Plan or cancellation and reissue of
entitlements under the Plan;

 

(C)                                any amendment that extends
the term of a TSR Evaluation Period beyond the period contemplated in the Plan;

 

(D)                               amendments to the Eligible
Persons under the Plan that may permit the introduction of non-employee
directors on a discretionary basis;

 

(E)                                 an amendment which would
permit Notional Shares granted under the Plan to be transferable or assignable
other than for normal estate settlement purposes; or

 

(F)                                 an amendment to the plan
amendment provisions contained in this Section 17.

 

(b)                                 For
greater certainty, any amendment to the Plan shall not affect the rights
already acquired by a Participant under a previous version of the Plan, and any
awards granted under a previous version of the Plan shall continue to be
governed by their terms and the terms of the Plan in place at the time of their
award.

 

(c)                                  Without
amending the Plan, the Administrators may, with the consent of the Participant,
approve any variation in terms, including the acceleration of the redemption of
Notional Shares held in the Notional Share Accounts of Participants which have
not vested.

 

18.                               OPERATION OF PLAN

 

The cost of the operation of the Plan shall be
borne by Atlantic  Holdings.

 

19.                               NOTICES

 

All notices under the Plan shall be in writing
and if to Atlantic  Holdings shall
be delivered to Atlantic  Holdings by
first class post to its head office, and if to a Participant, shall be
delivered personally or sent by first class post to the Participant at the
address 

 

19

 

which the Participant shall give for the
purpose, or failing any such address to the Participant’s last known place of
residence.  If a notice is sent by post,
service thereof shall be deemed to be effected by properly addressing,
prepaying and posting a letter containing the same to such address and shall be
deemed to be served 48 hours after such posting.

 

20.                               WITHHOLDING

 

The Administrators may adopt and apply rules that
will ensure that Atlantic  Holdings and
any other person complies with all federal, provincial, foreign, state or local
laws relating to the withholding of tax or other levies on employment
compensation in relation to payments and distributions contemplated in this
Plan. Such parties may withhold the minimum required tax withholding obligation
from amounts payable to a Participant, under the Plan or otherwise, and shall
have the absolute right to satisfy such minimum required withholding obligation
by retaining and selling a number of Common Shares that would otherwise have
been issued to a Participant upon a redemption having an aggregate fair market
value (as of the date of withholding) that would satisfy the minimum required
withholding amount due, or by accepting a sum sufficient from a Participant to
indemnify Atlantic  Holdings and
any other person for any liability to withhold hereunder.

 

21.                               INTERPRETATION

 

In this Plan, unless the context otherwise
requires, words importing the singular include the plural and vice versa and
words importing gender include all genders.

 

22.                               NO RIGHT OF EMPLOYMENT

 

Neither participation in the Plan nor any
action under the Plan shall be construed so as to give any Participant a right
to continue as a manager, officer or senior management employee of the Issuer.

 

23.                               NON-TRANSFERABILITY

 

A Participant shall not be entitled to
transfer, assign, charge, pledge or hypothecate, or otherwise alienate, whether
by operation of law or otherwise, the Participant’s Notional Shares or any
rights the Participant has in the Plan.

 

24.                               TERMINATION

 

The Administrators may at any time terminate
the Plan provided that such termination shall not affect any rights of
Participants to receive Notional Shares for any Performance Period or partial
Performance Period prior to the effective date of such termination.

 

25.                               CHOICE OF LAWS

 

This Plan shall be governed by the laws of the
State of Delaware.

 

20

 

26.                               ADOPTION AND AMENDMENT AND
RESTATEMENT OF THE PLAN

 

This Plan was originally adopted on the 10th day of May,
2006 and approved by the Issuer’s shareholders on the 7th day of June,
2006. The Plan has been amended and restated on the 24th day of April,
2007, the 4th day of June, 2008 and on this 29th day of January,
2010.

 

21

 

SCHEDULE A

 

THIRD
AMENDED AND RESTATED 

LONG-TERM INCENTIVE PLAN

 

PARTICIPATION
AGREEMENT AND CONFIRMATION

 

[Name of Employee] (“Participant”)

 

Pursuant to the Third Amended and Restated
Long-Term Incentive Plan (the “Plan”)
of Atlantic  Power Holdings, Inc.  (“Atlantic Holdings”)
dated January 29, 2010 and in consideration of services provided to the
Issuer by the Participant in respect of the 20     year,
Atlantic  Holdings hereby grants to the Participant
                  
Notional Shares under the Plan.

 

Capitalized terms not defined in this agreement
have the meanings given in the Plan.

 

Atlantic  Holdings and
the Participant understand and agree that these Notional Shares are subject to
the terms and conditions of the Plan (as they exist on the date hereof), all of
which are incorporated into and form a part of this agreement.

 

DATED
                                            ,
20        .

 

	
   

  	
   

  	
  ATLANTIC POWER
  HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 

I agree to the terms and conditions set out
herein and confirm and acknowledge that I have not been induced to enter into
this agreement or acquire any Notional Shares or any other interest in the Plan
or the Issuer by expectation of employment or continued employment with the
Issuer.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name (please print)

  

 

22

 

SCHEDULE B

 

INITIAL
PEER GROUP

 

Brookfield Renewable
Power Fund

 

Northland Power
Income Fund

 

Innergex Power Income
Fund

 

Boralex Inc.

 

Capital Power L.P.

 

Macquarie Power &
Infrastructure Income Fund

 

Boralex Power Income
Fund

 

Maxim Power Corp.

 

Algonquin Power &
Utilities Corp.Exhibit 4.4

 

ARKANSAS BEST CORPORATION,

as Issuer

 

AND

 

ANY SUBSIDIARY GUARANTORS PARTIES HERETO,

as Subsidiary Guarantors

 

TO

 

[TRUSTEE’S NAME],

as Trustee

 

 

 

SENIOR INDENTURE

 

 

 

Dated as of
                          ,
20

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE ONE

  	
  DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION 101.

  	
  Definitions

  	
  1

  
	
  SECTION 102.

  	
  Compliance Certificates and Opinions

  	
  7

  
	
  SECTION 103.

  	
  Form of Documents Delivered to Trustee

  	
  8

  
	
  SECTION 104.

  	
  Acts of Holders; Record Dates

  	
  8

  
	
  SECTION 105.

  	
  Notices, Etc., to Trustee and Company

  	
  10

  
	
  SECTION 106.

  	
  Notice to Holders; Waiver

  	
  11

  
	
  SECTION 107.

  	
  Conflict with Trust Indenture Act

  	
  11

  
	
  SECTION 108.

  	
  Effect of Headings and Table of Contents

  	
  11

  
	
  SECTION 109.

  	
  Successors and Assigns

  	
  12

  
	
  SECTION 110.

  	
  Separability Clause

  	
  12

  
	
  SECTION 111.

  	
  Benefits of Indenture

  	
  12

  
	
  SECTION 112.

  	
  Governing Law

  	
  12

  
	
  SECTION 113.

  	
  Legal Holidays

  	
  12

  
	
  SECTION 114.

  	
  No Recourse Against Others

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO

  	
  SECURITY FORMS

  	
  13

  
	
   

  	
   

  	
   

  
	
  SECTION 201.

  	
  Forms Generally

  	
  13

  
	
  SECTION 202.

  	
  Form of Face of Security

  	
  13

  
	
  SECTION 203.

  	
  Form of Reverse of Security

  	
  15

  
	
  SECTION 204.

  	
  Form of Notation of Subsidiary Guarantee

  	
  18

  
	
  SECTION 205.

  	
  Form of Legend for Global Securities

  	
  19

  
	
  SECTION 206.

  	
  Form of Trustee’s Certificate of Authentication

  	
  19

  
	
  SECTION 207.

  	
  Form of Conversion Notice

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE

  	
  THE SECURITIES

  	
  21

  
	
   

  	
   

  	
   

  
	
  SECTION 301.

  	
  Amount Unlimited; Issuable in Series

  	
  21

  
	
  SECTION 302.

  	
  Denominations

  	
  23

  
	
  SECTION 303.

  	
  Execution, Authentication, Delivery and Dating

  	
  23

  
	
  SECTION 304.

  	
  Temporary Securities

  	
  25

  
	
  SECTION 305.

  	
  Registration, Registration of Transfer and Exchange

  	
  25

  
	
  SECTION 306.

  	
  Mutilated, Destroyed, Lost and Stolen Securities

  	
  27

  
	
  SECTION 307.

  	
  Payment of Interest; Interest Rights Preserved

  	
  28

  
	
  SECTION 308.

  	
  Persons Deemed Owners

  	
  29

  
	
  SECTION 309.

  	
  Cancellation

  	
  29

  
	
  SECTION 310.

  	
  Computation of Interest

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOUR

  	
  SATISFACTION AND DISCHARGE

  	
  30

  
	
   

  	
   

  	
   

  
	
  SECTION 401.

  	
  Satisfaction and Discharge of Indenture

  	
  30

  
	
  SECTION 402.

  	
  Application of Trust Money

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIVE

  	
  REMEDIES

  	
  31

  
	
   

  	
   

  	
   

  
	
  SECTION 501.

  	
  Events of Default

  	
  31

  

 

i

 

	
  SECTION 502.

  	
  Acceleration of Maturity; Rescission and Annulment

  	
  33

  
	
  SECTION 503.

  	
  Collection of Indebtedness and Suits for Enforcement by
  Trustee

  	
  34

  
	
  SECTION 504.

  	
  Trustee May File Proofs of Claim

  	
  34

  
	
  SECTION 505.

  	
  Trustee May Enforce Claims Without Possession of
  Securities

  	
  35

  
	
  SECTION 506.

  	
  Application of Money Collected

  	
  35

  
	
  SECTION 507.

  	
  Limitation on Suits

  	
  35

  
	
  SECTION 508.

  	
  Unconditional Right of Holders to Receive Principal,
  Premium and Interest

  	
  36

  
	
  SECTION 509.

  	
  Restoration of Rights and Remedies

  	
  36

  
	
  SECTION 510.

  	
  Rights and Remedies Cumulative

  	
  36

  
	
  SECTION 511.

  	
  Delay or Omission Not Waiver

  	
  37

  
	
  SECTION 512.

  	
  Control by Holders

  	
  37

  
	
  SECTION 513.

  	
  Waiver of Past Defaults

  	
  37

  
	
  SECTION 514.

  	
  Undertaking for Costs

  	
  38

  
	
  SECTION 515.

  	
  Waiver of Usury, Stay or Extension Laws

  	
  38

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIX

  	
  THE TRUSTEE

  	
  38

  
	
   

  	
   

  	
   

  
	
  SECTION 601.

  	
  Certain Duties and Responsibilities

  	
  38

  
	
  SECTION 602.

  	
  Notice of Defaults

  	
  38

  
	
  SECTION 603.

  	
  Certain Rights of Trustee

  	
  39

  
	
  SECTION 604.

  	
  Not Responsible for Recitals or Issuance of Securities

  	
  39

  
	
  SECTION 605.

  	
  May Hold Securities

  	
  40

  
	
  SECTION 606.

  	
  Money Held in Trust

  	
  40

  
	
  SECTION 607.

  	
  Compensation and Reimbursement

  	
  40

  
	
  SECTION 608.

  	
  Conflicting Interests

  	
  40

  
	
  SECTION 609.

  	
  Corporate Trustee Required; Eligibility

  	
  41

  
	
  SECTION 610.

  	
  Resignation and Removal; Appointment of Successor

  	
  41

  
	
  SECTION 611.

  	
  Acceptance of Appointment by Successor

  	
  42

  
	
  SECTION 612.

  	
  Merger, Conversion, Consolidation or Succession to Business

  	
  43

  
	
  SECTION 613.

  	
  Preferential Collection of Claims Against Company and
  Subsidiary Guarantors

  	
  44

  
	
  SECTION 614.

  	
  Appointment of Authenticating Agent

  	
  44

  
	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN

  	
  HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

  	
  45

  
	
   

  	
   

  	
   

  
	
  SECTION 701.

  	
  Company to Furnish Trustee Names and Addresses of Holders

  	
  45

  
	
  SECTION 702.

  	
  Preservation of Information; Communications to Holders

  	
  46

  
	
  SECTION 703.

  	
  Reports by Trustee

  	
  46

  
	
  SECTION 704.

  	
  Reports by Company and Subsidiary Guarantors

  	
  46

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT

  	
  CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

  	
  46

  
	
   

  	
   

  	
   

  
	
  SECTION 801.

  	
  Company May Consolidate, Etc., Only on Certain
  Terms

  	
  46

  
	
  SECTION 802.

  	
  Subsidiary Guarantors May Consolidate, Etc., Only
  on Certain Terms

  	
  47

  
	
  SECTION 803.

  	
  Successor Substituted

  	
  48

  

 

ii

 

	
  ARTICLE NINE

  	
  SUPPLEMENTAL INDENTURES

  	
  48

  
	
   

  	
   

  	
   

  
	
  SECTION 901.

  	
  Supplemental Indentures Without Consent of Holders

  	
  48

  
	
  SECTION 902.

  	
  Supplemental Indentures With Consent of Holders

  	
  49

  
	
  SECTION 903.

  	
  Execution of Supplemental Indentures

  	
  51

  
	
  SECTION 904.

  	
  Effect of Supplemental Indentures

  	
  51

  
	
  SECTION 905.

  	
  Conformity with Trust Indenture Act

  	
  51

  
	
  SECTION 906.

  	
  Reference in Securities to Supplemental Indentures

  	
  51

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN

  	
  COVENANTS

  	
  51

  
	
   

  	
   

  	
   

  
	
  SECTION 1001.

  	
  Payment of Principal, Premium and Interest

  	
  51

  
	
  SECTION 1002.

  	
  Maintenance of Office or Agency

  	
  52

  
	
  SECTION 1003.

  	
  Money for Securities Payments to Be Held in Trust

  	
  52

  
	
  SECTION 1004.

  	
  Statement by Officers as to Default

  	
  53

  
	
  SECTION 1005.

  	
  Existence

  	
  54

  
	
  SECTION 1006.

  	
  Maintenance of Properties

  	
  54

  
	
  SECTION 1007.

  	
  Payment of Taxes and Other Claims

  	
  54

  
	
  SECTION 1008.

  	
  Maintenance of Insurance

  	
  54

  
	
  SECTION 1009.

  	
  Waiver of Certain Covenants

  	
  54

  
	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN

  	
  REDEMPTION OF SECURITIES

  	
  55

  
	
   

  	
   

  	
   

  
	
  SECTION 1101.

  	
  Applicability of Article

  	
  55

  
	
  SECTION 1102.

  	
  Election to Redeem; Notice to Trustee

  	
  55

  
	
  SECTION 1103.

  	
  Selection by Trustee of Securities to Be Redeemed

  	
  55

  
	
  SECTION 1104.

  	
  Notice of Redemption

  	
  56

  
	
  SECTION 1105.

  	
  Deposit of Redemption Price

  	
  57

  
	
  SECTION 1106.

  	
  Securities Payable on Redemption Date

  	
  57

  
	
  SECTION 1107.

  	
  Securities Redeemed in Part

  	
  58

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE

  	
  [INTENTIONALLY OMITTED]

  	
  58

  
	
   

  	
   

  	
   

  
	
  ARTICLE THIRTEEN

  	
  SUBSIDIARY GUARANTEES

  	
  58

  
	
   

  	
   

  	
   

  
	
  SECTION 1301.

  	
  Applicability of Article

  	
  58

  
	
  SECTION 1302.

  	
  Subsidiary Guarantees

  	
  58

  
	
  SECTION 1303.

  	
  Execution and Delivery of Notations of Subsidiary
  Guarantees

  	
  60

  
	
  SECTION 1304.

  	
  Release of Subsidiary Guarantors

  	
  60

  
	
  SECTION 1305.

  	
  Additional Subsidiary Guarantors

  	
  61

  
	
  SECTION 1306.

  	
  Limitation on Liability

  	
  61

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOURTEEN

  	
  [INTENTIONALLY OMITTED]

  	
  61

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIFTEEN

  	
  DEFEASANCE AND COVENANT DEFEASANCE

  	
  61

  
	
   

  	
   

  	
   

  
	
  SECTION 1501.

  	
  Company’s Option to Effect Defeasance or Covenant
  Defeasance

  	
  61

  
	
  SECTION 1502.

  	
  Defeasance and Discharge

  	
  62

  
	
  SECTION 1503.

  	
  Covenant Defeasance

  	
  62

  
	
  SECTION 1504.

  	
  Conditions to Defeasance or Covenant Defeasance

  	
  63

  
	
  SECTION 1505.

  	
  Deposited Money and U.S. Government Obligations to Be Held
  in Trust; Miscellaneous Provisions

  	
  64

  

 

iii

 

	
  SECTION 1506.

  	
  Reinstatement

  	
  65

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIXTEEN

  	
  SINKING FUNDS

  	
  65

  
	
   

  	
   

  	
   

  
	
  SECTION 1601.

  	
  Applicability of Article

  	
  65

  
	
  SECTION 1602.

  	
  Satisfaction of Sinking Fund Payments with Securities

  	
  65

  
	
  SECTION 1603.

