Document:

PMA Capital Corporation Exhibit 4-7

Exhibit
4.7

INDENTURE
(PMA CAPITAL CORPORATION)

PMA
CAPITAL CORPORATION, Issuer

To

U.S. BANK
NATIONAL ASSOCIATION, Trustee

 

__________________________

 

INDENTURE

__________________________

Dated as
of November 15, 2004

$101,250,000
Aggregate Principal Amount

Secured
Senior Securities

	
       

      Trust
      Indenture

      Act
      Section
	
      Indenture
      Section

	
      §§ 310(a)(1) 
	
      6.8

	
      (a)(2)
	
      6.8

	
      (b)
	
      6.9

	
      (c)
	
      Not Applicable

	
      §§
      311(a) 
	
      6.13

	
      (b)
	
      6.13

	
      (c)
	
      Not
      Applicable

	
      §§
      312(a) 
	
      7.1

	
      (b)
	
      7.2

	
      (c)
	
      7.2

	
      §§
      313(a) 
	
      7.3

	
      (b)
	
      7.3

	
      (c)
	
      7.3

	
      (d)
	
      7.3

	
      §§
      314(a) 
	
      7.4

	
      (b)
	
      1.17

	
      (c)
	
      1.2

	
      (d)
	
      10.9

	
      (e)
	
      1.2

	
      (f)
	
      Not
      Applicable

	
      §§
      315(a) 
	
      6.1

	
      (b)
	
      6.3

	
      (c)
	
      6.1

	
      (d)
	
      6.1

	
      (e)
	
      5.15

	
      §§
      316(a)(1) 
	
      5.2, 5.12 and 5.13

	
      (b)
	
      5.8

	
      (c)
	
      1.4

	
      §§
      317(a)(1) 
	
      5.3

	
      (a)(2)
	
      5.4

	
      (b)
	
      10.3

	
      §§
      318(a) 
	
      1.8

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

	 	
      Table
      of Contents
	
      Page

	 	 	 
	 	
      ARTICLE
      1
	 
	 	
      DEFINITIONS
      AND OTHER PROVISIONS OF GENERAL APPLICATION
	 
	 	 	 
	
      Section
      1.1.
	
      Definitions.
	
      1

	
      Section
      1.2.
	
      Compliance
      Certificates and Opinions.
	
      12

	
      Section
      1.3.
	
      Form
      of Documents Delivered to Trustee.
	
      12

	
      Section
      1.4.
	
      Acts
      of Holders.
	
      13

	
      Section
      1.5.
	
      Notices,
      etc. to Trustee and Company.
	
      15

	
      Section
      1.6.
	
      Notice
      to Holders of Securities; Waiver.
	
      15

	
      Section
      1.7.
	
      Language
      of Notices.
	
      16

	
      Section
      1.8.
	
      Conflict
      with Trust Indenture Act.
	
      16

	
      Section
      1.9.
	
      Effect
      of Headings and Table of Contents.
	
      16

	
      Section
      1.10.
	
      Successors
      and Assigns.
	
      16

	
      Section
      1.11.
	
      Separability
      Clause.
	
      17

	
      Section
      1.12.
	
      Benefits
      of Indenture.
	
      17

	
      Section
      1.13.
	
      Governing
      Law.
	
      17

	
      Section
      1.14.
	
      Legal
      Holidays.
	
      17

	
      Section
      1.15.
	
      Counterparts.
	
      17

	
      Section
      1.16.
	
      Judgment
      Currency.
	
      18

	
      Section
      1.17.
	
      Security
      Interest Created in Supplemental Indenture; Release of Security
      Interest.
	
      18

	
      Section
      1.18.
	
      Limitation
      on Individual Liability.
	
      19

	
      Section
      1.19.
	
      Submission
      to Jurisdiction.
	
      19

	 	 	 
	 	
      ARTICLE
      2
	 
	 	
      SECURITIES
      FORMS
	 
	 	 	 
	
      Section
      2.1.
	
      Forms
      Generally.
	
      20

	
      Section
      2.2.
	
      Form
      of Trustee’s Certificate of Authentication.
	
      20

	
      Section
      2.3.
	
      Securities
      in Global Form.
	
      21

	 	 	 
	 	
      ARTICLE
      3
	 
	 	
      THE
      SECURITIES
	 
	 	 	 
	
      Section
      3.1.
	
      Amount
      Limited; Issuable in Series.
	
      22

	
      Section
      3.2.
	
      Currency;
      Denominations.
	
      25

	
      Section
      3.3.
	
      Execution,
      Authentication, Delivery and Dating.
	
      25

	
      Section
      3.4.
	
      Temporary
      Securities.
	
      27

	
      Section
      3.5.
	
      Registration,
      Transfer and Exchange.
	
      28

	
      Section
      3.6.
	
      Mutilated,
      Destroyed, Lost and Stolen Securities.
	
      31

	
      Section
      3.7.
	
      Payment
      of Interest and Certain Additional Amounts; Rights to Interest and Certain
      Additional Amounts Preserved.
	
      32

	
      Section
      3.8.
	
      Persons
      Deemed Owners.
	
      34

 

 

Table
of Contents

(continued)

 

	
      Section
      3.9.
	
      Cancellation.
	
      35

	
      Section
      3.10.
	
      Computation
      of Interest.
	
      35

	
      Section
      3.11.
	
      CUSIP
      and ISIN Numbers.
	
      35

	 	 	 
	 	
      ARTICLE
      4
	 
	 	
      SATISFACTION
      AND DISCHARGE OF INDENTURE
	 
	 	 	 
	
      Section
      4.1.
	
      Satisfaction
      and Discharge.
	
      35

	
      Section
      4.2.
	
      Defeasance
      and Covenant Defeasance.
	
      37

	
      Section
      4.3.
	
      Application
      of Trust Money.
	
      41

	 	 	 
	 	
      ARTICLE
      5
	 
	 	
      REMEDIES
	 
	 	 	 
	
      Section
      5.1.
	
      Events
      of Default.
	
      41

	
      Section
      5.2.
	
      Acceleration
      of Maturity; Rescission and Annulment.
	
      43

	
      Section
      5.3.
	
      Collection
      of Indebtedness and Suits for Enforcement by Trustee.
	
      45

	
      Section
      5.4.
	
      Trustee
      May File Proofs of Claim.
	
      46

	
      Section
      5.5.
	
      Trustee
      May Enforce Claims without Possession of Securities or
      Coupons.
	
      46

	
      Section
      5.6.
	
      Application
      of Money Collected.
	
      47

	
      Section
      5.7.
	
      Limitations
      on Suits.
	
      47

	
      Section
      5.8.
	
      Unconditional
      Right of Holders to Receive Principal and any Premium, Interest and
      Additional Amounts.
	
      48

	
      Section
      5.9.
	
      Restoration
      of Rights and Remedies.
	
      48

	
      Section
      5.10.
	
      Rights
      and Remedies Cumulative.
	
      48

	
      Section
      5.11.
	
      Delay
      or Omission Not Waiver.
	
      49

	
      Section
      5.12.
	
      Control
      by Holders of Securities.
	
      49

	
      Section
      5.13.
	
      Waiver
      of Past Defaults.
	
      49

	
      Section
      5.14.
	
      Waiver
      of Usury, Stay or Extension Laws.
	
      49

	
      Section
      5.15.
	
      Undertaking
      for Costs.
	
      50

	 	 	 
	 	
      ARTICLE
      6
	 
	 	
      THE
      TRUSTEE
	 
	 	 	 
	
      Section
      6.1.
	
      Certain
      Duties and Responsibilities.
	
      50

	
      Section
      6.2.
	
      Certain
      Rights of Trustee.
	
      51

	
      Section
      6.3.
	
      Notice
      of Defaults.
	
      53

	
      Section
      6.4.
	
      Not
      Responsible for Recitals or Issuance of Securities.
	
      53

	
      Section
      6.5.
	
      May
      Hold Securities.
	
      53

	
      Section
      6.6.
	
      Money
      Held in Trust.
	
      54

	
      Section
      6.7.
	
      Compensation
      and Reimbursement.
	
      54

	
      Section
      6.8.
	
      Corporate
      Trustee Required; Eligibility.
	
      55

	
      Section
      6.9.
	
      Resignation
      and Removal; Appointment of Successor.
	
      55

	
      Section
      6.10.
	
      Acceptance
      of Appointment by Successor.
	
      57

	
      Section
      6.11.
	
      Merger,
      Conversion, Consolidation or Succession to Business.
	
      58

	
      Section
      6.12.
	
      Appointment
      of Authenticating Agent.
	
      58

 

 

ii

 

 
Table
of Contents

(continued)

 

	
      Section
      6.13.
	
      Preferential
      Collection of Claims Against the Company.
	
      60

	
      Section
      6.14.
	
      Co-Trustee
      and Separate Trustees.
	
      60

	
      Section
      6.15.
	
      Patriot
      Act
	
      61

	 	 	 
	 	
      ARTICLE
      7
	 
	 	
      HOLDERS
      LISTS AND REPORTS BY TRUSTEE AND COMPANY
	 
	 	 	 
	
      Section
      7.1.
	
      Company
      to Furnish Trustee Names and Addresses of Holders.
	
      62

	
      Section
      7.2.
	
      Preservation
      of Information; Communications to Holders.
	
      62

	
      Section
      7.3.
	
      Reports
      by Trustee.
	
      62

	
      Section
      7.4.
	
      Reports
      by Company.
	
      62

	 	 	 
	 	
      ARTICLE
      8
	 
	 	
      CONSOLIDATION,
      AMALGAMATIONS, MERGER AND SALES
	 
	 	 	 
	
      Section
      8.1.
	
      Company
      May Consolidate, Etc., Only on Certain Terms.
	
      63

	
      Section
      8.2.
	
      Successor
      Person Substituted for Company.
	
      64

	 	 	 
	 	
      ARTICLE
      9
	 
	 	
      SUPPLEMENTAL
      INDENTURES
	 
	 	 	 
	
      Section
      9.1.
	
      Supplemental
      Indentures without Consent of Holders.
	
      65

	
      Section
      9.2.
	
      Supplemental
      Indentures with Consent of Holders.
	
      66

	
      Section
      9.3.
	
      Execution
      of Supplemental Indentures.
	
      68

	
      Section
      9.4.
	
      Effect
      of Supplemental Indentures.
	
      68

	
      Section
      9.5.
	
      Reference
      in Securities to Supplemental Indentures.
	
      68

	
      Section
      9.6.
	
      Conformity
      with Trust Indenture Act.
	
      68

	
      Section
      9.7.
	
      Notice
      of Supplemental Indenture.
	
      68

	 	 	 
	
      ARTICLE
      10
	 	 
	
      COVENANTS
	 	 
	 	 	 
	
      Section
      10.1.
	
      Payment
      of Principal, any Premium, Interest and Additional
Amounts.
	
      69

	
      Section
      10.2.
	
      Maintenance
      of Office or Agency.
	
      69

	
      Section
      10.3.
	
      Money
      for Securities Payments to Be Held in Trust.
	
      70

	
      Section
      10.4.
	
      Additional
      Amounts.
	
      72

	
      Section
      10.5.
	
      Corporate
      Existence.
	
      74

	
      Section
      10.6.
	
      Waiver
      of Certain Covenants.
	
      74

	
      Section
      10.7.
	
      Company
      Statement as to Compliance; Notice of Certain Defaults.
	
      74

	
      Section
      10.8.
	
      Recordation.
	
      75

	
      Section
      10.9.
	
      Evidence
      of Recording of Indenture.
	
      75

	 	 	 
	 	
      ARTICLE
      11
	 
	 	
      REDEMPTION
      OF SECURITIES
	 
	 	 	 
	
      Section
      11.1.
	
      Applicability
      of Article.
	
      75

	
      Section
      11.2.
	
      Election
      to Redeem; Notice to Trustee.
	
      76

 

iii

Table
of Contents

(continued)

 

 

	
      Section
      11.3.
	
      Selection
      by Trustee of Securities to be Redeemed.
	
      76

	
      Section
      11.4.
	
      Notice
      of Redemption.
	
      76

	
      Section
      11.5.
	
      Deposit
      of Redemption Price.
	
      78

	
      Section
      11.6.
	
      Securities
      Payable on Redemption Date.
	
      78

	
      Section
      11.7.
	
      Securities
      Redeemed in Part.
	
      79

	 	 	 
	 	
      ARTICLE
      12
	 
	 	
      SINKING
      FUNDS
	 
	 	 	 
	
      Section
      12.1.
	
      Applicability
      of Article.
	
      79

	
      Section
      12.2.
	
      Satisfaction
      of Sinking Fund Payments with Securities.
	
      80

	
      Section
      12.3.
	
      Redemption
      of Securities for Sinking Fund.
	
      80

	 	 	 
	 	
      ARTICLE
      13
	 
	 	
      REPAYMENT
      AT THE OPTION OF HOLDERS
	 
	 	 	 
	
      Section
      13.1.
	
      Applicability
      of Article.
	
      81

	 	 	 
	 	
      ARTICLE
      14
	 
	 	
      SECURITIES
      IN FOREIGN CURRENCIES
	 
	 	 	 
	
      Section
      14.1.
	
      Applicability
      of Article.
	
      81

	 	 	 
	 	
      ARTICLE
      15
	 
	 	
      MEETINGS
      OF HOLDERS OF SECURITIES
	 
	 	 	 
	
      Section
      15.1.
	
      Purposes
      for Which Meetings May Be Called.
	
      82

	
      Section
      15.2.
	
      Call,
      Notice and Place of Meetings.
	
      82

	
      Section
      15.3.
	
      Persons
      Entitled to Vote at Meetings.
	
      82

	
      Section
      15.4.
	
      Quorum;
      Action.
	
      83

	
      Section
      15.5.
	
      Determination
      of Voting Rights; Conduct and Adjournment of Meetings.
	
      83

	
      Section
      15.6.
	
      Counting
      Votes and Recording Action of Meetings.
	
      84

	 	 	 

iv

INDENTURE,
dated as of November 15, 2004 (the “Indenture”), between PMA CAPITAL
CORPORATION, a company duly organized and existing under the laws of
Pennsylvania (hereinafter called the “Company”), having its principal executive
office located at 380 Sentry Parkway, Blue Bell, Pennsylvania 19422, and U.S.
BANK NATIONAL ASSOCIATION, a national banking association duly organized and
existing under the laws of the United States of America (hereinafter called the
“Trustee”), having its Corporate Trust Office located at 225 Asylum Street,
Hartford, CT 06103. 

RECITALS

The
Company has duly authorized the execution and delivery of this Indenture to
provide for the issuance from time to time of its senior securities (hereinafter
called the “Securities”), limited to $101,250,000 in aggregate principal amount,
to bear such rates of interest, to mature at such time or times, to be issued in
one or more series and to have such other provisions as shall be fixed as
hereinafter provided. 

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

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

NOW,
THEREFORE, THIS INDENTURE WITNESSETH: 

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

ARTICLE
1 

DEFINITIONS
AND OTHER PROVISIONS OF GENERAL APPLICATION

 

	 	
      Section
      1.1.
	
      Definitions.

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

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

(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 in the United States
of America and, except as otherwise herein expressly provided, the terms
“generally accepted accounting principles” or “GAAP” with respect to any
computation required or permitted hereunder shall mean such accounting
principles as are generally accepted in the United States of America at the date
or time of such computation; 

 

 

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

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

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

“Act,”
when used with respect to any Holders, has the meaning specified in Section
1.4.

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

“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 stock, by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing. 

“Attributable
Debt” in
respect of a sale and leaseback transaction means, at the time of determination,
the present value of the obligation of the lessee for net rental payments during
the remaining term of the lease included in such sale and leaseback transaction
including any period for which such lease has been extended or may, at the
option of the lessor, be extended. Such present value shall be calculated using
a discount rate equal to the rate of interest implicit in such transaction,
determined in accordance with GAAP. 

“Authenticating
Agent” means any Person authorized by the Trustee pursuant to Section 6.12 to
act on behalf of the Trustee to authenticate Securities of one or more series.

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

 

 

2

“Authorized
Officer” means, when used with respect to the Company, the Chairman of the Board
of Directors, the President, the Chief Executive Officer, the Chief Financial
Officer, the Treasurer, the Chief Accounting Officer, the General Counsel or the
Secretary of the Company. 

“Bearer
Security” means any Security in the form established pursuant to Section 2.1
which is payable to bearer. 

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

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

“Business
Day,” with respect to any Place of Payment or other location, means, unless
otherwise specified with respect to any Securities pursuant to Section 3.1, any
day other than a Saturday, Sunday or other day on which banking institutions in
such Place of Payment or other location are authorized or obligated by law,
regulation or executive order to close. 

“Capital
Stock,” means with respect to any Person any and all shares, interests,
participations or other equivalents (however designated) of corporate stock or
partnership or limited liability company interests and any and all warrants,
options and rights with respect thereto (whether or not currently exercisable),
including each class of common stock and preferred stock of such person.

“Capitalized
Lease Obligation” of any Person means the obligations of such Person to pay rent
or other amounts under a lease of property, real or personal, that is required
to be capitalized for financial reporting purposes in accordance with generally
accepted accounting principles, and the amount of Indebtedness represented by
such obligation shall be the capitalized amount of such obligation determined in
accordance with such principles. 

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

“Common
Stock” in respect of any Corporation means Capital Stock of any class or classes
(however designated) which has no preference as to the payment of dividends, or
as to the distribution of assets upon any voluntary or involuntary liquidation
or dissolution of such Corporation, and which is not subject to redemption by
such Corporation. 

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

 

 

3

“Company
Request” and “Company Order” mean, respectively, a written request or order, as
the case may be, signed in the name of the Company by an Authorized Officer, and
delivered to the Trustee. 

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

“Corporate
Trust Office” means a corporate trust office of the Trustee at which at any
particular time its corporate trust business shall be administered, which office
at the date of original execution of this Indenture is located at Goodwin
Square, 225 Asylum Street, 23rd Floor,
Hartford, CT 06103. 

“Corporation”
includes corporations and limited liability companies and, except for purposes
of Article 8, associations, companies and business trusts. 

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

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

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

“Defaulted
Interest” has the meaning specified in Section 3.7. 

“Disqualified
Capital Stock” means any Capital Stock of the Company or any Restricted
Subsidiary of the Company which, by its terms (or by the terms of any security
into which it is convertible or for which it is exchangeable), or upon the
happening of any event or with the passage of time, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable
at the option of the holder thereof, in whole or in part, on or prior to the
Maturity Date or which is exchangeable or convertible into debt securities of
the Company or any Restricted Subsidiary of the Company, except to the extent
that such exchange or conversion rights cannot be exercised prior to the
Maturity Date. 

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

“Event of
Default” has the meaning specified in Section 5.1. 

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

 

 

4

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

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

“Indebtedness”
means, without duplication, with respect to any Person, 

(a) all
obligations of such Person 

	 	
      (1)
	
      in
      respect of borrowed money (whether or not the recourse of the lender is to
      the whole of the assets of such Person or only to a portion
      thereof),

	 	
      (2)
	
      evidenced
      by bonds, new debentures, debentures or similar instruments,
    

	 	
      (3)
	
      representing
      the balance deferred and unpaid of the purchase price of any property or
      services (other than accounts payable or accrued expenses arising in the
      ordinary course of business), 

	 	
      (4)
	
      evidenced
      by bankers’ acceptances or similar instruments issued or accepted by
      banks, 

	 	
      (5)
	
      for
      the payment of money relating to a Capitalized Lease Obligation and
      Attributable Indebtedness of such Person, or

	 	
      (6)
	
      evidenced
      by a letter of credit or a reimbursement obligation of such Person with
      respect to any letter of credit; 

	 	
      (b)
	
      all
      net obligations of such Person in respect of Currency Hedge Obligations
      and Interest Rate Hedging Agreements; 

 

 

 

5

	 	
      (c)
	
      all
      liabilities of others of the kind described in the preceding clauses (a)
      or (b) that such Person has guaranteed or that are otherwise its legal
      liability; 

	 	
      (d)
	
      in
      respect of Indebtedness (as otherwise defined in this definition) of
      another Person secured by a Lien on any asset of such Person, whether or
      not such Indebtedness is assumed by such Person, the amount of such
      obligations being deemed to be the lesser of

	 	
      (1)
	
      the
      full amount of such obligations so secured, and

	 	
      (2)
	
      the
      fair market value of such asset, as determined in good faith by the Board
      of Directors of such Person, which determination shall be evidenced by a
      resolution of such Board; 

	 	
      (e)
	
      with
      respect to such Person, the liquidation preference or any mandatory
      redemption payment obligations in respect of Disqualified Capital Stock;
      

	 	
      (f)
	
      the
      aggregate preference in respect of amounts payable on the issued and
      outstanding shares of preferred stock of any of the Company’s Restricted
      Subsidiaries in the event of any voluntary or involuntary liquidation,
      dissolution or winding up (excluding any such preference attributable to
      such shares of preferred stock that are owned by such Person or any of its
      Restricted Subsidiaries; provided, that if such Person is the Company,
      such exclusion shall be for such preference attributable to such shares of
      preferred stock that are owned by the Company or any of its Restricted
      Subsidiaries); and 

	 	
      (g)
	
      any
      and all deferrals, renewals, extensions, refinancings and refundings
      (whether direct or indirect) of, or amendments, modifications or
      supplements to, any liability of the kind described in any of the
      preceding clauses (a), (b), (c), (d), (e) or (f) or this clause (g),
      whether or not between or among the same parties.

“Indenture”
means this instrument as it may from time to time be supplemented or amended by
one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof and, with respect to any Security, by the terms and
provisions of such Security and any Coupon appertaining thereto established
pursuant to Section 3.1 (as such terms and provisions may be amended pursuant to
the applicable provisions hereof). 

“Independent
Public Accountants” means accountants or a firm of accountants that, with
respect to the Company and any other obligor under the Securities or the
Coupons, are independent public accountants within the meaning of the Securities
Act of 1933, as amended, and the rules and regulations promulgated by the
Commission thereunder, who may be the independent public accountants regularly
retained by the Company or who may be other independent public accountants. Such
accountants or firm shall be entitled to rely upon any Opinion of Counsel as to
the interpretation of any legal matters relating to this Indenture or
certificates required to be provided hereunder. 

 

 

6

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

“Interest,”
with respect to any Original Issue Discount Security which by its terms bears
interest only after Maturity, means interest payable after some period of time,
payable at the end of such period and, when used with respect to a Security
which provides for the payment of Additional Amounts pursuant to Section 10.4,
includes such Additional Amounts. 

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

“Judgment
Currency” has the meaning specified in Section 1.16. 

“Legal
Holidays” has the meaning specified in Section 1.14. 

“Lien”
means, with respect to any Person, any mortgage, pledge, lien, encumbrance,
easement, restriction, covenant, right-of-way, charge or adverse claim affecting
title or resulting in an encumbrance against real or personal property of such
Person, or a security interest of any kind (including any conditional sale or
other title retention agreement, any lease in the nature thereof, any option,
right of first refusal or other similar agreement to sell, in each case securing
obligations of such Person and any filing of or agreement to give any financing
statement under the Uniform Commercial Code (or equivalent statutes) of any
jurisdiction). 

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

“New York
Banking Day” has the meaning specified in Section 1.16. 

“Office”
or “Agency,” with respect to any Securities, means an office or agency of the
Company maintained or designated in a Place of Payment for such Securities
pursuant to Section 10.2 or any other office or agency of the Company maintained
or designated for such Securities pursuant to Section 10.2 or, to the extent
designated or required by Section 10.2 in lieu of such office or agency, the
Corporate Trust Office of the Trustee. 

“Officer’s
Certificate” means a certificate signed by an Authorized Officer that complies
with the requirements of Section 314(e) of the Trust Indenture Act and is
delivered to the Trustee. 

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

 

 

7

“Original
Issue Discount Security” means a Security issued pursuant to this Indenture
which provides for declaration of an amount less than the principal face amount
thereof to be due and payable upon acceleration pursuant to Section 5.2.

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

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

	 	
      (b)
	
      any
      such Security for whose payment at the Maturity thereof money in the
      necessary amount has been theretofore deposited pursuant hereto (other
      than pursuant to Section 4.2) with the Trustee or any Paying Agent (other
      than the Company) in trust or set aside and segregated in trust by the
      Company (if the Company shall act as its own Paying Agent) for the Holders
      of such Securities and any Coupons appertaining thereto, provided that, if
      such Securities are to be redeemed, notice of such redemption has been
      duly given pursuant to this Indenture or provision therefor satisfactory
      to the Trustee has been made; 

	 	
      (c)
	
      any
      such Security with respect to which the Company has effected defeasance
      pursuant to the terms hereof, except to the extent provided in Section
      4.2; 

	 	
      (d)
	
      any
      such Security which has been paid pursuant to Section 3.6 or in exchange
      for or in lieu of which other Securities have been authenticated and
      delivered pursuant to this Indenture, unless there shall have been
      presented to the Trustee proof satisfactory to it that such Security is
      held by a bona fide purchaser in whose hands such Security is a valid
      obligation of the Company; and 

	 	
      (e)
	
      any
      such Security converted or exchanged as contemplated by this Indenture
      into other securities of the Company or securities of another issuer, if
      the terms of such Security provide for such conversion or exchange
      pursuant to Section 3.1; 

provided,
however, that in determining whether the Holders of the requisite principal
amount of Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder or are present at a meeting of
Holders of Securities for quorum purposes, (i) the principal amount of an
Original Issue Discount Security that may be counted in making such
determination and that shall be deemed to be Outstanding for such purposes shall
be equal to the amount of the principal thereof that pursuant to the terms of
such Original Issue Discount Security would be declared (or shall have been
declared to be) due and payable upon a declaration of acceleration thereof
pursuant to Section 5.2 at the time of such determination, and (ii) the
principal amount of any Indexed Security that may be counted in making such
determination and that shall be deemed Outstanding for such purposes shall be
equal to the principal face amount of such Indexed Security at original
issuance, unless otherwise provided in or pursuant to this Indenture, and (iii)
the principal amount of a Security denominated in a Foreign Currency shall be
the Dollar equivalent, determined on the date of original issuance of such
Security, of the principal amount (or, in the case of an Original Issue Discount
Security, the Dollar equivalent on the date of original issuance of such
Security of the amount determined as provided in (i) above) of such Security,
and (iv) Securities owned by the Company or any other obligor upon the
Securities or any Affiliate of the Company or such other obligor, shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Trustee shall be protected in making any such determination or
relying upon any such request, demand, authorization, direction, notice, consent
or waiver, only Securities which a Responsible Officer of the Trustee actually
knows to be so owned shall be so disregarded. Securities so owned which shall
have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee (A) the pledgee’s right so to act
with respect to such Securities and (B) that the pledgee is not the Company or
any other obligor upon the Securities or any Coupons appertaining thereto or an
Affiliate of the Company or such other obligor. 

 

 

8

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

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

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

“Predecessor
Security” of any particular Security means every previous Security evidencing
all or a portion of the same Indebtedness as that evidenced by such particular
Security; and, for the purposes of this definition, any Security authenticated
and delivered under Section 3.6 in exchange for or in lieu of a lost, destroyed,
mutilated or stolen Security or any Security to which a mutilated, destroyed,
lost or stolen Coupon appertains shall be deemed to evidence the same
Indebtedness as the lost, destroyed, mutilated or stolen Security or the
Security to which a mutilated, destroyed, lost or stolen Coupon appertains.

“Preferred
Stock” of any Person means any Capital Stock of any class or classes (however
designated) which is preferred as to the payment of dividends, or as to the
distribution of assets upon any voluntary or involuntary liquidation or
dissolution of such Person, over shares of Capital Stock of any other class of
such Person. 

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

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

“Registered
Security” means any Security established pursuant to Section 2.1 which is
registered in a Security Register. 

 

 

9

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

“Required
Currency” has the meaning specified in Section 1.16. 

“Responsible
Officer” means any officer within the corporate trust services division of the
Trustee, including vice president, any assistant vice president, any assistant
secretary, assistant treasurer, any trust officer or any other officer of the
Trustee customarily performing functions similar to those performed by any of
the above designated officers and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred
because of his or her knowledge of and familiarity with the particular subject
and who shall have direct responsibility for the administration of this
Indenture. 

“Security”
or “Securities” means any note or notes, bond or bonds, debenture or debentures,
or any other evidences of Indebtedness, as the case may be, authenticated and
delivered under this Indenture; provided, however, that, if at any time there is
more than one Person acting as Trustee under this Indenture, “Securities,” with
respect to any such Person, shall mean Securities authenticated and delivered
under this Indenture, exclusive, however, of Securities of any series as to
which such Person is not Trustee. 

“Security
Register” and “Security Registrar” have the respective meanings specified in
Section 3.5. 

“Significant
Subsidiary” means a Subsidiary of the Company, including its Subsidiaries, which
meets any of the following conditions (in each case determined in accordance
with generally accepted accounting principles): (i) the Company’s and its other
Subsidiaries’ investment in and advances to the Subsidiary exceed 10 percent of
the total assets of the Company and its Subsidiaries consolidated as of the end
of the most recently completed fiscal year; (ii) the Company’s and its other
Subsidiaries’ proportionate share of the total assets (after intercompany
eliminations) of the Subsidiary exceeds 10 percent of the total assets of the
Company and its Subsidiaries consolidated as of the end of the most recently
completed fiscal year; or (iii) the Company’s and its other Subsidiaries’ equity
interest in the income from continuing operations before income taxes,
extraordinary items and cumulative effect of a change in accounting principles
of the Subsidiary exceed 10 percent of such income of the Company and its
Subsidiaries consolidated for the most recently completed fiscal year. As of the
date hereof, the Company’s Significant Subsidiaries consist of PMA Capital
Insurance Company, Pennsylvania Manufacturers’ Association Insurance Company,
Pennsylvania Manufacturers Indemnity Company and Manufacturers Alliance
Insurance Company.

“Special
Record Date” for the payment of any Defaulted Interest on any Registered
Security means a date fixed by the Company pursuant to Section 3.7.

“Stated
Maturity” means, with respect to any Indebtedness, the date specified in such
Indebtedness as the fixed date on which the final payment of such Indebtedness
is due and payable, including pursuant to any mandatory redemption (but
excluding any provision providing for the repurchase of such Indebtedness at the
option of the holder thereof upon the happening of any contingency unless such
contingency has occurred). 

 

 

10

“Subsidiary”
means any subsidiary of the Company. A “subsidiary” of any Person means:

	 	
      (1)
	
      a
      corporation a majority of whose Voting Stock is at the time, directly or
      indirectly, owned by such Person, by one or more subsidiaries of such
      Person or by such Person and one or more subsidiaries of such Person,
      

	 	
      (2)
	
      a
      partnership in which such Person or a subsidiary of such Person is, at the
      date of determination, a general or limited partner of such partnership,
      but only if such Person or its subsidiary is entitled to receive more than
      20 percent of the assets of such partnership upon its dissolution, or
      

	 	
      (3)
	
      any
      other Person (other than a corporation or partnership) which is
      controlled, directly or indirectly, by such Person or in which such
      Person, directly or indirectly, at the date of determination thereof, has
      (x) at least a majority ownership interest or (y) the power to elect or
      direct the election of a majority of the directors or other governing body
      of such Person. 

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

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

“United
States,” except as otherwise provided in or pursuant to this Indenture or any
Security, means the United States of America (including the states thereof and
the District of Columbia), its territories and possessions and other areas
subject to its jurisdiction. 

“U.S.
Depositary” or “Depositary” means, with respect to any Security issuable or
issued in the form of one or more global Securities, the Person designated as
U.S. Depositary or Depositary by the Company in or pursuant to this Indenture,
which Person must be, to the extent required by applicable law or regulation, a
clearing agency registered under the Securities Exchange Act of 1934, as
amended, and, if so provided with respect to any Security, any successor to such
Person. If at any time there is more than one such Person, “U.S. Depositary” or
“Depositary” shall mean, with respect to any Securities, the qualifying entity
which has been appointed with respect to such Securities. 

“Vice
President,” when used with respect to 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”. 

 

 

11

“Voting
Stock” of any Person means any class or classes of Capital Stock which entitle
the holders thereof under ordinary circumstances to elect at least a majority of
the Board of Directors of such Person (irrespective of whether or not, at the
time, stock of any other class or classes shall have, or might have, voting
power by reason of the happening of any contingency). 

 

	 	
      Section
      1.2.
	
      Compliance
      Certificates and Opinions. 

Except as
otherwise expressly provided in this Indenture, upon any application or request
by the Company to the Trustee to take any action under any provision of this
Indenture, the Company shall furnish to the Trustee an Officer’s Certificate
stating that all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with and an Opinion of
Counsel stating that, in the opinion of such counsel, all such conditions
precedent, if any, have been complied with, except that in the case of any such
application or request as to which the furnishing of such documents or any of
them is specifically required by any provision of this Indenture relating to
such particular application or request, the certificate or opinion may be
combined with the certificate or opinion described above in this Section 1.2.

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

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

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

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

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

 

	 	
      Section
      1.3.
	
      Form
      of Documents Delivered to Trustee. 

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

Any
certificate or opinion of an officer of the Company may be based, insofar as it
relates to legal matters, upon an Opinion of Counsel, provided that such
officer, after reasonable inquiry, has no reason to believe and does not believe
that the Opinion of Counsel with respect to the matters upon which his
certificate or opinion is based is erroneous. Any such Opinion of Counsel may be
based, insofar as it relates to factual matters, upon a certificate or opinion
of, or representations by, an officer or officers of the Company stating that
the information with respect to such factual matters is in the possession of the
Company, provided that such counsel, after reasonable inquiry, has no reason to
believe and does not believe that the certificate or opinion or representations
with respect to such matters are erroneous. 

 

 

12

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

 

	 	
      Section
      1.4.
	
      Acts
      of Holders. 

(1) Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by or pursuant to this Indenture to be given or taken by Holders
may be embodied in and evidenced by one or more instruments of substantially
similar tenor signed by such Holders in person or by an agent duly appointed in
writing. Any request, demand, authorization, direction, notice, consent, waiver
or other action provided in or pursuant to this Indenture to be given or taken
by Holders of Securities of any series may, alternatively, be embodied in and
evidenced by the record of Holders of Securities of such series voting in favor
thereof, either in person or by proxies duly appointed in writing, at any
meeting of Holders of Securities of such series duly called and held in
accordance with the provisions of Article 15, or a combination of such
instruments and any such record. Except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments or record
or both are delivered to the Trustee and, where it is hereby expressly required,
to the Company. Such instrument or instruments and any such record (and the
action embodied therein and evidenced thereby) are herein sometimes referred to
as the “Act” of the Holders signing such instrument or instruments or so voting
at any such meeting. Proof of execution of any such instrument or of a writing
appointing any such agent, or of the holding by any Person of a Security, shall
be sufficient for any purpose of this Indenture and (subject to Section 315 of
the Trust Indenture Act) conclusive in favor of the Trustee, the Company and any
agent of the Trustee or the Company, if made in the manner provided in this
Section. The record of any meeting of Holders of Securities shall be proved in
the manner provided in Section 15.6. 

Without
limiting the generality of this Section 1.4, unless otherwise provided in or
pursuant to this Indenture, a Holder, including a U.S. Depositary that is a
Holder of a global Security, may make, give or take, by a proxy or proxies duly
appointed in writing, any request, demand, authorization, direction, notice,
consent, waiver or other Act provided in or pursuant to this Indenture to be
made, given or taken by Holders, and a U.S. Depositary that is a Holder of a
global Security may provide its proxy or proxies to the beneficial owners of
interests in any such global Security through such U.S. Depositary’s standing
instructions and customary practices. 

The
Company shall fix a record date for the purpose of determining the Persons who
are beneficial owners of interest in any permanent global Security held by a
U.S. Depositary entitled under the procedures of such U.S. Depositary to make,
give or take, by a proxy or proxies duly appointed in writing, any request,
demand, authorization, direction, notice, consent, waiver or other Act provided
in or pursuant to this Indenture to be made, given or taken by Holders. If such
a record date is fixed, the Holders on such record date or their duly appointed
proxy or proxies, and only such Persons, shall be entitled to make, give or take
such request, demand, authorization, direction, notice, consent, waiver or other
Act, whether or not such Holders remain Holders after such record date. No such
request, demand, authorization, direction, notice, consent, waiver or other Act
shall be valid or effective if made, given or taken more than 90 days after such
record date. 

 

 

13

(2) The fact
and date of the execution by any Person of any such instrument or writing
referred to in this Section 1.4 may be proved in any reasonable manner; and the
Trustee may in any instance require further proof with respect to any of the
matters referred to in this Section. 

(3) The
ownership, principal amount and serial numbers of Registered Securities held by
any Person, and the date of the commencement and the date of the termination of
holding the same, shall be proved solely and conclusively by the Security
Register. Where such execution is by a signer acting in a capacity other than
such signer’s individual capacity, such certificate or affidavit shall also
constitute sufficient proof of such signer’s authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person
executing the same, may also be proved in any other manner which the Trustee
deems sufficient. 

(4) The
ownership, principal amount and serial numbers of Bearer Securities held by any
Person, and the date of the commencement and the date of the termination of
holding the same, may be proved by the production of such Bearer Securities or
by a certificate executed, as depositary, by any trust company, bank, banker or
other depositary reasonably acceptable to the Company, wherever situated, if
such certificate shall be deemed by the Company and the Trustee to be
satisfactory, showing that at the date therein mentioned such Person had on
deposit with such depositary, or exhibited to it, the Bearer Securities therein
described; or such facts may be proved by the certificate or affidavit of the
Person holding such Bearer Securities, if such certificate or affidavit is
deemed by the Trustee to be satisfactory. The Trustee and the Company may assume
that such ownership of any Bearer Security continues until (i) another
certificate or affidavit bearing a later date issued in respect of the same
Bearer Security is produced, or (ii) such Bearer Security is produced to the
Trustee by some other Person, or (iii) such Bearer Security is surrendered in
exchange for a Registered Security, or (iv) such Bearer Security is no longer
Outstanding. The ownership, principal amount and serial numbers of Bearer
Securities held by the Person so executing such instrument or writing and the
date of the commencement and the date of the termination of holding the same may
also be proved in any other manner which the Company and the Trustee deem
sufficient. 

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

 

 

14

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

 

	 	
      Section
      1.5.
	
      Notices,
      etc. to Trustee and Company.

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

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

(2) the
Company by the Trustee or any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Company addressed to the attention of its
Treasurer, with a copy to the attention of its General Counsel, 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. 

 

	 	
      Section
      1.6.
	
      Notice
      to Holders of Securities; Waiver. 

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

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

(2) such
notice shall be sufficiently given to Holders of Bearer Securities, if any, if
published in an Authorized Newspaper in The City of New York and, if such
Securities are then listed on any stock exchange outside the United States, in
an Authorized Newspaper in such city as the Company shall advise the Trustee
that such stock exchange so requires, on a Business Day at least twice, the
first such publication to be not earlier than the earliest date and the second
such publication not later than the latest date prescribed for the giving of
such notice. 

In any
case where notice to Holders of Registered Securities is given by mail, neither
the failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder of a Registered Security shall affect the sufficiency of such
notice with respect to other Holders of Registered Securities or the sufficiency
of any notice to Holders of Bearer Securities given as provided herein. Any
notice which is mailed in the manner herein provided shall be conclusively
presumed to have been duly given or provided. In the case by reason of the
suspension of regular mail service or by reason of any other cause it shall be
impracticable to give such notice by mail, then such notification as shall be
made with the approval of the Trustee shall constitute a sufficient notification
for every purpose hereunder. 

 

 

15

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

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

 

	 	
      Section
      1.7.
	
      Language
      of Notices.

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

 

	 	
      Section
      1.8.
	
      Conflict
      with Trust Indenture Act. 

If any
provision hereof limits, qualifies or conflicts with any duties under any
required provision of the Trust Indenture Act imposed hereon by Section 318(c)
thereof, such required provision shall control. If any provision of this
Indenture modifies or excludes any provision of the Trust Indenture Act that can
be so modified or excluded, the latter provision shall be deemed to apply to
this Indenture as so modified or excluded, as the case may be. 

 

	 	
      Section
      1.9.
	
      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. 

 

	 	
      Section
      1.10.
	
      Successors
      and Assigns. 

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

 

 

16

 

	 	
      Section
      1.11.
	
      Separability
      Clause. 

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

 

	 	
      Section
      1.12.
	
      Benefits
      of Indenture. 

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

 

	 	
      Section
      1.13.
	
      Governing
      Law. 

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

 

	 	
      Section
      1.14.
	
      Legal
      Holidays. 

Unless
otherwise specified in or pursuant to this Indenture or any Securities, in any
case where any Interest Payment Date, Stated Maturity or Maturity of any
Security, or the last date on which a Holder has the right to convert or
exchange Securities of a series that are convertible or exchangeable, shall be a
Legal Holiday at any Place of Payment, then (notwithstanding any other provision
of this Indenture, any Security or any Coupon other than a provision in any
Security or Coupon that specifically states that such provision shall apply in
lieu hereof) payment need not be made at such Place of Payment on such date, and
such Securities need not be converted or exchanged on such date but such payment
may be made, and such Securities may be converted or exchanged, on the next
succeeding day that is a Business Day at such Place of Payment with the same
force and effect as if made on the Interest Payment Date or at the Stated
Maturity or Maturity or on such last day for conversion or exchange, except
that, if such Business Day is in the next succeeding calendar year, such
payment, conversion or exchange, as the case may be, shall be made on the
immediately preceding day that is a Business Day, in each case with the same
force and effect as if made on the Interest Payment Date or at the Stated
Maturity or Maturity or on such last day for conversion or exchange, provided
that no interest shall accrue on the amount payable on such date or at such time
for the period from and after such Interest Payment Date, Stated Maturity,
Maturity or last day for conversion or exchange, as the case may be, to such
next succeeding Business Day. 

 

	 	
      Section
      1.15.
	
      Counterparts.

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

 

 

17

 

	 	
      Section
      1.16.
	
      Judgment
      Currency.

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

 

Section
1.17. Security
Interest Created in Supplemental Indenture; Release of Security
Interest.

If so
provided in a supplemental indenture for any security, the terms of such
supplemental indenture shall set forth the terms of any security interest under
the Uniform Commercial Code or similar legislation, as now or hereafter enacted
and in effect in any jurisdiction where the Company or its Subsidiaries are
located, or the property of the Company or its Subsidiaries is or may be
located, as applicable, to be granted to the holders of the Securities or to the
Trustee or another representative on their behalf. If a security interest is
created under a supplemental indenture, the supplemental indenture shall also
set forth the terms under which the security interest will be released.

If the
security interest is to be released, the Company shall furnish to the Trustee a
certificate or opinion of an engineer, appraiser, or other expert as to the fair
value of any property or securities to be released from the lien of the
supplemental indenture. The certificate or opinion shall state that in the
opinion of the person making the same, the proposed release will not impair the
security under such indenture in contravention of the provisions thereof, and
requiring further that such certificate or opinion shall be made by an
independent engineer, appraiser, or other expert, if the fair value of such
property or securities and of other property or securities released since the
commencement of the then current calendar year, as set forth in the certificates
or opinions required by Section 314(d)(1) of the Trust Indenture Act, is 10 per
centum or more of the aggregate principal amount of the secured indenture
Securities at the time outstanding. However, such a certificate or opinion of an
independent engineer, appraiser, or other expert shall not be required in the
case of any release of property or securities, if the fair value thereof as set
forth in the certificate or opinion is less than $25,000 or less than one per
centum of the aggregate principal amount of the secured indenture Securities at
the time outstanding. 

 

 

18

 

 

	 	
      Section
      1.18.
	
      Limitation
      on Individual Liability. 

No
recourse under or upon any obligation, covenant or agreement contained in this
Indenture or in any Security, or for any claim based thereon or otherwise in
respect thereof, shall be had against any incorporator, shareholder, officer or
director, as such, past, present or future, of the Company, either directly or
through the Company, whether by virtue of any constitution, statute or rule of
law, or by the enforcement of any assessment or penalty or otherwise; it being
expressly understood that this Indenture and the obligations issued hereunder
are solely corporate obligations, and that no such personal liability whatever
shall attach to, or is or shall be incurred by, the incorporators, shareholders,
officers or directors, as such, of the Company, or any of them, because of the
creation of the indebtedness hereby authorized, or under or by reason of the
obligations, covenants or agreements contained in this Indenture or in any
Security or implied therefrom; and that any and all such personal liability of
every name and nature, either at common law or in equity or by constitution or
statute, of, and any and all such rights and claims against, every such
incorporator, shareholder, officer or director, as such, because of the creation
of the indebtedness hereby authorized, or under or by reason of the obligations,
covenants or agreements contained in this Indenture or in any Security or
implied therefrom, are hereby expressly waived and released as a condition of,
and as a consideration for, the execution of this Indenture and the issuance of
such Security. 

 

	 	
      Section
      1.19.
	
      Submission
      to Jurisdiction. 

The
Company agrees that any judicial proceedings instituted in relation to any
matter arising under this Indenture, the Securities or any Coupons appertaining
thereto may be brought in any United States Federal or New York State court
sitting in the Borough of Manhattan, The City of New York, New York to the
extent that such court has subject matter jurisdiction over the controversy,
and, by execution and delivery of this Indenture, the Company hereby irrevocably
accepts, generally and unconditionally, the jurisdiction of the aforesaid
courts, acknowledges their competence and irrevocably agrees to be bound by any
judgment rendered in such proceeding. The Company also irrevocably and
unconditionally waives for the benefit of the Trustee and the Holders of the
Securities and Coupons any immunity from jurisdiction and any immunity from
legal process (whether through service or notice, attachment prior to judgment,
attachment in the aid of execution, execution or otherwise) in respect of this
Indenture. The Company hereby irrevocably designates and appoints for the
benefit of the Trustee and the Holders of the Securities and Coupons for the
term of this Indenture CT Corporation System, 111 Eighth Avenue, New York, New
York 10011, as its agent to receive on its behalf service of all process (with a
copy of all such service of process to be delivered to Robert L. Pratter, Esq.,
Senior Vice President, General Counsel and Secretary, PMA Capital Corporation,
380 Sentry Parkway, Blue Bell, Pennsylvania 19422) brought against it with
respect to any such proceeding in any such court in The City of New York, such
service being hereby acknowledged by the Company to be effective and binding
service on it in every respect whether or not the Company shall then be doing or
shall have at any time done business in New York. Such appointment shall be
irrevocable so long as any of the Securities or Coupons or the obligations of
the Company hereunder remain outstanding until the appointment of a successor by
the Company and such successor’s acceptance of such appointment. Upon such
acceptance, the Company shall notify the Trustee of the name and address of such
successor. The Company further agrees for the benefit of the Trustee and the
Holders of the Securities and the Coupons to take any and all action, including
the execution and filing of any and all such documents and instruments, as may
be necessary to continue such designation and appointment of CT Corporation
System in full force and effect so long as any of the Securities or Coupons or
the obligations of the Company hereunder shall be outstanding. The Trustee shall
not be obligated and shall have no responsibility with respect to any failure by
the Company to take any such action. Nothing herein shall affect the right to
serve process in any other manner permitted by any law or limit the right of the
Trustee or any Holder to institute proceedings against the Company in the courts
of any other jurisdiction or jurisdictions. 

