Document:

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EXHIBIT 4.A

 

 

EL PASO ENERGY CORPORATION

TO

THE CHASE MANHATTAN BANK

TRUSTEE

 

INDENTURE

DATED AS OF MAY 10, 1999

 

SENIOR DEBT SECURITIES

 

 

 

 

 

EL PASO ENERGY CORPORATION

CERTAIN SECTIONS OF THIS INDENTURE RELATING TO

SECTIONS 310 THROUGH 318, INCLUSIVE, OF THE

TRUST INDENTURE ACT OF 1939:

	 	 	 	 	 	 	 
	Trust Indenture			 	 	 
	Act Section			 	Indenture Section	 
	Section 310		(a) (1)	 	 	6.9	 
	 		(a) (2) 	 	 	6.9	 
	 		(a) (3) 	 	Not Applicable
	 		(a) (4) 	 	Not Applicable
	 		(b)  	 	 	6.8; 6.10	 
	Section 311		(a) 	 	 	6.13	 
	 		(b)  	 	 	6.13	 
	Section 312		(a) 	 	 	7.1; 7.2	 
	 		(b)  	 	 	7.2	 
	 		(c)  	 	 	7.2	 
	Section 313		(a) 	 	 	7.3	 
	 		(b)  	 	 	7.3	 
	 		(c)  	 	 	7.3	 
	 		(d)  	 	 	7.3	 
	Section 314		(a) 	 	 	7.4	 
	 		(a) (4) 	 	 	1.4; 10.4	 
	 		(b)  	 	Not Applicable
	 		(c) (1) 	 	 	1.1	 
	 		(c) (2) 	 	 	1.1; 1.2	 
	 		(c) (3) 	 	Not Applicable
	 		(d)  	 	Not Applicable
	 		(e)  	 	 	1.2	 
	Section 315		(a) 	 	 	6.1	 
	 		(b)  	 	 	6.2	 
	 		(c)  	 	 	6.1	 
	 		(d)  	 	 	6.1	 
	 		(e)  	 	 	5.14	 
	Section 316		(a) 	 	 	1.1	 
	 		(a) (1) (A) 	 	 	5.2; 5.12	 
	 		(a) (1) (B) 	 	 	5.13	 
	 		(a) (2) 	 	Not Applicable
	 		(b)  	 	 	5.8	 
	 		(c)  	 	 	1.4	 
	 		(Section) 317 (a) (1)  	 	 	5.3	 

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	Trust Indenture			 	 	 	 
	Act Section			 	Indenture Section	 
	 		(a) (2) 	 	 	5.4	 
	 		(b)  	 	 	10.3	 
	Section 318		(a) 	 	 	1.7	 

 

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

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TABLE OF CONTENTS

	 	 	 	 	 

	PARTIES
	 	 	1	 
	 
	 	 	 	 
	RECITALS OF THE COMPANY
	 	 	1	 
	 
	 	 	 	 
	ARTICLE ONE
	 	 	 	 
	 
	 	 	 	 
	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 	 	1	 
	SECTION 101. Definitions 
	 	 	1	 
	SECTION 102. Compliance Certificates and Opinions
	 	 	9	 
	SECTION 103. Form of Documents Delivered to Trustee 
	 	 	10	 
	SECTION 104. Acts of Holders; Record Dates
	 	 	10	 
	SECTION 105. Notices, Etc., to Trustee and Company
	 	 	11	 
	SECTION 106. Notice to Holders; Waiver
	 	 	12	 
	SECTION 107. Conflict with Trust Indenture Act
	 	 	12	 
	SECTION 108. Effect of Headings and Table of Contents
	 	 	12	 
	SECTION 109. Successors and Assigns 
	 	 	13	 
	SECTION 110. Separability Clause 
	 	 	13	 
	SECTION 111. Benefits of Indenture
	 	 	13	 
	SECTION 112. Governing Law
	 	 	13	 
	SECTION 113. Legal Holidays 
	 	 	13	 
	SECTION 114. Language of Notices, Etc.
	 	 	13	 
	SECTION 115. Incorporators, Stockholders, Officers and Directors of
the Company Exempt from Individual Liability
	 	 	14	 
	 
	 	 	 	 
	ARTICLE TWO
	 	 	 	 
	 
	 	 	 	 
	SECURITY FORMS
	 	 	14	 
	SECTION 201. Forms Generally 
	 	 	14	 
	SECTION 202. Form of Face of Security
	 	 	14	 
	SECTION 203. Form of Reverse of Security 
	 	 	17	 
	SECTION 204. Global Securities
	 	 	22	 
	SECTION 205. Form of Trustee’s Certificate of Authentication 
	 	 	23	 
	 
	 	 	 	 
	ARTICLE THREE
	 	 	 	 
	 
	 	 	 	 
	THE SECURITIES
	 	 	23	 
	SECTION 301. Amount Unlimited; Issuable in Series
	 	 	23	 
	SECTION 302. Denominations
	 	 	26	 
	SECTION 303. Execution, Authentication, Delivery and Dating 
	 	 	26	 
	SECTION 304. Temporary Securities
	 	 	28	 

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	SECTION 305. Registration, Registration of Transfer and Exchange 
	 	 	28	 
	SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities
	 	 	30	 
	SECTION 307. Payment of Interest; Interest Rights Preserved 
	 	 	31	 
	SECTION 308. Persons Deemed Owners
	 	 	32	 
	SECTION 309. Cancellation
	 	 	32	 
	SECTION 310. Computation of Interest 
	 	 	33	 
	SECTION 311. CUSIP Numbers
	 	 	33	 
	 
	 	 	 	 
	ARTICLE FOUR
	 	 	 	 
	 
	 	 	 	 
	SATISFACTION AND DISCHARGE
	 	 	33	 
	SECTION 401. Satisfaction and Discharge of Indenture 
	 	 	33	 
	SECTION 402. Application of Trust Money 
	 	 	34	 
	 
	 	 	 	 
	ARTICLE FIVE
	 	 	 	 
	 
	 	 	 	 
	REMEDIES 
	 	 	35	 
	SECTION 501. Events of Default
	 	 	35	 
	SECTION 502. Acceleration of Maturity; Rescission and Annulment 
	 	 	36	 
	SECTION 503. Collection of Indebtedness and Suits for Enforcement by
Trustee 
	 	 	37	 
	SECTION 504. Trustee May File Proofs of Claim
	 	 	37	 
	SECTION 505. Trustee May Enforce Claims Without Possession of
Securities 
	 	 	38	 
	SECTION 506. Application of Money Collected 
	 	 	38	 
	SECTION 507. Limitation on Suits 
	 	 	38	 
	SECTION 508. Unconditional Right of Holders to Receive Principal,
Premium and Interest
	 	 	39	 
	SECTION 509. Restoration of Rights and Remedies 
	 	 	39	 
	SECTION 510. Rights and Remedies Cumulative 
	 	 	40	 
	SECTION 511. Delay or Omission Not Waiver
	 	 	40	 
	SECTION 512. Control by Holders 
	 	 	40	 
	SECTION 513. Waiver of Past Defaults 
	 	 	40	 
	SECTION 514. Undertaking for Costs
	 	 	41	 
	SECTION 515. Waiver of Usury, Stay or Extension Laws 
	 	 	41	 
	 
	 	 	 	 
	ARTICLE SIX
	 	 	 	 
	 
	 	 	 	 
	THE TRUSTEE
	 	 	41	 
	SECTION 601. Certain Duties and Responsibilities 
	 	 	41	 
	SECTION 602. Notice of Defaults 
	 	 	42	 
	SECTION 603. Certain Rights of Trustee
	 	 	42	 
	SECTION 604. Not Responsible for Recitals or Issuance of Securities
	 	 	43	 
	SECTION 605. May Hold Securities 
	 	 	43	 
	SECTION 606. Money Held in Trust 
	 	 	43	 