  	
  Redemption of Securities for Sinking Fund

  	
  66

  
	
   

  	
   

  	
   

  
	
  Schedule
  I

  	
  Subsidiary
  Guarantors

  	
   

  
				

 

iv

 

ARKANSAS BEST CORPORATION

 

RECONCILIATION
AND TIE OF CERTAIN SECTIONS OF THIS INDENTURE RELATING TO SECTIONS 310 THROUGH
318, INCLUSIVE, OF THE TRUST INDENTURE ACT OF 1939:

 

	
  Trust Indenture Act Section

  	
   

  	
  Indenture Section

  
	
   

  	
   

  	
   

  	
   

  
	
  Section

  	
  310(a)(1)

  	
   

  	
  609

  
	
   

  	
  (a)(2)

  	
   

  	
  609

  
	
   

  	
  (a)(3)

  	
   

  	
  Not
  Applicable

  
	
   

  	
  (a)(4)

  	
   

  	
  Not
  Applicable

  
	
   

  	
  (b)

  	
   

  	
  608,
  610

  
	
   

  	
   

  	
   

  	
   

  
	
  Section

  	
  311(a)

  	
   

  	
  613

  
	
   

  	
  (b)

  	
   

  	
  613

  
	
   

  	
   

  	
   

  	
   

  
	
  Section

  	
  312(a)

  	
   

  	
  701,
  702

  
	
   

  	
  (b)

  	
   

  	
  702

  
	
   

  	
  (c)

  	
   

  	
  702

  
	
   

  	
   

  	
   

  	
   

  
	
  Section

  	
  313(a)

  	
   

  	
  703

  
	
   

  	
  (b)

  	
   

  	
  703

  
	
   

  	
  (c)

  	
   

  	
  703

  
	
   

  	
  (d)

  	
   

  	
  703

  
	
   

  	
   

  	
   

  	
   

  
	
  Section

  	
  314(a)

  	
   

  	
  704

  
	
   

  	
  (a)(4)

  	
   

  	
  101,
  1004

  
	
   

  	
  (b)

  	
   

  	
  Not
  Applicable

  
	
   

  	
  (c)(1)

  	
   

  	
  102

  
	
   

  	
  (c)(2)

  	
   

  	
  102

  
	
   

  	
  (c)(3)

  	
   

  	
  Not
  Applicable

  
	
   

  	
  (d)

  	
   

  	
  Not
  Applicable

  
	
   

  	
  (e)

  	
   

  	
  102

  
	
   

  	
   

  	
   

  	
   

  
	
  Section

  	
  315(a)

  	
   

  	
  601

  
	
   

  	
  (b)

  	
   

  	
  602

  
	
   

  	
  (c)

  	
   

  	
  601

  
	
   

  	
  (d)

  	
   

  	
  601

  
	
   

  	
  (e)

  	
   

  	
  514

  
	
   

  	
   

  	
   

  	
   

  
	
  Section

  	
  316(a)

  	
   

  	
  101

  
	
   

  	
  (a)(1)(A)

  	
   

  	
  502,
  512

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  513

  
	
   

  	
  (a)(2)

  	
   

  	
  Not
  Applicable

  
	
   

  	
  (b)

  	
   

  	
  508

  

 

v

 

	
   

  	
  (c)

  	
   

  	
  104

  
	
   

  	
   

  	
   

  	
   

  
	
  Section

  	
  317(a)(1)

  	
   

  	
  503

  
	
   

  	
  (a)(2)

  	
   

  	
  504

  
	
   

  	
  (b)

  	
   

  	
  1003

  
	
   

  	
   

  	
   

  	
   

  
	
  Section

  	
  318(a)

  	
   

  	
  107

  

 

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

 

vi

 

INDENTURE, dated as of
                            ,
20      , among Arkansas Best Corporation, a
corporation duly organized and existing under the laws of the State of Delaware
(herein called the “Company”),
having its principal office at 3801 Old Greenwood Road, Fort Smith, Arkansas
72903, each of the Subsidiary Guarantors (as hereinafter defined) parties
hereto and [TRUSTEE’S NAME], a
[                          ]
duly organized and existing under the laws of
[                          ],
as Trustee (herein called the “Trustee”).

 

RECITALS OF THE COMPANY AND THE SUBSIDIARY GUARANTORS

 

The
Company has duly authorized the execution and delivery of this Indenture to
provide for the issuance from time to time of its unsecured debentures, notes
or other evidences of indebtedness (herein called the “Securities”),
to be issued in one or more series as in this Indenture provided.

 

The
Company and the Subsidiary Guarantors are members of the same consolidated
group of companies.  The Subsidiary
Guarantors will derive direct and indirect economic benefit from the issuance
of the Securities.  Accordingly, each
Subsidiary Guarantor has duly authorized the execution and delivery of this
Indenture to provide for its full, unconditional and joint and several
guarantee of the Securities to the extent provided in or pursuant to this
Indenture.

 

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

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

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

 

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

 

SECTION 101.                Definitions.

 

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

 

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

 

(2)           all other terms used herein which are defined in the
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 generally accepted
accounting principles, and, except as otherwise herein expressly provided, the
term “generally accepted accounting principles” with respect to 

 

1

 

any computation required or permitted
hereunder shall mean such accounting principles as are generally accepted at
the date of this instrument;

 

(4)           unless the context otherwise requires, any reference
to an “Article” or a “Section” refers to an Article or a Section, as the case
may be, of this Indenture; and

 

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

 

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

 

“Affiliate” of any specified Person means any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. 
For the purposes of this definition, “control” when used with respect to
any specified Person means the power to direct the management and policies of
such Person, directly or indirectly, whether through the ownership of voting securities,
by contract or otherwise; and the terms “controlling” and “controlled” have
meanings correlative to the foregoing; provided that direct or indirect
beneficial ownership of 10% or more of the Voting Stock of a Person shall be
deemed to be control.

 

“Authenticating Agent” means any Person authorized by the
Trustee pursuant to Section 614 to act on behalf of the Trustee to authenticate
Securities of one or more series.

 

“Board of Directors” means, with respect to the Company,
either the board of directors of the Company or any committee of that board
duly authorized to act for it in respect hereof, and with respect to any
Subsidiary Guarantor, either the board of directors of such Subsidiary
Guarantor or any committee of that board duly authorized to act for it in
respect hereof.

 

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

 

“Business Day”, when used with respect to any Place of
Payment, means each Monday, Tuesday, Wednesday, Thursday and Friday which is
not a day on which banking institutions in that Place of Payment are authorized
or obligated by law or executive order to close.

 

“Capital Stock” of any Person means any and all shares,
interests, participations or other equivalents (however designated) of
corporate stock or other equity participations, including partnership
interests, whether general or limited, of such Person.

 

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

 

2

 

“Common Stock” means the common stock, $0.01 par value, of
the Company as the same exists at the date of execution and delivery of this
Indenture or other Capital Stock of the Company into which such common stock is
converted, reclassified or changed from time to time.

 

“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.

 

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

 

“Conversion Agent” means any Person authorized by the Company
to convert any Securities on behalf of the Company.

 

“Corporate Trust Office” means the principal office of the
Trustee in
[                          ,
                          ]
at which at any particular time its corporate trust business shall be
administered, such office being located on the date hereof at [TRUSTEE’S
ADDRESS].

 

“corporation” means a corporation, association, limited
liability company, joint-stock company or business trust.

 

“Covenant Defeasance” has the meaning specified in Section
1503.

 

“Debt” of any Person at any date means any obligation
created, assumed or guaranteed by such Person for the repayment of borrowed
money.

 

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

 

“Defeasance” has the meaning specified in Section 1502.

 

“Depositary” means, with respect to Securities of any series
issuable in whole or in part in the form of one or more Global Securities, a
clearing agency registered under the Exchange Act that is designated to act as
Depositary for such Securities as contemplated by Section 301.

 

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

 

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

 

“Expiration Date” has the meaning specified in Section 104.

 

“Global Security” means a Security that evidences all or part
of the Securities of any series and bears the legend set forth in Section 205
(or such legend as may be specified as contemplated by Section 301 for such
Securities).

 

“Holder” means a Person in whose name a Security is
registered in the Security Register.

 

3

 

“Indenture” means this instrument as originally executed and
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, including, for all purposes of this instrument and any such
supplemental indenture, the provisions of the Trust Indenture Act that are
deemed to be a part of and govern this instrument and any such supplemental
indenture, respectively.  The term “Indenture”
shall also include the terms of particular series of Securities established as
contemplated by Section 301.

 

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

 

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

 

“Investment Company Act” means the Investment Company Act of
1940 and any statute successor thereto, in each case as amended from time to
time.

 

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

 

“Notice of Default” means a written notice of the kind
specified in Section 501(5).

 

“Officers’ Certificate” means a certificate signed by the
Chairman of the Board of Directors, a Vice Chairman of the Board of Directors,
the President or a Vice President, and by the Treasurer, an Assistant
Treasurer, the Secretary or an Assistant Secretary, of the Company or a
Subsidiary Guarantor, as the case may be, and delivered to the Trustee.  One of the officers signing an Officers’
Certificate given pursuant to Section 1004 shall be the principal executive,
financial or accounting officer of the Company.

 

“Opinion of Counsel” means, as to the Company or a Subsidiary
Guarantor, a written opinion of counsel, who may be counsel for the Company or
such Subsidiary Guarantor, as the case may be, and who shall be acceptable to
the Trustee.

 

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

 

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

 

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

 

(2)           Securities for whose payment
or redemption money in the necessary amount has been theretofore deposited with
the Trustee or any Paying Agent (other than the Company) in trust or set aside
and segregated in trust by the Company (if the Company shall act as its own 

 

4

 

Paying Agent) for the Holders of such
Securities; 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;

 

(3)           Securities as to which
Defeasance has been effected pursuant to Section 1502; and

 

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

 

provided,
however, that in determining whether the Holders of the requisite principal
amount of the Outstanding Securities have given, made or taken any request,
demand, authorization, direction, notice, consent, waiver or other action hereunder
as of any date, (A) the principal amount of an Original Issue Discount Security
which shall be deemed to be Outstanding shall be the amount of the principal
thereof which would be due and payable as of such date upon acceleration of the
Maturity thereof to such date pursuant to Section 502, (B) if, as of such date,
the principal amount payable at the Stated Maturity of a Security is not
determinable, the principal amount of such Security which shall be deemed to be
Outstanding shall be the amount as specified or determined as contemplated by
Section 301, (C) the principal amount of a Security denominated in one or more
foreign currencies or currency units which shall be deemed to be Outstanding
shall be the U.S. dollar equivalent, determined as of such date in the manner
provided as contemplated by Section 301, of the principal amount of such
Security (or, in the case of a Security described in clause (A) or (B) above,
of the amount determined as provided in such clause), and (D) Securities owned
by the Company, any Subsidiary Guarantor or any other obligor upon the
Securities or any Affiliate of the Company, any Subsidiary Guarantor or of such
other obligor shall be disregarded and deemed not to be Outstanding, except
that, in determining whether the Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent, waiver or
other action, only Securities which the Trustee knows to be so owned shall be
so disregarded.  Securities so owned
which have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Trustee the pledgee’s right so
to act with respect to such Securities and that the pledgee is not the Company,
a Subsidiary Guarantor or any other obligor upon the Securities or any
Affiliate of the Company, a Subsidiary Guarantor or of such other obligor.

 

“Paying Agent” means any Person authorized by the Company to
pay the principal of or any premium or interest on any Securities on behalf of
the Company.

 

“Person” means any individual, corporation, partnership,
joint venture, trust, unincorporated organization or government or any agency
or political subdivision thereof.

 

“Place of Payment”, when used with respect to the Securities
of any series, means the place or places where the principal of and any premium
and interest on the Securities of that series are payable as specified as
contemplated by Section 301.

 

5

 

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

 

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

 

“Redemption Price”, when used with respect to any Security to
be redeemed, means the price at which it is to be redeemed pursuant to this
Indenture.

 

“Regular Record Date” for the interest payable on any
Interest Payment Date on the Securities of any series means the date specified
for that purpose as contemplated by Section 301.

 

“Securities” has the meaning stated in the first recital of
this Indenture and more particularly means any Securities authenticated and delivered
under this Indenture.

 

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

 

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

 

“Significant Subsidiary” means, at any date of determination,
any Subsidiary that represents 10% or more of the Company’s consolidated total
assets at the end of the most recent fiscal quarter for which financial
information is available or 10% or more of the Company’s consolidated net
revenues or consolidated operating income for the most recent four quarters for
which financial information is available.

 

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

 

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

 

“Subsidiary” of any Person means (1) a corporation more than
50% of the combined voting power of the outstanding Voting Stock of which is
owned, directly or indirectly, by such Person or by one or more other
Subsidiaries of such Person or by such Person and one or more Subsidiaries
thereof or (2) any other Person (other than a corporation) in which such
Person, or one or more other Subsidiaries of such Person or such Person and one
or more other Subsidiaries thereof, directly or indirectly, has at least a
majority ownership and power to direct the policies, management and affairs
thereof.

 

6

 

“Subsidiary Guarantees” means the guarantees of each
Subsidiary Guarantor as provided in Article Thirteen.

 

“Subsidiary Guarantors” means (1) the subsidiaries listed in Schedule I
hereto; (2) each other Subsidiary of the Company that becomes a Subsidiary
Guarantor in accordance with Section 1305 hereof and (3) any successor of the
foregoing, in each case (1), (2) and (3) until such Subsidiary Guarantor ceases
to be such in accordance with Section 1304 hereof.

 

“Trust Indenture Act” means the Trust Indenture Act of 1939
as in force at the date as of which this instrument was executed; provided,
however, that in the event the Trust Indenture Act of 1939 is amended after
such date, “Trust Indenture Act” means, to the extent required by any such
amendment, the Trust Indenture Act of 1939 as so amended.

 

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

 

“U.S. Government Obligation” has the meaning specified in Section
1504.

 

“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”.

 

“Voting Stock” of any Person means Capital Stock of such
Person which ordinarily has voting power for the election of directors (or
persons performing similar functions) of such Person, whether at all times or
only so long as no senior class of securities has such voting power by reason of
any contingency.

 

“Wholly Owned Subsidiary” of any Person means a Subsidiary of
such Person all of the outstanding Capital Stock of which (other than directors’
qualifying shares) shall at the time be owned by such Person or by one or more
Wholly Owned Subsidiaries of such Person or by such Person and one or more
Wholly Owned Subsidiaries of such Person.

 

SECTION 102.                Compliance
Certificates and Opinions.

 

Upon
any application or request by the Company or any Subsidiary Guarantor to the
Trustee to take any action under any provision of this Indenture, the Company
and/or such Subsidiary Guarantor, as appropriate, shall furnish to the Trustee
such certificates and opinions as may be required under the Trust Indenture
Act.  Each such certificate or opinion
shall be given in the form of an Officers’ Certificate, if to be given by an
officer of the Company or a Subsidiary Guarantor, or an Opinion of Counsel, if
to be given by counsel, and shall comply with the requirements of the Trust
Indenture Act and any other requirements set forth in this Indenture.

 

7

 

Every
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture shall include:

 

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

 

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

 

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

 

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

 

SECTION 103.                Form
of Documents Delivered to Trustee.

 

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

 

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

 

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

 

SECTION 104.                Acts
of Holders; Record Dates.

 

Whenever
in this Indenture it is provided that the Holders of a specified percentage in
aggregate principal amount of the Securities of any or all series may take
action (including the making of any demand or request, the giving of any
direction, notice, consent or waiver or the taking of any other action) the
fact that at the time of taking any such action the Holders of such specified
percentage have joined therein may be evidenced (a) by any instrument or any
number of instruments of similar tenor executed by Holders in person or by
agent or proxy appointed in

 

8

 

writing,
(b) by the record of the Holders voting in favor thereof at any meeting of
Holders duly called and held in accordance with procedures approved by the
Trustee, (c) by a combination of such instrument or instruments and any such
record of such a meeting of Holders or (d) in the case of Securities evidenced
by a Global Security, by any electronic transmission or other message, whether
or not in written format, that complies with the Depositary’s applicable procedures.  Such evidence (and the action embodied
therein and evidenced thereby) are herein sometimes referred to as the “Act” of the relevant Holders.  Proof of execution of any such instrument or
of a writing appointing any such agent or proxy shall be sufficient for any
purpose of this Indenture and (subject to Section 601) conclusive in favor of
the Trustee and the Company, if made in the manner provided in this Section.

 

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

 

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

 

The
Company may set any day as a record date for the purpose of determining the Holders
of Outstanding Securities of any series entitled to give, make or take any
request, demand, authorization, direction, notice, consent, waiver or other
action provided or permitted by this Indenture to be given, made or taken by
Holders of Securities of such series, provided that the Company may not set a
record date for, and the provisions of this paragraph shall not apply with
respect to, the giving or making of any notice, declaration, request or
direction referred to in the next paragraph. 
If any record date is set pursuant to this paragraph, the Holders of
Outstanding Securities of the relevant series on such record date, and no other
Holders, shall be entitled to take the relevant action, whether or not such
Holders remain Holders after such record date; provided that no such action
shall be effective hereunder unless taken on or prior to the applicable
Expiration Date by Holders of the requisite principal amount of Outstanding
Securities of such series on such record date. 
Nothing in this paragraph shall be construed to prevent the Company from
setting a new record date for any action for which a record date has previously
been set pursuant to this paragraph (whereupon the record date previously set
shall automatically and with no action by any Person be cancelled and of no
effect), and nothing in this paragraph shall be construed to render ineffective
any action taken by Holders of the requisite principal amount of Outstanding
Securities of the relevant series on the date such action is taken.  Promptly after any record date is set
pursuant to this paragraph, the Company, at its own expense, shall cause notice
of such record date, the proposed action by Holders and the

 

9

 

applicable
Expiration Date to be given to the Trustee in writing and to each Holder of
Securities of the relevant series in the manner set forth in Section 106.