 

 

19

ARTICLE
2 

SECURITIES
FORMS

 

	 	
      Section
      2.1.
	
      Forms
      Generally.

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

Unless
otherwise provided in or pursuant to this Indenture or any Securities, the
Securities shall be issuable in registered form without Coupons and shall not be
issuable upon the exercise of warrants. 

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

 

	 	
      Section
      2.2.
	
      Form
      of Trustee’s Certificate of
Authentication.

Subject
to Section 6.12, the Trustee’s certificate of authentication shall be in
substantially the following form: 

 

 

20

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

US. BANK
NATIONAL ASSOCIATION, as Trustee 

By:      

Authorized
Signatory

	 	
      Section
      2.3.
	
      Securities
      in Global Form.

Unless
otherwise provided in or pursuant to this Indenture or any Securities, the
Securities shall not be issuable in temporary or permanent global form. If
Securities of a series shall be issuable in global form, any such Security may
provide that it or any number of such Securities shall represent the aggregate
amount of all Outstanding Securities of such series (or such lesser amount as is
permitted by the terms thereof) from time to time endorsed thereon and may also
provide that the aggregate amount of Outstanding Securities represented thereby
may from time to time be increased or reduced to reflect exchanges. Any
endorsement of any Security in global form to reflect the amount, or any
increase or decrease in the amount, or changes in the rights of Holders, of
Outstanding Securities represented thereby shall be made in such manner and by
such Person or Persons as shall be specified therein or in the Company Order to
be delivered pursuant to Section 3.3 or Section 3.4 with respect thereto.
Subject to the provisions of Section 3.3 and, if applicable, Section 3.4, the
Trustee shall deliver and redeliver, in each case at the Company’s expense, any
Security in permanent global form in the manner and upon instructions given by
the Person or Persons specified therein or in the applicable Company Order. If a
Company Order pursuant to Section 3.3 or Section 3.4 has been, or simultaneously
is, delivered, any instructions by the Company with respect to a Security in
global form shall be in writing but need not be accompanied by or contained in
an Officer’s Certificate and need not be accompanied by an Opinion of Counsel.

Notwithstanding
the provisions of Section 3.7, unless otherwise specified in or pursuant to this
Indenture or any Securities, payment of principal of, any premium and interest
on, and any Additional Amounts in respect of, any Security in temporary or
permanent global form shall be made to the Person or Persons specified therein.

Notwithstanding
the provisions of Section 3.8 and except as provided in the preceding paragraph,
the Company, the Trustee and any agent of the Company or the Trustee shall treat
as the Holder of such principal amount of Outstanding Securities represented by
a global Security (i) in the case of a global Security in registered form, the
Holder of such global Security in registered form, or (ii) in the case of a
global Security in bearer form, the Person or Persons specified pursuant to
Section 3.1. 

 

 

21

 

ARTICLE
3 

THE
SECURITIES

 

	 	
      Section
      3.1.
	
      Amount
      Limited; Issuable in Series.

The
aggregate principal amount of Securities which may be authenticated and
delivered under this Indenture is $101,250,000. The Securities may be issued in
one or more series. 

With
respect to any Securities to be authenticated and delivered hereunder, there
shall be established in or pursuant to a Board Resolution and set forth in an
Officer’s Certificate, or established in one or more indentures supplemental
hereto, 

(1) the title
of such Securities and the series in which such Securities shall be included;

(2) any limit
upon the aggregate principal amount of the Securities of such title or the
Securities of such series which may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Securities of such
series pursuant to Section 3.4, Section 3.5, Section 3.6, Section 9.5 or Section
11.7, upon repayment in part of any Registered Security of such series pursuant
to Article 13, upon surrender in part of any Registered Security for conversion
into other securities of the Company or exchange for securities of another
issuer pursuant to its terms, or pursuant to or as contemplated by the terms of
such Securities); 

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

(4) if any of
such Securities are to be issuable in global form, when any of such Securities
are to be issuable in global form and (i) whether such Securities are to be
issued in temporary or permanent global form or both, (ii) whether beneficial
owners of interests in any such global Security may exchange such interests for
Securities of the same series and of like tenor and of any authorized form and
denomination, and the circumstances under which any such exchanges may occur, if
other than in the manner specified in Section 3.5, and (iii) the name of the
Depositary or the U.S. Depositary, as the case may be, with respect to any such
global Security; 

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

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

 

 

22

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

(8) the rate
or rates at which such Securities shall bear interest, if any, or the method or
methods, if any, by which such rate or rates are to be determined, the date or
dates, if any, from which such interest shall accrue or the method or methods,
if any, by which such date or dates are to be determined, the Interest Payment
Dates, if any, on which such interest shall be payable and the Regular Record
Date, if any, for the interest payable on Registered Securities on any Interest
Payment Date, whether and under what circumstances Additional Amounts on such
Securities or any of them shall be payable, the notice, if any, to Holders
regarding the determination of interest on a floating rate Security and the
manner of giving such notice, and the basis upon which interest shall be
calculated if other than that of a 360-day year of twelve 30-day months;

(9) if in
addition to or other than the Borough of Manhattan, The City of New York, the
place or places where the principal of, any premium and interest on or any
Additional Amounts with respect to such Securities shall be payable, any of such
Securities that are Registered Securities may be surrendered for registration of
transfer or exchange, any of such Securities may be surrendered for conversion
or exchange and notices or demands to or upon the Company in respect of such
Securities and this Indenture may be served, the extent to which, or the manner
in which, any interest payment or Additional Amounts on a global Security on an
Interest Payment Date, will be paid and the manner in which any principal of or
premium, if any, on any global Security will be paid; 

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

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

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

(13) whether
the Securities of the series will be convertible into cash or shares of Common
Stock of the Company (or a combination of both) and/or exchangeable for other
securities, whether or not issued by the Company, and, if so, the terms and
conditions upon which such Securities will be so convertible or exchangeable,
and any deletions from or modifications or additions to this Indenture to permit
or to facilitate the issuance of such convertible or exchangeable Securities or
the administration thereof; 

 

 

23

(14) if other
than the principal amount thereof, the portion of the principal amount of any of
such Securities that shall be payable upon declaration of acceleration of the
Maturity thereof pursuant to Section 5.2 or the method by which such portion is
to be determined; 

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

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

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

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

(19) whether
either or both of Section 4.2(2) relating to defeasance or Section 4.2(3)
relating to covenant defeasance shall not be applicable to the Securities of
such series, or any covenants in addition to those specified in Section 4.2(3)
relating to the Securities of such series which shall be subject to covenant
defeasance, and any deletions from, or modifications or additions to, the
provisions of Article 4 in respect of the Securities of such series;

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

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

 

 

24

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

(23) any other
terms of such Securities and any other deletions from or modifications or
additions to this Indenture in respect of such Securities. 

All
Securities of any one series and all Coupons, if any, appertaining to Bearer
Securities of such series shall be substantially identical except as to Currency
of payments due thereunder, denomination and the rate of interest thereon, or
method of determining the rate of interest, if any, Maturity, and the date from
which interest, if any, shall accrue and except as may otherwise be provided by
the Company in or pursuant to the Board Resolution and set forth in the
Officer’s Certificate or in any indenture or indentures supplemental hereto
pertaining to such series of Securities. The terms of the Securities of any
series may provide, without limitation, that the Securities shall be
authenticated and delivered by the Trustee on original issue from time to time
upon written order of persons designated in the Officer’s Certificate or
supplemental indenture and that such persons are authorized to determine,
consistent with such Officer’s Certificate or any applicable supplemental
indenture, such terms and conditions of the Securities of such series as are
specified in such Officer’s Certificate or supplemental indenture. All
Securities of any one series need not be issued at the same time and, unless
otherwise so provided, a series may be reopened for issuances of additional
Securities of such series or to establish additional terms of such series of
Securities. 

If any of
the terms of the Securities of any series shall be established by action taken
by or pursuant to a Board Resolution, the Board Resolution shall be delivered to
the Trustee at or prior to the delivery of the Officer’s Certificate setting
forth the terms of such series. 

 

	 	
      Section
      3.2.
	
      Currency;
      Denominations.

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

 

	 	
      Section
      3.3.
	
      Execution,
      Authentication, Delivery and Dating. 

Securities
shall be executed on behalf of the Company by an Authorized Officer under its
corporate seal reproduced thereon and attested by its Secretary. Coupons shall
be executed on behalf of the Company by the Chief Financial Officer or Chief
Accounting Officer of the Company. The signature of any of these officers on the
Securities or any Coupons appertaining thereto may be manual or facsimile.

Securities
and any Coupons appertaining thereto bearing the manual or facsimile signatures
of individuals who were at any time the proper officers of the Company shall
bind the Company, notwithstanding that such individuals or any of them have
ceased to hold such offices prior to the authentication and delivery of such
Securities and Coupons or did not hold such offices at the date of original
issuance of such Securities or Coupons. 

 

 

25

At any
time and from time to time after the execution and delivery of this Indenture,
the Company may deliver Securities, together with any Coupons appertaining
thereto, executed by the Company, to the Trustee for authentication and,
provided that the Board Resolution and Officer’s Certificate or supplemental
indenture or indentures with respect to such Securities referred to in Section
3.1 and a Company Order for the authentication and delivery of such Securities
have been delivered to the Trustee, the Trustee in accordance with the Company
Order and subject to the provisions hereof and of such Securities shall
authenticate and deliver such Securities. In authenticating such Securities, and
accepting the additional responsibilities under this Indenture in relation to
such Securities and any Coupons appertaining thereto, the Trustee shall be
entitled to receive, and (subject to Section 6.1 hereof) shall be fully
protected in relying upon, 

(1) A copy of
the resolution or resolutions of the Board of Directors in or pursuant to which
the terms and form of the Securities were established, certified by the
Secretary or an Assistant Secretary of the Company to have been duly adopted by
the Board of Directors and to be in full force and effect as of the date of such
certificate, and if the terms and form of such Securities are established by an
Officers’ Certificate pursuant to general authorization of the Board of
Directors, such Officers’ Certificate; 

(2) an
executed supplemental indenture, if any; 

(3) an
Opinion of Counsel to the effect that: 

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

(b) all
conditions precedent to the authentication and delivery of such Securities and
Coupons, if any, appertaining thereto, have been complied with and that such
Securities and Coupons, when completed by appropriate insertions, executed under
the Company’s corporate seal and attested by duly authorized officers of the
Company, delivered by duly authorized officers of the Company to the Trustee for
authentication pursuant to this Indenture, and authenticated and delivered by
the Trustee and issued by the Company in the manner and subject to any
conditions specified in such Opinion of Counsel, will constitute legally valid
and binding obligations of the Company, enforceable against the Company in
accordance with their terms, except as enforcement thereof may be subject to or
limited by bankruptcy, insolvency, reorganization, moratorium, arrangement,
fraudulent conveyance, fraudulent transfer or other similar laws relating to or
affecting creditors’ rights generally, and subject to general principles of
equity (regardless of whether enforcement is sought in a proceeding in equity or
at law) and will entitle the Holders thereof to the benefits of this Indenture;
such Opinion of Counsel need express no opinion as to the availability of
equitable remedies; 

 

 

26

(c) all laws
and requirements in respect of the execution and delivery by the Company of such
Securities and Coupons, if any, have been complied with; and 

(d) this
Indenture has been qualified under the Trust Indenture Act; and 

(4) an
Officer’s Certificate delivered in accordance with Section 1.2 stating that all
conditions precedent to the execution, authentication and delivery of such
Securities and Coupons, if any, appertaining thereto, have been complied with
and that, to the best knowledge of the Persons executing such certificate, no
event which is, or after notice or lapse of time would become, an Event of
Default with respect to any of the Securities shall have occurred and be
continuing. 

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

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

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

No
Security or Coupon appertaining thereto shall be entitled to any benefit under
this Indenture or be valid or obligatory for any purpose, unless there appears
on such Security a certificate of authentication substantially in the form
provided for in Section 2.2 or Section 6.12 executed by or on behalf of the
Trustee or by the Authenticating Agent by the manual signature of one of its
authorized officers. Such certificate upon any Security shall be conclusive
evidence, and the only evidence, that such Security has been duly authenticated
and delivered hereunder. Except as permitted by Section 3.5 or Section 3.6, the
Trustee shall not authenticate and deliver any Bearer Security unless all
Coupons appertaining thereto then matured have been detached and cancelled.

 

	 	
      Section
      3.4.
	
      Temporary
      Securities. 

Pending
the preparation of definitive Securities, the Company may execute and deliver to
the Trustee and, upon Company Order, the Trustee shall authenticate and deliver,
in the manner provided in Section 3.3, temporary Securities in lieu thereof
which are printed, lithographed, typewritten, mimeographed or otherwise
produced, in any authorized denomination, substantially of the tenor of the
definitive Securities in lieu of which they are issued, in registered form or,
if authorized in or pursuant to this Indenture, in bearer form with one or more
Coupons or without Coupons and with such appropriate insertions, omissions,
substitutions and other variations as the officers of the Company executing such
Securities may determine, as conclusively evidenced by their execution of such
Securities. Such temporary Securities may be in global form. 

 

 

27

Except in
the case of temporary Securities in global form, which shall be exchanged in
accordance with the provisions thereof, if temporary Securities are issued, the
Company shall cause definitive Securities to be prepared without unreasonable
delay. After the preparation of definitive Securities of the same series and
containing terms and provisions that are identical to those of any temporary
Securities, such temporary Securities shall be exchangeable for such definitive
Securities upon surrender of such temporary Securities at an Office or Agency
for such Securities, without charge to any Holder thereof. Upon surrender for
cancellation of any one or more temporary Securities (accompanied by any
unmatured Coupons appertaining thereto), the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a like principal
amount of definitive Securities of authorized denominations of the same series
and containing identical terms and provisions; provided, however, that no
definitive Bearer Security, except as provided in or pursuant to this Indenture,
shall be delivered in exchange for a temporary Registered Security; and
provided, further, that a definitive Bearer Security shall be delivered in
exchange for a temporary Bearer Security only in compliance with the conditions
set forth in or pursuant to this Indenture. Unless otherwise provided in or
pursuant to this Indenture with respect to a temporary global Security, until so
exchanged the temporary Securities of any series shall in all respects be
entitled to the same benefits under this Indenture as definitive Securities of
such series. 

 

	 	
      Section
      3.5.
	
      Registration,
      Transfer and Exchange. 

With
respect to the Registered Securities of each series, if any, the Company shall
cause to be kept a register (each such register being herein sometimes referred
to as the “Security Register”) at an Office or Agency for such series in which,
subject to such reasonable regulations as it may prescribe, the Company shall
provide for the registration of the Registered Securities of such series and of
transfers of the Registered Securities of such series. Such Office or Agency
shall be the “Security Registrar” for that series of Securities. Unless
otherwise specified in or pursuant to this Indenture or the Securities, the
Trustee shall be the initial Security Registrar for each series of Securities.
The Company shall have the right to remove and replace from time to time the
Security Registrar for any series of Securities; provided that no such removal
or replacement shall be effective until a successor Security Registrar with
respect to such series of Securities shall have been appointed by the Company
and shall have accepted such appointment by the Company. In the event that the
Trustee shall not be or shall cease to be Security Registrar with respect to a
series of Securities, it shall have the right to examine the Security Register
for such series at all reasonable times. There shall be only one Security
Register for each series of Securities. 

Upon
surrender for registration of transfer of any Registered Security of any series
at any Office or Agency for such series, the Company shall execute, and the
Trustee shall authenticate and deliver, in the name of the designated transferee
or transferees, one or more new Registered Securities of the same series
denominated as authorized in or pursuant to this Indenture, of a like aggregate
principal amount bearing a number not contemporaneously outstanding and
containing identical terms and provisions. 

 

 

28

At the
option of the Holder, Registered Securities of any series may be exchanged for
other Registered Securities of the same series containing identical terms and
provisions, in any authorized denominations, and of a like aggregate principal
amount, upon surrender of the Securities to be exchanged at any Office or Agency
for such series. Whenever any Registered Securities are so surrendered for
exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Registered Securities which the Holder making the exchange is
entitled to receive. 

If
provided in or pursuant to this Indenture, with respect to Securities of any
series, at the option of the Holder, Bearer Securities of such series may be
exchanged for Registered Securities of such series containing identical terms,
denominated as authorized in or pursuant to this Indenture and in the same
aggregate principal amount, upon surrender of the Bearer Securities to be
exchanged at any Office or Agency for such series, with all unmatured Coupons
and all matured Coupons in default thereto appertaining. If the Holder of a
Bearer Security is unable to produce any such unmatured Coupon or Coupons or
matured Coupon or Coupons in default, such exchange may be effected if the
Bearer Securities are accompanied by payment in funds acceptable to the Company
and the Trustee in an amount equal to the face amount of such missing Coupon or
Coupons, or the surrender of such missing Coupon or Coupons may be waived by the
Company and the Trustee if there is furnished to them such security or indemnity
as they may require to save each of them and any Paying Agent harmless. If
thereafter the Holder of such Bearer Security shall surrender to any Paying
Agent any such missing Coupon in respect of which such a payment shall have been
made, such Holder shall be entitled to receive the amount of such payment;
provided, however, that, except as otherwise provided in Section 10.2, interest
represented by Coupons shall be payable only upon presentation and surrender of
those Coupons at an Office or Agency for such series located outside the United
States. 

Notwithstanding
the foregoing, in case a Bearer Security of any series is surrendered at any
such Office or Agency for such series in exchange for a Registered Security of
such series and like tenor after the close of business at such Office or Agency
on (i) any Regular Record Date and before the opening of business at such Office
or Agency on the next succeeding Interest Payment Date, or (ii) any Special
Record Date and before the opening of business at such Office or Agency on the
related date for payment of Defaulted Interest, such Bearer Security shall be
surrendered without the Coupon relating to such Interest Payment Date or
proposed date of payment, as the case may be (or, if such Coupon is so
surrendered with such Bearer Security, such Coupon shall be returned to the
Person so surrendering the Bearer Security), and interest or Defaulted Interest,
as the case may be, shall not be payable on such Interest Payment Date or
proposed date for payment, as the case may be, in respect of the Registered
Security issued in exchange for such Bearer Security, but shall be payable only
to the Holder of such Coupon when due in accordance with the provisions of this
Indenture. 

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

 

 

29

Whenever
any Securities are surrendered for exchange as contemplated by the immediately
preceding four paragraphs, the Company shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange is
entitled to receive. 

Notwithstanding
the foregoing, except as otherwise provided in or pursuant to this Indenture,
any global Security shall be exchangeable for definitive Securities only if (i)
the Depositary is at any time unwilling, unable or ineligible to continue as
Depositary and a successor Depositary is not appointed by the Company within 90
days of the date the Company is so informed in writing, (ii) the Company
executes and delivers to the Trustee a Company Order to the effect that such
global Security shall be so exchangeable, or (iii) an Event of Default has
occurred and is continuing with respect to the Securities of such series. If the
beneficial owners of interests in a global Security are entitled to exchange
such interests for definitive Securities as the result of an event described in
clause (i), (ii) or (iii) of the preceding sentence, then without unnecessary
delay but in any event not later than the earliest date on which such interests
may be so exchanged, the Company shall deliver to the Trustee definitive
Securities of such series in such form and denominations as are required by or
pursuant to this Indenture, and of the same series, containing identical terms
and in aggregate principal amount equal to the principal amount of such global
Security, executed by the Company. On or after the earliest date on which such
interests may be so exchanged, such global Security shall be surrendered from
time to time by the U.S. Depositary or such other Depositary as shall be
specified in the Company Order with respect thereto, and in accordance with
instructions given to the Trustee and the U.S. Depositary or such other
Depositary, as the case may be (which instructions shall be in writing), as
shall be specified in the Company Order with respect thereto to the Trustee, as
the Company’s agent for such purpose, to be exchanged, in whole or in part, for
definitive Securities as described above without charge. The Trustee shall
authenticate and make available for delivery, in exchange for each portion of
such surrendered global Security, a like aggregate principal amount of
definitive Securities of the same series of authorized denominations and of like
tenor as the portion of such global Security to be exchanged, which (unless such
Securities are not issuable both as Bearer Securities and as Registered
Securities, in which case the definitive Securities exchanged for the global
Security shall be issuable only in the form in which the Securities are
issuable, as provided in or pursuant to this Indenture) shall be in the form of
Bearer Securities or Registered Securities, or any combination thereof, as shall
be specified by the beneficial owner thereof, but subject to the satisfaction of
any certification or other requirements to the issuance of Bearer Securities;
provided, however, that no such exchanges may occur during a period beginning at
the opening of business 15 days before any selection of Securities of the same
series to be redeemed and ending on the relevant Redemption Date; and provided,
further, that (unless otherwise provided in or pursuant to this Indenture) no
Bearer Security delivered in exchange for a portion of a global Security shall
be mailed or otherwise delivered to any location in the United States. Promptly
following any such exchange in part, such global Security shall be returned by
the Trustee to such Depositary or the U.S. Depositary, as the case may be, or
such other Depositary or U.S. Depositary referred to above in accordance with
the instructions of the Company referred to above. If a Registered Security is
issued in exchange for any portion of a global Security after the close of
business at the Office or Agency for such Security where such exchange occurs on
or after (i) any Regular Record Date for such Security and before the opening of
business at such Office or Agency on the next succeeding Interest Payment Date,
or (ii) any Special Record Date for such Security and before the opening of
business at such Office or Agency on the related proposed date for payment of
interest or Defaulted Interest, as the case may be, interest shall not be
payable on such Interest Payment Date or proposed date for payment, as the case
may be, in respect of such Registered Security, but shall be payable on such
Interest Payment Date or proposed date for payment, as the case may be, only to
the Person to whom interest in respect of such portion of such global Security
shall be payable in accordance with the provisions of this Indenture.

 

 

30

All
Securities issued upon any registration of transfer or exchange of Securities
shall be the valid obligations of the Company evidencing the same debt and
entitling the Holders thereof to the same benefits under this Indenture as the
Securities surrendered upon such registration of transfer or exchange. Every
Registered Security presented or surrendered for registration of transfer or for
exchange or redemption shall (if so required by the Company or the Security
Registrar for such Security) be duly endorsed, or be accompanied by a written
instrument of transfer in form reasonably satisfactory to the Company and the
Security Registrar for such Security duly executed by the Holder thereof or his
attorney duly authorized in writing. 

No
service charge shall be made for any registration of transfer or exchange, or
redemption of Securities, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge and any other expenses
(including fees and expenses of the Trustee) that may be imposed in connection
with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Section 3.4, Section 9.5 or Section 11.7 not involving any
transfer. 

Except as
otherwise provided in or pursuant to this Indenture, the Company shall not be
required (i) to issue, register the transfer of or exchange any Securities
during a period beginning at the opening of business 15 days before the day of
mailing of a notice of redemption of Securities of like tenor and the same
series under Section 11.3 and ending at the close of business on the day of such
mailing, or (ii) to register the transfer of or exchange any Registered Security
selected for redemption in whole or in part, except in the case of any Security
to be redeemed in part, the portion thereof not to be redeemed, or (iii) to
exchange any Bearer Security selected for redemption except, to the extent
provided with respect to such Bearer Security, that such Bearer Security may be
exchanged for a Registered Security of like tenor and the same series, provided
that such Registered Security shall be immediately surrendered for redemption
with written instruction for payment consistent with the provisions of this
Indenture or (iv) to issue, register the transfer of or exchange any Security
which, in accordance with its terms, has been surrendered for repayment at the
option of the Holder, except the portion, if any, of such Security not to be so
repaid. 

 

	 	
      Section
      3.6.
	
      Mutilated,
      Destroyed, Lost and Stolen Securities. 

If any
mutilated Security or a Security with a mutilated Coupon appertaining to it is
surrendered to the Trustee, subject to the provisions of this Section 3.6, the
Company shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Security of the same series containing identical terms and of
like principal amount and bearing a number not contemporaneously outstanding,
with Coupons appertaining thereto corresponding to the Coupons, if any,
appertaining to the surrendered Security. 

 

 

31

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

Notwithstanding
the foregoing provisions of this Section 3.6, in case any mutilated, destroyed,
lost or stolen Security or Coupon has become or is about to become due and
payable, the Company in its discretion may, instead of issuing a new Security,
pay such Security or Coupon; provided, however, that payment of principal of,
any premium or interest on or any Additional Amounts with respect to any Bearer
Securities shall, except as otherwise provided in Section 10.2, be payable only
at an Office or Agency for such Securities located outside the United States
and, unless otherwise provided in or pursuant to this Indenture, any interest on
Bearer Securities and any Additional Amounts with respect to such interest shall
be payable only upon presentation and surrender of the Coupons appertaining
thereto. 

Upon the
issuance of any new Security under this Section 3.6, 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
reasonable fees and expenses of the Trustee) connected therewith. 

Every new
Security, with any Coupons appertaining thereto issued pursuant to this Section
3.6 in lieu of any destroyed, lost or stolen Security, or in exchange for a
Security to which a destroyed, lost or stolen Coupon appertains shall constitute
a separate obligation of the Company, whether or not the destroyed, lost or
stolen Security and Coupons appertaining thereto or the destroyed, lost or
stolen Coupon shall be at any time enforceable by anyone, and shall be entitled
to all the benefits of this Indenture equally and proportionately with any and
all other Securities of such series and any Coupons, if any, duly issued
hereunder. 

The
provisions of this Section 3.6, as amended or supplemented pursuant to this
Indenture with respect to particular Securities or generally, shall be exclusive
and shall preclude (to the extent lawful) all other rights and remedies with
respect to the replacement or payment of mutilated, destroyed, lost or stolen
Securities or Coupons. 

 

	 	
      Section
      3.7.
	
      Payment
      of Interest and Certain Additional Amounts; Rights to Interest and Certain
      Additional Amounts Preserved. 

Unless
otherwise provided in or pursuant to this Indenture, any interest on and any
Additional Amounts with respect to any Registered Security which shall be
payable, and are punctually paid or duly provided for, on any Interest Payment
Date shall be paid to the Person in whose name such Security (or one or more
Predecessor Securities) is registered as of the close of business on the Regular
Record Date for such interest. 

 

 

32

Unless
otherwise provided in or pursuant to this Indenture, any interest on and any
Additional Amounts with respect to any Registered Security which shall be
payable, but shall not be punctually paid or duly provided for, on any Interest
Payment Date for such Registered Security (herein called “Defaulted Interest”)
shall forthwith cease to be payable to the Holder thereof on the relevant
Regular Record Date by virtue of having been such Holder; and such Defaulted
Interest may be paid by the Company, at its election in each case, as provided
in Clause (1) or (2) below: 

(1) The
Company may elect to make payment of any Defaulted Interest to the Person in
whose name such Registered Security (or a Predecessor Security thereof) shall be
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest, which shall be fixed by the Company in the following
manner. The Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on such Registered Security, the Special
Record Date therefor and the date of the proposed payment, and at the same time
the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit on or prior
to the date of the proposed payment, such money when so deposited to be held in
trust for the benefit of the Person entitled to such Defaulted Interest as in
this Clause provided. The Special Record Date for the payment of such Defaulted
Interest 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 12 days after notification to the
Trustee of the proposed payment. The Trustee shall, in the name and at the
expense of the Company, cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor to be mailed, first-class postage
prepaid, to the Holder of such Registered Security (or a Predecessor Security
thereof) at his address as it appears in the Security Register not less than 10
days prior to such Special Record Date. The Trustee may, in its discretion, in
the name and at the expense of the Company cause a similar notice to be
published at least once in an Authorized Newspaper of general circulation in the
Borough of Manhattan, The City of New York, but such publication shall not be a
condition precedent to the establishment of such Special Record Date. Notice of
the proposed payment of such Defaulted Interest and the Special Record Date
therefor having been mailed as aforesaid, such Defaulted Interest shall be paid
to the Person in whose name such Registered Security (or a Predecessor Security
thereof) shall be registered at the close of business on such Special Record
Date and shall no longer be payable pursuant to the following clause (2).

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

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

 

 

33

Subject
to the foregoing provisions of this Section and Section 3.5, 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.

In the
case of any Registered Security of any series that is convertible into shares of
other securities of the Company or exchangeable for securities of another
issuer, which Registered Security is converted or exchanged after any Regular
Record Date and on or prior to the next succeeding Interest Payment Date (other
than any Registered Security with respect to which the Stated Maturity is prior
to such Interest Payment Date), interest with respect to which the Stated
Maturity is on such Interest Payment Date shall be payable on such Interest
Payment Date notwithstanding such conversion or exchange, and such interest
(whether or not punctually paid or duly provided for) shall be paid to the
Person in whose name that Registered Security (or one or more predecessor
Registered Securities) is registered at the close of business on such Regular
Record Date. Except as otherwise expressly provided in the immediately preceding
sentence, in the case of any Registered Security which is converted or
exchanged, interest with respect to which the Stated Maturity is after the date
of conversion or exchange of such Registered Security shall not be payable.

 

	 	
      Section
      3.8.
	
      Persons
      Deemed Owners. 

Prior to
due presentment of a Registered Security for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name such Registered Security is registered in the Security
Register as the owner of such Registered Security for the purpose of receiving
payment of principal of, any premium and (subject to Section 3.5 and Section
3.7) interest on and any Additional Amounts with respect to such Registered
Security and for all other purposes whatsoever, whether or not any payment with
respect to such Registered Security shall be overdue, and none of the Company,
the Trustee or any agent of the Company or the Trustee shall be affected by
notice to the contrary. 

The
Company, the Trustee and any agent of the Company or the Trustee may treat the
bearer of any Bearer Security or the bearer of any Coupon as the absolute owner
of such Security or Coupon for the purpose of receiving payment thereof or on
account thereof and for all other purposes whatsoever, whether or not any
payment with respect to such Security or Coupon shall be overdue, and none of
the Company, the Trustee or any agent of the Company or the Trustee shall be
affected by notice to the contrary. 

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

 

 

34

 

	 	
      Section
      3.9.
	
      Cancellation. 

All
Securities and Coupons surrendered for payment, redemption, registration of
transfer, exchange or conversion or for credit against any sinking fund payment
shall, if surrendered to any Person other than the Trustee, be delivered to the
Trustee, and any such Securities and Coupons, as well as Securities and Coupons
surrendered directly to the Trustee for any such purpose, shall be cancelled
promptly by the Trustee. The Company may at any time deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder
which the Company may have acquired in any manner whatsoever, and all Securities
so delivered shall be cancelled promptly by the Trustee. No Securities shall be
authenticated in lieu of or in exchange for any Securities cancelled as provided
in this Section, except as expressly permitted by or pursuant to this Indenture.
All cancelled Securities and Coupons held by the Trustee shall be disposed of by
the Trustee in accordance with its normal operating procedures, unless by a
Company Order the Company directs their return to it. 

 

	 	
      Section
      3.10.
	
      Computation
      of Interest. 

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

 

	 	
      Section
      3.11.
	
      CUSIP
      and ISIN Numbers. 

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

ARTICLE
4 

SATISFACTION
AND DISCHARGE OF INDENTURE

 

	 	
      Section
      4.1.
	
      Satisfaction
      and Discharge. 

Upon the
direction of the Company by a Company Order, this Indenture shall cease to be of
further effect with respect to any series of Securities specified in such
Company Order and any Coupons appertaining thereto, and the Trustee, on receipt
of a Company Order, at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture as to
such series, when 

 

 

35

(1) either

(a) all
Securities of such series theretofore authenticated and delivered and all
Coupons appertaining thereto (other than (i) Coupons appertaining to Bearer
Securities of such series surrendered in exchange for Registered Securities of
such series and maturing after such exchange whose surrender is not required or
has been waived as provided in Section 3.5, (ii) Securities and Coupons of such
series which have been destroyed, lost or stolen and which have been replaced or
paid as provided in Section 3.6, (iii) Coupons appertaining to Securities of
such series called for redemption and maturing after the relevant Redemption
Date whose surrender has been waived as provided in Section 11.6, and (iv)
Securities and Coupons of such series for whose payment money has theretofore
been deposited in trust or segregated and held in trust by the Company and
thereafter repaid to the Company or discharged from such trust, as provided in
Section 10.3) have been delivered to the Trustee for cancellation; or

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

	 	
      (i)
	
      have
      become due and payable, or 

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

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

and the
Company, in the case of (i), (ii) or (iii) above, has deposited or caused to be
deposited with the Trustee as trust funds in trust for such purpose, money in
the Currency in which such 

Securities
are payable in an amount sufficient to pay and discharge the entire indebtedness
on such Securities and any Coupons appertaining thereto not theretofore
delivered to the Trustee for cancellation, including the principal of, any
premium and interest on, and any Additional Amounts with respect to such
Securities and any Coupons appertaining thereto, to the date of such deposit (in
the case of Securities which have become due and payable) or to the Maturity
thereof, as the case may be; 

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

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

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

 

 

36

Notwithstanding
the satisfaction and discharge of this Indenture with respect to any series of
Securities, the obligations of the Company to the Trustee under Section 6.7 and,
if money shall have been deposited with the Trustee pursuant to subclause (b) of
clause (1) of this Section, the obligations of the Company and the Trustee with
respect to the Securities of such series under Section 3.5, Section 3.6, Section
4.3, Section 10.2 and Section 10.3, with respect to the payment of Additional
Amounts, if any, with respect to such Securities as contemplated by Section 10.4
(but only to the extent that the Additional Amounts payable with respect to such
Securities exceed the amount deposited in respect of such Additional Amounts
pursuant to Section 4.1(1)(b)), and with respect to any rights to convert or
exchange such Securities into other securities of the Company or securities of
another issuer shall survive. 

 

	 	
      Section
      4.2.
	
      Defeasance
      and Covenant Defeasance. 

(1) Unless,
pursuant to Section 3.1, either or both of (i) defeasance of the Securities of
or within a series under clause (2) of this Section 4.2 shall not be applicable
with respect to the Securities of such series or (ii) covenant defeasance of the
Securities of or within a series under clause (3) of this Section 4.2 shall not
be applicable with respect to the Securities of such series, then such
provisions, together with the other provisions of this Section 4.2 (with such
modifications thereto as may be specified pursuant to Section 3.1 with respect
to any Securities), shall be applicable to such Securities and any Coupons
appertaining thereto, and the Company may at its option by Board Resolution, at
any time, with respect to such Securities and any Coupons appertaining thereto,
elect to have Section 4.2(2) or Section 4.2(3) be applied to such Outstanding
Securities and any Coupons appertaining thereto upon compliance with the
conditions set forth below in this Section 4.2. 

(2) Upon the
Company’s exercise of the above option applicable to this Section 4.2(2) with
respect to any Securities of or within a series, the Company shall be deemed to
have been discharged from its obligations with respect to such Outstanding
Securities and any Coupons appertaining thereto on the date the conditions set
forth in clause (4) of this Section 4.2 are satisfied (hereinafter,
“defeasance”). For this purpose, such defeasance means that the Company shall be
deemed to have paid and discharged the entire Indebtedness represented by such
Outstanding Securities and any Coupons appertaining thereto, which shall
thereafter be deemed to be “Outstanding” only for the purposes of clause (5) of
this Section 4.2 and the other Sections of this Indenture referred to in clauses
(i) and (ii) below, and to have satisfied all of its other obligations under
such Securities and any Coupons appertaining thereto and this Indenture insofar
as such Securities and any Coupons appertaining thereto are concerned (and the
Trustee, at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following which shall survive until
otherwise terminated or discharged hereunder: (i) the rights of Holders of such
Outstanding Securities and any Coupons appertaining thereto to receive, solely
from the trust fund described in clause (4) of this Section 4.2 and as more
fully set forth in such clause, payments in respect of the principal of (and
premium, if any) and interest, if any, on, and Additional Amounts, if any, with
respect to, such Securities and any Coupons appertaining thereto when such
payments are due, and any rights of such Holder to convert such Securities into
other securities of the Company or exchange such Securities for securities of
another issuer, (ii) the obligations of the Company and the Trustee with respect
to such Securities under Section 3.5, Section 3.6, Section 3.7, Section 3.8,
Section 10.2 and Section 10.3 and with respect to the payment of Additional
Amounts, if any, on such Securities as contemplated by Section 10.4 (but only to
the extent that the Additional Amounts payable with respect to such Securities
exceed the amount deposited in respect of such Additional Amounts pursuant to
Section 4.2(4)(a) below), and with respect to any rights to convert such
Securities into other securities of the Company or exchange such Securities for
securities of another issuer, (iii) the rights, powers, trusts, duties and
immunities of the Trustee under this Indenture and (iv) this Section 4.2. The
Company may exercise its option under this Section 4.2(2) notwithstanding the
prior exercise of its option under clause (3) of this Section 4.2 with respect
to such Securities and any Coupons appertaining thereto. 

 

 

37

(3) Upon the
Company’s exercise of the option to have this Section 4.2(3) apply with respect
to any Securities of or within a series, (i) the Company, to the extent
specified pursuant to Section 3.1(19), shall be released from its obligations
under Article 8, Section 10.7(2), any covenants provided pursuant to Sections
3.1(19) (relating to covenants of the Company), 9.1(2) or 9.1(4) for the benefit
of the Holders of such Securities and (ii) the occurrence of any event specified
in Sections 5.1(4) (with respect to any of Article 8, Section 10.7(2) and any
such covenants provided pursuant to Section 3.1(18) (relating to covenants of
the Company), 9.1(2) or 9.1(4)) and 5.1(9) shall be deemed not to be or result
in an Event of Default, with respect to such Outstanding Securities and any
Coupons appertaining thereto on and after the date the conditions set forth in
clause (4) of this Section 4.2 are satisfied (hereinafter, “covenant
defeasance”), and such Securities and any Coupons appertaining thereto shall
thereafter be deemed to be not “Outstanding” for the purposes of any direction,
waiver, consent or declaration or Act of Holders (and the consequences of any
thereof) in connection with any such specified covenant or obligation, but shall
continue to be deemed “Outstanding” for all other purposes hereunder. For this
purpose, such covenant defeasance means that, with respect to such Outstanding
Securities and any Coupons appertaining thereto, the Company may omit to comply
with, and shall have no liability in respect of, any term, condition or
limitation set forth in any such specified Sections, whether directly or
indirectly, by reason of any reference elsewhere herein to any such specified
Sections or by reason of reference in any such specified Sections to any other
provision herein or in any other document and such omission to comply shall not
constitute a default or an Event of Default under Section 5.1 (4) but, except as
specified above, the remainder of this Indenture and such Securities and Coupons
appertaining thereto shall be unaffected thereby. 

(4) The
following shall be the conditions to application of clause (2) or (3) of this
Section 4.2 to any Outstanding Securities of or within a series and any Coupons
appertaining thereto: 

(a) The
Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee satisfying the requirements of Section 6.8 who shall
agree to comply with the provisions of this Section 4.2 applicable to it) as
trust funds in trust for the purpose of making the following payments,
specifically pledged as security for, and dedicated solely to, the benefit of
the Holders of such Securities and any Coupons appertaining thereto, (1) an
amount in Dollars or in such Foreign Currency in which such Securities and any
Coupons appertaining thereto are then specified as payable at Stated Maturity,
or (2) Government Obligations applicable to such Securities and Coupons
appertaining thereto (determined on the basis of the Currency in which such
Securities and Coupons appertaining thereto are then specified as payable at
Stated Maturity) which through the scheduled payment of principal and interest
in respect thereof in accordance with their terms will provide, not later than
one day before the due date of any payment of principal of (and premium, if any)
and interest, if any, on such Securities and any Coupons appertaining thereto,
money in an amount, or (3) a combination thereof, in any case, in an amount,
sufficient, without consideration of any reinvestment of such principal and
interest, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the
Trustee, to pay and discharge, and which shall be applied by the Trustee (or
other qualifying trustee) to pay and discharge, (y) the principal of (and
premium, if any) and interest, if any, on such Outstanding Securities and any
Coupons appertaining thereto at the Stated Maturity of such principal or
installment of principal or premium or interest and (z) any mandatory sinking
fund payments or analogous payments applicable to such Outstanding Securities
and any Coupons appertaining thereto on the days on which such payments are due
and payable in accordance with the terms of this Indenture and of such
Securities and any Coupons appertaining thereto. 

 

 

38

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

(c) No Event
of Default or event which with notice or lapse of time or both would become an
Event of Default with respect to such Securities and any Coupons appertaining
thereto shall have occurred and be continuing on the date of such deposit and,
with respect to defeasance only, at any time during the period ending on the
123rd day after the date of such deposit (it being understood that this
condition shall not be deemed satisfied until the expiration of such period).

(d) In the
case of an election under clause (2) of this Section 4.2 with respect to
Registered Securities and any Bearer Securities for which the Place of Payment
is within the United States, the Company shall have delivered to the Trustee an
Opinion of Counsel stating that (i) the Company has received from the Internal
Revenue Service a letter ruling, or there has been published by the Internal
Revenue Service a Revenue Ruling, or (ii) since the date of execution of this
Indenture, there has been a change in the applicable Federal income tax law, in
either case to the effect that, and based thereon such opinion shall confirm
that, the Holders of such Outstanding Securities and any Coupons appertaining
thereto will not recognize income, gain or loss for Federal income tax purposes
as a result of such defeasance and will be subject to Federal income tax on the
same amounts, in the same manner and at the same times as would have been the
case if such defeasance had not occurred. 

(e) In the
case of an election under clause (3) of this Section 4.2 with respect to
Registered Securities and any Bearer Securities for which the Place of Payment
is within the United States, the Company shall have delivered to the Trustee an
Opinion of Counsel to the effect that the Holders of such Outstanding Securities
and any Coupons appertaining thereto will not recognize income, gain or loss for
Federal income tax purposes as a result of such covenant defeasance and will be
subject to Federal income tax on the same amounts, in the same manner and at the
same times as would have been the case if such covenant defeasance had not
occurred. 

 

 

39

(f) The
Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that, after the 123rd day after the date of deposit, all money and Government
Obligations (or other property as may be provided pursuant to Section 3.1)
(including the proceeds thereof) deposited or caused to be deposited with the
Trustee (or other qualifying trustee) pursuant to this clause (4) to be held in
trust will not be subject to any case or proceeding (whether voluntary or
involuntary) in respect of the Company under any Federal or State bankruptcy,
insolvency, reorganization or other similar law, or any decree or order for
relief in respect of the Company issued in connection therewith (it being
understood that this condition shall not be deemed satisfied until the
expiration of such period). 

(g) The
Company shall have delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each stating that all conditions precedent to the defeasance
or covenant defeasance under clause (2) or (3) of this Section 4.2 (as the case
may be) have been complied with. 

(h) Notwithstanding
any other provisions of this Section 4.2(4), such defeasance or covenant
defeasance shall be effected in compliance with any additional or substitute
terms, conditions or limitations which may be imposed on the Company in
connection therewith pursuant to Section 3.1. 

(i) Such
defeasance or covenant defeasance shall not cause the Trustee to have a
conflicting interest within the meaning of the Trust Indenture Act.

(j) The
Company shall have delivered to the Trustee an Opinion of Counsel stating that
such defeasance or covenant defeasance shall not result in the trust arising
from such deposit constituting an investment company within the meaning of the
Investment Company Act of 1940, as amended, unless such trust shall be
registered under such Act. 

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

(l) In the
event of any defeasance pursuant to this Section, any security interest securing
the Securities shall be released, and the Trustee shall execute all additional
documents, instruments and filings and make all filings necessary or advisable
to effect the release. 

(5) Unless
otherwise specified in or pursuant to this Indenture or any Security, if, after
a deposit referred to in Section 4.2(4)(a) has been made, (a) the Holder of a
Security in respect of which such deposit was made is entitled to, and does,
elect pursuant to Section 3.1 or the terms of such Security to receive payment
in a Currency other than that in which the deposit pursuant to Section 4.2(4)(a)
has been made in respect of such Security, or (b) a Conversion Event occurs in
respect of the Foreign Currency in which the deposit pursuant to Section
4.2(4)(a) has been made, the indebtedness represented by such Security and any
Coupons appertaining thereto shall be deemed to have been, and will be, fully
discharged and satisfied through the payment of the principal of (and premium,
if any), and interest, if any, on, and Additional Amounts, if any, with respect
to, such Security as the same becomes due out of the proceeds yielded by
converting (from time to time as specified below in the case of any such
election) the amount or other property deposited in respect of such Security
into the Currency in which such Security becomes payable as a result of such
election or Conversion Event based on (x) in the case of payments made pursuant
to clause (a) above, the applicable market exchange rate for such Currency in
effect on the second Business Day prior to each payment date, or (y) with
respect to a Conversion Event, the applicable market exchange rate for such
Foreign Currency in effect (as nearly as feasible) at the time of the Conversion
Event. 

 

 

40

The
Company shall pay and indemnify the Trustee (or other qualifying trustee,
collectively for purposes of this Section 4.2(5) and Section 4.3, the “Trustee”)
against any tax, fee or other charge, imposed on or assessed against the
Government Obligations deposited pursuant to this Section 4.2 or the principal,
premium (if any), or interest or Additional Amounts, if any, received in respect
thereof other than any such tax, fee or other charge which by law is for the
account of the Holders of such Outstanding Securities and any Coupons
appertaining thereto. 

