Document:

exv10wa

 

Exhibit 10.A

PURCHASE AND SALE AGREEMENT

by and between

ANR CAPITAL CORPORATION

as Seller

and

SEAFARER US PIPELINE SYSTEM, INC.,

as Buyer

Dated December 21, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	Article 1 Certain Definitions
	 	 	3	 
	 
	 	 	 	 
	1.1 Certain Defined Terms
	 	 	1	 
	1.2 References, Gender, Number
	 	 	4	 
	 
	 	 	 	 
	Article 2 Purchase and Sale
	 	 	4	 
	 
	 	 	 	 
	Article 3 Purchase Price and Payment
	 	 	4	 
	 
	 	 	 	 
	3.1 Purchase Price
	 	 	4	 
	3.2 Payment of Purchase Price
	 	 	4	 
	3.3 Allocation of Purchase Price
	 	 	4	 
	 
	 	 	 	 
	Article 4 Representations and Warranties
	 	 	4	 
	 
	 	 	 	 
	4.1 Representations and Warranties of Seller
	 	 	4	 
	4.2 Representations and Warranties of Buyer
	 	 	6	 
	 
	 	 	 	 
	Article 5 Access
	 	 	8	 
	 
	 	 	 	 
	Article 6 Tax Matters
	 	 	8	 
	 
	 	 	 	 
	6.1 Preparation
	 	 	8	 
	6.2 Tax Indemnity
	 	 	9	 
	6.3 Closing Tax Certificate
	 	 	 	 
	 
	 	 	 	 
	Article 7 Covenants of Seller and Buyer
	 	 	9	 
	 
	 	 	 	 
	7.1 Conduct of Business Pending Closing
	 	 	9	 
	7.2 Qualifications on Conduct
	 	 	10	 
	7.3 Public Announcements
	 	 	10	 
	7.4 Actions by Parties
	 	 	10	 
	7.5 Supplement to Schedules
	 	 	10	 
	7.6 Further Assurances
	 	 	11	 
	7.7 Records
	 	 	11	 
	7.8 Regulatory and Other Authorizations and Consents
	 	 	11	 
	7.9 Fees and Expenses
	 	 	12	 
	7.10 Excluded Assets
	 	 	12	 
	 
	 	 	 	 
	Article 8 Closing Conditions
	 	 	12	 
	 
	 	 	 	 
	8.1 Seller’s Closing Conditions
	 	 	12	 
	8.2 Buyer’s Closing Conditions
	 	 	13	 

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	Article 9 Closing
	 	 	13	 
	 
	 	 	 	 
	9.1 Closing
	 	 	13	 
	9.2 Seller’s Closing Obligations
	 	 	13	 
	9.3 Buyer’s Closing Obligations
	 	 	13	 
	 
	 	 	 	 
	Article 10 Limitations
	 	 	14	 
	 
	 	 	 	 
	10.1 Buyer’s Review
	 	 	14	 
	10.2 Disclaimer of Warranties
	 	 	14	 
	10.3 Waiver of Damages
	 	 	15	 
	 
	 	 	 	 
	Article 11 Indemnification
	 	 	15	 
	 
	 	 	 	 
	11.1 Indemnification by Seller
	 	 	15	 
	11.2 Indemnification By Buyer
	 	 	15	 
	11.3 Acknowledgment
	 	 	15	 
	11.4 Limitations on Liability
	 	 	15	 
	11.5 Third Party Claims
	 	 	16	 
	11.6 Survival and Time Limitation
	 	 	16	 
	11.7 Sole and Exclusive Remedy
	 	 	16	 
	 
	 	 	 	 
	Article 12 Termination and Remedies
	 	 	17	 
	 
	 	 	 	 
	12.1 Termination
	 	 	17	 
	12.2 Remedies
	 	 	17	 
	 
	 	 	 	 
	Article 13 Other Provisions
	 	 	18	 
	 
	 	 	 	 
	13.1 Counterparts
	 	 	18	 
	13.2 Governing Law
	 	 	18	 
	13.3 Entire Agreement
	 	 	18	 
	13.4 Notices
	 	 	18	 
	13.5 Successors and Assigns
	 	 	19	 
	13.6 Amendments and Waivers
	 	 	19	 
	13.7 Schedules and Exhibits
	 	 	19	 
	13.8 Interpretation and Rules of Construction
	 	 	19	 
	13.9 Agreement for the Parties’ Benefit Only
	 	 	20	 
	13.10 Attorneys’ Fees
	 	 	20	 
	13.11 Severability
	 	 	20	 
	13.12 Time of Essence
	 	 	20	 
	13.13 Bulk Sales or Transfer Laws
	 	 	20	 

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PURCHASE AND SALE AGREEMENT

     THIS PURCHASE AND SALE AGREEMENT (this “Agreement”), dated as of December 21, 2006, is by and
between ANR Capital Corporation, a Delaware corporation (“Seller”), and Seafarer US Pipeline
System, Inc., a Delaware corporation (“Buyer”). Seller and Buyer are sometimes referred to herein
individually as a “Party” and collectively as the “Parties.”

Recital

     Seller desires to sell to Buyer, and Buyer desires to purchase from Seller, all of the issued
and outstanding member interests (the “Company Interests”) of El Paso Great Lakes Company, L.L.C.,
a Delaware limited liability company and a wholly owned subsidiary of Seller (the “Company”), upon
the terms and subject to the conditions set forth in this Agreement.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this
Agreement, the Parties agree as follows:

Article 1

Certain Definitions

     1.1 Certain Defined Terms. As used in this Agreement, the following terms have the
respective meanings set forth below or set forth in the Sections referred to below:

     “Acquired Companies” means the entities described in Exhibit A.

     “Acquired Company Interests” means the equity interests held by the Company in the Acquired
Companies and described in Exhibit A.

     “Action” means any action, suit, investigation, proceeding, condemnation, or audit by or
before any court or other Governmental Authority or any arbitration proceeding.

     “Affiliate” means, as to the Person specified, any Person controlling, controlled by or under
common control with such specified Person. The concept of control, controlling or controlled as
used in the aforesaid context means the possession, directly or indirectly, of the power to direct
or cause the direction of the management and policies of another, whether through the ownership of
voting securities, by contract or otherwise. No Person shall be deemed an Affiliate of any Person
by reason of the exercise or existence of rights, interests, or remedies under this Agreement.

     “Agreement” is defined in the preamble to this Agreement.

     “Assignment and Assumption Agreement” means the Assignment and Assumption Agreement attached
as Exhibit 9.2.

     “Business” means the business and operations of the Company and the Acquired Companies.

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     “Business Day” means any day which is not a Saturday, Sunday, or legal holiday recognized by
the United States of America.

     “Buyer” is defined in the preamble to this Agreement.

     “Buyer Indemnified Parties” is defined in Section 11.1.

     “Buyer’s Approvals” means the approvals listed on Schedule 1.1(a) that are required
for Buyer to purchase the Company Interests from Seller hereunder.

     “Closing” means the consummation of the transactions contemplated hereunder as provided in
Article 9.

     “Closing Date” means the first (1st) Business Day after the conditions in Section 8.1
and Section 8.2 are either satisfied or waived by the Party entitled to waive such
conditions, or such other date as may be mutually agreed to by Seller and Buyer.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Company” is defined in the recital to this Agreement.

     “Company Interests” is defined in the recital to this Agreement.

     “Deductible Amount” means an amount equal to 1.0 % of the Purchase Price.

     “Excluded Assets” is defined in Section 7.10.

     “GAAP” means United States generally accepted accounting principles as in effect on the date
of this Agreement.

     “Governmental Authority” means (i) the United States of America, (ii) any state, county,
municipality, or other governmental subdivision within the United States of America, and (iii) any
court or any governmental department, commission, board, bureau, agency, or other instrumentality
of the United States of America or of any state, county, municipality, or other governmental
subdivision within the United States of America.

     “Indemnified Party” is defined in Section 11.5.

     “Indemnifying Party” is defined in Section 11.5.

     “Knowledge” means the actual knowledge of any fact, circumstance, or condition, after
reasonable investigation and inquiry.

     “Law” means any applicable statute, law (including common law), ordinance, regulation, rule,
ruling, order, writ, injunction, decree, or other official act of or by any Governmental Authority.

     “Lien” means any lien, security interest, charge, claim, mortgage, deed of trust, option,
warrant, purchase right, lease, or other encumbrance.

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     “Losses” means any and all claims, liabilities, losses, causes of action, fines, penalties,
litigation, lawsuits, administrative proceedings, administrative investigations, costs, and
expenses, including, without limitation, reasonable attorneys’ fees, court costs, and other costs
of suit.

     “Material Adverse Effect” means a material adverse effect on the business, assets,
liabilities, financial condition, or results of operations of the Company, excluding any effect
resulting from any change in any economic, industry, or market conditions or from any change in Law
or regulatory policy of general applicability that does not explicitly identify the Company or any
of the Acquired Companies.

     “Person” means any Governmental Authority or any individual, firm, partnership, corporation,
limited liability company, joint venture, trust, unincorporated organization or other entity or
organization.

     “Purchase Price” means $815,000,000.00.

     “Schedules” means Seller’s disclosure schedules attached to this Agreement.

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

     “Seller” is defined in the preamble.

     “Seller Indemnified Parties” is defined in Section 11.2.

     “Seller’s Approvals” means the approvals listed on Schedule 1.1(b) that are required
for Seller to sell the Company Interests to Buyer hereunder.

     “Tax” or “Taxes” means any and all taxes, including any interest, penalties, or other
additions to tax that may become payable in respect thereof, imposed by any federal, state, local,
or foreign government or any agency or political subdivision of any such government, which taxes
shall include, without limiting the generality of the foregoing, all income or profits taxes,
payroll and employee withholding taxes, unemployment insurance taxes, social security taxes,
severance taxes, license charges, taxes on stock, sales and use taxes, ad valorem taxes, excise
taxes, franchise taxes, gross receipts taxes, business license taxes, occupation taxes, real and
personal property taxes, stamp taxes, environmental taxes, transfer taxes, workers’ compensation,
and other obligations of the same or of a similar nature to any of the foregoing.

     “Tax Return” means any and all returns, reports, declarations, statements, bills, schedules,
claims for refund, or written information of or with respect to any Tax which is required to be
supplied to any taxing authority, including any schedule or attachment thereto, and including any
amendment thereof.

     “Transfer Restrictions” means the restrictions on transfer of the Acquired Company Interests
contained in: (i) the Agreement of Limited Partnership of Great Lakes Gas
Transmission Limited Partnership, dated April 5, 1990, among TransCanada GL, Inc., Coastal
Great Lakes, Inc., and Great Lakes Gas Transmission Company; (ii) the Capital Contribution
Agreement among American Natural Resources Company, El Paso Great Lakes, Inc., and

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TransCanada Pipeline USA Ltd.; and (iii) the Corporate Agreement, dated August 20, 1965, between American
Natural Resources Company and TransCanada Pipeline Limited.

     1.2 References, Gender, Number. All references in this Agreement to an “Article,”
“Section” or “subsection” shall be to an Article, Section, or subsection of this Agreement, unless
the context requires otherwise. Unless the context otherwise requires, the words “this Agreement,”
“hereof,” “hereunder,” “herein,” “hereby” or words of similar import shall refer to this Agreement
as a whole and not to a particular Article, Section, subsection, clause or other subdivision
hereof. Whenever the context requires, the words used herein shall include the masculine, feminine
and neuter gender, and the singular and the plural.

Article 2

Purchase and Sale

     On and subject to the terms and conditions of this Agreement, Seller agrees to sell and convey
to Buyer, and Buyer agrees to purchase and receive from Seller, for the Purchase Price, all of the
Company Interests.

Article 3

Purchase Price and Payment

     3.1 Purchase Price. Buyer shall pay to Seller the Purchase Price for the Company
Interests.

     3.2 Payment of Purchase Price. At the Closing, Buyer shall wire transfer in
immediately available funds or intercompany book entry of the transfer of funds to the account or
accounts specified by Seller to Buyer an amount equal to the Purchase Price.

     3.3 Allocation of Purchase Price. The Parties shall agree in good faith upon an
allocation of the Purchase Price consistent with the Code and the Treasury regulations thereunder
no later than thirty (30) days after the Closing Date.

Article 4

Representations and Warranties

     4.1 Representations and Warranties of Seller. As of the date of this Agreement, Seller represents and warrants to Buyer as follows:

     (a) Organization and Good Standing. Seller is a corporation duly organized, validly
existing, and in good standing under the laws of the State of Delaware.

     (b) Authority. Seller has all requisite corporate power and authority to execute and
deliver this Agreement and to perform its obligations hereunder. The execution, delivery, and
performance of this Agreement and the transactions contemplated hereby have been duly and validly
authorized by all requisite corporate action on the part of Seller.

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     (c) Enforceability. This Agreement has been duly and validly executed and delivered
by Seller and constitutes a valid and binding agreement of Seller enforceable against it in
accordance with its terms, subject to (i) applicable bankruptcy, insolvency, reorganization,
moratorium, and other similar laws of general application from time to time in effect that affect
creditors’ rights generally, (ii) general principles of equity, and (iii) the power of a court to
deny enforcement of remedies generally based upon public policy.

     (d) No Violation or Breach. Except for any exceptions set forth in Schedule
4.1(d), neither the execution and delivery of this Agreement nor the consummation of the
transactions and performance of the terms and conditions hereof by Seller will (i) result in a
violation or breach of or default under any provision of the certificate of incorporation, by-laws,
or other similar governing documents of Seller or the limited liability company agreement or other
similar governing document of the Company or any agreement, indenture, or other instrument under
which either Seller or the Company is bound or a party to, other than such breaches or violations
of agreements, indentures, or other instruments that would not, individually or in the aggregate,
have a Material Adverse Effect or (ii) violate any Law applicable to Seller or the Company, other
than such violations that would not, individually or in the aggregate, have a Material Adverse
Effect.

     (e) Capitalization. The Company Interests constitute all of the issued and
outstanding equity interests of the Company. All Company Interests have been duly authorized and
are validly issued, fully paid, and nonassessable and were not issued in violation of the
preemptive rights of any Person. There is no outstanding convertible security, call, preemptive
right, option, warrant, purchase right, or other contract or commitment that would, directly or
indirectly, require the Company to sell, issue, or otherwise dispose of any equity interest in the
Company, other than the Transfer Restrictions.

     (f) Qualification of the Company. The Company is a limited liability company
organized under the Laws of the State of Delaware and has the requisite limited liability company
power to carry on its business as now being conducted. The Company is duly qualified to do
business, and is in good standing, in each jurisdiction in which the property owned, leased, or
operated by it or the nature of its business make such qualification necessary, except where the
failure to so qualify and be in good standing is not likely to have a Material Adverse Effect.

     (g) Company Interests. Seller holds of record and owns beneficially the Company
Interests free and clear of any Liens, other than the Transfer Restrictions. Seller is not a party
to any option, warrant, purchase right, or other contract or commitment (other than this
Agreement) that would require Seller to sell, transfer, or otherwise dispose of the Company
Interests.

     (h) Acquired Companies.

     (i) List of Acquired Companies. The Company does not own, directly or
indirectly, any capital stock or other equity securities of any corporation or
entity or have any direct or indirect equity or ownership interest in any other
Person, other than the Acquired Company Interests. Exhibit A lists each
Acquired Company, the jurisdiction of formation of each Acquired Company, and the
Acquired Company Interests that are held, directly or indirectly, by the

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Company. To Seller’s Knowledge, each Acquired Company is duly formed, validly existing, and
in good standing under the laws of the jurisdiction of its formation. To Seller’s
Knowledge, each Acquired Company has all requisite power and authority, as
applicable, to own, lease, and operate its properties and to carry on its business
as now being conducted. To Seller’s Knowledge, no actions or proceedings to
dissolve any Acquired Company are pending.

     (ii) No Liens. The Acquired Company Interests are owned, directly or
indirectly, by Company free and clear of all Liens, other than restrictions on
transfer or preferential rights to purchase that may be imposed by federal or state
securities laws or under such Acquired Company’s organizational documents, other
than the Transfer Restrictions. The Acquired Company Interests have been validly
issued and are fully paid.

     (iii) Qualification. To Seller’s Knowledge, each of the Acquired
Companies is duly qualified or licensed to do business in each jurisdiction in which
the property owned, leased, or operated by it or the nature of its business requires
such qualification or licensing, except jurisdictions in which the failure to be so
qualified or licensed would not, individually or in the aggregate, have a Material
Adverse Effect.

     (i) Consents. No consent, approval, authorization, or permit of, or filing with or
notification to, any Person is required for or in connection with the execution and delivery of
this Agreement by Seller or for or in connection with the consummation of the transactions and
performance of the terms and conditions contemplated hereby by Seller, except for (i) approvals
already obtained, (ii) Seller’s Approvals and (iii) consents, approvals, authorizations, permits,
filings, or notices that, if not obtained or made, would not, individually or in the aggregate,
have a Material Adverse Effect.

     (j) Actions. There is no Action pending or, to Seller’s Knowledge, threatened against
the Seller that would have a material adverse effect on Seller’s ability to perform its obligations
under this Agreement.

     (k) Brokerage Fees and Commissions. Neither Seller nor any Affiliate of Seller has
incurred any obligation or entered into any agreement for any investment banking, brokerage, or
finder’s fee or commission in respect of the transactions contemplated by this Agreement for
which Buyer, the Company, or any of the Acquired Companies shall incur any liability.

     (l) Bankruptcy. There are no bankruptcy, reorganization, or arrangement proceedings
pending against, being contemplated by, or, to the Knowledge of Seller, threatened against Seller
or the Company.

     4.2 Representations and Warranties of Buyer. As of the date of this Agreement, Buyer
represents and warrants to Seller as follows:

     (a) Organization and Qualification. Buyer is a corporation duly organized, validly
existing, and in good standing under the laws of the State of Delaware and has the requisite power
under its formation documents to carry on its business as now being conducted.