 

The
Trustee may set any day as a record date for the purpose of determining the
Holders of Outstanding Securities of any series entitled to join in the giving
or making of (i) any Notice of Default, (ii) any declaration of acceleration
referred to in Section 502, (iii) any request to institute proceedings referred
to in Section 507(2) or (iv) any direction referred to in Section 512, in each
case with respect to Securities of such series. 
If any record date is set pursuant to this paragraph, the Holders of
Outstanding Securities of such series on such record date, and no other
Holders, shall be entitled to join in such notice, declaration, request or
direction, whether or not such Holders remain Holders after such record date;
provided that no such action shall be effective hereunder unless taken on or
prior to the applicable Expiration Date by Holders of the requisite principal
amount of Outstanding Securities of such series on such record date.  Nothing in this paragraph shall be construed
to prevent the Trustee from setting a new record date for any action for which
a record date has previously been set pursuant to this paragraph (whereupon the
record date previously set shall automatically and with no action by any Person
be cancelled and of no effect), and nothing in this paragraph shall be
construed to render ineffective any action taken by Holders of the requisite
principal amount of Outstanding Securities of the relevant series on the date
such action is taken.  Promptly after any
record date is set pursuant to this paragraph, the Trustee, at the Company’s
expense, shall cause notice of such record date, the proposed action by Holders
and the applicable Expiration Date to be given to the Company in writing and to
each Holder of Securities of the relevant series in the manner set forth in
Section 106.

 

With
respect to any record date set pursuant to this Section, the party hereto which
sets such record dates may designate any day as the “Expiration
Date” and from time to time may change the Expiration Date to any
earlier or later day; provided that no such change shall be effective unless
notice of the proposed new Expiration Date is given to the other party hereto
in writing, and to each Holder of Securities of the relevant series in the
manner set forth in Section 106, on or prior to the existing Expiration
Date.  If an Expiration Date is not
designated with respect to any record date set pursuant to this Section, the
party hereto which set such record date shall be deemed to have initially
designated the 180th day after such record date as the Expiration Date with
respect thereto, subject to its right to change the Expiration Date as provided
in this paragraph.  Notwithstanding the
foregoing, no Expiration Date shall be later than the 180th day after the
applicable record date.

 

Without
limiting the foregoing, a Holder entitled hereunder to take any action
hereunder with regard to any particular Security may do so with regard to all
or any part of the principal amount of such Security or by one or more duly
appointed agents each of which may do so pursuant to such appointment with
regard to all or any part of such principal amount.

 

SECTION 105.                Notices,
Etc., to Trustee and Company.

 

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

 

10

 

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

 

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

 

SECTION 106.                Notice
to Holders; Waiver.

 

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

 

In
case by reason of the suspension of 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.

 

SECTION 107.                Conflict
with Trust Indenture Act.

 

If
any provision hereof limits, qualifies or conflicts with a provision of the
Trust Indenture Act which is required under such Act to be a part of and govern
this Indenture, the latter provision shall control.  If any provision of this Indenture modifies
or excludes any provision of the Trust Indenture Act which may be so modified
or excluded, the latter provision shall be deemed to apply to this Indenture as
so modified or to be excluded, as the case may be.

 

SECTION 108.                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.

 

11

 

SECTION 109.                Successors
and Assigns.

 

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

 

SECTION 110.                Separability
Clause.

 

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

 

SECTION 111.                Benefits
of Indenture.

 

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

 

SECTION 112.                Governing
Law.

 

This
Indenture, the Securities and the Subsidiary Guarantees shall be governed by
and construed in accordance with the law of the State of New York.

 

SECTION 113.                Legal
Holidays.

 

In
any case where any Interest Payment Date, Redemption Date, purchase date or
Stated Maturity of any Security shall not be a Business Day at any Place of
Payment, then (notwithstanding any other provision of this Indenture or of the
Securities (other than a provision of any Security which specifically states
that such provision shall apply in lieu of this Section)) payment of interest
or principal (and premium, if any) need not be made at such Place of Payment on
such date, but may be made on the next succeeding Business Day at such Place of
Payment with the same force and effect as if made on the Interest Payment Date,
Redemption Date or purchase date, or at the Stated Maturity.

 

SECTION 114.                No
Recourse Against Others.

 

The
directors, officers, employees and stockholders of the Company and, if
applicable, the Subsidiary Guarantors, as such, shall have no liability for any
obligations of the Company or any Subsidiary Guarantor under the Securities,
any Subsidiary Guarantees of this Indenture or for any claim based on, in
respect of, or by reason of, such obligations or their creation.  By accepting a Security, each Holder shall be
deemed to have waived and released all such liability.  The waiver and release shall be a part of the
consideration for the issue of the Securities.

 

12

 

ARTICLE TWO

SECURITY FORMS

 

SECTION 201.                Forms
Generally.

 

The
Securities of each series and, if applicable, the notations of Subsidiary
Guarantees to be endorsed thereon shall be in substantially the form set forth
in this Article, or in such other form as shall be established by or pursuant
to a Board Resolution or in one or more indentures supplemental hereto, in each
case with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Indenture, and may have such
letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of
any securities exchange or Depositary therefor or as may, consistently
herewith, be determined by the officers executing such Securities or notations
of Subsidiary Guarantees, as the case may be, as evidenced by their execution
thereof.  If the form of Securities of
any series is established by action taken pursuant to a Board Resolution, a
copy of an appropriate record of such action shall be certified by the
Secretary or an Assistant Secretary of the Company and delivered to the Trustee
at or prior to the delivery of the Company Order contemplated by Section 303
for the authentication and delivery of such Securities.

 

The
definitive Securities shall be printed, lithographed or engraved on steel
engraved borders or may be produced in any other manner, all as determined by
the officers executing such Securities, as evidenced by their execution of such
Securities.

 

SECTION 202.                Form of
Face of Security.

 

[Insert
any legend required by the Internal Revenue Code and the regulations
thereunder.]

 

Arkansas Best Corporation

 

	
  No.

  	
  $

  

 

Arkansas
Best Corporation, a corporation duly organized and existing under the laws of
Delaware (herein called the “Company,” which term includes any successor Person
under the Indenture hereinafter referred to), for value received, hereby
promises to pay to
                          ,
or registered assigns, the principal sum of                   
Dollars on
                          
[if the Security is to bear interest prior to Maturity, insert — , and to pay
interest thereon from
                          
or from the most recent Interest Payment Date to which interest has been paid
or duly provided for, semi-annually on
                          
and                           
in each year, commencing
                          ,
at the rate of       % per annum, until the
principal hereof is paid or made available for payment, provided that any
principal and premium, and any such installment of interest, which is overdue
shall bear interest at the rate of       % per
annum (to the extent that the payment of such interest shall be legally
enforceable), from the dates such amounts are due until they are paid or made
available for payment, and such interest shall be payable on demand.  The interest so payable, and punctually paid
or duly provided for, on any Interest Payment Date will, as provided in such
Indenture, be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest, which shall be the
                          
or
                          
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date.  Any such interest
not so

 

13

 

punctually
paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name
this Security (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders
of Securities of this series not less than 10 days prior to such Special Record
Date, or be paid at any time in any other lawful manner not inconsistent with
the requirements of any securities exchange on which the Securities of this
series may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in said Indenture].

 

[If
the Security is not to bear interest prior to Maturity, insert — The principal
of this Security shall not bear interest except in the case of a default in
payment of principal upon acceleration, upon redemption or at Stated Maturity
and in such case the overdue principal and any overdue premium shall bear
interest at the rate of       % per annum (to the
extent that the payment of such interest shall be legally enforceable), from
the dates such amounts are due until they are paid or made available for
payment.  Interest on any overdue
principal or premium shall be payable on demand.  Any such interest on overdue principal or
premium which is not paid on demand shall bear interest at the rate of
      % per annum (to the extent that the payment
of such interest on interest shall be legally enforceable), from the date of
such demand until the amount so demanded is paid or made available for
payment.  Interest on any overdue
interest shall be payable on demand.]

 

Payment
of the principal of (and premium, if any) and [if applicable, insert — any
such] interest on this Security will be made at the office or agency of the Company
maintained for that purpose in
                          ,
in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts; provided,
however, that at the option of the Company payment of interest may be made by
check mailed to the address of the Person entitled thereto as such address
shall appear in the Security Register.

 

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

 

Unless
the certificate of authentication hereon has been executed by the Trustee
referred to on the reverse hereof by manual signature, this Security shall not
be entitled to any benefit under the Indenture or be valid or obligatory for
any purpose.

 

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

 

 

	
  Dated:

  	
   

  	
   

  	
  ARKANSAS
  BEST CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
  [Attest:                                                         ]

  	
   

  	
   

  

 

14

 

SECTION 203.                Form of
Reverse of Security.

 

This
Security is one of a duly authorized issue of securities of the Company (herein
called the “Securities”), issued and to be issued in one or more series under
an Indenture, dated as of
                          ,
20     (herein called the “Indenture”, which term shall
have the meaning assigned to it in such instrument), among the Company, the
Subsidiary Guarantors named therein and [TRUSTEE’S NAME], as Trustee (herein
called the “Trustee”, which term includes any successor trustee under the
Indenture), and reference is hereby made to the Indenture for a statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Company, the Subsidiary Guarantors, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered.  This
Security is one of the series designated on the face hereof [if applicable,
insert — , limited in aggregate principal amount to
$                          ].

 

[If
applicable, insert — The Securities of this series are subject to redemption
upon not less than 30 nor more than 60 days’ notice by mail, [if applicable,
insert — (1) on
                          
in any year commencing with the year        and
ending with the year        through operation of
the sinking fund for this series at a Redemption Price equal to 100% of the
principal amount, and (2)] at any time [if applicable, insert — on or after
                          ,
20    ], as a whole or in part, at the election of the
Company, at the following Redemption Prices (expressed as percentages of the
principal amount):  If redeemed [if
applicable, insert — on or before
                          ,
      %, and if redeemed] during the 12-month
period beginning
                          
of the years indicated,

 

	
  Redemption

  	
   

  	
  Redemption

  	
   

  
	
  Year

  	
   

  	
  Price

  	
   

  	
  Year

  	
   

  	
  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

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

 

[If
applicable, insert — The Securities of this series are subject to redemption
upon not less than 30 nor more than 60 days’ notice by mail, (1) on
                          
in any year commencing with the year        and
ending with the year        through operation of
the sinking fund for this series at the Redemption Prices for redemption
through operation of the sinking fund (expressed as percentages of the
principal amount) set forth in the table below, and (2) at any time [if
applicable, insert — on or after
                          ],
as a whole or in part, at the election of the Company, at the Redemption Prices
for redemption otherwise than through operation of the sinking fund (expressed
as percentages of the principal amount) set forth in the table below:  If redeemed during the 12-month period
beginning
                          
of the years indicated,

 

15

 

	
  Year

  	
   

  	
  Redemption Price for Redemption

  Through Operation of the Sinking

  Fund

  	
   

  	
  Redemption Price For Redemption

  Otherwise Than Through Operation

  of the Sinking Fund

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

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

 

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

 

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

 

[If
the Security is subject to redemption of any kind, insert — In the event of
redemption of this Security in part only, a new Security or Securities of this
series and of like tenor for the unredeemed portion hereof will be issued in
the name of the Holder hereof upon the cancellation hereof.]

 

[If
the Security is subject to conversion, insert — Subject to the provisions of
the Indenture, the Holder has the right to convert the principal amount of this
Security into fully paid and nonassessable shares of Common Stock of the
Company at the initial conversion price per share of Common Stock of
$       (or $      
in principal amount of Securities for each such share of Common Stock), or at
the adjusted conversion price then in effect, if adjustment has been made as
provided in the Indenture, upon surrender of the Security to the Conversion
Agent, together with a fully executed notice in substantially the form attached
hereto and, if required by the Indenture, an amount equal to accrued interest
payable on this Security.]

 

[If
applicable, insert — As provided in the Indenture and subject to certain
limitations therein set forth, the obligations of the Company under this
Security are guaranteed pursuant to the Indenture as indicated in the notation
of Subsidiary Guarantee endorsed hereon. 
The

 

16

 

Indenture
provides that a Subsidiary Guarantor shall be released from its Subsidiary
Guarantee upon compliance with certain conditions.]

 

[If
applicable, insert — The Indenture contains provisions for Defeasance at any
time of [the entire indebtedness of this Security] [or] [certain restrictive
covenants and Events of Default with respect to this Security] [, in each case]
upon compliance with certain conditions set forth in the Indenture.]

 

[If
the Security is not an Original Issue Discount Security, insert — If an Event
of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due
and payable in the manner and with the effect provided in the Indenture.]

 

[If
the Security is an Original Issue Discount Security, insert — If an Event of
Default with respect to Securities of this series shall occur and be
continuing, an amount of principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.  Such amount shall be equal to
— insert formula for determining the amount. 
Upon payment (i) of the amount of principal so declared due and
payable and (ii) of interest on any overdue principal, premium and
interest (in each case to the extent that the payment of such interest shall be
legally enforceable), all of the Company’s obligations in respect of the
payment of the principal of and premium and interest, if any, on the Securities
of this series shall terminate.]

 

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

 

As
provided in and subject to the provisions of the Indenture, the Holder of this
Security shall not have the right to institute any proceeding with respect to
the Indenture or for the appointment of a receiver or trustee or for any other
remedy thereunder, unless such Holder shall have previously given the Trustee
written notice of a continuing Event of Default with respect to the Securities
of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written
request to the Trustee to institute proceedings in respect of such Event of
Default as Trustee and offered the Trustee reasonable security or indemnity,
and the Trustee shall not have received from the Holders of a majority in
principal amount of Securities of this series at the time Outstanding a
direction inconsistent with such request, and shall have failed to institute
any such proceeding, for 60 days

 

17

 

after
receipt of such notice, request and offer of indemnity.  The foregoing shall not apply to any suit
instituted by the Holder of this Security for the enforcement of any payment of
principal hereof or any premium or interest hereon on or after the respective
due dates expressed herein [if applicable, insert — or the right to convert
this Security in accordance with its terms].

 

No
reference herein to the Indenture and no provision of this Security or of the
Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and any premium and
interest on this Security at the times, place and rate, and in the coin or
currency, herein prescribed [if applicable, insert — and to convert such
Security in accordance with its terms].

 

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

 

The
Securities of this series are issuable only in registered form without coupons in
denominations of
$                  
and any integral multiple thereof.  As
provided in the Indenture and subject to certain limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal
amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

 

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

 

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

 

All
terms used in this Security which are defined in the Indenture shall have the
meanings assigned to them in the Indenture.

 

SECTION 204.                Form of
Notation of Subsidiary Guarantee.

 

NOTATION OF SUBSIDIARY GUARANTEE

 

Each
of the Subsidiary Guarantors (which term includes any successor Person under
the Indenture) has fully, unconditionally and absolutely guaranteed, to the
extent set forth in the Indenture and subject to the provisions in the
Indenture, the due and punctual payment of the principal of, and premium, if
any, and interest on the Securities and all other amounts due and payable under
the Indenture and the Securities by the Company.

 

18

 

The
obligations of the Subsidiary Guarantors to the Holders of Securities and to
the Trustee pursuant to the Subsidiary Guarantee and the Indenture are
expressly set forth in Article Thirteen of the Indenture and reference is
hereby made to the Indenture for the precise terms of the Subsidiary Guarantee.

 

	
   

  	
  [Insert
  Names of Subsidiary Guarantors]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  

 

SECTION 205.                Form of
Legend for Global Securities.

 

Unless
otherwise specified as contemplated by Section 301 for the Securities
evidenced thereby, every Global Security authenticated and delivered hereunder
shall bear a legend in substantially the following form:

 

THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE
THEREOF.  THIS SECURITY MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER
OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE
NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

SECTION 206.                Form of
Trustee’s Certificate of Authentication.

 

The
Trustee’s certificates of authentication shall be in substantially the
following form:

 

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

 

	
   

  	
  [TRUSTEE’S
  NAME], as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized
  Officer

  

 

SECTION 207.                Form of
Conversion Notice.

 

Each
convertible Security shall have attached thereto, or set forth on the reverse
of the Security, a notice of conversion in substantially the following form:

 

19

 

Conversion Notice

 

To:          Arkansas Best Corporation

 

The
undersigned owner of this Security hereby: 
(i) irrevocably exercises the option to convert this Security, or
the portion hereof below designated, for shares of Common Stock of Arkansas
Best Corporation in accordance with the terms of the Indenture referred to in
this Security and (ii) directs that such shares of Common Stock
deliverable upon the conversion, together with any check in payment for
fractional shares and any Security(ies) representing any unconverted principal
amount hereof, be issued and delivered to the registered holder hereof unless a
different name has been indicated below. 
If shares are to be delivered registered in the name of a Person other than
the undersigned, the undersigned will pay all transfer taxes payable with
respect thereto.  Any amount required to
be paid by the undersigned on account of interest accompanies this Security.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  

 

Fill
in for registration of shares if to be delivered, and of Securities if to be
issued, otherwise than to and in the name of the registered holder.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Social
  Security or other Taxpayer

  
	
   

  	
   

  	
  Identification
  Number

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Name)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Please
  print name and address)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Principal
  amount to be converted:  (if less than
  all)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature
  Guarantee*

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
				

 

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

 

20

 

ARTICLE THREE

THE SECURITIES

 

SECTION 301.                Amount
Unlimited; Issuable in Series.