Anything
in this Section 4.2 to the contrary notwithstanding, the Trustee shall deliver
or pay to the Company from time to time upon Company Request any money or
Government Obligations (or other property and any proceeds therefrom) held by it
as provided in clause (4) of this Section 4.2 which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, are in excess of the
amount thereof which would then be required to be deposited to effect a
defeasance or covenant defeasance, as applicable, in accordance with this
Section 4.2. 

 

	 	
      Section
      4.3.
	
      Application
      of Trust Money. 

Subject
to the provisions of the last paragraph of Section 10.3, all money and
Government Obligations (or other property as may be provided pursuant to Section
3.1) (including the proceeds thereof) deposited with the Trustee pursuant to
Section 4.1 or Section 4.2 in respect of any Outstanding Securities of any
series and any Coupons appertaining thereto shall be held in trust and applied
by the Trustee, in accordance with the provisions of such Securities and any
Coupons appertaining thereto and this Indenture, to the payment, either directly
or through any Paying Agent (including the Company acting as its own Paying
Agent) as the Trustee may determine, to the Holders of such Securities and any
Coupons appertaining thereto of all sums due and to become due thereon in
respect of principal (and premium, if any) and interest and Additional Amounts,
if any; but such money and Government Obligations need not be segregated from
other funds except to the extent required by law. 

ARTICLE
5 

REMEDIES 

 

	 	
      Section
      5.1.
	
      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 following the
expiration of any applicable grace and cure period), unless such event is
specifically deleted or modified in or pursuant to the supplemental indenture,
Board Resolution or Officer’s Certificate establishing the terms of such Series
pursuant to this Indenture: 

 

 

41

(1) default
in the payment of any interest on any Security of such series, or any Additional
Amounts payable with respect thereto, when such interest becomes or such
Additional Amounts become 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 such
series, or any Additional Amounts payable with respect thereto, when such
principal or premium becomes or such Additional Amounts become due and payable
at their Maturity; or 

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

(4) default
in the performance, or breach, of any covenant or warranty of the Company in
this Indenture or the Securities (other than a covenant or warranty a default in
the performance or the breach of which is elsewhere in this Section specifically
dealt with or which has been expressly included in this Indenture solely for the
benefit of a series of Securities other than such 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 such series, a written notice specifying such default
or breach and requiring it to be remedied and stating that such notice is a
“Notice of Default” hereunder; or 

(5) default
under any mortgage, indenture or instrument under which there may be issued or
by which there may be secured or evidenced any Indebtedness for money borrowed
by the Company or any of its Subsidiaries (or the payment of which is guaranteed
by the Company or any of its Subsidiaries) whether such Indebtedness or
guarantee now exists, or is created after the date of this Indenture, if that
default: 

(a) is caused
by a failure to pay principal on such Indebtedness when due prior to expiration
of any grace or cure period provided in such mortgage, indenture or instrument
(a “Payment
Default”); or

(b) results
in the acceleration of such Indebtedness prior to its express maturity, and, in
each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a
payment default or the maturity of which has been so accelerated, aggregates to
$25,000,000 or more; or 

(6) the
Company or any Subsidiary of the Company shall fail within 60 days to pay, bond
or otherwise discharge any uninsured judgment or court order for the payment of
money in excess of $25,000,000, which is not stayed on appeal or is not
otherwise being appropriately contested in good faith; or 

(7) the entry
by a court having competent jurisdiction of: 

 

 

42

(a) a decree
or order for relief in respect of the Company or any Significant Subsidiary in
an involuntary proceeding under any applicable bankruptcy, insolvency,
reorganization (other than a reorganization under a foreign law that does not
relate to insolvency), rehabilitation or other similar law and such decree or
order shall remain unstayed and in effect for a period of 60 consecutive days;
or 

(b) a decree
or order adjudging the Company or any Significant Subsidiary to be insolvent, or
approving a petition seeking reorganization (other than a reorganization under a
foreign law that does not relate to insolvency), rehabilitation, arrangement,
adjustment or composition of the Company and such decree or order shall remain
unstayed and in effect for a period of 60 consecutive days; or 

(c) a final
and non-appealable order appointing a custodian, receiver, liquidator, assignee,
rehabilitator, trustee or other similar official of the Company or any
Significant Subsidiary or of any substantial part of the property of the Company
or any Significant Subsidiary or ordering the winding up or liquidation of the
affairs of the Company or any Significant Subsidiary; or 

(8) the
commencement by the Company or any Significant Subsidiary of a voluntary
proceeding under any applicable bankruptcy, insolvency, reorganization (other
than a reorganization under a foreign law that does not relate to insolvency),
rehabilitation or other similar law or of a voluntary proceeding seeking to be
adjudicated insolvent or the consent by the Company or any Significant
Subsidiary to the entry of a decree or order for relief in an involuntary
proceeding under any applicable bankruptcy, insolvency, reorganization,
rehabilitation or other similar law or to the commencement of any insolvency
proceedings against it or any Significant Subsidiary, or the filing by the
Company or any Significant Subsidiary of a petition or answer or consent seeking
reorganization, arrangement, adjustment, rehabilitation or composition of the
Company or any Significant Subsidiary or relief under any applicable law, or the
consent by the Company or any Significant Subsidiary to the filing of such
petition or to the appointment of or taking possession by a custodian, receiver,
liquidator, assignee, trustee, rehabilitator or similar official of the Company
or any Significant Subsidiary or any substantial part of the property of the
Company or any Significant Subsidiary or the making by the Company or any
Significant Subsidiary of an assignment for the benefit of creditors, or the
taking of corporate action by the Company or any Significant Subsidiary in
furtherance of any such action; or 

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

 

	 	
      Section
      5.2.
	
      Acceleration
      of Maturity; Rescission and Annulment. 

If an
Event of Default with respect to Securities of any series at the time
Outstanding (other than an Event of Default specified in clause (7) or (8) of
Section 5.1) occurs and is continuing, then the Trustee or the Holders of not
less than 25% in principal amount of the Outstanding Securities of such series
may declare the principal (or, if the Securities of such series are Original
Issue Discount Securities, such portion of the principal amount as may be
specified in the terms of such series) of all the Securities of such series, to
be due and payable immediately, by a notice in writing to the Company (and to
the Trustee if given by the Holders), and upon any such declaration such
principal or such lesser amount shall become immediately due and payable.

 

 

43

If an
Event of Default specified in clause (7) or (8) of Section 5.1 occurs, all
unpaid principal of and accrued interest on the Outstanding Securities of that
series (or, if the Securities of such series are Original Issue Discount
Securities, such portion of the principal amount as may be specified in the
terms of such series) shall ipso facto become and be immediately due and payable
without any declaration or other act on the part of the Trustee or any Holder of
any Security of that series. 

At any
time after a declaration of acceleration with respect to the Securities of any
series (or of all the Securities, as the case may be) 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 not less than a majority
in principal amount of the Outstanding Securities of such series, by written
notice to the Company and the Trustee, may rescind and annul such declaration
and its consequences if 

(1) the
Company has paid or deposited with the Trustee a sum of money sufficient to pay

(a) all
overdue installments of any interest on and Additional Amounts with respect to
all Securities of such series (or of all the Securities, as the case may be) and
any Coupon appertaining thereto, 

(b) the
principal of and any premium on any Securities of such series (or of all the
Securities, as the case may be) which have become due otherwise than by such
declaration of acceleration and interest thereon and any Additional Amounts with
respect thereto at the rate or rates borne by or provided for in such
Securities, 

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

(d) all sums
paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel and
all other amounts due the Trustee under Section 6.7; and 

(2) all
Events of Default with respect to Securities of such series, other than the
non-payment of the principal of, any premium and interest on, and any Additional
Amounts with respect to Securities of such series which shall have become due
solely by such declaration of acceleration, shall have been cured or waived as
provided in Section 5.13. 

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

 

 

44

 

	 	
      Section
      5.3.
	
      Collection
      of Indebtedness and Suits for Enforcement by Trustee. 

The
Company covenants that if 

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

(2) default
is made in the payment of the principal of or any premium on any Security or any
Additional Amounts with respect thereto at their Maturity, or 

(3) default
is made in the deposit of any sinking fund payment when and as due by the terms
of a Security, 

the
Company shall, upon demand of the Trustee, pay to the Trustee, for the benefit
of the Holders of such Securities and any Coupons appertaining thereto, the
whole amount of money then due and payable with respect to such Securities and
any Coupons appertaining thereto, with interest upon the overdue principal, any
premium and, to the extent that payment of such interest shall be legally
enforceable, upon any overdue installments of interest and Additional Amounts at
the rate or rates borne by or provided for in such Securities, and, in addition
thereto, such further amount of money as shall be sufficient to cover the costs
and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel and all other
amounts due to the Trustee under Section 6.7. 

If the
Company fails to pay the money it is required to pay the Trustee pursuant to the
preceding paragraph forthwith upon the demand of the Trustee, the Trustee, in
its own name and as trustee of an express trust, may institute a judicial
proceeding for the collection of the money so due and unpaid, and may prosecute
such proceeding to judgment or final decree, and may enforce the same against
the Company or any other obligor upon such Securities and any Coupons
appertaining thereto and collect the monies adjudged or decreed to be payable in
the manner provided by law out of the property of the Company or any other
obligor upon such Securities and any Coupons appertaining thereto, wherever
situated. 

If an
Event of Default with respect to Securities of any series occurs and is
continuing, the Trustee may in its discretion proceed to protect and enforce its
rights and the rights of the Holders of Securities of such series and any
Coupons appertaining thereto by such appropriate judicial and non-judicial
proceedings, as the Trustee shall deem must effectual to protect and enforce any
such rights, whether for the specific enforcement of any covenant or agreement
in this Indenture, any agreement creating Liens securing Securities of such
series or such Securities or in aid of the exercise of any power granted herein
or therein, or to enforce any other proper remedy, including, without
limitation, enforcement of remedies against the security for any Securities
available to the trustee as a secured party under the uniform commercial code
and other applicable law. 

 

 

45

 

	 	
      Section
      5.4.
	
      Trustee
      May File Proofs of Claim. 

In case
of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Company or any other obligor upon the Securities of
any series or the property of the Company or such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Securities
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Company for the payment of any overdue principal, premium, interest or
Additional Amounts) shall be entitled and empowered, by intervention in such
proceeding or otherwise, 

(1) to file
and prove a claim for the whole amount, or, if the Securities of any series or
Original Issue Discount Securities such lesser amount as may be provided for in
the Securities of any applicable series, of the principal and any premium,
interest and Additional Amounts owing and unpaid in respect of the Securities
and any Coupons appertaining thereto and to file such other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents or counsel) and of the Holders of
Securities or any Coupons appertaining thereto allowed in such judicial
proceeding, and 

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

and any
custodian, receiver, assignee, trustee, liquidator, rehabilitator, sequestrator
or other similar official in any such judicial proceeding is hereby authorized
by each Holder of Securities or any Coupons to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments
directly to the Holders of Securities or any Coupons, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel and any other amounts due the
Trustee under Section 6.7. 

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

 

	 	
      Section
      5.5.
	
      Trustee
      May Enforce Claims without Possession of Securities or
      Coupons. 

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

 

 

46

 

	 	
      Section
      5.6.
	
      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, interest or
Additional Amounts, upon presentation of the Securities or Coupons, or both, as
the case may be, and the notation thereon of the payment if only partially paid
and upon surrender thereof if fully paid: 

First: To
the payment of all amounts due the Trustee and any predecessor Trustee under
Section 6.7; 

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

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

 

	 	
      Section
      5.7.
	
      Limitations
      on Suits.

Except as
provided in Section 5.8, no Holder of any Security of any series or any Coupons
appertaining thereto shall have any right to institute any proceeding, judicial
or otherwise, with respect to this Indenture, or for the appointment of a
receiver or trustee, or for any other remedy hereunder, unless 

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

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

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

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

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

 

 

47

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

 

	 	
      Section
      5.8.
	
      Unconditional
      Right of Holders to Receive Principal and any Premium, Interest and
      Additional Amounts. 

Notwithstanding
any other provision in this Indenture, the Holder of any Security or Coupon
shall have the right, which is absolute and unconditional, to receive payment of
the principal of, any premium and (subject to Section 3.5 and Section 3.7)
interest on, and any Additional Amounts with respect to such Security or payment
of such Coupon, as the case may be, on the respective Stated Maturity or
Maturities therefor specified in such Security or Coupon (or, in the case of
redemption, on the Redemption Date or, in the case of repayment at the option of
such Holder if provided in or pursuant to this Indenture, on the date such
repayment is due) and to institute suit for the enforcement of any such payment,
and such right shall not be impaired without the consent of such Holder except
that no Holder shall have the right to institute any such suit, if and to the
extent that the institution or prosecution thereof or the entry of judgment
therein would under applicable law result in the surrender, impairment, waiver,
or loss of any Liens securing Securities of such Series upon any property or
assets subject to the Liens. 

 

	 	
      Section
      5.9.
	
      Restoration
      of Rights and Remedies.

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

 

	 	
      Section
      5.10.
	
      Rights
      and Remedies Cumulative.

Except as
otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities or Coupons in the last paragraph of Section
3.6, no right or remedy herein conferred upon or reserved to the Trustee or to
each and every Holder of a Security or a Coupon or conferred upon the Trustee or
such Holder under any Instrument securing all or any portion of the Securities
is intended to be exclusive of any other right or remedy, and every right and
remedy, to the extent permitted by law, shall be cumulative and in addition to
every other right and remedy given hereunder or existing under such security
instrument or now or hereafter existing at law or in equity or otherwise. The
assertion or employment of any right or remedy hereunder, or otherwise, shall
not, to the extent permitted by law, prevent the concurrent assertion or
employment of any other appropriate right or remedy. 

 

 

48

 

	 	
      Section
      5.11.
	
      Delay
      or Omission Not Waiver.

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

 

	 	
      Section
      5.12.
	
      Control
      by Holders of Securities. 

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
and any Coupons appertaining thereto, provided that 

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

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

(3) such
direction is not unduly prejudicial to the rights of the other Holders of
Securities of such series not joining in such action as determined by a
Responsible Officer of the Trustee. 

 

	 	
      Section
      5.13.
	
      Waiver
      of Past Defaults.

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

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

(2) in
respect of a covenant or provision hereof which under Article 9 cannot be
modified or amended without the consent of the Holder of each Outstanding
Security of such series affected. 

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

 

	 	
      Section
      5.14.
	
      Waiver
      of Usury, Stay or Extension Laws.

The
Company covenants that (to the extent that it may lawfully do so) it will not at
any time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any usury, stay or extension law wherever enacted, now
or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company expressly waives (to the extent
that it may lawfully do so) 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. 

 

 

49

 

	 	
      Section
      5.15.
	
      Undertaking
      for Costs.

All
parties to this Indenture agree, and each Holder of any Security by his
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken or
omitted by it as Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in such suit having due regard to the merits and good
faith of the claims or defenses made by such party litigant; but the provisions
of this Section 5.15 shall not apply to any suit instituted by the Trustee, to
any suit instituted by any Holder, or group of Holders, holding in the aggregate
more than 10% in principal amount of Outstanding Securities of any series, or to
any suit instituted by any Holder for the enforcement of the payment of the
principal of (or premium, if any) or interest, if any, on or Additional Amounts,
if any, with respect to any Security on or after the respective Stated
Maturities expressed in such Security (or, in the case of redemption, on or
after the Redemption Date, and, in the case of repayment, on or after the date
for repayment) or for the enforcement of the right, if any, to convert or
exchange any Security into Common Stock or other securities in accordance with
its terms. 

ARTICLE
6 

THE
TRUSTEE 

 

	 	
      Section
      6.1.
	
      Certain
      Duties and Responsibilities.

(1) If an
Event of Default has occurred and is continuing, the Trustee shall exercise such
of the rights and powers vested in it by this Indenture, and use the same degree
of care and skill in its exercise, as a prudent person would exercise or use
under the circumstances in the conduct of such person’s own affairs.

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

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

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

 

 

50

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

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

(a) this
Subsection shall not be construed to limit the effect of Subsection (2) of this
Section; 

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

(c) the
Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders of a
majority in principal amount of the Outstanding Securities of any series,
determined as provided in Sections 1.1, 1.4 and 5.12, relating to the time,
method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred upon the Trustee, under this
Indenture with respect to the Securities of such series; and 

(d) 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. 

(5) 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
      6.2.
	
      Certain
      Rights of Trustee. 

Subject
to Section 6.1 hereof: 

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

(2) any
request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or a Company Order (in each case, other than
delivery of any Security, together with any Coupons appertaining thereto, to the
Trustee for authentication and delivery pursuant to Section 3.3 which shall be
sufficiently evidenced as provided therein except in the case of an exchange)
and any resolution of the Board of Directors may be sufficiently evidenced by a
Board Resolution; 

 

 

51

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

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

(5) the
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by or pursuant to this Indenture at the request or direction of any
of the Holders of Securities of any series or any Coupons appertaining thereto
pursuant to this Indenture, unless such Holders shall have offered to the
Trustee such security or indemnity as is reasonably satisfactory to it 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, coupon or other
paper or document, but the Trustee, in its discretion, may but shall not be
obligated to 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, during
business hours and upon reasonable notice, the books, records and premises of
the Company, personally or by agent or attorney; 

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

(8) the
Trustee shall not be liable for any action taken or error of judgment made in
good faith by a Responsible Officer or Responsible Officers of the Trustee,
unless it shall be proved that the Trustee was negligent, acted in bad faith or
engaged in willful misconduct; 

(9) the
Authenticating Agent, Paying Agent, and Security Registrar shall have the same
rights, privileges, protections, immunities, benefits, protections and rights to
indemnification as the Trustee set forth hereunder; 

(10) the
Trustee may request that the Company deliver an Officers’ Certificate setting
forth the names of individuals and/or titles of officers authorized at such time
to take specified actions pursuant to this Indenture, which Officers’
Certificate may be signed by any person authorized to sign an Officers’
Certificate, including any person specified as so authorized in any such
certificate previously delivered and not superseded; and 

 

 

52

(11) the
Trustee shall not be liable with respect to any action taken, suffered or
omitted to be taken by it in good faith in accordance with an Act of the Holders
hereunder, and, to the extent not so provided herein, with respect to any act
requiring the Trustee to exercise its own discretion, relating to the time,
method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred upon the Trustee, under this
Indenture or any Securities, unless it shall be proved that, in connection with
any such action taken, suffered or omitted or any such act, the Trustee was
negligent, acted in bad faith or engaged in willful misconduct. 

 

	 	
      Section
      6.3.
	
      Notice
      of Defaults. 

If a
default occurs hereunder with respect to the 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 in the Trust Indenture Act, unless such
default shall have been cured or waived; provided, however, that, except in the
case of a default in the payment of the principal of or any premium on or
interest on or any Additional Amounts with respect to any Security of such
series or any Coupon appertaining thereto or in the payment of any sinking fund
installment with respect to any Security of such series, the Trustee shall be
protected in withholding such notice if and so long as the board of directors,
the executive committee or a trust committee of directors and/or Responsible
Officers of the Trustee in good faith determines that the withholding of such
notice is in the best interest of the Holders of Securities and Coupons of such
series. For the purpose of this Section, the term “default” means any event
which is, or after notice or lapse of time or both would become, an Event of
Default with respect to Securities of such series. 

 

	 	
      Section
      6.4.
	
      Not
      Responsible for Recitals or Issuance of Securities. 

The
recitals contained herein and in the Securities, except the Trustee’s
certificate of authentication, and in any Coupons shall be taken as the
statements of the Company and neither the Trustee nor any Authenticating Agent
assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Securities or the Coupons, except that the Trustee represents that it is duly
authorized to execute and deliver this Indenture, authenticate the Securities
and perform its obligations hereunder and that the statements made by it in a
Statement of Eligibility on Form T-1 supplied to the Company are true and
accurate, subject to the qualifications set forth therein. Neither the Trustee
nor any Authenticating Agent shall be accountable for the use or application by
the Company of the Securities or the proceeds thereof. 

 

	 	
      Section
      6.5.
	
      May
      Hold Securities. 

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

 

 

53

 

	 	
      Section
      6.6.
	
      Money
      Held in Trust. 

Except as
provided in Section 4.3 and Section 10.3, money held by the Trustee in trust
hereunder need not be segregated from other funds except to the extent required
by law and shall be held uninvested. The Trustee shall be under no liability for
interest on any money received by it hereunder except as otherwise agreed to in
writing with the Company. 

 

	 	
      Section
      6.7.
	
      Compensation
      and Reimbursement. 

The
Company agrees: 

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

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

(3) to
indemnify the Trustee and its agents, officers, directors and employees for, and
to hold them harmless against, any loss, damage, claims, liability or expense
including taxes (other than taxes based upon, measured or determined by the
income of the Trustee), incurred without negligence or bad faith on their part,
arising out of or in connection with the acceptance or administration of the
trust or trusts hereunder, including the costs and expenses of defending
themselves against any claim or liability in connection with the exercise or
performance of any of their powers or duties hereunder, except to the extent
that any such loss, damage, claims, liability or expense was due to the
Trustee’s negligence or bad faith. 

As
security for the performance of the obligations of the Company under this
Section, the Trustee shall have a lien prior to the Securities of any series
upon all property and funds held or collected by the Trustee as such, except
funds held in trust for the payment of principal of, and premium or interest on
or any Additional Amounts with respect to particular Securities or any Coupons
appertaining thereto. 

To the
extent permitted by law, any compensation or expense incurred by the Trustee
after a default specified in or pursuant to Section 5.1 is intended to
constitute an expense of administration under any then applicable bankruptcy or
insolvency law. “Trustee” for purposes of this Section 6.7 shall include any
predecessor Trustee but the negligence or bad faith of any Trustee shall not
affect the rights of any other Trustee under this Section 6.7. 

 

 

54

The
provisions of this Section 6.7 shall survive the satisfaction and discharge of
this Indenture or the earlier resignation or removal of the Trustee and shall
apply with equal force and effect to the Trustee in its capacity as
Authenticating Agent, Paying Agent or Security Registrar. 

 

	 	
      Section
      6.8.
	
      Corporate
      Trustee Required; Eligibility. 

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

This
Indenture shall always have a Trustee who satisfies the requirements of Section
310(a)(1), (2) and (5) of the Trust Indenture Act. The Trustee shall comply with
Section 310(b); provided, however, that there shall be excluded from the
operation of Section 310(b)(1) of the Trust Indenture Act any indenture or
indentures under which other securities or certificates of interest or
participation in other securities of the Company are outstanding if the
requirements for such exclusion set forth in Section 310(b)(1) of the Trust
Indenture Act are met. 

 

	 	
      Section
      6.9.
	
      Resignation
      and Removal; Appointment of Successor. 

(1) No
resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee pursuant to Section 6.10. 

(2) The
Trustee may resign at any time with respect to the Securities of one or more
series by giving written notice thereof to the Company. If the instrument of
acceptance by a successor Trustee required by Section 6.10 shall not have been
delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may, at the expense of the Company, petition
any court of competent jurisdiction for the appointment of a successor Trustee
with respect to such series. 

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

(4) If at any
time: 

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

 

 

55

(b) the
Trustee shall cease to be eligible under Section 6.8 and shall fail to resign
after written request therefor by the Company or any such Holder, or

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

then, in
any such case, (i) the Company, by or pursuant to a Board Resolution, may remove
the Trustee with respect to all Securities or the Securities of such series, or
(ii) subject to Section 315(e) of the Trust Indenture Act, any Holder of a
Security who has been a bona fide Holder of a Security of such series for at
least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee with
respect to all Securities of such series and the appointment of a successor
Trustee or Trustees. 

(5) If the
Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause, with respect to the
Securities of one or more series, the Company, by or pursuant to a Board
Resolution, shall promptly appoint a successor Trustee or Trustees with respect
to the Securities of such 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 6.10. If, within one year after such resignation,
removal or incapacity, 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 6.10, become the
successor Trustee with respect to the Securities of such series and to that
extent supersede the successor Trustee appointed by the Company. If no successor
Trustee with respect to the Securities of any series shall have been so
appointed by the Company or the Holders of Securities and accepted appointment
in the manner required by Section 6.10, any Holder of a Security who has been a
bona fide Holder of a Security of such series for at least six months may, on
behalf of himself and all others similarly situated, petition any court of
competent jurisdiction for the appointment of a successor Trustee with respect
to the Securities of such series. 

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

 

 

56

(7) In no
event shall any retiring Trustee be liable for the acts or omissions of any
successor Trustee hereunder. 

 

	 	
      Section
      6.10.
	
      Acceptance
      of Appointment by Successor. 

(1) Upon the
appointment hereunder of any successor Trustee with respect to all Securities,
such successor Trustee so appointed shall execute, acknowledge and deliver to
the Company and the retiring Trustee an instrument accepting such appointment,
and thereupon the resignation or removal of the retiring Trustee shall become
effective and such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
hereunder of the retiring Trustee; but, on the request of the Company or such
successor Trustee, such retiring Trustee, upon payment of its charges, shall
execute and deliver an instrument transferring to such successor Trustee all the
rights, powers and trusts of the retiring Trustee and, subject to Section 10.3,
shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder, subject nevertheless to its
claim, if any, provided for in Section 6.7. 

(2) Upon the
appointment hereunder of any successor Trustee with respect to the Securities of
one or more (but not all) series, the Company, the retiring Trustee and such
successor Trustee shall execute and deliver an indenture supplemental hereto
wherein each successor Trustee shall accept such appointment and which (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, such successor Trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that
or those series to which the appointment of such successor Trustee relates, (2)
if the retiring Trustee is not retiring with respect to all Securities, shall
contain such provisions as shall be deemed necessary or desirable to confirm
that all the rights, powers, trusts and duties of the retiring Trustee with
respect to the Securities of that or those series as to which the retiring
Trustee is not retiring shall continue to be vested in the retiring Trustee, and
(3) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, it being understood that nothing herein or
in such supplemental indenture shall constitute such Trustees co-trustees of the
same trust, that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee and that no Trustee shall be responsible for any notice
given to, or received by, or any act or failure to act on the part of any other
Trustee hereunder, and, upon the execution and delivery of such supplemental
indenture, the resignation or removal of the retiring Trustee shall become
effective to the extent provided therein, such retiring Trustee shall have no
further responsibility for the exercise of rights and powers or for the
performance of the duties and obligations vested in the Trustee under this
Indenture with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates other than as hereinafter
expressly set forth, and such successor Trustee, without any further act, deed
or conveyance, shall become vested with all the rights, powers, trusts and
duties of the retiring Trustee with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates; but, on
request of the Company or such successor Trustee, such retiring Trustee, upon
payment of its charges with respect to the Securities of that or those series to
which the appointment of such successor Trustee relates and subject to Section
10.3 shall duly assign, transfer and deliver to such successor Trustee, to the
extent contemplated by such supplemental indenture, the property and money held
by such retiring Trustee hereunder with respect to the Securities of that or
those series to which the appointment of such successor Trustee relates, subject
to its claim, if any, provided for in Section 6.7. 

 

 

57

(3) Upon
request of any Person appointed hereunder as a successor Trustee, the Company
shall execute any and all instruments for more fully and certainly vesting in
and confirming to such successor Trustee all such rights, powers and trusts
referred to in paragraph (1) or (2) of this Section, as the case may be.

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

 

	 	
      Section
      6.11.
	
      Merger,
      Conversion, Consolidation or Succession to Business. 

Any
Corporation into which the Trustee may be merged or converted or with which it
may be consolidated, or any Corporation resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any Corporation
acquiring all or substantially all of the corporate trust business of the
Trustee shall be the successor of the Trustee hereunder, without the execution
or filing of any paper or any further act on the part of any of the parties
hereto. In case any Securities shall have been authenticated but not delivered
by the Trustee then in office, any 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. 

 

	 	
      Section
      6.12.
	
      Appointment
      of Authenticating Agent. 

The
Trustee may appoint one or more Authenticating Agents acceptable to the Company
with respect to one or more series of Securities which shall be authorized to
act on behalf of the Trustee to authenticate Securities of that or those series
issued upon original issue, exchange, registration of transfer, partial
redemption or partial repayment or pursuant to Section 3.6, 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 must be acceptable to the Company and, except as provided
in or pursuant to this Indenture, shall at all times be a corporation that would
be permitted by the Trust Indenture Act to act as trustee under an indenture
qualified under the Trust Indenture Act, is authorized under applicable law and
by its charter to act as an Authenticating Agent and has a combined capital and
surplus (computed in accordance with Section 310(a)(2) of the Trust Indenture
Act) of at least $50,000,000. If at any time an Authenticating Agent shall cease
to be eligible in accordance with the provisions of this Section, it shall
resign immediately in the manner and with the effect specified in this Section.

 

 

58

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

An
Authenticating Agent may resign at any time by giving written notice thereof to
the Trustee and the Company. The Trustee may at any time terminate the agency of
an Authenticating Agent by giving written notice thereof to such Authenticating
Agent and the Company. Upon receiving such a notice of resignation or upon such
a termination, or in case at any time such Authenticating Agent shall cease to
be eligible in accordance with the provisions of this Section, the Trustee may
appoint a successor Authenticating Agent which shall be acceptable to the
Company and shall (i) mail written notice of such appointment by first-class
mail, postage prepaid, to all Holders of Registered Securities, if any, of the
series with respect to which such Authenticating Agent shall serve, as their
names and addresses appear in the Security Register, and (ii) if Securities of
the series are issued as Bearer Securities, publish notice of such appointment
at least once in an Authorized Newspaper in the place where such successor

Authenticating
Agent has its principal office if such office is located outside the United
States. Any successor Authenticating Agent, upon acceptance of its appointment
hereunder, shall become vested with all the rights, powers and duties of its
predecessor hereunder, with like effect as if originally named as an
Authenticating Agent. No successor Authenticating Agent shall be appointed
unless eligible under the provisions of this Section. 

The
Company agrees to pay each Authenticating Agent from time to time reasonable
compensation for its services under this Section. If the Trustee makes such
payments, it shall be entitled to be reimbursed for such payments, subject to
the provisions of Section 6.7. 

The
provisions of Section 3.8, Section 6.4 and Section 6.5 shall be applicable to
each Authenticating Agent. 

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

 

 

59

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

U.S. BANK
NATIONAL ASSOCIATION, as Trustee 

By: 
______________________________      

       as
Authenticating Agent 

By:_______________________________

      Authorized
Signatory 

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

 

	 	
      Section
      6.13.
	
      Preferential
      Collection of Claims Against the Company. 

If and
when the Trustee shall be or become a creditor of the Company (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
(or any such other obligor). A trustee who has resigned or been removed shall be
subject to the Trust Indenture Act Section 311(a) to the extent provided
therein. 

 

	 	
      Section
      6.14.
	
      Co-Trustee
      and Separate Trustees. 

At any
time or times, for the purpose of meeting the legal requirements of any
jurisdiction in which any property securing any of the Securities may at the
time be located, the Company and the Trustee shall have power to appoint, and,
upon the written request of the Trustee or of the Holders of at least thirty
percent (30%) in principal amount of the Outstanding Securities, the Company
shall for such purpose join with the Trustee in the execution, delivery and
performance of all instruments and agreements necessary or proper to appoint,
one or more Persons approved by the Trustee either to act as co-trustee, jointly
with the Trustee, of all or any part of such property, or to act as separate
trustee of any such property, in either case with such powers as may be provided
in the instrument of appointment, and to vest in such Person or Persons in the
capacity aforesaid, any property, title, right or power deemed necessary or
desirable, subject to the other provisions of this Section 6.14. If the Company
does not join in such appointment within fifteen (15) days after the receipt by
it of a request so to do, or in case an Event of Default has occurred and is
continuing, the Trustee alone shall have power to make such appointment.

 

 

60

Should
any written instrument from the Company be required by any co-trustee or
separate trustee so appointed for more fully confirming to such co-trustee or
separate trustee such property, title, right or power, any and all such
instruments shall, on request, be executed, acknowledged and delivered by the
Company. 

Every
co-trustee or separate trustee shall, to the extent permitted by law, but to
such extent only, be appointed subject to the following terms, namely:

(1) The
Securities shall be authenticated and delivered, and all rights, powers, duties
and obligations hereunder in respect of the custody of securities, cash and
other personal property held by, or required to be deposited or pledged with,
the Trustee hereunder, shall be exercised solely by the Trustee. 

(2) The
rights, powers, duties and obligations hereby conferred or imposed upon the
Trustee in respect of any property covered by such appointment shall be
conferred or imposed upon and exercised or performed by the Trustee or by the
Trustee and such co-trustee or separate trustee jointly, as shall be provided in
the instrument appointing such co-trustee or separate trustee, except to the
extent that under any law of any jurisdiction in which any particular act is to
be performed, the Trustee shall be incompetent or unqualified to perform such
act, in which event such rights, powers, duties and obligations shall be
exercised and performed by such co-trustee or separate trustee. 

(3) The
Trustee at any time, by an instrument in writing executed by it, with the
concurrence of the Company evidenced by a Board Resolution, may accept the
resignation of or remove any co-trustee or separate trustee appointed under this
Section, and, in case an Event of Default has occurred and is continuing, the
Trustee shall have power to accept the resignation of, or remove, any such
co-trustee or separate trustee without the concurrence of the Company. Upon the
written request of the Trustee, the Company shall join with the Trustee in the
execution, delivery and performance of all instruments and agreements necessary
or proper to effectuate such resignation or removal. A successor to any
co-trustee or separate trustee so resigned or removed may be appointed in the
manner provided in this Section 6.l4. 

(4) No
co-trustee or separate trustee hereunder shall be personally liable by reason of
any act or omission of the Trustee, or any other such trustee hereunder, and the
Trustee shall not be personally liable by reason of any act or omission of any
such co-trustee or separate trustee. 

 

	 	
      Section
      6.15.
	
      Patriot
      Act

To help
the government fight the funding of terrorism and money laundering activities,
Federal law requires all financial institutions to obtain, verify and record
information that identifies each person who opens an account. For a
non-individual person such as business entity, a charity, a trust or other legal
entity the Trustee will ask for documentation to verify its formation and
existence as a legal entity. The Trustee may also ask to see financial
statements, licenses, identification and authorization documents from
individuals claiming authority to represent the entity or other relevant
documentation. 

 

 

61

 

ARTICLE
7 

HOLDERS
LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

	 	
      Section
      7.1.
	
      Company
      to Furnish Trustee Names and Addresses of
  Holders.

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

(1) semi-annually
with respect to Securities of each series not later than March 1 and September 1
of the year or upon such other dates as are set forth in or pursuant to the
Board Resolution or indenture supplemental hereto authorizing such series, a
list, in each case in such form as the Trustee may reasonably require, of the
names and addresses of Holders as of the applicable date, and 

(2) at such
other times as the Trustee may request in writing, within 30 days after the
receipt by the Company of any such request, a list of similar form and content
as of a date not more than 15 days prior to the time such list is furnished,
provided, however, that so long as the Trustee is the Security Registrar no such
list shall be required to be furnished. 

 

	 	
      Section
      7.2.
	
      Preservation
      of Information; Communications to
Holders.

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

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

 

	 	
      Section
      7.3.
	
      Reports
      by Trustee.

(1) Within 60
days after May 15 of each year commencing with the first May 15 following the
first issuance of Securities pursuant to Section 3.1, if required by Section
313(a) of the Trust Indenture Act, the Trustee shall transmit, pursuant to
Section 313(c) of the Trust Indenture Act, a brief report dated as of such
September 15 with respect to any of the events specified in said Section 313(a)
which may have occurred since the later of the immediately preceding September
15 and the date of this Indenture. 

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

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

 

	 	
      Section
      7.4.
	
      Reports
      by Company.

 

62

 

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

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

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

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

(4) Delivery
of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein or determinable from
information contained therein, including the Company’s compliance with any of
its covenants hereunder (as to which the Trustee is entitled to rely exclusively
on Officers’ Certificates), other than with respect to Section 6.2.

(5) Deliver
in timely fashion all certificates, opinions and other items, and otherwise
comply with the requirements of Section 314 of the Trust Indenture Act, to the
extent applicable. 

 

ARTICLE
8 

CONSOLIDATION,
AMALGAMATIONS, MERGER AND SALES

 

	 	
      Section
      8.1.
	
      Company
      May Consolidate, Etc., Only on Certain Terms. 

The
Company shall not consolidate or amalgamate with or merge into any other Person
(whether or not affiliated with the Company), or convey, transfer or lease its
properties and assets as an entirety or substantially as an entirety to any
other Person (whether or not affiliated with the Company), and the Company shall
not permit any other Person (whether or not affiliated with the Company) to
consolidate or amalgamate with or merge into the Company or convey, transfer or
lease its properties and assets as an entirety or substantially as an entirety
to the Company unless: 

 

 

63

(1) in case
the Company shall consolidate or amalgamate with or merge into another Person,
continue in another jurisdiction or convey, transfer or lease its properties and
assets as an entirety or substantially as an entirety to any Person, the Person
formed by such consolidation or amalgamation or into which the Company is merged
or the Person which, directly or indirectly, acquires by conveyance or transfer,
or which leases, the properties and assets of the Company as an entirety or
substantially as an entirety or the Company after a continuation, shall be a
corporation organized and 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 (or indentures, if at such time there is more than one
Trustee) supplemental hereto, executed by the successor Person and delivered to
the Trustee the due and punctual payment of the principal of, any premium and
interest on and any Additional Amounts with respect to all the Securities and
the performance of every obligation in this Indenture and the Outstanding
Securities on the part of the Company to be performed or observed and shall
provide for conversion or exchange rights in accordance with the provisions of
the Securities of any series that are convertible or exchangeable into Common
Stock or other securities; 

(2) immediately
after giving effect to such transaction and treating any indebtedness which
becomes an obligation of the Company or a Subsidiary of the Company 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 or event which, after notice
or lapse of time, or both, would become an Event of Default, shall have occurred
and be continuing; 

(3) either
the Company or the successor Person shall have delivered to the Trustee an
Officer’s Certificate and an Opinion of Counsel, each stating that such
consolidation, merger, conveyance, transfer or lease 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; and

(4) the
Company and the successor Person shall have delivered to the Trustee any
additional financing statements or other filings or other evidence that all
actions necessary or appropriate to maintain the validity, perfection and
priority of every security interest in favor of the Trustee have been made.

 

	 	
      Section
      8.2.
	
      Successor
      Person Substituted for Company. 

Upon any
consolidation or amalgamation by the Company with or merger of the Company into
any other Person or any conveyance, transfer or lease of the properties and
assets of the Company substantially as an entirety to any Person in accordance
with Section 8.1, the successor Person formed by such consolidation or
amalgamation or into which the Company is merged or to which such conveyance,
transfer or lease is made 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
released from all obligations and covenants under this Indenture, the Securities
and the Coupons arising after the date of transfer. 

 

 

64

 

ARTICLE
9 

SUPPLEMENTAL
INDENTURES

 

	 	
      Section
      9.1.
	
      Supplemental
      Indentures without Consent of Holders. 

Without
the consent of any Holders of Securities or Coupons, the Company (when
authorized by or pursuant to a Board Resolution) and the Trustee, at any time
and from time to time, may enter into one or more indentures supplemental
hereto, for any of the following purposes: 

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

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

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

(4) to
establish the form or terms of Securities of any series and any Coupons
appertaining thereto as permitted by Section 2.1 and Section 3.1; or

(5) to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or
change any of the provisions of this Indenture as shall be necessary to provide
for or facilitate the administration of the trusts hereunder by more than one
Trustee, pursuant to the requirements of Section 6.10; or 

(6) to cure
any ambiguity or to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein, or to make any other
provisions with respect to matters or questions arising under this Indenture,
provided such action pursuant to this clause (6) shall not adversely affect the
interests of the Holders of Securities of any series then Outstanding or any
Coupons appertaining thereto in any material respect; or 

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

 

 

65

(8) to
supplement any of the provisions of this Indenture to such extent as shall be
necessary to permit or facilitate the defeasance and discharge of any series of
Securities pursuant to Article 4, provided that any such action shall not
adversely affect the interests of any Holder of an Outstanding Security of such
series and any Coupons appertaining thereto or any other Outstanding Security or
Coupon in any material respect; or 

(9) to secure
any one or more series of the Securities; or 

(10) to make
provisions with respect to conversion or exchange rights of Holders of
Securities of any series. 

 

	 	
      Section
      9.2.
	
      Supplemental
      Indentures with Consent of Holders. 

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

(1) change
the Stated Maturity of the principal of, or any premium or installment of
interest on or any Additional Amounts or Redemption Date with respect to, any
Security, or reduce the principal amount thereof or the rate (or modify the
calculation of such rate) of interest thereon or any Additional Amounts with
respect thereto, or any amount payable upon the redemption thereof or otherwise,
or change the obligation of the Company to pay Additional Amounts pursuant to
Section 10.4 (except as contemplated by Section 8.1(1) and permitted by Section
9.1(1)), or reduce the amount of the principal of an Original Issue Discount
Security that would be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 5.2 or the amount thereof provable in
bankruptcy pursuant to Section 5.4, or adversely affect the right of repayment
at the option of any Holder as contemplated by Article 13, or change the Place
of Payment, Currency in which the principal of, any premium or interest on, or
any Additional Amounts with respect to any Security is payable, or impair the
right to institute suit for the enforcement of any such payment on or after the
Stated Maturity thereof (or, in the case of redemption, on or after the
Redemption Date or, in the case of repayment at the option of the Holder, on or
after the date for repayment), 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 reduce the requirements of
Section 15.4 for quorum or voting, or 

(3) modify
any of the provisions of this Indenture relating to the subordination of the
Securities in respect thereof in a manner adverse to Holders of Securities, or

 

 

66

(4) modify
any of the provisions of this Section, Section 5.13 or Section 10.6, except to
increase any such percentage or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holder of each
Outstanding Security affected thereby, or 

(5) make any
change that adversely affects the right to convert or exchange any Security into
or for Common Stock of the Company or other securities (whether or not issued by
the Company), cash or property in accordance with its terms, or 

(6) reduce
the principal amount of, or the rate, or modify the calculation of such rate, or
interest on, or any premium payable upon the redemption of, any Security, or

(7) reduce
the amount of the principal of an Original Issue Discount Security that would be
due and payable upon a declaration of acceleration of the maturity thereof or
the amount thereof provable in bankruptcy, or 

(8) change
the redemption provisions of the new Securities or adversely affect the right of
repayment at the option of any holder of the Securities, or 

(9) change
the place of payment or the coin or currency in which the principal of, any
premium or interest on the Securities is payable, or 

(10) impair
the right to institute suit for the enforcement of any payment on or after the
stated maturity of the Securities or, in the case of redemption, on or after the
redemption date or, in the case of repayment at the option of any holder, on or
after the repayment date, or 

(11) reduce
the redemption price or purchase price (including change of control purchase
price, asset sale purchase price and the price payable upon exercise by a holder
of its option to require the Company to repurchase such holder’s Securities) on
any Security, or 

(12) impair
the right to institute suit for the enforcement of any repurchase of, payment on
or with respect to, or conversion of any Security, or 

(13) except as
otherwise permitted or contemplated by provisions concerning corporate
reorganizations, adversely affect the repurchase options or the conversion
rights of holders of any Securities, or 

(14) modify
any of the provisions of this Section 9.2, or 

(15) except as
provided in Section 1.17. or in any Supplemental Indenture, release, modify or
impair the security for the Securities. 

A
supplemental indenture which changes or eliminates any covenant or other
provision of this Indenture which shall have been included expressly and 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 of Securities under this Section to approve the
particular form of any proposed supplemental indenture, but it shall be
sufficient if such Act shall approve the substance thereof. 

 

 

67

 

	 	
      Section
      9.3.
	
      Execution
      of Supplemental Indentures. 

As a
condition to executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby of
the trust created by this Indenture, the Trustee shall be entitled to receive,
and (subject to Section 315 of the Trust Indenture Act) 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 and an
Officer’s Certificate stating that all conditions precedent to the execution of
such supplemental indenture have been fulfilled. 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
      9.4.
	
      Effect
      of Supplemental Indentures. 

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

 

	 	
      Section
      9.5.
	
      Reference
      in Securities to Supplemental Indentures. 

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

 

	 	
      Section
      9.6.
	
      Conformity
      with Trust Indenture Act. 

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

 

	 	
      Section
      9.7.
	
      Notice
      of Supplemental Indenture. 

Promptly
after the execution by the Company and the Trustee of any supplemental indenture
pursuant to Section 9.2, the Company shall transmit to the Holders of
Outstanding Securities of any series affected thereby a notice setting forth the
substance of such supplemental indenture. The failure to give such notice to all
Holders, or any defect therein, shall not affect or impair the validity of an
amendment under this Article. 

 

 

68

 

ARTICLE
10 

COVENANTS

 

	 	
      Section
      10.1.
	
      Payment
      of Principal, any Premium, Interest and Additional
      Amounts. 

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

 

	 	
      Section
      10.2.
	
      Maintenance
      of Office or Agency. 

The
Company shall maintain in each Place of Payment for any series of Securities an
Office or Agency where Securities of such series (but not Bearer Securities,
except as otherwise provided below, unless such Place of Payment is located
outside the United States) may be presented or surrendered for payment, where
Securities of such series may be surrendered for registration of transfer or
exchange, where Securities of such series that are convertible or exchangeable
may be surrendered for conversion or exchange, and where notices and demands to
or upon the Company in respect of the Securities of such series relating thereto
and this Indenture may be served. If Securities of a series are issuable as
Bearer Securities, the Company shall maintain, subject to any laws or
regulations applicable thereto, an Office or Agency in a Place of Payment for
such series which is located outside the United States where Securities of such
series and any Coupons appertaining thereto may be presented and surrendered for
payment; provided, however, that if the Securities of such series are listed on
The Stock Exchange of the United Kingdom and the Republic of Ireland or the
Luxembourg Stock Exchange or any other stock exchange located outside the United
States and such stock exchange shall so require, the Company shall maintain a
Paying Agent in London, Luxembourg or any other required city located outside
the United States, as the case may be, so long as the Securities of such series
are listed on such exchange. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of such Office or
Agency. If at any time the Company shall fail to maintain any such required
Office or Agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, except that Bearer Securities of such
series and any Coupons appertaining thereto may be presented and surrendered for
payment at the place specified for the purpose with respect to such Securities
as provided in or pursuant to this Indenture, and the Company hereby appoints
the Trustee as its agent to receive all such presentations, surrenders, notices
and demands. 