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     (b) Authority. Buyer has all requisite corporate power and authority to execute and
deliver this Agreement and any other agreements contemplated hereby and to perform its obligations
hereunder and thereunder. The execution, delivery, and performance of this Agreement and other
agreements contemplated hereby and the transactions contemplated hereby and thereby have been duly
and validly authorized by all requisite corporate action on the part of Buyer.

     (c) Enforceability. This Agreement has been duly and validly executed and delivered
by Buyer and constitutes a valid and binding agreement of Buyer enforceable against it in
accordance with its terms, subject to (i) applicable bankruptcy, insolvency, reorganization,
moratorium, and other similar laws of general application from time to time in effect that affect
creditors’ rights generally, (ii) general principles of equity, and (iii) the power of a court to
deny enforcement of remedies generally based upon public policy.

     (d) No Violation or Breach. Neither the execution and delivery of this Agreement nor
the consummation of the transactions and performance of the terms and conditions hereof by Buyer
will (i) result in a violation or breach of any provision of the certificate of incorporation,
bylaws or other similar governing documents of Buyer or any material agreement, indenture or other
instrument under which Buyer is bound or (ii) violate any Law applicable to Buyer or the assets of
Buyer.

     (e) Consents. No consent, approval, authorization, or permit of, or filing with or
notification to, any Person is required for or in connection with the execution and delivery of
this Agreement by Buyer or for or in connection with the consummation of the transactions and
performance of the terms and conditions contemplated hereby by Buyer, except for Buyer’s Approvals.

     (f) Actions. There is no Action pending, or to Buyer’s Knowledge, threatened against
Buyer that would have a material adverse effect on Buyer’s ability to perform its obligations under
this Agreement.

     (g) Brokerage Fees and Commissions. Neither Buyer nor any Affiliate of Buyer has
incurred any obligation or entered into any agreement for any investment banking, brokerage, or
finder’s fee or commission in respect of the transactions contemplated by this Agreement for
which either Seller or the Company may incur any liability.

     (h) Funds. Buyer has, and at the Closing will have, sufficient funds available to
enable Buyer to consummate the transactions contemplated hereby and to pay the Purchase Price and
all fees and expenses of Buyer.

     (i) No Distribution. Buyer is an experienced and knowledgeable investor in the U.S.
natural gas pipeline. Prior to entering into this Agreement, Buyer was advised by its counsel,
accountants, financial advisors, and such other Persons it has deemed appropriate concerning this
Agreement and has relied solely on Seller’s representations and warranties expressly contained
herein and an independent investigation and evaluation of, and appraisal and judgment with respect
to, the Company and the revenue, price, and expense assumptions applicable thereto. Buyer hereby
acknowledges that the Company Interests are not registered under the Securities

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Act of 1933, as
amended (the “Securities Act”), or registered or qualified for sale under any state securities laws
and cannot be resold without registration thereunder or exemption therefrom. Buyer is an
“accredited investor,” as such term is defined in Regulation D of the Securities Act and will
acquire the Company Interests for its own account and not with a view to a sale or distribution
thereof in violation of the Securities Act, and the rules and regulations thereunder, any
applicable state blue sky laws or any other applicable securities laws. Buyer has sufficient
knowledge and experience in financial and business matters to enable it to evaluate the risks of
investment in the Company Interests and has the ability to bear the economic risk of this
investment for an indefinite period of time.

     (j) Bankruptcy. There are no bankruptcy, reorganization, or arrangement proceedings
pending against, being contemplated by, or to the knowledge of Buyer threatened against, Buyer.

Article 5

Access

     Promptly following the execution of this Agreement and until the Closing Date (or earlier
termination of this Agreement), Seller shall permit (and Seller shall cause the Company to permit)
Buyer and its representatives to have reasonable access, at reasonable times and upon reasonable
advance notice, and in a manner so as not to interfere unduly with the business operations of
Seller or the Company and in Seller’s and the Company’s offices, to the books, records, contracts,
and documents of the Company relating to the Business insofar as the same may be disclosed without
(a) violating any legal constraints or any legal obligation, (b) waiving any attorney/client, work
product, or like privilege, or (c) disclosing information about the activities of Seller or its
Affiliates (other than the Company and the Acquired Companies) that is unrelated to the Company or
the Acquired Companies.

Article 6

Tax Matters

     6.1 Preparation. The following provisions shall govern the allocation of responsibility as between Buyer and
Seller for certain Tax matters following the Closing Date:

     (i) Tax Periods Ending on or Before the Closing Date. Buyer shall
prepare or cause to be prepared and file or cause to be filed in a timely manner all
Tax Returns for the Company for all periods ending on or prior to the Closing Date
regardless of when they are to be filed. Seller shall pay when due the Taxes
attributable to the Company with respect to such periods.

     (ii) Tax Periods Beginning Before and Ending After the Closing Date.
Buyer shall prepare or cause to be prepared and file or cause to be filed any Tax
Returns of the Company for Tax periods which begin before the Closing Date and end
after the Closing Date. Seller shall pay timely to Buyer with respect to such
periods an amount equal to the portion of such Taxes which relates to the portion of
such Tax period ending on the Closing Date. In the case of Taxes that are payable
with respect to a taxable period that begins before the Closing Date and

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ends after the Closing Date, the portion of any such Tax that is allocable to the portion of
the period ending on the Closing Date shall be (A) in the case of Taxes that are
based upon or related to income or gross receipts or sale or use Tax, deemed equal
to the amount which would be payable if the taxable year ended with the Closing
Date; and (B) in the case of any Taxes other than gross receipts, sale or use Tax
and Taxes based upon or related to income, deemed to be the amount of such Taxes for
the entire period, multiplied by a fraction the numerator of which is the number of
calendar days in the period ending on the Closing Date and the denominator of which
is the number of calendar days in the entire period.

     6.2 Tax Indemnity. Seller agrees to indemnify and hold harmless Buyer from and
against any and all Losses that Buyer may suffer for any Taxes (i) attributable to the Company with
respect to any Tax period or portion thereof ending on or before the Closing Date and (ii) for any
Tax period beginning before and ending after the Closing Date to the extent allocable (determined
in a manner consistent with Section 6.1) to the portion of such period beginning before and
ending on the Closing Date.

     6.3 Closing Tax Certificate. At Closing, Seller shall deliver to Buyer a certificate,
in a form reasonably acceptable to Buyer, signed under penalties of perjury (i) stating that it is
not a foreign corporation, foreign partnership, foreign trust, or foreign estate, (ii) stating that
it is not a disregarded entity as defined in Treas. Reg. Section 1.1445-2(b)(2)(iii), (iii)
providing its U.S. Employer Identification Number, and (iv) providing its address, all pursuant to
Section 1445 of the Code.

Article 7

Covenants of Seller and Buyer

     7.1 Conduct of Business Pending Closing. Subject to Section 7.2, from the date of this Agreement through the Closing Date,
except as disclosed in Schedule 7.1, or as otherwise consented to or approved in writing by
Buyer (which consent or approval shall not be unreasonably withheld, conditioned, or delayed),
Seller covenants and agrees that:

     (a) Changes in Business. Seller shall cause the Company to comply with the following:

     (i) the Company shall not make any material change in the conduct of its
business or operations;

     (ii) except in the ordinary course of business and consistent with past
practices, the Company shall not assign, terminate, or amend, in any material
respect, any material contract;

     (iii) the Company shall not:

     (A) declare or pay any dividends or make any distributions in respect
of, or issue any of, its equity securities or securities convertible into
its equity securities, or repurchase, redeem, or otherwise acquire any

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such securities or make or propose to make any other change in its
capitalization;

     (B) merge into or with or consolidate with any other Person or acquire
any of the business or assets of any Person;

     (C) purchase any securities of any Person; or

     (D) incur any obligations for borrowed money or guarantee or otherwise
become liable for the obligations of, or make any loans or advances to, any
Person.

     (iv) the Company shall not take any action or enter into any commitment with
respect to or in contemplation of any liquidation, dissolution, recapitalization,
reorganization, or other winding up of its business or operations;

     (v) the Company shall not change its accounting policies or practices, except
as required under GAAP;

     (vi) enter into or amend any contract, agreement, commitment or arrangement
with respect to any matter set forth in this
Section 7.1(a).

     (b) Liens. Seller shall not, and will cause the Company not to, grant any Lien on any
the material assets of the Company or on the Acquired Company Interests.

     7.2 Qualifications on Conduct. Seller and the Company may take (or not take, as the case may be) any of the actions
described in Section 7.1 above if reasonably necessary under emergency circumstances (or if
required or prohibited under Law) and provided Buyer is notified as soon thereafter as practicable.

     7.3 Public Announcements. Prior to the Closing Date, without the prior written
approval of the other Party, no Party will issue, or permit any agent or Affiliate of such Party to
issue, any press releases or otherwise make, or cause any agent or Affiliate of such Party to make,
any public statements with respect to this Agreement and the transactions contemplated hereby,
except when such release or statement is deemed in good faith by the releasing Party to be required
by Law or under the applicable rules and regulations of a stock exchange or market on which the
securities of the releasing Party or any of its Affiliates are listed. In each case to which such
exception applies, the releasing Party will use its reasonable efforts to provide a copy of such
release or statement to the other Party and incorporate any reasonable changes which are suggested
by the non-releasing Party prior to releasing or making the statement. After the Closing Date, the
Parties will confer with each other regarding their initial public announcement for the transaction
contemplated herein.

     7.4 Actions by Parties. Each Party agrees to use commercially reasonable efforts to
satisfy the conditions to Closing set forth in Article 8.

     7.5 Supplement to Schedules. Seller shall, from time to time prior to the Closing by
written notice to Buyer, supplement or amend the Schedules to this Agreement to correct any

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matter
that would constitute a breach of any representation or warranty of Seller in Section 4.1
of this Agreement. For purposes of determining whether Buyer’s condition set forth in Section
8.2(a) has been fulfilled, the Schedules shall be deemed to include only that information
contained therein on the date of this Agreement and shall be deemed to exclude all information
contained in any supplement or amendment thereto, but if Closing shall occur, then any matters
disclosed to Buyer under any supplement or amendment at or prior to the Closing shall be deemed to
be part of the applicable Schedule and accepted by Buyer and Buyer shall not be entitled to make a
claim thereon under this Agreement.

     7.6 Further Assurances. Seller and Buyer, from time to time after the Closing Date,
will each execute and deliver or cause its respective Affiliates (including the Company) to execute
and deliver such further instruments, and take (or cause its respective Affiliates, including the
Company, to take) such other action, as may be reasonably necessary to carry out the purposes and
intents of this Agreement.

     7.7 Records. Buyer agrees to maintain, or cause the Company to maintain, the books and records of the
Company in existence on the Closing Date until the third (3rd) anniversary of the
Closing Date (or for such reasonably longer period of time as Seller shall advise Buyer is
necessary to have such records available with respect to open years for Tax audit purposes), or if
any of such records pertain to any claim or dispute pending on the third (3rd)
anniversary of the Closing Date, Buyer shall maintain any of such records designated by Seller
until such claim or dispute is finally resolved and the time for all appeals has been exhausted.
After the Closing Date, Buyer shall provide or cause the Company to provide Seller and its
representatives during normal business hours and upon reasonable notice reasonable access to and
the right to copy the records, at Seller’s cost and expense and subject to such confidentiality
restrictions as Buyer may reasonably impose, for the purposes of:

     (i) complying with any Law affecting Seller’s ownership of the Company
Interests prior to the Closing Date; or

     (ii) asserting, defending, or otherwise dealing with any claim or dispute with
respect to the Company or the Company Interests.

     7.8 Regulatory and Other Authorizations and Consents.

     (a) Filings. Each Party shall use all commercially reasonable efforts to obtain all
authorizations, consents, orders, and approvals of, and to give all notices to and make all filings
with, all Governmental Authorities (including those pertaining to the Governmental Approvals) and
third parties that may be or become necessary for its execution and delivery of, and the
performance of its obligations under, this Agreement and will cooperate fully with the other Party
in promptly seeking to obtain all such authorizations, consents, orders, and approvals, giving such
notices, and making such filings.

     (b) Transfer. If any instrument, contract, license, lease, permit, or other document
of the Company shall require the consent of any party thereto to the transaction contemplated
hereunder, then this Agreement shall not constitute an agreement to assign or transfer the same, if
consummation of the transaction hereunder would constitute a breach thereof or default

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thereunder.
In such case, Seller and Buyer shall cooperate and each shall use commercially reasonable efforts
to obtain such consents to the extent required of such other parties and, if and when any such
consents are obtained, to transfer the applicable instrument, contract, license, lease, permit, or
other document. If any such consent cannot be obtained, Seller shall cooperate in any reasonable
arrangement designed to obtain for Buyer all benefits, privileges, obligations and privileges of
the applicable instrument, contract, license, lease, permit, or document.

     (c) Third Party Consents. Each Party will use its commercially reasonable efforts to
assist the other Party in obtaining any consents of third parties and Governmental Authorities
necessary or advisable in connection with the transactions contemplated by this Agreement.

     7.9 Fees and Expenses. Except as otherwise expressly provided in this Agreement, all fees and expenses, including
fees and expenses of counsel, financial advisors, and accountants, incurred in connection with this
Agreement and the transactions contemplated hereby shall be paid by the Party incurring such fee or
expense, whether or not the Closing shall have occurred.

     7.10 Excluded Assets. The transactions contemplated by this Agreement exclude, and
prior to the Closing Date, Seller may cause the Company to transfer to Seller or any of its
Affiliates the assets listed or described on Schedule 7.10 (the “Excluded Assets”).

Article 8

Closing Conditions

     8.1 Seller’s Closing Conditions. The obligation of Seller to proceed with the Closing
contemplated hereby is subject, at the option of Seller, to the satisfaction on or prior to the
Closing Date of all of the following conditions:

     (a) Representations, Warranties, and Covenants. The representations and warranties of
Buyer contained in Section 4.2 of this Agreement shall be true and correct in all material
respects on and as of the Closing Date, and the covenants and agreements of Buyer to be performed
on or before the Closing Date shall have been duly performed in all material respects in accordance
with this Agreement.

     (b) Closing Documents. On or prior to the Closing Date, Buyer shall have delivered,
or be standing ready to deliver at the Closing, all agreements, instruments, and documents required
to be delivered by Buyer under Section 9.3.

     (c) No Action. On the Closing Date, no action shall be pending or threatened before
any Governmental Authority of competent jurisdiction seeking to enjoin or restrain the consummation
of the Closing or recover substantial damages from Seller or any Affiliate of Seller resulting
therefrom.

     (d) Seller’s Approvals. Seller shall have obtained Seller’s Approvals.

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     (e) Purchase Price. Buyer shall have delivered, or be standing ready to deliver at
the Closing, the Purchase Price to Seller by wire transfer in immediately available funds to the
bank account or bank accounts designated by Seller under Section 3.2.

     8.2 Buyer’s Closing Conditions. The obligation of Buyer to proceed with the Closing
contemplated hereby is subject, at the option of Buyer, to the satisfaction on or prior to the
Closing Date of all of the following conditions:

     (a) Representations, Warranties, and Covenants. The representations and warranties of
Seller in Section 4.1 of this Agreement shall be true and correct in all material respects
on and as of the Closing Date, and the covenants and agreements of Seller to be performed on or
before the Closing Date shall have been duly performed in all material respects in accordance with
this Agreement.

     (b) Closing Documents. On or prior to the Closing Date, Seller shall have delivered,
or be standing ready to deliver at the Closing, all agreements, instruments, and documents required
to be delivered by Seller under Section 9.2.

     (c) No Action. On the Closing Date, no suit, action, or other proceeding shall be
pending or threatened before any court or governmental agency or body of competent jurisdiction
seeking to enjoin or restrain the consummation of the Closing or recover substantial damages from
Buyer or any Affiliate of Buyer resulting therefrom.

     (d) Buyer’s Approvals. Buyer shall have obtained Buyer’s Approvals.

Article 9

Closing

     9.1 Closing. The Closing shall be held on the Closing Date at 10:00 a.m., Houston
time, at the offices of Seller at 1001 Louisiana, Houston, Texas, or at such other time or place as
Seller and Buyer may otherwise agree in writing.

     9.2 Seller’s Closing Obligations. At Closing, Seller shall execute and deliver, or
cause to be executed and delivered, to Buyer the following:

     (i) a duly executed copy of the Assignment and Assumption Agreement; and

     (ii) any other documents or instruments reasonably required by Buyer to
consummate the transaction contemplated thereunder.

     9.3 Buyer’s Closing Obligations. At Closing, Buyer shall deliver, or cause to be
delivered, to Seller the following:

     (i) the Purchase Price to Seller in immediately available funds to the bank
account or bank accounts designated by Seller under Section 3.2;

Purchase and Sale Agreement

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     (ii) a duly executed copy of the Assignment and Assumption Agreement; and

     (iii) any other documents or instruments reasonably required by Seller to
consummate the transaction contemplated hereunder.

Article 10

Limitations

     10.1 Buyer’s Review. Buyer has reviewed and had access to all documents, records, and
information which it has desired to review in connection with its decision to enter into this
Agreement, and to consummate the transactions contemplated hereby. Buyer has not relied upon any
representation, warranty, statement, advice, document, projection, or other information of any type
provided by Seller, the Company, the Acquired Companies, or their Affiliates, or any of their
representatives, except for those set forth in this Agreement. In deciding to enter into this
Agreement, and to consummate the transactions contemplated hereby, Buyer has relied solely upon its
own knowledge, investigation, and analysis (and that of its representatives) and not on any
disclosure or representation made by, or any duty to disclose on the part of, Seller, the Company,
the Acquired Companies, their Affiliates, or any of their representatives, other than the
representations and warranties of Seller expressly set forth herein or in any certificate or
agreement delivered by the Seller under the terms of this Agreement.