 

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

 

The
Securities may be issued in one or more series. 
There shall be established in or pursuant to a Board Resolution and,
subject to Section 303, set forth, or determined in the manner provided,
in an Officers’ Certificate, or established in one or more indentures
supplemental hereto, prior to the issuance of Securities of any series,

 

(1)           the title of the Securities of the series (which
shall distinguish the Securities of the series from Securities of any other
series);

 

(2)           if the Securities of the series will not have the
benefit of the Subsidiary Guarantees of the Subsidiary Guarantors;

 

(3)           any limit upon the aggregate principal amount of the
Securities of the 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 the
series pursuant to Section 304, 305, 306, 906 or 1107 and except for any
Securities which, pursuant to Section 303, are deemed never to have been
authenticated and delivered hereunder);

 

(4)           the Person to whom any interest on a Security of the
series shall be payable, if other than the Person in whose name that Security
(or one or more Predecessor Securities) is registered at the close of business
on the Regular Record Date for such interest;

 

(5)           the date or dates on which the principal of any
Securities of the series is payable;

 

(6)           the rate or rates at which any Securities of the
series shall bear interest, if any, the date or dates from which any such
interest shall accrue, the Interest Payment Dates on which any such interest
shall be payable and the Regular Record Date for any such interest payable on
any Interest Payment Date;

 

(7)           the place or places where the principal of and any
premium and interest on any Securities of the series shall be payable;

 

(8)           the period or periods within which, the price or
prices at which and the terms and conditions upon which any Securities of the
series may be redeemed, in whole or in part, at the option of the Company and,
if other than by a Board Resolution, the manner in which any election by the
Company to redeem the Securities shall be evidenced;

 

(9)           the obligation, if any, of the Company to redeem or
purchase any Securities of the series pursuant to any sinking fund or analogous
provisions or at the option of the Holder thereof and the period or periods
within which, the price or prices at which and the terms and conditions

 

21

 

upon
which any Securities of the series shall be redeemed or purchased, in whole or
in part, pursuant to such obligation;

 

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

 

(11)         if the amount of principal of or any premium or
interest on any Securities of the series may be determined with reference to an
index or pursuant to a formula, the manner in which such amounts shall be
determined;

 

(12)         if other than the currency of the United States of
America, the currency, currencies or currency units in which the principal of
or any premium or interest on any Securities of the series shall be payable and
the manner of determining the equivalent thereof in the currency of the United
States of America for any purpose, including for purposes of the definition of “Outstanding”
in Section 101;

 

(13)         if the principal of or any premium or interest on
any Securities of the series is to be payable, at the election of the Company
or the Holder thereof, in one or more currencies or currency units other than
that or those in which such Securities are stated to be payable, the currency,
currencies or currency units in which the principal of or any premium or
interest on such Securities as to which such election is made shall be payable,
the periods within which and the terms and conditions upon which such election
is to be made and the amount so payable (or the manner in which such amount
shall be determined);

 

(14)         if other than the entire principal amount thereof,
the portion of the principal amount of any Securities of the series which shall
be payable upon declaration of acceleration of the Maturity thereof pursuant to
Section 502;

 

(15)         if the principal amount payable at the Stated
Maturity of any Securities of the series will not be determinable as of any one
or more dates prior to the Stated Maturity, the amount which shall be deemed to
be the principal amount of such Securities as of any such date for any purpose
thereunder or hereunder, including the principal amount thereof which shall be
due and payable upon any Maturity other than the Stated Maturity or which shall
be deemed to be Outstanding as of any date prior to the Stated Maturity (or, in
any such case, the manner in which such amount deemed to be the principal
amount shall be determined);

 

(16)         if applicable, that the Securities of the series, in
whole or any specified part, shall be defeasible pursuant to Section 1502
or Section 1503 or both such Sections and, if other than by a Board
Resolution, the manner in which any election by the Company to defease such
Securities shall be evidenced;

 

(17)         if applicable, that any Securities of the series
shall be issuable in whole or in part in the form of one or more Global
Securities and, in such case, the respective Depositories for such Global
Securities, the form of any legend or legends which shall be borne by any such
Global Security in addition to or in lieu of that set forth in Section 205
and any circumstances in addition to or in lieu of those set forth in clause (2) of
the last paragraph of Section 305 in which any such Global Security may be
exchanged in whole or in part for Securities registered, and any

 

22

 

 transfer of such Global Security in whole or
in part may be registered, in the name or names of Persons other than the
Depositary for such Global Security or a nominee thereof;

 

(18)         any addition to or change in the Events of Default
which applies to any Securities of the series and any change in the right of
the Trustee or the requisite Holders of such Securities to declare the
principal amount thereof due and payable pursuant to Section 502;

 

(19)         any addition to or change in the covenants set forth
in Article Ten which applies to Securities of the series;

 

(20)         whether the Securities of the series will be
convertible into Common Stock (or cash in lieu thereof) and, if so, the terms
and conditions upon which such conversion will be effected; and

 

(21)         any other terms of the series (which terms shall not
be inconsistent with the provisions of this Indenture, except as permitted by Section 901(5)).

 

All
Securities of any one series shall be substantially identical except as to
denomination and except as may otherwise be provided in or pursuant to the
Board Resolution referred to above and (subject to Section 303) set forth,
or determined in the manner provided, in the Officers’ Certificate referred to
above or in any such indenture supplemental hereto.

 

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

 

The
Securities of each series shall have the benefit of the Subsidiary Guarantees
unless the Company elects otherwise upon the establishment of a series pursuant
to this Section 301.

 

SECTION 302.                Denominations.

 

The
Securities of each series shall be issuable only in registered form without
coupons and only in such denominations as shall be specified as contemplated by
Section 301.  In the absence of any
such specified denomination with respect to the Securities of any series, the
Securities of such series shall be issuable in denominations of $1,000 and any
integral multiple thereof.

 

SECTION 303.                Execution,
Authentication, Delivery and Dating.

 

The
Securities shall be executed on behalf of the Company by its Chairman of the
Board of Directors, its Vice Chairman of the Board of Directors, its President
or one of its Vice Presidents.  If its
corporate seal is reproduced thereon, then it shall be attested by its
Secretary or one of its Assistant Secretaries. 
The signature of any of these officers on the Securities may be manual
or facsimile.

 

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

 

23

 

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

 

At
any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series executed by the
Company and, if applicable, having endorsed thereon the notations of Subsidiary
Guarantees executed as provided in Section 1303 by the Subsidiary
Guarantors to the Trustee for authentication, together with a Company Order for
the authentication and delivery of such Securities, and the Trustee in
accordance with the Company Order shall authenticate and deliver such
Securities.  If the form or terms of the
Securities of the series have been established by or pursuant to one or more
Board Resolutions as permitted by Sections 201 and 301, in authenticating such
Securities, and accepting the additional responsibilities under this Indenture
in relation to such Securities, the Trustee shall be entitled to receive, and
(subject to Section 601) shall be fully protected in relying upon, an
Opinion of Counsel stating,

 

(1)           if the form of such Securities has been established
by or pursuant to Board Resolution as permitted by Section 201, that such
form has been established in conformity with the provisions of this Indenture;

 

(2)           if the terms of such Securities have been
established by or pursuant to Board Resolution as permitted by Section 301,
that such terms have been established in conformity with the provisions of this
Indenture; and

 

(3)           that such Securities, when 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
legally binding obligations of the Company, and, if applicable, the notations
of Subsidiary Guarantees endorsed thereon will constitute valid and legally
binding obligations of the Subsidiary Guarantors, enforceable in accordance
with their terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating
to or affecting creditors’ rights and to general equity principles.

 

If
such form or terms have been so established, the Trustee shall not be required
to authenticate such 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 which is not
reasonably acceptable to the Trustee.

 

Notwithstanding
the provisions of Section 301 and of the preceding paragraph, if all
Securities of a series are not to be originally issued at one time, it shall
not be necessary to deliver the Officers’ Certificate otherwise required
pursuant to Section 301 or the Company Order and Opinion of Counsel
otherwise required pursuant to such preceding paragraph at or prior to the
authentication of each Security of such series if such documents are delivered
at or prior to the authentication upon original issuance of the first Security
of such series to be issued.

 

Each
Security shall be dated the date of its authentication.

 

No
Security or Subsidiary Guarantee 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 herein executed by the Trustee by manual

 

24

 

signature,
and such certificate upon any Security shall be conclusive evidence, and the
only evidence, that such Security has been duly authenticated and delivered
hereunder.  Notwithstanding the
foregoing, if any Security shall have been authenticated and delivered
hereunder but never issued and sold by the Company, and the Company shall
deliver such Security to the Trustee for cancellation as provided in Section 309,
for all purposes of this Indenture such Security shall be deemed never to have
been authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture.

 

SECTION 304.                Temporary
Securities.

 

Pending
the preparation of definitive Securities of any series, the Company may
execute, and upon Company Order the Trustee shall authenticate and deliver,
temporary Securities which are printed, lithographed, typewritten, mimeographed
or otherwise produced, in any authorized denomination, substantially of the
tenor of the definitive Securities and, if applicable, having endorsed thereon
the notations of Subsidiary Guarantees in lieu of which they are issued and
with such appropriate insertions, omissions, substitutions and other variations
as the officers executing such Securities and, if applicable, notations of
Subsidiary Guarantees may determine, as evidenced by their execution of such
Securities and notations of Subsidiary Guarantees.

 

If
temporary Securities of any series are issued, the Company will cause
definitive Securities of that series to be prepared without unreasonable delay.  After the preparation of definitive
Securities of such series, the temporary Securities of such series shall be
exchangeable for definitive Securities of such series upon surrender of the
temporary Securities of such series at the office or agency of the Company in a
Place of Payment for that series, without charge to the Holder.  Upon surrender for cancellation of any one or
more temporary Securities of any series, the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor one or more
definitive Securities of the same series, of any authorized denominations and
of like tenor and aggregate principal amount and, if applicable, having
endorsed thereon the notations of Subsidiary Guarantees executed by the
Subsidiary Guarantors.  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 and tenor.

 

SECTION 305.                Registration,
Registration of Transfer and Exchange.

 

The
Company shall cause to be kept at the Corporate Trust Office of the Trustee a
register (the register maintained in such office and in any other office or
agency of the Company in a Place of Payment being herein sometimes collectively
referred to as the “Security Register”)
in which, subject to such reasonable regulations as it may prescribe, the
Company shall provide for the registration of Securities and of transfers of
Securities.  The Trustee is hereby
appointed “Security Registrar” for the purpose
of registering Securities and transfers of Securities as herein provided.

 

Upon
surrender for registration of transfer of any Security of a series at the
office or agency of the Company in a Place of Payment for that series, the
Company shall execute, if applicable the Subsidiary Guarantors shall execute
the notations of Subsidiary Guarantees endorsed thereon and the Trustee shall
authenticate and deliver, in the name of the designated

 

25

 

transferee
or transferees, one or more new Securities of the same series, of any
authorized denominations and of like tenor and aggregate principal amount.

 

At
the option of the Holder, Securities of any series may be exchanged for other
Securities of the same series, of any authorized denominations and of like
tenor and aggregate principal amount, upon surrender of the Securities to be
exchanged at such office or agency. 
Whenever any Securities are so surrendered for exchange, the Company
shall execute, if applicable the Subsidiary Guarantors shall execute the
notations of Subsidiary Guarantees endorsed thereon and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange
is entitled to receive.

 

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

 

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

 

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

 

If
the Securities of any series (or of any series and specified tenor) are to be
redeemed in part, the Company shall not be required (A) to issue, register
the transfer of or exchange any Securities of that series (or of that series
and specified tenor, as the case may be) during a period beginning at the
opening of business 15 days before the day of the mailing of a notice of
redemption of any such Securities selected for redemption under Section 1103
and ending at the close of business on the day of such mailing, or (B) to
register the transfer of or exchange any Security so selected for redemption in
whole or in part, except the unredeemed portion of any Security being redeemed
in part.

 

The
provisions of clauses (1), (2), (3) and (4) below shall apply only to
Global Securities:

 

(1)           Each Global Security authenticated under this
Indenture shall be registered in the name of the Depositary designated for such
Global Security or a nominee thereof and delivered to such Depositary or a
nominee thereof or custodian therefor, and each such Global Security shall
constitute a single Security for all purposes of this Indenture.

 

(2)           Notwithstanding any other provision in this
Indenture, no Global Security may be exchanged in whole or in part for
Securities registered, and no transfer of a Global Security in whole or in part
may be registered, in the name of any Person other than the Depositary for such
Global Security or a nominee thereof unless (A) such Depositary (i) has
notified the Company that it is unwilling or unable to continue as Depositary
for such Global Security or (ii) has ceased to be a clearing agency
registered under the Exchange Act, and in either case the Company fails

 

26

 

to
appoint a successor Depositary within 90 days, (B) there shall have
occurred and be continuing an Event of Default with respect to such Global
Security and the Depositary shall have notified the Trustee of its decision to
exchange such Global Security for Securities in certificated form, (C) subject
to the rules of the Depositary, the Company shall have elected to
terminate the book-entry system through the Depositary or (D) there shall
exist such circumstances, if any, in addition to or in lieu of the foregoing as
have been specified for this purpose as contemplated by Section 301.

 

(3)           Subject to clause (2) above, any exchange of a
Global Security for other Securities may be made in whole or in part, and all
Securities issued in exchange for a Global Security or any portion thereof
shall be registered in such names as the Depositary for such Global Security
shall direct.

 

(4)           Every Security authenticated and delivered upon
registration of transfer of, or in exchange for or in lieu of, a Global
Security or any portion thereof, whether pursuant to this Section, Section 304,
306, 906 or 1107 or otherwise, shall be authenticated and delivered in the form
of, and shall be, a Global Security, unless such Security is registered in the
name of a Person other than the Depositary for such Global Security or a
nominee thereof.

 

SECTION 306.                Mutilated,
Destroyed, Lost and Stolen Securities.

 

If
any mutilated Security is surrendered to the Trustee, the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor a new
Security of the same series and of like tenor and principal amount and bearing
a number not contemporaneously outstanding, and, if applicable, the Subsidiary
Guarantors shall execute the notation of Subsidiary Guarantee endorsed thereon.

 

If
there shall be delivered to the Company and the Trustee (i) evidence to
their satisfaction of the destruction, loss or theft of any Security and (ii) such
security or indemnity as may be required by them to save each of them and any
agent of either of them harmless from any loss that any of them may suffer if a
Security is replaced, then, in the absence of notice to the Company or the
Trustee that such Security has been acquired by a protected purchaser, the
Company shall execute and the Trustee shall authenticate and deliver, in lieu
of any such destroyed, lost or stolen Security, a new Security of the same
series and of like tenor and principal amount and bearing a number not
contemporaneously outstanding, and, if applicable, the Subsidiary Guarantors
shall execute the notation of Subsidiary Guarantee endorsed thereon.  In case any such mutilated, destroyed, lost
or stolen Security has become or is about to become due and payable or is to be
converted, the Company in its discretion may, instead of issuing a new
Security, pay or authorize the conversion of such Security (without surrender
thereof save in the case of a mutilated Security).

 

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

 

27

 

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

 

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

 

SECTION 307.                Payment
of Interest; Interest Rights Preserved.

 

Except
as otherwise provided as contemplated by Section 301 with respect to any
series of Securities, interest on any Security which is payable, and is
punctually paid or duly provided for, on any Interest Payment Date shall be
paid to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest.

 

Any
interest on any Security of any series which is payable, but is not punctually
paid or duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be payable to
the Holder on the relevant Regular Record Date by virtue of having been such
Holder, and such Defaulted Interest may be paid by the Company, at its election
in each case, as provided in clause (1) or (2) below:

 

(1)           The Company may elect to make payment of any
Defaulted Interest to the Persons in whose names the Securities of such series
(or their respective Predecessor Securities) are registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest,
which shall be fixed in the following manner. 
The Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each Security of such series 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 prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this clause provided.  Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall be not more
than 15 days and not less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the
notice of the proposed payment.  The
Trustee shall promptly notify the Company of such Special Record Date and, in
the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be
given to each Holder of Securities of such series in the manner set forth in Section 106,
not less than 10 days prior to such Special Record Date.  Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so mailed,
such Defaulted Interest shall be paid to the Persons in whose names the
Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on such Special Record Date and shall no
longer be payable pursuant to the following clause (2).

 

28

 

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

 

Subject
to the foregoing provisions of this Section, 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 Security for registration of transfer, the Company, the
Subsidiary Guarantors, the Trustee and any agent of the Company, the Subsidiary
Guarantors, or the Trustee may treat the Person in whose name such Security is
registered as the owner of such Security for the purpose of receiving payment
of principal of and any premium and (subject to Section 307) any interest
on such Security and for all other purposes whatsoever, whether or not such
Security be overdue, and neither the Company, any Subsidiary Guarantor, the
Trustee nor any agent of the Company, any Subsidiary Guarantor, or the Trustee
shall be affected by notice to the contrary.

 

SECTION 309.                Cancellation.

 

All
Securities surrendered for payment, redemption, purchase, registration of
transfer or exchange or for credit against any sinking fund payment shall, if
surrendered to any Person other than the Trustee, be delivered to the Trustee
and shall be promptly cancelled by it. 
The Company may at any time deliver to the Trustee for cancellation any
Securities previously authenticated and delivered hereunder which the Company
may have acquired in any manner whatsoever, and may deliver to the Trustee (or
to any other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Company has not issued and sold,
and all Securities so delivered shall be promptly cancelled by the
Trustee.  No Securities shall be
authenticated in lieu of or in exchange for any Securities cancelled as provided
in this Section, except as expressly permitted by this Indenture.  All cancelled Securities held by the Trustee
shall be disposed of in accordance with its standard procedures, unless as
directed by a Company Order.