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

 

 

69

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 shall give prompt written notice to the Trustee of any such designation
or rescission and of any change in the location of any such other Office or
Agency. Unless otherwise provided in or pursuant to this Indenture, the Company
hereby designates as the Place of Payment for each series of Securities the
Borough of Manhattan, The City of New York, and initially appoints the agency of
the Trustee at U.S. Bank Trust National Association, 100 Wall Street, 16th
floor, New York, New York 10005 as the Office or Agency of the Company in the
Borough of Manhattan, The City of New York for such purpose. The Company may
subsequently appoint a different Office or Agency in the Borough of Manhattan,
The City of New York for the Securities of any series. 

Unless
otherwise specified with respect to any Securities pursuant to Section 3.1, if
and so long as the Securities of any series (i) are denominated in a Foreign
Currency or (ii) may be payable in a Foreign Currency, or so long as it is
required under any other provision of this Indenture, then the Company will
maintain with respect to each such series of Securities, or as so required, at
least one exchange rate agent. 

 

	 	
      Section
      10.3.
	
      Money
      for Securities Payments to Be Held in Trust. 

If the
Company shall at any time act as its own Paying Agent with respect to any series
of Securities, it shall, on or before each due date of the principal of, any
premium or interest on or Additional Amounts with respect to any of the
Securities of such series, segregate and hold in trust for the benefit of the
Persons entitled thereto a sum in the currency or currencies, currency unit or
units or composite currency or currencies in which the Securities of such series
are payable (except as otherwise specified pursuant to Section 3.1 for the
Securities of such series) sufficient to pay the principal or any premium,
interest or Additional Amounts so becoming due until such sums shall be paid to
such Persons or otherwise disposed of as herein provided, and shall promptly
notify the Trustee of its action or failure so to act. Whenever the Company
shall have one or more Paying Agents for any series of Securities, it shall, on
or prior to each due date of the principal of, any premium or interest on or any
Additional Amounts with respect to any Securities of such series, deposit with
any Paying Agent a sum (in the currency or currencies, currency unit or units or
composite currency or currencies described in the preceding paragraph)
sufficient to pay the principal or any premium, interest or Additional Amounts
so becoming due, such sum to be held in trust for the benefit of the Persons
entitled thereto, and (unless such Paying Agent is the Trustee) the Company will
promptly notify the Trustee of its action or failure so to act. 

 

 

70

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

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

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

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

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

Except as
otherwise provided herein or pursuant hereto, any money deposited with the
Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of, any premium or interest on or any Additional
Amounts with respect to any Security of any series or any Coupon appertaining
thereto and remaining unclaimed for two years after such principal or any such
premium or interest or any such Additional Amounts shall have become due and
payable shall be paid to the Company on Company Request, or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Security or
any Coupon appertaining thereto shall thereafter, as an unsecured general
creditor, look only to the Company for payment thereof, and all liability of the
Trustee or such Paying Agent with respect to such trust money, and all liability
of the Company as trustee thereof, shall thereupon cease; provided, however,
that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company cause to be published once, in an
Authorized Newspaper in each Place of Payment for such series or to be mailed to
Holders of Registered Securities of such series, or both, notice that such money
remains unclaimed and that, after a date specified therein, which shall not be
less than 30 days from the date of such publication or mailing nor shall it be
later than two years after such principal and any premium or interest or
Additional Amounts shall have become due and payable, any unclaimed balance of
such money then remaining will be repaid to the Company. 

 

 

71

 

	 	
      Section
      10.4.
	
      Additional
      Amounts. 

All
payments of principal of and premium, if any, interest and any other amounts on,
or in respect of, the Securities of any series or any Coupon appertaining
thereto shall be made without withholding or deduction at source for, or on
account of, any present or future taxes, fees, duties, assessments or
governmental charges of whatever nature imposed or levied by or on behalf of a
jurisdiction (a “taxing jurisdiction”) or any political subdivision or taxing
authority thereof or therein, unless such taxes, fees, duties, assessments or
governmental charges are required to be withheld or deducted by (i) the laws (or
any regulations or ruling promulgated thereunder) of a taxing jurisdiction or
any political subdivision or taxing authority thereof or therein or (ii) an
official position regarding the application, administration, interpretation or
enforcement of any such laws, regulations or rulings (including, without
limitation, a holding by a court of competent jurisdiction or by a taxing
authority in a taxing jurisdiction or any political subdivision thereof). If a
withholding or deduction at source is required, the Company shall, subject to
certain limitations and exceptions set forth below, pay to or on behalf of a
Holder or beneficial owner of any such Security or any Coupon appertaining
thereto such Additional Amounts as may be necessary so that every net payment of
principal, premium, if any, interest or any other amount made to such Holder,
after such withholding or deduction, shall not be less than the amount provided
for in such Security, any Coupons appertaining thereto and this Indenture to be
then due and payable; provided, however, that the Company shall not be required
to make payment of such Additional Amounts for or on account of: 

(1) any tax,
fee, duty, assessment or governmental charge of whatever nature which would not
have been imposed but for the fact that such Holder or beneficial owner: (A) was
a resident, domiciliary or national of, or engaged in business or maintained a
permanent establishment or was physically present in, the relevant taxing
jurisdiction or any political subdivision thereof or otherwise had some
connection with the relevant taxing jurisdiction other than by reason of the
mere ownership of, or receipt of payment under, such Security; (B) presented
such Security for payment in the relevant taxing jurisdiction or any political
subdivision thereof, unless such Security could not have been presented for
payment elsewhere; or (C) presented such Security more than thirty (30) days
after the date on which the payment in respect of such Security first became due
and payable or provided for, whichever is later, except to the extent that the
Holder or beneficial owner would have been entitled to such Additional Amounts
if it had presented such Security for payment on any day within such period of
thirty (30) days; 

(2) any
estate, inheritance, gift, sale, transfer, personal property or similar tax,
assessment or other governmental charge; 

(3) any tax,
assessment or other governmental charge that is imposed or withheld by reason of
the failure by the Holder or the beneficial owner of such Security to comply
with any reasonable request by the Company addressed to the Holder within 90
days of such request (A) to provide information concerning the nationality,
residence or identity of the Holder or such beneficial owner or (B) to make any
declaration or other similar claim or satisfy any information or reporting
requirement, which, in the case of (A) or (B), is required or imposed by
statute, treaty, regulation or administrative practice of the relevant taxing
jurisdiction or any political subdivision thereof as a precondition to exemption
from all or part of such tax, assessment or other governmental charge; or

 

 

72

(4) any
combination of items (1), (2) and (3); 

nor shall
Additional Amounts be paid with respect to any payment of the principal of, or
premium, if any, interest or any other amounts on, any such Security to any
Holder or beneficial owner who is a fiduciary or partnership or other than the
sole beneficial owner of such Security to the extent such payment would be
required by the laws of the relevant taxing jurisdiction (or any political
subdivision or relevant taxing authority thereof or therein) to be included in
the income for tax purposes of a beneficiary or partner or settlor with respect
to such fiduciary or a member of such partnership or a beneficial owner who
would not have been entitled to such Additional Amounts had it been the Holder
of the Security. 

Whenever
in this Indenture there is mentioned, in any context, the payment of the
principal of or any premium, interest or any other amounts on, or in respect of,
any Security of any series or any Coupon or the net proceeds received on the
sale or exchange of any Security of any series, such mention shall be deemed to
include mention of the payment of Additional Amounts provided by the terms of
such series established hereby or pursuant hereto to the extent that, in such
context, Additional Amounts are, were or would be payable in respect thereof
pursuant to such terms, and express mention of the payment of Additional Amounts
(if applicable) in any provision hereof shall not be construed as excluding the
payment of Additional Amounts in those provisions hereof where such express
mention is not made. 

Except as
otherwise provided in or pursuant to this Indenture or the Securities of the
applicable series, at least 10 days prior to the first Interest Payment Date
with respect to a series of Securities (or if the Securities of such series
shall not bear interest prior to Maturity, the first day on which a payment of
principal is made), and at least 10 days prior to each date of payment of
principal or interest if there has been any change with respect to the matters
set forth in the below-mentioned Officer’s Certificate, the Company shall
furnish to the Trustee and the principal Paying Agent or Paying Agents, if other
than the Trustee, an Officer’s Certificate instructing the Trustee and such
Paying Agent or Paying Agents whether such payment of principal of and premium,
if any, interest or any other amounts on the Securities of such series shall be
made to Holders of Securities of such series or the Coupons appertaining thereto
without withholding for or on account of any tax, fee, duty, assessment or other
governmental charge described in this Section 10.4. If any such withholding
shall be required, then such Officer’s Certificate shall specify by taxing
jurisdiction the amount, if any, required to be withheld on such payments to
such Holders of Securities or Coupons, and the Company agrees to pay to the
Trustee or such Paying Agent the Additional Amounts required by this Section
10.4. The Company covenants to indemnify the Trustee and any Paying Agent for,
and to hold them harmless against, any loss, liability or expense incurred
without negligence or bad faith on their part arising out of or in connection
with actions taken or omitted by any of them in reliance on any Officer’s
Certificate furnished pursuant to this Section 10.4. Unless it has received an
Officer’s Certificate specifying such Additional Amounts to be payable by the
Company, then the Trustee may assume, without inquiry, that no such Additional
Amounts are due or owing. 

 

 

73

 

	 	
      Section
      10.5.
	
      Corporate
      Existence.

Subject
to Article 8, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence and that of
each of its Subsidiaries, and their respective rights (charter and statutory)
and franchises; provided, however, that the foregoing shall not obligate the
Company or any of its Subsidiaries to preserve any such right or franchise if
the Company or any such Subsidiary shall determine that the preservation thereof
is no longer desirable in the conduct of its business or the business of such
Subsidiary and that the loss thereof is not disadvantageous in any material
respect to any Holder. 

 

	 	
      Section
      10.6.
	
      Waiver
      of Certain Covenants. 

Except as
otherwise specified as contemplated by Section 3.1 for Securities of such
series, the Company may omit in any particular instance to comply with any term,
provision or condition set forth in Sections 3.1(18) (relating to covenants of
the Company), or 10.5 with respect to the Securities of any series if before the
time for such compliance the Holders of at least a majority in principal amount
of the Outstanding Securities of such series, by Act of such Holders, either
shall waive such compliance in such instance or generally shall have waived
compliance with such term, provision or condition, but no such waiver shall
extend to or affect such term, provision or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the obligations
of the Company and the duties of the Trustee in respect of any such term,
provision or condition shall remain in full force and effect. 

 

	 	
      Section
      10.7.
	
      Company
      Statement as to Compliance; Notice of Certain
      Defaults. 

(1) The
Company shall deliver to the Trustee, within 120 days after the end of each
fiscal year, a written statement (which need not be contained in or accompanied
by an Officer’s Certificate) signed by the principal executive officer, the
principal financial officer or the principal accounting officer of the Company,
stating that 

(a) a review
of the activities of the Company during such year and of its performance under
this Indenture has been made under his or her supervision, and 

(b) to the
best of his or her knowledge, based on such review, (a) the Company has complied
with all the conditions and covenants imposed on it under this Indenture
throughout such year, or, if there has been a default in the fulfillment of any
such condition or covenant, specifying each such default known to him or her and
the nature and status thereof, and (b) no event has occurred and is continuing
which is, or after notice or lapse of time or both would become, an Event of
Default, or, if such an event has occurred and is continuing, specifying each
such event known to him and the nature and status thereof. 

(2) The
Company shall deliver to the Trustee, within five days after the occurrence
thereof, written notice of any Event of Default or any event which after notice
or lapse of time or both would become an Event of Default pursuant to clause (4)
of Section 5.1. 

(3) The
Trustee shall have no duty to monitor the Company’s compliance with the
covenants contained in this Article 10 other than as specifically set forth in
this Section 10.7. 

 

 

74

 

	 	
      Section
      10.8.
	
      Recordation. 

The
Company will cause all instruments providing security for any of the Securities,
including any deeds of trust, mortgages, security agreements, financing
statements and continuation statements, to be recorded, registered and filed,
and to be at all times kept recorded, registered and filed, in such manner and
in such places as may be required or appropriate to create, perfect, maintain,
preserve and protect the rights of the Trustee and the Holders of Outstanding
Securities in the property providing such security. 

 

	 	
      Section
      10.9.
	
      Evidence
      of Recording of Indenture. 

If the
Indenture or any supplemental indentures thereto is to be secured, the Company
shall furnish to the Trustee: 

(1) promptly
after the execution and delivery of the Indenture or any supplemental indentures
thereto, an Opinion of Counsel either (a) stating that, in the opinion of such
counsel, such action has been taken with respect to the filing, recording of
this Indenture, or any supplemental indentures thereto, and with respect to the
execution and filing of financing statements or physical delivery of documents
or instruments so as to make effective the Liens and security interest intended
to be created thereby and/or documents described therein and the first priority
thereof, and reciting the details of such action, or (b) stating that, in the
opinion of such counsel, no such action is necessary to make such lien or
security interest and the first priority thereof effective; and 

(2) within
three months after the anniversary of the issuance of the first series of the
Securities that is secured while any such series is still outstanding, an
Opinion of Counsel dated as of such date either (a) stating that, in the opinion
of such counsel, such action has been taken with respect to the recording,
filing, re-recording, and refilling of this Indenture, any supplemental
indentures thereto and any other requisite documents, and with respect to the
execution and filing of financing statements and continuation statements or
physical delivery of documents or instruments as is necessary to maintain the
lien and security interest, and the first priority thereof, created by this
Indenture and any supplemental indenture thereto and/or documents described
therein, and reciting the details of such action, or (b) stating that, in the
opinion of such counsel, no such action is necessary to maintain such lien or
security interest and the first priority thereof. 

(3) The
Company shall otherwise comply with the provisions of §314(b) and, as applicable
§§314(c), (d) and (e) of the Trust Indenture Act. 

 

ARTICLE
11 

REDEMPTION
OF SECURITIES

 

	 	
      Section
      11.1.
	
      Applicability
      of Article.

Redemption
of Securities of any series at the option of the Company as permitted or
required by the terms of such Securities shall be made in accordance with the
terms of such Securities and (except as otherwise provided herein or pursuant
hereto) this Article. 

 

 

75

 

	 	
      Section
      11.2.
	
      Election
      to Redeem; Notice to Trustee. 

The
election of the Company to redeem any Securities shall be evidenced by or
pursuant to a Board Resolution. In case of any redemption at the election of the
Company of (a) less than all of the Securities of any series or (b) all of the
Securities of any series, with the same issue date, interest rate or formula,
Stated Maturity and other terms, the Company shall, at least 60 days prior to
the Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date and of
the principal amount of Securities of such series to be redeemed. In any case,
failure duly to give notice in any manner provided in this Indenture, or any
defect in the notice, to the Holder of any Security of a series designated for
redemption as a whole or in part shall not affect the validity of the
proceedings for the redemption of any other Security of such series.

 

	 	
      Section
      11.3.
	
      Selection
      by Trustee of Securities to be
Redeemed.

If less
than all of the Securities of any series with the same issue date, interest rate
or formula, Stated Maturity and other terms are to be redeemed, the particular
Securities to be redeemed shall be selected not more than 60 days prior to the
Redemption Date by the Trustee from the Outstanding Securities of such series
not previously called for redemption, by lot or, by such method as the Trustee
shall deem fair and appropriate and which may provide for the selection for
redemption of portions of the principal amount of Registered Securities of such
series (but in any event in compliance with the requirements of the principal
national securities exchange, if any, on which the securities of such series are
listed); provided, however, that no such partial redemption shall reduce the
portion of the principal amount of a Registered Security of such series not
redeemed to less than the minimum denomination for a Security of such series
established herein or pursuant hereto. 

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

For all
purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of Securities shall relate, in the case of
any Securities redeemed or to be redeemed only in part, to the portion of the
principal of such Securities which has been or is to be redeemed. Unless
otherwise specified in or pursuant to this Indenture or the Securities of any
series, if any Security selected for partial redemption is converted into other
securities of the Company or exchanged for securities of another issuer in part
before termination of the conversion or exchange right with respect to the
portion of the Security so selected, the converted portion of such Security
shall be deemed (so far as may be) to be the portion selected for redemption.
Securities which have been converted or exchanged during a selection of
Securities to be redeemed shall be treated by the Trustee as Outstanding for the
purpose of such selection. 

 

	 	
      Section
      11.4.
	
      Notice
      of Redemption.

Notice of
redemption shall be given to all Holders in the manner provided in Section 1.6,
not less than 30 nor more than 60 days prior to the Redemption Date, unless a
shorter period is specified in the Securities to be redeemed, to the Holders of
Securities to be redeemed. Failure to give notice by mailing in the manner
herein provided to the Holder of any Registered Securities designated for
redemption as a whole or in part, or any defect in the notice to any such
Holder, shall not affect the validity of the proceedings for the redemption of
any other Securities or portion thereof. 

 

 

76

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

All
notices of redemption shall state: 

(1) the
Redemption Date, 

(2) the
Redemption Price, 

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

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

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

(6) the place
or places where such Securities, together (in the case of Bearer Securities)
with all Coupons appertaining thereto, if any, maturing after the Redemption
Date, are to be surrendered for payment of the Redemption Price and any accrued
interest and Additional Amounts pertaining thereto, 

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

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

(9) if Bearer
Securities of any series are to be redeemed and no Registered Securities of such
series are to be redeemed, and if such Bearer Securities may be exchanged for
Registered Securities not subject to redemption on the Redemption Date pursuant
to Section 3.5 or otherwise, the last date, as determined by the Company, on
which such exchanges may be made, 

 

 

77

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

(11) the CUSIP
number or the Euroclear or the Clearstream Luxembourg ISN reference numbers of
such Securities, if any (or any other numbers used by a Depositary to identify
such Securities). 

A notice
of redemption published as contemplated by Section 1.6 need not identify
particular Registered Securities to be redeemed. 

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

 

	 	
      Section
      11.5.
	
      Deposit
      of Redemption Price. 

On or
prior to 10:00 A.M., New York City time on any Redemption Date, the Company
shall deposit, with respect to the Securities of any series called for
redemption pursuant to Section 11.4, 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 10.3) an amount of money in immediately available
funds in the applicable Currency sufficient to pay the Redemption Price of, and
(except if the Redemption Date shall be an Interest Payment Date, unless
otherwise specified pursuant to Section 3.1 or in the Securities of such series)
any accrued interest on and Additional Amounts with respect thereto, all such
Securities or portions thereof which are to be redeemed on that date.

 

	 	
      Section
      11.6.
	
      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 and the Coupons for such interest
appertaining to any Bearer Securities so to be redeemed, except to the extent
provided below, shall be void. Upon surrender of any such Security for
redemption in accordance with said notice, together with all Coupons, if any,
appertaining thereto maturing after the Redemption Date, such Security shall be
paid by the Company at the Redemption Price, together with any accrued interest
and Additional Amounts to the Redemption Date; provided, however, that, except
as otherwise provided in or pursuant to this Indenture or the Bearer Securities
of such series, installments of interest on Bearer Securities whose Stated
Maturity is on or prior to the Redemption Date shall be payable only upon
presentation and surrender of Coupons for such interest (at an Office or Agency
located outside the United States except as otherwise provided in Section 10.2),
and provided, further, that, except as otherwise specified in or pursuant to
this Indenture or the Registered Securities of such series, installments of
interest on Registered Securities whose Stated Maturity is on or prior to the
Redemption Date shall be payable to the Holders of such Securities, or one or
more Predecessor Securities, registered as such at the close of business on the
Regular Record Dates therefor according to their terms and the provisions of
Section 3.7. 

 

 

78

If any
Bearer Security surrendered for redemption shall not be accompanied by all
appurtenant Coupons maturing after the Redemption Date, such Security may be
paid after deducting from the Redemption Price an amount equal to the face
amount of all such missing Coupons, or the surrender of such missing Coupon or
Coupons may be waived by the Company and the Trustee if there be furnished to
them such security or indemnity as they may require to save each of them and any
Paying Agent harmless. If thereafter the Holder of such Security shall surrender
to the Trustee or any Paying Agent any such missing Coupon in respect of which a
deduction shall have been made from the Redemption Price, such Holder shall be
entitled to receive the amount so deducted; provided, however, that any interest
or Additional Amounts represented by Coupons shall be payable only upon
presentation and surrender of those Coupons at an Office or Agency for such
Security located outside of the United States except as otherwise provided in
Section 10.2. 

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

 

	 	
      Section
      11.7.
	
      Securities
      Redeemed in Part. 

Any
Registered Security which is to be redeemed only in part shall be surrendered at
any Office or Agency for such Security (with, if the Company or the Trustee so
requires, due endorsement by, or a written instrument of transfer in form
reasonably satisfactory to the Company and the Trustee duly executed by, the
Holder thereof or his attorney duly authorized in writing) and the Company shall
execute and the Trustee shall authenticate and deliver to the Holder of such
Security without service charge, a new Registered Security or Securities of the
same series, containing identical terms and provisions, of any authorized
denomination as requested by such Holder in aggregate principal amount equal to
and in exchange for the unredeemed portion of the principal of the Security so
surrendered. If a Security in global form is so surrendered, the Company shall
execute, and the Trustee shall authenticate and deliver to the U.S. Depositary
or other Depositary for such Security in global form as shall be specified in
the Company Order with respect thereto to the Trustee, without service charge, a
new Security in global form in a denomination equal to and in exchange for the
unredeemed portion of the principal of the Security in global form so
surrendered. 

 

ARTICLE
12 

SINKING
FUNDS

 

	 	
      Section
      12.1.
	
      Applicability
      of Article. 

The
provisions of this Article shall be applicable to any sinking fund for the
retirement of Securities of a series, except as otherwise permitted or required
in or pursuant to this Indenture or any Security of such series issued pursuant
to this Indenture. 

 

 

79

The
minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a “mandatory sinking fund
payment,” and any payment in excess of such minimum amount provided for by the
terms of Securities of such series is herein referred to as an “optional sinking
fund payment”. If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided
in Section 12.2. Each sinking fund payment shall be applied to the redemption of
Securities of any series as provided for by the terms of Securities of such
series and this Indenture. 

 

	 	
      Section
      12.2.
	
      Satisfaction
      of Sinking Fund Payments with
Securities.

The
Company may, in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of any series to be made pursuant to the terms of such
Securities (1) deliver Outstanding Securities of such series (other than any of
such Securities previously called for redemption or any of such Securities in
respect of which cash shall have been released to the Company), together in the
case of any Bearer Securities of such series with all unmatured Coupons
appertaining thereto, and (2) apply as a credit Securities of such series which
have been redeemed either at the election of the Company pursuant to the terms
of such series of Securities or through the application of permitted optional
sinking fund payments pursuant to the terms of such Securities, provided that
such series of Securities have not been previously so credited. Such Securities
shall be received and credited for such purpose by the Trustee at the Redemption
Price specified in such Securities for redemption through operation of the
sinking fund and the amount of such sinking fund payment shall be reduced
accordingly. If, as a result of the delivery or credit of Securities of any
series in lieu of cash payments pursuant to this Section 12.2, the principal
amount of Securities of such series to be redeemed in order to satisfy the
remaining sinking fund payment shall be less than $100,000, the Trustee need not
call Securities of such series for redemption, except upon Company Request, and
such cash payment shall be held by the Trustee or a Paying Agent and applied to
the next succeeding sinking fund payment, provided, however, that the Trustee or
such Paying Agent shall at the request of the Company from time to time pay over
and deliver to the Company any cash payment so being held by the Trustee or such
Paying Agent upon delivery by the Company to the Trustee of Securities of that
series purchased by the Company having an unpaid principal amount equal to the
cash payment requested to be released to the Company. 

 

	 	
      Section
      12.3.
	
      Redemption
      of Securities for Sinking Fund. 

Not less
than 75 days prior to each sinking fund payment date for any series of
Securities, the Company shall deliver to the Trustee an Officer’s Certificate
specifying the amount of the next ensuing mandatory sinking fund payment for
that series pursuant to the terms of that series, the portion thereof, if any,
which is to be satisfied by payment of cash and the portion thereof, if any,
which is to be satisfied by delivering and crediting of Securities of that
series pursuant to Section 12.2, and the optional amount, if any, to be added in
cash to the next ensuing mandatory sinking fund payment, and will also deliver
to the Trustee any Securities to be so credited and not theretofore delivered.
If such Officer’s Certificate shall specify an optional amount to be added in
cash to the next ensuing mandatory sinking fund payment, the Company shall
thereupon be obligated to pay the amount therein specified. Not less than 60
days before each such sinking fund payment date the Trustee shall select the
Securities to be redeemed upon such sinking fund payment date in the manner
specified in Section 11.3 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 11.4. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in Sections
11.5, 11.6 and Section 11.7. 

 

 

80

 

ARTICLE
13 

REPAYMENT
AT THE OPTION OF HOLDERS

 

	 	
      Section
      13.1.
	
      Applicability
      of Article. 

Securities
of any series which are repayable at the option of the Holders thereof before
their Stated Maturity shall be repaid in accordance with the terms of the
Securities of such series. The repayment of any principal amount of Securities
pursuant to such option of the Holder to require repayment of Securities before
their Stated Maturity, for purposes of Section 3.9, shall not operate as a
payment, redemption or satisfaction of the Indebtedness represented by such
Securities unless and until the Company, at its option, shall deliver or
surrender the same to the Trustee with a directive that such Securities be
cancelled. Notwithstanding anything to the contrary contained in this Section
13.1, in connection with any repayment of Securities, the Company may arrange
for the purchase of any Securities by an agreement with one or more investment
bankers or other purchasers to purchase such Securities by paying to the Holders
of such Securities on or before the close of business on the repayment date an
amount not less than the repayment price payable by the Company on repayment of
such Securities, and the obligation of the Company to pay the repayment price of
such Securities shall be satisfied and discharged to the extent such payment is
so paid by such purchasers. 

 

ARTICLE
14 

SECURITIES
IN FOREIGN CURRENCIES

 

	 	
      Section
      14.1.
	
      Applicability
      of Article. 

Whenever
this Indenture provides for (i) any action by, or the determination of any of
the rights of, Holders of Securities of any series in which not all of such
Securities are denominated in the same Currency, or (ii) any distribution to
Holders of Securities, in the absence of any provision to the contrary in the
form of Security of any particular series or pursuant to this Indenture or the
Securities, any amount in respect of any Security denominated in a Currency
other than Dollars shall be treated for any such action or distribution as that
amount of Dollars that could be obtained for such amount on such reasonable
basis of exchange and as of the record date with respect to Registered
Securities of such series (if any) for such action, determination of rights or
distribution (or, if there shall be no applicable record date, such other date
reasonably proximate to the date of such action, determination of rights or
distribution) as the Company may specify in a written notice to the Trustee.
Such notice from the Company to the Trustee shall specify such record date,
shall identify the exchange rate as of such date, and shall calculate the amount
payable based on such exchange rate. The Trustee shall be entitled to rely on
the information in such notice without having to make independent inquiry.

 

 

81

 

ARTICLE
15 

MEETINGS
OF HOLDERS OF SECURITIES

 

	 	
      Section
      15.1.
	
      Purposes
      for Which Meetings May Be Called. 

A meeting
of Holders of Securities of any series may be called at any time and from time
to time pursuant to this Article to make, give or take any request, demand,
authorization, direction, notice, consent, waiver or other Act provided by this
Indenture to be made, given or taken by Holders of Securities of such series.

 

	 	
      Section
      15.2.
	
      Call,
      Notice and Place of Meetings. 

(1) The
Trustee may at any time call a meeting of Holders of Securities of any series
for any purpose specified in Section 15.1, to be held at such time and at such
place in the Borough of Manhattan, The City of New York, or, if Securities of
such series have been issued in whole or in part as Bearer Securities, in London
or in such place outside the United States as the Trustee shall determine.
Notice of every meeting of Holders of Securities of any series, setting forth
the time and the place of such meeting and in general terms the action proposed
to be taken at such meeting, shall be given, in the manner provided in Section
1.6, not less than 21 nor more than 180 days prior to the date fixed for the
meeting. 

(2) In case
at any time the Company (by or pursuant to a Board Resolution) or the Holders of
at least 10% in principal amount of the Outstanding Securities of any series
shall have requested the Trustee to call a meeting of the Holders of Securities
of such series for any purpose specified in Section 15.1, by written request
setting forth in reasonable detail the action proposed to be taken at the
meeting, and the Trustee shall not have mailed notice of or made the first
publication of the notice of such meeting within 21 days after receipt of such
request (whichever shall be required pursuant to Section 1.6) or shall not
thereafter proceed to cause the meeting to be held as provided herein, then the
Company or the Holders of Securities of such series in the amount above
specified, as the case may be, may determine the time and the place in the
Borough of Manhattan, The City of New York, or, if Securities of such series are
to be issued as Bearer Securities, in London for such meeting and may call such
meeting for such purposes by giving notice thereof as provided in clause (1) of
this Section. 

 

	 	
      Section
      15.3.
	
      Persons
      Entitled to Vote at Meetings. 

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

 

 

82

 

	 	
      Section
      15.4.
	
      Quorum;
      Action. 

The
Persons entitled to vote a majority in principal amount of the Outstanding
Securities of a series shall constitute a quorum for any meeting of Holders of
Securities of such series. In the absence of a quorum within 30 minutes after
the time appointed for any such meeting, the meeting shall, if convened at the
request of Holders of Securities of such series, be dissolved. In any other case
the meeting may be adjourned for a period of not less than 10 days as determined
by the chairman of the meeting prior to the adjournment of such meeting. In the
absence of a quorum at any reconvened meeting, such reconvened meeting may be
further adjourned for a period of not less than 10 days as determined by the
chairman of the meeting prior to the adjournment of such reconvened meeting.
Notice of the reconvening of any adjourned meeting shall be given as provided in
Section 15.2(1), except that such notice need be given only once not less than
five days prior to the date on which the meeting is scheduled to be reconvened.
Notice of the reconvening of an adjourned meeting shall state expressly the
percentage, as provided above, of the principal amount of the Outstanding
Securities of such series which shall constitute a quorum. 

Except as
limited by the proviso to Section 9.2, any resolution presented to a meeting or
adjourned meeting duly reconvened at which a quorum is present as aforesaid may
be adopted only by the affirmative vote of the Holders of a majority in
principal amount of the Outstanding Securities of that series; provided,
however, that, except as limited by the proviso to Section 9.2, any resolution
with respect to any request, demand, authorization, direction, notice, consent,
waiver or other Act which this Indenture expressly provides may be made, given
or taken by the Holders of a specified percentage, which is less than a
majority, in principal amount of the Outstanding Securities of a series may be
adopted at a meeting or an adjourned meeting duly reconvened and at which a
quorum is present as aforesaid by the affirmative vote of the Holders of such
specified percentage in principal amount of the Outstanding Securities of such
series. 

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

 

	 	
      Section
      15.5.
	
      Determination
      of Voting Rights; Conduct and Adjournment of
      Meetings. 

(1) Notwithstanding
any other provisions of this Indenture, the Trustee may make such reasonable
regulations as it may deem advisable for any meeting of Holders of Securities of
such series in regard to proof of the holding of Securities of such series and
of the appointment of proxies and in regard to the appointment and duties of
inspectors of votes, the submission and examination of proxies, certificates and
other evidence of the right to vote, and such other matters concerning the
conduct of the meeting as it shall deem appropriate. Except as otherwise
permitted or required by any such regulations, the holding of Securities shall
be proved in the manner specified in Section 1.4 and the appointment of any
proxy shall be proved in the manner specified in Section 1.4 or by having the
signature of the person executing the proxy witnessed or guaranteed by any trust
company, bank or banker authorized by Section 1.4 to certify to the holding of
Bearer Securities. Such regulations may provide that written instruments
appointing proxies, regular on their face, may be presumed valid and genuine
without the proof specified in Section 1.4 or other proof. 

 

 

83

(2) The
Trustee shall, by an instrument in writing, appoint a temporary chairman of the
meeting, unless the meeting shall have been called by the Company or by Holders
of Securities as provided in Section 15.2(2), in which case the Company or the
Holders of Securities of the series calling the meeting, as the case may be,
shall in like manner appoint a temporary chairman. A permanent chairman and a
permanent secretary of the meeting shall be elected by vote of the Persons
entitled to vote a majority in principal amount of the Outstanding Securities of
such series represented at the meeting. 

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

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

 

	 	
      Section
      15.6.
	
      Counting
      Votes and Recording Action of Meetings. 

 

The vote
upon any resolution submitted to any meeting of Holders of Securities of any
series shall be by written ballots on which shall be subscribed the signatures
of the Holders of Securities of such series or of their representatives by proxy
and the principal amounts and serial numbers of the Outstanding Securities of
such series held or represented by them. The permanent chairman of the meeting
shall appoint two inspectors of votes who shall count all votes cast at the
meeting for or against any resolution and who shall make and file with the
secretary of the meeting their verified written reports in triplicate of all
votes cast at the meeting. A record, at least in triplicate, of the proceedings
of each meeting of Holders of Securities of any series shall be prepared by the
secretary of the meeting and there shall be attached to said record the original
reports of the inspectors of votes on any vote by ballot taken thereat and
affidavits by one or more persons having knowledge of the facts setting forth a
copy of the notice of the meeting and showing that said notice was given as
provided in Section 15.2 and, if applicable, Section 15.4. Each copy shall be
signed and verified by the affidavits of the permanent chairman and secretary of
the meeting and one such copy shall be delivered to the Company, and another to
the Trustee to be preserved by the Trustee, the latter to have attached thereto
the ballots voted at the meeting. Any record so signed and verified shall be
conclusive evidence of the matters therein stated. 

* * * *
*

84

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

	
       

                                                  PMA
      CAPITAL CORPORATION 

       

	
                                              By: /s/
      William E. Hitselberger      

                                              William
      E. Hitselberger

                                               Senior Vice President,
      Chief Financial

                                               Officer and
      Treasurer

       

	
                                                  U.S.
      BANK NATIONAL ASSOCIATION,

                                                  as
      Trustee 

	
                                              By: /s/
      Michael M. Hopkins      

                                              Michael
      M. Hopkins

                                              Vice
      President 

	
      STATE OF
	
      )
	 
	 	
      )
	
      ss.:

	
      COUNTY
      OF
	
      )
	 

On the
         day of
                    , 2004
before me personally came                                , to me
known, who, being by me duly sworn, did depose and say that s/he is the
                                 of PMA
Capital Corporation, the corporation described in and which executed the
foregoing instrument; and that s/he signed his/her name thereto by authority of
the Board of Directors of such corporation. 

____________________________________

Notary
Public

[NOTARIAL
SEAL APPEARS HERE]

 

	 	 	 

	
      STATE OF
	
      )
	 
	 	
      )
	
      ss.:

	
      COUNTY
      OF
	
      )
	 

On the
         day of
               , 2004
before me personally came                                    , to me
known, who, being by me duly sworn, did depose and say that s/he is the
                                 of U.S.
Bank National Association, the corporation described in and which executed the
foregoing instrument; and that s/he signed his/her name thereto by authority of
the Board of Directors of such corporation. 

____________________________________

Notary
Public

[NOTARIAL
SEAL APPEARS HERE]PMA Capital Corporation Exhibit 4-8

Exhibit
4.8

PMA
CAPITAL CORPORATION 

TO

U.S.
BANK NATIONAL ASSOCIATION, TRUSTEE 

FIRST
SUPPLEMENTAL INDENTURE 

DATED
AS OF NOVEMBER 15, 2004 

$84,140,000

6.50%
SENIOR SECURED CONVERTIBLE DEBENTURES 

DUE
SEPTEMBER 30, 2022 

TABLE
OF CONTENTS1 

 

	 	 	Page
	
      ARTICLE
      I
      Definitions
	 	
       
      1

	
      Section
      1.01
	
      Definitions.
	
       
      1

	
      Section
      1.02
	
      Certain
      Terms Defined in the Indenture.
	
      10

	
      Section
      1.03
	
      Grant
      of Security Interest in Collateral and Additional
    Collateral.
	
      14

	
      Section
      1.04
	
      Release
      of Security Interest in Collateral and Additional
    Collateral.
	
      16

	
      Section
      1.05
	
      Authorization
      of Actions to be Taken by Collateral Agent Under the Collateral Agent
      Agreement.
	
      18

	
      Section
      1.06
	
      Authorization
      of Receipt of Funds by the Trustee Under the Collateral Agent
      Agreement.
	
      18

	
      Section
      1.07
	
      Authorization
      of Trustee to Enter into the Collateral Agent Agreement.
	
      18

	 	 	 
	
      ARTICLE
      II
      6.50% Senior Secured Convertible Debentures
	
      19

	
      Section
      2.01
	
      Establishment.
	
      19

	
      Section
      2.02
	
      Terms
      of the Debentures.
	
      20

	
      Section
      2.03
	
      Payment
      of Interest; Interest Rights Reserved.
	
      27

	
      Section
      2.04
	
      Events
      of Default; Acceleration of Maturity.
	
      27

	
      Section
      2.05
	
      Supplemental
      Indentures with Consent of Holders.
	
      28

	
      Section
      2.06
	
      Reserved.
	
      29

	
      Section
      2.07
	
      Selection
      by Trustee of Securities to be Redeemed.
	
      29

	
      Section
      2.08
	
      Reserved.
	
      29

	
      Section
      2.09
	
      Purchase
      at the Option of Holders.
	
      29

	
      Section
      2.10
	
      Application
      of the Article of the Indenture Regarding Defeasance and Covenant
      Defeasance.
	
      39

	
      Section
      2.11
	
      Conversions.
	
      39

	
      Section
      2.12
	
      Trustee’s
      Right to Exercise Remedies Against Security.
	
      57

	
      Section
      2.13
	
      Trustee
      to Hold Collateral and Additional Collateral.
	
      57

	
      Section
      2.14
	
      Additional
      Amounts.
	
      58

	 	 
	
      ARTICLE
      III
      ADDITIONAL COVENANTS
	
      58

	
      Section
      3.01
	
      Maintenance
      of Properties.
	
      58

	
      Section
      3.02
	
      Payment
      of Taxes and Other Claims.
	
      58

	
      Section
      3.03
	
      Limitation
      on Liens on Capital Stock of Restricted Subsidiaries.
	
      58

	
      Section
      3.04
	
      Limitation
      on Sale or Issuance of Capital Stock of Restricted
      Subsidiaries.
	
      59

	
      Section
      3.05
	
      Limitation
      on Restricted Payments.
	
      59

	
      Section
      3.06
	
      Merger,
      Consolidation and Sale of Assets.
	
      62

	
      Section
      3.07
	
      Limitations
      on Transactions with Affiliates.
	
      64

	
      Section
      3.08
	
      Protection
      of Collateral and the Additional Collateral.
	
      65

	
      Section
      3.09
	
      The
      Company to Remain a Holding Company.
	
      66

	
      Section
      3.10
	
      Limitation
      on Incurrence of Additional Indebtedness.
	
      66

	 	 
	
      ARTICLE
      IV
      MISCELLANEOUS PROVISIONS
	
      68

	
      Section
      4.01
	
      Recitals
      by Company.
	
      68

	
      Section
      4.02
	
      Ratification
      and Incorporation of Original Indenture.
	
      68

	
      Section
      4.03
	
      Executed
      in Counterparts.
	
      68

	 	 	 

1 This
Table of Contents does not constitute part of the Indenture or have any bearing
upon the interpretation of any of its terms and provisions.

i

THIS
FIRST SUPPLEMENTAL INDENTURE (the “First Supplemental Indenture”) is made as of
the 15th day of November, 2004, by and between PMA CAPITAL CORPORATION, a
company duly organized and existing under the laws of the Commonwealth of
Pennsylvania (hereinafter called the “Company”), having its principal executive
office located at 380 Sentry Parkway, Blue Bell, Pennsylvania 19422, and U.S.
BANK NATIONAL ASSOCIATION, a national banking association duly organized and
existing under the laws of the United States (hereinafter called the “Trustee”),
having its Corporate Trust Office located at 225 Asylum Street, Hartford,
Connecticut 06103. 

WITNESSETH:

WHEREAS,
the Company has heretofore entered into an Indenture, dated as of November 15,
2004, (the “Original Indenture”), with U.S. Bank National Association;

WHEREAS,
the Original Indenture as amended and supplemented by this First Supplemental
Indenture, is herein called the “Indenture”; 

WHEREAS,
under the Original Indenture, a new series of Securities may at any time be
established in or pursuant to a resolution of the Board of Directors of the
Company and set forth in an Officer’s Certificate in accordance with the
provisions of the Original Indenture and the terms of such series may be
described by a supplemental indenture executed by the Company and the Trustee;

WHEREAS,
the Company desires to (a) add additional Events of Default for the benefit of
the Holders of all series of Securities (except as may be provided in a future
supplemental indenture to the Indenture (a “Future Supplemental Indenture”)),
(b) add additional covenants of the Company, (c) establish the form and terms of
a new series of Securities, (d) provide whether certain Articles of the
Indenture will apply to all series of Securities, including the Debentures
established hereby (except as may be provided in a Future Supplemental
Indenture) and (e) otherwise amend and supplement the Original Indenture as set
forth herein; 

WHEREAS,
all conditions necessary to authorize the execution and delivery of this First
Supplemental Indenture and to make it a valid and binding obligation of the
Company have been done or performed. 

NOW,
THEREFORE, in consideration of the agreements and obligations set forth herein
and for other good and valuable consideration, the sufficiency of which is
hereby acknowledged, the parties hereto hereby agree as follows: 

ARTICLE
I

Definitions

Section
1.01 Definitions. 

The
following defined terms used herein shall, unless the context otherwise
requires, have the meanings specified below. Capitalized terms used herein for
which no definition is provided herein shall have the meanings set forth in the
Original Indenture. 

 

“ACL RBC”
means “authorized control level risk based capital” as then defined and
calculated in accordance with the Risk Based Capital (RBC) for Insurers Model
Act of the National Association of Insurance Commissioners. 

“Acquired
Indebtedness” means Indebtedness of a Person or any of its Subsidiaries existing
at the time such Person becomes a Restricted Subsidiary of the Company or at the
time it merges or consolidates with or into the Company or any of its
Subsidiaries or assumed in connection with the acquisition of assets from such
Person and in each case not incurred by such Person in connection with, or in
anticipation or contemplation of, such Person becoming a Restricted Subsidiary
of the Company or such acquisition, merger or consolidation. 

“Asset
Acquisition” means (1) an Investment by the Company or any Restricted Subsidiary
of the Company in any other Person pursuant to which such Person shall become a
Restricted Subsidiary of the Company or any Restricted Subsidiary of the
Company, or shall be merged with or into the Company or any Restricted
Subsidiary of the Company, or (2) the acquisition by the Company or any
Restricted Subsidiary of the Company of the assets of any Person (other than a
Restricted Subsidiary of the Company) which constitute all or substantially all
of the assets of such Person or comprise any division or line of business of
such Person or any other properties or assets of such Person other than in the
ordinary course of business. 

“Average
Life” means, as of the date of determination, with respect to any Indebtedness,
the quotient obtained by dividing: (1) the sum of the products of the number of
years from the date of determination to the dates of each successive scheduled
principal payment of or redemption or similar payment with respect to such
Indebtedness multiplied by the amount of such payment by (2) the sum of all such
payments. 

“Cash
Equivalents” means: 

(1) marketable
direct obligations issued by, or unconditionally guaranteed by, the United
States Government or issued by any agency thereof and backed by the full faith
and credit of the United States, in each case maturing within one year from the
date of acquisition thereof; 

(2) commercial
paper maturing no more than one year from the date of creation thereof and, at
the time of acquisition, having a rating of at least A-1 from S&P or at
least P-1 from Moody’s; 

(3) investments
in demand accounts, time deposit accounts, certificates of deposit and money
market deposits maturing within 180 days of the date of acquisition thereof
issued by a bank or trust company which is organized under the laws of the
United States of America, any State thereof or any foreign country recognized by
the United States of America, and which bank or trust company has capital,
surplus and undivided profits aggregating in excess of $50,000,000 (or the
foreign currency equivalent thereof) and has outstanding debt which is rated “A”
(or such similar equivalent rating) or higher by at least one nationally
recognized statistical rating organization (as defined in Rule 436 under the
Securities Act); 

2

 

(4) repurchase
obligations with a term of not more than seven days for underlying securities of
the types described in clause (1) above entered into with any bank meeting the
qualifications specified in clause (3) above; 

(5) investment
in money market funds which invest at least 95% of their assets in securities of
the types described in clauses (1) through (4) above. 

“Collateral
Agent” means, U.S. Bank National Association, in its capacity as collateral
agent under the Collateral Agent Agreement and its permitted successors and
assigns. 

“Collateral
Agent Agreement” means the Collateral Agent Agreement dated as of November 15,
2004 by and among the Company, U.S. Bank National Association, as Collateral
Agent, the Trustee for the Debentures, the trustee for the Company’s 8.50%
Monthly Income Senior Notes due 2018 and the trustee or other authorized
representative for other secured Indebtedness issued in accordance with the
terms of the Indenture, as such may be amended from time to time in accordance
with the terms of the Indenture and the Collateral Agent Agreement.

“Consolidated
Fixed Charges” means, with respect to any Person for any period, the sum,
without duplication, of: 

(1) Consolidated
Interest Expense; plus 

(2) the
product of (x) the amount of all dividend payments on any series of Preferred
Stock of such Person (other than dividends paid in Qualified Capital Stock)
paid, accrued or scheduled to be paid or accrued during such period times (y) a
fraction, the numerator of which is one and the denominator of which is one
minus the then current effective consolidated federal, state and local income
tax rate of such Person, expressed as a decimal. 