     10.2 Disclaimer of Warranties.

     (a) Information. Except as provided in Section 4.1, Seller makes no
representation or warranty, express, implied, at common law, statutory or otherwise, with respect
to the accuracy or completeness of the information, records, and data now, heretofore, or hereafter
made available to Buyer in connection with this Agreement (including any description of the Company
or the Acquired Companies, or any information furnished to Buyer by Seller).

     (b) Assets. Notwithstanding anything contained to the contrary in any other provision
of this Agreement, it is the explicit intent of each Party that Seller is not making any
representation or warranty whatsoever, express, implied, at common law, statutory, or otherwise,
except for the representations or warranties given in this Agreement, and it is understood that
Buyer takes the Company Interests and the Acquired Company Interests, and any other assets of the
Company or the Acquired Companies “as is” and “where is.” Without limiting the generality of the
immediately preceding sentence, except as provided in this Agreement, Seller hereby expressly
disclaims and negates any representation or warranty, express or implied, at common law, statutory,
or otherwise, relating to (i) the condition of the assets of the Company or the Acquired Companies
(including any implied or express warranty of merchantability or fitness for a particular purpose,
or of conformity to models or samples of materials, or the presence or absence of any hazardous
materials in or on, or disposed or discharged from the assets of the Company or the Acquired
Companies) or (ii) any infringement by Seller, the Company, the Acquired Companies, or any of their
Affiliates of any patent or proprietary right of any third party.

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     10.3 Waiver of Damages. Notwithstanding anything contained to the contrary in this
Agreement, Seller and Buyer agree that the recovery by either Party of any damages suffered or
incurred by it as a result of any breach by the other Party of any of its obligations under this
Agreement shall be limited to the actual damages suffered or incurred by the non-breaching Party as
a result of the breach by the breaching Party of its obligations hereunder and in no event shall
the breaching Party be liable to the non-breaching Party for any indirect, consequential, special,
exemplary, or punitive damages (including any damages on account of lost profits or opportunities
or lost or delayed generation) suffered or incurred by the non-breaching Party as a result of the
breach by the breaching Party of any of its obligations hereunder.

Article 11

Indemnification

     11.1 Indemnification by Seller. From and after the Closing, subject to the other
terms and limitations in this Agreement, Seller shall indemnify, defend, reimburse, and hold
harmless Buyer, and its and their directors, officers, partners, employees, consultants, agents,
representatives, advisors, successors, and assigns (collectively, the “Buyer Indemnified Parties”)
from and against any and all Losses asserted against, sustained, or incurred by any of the Buyer
Indemnified Parties (i) for any breach of Seller’s representations and warranties made in this
Agreement or (ii) for any breach of the covenants or obligations of Seller under this Agreement
(other than a breach of a covenant or obligation in Article 6).

     11.2 Indemnification By Buyer. From and after the Closing, subject to the other terms
and limitations in this Agreement, Buyer shall indemnify, defend, reimburse, and hold harmless
Seller, and its and their directors, officers, partners, employees, consultants, agents,
representatives, advisors, successors, and assigns (collectively, the “Seller Indemnified Parties”)
from and against any and all Losses asserted against, sustained, or incurred by any of the Seller
Indemnified Parties (i) for any breach of Buyer’s representations or warranties made in this
Agreement or (ii) for any breach of the covenants or obligations of Buyer under this Agreement
(other than a breach of a covenant or obligation in Article 6).

     11.3 Acknowledgment. The Parties acknowledge and agree that all Losses that relate to
or arise out of the Business or that otherwise relate to or arise out of the Company or the
Acquired Companies shall be retained by and transferred with the Company and the Acquired Companies
and shall continue to be the responsibility of the Company or the Acquired Companies after the
Closing.

     11.4 Limitations on Liability. None of the Buyer Indemnified Parties shall be entitled to assert any right to
indemnification under Section 11.1 until the aggregate amount of all the Losses actually
suffered by the Buyer Indemnified Parties exceeds the Deductible Amount. Anything in this
Agreement to the contrary notwithstanding, in no event shall the Seller ever be required to
indemnify the Buyer or the Buyer Indemnified Parties for Losses in any amount exceeding, in the
aggregate, ten percent (10%) of the Purchase Price or pay any other amount in connection with or
with respect to this Agreement or the transactions contemplated by this Agreement in any amount
exceeding, in the aggregate, ten percent (10%) of the Purchase Price.

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     11.5 Third Party Claims. If a claim by a third party is made against a Seller
Indemnified Party or a Buyer Indemnified Party (each, an “Indemnified Party”), and if such
Indemnified Party intends to seek indemnity with respect thereto under this Article 11,
such Indemnified Party shall promptly furnish written notice to the other Party (the
“Indemnifying Party”) of such claim. The failure of the Indemnified Party to deliver
prompt written notice of a claim shall not affect the indemnity obligations of the Indemnifying
Party hereunder except to the extent the Indemnifying Party was substantially disadvantaged by such
delay in delivery notice of such claim. The Indemnifying Party shall have thirty (30) days after
receipt of such notice to undertake, conduct, and control (through counsel of its own choosing and
at its own expense) the settlement or defense thereof, and the Indemnified Party shall cooperate
with it in connection therewith. The Indemnifying Party shall permit the Indemnified Party to
participate in such settlement or defense through counsel chosen by such Indemnified Party (but the
fees and expenses of such counsel shall be borne by such Indemnified Party). So long as the
Indemnifying Party, at the Indemnifying Party’s cost and expense, (i) has undertaken the defense
of, and assumed full responsibility for all indemnified liabilities with respect to, such claim,
(ii) is reasonably contesting such claim in good faith, by appropriate proceedings, and (iii) has
taken such action (including the posting of a bond, deposit, or other security) as may be necessary
to prevent any action to foreclose a lien against or attachment of the property of the Indemnified
Party for payment of such claim, the Indemnified Party shall not pay or settle any such claim.
Notwithstanding compliance by the Indemnifying Party with the preceding sentence, the Indemnified
Party shall have the right to pay or settle any such claim, but in such event it shall waive any
right to indemnity by the Indemnifying Party for such claim. If within thirty (30) days after the
receipt of the Indemnified Party’s notice of a claim of indemnity hereunder, the Indemnifying Party
does not notify the Indemnified Party that it elects (at the Indemnifying Party’s cost and expense)
to undertake the defense thereof and assume full responsibility for all indemnified liabilities
with respect thereto, or gives such notice and thereafter fails to contest such claim in good faith
or to prevent action to foreclose a lien against or attachment of the Indemnified Party’s property
as contemplated above, the Indemnified Party shall have the right to contest, settle, or compromise
such claim and the Indemnified Party shall not thereby waive any right to indemnity for such claim
under this Agreement.

     11.6 Survival and Time Limitation. The terms and provisions of this Agreement shall
survive the Closing of the transactions contemplated hereunder. Notwithstanding the foregoing,
after Closing, any assertion by Buyer or any Buyer Indemnified Party that Seller is liable to Buyer
or any Buyer
Indemnified Party for indemnification under the terms of this Agreement or otherwise in
connection with the transactions contemplated in this Agreement must be made in writing and must be
given to Seller (or not at all) on or prior to the date that is twelve (12) months after the
Closing Date, except for indemnification for matters addressed in Article 6, which shall
survive until the date that is ninety (90) days following the date on which the statute of
limitations with respect to such matters expires.

     11.7 Sole and Exclusive Remedy. From and after the Closing, except as provided in
Article 6, the indemnification provisions of this Article 11 shall be the sole and
exclusive remedy of each Party (including the Seller Indemnified Parties and the Buyer Indemnified
Parties) (i) for any breach of the other Party’s representations, warranties, covenants, or
agreements contained in this Agreement or (ii) otherwise with respect to this Agreement or the
transactions contemplated hereby.

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Article 12

Termination and Remedies

     12.1 Termination.

     (a) Termination of Agreement. This Agreement and the transactions contemplated hereby
may be terminated at any time prior to the Closing:

     (i) by the mutual consent of Seller and Buyer; or

     (ii) if the Closing has not occurred by the close of business on December 31,
2006, then by Seller if any condition specified in Section 8.1 has not been
satisfied on or before such close of business, and shall not theretofore have been
waived by Seller, provided that the failure to consummate the transactions
contemplated hereby on or before such date did not result from the failure by Seller
to fulfill any undertaking or commitment provided for herein on the part of Seller
that is required to be fulfilled on or prior to Closing; or

     (iii) if the Closing has not occurred by the close of business on December 31,
2006, then by Buyer if any condition specified in Section 8.2 has not been
satisfied or waived on or before such close of business, and shall not theretofore
have been waived by Buyer, provided that the failure to consummate the transactions
contemplated hereby on or before such date did not result from the failure by Buyer
to fulfill any undertaking or commitment provided for herein on the part of Buyer
that is required to be fulfilled on or prior to Closing.

     (b) Effect of Termination. In the event of termination of this Agreement by Seller or
Buyer under Section 12.1(a), written notice thereof shall promptly be given by the
terminating Party to the other Party, and this Agreement shall thereupon terminate. If this
Agreement is
terminated as provided herein, all filings, applications and other submissions made to any
Governmental Authority shall, to the extent practicable, be withdrawn from the Governmental
Authority to which they were made.

     12.2 Remedies.

     (a) Seller’s Remedies. Notwithstanding anything herein to the contrary, upon the
failure by Buyer to fulfill any undertaking or commitment provided for herein on the part of Buyer
that is required to be fulfilled on or prior to the Closing Date, Seller, at its sole option, may
(i) enforce specific performance of this Agreement or (ii) pursue any rights or remedies available
at law or in equity.

     (b) Buyer’s Remedies. Notwithstanding anything herein provided to the contrary, upon
failure of Seller to fulfill any undertaking or commitment provided for herein on the part of
Seller that is required to be fulfilled on or prior to the Closing Date, Buyer, at its sole option,
may (i) enforce specific performance of this Agreement or (ii) pursue any rights or remedies
available at law or in equity.

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     (c) Election of Remedies. If either Party elects to pursue singularly any remedy
available to it under this Section 12.2, then such Party may at any time thereafter cease
pursuing that remedy and elect to pursue any other remedy available to it under this Section
12.2.

Article 13

Other Provisions

     13.1 Counterparts. This Agreement may be executed in one or more counterparts, all of
which shall be considered one and the same agreement, and shall become effective when one or more
counterparts have been signed by each of the Parties and delivered to the other Party.

     13.2 Governing Law. This Agreement and the rights and obligations of the parties
hereunder and the transactions contemplated hereby shall be governed by, enforced, and interpreted
in accordance with the laws of the State of Texas.

     13.3 Entire Agreement. This Agreement and the Schedules and Exhibits hereto contain
the entire agreement between the Parties with respect to the subject matter hereof and there are no
agreements, understandings, representations, or warranties between the Parties other than those set
forth or referred to herein.

     13.4 Notices. All notices hereunder shall be sufficiently given for all purposes hereunder if in writing
and delivered personally, sent by documented overnight delivery service or, to the extent receipt
is confirmed, by United States Mail, or telecopy to the appropriate address or number as set forth
below.

Notices to Seller shall be addressed as follows:

ANR Capital Corporation

El Paso Building

1001 Louisiana Street

Houston, TX 77002

Attention: General Counsel

Telecopy No.: (7130 420-5043

or at such other address and to the attention of such other Person as Seller may designate by
written notice to Buyer.

     Notices to Buyer shall be addressed to:

Seafarer US Pipeline System, Inc

El Paso Building

1001 Louisiana Street

Houston, TX 77002

Attention: General Counsel

Telecopy No.: (713) 420-5043

or at such other address and to the attention of such other Person as Buyer may designate by
written notice to Seller.

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Notice given by overnight delivery or mail shall be effective upon actual receipt. Notice given by
telecopier shall be effective upon actual receipt if received during the recipient’s normal
business hours, or at the beginning of the recipient’s next business day after receipt if not
received during the recipient’s normal business hours. All notices by telecopier shall be
confirmed promptly after transmission in writing by certified mail or overnight delivery.

     13.5 Successors and Assigns. The rights and obligations of the Parties shall not be
assigned or delegated by either Party without the written consent of the other Party, which may be
withheld in such Party’s sole discretion. Subject to the preceding sentence, this Agreement shall
be binding upon and inure to the benefit of the Parties and their successors and assigns.

     13.6 Amendments and Waivers. This Agreement may not be modified or amended except by
an instrument or instruments in writing signed by the Party against whom enforcement of any such
modification or amendment is sought. Any Party may, only by an instrument in writing, waive
compliance by the other Party with any term or provision of this Agreement on the part of such
other Party to be performed or complied with. The waiver by a Party of a breach of any term or provision of
this Agreement shall not be construed as a waiver of any subsequent breach.

     13.7 Schedules and Exhibits. All Schedules and Exhibits hereto which are referred to
herein are hereby made a part hereof and incorporated herein by such reference. Each Schedule to
this Agreement shall be deemed to include and incorporate all disclosures made on the other
Schedules to this Agreement. Certain information set forth in the Schedules is included solely for
informational purposes, is not an admission of liability with respect to the matters covered by the
information, and may not be required to be disclosed under this Agreement. The specification of
any dollar amount in the representations and warranties contained in this Agreement or the
inclusion of any specific item in the Schedules is not intended to imply that such amounts (or
higher or lower amounts) are or are not material, and no Party shall use the fact of the setting of
such amounts or the fact of the inclusion of any such item in the Schedules in any dispute or
controversy between the Parties as to whether any obligation, item, or matter not described herein
or included in a Schedule is or is not material for purposes of this Agreement.

     13.8 Interpretation and Rules of Construction. This Agreement shall not be construed
against either Party, and no consideration shall be given or presumption made, on the basis of who
drafted this Agreement or any particular provision hereof or who supplied the form of Agreement.
In construing this Agreement:

     (i) examples shall not be construed to limit, expressly or by implication, the
matter they illustrate;

     (ii) the word “includes” and its derivatives means “includes, but is not
limited to” and corresponding derivative expressions;

     (iii) a defined term has its defined meaning throughout this Agreement and each
Exhibit and Schedule to this Agreement, regardless of whether it appears before or
after the place where it is defined;

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     (iv) each Exhibit and Schedule to this Agreement is a part of this Agreement,
but if there is any conflict or inconsistency between the main body of this
Agreement and any Exhibit or Schedule, the provisions of the main body of this
Agreement shall prevail;

     (v) the terms “dollars” and “$” mean United States dollars; and

     (vi) the headings and titles herein are for convenience only and shall have no
significance in the interpretation hereof.

     13.9 Agreement for the Parties’ Benefit Only. Except as specified in Article
11, which is intended to benefit and to be enforceable by the Seller Indemnified Parties and
the Buyer Indemnified Parties, this Agreement is not intended
to confer upon any Person not a party hereto any rights or remedies hereunder, and no Person,
other than the Parties, the Seller Indemnified Parties, and the Buyer Indemnified Parties, is
entitled to rely on any representation, warranty, covenant, or agreement contained herein.

     13.10 Attorneys’ Fees. The prevailing Party in any legal proceeding brought under or
to enforce this Agreement shall be additionally entitled to recover court costs and reasonable
attorneys’ fees from the nonprevailing Party.

     13.11 Severability. If any term or other provision of this Agreement is invalid,
illegal, or incapable of being enforced by any Law or public policy, all other conditions and
provisions of this Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated hereby is not affected in any adverse
manner to a Party. Upon such determination that any term or other provision is invalid, illegal,
or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement
so as to effect the original intent of the Parties as closely as possible in an acceptable manner
to the end that the transactions contemplated hereby are fulfilled to the extent possible.

     13.12 Time of Essence. Time is of the essence in this Agreement. If the date
specified in this Agreement for giving any notice or taking any action is not a Business Day (or if
the period during which any notice is required to be given or any action taken expires on a date
which is not a Business Day), then the date for giving such notice or taking such action (and the
expiration date of such period during which notice is required to be given or action taken) shall
be the next day which is a Business Day.

     13.13 Bulk Sales or Transfer Laws. Buyer hereby waives compliance by the Seller with
the provisions of the bulk sales or transfer laws of all applicable jurisdictions.

     IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each of the Parties as
of the day first above written.

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	 	Seller:

ANR Capital Corporation

 	 
	 	By:  	/s/
D. Mark Leland 	 
	 	Name:  	D. Mark Leland 	 
	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	Buyer:

Seafarer US Pipeline System, Inc.

 	 
	 	By:  	/s/
Stephen C. Beasley 	 
	 	Name:  	Stephen C. Beasley 	 
	 	Title:  	President 	 
	 

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Page 21

 

 

	 	 	 	 	 
	LIST OF EXHIBITS AND SCHEDULES:
	 
	 	 	 	 
	List of Exhibits:
	 
	 	 	 	 
	Exhibit A

	 	–
	 	Acquired Companies
	Exhibit 9.2

	 	–
	 	Assignment and Assumption Agreement
	 
	 	 	 	 
	List of Schedules:
	 
	 	 	 	 
	Schedule 1.1(a)

	 	–
	 	Buyer’s Approvals
	Schedule 1.1(b)

	 	–
	 	Seller’s Approvals
	Schedule 4.1(d)

	 	–
	 	Violations or Breaches
	Schedule 7.1

	 	–
	 	Pre-Closing Matters

List of Exhibits and Schedules

 

 

Exhibit A

to

Purchase and Sale Agreement

Acquired Companies

	 	 	 
	I.

	 	Name: Great Lakes Gas Transmission Company
	 

	 	Form: Corporation
	 

	 	State of incorporation: Delaware
	 

	 	Authorized capital stock: 500,000 shares of common stock, par value $100.00 per share
	 

	 	Issued and outstanding capital stock: 500,000 shares of common stock
	 
	 	 
	II.

	 	Name: Great Lakes Gas Transmission Limited Partnership
	 

	 	Form: Limited partnership
	 

	 	State of formation: Delaware

Issued and outstanding partnership interests: 2 general partners, of which El Paso Great
Lakes Company is a 46.6% general partner, and and an unaffiliated third party is a
46.6% general partner, and Great Lakes Gas Transmission Company, a 6.8% limited
partner, subject to the terms and conditions of the Agreement of Limited Partnership
dated April 5, 1990, as amended.