 

SECTION 310.                Computation
of Interest.

 

Except
as otherwise specified as contemplated by Section 301 for Securities of
any series, interest on the Securities of each series shall be computed on the
basis of a 360-day year of twelve 30-day months.

 

29

 

ARTICLE FOUR

SATISFACTION AND DISCHARGE

 

SECTION 401.                Satisfaction
and Discharge of Indenture.

 

This
Indenture shall upon Company Request cease to be of further effect with respect
to the Securities of any series, and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when

 

(1)           either

 

(A)          all Securities of such series theretofore
authenticated and delivered (other than (i) Securities of such series
which have been destroyed, lost or stolen and which have been replaced or paid
as provided in Section 306 and (ii) Securities 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 such Securities of such series 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) are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of redemption
by the Trustee in the name, and at the expense, of the Company,

 

and
the Company or, if applicable, a Subsidiary Guarantor, in the case of (i), (ii) or
(iii) above, has irrevocably deposited or caused to be deposited with the
Trustee as trust funds in trust for the purpose money in an amount sufficient,
without consideration of any reinvestment of interest, to pay and discharge the
entire indebtedness on such Securities not theretofore delivered to the Trustee
for cancellation, for principal and any premium and interest to the date of
such deposit (in the case of Securities which have become due and payable) or
to the Stated Maturity or Redemption Date, as the case may be;

 

(2)           the Company or a Subsidiary Guarantor has paid or
caused to be paid all other sums payable hereunder by the Company and the
Subsidiary Guarantors with respect to the Securities of such series; 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 with respect to the Securities of such series have been complied
with.

 

Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 607, the obligations of the Company
with respect to the Securities of such series under Sections 304, 305, 306,
1002 and 1003, any surviving rights of conversion, the obligations of the
Trustee to any Authenticating Agent under Section 614 and, if money shall
have been deposited with the Trustee pursuant to subclause (B) of clause (1) of
this Section, the obligations of the Trustee under Section 402 and the
last paragraph of Section 1003 shall survive.

 

30

 

SECTION 402.                Application
of Trust Money.

 

Subject
to the provisions of the last paragraph of Section 1003, all money
deposited with the Trustee pursuant to Section 401 shall be held in trust
and applied by it, in accordance with the provisions of the Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal and any premium
and interest for whose payment such money has been deposited with the Trustee.

 

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):

 

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

 

(2)           default in the payment of the principal of or any
premium on any Security of that series at its Maturity; or

 

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

 

(4)           default in the performance, or breach, of any
covenant of the Company or, if the Subsidiary Guarantors have issued Subsidiary
Guarantees with respect to the Securities of such series, any Subsidiary
Guarantor in Article Eight of this Indenture; or

 

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

 

(6)           any Debt of the Company, any Significant Subsidiary
or, if the Subsidiary Guarantors have issued Subsidiary Guarantees with respect
to the Securities of such series, any Subsidiary Guarantor is not paid within
any applicable grace period after final maturity or is

 

31

 

accelerated
by the holders thereof because of a default and the total amount of such Debt
unpaid or accelerated exceeds $40.0 million, or its foreign currency equivalent
at the time; or

 

(7)           any judgment or decree for the payment of money in
excess of $40.0 million or its foreign currency equivalent at the time it is
entered against the Company, any Significant Subsidiary or, if the Subsidiary
Guarantors have issued Subsidiary Guarantees with respect to the Securities of
such series, any Subsidiary Guarantor, remains outstanding for a period of 90
consecutive days following the entry of such judgment or decree and is not
discharged, waived or the execution thereof stayed; or

 

(8)           the entry by a court having jurisdiction in the
premises of (A) a decree or order for relief in respect of the Company,
any Significant Subsidiary or, if the Subsidiary Guarantors have issued
Subsidiary Guarantees with respect to the Securities of such series, any
Subsidiary Guarantor in an involuntary case or proceeding under any applicable
Federal or State bankruptcy, insolvency, reorganization or other similar law or
(B) a decree or order adjudging the Company, any Significant Subsidiary or
any such Subsidiary Guarantor a bankrupt or insolvent, or approving as properly
filed a petition seeking reorganization, arrangement, adjustment or composition
of or in respect of the Company, any Significant Subsidiary or any such
Subsidiary Guarantor under any applicable Federal or State law, or appointing a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of the Company, any Significant Subsidiary or any such
Subsidiary Guarantor or of any substantial part of its or their property, or
ordering the winding up or liquidation of its or their affairs, and the
continuance of any such decree or order for relief or any such other decree or
order unstayed and in effect for a period of 60 consecutive days; or

 

(9)           the commencement by the Company, any Significant
Subsidiary or, if the Subsidiary Guarantors have issued Subsidiary Guarantees
with respect to the Securities of such series, any Subsidiary Guarantor of a
voluntary case or proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or of any other case or
proceeding to be adjudicated a bankrupt or insolvent, or the consent by it or
them to the entry of a decree or order for relief in respect of the Company,
any Significant Subsidiary or any such Subsidiary Guarantor in an involuntary
case or proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it or them, or the filing
by it or them of a petition or answer or consent seeking reorganization or
relief under any applicable Federal or State law, or the consent by it or them
to the filing of such petition or to the appointment of or taking possession by
a custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of the Company, any Significant Subsidiary or any such
Subsidiary Guarantor or of any substantial part of its or their property, or
the making by it or them of an assignment for the benefit of creditors, or the
admission by it or them in writing of its or their inability to pay its or
their debts generally as they become due, or the taking of corporate action by the
Company, any Significant Subsidiary or any such Subsidiary Guarantor in
furtherance of any such action; or

 

(10)         in the event the Subsidiary Guarantors have issued
Subsidiary Guarantees with respect to the Securities of such series, the
Subsidiary Guarantee of any Subsidiary Guarantor is held by a final
non-appealable order or judgment of a court of competent jurisdiction to be

 

32

 

unenforceable
or invalid or ceases for any reason to be in full force and effect (other than
in accordance with the terms of this Indenture) or any Subsidiary Guarantor or
any Person acting on behalf of any Subsidiary Guarantor denies or disaffirms
such Subsidiary Guarantor’s obligations under its Subsidiary Guarantee (other
than by reason of a release of such Subsidiary Guarantor from its Subsidiary
Guarantee in accordance with the terms of this Indenture); or

 

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

 

SECTION 502.                Acceleration
of Maturity; Rescission and Annulment.

 

If
an Event of Default (other than an Event of Default with respect to the Company
specified in Section 501(8) or 501(9)) with respect to Securities of
any series at the time Outstanding occurs and is continuing, then in every such
case the Trustee or the Holders of not less than 25% in principal amount of the
Outstanding Securities of that series may declare the principal amount of all
the Securities of that series (or, if any Securities of that series are
Original Issue Discount Securities, such portion of the principal amount of
such Securities as may be specified by the terms thereof) to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), and upon any such declaration such principal amount (or specified
amount), together with any accrued and unpaid interest thereon, shall become
immediately due and payable.  If an Event
of Default with respect to the Company specified in Section 501(8) or
501(9) with respect to Securities of any series at the time Outstanding
occurs, the principal amount of all the Securities of that series (or, if any
Securities of that series are Original Issue Discount Securities, such portion
of the principal amount of such Securities as may be specified by the terms
thereof), together with any accrued and unpaid interest thereon, shall
automatically, and without any declaration or other action on the part of the
Trustee or any Holder, become immediately due and payable.

 

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

 

(1)           the Company or, if applicable, any Subsidiary
Guarantor has paid or deposited with the Trustee a sum sufficient to pay

 

(A)          all overdue interest on all Securities of that
series,

 

(B)           the principal of (and premium, if any, on) any
Securities of that series which have become due otherwise than by such
declaration of acceleration and any interest thereon at the rate or rates
prescribed therefor in such Securities,

 

(C)           to the extent that payment of such interest is
lawful, interest upon overdue interest at the rate or rates prescribed therefor
in such Securities, and

 

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

 

33

 

(2)           all Events of Default with respect to Securities of
that series, other than the non-payment of the principal of Securities of that
series which has become due solely by such declaration of acceleration, have
been cured or waived as provided in Section 513.

 

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

 

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

 

The
Company covenants that if

 

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

 

(2)           default is made in the payment of the principal of
(or premium, if any, on) any Security at the Maturity thereof, the Company
will, upon demand of the Trustee, pay to it, for the benefit of the Holders of
such Securities, the whole amount then due and payable on such Securities for
principal and any premium and interest and, to the extent that payment of such
interest shall be legally enforceable, interest on any overdue principal and
premium and on any overdue interest, at the rate or rates prescribed therefor
in such Securities, and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

 

If
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 by such
appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy.

 

SECTION 504.                Trustee
May File Proofs of Claim.

 

In
case of any judicial proceeding relative to the Company, any Subsidiary
Guarantor or any other obligor upon the Securities, or the property or
creditors of the Company, any Subsidiary Guarantor or any other obligor upon
the Securities, the Trustee shall be entitled and empowered, by intervention in
such proceeding or otherwise, to take any and all actions authorized under the
Trust Indenture Act in order to have claims of the Holders and the Trustee
allowed in any such proceeding.  In
particular, the Trustee shall be authorized to collect and receive any moneys
or other property payable or deliverable on any such claims and to distribute
the same; and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is
hereby authorized by each Holder to make such payments to the Trustee and, in
the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under Section 607.

 

34

 

No
provision of this Indenture shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or any Subsidiary Guarantee or the rights of any Holder thereof or to authorize
the Trustee to vote in respect of the claim of any Holder in any such
proceeding; provided, however, that the Trustee may, on behalf of the Holders,
vote for the election of a trustee in bankruptcy or similar official and be a
member of a creditors’ or other similar committee.

 

SECTION 505.                Trustee
May Enforce Claims Without Possession of Securities.

 

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

 

SECTION 506.                Application
of Money Collected.

 

Any
money collected by the Trustee pursuant to this Article shall be applied
in the following order, at the date or dates fixed by the Trustee and, in case
of the distribution of such money on account of principal or any premium or
interest, upon presentation of the Securities 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
under Section 607;

 

SECOND:  To the payment of the amounts then due and
unpaid for principal of and any premium and interest on the Securities in
respect of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind, according to the amounts
due and payable on such Securities for principal and any premium and interest,
respectively; and

 

THIRD:  The balance, if any, to the Company or to
such other Person as a court of competent jurisdiction shall direct.

 

SECTION 507.                Limitation
on Suits.

 

No
Holder of any Security of any series shall have any right to institute any
proceeding, judicial or otherwise, with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless

 

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

 

35

 

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

 

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

 

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

 

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

 

it
being understood and intended that no one or more of such Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other of
such Holders, or to obtain or to seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all of such
Holders.

 

SECTION 508.                Unconditional
Right of Holders to Receive Principal, Premium and Interest.

 

Notwithstanding
any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the
principal of and any premium and (subject to Section 307) interest on such
Security on the respective Stated Maturities expressed in such Security (or, in
the case of redemption or offer by the Company to purchase the Securities
pursuant to the terms of this Indenture, on the Redemption Date or purchase
date, as applicable) and, if applicable, to convert such Security in accordance
with its terms, and to institute suit for the enforcement of any such right,
and such rights shall not be impaired without the consent of such Holder.

 

SECTION 509.                Restoration
of Rights and Remedies.

 

If
the Trustee or any Holder 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, subject to any determination in such
proceeding, the Company, the Subsidiary Guarantors, the Trustee and the Holders
shall be restored severally and respectively to their former positions
hereunder and thereafter all rights and remedies of the Trustee and the Holders
shall continue as though no such proceeding had been instituted.

 

SECTION 510.                Rights
and Remedies Cumulative.

 

Except
as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 306,
no right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any

 

36

 

other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise.  The
assertion or employment of any right or remedy hereunder, or otherwise, shall
not prevent the concurrent assertion or employment of any other appropriate
right or remedy.

 

SECTION 511.                Delay
or Omission Not Waiver.

 

No
delay or omission of the Trustee or of any Holder of any Securities to exercise
any right or remedy accruing upon any Event of Default shall impair any such
right or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein.  Every right and
remedy given by this Article or by law to the Trustee or to the Holders
may be exercised from time to time, and as often as may be deemed expedient, by
the Trustee or by the Holders, as the case may be.

 

SECTION 512.                Control
by Holders.

 

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

 

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

 

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

 

SECTION 513.                Waiver
of Past Defaults.

 

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

 

(1)           in the payment of the principal of or any premium or
interest on any Security of such series (including any Security which is
required to have been purchased by the Company pursuant to an offer to purchase
by the Company made pursuant to the terms of this Indenture), or

 

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

 

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.

 

37

 

SECTION 514.                Undertaking
for Costs.

 

In
any suit for the enforcement of any right or remedy under this Indenture, or in
any suit against the Trustee for any action taken, suffered or omitted by it as
Trustee, a court may require any party litigant in such suit to file an
undertaking to pay the costs of such suit, and may assess costs against any
such party litigant, in the manner and to the extent provided in the Trust
Indenture Act; provided, however, that neither this Section nor the Trust
Indenture Act shall be deemed to authorize any court to require such an
undertaking or to make such an assessment in any suit instituted by the Company
or any Subsidiary Guarantor.

 

SECTION 515.                Waiver
of Usury, Stay or Extension Laws.

 

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

 

ARTICLE SIX

THE TRUSTEE

 

SECTION 601.                Certain
Duties and Responsibilities.

 

The
duties and responsibilities of the Trustee shall be as expressly set forth in
this Indenture and as provided by the Trust Indenture Act.  Notwithstanding the foregoing, no provision
of this Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.  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.

 

If
a default occurs hereunder with respect to Securities of any series, the
Trustee shall give the Holders of Securities of such series notice of such
default as and to the extent provided by the Trust Indenture Act; provided,
however, that in the case of any default of the character specified in Section 501(5) 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.

 

38

 

SECTION 603.                Certain
Rights of Trustee.

 

Subject
to the provisions of Section 601:

 

(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, other evidence of indebtedness or other paper or document
believed by it to be genuine and to have been signed or presented by the proper
party or parties;

 

(2)           any request or direction of the Company mentioned
herein shall be sufficiently evidenced by a Company Request or Company Order,
and any resolution of the Board of Directors shall be sufficiently evidenced by
a Board Resolution;

 

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

 

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

 

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

 

(6)           the Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness 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 determine to make such further inquiry or investigation, it shall be
entitled to examine the books, records and premises of the Company, personally
or by agent or attorney; and

 

(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.

 

SECTION 604.                Not
Responsible for Recitals or Issuance of Securities.

 

The
recitals contained herein and in the Securities and the notations of Subsidiary
Guarantees, except the Trustee’s certificates of authentication, shall be taken
as the statements of the Company or the Subsidiary Guarantors, as the case may
be, and neither the Trustee nor any Authenticating Agent assumes any
responsibility for their correctness. 
The Trustee makes no representations as to the validity or sufficiency
of this Indenture or of the Securities or the 

 

39

 

Subsidiary Guarantees.  Neither the Trustee nor any Authenticating
Agent shall be accountable for the use or application by the Company of
Securities or the proceeds thereof.

 

SECTION 605.                May Hold
Securities.

 

The
Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or
any other agent of the Company or any Subsidiary Guarantor, in its individual
or any other capacity, may become the owner or pledgee of Securities and,
subject to Sections 608 and 613, may otherwise deal with the Company and any
Subsidiary Guarantor with the same rights it would have if it were not Trustee,
Authenticating Agent, Paying Agent, Security Registrar or such other agent.

 

SECTION 606.                Money
Held in Trust.

 

Money
held by the Trustee in trust hereunder need not be segregated from other funds
except to the extent required by law. 
The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed with the Company or any
Subsidiary Guarantor, as the case may be.

 

SECTION 607.                Compensation
and Reimbursement.

 

The
Company and each Subsidiary Guarantor jointly and severally agree

 

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

 

(2)           except as otherwise expressly provided herein, to
reimburse 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 its negligence or bad faith;
and

 

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

 

SECTION 608.                Conflicting
Interests.

 

If
the Trustee has or shall acquire a conflicting interest within the meaning of
the Trust Indenture Act, the Trustee shall either eliminate such interest or
resign, to the extent and in the manner provided by, and subject to the
provisions of, the Trust Indenture Act and this Indenture.  To the extent permitted by such Act, the
Trustee shall not be deemed to have a conflicting interest by virtue of being a
trustee under this Indenture with respect to Securities of more than one
series.

 

40

 

SECTION 609.                Corporate
Trustee Required; Eligibility.

 

There
shall at all times be one (and only one) Trustee hereunder with respect to the
Securities of each series, which may be Trustee hereunder for Securities of one
or more other series.  Each Trustee shall
be a Person that is eligible pursuant to the Trust Indenture Act to act as
such, and has a combined capital and surplus of at least $50,000,000.  If any such Person publishes reports of
condition at least annually, pursuant to law or to the requirements of its
supervising or examining authority, then for the purposes of this Section and
to the extent permitted by the Trust Indenture Act, the combined capital and
surplus of such Person shall be deemed to be its combined capital and surplus
as set forth in its most recent report of condition so published.  If at any time the Trustee with respect to
the Securities of any series 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.

 

SECTION 610.                Resignation
and Removal; Appointment of Successor.

 

No
resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee in accordance with the applicable
requirements of Section 611.

 

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 611 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 the Securities of such
series.