“Consolidated
Interest Expense” means, with respect to any Person for any period, the sum of,
without duplication: 

(1) the
aggregate of the interest expense of such Person and its Restricted Subsidiaries
for such period determined on a consolidated basis in accordance with GAAP
(which, for greater clarity, excludes interest on funds held under reinsurance
contracts), including without limitation: (a) any amortization of debt discount
and amortization or write-off of deferred financing costs; (b) the net costs
under Interest Rate Hedging Agreements; (c) all capitalized interest; (d) the
interest portion of any deferred payment obligation; and (e) imputed interest
with respect of Attributable Debt; and 

(2) the
interest component of Capitalized Lease Obligations paid, accrued and/or
scheduled to be paid or accrued by such Person and its Restricted Subsidiaries
during such period as determined on a consolidated basis in accordance with
GAAP. 

“Consolidated
Net Income” means, with respect to any Person, for any period, the aggregate net
income (or loss) of such Person and its Restricted Subsidiaries for such period
on a consolidated basis, determined in accordance with GAAP;
provided that
there shall be excluded therefrom: 

3

(1) after-tax
items classified as extraordinary gains or losses; 

(2) solely
for purposes of Section 3.05 of this First Supplemental Indenture, the net
income of any Person prior to the date it becomes a Restricted Subsidiary of the
referent Person or is merged or consolidated with the referent Person or any
Restricted Subsidiary of the referent Person; 

(3) the net
income of any Person, other than a Restricted Subsidiary of the referent Person,
except to the extent of cash (or to the extent immediately converted to cash)
dividends or distributions paid to the referent Person or to a Wholly Owned
Restricted Subsidiary of the referent Person by such Person; 

(4) any
restoration to income of any contingency reserve, except to the extent that
provision for such reserve was made out of Consolidated Net Income accrued at
any time following the Issue Date; and 

(5) in the
case of a successor to the referent Person by consolidation or merger or as a
transferee of the referent Person’s assets, any earnings of the successor
corporation prior to such consolidation, merger or transfer of assets.

“Currency
Hedge Obligations” means, at any time as to the Company and its Restricted
Subsidiaries, the obligations of such Person at such time that were incurred in
the ordinary course of business pursuant to any foreign currency exchange
agreement, option or futures contract or other similar agreement or arrangement
designed to protect against or manage such Person’s or any of its Subsidiaries’
exposure to fluctuations in foreign currency exchange rates. 

“Default”
means any event which is, or after notice or passage of time or both would be,
an Event of Default. 

“Disinterested
Director” means, with respect to an Affiliate Transaction or series of related
Affiliate Transactions, a member of the Board of Directors of the Company who
has no financial interest, and whose employer has no financial interest, in such
Affiliate Transaction or series of related Affiliate Transactions. 

“Distributable
Amount” means, with respect to the Company at the last day of any fiscal
quarter, (a) the maximum amount of cash that the then Insurance Subsidiaries
could have distributed directly to the Company as a dividend, distribution,
repayment of intercompany indebtedness or payment of interest thereon as of such
date (calculated as if such date were the relevant test date for determining
compliance with applicable Insurance Laws) without prior governmental approval
(or any required passage of time in nondisapproval states) and which is not
prohibited, directly or indirectly, by the terms of any charter or any
agreement, instrument, judgment, decree, order, writ, injunction, certificate,
statute, rule, law, code, ordinance or government regulation applicable to such
Insurance Subsidiaries unless any such restriction has been legally waived, plus
(b) the amount of any dividend, distribution, repayment of intercompany
indebtedness or payment of interest thereon paid during the four fiscal quarters
coming immediately prior to the date of determination by the Insurance
Subsidiaries to the Company to the extent that such dividend, distribution,
repayment of intercompany indebtedness or payment of interest thereon reduces
the amount described in clause (a) that could be distributed at the date of
determination; provided that in
making any determination of the Distributable Amount to Consolidated Fixed
Charges Coverage Ratio, any asset sales or other dispositions or Asset
Acquisitions (including, without limitation, any amount which such Restricted
Subsidiary could have distributed to such Person as a dividend to such Person
that is attributable to the assets which are the subject of the Asset
Acquisition or asset sale or other disposition during the four fiscal quarters
occurring immediately prior to the date of testing) occurring during the four
quarter period immediately prior to the date of such testing, shall be given
effect to as if such asset sale or other disposition or Asset Acquisition
(including the incurrence, assumption or liability for any such Acquired
Indebtedness) had occurred on the first day of such four quarter period.

4

 

“Distributable
Amount to Consolidated Fixed Charge Coverage Ratio” means, at any time, the
ratio of the Distributable Amount on the last day of the most recently ended
fiscal quarter for which financial statements are available to Consolidated
Fixed Charges of the Company during the four full fiscal quarters (the “Four
Quarter Period”) ending prior to such time for which financial statements are
available. In addition to and without limitation of the foregoing, for purposes
of this definition, Consolidated Fixed Charges shall be calculated after giving
effect on a pro forma basis for the period of such calculation to: 

(1) the
incurrence or repayment of any Indebtedness of such Person or any of its
Restricted Subsidiaries (and the application of the proceeds thereof) giving
rise to the need to make such calculation and any incurrence or repayment of
other Indebtedness (and the application of the proceeds thereof), other than the
incurrence or repayment of Indebtedness in the ordinary course of business for
working capital purposes pursuant to working capital facilities, occurring
during the Four Quarter Period or at any time subsequent to the last day of the
Four Quarter Period and on or prior to the Transaction Date, as if such
incurrence or repayment, as the case may be (and the application of the proceeds
thereof), occurred on the first day of the Four Quarter Period; and

(2) any asset
sales or other dispositions or Asset Acquisitions (including, without
limitation, any Asset Acquisition giving rise to the need to make such
calculation as a result of such Person or one of its Restricted Subsidiaries
(including any Person who becomes a Restricted Subsidiary as a result of the
Asset Acquisition) incurring, assuming or otherwise being liable for Acquired
Indebtedness attributable to the assets which are the subject of the Asset
Acquisition or asset sale or other disposition during the Four Quarter Period)
occurring during the Four Quarter Period or at any time subsequent to the last
day of the Four Quarter Period and on or prior to the Transaction Date, as if
such asset sale or other disposition or Asset Acquisition (including the
incurrence, assumption or liability for any such Acquired Indebtedness) occurred
on the first day of the Four Quarter Period. If such Person or any of its
Restricted Subsidiaries directly or indirectly guarantees Indebtedness of a
third Person, the preceding sentence shall give effect to the incurrence of such
guaranteed Indebtedness as if such Person or any Restricted Subsidiary of such
Person had directly incurred or otherwise assumed such guaranteed Indebtedness.

5

 

For
purposes of this definition, Transaction Date means the date of the incurrence,
repayment, asset sale, disposition or Asset Acquisition, as applicable, giving
rise to the need to calculate the Distributable Amount to Consolidated Fixed
Charge Coverage Ratio. 

Furthermore,
in calculating “Consolidated Fixed Charges” for purposes of determining the
denominator of this “Distributable Amount to Consolidated Fixed Charge Coverage
Ratio”: 

(1) interest
on outstanding Indebtedness determined on a fluctuating basis as of the
Transaction Date and which will continue to be so determined thereafter shall be
deemed to have accrued at a fixed rate per annum equal to the rate of interest
on such Indebtedness in effect on the Transaction Date; and 

(2) notwithstanding
clause (1) above, interest on Indebtedness determined on a fluctuating basis, to
the extent such interest is covered by agreements relating to Interest Rate
Hedging Agreements, shall be deemed to accrue at the rate per annum resulting
after giving effect to the operation of such agreements. 

“Extraordinary
Dividends” means any dividends that are defined as Extraordinary Dividends
pursuant to Section 991.1405 of the Pennsylvania Insurance Statutes.

“Equity
Offering” means any underwritten public offering of Capital Stock (other than
Disqualified Capital Stock) of the Company pursuant to a registration statement
filed pursuant to the Securities Act or any private placement of Capital Stock
(other than Disqualified Capital Stock) of the Company (other than to any Person
who, prior to such private placement, was an Affiliate of the Company) which
offering or placement is consummated after the Issue Date. 

“GAAP”
means generally accepted accounting principles as in effect in the United States
of America as of the Issue Date. 

“Incur”
means issue, assume, guarantee or otherwise become liable for. 

“Independent
Financial Advisor” means a firm (which may be a broker-dealer): (1) which does
not, and whose directors, officers and employees or Affiliates do not, have a
direct or indirect financial interest in the Company or any of its Affiliates
(other than ownership of less than 5% of any class of publicly traded securities
of the Company or any of its Affiliates); and (2) which is otherwise independent
of the Company and qualified to perform the task for which it is to be engaged.

“Insurance
Law” means any applicable law, statute, rule, regulation, judgment or agreement
with any regulatory authority that regulates the provision of insurance or
reinsurance. 

“Insurance
Subsidiary” means any Subsidiary of the Company that is regulated as an
insurance company under applicable Insurance Laws or as an equivalent entity
under corresponding applicable foreign law or regulation, or otherwise holds
itself out as a provider of insurance or reinsurance. 

6

 

“Interest
Rate Hedging Agreements” means, with respect to the Company and its Restricted
Subsidiaries, the obligations of such Persons under (a) interest rate swap
agreements, interest rate cap agreements and interest rate collar agreements and
(b) other agreements or arrangements designed to protect any such Person or any
of its Subsidiaries against fluctuations in interest rates. 

“Invested
Assets” means, with respect to any Person that is an insurance company that
files statutory financial statements with any governmental authority, the amount
to be shown on the line item “Cash and Invested Assets” (or any equivalent line
item(s) setting forth the type of assets that would be reflected in the line
item “Cash and Invested Assets” on the Issue Date) on such insurance company’s
balance sheet included in its most recent statutory financial statements filed
with such governmental authority. 

“Investment”
means, with respect to any Person, all investments by such Person in other
Persons (including Affiliates) in the form of any direct or indirect advance,
loan (other than advances to customers in the ordinary course of business) or
other extension of credit (including by way of guarantee or similar arrangement,
but excluding any debt or extension of credit represented by a bank deposit
other than a time deposit) or capital contribution to (by means of any transfer
of cash or other property to others or any payment for property or services for
the account or use of others), or any purchase or acquisition of Capital Stock,
Indebtedness or other similar instruments issued by, such Person and all other
items that are or would be classified as investments on a balance sheet prepared
in accordance with GAAP; provided that
endorsements of negotiable instruments and documents in the ordinary course of
business shall not be deemed to be an Investment. 

For
purposes of Section 3.05 of this First Supplemental Indenture: 

(1) “Investment”
will include the portion (proportionate to the Company’s equity interest in a
Restricted Subsidiary to be designated as an Unrestricted Subsidiary) of the
fair market value of the net assets of such Restricted Subsidiary of the Company
at the time that such Restricted Subsidiary is designated an Unrestricted
Subsidiary; provided,
however, that
upon a redesignation of such Subsidiary as Restricted Subsidiary, the Company
will be deemed to continue to have a permanent “Investment” in an Unrestricted
Subsidiary in an amount (if positive) equal to (a) the Company’s “Investment” in
such Subsidiary at the time of such redesignation less (b) the
portion (proportionate to the Company’s equity interest in such Subsidiary) of
the fair market value of the net assets (as conclusively determined by the Board
of Directors of the Company in good faith) of such Subsidiary at the time that
such Subsidiary is so re-designated a Restricted Subsidiary; and, 

(2) any
property transferred to or from an Unrestricted Subsidiary will be valued at its
fair market value at the time of such transfer, in each case as determined in
good faith by the Board of Directors of the Company. 

If the
Company or any Restricted Subsidiary of the Company sells or otherwise disposes
of any Voting Stock of any Restricted Subsidiary of the Company such that, after
giving effect to any such sale or disposition, such entity is no longer a
Subsidiary of the Company, the Company shall be deemed to have made an
Investment on the date of any such sale or disposition equal to the fair market
value (as conclusively determined by the Board of Directors of the Company in
good faith) of the Capital Stock of such Subsidiary not sold or disposed of.

“Issue
Date” means the date on which the Debentures are originally issued.

“Maturity
Date” means September 30, 2022. 

“Net Cash
Proceeds” means with respect to any sale of Capital Stock, cash proceeds of such
sale net of attorneys’ fees, accountants’ fees, underwriting or placement
agents’ fees, discounts or commissions and brokerage, consultant and other fees
actually incurred in connection with such sale and net of taxes paid or payable
as a result thereof, as and where received. 

“Permitted
Investments” means: 

(1) Investments
by the Company or any Restricted Subsidiary in any Person that is or will become
immediately after such Investment a Wholly Owned Restricted Subsidiary or that
will merge or consolidate into the Company or a Wholly Owned Restricted
Subsidiary of the Company; 

(2) Investments
in the Company by any Restricted Subsidiary; provided that any Indebtedness
evidencing such Investment and held by a Restricted Subsidiary that is not a
guarantor of the Securities is unsecured and subordinated, pursuant to a written
agreement, to the Company’s obligations under the Securities and the Indenture;

7

 

(3) Investments
in cash and Cash Equivalents; 

(4) loans and
advances to employees, directors and officers of the Company and its Restricted
Subsidiaries in the ordinary course of business for bona fide business purposes
not in excess of two million dollars ($2,000,000) at any one time outstanding;

(5) Currency
Hedge Obligations and Interest Rate Hedging Agreements entered into in the
ordinary course of the Company’s or its Restricted Subsidiaries’ businesses and
otherwise in compliance with the Indenture; 

(6) Investments
in securities of trade creditors or customers received pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of such
trade creditors or customers or in good faith settlement of delinquent
obligations of such trade creditors or customers; 

(7) Investments
the payment for which is solely Qualified Capital Stock of the Company;

 

 

 

8

(8) Investments
by any Insurance Subsidiary constituting Invested Assets and made in compliance
with Insurance Laws, including Investments determined subsequent to acquisition
not to comply with applicable Insurance Laws so long as such noncompliance is
cured within 30 days of the chief investment officer of the Company or the
applicable Subsidiary becoming aware of such noncompliance; provided that (a) no
more than 15% of Invested Assets may be in persons that are Affiliates of the
Company and (b) if, as a result of any direct or indirect action by the Company
such Person becomes an Affiliate of the Company then any such Investment in such
Person pursuant to this clause (8) that was made prior to the date such Person
became an Affiliate of the Company shall be deemed to have been made on the date
and immediately after such Person became an Affiliate of the Company;

(9) any
Investment that replaces, refinances or refunds an Investment existing on the
Issue Date, provided that such Investment is in an amount that does not exceed
the amount replaced, refinanced or refunded and is made in the same Person as
the Investment replaced, refinanced or refunded; and 

(10) other
Investments not to exceed ten million dollars ($10,000,000) at any one time
outstanding. 

“Pooled
Companies” means (Pennsylvania Manufacturers’ Association Insurance Company,
Pennsylvania Manufacturers Indemnity Company and Manufacturers Alliance
Insurance Company). 

“Qualified
Capital Stock” means any Capital Stock that is not Disqualified Capital Stock.

“Ratio
Test” means the Distributable Amount to Consolidated Fixed Charge Coverage Ratio
of the Company is greater than 2.0 to 1.0. 

“Restricted
Subsidiary” means any Subsidiary of the Company that at the time of
determination is not an Unrestricted Subsidiary. 

“Securities”
means, for the purpose of this First Supplemental Indenture only, the
Debentures. 

“Unrestricted
Subsidiary” of any Person means: 

(1) any
Subsidiary of such Person that at the time of determination shall be or continue
to be designated an Unrestricted Subsidiary by the Board of Directors of such
Person in the manner provided below; and 

(2) any
Subsidiary of an Unrestricted Subsidiary. 

The Board
of Directors may designate any Subsidiary (including any newly acquired or newly
formed Subsidiary) to be an Unrestricted Subsidiary unless such Subsidiary owns
any Capital Stock of, or owns or holds any Lien on any property of, the Company
or any other Subsidiary that is not a Subsidiary of the Subsidiary to be so
designated; provided that: 

9

 

(1) The
Company certifies to the Trustee that such designation complies with Section
3.05 of this First Supplemental Indenture; and 

(2) each
Subsidiary to be so designated and each of its Subsidiaries has not at the time
of designation, and does not thereafter, create, incur, issue, assume, guarantee
or otherwise become directly or indirectly liable with respect to any
Indebtedness pursuant to which the lender has recourse to any of the assets of
the Company or any of its Restricted Subsidiaries. 

For
purposes of making the determination of whether any such designation of a
Subsidiary as an Unrestricted Subsidiary complies with Section 3.05 of this
First Supplemental Indenture, the portion of the fair market value of the net
assets of such Subsidiary of the Company at the time that such Subsidiary is
designated as an Unrestricted Subsidiary that is represented by the interest of
the Company and its Restricted Subsidiaries in such Subsidiary, in each case as
determined in good faith by the Board of Directors of the Company, shall be
deemed to be an Investment. Such designation will be permitted only if such
Investment would be permitted at such time under Section 3.05 of this First
Supplemental Indenture. As of the Issue Date, there are no Unrestricted
Subsidiaries. 

The Board
of Directors may designate any Unrestricted Subsidiary as a Restricted
Subsidiary only if: 

(1) immediately
after giving effect to such designation, the Ratio Test shall be met; and

(2) immediately
before and immediately after giving effect to such designation, no Default or
Event of Default shall have occurred and be continuing. 

Any such
designation by the Board of Directors of the Company shall be evidenced to the
Trustee by promptly filing with the Trustee a copy of a board resolution of the
Company giving effect to such designation and an Officer’s Certificate
certifying that such designation complied with the foregoing provisions.

“Wholly
Owned Restricted Subsidiary” means a Restricted Subsidiary all of the Capital
Stock of which (other than directors’ qualifying shares) is owned, directly or
indirectly, by the Company or one or more Subsidiaries of which all the
outstanding Voting Stock are owned by the Company or by any of its Wholly Owned
Restricted Subsidiaries. 

Section
1.02 Certain
Terms Defined in the Indenture. 

(a) Except as
may be provided in a Future Supplemental Indenture, for the benefit of the
Holders of all Securities, including the Debentures, Section 1.1 of the Original
Indenture shall be amended by adding the following new definitions:

“Class A
Common Stock” means the Company’s Class A Common Stock, par value $5.00 per
share. 

10

“Exchange
Act” means the Securities Exchange Act of 1934, as amended and the rules and
regulations of the Securities and Exchange Commission thereunder. 

“NYSE”
means The New York Stock Exchange, Inc. 

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

“Trading
Day” means a day during which trading in securities generally occurs on the NYSE
or, if the Class A Common Stock is not listed on the NYSE, on the principal
other national or regional securities exchange on which the Class A Common Stock
then is listed or, if the Class A Common Stock is not listed on a national or
regional securities exchange, on the National Association of Securities Dealers
Automated Quotation System or, if the Class A Common Stock is not quoted on the
National Association of Securities Dealers Automated Quotation System, on the
principal other market on which the Class A Common Stock is then traded.

(b) Except as
may be provided in a Future Supplemental Indenture, for the benefit of the
Holders of all Securities, including the Debentures, Section 1.1 of the Original
Indenture shall be amended by deleting the definition of “Original Issue
Discount Security” in its entirety and replacing such definition with the
following: 

“Original
Issue Discount Security” means a Security issued pursuant to this Indenture that
is treated as having original issue discount within the meaning of Section 1273
of the Internal Revenue Code of 1986, as amended, and Treasury Regulations
Section 1.1273-1(c)(a). 

(c) Definitions
of the following terms in this First Supplemental Indenture may be found in the
Sections of the Indenture indicated (or this First Supplemental Indenture where
indicated) as follows: 

	
       

      Term
	
      Defined
      in Section

	
      “Additional
      Collateral”
	
      Section
      1.03(a) of this First Supplemental Indenture

	
      “Affiliate
      Transaction”
	
      Section
      3.07 of this First Supplemental Indenture

	
      “A.M.
      Best”
	
      Section
      1.03(a) of this First Supplemental Indenture

	
      “Amendment”
	
      Section
      16.7

	
      “Applicable
      Stock”
	
      Section
      2.02(g)(ii) of this First Supplemental
Indenture

 

 

11

 

	
      “Asset
      Sale”
	
      Section
      13.2(b)

	
      “Asset
      Sale Purchase Date”
	
      Section
      13.2(b)

	
      “Asset
      Sale Purchase Notice”
	
      Section
      13.2(d)

	
      “Asset
      Sale Purchase Price”
	
      Section
      13.2(b)

	
      “Cash
      Amount”
	
      Section
      16.13(a)

	
      “Cash
      Settlement Averaging Period”
	
      Section
      16.13(a)

	
      “Cash
      Settlement Notice Period”
	
      Section
      16.13(a)

	
      “cash”
	
      Section
      13.3

	
      “Change
      of Control”
	
      Section
      13.2(a)

	
      “Change
      of Control Purchase Date”
	
      Section
      13.2(a)

	
      “Change
      of Control Purchase Notice”
	
      Section
      13.2(d)

	
      “Change
      of Control Purchase Price”
	
      Section
      13.2(a)

	
      “Collateral”
	
      Section
      1.03(a) of this First Supplemental Indenture

	
      “Collateral
      Companies”
	
      Section
      1.03(a) of this First Supplemental Indenture

	
      “Conversion
      Agent”
	
      Section
      2.02(c) of this First Supplemental Indenture

	
      “Conversion
      Obligation”
	
      Section
      16.13(a)

	
      “Conversion
      Price”
	
      Section
      2.02(h) of this First Supplemental Indenture

	
      “Conversion
      Rate”
	
      Section
      16.1(b)

	
      “Conversion
      Retraction Period”
	
      Section
      16.13(a)

	
      “Conversion
      Value”
	
      Section
      16.1(b)

	
      “Current
      Market Price”
	
      Section
      16.3(g)

 

 

12

 

 

	 	 
	
      “Debentures”
	
      Section
      2.01(a) of this First Supplemental Indenture

	
      “Depositary”
	
      Section
      2.01(a) of this First Supplemental Indenture

	
      “Distributed
      Assets”
	
      Section
      16.3(d)

	
      “Excess
      Amount”
	
      Section
      16.3(e)

	
      “Excess
      Tender Amount”
	
      Section
      16.3(f)

	
      “Ex-Dividend
      Time”
	
      Section
      16.1(d)

	
      “Expiration
      Time”
	
      Section
      16.3(f)

	
      “Fair
      Market Value”
	
      Section
      16.3(g)

	
      “First
      Supplemental Indenture”
	
      Recitals
      of this First Supplemental Indenture

	
      “Future
      Supplemental Indenture”
	
      Recitals
      of this First Supplemental Indenture

	
      “Indenture”
	
      Recitals
      of this First Supplemental Indenture

	
      “Measurement
      Period”
	
      Section
      16.1(b)

	
      “Non-Electing
      Share”
	
      Section
      16.4

	
      “Original
      Indenture”
	
      Recitals
      of this First Supplemental Indenture

	
      “Paying
      Agent”
	
      Section
      2.02(c) of this First Supplemental Indenture

	
      “Permitted
      Indebtedness”
	
      Section
      3.10 of this First Supplemental Indenture

	
      “Permitted
      Lien”
	
      Section
      3.10 of this First Supplemental Indenture

	
      “Purchase
      Date”
	
      Section
      13.1

 

 

13

 

 

	
       “Purchase
      Notice”
	
      Section
      13.1

	
      “Purchase
      Price”
	
      Section
      13.1

	
      “Record
      Date”
	
      Section
      16.3(g)

	
      “Reference
      Period”
	
      Section
      16.3(d)

	
      “Released
      Interest”
	
      Section
      1.04 of this First Supplemental Indenture

	
      “Sale
      Price”
	
      Section
      16.1(b)

	
      “Spin-Off”
	
      Section
      16.3(d)

	
      “Trigger
      Event”
	
      Section
      16.3(d)

 

Section
1.03  Grant
of Security Interest in Collateral and Additional Collateral. 

(a) The
Company does hereby grant to the Trustee, as trustee for the benefit of the
Holders of the Debentures, a first priority Lien and security interest, equal
and ratable with a Lien and security interest in favor of the trustee for the
holders of the Company’s 8.50% Monthly Income Senior Notes due 2018 and a Lien
and security interest in favor of the Trustee or other authorized representative
for any other secured Indebtedness issued in accordance with the terms of the
Indenture, in and to 20% of the outstanding Capital Stock of the Company’s
Significant Subsidiaries (such companies, collectively, the “Collateral
Companies”), and all rights and privileges of the Company with respect thereto,
including all dividends, distributions and other payments with respect thereto
and in and to all proceeds thereof (the “Collateral”) to have and to hold in
trust to secure the payment of principal of and premiums, if any, and interest
on, and any other amounts (including all fees, expenses, counsel fees and other
amounts, including fees and expenses of the Collateral Agent, due and owing to
the Trustee) owing in respect of the Debentures, equally and ratably with the
Company’s 8.50% Monthly Income Senior Notes due 2018 and any other secured
Indebtedness issued in accordance with the terms of the Indenture, without
prejudice, preference, priority or distinction, except as expressly provided in
the Indenture (and the indenture for the Company’s 8.50% Monthly Income Senior
Notes due 2018 and the indenture for any other secured Indebtedness issued in
accordance with the terms of the Indenture), and to secure performance by the
Company of all the Company’s obligations under the Indenture (equally and
ratably with the Company’s obligations with respect to the Company’s 8.50%
Monthly Income Senior Notes due 2018 and any other secured Indebtedness issued
in accordance with the terms of the Indenture), all as provided for in this

 

 

14

 

Indenture
(and the indenture for the Company’s 8.50% Monthly Income Senior Notes due 2018
and the indenture for any other secured Indebtedness issued in accordance with
the terms of the Indenture). Additionally, if the financial strength ratings of
the Pooled Companies from A.M. Best Company, Inc. (“A.M. Best”) are not at least
“A-” on December 31, 2005, or if the financial strength ratings of the Pooled
Companies from A.M. Best are reduced to below “B++” prior to December 31, 2005,
the Company does hereby grant to the Trustee, as trustee for the benefit of the
Holders of the Debentures, a first priority Lien and security interest, equal
and ratable with a Lien and security interest in favor of the trustee for the
holders of the Company’s 8.50% Monthly Income Senior Notes due 2018 and a Lien
or security interest in favor of the trustee or other authorized representative
for any other secured Indebtedness issued in accordance with the terms of the
Indenture, in and to the remaining outstanding Capital Stock of the Collateral
Companies and all rights and privileges of the Company with respect thereto,
including all dividends, distributions and other payments with respect thereto
and all proceeds thereof, (“Additional Collateral”) to have and to hold in trust
to secure the payment of principal of and premiums if any, and interest on, and
any other amounts (including all fees, expenses, counsel fees and other amounts,
including fees and expenses of the Collateral Agent, due and owing to the
Trustee) owing in respect of the Debentures, equally and ratably with the
Company’s 8.50% Monthly Income Senior Notes due 2018 and any other secured
Indebtedness issued in accordance with the terms of the Indenture, without
prejudice, preference, priority or distinction, except as expressly provided in
the Indenture (and the indenture for the Company’s 8.50% Monthly Income Senior
Notes due 2018 and the indenture for any other secured Indebtedness issued in
accordance with the terms of the Indenture), and to secure performance by the
Company of the Company’s obligations under this Indenture (equally and ratably
with the Company’s obligations with respect to the Company’s 8.50% Monthly
Income Senior Notes due 2018, any other secured Indebtedness issued in
accordance with the terms of the Indenture) with respect to the Debentures and
the Company’s 8.50% Monthly Income Senior Notes due 2018 and any other secured
Indebtedness issued in accordance with the terms of the Indenture, all as
provided for under the Indenture (and the indenture for the Company’s 8.50%
Monthly Income Senior Notes due 2018 and the indenture for any other secured
Indebtedness issued in accordance with the terms of the Indenture).

The
Trustee, as trustee on behalf of the Holders of the Debentures, acknowledges
this grant, accepts the trusts hereunder in accordance with the provisions
hereof and agrees to perform its duties herein required and agrees that subject
to the provisions of the Collateral Agent Agreement, the Trustee holds the
Collateral and the Additional Collateral in trust for the benefit of the Holders
of the Debentures. 

(b) The
Company will file, and the Trustee and the Collateral Agent are hereby
authorized to file, such financing statements and continuation statements, and
perform such acts necessary or desirable to perfect and maintain a first
priority security interests in the Collateral and the Additional Collateral
granted in Section 1.03(a) of this Indenture. In the case of any Additional
Collateral, the Company shall do all such things within 90 days of December 31,
2005 or such earlier date as the financial strength ratings of the Pooled
Companies from A.M. Best are reduced to below B++. 

(c) Each
Holder, by accepting a Debenture, agrees to all of the terms and provisions of
the Collateral Agent Agreement (including, without limitation, the provisions
providing for foreclosure and release of the Collateral and the Additional
Collateral) as the same may be in effect or may be amended from time to time in
accordance with the terms thereof and hereof, and authorizes and directs the
Trustee, acting through the Collateral Agent, to perform its obligations and
exercise its rights under the Collateral Agent Agreement in accordance
therewith; provided,
however, that if
any provisions of the Collateral Agent Agreement limit, qualify or conflict with
the duties imposed by the provisions of the Trust Indenture Act, the Trust
Indenture Act will control. 

 

 

15

 

(d) As more
fully set forth in, and subject to the provisions of, the Collateral Agent
Agreement, the Holders, and the Trustee and the Collateral Agent on behalf of
such Holders, will have rights in and to the Collateral and the Additional
Collateral that are subject to the rights that have been or may be created in
favor of the holders of other Indebtedness and obligations of the Company.

(e) As among
the Holders, the Collateral and the Additional Collateral shall be held for the
equal and ratable benefit of the Holders without preference, priority or
distinction of any thereof over any other. 

(f) In the
event the Trustee acts as Collateral Agent, the Trustee (i) shall not be deemed
to have breached its fiduciary duty as Trustee to the Holders as a result of the
performance of its duties as Collateral Agent to the extent it acts in
compliance with the Collateral Agent Agreement and (ii) shall not be liable to
the Holders for any such action or inaction. The rights and interests created
under this Indenture shall be subject to the terms of the Collateral Agent
Agreement. 

(g) The
Company will do or cause to be done all such acts and things as may be required
by the provisions of the Collateral Agent Agreement to which it is a party, to
assure and confirm to the Trustee and the Collateral Agent, the Liens on the
Collateral and the Additional Collateral contemplated by the Indenture and the
Collateral Agent Agreement to which it is a party, as from time to time
constituted, so as to render the same available for the security and benefit of
this Indenture and of the Debentures secured thereby, as applicable, according
to the intent and purposes herein and therein expressed. The Company will take
all actions required pursuant to the Indenture and the Collateral Agent
Agreement to cause the Liens created pursuant to the Indenture to be valid,
enforceable and perfected (except as expressly provided therein) Liens in and on
all the Collateral and the Additional Collateral in favor of the Collateral
Agent for the benefit of the Trustee and for the equal and ratable benefit of
the Holders of the Debentures, the holders of the Company’s 8.50% Monthly Income
Senior Notes due 2018 and the holders of any additional secured Indebtedness
issued in accordance with the terms of the Indenture and the Collateral Agent
Agreement. With respect to any proceeds that are cash or Cash Equivalents, the
Company shall deposit such proceeds into an account under the control of the
Collateral Agent in accordance with the provisions of the Collateral Agent
Agreement. 

 

Section
1.04 Release
of Security Interest in Collateral and Additional Collateral. 

(a) Additionally,
in the event of a sale or other disposition of Collateral (or Additional
Collateral) in compliance with the provisions of Section 3.04 of this First
Supplemental Indenture, upon satisfaction of the conditions set forth below, the
Liens securing the Debentures, the Company’s 8.50% Monthly Income Senior Notes
due 2018 and any other secured Indebtedness issued in accordance with the terms
of the Indenture will automatically terminate as to the assets sold on the date
of their sale and as to the Net Cash Proceeds at the close of business on the
Business Day immediately prior to any Asset Sale Purchase Date in accordance
with the provisions set forth below. 

16

 

The
Company shall have the right to obtain automatic release of items of Collateral
(and Additional Collateral) (the “Released Interest”) securing the Debentures
and the Company’s 8.50% Monthly Income Senior Notes due 2018 subject to the
provisions of Section 3.04 of this First Supplemental Indenture upon compliance
with the condition that the Company deliver to the Trustee and the Collateral
Agent the following: 

(i) a notice
from the Company requesting the release of the Released Interests: 

(1) Describing
the proposed Released Interest and certifying that the purchase price received
is at least equal to the fair market value of the Released Interest; and

(2) in the
event that any assets other than cash or Cash Equivalents comprise a portion of
the consideration received in such Asset Sale, specifically describing such
assets; 

(ii) an
Officers’ Certificate stating that: 

(1) (a) the
stated fair market value of such Asset Sale of Collateral does not include the
sale of assets other than the Released Interest and (b) such Asset Sale complies
with the terms and conditions of Section 3.04 of this First Supplemental
Indenture with respect to Asset Sales; 

(2) all Net
Cash Proceeds from the sale of the Released Interest will be applied pursuant to
the provisions of Section 13.2(b) of the Indenture; 

(3) all
conditions precedent in the Indenture relating to the release in question have
been complied with; and 

(4) no
Default or Event of Default has occurred or would occur immediately prior to or
immediately after such release; 

(iii) evidence
satisfactory to the Trustee that any consideration from the Asset Sale has been
pledged to secure the Debentures and the Company’s 8.50% Monthly Income Senior
Notes due 2018 and any other secured Indebtedness issued in accordance with the
terms of the Indenture in a manner that creates a perfected security interest
therein of the same priority as the Collateral sold; 

(iv) all
documentation necessary to evidence the grant to the Trustee (or any collateral
agent), on behalf of the Holders of the Debentures and perfection of a security
interest in and Lien (of the same priority as the Lien on the assets subject to
the Asset Sale) on all consideration other than Net Cash Proceeds received in
such Asset Sale, if any, equal and ratable with a security interest in and Lien
on such consideration in favor of the trustee for the holders of the Company’s
8.50% Monthly Income Senior Notes due 2018 and the trustee for any other secured
Indebtedness issued in accordance with the terms of the Indenture; and

17

(v) all
documentation required by the Trust Indenture Act prior to the release of
Collateral and the Additional Collateral by the Trustee. 

(b) Any
automatic release of items of Collateral (and Additional Collateral) securing
the Debentures and the Company’s 8.50% Monthly Income Senior Notes due 2018 and
any other secured Indebtedness issued in accordance with the terms of the
Indenture made in compliance with the provisions of this Section 1.04 and
subject to Section 3.04 of this First Supplemental Indenture shall not be deemed
to impair the security under this First Supplemental Indenture in contravention
of the provisions hereof. 

 

Section
1.05 Authorization
of Actions to be Taken by Collateral Agent Under the Collateral Agent
Agreement. 

The
Collateral Agent may (but shall not be obligated to), in its sole discretion and
without the consent of the Holders, on behalf of the Trustee and the Holders,
take all actions it deems necessary or appropriate in order to (a) enforce any
of the terms of the Collateral Agent Agreement and (b) collect and receive any
and all amounts payable in respect of the obligations of the Company hereunder.
The Trustee, directly or through the Collateral Agent, shall have the power to
institute and to maintain such suits and proceedings as it may deem expedient to
prevent any impairment of the Collateral and the Additional Collateral by any
acts that may be unlawful or in violation of the Collateral Agent Agreement or
this Indenture, and such suits and proceedings as the Trustee may deem expedient
to preserve or protect its interests and the interests of the Holders in the
Collateral and the Additional Collateral (including power to institute and
maintain suits or proceedings to restrain the enforcement of or compliance with
any legislative or other government enactment, rule or order that may be
unconstitutional or otherwise invalid if the enforcement of, or compliance with,
such enactment, rule or order would impair the security interest hereunder or be
prejudicial to the interests of the Holders or of the Trustee). 

 

Section
1.06 Authorization
of Receipt of Funds by the Trustee Under the Collateral Agent
Agreement. 

The
Trustee, directly or through Collateral Agent, is authorized to receive any
funds for the benefit of the Holders distributed under the Collateral Agent
Agreement, and to make further distributions of such funds to the Holders
according to the provisions of this Indenture and the Collateral Agent
Agreement. 

 

Section
1.07 Authorization
of Trustee to Enter into the Collateral Agent Agreement. 

The
Trustee, hereby agrees that it shall, upon the written request of the Company,
enter into the Collateral Agent Agreement appointing a Collateral Agent to hold
and enforce rights against the Collateral and Additional Collateral on behalf of
the Trustee, the trustee for the Company’s 8.50% Monthly Income Senior Notes due
2018 and the Trustee or authorized representative of any other secured
Indebtedness issued in accordance with the terms of the Indenture. The Trustee
and the Company may enter into amendments to the Collateral Agent Agreement
without the consent of the Holders; provided, however, that the consent of the
Holders shall be required for any amendment that would adversely affect the
Holders’ rights in the Collateral or Additional Collateral. 

18

 

ARTICLE
II

 

6.50%
Senior Secured Convertible Debentures

Section
2.01 Establishment. 

(a) There is
hereby established a new series of Securities to be issued under the Indenture,
to be designated as the Company’s 6.50% Senior Secured Convertible Debentures
due September 30, 2022 (the “Debentures”). 

There are
to be authenticated and delivered Debentures, limited in aggregate principal
amount of $84,140,000, and no further Debentures shall be authenticated and
delivered except as provided by Section 2.3, 3.5, 3.6, 9.5 or 11.7 and Article
13 of the Original Indenture. The Debentures shall be issued in definitive fully
registered form. 

The
Debentures shall be issued in the form of one or more global Securities in
substantially the form set out in Exhibit
A hereto.
The Depositary with respect to the Debentures shall be The Depository Trust
Company. 

The form
of the Trustee’s Certificate of Authentication for the Debentures shall be in
substantially the form set forth in Section 2.2 of the Original Indenture.

Each
Debenture shall be dated the date of authentication thereof. 

(b) Denominations. The
Debentures may be issued in denominations of $1,000, or any integral multiple
thereof. 

(c) Global
Securities. The
Debentures will be issued in the form of one or more global Securities
registered in the name of the Depositary or its nominee. Except under the
limited circumstances described below, Debentures represented by the global
Security will not be exchangeable for, and will not otherwise be issuable as,
Debentures in definitive form. The global Securities described above may not be
transferred except by the Depositary to a nominee of the Depositary or by a
nominee of the Depositary to the Depositary or another nominee of the Depositary
or to a successor Depositary or its nominee. 

Owners of
beneficial interests in such a global Security will not be considered the
Holders thereof for any purpose under the Indenture except Section 10.4, and no
global Security representing a Debenture shall be exchangeable, except for
another global Security of like denomination and tenor to be registered in the
name of the Depositary or its nominee or to a successor Depositary or its
nominee. The rights of Holders of such global Security shall be exercised only
through the Depositary. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Trustee or any agent of the Company or the Trustee from
giving effect to any written certification, proxy or other authorization
furnished by the Depositary or impair, as between the Depositary and its
participants, the operation of customary practices of such Depositary governing
the exercise of the rights of a holder of a beneficial interest in any global
Security. 

19

 

A global
Security shall be exchangeable for Debentures registered in the names of Persons
other than the Depositary or its nominee only as provided by Section 3.5 of the
Original Indenture. Any global Security that is exchangeable pursuant to the
preceding sentence shall be exchangeable for Debentures registered in such names
as the Depositary shall direct. 

(d) Interest
Payment Date and Record Date. The
Interest Payment Date for the Debentures is March 30 and September 30 of each
year, beginning March 30, 2005. Interest shall be computed on the basis of a
360-day year consisting of twelve 30-day months. The Regular Record Date with
respect to each Interest Payment Date is the close of business on the
15th calendar
day preceding such Interest Payment Date. 

(e) Definitive
Debentures.
Debentures issued in certificated form shall be substantially in the form of
Exhibit
A attached
hereto, but without including the text referred to therein as applying only to
global Debentures. 

(f) Transfer. No
service charge will be made for any registration of transfer or exchange of
Debentures, but payment will be required of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection therewith.

Section
2.02 Terms
of the Debentures. 

The
following terms relating to the Debentures are hereby established: 

(a) Stated
Maturity. The
entire outstanding principal of the Debentures shall be due and payable, unless
accelerated, redeemed or required to be repurchased pursuant to the Indenture,
on September 30, 2022. 

(b) Interest.

(i) The rate
at which the Debentures shall bear interest shall be 6.50% per annum; the date
from which interest shall accrue on the Debentures shall be the Issue Date, or
the most recent Interest Payment Date to which interest has been paid or
provided for. Interest shall be paid in cash. No contingent interest will be
paid with respect to the Debentures. 

(ii) If the
Company elects to redeem, or the Holders elect to require the Company to
repurchase, the Debentures on a date that is after the Regular Record Date and
prior to the corresponding Interest Payment Date, the Company will pay accrued
and unpaid interest, if any, on the Debentures to, but not including, the
applicable Redemption Date, Purchase Date or Change of Control Purchase Date, as
the case may be, to the holder of record on the Regular Record Date.

20

 

Except as
provided below, if any Debentures are surrendered for conversion on any date
other than an Interest Payment Date, the Holder of such Debentures will not be
entitled to receive any interest, if any, that has accrued on such Debentures
since the prior Interest Payment Date. By delivery to the Holder of the number
of shares of Class A Common Stock or other consideration issuable upon
conversion in accordance with Article 16 of the Indenture (as amended by Section
2.11 of this First Supplemental Indenture), any accrued and unpaid interest on
such Debentures will be deemed to have been paid in full. 

All
Holders agree, by their acceptance of a Debenture, that if a Holder of
Debentures converts on a date after a Regular Record Date for an interest
payment but prior to the corresponding Interest Payment Date, the Holder of such
Debentures (subject to the right of Holders of record on the immediately
preceding Regular Record Date to receive interest due on an Interest Payment
Date that is on or prior to the Redemption Date) will receive on that Interest
Payment Date accrued and unpaid interest on such Debentures, but, at the time
the Holder surrenders such Debentures for conversion, the Holder must pay the
Company the interest that has accrued and will be paid on such Interest Payment
Date. No such payment need be made with respect to Debentures that will be
redeemed by the Company after a Regular Record Date but prior to the
corresponding Interest Payment Date. 

(iii) If the
principal amount of or any portion of such principal amount of, or any interest,
if any, on, any Debentures is not paid when due (whether upon acceleration
pursuant to Section 5.2 of the Indenture or on the Stated Maturity or on
Redemption Date, Purchase Date or Change of Control Purchase Date), then in each
such case the overdue amount shall, to the extent permitted by law, bear
interest at the applicable interest rate, compounded semi-annually, which
interest shall accrue from the date of such overdue amount was originally due to
the date of payment of such amount, including interest thereon, has been made or
duly provided for. All such interest shall be payable on demand. 

(c) Paying
Agent and Conversion Agent. The
Company shall maintain an office or agency where Debentures may be presented for
purchase or payment (“Paying Agent”) and an office or agency where Debentures
may be presented for conversion (“Conversion Agent”). The Company may have one
or more additional Paying Agents and one or more additional Conversion Agents.

The
Company shall enter into an appropriate agency agreement with any Paying Agent
or Conversion Agent (other than the Trustee). The agreement shall implement the
provisions of this Indenture that relate to such agent. If the Company fails to
maintain a Paying Agent or Conversion Agent, the Trustee shall act as such and
shall be entitled to appropriate compensation therefor pursuant to Section 6.7
of the Indenture. The Company or any Subsidiary or an Affiliate of any of them
may act as Paying Agent or Conversion Agent. 

21

 

The
Company initially appoints the Trustee as Conversion Agent and Paying Agent in
connection with the Debentures. The Trustee shall be entitled to appropriate
compensation for acting in such capacities. 

(d) Place
of Payment.

(i) The Place
of Payment for the Debentures and the place or places where the Debentures may
be surrendered for registration of transfer, exchange, repurchase, redemption or
conversion and where notices may be given to the Company in respect of the
Debentures is at the Corporate Trust Office of the Trustee or such other office
or agency of the Company as may be designated for such purpose. Payment of
principal and interest, if any, on the Debentures will be in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts (or shares as provided above or a
combination of cash and those shares). 

(ii) The
Company will pay principal on (1) global Debentures to the Depositary in
immediately available funds and (2) any definitive Debentures in immediately
available funds at the Company’s office or agency in New York City, which
initially will be the Place of Payment as provided in Section 10.2 of the
Indenture. 

(iii) The
Company will pay interest, if any, on (1) global Debentures to the Depositary in
immediately available funds, (2) any definitive Debentures having an aggregate
principal amount of $5,000,000 or less by check mailed to the Holders of such
Debentures, and (3) any definitive Debentures having an aggregate principal
amount of more than $5,000,000 by wire transfer in immediately available funds
if requested by the Holders of such Debentures. At Stated Maturity the Company
will pay interest on (1) any definitive Debentures at the Company’s office or
agency in New York City, which initially will be the Place of Payment as
provided in Section 10.2 of the Indenture and (2) or global Debenture to the
Depositary in immediately available funds. 

(e) Redemption.

(i) At the
Option of the Company. At any
time from October 1, 2008, the Company, at its option, may redeem in principal
amounts of $1,000 or integral multiples of $1,000 the Debentures for cash as a
whole, or from time to time in part, at a Redemption Price of 114% of the
principal amount of the Debentures, plus accrued and unpaid interest, if any,
to, but excluding, the Redemption Date: 

(ii) Mandatory
Redemption with Extraordinary Dividends. From
January 1, 2006 to and including December 31, 2006, in the event the
Company receives any Extraordinary Dividends from any of its subsidiaries, the
Company shall redeem the Debentures and any other series of Securities issued
under the Indenture having substantially identical terms to the Debentures pro
rata in principal amounts of $1,000 or integral multiples of $1,000 with 50% of
the amount of such dividends for cash at a Redemption Price of 110% of the
principal amount of the Debentures plus accrued unpaid interest, if any, to the
Redemption Date. The aggregate principal amount of the Debentures plus any other
series of Securities issued under the Indenture having substantially identical
terms to the Debentures to be redeemed pursuant to this Section 2.02(e)(ii)
shall not exceed $35,000,000. 