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	SECTION 607. Compensation and Reimbursement 
	 	 	44	 
	SECTION 608. Disqualification; Conflicting Interests 
	 	 	44	 
	SECTION 609. Corporate Trustee Required; Eligibility 
	 	 	45	 
	SECTION 610. Resignation and Removal; Appointment of Successor
	 	 	45	 
	SECTION 611. Acceptance of Appointment by Successor 
	 	 	46	 
	SECTION 612. Merger, Conversion, Consolidation or Succession to
Business
	 	 	47	 
	SECTION 613. Preferential Collection of Claims Against Company
	 	 	48	 
	SECTION 614. Appointment of Authenticating Agent 
	 	 	48	 
	 
	 	 	 	 
	ARTICLE SEVEN
	 	 	 	 
	 
	 	 	 	 
	HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
	 	 	49	 
	SECTION 701. Company to Furnish Trustee Names and Addresses of
Holders 
	 	 	49	 
	SECTION 702. Preservation of Information; Communications to Holders 
	 	 	50	 
	SECTION 703. Reports by Trustee 
	 	 	50	 
	SECTION 704. Reports by Company 
	 	 	51	 
	 
	 	 	 	 
	ARTICLE EIGHT
	 	 	 	 
	 
	 	 	 	 
	CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE 
	 	 	51	 
	SECTION 801. Company May Consolidate, Etc., Only on Certain Terms
	 	 	51	 
	SECTION 802. Successor Substituted
	 	 	52	 
	 
	 	 	 	 
	ARTICLE NINE
	 	 	 	 
	 
	 	 	 	 
	SUPPLEMENTAL INDENTURES
	 	 	52	 
	SECTION 901. Supplemental Indentures Without Consent of Holders 
	 	 	52	 
	SECTION 902. Supplemental Indentures with Consent of Holders 
	 	 	53	 
	SECTION 903. Execution of Supplemental Indentures
	 	 	54	 
	SECTION 904. Effect of Supplemental Indentures
	 	 	54	 
	SECTION 905. Conformity with Trust Indenture Act 
	 	 	55	 
	SECTION 906. Reference in Securities to Supplemental Indentures 
	 	 	55	 
	 
	 	 	 	 
	ARTICLE TEN
	 	 	 	 
	 
	 	 	 	 
	COVENANTS 
	 	 	55	 
	SECTION 1001. Payment of Principal, Premium and Interest 
	 	 	55	 
	SECTION 1002. Maintenance of Office or Agency 
	 	 	55	 
	SECTION 1003. Money for Securities Payments to Be Held in Trust
	 	 	56	 
	SECTION 1004. Statement by Officers as to Default 
	 	 	57	 
	SECTION 1005. Existence
	 	 	57	 
	SECTION 1006. Limitations on Liens
	 	 	57	 
	SECTION 1007. Restriction of Sale-Leaseback Transaction
	 	 	59	 

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	SECTION 1008. Waiver of Certain Covenants 
	 	 	60	 
	 
	 	 	 	 
	ARTICLE ELEVEN
	 	 	 	 
	 
	 	 	 	 
	REDEMPTION OF SECURITIES 
	 	 	61	 
	SECTION 1101. Applicability of Article
	 	 	61	 
	SECTION 1102. Election to Redeem; Notice to Trustee
	 	 	61	 
	SECTION 1103. Selection by Trustee of Securities to be Redeemed
	 	 	61	 
	SECTION 1104. Notice of Redemption
	 	 	62	 
	SECTION 1105. Deposit of Redemption Price 
	 	 	62	 
	SECTION 1106. Securities Payable on Redemption Date
	 	 	62	 
	SECTION 1107. Securities Redeemed in Part 
	 	 	63	 
	 
	 	 	 	 
	ARTICLE TWELVE
	 	 	 	 
	 
	 	 	 	 
	SINKING FUNDS 
	 	 	63	 
	SECTION 1201. Applicability of Article
	 	 	63	 
	SECTION 1202. Satisfaction of Sinking Fund Payments with Securities
	 	 	64	 
	SECTION 1203. Redemption of Securities for Sinking Fund
	 	 	64	 
	 
	 	 	 	 
	ARTICLE THIRTEEN
	 	 	 	 
	 
	 	 	 	 
	DEFEASANCE
	 	 	64	 
	SECTION 1301. Applicability of Article
	 	 	64	 
	SECTION 1302. Legal Defeasance
	 	 	64	 
	SECTION 1303. Covenant Defeasance 
	 	 	66	 
	SECTION 1304. Application by Trustee of Funds Deposited for Payment of
Securities 
	 	 	67	 
	SECTION 1305. Repayment to Company
	 	 	67	 

 

			
	NOTE:	 	This Table of Contents shall not, for any purpose, be deemed to be a part
of the Indenture.

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     INDENTURE dated as of May 10, 1999, between EL PASO ENERGY
CORPORATION, a corporation duly organized and existing under the laws of
Delaware (the “Company”), having its principal office at the El Paso Energy
Building, 1001 Louisiana Street, Houston, Texas 77002, and THE CHASE MANHATTAN
BANK, a New York banking corporation, as Trustee (the “Trustee”).

RECITALS OF THE COMPANY

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

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

     This Indenture is subject to the provisions of the Trust Indenture Act
that are required to be a part of this Indenture and, to the extent applicable,
shall be governed by such provisions.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

SECTION 101. Definitions.

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

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

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

          (3) all accounting terms not otherwise defined herein have
the meanings assigned to them in accordance with generally accepted accounting
principles, and, except as otherwise herein expressly provided, the term
“generally accepted accounting principles” with respect to any computation
required or permitted hereunder shall mean such accounting principles as are
generally accepted in the United States at the date of such computation;

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

          (5) the words “Article” and “Section” refer to an Article and
Section, respectively, of this Indenture.

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

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

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

     “Authorized Newspaper” means a newspaper, in the English language or
in an official language of the country of publication, customarily published on
each Business Day, whether or not published on Saturdays, Sundays or holidays,
and of general circulation in the place in connection with which the term is
used or in the financial community of such place.

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

     “Board of Directors” means the board of directors of the Company, or
the executive or any other committee of that board duly authorized to act in
respect thereof.

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

     “Business Day”, when used with respect to any Place of Payment or
other location, means, except as otherwise provided as contemplated by Section
301 with respect to any series of Securities, each Monday, Tuesday, Wednesday,
Thursday and Friday which is not a day on which banking institutions in that
Place of Payment or other location are authorized or obligated by law,
executive order or regulation to close.

-2-

 

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

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

     “Company Request” or “Company Order” means a written request or order
signed in the name of the Company by its Chairman of the Board, its Chief
Executive Officer, its President, any of its Vice Presidents or any other
authorized officer of the Company or a person duly authorized by any of them,
and delivered to the Trustee.

     “Consolidated Net Tangible Assets” means, at any date of
determination, the total amount of assets after deducting therefrom (i) all
current liabilities (excluding (A) any current liabilities that by their terms
are extendable or renewable at the option of the obligor thereon to a time more
than 12 months after the time as of which the amount thereof is being computed,
and (B) current maturities of long-term debt), and (ii) the value (net of any
applicable reserves) of all goodwill, trade names, trademarks, patents and
other like intangible assets, all as set forth on the consolidated balance
sheet of the Company and its consolidated subsidiaries for the Company’s most
recently completed fiscal quarter, prepared in accordance with generally
accepted accounting principles.

     “Corporate Trust Office” means the office of the Trustee at which at
any particular time its corporate trust business shall be principally
administered, which at the date hereof is 450 West 33rd Street, New York, NY
10001.

     “corporation” includes corporations, associations, partnerships,
limited liability companies, joint-stock companies and business trusts.

     “covenant defeasance” has the meaning specified in Section 1303.

     “Custodian” means any receiver, trustee, assignee, liquidator or
similar official under any Bankruptcy Law.

     “Debt” means any obligation created or assumed by any Person for the
repayment of money borrowed and any purchase money obligation created or
assumed by such Person.

     “Default” means, with respect to a series of Securities, any event
which is, or after notice or lapse of time or both would become, an Event of
Default with respect to Securities of such series.

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

-3-

 

     “defeasance” has the meaning specified in Section 1302.

     “Definitive Security” means a Security other than a Global Security or
a temporary Security.