 

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

 

If
at any time:

 

(1)           the Trustee shall fail to comply with Section 608
after written request therefor by the Company or by any Holder who has been a
bona fide Holder of a Security for at least six months, or

 

(2)           the Trustee shall cease to be eligible under Section 609
and shall fail to resign after written request therefor by the Company or by
any such Holder, or

 

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

 

then,
in any such case, (A) the Company by a Board Resolution may remove the
Trustee with respect to all Securities, or (B) subject to Section 514,
any Holder who has been a bona fide Holder of a Security for at least six
months may, on behalf of himself and all others similarly

 

41

 

situated,
petition any court of competent jurisdiction for the removal of the Trustee
with respect to all Securities and the appointment of a successor Trustee or
Trustees.

 

If
the Trustee shall resign, be removed or become incapable of acting, or if a
vacancy shall occur in the office of Trustee for any cause, with respect to the
Securities of one or more series, the Company, by 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 611.  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 611, 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 and accepted
appointment in the manner required by Section 611, any Holder 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.

 

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 to all Holders
of Securities of such series in the manner provided in Section 106.  Each notice shall include the name of the
successor Trustee with respect to the Securities of such series and the address
of its Corporate Trust Office.

 

SECTION 611.                Acceptance
of Appointment by Successor.

 

In
case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee so appointed shall execute,
acknowledge and deliver to the Company, the Subsidiary Guarantors and to the
retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee;
but, on the request of the Company or the successor Trustee, such retiring
Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers and trusts of the
retiring Trustee and shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder.

 

In
case of the appointment hereunder of a successor Trustee with respect to the
Securities of one or more (but not all) series, the Company, the Subsidiary
Guarantors, the retiring Trustee and each successor Trustee with respect to the
Securities of one or more series shall execute and deliver an indenture
supplemental hereto wherein each successor Trustee shall accept such appointment
and which (1) shall contain such provisions as shall be necessary or
desirable to

 

42

 

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

 

Upon
request of any such successor Trustee, the Company and the Subsidiary
Guarantors 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 the first or second preceding paragraph, as the case may
be.

 

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

 

SECTION 612.                Merger,
Conversion, Consolidation or Succession to Business.

 

Any
Person into which the Trustee may be merged or converted or with which it may
be consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any Person succeeding
to all or substantially all the corporate trust business of the Trustee, shall
be the successor of the Trustee hereunder, provided such Person shall be
otherwise qualified and eligible under this Article, without the execution or filing
of any paper or any further act on the part of any of the parties hereto.  As soon as practicable, the successor Trustee
shall mail a notice of its succession to the Company and the Holders of the
Securities then Outstanding.  In case any
Securities shall have been authenticated, but not delivered, by the Trustee
then in office, any successor by merger, conversion or consolidation to such
authenticating Trustee may adopt such authentication and deliver the Securities
so authenticated with the same effect as if such successor Trustee had itself
authenticated such Securities.

 

43

 

SECTION 613.                Preferential
Collection of Claims Against Company and Subsidiary Guarantors.

 

If
and when the Trustee shall be or become a creditor of the Company, any
Subsidiary Guarantor or any other obligor upon the Securities, the Trustee
shall be subject to the provisions of the Trust Indenture Act regarding the
collection of claims against the Company, such Subsidiary Guarantor or any such
other obligor.

 

SECTION 614.                Appointment
of Authenticating Agent.

 

The
Trustee may appoint an Authenticating Agent or Agents with respect to one or
more series of Securities which shall be authorized to act on behalf of the
Trustee to authenticate Securities of such series issued upon original issue
and upon exchange, registration of transfer, conversion or partial redemption
thereof 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 shall at all times
be a Person organized and doing business under the laws of the United States of
America, any State thereof or the District of Columbia, authorized under such
laws to act as Authenticating Agent, having a combined capital and surplus of
not less than $50,000,000 and subject to supervision or examination by Federal
or State authority.  If such
Authenticating Agent publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority, then
for the purposes of this Section, the combined capital and surplus of such
Authenticating Agent shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published.  If at any time an Authenticating Agent shall
cease to be eligible in accordance with the provisions of this Section, such
Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.

 

Any
Person into which an Authenticating Agent may be merged or converted or with
which it may be consolidated, or any Person resulting from any merger,
conversion or consolidation to which such Authenticating Agent shall be a
party, or any Person succeeding to the corporate agency or corporate trust
business of an Authenticating Agent, shall continue to be an Authenticating
Agent, provided such Person 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 to 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 to the
Company.  Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall give notice of such
appointment in the manner provided in

 

44

 

Section 106
to all Holders of Securities of the series with respect to which such
Authenticating Agent will serve.  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
Trustee agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section, and the Trustee shall be
entitled to be reimbursed for such payments, subject to the provisions of Section 607.

 

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

 

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

 

	
   

  	
  [TRUSTEE’S
  NAME], As Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  As Authenticating Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  

 

ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

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

 

The
Company will furnish or cause to be furnished to the Trustee with respect to
the Securities of each series:

 

(1)           not more than 10 days after each record date with
respect to the payment of interest, if any, a list, in such form as the Trustee
may reasonably require, of the names and addresses of the Holders of Securities
of such series as of such record 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;

 

excluding
from any such list names and addresses received by the Trustee in its capacity
as Security Registrar.

 

45

 

SECTION 702.                Preservation
of Information; Communications to Holders.

 

The
Trustee shall preserve, in as current a form as is reasonably practicable, the
names and addresses of Holders contained in the most recent list furnished to
the Trustee as provided in Section 701 and the names and addresses of
Holders received by the Trustee in its capacity as Security Registrar.  The Trustee may destroy any list furnished to
it as provided in Section 701 upon receipt of a new list so furnished.  The rights of Holders to communicate with
other Holders with respect to their rights under this Indenture or under the
Securities, and the corresponding rights and privileges of the Trustee, shall
be as provided by the Trust Indenture Act.

 

Every
Holder of Securities, by receiving and holding the same, agrees with the
Company and the Trustee that neither the Company, the Subsidiary Guarantors nor
the Trustee nor any agent of any of them shall be held accountable by reason of
any disclosure of information as to names and addresses of Holders made
pursuant to the Trust Indenture Act.

 

SECTION 703.                Reports
by Trustee.

 

The
Trustee shall transmit to Holders such reports concerning the Trustee and its
actions under this Indenture as may be required pursuant to the Trust Indenture
Act at the times and in the manner provided pursuant thereto.

 

A
copy of each such report shall, at the time of such transmission to Holders, be
filed by the Trustee with each stock exchange upon which any Securities are
listed, with the Commission and with the Company.  The Company will notify the Trustee when any
Securities are listed on any stock exchange.

 

SECTION 704.                Reports
by Company and Subsidiary Guarantors.

 

The
Company and each of the Subsidiary Guarantors shall file with the Trustee and
the Commission, and transmit to Holders, such information, documents and other
reports, and such summaries thereof, as may be required pursuant to the Trust
Indenture Act at the times and in the manner provided pursuant to such Act; provided
that any such information, documents or reports required to be filed with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act shall
be filed with the Trustee within 15 days after the same is filed with the
Commission.  The availability of the
foregoing materials on the Commission’s website or on the Company’s website
shall be deemed to satisfy the foregoing filing and transmission
obligations.

 

ARTICLE EIGHT

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

 

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

 

The
Company shall not, in a single transaction or a series of related transactions,
consolidate with or merge into any other Person or permit any other Person to
consolidate with or merge into the Company or, directly or indirectly,
transfer, convey, sell, lease or otherwise dispose of all or substantially all
of its assets, unless:

 

46

 

(1)           in a transaction in which the Company does not
survive or in which the Company transfers, conveys, sells, leases or otherwise
disposes of all or substantially all of its assets, the successor entity (for
purposes of this Article Eight, a “Successor Company”)
shall be a corporation, partnership, trust or other entity organized and validly
existing under the laws of the United States of America, any State thereof or
the District of Columbia, and shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Trustee, in form
satisfactory to the Trustee, the due and punctual payment of the principal of
and any premium and interest on all the Securities and the performance or
observance of every covenant of this Indenture on the part of the Company to be
performed or observed;

 

(2)           immediately before and after giving pro forma effect
to such transaction and treating any indebtedness which becomes an obligation
of the Company or any Subsidiary as a result of such transaction as having been
incurred by the Company or such Subsidiary at the time of such transaction, no
Event of Default, and no event which, after notice or lapse of time or both,
would become an Event of Default, shall have happened and be continuing;

 

(3)           if, as a result of any such consolidation or merger
or such transfer, conveyance, sale, lease or other disposition, properties or
assets of the Company would become subject to a mortgage, pledge, lien,
security interest or other encumbrance which would not be permitted by this
Indenture, the Company or the Successor Company, as the case may be, shall take
such steps as shall be necessary effectively to secure the Securities equally
and ratably with (or prior to) all indebtedness secured thereby;

 

(4)           any other conditions provided pursuant to Section 301
with respect to the Securities of a series are satisfied; and

 

(5)           the Company has delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation,
merger, transfer, conveyance, sale, lease or other disposition 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.                Subsidiary
Guarantors May Consolidate, Etc., Only on Certain Terms.

 

Except
in a transaction resulting in the release of a Subsidiary Guarantor in
accordance with the terms of this Indenture, each Subsidiary Guarantor shall
not, and the Company shall not permit any Subsidiary Guarantor to, in a single
or a series of related transactions, consolidate or merge with or into any
Person (other than the Company or another Subsidiary Guarantor) or permit any
Person (other than another Subsidiary Guarantor) to consolidate or merge with
or into such Subsidiary Guarantor or, directly or indirectly, transfer, convey,
sell, lease or otherwise dispose of all or substantially all of its assets
unless, in each case:

 

(1)           in a transaction in which such Subsidiary Guarantor
does not survive or in which all or substantially all of the assets of such
Subsidiary Guarantor are transferred, conveyed, sold, leased or otherwise
disposed of, the successor entity (the “Successor Subsidiary
Guarantor”) shall be a corporation, partnership, trust or other
entity organized and validly existing under the laws of the United States of
America, any State thereof or the District of Columbia, and shall

 

47

 

expressly
assume by an indenture supplemental hereto executed and delivered to the
Trustee, in form satisfactory to the Trustee, the due and punctual payment of
all obligations of such Subsidiary Guarantor under its Subsidiary Guarantee and
this Indenture and the performance of every covenant of this Indenture on the
part of such Subsidiary Guarantor to be performed or observed; and

 

(2)           the Company has delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation,
merger, transfer, conveyance, sale, lease or other disposition 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 803.                Successor
Substituted.

 

(a)           Upon any consolidation of
the Company with, or merger of the Company into, any other Person or any
transfer, conveyance, sale, lease or other disposition of all or substantially
all of the assets of the Company in accordance with Section 801, the
Successor Company shall succeed to, and be substituted for, 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
thereafter, except in the case of a lease, the predecessor Person shall be
relieved of all obligations and covenants under this Indenture and the
Securities.

 

(b)           Upon any consolidation of a
Subsidiary Guarantor with, or merger of such Subsidiary Guarantor into, any
other Person or any transfer, conveyance, sale, lease or other disposition of
all or substantially all of the assets of such Subsidiary Guarantor in
accordance with Section 802, the Successor Subsidiary Guarantor shall
succeed to, and be substituted for, and may exercise every right and power of,
such Subsidiary Guarantor under this Indenture with the same effect as if such
successor Person had been named as a Subsidiary Guarantor herein, and
thereafter, except in the case of a lease, the predecessor Person shall be
relieved of all obligations and covenants under this Indenture and its
Subsidiary Guarantee.

 

ARTICLE NINE

SUPPLEMENTAL INDENTURES

 

SECTION 901.                Supplemental
Indentures Without Consent of Holders.

 

Without
the consent of any Holders, the Company, when authorized by a Board Resolution,
the Subsidiary Guarantors, when authorized by their respective Board
Resolutions, and the Trustee, at any time and from time to time, may enter into
one or more indentures supplemental hereto, in form satisfactory to the Trustee,
for any of the following purposes:

 

(1)           to evidence the succession of another Person to the
Company or any Subsidiary Guarantor and the assumption by any such successor of
the covenants of the Company or any Subsidiary Guarantor herein and in the Securities
or Subsidiary Guarantees, as the case may be; or

 

(2)           to add to the covenants of the Company or the
Subsidiary Guarantors for the benefit of the Holders of all or any series of
Securities (and if such covenants are to be for the

 

48

 

benefit
of less than all series of Securities, stating that such covenants are
expressly being included solely for the benefit of such series) or to surrender
any right or power herein conferred upon the Company or the Subsidiary
Guarantors; or

 

(3)           to add any additional Events of Default for the
benefit of the Holders of all or any series of Securities (and if such
additional Events of Default are to be for the benefit of less than all series
of Securities, stating that such additional Events of Default are expressly
being included solely for the benefit of such series); or

 

(4)           to add to or change any of the provisions of this
Indenture to such extent as shall be necessary to permit or facilitate the
issuance of Securities in bearer form, registrable or not registrable as to
principal, and with or without interest coupons, or to permit or facilitate the
issuance of Securities in uncertificated form; or

 

(5)           to add to, change or eliminate any of the provisions
of this Indenture in respect of one or more series of Securities, provided that
any such addition, change or elimination (A) shall neither (i) apply
to any Security of any series created prior to the execution of such
supplemental indenture and entitled to the benefit of such provision nor (ii) modify
the rights of the Holder of any such Security with respect to such provision or
(B) shall become effective only when there is no such Security
Outstanding; or

 

(6)           to secure the Securities; or

 

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

 

(8)           to evidence and provide for the acceptance of
appointment hereunder by a successor Trustee with respect to the Securities of
one or more series and to add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee, pursuant to the requirements
of Section 611; or

 

(9)           to cure any ambiguity, to correct or supplement any
provision herein which may be defective or inconsistent with any other
provision herein; or

 

(10)         to make any other provisions with respect to matters
or questions arising under this Indenture, provided that such action pursuant
to this clause (10) shall not adversely affect the interests of the
Holders of Securities of any series in any material respect; or

 

(11)         to add new Subsidiary Guarantors.

 

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, the Subsidiary
Guarantors and the Trustee, the Company, when authorized by a Board Resolution,
the Subsidiary Guarantors, when authorized by their respective Board
Resolutions and the Trustee may enter into an indenture or indentures

 

49

 

supplemental
hereto for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of modifying in any
manner the rights of the Holders of Securities of such series under this
Indenture; provided, however, that no such supplemental indenture shall,
without the consent of the Holder of each Outstanding Security affected
thereby:

 

(1)           change the Stated Maturity of the principal of, or
any installment of principal of or interest on, any Security, or reduce the
principal amount thereof or the rate of interest thereon or any premium payable
upon the redemption thereof, or reduce the amount of the principal of an
Original Issue Discount Security or any other Security which would be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 502,
or change any Place of Payment where, or the coin or currency in which, any
Security or any premium or interest thereon is payable, or impair the right to
institute suit for the enforcement of (a) 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 an offer to purchase Securities which has
been made pursuant to a covenant contained in this Indenture, on or after the
applicable purchase date) or (b) any conversion right with respect to any
Security, or modify the provisions of this Indenture with respect to the
conversion of the Securities, in a manner adverse to the Holders, or release
any Subsidiary Guarantee other than as provided in this Indenture; 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 and their consequences) provided for in
this Indenture; or

 

(3)           modify any of the provisions of this Section, Section 513
or Section 1009, 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;
provided, however, that this clause shall not be deemed to require the consent
of any Holder with respect to changes in the references to “the Trustee” and
concomitant changes in this Section and Section 1009, or the deletion
of this proviso, in accordance with the requirements of Sections 611 and
901(8); or

 

(4)           following the making of an offer to purchase
Securities from any Holder which has been made pursuant to a covenant contained
in this Indenture, modify the provisions of this Indenture with respect to such
offer to purchase in a manner adverse to such Holder.

 

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

 

It
shall not be necessary for any Act of Holders 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.

 

50

 

After
a supplemental indenture under this Section 902 requiring the consent of the
Holders of any series of Debt Securities is approved, the Company shall mail to
Holders of that series of Debt Securities a notice briefly describing any
amendment or supplement hereto effected by such supplemental indenture.  The failure to give such notice to any such
Holders, or any defect therein, shall not impair or affect the validity of any
amendment or supplement hereto effected by such supplemental indenture with respect
to other Holders.

 

SECTION 903.                Execution
of Supplemental Indentures.

 

In
executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, and
(subject to Section 601) shall be fully protected in relying upon, an Opinion
of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. 
The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise.

 

SECTION 904.                Effect
of Supplemental Indentures.

 

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

 

SECTION 905.                Conformity
with Trust Indenture Act.

 

Every
supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act.

 

SECTION 906.                Reference
in Securities to Supplemental Indentures.

 

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

 

ARTICLE TEN

COVENANTS

 

SECTION 1001.              Payment of Principal, Premium and
Interest.

 

The
Company covenants and agrees for the benefit of each series of Securities that
it will duly and punctually pay the principal of and any premium and interest
on the Securities of that series in accordance with the terms of the Securities
and this Indenture.  Principal, premium,
if

 

51

 

any,
and interest shall be considered paid on the date due if the Paying Agent, if
other than the Company or a Subsidiary thereof, holds as of 12:00 P.M., New
York City time, on the due date money deposited with it in immediately
available funds and designated for and sufficient to pay all principal,
premium, if any, and interest then due.

 

SECTION 1002.              Maintenance of Office or Agency.