22

 

(iii) Additional
Terms of Redemption. For
redemptions pursuant to clause (i) above, the Company shall notify the Trustee
and the Holders of any redemption at least 30 but not more than 60 days prior to
any redemption by mail. For redemptions pursuant to clause (ii) above, the
Company shall notify the Trustee and the Holders by mail no later than five (5)
days after the receipt by it of an Extraordinary Dividend from any Subsidiary
(and at least 20 Business Days, but no more than 45 Business Days prior to the
Redemption Date), which notice shall specify the amount of the Extraordinary
Dividend and the Redemption Date. All notices of redemptions will contain
information concerning the premium, if any, payable with respect to the
applicable redemption. No less than one (1) Business Day prior to the Redemption
Date specified in the Company’s notice, the Holders shall provide the Company
with notice of their election to receive any premium payable with respect to the
applicable redemption in the Applicable Stock. Such notice will contain the
information set forth in Section 13.1(1)(A), (B) and (C) of the Original
Indenture (as amended by Section 2.09 of this First Supplemental Indenture). Any
Holder who fails to provide a notice of election to receive the applicable
premium in shares of the Company’s Class A Common Stock shall be deemed to have
elected to receive cash in respect of any applicable premium for all Debentures
subject to the redemption in which a premium is payable. The Company shall
provide the Trustee with copies of the Holders’ notices of election immediately
upon receipt.

Debentures
or portions thereof to be redeemed as of a Redemption Date will be convertible
by the Holders of such Debentures until the close of business on the second
Business Day prior to the Redemption Date. 

If the
Company does not redeem all of the Debentures, the Trustee shall select the
Debentures to be redeemed in principal amounts of $1,000 or integral multiples
thereof, by lot or on a pro rata basis. If any Debentures are to be redeemed in
part only, the Company shall issue a Security or Debenture with a principal
amount equal to the unredeemed principal portion thereof. If a portion of a
Holder’s Securities or Debentures is selected for partial redemption and the
Holder converts a portion of its Securities or Debentures the converted portion
shall be deemed to be taken from the portion selected for redemption.

(f) Repurchase.

(i) Upon a
Change of Control, the Debentures shall be purchased by the Company, at the
option of the Holder thereof, at a price equal to the price (which, in this
context shall be the “Change of Control Purchase Price”) set forth below and in
Section 7 of the Debentures and in accordance with the provisions of this
Indenture, including, without limitation, Article 13 (as amended by Section 2.09
of this First Supplemental Indenture): 

 

23

 

	
       

      Purchase
      Date
	
      Purchase Price

      as % of Principal

	
      From
      the date of issuance to and including September 30, 2005
	
      101%

	
      From
      October 1, 2005 to and including September 30, 2006
	
      103%

	
      From
      October 1, 2006 to and including September 30, 2007
	
      106%

	
      From
      October 1, 2007 to and including September 30, 2008
	
      110%

	
      From
      October 1, 2008 to and including June 30, 2009
	
      114%

	
      From
      July 1, 2009 to and including September 30, 2022
	
      101%

 

(ii) Upon an
Asset Sale, the Debentures shall be repurchased by the Company, at the option of
the Holder thereof, at a price equal to the price (which, in this context shall
be the “Asset Sale Purchase Price”) set forth below and in accordance with the
provisions of the Indenture, including, without limitation, Article 13 (as
amended by Section 2.09 of this First Supplemental Indenture). 

 

	
       

      Purchase
      Date
	
      Purchase Price

      as % of Principal

	
      From
      the date of issuance to and including September 30, 2005
	
      101
      %

	
      From
      October 1, 2005 to and including September 30, 2006
	
      103
      %

	
      From
      October 1, 2006 to and including September 30, 2007
	
      106
      %

	
      From
      October 1, 2007 to and including September 30, 2008
	
      110
      %

	
      From
      October 1, 2008 to and including June 30, 2009
	
      114
      %

	
      From
      July 1, 2009 to and including September 30, 2022
	
      100
      %

 

(iii) On June
30, 2009 the Debentures shall be repurchased by the Company, at the option of
the Holders, at the Repurchase Price of 114% of the principal amount of the
Debentures to be repurchased, plus accrued and unpaid interest, if any, to the
Purchase Date and in accordance with the provisions of the Indenture including,
without limitation, Article 13 (as amended by Section 2.09 of this First
Supplemental Indenture) . 

(g) Premium
Payable in Stock at Option of the Holder.

(i) In
connection with any premium (the portion of the consideration payable in excess
of principal amount) payable to a Holder of the Debentures in connection with
redemptions pursuant to Section 2.02(e)(i) and (ii) of this First Supplemental
Indenture and repurchases pursuant to Section 2.02(f) of this First Supplemental
Indenture which, in each case, results from an event or action occurring on or
prior to June 30, 2009, each Holder will have the option to elect to receive
such premium in cash or in shares of Applicable Stock (defined below). For the
purposes of calculating the number of shares issuable to any Holder of the
Debentures who elects to exercise such option, the shares of Applicable Stock
will be valued at $8.00 per share as adjusted pursuant to Section 16.3 of the
Indenture 

 

 

24

 

(as
amended by Section 2.11 of this First Supplemental Indenture) as if such $8.00
were the Conversion Price. In lieu of issuing any fractional shares of the
Applicable Stock, the Company shall pay the remainder of the premium in cash as
if the cash value of a full share were $8.00. In the event any premium is
payable to a Holder in Applicable Stock, the Company shall, to the extent
applicable, comply with the tender offer rules and all other applicable laws in
accordance with Section 13.7 of the Indenture (as amended by 2.09 of this First
Supplemental Indenture). 

(ii) The
Company shall designate, in the notice delivered pursuant to Sections
2.02(e)(iii) and 2.02(f) of this First Supplemental Indenture and Sections 13.1
and 13.2 of the Indenture (as amended by Section 2.09 of this First Supplemental
Indenture), the number of shares of Applicable Stock (defined below) payable for
any applicable premium; provided that the Company will pay cash for fractional
interests as set forth below. 

“Applicable
Stock” means (i) the Class A Common Stock and (ii) in the event of a merger,
consolidation or other similar transaction involving the Company that is
otherwise permitted hereunder in which the Company is not the surviving
corporation, the common stock, ordinary shares or American Depositary Shares of
such surviving corporation or its direct or indirect parent corporation.

(iii) On each
Redemption Date, Change of Control Purchase Date, Asset Sale Purchase Date or
Purchase Date, in each case, resulting from an event or action occurring on or
prior to June 30, 2009, any applicable premium shall be paid, at the option of
the Holder, in shares of Applicable Stock equal to the quotient obtained by
dividing (i) the aggregate amount of the premium that a Holder has elected to be
paid in shares of Applicable Stock by (ii) $8.00 as adjusted pursuant to Section
16.3 of the Indenture (as amended by Section 2.11 of this First Supplemental
Indenture) as if such $8.00 value were the Conversion Price. 

The
Company will not issue fractional shares of Applicable Stock in payment of any
premium. Instead, the Company will pay cash equal to $8.00 times such fraction
for all fractional shares. 

The
Company’s issuance of shares of Applicable Stock shall be conditioned upon:

(i) the
registration of such shares of Applicable Stock under the Securities Act and the
Exchange Act, in each case, if required; 

(ii) such
shares of Applicable Stock being first listed on a national securities exchange
or such shares of Applicable Stock being first quoted in an inter-dealer
quotation system of any registered United States national securities
association; 

25

 

(iii) any
necessary qualification or registration under applicable state securities laws
or the availability of an exemption from such qualification and registration;
and 

(iv) the
receipt by the Trustee of an Officer’s Certificate and an Opinion of Counsel
each stating that (A) the terms of the issuance of the shares of Applicable
Stock are in conformity with this Indenture and (B) the shares of Applicable
Stock to be issued by the Company in payment of the applicable premium in
respect of Debentures have been duly authorized and, when issued and delivered
pursuant to the terms of this Indenture in payment of the applicable premiums,
in respect of the Debentures, will be validly issued, fully paid and
non-assessable and, to the best of such counsel’s knowledge, free from
preemptive rights, and, in the case of such Officer’s Certificate, setting forth
the number of Applicable Stock to be issued and stating that all applicable
conditions have been satisfied and, in the case of such Opinion of Counsel,
stating that the conditions in clauses (i) through (iii) above have been
satisfied. 

The
Company hereby covenants to satisfy the foregoing conditions. 

Upon
determination of the actual number of shares of Applicable Stock to be issued,
the Company shall disseminate a press release through Dow Jones & Company,
Inc. or Bloomberg Business News containing this information or publish the
information through such other public medium as the Company may use at that
time. 

(i) All
shares of Class A Common Stock delivered in respect of any applicable premium
shall be newly issued shares or treasury shares, shall be duly authorized,
validly issued, fully paid and nonassessable, and shall be free from preemptive
rights and free of any Lien or adverse claim. 

(ii) If a
Holder is paid in shares of Applicable Stock, the Company shall pay any
documentary, stamp or similar issue or transfer tax due on such issue of
Applicable Stock. However, the Holder shall pay any such tax which is due
because the Holder requests the Applicable Stock to be issued in a name other
than the Holder’s name. The Paying Agent may refuse to deliver the certificates
representing the shares of Applicable Stock being issued in a name other than
the Holder’s name until the Paying Agent receives a sum sufficient to pay any
tax which will be due because the shares of Applicable Stock are to be issued in
a name other than the Holder’s name. Nothing herein shall preclude any income
tax withholding required by law or regulations. 

(h) Conversion. The
Debentures shall be convertible at any time prior to the Stated Maturity from
and after the date of issuance in accordance with the provisions of the
Indenture, including, without limitation, Article 16 (as amended by Section 2.11
of this First Supplemental Indenture). 

“Conversion
Price” means initially $16.368, subject to adjustment as set forth in Article 16
of the Indenture (as amended by Section 2.11 of this First Supplemental
Indenture). 

 

26

Section
2.03 Payment
of Interest; Interest Rights Reserved. 

Except as
may be provided in a Future Supplemental Indenture, for the sole benefit of the
Holders of the Debentures, Section 3.7 of the Original Indenture shall be
amended by replacing the final paragraph of Section 3.7 of the Original
Indenture with the following paragraph: 

In the
event Securities of any series or a portion thereof is surrendered for
conversion or exchange during a period after the Regular Record Date immediately
preceding any Interest Payment Date and on or prior to such Interest Payment
Date (unless such Securities or portion thereof which is being surrendered for
conversion or exchange has been called for redemption on a Redemption Date
within such period), the Company will pay on such Interest Payment Date or
payment date, as the case may be, interest due and payable on such Interest
Payment Date or payment date, as the case may be, notwithstanding such
conversion or exchange, and the Company will pay such interest (whether or not
punctually paid or duly provided for) to the Person in whose name such
Securities (or one or more Predecessor Securities) are registered at the close
of business on such Regular Record Date; provided, however, that such payment of
interest shall be subject to the payment to the Company by the Holder of such
Securities or portion thereof surrendered for conversion or exchange (such
payment to accompany such surrender) of an amount equal to the amount of such
interest, in accordance with Section 16.9 hereof. Except as otherwise provided
in the immediately preceding sentence, in the case of any Security which is
converted, interest due and payable after the date of conversion of such
Security shall not be payable. 

Section
2.04 Events
of Default; Acceleration of Maturity. 

(a) Except as
may be provided by a Future Supplemental Indenture, for the benefit of the
Holders of all Securities, including the Debentures, Section 5.1 of the Original
Indenture shall be amended by deleting Subsections (1) and (2) thereof in their
entirety and replacing such Subsections with new Subsections (1) and (2) and
adding new Subsections (9), (10), (11), (12) and (13) to Section 5.1 thereof,
and changing Subsection (9) of Section 5.1 thereof to Subsection (14), as
follows: 

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

(2) default
in the payment (including any premiums payable in stock) of the principal of (or
premium, if any, on), or Redemption Price, Purchase Price, Asset Sale Purchase
Price or Change of Control Purchase Price of, any Security of that series when
it becomes due and payable at its Maturity, at the Redemption Date, at the
Purchase Date, Asset Sale Purchase Date or at the Change of Control Purchase
Date, as applicable; or 

(9) failure
to convert any Security of that series into shares of the Company’s Class A
Common Stock or cash as provided herein upon exercise of a Holder’s conversion
right, unless such failure is cured within five days after written notice of
default is given to the Company by the Trustee or to the Company and the Trustee
by the holder of such Security; or 

27

(10) a breach
of a covenant set forth in Sections 3.04, 3.06 or 3.08 of this First
Supplemental Indenture. 

(11) the Liens
created by the Indenture and the Collateral Agent Agreement shall at any time
not constitute valid and perfected Liens on the Collateral and the Additional
Collateral intended to be covered thereby (to the extent perfection by filing,
registration, recordation or possession is required herein or therein) in favor
of the Collateral Agent, free and clear of all other Liens (other than Permitted
Liens), or, except for expiration in accordance with its terms or amendment,
modification, waiver, termination or release in accordance with the terms of
this Indenture and the Collateral Agent Agreement shall for whatever reason be
terminated or cease to be in full force and effect; 

(12) failure
of the Company to make, when due, any transfer, delivery, pledge, assignment or
grant of Collateral or the Additional Collateral required to be made by it;

(13) the
delivery by the trustee for the Company’s 8.50% Monthly Income Senior Notes due
2018 and/or authorized representative of any other secured Indebtedness issued
pursuant to the terms of the Indenture to the Collateral Agent of a notice
requiring that the Collateral Agent commence proceedings to realize on the
Collateral or the Additional Collateral. 

(b) Except as
may be provided by a Future Supplemental Indenture, for the benefit of all
Holders of the Securities, including the Debentures, the first and second
paragraphs of Section 5.2 are amended by deleting the phrase “specified in
clause (7) or (8)” and replacing it with the phrase “specified in clause (7),
(8), or (13).” 

 

Section
2.05 Supplemental
Indentures with Consent of Holders. 

Except as
may be provided by a Future Supplemental Indenture, for the benefit of the
Holders of all Securities, including the Debentures, Section 9.2 of the Original
Indenture shall be amended by deleting Subsection (1) thereof in its entirety
and replacing such Subsection with a new Subsection (1) and adding new
Subsections (16) and (17) to Section 9.2 as follows: 

(1) change
the Stated Maturity of the principal of, or any premium or installment of
interest, on or any Additional Amounts or Redemption Date with respect to, any
Security, or reduce the principal amount thereof or the rate (or modify the
calculation of such rate) of interest, thereon or any Additional Amounts with
respect thereto, or any amount payable upon the redemption thereof or otherwise,
or change the obligation of the Company to pay Additional Amounts pursuant to
Section 10.4 (except as contemplated by Section 8.1(1) and permitted by Section
9.1(1)), or reduce the amount of the principal of an Original Issue Discount
Security that would be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 5.2 or the amount thereof provable in
bankruptcy pursuant to Section 5.4, or adversely affect the right of repayment
at the option of any Holder as contemplated by Article 13, or change the Place
of Payment, Currency in which the principal of, any premium or interest, on, or
any Additional Amounts with respect to any Security is payable, or impair the
right to institute suit for the enforcement of any such payment on or after the
Stated Maturity thereof (or, in the case of redemption, on or after the
Redemption Date or, in the case of repayment at the option of the Holder, on or
after the Asset Sale Purchase Date, the Change of Control Purchase Date or
Purchase Date, as applicable), or 

28

 

(16) adversely
affect the existence, nature, extent or priority of the Lien of the Holders of
the Debentures or the holders of the 8.50% Monthly Income Senior Notes due 2018
or the holders of other secured Indebtedness secured by the Collateral (or
Additional Collateral) on the Collateral (or Additional Collateral) as provided
in Section 1.03 of this First Supplemental Indenture; or 

(17) modify
any of the provisions of this section 9.2. 

 

Section
2.06 Reserved. 

 

Section
2.07 Selection
by Trustee of Securities to be Redeemed. 

Except as
may be provided by a Future Supplemental Indenture, for the sole benefit of the
Holders of the Debentures, Section 11.3 of the Original Indenture shall be
amended by adding a new sentence at the end thereof as follows: 

“If the
Trustee selects a portion of a Holder’s Securities of any series for partial
redemption and the Holder converts a portion of the same Securities, the
converted portion will be deemed to be from the portion selected for
redemption.” 

 

Section
2.08 Reserved. 

 

Section
2.09 Purchase
at the Option of Holders. 

For the
sole benefit of the Holders of the Debentures, Article 13 of the Original
Indenture shall be replaced in its entirety with the following: 

ARTICLE
13 

PURCHASE
AT THE OPTION OF HOLDERS

SECTION
13.1. Purchase
of Debentures by the Company at Option of the Holder.

(a) General.
Debentures shall be purchased by the Company at the option of the Holder as set
forth in Section 2.02(f)(iii) of this First Supplemental Indenture (in this
context, the “Purchase Date”), at a purchase price equal to the price payable as
set forth in such Section 2.02(f)(iii) (which, in this context shall be the
“Purchase Price”), subject to the provisions of Section 3.04 of the First
Supplemental Indenture. Purchases of Debentures hereunder shall be made, at the
option of the Holder thereof, upon: 

(1) delivery
to the Paying Agent by the Holder of a written notice of purchase (a “Purchase
Notice”) during the period beginning at any time from the opening of business on
the date that is 20 Business Days prior to the relevant Purchase Date until the
close of business on the third Business Day prior to such Purchase Date stating:

 

29

 

 

	 	
      (A)
	
      the
      certificate number of the Debenture which the Holder will deliver to be
      purchased or the appropriate Depositary procedures if Debentures in
      certificated form have not been issued, 

	 	
      (B)
	
      the
      portion of the principal amount of the Debenture which the Holder will
      deliver to be purchased, which portion must be in principal amounts of
      $1,000 or an integral multiple of $1,000, 

	 	
      (C)
	
      whether
      the Holder elects to receive any premium payable with respect to such
      purchase in cash or shares of Applicable Stock,

	 	
      (D)
	
      that
      such Debenture shall be purchased by the Company as of the Purchase Date
      pursuant to the terms and conditions specified in this Indenture, and
      

(2) delivery
of such Debenture to the Paying Agent at any time after delivery of the Purchase
Notice (together with all necessary endorsements) at the offices of the Paying
Agent, such delivery being a condition to receipt by the Holder of the Purchase
Price therefor; provided, however, that such Purchase Price shall be so paid
pursuant to this Section 13.1 only if the Debenture so delivered to the Paying
Agent shall conform in all material respects to the description thereof in the
related Purchase Notice. 

In the
event a Holder is making an election to receive any applicable premium in
Applicable Stock, notice of such election may be delivered to the Paying Agent
on a date that is no less than one (1) Business Day prior to the Purchase Date
pursuant to 2.02(g).

If a
Holder, in such Holder’s Purchase Notice and in any written notice of withdrawal
delivered by such Holder pursuant to the terms of Section 13.4, fails to
indicate such Holder’s choice with respect to the election set forth in clause
(C) of this Section 13.1(a)(1), and does not provide a subsequent notice of its
election to receive the premium in Applicable Stock to the Company and the
Paying Agent no later than one (1) Business Day before the Purchase Date, such
Holder shall be deemed to have elected to receive cash in respect of any
applicable premium for all Debentures subject to such Purchase Notice.

(b) No later
than 30 Business Days prior to the Purchase Date, the Company shall mail a
written notice by first class mail to the Trustee and to each Holder (and to
beneficial owners as required by applicable law). The notice shall include a
form of Purchase Notice to be completed by the Holder and shall briefly state,
as applicable: 

(1) that the
Company has the obligation to purchase the Debentures at the option of the
Holders; 

(2) the date
by which the Purchase Notice pursuant to this Section 13.1 must be delivered to
the Paying Agent in order for a Holder to exercise the repurchase rights;

(3) the
Purchase Date; 

30

 

(4) the
Purchase Price; 

(5) the name
and address of the Paying Agent and the Conversion Agent; 

(6) the
Conversion Rate and any adjustments thereto; 

(7) that the
Debentures as to which a Purchase Notice has been given may be converted if they
are otherwise convertible pursuant to Article 16 hereof only if the Purchase
Notice has been withdrawn in accordance with the terms of this Indenture;

(8) that the
Debentures must be surrendered to the Paying Agent to collect payment;

(9) that the
Purchase Price for any Debenture as to which a Notice has been duly given and
not withdrawn will be paid promptly following the later of the Purchase Date and
the time of surrender of such Debenture as described in (9); 

(10) the
procedures the Holder must follow to exercise rights under this Section 13.1;

(11) the
conversion rights of the Debentures; 

(12) the
procedures for withdrawing a Purchase Notice; 

(13) the
number of shares of Applicable Stock payable for any applicable
premium;

(14) that,
unless the Company defaults in making payment of such Purchase Price, interest,
if any, on Debentures surrendered for purchase to the Company will cease to
accrue on and after the Purchase Date and the Debentures will cease to be
convertible; and 

(15) the CUSIP
number(s) of the Debentures. 

If a
Debenture is only to be purchased in part, the Company shall purchase from the
Holder thereof, pursuant to this Section 13.1, such portion of a Debenture, if
the principal amount of such portion is $1,000 or an integral multiple of
$1,000. Provisions of this Indenture that apply to the purchase of all of a
Debenture also apply to the purchase of such portion of such Debenture.

Any
purchase by the Company contemplated pursuant to the provisions of this Section
13.1 shall be consummated by the delivery of the consideration to be received by
the Holder promptly following the later of the Purchase Date and the time of
delivery of the Debenture. 

Notwithstanding
anything herein to the contrary, any Holder delivering to the Paying Agent the
Purchase Notice contemplated by this Section 13.1 shall have the right to
withdraw such Purchase Notice at any time prior to the close of business on the
third Business Day prior to the Purchase Date by delivery of a written notice of
withdrawal to the Paying Agent in accordance with Section 13.4. 

31

 

The
Paying Agent shall promptly notify the Company in writing of the receipt by it
of any Purchase Notice or written notice of withdrawal thereof. 

SECTION
13.2. Purchase of Debentures at Option of the Holder upon Change of Control or
Upon the Sale of Certain Assets. 

(a) If a
Change of Control occurs, the Debentures not previously purchased by the Company
shall be purchased by the Company, at the option of the Holder thereof, during
the periods and at a purchase price equal to the price payable at such time as
set forth in Section 2.02(f)(i) of this First Supplemental Indenture plus
accrued and unpaid interest, if any (which, in this context shall be the “Change
of Control Purchase Price”), as of the date that is 30 days after the date of a
notice of Change of Control delivered by the Company (the “Change of Control
Purchase Date”), subject to satisfaction by or on behalf of the Holder of the
requirements set forth in Section 13.2(d). 

A “Change
of Control” will be deemed to have occurred at such time after the Debentures
are originally issued when any of the following events shall occur:

(i) the
acquisition by any person, including any syndicate or group deemed to be a
“person” under Section 13(d)(3) of the Exchange Act, of beneficial ownership,
directly or indirectly through a purchase, merger or other acquisition
transaction or series of purchase, merger or other acquisition transactions, of
shares of the Capital Stock of the Company entitling that person to exercise 50%
or more of the total voting power of all shares of the Capital Stock of the
Company entitled to vote generally in elections of directors, other than any
acquisition by any of the Company’s Subsidiaries or any of its employee benefit
plans; or 

(ii) during
any period of two consecutive years, individuals who at the beginning of such
period constituted the Board of Directors (together with any new directors whose
election by such Board of Directors or whose nomination for election by the
shareholders of the Company was approved pursuant to a vote of a majority of the
directors then still in office who were either directors at the beginning of
such period or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority of the Board of
Directors then in office; or 

(iii) the
Company consolidates or merges with or into any other person, any merger of
another person into the Company, or any conveyance, transfer, sale, lease or
other disposition of all or substantially all of the Company’s properties and
assets to another person, other than: 

(A) any
transaction: (1) that does not result in any reclassification, conversion,
exchange or cancellation of outstanding shares of the Company’s Capital Stock;
and (2) pursuant to which holders of the Company’s Capital Stock immediately
prior to the transaction have the entitlement to exercise, directly or
indirectly, 50% or more of the total voting power of all shares of Capital Stock
entitled to vote generally in elections of directors of the continuing or
surviving Person immediately after giving effect to such issuance; and (B) any
merger, share exchange, transfer of assets or similar transaction solely for the
purpose of changing the Company’s jurisdiction of incorporation and resulting in
a reclassification, conversion or exchange of outstanding shares of Class A
Common Stock, if at all, solely into shares of common stock, ordinary shares or
American Depositary Shares of the surviving Person or a direct or indirect
parent of the surviving corporation. 

32

 

For the
purposes of this Section 13.2, (x) whether a person is a “beneficial owner”
shall be determined in accordance with Rule 13d-3 under the Exchange Act and (y)
the term “person” includes any syndicate or group that would be deemed to be a
“person” under Section 13(d)(3) of the Exchange Act. 

(b) If an
Asset Sale occurs, the Debentures not previously purchased by the Company shall
be purchased by the Company, at the option of the Holder thereof, during the
periods and at a purchase price equal to the price payable at such time as set
forth in Section 2.02(f)(ii) of this First Supplemental Indenture plus accrued
and unpaid interest, if any, (which, in this context shall be the “Asset Sale
Purchase Price”) to be paid, on a pro rata basis together with any other secured
Indebtedness issued pursuant to the Indenture, from Net Cash Proceeds as of the
date that is specified in a notice of Asset Sale delivered by the Company (the
“Asset Sale Purchase Date”) pursuant to Subsection (c)(3) below, subject to
satisfaction by or on behalf of the Holder of the requirements set forth in
Section 13.2(d). If the aggregate purchase price of the Securities tendered (as
described below) exceeds such Net Cash Proceeds, the Trustee shall select the
Securities to be purchased on a pro rata basis but in denominations of $1,000
principal amount or multiples thereof. 

An “Asset
Sale” will be deemed to have occurred, if, at any time after the Debentures are
originally issued, a sale permitted under Section 3.04 of the First Supplemental
Indenture has been completed. 

(c) No later
than 30 days after the occurrence of a Change of Control or five (5) days after
the occurrence of an Asset Sale, the Company shall mail a written notice of the
Change of Control or Asset Sale by first class mail to the Trustee and to each
Holder (and to beneficial owners as required by applicable law). The notice
shall include a form of Change of Control Purchase Notice or Asset Sale Purchase
Notice to be completed by the Holder and shall briefly state, as applicable:

(1) the
events causing a Change of Control or Asset Sale and the date of such Change of
Control or Asset Sale; 

(2) the date
by which the Change of Control or Asset Sale Purchase Notice pursuant to this
Section 13.2 must be delivered to the Paying Agent in order for a Holder to
exercise the repurchase rights; 

33

 

(3) the
Change of Control Purchase Date (which shall be 30 days from the Change of
Control Notice Date) or Asset Sale Purchase Date (which shall be 20 Business
Days from the Asset Sale Notice Date); 

(4) the
Change of Control or Asset Sale Purchase Price; 

(5) the name
and address of the Paying Agent and the Conversion Agent; 

(6) the
Conversion Rate and any adjustments thereto; 

(7) that the
Debentures as to which a Change of Control or Asset Sale Purchase Notice has
been given may be converted if they are otherwise convertible pursuant to
Article 16 hereof only if the Change of Control or Asset Sale Purchase Notice
has been withdrawn in accordance with the terms of this Indenture; 

(8) that the
Debentures must be surrendered to the Paying Agent to collect payment;

(9) that the
Change of Control or Asset Sale Purchase Price for any Debenture as to which a
Change of Control or Asset Sale Purchase Notice has been duly given and not
withdrawn will be paid promptly following the later of the Change of Control or
Asset Sale Purchase Date and the time of surrender of such Debenture as
described in (9); 

(10) the
procedures the Holder must follow to exercise rights under this Section 13.2;

(11) the
conversion rights of the Debentures; 

(12) the
procedures for withdrawing a Change of Control or Asset Sale Purchase Notice;

(13) the
number of shares of Applicable Stock payable for any applicable
premium;

(14) that,
unless the Company defaults in making payment of such Change of Control or Asset
Sale Purchase Price, interest, if any, on Debentures surrendered for purchase to
the Company will cease to accrue on and after the Change of Control or Asset
Sale Purchase Date and the Debentures will cease to be convertible; and

(15) the CUSIP
number(s) of the Debentures. 

(d) A Holder
may exercise its rights specified in Section 13.2(a) and (b) upon delivery of a
written notice of purchase (a “Change of Control Purchase Notice” or an “Asset
Sale Purchase Notice”) to the Paying Agent no later than the close of business
on the third Business Day immediately preceding the Change of Control or Asset
Sale Purchase Date stating: 

34

(1) the
certificate number of the Debenture which the Holder will deliver to be
purchased or the appropriate depositary procedures if Certificated Debentures
have not been issued; 

(2) the
portion of the principal amount of the Debenture which the Holder will deliver
to be purchased, which portion must be $1,000 or an integral multiple of $1,000;

(3) that such
Debenture shall be purchased pursuant to the terms and conditions specified in
Section 7 of the Debentures and in this Indenture; and 

(4) whether
the Holder elects to receive any premium payable with respect to such purchase
in cash or in shares of Applicable Stock.

In the
event a Holder is making an election to receive any applicable premium in
Applicable Stock, notice of such election may be delivered to the Paying Agent
on a date that is no less than one (1) Business Day prior to the Change of
Control Purchase Date or Asset Sale Purchase Date, as applicable, pursuant to
2.02 (g).

The
delivery of such Debenture to the Paying Agent with the Change of Control or
Asset Sale Purchase Notice (together with all necessary endorsements) at the
offices of the Paying Agent shall be a condition to the receipt by the Holder of
the Change of Control or Asset Sale Purchase Price therefore; provided,
however, that
such Change of Control or Asset Sale Purchase Price shall be so paid pursuant to
this Section 13.2 and Section 13.3 only if the Debenture so delivered to the
Paying Agent shall conform in all material respects to the description thereof
set forth in the related Change of Control or Asset Sale Purchase Notice.

If a
Holder, in such Holder’s Change of Control or Asset Sale Purchase Notice and in
any written notice of withdrawal delivered by such Holder pursuant to the terms
of Section 13.4, fails to indicate such Holder’s choice with respect to the
election set forth in Section 13.2(d)(4) and does not provide a subsequent
notice of its election to receive the premium in Applicable Stock to the Company
and the Paying Agent no later than one (1) Business Day before the Change of
Control Purchase Date or Asset Sale Purchase Date, such Holder shall be deemed
to have elected to receive cash in respect of the entire Change of Control or
Asset Sale Purchase Price for all Debentures subject to such Change of Control
or Asset Sale Purchase Notice in the circumstances set forth in such Section
13.2(c)(4). 

If a
Debenture is only to be purchased in part, the Company shall purchase from the
Holder thereof, pursuant to this Section 13.2 and Section 13.3, such portion of
a Debenture if the principal amount of such portion is $1,000 or an integral
multiple of $1,000. Provisions of this Indenture that apply to the purchase of
all of a Debenture also apply to the purchase of such portion of such Debenture.

35

 

Any
purchase by the Company contemplated pursuant to the provisions of this Section
13.2 and Section 13.3 shall be consummated by the delivery of the consideration
to be received by the Holder on the Change of Control or Asset Sale Purchase
Date. 

Notwithstanding
anything herein to the contrary, any Holder delivering to the Paying Agent the
Change of Control or Asset Sale Purchase Notice contemplated by this Section
13.2(c) shall have the right to withdraw such Change of Control or Asset Sale
Purchase Notice at any time prior to the close of business on the last Business
Day immediately preceding the Change of Control or Asset Sale Purchase Date by
delivery of a written notice of withdrawal to the Paying Agent in accordance
with Section 13.4. 

The
Paying Agent shall promptly notify the Company in writing of the receipt by it
of any Change of Control or Asset Sale Purchase Notice or written withdrawal
thereof. 

SECTION
13.3. Payment
of Purchase Price, Asset Sale Purchase Price and Change of Control Purchase
Price.

The
Company shall pay the Purchase Price or Change of Control Purchase Price or
Asset Sale Purchase Price, as the case may be, of Debentures in respect of which
a Purchase Notice pursuant to Section 13.1(a) or Change of Control or Asset Sale
Purchase Notice pursuant to Section 13.2(c), as the case may be, has been given
in U.S. legal tender (“cash”) equal to the aggregate Purchase Price or Change of
Control Purchase Price, or Asset Sale Purchase Price or, with respect to any
premium, if the Holder so elects, in Applicable Stock. 

SECTION
13.4. Effect
of Purchase Notice or Change of Control Purchase Notice or Asset Sale Purchase
Notice.

Upon
receipt by the Paying Agent of the Purchase Notice or Change of Control Purchase
Notice or Asset Sale Purchase Notice specified in Section 13.1(b) or Section
13.2(d), as applicable, the Holder of the Debenture in respect of which such
Purchase Notice or Change of Control Purchase Notice or Asset Sale Purchase
Notice, as the case may be, was given shall (unless such Purchase Notice or
Change of Control Purchase Notice or Asset Sale Purchase Notice, as the case may
be, is withdrawn as specified in the following two paragraphs) thereafter be
entitled to receive solely the Purchase Price or Change of Control Purchase
Price or Asset Sale Purchase Price, as the case may be, with respect to such
Debenture. Such Purchase Price or Change of Control Purchase Price or Asset Sale
Purchase Price shall be paid to such Holder, subject to receipt of funds and/or
securities by the Paying Agent, promptly following the later of (x) the Purchase
Date or the Change of Control Purchase Date or Asset Sale Purchase Date, as the
case may be, with respect to such Debenture (provided the conditions in Section
13.1 or Section 13.2(d), as applicable, have been satisfied) and (y) the time of
delivery of such Debenture to the Paying Agent by the Holder thereof in the
manner required by Section 13.1 or Section 13.2(d), as applicable. Debentures in
respect of which a Purchase Notice or Change of Control Purchase Notice or Asset
Sale Purchase Notice has been given by the Holder thereof may not be converted
pursuant to Article 16 hereof on or after the date of the delivery of such
Purchase Notice or Change of Control Purchase Notice or Asset Sale Purchase
Notice unless such Purchase Notice or Change of Control Purchase Notice or Asset
Sale Purchase Notice has first been validly withdrawn as specified in the
following two paragraphs. 

36

 

A
Purchase Notice or Change of Control Purchase Notice or Asset Sale Purchase
Notice may be withdrawn by means of a written notice of withdrawal delivered to
the office of the Paying Agent in accordance with the Purchase Notice or Change
of Control Purchase Notice or Asset Sale Purchase Notice, as the case may be, at
any time prior to the close of business on the Business Day prior to the Change
of Control Purchase Date or Asset Sale Purchase Date, as the case may be,
specifying: 

(1) the
certificate number, if any, of the Debenture in respect of which such notice of
withdrawal is being submitted, 

(2) the
principal amount of the Debenture with respect to which such notice of
withdrawal is being submitted, and 

(3) the
principal amount, if any, of such Debenture which remains subject to the
original Purchase Notice or Change of Control Purchase Notice or Asset Sale
Purchase Notice, as the case may be, and which has been or will be delivered for
purchase by the Company. 

A written
notice of withdrawal of a Purchase Notice shall contain the information set
forth above. 

A written
notice of withdrawal of a Change of Control or Asset Sale Purchase Notice may
contain the information set forth above or may be in the form of (i) a
conditional withdrawal contained in a Change of Control Purchase Notice or Asset
Sale Purchase Notice pursuant to the terms of Section 13.2 or (ii) a withdrawal
containing the information set forth in Section 13.2 and the preceding Section
and contained in a written notice of withdrawal delivered to the Paying Agent as
set forth in the preceding paragraph. 

SECTION
13.5. Deposit
of Redemption Price, Purchase Price, Change of Control Purchase Price or Asset
Sale Purchase Price.

(a) Prior to
10:00 am (local time in The City of New York) on a Redemption Date, the Company
shall deposit with the Trustee or with the Paying Agent (or, if the Company or a
Subsidiary or an Affiliate of either of them is acting as the Paying Agent,
shall segregate and hold in trust as provided in Section 10.3 hereof) an amount
of cash (in immediately available funds) or, with respect to any premium payable
on any such date, shares of Applicable Stock sufficient to pay such premium to
the Holders entitled thereto who have elected to receive such premium in
Applicable Stock sufficient as evidenced in writing by a certified public
accountant to pay the aggregate Redemption Price (and any applicable premium) of
all the Debentures or portion thereof which are to be redeemed or purchased, as
the case may be, as of the Redemption Date. 

(b) Prior to
10:00 a.m. (local time in The City of New York) on the Business Day following a
Purchase Date or the Change of Control Purchase Date or Asset Sale Purchase
Date, as the case may be, the Company shall deposit with the Trustee or with the
Paying Agent (or, if the Company or a Subsidiary or an Affiliate of either of
them is acting as the Paying Agent, shall segregate and hold in trust as
provided in Section 10.3 hereof) an amount of cash (in immediately available
funds) or, with respect to any premium payable on any such date, shares of
Applicable Stock sufficient to pay such premium to the Holders entitled thereto
who have elected to receive such premium in Applicable Stock sufficient as
evidenced in writing by a certified public accountant to pay the aggregate
Purchase Price, Change of Control Purchase Price or Asset Sale Purchase Price,
as the case may be, (and any applicable premium) of all the Debentures or
portions thereof which are to be purchased as of the Purchase Date, Change of
Control Purchase Date or Asset Sale Purchase Date, as the case may be.

37

 

(c) If the
Company has deposited the Redemption Price, Purchase Price, Change of Control
Purchase Price or Asset Sale Purchase Price in accordance with Section 13.5(a)
or (b), as applicable, on the Redemption Date, Purchase Date, Change of Control
Purchase Date or Asset Sale Purchase Date, as the case may be, such Debenture
will cease to be Outstanding and the right of the Holder in respect thereof
shall terminate (other than the right to receive the Redemption Price, the
Purchase Price, the Change of Control Purchase Price or the Asset Sale Purchase
Price, as the case may be, and any accrued and unpaid interest, as aforesaid).

SECTION
13.6. Debentures
Purchased in Part.

Any
Debenture in certified form which is to be purchased only in part shall be
surrendered at the office of the Paying Agent (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 such Holder’s attorney duly authorized in writing) and the Company
shall execute and the Trustee shall authenticate and deliver to the Holder of
such Debenture, without service charge, a new Debenture or Debentures, of any
authorized denomination as requested by such Holder in aggregate principal
amount equal to, and in exchange for, the portion of the principal amount of the
Debenture so surrendered which is not purchased. 

SECTION
13.7. Covenant
to Comply With Securities Laws Upon Purchase of Debentures.

When
complying with the provisions of Section 2.02(g) of this First Supplemental
Indenture or Sections 13.1 or 13.2 hereof (provided that such offer or purchase
constitutes an “issuer tender offer” for purposes of Rule 13e-4 (which term, as
used herein, includes any successor provision thereto) under the Exchange Act at
the time of such offer or purchase), and subject to any exemptions available
under applicable law, the Company shall (i) comply with Rule 13e- 4 and Rule
14e-1 (or any successor provision) under the Exchange Act, (ii) file the related
Schedule TO (or any successor schedule, form or report) under the Exchange Act,
and (iii) otherwise comply with all Federal and state securities laws so as to
permit the rights and obligations under Section 2.02(g) of this First
Supplemental Indenture or Sections 13.1 and 13.2 hereof to be exercised in the
time and in the manner specified in Section 2.02(g) of this First Supplemental
Indenture or Sections 13.1 and 13.2 hereof. 

SECTION
13.8. Repayment
to the Company.

The
Trustee and the Paying Agent shall return to the Company any cash or shares of
Applicable Stock that remain unclaimed as provided in Section 12 of the
Debentures, together with interest or dividends, if any, thereon (subject to the
provisions of Section 6.6), held by them for the payment of the Purchase Price
or Change of Control Purchase Price or Asset Sale Purchase Price, as the case
may be; provided, however, that to the extent that the aggregate amount of cash
or shares of Applicable Stock deposited by the Company 

 

38

 

pursuant
to Section 13.5 exceeds the aggregate Purchase Price or Change of Control
Purchase Price or Asset Sale Purchase Price, as the case may be, of the
Debentures or portions thereof which the Company is obligated to purchase as of
the Purchase Date or Change of Control Purchase Date or Asset Sale Purchase
Date, as the case may be, then, unless otherwise agreed in writing with the
Company, promptly after the Business Day following the Purchase Date or Change
of Control Purchase Date or Asset Sale Purchase Date, as the case may be, the
Trustee shall return any such excess to the Company together with interest or
dividends, if any, thereon (subject to the provisions of Section 6.6 hereof).

 

Section
2.10 Application
of the Article of the Indenture Regarding Defeasance and Covenant
Defeasance. 

Section
4.2 of the Original Indenture concerning defeasance and covenant defeasance of
the Securities shall not apply to the Debentures. 

 

Section
2.11 Conversions. 

Except as
may be provided by a Future Supplemental Indenture, for the sole benefit of the
Holders of the Debentures, a new Article 16 shall be added to the Original
Indenture as follows: 

ARTICLE
16 

CONVERSIONS

SECTION
16.1. Conversion
Privilege.

(a)
 Subject
to and upon compliance with the provisions of this Article 16, a Holder of a
Debenture shall have the right, at such Holder’s option, at any time to convert
all or any portion (if the portion to be converted is $1,000 or an integral
multiple of $1,000) of such Debenture into shares of Class A Common Stock at the
Conversion Rate in effect on the date of conversion. 

(b)
 The “Sale
Price” of the shares of the Company’s Class A Common Stock on any date means the
closing per share sale price (or, if no closing sale price is reported, the
average of the bid and ask prices or, if more than one in either case, the
average of the average bid and the average ask prices) on such date as reported
on the NYSE or, if the shares of the Company’s Class A Common Stock are not
listed on the NYSE, as reported on a national securities exchange, or if not
reported on a national securities exchange, as reported by the Nasdaq system. In
the absence of such quotations, the Company’s Board of Directors shall be
entitled to determine the sales price on the basis of such quotations as it
considers appropriate in good faith. 

39

 

The
Conversion Rate, at any time, shall equal (A) $1,000 divided by (B) the
Conversion Price at such time, rounded to four (4) decimal places (rounded up if
the fifth decimal place thereof is five (5) or more and otherwise rounded down).

SECTION
16.2. Conversion
Procedure; Conversion Price; Fractional Shares.

(a)
 Each
Debenture shall be convertible at the office of the Conversion Agent into fully
paid and nonassessable shares (calculated to the nearest 1/100th of a share) of
Class A Common Stock. The Debenture will be converted into shares Class A Common
Stock at the Conversion Price therefor. No payment or adjustment shall be made
in respect of dividends on the Class A Common Stock or accrued interest on a
converted Debenture, except as described in Section 16.9 hereof. The Company
shall not issue any fraction of a share of Class A Common Stock in connection
with any conversion of Debentures, but instead shall, subject to Section 16.2(b)
hereof, make a cash payment (calculated to the nearest cent) equal to such
fraction multiplied by the Sale Price of the Class A Common Stock on the last
Trading Day prior to the date of conversion. Notwithstanding the foregoing, a
Debenture in respect of which a Holder has delivered a Purchase Notice or Change
of Control Purchase Notice or Asset Sale Purchase Notice exercising such
Holder’s option to require the Company to repurchase such Debenture may be
converted only if such notice of exercise is withdrawn in accordance with the
Section 13.4 hereof. 

(b)
 Before
any Holder of a Debenture shall be entitled to convert the same into Class A
Common Stock, such Holder shall, in the case of Debentures issued in global
form, comply with the procedures of the Depositary in effect at that time, and
in the case of definitive Debentures, surrender such Debentures, duly endorsed
to the Company or in blank, at the office of the Conversion Agent, and shall
give written notice to the Company at said office or place that such Holder
elects to convert the same and shall state in writing therein the principal
amount of Debenture to be converted and the name or names (with addresses) in
which such Holder wishes the certificate or certificates for Class A Common
Stock to be issued. 

Before
any such conversion, a Holder also shall pay all funds required, if any,
relating to interest on the Debentures, as provided in Section 16.9, and all
taxes or duties, if any, as provided in Section 16.8. 

If more
than one Debenture shall be surrendered for conversion at one time by the same
Holder, the number of full shares of Class A Common Stock which shall be
deliverable upon conversion shall be computed on the basis of the aggregate
principal amount of the Debenture (or specified portions thereof to the extent
permitted thereby) so surrendered. Subject to the next succeeding sentence, the
Company will, as soon as practicable thereafter, issue and deliver at said
office or place to such Holder of a Debenture, or to such Holder’s nominee or
nominees, certificates for the number of full shares of Class A Common Stock to
which such Holder shall be entitled as aforesaid, together, subject to the next
to last sentence of Section (a) above, with cash in lieu of any fraction of a
share to which such Holder would otherwise be entitled. The Company shall not be
required to deliver certificates for shares of Class A Common Stock while the
stock transfer books for such stock or the security register are duly closed for
any purpose, but certificates for shares of Class A Common Stock shall be issued
and delivered as soon as practicable after the opening of such books or security
register. 

40

 

(c)
 A
Debenture shall be deemed to have been converted as of the close of business on
the date of the surrender of such Debenture for conversion as provided above,
and the person or persons entitled to receive the Class A Common Stock issuable
upon such conversion shall be treated for all purposes as the record Holder or
Holders of such Class A Common Stock as of the close of business on such date.

(d)
 In case
any Debenture shall be surrendered for partial conversion, the Company shall
execute and the Trustee shall authenticate and deliver to or upon the written
order of the Holder of the Debenture so surrendered, without charge to such
Holder (subject to the provisions of Section 16.8 hereof), a new Debenture or
Debentures in authorized denominations in an aggregate principal amount equal to
the unconverted portion of the surrendered Debentures. 

SECTION
16.3. Adjustment
of Conversion Price for Class A Common Stock.