	 	 	 
	III.

	 	Name: GLGT, Inc.
	 

	 	Form: Corporation
	 

	 	State of incorporation: Delaware
	 

	 	Authorized capital stock: 1,000 shares of common stock, par value $1.00 per share
	 

	 	Issued and outstanding capital stock: 1,000 shares of common stock
	 
	 	 
	IV.

	 	Name: GLGT Aviation Company
	 

	 	Form: Corporation
	 

	 	State of incorporation: Delaware
	 

	 	Authorized capital stock: 1,000 shares of common stock, par value $1.00 per share
	 

	 	Issued and outstanding capital stock: 1,000 shares of common stock
	 
	 	 
	V.

	 	Name: GLGT Energy Company
	 

	 	Form: Corporation
	 

	 	State of incorporation: Delaware
	 

	 	Authorized capital stock: 1,000 shares of common stock, par value $1.00 per share
	 

	 	Issued and outstanding capital stock: 1,000 shares of common stock

Exhibit A to Great Lakes Purchase and Sale Agreement

Acquired Companies

 

 

Execution Version

Exhibit 9.2(a)

to

Purchase and Sale Agreement

ASSIGNMENT AND ASSUMPTION AGREEMENT

     THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Assignment”), dated December 21, 2006, is from
ANR Capital Corporation, a Delaware corporation (“Assignor”) to Seafarer US Pipeline System, Inc.,
a Delaware corporation (“Assignee”).

Recitals:

     A. Assignor holds all issued and outstanding member interests (the “Assigned Membership
Interests”) in and to EL Paso Great lakes, L.L.C., a Delaware limited liability company (the
“Company”).

     B. Assignor and Assignee have entered into a Purchase and Sale Agreement, dated December 21,
2006 (the “Purchase Agreement”), under which Assignor has agreed to sell and transfer, and Assignee
has agreed to purchase, the Assigned Membership Interests, all as more fully provided therein.

     C. Assignor now desires to transfer to Assignee the Assigned Membership Interests.

     NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Assignor and Assignee do hereby agree as follows:

Assignment and Agreements:

     1. Assignment of Membership Interests. Assignor has transferred, assigned, conveyed,
and delivered, and by these presents does transfer, assign, convey, and deliver, to Assignee, the
Assigned Membership Interests.

     TO HAVE AND TO HOLD, the Assigned Membership Interests, together with all and singular the
rights and appurtenances thereto in anywise belonging unto Assignee, and its successors and
assigns, forever.

     2. Assumption. Assignee hereby agrees to assume and fully perform all of Assignor’s
obligations and liabilities under and in respect of the Assigned Membership Interests.

     3. Purchase Agreement. This Assignment is subject to, in all respects, the terms and
conditions of the Purchase Agreement, and to the extent there is a conflict between this Assignment
and the Purchase Agreement, the terms of the Purchase Agreement shall control.

     4. Counterparts. This Assignment may be executed in counterparts, including faxed
counterparts.

Exhibit 9.2 to Great Lakes Purchase and Sale Agreement

Assignment and Assumption Agreement

 

 

     5. Governing Law. This Assignment shall be governed by, and construed and enforced in
accordance with, the laws of the State of Texas.

     IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment as of this the
21st day of December, 2006.

	 	 	 	 	 
	 	Assignor:

ANR CAPITAL CORPORATION

 	 
	 	By:  	/s/
D. Mark  Leland 	 
	 	Name:  	D. Mark  Leland 	 
	 	Title:  	Executive Vice President and Chief Financial
Officer 	 
	 
	 	Assignee:

SEAFARER US PIPELINE SYSTEM, INC.

 	 
	 	By:  	/s/
Stephen C. Beasley 	 
	 	Name:  	Stephen C. Beasley 	 
	 	Title:  	President 	 
	 

Exhibit 9.2 to Great Lakes Purchase and Sale Agreement

Assignment and Assumption Agreement

 

 

	 	 	 
	STATE OF TEXAS

	 	§
	 

	 	§
	COUNTY OF HARRIS

	 	§

     This instrument was acknowledged before me on December 21, 2006, by D. Mark Leland, Executive
Vice President and Chief Financial Officer of ANR Capital Corporation, a Delaware corporation, on
behalf of said corporation.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	/s/
Margaret E. Roark 	 	 
	 	 	Notary Public for the State of 	    Texas 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Printed Name:	 	Margaret E. Roark
	 	 	 	 	 	 
	 	 	My Commission Expires:	 	1/24/07 	 	 	 	 
	 	 	 	 	 	 	 	 

	 	 	 
	STATE OF TEXAS

	 	§
	 

	 	§
	COUNTY OF HARRIS

	 	§

     This instrument was acknowledged before me on December 21, 2006, by Stephen C. Beasley,
President of Seafarer US Pipeline System, Inc., a Delaware corporation, on behalf of said company.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	/s/
Margaret E. Roark 	 	 
	 	 	Notary Public for the State of 	    Texas 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Printed Name:	 	Margaret E. Roark
	 	 	 	 	 	 
	 	 	My Commission Expires:	 	1/24/07 	 	 	 	 
	 	 	 	 	 	 	 	 

Exhibit 9.2 to Great Lakes Purchase and Sale Agreement

Assignment and Assumption Agreement

 

 

Execution Version

Schedule 1.1(a)

to

Purchase and Sale Agreement

Buyer’s Approvals

None

Schedule 1.1(a) to Great Lakes Purchase and Sale Agreement

Buyer’s Approvals

 

 

Execution Version

Schedule 1.1(b)

to

Purchase and Sale Agreement

Seller’s Approvals

None

Schedule 1.1(b) to Great Lakes Purchase and Sale Agreement

Seller’s Approvals

 

 

Execution Version

Schedule 4.1(d)

to

Purchase and Sale Agreement

Violations or Breaches

None

Schedule 4.1(d) to Great Lakes Purchase and Sale Agreement

Violations or Breaches

 

 

Execution Version

Schedule 7.1

to

Purchase and Sale Agreement

Pre-Closing Matters

None

Schedule 7.1 to Great Lakes Purchase and Sale Agreement

Pre-Closing Mattersexv4w9

 

EXHIBIT 4.9

FORM OF INDENTURE TO BE ENTERED INTO BETWEEN

THE COMPANY AND A TRUSTEE TO BE NAMED

 

INTERMUNE, INC.

 

INDENTURE

Dated as of                     , 200

 

[Name of Trustee]

Trustee

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I. DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	2	 
	Section 1.1. Definitions
	 	 	2	 
	Section 1.2. Other Definitions
	 	 	6	 
	Section 1.3. Incorporation by Reference of Trust Indenture Act
	 	 	6	 
	Section 1.4. Rules of Construction
	 	 	7	 
	ARTICLE II. THE SECURITIES
	 	 	7	 
	Section 2.1. Issuable in Series
	 	 	7	 
	Section 2.2. Establishment of Terms of Series of Securities
	 	 	7	 
	Section 2.3. Execution and Authentication
	 	 	10	 
	Section 2.4. Registrar and Paying Agent
	 	 	11	 
	Section 2.5. Paying Agent to Hold Money in Trust
	 	 	11	 
	Section 2.6. Securityholder Lists
	 	 	12	 
	Section 2.7. Transfer and Exchange
	 	 	12	 
	Section 2.8. Mutilated, Destroyed, Lost and Stolen Securities
	 	 	12	 
	Section 2.9. Outstanding Securities
	 	 	13	 
	Section 2.10. Treasury Securities
	 	 	14	 
	Section 2.11. Temporary Securities
	 	 	14	 
	Section 2.12. Cancellation
	 	 	14	 
	Section 2.13. Defaulted Interest
	 	 	14	 
	Section 2.14. Global Securities
	 	 	14	 
	Section 2.15. CUSIP Numbers
	 	 	16	 
	ARTICLE III. REDEMPTION
	 	 	16	 
	Section 3.1. Notice to Trustee
	 	 	16	 
	Section 3.2. Selection of Securities to be Redeemed
	 	 	16	 
	Section 3.3. Notice of Redemption
	 	 	16	 
	Section 3.4. Effect of Notice of Redemption
	 	 	17	 
	Section 3.5. Deposit of Redemption Price
	 	 	17	 
	Section 3.6. Securities Redeemed in Part
	 	 	17	 
	ARTICLE IV. COVENANTS
	 	 	18	 
	Section 4.1. Payment of Principal and Interest
	 	 	18	 
	Section 4.2. SEC Reports
	 	 	18	 
	Section 4.3. Compliance Certificate
	 	 	18	 
	Section 4.4. Stay, Extension and Usury Laws
	 	 	18	 
	Section 4.5. Corporate Existence
	 	 	19	 
	Section 4.6. Taxes
	 	 	19	 
	ARTICLE V. SUCCESSORS
	 	 	19	 
	Section 5.1. When Company May Merge, Etc
	 	 	19	 
	Section 5.2. Successor Corporation Substituted
	 	 	19	 
	ARTICLE VI. DEFAULTS AND REMEDIES
	 	 	20	 
	Section 6.1. Events of Default
	 	 	20	 
	Section 6.2. Acceleration of Maturity; Rescission and Annulment
	 	 	21	 
	Section 6.3. Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	22	 
	Section 6.4. Trustee May File Proofs of Claim
	 	 	23	 

i

 

	 	 	 	 	 
	 	 	Page	 
	Section 6.5. Trustee May Enforce Claims Without Possession of Securities
	 	 	23	 
	Section 6.6. Application of Money Collected
	 	 	24	 
	Section 6.7. Limitation on Suits
	 	 	24	 
	Section 6.8. Unconditional Right of Holders to Receive Principal and Interest
	 	 	25	 
	Section 6.9. Restoration of Rights and Remedies
	 	 	25	 
	Section 6.10. Rights and Remedies Cumulative
	 	 	25	 
	Section 6.11. Delay or Omission Not Waiver
	 	 	25	 
	Section 6.12. Control by Holders
	 	 	25	 
	Section 6.13. Waiver of Past Defaults
	 	 	26	 
	Section 6.14. Undertaking for Costs
	 	 	26	 
	ARTICLE VII. TRUSTEE
	 	 	26	 
	Section 7.1. Duties of Trustee
	 	 	26	 
	Section 7.2. Rights of Trustee
	 	 	28	 
	Section 7.3. Individual Rights of Trustee
	 	 	28	 
	Section 7.4. Trustee’s Disclaimer
	 	 	28	 
	Section 7.5. Notice of Defaults
	 	 	29	 
	Section 7.6. Reports by Trustee to Holders
	 	 	29	 
	Section 7.7. Compensation and Indemnity
	 	 	29	 
	Section 7.8. Replacement of Trustee
	 	 	30	 
	Section 7.9. Successor Trustee by Merger, Etc
	 	 	31	 
	Section 7.10. Eligibility; Disqualification
	 	 	31	 
	Section 7.11. Preferential Collection of Claims Against Company
	 	 	31	 
	ARTICLE VIII. SATISFACTION AND DISCHARGE; DEFEASANCE
	 	 	31	 
	Section 8.1. Satisfaction and Discharge of Indenture
	 	 	31	 
	Section 8.2. Application of Trust Funds; Indemnification
	 	 	32	 
	Section 8.3. Legal Defeasance of Securities of any Series
	 	 	33	 
	Section 8.4. Covenant Defeasance
	 	 	35	 
	Section 8.5. Repayment to Company
	 	 	36	 
	Section 8.6. Reinstatement
	 	 	36	 
	ARTICLE IX. AMENDMENTS AND WAIVERS
	 	 	36	 
	Section 9.1. Without Consent of Holders
	 	 	36	 
	Section 9.2. With Consent of Holders
	 	 	37	 
	Section 9.3. Limitations
	 	 	37	 
	Section 9.4. Compliance with Trust Indenture Act
	 	 	38	 
	Section 9.5. Revocation and Effect of Consents
	 	 	38	 
	Section 9.6. Notation on or Exchange of Securities
	 	 	39	 
	Section 9.7. Trustee Protected
	 	 	39	 
	ARTICLE X. MISCELLANEOUS
	 	 	39	 
	Section 10.1. Trust Indenture Act Controls
	 	 	39	 
	Section 10.2. Notices
	 	 	39	 
	Section 10.3. Communication by Holders with Other Holders
	 	 	40	 
	Section 10.4. Certificate and Opinion as to Conditions Precedent
	 	 	40	 
	Section 10.5. Statements Required in Certificate or Opinion
	 	 	40	 
	Section 10.6. Rules by Trustee and Agents
	 	 	41	 
	Section 10.7. Legal Holidays
	 	 	41	 
	Section 10.8. No Recourse Against Others
	 	 	41	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	Section 10.9. Counterparts
	 	 	41	 
	Section 10.10. Governing Laws
	 	 	41	 
	Section 10.11. No Adverse Interpretation of Other Agreements
	 	 	41	 
	Section 10.12. Successors
	 	 	41	 
	Section 10.13. Severability
	 	 	42	 
	Section 10.14. Table of Contents, Headings, Etc
	 	 	42	 
	Section 10.15. Securities in a Foreign Currency or in ECU
	 	 	42	 
	Section 10.16. Judgment Currency
	 	 	43	 
	ARTICLE XI. SINKING FUNDS
	 	 	43	 
	Section 11.1. Applicability of Article
	 	 	43	 
	Section 11.2. Satisfaction of Sinking Fund Payments with Securities
	 	 	43	 
	Section 11.3. Redemption of Securities for Sinking Fund
	 	 	44	 

iii

 

INTERMUNE, INC.

Reconciliation and tie between Trust Indenture Act of 1939 and

Indenture, dated as of ___, 200_

	 	 	 
	Section 310(a)(1)
	 	7.10
	(a)(2)
	 	7.10
	(a)(3)
	 	Not Applicable
	(a)(4)
	 	Not Applicable
	(a)(5)
	 	7.10
	(b)
	 	7.10
	Section 311(a)
	 	7.11
	(b)
	 	7.11
	(c)
	 	Not Applicable
	Section 312(a)
	 	2.6
	(b)
	 	10.3
	(c)
	 	10.3
	Section 313(a)
	 	7.6
	(b)(1)
	 	7.6
	(b)(2)
	 	7.6
	(c)(1)
	 	7.6
	(d)
	 	7.6
	Section 314(a)
	 	4.2, 10.5
	(b)
	 	Not Applicable
	(c)(1)
	 	10.4
	(c)(2)
	 	10.4
	(c)(3)
	 	Not Applicable
	(d)
	 	Not Applicable
	(e)
	 	10.5
	(f)
	 	Not Applicable
	Section 315(a)
	 	7.1
	(b)
	 	7.5
	(c)
	 	7.1
	(d)
	 	7.1
	(e)
	 	6.14
	Section 316(a)
	 	2.10
	(a)(1)(A)
	 	6.12
	(a)(1)(B)
	 	6.13
	(b)
	 	6.8
	Section 317(a)(1)
	 	6.3
	(a)(2)
	 	6.4
	(b)
	 	2.5
	Section 318(a)
	 	10.1

      

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

 

 

          Indenture
dated as of                     , 200___ between InterMune, Inc., a Delaware corporation
(“Company”), and [Name of Trustee], a                                         (“Trustee”).

          Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Securities issued under this Indenture.

ARTICLE I.

DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.1. Definitions.

          “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 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” (including, with correlative meanings, the terms “controlled
by” and “under common control with”), as used with respect to any person, shall mean the
possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of such person, whether through the ownership of voting securities or by agreement or
otherwise.

          “Agent” means any Registrar, Paying Agent, Service Agent or authenticating agent.

          “Authorized Newspaper” means a newspaper in an official language of the country of publication
customarily published at least once a day for at least five days in each calendar week and of
general circulation in the place in connection with which the term is used. If it shall be
impractical to make any publication of any notice required hereby in an Authorized Newspaper, any
publication or other notice in lieu thereof that is made or given by the Trustee shall constitute a
sufficient publication of such notice.

          “Bearer” means anyone in possession from time to time of a Bearer Security.

          “Bearer Security” means any Security, including any interest coupon appertaining thereto, that
does not provide for the identification of the Holder thereof.

          “Board of Directors” means the Board of Directors of the Company or any duly authorized
committee thereof.

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

2

 

          “Business Day” means, unless otherwise provided by Board Resolution, Officers’ Certificate or
supplemental indenture hereto for a particular Series, any day except a Saturday, Sunday or a legal
holiday in The City of New York or The City of San Francisco on which banking institutions are
authorized or required by law, regulation or executive order to close.

          “Company” means the party named as such above until a successor replaces it and thereafter
means the successor.

          “Company Order” means a written order signed in the name of the Company by two Officers, one
of whom must be the Company’s chief executive officer, chief financial officer or principal
accounting officer.

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

          “Corporate Trust Office” means the office of the Trustee at which at any particular time its
corporate trust business shall be principally administered.

          “Debt” of any person as of any date means, without duplication, all indebtedness of such
person in respect of borrowed money, including all interest, fees and expenses owed in respect
thereto (whether or not the recourse of the lender is to the whole of the assets of such person or
only to a portion thereof), or evidenced by bonds, notes, debentures or similar instruments.

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

          “Depository” means, with respect to the Securities of any Series issuable or issued in whole
or in part in the form of one or more Global Securities, the person designated as Depository for
such Series by the Company, which Depository shall be a clearing agency registered under the
Exchange Act; and if at any time there is more than one such person, “Depository” as used with
respect to the Securities of any Series shall mean the Depository with respect to the Securities of
such Series.

          “Discount Security” means any Security that provides for an amount less than the stated
principal amount thereof to be due and payable upon declaration of acceleration of the maturity
thereof pursuant to Section 6.2.

          “Dollars” means the currency of The United States of America.