     “Depositary” means, with respect to Securities of any series issuable
in whole or in part in the form of one or more Global Securities, a clearing
agency registered under the Exchange Act that is designated to act as
Depositary for such Securities as contemplated by Section 301, until a
successor Depositary shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter shall mean or include each Person
which is then a Depositary hereunder, and if at any time there is more than one
such Person, shall be a collective reference to such Persons.

     “Dollar” or “$” means the coin or currency of the United States of
America as at the time of payment is legal tender for the payment of public and
private debts.

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

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

     “Funded Debt” means all Debt maturing one year or more from the date
of the creation thereof, all Debt directly or indirectly renewable or
extendible, at the option of the debtor, by its terms or by the terms of any
instrument or agreement relating thereto, to a date one year or more from the
date of the creation thereof, and all Debt under a revolving credit or similar
agreement obligating the lender or lenders to extend credit over a period of
one year or more.

     “Global Security” means a Security in global form that evidences all
or part of the Securities of any series and is authenticated and delivered to,
and registered in the name of, the Depositary for such Securities or a nominee
thereof.

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

     “Indenture” means this instrument as originally executed or as it may
from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof,
including, for all purposes of this instrument, and any such supplemental
indenture, the provisions of the Trust Indenture Act that are deemed to be a
part of and govern this instrument and any such supplemental indenture,
respectively. The term “Indenture” also shall include the terms of particular
series of Securities established as contemplated by Section 301.

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

-4-

 

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

     “Lien” means any mortgage, pledge, security interest, charge, lien or
other encumbrance of any kind, whether or not filed, recorded or perfected
under applicable law.

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

     “Notice of Default” means a written notice of the kind specified in
Section 501(3).

     “Officer’s Certificate” means a certificate signed by the Chairman of
the Board, the Chief Executive Officer, the President, any Vice President or
any other authorized officer of the Company or a person duly authorized by any
of them, and delivered to the Trustee. The officer signing an Officer’s
Certificate given pursuant to Section 1004 shall be the principal executive,
financial or accounting officer of the Company.

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

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

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

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

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

          (3) Securities which have been paid pursuant to Section 306
or in exchange for or in lieu of which other Securities have been authenticated
and delivered pursuant to this Indenture, other than any such Securities in
respect of which there shall have been presented to the Trustee

-5-

 

proof satisfactory to it that such Securities are held by a bona fide purchaser
in whose hands such Securities are valid obligations of the Company; and

          (4) Securities, except to the extent provided in Sections
1302 and 1303, with respect to which the Company has effected defeasance or
covenant defeasance as provided in Article Thirteen.

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

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

     “Periodic Offering” means an offering of Securities of a series from
time to time, the specific terms of which Securities, including, without
limitation, the rate or rates of interest or formula for determining the rate
or rates of interest thereon, if any, the Stated Maturity or Stated Maturities
thereof, the original issue date or dates thereof, the redemption provisions,
if any, with respect thereto, and any other terms specified as contemplated by
Section 301 with respect thereto, are to be determined by the Company upon the
issuance of such Securities.

     “Permitted Liens” means (i) Liens upon rights-of-way for pipeline
purposes; (ii) any governmental Lien, mechanics’, materialmen’s, carriers’ or
similar Lien incurred in the ordinary course of business which is not yet due
or which is being contested in good faith by appropriate proceedings and any
undetermined Lien which is incidental to construction; (iii) the right reserved
to, or vested in, any municipality or public authority by the terms of any
right, power, franchise,

-6-

 

grant, license, permit or by any provision of law, to purchase or recapture or
to designate a purchaser of, any property; (iv) Liens of taxes and assessments
which are (A) for the then current year, (B) not at the time delinquent, or (C)
delinquent but the validity of which is being contested at the time by the
Company or any Subsidiary in good faith; (v) Liens of, or to secure performance
of, leases; (vi) any Lien upon, or deposits of, any assets in favor of any
surety company or clerk of court for the purpose of obtaining indemnity or stay
of judicial proceedings; (vii) any Lien upon property or assets acquired or
sold by the Company or any Restricted Subsidiary resulting from the exercise of
any rights arising out of defaults on receivables; (viii) any Lien incurred in
the ordinary course of business in connection with workmen’s compensation,
unemployment insurance, temporary disability, social security, retiree health
or similar laws or regulations or to secure obligations imposed by statute or
governmental regulations; (ix) any Lien upon any property or assets in
accordance with customary banking practice to secure any Debt incurred by the
Company or any Restricted Subsidiary in connection with the exporting of goods
to, or between, or the marketing of goods in, or the importing of goods from,
foreign countries; or (x) any Lien in favor of the United States of America or
any state thereof, or any other country, or any political subdivision of any of
the foregoing, to secure partial, progress, advance, or other payments pursuant
to any contract or statute, or any Lien securing industrial development,
pollution control, or similar revenue bonds.

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

     “Place of Payment”, when used with respect to the Securities of any
series, means, unless otherwise specifically provided for with respect to such
series as contemplated by Section 301, the office or agency of the Company in
The City of New York and such other place or places where, subject to the
provisions of Section 1002, the principal of and any premium and interest on
the Securities of that series are payable as specified as contemplated by
Section 301.

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

     “Principal Property” means (a) any pipeline assets of the Company or
any Subsidiary, including any related facilities employed in the
transportation, distribution or marketing of natural gas, that is located in
the United States or Canada, and (b) any processing or manufacturing plant
owned or leased by the Company or any Subsidiary and located within the United
States or Canada, except, in the case of either clause (a) or (b), any such
assets or plant which, in the opinion of the Board of Directors, is not
material in relation to the activities of the Company and its Subsidiaries as a
whole.

-7-

 

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

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

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

     “Restricted Subsidiary” means any Subsidiary of the Company owning or
leasing any Principal Property.

     “Sale-Leaseback Transaction” means the sale or transfer by the Company
or any Restricted Subsidiary of any Principal Property to a Person (other than
the Company or a Subsidiary) and the taking back by the Company or any
Restricted Subsidiary, as the case may be, of a lease of such Principal
Property.

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

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

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

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

     “Subsidiary” means a corporation more than 50% of the outstanding
voting stock of which is owned, directly or indirectly, by the Company or by
one or more other Subsidiaries, or by the Company and one or more other
Subsidiaries. For the purposes of this definition, “voting stock” means stock
which ordinarily has voting power for the election of directors, whether at all
times or only so long as no senior class of stock has such voting power by
reason of any contingency.

     “Trust Indenture Act” means the Trust Indenture Act of 1939 as in
force at the date as of which this instrument was executed, except as otherwise
provided in Section 905; provided, however, that if the Trust Indenture Act of
1939 is amended after such date, “Trust Indenture Act” means, to the extent
required by any such amendment, the Trust Indenture Act of 1939 as so amended.

-8-

 

     “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 each Trustee with respect to
Securities of that series.

     “U.S. Government Obligations” means securities which are (i) direct
obligations of the United States 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, the payment of
which is unconditionally guaranteed as a full faith and credit obligation by
the United States, each of which are not callable or redeemable at the option
of the issuer thereof.

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

SECTION 102. Compliance Certificates and Opinions.

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

     Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture (except for certificates
provided for in Section 1004) shall include:

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

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

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

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

-9-

 

SECTION 103. Form Of Documents Delivered To Trustee.

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

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

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

SECTION 104. Acts Of Holders; Record Dates.

     Any request, demand, authorization, direction, notice, consent, waiver
or other action provided or permitted by this Indenture to be given or taken by
Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed (either physically or by means of a
facsimile or an electronic transmission, provided that such electronic
transmission is transmitted through the facilities of a Depositary) by such
Holders in person or by agent duly appointed in writing; and, except as herein
otherwise expressly provided, such action shall become effective when such
instrument or instruments are delivered (either physically or by means of a
facsimile or an electronic transmission, provided that such electronic
transmission is transmitted through the facilities of a Depositary) to the
Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the “Act” of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of
a writing appointing any such agent shall be sufficient for any purpose of this
Indenture and (subject to Section 315 of the Trust Indenture Act) conclusive in
favor of the Trustee and the Company, if made in the manner provided in this
Section.