 

The
Company will maintain in each Place of Payment for any series of Securities an
office or agency where Securities of that series may be presented or
surrendered for payment or, if applicable, for conversion, where Securities of
that series may be surrendered for registration of transfer or exchange and
where notices and demands to or upon the Company or any Subsidiary Guarantor in
respect of the Securities of that series or any Subsidiary Guarantee and this
Indenture may be served.  The Company
will give prompt written notice to the Trustee of the location, and any change
in the location, of such office or agency. 
If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at
the Corporate Trust Office of the Trustee, and each of the Company and the
Subsidiary Guarantors hereby appoints the Trustee as its agent to receive all such
presentations, surrenders, notices and demands.

 

The
Company may also from time to time designate one or more other offices or
agencies where the Securities of one or more series may be presented or
surrendered for any or all such purposes and may from time to time rescind such
designations; provided, however, that no such designation or rescission shall
in any manner relieve the Company of its obligation to maintain an office or
agency in each Place of Payment for Securities of any series for such purposes.  The Company will give prompt written notice
to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency.

 

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

 

If
the Company or any Subsidiary Guarantor shall at any time act as its own Paying
Agent with respect to any series of Securities, it will, on or before each due
date of the principal of or any premium or interest on any of the Securities of
that series, segregate and hold in trust for the benefit of the Persons
entitled thereto a sum sufficient to pay the principal and any premium and
interest so becoming due until such sums shall be paid to such Persons or
otherwise disposed of as herein provided and will promptly notify the Trustee
of its action or failure so to act.

 

Whenever
the Company shall have one or more Paying Agents for any series of Securities,
it will, prior to 12:00 P.M., New York City time, on each due date of the
principal of or any premium or interest on any Securities of that series,
deposit with a Paying Agent a sum sufficient to pay such amount, such sum to be
held as provided by the Trust Indenture Act, and (unless such Paying Agent is
the Trustee) the Company will promptly notify the Trustee of its action or
failure so to act.

 

The
Company will cause each Paying Agent for any series of Securities other than
the Trustee to execute and deliver to the Trustee an instrument in which such
Paying Agent shall

 

52

 

agree
with the Trustee, subject to the provisions of this Section, that such Paying
Agent will (1) comply with the provisions of the Trust Indenture Act applicable
to it as a Paying Agent and (2) during the continuance of any default by the
Company, the Subsidiary Guarantors, if applicable, or any other obligor upon
the Securities of that series in the making of any payment in respect of the
Securities of that series, upon the written request of the Trustee, forthwith
pay to the Trustee all sums held in trust by such Paying Agent for payment in
respect of the Securities of that series.

 

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

 

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 or any premium or
interest on any Security of any series and remaining unclaimed for two years
after such principal, premium or interest has 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 shall
thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in a newspaper published in
the English language, customarily published on each Business Day and of general
circulation in The City of New York, New York, notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less
than 30 days from the date of such publication, any unclaimed balance of such
money then remaining will be repaid to the Company.

 

SECTION 1004.              Statement by Officers as to
Default.

 

(a)           The Company and the
Subsidiary Guarantors will deliver to the Trustee, within 90 days after the end
of each fiscal year of the Company ending after the date hereof, an Officers’
Certificate, stating whether or not to the best knowledge of the signers
thereof the Company or any Subsidiary Guarantor, as the case may be, is in
default in the performance and observance of any of the terms, provisions and
conditions of this Indenture (without regard to any period of grace or
requirement of notice provided hereunder) and, if the Company or any Subsidiary
Guarantor shall be in default, specifying all such defaults and the nature and
status thereof of which they may have knowledge.

 

(b)           The Company shall, so long
as any series of Securities is Outstanding, deliver to the Trustee, as soon as
possible and in any event within five days after the Company becomes aware of
the occurrence of an Event of Default or an event which, with notice or the
lapse of time or both, would constitute an Event of Default, an Officers’
Certificate setting forth the details of such Event of Default or default, and
the action which the Company proposes to take with respect thereto.

 

53

 

SECTION 1005.              Existence.

 

Subject
to Article Eight, the Company will do or cause to be done all things necessary
to preserve and keep in full force and effect the existence, rights (charter
and statutory) and franchises of the Company; provided, however, that the
Company shall not be required to preserve any such right or franchise if it
shall determine that the preservation thereof is no longer desirable in the
conduct of the business of the Company and that the loss thereof is not
disadvantageous in any material respect to the Holders.

 

SECTION 1006.              Maintenance of Properties.

 

The
Company will cause all properties used or useful in the conduct of its business
or the business of any Subsidiary to be maintained and kept in good condition,
repair and working order (reasonable wear and tear excepted) and supplied with
all necessary equipment and will cause to be made all necessary repairs, renewals,
replacements, betterments and improvements thereof, all as in the judgment of
the Company may be necessary so that the business carried on in connection
therewith may be properly and advantageously conducted at all times; provided,
however, that nothing in this Section shall prevent the Company from
discontinuing the operation or maintenance of any of such properties if such
discontinuance is, in the judgment of the Company, desirable in the conduct of
its business or the business of any Subsidiary and not disadvantageous in any
material respect to the Holders.

 

SECTION 1007.              Payment of Taxes and Other Claims.

 

The
Company will pay or discharge or cause to be paid or discharged, before the
same shall become delinquent, (1) all taxes, assessments and governmental
charges levied or imposed upon the Company or any Subsidiary or upon the
income, profits or property of the Company or any Subsidiary, and (2) all
lawful claims for labor, materials and supplies which, if unpaid, might by law
become a lien upon the property of the Company or any Subsidiary; provided,
however, that the Company shall not be required to pay or discharge or cause to
be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings.

 

SECTION 1008.              Maintenance of Insurance.

 

The
Company shall, and shall cause its Subsidiaries to, keep at all times all of
their properties which are of an insurable nature insured against loss or
damage with insurers believed by the Company to be responsible to the extent
that property of similar character is usually so insured by corporations
similarly situated and owning like properties in accordance with good business
practice.

 

SECTION 1009.              Waiver of Certain Covenants.

 

Except
as otherwise specified as contemplated by Section 301 for Securities of such
series, the Company and the Subsidiary Guarantors may, with respect to the
Securities of any series, omit in any particular instance to comply with any
term, provision or condition set forth in any of Sections 1005 through 1008 or
in any covenant provided pursuant to Section 301(21), 901(2) or 901(7) for the
benefit of the Holders of such series if before the time for such

 

54

 

compliance
the Holders of at least a majority in principal amount of the Outstanding
Securities of such series shall, by Act of such Holders, either waive such
compliance in such instance or generally waive compliance with such term,
provision or condition, but no such waiver shall extend to or affect such term,
provision or condition except to the extent so expressly waived, and, until
such waiver shall become effective, the obligations of the Company and the
duties of the Trustee in respect of any such term, provision or condition shall
remain in full force and effect.

 

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

 

SECTION 1101.              Applicability of Article.

 

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

 

SECTION 1102.              Election to Redeem; Notice to
Trustee.

 

The
election of the Company to redeem any Securities shall be evidenced by a Board
Resolution or in another manner specified as contemplated by Section 301 for
such Securities.  In case of any
redemption at the election of the Company of less than all the Securities of
any series (including any such redemption affecting only a single Security),
the Company shall, at least five Business Days prior to giving notice of such
redemption (unless a shorter notice shall be satisfactory to the Trustee),
notify the Trustee of such Redemption Date, of the principal amount of
Securities of such series to be redeemed and, if applicable, of the tenor of
the Securities to be redeemed.  In the
case of any redemption of Securities prior to the expiration of any restriction
on such redemption provided in the terms of such Securities or elsewhere in
this Indenture, the Company shall furnish the Trustee with an Officers’
Certificate evidencing compliance with such restriction.

 

SECTION 1103.              Selection by Trustee of
Securities to Be Redeemed.

 

If
less than all the Securities of any series are to be redeemed (unless all the
Securities of such series and of a specified tenor are to be redeemed or unless
such redemption affects only a single Security), the particular Securities to
be redeemed shall be selected by the Trustee, from the Outstanding Securities
of such series not previously called for redemption, (i) in compliance with the
requirements of the principal national securities exchange on which such
Securities are listed, if such Securities are listed on any national securities
exchange, and (ii) if such Securities are not so listed, on a pro rata basis,
by lot or by such other method as the Trustee shall deem fair and appropriate
and which may provide for the selection for redemption of a portion of the
principal amount of any Security of such series, provided that the unredeemed
portion of the principal amount of any Security shall be in an authorized
denomination (which shall not be less than the minimum authorized denomination)
for such Security.  If less than all the
Securities of such series and of a specified tenor are to be redeemed (unless
such redemption affects only a single Security), the particular Securities to
be redeemed shall be selected by the Trustee, from

 

55

 

the
Outstanding Securities of such series and specified tenor not previously called
for redemption in accordance with the preceding sentence.

 

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

 

The
provisions of the two preceding paragraphs shall not apply with respect to any
redemption affecting only a single Security, whether such Security is to be
redeemed in whole or in part.  In the
case of any such redemption in part, the unredeemed portion of the principal
amount of the Security shall be in an authorized denomination (which shall not
be less than the minimum authorized denomination) for such Security.

 

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 amount of such Securities which has been or is to be
redeemed.  If any Security selected for
partial redemption is surrendered for conversion after such selection, the
converted portion of such Security shall be deemed (so far as may be) to be the
portion selected for redemption.  Upon
any redemption of less than all the Securities of a series, for purposes of
selection for redemption the Company and the Trustee may treat as Outstanding
Securities surrendered for conversion during the period of 15 days next
preceding the mailing of a notice of redemption, and need not treat as
Outstanding any Security authenticated and delivered during such period in
exchange for the unconverted portion of any Security converted in part during
such period.

 

SECTION 1104.              Notice of Redemption.

 

Notice
of redemption shall be given by first-class mail, postage prepaid, mailed not
less than 30 nor more than 60 days prior to the Redemption Date, to each Holder
of Securities to be redeemed, at his address appearing in the Security
Register; provided, however, notice of redemption may be given more than 60
days prior to the Redemption Date if the notice is issued in connection with a
satisfaction and discharge pursuant to Article Four.

 

All
notices of redemption shall state:

 

(1)           the Redemption Date,

 

(2)           the Redemption Price, if then determinable and
otherwise the method of its determination,

 

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

 

56

 

(4)           that on the Redemption Date the Redemption Price
will become due and payable upon each such Security to be redeemed and, if
applicable, that interest thereon will cease to accrue on and after said date,

 

(5)           the place or places where each such Security is to
be surrendered for payment of the Redemption Price,

 

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

 

(7)           if applicable, the conversion price then in effect
and the date on which the right to convert such Securities will expire.

 

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 and shall be irrevocable.  If any Security called for redemption is
converted pursuant hereto, any money deposited with the Trustee or any Paying
Agent or so segregated and held in trust for the redemption of such Security
shall be paid to the Company upon delivery of a Company Request to the Trustee
or such Paying Agent, or, if then held by the Company, shall be discharged from
such trust.

 

SECTION 1105.              Deposit of Redemption Price.

 

Prior
to 12:00 P.M., New York City time, on any Redemption Date, the Company shall
deposit with the Trustee or with a Paying Agent (or, if the Company is acting
as its own Paying Agent, segregate and hold in trust as provided in Section
1003) an amount of money sufficient to pay the Redemption Price of, and (except
if the Redemption Date shall be an Interest Payment Date) accrued interest on,
all the Securities which are to be redeemed on that date.

 

SECTION 1106.              Securities Payable on Redemption Date.

 

Notice
of redemption having been given as aforesaid, the Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price
therein specified, and from and after such date (unless the Company shall
default in the payment of the Redemption Price and accrued interest) such
Securities shall cease to bear interest. 
Upon surrender of any such Security for redemption in accordance with
said notice, such Security shall be paid by the Company at the Redemption
Price, together with accrued interest to the Redemption Date; provided,
however, that, unless otherwise specified as contemplated by Section 301,
installments of interest whose Stated Maturity is on or prior to the Redemption
Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, registered as such at the close of business on the
relevant Record Dates according to their terms and the provisions of Section
307.

 

If
any Security called for redemption shall not be so paid upon surrender thereof
for redemption, the principal and any premium shall, until paid, bear interest
from the Redemption Date at the rate prescribed therefor in the Security.

 

57

 

SECTION 1107.              Securities Redeemed in Part.

 

Any
Security which is to be redeemed only in part shall be surrendered at a Place
of Payment therefor (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the
Company and the Trustee duly executed by, the Holder thereof or his attorney
duly authorized in writing), and the Company shall execute, if applicable, the
Subsidiary Guarantors shall execute the notations of Subsidiary Guarantees
endorsed thereon, and the Trustee shall authenticate and deliver to the Holder
of such Security without service charge, a new Security or Securities of the
same series and of like tenor, 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.

 

ARTICLE TWELVE

[INTENTIONALLY OMITTED]

 

ARTICLE THIRTEEN

SUBSIDIARY GUARANTEES

 

SECTION 1301.              Applicability of Article.

 

Unless
the Company elects to issue any series of Securities without the benefit of the
Subsidiary Guarantees, which election shall be evidenced in or pursuant to the
Board Resolution or supplemental indenture establishing such series of
Securities pursuant to Section 301, the provisions of this Article shall be
applicable to each series of Securities except as otherwise specified in or
pursuant to the Board Resolution or supplemental indenture establishing such
series pursuant to Section 301.

 

SECTION 1302.              Subsidiary Guarantees.

 

Subject
to Section 1301, each Subsidiary Guarantor hereby, jointly and severally, fully
and unconditionally guarantees to each Holder of a Security authenticated and
delivered by the Trustee, the due and punctual payment of the principal of (and
premium, if any) and interest on such Security when and as the same shall
become due and payable, whether at the Stated Maturity, by acceleration, call
for redemption, offer to purchase or otherwise, in accordance with the terms of
such Security and of this Indenture, and each Subsidiary Guarantor similarly
guarantees to the Trustee the payment of all amounts owing to the Trustee in
accordance with the terms of this Indenture. 
In case of the failure of the Company punctually to make any such payment,
each Subsidiary Guarantor hereby, jointly and severally, agrees to cause such
payment to be made punctually when and as the same shall become due and
payable, whether at the Stated Maturity or by acceleration, call for
redemption, offer to purchase or otherwise, and as if such payment were made by
the Company.

 

58

 

Each
of the Subsidiary Guarantors hereby jointly and severally agrees that its
obligations hereunder shall be absolute, unconditional, irrespective of, and
shall be unaffected by, the validity, regularity or enforceability of such
Security or this Indenture, the absence of any action to enforce the same or
any release, amendment, waiver or indulgence granted to the Company or any
other guarantor or any consent to departure from any requirement of any other
guarantee of all or any of the Securities of such series or any other
circumstances which might otherwise constitute a legal or equitable discharge
or defense of a surety or guarantor; provided, however, that, notwithstanding
the foregoing, no such release, amendment, waiver or indulgence shall, without
the consent of such Subsidiary Guarantor, increase the principal amount of such
Security, or increase the interest rate thereon, or alter the Stated Maturity
thereof.  Each of the Subsidiary
Guarantors hereby waives the benefits of diligence, presentment, demand for
payment, any requirement that the Trustee or any of the Holders protect,
secure, perfect or insure any security interest in or other lien on any
property subject thereto or exhaust any right or take any action against the
Company or any other Person or any collateral, filing of claims with a court in
the event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest or notice with respect to such
Security or the indebtedness evidenced thereby and all demands whatsoever, and
covenants that this Subsidiary Guarantee will not be discharged in respect of
such Security except by complete performance of the obligations contained in
such Security and in such Subsidiary Guarantee. 
Each Subsidiary Guarantor agrees that if, after the occurrence and
during the continuance of an Event of Default, the Trustee or any of the
Holders are prevented by applicable law from exercising their respective rights
to accelerate the maturity of the Securities of a series, to collect interest
on the Securities of a series, or to enforce or exercise any other right or
remedy with respect to the Securities of a series, such Subsidiary Guarantor
agrees to pay to the Trustee for the account of the Holders, upon demand
therefor, the amount that would otherwise have been due and payable had such
rights and remedies been permitted to be exercised by the Trustee or any of the
Holders.

 

Each
Subsidiary Guarantor shall be subrogated to all rights of the Holders of the
Securities upon which its Subsidiary Guarantee is endorsed against the Company
in respect of any amounts paid by such Subsidiary Guarantor on account of such
Security pursuant to the provisions of its Subsidiary Guarantee or this
Indenture; provided, however, that no Subsidiary Guarantor shall be entitled to
enforce or to receive any payments arising out of, or based upon, such right of
subrogation until the principal of (and premium, if any) and interest on all
Securities of the relevant series issued hereunder shall have been paid in
full.

 

Each
Subsidiary Guarantor that makes or is required to make any payment in respect
of its Subsidiary Guarantee shall be entitled to seek contribution from the other
Subsidiary Guarantors to the extent permitted by applicable law; provided,
however, that no Subsidiary Guarantor shall be entitled to enforce or receive
any payments arising out of, or based upon, such right of contribution until
the principal of (and premium, if any) and interest on all Securities of the
relevant series issued hereunder shall have been paid in full.

 

Each
Subsidiary Guarantee shall remain in full force and effect and continue to be
effective should any petition be filed by or against the Company for
liquidation or reorganization, should the Company become insolvent or make an
assignment for the benefit of creditors or should a receiver or trustee be
appointed for all or any part of the Company’s assets,

 

59

 

and
shall, to the fullest extent permitted by law, continue to be effective or be
reinstated, as the case may be, if at any time payment and performance of the
Securities of a series, is, pursuant to applicable law, rescinded or reduced in
amount, or must otherwise be restored or returned by any Holder of the
Securities, whether as a “voidable preference,” “fraudulent transfer,” or
otherwise, all as though such payment or performance had not been made.  In the event that any payment, or any part
thereof, is rescinded, reduced, restored or returned, the Securities shall, to
the fullest extent permitted by law, be reinstated and deemed reduced only by
such amount paid and not so rescinded, reduced, restored or returned.