          “ECU” means the European Currency Unit as determined by the Commission of the European Union.

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

          “Foreign Currency” means any currency or currency unit issued by a government other than the
government of The United States of America.

3

 

          “Foreign Government Obligations” means with respect to Securities of any Series that are
denominated in a Foreign Currency, (i) direct obligations of the government that issued or caused
to be issued such currency for the payment of which obligations its full faith and credit is
pledged or (ii) obligations of a person controlled or supervised by or acting as an agency or
instrumentality of such government the timely payment of which is unconditionally guaranteed as a
full faith and credit obligation by such government, which, in either case under clauses (i) or
(ii), are not callable or redeemable at the option of the issuer thereof.

          “Global Security” or “Global Securities” means a Security or Securities, as the case may be,
in the form established pursuant to Section 2.2 evidencing all or part of a Series of Securities,
issued to the Depository for such Series or its nominee, and registered in the name of such
Depository or nominee.

          “Holder” or “Securityholder” means a person in whose name a Security is registered or the
holder of a Bearer Security.

          “Indenture” means this Indenture as amended from time to time and shall include the form and
terms of particular Series of Securities established as contemplated hereunder.

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

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

          “Officer” means the Chairman of the Board, any President, any Vice-President, the Treasurer,
the Secretary, any Assistant Treasurer or any Assistant Secretary of the Company.

          “Officers’ Certificate” means a certificate signed by two Officers, one of whom must be the
Company’s principal executive officer, principal financial officer or principal accounting officer.

          “Opinion of Counsel” means a written opinion of legal counsel who is acceptable to the
Trustee. The counsel may be an employee of or counsel to the Company.

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

          “principal” of a Security means the principal of the Security plus, when appropriate, the
premium, if any, on, and any Additional Amounts in respect of, the Security.

          “Responsible Officer” means any officer of the Trustee in its Corporate Trust Office and also
means, with respect to a particular corporate trust matter, any other officer to whom any corporate
trust matter is referred because of his or her knowledge of and familiarity with a particular
subject.

4

 

          “SEC” means the Securities and Exchange Commission.

          “Securities” means the debentures, notes or other debt instruments of the Company of any
Series authenticated and delivered under this Indenture.

          “Series” or “Series of Securities” means each series of debentures, notes or other debt
instruments of the Company created pursuant to Sections 2.1 and 2.2 hereof.

          “Significant Subsidiary” means (i) any direct or indirect Subsidiary of the Company that would
be a “significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated
pursuant to the Securities Act of 1933, as amended, as such regulation is in effect on the date
hereof, or (ii) any group of direct or indirect Subsidiaries of the Company that, taken together as
a group, would be a “significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X,
promulgated pursuant to the Securities Act of 1933, as amended, as such regulation is in effect on
the date hereof.

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

          “Subsidiary” of any specified person means any corporation of which at least a majority of the
outstanding stock having by the terms thereof ordinary voting power for the election of directors
of such corporation (irrespective of whether or not at the time stock of any other class or classes
of such corporation shall have or might have voting power by reason of the happening of any
contingency) is at the time directly or indirectly owned by such person, or by one or more other
Subsidiaries, or by such person and one or more other Subsidiaries.

          “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb) as in effect
on the date of this Indenture; provided, however, that in the event the Trust
Indenture Act of 1939 is amended after such date, “TIA” means, to the extent required by any such
amendment, the Trust Indenture Act as so amended.

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

          “U.S. Government Obligations” means securities which are (i) direct obligations of The United
States of America for the payment of which its full faith and credit is pledged or (ii) obligations
of a person controlled or supervised by and acting as an agency or instrumentality of The United
States of America the payment of which is unconditionally guaranteed as a full faith and credit
obligation by The United States of America, and which in the case of (i) and (ii) are not callable
or redeemable at the option of the issuer thereof, and shall also include a depository receipt
issued by a bank or trust company as custodian with respect to any such U.S. Government Obligation
or a specific payment of interest on or principal of any such U.S.

5

 

Government Obligation held by such custodian for the account of the holder of a depository
receipt, provided that (except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depository receipt from any amount received
by the custodian in respect of the U.S. Government Obligation evidenced by such depository receipt.

     Section 1.2. Other Definitions.

	 	 	 
	 	 	DEFINED IN
	TERM	 	SECTION
	“Bankruptcy Law”
	 	6.1
	“Custodian”
	 	6.1
	“Event of Default”
	 	6.1
	“Journal”
	 	10.15
	“Judgment Currency”
	 	10.16
	“Legal Holiday”
	 	10.7
	“mandatory sinking fund payment”
	 	11.1
	“Market Exchange Rate”
	 	10.15
	“New York Banking Day”
	 	10.16
	“optional sinking fund payment”
	 	11.1
	“Paying Agent”
	 	2.4
	“Registrar”
	 	2.4
	“Required Currency”
	 	10.16
	“Service Agent”
	 	2.4
	“successor person”
	 	5.1

     Section 1.3. Incorporation by Reference of Trust Indenture Act.

          Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture. The following TIA terms used in this Indenture
have the following meanings:

          “Commission” means the SEC.

          “indenture securities” means the Securities.

          “indenture security holder” means a Securityholder.

          “indenture to be qualified” means this Indenture.

          “indenture trustee” or “institutional trustee” means the Trustee.

          “obligor” on the indenture securities means the Company and any successor
obligor upon the Securities.

6

 

          All other terms used in this Indenture that are defined by the TIA, defined by TIA reference
to another statute or defined by SEC rule under the TIA and not otherwise defined herein are used
herein as so defined.

     Section 1.4. Rules of Construction.

          Unless the context otherwise requires:

     (a) a term has the meaning assigned to it;

     (b) an accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles;

     (c) references to “generally accepted accounting principles” shall mean generally
accepted accounting principles in effect as of the time when and for the period as to which
such accounting principles are to be applied;

     (d) “or” is not exclusive;

     (e) words in the singular include the plural, and in the plural include the singular;
and

     (f) provisions apply to successive events and transactions.

ARTICLE II.

THE SECURITIES

     Section 2.1. Issuable in Series.

          The aggregate principal amount of Securities that may be authenticated and delivered under
this Indenture is unlimited. The Securities may be issued in one or more Series. All Securities of
a Series shall be identical except as may be set forth in a Board Resolution, a supplemental
indenture or an Officers’ Certificate detailing the adoption of the terms thereof pursuant to the
authority granted under a Board Resolution. In the case of Securities of a Series to be issued from
time to time, the Board Resolution, Officers’ Certificate or supplemental indenture may provide for
the method by which specified terms (such as interest rate, maturity date, record date or date from
which interest shall accrue) are to be determined. Securities may differ between Series in respect
of any matters, provided that all Series of Securities shall be equally and ratably entitled to the
benefits of the Indenture.

     Section 2.2. Establishment of Terms of Series of Securities.

          At or prior to the issuance of any Securities within a Series, the following shall be
established (as to the Series generally, in the case of Subsection 2.2.1 and either as to such
Securities within the Series or as to the Series generally in the case of Subsections 2.2.2 through
2.2.22) by a Board Resolution, a supplemental indenture or an Officers’ Certificate pursuant to
authority granted under a Board Resolution:

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          2.2.1. the title of the Series (which shall distinguish the Securities of that particular
Series from the Securities of any other Series);

          2.2.2. the price or prices (expressed as a percentage of the principal amount thereof) at
which the Securities of the Series will be issued;

          2.2.3. any limit upon the aggregate principal amount of the Securities of the Series which may
be authenticated and delivered under this Indenture (except for Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of
the Series pursuant to Section 2.7, 2.8, 2.11, 3.6 or 9.6);

          2.2.4. the date or dates on which the principal of the Securities of the Series is payable;

          2.2.5. the rate or rates (which may be fixed or variable) per annum or, if applicable, the
method used to determine such rate or rates (including, but not limited to, any commodity,
commodity index, stock exchange index or financial index) at which the Securities of the Series
shall bear interest, if any, the date or dates from which such interest, if any, shall accrue, the
date or dates on which such interest, if any, shall commence and be payable and any regular record
date for the interest payable on any interest payment date;

          2.2.6. the place or places where the principal of and interest, if any, on the Securities of
the Series shall be payable, or the method of such payment, if by wire transfer, mail or other
means;

          2.2.7. if applicable, the period or periods within which, the price or prices at which and the
terms and conditions upon which the Securities of the Series may be redeemed, in whole or in part,
at the option of the Company;

          2.2.8. the obligation, if any, of the Company to redeem or purchase the Securities of the
Series pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof
and the period or periods within which, the price or prices at which and the terms and conditions
upon which Securities of the Series shall be redeemed or purchased, in whole or in part, pursuant
to such obligation;

          2.2.9. the dates, if any, on which and the price or prices at which the Securities of the
Series will be repurchased by the Company at the option of the Holders thereof and other detailed
terms and provisions of such repurchase obligations;

          2.2.10. if other than denominations of $1,000 and any integral multiple thereof, the
denominations in which the Securities of the Series shall be issuable;

          2.2.11. the forms of the Securities of the Series in bearer or fully registered form (and, if
in fully registered form, whether the Securities will be issuable as Global Securities);

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          2.2.12. if other than the principal amount thereof, the portion of the principal amount of the
Securities of the Series that shall be payable upon declaration of acceleration of the maturity
thereof pursuant to Section 6.2;

          2.2.13. the currency of denomination of the Securities of the Series, which may be Dollars or
any Foreign Currency, including, but not limited to, the ECU, and if such currency of denomination
is a composite currency other than the ECU, the agency or organization, if any, responsible for
overseeing such composite currency;

          2.2.14. the designation of the currency, currencies or currency units in which payment of the
principal of and interest, if any, on the Securities of the Series will be made;

          2.2.15. if payments of principal of or interest, if any, on the Securities of the Series are
to be made in one or more currencies or currency units other than that or those in which such
Securities are denominated, the manner in which the exchange rate with respect to such payments
will be determined;

          2.2.16. the manner in which the amounts of payment of principal of or interest, if any, on the
Securities of the Series will be determined, if such amounts may be determined by reference to an
index based on a currency or currencies or by reference to a commodity, commodity index, stock
exchange index or financial index;

          2.2.17. the provisions, if any, relating to any security provided for the Securities of the
Series;

          2.2.18. if the holders of Securities of the Series may convert or exchange the Securities into
or for securities of the Issuer or of other entities or other property, the period or periods
within which, the rate or rates at which and the terms and conditions upon which Securities of the
Series may be converted or exchanged, in whole or in part;

          2.2.19. any addition to or change in the Events of Default which applies to any Securities of
the Series and any change in the right of the Trustee or the requisite Holders of such Securities
to declare the principal amount thereof due and payable pursuant to Section 6.2;

          2.2.20. any addition to or change in the covenants set forth in Articles IV or V which applies
to Securities of the Series;

          2.2.21. any other terms of the Securities of the Series (which terms shall not be inconsistent
with the provisions of this Indenture, except as permitted by Section 9.1, but which may modify or
delete any provision of this Indenture insofar as it applies to such Series); and

          2.2.22. any depositories, interest rate calculation agents, exchange rate calculation agents
or other agents with respect to Securities of such Series if other than those appointed herein.

          All Securities of any one Series need not be issued at the same time and may be issued
from time to time, consistent with the terms of this Indenture, if so provided by or

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pursuant to the Board Resolution, supplemental indenture or Officers’ Certificate referred to
above, and the authorized principal amount of any Series may not be increased to provide for
issuances of additional Securities of such Series, unless otherwise provided in such Board
Resolution, supplemental indenture or Officers’ Certificate.

     Section 2.3. Execution and Authentication.

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

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

          A Security shall not be valid until authenticated by the manual signature of the Trustee or an
authenticating agent. The signature shall be conclusive evidence that the Security has been
authenticated under this Indenture.

          The Trustee shall at any time, and from time to time, authenticate Securities for original
issue in the principal amount provided in the Board Resolution, supplemental indenture hereto or
Officers’ Certificate, upon receipt by the Trustee of a Company Order. Such Company Order may
authorize authentication and delivery pursuant to oral or electronic instructions from the Company
or its duly authorized agent or agents, which oral instructions shall be promptly confirmed in
writing. Each Security shall be dated the date of its authentication unless otherwise provided by
a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate.

          The aggregate principal amount of Securities of any Series outstanding at any time may not
exceed any limit upon the maximum principal amount for such Series set forth in the Board
Resolution, supplemental indenture hereto or Officers’ Certificate delivered pursuant to Section
2.2, except as provided in Section 2.8.

          Prior to the issuance of Securities of any Series, the Trustee shall have received and
(subject to Section 7.2) shall be fully protected in relying on: (a) the Board Resolution,
supplemental indenture hereto or Officers’ Certificate establishing the form of the Securities of
that Series or of Securities within that Series and the terms of the Securities of that Series or
of Securities within that Series, (b) an Officers’ Certificate complying with Section 10.4, and (c)
an Opinion of Counsel complying with Section 10.4.

          The Trustee shall have the right to decline to authenticate and deliver any Securities of such
Series: (a) if the Trustee, being advised by counsel, determines that such action may not lawfully
be taken; or (b) if the Trustee in good faith by its board of directors or trustees, executive
committee or a trust committee of directors and/or vice-presidents shall determine that such action
would expose the Trustee to personal liability to Holders of any then outstanding Series of
Securities.

          The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Securities. An authenticating agent may authenticate Securities whenever the Trustee may do so.
Each reference in this Indenture to authentication by the Trustee includes

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authentication by such agent. An authenticating agent has the same rights as an Agent to deal
with the Company or an Affiliate.

     Section 2.4. Registrar and Paying Agent.

          The Company shall maintain, with respect to each Series of Securities, at the place or places
specified with respect to such Series pursuant to Section 2.2, an office or agency where Securities
of such Series may be presented or surrendered for payment (“Paying Agent”), where Securities of
such Series may be surrendered for registration of transfer or exchange (“Registrar”) and where
notices and demands to or upon the Company in respect of the Securities of such Series and this
Indenture may be served (“Service Agent”). The Registrar shall keep a register with respect to
each Series of Securities and to their transfer and exchange. The Company will give prompt written
notice to the Trustee of the name and address, and any change in the name or address, of each
Registrar, Paying Agent or Service Agent. If at any time the Company shall fail to maintain any
such required Registrar, Paying Agent or Service Agent or shall fail to furnish the Trustee with
the name and address thereof, such presentations, surrenders, notices and demands may be made or
served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as
its agent to receive all such presentations, surrenders, notices and demands.

          The Company may also from time to time designate one or more co-registrars, additional paying
agents or additional service agents 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 obligations to maintain a Registrar, Paying Agent and Service Agent in
each place so specified pursuant to Section 2.2 for Securities of any Series for such purposes.
The Company will give prompt written notice to the Trustee of any such designation or rescission
and of any change in the name or address of any such co-registrar, additional paying agent or
additional service agent. The term “Registrar” includes any co-registrar; the term “Paying Agent”
includes any additional paying agent; and the term “Service Agent” includes any additional service
agent.

          The Company hereby appoints the Trustee the initial Registrar, Paying Agent and Service Agent
for each Series unless another Registrar, Paying Agent or Service Agent, as the case may be, is
appointed prior to the time Securities of that Series are first issued.

     Section 2.5. Paying Agent to Hold Money in Trust.

          The Company shall require each Paying Agent other than the Trustee to agree in writing that
the Paying Agent will hold in trust, for the benefit of Securityholders of any Series of
Securities, or the Trustee, all money held by the Paying Agent for the payment of principal of or
interest on the Series of Securities, and will notify the Trustee of any default by the Company in
making any such payment. While any such default continues, the Trustee may require a Paying Agent
to pay all money held by it to the Trustee. The Company at any time may require a Paying Agent to
pay all money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if
other than the Company or a Subsidiary) shall have no further liability for the money. If the
Company or a Subsidiary acts as Paying Agent, it shall segregate and hold in a

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separate trust fund for the benefit of Securityholders of any Series of Securities all money
held by it as Paying Agent.

     Section 2.6. Securityholder Lists.

          The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of Securityholders of each Series of Securities and
shall otherwise comply with TIA Section 312(a). If the Trustee is not the Registrar, the Company
shall furnish to the Trustee at least ten days before each interest payment date and at such other
times as the Trustee may request in writing a list, in such form and as of such date as the Trustee
may reasonably require, of the names and addresses of Securityholders of each Series of Securities.

     Section 2.7. Transfer and Exchange.

          Where Securities of a Series are presented to the Registrar or a co-registrar with a request
to register a transfer or to exchange them for an equal principal amount of Securities of the same
Series, the Registrar shall register the transfer or make the exchange if its requirements for such
transactions are met. To permit registrations of transfers and exchanges, the Trustee shall
authenticate Securities at the Registrar’s request. No service charge shall be made for any
registration of transfer or exchange (except as otherwise expressly permitted herein), but the
Company may require payment of a sum sufficient to cover any transfer tax or similar governmental
charge payable in connection therewith (other than any such transfer tax or similar governmental
charge payable upon exchanges pursuant to Sections 2.11, 3.6 or 9.6).

          Neither the Company nor the Registrar shall be required (a) to issue, register the transfer
of, or exchange Securities of any Series for the period beginning at the opening of business
fifteen days immediately preceding the mailing of a notice of redemption of Securities of that
Series selected for redemption and ending at the close of business on the day of such mailing, or
(b) to register the transfer of or exchange Securities of any Series selected, called or being
called for redemption as a whole or the portion being redeemed of any such Securities selected,
called or being called for redemption in part.

     Section 2.8. Mutilated, Destroyed, Lost and Stolen Securities.

          If any mutilated Security is surrendered to the Trustee, the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a new Security of the same Series and
of like tenor and principal amount and bearing a number not contemporaneously outstanding.

          If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and upon its request the Trustee shall authenticate and make
available for delivery, in lieu of any such destroyed, lost or stolen Security, a new Security of
the same Series and of like tenor and principal amount and bearing a number not contemporaneously
outstanding.