     The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other

-10-

 

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

     The ownership, principal amount and serial numbers of Securities held
by any Person, and the date of commencement of such Person’s holding the same,
shall be proved by the Security Register.

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

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

     The Company may set any day as the record date for the purpose of
determining the Holders of Outstanding Securities of any series entitled to
give or take any request, demand, authorization, direction, notice, consent,
waiver or other action provided or permitted by this Indenture to be given or
taken by Holders of Securities of such series, but the Company shall have no
obligation to do so. With regard to any record date set pursuant to this
paragraph, the Holders of Outstanding Securities of the relevant series on such
record date (or their duly appointed agents), and only such Persons, shall be
entitled to give or take the relevant action, whether or not such Holders
remain Holders after such record date.

SECTION 105. Notices, Etc., To Trustee And Company.

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

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

          (2) the Company by the Trustee or by any Holder shall be
sufficient for every purpose hereunder (unless otherwise herein expressly
provided) if in writing and mailed, first-class

-11-

 

postage prepaid, to the Company addressed to it at 1001 Louisiana Street,
Houston, Texas 77002, to the attention of the Corporate Secretary, or at any
other address previously furnished in writing to the Trustee by the Company.

SECTION 106. Notice To Holders; Waiver.

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

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

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

SECTION 107. Conflict With Trust Indenture Act.

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

SECTION 108. Effect Of Headings And Table Of Contents.

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

-12-

 

SECTION 109. SUCCESSORS AND ASSIGNS.

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

SECTION 110. SEPARABILITY CLAUSE.

     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 111. BENEFITS OF INDENTURE.

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

SECTION 112. GOVERNING LAW.

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

SECTION 113. LEGAL HOLIDAYS.

     In any case where any Interest Payment Date, Redemption Date or Stated
Maturity of any Security shall not be a Business Day at any Place of Payment,
then (notwithstanding any other provision of this Indenture or of the
Securities (other than a provision of the Securities of any series which
specifically states that such provision shall apply in lieu of this Section))
payment of interest or principal (and premium, if any) need not be made at such
Place of Payment on such date, but may be made on the next succeeding Business
Day at such Place of Payment with the same force and effect as if made on the
Interest Payment Date or Redemption Date, or at the Stated Maturity, provided
that no interest shall accrue for the period from and after such Interest
Payment Date, Redemption Date or Stated Maturity, as the case may be.

SECTION 114. LANGUAGE OF NOTICES, ETC.

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

-13-

 

SECTION 115. INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS OF THE COMPANY
EXEMPT FROM INDIVIDUAL LIABILITY.

     No recourse under or upon any obligation, covenant or agreement of or
contained in this Indenture or of or contained in any Security, or for any
claim based thereon or otherwise in respect thereof, or in any Security, or
because of the creation of any indebtedness represented thereby, shall be had
against any incorporator, stockholder, officer or director, as such, past,
present or future, of the Company or any successor Person, either directly or
through the Company or any successor Person, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment
or penalty or otherwise; it being expressly understood that all such liability
is hereby expressly waived and released as a condition of, and as a part of the
consideration for, the execution of this Indenture and the issue of the
Securities.

ARTICLE TWO

SECURITY FORMS

SECTION 201. FORMS GENERALLY.

     The Securities of each series shall be in substantially the form set
forth in this Article, or in such other form as shall be established by or
pursuant to a Board Resolution or in one or more indentures supplemental
hereto, in each case with such appropriate insertions, omissions, substitutions
and other variations as are required or permitted by this Indenture, and may
have such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any
securities exchange or as may, consistently herewith, be determined by the
officers executing such Securities, as evidenced by their execution of the
Securities.

     The definitive Securities shall be printed, lithographed or engraved
on steel engraved borders or may be produced in any other manner, all as
determined by the officers executing such Securities, as evidenced by their
execution of such Securities. If the form of Securities of any series is
established by action taken pursuant to a Board Resolution, a copy of an
appropriate record of such action shall be certified by an authorized officer
or other authorized person on behalf of the Company and delivered to the
Trustee at or prior to the delivery of the Company Order contemplated by
Section 303 for the authentication and delivery of such Securities.

SECTION 202. FORM OF FACE OF SECURITY.

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

     [If a Global Security, — insert legend required by Section 204 of the
Indenture] [If applicable, insert—UNLESS THIS SECURITY IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE

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OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION, TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

EL PASO ENERGY CORPORATION

[TITLE OF SECURITY]

			
	 	 	 
	NO.
	 	U.S.$

[CUSIP NO.                           ]

     EL PASO ENERGY CORPORATION, a corporation duly incorporated and
existing under the laws of Delaware (herein called the “Company”, which term
includes any successor Person under the Indenture hereinafter referred to), for
value received, hereby promises to pay to      , or registered assigns, the
principal sum of            United States Dollars on
               [if the Security is to bear interest prior to Maturity,
insert—, and to pay interest thereon from      , or from the most recent Interest
Payment Date to which interest has been paid or duly provided for,
semi-annually on            and            in each year, commencing      , at the rate of      % per
annum, until the principal hereof is paid or made available for payment [if
applicable, insert—, and at the rate of      % per annum on any overdue principal
and premium and on any overdue installment of interest]. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date
will, as provided in such Indenture, be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such interest, which shall be the
                    or (whether or not a Business Day), as the case may be,
next preceding such Interest Payment Date. Any such interest not so punctually
paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice of which shall be given to Holders of Securities
of this series not less than 10 days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series
may be listed, and upon such notice as may be required by such exchange, all as
more fully provided in such Indenture].

-15-

 

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

     [If a Global Security, insert—Payment of the principal of [(and
premium, if any)] and [if applicable, insert—any such] interest on this
Security will be made by transfer of immediately available funds to a bank
account in
designated by the Holder in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts [state other currency].]

     [If a Definitive Security insert—Payment of the principal of [(and
premium, if any)] and [if applicable, insert—any such] interest on this
Security will be made at the office or agency of the Company maintained for that
purpose in      , [in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts] [state other currency] [or subject to any laws or regulations
applicable thereto and to the right of the Company (as provided in the
Indenture) to rescind the designation of any such Paying Agent, at the [main]
offices of            in            and            in      , or at such other
offices or agencies as the Company may designate, by [United States Dollar]
[state other currency] check drawn on, or transfer to a [United States Dollar]
account maintained by the payee with, a bank in The City of New York [           ]
(so long as the applicable Paying Agent has received proper transfer
instructions in writing at least [           ] days prior to the payment date)]
[if applicable, insert—; provided, however, that payment of interest may be
made at the option of the Company by [United States Dollar] [state other
currency] check mailed to the addresses of the Persons entitled thereto as such
addresses shall appear in the Security Register] [or by transfer to a [United
States Dollar] [state other currency] account maintained by the payee with a
bank in The City of New York [state other Place of Payment] (so long as the
applicable Paying Agent has received proper transfer instructions in writing by
the Record Date prior to the applicable Interest Payment Date)].]

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

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

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

-16-

 

	 	 	 	 	 
	Dated: 	EL PASO ENERGY CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

SECTION 203. FORM OF REVERSE OF SECURITY.

     This Security is one of a duly authorized issue of securities of the
Company (the “Securities”), issued and to be issued in one or more series under
an Indenture dated as of _________________________ (the “Indenture”), between
the Company and The Chase Manhattan Bank, as Trustee (the “Trustee”, which term
includes any successor trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, obligations, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Securities and of
the terms upon which the Securities are, and are to be, authenticated and
delivered. As provided in the Indenture, the Securities may be issued in one or
more series, which different series may be issued in various aggregate
principal amounts, may mature at different times, may bear interest, if any, at
different rates, may be subject to different redemption provisions, if any, may
be subject to different sinking, purchase or analogous funds, if any, may be
subject to different covenants and Events of Default and may otherwise vary as
in the Indenture provided or permitted. This Security is one of the series
designated on the face hereof [if applicable, insert—, limited in aggregate
principal amount to U.S.$       ].