The
Conversion Price shall be adjusted from time to time as follows: 

(a)
 In case
the Company shall, at any time or from time to time while any of the Debentures
are outstanding, pay a dividend or make a distribution in shares of Class A
Common Stock to all holders of its outstanding shares of Class A Common Stock,
then the Conversion Price in effect at the opening of business on the date next
following the Record Date fixed for the determination of stockholders entitled
to receive such dividend or other distribution shall be reduced by multiplying
such Conversion Price by a fraction: 

(1)
 the
numerator of which shall be the number of shares of Class A Common Stock
outstanding at the close of business on the Record Date fixed for such
determination; and 

(2)
 the
denominator of which shall be the sum of such number of shares and the total
number of shares constituting such dividend or other distribution. 

Such
reduction shall become effective immediately after the opening of business on
the day following the Record Date fixed for such determination. If any dividend
or distribution of the type described in this Section 16.3(a) is declared but
not so paid or made, the Conversion Price shall again be adjusted to the
Conversion Price which would then be in effect if such dividend or distribution
had not been declared. 

(b)
 In case
the Company shall, at any time or from time to time while any of the Debentures
are outstanding, subdivide its outstanding shares of Class A Common Stock into a
greater number of shares of Class A Common Stock, then the Conversion Price in
effect at the opening of business on the day following the day upon which such
subdivision becomes effective shall be proportionately reduced, and conversely,
in case the Company shall, at any time or from time to time while any of the
Debentures are outstanding, combine its outstanding shares of Class A Common
Stock into a smaller number of shares of Class A Common Stock, then the
Conversion Price in effect at the opening of business on the day following the
day upon which such combination becomes effective shall be proportionately
increased. 

41

 

Such
reduction or increase, as the case may be, shall become effective immediately
after the opening of business on the day following the day upon which such
subdivision or combination becomes effective. 

(c)
 In case
the Company shall, at any time or from time to time while any of the Debentures
are outstanding, issue rights or warrants (other than any rights or warrants
referred to in Section 16.3(d)), or securities convertible into or exchangeable
or exercisable for Class A Common Stock, to all holders of its shares of Class A
Common Stock entitling them to subscribe for or purchase shares of Class A
Common Stock (or securities convertible into or exchangeable or exercisable for
shares of Class A Common Stock), at a price per share (or having a conversion
price per share) less than the Sale Price on the Business Day immediately
preceding the date of the announcement of such issuance (treating the conversion
price per share of the securities convertible into Class A Common Stock as equal
to (x) the sum of (i) the price for a unit of the security convertible into
Class A Common Stock and (ii) any additional consideration initially payable
upon the conversion of such security into Class A Common Stock divided by (y)
the number of shares of Class A Common Stock initially underlying such
convertible security), then the Conversion Price shall be adjusted so that the
same shall equal the price determined by multiplying the Conversion Price in
effect at the opening of business on the date after such date of announcement by
a fraction: 

(1)
 the
numerator of which shall be the number of shares of Class A Common Stock
outstanding on the close of business on the date of announcement, plus the
number of shares or securities which the aggregate offering price of the total
number of shares or securities so offered for subscription or purchase (or the
aggregate conversion price of the convertible securities so offered) would
purchase at such Sale Price of the Class A Common Stock; and 

(2)
 the
denominator of which shall be the number of shares of Class A Common Stock
outstanding at the close of business on the date of announcement, plus the total
number of additional shares of Class A Common Stock so offered for subscription
or purchase (or into which the convertible securities so offered are
convertible). 

Such
adjustment shall become effective immediately after the opening of business on
the day following the date of announcement of such issuance. To the extent that
shares of Class A Common Stock (or securities convertible into shares of Class A
Common Stock) are not delivered pursuant to such rights or warrants, upon the
expiration or termination of such rights or warrants, the Conversion Price shall
be readjusted to the Conversion Price which would then be in effect had the
adjustments made upon the issuance of such rights or warrants been made on the
basis of the delivery of only the number of shares of Class A Common Stock (or
securities convertible into shares of Class A Common Stock) actually delivered.
In the event that such rights or warrants are not so issued, the Conversion
Price shall again be adjusted to be the Conversion Price which would then be in
effect if the date fixed for the determination of stockholders entitled to
receive such rights or warrants had not been fixed. In determining whether any
rights or warrants entitle the holders to subscribe for or purchase shares of
Class A Common Stock at less than such Sale Price, and in determining the
aggregate offering price of such shares of Class A Common Stock, there shall be
taken into account any consideration received for such rights or warrants and
the value of such consideration if other than cash, to be determined in good
faith by the Board of Directors of the Company. 

42

 

(d)
 In case
the Company shall, at any time or from time to time while any of the Debentures
are outstanding, by dividend or otherwise, distribute to all holders of its
shares of Class A Common Stock (including any such distribution made in
connection with a consolidation or merger in which the Company is the continuing
corporation and the Class A Common Stock is not changed or exchanged), shares of
its Capital Stock (other than any dividends or distributions to which Section
16.3(a) applies), evidences of its Indebtedness or other assets, including
securities, but excluding (i) any rights or warrants referred to in Section
16.3(c), (ii) dividends or distributions of stock referred to in Section
16.3(a), (iii) dividends and distributions of stock, securities or other
property or assets (including cash) in connection with the reclassification,
change, merger, consolidation, statutory share exchange, combination, sale or
conveyance to which Section 16.4 applies and (iv) dividends and distributions
paid exclusively in cash referred to in Section 16.3(e) (such capital stock,
evidence of its indebtedness, other assets or securities being distributed
hereinafter in this Section 16.3(d) called the “Distributed Assets”), then, in
each such case, subject to the other provisions of this Section 16.3(d), the
Conversion Price shall be reduced so that the same shall be equal to the price
determined by multiplying the Conversion Price in effect immediately prior to
the close of business on the Record Date with respect to such distribution by a
fraction: 

(1)
 the
numerator of which shall be the Current Market Price of the Class A Common
Stock, less the Fair Market Value on such date of the portion of the distributed
assets so distributed applicable to one share of Class A Common Stock
(determined on the basis of the number of shares of Class A Common Stock
outstanding on the Record Date) (determined as provided in Section 16.3(g)) on
such date; and 

(2)
 the
denominator of which shall be such Current Market Price. 

Such
reduction shall become effective immediately prior to the opening of business on
the day following the Record Date for such distribution. In the event that such
dividend or distribution is not so paid or made, the Conversion Price shall
again be adjusted to be the Conversion Price which would then be in effect if
such dividend or distribution had not been declared. 

If the
Board of Directors determines the Fair Market Value of any distribution for
purposes of this Section 16.3(d) by reference to the actual or when issued
trading market for any distributed assets comprising all or part of such
distribution, it must in doing so consider the prices in such market over the
period of the four consecutive fiscal quarters ending with the last full fiscal
quarter for which financial information is available immediately preceding any
date upon which any determination is to be made pursuant to the terms of either
Indenture or the related Securities (the “Reference Period”) used in computing
the Current Market Price pursuant to Section 16.3(g) to the extent possible,
unless the Board of Directors determines in good faith that determining the Fair
Market Value during the Reference Period would not be in the best interest of
the Holders. 

43

 

In the
event any such distribution consists of shares of capital stock of, or similar
equity interests in, one or more of the Company’s Subsidiaries (a “Spin-Off”),
the Fair Market Value of the securities to be distributed shall equal the
average of the closing sale prices of such securities on the principal
securities market on which such securities are traded for the five consecutive
Trading Days commencing on and including the sixth Trading Day of those
securities after the effectiveness of the Spin-Off, and the Current Market Price
shall be measured for the same period. In the event, however, that an
underwritten initial public offering of the securities in the Spin-Off occurs
simultaneously with the Spin-Off, Fair Market Value of the securities
distributed in the Spin-Off shall mean the initial public offering price of such
securities and the Current Market Price shall mean the Sale Price for the Class
A Common Stock on the same Trading Day. 

Rights or
warrants distributed by the Company to all holders of its shares of Class A
Common Stock entitling them to subscribe for or purchase shares of the Company’s
Capital Stock (either initially or under certain circumstances), which rights or
warrants, until the occurrence of a specified event or events (“Trigger Event”),
(i) are deemed to be transferred with such shares of Class A Common Stock, (ii)
are not exercisable and (iii) are also issued in respect of future issuances of
shares of Class A Common Stock shall be deemed not to have been distributed for
purposes of this Section 16.3(d) (and no adjustment to the Conversion Price
under this Section 16.3(d) will be required) until the occurrence of the
earliest Trigger Event. If such right or warrant is subject to subsequent
events, upon the occurrence of which such right or warrant shall become
exercisable to purchase different distributed assets, evidences of indebtedness
or other assets, or entitle the holder to purchase a different number or amount
of the foregoing or to purchase any of the foregoing at a different purchase
price, then the occurrence of each such event shall be deemed to be the date of
issuance and record date with respect to a new right or warrant (and a
termination or expiration of the existing right or warrant without exercise by
the holder thereof). In addition, in the event of any distribution (or deemed
distribution) of rights or warrants, or any Trigger Event or other event (of the
type described in the preceding sentence) with respect thereto, that resulted in
an adjustment to the Conversion Price under this Section 16.3(d): 

(1)
 in the
case of any such rights or warrants which shall all have been redeemed or
repurchased without exercise by any holders thereof, the Conversion Price shall
be readjusted upon such final redemption or repurchase to give effect to such
distribution or Trigger Event, as the case may be, as though it were a cash
distribution, equal to the per share redemption or repurchase price received by
a holder of shares of Class A Common Stock with respect to such rights or
warrants (assuming such holder had retained such rights or warrants), made to
all holders of shares of Class A Common Stock as of the date of such redemption
or repurchase; and 

(2)
 in the
case of such rights or warrants which shall have expired or been terminated
without exercise, the Conversion Price shall be readjusted as if such rights and
warrants had never been issued. 

For
purposes of this Section 16.3(d) and Sections 16.3(a), 16.3(b) and 16.3(c), any
dividend or distribution to which this Section 16.3(d) is applicable that also
includes (i) shares of Class A Common Stock, (ii) a subdivision or combination
of shares of Class A Common Stock to which Section 16.3(b) applies or (iii)
rights or warrants to subscribe for or purchase shares of Class A Common Stock
or securities convertible into or exercisable or exchangeable for Class A Common
Stock to which Section 16.3(c) applies (or any combination thereof), shall be
deemed instead to be: 

44

 

(1)
 a
dividend or distribution of the evidences of indebtedness, assets, shares of
capital stock, rights or warrants, other than such shares of Class A Common
Stock, such subdivision or combination or such rights or warrants or securities
convertible into or exercisable or exchangeable for Class A Common Stock to
which Sections 16.3(a), 16.3(b) and 16.3(c) apply, respectively (and any
Conversion Price reduction required by this Section 16.3(d) with respect to such
dividend or distribution shall then be made), immediately followed by

(2)
 a
dividend or distribution of such shares of Class A Common Stock, such
subdivision or combination or such rights or warrants or securities convertible
into or exercisable or exchangeable for Class A Common Stock (and any further
Conversion Price reduction required by Sections 16.3(a), 16.3(b) and 16.3(c)
with respect to such dividend or distribution shall then be made), except:

(A)
 the
Record Date of such dividend or distribution shall be substituted as (i) “the
date fixed for the determination of stockholders entitled to receive such
dividend or other distribution,” “Record Date fixed for such determinations” and
“Record Date” within the meaning of Section 16.3(a), (ii) “the day upon which
such subdivision becomes effective” and “the day upon which such combination
becomes effective” within the meaning of Section 16.3(b), and (iii) as “the date
fixed for the determination of stockholders entitled to receive such rights or
warrants,” “the Record Date fixed for the determination of the stockholders
entitled to receive such rights or warrants” and such “Record Date” within the
meaning of Section 16.3(c); and 

(B)
 any
shares of Class A Common Stock included in such dividend or distribution shall
not be deemed “outstanding at the close of business on the date fixed for such
determination” within the meaning of Section 16.3(a) and any reduction or
increase in the number of shares of Class A Common Stock resulting from such
subdivision or combination shall be disregarded in connection with such dividend
or distribution. 

In the
event of any distribution referred to in this Section 16.3(d) in which (1) the
Fair Market Value (as determined in good faith by the Board of Directors) of
such distribution applicable to one share of Class A Common Stock (determined as
provided above) equals or exceeds the average of the Sale Prices of the Class A
Common Stock over the ten consecutive Trading Day period ending on the Record
Date for such distribution or (2) the average of the Sale Prices of the Class A
Common Stock over the ten consecutive Trading Day period ending on the Record
Date for such distribution exceeds the Fair Market Value of such distribution by
less than $1.00, then, in each such case, in lieu of an adjustment to the
Conversion Price, adequate provision shall be made so that each Holder shall
have the right to receive upon conversion of a Debenture, in addition to shares
of Class A Common Stock, the kind and amount of such distribution such Holder
would have received had such Holder converted such Debenture immediately prior
to the Record Date for determining the shareholders entitled to receive the
distribution. 

45

 

In the
event of any distribution referred to in Section 16.3(c) or 16.3(d), where, in
the case of a distribution described in Section 16.3(d), the Fair Market Value
of such distribution per share of Class A Common Stock (as determined in good
faith by the Board of Directors) exceeds 10% of the Sale Price of a share of
Class A Common Stock on the Business Day immediately preceding the declaration
date for such distribution, then, if such distribution would also trigger a
conversion right under Section 16.1(b) or the Debentures are otherwise
convertible pursuant to this Article 16, the Company will be required to give
notice to the Holders of Debentures at least 20 days prior to the Ex-Dividend
Time for the distribution and, upon the giving of notice, the Debentures may be
surrendered for conversion at any time thereafter, until the close of business
on the Business Day prior to the Ex-Dividend Time or the Company announces that
such distribution will not take place. No adjustment to the Conversion Price or
the ability of a Holder of a Debenture to convert will be made if the Holder
will otherwise participate in such distribution without conversion.

(e)
 In case
the Company shall, at any time or from time to time while any of the Debentures
are outstanding, by dividend or otherwise, distribute to all holders of its
shares of Class A Common Stock, cash (excluding any cash that is distributed
upon a reclassification, change, merger, consolidation, statutory share
exchange, combination, sale or conveyance to which Section 16.4 applies or as
part of a distribution referred to in Section 16.3(d)), in an aggregate amount
that, combined together with: 

(1)
 the
aggregate amount of any other such distributions to all holders of shares of
Class A Common Stock made exclusively in cash within the 12 months preceding the
date of payment of such distribution, and in respect of which no adjustment
pursuant to this Section 16.3(e) has been made; and 

(2)
 the
aggregate amount of any cash, plus the Fair Market Value, as of the expiration
of such tender offer, of any other consideration paid in respect of any tender
offer by the Company or any of its Subsidiaries for all or any portion of the
shares of Class A Common Stock concluded within the 12 months preceding the date
of such distribution, and in respect of which no adjustment pursuant to Section
16.3(f) has been made; 

exceeds
10% of the product of the Sale Price of the Class A Common Stock on the Record
Date with respect to such distribution, times the number of shares of Class A
Common Stock outstanding on such date (such excess over 10%, the “Excess
Amount”), then, and in each case, immediately after the close of business on
such date, the Conversion Price shall be reduced so that the same shall equal
the price determined by multiplying the Conversion Price in effect immediately
prior to the close of business of such Record Date by a fraction: 

46

 

(1)
 the
numerator of which shall be equal to the Current Market Price on the Record
Date, less an amount equal to the quotient of (x) the Excess Amount and (y) the
number of shares of Class A Common Stock outstanding on the Record Date; and

(2)
 the
denominator of which shall be equal to the Current Market Price on such date.

However,
in the event that the then Fair Market Value (as so determined) of the portion
of cash and other securities, if any, so distributed applicable to one share of
Class A Common Stock is equal to or greater than the Current Market Price on the
Record Date, in lieu of the foregoing adjustment, adequate provision shall be
made so that each Holder shall have the right to receive upon conversion of a
Debenture (or any portion thereof) the amount of cash in the Excess Amount such
Holder would have received had such Holder converted such Debenture (or portion
thereof) immediately prior to such Record Date. In the event that such dividend
or distribution is not so paid or made, the Conversion Price shall again be
adjusted to be the Conversion Price which would then be in effect if such
dividend or distribution had not been declared. 

(f)
 In case a
tender offer made by the Company or any of its Subsidiaries for all or any
portion of the shares of Class A Common Stock shall expire and such tender offer
(as amended upon the expiration thereof) shall require the payment to
stockholders (based on the acceptance (up to any maximum specified in the terms
of the tender offer) of shares tendered) of an aggregate consideration having a
Fair Market Value (as determined in good faith by the Board of Directors) that
combined together with: 

(1)
 the
aggregate amount of the cash, plus the fair market value, as of the expiration
of such tender offer, of any other consideration payable in respect of any other
tender offers, by the Company or any of its Subsidiaries for all or any portion
of the shares of Class A Common Stock expiring within the 12 months preceding
the expiration of such tender offer and in respect of which no adjustment
pursuant to this Section 16.3(f) has been made; and 

(2)
 the
aggregate amount of any distributions to all holders of shares of Class A Common
Stock made exclusively in cash within 12 months preceding the expiration of such
tender offer and in respect of which no adjustment pursuant to Section 16.3(e)
has been made; 

exceeds
10% of the product of the Sale Price of the Class A Common Stock as of the last
time (the “Expiration Time”) tenders could have been made pursuant to such
tender offer (as it may be amended), times the number of shares of Class A
Common Stock outstanding (including any tendered shares) on the Expiration Time
(such excess, the “Excess Tender Amount”), then, and in each such case,
immediately prior to the opening of business on the day after the date of the
Expiration Time, the Conversion Price shall be adjusted so that the same shall
equal the price determined by multiplying the Conversion Price in effect
immediately prior to the close of business on the date of the Expiration Time by
a fraction: 

47

 

(1)
 the
numerator of which shall be the (x) the product of (i) the number of shares of
Class A Common Stock outstanding (including any tendered shares) at the
Expiration Time and (ii) the Current Market Price of the Class A Common Stock at
the Expiration Time, less (y) the Excess Tender Amount; and 

(2)
 the
denominator shall be the product of the number of shares of Class A Common Stock
outstanding (including any tendered shares) at the Expiration Time and the
Current Market Price of the Class A Common Stock at the Expiration Time.

Such
reduction (if any) shall become effective immediately prior to the opening of
business on the day following the Expiration Time. In the event that the Company
is obligated to purchase shares pursuant to any such tender offer, but the
Company is permanently prevented by applicable law from effecting any such
purchases or all or a portion of such purchases are rescinded, the Conversion
Price shall again be adjusted to be the Conversion Price which would then be in
effect if such (or such portion of the) tender offer had not been made. If the
application of this Section 16.3(f) to any tender offer would result in an
increase in the Conversion Price, no adjustment shall be made for such tender
offer under this Section 16.3(f). 

Pursuant
to rights issued under any of the Company’s rights plans, if holders of the
Debentures exercising the right of conversion attaching after the date the
rights separate from the underlying Class A Common Stock are not entitled to
receive the rights that would otherwise be attributable to the shares of Class A
Common Stock received upon conversion, the Conversion Price will be adjusted as
though the rights were being distributed to holders of Class A Common Stock on
the date of such separation. If such an adjustment is made and the rights are
later redeemed, invalidated or terminated, then a corresponding reversing
adjustment will be made to the conversion price on an equitable basis.

(g)
 For
purposes of this Article 16, the following terms shall have the meanings
indicated: 

“Current
Market Price” on any date means the average of the daily Sale Prices per share
of Class A Common Stock for the ten consecutive Trading Days immediately prior
to such date; provided,
however, that
if: 

(1)
 the “ex”
date (as hereinafter defined) for any event (other than the issuance or
distribution requiring such computation) that requires an adjustment to the
Conversion Price pursuant to Section 16.3(a), (b), (c), (d), (e), or (f) occurs
during such ten consecutive Trading Days, the Sale Price for each Trading Day
prior to the “ex” date for such other event shall be adjusted by dividing such
Sale Price by the same fraction by which the Conversion Price is so required to
be adjusted as a result of such other event; 

(2)
 the “ex”
date for any event (other than the issuance or distribution requiring such
computation) that requires an adjustment to the Conversion Price pursuant to
Section 16.3(a), (b), (c), (d), (e), or (f) occurs on or after the “ex” date for
the issuance or distribution requiring such computation and prior to the day in
question, the Sale Price for each Trading Day on and after the “ex” date for
such other event shall be adjusted by dividing such Sale Price by the reciprocal
of the fraction by which the Conversion Price is so required to be adjusted as a
result of such other event; and 

48

 

(3)
 the “ex”
date for the issuance or distribution requiring such computation is prior to the
day in question, after taking into account any adjustment required pursuant to
clause (1) or (2) of this proviso, the Sale Price for each Trading Day on or
after such “ex” date shall be adjusted by adding thereto the amount of any cash
and the Fair Market Value (as determined in good faith by the Board of Directors
in a manner consistent with any determination of such value for purposes of
Section 16.3(d), (e) or (f)) of the evidences of Indebtedness, shares of capital
stock or assets being distributed applicable to one share of Class A Common
Stock as of the close of business on the day before such “ex” date.

For
purposes of any computation under Section 16.3(f), if the “ex” date for any
event (other than the tender offer requiring such computation) that requires an
adjustment to the Conversion Price pursuant to Section 16.3(a), (b), (c), (d),
(e) or (f) occurs on or after the Expiration Time for the tender or exchange
offer requiring such computation and prior to the day in question, the Sale
Price for each Trading Day on and after the “ex” date for such other event shall
be adjusted by dividing such Sale Price by the reciprocal of the fraction by
which the Conversion Price is so required to be adjusted as a result of such
other event. For purposes of this paragraph, the term “ex” date, when used:

(1)
 with
respect to any issuance or distribution, means the first date on which the
shares of Class A Common Stock trade regular way on the relevant exchange or in
the relevant market from which the Sale Price was obtained without the right to
receive such issuance or distribution; 

(2)
 with
respect to any subdivision or combination of shares of Class A Common Stock,
means the first date on which the shares of Class A Common Stock trade regular
way on such exchange or in such market after the time at which such subdivision
or combination becomes effective; and 

(3)
 with
respect to any tender or exchange offer, means the first date on which the
shares of Class A Common Stock trade regular way on such exchange or in such
market after the Expiration Time of such offer. 

Notwithstanding
the foregoing, whenever successive adjustments to the Conversion Price are
called for pursuant to this Section 16.3, such adjustments shall be made to the
Current Market Price as may be necessary or appropriate to effectuate the intent
of this Section 16.3 and to avoid unjust or inequitable results as determined in
good faith by the Board of Directors. 

“Fair
Market Value” shall mean the amount which a willing buyer would pay a willing
seller in an arm’s length transaction (as determined in good faith by the Board
of Directors, whose good faith determination shall be conclusive). 

 

 

49

 

“Record
Date” shall mean, with respect to any dividend, distribution or other
transaction or event in which the holders of shares of Class A Common Stock have
the right to receive any cash, securities or other property or in which the
shares of Class A Common Stock (or other applicable security) is exchanged for
or converted into any combination of cash, securities or other property, the
date fixed for determination of stockholders entitled to receive such cash,
securities or other property (whether such date is fixed by the Board of
Directors or by statute, contract or otherwise). 

(h)
 The
Company shall be entitled to make such additional reductions in the Conversion
Price, in addition to those required by Sections 16.3(a), (b), (c), (d), (e) and
(f), as shall be necessary in order that any dividend or distribution of Class A
Common Stock, any subdivision, reclassification or combination of shares of
Class A Common Stock or any issuance of rights or warrants referred to above
shall not be taxable to the holders of Class A Common Stock for United States
Federal income tax purposes. 

(i)
 To the
extent permitted by applicable law, the Company may, from time to time, reduce
the Conversion Price by any amount for any period of time, if such period is at
least 20 days, the Board of Directors determines that the reduction in the
Conversion Price is in the best interest of the Company, and the reduction is
irrevocable during the period. Whenever the Conversion Price is reduced pursuant
to the preceding sentence, the Company shall mail to the Trustee and each Holder
at the address of such Holder as it appears in the register of the Debentures
maintained by the Registrar, at least 15 days prior to the date the reduced
Conversion Price takes effect, a notice of the reduction stating the reduced
Conversion Price and the period during which it will be in effect. 

(j)
 In any
case in which this Section 16.3 shall require that any adjustment be made
effective as of or retroactively immediately following a Record Date, the
Company may elect to defer (but only for five Trading Days following the filing
of the statement referred to in Section 16.5) issuing to the Holder of any
Debentures converted after such Record Date the shares of Class A Common Stock
issuable upon such conversion over and above the shares of Class A Common Stock
issuable upon such conversion on the basis of the Conversion Price prior to
adjustment; provided,
however, that
the Company shall deliver to such Holder a due bill or other appropriate
instrument evidencing such Holder’s right to receive such additional shares upon
the occurrence of the event requiring such adjustment. 

(k)
 All
calculations under this Section 16.3 shall be made to the nearest cent or
one-hundredth of a share, with one-half cent and 0.005 of a share, respectively,
being rounded upward. Notwithstanding any other provision of this Section 16.3,
the Company shall not be required to make any adjustment of the Conversion Price
unless such adjustment would require an increase or decrease of at least 1% of
such price. Any lesser adjustment shall be carried forward and shall be made at
the time of and together with the next subsequent adjustment which, together
with any adjustment or adjustments so carried forward, shall amount to an
increase or decrease of at least 1% in such price. Any adjustments under this
Section 16.3 shall be made successively whenever an event requiring such an
adjustment occurs. 

(l)
 In the
event that at any time, as a result of an adjustment made pursuant to this
Section 16.3, the Holder of any Debentures thereafter surrendered for conversion
shall become entitled to receive any shares of stock of the Class A Company
other than shares of Class A Common Stock into which the Debentures originally
were convertible, the Conversion Price of such other shares so receivable upon
conversion of any such Debenture shall be subject to adjustment from time to
time in a manner and on terms as nearly 

 

 

50

 

equivalent
as practicable to the provisions with respect to Class A Common Stock contained
in subparagraphs (a) through (1) of this Section 16.3, and the provision of
Sections 16.1, 16.2 and 16.4 through 16.9 with respect to the Class A Common
Stock shall apply on like or similar terms to any such other shares and the good
faith determination of the Board of Directors as to any such adjustment shall be
conclusive. 

(m)
 No
adjustment shall be made pursuant to this Section 16.3(i) if the effect thereof
would be to reduce the Conversion Price below the par value (if any) of the
Class A Common Stock or (ii) if the Holders of the Debentures may participate in
the transaction that would otherwise give rise to an adjustment pursuant to this
Section 16.3. 

SECTION
16.4. Consolidation
or Merger of the Company.

If any of
the following events occurs, namely: 

(1)
 any
reclassification or change of the outstanding Class A Common Stock (other than a
change in par value, or from par value to no par value, or from no par value to
par value, or as a result of a subdivision or combination); 

(2)
 any
merger, consolidation, statutory share exchange or combination of the Company
with another corporation as a result of which holders of Class A Common Stock
shall be entitled to receive stock, securities or other property or assets
(including cash) with respect to or in exchange for such Class A Common Stock;
or 

(3)
 any sale
or conveyance of the properties and assets of the Company as, or substantially
as, an entirety to any other corporation as a result of which holders of Class A
Common Stock shall be entitled to receive stock, securities or other property or
assets (including cash) with respect to or in exchange for such Class A Common
Stock; 

the
Company or the successor or purchasing corporation, as the case may be, shall
execute with the Trustee a supplemental indenture (which shall comply with the
Trust Indenture Act as in force at the date of execution of such supplemental
indenture, if such supplemental indenture is then required to so comply)
providing that such Debentures shall be convertible into the kind and amount of
shares of stock and other securities or property or assets (including cash)
which such Holder would have been entitled to receive upon such
reclassification, change, merger, consolidation, statutory share exchange,
combination, sale or conveyance had such Debentures been converted into Class A
Common Stock immediately prior to such reclassification, change, merger,
consolidation, statutory share exchange, combination, sale or conveyance
assuming such holder of Class A Common Stock did not exercise its rights of
election, if any, as to the kind or amount of securities, cash or other property
receivable upon such merger, consolidation, statutory share exchange, sale or
conveyance (provided, that if the kind or amount of securities, cash or other
property receivable upon such merger, consolidation, statutory share exchange,
sale or conveyance is not 

 

 

51

 

the same
for each share of Class A Common Stock in respect of which such rights of
election shall not have been exercised (“Non-Electing
Share”), then
for the purposes of this Section 16.4, the kind and amount of securities, cash
or other property receivable upon such merger, consolidation, statutory share
exchange, sale or conveyance for each Non-Electing Share shall be deemed to be
the kind and amount so receivable per share by a plurality of the Non-Electing
Shares). Such supplemental indenture shall provide for adjustments which shall
be as nearly equivalent as may be practicable to the adjustments provided for in
this Article 16. If, in the case of any such reclassification, change, merger,
consolidation, statutory share exchange, combination, sale or conveyance, the
stock or other securities and assets receivable thereupon by a holder of Class A
Common Stock includes shares of stock or other securities and assets of a
corporation other than the successor or purchasing corporation, as the case may
be, in such reclassification, change, merger, consolidation, statutory share
exchange, combination, sale or conveyance, then such supplemental indenture
shall also be executed by such other corporation and shall contain such
additional provisions to protect the interests of the Holders of the Debentures
as the Board of Directors shall reasonably consider necessary by reason of the
foregoing, including to the extent practicable the provisions providing for the
repurchase rights set forth in Article 13 hereof. 

The
Company shall cause notice of the execution of such supplemental indenture to be
mailed to each Holder, in accordance with Section 1.6 of this Indenture, within
20 days after execution thereof. Failure to deliver such notice shall not affect
the legality or validity of such supplemental indenture. 

The above
provisions of this Section 16.4 shall similarly apply to successive
reclassifications, changes, mergers, consolidations, statutory share exchanges,
combinations, sales and conveyances. 

If this
Section 16.4 applies to any event or occurrence, Section 16.3 shall not apply.

SECTION
16.5. Notice
of Adjustment.

Whenever
an adjustment in the Conversion Price with respect to the Debentures is
required: 

(1)
 the
Company shall forthwith place on file with the Trustee and any Conversion Agent
for such securities a certificate of the Treasurer of the Company, stating the
adjusted Conversion Price determined as provided herein and setting forth in
reasonable detail such facts as shall be necessary to show the reason for and
the manner of computing such adjustment; and 

(2)
 a notice
stating that the Conversion Price has been adjusted and setting forth the
adjusted Conversion Price shall forthwith be given by the Company or, at the
Company’s request, by the Trustee in the name and at the expense of the Company,
to each Holder in the manner provided in Section 1.6 of this Indenture. Any
notice so given shall be conclusively presumed to have been duly given, whether
or not the Holder receives such notice. 

52

 

SECTION
16.6. Notice
in Certain Events.

In case:

(1) of a
consolidation or merger to which the Company is a party and for which approval
of any stockholders of the Company is required, or of the sale or conveyance to
another Person or entity or group of Persons or entities acting in concert as a
partnership, limited partnership, syndicate or other group (within the meaning
of Rule 13d-3 under the Exchange Act) of all or substantially all of the
property and assets of the Company; or 

(2) of
the voluntary or involuntary dissolution, liquidation or winding up of the
Company; or 

(3) of
any action triggering an adjustment of the Conversion Price referred to in
clauses (x) or (y) below; 

then, in
each case, the Company shall cause to be filed with the Trustee and the
Conversion Agent, and shall cause to be given, to the Holders of the Debentures
in the manner provided in Section 1.6 of this Indenture, at least 15 days prior
to the applicable date hereinafter specified, a notice stating (x) the date on
which a record is to be taken for the purpose of any distribution or grant of
rights or warrants or other securities triggering an adjustment to the
Conversion Price pursuant to this Article 16, or, if a record is not to be
taken, the date as of which the holders of record of Class A Common Stock
entitled to such distribution, rights or warrants or other securities are to be
determined, or (y) the date on which any reclassification, consolidation,
merger, sale, conveyance, dissolution, liquidation or winding up triggering an
adjustment to the Conversion Price pursuant to this Article 16 is expected to
become effective, and the date as of which it is expected that holders of Class
A Common Stock of record shall be entitled to exchange their Class A Common
Stock for securities or other property deliverable upon such reclassification,
consolidation, merger sale, conveyance, dissolution, liquidation or winding up.

Failure
to give such notice or any defect therein shall not affect the legality or
validity of the proceedings described in clause (1), (2) or (3) of this Section
16.6. 

SECTION
16.7. Company
To Reserve Stock: Registration; Listing.

(a)
 The
Company shall, in accordance with the laws of the Commonwealth of Pennsylvania,
at all times reserve and keep available, free from preemptive rights, out of its
authorized but unissued shares of Class A Common Stock for the purpose of
effecting the conversion of the Debentures, such number of its duly authorized
shares of Class A Common Stock as shall from time to time be sufficient to
effect the conversion of all Debentures then Outstanding into such Class A
Common Stock at any time (assuming that, at the time of the computation of such
number of shares or securities, all such Debentures would be held by a single
Holder); provided, however, that nothing contained herein shall preclude the
Company from satisfying its obligations in respect of the conversion of the
Debentures by delivery of purchased shares of Class A Common Stock which are
then held in the treasury of the Company. The Company covenants that all shares
of Class A Common Stock which may be issued upon conversion of Debentures will
upon issue be fully paid and nonassessable and free from all liens and charges
and, except as provided in Section 16.8, taxes with respect to the issue
thereof. 

53

 

(b) If any
shares of Class A Common Stock which would be issuable upon conversion of
Debentures hereunder require registration with or approval of any governmental
authority before such shares or securities may be issued upon such conversion,
the Company will use its commercially reasonable efforts to cause such shares or
securities to be duly registered or approved, as the case may be. The Company
further covenants that so long as the Class A Common Stock shall be listed on
the Nasdaq National Market System, the Company will use its commercially
reasonable efforts, if permitted by the rules of such exchange, to list and keep
listed all Class A Common Stock issuable upon conversion of the Debentures, and
the Company will use its commercially reasonable efforts to list the shares of
Class A Common Stock required to be delivered upon conversion of the Debentures
prior to such delivery upon any other national securities exchange upon which
the outstanding Class A Common Stock is listed at the time of such delivery.

SECTION
16.8. Taxes
on Conversion.

The issue
of stock certificates on conversion of Debentures shall be made without charge
to the converting Holder for any documentary, stamp or similar issue or transfer
taxes in respect of the issue thereof, and the Company shall pay any and all
documentary, stamp or similar issue or transfer taxes that may be payable in
respect of the issue or delivery of shares of Class A Common Stock on conversion
of Debentures pursuant hereto. The Company shall not, however, be required to
pay any such tax which may be payable in respect of any transfer involved in the
issue or delivery of shares of Class A Common Stock or the portion, if any, of
the Debentures which are not so converted in a name other than that in which the
Debentures so converted were registered, and no such issue or delivery shall be
made unless and until the Person requesting such issue has paid to the Company
the amount of such tax or has established to the satisfaction of the Company
that such tax has been paid. 

The
Company agrees, and each Holder is deemed to agree, that delivery to such Holder
of the full number of Class A Common Stock into which each Debenture is
convertible, together with any cash payment of such Holder’s fractional shares
or otherwise in accordance with Section 16.13, will be treated as a contingent
payment (in an amount equal to the sum of the then Fair Market Value of such
Class A Common Stock and such cash payment, if any) on the Debentures for
purposes of the Contingent Payment Debt Regulations governing contingent payment
debt obligations. 

 

54

SECTION
16.9. Conversion
After Record Date.

Except as
provided below, if any Debentures are surrendered for conversion on any day
other than an Interest Payment Date, the Holder of such Debentures shall not be
entitled to receive any interest that has accrued on such Debentures since the
prior Interest Payment Date. By delivery to the Holder of the number of shares
of Class A Common Stock or other consideration issuable upon conversion in
accordance with this Article 16, any accrued and unpaid interest on such
Debentures will be deemed to have been paid in full. 

If any
Debentures are surrendered for conversion subsequent to the Record Date
preceding an Interest Payment Date but prior to such Interest Payment Date, the
Holder of such Debentures at the close of business on such Record Date shall
receive the interest payable on such Debenture on such Interest Payment Date
notwithstanding the conversion thereof. Debentures surrendered for conversion
during the period from the close of business on any Record Date preceding any
Interest Payment Date to the opening of business on such Interest Payment Date
shall (except in the case of Debentures which have been called for redemption on
a Redemption Date within such period) be accompanied by payment by Holders, for
the account of the Company, in New York Clearing House funds or other funds of
an amount equal to the interest payable on such Interest Payment Date on the
Debentures being surrendered for conversion. Except as provided in this Section
16.9, no adjustments in respect of payments of interest on Debentures
surrendered for conversion or any dividends or distributions or interest on the
Class A Common Stock issued upon conversion shall be made upon the conversion of
any Debentures. 

SECTION
16.10. Company
Determination Final.

Any
determination that the Company or the Board of Directors must make pursuant to
this Article 16 shall be conclusive if made in good faith and in accordance with
the provisions of this Article, absent manifest error, and set forth in a Board
Resolution. 

SECTION
16.11. Responsibility
of Trustee for Conversion Provisions.

The
Trustee has no duty to determine when an adjustment under this Article 16 should
be made, how it should be made or what it should be. The Trustee makes no
representation as to the validity or value of any securities or assets issued
upon conversion of Debentures. The Trustee shall not be responsible for any
failure of the Company to comply with this Article 16. Each Conversion Agent
other than the Company shall have the same protection under this Section 16.11
as the Trustee. 

The
rights, privileges, protections, immunities and benefits given to the Trustee
under the Indenture including, without limitation, its rights to be indemnified,
are extended to, and shall be enforceable by, the Trustee in each of its
capacities hereunder, and each Paying Agent or Conversion Agent acting
hereunder. 

SECTION
16.12. Unconditional
Right of Holders to Convert.

Notwithstanding
any other provision in this Indenture, the Holder of any Debenture shall have
the right, which is absolute and unconditional, to convert its Debenture in
accordance with this Article 16 and to bring an action for the enforcement of
any such right to convert, and such rights shall not be impaired or affected
without the consent of such Holder. 

 

 

55

SECTION
16.13. Cash
Conversion Option.

(a)
 If a
Holder elects to convert all or any portion of a Debenture into shares of Class
A Common Stock as set forth in Section 16.1, the Company may choose to satisfy
all or any portion of its conversion obligation (the “Conversion Obligation”) in
cash. Upon such election, the Company will notify such Holder through the
Trustee of the dollar amount to be satisfied in cash (which must be expressed
either as a percentage of the Conversion Obligation or as a fixed dollar amount)
at any time on or before the date that is two Business Days following receipt of
written notice of conversion as specified in Section 16.2 (such period, the
“Cash Settlement Notice Period”). If the Company elects to pay cash for any
portion of the shares otherwise issuable to the Holder, the Holder may retract
the conversion notice at any time during the two Business Day period beginning
on the day after the final day of the Cash Settlement Notice Period (a
“Conversion Retraction Period”); no such retraction may be made (and a
conversion notice shall be irrevocable) if the Company does not elect to deliver
cash in lieu of shares (other than cash in lieu of fractional shares). If the
conversion notice has not been retracted, then settlement (in cash and/or
shares) will occur on the Business Day following the final day of the 20 Trading
Day period beginning on the day after the final day of the Conversion Retraction
Period (the “Cash Settlement Averaging Period”). Settlement amounts will be
computed as follows: 

(i) if the
Company elects to satisfy the entire Conversion Obligation in shares of Class A
Common Stock, the Company will deliver to such Holder a number of shares equal
to (1) the aggregate original principal amount at maturity of the Debentures to
be converted divided by 1,000, multiplied by (2) the Conversion Rate;

(ii)
 if the
Company elects to satisfy the entire Conversion Obligation in cash, the Company
will deliver to such Holder cash in an amount equal to the product of:

(1) a
number equal to (x) the aggregate original principal amount at maturity of
Debentures to be converted divided by 1,000, multiplied by (y) the Conversion
Rate, and 

(2) the
average Sale Price of the Class A Common Stock during the Cash Settlement
Averaging Period; and 

(iii)
 if the
Company elects to satisfy a fixed portion (other than 100%) of the Conversion
Obligation in cash, the Company will deliver to such Holder such cash amount
(“Cash Amount”) and a number of shares equal to the excess, if any, of the
number of shares calculated as set forth in clause (i) above over the number of
shares equal to the sum, for each day of the Cash Settlement Averaging Period,
of (x) the pro rated portion of the Cash Amount for such day divided by (y) the
Sale Price of the Class A Common Stock on such day. 

Notwithstanding
the foregoing, a Debenture in respect of which a Holder has delivered a Purchase
Notice or Change of Control Purchase Notice exercising such Holder’s option to
require the Company to repurchase such Debenture may be converted as described
in this Section 16.13 (a) only if such notice of exercise is withdrawn in
accordance with the Section 13.4 hereof. 

56

 

(b)
 If a
Holder elects to convert all or any portion of a Debenture into shares of Class
A Common Stock after the Company has exercised its right to redeem all or any
portion of the Debentures pursuant to Section 5 of the Debentures or within 20
days of the Stated Maturity, the Company may choose to satisfy all or any
portion of the Conversion Obligation in cash provided the Company notifies such
Holder through the Trustee of the dollar amount to be satisfied in cash (which
must be expressed either as a percentage of the Conversion Obligation or as a
fixed dollar amount) at any time on or before the date that is 20 days prior to
Stated Maturity or Redemption Date. Settlement amounts will be computed in the
same manner as set forth in (a) above except that the “Cash Settlement Averaging
Period” shall be the 20 Trading Day period beginning on the day after the Stated
Maturity or Redemption Date, as the case may be. Settlement (in cash and/or
shares) will occur on the Business Day following the final day of such Cash
Settlement Averaging Period. 

 

Section
2.12 Trustee’s
Right to Exercise Remedies Against Security. 

Notwithstanding
anything to the contrary in this First Supplemental Indenture, upon an Event of
Default under their respective indentures, the Trustee under this First
Supplemental Indenture, the trustee under the indenture governing the 8.50%
Monthly Income Senior Notes due 2018 and the trustee or other authorized
representative of any other secured Indebtedness issued pursuant to the terms of
the Indenture each have the right to exercise remedies against the Collateral
and Additional Collateral for the benefit of the holders of, respectively, these
Debentures and the 8.50% Monthly Income Senior Notes due 2018 and such other
secured Indebtedness. Any recoveries shall be for the equal and ratable benefit
of such holders. 

 

Section
2.13 Trustee
to Hold Collateral and Additional Collateral. 

The
Trustee or the Collateral Agent shall hold any and all Collateral and any
Additional Collateral for the purpose of perfecting the security interest of the
Holders of the Debentures, the holders of the Company’s 8.50% Monthly Income
Senior Notes due 2018 and the holders of any other secured Indebtedness issued
pursuant to the terms of the Indenture. The Trustee hereby acknowledges, and any
Collateral Agent shall similarly acknowledge in any Collateral Agent Agreement,
that, to the extent it is holding the Collateral or any Additional Collateral,
it is holding the Collateral and any Additional Collateral for the equal and
ratable benefit of the Holders of the Debentures, the holders of the Company’s
8.50% Monthly Income Senior Notes due 2018 and the holders of any other secured
Indebtedness issued pursuant to the terms of the Indenture, that the security
interest of each of such series of Securities is subject to the security
interest of the other such series of Securities and acknowledges that the
Trustee shall act in accordance with the provisions of Section 2.12 of this
First Supplemental Indenture and that each trustee shall have the right to
exercise remedies against the Collateral and any Additional Collateral.

 

57

Section
2.14 Additional
Amounts. 

Notwithstanding
the provisions of Sections 5.8 and 10.4 of the Original Indenture, or any other
provision thereof, the Company shall not be obligated to pay, and a Holder shall
have no right to receive, any Additional Amounts with respect to the Debentures.

ARTICLE
III

 

ADDITIONAL
COVENANTS 

 

In
addition to the covenants and agreements contained in the Original Indenture,
the Company covenants and agrees for the benefit of the Holders of the
Debentures (all of which covenants and agreements, other than the covenants
contained in Sections 3.01, 3.02, 3.04, 3.06 and 3.08, will terminate on July 1,
2009 unless a Default or Event of Default shall have occurred and be continuing)
as follows: 

 

Section
3.01 Maintenance
of Properties. 

The
Company will cause all properties used or useful in the conduct of its business
or the business of any Subsidiary of the Company to be maintained and kept in
good condition, repair and working order, normal 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 reasonable 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 reasonable judgment of the Company, desirable in the conduct of its business
or the business of any Subsidiary of the Company and not disadvantageous in any
material respect to the Holders. 

 

Section
3.02 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 of the Company or upon the
income, profits or property of the Company or any Subsidiary of the Company, 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 of the
Company; 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
3.03 Limitation
on Liens on Capital Stock of Restricted Subsidiaries. 

The
Company will not, and it will not permit any Restricted Subsidiary of the
Company to, at any time directly or indirectly create, assume, incur or permit
to exist any Indebtedness secured by a Lien on the Capital Stock of any
Restricted Subsidiary without making effective provision whereby the Debentures,
the Company’s 8.50% Monthly Income Senior Notes due 2018 and any other secured
Indebtedness issued pursuant to the terms of the Indenture shall be secured by a
first Lien on such Capital Stock, which is senior and prior to such Lien
securing such other Indebtedness so long as such other Indebtedness shall be
secured. 

 

58

Section
3.04 Limitation
on Sale or Issuance of Capital Stock of Restricted Subsidiaries. 