 

SECTION 1303.              Execution and Delivery of
Notations of Subsidiary Guarantees.

 

To
further evidence the Subsidiary Guarantee set forth in Section 1302, each of
the Subsidiary Guarantors hereby agrees that a notation relating to such
Subsidiary Guarantee, substantially in the form set forth in Section 204, shall
be endorsed on each Security entitled to the benefits of the Subsidiary
Guarantee authenticated and delivered by the Trustee and executed by either
manual or facsimile signature of an officer of such Subsidiary Guarantor, or in
the case of a Subsidiary Guarantor that is a limited partnership, an officer of
the general partner of each Subsidiary Guarantor. Each of the Subsidiary
Guarantors hereby agrees that the Subsidiary Guarantee set forth in Section
1302 shall remain in full force and effect notwithstanding any failure to
endorse on each Security a notation relating to the Subsidiary Guarantee. If
any officer of the Subsidiary Guarantor, or in the case of a Subsidiary
Guarantor that is a limited partnership, any officer of the general partner of
the Subsidiary Guarantor, whose signature is on this Indenture or a Security no
longer holds that office at the time the Trustee authenticates such Security or
at any time thereafter, the Subsidiary Guarantee of such Security shall be
valid nevertheless. The delivery of any Security by the Trustee, after the
authentication thereof hereunder, shall constitute due delivery of the
Subsidiary Guarantee set forth in this Indenture on behalf of the Subsidiary
Guarantors.

 

SECTION 1304.              Release of Subsidiary Guarantors.

 

Unless
otherwise specified pursuant to Section 301 with respect to a series of
Securities, each Subsidiary Guarantee will remain in effect with respect to the
respective Subsidiary Guarantor until the entire principal of, premium, if any,
and interest on the Securities to which such Subsidiary Guarantee relates shall
have been paid in full or otherwise satisfied and discharged in accordance with
the provisions of such Securities and this Indenture and all amounts owing to the
Trustee hereunder have been paid; provided, however, that if (i) such
Subsidiary Guarantor ceases to be a Subsidiary in compliance with the
applicable provisions of this Indenture, (ii) either Defeasance or Covenant
Defeasance occurs with respect to such Securities pursuant to Article Fifteen
or (iii) all or substantially all of the assets of such Subsidiary Guarantor or
all of the Capital Stock of such Subsidiary Guarantor is sold (including by
sale, merger, consolidation or otherwise) by the Company or any Subsidiary in a
transaction complying with the requirements of this Indenture, then, in each
case of (i), (ii) or (iii), upon delivery by the Company of an Officers’
Certificate and an Opinion of Counsel stating that all conditions precedent
herein provided for relating to the release of such Subsidiary Guarantor from
its obligations under its Subsidiary Guarantee and this Article Thirteen have
been complied with, such Subsidiary Guarantor shall be released and discharged
of its obligations under its Subsidiary Guarantee and under this Article
Thirteen without any action on the part of the

 

60

 

Trustee
or any Holder, and the Trustee shall execute any documents reasonably required
in order to acknowledge the release of such Subsidiary Guarantor from its
obligations under its Subsidiary Guarantee endorsed on the Securities of such
series and under this Article Thirteen.

 

SECTION 1305.              Additional Subsidiary Guarantors.

 

Unless
otherwise specified pursuant to Section 301 with respect to a series of
Securities, the Company will cause any domestic Wholly Owned Subsidiary of the
Company that becomes a Subsidiary after the date the Securities of a series are
first issued hereunder to become a Subsidiary Guarantor as soon as practicable
after such Subsidiary becomes a Subsidiary. 
The Company shall cause any such Wholly Owned Subsidiary to become a
Subsidiary Guarantor with respect to the Securities by executing and delivering
to the Trustee (a) a supplemental indenture, in form and substance
satisfactory to the Trustee, which subjects such Person to the provisions
(including the representations and warranties) of this Indenture as a
Subsidiary Guarantor and (b) an Opinion of Counsel to the effect that such
supplemental indenture has been duly authorized and executed by such Person and
such supplemental indenture and such Person’s obligations under its Subsidiary
Guarantee and this Indenture constitute the legal, valid, binding and
enforceable obligations of such Person (subject to such customary exceptions
concerning creditors’ rights and equitable principles as may be acceptable to
the Trustee in its discretion).

 

SECTION 1306.              Limitation on Liability.

 

Any
term or provision of this Indenture to the contrary notwithstanding, the
maximum amount of the Subsidiary Guarantee of any Subsidiary Guarantor shall
not exceed the maximum amount that can be hereby guaranteed by such Subsidiary
Guarantor without rendering such Subsidiary Guarantee voidable under applicable
law relating to fraudulent conveyance or fraudulent transfer or similar laws
affecting the rights of creditors generally.

 

ARTICLE FOURTEEN

[INTENTIONALLY OMITTED]

 

ARTICLE FIFTEEN

DEFEASANCE AND COVENANT DEFEASANCE

 

SECTION 1501.              Company’s Option to Effect
Defeasance or Covenant Defeasance.

 

The
Company may elect, at its option at any time, to have Section 1502 or Section 1503
applied to any Securities or any series of Securities, as the case may be,
designated pursuant to Section 301 as being defeasible pursuant to such Section 1502
or 1503, in accordance with any applicable requirements provided pursuant to Section 301
and upon compliance with the conditions set forth below in this Article.  Any such election shall be evidenced in or
pursuant to a Board Resolution or in another manner specified as contemplated
by Section 301 for such Securities.

 

61

 

SECTION 1502.              Defeasance and Discharge.

 

Upon
the Company’s exercise of its option (if any) to have this Section applied
to any Securities or any series of Securities, as the case may be, the Company
shall be deemed to have been discharged from its obligations, and each
Subsidiary Guarantor shall be deemed to have been discharged from its
obligations with respect to its Subsidiary Guarantee of such Securities, as
provided in this Section on and after the date the conditions set forth in
Section 1504 are satisfied (herein called “Defeasance”).  For this purpose, such Defeasance means that
the Company shall be deemed to have paid and discharged the entire indebtedness
represented by such Securities and to have satisfied all its other obligations
under such Securities and this Indenture insofar as such Securities are
concerned (and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging the same), subject to the following which shall
survive until otherwise terminated or discharged hereunder:  (1) the rights of Holders of such
Securities to receive, solely from the trust fund described in Section 1504
and as more fully set forth in such Section, payments in respect of the
principal of and any premium and interest on such Securities when payments are
due, or, if applicable, to convert such Securities in accordance with their
terms, (2) the Company’s and each Subsidiary Guarantor’s obligations with
respect to such Securities under Sections 304, 305, 306, 1002 and 1003, and, if
applicable, their obligations with respect to the conversion of such
Securities, (3) the rights, powers, trusts, duties and immunities of the
Trustee hereunder and (4) this Article. 
Subject to compliance with this Article, the Company may exercise its
option (if any) to have this Section applied to any Securities
notwithstanding the prior exercise of its option (if any) to have Section 1503
applied to such Securities.

 

SECTION 1503.              Covenant Defeasance.

 

Upon
the Company’s exercise of its option (if any) to have this Section applied
to any Securities or any series of Securities, as the case may be, (1) the
Company shall be released from its obligations under Section 801(3),
Sections 1006 through 1008, inclusive, and any covenants provided pursuant to Section 301(21),
901(2) or 901(7) for the benefit of the Holders of such Securities,
and (2) the occurrence of any event specified in Sections 501(5) (with
respect to any of Section 801(3), Sections 1006 through 1008, inclusive,
and any such covenants provided pursuant to Section 301(21), 901(2) or
901(7)), 501(6), 501(7)), 501(10) and 501(11) shall be deemed not to be or
result in an Event of Default and (3) the provisions of Article Thirteen
shall cease to be effective, in each case with respect to such Securities and
Subsidiary Guarantees as provided in this Section on and after the date
the conditions set forth in Section 1504 are satisfied (herein called “Covenant Defeasance”). 
For this purpose, such Covenant Defeasance means that, with respect to
such Securities, the Company and the Subsidiary Guarantors, as applicable, may
omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such specified Section (to the
extent so specified in the case of Section 501(5)) or Article Thirteen,
whether directly or indirectly by reason of any reference elsewhere herein to
any such Section or Article or by reason of any reference in any such
Section or Article to any other provision herein or in any other
document, but the remainder of this Indenture and such Securities shall be
unaffected thereby.

 

62

 

SECTION 1504.              Conditions to Defeasance or
Covenant Defeasance.

 

The
following shall be the conditions to the application of Section 1502 or Section 1503
to any Securities or any series of Securities, as the case may be:

 

(1)           The Company shall irrevocably have deposited or
caused to be deposited with the Trustee (or another trustee which satisfies the
requirements contemplated by Section 609 and agrees to comply with the
provisions of this Article 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 benefits of the Holders of such Securities, (A) money
in an amount, or (B) U.S. Government Obligations 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, money in an amount, or (C) a combination thereof, in each
case sufficient, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to
the Trustee, to pay and discharge, and which shall be applied by the Trustee
(or any such other qualifying trustee) to pay and discharge, the principal of
and any premium and interest on such Securities on the respective Stated
Maturities, in accordance with the terms of this Indenture and such
Securities.  As used herein, “U.S. Government Obligation” means (x) any security
which is (i) a direct obligation of the United States of America for the
payment of which the full faith and credit of the United States of America is
pledged or (ii) an obligation of a Person controlled or supervised by and
acting as an agency or instrumentality of the United States of America the
payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, which, in either case (i) or
(ii), is not callable or redeemable at the option of the issuer thereof, and (y) any
depositary receipt issued by a bank (as defined in Section 3(a)(2) of
the Securities Act) as custodian with respect to any U.S. Government Obligation
which is specified in clause (x) above and held by such bank for the
account of the holder of such depositary receipt, or with respect to any
specific payment of principal of or interest on any U.S. Government Obligation
which is so specified and held, 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 depositary receipt from any amount received by the custodian
in respect of the U.S. Government Obligation or the specific payment of
principal or interest evidenced by such depositary receipt.

 

(2)           In the event of an election to have Section 1502
apply to any Securities or any series of Securities, as the case may be, the
Company shall have delivered to the Trustee an Opinion of Counsel stating that (A) the
Company has received from, or there has been published by, the Internal Revenue
Service a ruling or (B) since the date of this instrument, there has been
a change in the applicable Federal income tax law, in either case (A) or (B) to
the effect that, and based thereon such opinion shall confirm that, the Holders
of such Securities will not recognize gain or loss for Federal income tax
purposes as a result of the deposit, Defeasance and discharge to be effected
with respect to such Securities and will be subject to Federal income tax on
the same amount, in the same manner and at the same times as would be the case
if such deposit and Defeasance were not to occur.

 

(3)           In the event of an election to have Section 1503
apply to any Securities or any series of Securities, as the case may be, the
Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that the Holders of such Securities will not recognize gain or

 

63

 

loss
for Federal income tax purposes as a result of the deposit and Covenant
Defeasance to be effected with respect to such Securities and will be subject
to Federal income tax on the same amount, in the same manner and at the same
times as would be the case if such deposit and Covenant Defeasance were not to
occur.

 

(4)           The Company shall have delivered to the Trustee an
Officers’ Certificate to the effect that neither such Securities nor any other
Securities of the same series, if then listed on any securities exchange, will
be delisted as a result of such deposit.

 

(5)           No event which is, or after notice or lapse of time
or both would become, an Event of Default with respect to such Securities shall
have occurred and be continuing at the time of such deposit or, with regard to
any such event specified in Sections 501(7) and (8), at any time on or
prior to the 121st day after the date of such deposit (it being understood that
this condition shall not be deemed satisfied until after such 121st day).

 

(6)           Such Defeasance or Covenant Defeasance shall not
cause the Trustee to have a conflicting interest within the meaning of the
Trust Indenture Act (assuming all Securities are in default within the meaning
of such Act).

 

(7)           Such Defeasance or Covenant Defeasance shall not
result in a breach or violation of, or constitute a default under, any other
agreement or instrument to which the Company or any Subsidiary is a party or by
which it is bound.

 

(8)           The Company shall have delivered to the Trustee an
Opinion of Counsel to the effect that such deposit shall not cause either the
Trustee or the trust so created to be subject to the Investment Company Act of
1940.

 

(9)           The Company shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that all
conditions precedent with respect to such Defeasance or Covenant Defeasance
have been complied with.

 

SECTION 1505.              Deposited Money and U.S.
Government Obligations to Be Held in Trust; Miscellaneous Provisions.

 

Subject
to the provisions of the last paragraph of Section 1003, all money and
U.S. Government Obligations (including the proceeds thereof) deposited with the
Trustee or other qualifying trustee (solely for purposes of this Section and
Section 1506, the Trustee and any such other trustee are referred to
collectively as the “Trustee”)
pursuant to Section 1504 in respect of any Securities shall be held in
trust and applied by the Trustee, in accordance with the provisions of such
Securities and this Indenture, to the payment, either directly or through any
such Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Holders of such Securities, of all sums due and
to become due thereon in respect of principal and any premium and interest, but
money so held in trust need not be segregated from other funds except to the
extent required by law.

 

The
Company shall pay and indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against the U.S. Government Obligations deposited
pursuant to Section

 

64

 

1504
or the principal and interest received in respect thereof other than any such
tax, fee or other charge which by law is for the account of the Holders of
Outstanding Securities.

 

Anything
in this Article to the contrary notwithstanding, the Trustee shall deliver
or pay to the Company from time to time upon Company Request any money or U.S.
Government Obligations held by it as provided in Section 1504 with respect
to any Securities 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 the Defeasance or Covenant Defeasance, as
the case may be, with respect to such Securities.

 

SECTION 1506.              Reinstatement.

 

If
the Trustee or the Paying Agent is unable to apply any money in accordance with
this Article with respect to any Securities by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, then the obligations under this
Indenture and such Securities from which the Company has been discharged or released
pursuant to Section 1502 or 1503 shall be revived and reinstated as though
no deposit had occurred pursuant to this Article with respect to such
Securities, until such time as the Trustee or Paying Agent is permitted to
apply all money held in trust pursuant to Section 1505 with respect to
such Securities in accordance with this Article; provided, however, that if the
Company makes any payment of principal of or any premium or interest on any
such Security following such reinstatement of its obligations, the Company
shall be subrogated to the rights (if any) of the Holders of such Securities to
receive such payment from the money so held in trust.

 

ARTICLE SIXTEEN

SINKING FUNDS

 

SECTION 1601.              Applicability of Article.

 

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

 

The
minimum amount of any sinking fund payment provided for by the terms of any
Securities is herein referred to as a “mandatory sinking fund payment”, and any
payment in excess of such minimum amount provided for by the terms of such
Securities is herein referred to as an “optional sinking fund payment.”  If provided for by the terms of any
Securities, the cash amount of any sinking fund payment may be subject to
reduction as provided in Section 1602. 
Each sinking fund payment shall be applied to the redemption of
Securities as provided for by the terms of such Securities.

 

SECTION 1602.              Satisfaction of Sinking Fund
Payments with Securities.

 

The
Company (1) may deliver Outstanding Securities of a series (other than any
previously called for redemption) and (2) may apply as a credit Securities
of a series which have been (x) converted or (y) redeemed either at
the election of the Company pursuant to the terms of such Securities or through
the application of permitted optional sinking fund payments pursuant to the
terms of

 

65

 

such
Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to any Securities of such series required to be made
pursuant to the terms of such Securities as and to the extent provided for by
the terms of such Securities; provided, however, that the Securities to be so
credited have not been previously so credited. 
The Securities to be so credited shall be received and credited for such
purpose by the Trustee at the Redemption Price, as specified in the Securities
so to be redeemed, for redemption through operation of the sinking fund and the
amount of such sinking fund payment shall be reduced accordingly.

 

SECTION 1603.              Redemption of Securities for
Sinking Fund.

 

Not
less than 35 days prior to each sinking fund payment date for any Securities,
the Company will deliver to the Trustee an Officers’ Certificate specifying the
amount of the next ensuing sinking fund payment for such Securities pursuant to
the terms of such Securities, 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 Securities pursuant to Section 1602 and will also
deliver to the Trustee any Securities to be so delivered.  Not less than 32 days prior to each such
sinking fund payment date, the Trustee shall select the Securities to be
redeemed upon such sinking fund payment date in the manner specified in Section 1103
and cause notice of the redemption thereof to be given in the name of and at
the expense of the Company in the manner provided in Section 1104.  Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 1106 and 1107.

 

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.

 

[Remainder of Page Intentionally Left Blank]

 

66

 

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

 

	
   

  	
  ISSUER:

  
	
   

  	
   

  
	
   

  	
  ARKANSAS
  BEST CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SUBSIDIARY
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
  [SUBSIDIARY GUARANTORS]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TRUSTEE:

  
	
   

  	
   

  
	
   

  	
  [TRUSTEE’S NAME], as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

[Signature Page to
Senior Indenture]

 

 

SCHEDULE I

SUBSIDIARY GUARANTORS

 

	
  SUBSIDIARY

  	
   

  	
  STATE OF

  ORGANIZATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [Insert Subsidiary Guarantors]

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