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

	 	 	 	 	 	 	 
	YEAR	 	REDEMPTION PRICE	 	YEAR	 	REDEMPTION PRICE
	 
	 	 
	 	 
	 	 

and thereafter at a Redemption Price equal to      % of the principal amount,
together in the case of any such redemption [if applicable, insert—(whether
through operation of the sinking fund or otherwise)] with accrued interest to
the Redemption Date, but interest installments whose Stated Maturity is on or
prior to such Redemption Date will be payable to the Holders of such
Securities,

-17-

 

or one or more Predecessor Securities, of record at the close of business on the
relevant Record Dates referred to on the face hereof, all as provided in the
Indenture.]

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

	 	 	 	 	 
	 	 	REDEMPTION PRICE	 	REDEMPTION PRICE FOR
	 	 	FOR REDEMPTION	 	REDEMPTION OTHERWISE THAN THROUGH
	 	 	THROUGH OPERATION	 	OPERATION
	YEAR	 	OF THE SINKING FUND	 	OF THE SINKING FUND
	 
	 	 
	 	 

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

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

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

     [If applicable, insert—The Securities of this series are not
redeemable prior to Stated Maturity.]

-18-

 

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

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

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

     As provided in and subject to the provisions of the Indenture, the
Holder of this Security shall not have the right to institute any proceeding
with respect to the Indenture or for the appointment of a receiver or trustee
or for any other remedy thereunder, unless such Holder shall have previously
given the Trustee written notice of a continuing Event of Default with respect
to the Securities of this series, the Holders of not less than 25% in principal
amount of the Securities of this series at the time Outstanding shall have made
written request to the Trustee to institute proceedings in respect of such
Event of Default as Trustee and offered the Trustee reasonable indemnity and
the Trustee shall not have received from the Holders of a majority in principal
amount of Securities of this series at the time Outstanding a direction
inconsistent with such request, and shall have failed to institute any such
proceeding, for 60 days after receipt of such notice, request and offer of
indemnity. The foregoing shall not apply to any suit instituted by the Holder
of this Security for the enforcement of any payment of principal hereof or [any
premium or] interest hereon on or after the respective due dates expressed
herein.

     No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the

-19-

 

principal of and [any premium and] interest on this Security at the times,
place(s) and rate, and in the coin or currency, herein prescribed.

     [If a Global Security, insert—This Global Security or portion hereof
may not be exchanged for Definitive Securities of this series except in the
limited circumstances provided in the Indenture.

     The holders of beneficial interests in this Global Security will not
be entitled to receive physical delivery of Definitive Securities except as
described in the Indenture and will not be considered the Holders thereof for
any purpose under the Indenture.]

     [If a Definitive Security, insert—As provided in the Indenture and
subject to certain limitations therein set forth, the transfer of this Security
is registerable in the Security Register, upon surrender of this Security for
registration of transfer at the office or agency of the Company in [if
applicable, insert — any place where the principal of and any premium and
interest on this Security are payable] [if applicable, insert— The City of New
York [, or, subject to any laws or regulations applicable thereto and to the
right of the Company (limited as provided in the Indenture) to rescind the
designation of any such transfer agent, at the [main] offices of
in            and in
or at such other offices or agencies as the Company may designate]], duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees.]

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

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

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

     No recourse under or upon any obligation, covenant or agreement of or
contained in the Indenture or of or contained in any Security, or for any claim
based thereon or otherwise in respect thereof, or in any Security, or because
of the creation of any indebtedness represented thereby, shall be had against
any incorporator, stockholder, officer or director, as such, past, present or
future, of

-20-

 

the Company or of any successor Person, either directly or through the Company
or any successor Person, whether by virtue of any constitution, statute or rule
of law, or by the enforcement of any assessment, penalty or otherwise; it being
expressly understood that all such liability is hereby expressly waived and
released by the acceptance hereof and as a condition of, and as part of the
consideration for, the Securities and the execution of the Indenture.

     The Indenture provides that the Company (a) will be discharged from
any and all obligations in respect of the Securities (except for certain
obligations described in the Indenture), or (b) need not comply with certain
restrictive covenants of the Indenture, in each case if the Company deposits,
in trust, with the Trustee money or U.S. Government Obligations (or a
combination thereof) which through the payment of interest thereon and
principal thereof in accordance with their terms will provide money, in an
amount sufficient to pay all the principal of and interest on the Securities,
but such money need not be segregated from other funds except to the extent
required by law.

     This Security shall be governed by and construed in accordance with
the laws of the State of New York.

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

     [If a Definitive Security, insert as a separate page—

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto

 
 (Please Print or Typewrite Name and Address of Assignee)

the within instrument of EL PASO ENERGY CORPORATION and does hereby irrevocably
constitute and appoint ________________________ Attorney to transfer said
instrument on the books of the within-named Company, with full power of
substitution in the premises.

Please Insert Social Security or

Other Identifying Number of Assignee:

	 	 	 
	 
	 
	 
	 	 

	 	 	 	 	 

	Dated:
	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	(Signature)

 

			
	NOTICE:	 	The signature to this assignment must correspond with the name as
written upon the face of the within instrument in every particular, without
alteration or enlargement or any change whatever.]

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SECTION 204. GLOBAL SECURITIES.

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

     THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A
DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE TRANSFERRED
TO, OR REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED IN THE NAME
OF, ANY PERSON OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF AND NO
SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE. EVERY SECURITY AUTHENTICATED AND DELIVERED
UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR OR IN LIEU OF,
THIS SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO THE FOREGOING,
EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

     If Securities of a series are issuable in whole or in part in the form
of one or more Global Securities, as specified as contemplated by Section 301,
then, notwithstanding Clause (9) of Section 301 and the provisions of Section
302, any Global Security shall represent such of the Outstanding Securities of
such series as shall be specified therein and may provide that it shall
represent the aggregate amount of Outstanding Securities from time to time
endorsed thereon and that the aggregate amount of Outstanding Securities
represented thereby may from time to time be reduced or increased, as the case
may be, to reflect exchanges. Any endorsement of a Global Security to reflect
the amount, or any reduction or increase in the amount, of Outstanding
Securities represented thereby shall be made in such manner and upon
instructions given by such Person or Persons as shall be specified therein or
in a Company Order. Subject to the provisions of Sections 303, 304 and 305, the
Trustee shall deliver and redeliver any Global Security in the manner and upon
instructions given by the Person or Persons specified therein or in the
applicable Company Order. Any instructions by the Company with respect to
endorsement or delivery or redelivery of a Global Security shall be in a
Company Order (which need not comply with Section 102 and need not be
accompanied by an Opinion of Counsel).

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

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SECTION 205. FORM OF TRUSTEES CERTIFICATE OF AUTHENTICATION.

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

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

	 	 	 	 	 
	 	THE CHASE MANHATTAN BANK,

As Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Officer 	 

ARTICLE THREE

THE SECURITIES

SECTION 301. AMOUNT UNLIMITED; ISSUABLE IN SERIES.

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

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

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

          (2) any limit upon the aggregate principal amount of the
Securities of the series which may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Securities of the
series pursuant to Section 304, 305, 306, 906 or 1107 and except for any
Securities which, pursuant to Section 303, are deemed never to have been
authenticated and delivered hereunder);

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

-23-

 

          (4) the date or dates on which the principal of the
Securities of the series is payable or the method of determination thereof;

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

          (6) the place or places where, subject to the provisions of
Section 1002, the principal of and any premium and interest on Securities of
the series shall be payable, Securities of the series may be surrendered for
registration of transfer, Securities of the series may be surrendered for
exchange and notices, and demands to or upon the Company in respect of the
Securities of the series and this Indenture may be served;

          (7) the period or periods within which, the price or prices
at which and the terms and conditions upon which Securities of the series may
be redeemed, in whole or in part, at the option of the Company;

          (8) the obligation, if any, of the Company to redeem or
purchase Securities of the series pursuant to any sinking fund or analogous
provisions or upon the happening of a specified event 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;

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

          (10) whether payment of principal of and premium, if any, and
interest, if any, on the Securities of the series shall be without deduction
for taxes, assessments or governmental charges paid by Holders of the series;