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          In case any such mutilated, destroyed, lost or stolen Security 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.

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

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

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

     Section 2.9. Outstanding Securities.

          The Securities outstanding at any time are all the Securities authenticated by the Trustee
except for those canceled by it, those delivered to it for cancellation, those reductions in the
interest on a Global Security effected by the Trustee in accordance with the provisions hereof and
those described in this Section as not outstanding.

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

          If the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof)
holds on the Maturity of Securities of a Series money sufficient to pay such Securities payable on
that date, then on and after that date such Securities of the Series cease to be outstanding and
interest on them ceases to accrue.

          A Security does not cease to be outstanding because the Company or an Affiliate holds the
Security.

          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, the
principal amount of a Discount Security that shall be deemed to be outstanding for such purposes
shall be the amount of the principal thereof that would be due and payable as of the date of such
determination upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.2.

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     Section 2.10. Treasury Securities.

          In determining whether the Holders of the required principal amount of Securities of a Series
have concurred in any request, demand, authorization, direction, notice, consent or waiver
Securities of a Series owned by the Company or an Affiliate shall be disregarded, except that for
the purposes of determining whether the Trustee shall be protected in relying on any such request,
demand, authorization, direction, notice, consent or waiver only Securities of a Series that the
Trustee knows are so owned shall be so disregarded.

     Section 2.11. Temporary Securities.

          Until definitive Securities are ready for delivery, the Company may prepare and the Trustee
shall authenticate temporary Securities upon a Company Order. Temporary Securities shall be
substantially in the form of definitive Securities but may have variations that the Company
considers appropriate for temporary Securities. Without unreasonable delay, the Company shall
prepare and the Trustee upon request shall authenticate definitive Securities of the same Series
and date of maturity in exchange for temporary Securities. Until so exchanged, temporary
Securities shall have the same rights under this Indenture as the definitive Securities.

     Section 2.12. Cancellation.

          The Company at any time may deliver Securities to the Trustee for cancellation. The Registrar
and the Paying Agent shall forward to the Trustee any Securities surrendered to them for
registration of transfer, exchange or payment. The Trustee shall cancel all Securities surrendered
for transfer, exchange, payment, replacement or cancellation and shall destroy such canceled
Securities (subject to the record retention requirement of the Exchange Act) and deliver a
certificate of such destruction to the Company, unless the Company otherwise directs. The Company
may not issue new Securities to replace Securities that it has paid or delivered to the Trustee for
cancellation.

     Section 2.13. Defaulted Interest.

          If the Company defaults in a payment of interest on a Series of Securities, it shall pay the
defaulted interest, plus, to the extent permitted by law, any interest payable on the defaulted
interest, to the persons who are Securityholders of the Series on a subsequent special record date.
The Company shall fix the record date and payment date. At least 30 days before the record date,
the Company shall mail to the Trustee and to each Securityholder of the Series a notice that states
the record date, the payment date and the amount of interest to be paid. The Company may pay
defaulted interest in any other lawful manner.

     Section 2.14. Global Securities.

          2.14.1. Terms of Securities. A Board Resolution, a supplemental indenture hereto or
an Officers’ Certificate shall establish whether the Securities of a Series shall be issued in
whole or in part in the form of one or more Global Securities and the Depository for such Global
Security or Securities.

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          2.14.2. Transfer and Exchange. Notwithstanding any provisions to the contrary
contained in Section 2.7 of the Indenture and in addition thereto, any Global Security shall be
exchangeable pursuant to Section 2.7 of the Indenture for Securities registered in the names of
Holders other than the Depository for such Security or its nominee only if (i) such Depository
notifies the Company that it is unwilling or unable to continue as Depository for such Global
Security or if at any time such Depository ceases to be a clearing agency registered under the
Exchange Act, and, in either case, the Company fails to appoint a successor Depository within 90
days of such event, (ii) the Company executes and delivers to the Trustee an Officers’ Certificate
to the effect that such Global Security shall be so exchangeable or (iii) an Event of Default with
respect to the Securities represented by such Global Security shall have happened and be
continuing. Any Global Security that is exchangeable pursuant to the preceding sentence shall be
exchangeable for Securities registered in such names as the Depository shall direct in writing in
an aggregate principal amount equal to the principal amount of the Global Security with like tenor
and terms.

          Except as provided in this Section 2.14.2, a Global Security may not be transferred except as
a whole by the Depository with respect to such Global Security to a nominee of such Depository, by
a nominee of such Depository to such Depository or another nominee of such Depository or by the
Depository or any such nominee to a successor Depository or a nominee of such a successor
Depository.

          2.14.3. Legend. Unless otherwise provided pursuant to Section 2.2, any Global
Security issued hereunder shall bear a legend in substantially the following form:

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

          2.14.4. Acts of Holders. The Depository, as a Holder, may appoint agents and
otherwise authorize participants to give or take any request, demand, authorization, direction,
notice, consent, waiver or other action which a Holder is entitled to give or take under the
Indenture.

          2.14.5. Payments. Notwithstanding the other provisions of this Indenture, unless
otherwise specified as contemplated by Section 2.2, payment of the principal of, premium, if any,
and interest, if any, on any Global Security shall be made to the Holder thereof.

          2.14.6. Consents, Declaration and Directions. Except as provided in Section 2.14.5,
the Company, the Trustee and any Agent shall treat a person as the Holder of such principal amount
of outstanding Securities of such Series represented by a Global Security as shall be specified in
a written statement of the Depository with respect to such Global Security,

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for purposes of obtaining any consents, declarations, waivers or directions required to be
given by the Holders pursuant to this Indenture.

     Section 2.15. CUSIP Numbers.

          The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use), and,
if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders;
provided that 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 elements of identification printed on
the Securities, and any such redemption shall not be affected by any defect in or omission of such
numbers.

ARTICLE III.

REDEMPTION

     Section 3.1. Notice to Trustee.

          The Company may, with respect to any Series of Securities, reserve the right to redeem and pay
the Series of Securities or may covenant to redeem and pay the Series of Securities or any part
thereof prior to the Stated Maturity thereof at such time and on such terms as provided for in such
Securities. If a Series of Securities is redeemable and the Company wants or is obligated to
redeem prior to the Stated Maturity thereof all or part of the Series of Securities pursuant to the
terms of such Securities, it shall notify the Trustee of the redemption date and the principal
amount of Series of Securities to be redeemed. The Company shall give the notice at least 45 days
before the redemption date (or such shorter notice as may be acceptable to the Trustee).

     Section 3.2. Selection of Securities to be Redeemed.

          Unless otherwise indicated for a particular Series by a Board Resolution, a supplemental
indenture or an Officers’ Certificate, if less than all the Securities of a Series are to be
redeemed, the Trustee shall select the Securities of the Series to be redeemed in any manner that
the Trustee deems fair and appropriate. The Trustee shall make the selection from Securities of
the Series outstanding not previously called for redemption. The Trustee may select for redemption
portions of the principal of Securities of the Series that have denominations larger than $1,000.
Securities of the Series and portions of them it selects shall be in amounts of $1,000 or whole
multiples of $1,000 or, with respect to Securities of any Series issuable in other denominations
pursuant to Section 2.2.10, the minimum principal denomination for each Series and integral
multiples thereof. Provisions of this Indenture that apply to Securities of a Series called for
redemption also apply to portions of Securities of that Series called for redemption.

     Section 3.3. Notice of Redemption.

          Unless otherwise indicated for a particular Series by a Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate, at least 30 days but not more than 60 days before a
redemption date, the Company shall mail a notice of redemption by first-class mail

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to each Holder whose Securities are to be redeemed and if any Bearer Securities are
outstanding, publish on one occasion a notice in an Authorized Newspaper.

          The notice shall identify the Securities of the Series to be redeemed and shall state:

     (a) the redemption date;

     (b) the redemption price;

     (c) the name and address of the Paying Agent;

     (d) that Securities of the Series called for redemption must be surrendered to the
Paying Agent to collect the redemption price;

     (e) that interest on Securities of the Series called for redemption ceases to accrue on
and after the redemption date; and

     (f) any other information as may be required by the terms of the particular Series or
the Securities of a Series being redeemed.

          At the Company’s request, the Trustee shall give the notice of redemption in the Company’s
name and at its expense.

     Section 3.4. Effect of Notice of Redemption.

          Once notice of redemption is mailed or published as provided in Section 3.3, Securities of a
Series called for redemption become due and payable on the redemption date and at the redemption
price. A notice of redemption may not be conditional. Upon surrender to the Paying Agent, such
Securities shall be paid at the redemption price plus accrued interest to the redemption date.

     Section 3.5. Deposit of Redemption Price.

          On or before the redemption date, the Company shall deposit with the Paying Agent money
sufficient to pay the redemption price of and accrued interest, if any, on all Securities to be
redeemed on that date.

     Section 3.6. Securities Redeemed in Part.

          Upon surrender of a Security that is redeemed in part, the Trustee shall authenticate for the
Holder a new Security of the same Series and the same Maturity equal in principal amount to the
unredeemed portion of the Security surrendered.

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ARTICLE IV.

COVENANTS

     Section 4.1. Payment of Principal and Interest.

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

     Section 4.2. SEC Reports.

          The Company shall deliver to the Trustee within 15 days after it files them with the SEC
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 SEC may by rules and regulations prescribe) which the
Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. The
Company also shall comply with the other provisions of TIA Section 314(a).

     Section 4.3. Compliance Certificate.

          The Company shall deliver to the Trustee, within 90 days after the end of each fiscal year of
the Company, an Officers’ Certificate stating that a review of the activities of the Company and
its Subsidiaries during the preceding fiscal year has been made under the supervision of the
signing Officers with a view to determining whether the Company has kept, observed, performed and
fulfilled its obligations under this Indenture, and further stating, as to each such Officer
signing such certificate, that to the best of his knowledge the Company has kept, observed,
performed and fulfilled each and every covenant contained in this Indenture and is not in default
in the performance or observance of any of the terms, provisions and conditions hereof (or, if a
Default or Event of Default shall have occurred, describing all such Defaults or Events of Default
of which he may have knowledge).

          The Company will, so long as any of the Securities are outstanding, deliver to the Trustee,
forthwith upon becoming aware of any Default or Event of Default, an Officers’ Certificate
specifying such Default or Event of Default and what action the Company is taking or proposes to
take with respect thereto.

     Section 4.4. Stay, Extension and Usury Laws.

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

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     Section 4.5. Corporate Existence.

          Subject to Article V, the Company will do or cause to be done all things necessary to preserve
and keep in full force and effect its corporate existence and the corporate, partnership or other
existence of each Significant Subsidiary in accordance with the respective organizational documents
of each Significant Subsidiary and the rights (charter and statutory), licenses and franchises of
the Company and its Significant Subsidiaries; provided, however, that the Company
shall not be required to preserve any such right, license or franchise, or the corporate,
partnership or other existence of any Significant Subsidiary, if the Board of Directors shall
determine that the preservation thereof is no longer desirable in the conduct of the business of
the Company and its Subsidiaries taken as a whole and that the loss thereof is not adverse in any
material respect to the Holders.

     Section 4.6. Taxes.

          The Company shall, and shall cause each of its Significant Subsidiaries to, pay prior to
delinquency all taxes, assessments and governmental levies, except as contested in good faith and
by appropriate proceedings.

ARTICLE V.

SUCCESSORS

     Section 5.1. When Company May Merge, Etc.

          The Company shall not consolidate with or merge into, or convey, transfer or lease all or
substantially all of its properties and assets to, any person (a “successor person”), and may not
permit any person to merge into, or convey, transfer or lease its properties and assets
substantially as an entirety to, the Company, unless:

     (a) the successor person (if any) is a corporation, partnership, trust or other entity
organized and validly existing under the laws of any U.S. domestic jurisdiction and
expressly assumes the Company’s obligations on the Securities and under this Indenture and

     (b) immediately after giving effect to the transaction, no Default or Event of Default,
shall have occurred and be continuing.

          The Company shall deliver to the Trustee prior to the consummation of the proposed transaction
an Officers’ Certificate to the foregoing effect and an Opinion of Counsel stating that the
proposed transaction and such supplemental indenture comply with this Indenture.

     Section 5.2. Successor Corporation Substituted.

          Upon any consolidation or merger, or any sale, lease, conveyance or other disposition of all
or substantially all of the assets of the Company in accordance with Section 5.1, the successor
corporation formed by such consolidation or into or with which the Company is merged or to which
such sale, lease, conveyance or other disposition is made shall succeed to,

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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 has been named as the Company herein;
provided, however, that the predecessor Company in the case of a sale, lease,
conveyance or other disposition shall not be released from the obligation to pay the principal of
and interest, if any, on the Securities.

ARTICLE VI.

DEFAULTS AND REMEDIES

     Section 6.1. Events of Default.

          “Event of Default,” wherever used herein with respect to Securities of any Series, means any
one of the following events, unless in the establishing Board Resolution, supplemental indenture or
Officers’ Certificate, it is provided that such Series shall not have the benefit of said Event of
Default:

     (a) default in the payment of any interest on any Security of that Series when it
becomes due and payable, and continuance of such default for a period of 30 days (unless the
entire amount of such payment is deposited by the Company with the Trustee or with a Paying
Agent prior to the expiration of such period of 30 days); or

     (b) default in the payment of the principal of any Security of that Series at its
Maturity; or

     (c) default in the deposit of any sinking fund payment, when and as due in respect of
any Security of that Series; or

     (d) default in the performance or breach of any covenant or warranty of the Company in
this Indenture (other than a covenant or warranty that has been included in this Indenture
solely for the benefit of Series of Securities other than that Series), which default
continues uncured for a period of 60 days after there has been given, by registered or
certified mail, to the Company by the Trustee or to the Company and the Trustee by the
Holders of at least 25% in principal amount of the outstanding Securities of that Series a
written notice specifying such default or breach and requiring it to be remedied and stating
that such notice is a “Notice of Default” hereunder; or

     (e) the Company or any of its Significant Subsidiaries pursuant to or within the
meaning of any Bankruptcy Law:

     (i) commences a voluntary case,

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

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

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

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     (v) generally is unable to pay its debts as the same become due; or

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

     (i) is for relief against the Company or any of its Significant Subsidiaries in
an involuntary case,

     (ii) appoints a Custodian of the Company or any of its Significant Subsidiaries
or for all or substantially all of its property, or

     (iii) orders the liquidation of the Company or any of its Significant
Subsidiaries,

and the order or decree remains unstayed and in effect for 60 days; or

     (g) any other Event of Default provided with respect to Securities of that Series,
which is specified in a Board Resolution, a supplemental indenture hereto or an Officers’
Certificate, in accordance with Section 2.2.19.

          The term “Bankruptcy Law” means title 11, U.S. Code or any similar Federal or State law for
the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator or
similar official under any Bankruptcy Law.

     Section 6.2. Acceleration of Maturity; Rescission and Annulment.

          If an Event of Default with respect to Securities of any Series at the time outstanding occurs
and is continuing (other than an Event of Default referred to in Section 6.1(e) or (f)) then in
every such case the Trustee or the Holders of not less than 25% in principal amount of the
outstanding Securities of that Series may declare the principal amount (or, if any Securities of
that Series are Discount Securities, such portion of the principal amount as may be specified in
the terms of such Securities) of and accrued and unpaid interest, if any, on all of the Securities
of that Series to be due and payable immediately, by a notice in writing to the Company (and to the
Trustee if given by Holders), and upon any such declaration such principal amount (or specified
amount) and accrued and unpaid interest, if any, shall become immediately due and payable. If an
Event of Default specified in Section 6.1(e) or (f) shall occur, the principal amount (or specified
amount) of and accrued and unpaid interest, if any, on all outstanding Securities 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.

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

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

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     (i) all overdue interest, if any, on all Securities of that Series,

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

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

     (iv) 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

     (b) all Events of Default with respect to Securities of that Series, other than the
non-payment of the principal of Securities of that Series which have become due solely by
such declaration of acceleration, have been cured or waived as provided in Section 6.13.

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

     Section 6.3. Collection of Indebtedness and Suits for Enforcement by Trustee.

          The Company covenants that if

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

     (b) default is made in the payment of principal of any Security at the Maturity
thereof, or

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

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

          If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own
name and as trustee of an express trust, may institute a judicial proceeding for the collection of
the sums so due and unpaid, may prosecute such proceeding to judgment or

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final decree and may enforce the same against the Company or any other obligor upon such
Securities and collect the moneys adjudged or deemed to be payable in the manner provided by law
out of the property of the Company or any other obligor upon such Securities, wherever situated.

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

     Section 6.4. 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 or the property of the Company or of 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 overdue
principal or interest) shall be entitled and empowered, by intervention in such proceeding or
otherwise,

     (a) to file and prove a claim for the whole amount of principal and interest owing and
unpaid in respect of the Securities and to file such other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel) and of the Holders allowed in such judicial proceeding, and

     (b) to collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same, and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial proceeding is hereby
authorized by each Holder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to pay to the
Trustee any amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.7.

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

     Section 6.5. Trustee May Enforce Claims Without Possession of Securities.

          All rights of action and claims under this Indenture or the Securities may be prosecuted and
enforced by the Trustee without the possession of any of the Securities or the

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production thereof in any proceeding relating thereto, and any such proceeding instituted by
the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of
judgment shall, after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of
the Holders of the Securities in respect of which such judgment has been recovered.

     Section 6.6. 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 interest, upon presentation of the Securities and the notation thereon of
the payment if only partially paid and upon surrender thereof if fully paid:

          First: To the payment of all amounts due the Trustee under Section 7.7; and

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

          Third: To the Company.

     Section 6.7. Limitation on Suits.

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

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

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

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

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

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

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

24

 

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

     Section 6.8. Unconditional Right of Holders to Receive Principal and Interest.

          Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the principal of and
interest, if any, on such Security on the Stated Maturity or Stated Maturities expressed in such
Security (or, in the case of redemption, on the redemption date) and to institute suit for the
enforcement of any such payment, and such rights shall not be impaired without the consent of such
Holder.