The
Company will not issue, sell, lease, transfer or otherwise dispose of any
Capital Stock of any Restricted Subsidiary, except to a Wholly Owned Restricted
Subsidiary of the Company, nor will it permit any Restricted Subsidiary to issue
(other than to the Company or to a Wholly Owned Restricted Subsidiary of the
Company) any Capital Stock (other than directors’ qualifying shares) of a
Restricted Subsidiary if, after giving effect to any such transaction, such
Subsidiary would not continue to be a Wholly Owned Restricted Subsidiary.
Notwithstanding the foregoing, (i) the Company may merge or consolidate any
Wholly Owned Restricted Subsidiary into or with another Wholly Owned Restricted
Subsidiary and (ii) the Company may, subject to the provisions of Section 3.06
of this First Supplemental Indenture, sell, lease, transfer or otherwise dispose
of the entire Capital Stock of a Restricted Subsidiary at one time for cash
consideration for at least fair market value consideration, as determined by the
Board of Directors pursuant to a Board Resolution adopted in good faith and
supported by an opinion as to fairness from a financial point of view by an
Independent Financial Advisor of recognized standing, so long as (1) the Net
Cash Proceeds received by the Company (or its Restricted Subsidiaries, as the
case may be) from such issue, sale, lease, transfer or other disposition are
applied in accordance with Section 13.2(b) and (2) the Debentures, the Company’s
8.50% Monthly Income Senior Notes due 2018 and any other secured Indebtedness
issued pursuant to the terms of the Indenture shall thereafter be secured by a
first Lien on any Collateral or Additional Collateral, which is senior and prior
to any Lien on such Collateral or Additional Collateral securing any other
Indebtedness of the Company or any Restricted Subsidiary. 

Additionally,
the Company covenants to do or cause to be done all things necessary to perfect
the first priority security interests in such portion of any additional Capital
Stock that may be issued in accordance with this Section in order to maintain
the Trustee’s Lien on the appropriate percentage of each Subsidiary’s Capital
Stock in accordance with Sections 1.03 and 3.08 of this Indenture. To the extent
that the assets which are the subject of any Asset Sale constitute Collateral,
all proceeds thereof shall, to the extent permitted by law, be subject to a
perfected Lien in favor of the Collateral Agent, and all proceeds constituting
cash and Cash Equivalents received from such an Asset Sale shall be deposited in
the account under the control of the Collateral Agent established by the
Collateral Agent Agreement. 

 

Section
3.05 Limitation
on Restricted Payments. 

The
Company will not, and will not cause or permit any of its Restricted
Subsidiaries to, directly or indirectly: 

(a) declare
or pay any dividend or make any distribution (other than dividends or
distributions payable in Qualified Capital Stock of the Company) on or in
respect of shares of the Company’s Capital Stock to holders of such Capital
Stock (other than to the Company or a Restricted Subsidiary); 

59

 

(b) purchase,
redeem or otherwise acquire or retire for value any Capital Stock of the Company
or any Restricted Subsidiary or any warrants, rights or options to purchase or
acquire shares of any class of such Capital Stock (other than any Indebtedness
convertible into Capital Stock of the Company, excluding any such shares of
Capital Stock, warrants, rights or options owned by the Company or any
Restricted Subsidiary); or 

(c) redeem,
defease, repurchase, retire or otherwise acquire or retire for value prior to
any scheduled maturity repayment or sinking fund payment, Indebtedness of the
Company which is subordinate in right of payment to the Debentures; and

(d) make any
Investment (other than Permitted Investments); 

(each of
the foregoing actions set forth in clauses (a), (b),(c) and (d) being referred
to as a “Restricted Payment”), if at the time of such Restricted Payment or
immediately after giving effect thereto and to the incurrence of any
Indebtedness incurred to finance such Restricted Payment, 

(i) a Default
or an Event of Default shall have occurred and be continuing; or 

(ii) (x) the
Ratio Test is not met; (y) the ratio of policyholders’ surplus to ACL RBC for
each of the Insurance Subsidiaries for the last reported fiscal quarter is less
than 250%; or (z) the ratio of combined policyholders surplus of all of the
Insurance Subsidiaries to consolidated long-term Indebtedness of the Company is
less than 2.0 to 1.0; or 

(iii) the
aggregate amount of Restricted Payments (including such proposed Restricted
Payment) made subsequent to the Issue Date (the amount expended for such
purposes, if other than in cash, being the fair market value of such property as
determined in good faith by the Board of Directors of the Company) shall exceed
the sum of: 

(1) 50% of
the cumulative Consolidated Net Income (or if cumulative Consolidated Net Income
shall be a loss, minus 100% of such loss) of the Company earned subsequent to
the Issue Date and on or prior to the date the Restricted Payment occurs (the
“Reference Date”) (treating such period as a single accounting period); plus

(2) 100% of
the aggregate Net Cash Proceeds received by the Company from any Person (other
than a Subsidiary of the Company) from the issuance and sale subsequent to the
Issue Date and on or prior to the Reference Date of Qualified Capital Stock of
the Company or warrants, options or other rights to acquire Qualified Capital
Stock of the Company (but excluding any debt security that is convertible into,
or exchangeable for, Qualified Capital Stock); plus 

(3) without
duplication of any amounts included in clause (iii)(1) above, 100% of the
aggregate Net Cash Proceeds of any equity contribution received by the Company
from a holder of the Company s Capital Stock (excluding, in the case of clauses
(iii)(2) and (3), any Net Cash Proceeds from an Equity Offering to the extent
used to redeem or purchase the Debentures in compliance with the provisions set
forth in Sections 13.1 and 13.2 of the
Indenture); plus 

60

 

(4) 100% of
the proceeds of any Indebtedness of the Company or any Restricted Subsidiary
incurred after the Issue Date that has been converted into or exchanged for
Qualified Capital Stock of the Company; plus 

(5) without
duplication, the sum of: 

a. the
aggregate amount returned in cash to the Company on or with respect to
Investments (other than Permitted Investments) made subsequent to the Issue Date
whether through interest payments, principal payments, dividends or other
distributions or payments and not included in clause (iii)(1) above;

b. the Net
Cash Proceeds received by the Company from the disposition of all or any portion
of such Investments (other than to a Subsidiary of the Company); and

c. upon
redesignation of an Unrestricted Subsidiary as a Restricted Subsidiary, the fair
market value of such Subsidiary; 

provided,
however, that
the sum of clauses (a), (b) and (c) above shall not exceed the aggregate amount
of all such Investments made subsequent to the Issue Date. 

Notwithstanding
the foregoing, the provisions set forth in the immediately preceding paragraph
do not prohibit (provided that with respect to clause (b) or (e) below no
Default or Event of Default shall have occurred and be continuing):

(a) the
payment of any dividend within 60 days after the date of declaration of such
dividend if the dividend would have been permitted on the date of declaration;

(b) the
redemption, repurchase or retirement or other acquisition of any shares of
Capital Stock of the Company or any Restricted Subsidiary, either (i) solely in
exchange for shares of Qualified Capital Stock of the Company or (ii) through
the application of Net Cash Proceeds of a substantially concurrent sale for cash
(other than to a Subsidiary of the Company) of shares of Qualified Capital Stock
of the Company; 

(c) any
purchase, repurchase, redemption, defeasance or other acquisition or retirement
for value of Indebtedness of the Company which is subordinate in right of
payment to the Debentures (“Repurchased Subordinated Indebtedness”) made by
exchange for, or out of the proceeds of the substantially concurrent sale of,
Indebtedness, provided, however, that: 

(i) such
Indebtedness has a Stated Maturity no earlier than the Stated Maturity of the
Repurchased Subordinated Indebtedness; 

61

 

(ii) such
Indebtedness has an Average Life at the time it is Incurred that is equal to or
greater than the Average Life of the Repurchased Subordinated Indebtedness; and

(iii) such
Indebtedness has an aggregate principal amount (or if Incurred with original
issue discount, an aggregate issue price) that is equal to or less than the
aggregate principal amount (or if Incurred with original issue discount, the
aggregate accreted value) then outstanding or committed (plus fees and expenses,
including any premium and defeasance cost) under the Repurchased Subordinated
Indebtedness; 

(d) the
deemed repurchase of Capital Stock of the Company or any Restricted Subsidiary
upon the exercise of stock options; 

(e) pro rata
dividends or other distributions made by a Restricted Subsidiary to minority
holders of equity interests in such Restricted Subsidiary; and 

(f) other
Restricted Payments in an aggregate amount not to exceed ten million dollars
($10,000,000) since the Issue Date. 

In
determining the aggregate amount of Restricted Payments made subsequent to the
Issue Date in accordance with clause (iii) of the first paragraph of this
Section 3.05, amounts expended pursuant to clauses (a), (b)(ii) and (f) shall be
included in such calculation. 

Under
GAAP, Consolidated Net Income is not reduced by unrealized losses or increased
by unrealized gains. 

Section
3.06 Merger,
Consolidation and Sale of Assets. 

The
Company will not, in a single transaction or series of related transactions,
consolidate or merge with or into any Person, continue in another jurisdiction,
or sell, assign, transfer, lease, convey or otherwise dispose of (or cause or
permit any Restricted Subsidiary of the Company to sell, assign, transfer,
lease, convey or otherwise dispose of) all or substantially all of the Company’s
assets (determined on a consolidated basis for the Company and its Restricted
Subsidiaries) whether as an entirety or substantially as an entirety to any
Person unless: 

(a) either:

(i) the
Company shall be the surviving or continuing corporation; or 

(ii) the
Person (if other than the Company) formed by such consolidation or into which
the Company is merged or the Person which acquires by sale, assignment,
transfer, lease, conveyance or other disposition the properties and assets of
the Company and its Restricted Subsidiaries substantially as an entirety (the
“Surviving Entity”): 

62

 

(x) shall
be a corporation organized and validly existing under the laws of the United
States or any State thereof or the District of Columbia; provided that if the
Person is a partnership or limited liability company, a corporation wholly owned
by such Person organized or existing under the laws of the United States, any
state of the United States or the District of Columbia that does not and will
not have any material assets or operations, shall promptly thereafter become a
co-issuer of the Debentures pursuant to a supplemental indenture; and

(y) shall
expressly assume, by supplemental indenture (in form and substance satisfactory
to the Trustee), executed and delivered to the Trustee, the due and punctual
payment of the principal of, and premium, if any, and interest on all of the
Debentures and the performance of every covenant of the Debentures and, the
Indenture on the part of the Company to be performed or observed; 

(b) immediately
after giving effect to such transaction and the assumption contemplated by
clause (a)(ii)(y) above (including giving effect to any Indebtedness and
Acquired Indebtedness incurred or anticipated to be incurred in connection with
or in respect of such transaction), the Company or such Surviving Entity, as the
case may be, shall meet the Ratio Test; 

(c) immediately
before and immediately after giving effect to such transaction and the
assumption contemplated by clause (a)(ii)(y) above (including, without
limitation, giving effect to any Lien granted in connection with or in respect
of the transaction), no Default or Event of Default shall have occurred or be
continuing; and 

(d) the
Company or the Surviving Entity shall have delivered to the Trustee an Officer’s
Certificate and an Opinion of Counsel, each stating that such consolidation,
merger, sale, assignment, transfer, lease, conveyance or other disposition and,
if a supplemental indenture is required in connection with such transaction,
such supplemental indenture comply with the applicable provisions of the
Indenture and that all conditions precedent in the Indenture relating to such
transaction have been satisfied. 

Notwithstanding
clause (b) of the immediately preceding paragraph, any Restricted Subsidiary may
consolidate or combine with, merge into or transfer all or part of its
properties and assets to the Company or another Wholly Owned Restricted
Subsidiary. 

For
purposes of the foregoing, the transfer (by lease, assignment, sale or
otherwise, in a single transaction or series of transactions) of all or
substantially all of the properties or assets of one or more Restricted
Subsidiaries, the Capital Stock of which constitutes all or substantially all of
the properties and assets of the Company, shall be deemed to be the transfer of
all or substantially all of the properties and assets of the Company.

Upon any
consolidation, combination or merger or any transfer (other than a lease) of all
or substantially all of the assets of the Company in accordance with the
foregoing in which the Company is not the continuing corporation, the successor
Person formed by such consolidation or into which the Company is merged or to
which such conveyance, lease or transfer is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company
hereunder and the Debentures. 

 

 

63

 

Section
3.07 Limitations
on Transactions with Affiliates. 

(a) The
Company will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly, enter into or suffer to exist any transaction or series
of related transactions (including, without limitation, the purchase, sale,
lease or exchange of any property or the rendering of any service) with, or for
the benefit of, any of its Affiliates (each, an “Affiliate Transaction”), other
than (x) Affiliate Transactions permitted under clause (c) of this covenant and
(y) Affiliate Transactions on terms that are on the whole no less favorable than
those that might reasonably have been obtained in a comparable transaction at
such time on an arm’s-length basis from a Person that is not an Affiliate of the
Company or such Restricted Subsidiary. 

(b) All
Affiliate Transactions (and each series of related Affiliate Transactions which
are similar or part of a common plan) involving aggregate payments or other
property with a fair market value in excess of five million dollars ($5,000,000)
shall be approved by the Board of Directors (and by a majority of the
Disinterested Directors) of the Company or such Restricted Subsidiary, as the
case may be, such approval to be evidenced by a Board Resolution stating that
such Board of Directors has determined that such transaction complies with the
foregoing provisions. If the Company or any Restricted Subsidiary of the Company
enters into an Affiliate Transaction (or a series of related Affiliate
Transactions related to a common plan) that involves an aggregate fair market
value of more than fifteen million dollars ($15,000,000), the Company or such
Restricted Subsidiary, as the case may be, shall, prior to the consummation
thereof, obtain a favorable opinion as to the fairness of such transaction or
series of related transactions to the Company or the relevant Restricted
Subsidiary, as the case may be, from a financial point of view, from an
Independent Financial Advisor and file the same with the Trustee. 

(c) The
restrictions set forth in paragraphs (a) and (b) of this Section 3.07 shall not
apply to: 

(i) reasonable
fees, compensation benefits and incentives paid to, and indemnity provided on
behalf of, officers, directors, employees or consultants of the Company or any
Restricted Subsidiary of the Company as determined in good faith by the
Company’s Board of Directors or senior management; 

(ii) transactions
exclusively between or among the Company and any of its Restricted Subsidiaries
or exclusively between or among such Restricted Subsidiaries, so long as such
transactions are not otherwise prohibited by the Indenture; 

(iii) any
agreement as in effect as of the Issue Date or any amendment thereto or any
transaction contemplated thereby (including pursuant to any amendment thereto)
or in any replacement agreement thereto so long as any such amendment or
replacement agreement is not more disadvantageous to the Holders in any material
respect than the original agreement; 

64

 

(iv) Restricted
Payments permitted by Section 3.05 of this First Supplemental Indenture;

(v) customary
stockholders and registration rights agreements among the Company or any
Restricted Subsidiary and the stockholders thereof; and 

(vi) ordinary
course insurance or reinsurance contracts or other agreements with respect to
the provision of services (a) requiring approval of any governmental or
regulatory insurance agency that are so approved by such agency (and on the
terms so approved), or (b) requiring the passage of time to have occurred
without disapproval of any governmental or regulatory insurance agency for which
the required time has passed (and on the terms presented to such agency).

Section
3.08 Protection
of Collateral and the Additional Collateral. 

The
Company will from time to time execute and deliver all such supplements and
amendments hereto and all such filings, financing statements, continuation
statements, instruments of further assurance and other instruments, and will
take such other action necessary or advisable to: 

(a) maintain
and preserve the Lien and security interest (and the priority thereof) granted
to the Trustee in the Collateral and the Additional Collateral pursuant to this
Indenture or carry out more effectively the purposes hereof; 

(b) perfect,
publish notice of or protect the validity of any grant of security made or to be
made by this Indenture; 

(c) enforce
the Lien granted to the Trustee in any of the Collateral or the Additional
Collateral; 

(d) preserve
and defend title to the Collateral or the Additional Collateral and the rights
of the Trustee, the Collateral Agent and the Holders of the Debentures in the
Collateral and the Additional Collateral against the claims of all Persons and
parties; and 

(e) pay any
and all taxes levied or assessed up on all or any part of the Collateral or the
Additional Collateral. 

The
Company hereby authorizes the Trustee to file and designates the Trustee its
agent and attorney-in-fact to execute and file any financing statement,
continuation statement or other instrument required by the Trustee pursuant to
this Section 3.08 of the Indenture. 

 

65

 

Section
3.09 The
Company to Remain a Holding Company. 

During
the time any Debentures are Outstanding under this Indenture, the Company shall
conduct no activities other than as a holding company. 

 

Section
3.10 Limitation
on Incurrence of Additional Indebtedness. 

The
Company shall not create, incur, assume, guarantee, acquire or become liable for
(collectively, “incur”) any Indebtedness (other than Permitted Indebtedness),
unless the Ratio Test is met on a pro forma basis for such incurrence or the
ratio of consolidated debt to total capitalization of the Company as of the end
of the last reported fiscal quarter of the Company, on a pro forma basis giving
effect to such incurrence, is less than 35%. 

“Permitted
Indebtedness” means, without duplication, each of the following: 

(1) Indebtedness
issued under the Indenture in an aggregate principal amount not to exceed
$101,250,000; 

(2) other
Indebtedness outstanding on the date of issuance of the Debentures;

(3) interest
swap obligations; provided, however, that the notional principal amount of such
interest swap obligation does not, at the time of the incurrence thereof, exceed
the principal amount of the Indebtedness to which such interest swap obligation
relates; 

(4) Indebtedness
under currency agreements; provided that in the case of currency agreements
which relate to Indebtedness, such currency agreements do not increase the
Indebtedness of the Company outstanding other than as a result of fluctuations
in foreign currency exchange rates or by reason of fees, indemnities and
compensation payable thereunder; 

(5) Indebtedness
of the Company to a Wholly Owned Restricted Subsidiary of the Company for so
long as such Indebtedness is held by a Wholly Owned Restricted Subsidiary of the
Company or the holder of a Lien permitted under this Indenture (a “Permitted
Lien”), in each case subject to no Lien other than a Permitted Lien; provided
that (a) any Indebtedness of the Company to any Wholly Owned Restricted
Subsidiary of the Company is unsecured and subordinated, pursuant to a written
agreement, to the Company’s obligations under this Indenture and the new
debentures and (b) if as of any date any Person other than a Wholly Owned
Restricted Subsidiary of the Company or the holder of a Permitted Lien owns or
holds any such Indebtedness or any Person holds a Lien in respect of such
Indebtedness, such date shall be deemed the incurrence of Indebtedness not
constituting Permitted Indebtedness under this clause (5) by the Company;

(6) Indebtedness
arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument inadvertently (except in the case of daylight
overdrafts) drawn against insufficient funds in the ordinary course of business;
provided, however, that such Indebtedness is extinguished within two business
days of incurrence; 

66

 

(7) Indebtedness
in respect of performance bonds, bankers’ acceptances, workers’ compensation
claims, surety or appeal bonds, payment obligations in connection with
self-insurance or similar obligations, letters of credit issued to secure claim
obligations, and bank overdrafts (and letters of credit in respect thereof) in
the ordinary course of business; 

(8) Indebtedness
represented by Capital Lease Obligations and purchase money indebtedness of the
Company and its Restricted Subsidiaries incurred in the ordinary course of
business not to exceed $15,000,000 at any one time outstanding (which may not be
secured by Liens on the Collateral or the Additional Collateral); 

(9) Refinancing
Indebtedness (defined below); 

(10) Indebtedness
consisting of guarantees, indemnities or obligations in respect of purchase
price adjustments in connection with the acquisition or disposition of assets;
and 

(11) Indebtedness
of the Company to the extent the proceeds are used to pay interest on the
Debentures substantially concurrently with the incurrence thereof. 

For
purposes of determining compliance with this covenant, in the event that an item
of Indebtedness meets the criteria of more than one of the categories of
Permitted Indebtedness described in clauses (1) through (11) above, the Company
may, in its sole discretion, classify (or later reclassify) such item of
Indebtedness in any manner that complies with this covenant. Accrual of
interest, accretion or amortization of original issue discount, the payment of
interest on any Indebtedness in the form of additional Indebtedness with the
same terms, and the payment of dividends on Disqualified Capital Stock in the
form of additional shares of the same class of Disqualified Capital Stock will
not be deemed to be an incurrence of Indebtedness or an issuance of Disqualified
Capital Stock for purposes of this covenant. 

“Refinancing
Indebtedness” means any refinancing of indebtedness incurred in accordance with
this covenant, in each case that does not: 

(1) result in
an increase in the aggregate principal amount of Indebtedness of such Person as
of the date of such proposed refinancing (plus the amount of any premium
required to be paid under the terms of the instrument governing such
Indebtedness and plus the amount of reasonable expenses incurred by such Person
in connection with such refinancing); or 

(2) create
Indebtedness with: (a) an Average Life that is less than the Average Life of the
Indebtedness being refinanced; or (b) a final maturity earlier than the final
maturity of the Indebtedness being refinanced; provided that if such
Indebtedness being refinanced is subordinated or junior to the new debentures,
then such Refinancing Indebtedness shall be subordinated or junior to the new
debentures at least to the same extent and in the same manner as the
Indebtedness being refinanced. 

67

 

ARTICLE
IV

 

MISCELLANEOUS
PROVISIONS 

Section
4.01 Recitals
by Company. 

The
recitals in this First Supplemental Indenture are made by the Company only and
not by the Trustee, and all of the provisions contained in the Original
Indenture in respect of the rights, privileges, immunities, powers and duties of
the Trustee shall be applicable in respect of the Debentures and of this First
Supplemental Indenture as fully and with like effect as if set forth herein in
full. 

 

Section
4.02 Ratification
and Incorporation of Original Indenture. 

As
supplemented hereby, the Original Indenture is in all respects ratified and
confirmed, and the Original Indenture and this First Supplemental Indenture
shall be read, taken and construed as one and the same instrument. 

 

Section
4.03 Executed
in Counterparts. 

This
First Supplemental Indenture may be simultaneously executed in several
counterparts, each of which shall be deemed to be an original, and such
counterparts shall together constitute but one and the same instrument.

68

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

PMA
CAPITAL CORPORATION

By:
/s/
William E. Hitselberger

William
E. Hitselberger

Senior
Vice President, Chief Financial Officer and Treasurer

U.S. BANK
NATIONAL ASSOCIATION, as Trustee

By:
/s/
Michael M. Hopkins

Michael
M. Hopkins

Vice
President

69

EXHIBIT A

THIS
DEBENTURE Form of
6.50% Senior Secured Convertible Debenture due September 30, 2022 

[The
following legends apply only if the Debenture is a global 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 DEBENTURE
MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A DEBENTURE REGISTERED, AND NO
TRANSFER OF THIS DEBENTURE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF
ANY PERSON OTHER THAN SUCH DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 

UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT AND SUCH CERTIFICATE ISSUED IN EXCHANGE FOR THIS CERTIFICATE IS
REGISTERED IN THE NAME OF CEDE & CO., OR SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY, ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL, SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 

FOR
PURPOSES OF SECTION 1273 AND 1275 OF THE INTERNAL REVENUE CODE, THIS DEBENTURE
IS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR UNITED STATES FEDERAL INCOME TAX
PURPOSES. THE ISSUE DATE IS NOVEMBER 15, 2004 AND THE YIELD TO MATURITY FOR
PURPOSES OF ACCRUING ORIGINAL ISSUE DISCOUNT IS 6.50% PER ANNUM. 

A-1

PMA
CAPITAL CORPORATION

6.50%
Senior Secured Convertible Debenture due September 30, 2022 

 

	
       

      No.
      1
	
      CUSIP:
      693419AA1            

	
      Issue
      Date: November 15, 2004
	
      Principal
      Amount: $ ______  

 

PMA
CAPITAL CORPORATION, a Pennsylvania corporation, promises to pay to ________
or
registered assigns, the principal amount of              Dollars
($            ) on
September 30, 2022. 

Interest
Payment Dates: March 30 and September 30, commencing March 30, 2005.

Record
Dates: March 15 and September 15. 

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

IN
WITNESS WHEREOF, PMA Capital Corporation has caused this instrument to be duly
executed under its corporate seal. 

	
       

       Dated:
      ___________________
	
      PMA
      CAPITAL CORPORATION

	 	
      By:
	
      __________________________________________

	 	
       
	
       
      Name:

	 	
       
	
       
      Title:

 

	
       

      Attest:
      ________________________

	
      Name:

	
      Title:

 

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION 

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

	
       

      U.S.
      BANK NATIONAL ASSOCIATION,

      as
      Trustee

	
      By:
	
       

	
       
	
       
      Authorized Signatory

 

A-2

 

[FORM OF
REVERSE OF GLOBAL SECURITY] 

6.50%
Senior Secured Convertible Debenture due September 30, 2022 

This
Debenture is one of a duly authorized issue of 6.50% Senior Secured Convertible
Debentures due September 30, 2022 (the “Debentures”) of PMA Capital Corporation,
a Pennsylvania corporation (including any successor corporation under the
Indenture hereinafter referred to, the “Company”) issued under an Indenture,
dated as of November 15, 2004 (the “Original Indenture”), as supplemented by the
First Supplemental Indenture, dated as of November 15, 2004 (the “First
Supplemental Indenture”, and together with the Original Indenture, the
“Indenture”), between the Company and U.S. Bank National Association, as trustee
(the “Trustee”, which term includes any successor trustee under the Indenture),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitation of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the
Debentures issued thereunder and of the terms upon which said Debentures are,
and are to be, authenticated and delivered. To the extent permitted by
applicable law, in the event of any inconsistency between the terms of this
Debenture and the terms of the Indenture, the terms of the Indenture shall
control. Capitalized terms used but not defined herein have the meanings
assigned to them in the Indenture unless otherwise indicated. 

1. Interest.

General. The
Company promises to pay interest on the principal amount of the Debentures at
the interest rate specified herein from the date of issuance until repayment in
full at September 30, 2022, conversion, redemption or purchase. The Company will
pay interest on this Debenture semi-annually in arrears on March 30 and
September 30 of each year (each, an “Interest Payment Date”), commencing March
30, 2005. The Company will pay interest in cash. 

(a) The
Debentures shall bear interest from the Issue Date until the principal amount
thereof is paid or made available for payment, or until such date on which the
Debentures are converted, redeemed or purchased as provided herein at a rate of
6.50% per annum. 

(b) Interest
on the Debentures shall be computed on the basis of a 360-day year of twelve
30-day months and, for such periods of less than a month, the actual number of
days elapsed over a 30-day month. Holders are not entitled to receive contingent
interest. 

(c) If this
Debenture is redeemed or the Holder elects to require the Company to purchase
this Debenture pursuant to Section 7 of this Debenture, on a date that is after
the Regular Record Date and on or prior to the corresponding Interest Payment
Date, interest, if any, accrued and unpaid hereon to but not including the
applicable Redemption Date, Purchase Date or Change of Control Purchase Date as
the case may be will be paid to the Holder of record on the Regular Record Day.

A-3

Interest
on Debentures converted after a Regular Record Date but prior to the
corresponding Interest Payment Date will be paid to the Holder of the Debentures
on the record date but, all Holders agree, by their acceptance of a Debenture
that upon conversion, the Holder must pay the Company the interest, which has
accrued and will be paid on such Interest Payment Date. No such payment need be
made with respect to Debentures which will be redeemed after a Regular Record
Date but prior to the corresponding Interest Payment Date. 

If the
principal amount hereof or any portion of such principal amount or any interest,
if any, on any Debenture is not paid when due (whether upon acceleration
pursuant to Section 5.2 of the Indenture or on the Stated Maturity or on the
Redemption Date, Purchase Date, Change of Control Purchase Date or Asset Sale
Purchase Date), then in each such case the overdue amount shall, to the extent
permitted by law, bear interest at the applicable interest rate, compounded
semi-annually, which interest shall accrue from the date such overdue amount was
originally due to the date payment of such amount, including interest thereon,
has been made or duly provided for. All such interest shall be payable on
demand. 

2. Method
of Payment.

Except as
provided below, interest will be paid (i) on a global Debenture to the
Depositary in immediately available funds, (ii) on any definitive Debentures
having an aggregate principal amount of $5,000,000 or less, by check mailed to
the Holders of such Debentures; and (iii) on any definitive Debentures having an
aggregate principal amount of more than $5,000,000, by wire transfer in
immediately available funds at the election of the Holders of such Debentures.

At Stated
Maturity the Company will pay interest on (i) definitive Debentures at the
Company’s office or agency in New York City, which initially will be the Place
of Payment as provided in Section 10.2 of the Indenture and (ii) on global
Debentures to the Depositary in immediately available funds. 

Principal
(i) on definitive Debentures will be payable, upon Stated Maturity or when due,
in immediately available funds at the office or agency of the Company in New
York City, which, initially will be the Place of Payment as provided in Section
10.2 of the Indenture and (ii) on global Debentures to the Depositary in
immediately available funds. 

Subject
to the terms and conditions of the Indenture, the Place of Payment for the
Debentures and the place or places where the Debentures may be surrendered for
registration of transfer, exchange, repurchase, redemption or conversion and
where notices may be given to the Company in respect of the Debentures is at the
Corporate Trust Office of the Trustee or such other office or agency of the
Company as may be designated for such purpose. Payment of principal and interest
on the Debentures will be in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. 

3. Paying
Agent, Conversion Agent and Security Registrar.

Initially,
the Trustee will act as Paying Agent, Conversion Agent and Security Registrar
with respect to the Debentures. The Company may appoint and change any Paying
Agent, Conversion Agent or Security Registrar without notice, other than notice
to the Trustee. The Company may have one or more additional paying agents and
one or more additional conversion agents. The Company or any of its Subsidiaries
or any of their Affiliates may act as Paying Agent, Conversion Agent or Security
Registrar. 

A-4

 

4. Indenture
and Security for the Debentures.

The
Debentures are issued under the Indenture. The Company is limited in the amount
of indebtedness it can issue under the Indenture to $101,250,000. The Debentures
are general obligations of the Company limited to $84,140,000 aggregate
principal amount. The First Supplemental Indenture limits Liens on the Capital
Stock of Restricted Subsidiaries (as defined therein) and limits the amount of
Indebtedness that the Company can issue. The Debentures, along with certain
other securities of the Company, are secured by certain shares of the Capital
Stock of certain of the Company’s operating Subsidiaries, as set forth in the
Indenture. The security will be automatically released under certain
circumstances set forth in the Indenture. The Collateral and any Additional
Collateral will be held by a Collateral Agent under the terms of a Collateral
Agent Agreement. 

5. Redemption.

(a) At the
Option of the Company. At any
time from October 1, 2008, the Company, at its option, may redeem in principal
amounts of $1,000 or integral multiples of $1,000 the Debentures for cash as a
whole, or from time to time in part, at a Redemption Price of 114% of the
principal amount of the Debentures, plus accrued and unpaid interest, if any,
to, but excluding, the Redemption Date. 

(b) Mandatory
Redemption with Extraordinary Dividends. From
January 1, 2006 to December 31, 2006, in the event the Company receives any
Extraordinary Dividends from any of its subsidiaries, the Company shall redeem
the Debentures and certain other securities issued under the Original Indenture
pro rata in principal amounts of $1,000 or integral multiples of $1,000 with 50%
of the amount of such dividends for cash at a Redemption Price of 110% of the
principal amount of the Debentures plus accrued and unpaid interest, if any, to
the Redemption Date. The aggregate principal amount of Debentures plus any other
securities issued under the Indenture to be redeemed in this instance shall not
exceed $35,000,000. 

Debentures
or portions thereof to be redeemed as of a Redemption Date will be convertible
by the Holders of such Debentures until the close of business on the second
Business Day prior to the Redemption Date. 

6. Premium
Payable in Stock at Option of Holder.

Subject
to the terms of the Indenture, in connection with any premium payable to a
holder of the Debentures in connection with redemptions pursuant to Section 5
above and repurchases pursuant to Section 7 below, which, in each case, are as a
result of an event or action which occurs on or prior to June 30, 2009, each
holder will have the option to elect to receive such premium in shares of
Applicable Stock. For the purposes of calculating the number of shares issuable
to any Holder of the Debentures who elects to exercise such option, the shares
of Applicable Stock will be valued at $8.00 per share subject to adjustment as
set forth in the Indenture. The Company shall notify the Trustee and the Holders
of any premium in accordance with the terms of the Indenture. 

A-5

 

7. (a) Repurchase
By the Company at the Option of the Holder.

Subject
to the terms and conditions of the Indenture, the Company shall become obligated
to repurchase, at the option of the Holder, all or any portion of the Debentures
held by such Holder on June 30, 2009 in integral multiples of $1,000 at a
Purchase Price of 114% of the principal amount of the Debentures to be
repurchased, plus accrued and unpaid interest, if any, on such Debentures on the
Purchase Date. To exercise such right, a Holder shall deliver to the Company a
Purchase Notice containing the information set forth in the Indenture, at any
time from the opening of business on the date that is 20 Business Days prior to
such Purchase Date until the close of business on the third Business Day prior
to such Purchase Date, and shall deliver the Debentures to the Paying Agent as
set forth in the Indenture. 

(b) Purchase
of Debentures at Option of the Holder upon Change of Control.

Subject
to the terms and conditions of the Indenture, the Company shall become obligated
to purchase, at the option of the Holder, all or any portion of the Debentures
held by such Holder within 30 days after delivery of the Change of Control
Purchase Notice for a Change of Control Purchase Price equal to the price
payable as set forth below plus accrued and unpaid interest, if any, of such
Debenture on the Change of Control Purchase Date. The Change of Control Purchase
Price shall be paid in cash. 

 

	
       

       Purchase
      Date
	
       

      Purchase Price 

      as
      % of Principal

	
      From
      the date of issuance to and including September 30, 2005
	
      101%

	
      From
      October 1, 2005 to and including September 30, 2006
	
      103%

	
      From
      October 1, 2006 to and including September 30, 2007
	
      106%

	
      From
      October 1, 2007 to and including September 30, 2008
	
      110%

	
      From
      October 1, 2008 to and including June 30, 2009
	
      114%

	
      From
      July 1, 2009 to and including September 30, 2022
	
      101%

 

(c) Purchase
of Debentures at Option of Holder Upon an Asset Sale.

Subject
to the terms and the conditions of the Indenture, the Company shall become
obligated to purchase out of the Net Cash Proceeds (as defined in the Indenture)
of such sale, at the option of the Holder, all or any portion of the Debentures
held by such Holder within 20 Business Days after delivery of the Asset Sale
Purchase Notice for an Asset Sale Purchase Price equal to the Redemption Price
payable as set forth below plus accrued and unpaid interest, if any, of such
Debentures on the Asset Sale Purchase Date. The Asset Sale Purchase Price shall
be paid in cash. 

 

A-6

 

	
       

       Purchase
      Date
	
      Purchase Price

      as % of Principal

	
      From
      the date of issuance to and including September 30, 2005
	
      101
      %

	
      From
      October 1, 2005 to and including September 30, 2006
	
      103
      %

	
      From
      October 1, 2006 to and including September 30, 2007
	
      106
      %

	
      From
      October 1, 2007 to and including September 30, 2008
	
      110
      %

	
      From
      October 1, 2008 to and including June 30, 2009
	
      114
      %

	
      From
      July 1, 2009 to and including September 30, 2022
	
      100
      %

 

(d) Certain
Procedures.

Holders
have the right to withdraw any Purchase Notice or Change of Control or Asset
Sale Purchase Notice, as the case may be, by delivering to the Paying Agent a
written notice of withdrawal in accordance with the provisions of the Indenture.

If cash,
or Applicable Stock with respect to any applicable premium, sufficient to pay
the Purchase Price or Change of Control or Asset Sale Purchase Price, as the
case may be, of all Debentures or portions thereof to be purchased as of the
Purchase Date or the Change of Control or Asset Sale Purchase Date, as the case
may be, is deposited with the Paying Agent, on the Business Day following the
Purchase Date or the Change of Control or Asset Sale Purchase Date, interest
will cease to accrue on such Debentures (or portions thereof) immediately after
such Purchase Date or Change of Control or Asset Sale Purchase Date, and the
Holder thereof shall have no other rights as such other than the right to
receive the Purchase Price or Change of Control or Asset Sale Purchase Price
upon surrender of such Debenture. 

8. Notice
of Redemption, Change of Control Purchase or Asset Sale Purchase.

The
Company shall notify the Trustee and the Holders by mail of any redemption under
clause 5(a) above at least 30 but not more than 60 days prior to any redemption
and under clause 5(b) above no later than five (5) days after the receipt of an
Extraordinary Dividend and at least 20 Business Days but no more than 45
Business Days prior to any redemption, which notice will specify the amount of
the Extraordinary Dividend and the Redemption Date. Notice of a Change of
Control or of an Asset Sale pursuant to Section 7 of this Debenture will be
mailed no later than 30 days after the occurrence of a Change of Control or five
(5) days after the occurrence of an Asset Sale, as applicable, to the Trustee
and the Holders, each notice will contain certain information required by the
Indenture. If money sufficient to pay the Redemption, Change of Control or Asset
Sale Purchase Price of all Debentures (or portions thereof) to be redeemed on
the Redemption Date, Change of Control Purchase Date or Asset Sale Purchase Date
is deposited with the Paying Agent prior to or on the Redemption Date, or in the
case of a Change of Control Purchase Date or Asset Sale Purchase Date
immediately after such Change of Control Purchase Date or Asset Sale Purchase
Date, interest ceases to accrue on such Debentures or portions thereof.
Debentures in denominations larger than $1,000 of principal amount may be
redeemed in part but only in integral multiples of $1,000 of principal amount.

A-7

 

9. Conversion.

Subject
to and in compliance with the provisions of the Indenture, a Holder is entitled,
at such Holder’s option, to convert the Holder’s Debenture (or any portion of
the principal amount thereof that is $1,000 or an integral multiple $1,000),
into fully paid and nonassessable shares of Class A Common Stock at the
Conversion Rate in effect at the time of conversion. 

The
Company will notify Holders of any event triggering the right to convert the
Debentures as specified above in accordance with the Indenture. 

A
Debenture in respect of which a Holder has delivered a Purchase Notice or Change
of Control Purchase Notice, as the case may be, exercising the option of such
Holder to require the Company to purchase such Debenture may be converted only
if such Purchase Notice or Change of Control Purchase Notice, as the case may
be, is withdrawn in accordance with the terms of the Indenture. 

The
initial Conversion Price is $16.368 subject to adjustment in certain events
described in the Indenture. 

The
Conversion Rate, at any time, shall equal (A) $1,000 divided by (B) the
Conversion Price at such time, rounded to four (4) decimal places (rounded up if
the fifth decimal place thereof is five (5) or more and otherwise rounded down).

To
surrender a Debenture for conversion, a Holder must (1) complete and manually
sign the conversion notice below (or complete and manually sign a facsimile of
such notice) and deliver such notice to the Conversion Agent, (2) surrender the
Debenture to the Conversion Agent, (3) furnish appropriate endorsements and
transfer documents and (4) pay any transfer or similar tax, if required pursuant
to the Indenture. 

No
fractional shares of Class A Common Stock shall be issued upon conversion of any
Debenture. Instead of any fractional share of Class A Common Stock that would
otherwise be issued upon conversion of such Debenture, the Company shall pay a
cash adjustment as provided in the Indenture. 

No
payment or adjustment will be made for dividends on the shares of Class A Common
Stock, except as provided in the Indenture. 

On
conversion of a Debenture, accrued interest with respect to the converted
Debenture shall not be cancelled, extinguished or forfeited, but rather shall be
deemed to be paid in full to the Holder thereof through the delivery of the
Class A Common Stock (together with the cash payment, if any, in lieu of
fractional shares) in exchange for the Debenture being converted pursuant to the
terms hereof. 

A-8

 

Upon
conversion, the Company may choose to deliver, in lieu of Class A Common Stock,
cash or a combination of cash and Class A Common Stock in accordance with the
Indenture. 

If the
Company (i) is a party to a consolidation, merger or statutory share exchange
(ii) reclassifies the Class A Common Stock or (iii) conveys, transfers or leases
its properties and assets substantially as an entirety to any Person, the right
to convert a Debenture into shares of Class A Common Stock may be changed into a
right to convert it into securities, cash or other assets of the Company or such
other Person, in each case in accordance with the Indenture. 

10. Denominations;
Transfer; Exchange.

The
Debentures are in fully registered form, without coupons, in denominations of
$1,000 principal amount and integral multiples of $1,000. A Holder may transfer
or exchange Debentures in accordance with the Indenture. The Security Registrar
may require a Holder, among other things, to furnish appropriate endorsements
and transfer documents and to pay any taxes and fees required by law as
permitted by the Indenture. The Security Registrar need not transfer or exchange
any Debentures selected for redemption (except, in the case of a Debenture to be
redeemed in part, the portion of the Debenture not to be redeemed) or any
Debentures in respect of which a Purchase Notice or Change of Control Purchase
Notice has been given and not withdrawn (except, in the case of a Debenture to
be purchased in part, the portion of the Debenture not to be purchased) or any
Debentures for a period of 15 days before the mailing of a notice of redemption
of Debentures to be redeemed. 

11. Persons
Deemed Owners. 

The
registered Holder of this Debenture may be treated as the owner of this
Debenture for all purposes. 

12. Unclaimed
Money or Debentures. 

The
Trustee, the Paying Agent and the Conversion Agent shall return to the Company
upon written request any money or securities held by them for the payment of any
amount with respect to the Debentures that remains unclaimed for two years,
subject to applicable unclaimed property law. After return to the Company,
Holders entitled to such money must look to the Company for payment as general
creditors unless an applicable abandoned property law designates another person.

13. Amendment;
Waiver. 

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 securities of the Debentures. Such amendment may be effected
under the Indenture at any time by the Company and the Trustee with the consent
of the Holders of not less than a majority in aggregate principal amount of the
outstanding Debentures affected thereby. The Indenture also contains provisions
permitting the Holders of not less than a majority in aggregate principal amount
of the Debentures at the time outstanding, on behalf of the Holders of all
outstanding Debentures, to waive compliance by the Company with certain
provisions of the Indenture. Furthermore, provisions in the Indenture permit the
Holders of not less than a majority in aggregate principal amount of the
outstanding Debentures to waive on behalf of all of the Holders of Debentures
certain past defaults under the Indenture and their consequences. Any such
consent or waiver shall be conclusive and binding upon the Holders of the
Debentures and upon all future Holders of the Debentures and of any Debenture
issued upon the registration of transfer hereof or in exchange for this
Debenture or in lieu hereof, whether or not notation of such consent or waiver
is made upon this Debenture. 

A-9

 

No
reference herein to the Indenture and no provision of this Debenture or of the
Indenture shall alter or impair the obligation of the Company, which is absolute
and unconditional, to pay the principal of and interest on this Debenture (or in
the case of redemption, to receive the Redemption Price and accrued interest on
the Redemption Date, or in the case of a repurchase, to receive the Purchase
Price and accrued interest on the Purchase Date, or in the case of a Change of
Control or Asset Sale, to receive the Change of Control or Asset Sale Purchase
Price and accrued interest on the Change of Control or Asset Sale Purchase Date)
at the time, place, and rate, and in the coin or currency, herein prescribed.

14. Defaults
and Remedies. 

If any
Event of Default with respect to Debentures shall occur and be continuing, the
principal of all the Debentures may be declared due and payable in the manner
and with the effect provided in the Indenture. 

15. Trustee
Dealings with the Company. 

Subject
to certain limitations imposed by the Trust Indenture Act, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Debentures and may otherwise deal with and collect obligations owed
to it by the Company or its Affiliates and may otherwise deal with the Company
or its Affiliates with the same rights it would have if it were not Trustee.

16. Calculations
in Respect of Debentures. 

The
Company or its agents will be responsible for making all calculations called for
under the Debentures, including, but not limited to, determination of the Market
Price, the market price of the Class A Common Stock, the Current Market Price
and the amounts of interest, if any, on the Debentures. Any calculations made in
good faith and without manifest error will be final and binding on Holders of
the Debentures. The Company or its agents will be required to deliver to the
Trustee a schedule of its calculations and the Trustee will be entitled to
conclusively rely upon the accuracy of such calculations without independent
verification. 

17. No
Recourse Against Others. 

No
recourse under or upon any obligation, covenant or agreement contained in the
Indenture or in this Debenture, or for any claim based thereon, shall be had
against any incorporator, shareholder, officer or director, as such, past,
present or future, of the Company, either directly or through the Company,
whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise; it being expressly
understood that the Indenture and the obligations issued therein are solely
corporate obligations, and that no such personal liability whatever shall attach
to, or is or shall be incurred by, the incorporators, shareholders, officers or
directors, as such, of the Company, or any of them, because of the creation of
the indebtedness hereby authorized; and that any and all such personal
liability, and any and all such rights and claims, are hereby expressly waived
and released as a condition of, and as a consideration for, the execution of
this Indenture and the issuance of such Security. 

A-10

 

18. Authentication.

This
Debenture shall not be valid until an authorized signatory of the Trustee
manually signs the Trustee’s Certificate of Authentication on the other side of
this Debenture. 

19. Abbreviations.

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

20. GOVERNING
LAW. 

THE LAWS
OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THIS DEBENTURE.

The
Company will furnish to any Holder upon written request and without charge a
copy of the Indenture which has in it the text of this Debenture. Requests may
be made to: 

PMA
Capital Corporation 

380
Sentry Parkway

Blue
Bell, Pennsylvania 19422

Attention:
Investor Relations Department 

 

A-11

	
      ASSIGNMENT
      FORM 
	
      CONVERSION
      NOTICE

	
      To
      assign this Debenture, fill in the form below: 
	
      To
      convert this Debenture into Class A Common Stock of the Company, check
      

      the
      box [ ] 

	
      I
      or we assign and transfer this Debenture to 
	 
	 	
      To
      convert only part of this Debenture, state the principal amount to be
      converted (which must be $1,000 or an integral multiple of $1,000):
      

	
      (Insert
      assignee’s soc. sec. or tax ID no.) 
	 
	 ____________________________________	
      If
      you want the stock certificate made out in another person’s name fill in
      the form below:

	 ____________________________________	 
	 	 
	
      (Print
      or type assignee’s name, address and zip code) 
	
      (Insert
      the other person’s soc. sec. or tax ID no.) 

	
      and
      irrevocably appoint
	 
	
      __________________________
      agent to transfer this 

      Debenture
      on the books of the Company. The agent may 

      substitute
      another to act for him.
	 
	 	
      (Print
      or type other person’s name, address and zip
code)

	
       

      Date:
      ________
	 	
      Your Signature:
      _____________________
	 
	 
	
      (Sign
      exactly as your name appears on the other side of this
      Debenture)

	
      Signature
      Guaranteed

	
      Participant
      in a Recognized Signature Guarantee Medallion Program

	
      By:
	 ____________________________________	 
	 	
      Authorized
      Signatory
	 

 

A-12

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