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

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

          (13) if the principal of or any premium or interest on any
Securities of the series is to be payable, at the election of the Company or a
Holder thereof, in one or more currencies or

-24-

 

currency units other than that or those in which the Securities are stated to
be payable, the currency, currencies or currency units in which payment of the
principal of and any premium and interest on Securities of such series as to
which such election is made shall be payable, and the periods within which and
the terms and conditions upon which such election is to be made;

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

          (15) if and as applicable, that the Securities of the series
shall be issuable in whole or in part in the form of one or more Global
Securities and, in such case, the Depositary or Depositaries for such Global
Security or Global Securities and any circumstances other than those set forth
in Section 305 in which any such Global Security may be transferred to, and
registered and exchanged for Securities registered in the name of, a Person
other than the Depositary for such Global Security or a nominee thereof and in
which any such transfer may be registered;

          (16) any deletions from, modifications of or additions to the
Events of Default set forth in Section 501 or the covenants of the Company set
forth in Article Ten pertaining to the Securities of the series;

          (17) if other than as provided in Sections 1302 and 1303, the
means of defeasance or covenant defeasance as may be specified for the
Securities of the series;

          (18) if other than the Trustee, the identity of the Security
Registrar and any Paying Agent; and

          (19) any other terms of the series (which terms shall not be
inconsistent with the provisions of this Indenture, except as permitted by
Section 901(4)).

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

     All Securities of any one series need not be issued at the same time
and, unless otherwise provided, a series may be reopened, without the consent
of the Holders, for increases in the aggregate principal amount of such series
of Securities and issuances of additional Securities of such series or for the
establishment of additional terms with respect to the Securities of such
series.

     If any of the terms of the series are established by action taken by
or pursuant to a Board Resolution, a copy of an appropriate record of such
action shall be certified by an authorized officer or other authorized person
on behalf of the Company and delivered to the Trustee at or prior to the

-25-

 

delivery of the Officer’s Certificate setting forth, or providing the manner
for determining, the terms of the series.

     With respect to Securities of a series subject to a Periodic Offering,
such Board Resolution or Officer’s Certificate may provide general terms for
Securities of such series and provide either that the specific terms of
particular Securities of such series shall be specified in a Company Order or
that such terms shall be determined by the Company, or one or more of the
Company’s agents designated in an Officer’s Certificate, in accordance with a
Company Order.

SECTION 302. DENOMINATIONS.

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

SECTION 303. EXECUTION, AUTHENTICATION, DELIVERY AND DATING.

     The Securities shall be executed on behalf of the Company by its
Chairman of the Board, its Chief Executive Officer, its Chief Financial
Officer, its President or any Vice President and need not be attested. The
signature of any of these officers on the Securities may be manual or
facsimile.

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

     At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities of any series executed by
the Company to the Trustee for authentication, together with a Company Order
for the authentication and delivery of such Securities, and the Trustee in
accordance with the Company Order shall authenticate and deliver such
Securities; provided, however, that in the case of Securities offered in a
Periodic Offering, the Trustee shall authenticate and deliver such Securities
from time to time in accordance with such other procedures (including, without
limitation, the receipt by the Trustee of oral or electronic instructions from
the Company or its duly authorized agents, thereafter promptly confirmed in
writing) acceptable to the Trustee as may be specified by or pursuant to a
Company Order delivered to the Trustee prior to the time of the first
authentication of Securities of such series. If the form or terms of the
Securities of the series have been established in or pursuant to one or more
Board Resolutions as permitted by Sections 201 and 301, in authenticating such
Securities, and accepting the additional responsibilities under this Indenture
in relation to such Securities, the Trustee shall be entitled to receive, and
(subject to Section 601) shall be fully protected in relying upon, an Opinion
of Counsel stating,

-26-

 

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

          (2) if the terms of such Securities have been, or in the case
of Securities of a series offered in a Periodic Offering, will be, established
by or pursuant to a Board Resolution as permitted by Section 301, that such
terms have been, or in the case of Securities of a series offered in a Periodic
Offering, will be, established in conformity with the provisions of this
Indenture, subject, in the case of Securities of a series offered in a Periodic
Offering, to any conditions specified in such Opinion of Counsel; and

          (3) that such Securities, when authenticated and delivered by
the Trustee and issued by the Company in the manner and subject to any
conditions specified in such Opinion of Counsel, will constitute valid and
legally binding obligations of the Company enforceable in accordance with their
terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting
creditors’ rights and to general equity principles.

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

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

     With respect to Securities of a series offered in a Periodic Offering,
the Trustee may rely, as to the authorization by the Company of any of such
Securities, the form or forms and terms thereof and the legality, validity,
binding effect and enforceability thereof, upon the Opinion of Counsel and the
other documents delivered pursuant to Sections 201 and 301 and this Section, as
applicable, in connection with the first authentication of Securities of such
series.

     Each Security shall be dated the date of its authentication.

     No Security shall be entitled to any benefit under this Indenture or
be valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein
executed by the Trustee by manual signature of an authorized officer, and such
certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered
hereunder. Notwithstanding the foregoing, if any

-27-

 

Security shall have been authenticated and delivered hereunder but never issued
and sold by the Company, and the Company shall deliver such Security to the
Trustee for cancellation as provided in Section 309 for all purposes of this
Indenture such Security shall be deemed never to have been authenticated and
delivered hereunder and shall never be entitled to the benefits of this
Indenture.

SECTION 304. TEMPORARY SECURITIES.

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

     If temporary Securities of any series are issued, the Company will
cause Definitive Securities of that series to be prepared without unreasonable
delay. After the preparation of Definitive Securities of such series, the
temporary Securities of such series shall be exchangeable for Definitive
Securities of such series upon surrender of the temporary Securities of such
series at the office or agency of the Company maintained pursuant to Section
1002 for the purpose of exchanges of Securities of such series, without charge
to the Holder. Upon surrender for cancellation of any one or more temporary
Securities of any series the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor one or more Definitive Securities
of the same series, of any authorized denominations and of a like aggregate
principal amount and tenor. Until so exchanged the temporary Securities of any
series shall in all respects be entitled to the same benefits under this
Indenture as Definitive Securities of such series and tenor.

SECTION 305. REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE.

     The Company shall cause to be kept at an office or agency of the
Company in The City of New York a register (the register maintained in such
office or in any other office or agency of the Company in a Place of Payment
being herein sometimes referred to as the “Security Register”) in which,
subject to such reasonable regulations as it may prescribe, the Company shall
provide for the registration of Securities and of transfers of Securities. The
Company will prior to the issuance of any Securities hereunder, appoint the
Trustee as the initial “Security Registrar” for the purpose of registering
Securities and transfers of Securities as herein provided and its corporate
trust office which, at the date hereof, is located at 450 West 33rd Street, New
York, New York 10001 as the initial office or agency in The City of New York
where the Security Register will be maintained. The Company may at any time
replace such Security Registrar, change such office or agency or act as its own
Security Registrar. The Company will give prompt written notice to the Trustee
of any change of the Security Registrar or of the location of such office or
agency.

     Upon surrender for registration of transfer of any Security of any
series at the office or agency of the Company maintained pursuant to Section
1002 for such purpose, the Company shall

-28-

 

execute, and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Securities of the same
series, of any authorized denominations and of a like aggregate principal
amount and tenor.

     At the option of the Holder, Securities of any series (except a Global
Security) may be exchanged for other Securities of the same series, of any
authorized denominations and of a like aggregate principal amount and tenor,
upon surrender of the Securities to be exchanged at such office or agency.
Whenever any Securities are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Securities which
the Holder making the exchange is entitled to receive.

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

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

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

     The Company shall not be required (1) to issue, register the transfer
of or exchange Securities of any series during a period beginning at the
opening of business 15 days before the day of the mailing of a notice of
redemption of Securities of that series selected for redemption under Section
1103 and ending at the close of business on the day of such mailing, or (2) to
register the transfer of or exchange any Security so selected for redemption in
whole or in part, except the unredeemed portion of any Security being redeemed
in part.