     Section 6.9. Restoration of Rights and Remedies.

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

     Section 6.10. Rights and Remedies Cumulative.

          Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in Section 2.8, no right or remedy herein conferred upon or
reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy,
and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not
prevent the concurrent assertion or employment of any other appropriate right or remedy.

     Section 6.11. Delay or Omission Not Waiver.

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

     Section 6.12. Control by Holders.

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

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

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

     (c) subject to the provisions of Section 6.1, the Trustee shall have the right to
decline to follow any such direction if the Trustee in good faith shall, by a Responsible
Officer of the Trustee, determine that the proceeding so directed would involve the Trustee
in personal liability.

     Section 6.13. Waiver of Past Defaults.

          Subject to Section 6.2, the Holders of not less than a majority in principal amount of the
outstanding Securities of any Series may on behalf of the Holders of all the Securities of such
Series waive any past Default hereunder with respect to such Series and its consequences, except a
Default in the payment of the principal of or interest on any Security of such Series (provided,
however, that the Holders of a majority in principal amount of the outstanding Securities of any
Series may rescind an acceleration and its consequences, including any related payment default that
resulted from such acceleration). 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 6.14. 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, suffered or omitted by it as Trustee, the filing by any party litigant in such suit
of an undertaking to pay the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made by such party
litigant; but the provisions of this Section shall not apply to any suit instituted by the Company,
to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders,
holding in the aggregate more than 10% in principal amount of the outstanding Securities of any
Series, or to any suit instituted by any Holder for the enforcement of the payment of the principal
of or interest on any Security on or after the Stated Maturity or Stated Maturities expressed in
such Security (or, in the case of redemption, on the redemption date).

ARTICLE VII.

TRUSTEE

     Section 7.1. Duties of Trustee.

     (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise
the rights and powers vested in it by this Indenture and use the same degree of

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care and skill in their exercise as a prudent man would exercise or use under the
circumstances in the conduct of his own affairs.

     (b) Except during the continuance of an Event of Default:

     (i) The Trustee need perform only those duties that are specifically set forth
in this Indenture and no others.

     (ii) 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 Officers’ Certificates or Opinions of Counsel furnished to
the Trustee and conforming to the requirements of this Indenture; however,
in the case of any such Officers’ Certificates or Opinions of Counsel which by any
provisions hereof are specifically required to be furnished to the Trustee, the
Trustee shall examine such Officers’ Certificates and Opinions of Counsel to
determine whether or not they conform to the requirements of this Indenture.

     (c) The Trustee may not be relieved from liability for its own negligent action, its
own negligent failure to act or its own willful misconduct, except that:

     (i) This paragraph does not limit the effect of paragraph (b) of this Section.

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

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

     (d) Every provision of this Indenture that in any way relates to the Trustee is subject
to paragraph (a), (b) and (c) of this Section.

     (e) The Trustee may refuse to perform any duty or exercise any right or power unless it
receives indemnity satisfactory to it against any loss, liability or expense.

     (f) The Trustee shall not be liable for interest on any money received by it except as
the Trustee may agree in writing with the Company. Money held in trust by the Trustee need
not be segregated from other funds except to the extent required by law.

     (g) No provision of this Indenture shall require the Trustee to risk its own funds or
otherwise incur any financial liability in the performance of any of its duties, or

27

 

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 is not
reasonably assured to it.

     (h) The Paying Agent, the Registrar and any authenticating agent shall be entitled to
the protections and immunities as are set forth in paragraphs (a), (b) and (c) of this
Section with respect to the Trustee.

     Section 7.2. Rights of Trustee.

     (a) The Trustee may rely on and shall be protected in acting or refraining from acting
upon any document believed by it to be genuine and to have been signed or presented by the
proper person. The Trustee need not investigate any fact or matter stated in the document.

     (b) Before the Trustee acts or refrains from acting, it may require an Officers’
Certificate or an Opinion of Counsel. The Trustee shall not be liable for any action it
takes or omits to take in good faith in reliance on such Officers’ Certificate or Opinion of
Counsel.

     (c) The Trustee may act through agents and shall not be responsible for the misconduct
or negligence of any agent appointed with due care. No Depository shall be deemed an agent
of the Trustee and the Trustee shall not be responsible for any act or omission by any
Depository.

     (d) The Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or powers.

     (e) The Trustee may consult with counsel 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.

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

     Section 7.3. Individual Rights of Trustee.

          The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or an Affiliate with the same rights it would
have if it were not Trustee. Any Agent may do the same with like rights. The Trustee is also
subject to Sections 7.10 and 7.11.

     Section 7.4. Trustee’s Disclaimer.

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          The Trustee makes no representation as to the validity or adequacy of this Indenture or the
Securities, it shall not be accountable for the Company’s use of the proceeds from the Securities,
and it shall not be responsible for any statement in the Securities other than its authentication.

     Section 7.5. Notice of Defaults.

          If a Default or Event of Default occurs and is continuing with respect to the Securities of
any Series and if it is known to a Responsible Officer of the Trustee, the Trustee shall mail to
each Securityholder of the Securities of that Series and, if any Bearer Securities are outstanding,
publish on one occasion in an Authorized Newspaper, notice of a Default or Event of Default within
90 days after it occurs or, if later, after a Responsible Officer of the Trustee has knowledge of
such Default or Event of Default. Except in the case of a Default or Event of Default in payment
of principal of or interest on any Security of any Series, the Trustee may withhold the notice if
and so long as its corporate trust committee or a committee of its Responsible Officers in good
faith determines that withholding the notice is in the interests of Securityholders of that Series.

     Section 7.6. Reports by Trustee to Holders.

          Within 60 days after May 15 in each year, the Trustee shall transmit by mail to all
Securityholders, as their names and addresses appear on the register kept by the Registrar and, if
any Bearer Securities are outstanding, publish in an Authorized Newspaper, a brief report dated as
of such May 15, in accordance with, and to the extent required under, TIA Section 313.

          A copy of each report at the time of its mailing to Securityholders of any Series shall be
filed with the SEC and each stock exchange on which the Securities of that Series are listed. The
Company shall promptly notify the Trustee when Securities of any Series are listed on any stock
exchange.

     Section 7.7. Compensation and Indemnity.

          The Company shall pay to the Trustee from time to time reasonable compensation for its
services. The Trustee’s compensation shall not be limited by any law on compensation of a trustee
of an express trust. The Company shall reimburse the Trustee upon request for all reasonable
out-of-pocket expenses incurred by it. Such expenses shall include the reasonable compensation and
expenses of the Trustee’s agents and counsel.

          The Company shall indemnify the Trustee (including the cost of defending itself) against any
loss, liability or expense incurred by it except as set forth in the next paragraph in the
performance of its duties under this Indenture as Trustee or Agent. The Trustee shall notify the
Company promptly of any claim for which it may seek indemnity. The Company shall defend the claim
and the Trustee shall cooperate in the defense. The Trustee may have separate counsel and the
Company shall pay the reasonable fees and expenses of such counsel. The Company need not pay for
any settlement made without its consent, which consent shall not be unreasonably withheld. This
indemnification shall apply to officers, directors, employees, shareholders and agents of the
Trustee.

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          The Company need not reimburse any expense or indemnify against any loss or liability incurred
by the Trustee or by any officer, director, employee, shareholder or agent of the Trustee through
negligence or bad faith.

          To secure the Company’s payment obligations in this Section, the Trustee shall have a lien
prior to the Securities of any Series on all money or property held or collected by the Trustee,
except that held in trust to pay principal and interest on particular Securities of that Series.

          When the Trustee incurs expenses or renders services after an Event of Default specified in
Section 6.1(e) or (f) occurs, the expenses and the compensation for the services are intended to
constitute expenses of administration under any Bankruptcy Law.

     Section 7.8. Replacement of Trustee.

          A resignation or removal of the Trustee and appointment of a successor Trustee shall become
effective only upon the successor Trustee’s acceptance of appointment as provided in this Section.

          The Trustee may resign with respect to the Securities of one or more Series by so notifying
the Company. The Holders of a majority in principal amount of the Securities of any Series may
remove the Trustee with respect to that Series by so notifying the Trustee and the Company. The
Company may remove the Trustee with respect to Securities of one or more Series if:

     (a) the Trustee fails to comply with Section 7.10;

     (b) the Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under any Bankruptcy Law;

     (c) a Custodian or public officer takes charge of the Trustee or its property; or

     (d) the Trustee becomes incapable of acting.

          If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Company shall promptly appoint a successor Trustee. Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount of the then
outstanding Securities may appoint a successor Trustee to replace the successor Trustee appointed
by the Company.

          If a successor Trustee with respect to the Securities of any one or more Series does not take
office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee, the
Company or the Holders of at least 10% in principal amount of the Securities of the applicable
Series may petition any court of competent jurisdiction for the appointment of a successor Trustee.

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          If the Trustee with respect to the Securities of any one or more Series fails to comply with
Section 7.10, any Securityholder of the applicable Series may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

          A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all
property held by it as Trustee to the successor Trustee subject to the lien provided for in Section
7.7, the resignation or removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee with respect to each Series of
Securities for which it is acting as Trustee under this Indenture. A successor Trustee shall mail
a notice of its succession to each Securityholder of each such Series and, if any Bearer Securities
are outstanding, publish such notice on one occasion in an Authorized Newspaper. Notwithstanding
replacement of the Trustee pursuant to this Section 7.8, the Company’s obligations under Section
7.7 hereof shall continue for the benefit of the retiring trustee with respect to expenses and
liabilities incurred by it prior to such replacement.

     Section 7.9. Successor Trustee by Merger, Etc.

          If the Trustee consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another corporation, the successor corporation without any
further act shall be the successor Trustee.

     Section 7.10. Eligibility; Disqualification.

          This Indenture shall always have a Trustee who satisfies the requirements of TIA Section
310(a)(1), (2) and (5). The Trustee shall always have a combined capital and surplus of at least
$25,000,000 as set forth in its most recent published annual report of condition. The Trustee
shall comply with TIA Section 310(b).

     Section 7.11. Preferential Collection of Claims Against Company.

          The Trustee is subject to TIA Section 311(a), excluding any creditor relationship listed in
TIA Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA Section
311(a) to the extent indicated.

ARTICLE VIII.

SATISFACTION AND DISCHARGE; DEFEASANCE

     Section 8.1. Satisfaction and Discharge of Indenture.

          This Indenture shall upon Company Order cease to be of further effect (except as hereinafter
provided in this Section 8.1), and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture, when

     (a) either

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     (i) all Securities theretofore authenticated and delivered (other than
Securities that have been destroyed, lost or stolen and that have been replaced or
paid) have been delivered to the Trustee for cancellation; or

     (ii) all such Securities not theretofore delivered to the Trustee for
cancellation

     (1) have become due and payable, or

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

     (3) 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, or

     (4) are deemed paid and discharged pursuant to Section 8.3, as
applicable;

and the Company, in the case of (1), (2) or (3) above, has deposited or caused to be deposited with
the Trustee as trust funds in trust an amount sufficient for the purpose of paying and discharging
the entire indebtedness on such Securities not theretofore delivered to the Trustee for
cancellation, for principal and interest to the date of such deposit (in the case of Securities
which have become due and payable on or prior to the date of such deposit) or to the Stated
Maturity or redemption date, as the case may be;

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

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

          Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 7.7, and, if money shall have been deposited with the Trustee
pursuant to clause (a) of this Section, the provisions of Sections 2.4, 2.7, 2.8, 8.1, 8.2 and 8.5
shall survive.

     Section 8.2. Application of Trust Funds; Indemnification.

     (a) Subject to the provisions of Section 8.5, all money deposited with the Trustee
pursuant to Section 8.1, all money and U.S. Government Obligations or Foreign Government
Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4 and all money received
by the Trustee in respect of U.S. Government Obligations or Foreign Government Obligations
deposited with the Trustee pursuant to Section 8.3 or 8.4, shall be held in trust and
applied by it, in accordance with the provisions of the Securities and this Indenture, to
the payment, either directly or through any Paying Agent (including the

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Company acting as its own Paying Agent) as the Trustee may determine, to the persons
entitled thereto, of the principal and interest for whose payment such money has been
deposited with or received by the Trustee or to make mandatory sinking fund payments or
analogous payments as contemplated by Sections 8.3 or 8.4.

     (b) The Company shall pay and shall indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against U.S. Government Obligations or Foreign Government
Obligations deposited pursuant to Sections 8.3 or 8.4 or the interest and principal received
in respect of such obligations other than any payable by or on behalf of Holders.

     (c) The Trustee shall deliver or pay to the Company from time to time upon Company
Request any U.S. Government Obligations or Foreign Government Obligations or money held by
it as provided in Sections 8.3 or 8.4 which, in the opinion of a nationally recognized firm
of independent certified public accountants expressed in a written certification thereof
delivered to the Trustee, are then in excess of the amount thereof which then would have
been required to be deposited for the purpose for which such U.S. Government Obligations or
Foreign Government Obligations or money were deposited or received. This provision shall
not authorize the sale by the Trustee of any U.S. Government Obligations or Foreign
Government Obligations held under this Indenture.

     Section 8.3. Legal Defeasance of Securities of any Series.

          Unless this Section 8.3 is otherwise specified pursuant to Section 2.2.21 to be inapplicable
to Securities of any Series, the Company shall be deemed to have paid and discharged the entire
indebtedness on all the outstanding Securities of such Series on the 91st day after the date of the
deposit referred to in subparagraph (d) hereof, and the provisions of this Indenture, as it relates
to such outstanding Securities of such Series, shall no longer be in effect (and the Trustee, at
the expense of the Company, shall, at Company Request, execute proper instruments acknowledging the
same), except as to:

     (a) the rights of Holders of Securities of such Series to receive, from the trust funds
described in subparagraph (d) hereof, (i) payment of the principal of and each installment
of principal of and interest on the outstanding Securities of such Series on the Stated
Maturity of such principal or installment of principal or interest and (ii) the benefit of
any mandatory sinking fund payments applicable to the Securities of such Series on the day
on which such payments are due and payable in accordance with the terms of this Indenture
and the Securities of such Series;

     (b) the provisions of Sections 2.4, 2.7, 2.8, 8.2, 8.3 and 8.5; and

     (c) the rights, powers, trust and immunities of the Trustee hereunder;

provided that, the following conditions shall have been satisfied:

     (d) the Company shall have deposited or caused to be deposited irrevocably with the
Trustee as trust funds in trust for the purpose of making the following payments,

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specifically pledged as security for and dedicated solely to the benefit of the Holders
of such Securities (i) in the case of Securities of such Series denominated in Dollars, cash
in Dollars (or such other money or currencies as shall then be legal tender in the United
States) and/or U.S. Government Obligations, or (ii) in the case of Securities of such Series
denominated in a Foreign Currency (other than a composite currency), money and/or Foreign
Government Obligations, which through the payment of interest and principal in respect
thereof, in accordance with their terms, will provide (and without reinvestment and assuming
no tax liability will be imposed on such Trustee), not later than one day before the due
date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, to pay and discharge each installment of principal
(including mandatory sinking fund or analogous payments) of and interest, if any, on all the
Securities of such Series on the dates such installments of interest or principal are due;

     (e) such deposit will not result in a breach or violation of, or constitute a default
under, this Indenture or any other agreement or instrument to which the Company is a party
or by which it is bound;

     (f) no Default or Event of Default with respect to the Securities of such Series shall
have occurred and be continuing on the date of such deposit or during the period ending on
the 91st day after such date;

     (g) the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel to the effect that (i) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling, or (ii) since the date of execution of
this Indenture, there has been a change in the applicable Federal income tax law, in either
case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the
Holders of the Securities of such Series will not recognize income, gain or loss for Federal
income tax purposes as a result of such deposit, defeasance and discharge and will be
subject to Federal income tax on the same amount and in the same manner and at the same
times as would have been the case if such deposit, defeasance and discharge had not
occurred;

     (h) the Company shall have delivered to the Trustee an Officers’ Certificate stating
that the deposit was not made by the Company with the intent of preferring the Holders of
the Securities of such Series over any other creditors of the company or with the intent of
defeating, hindering, delaying or defrauding any other creditors of the Company;

     (i) such deposit shall not result in the trust arising from such deposit constituting
an investment company (as defined in the Investment Company Act of 1940, as amended), or
such trust shall be qualified under such Act or exempt from regulation thereunder; and

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     (j) the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent provided for relating to the
defeasance contemplated by this Section have been complied with.

     Section 8.4. Covenant Defeasance.