     Notwithstanding any other provision in this Indenture and except as
otherwise specified as contemplated by Section 301, no Global Security may be
transferred to, or registered or exchanged for Securities registered in the
name of, any Person other than the Depositary for such Global Security or any
nominee thereof, and no such transfer may be registered, except as provided in
this paragraph. Every Security authenticated and delivered upon registration or
transfer of, or in exchange for or in lieu of, a Global Security shall be a
Global Security, except as provided in this paragraph. If(1)(A) the
Depositary for a Global Security notifies the Company that it is unwilling or
unable to continue as Depositary for such Global Security or ceases to be a
clearing agency registered under the Exchange Act, and (B) a successor
Depositary is not appointed by the Company within 90 days, or (2) the Company
determines in its sole discretion that Securities of a series issued in global
form shall no longer be represented by a Global Security, then such Global
Security may

-29-

 

be exchanged by such Depositary for Definitive Securities of the same series,
of any authorized denomination and of a like aggregate principal amount and
tenor, registered in the names of, and the transfer of such Global Security or
portion thereof may be registered to, such Persons as such Depositary shall
direct.

SECTION 306. MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES.

     If any mutilated Security is surrendered to the Trustee, together
with, in proper cases, such security or indemnity as may be required by the
Company or the Trustee to save each of them and any agent of either of them
harmless, the Company shall execute and the Trustee shall authenticate and
deliver in exchange therefor a new Security of the same series and 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 the Trustee shall
authenticate and deliver, in lieu of any such destroyed, lost or stolen
Security, a new Security of the same series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

     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
exchange for any mutilated Security or in lieu of any destroyed, lost or stolen
Security shall constitute an original additional contractual obligation of the
Company, whether or not the mutilated, 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.

-30-

 

SECTION 307. PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED.

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

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

          (1) The Company may elect to make payment of any Defaulted
Interest to the Persons in whose names the Securities of such series (or their
respective Predecessor Securities) are registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest, which shall be
fixed in the following manner. The Company shall notify the Trustee in writing
of the amount of Defaulted Interest proposed to be paid on each Security of
such series and the date of the proposed payment, and at the same time the
Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to
the date of the proposed payment, such money when deposited to be held in trust
for the benefit of the Persons entitled to such Defaulted Interest as in this
Clause provided. Thereupon the Trustee shall fix a Special Record Date for the
payment of such Defaulted Interest which shall be not more than 15 days and not
less than 10 days prior to the date of the proposed payment and not less than
10 days after the receipt by the Trustee of the notice of the proposed payment.
The Trustee shall promptly notify the Company of such Special Record Date and,
in the name and at the expense of the Company, shall cause notice of the
proposed payment of such Defaulted Interest and the Special Record Date
therefor to be mailed, first-class postage prepaid, to each Holder of
Securities of such series at his address as it appears in the Security
Register, not less than 10 days prior to such Special Record Date. Notice of
the proposed payment of such Defaulted Interest and the Special Record Date
therefor having been so mailed, such Defaulted Interest shall be paid to the
Persons in whose names the Securities of such series (or their respective
Predecessor Securities) are registered at the close of business on such Special
Record Date and shall no longer be payable pursuant to the following Clause
(2).

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

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

SECTION 308. PERSONS DEEMED OWNERS.

     Except as otherwise provided as contemplated by Section 301 with
respect to any series of Securities, prior to due presentment of a Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name such Security is registered
as the owner of such Security for the purpose of receiving payment of principal
of and any premium and (subject to Sections 305 and 307) any interest on such
Security and for all other purposes whatsoever, whether or not such Security be
overdue, and neither the Company, the Trustee nor any agent of the Company or
the Trustee shall be affected by notice to the contrary.

     No holder of any beneficial interest in any Global Security held on
its behalf by a Depositary shall have any rights under this Indenture with
respect to such Global Security, and such Depositary may be treated by the
Company, the Trustee, and any agent of the Company or the Trustee as the owner
of such Global Security for all purposes whatsoever. None of the Company, the
Trustee nor any agent of the Company or the Trustee will have any
responsibility or liability for any aspect of the records relating to or
payments made on account of beneficial ownership interests of a Global Security
or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests.

SECTION 309. CANCELLATION.

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

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SECTION 310. COMPUTATION OF INTEREST.

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

SECTION 311. CUSIP NUMBERS.

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

ARTICLE FOUR

SATISFACTION AND DISCHARGE

SECTION 401. SATISFACTION AND DISCHARGE OF INDENTURE.

     This Indenture shall upon Company Request cease to be of further
effect with respect to Securities of any series (except as to any surviving
rights of registration of transfer or exchange of such Securities herein
expressly provided for), and the Trustee, at the expense of the Company, shall
execute proper instruments acknowledging satisfaction and discharge of this
Indenture with respect to such Securities, when

          (1) either

               (A) all such Securities theretofore authenticated
and delivered (other than (i) such Securities which have been
destroyed, lost or stolen and which have been replaced or paid as
provided in Section 306, and (ii) such Securities for whose payment
money has theretofore been deposited in trust or segregated and held
in trust by the Company and thereafter repaid to the Company or
discharged from such trust, as provided in Section 1003) have been
delivered to the Trustee for cancellation; or

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

               (i) have become due and payable, or

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

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

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

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

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

     Notwithstanding the satisfaction and discharge of this Indenture with
respect to Securities of any series, (x) the obligations of the Company to the
Trustee under Section 607, the obligations of the Trustee to any Authenticating
Agent under Section 614 and the right of the Trustee to resign under Section
610 shall survive, and (y) if money shall have been deposited with the Trustee
pursuant to subclause (B) of Clause (1) of this Section, the obligations of the
Company and/or the Trustee under Sections 402, 606, 701 and 1002 and the last
paragraph of Section 1003 shall survive.

SECTION 402. APPLICATION OF TRUST MONEY.

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

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ARTICLE FIVE

REMEDIES

SECTION 501. EVENTS OF DEFAULT.

     “Event of Default”, wherever used herein with respect to Securities of
any series, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of
any court or any order, rule or regulation of any administrative or
governmental body):

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

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

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

          (4) the Company pursuant to or within the meaning of any
Bankruptcy Law (A) commences a voluntary case, (B) consents to the entry of any
order for relief against it in an involuntary case, (C) consents to the
appointment of a Custodian of it or for all or substantially all of its
property, or (D) makes a general assignment for the benefit of its creditors;
or

          (5) a court of competent jurisdiction enters an order or
decree under any Bankruptcy Law that (A) is for relief against the Company in
an involuntary case, (B) appoints a Custodian of the Company or for all or
substantially all of its property, or (C) orders the liquidation of the
Company; and the order or decree remains unstayed and in effect for 90 days; or

          (6) any other Event of Default provided as contemplated by
Section 301 with respect to Securities of that series.

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SECTION 502. ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.

     If an Event of Default with respect to Securities of any series at the
time Outstanding occurs and is continuing, then 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 of the
Securities of that series are Original Issue Discount Securities, such portion
of the principal amount of such Securities as may be specified in the terms
thereof) of 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) shall become immediately due and payable.

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

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

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

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

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

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

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

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

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SECTION 503. COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE.

     The Company covenants that if

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

          (2) default is made in the payment of the principal of (or
premium, if any, on) any Security at the Maturity thereof,

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

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

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

SECTION 504. TRUSTEE MAY FILE PROOFS OF CLAIM.

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

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any amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 607.

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

SECTION 505. TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES.

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

SECTION 506. APPLICATION OF MONEY COLLECTED.

     Any money collected by the Trustee pursuant to this Article shall be
applied in the following order, at the date or dates fixed by the Trustee and,
in case of the distribution of such money on account of principal or any
premium or interest, upon presentation of the Securities and the notation
thereon of the payment if only partially paid and upon surrender thereof if
fully paid:

     FIRST: To the payment of all amounts due the Trustee under Section 607;

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

     THIRD: The balance, if any, to the Company.

SECTION 507. LIMITATION ON SUITS.

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

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

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

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

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

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

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

SECTION 508. UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL, PREMIUM AND

INTEREST.