          Unless this Section 8.4 is otherwise specified pursuant to Section 2.2.21 to be inapplicable
to Securities of any Series, on and after the 91st day after the date of the deposit referred to in
subparagraph (a) hereof, the Company may omit to comply with any term, provision or condition set
forth under Sections 4.2, 4.3, 4.4, 4.5, 4.6, and 5.1 as well as any additional covenants contained
in a supplemental indenture hereto for a particular Series of Securities or a Board Resolution or
an Officers’ Certificate delivered pursuant to Section 2.2.21 (and the failure to comply with any
such covenants shall not constitute a Default or Event of Default under Section 6.1) and the
occurrence of any event described in clause (e) of Section 6.1 shall not constitute a Default or
Event of Default hereunder, with respect to the Securities of such Series, provided that the
following conditions shall have been satisfied:

     (a) With reference to this Section 8.4, the Company has deposited or caused to be
irrevocably deposited (except as provided in Section 8.2(c)) with the Trustee as trust funds
in trust, specifically pledged as security for, and dedicated solely to, the benefit of the
Holders of such Securities (i) in the case of Securities of such Series denominated in
Dollars, cash in Dollars (or such other money or currencies as shall then be legal tender in
the United States) and/or U.S. Government Obligations, or (ii) in the case of Securities of
such Series denominated in a Foreign Currency (other than a composite currency), money
and/or Foreign Government Obligations, which through the payment of interest and principal
in respect thereof, in accordance with their terms, will provide (and without reinvestment
and assuming no tax liability will be imposed on such Trustee), not later than one day
before the due date of any payment of money, an amount in cash, sufficient, in the opinion
of a nationally recognized firm of independent certified public accountants expressed in a
written certification thereof delivered to the Trustee, to pay principal and interest, if
any, on and any mandatory sinking fund in respect of the Securities of such Series on the
dates such installments of interest or principal are due;

     (b) Such deposit will not result in a breach or violation of, or constitute a default
under, this Indenture or any other agreement or instrument to which the Company is a party
or by which it is bound;

     (c) No Default or Event of Default with respect to the Securities of such Series shall
have occurred and be continuing on the date of such deposit or during the period ending on
the 91st day after such date;

     (d) the Company shall have delivered to the Trustee an Opinion of Counsel confirming
that Holders of the Securities of such Series will not recognize income, gain or loss for
federal income tax purposes as a result of such deposit and 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 deposit and defeasance had not occurred;

35

 

     (e) the Company shall have delivered to the Trustee an Officers’ Certificate stating
the deposit was not made by the Company with the intent of preferring the Holders of the
Securities of such Series over any other creditors of the Company or with the intent of
defeating, hindering, delaying or defrauding any other creditors of the Company; and

     (f) The Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent herein provided for relating
to the defeasance contemplated by this Section have been complied with.

     Section 8.5. Repayment to Company.

          The Trustee and the Paying Agent shall pay to the Company upon request any money held by them
for the payment of principal and interest that remains unclaimed for two years. After that,
Securityholders entitled to the money must look to the Company for payment as general creditors
unless an applicable abandoned property law designates another person.

     Section 8.6. Reinstatement.

          If the Trustee or Paying Agent is unable to apply any money or U.S. Government Obligations in
accordance with Sections 8.1, 8.3 or 8.4, as the case may be, by reason of any legal proceeding or
by reason of any order or judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the Company’s obligations under this Indenture and the
Securities shall be revived and reinstated as though no deposit had occurred pursuant to Section
8.1, 8.3 or 8.4, as the case may be, until such time as the Trustee or Paying Agent is permitted to
apply all such money or U.S. Government Obligations in accordance with Section 8.1, 8.3 or 8.4, as
the case may be; provided, however, that if the Company makes any payment of
principal of, premium, if any, or interest on any Securities because of reinstatement of its
obligations, the Company shall be subrogated to the rights of the holders of such Securities to
receive such payment from the money or U.S. Government Obligations held by the Trustee or Paying
Agent.

ARTICLE IX.

AMENDMENTS AND WAIVERS

     Section 9.1. Without Consent of Holders.

          The Company and the Trustee may amend or supplement this Indenture or the Securities of one or
more Series without the consent of any Securityholder:

     (a) to cure any ambiguity, defect or inconsistency;

     (b) to provide for uncertificated securities in addition to or in place of
certificated securities;

     (c) to provide for the assumption of our obligations to holders of any debt
security in the case of a merger or consolidation or sale of all or substantially all of our
assets;

36

 

     (d) to make any change that would provide any additional rights or benefits
to the holders of securities or that does not adversely affect the legal rights under the
Indenture of any such holder;

     (e) to comply with requirements of the SEC in order to effect or maintain the
qualification of an indenture under the Trust Indenture Act;

     (f) to conform the text of the indentures to any provision of the Description
of Debt Securities to the extent that such provision in the Description of Debt Securities
was intended to be a verbatim recitation of a provision of the indentures;

     (g) to provide for the issuance of additional securities in accordance with
the limitations set forth in the indenture as of the date of the indenture;

     (h) to allow any guarantor to execute a supplemental indenture with respect
to debt securities and to release guarantors in accordance with the terms of the indenture;
or

     (i) to add additional obligors under the indenture and the securities.

     The consent of holders is not necessary under the indentures to approve the particular form of
any proposed amendment. It is sufficient if such consent approves the substance of the proposed
amendment.

     Section 9.2. With Consent of Holders.

          The Company and the Trustee may enter into a supplemental indenture with the written consent
of the Holders of at least a majority in principal amount of the outstanding Securities of each
Series affected by such supplemental indenture (including consents obtained in connection with a
tender offer or exchange offer for the Securities of such Series), for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Indenture or
of any supplemental indenture or of modifying in any manner the rights of the Securityholders of
each such Series. Except as provided in Section 6.13, the Holders of at least a majority in
principal amount of the outstanding Securities of each Series affected by such waiver by notice to
the Trustee (including consents obtained in connection with a tender offer or exchange offer for
the Securities of such Series) may waive compliance by the Company with any provision of this
Indenture or the Securities with respect to such Series.

          It shall not be necessary for the consent of the Holders of Securities under this Section 9.2
to approve the particular form of any proposed supplemental indenture or waiver, but it shall be
sufficient if such consent approves the substance thereof. After a supplemental indenture or
waiver under this section becomes effective, the Company shall mail to the Holders of Securities
affected thereby and, if any Bearer Securities affected thereby are outstanding, publish on one
occasion in an Authorized Newspaper, a notice briefly describing the supplemental indenture or
waiver. Any failure by the Company to mail or publish such notice, or any defect therein, shall
not, however, in any way impair or affect the validity of any such supplemental indenture or
waiver.

     Section 9.3. Limitations.

          Without the consent of each Securityholder affected, an amendment or waiver may not:

37

 

     (a) change the amount of Securities whose Holders must consent to an amendment,
supplement or waiver;

     (b) reduce the rate of or extend the time for payment of interest (including default
interest) on any Security;

     (c) reduce the principal or change the Stated Maturity of any Security or reduce the
amount of, or postpone the date fixed for, the payment of any sinking fund or analogous
obligation;

     (d) reduce the principal amount of Discount Securities payable upon acceleration of the
maturity thereof;

     (e) waive a Default or Event of Default in the payment of the principal of or interest,
if any, on any Security (except a rescission of acceleration of the Securities of any Series
by the Holders of at least a majority in principal amount of the outstanding Securities of
such Series and a waiver of the payment default that resulted from such acceleration);

     (f) make the principal of or interest, if any, on any Security payable in any currency
other than that stated in the Security;

     (g) make any change in Sections 6.8, 6.13, 9.3 (this sentence), 10.15 or 10.16; or

     (h) waive a redemption payment with respect to any Security or change any of the
provisions with respect to the redemption of any Securities.

     Section 9.4. Compliance with Trust Indenture Act.

          Every amendment to this Indenture or the Securities of one or more Series shall be set forth
in a supplemental indenture hereto that complies with the TIA as then in effect.

     Section 9.5. Revocation and Effect of Consents.

          Until an amendment or waiver becomes effective, a consent to it by a Holder of a Security is a
continuing consent by the Holder and every subsequent Holder of a Security or portion of a Security
that evidences the same debt as the consenting Holder’s Security, even if notation of the consent
is not made on any Security. However, any such Holder or subsequent Holder may revoke the consent
as to his Security or portion of a Security if the Trustee receives the notice of revocation before
the date the amendment or waiver becomes effective.

          Any amendment or waiver once effective shall bind every Securityholder of each Series affected
by such amendment or waiver unless it is of the type described in any of clauses (a) through (g) of
Section 9.3. In that case, the amendment or waiver shall bind each Holder of a Security who has
consented to it and every subsequent Holder of a Security or portion of a Security that evidences
the same debt as the consenting Holder’s Security.

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     Section 9.6. Notation on or Exchange of Securities.

          The Trustee may place an appropriate notation about an amendment or waiver on any Security of
any Series thereafter authenticated. The Company in exchange for Securities of that Series may
issue and the Trustee shall authenticate upon request new Securities of that Series that reflect
the amendment or waiver.

     Section 9.7. Trustee Protected.

          In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by this Indenture, the
Trustee shall be entitled to receive, and (subject to Section 7.1) shall be fully protected in
relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee shall sign all supplemental indentures,
except that the Trustee need not sign any supplemental indenture that adversely affects its rights.

ARTICLE X.

MISCELLANEOUS

     Section 10.1. Trust Indenture Act Controls.

          If any provision of this Indenture limits, qualifies, or conflicts with another provision
which is required or deemed to be included in this Indenture by the TIA, such required or deemed
provision shall control.

     Section 10.2. Notices.

          Any notice or communication by the Company or the Trustee to the other is duly given if in
writing and delivered in person or mailed by first-class mail:

	 	 	 	 	 	 	 
	if to the Company:	 	 
	 
	 	 	 	 	 	 
	 	 	InterMune, Inc.
	 	 
	 	 	3280 Bayshore Boulevard	 	 
	 	 	Brisbane, CA 94005	 	 
	 	 	Attention: General Counsel	 	 
	 
	 	 	 	 	 	 
	if to the Trustee:	 	 
	 
	 	 	 	 	 	 
	 	 	[Name of Trustee]	 	 
	 	 	[Address]	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Attention:	 	 	 	 
	 

	 	 	 	 

	 	 

          The Company or the Trustee by notice to the other may designate additional or different
addresses for subsequent notices or communications.

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          Any notice or communication to a Securityholder shall be mailed by first-class mail to his
address shown on the register kept by the Registrar and, if any Bearer Securities are outstanding,
published in an Authorized Newspaper. Failure to mail a notice or communication to a
Securityholder of any Series or any defect in it shall not affect its sufficiency with respect to
other Securityholders of that or any other Series.

          If a notice or communication is mailed or published in the manner provided above, within the
time prescribed, it is duly given, whether or not the Securityholder receives it.

          If the Company mails a notice or communication to Securityholders, it shall mail a copy to the
Trustee and each Agent at the same time.

     Section 10.3. Communication by Holders with Other Holders.

          Securityholders of any Series may communicate pursuant to TIA Section 312(b) with other
Securityholders of that Series or any other Series with respect to their rights under this
Indenture or the Securities of that Series or all Series. The Company, the Trustee, the Registrar
and anyone else shall have the protection of TIA Section 312(c).

     Section 10.4. Certificate and Opinion as to Conditions Precedent.

          Upon any request or application by the Company to the Trustee to take any action under this
Indenture, the Company shall furnish to the Trustee:

     (a) an Officers’ Certificate stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to the proposed action
have been complied with; and

     (b) an Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent have been complied with.

     Section 10.5. Statements Required in Certificate or Opinion.

          Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (other than a certificate provided pursuant to TIA Section 314(a)(4)) shall
comply with the provisions of TIA Section 314(e) and shall include:

     (a) a statement that the person making such certificate or opinion has read such
covenant or condition;

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

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

40

 

     (d) a statement as to whether or not, in the opinion of such person, such condition or
covenant has been complied with.

     Section 10.6. Rules by Trustee and Agents.

          The Trustee may make reasonable rules for action by or a meeting of Securityholders of one or
more Series. Any Agent may make reasonable rules and set reasonable requirements for its
functions.

     Section 10.7. Legal Holidays.

          Unless otherwise provided by Board Resolution, Officers’ Certificate or supplemental indenture
for a particular Series, a “Legal Holiday” is any day that is not a Business Day. If a payment
date is a Legal Holiday at a place of payment, payment may be made at that place on the next
succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening
period.

     Section 10.8. No Recourse Against Others.

          A director, officer, employee or stockholder, as such, of the Company shall not have any
liability for any obligations of the Company under the Securities or the Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. Each Securityholder by
accepting a Security waives and releases all such liability. The waiver and release are part of
the consideration for the issue of the Securities.

     Section 10.9. Counterparts.

     This Indenture may be executed in any number of counterparts and by the parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement.

     Section 10.10. Governing Laws.

          THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT REGARD TO THE CONFLICT OF
LAWS PROVISIONS THEREOF.

     Section 10.11. No Adverse Interpretation of Other Agreements.

          This Indenture may not be used to interpret another indenture, loan or debt agreement of the
Company or a Subsidiary. Any such indenture, loan or debt agreement may not be used to interpret
this Indenture.

     Section 10.12. Successors.

          All agreements of the Company in this Indenture and the Securities shall bind its successor.
All agreements of the Trustee in this Indenture shall bind its successor.

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     Section 10.13. Severability.

          In case any provision in this Indenture or in the Securities 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 10.14. Table of Contents, Headings, Etc.

          The Table of Contents, Cross Reference Table, and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not to be considered a
part hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

     Section 10.15. Securities in a Foreign Currency or in ECU.

          Unless otherwise specified in a Board Resolution, a supplemental indenture hereto or an
Officers’ Certificate delivered pursuant to Section 2.2 of this Indenture with respect to a
particular Series of Securities, whenever for purposes of this Indenture any action may be taken by
the Holders of a specified percentage in aggregate principal amount of Securities of all Series or
all Series affected by a particular action at the time outstanding and, at such time, there are
outstanding Securities of any Series which are denominated in a coin or currency other than Dollars
(including ECUs), then the principal amount of Securities of such Series which shall be deemed to
be outstanding for the purpose of taking such action shall be that amount of Dollars that could be
obtained for such amount at the Market Exchange Rate at such time. For purposes of this Section
10.15, “Market Exchange Rate” shall mean the noon Dollar buying rate in New York City for cable
transfers of that currency as published by the Federal Reserve Bank of New York; provided,
however, in the case of ECUs, Market Exchange Rate shall mean the rate of exchange
determined by the Commission of the European Union (or any successor thereto) as published in the
Official Journal of the European Union (such publication or any successor publication, the
“Journal”). If such Market Exchange Rate is not available for any reason with respect to such
currency, the Trustee shall use, in its sole discretion and without liability on its part, such
quotation of the Federal Reserve Bank of New York or, in the case of ECUs, the rate of exchange as
published in the Journal, as of the most recent available date, or quotations or, in the case of
ECUs, rates of exchange from one or more major banks in The City of New York or in the country of
issue of the currency in question or, in the case of ECUs, in Luxembourg or such other quotations
or, in the case of ECUs, rates of exchange as the Trustee, upon consultation with the Company,
shall deem appropriate. The provisions of this paragraph shall apply in determining the equivalent
principal amount in respect of Securities of a Series denominated in currency other than Dollars in
connection with any action taken by Holders of Securities pursuant to the terms of this Indenture.

          All decisions and determinations of the Trustee regarding the Market Exchange Rate or any
alternative determination provided for in the preceding paragraph shall be in its sole discretion
and shall, in the absence of manifest error, be conclusive to the extent permitted by law for all
purposes and irrevocably binding upon the Company and all Holders.

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     Section 10.16. 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 interest or other amount on the Securities of any Series (the
“Required Currency”) into a currency in which a judgment will be rendered (the “Judgment
Currency”), the rate of exchange used shall be the rate at which in accordance with normal banking
procedures the Trustee could purchase in The City of New York the Required Currency with the
Judgment Currency on the day on which final unappealable judgment is entered, unless such day is
not a New York Banking Day, then, the rate of exchange used shall be the rate at which in
accordance with normal banking procedures the Trustee could purchase in The City of New York the
Required Currency with the Judgment Currency on the New York Banking Day preceding the day on which
final unappealable judgment is entered and (b) its obligations under this Indenture to make
payments in the Required Currency (i) shall not be discharged or satisfied by any tender, any
recovery pursuant to any judgment (whether or not entered in accordance with subsection (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 on which banking institutions
are authorized or required by law, regulation or executive order to close.

ARTICLE XI.

SINKING FUNDS

     Section 11.1. Applicability of Article.

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

          The minimum amount of any sinking fund payment provided for by the terms of the Securities of
any Series is herein referred to as a “mandatory sinking fund payment” and any other 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 11.2. Each sinking
fund payment shall be applied to the redemption of Securities of any Series as provided for by the
terms of the Securities of such Series.

     Section 11.2. 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

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(1) deliver outstanding Securities of such Series to which such sinking fund payment is
applicable (other than any of such Securities previously called for mandatory sinking fund
redemption) and (2) apply as credit Securities of such Series to which such sinking fund payment is
applicable and which have been redeemed either at the election of the Company pursuant to the terms
of such Series of Securities (except pursuant to any mandatory sinking fund) or through the
application of permitted optional sinking fund payments or other optional redemptions pursuant to
the terms of such Securities, provided that such Securities have not been previously so credited.
Such Securities shall be received by the Trustee, together with an Officers’ Certificate with
respect thereto, not later than 15 days prior to the date on which the Trustee begins the process
of selecting Securities for redemption, and shall be credited for such purpose by the Trustee at
the 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 in lieu of cash payments pursuant to this Section 11.2, the principal
amount of Securities of such Series to be redeemed in order to exhaust the aforesaid cash payment
shall be less than $100,000, the Trustee need not call Securities of such Series for redemption,
except upon receipt of a Company Order that such action be taken, 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 from time to time
upon receipt of a Company Order 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
required to be released to the Company.

     Section 11.3. Redemption of Securities for Sinking Fund.

          Not less than 45 days (unless otherwise indicated in the Board Resolution, supplemental
indenture hereto or Officers’ Certificate in respect of a particular Series of Securities) prior to
each sinking fund payment date for any Series of Securities, the Company will deliver to the
Trustee an Officers’ Certificate specifying the amount of the next ensuing mandatory sinking fund
payment for that Series pursuant to the terms of that Series, the portion thereof, if any, which is
to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by
delivering and crediting of Securities of that Series pursuant to Section 11.2, and the optional
amount, if any, to be added in cash to the next ensuing mandatory sinking fund payment, and the
Company shall thereupon be obligated to pay the amount therein specified. Not less than 30 days
(unless otherwise indicated in the Board Resolution, Officers’ Certificate or supplemental
indenture in respect of a particular Series of Securities) 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 3.2 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 3.3. Such notice
having been duly given, the redemption of such Securities shall be made upon the terms and in the
manner stated in Sections 3.4, 3.5 and 3.6.

44

 

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

	 	 	 	 	 
	 	 	INTERMUNE, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Its:
	 
	 	 	 	 
	 	 	[Name of Trustee]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Its:

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