     Notwithstanding any other provision in this Indenture, the Holder of
any Security shall have the right, which is absolute and unconditional, to
receive payment of the principal of and any premium and (subject to Sections
305 and 307) interest on such Security on the respective 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 509. RESTORATION OF RIGHTS AND REMEDIES.

     If the Trustee or any Holder has instituted any proceeding to enforce
any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee or to such Holder, then and in every such case, subject to any
determination in such proceeding, the Company, the 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.

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SECTION 510. Rights and Remedies Cumulative.

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

SECTION 511. DELAY OR OMISSION NOT WAIVER.

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

SECTION 512. CONTROL BY HOLDERS.

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

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

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

          (3) subject to the provisions of Section 601, the Trustee
shall have the right to decline to follow any such direction if the Trustee in
good faith shall determine that the proceeding so directed would involve the
Trustee in personal liability.

SECTION 513. Waiver of Past Defaults.

     The Holders of a majority in aggregate 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

          (1) a continuing default in the payment of the principal of
or any premium or interest on any Security of such series, or

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

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

SECTION 514. UNDERTAKING FOR COSTS.

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

SECTION 515. WAIVER OF USURY, STAY OR EXTENSION LAWS.

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

ARTICLE SIX

THE TRUSTEE

SECTION 601. CERTAIN DUTIES AND RESPONSIBILITIES.

     The duties and responsibilities of the Trustee shall be as provided by
the Trust Indenture Act. No provision of this Indenture shall require the
Trustee to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers, if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk
or liability is not reasonably assured to it. Whether or not therein expressly
so provided, every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section.

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SECTION 602. NOTICE OF DEFAULTS.

     If a Default occurs and is continuing with respect to the Securities
of any series, the Trustee shall, within 90 days after it occurs, transmit, in
the manner and to the extent provided in Section 313(c) of the Trust Indenture
Act, notice of all uncured or unwaived Defaults known to it; provided, however,
that, except in the case of a Default in payment on the Securities of any
series, the Trustee may withhold the notice if and so long as the board of
directors, the executive committee or a trust committee of its directors and/or
its duly authorized officers in good faith determines that withholding such
notice is in the interests of Holders of Securities of such series; provided
further, however, that, in the case of any default or breach of the character
specified in Section 501(3) with respect to the Securities of such series, no
such notice to Holders shall be given until at least 60 days after the
occurrence thereof.

SECTION 603. CERTAIN RIGHTS OF TRUSTEE.

     Subject to the provisions of Section 601:

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

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

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

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

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

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          (6) the Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document but
the Trustee, in its discretion, may make such further inquiry or investigation
into such facts or matters as it may see fit;

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

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

SECTION 604. NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES.

     The recitals contained herein and in the Securities, except the
Trustee’s certificates of authentication, shall be taken as the statements of
the Company, and the Trustee or any Authenticating Agent assumes no
responsibility for their correctness. Neither the Trustee nor any
Authenticating Agent makes any representations as to the validity or
sufficiency of this Indenture or of the Securities. The Trustee or any
Authenticating Agent shall not be accountable for the use or application by the
Company of Securities or the proceeds thereof.

SECTION 605. MAY HOLD SECURITIES.

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

SECTION 606. MONEY HELD IN TRUST.

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

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SECTION 607. COMPENSATION AND REIMBURSEMENT.

     The Company agrees

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

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

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

     The obligations of the Company under this Section to compensate the
Trustee and to pay or reimburse the Trustee for expenses, disbursements and
advances shall constitute additional indebtedness hereunder. Such additional
indebtedness shall be secured by a lien prior to that of the Securities upon
all property and funds held or collected by the Trustee as such, except funds
held in trust for the benefit of the Holders of particular Securities.

     Without limiting any rights available to the Trustee under applicable
law, when the Trustee incurs expenses or renders services in connection with an
Event of Default specified in Section 501(4) or Section 501(5), the expenses
(including the reasonable charges and expenses of its counsel) and the
compensation for such services are intended to constitute expenses of
administration under any applicable Bankruptcy Law.

     The provisions of this Section shall survive the satisfaction and
discharge of this Indenture and the defeasance of the Securities.

SECTION 608. DISQUALIFICATION; CONFLICTING INTERESTS.

     If the Trustee has or shall acquire a conflicting interest within the
meaning of the Trust Indenture Act, the Trustee shall either eliminate such
interest or resign, to the extent and in the manner provided by, and subject to
the provisions of, the Trust Indenture Act and this Indenture.

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SECTION 609. CORPORATE TRUSTEE REQUIRED; ELIGIBILITY.

     There shall at all times be one or more Trustees hereunder with
respect to the Securities of each series, at least one of which shall be a
Person that is eligible pursuant to the Trust Indenture Act to act as such and
has a combined capital and surplus required by the Trust Indenture Act. If such
Person publishes reports of condition at least annually, pursuant to law or to
the requirements of a supervising or examining authority, then for the purposes
of this Section, the combined capital and surplus of such Person shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article.

SECTION 610. RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.

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

     The Trustee may resign at any time with respect to the Securities of
one or more series by giving written notice thereof to the Company. If the
instrument of acceptance by a successor Trustee required by Section 611 shall
not have been delivered to the Trustee within 30 days after the giving of such
notice of resignation, the resigning Trustee may petition any court of
competent jurisdiction for the appointment of a successor Trustee with respect
to the Securities of such series.

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

     If at any time:

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

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

          (3) the Trustee shall become incapable of acting or shall be
adjudged a bankrupt or insolvent or a receiver of the Trustee or of its
property shall be appointed or any public officer shall take charge or control
of the Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then, in any such case, (A) the Company may remove
the Trustee with respect to all Securities, or (B) subject to Section 514, any
Holder who has been a bona fide Holder of a Security for at least six months
may, on behalf of himself and all others similarly

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

     If the Trustee shall resign, be removed or become incapable of acting,
or if a vacancy shall occur in the office of Trustee for any cause, with
respect to the Securities of one or more series, the Company shall promptly
appoint a successor Trustee or Trustees with respect to the Securities of that
or those series (it being understood that any such successor Trustee may be
appointed with respect to the Securities of one or more or all of such series
and that at any time there shall be only one Trustee with respect to the
Securities of any particular series) and shall comply with the applicable
requirements of Section 611. If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor Trustee
with respect to the Securities of any series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such
series delivered to the Company and the retiring Trustee, the successor Trustee
so appointed shall, forthwith upon its acceptance of such appointment in
accordance with the applicable requirements of Section 611, become the
successor Trustee with respect to the Securities of such series and to that
extent supersede the successor Trustee appointed by the Company. If no
successor Trustee with respect to the Securities of any series shall have been
so appointed by the Company or the Holders and accepted appointment in the
manner required by Section 611, any Holder who has been a bona fide Holder of a
Security of such series for at least six months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the appointment of a successor Trustee with respect to the Securities of such
series.

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

SECTION 611. Acceptance of Appointment by Successor.

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

          (b) In case of the appointment hereunder of a successor
Trustee with respect to the Securities of one or more (but not all) series, the
Company, the retiring Trustee and each

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

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

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

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

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

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SECTION 613. Preferential Collection of Claims Against Company.

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

SECTION 614. Appointment of Authenticating Agent.

     The Trustee (upon notice to the Company) may appoint an Authenticating
Agent or Agents with respect to one or more series of Securities which shall be
authorized to act on behalf of the Trustee to authenticate Securities of such
series issued upon original issue (in accordance with procedures acceptable to
the Trustee) and upon exchange, registration of transfer or partial redemption
thereof or pursuant to Section 306, and Securities so authenticated shall be
entitled to the benefits of this Indenture and shall be valid and obligatory
for all purposes as if authenticated by the Trustee hereunder. Wherever
reference is made in this Indenture to the authentication and delivery of
Securities by the Trustee or the Trustee’s certificate of authentication, such
reference shall be deemed to include authentication and delivery on behalf of
the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be acceptable to the Company and shall at all times
be a corporation organized and doing business under the laws of the United
States of America, any State thereof or the District of Columbia, authorized
under such laws to act as Authenticating Agent, having a combined capital and
surplus of not less than $50,000,000 and subject to supervision or examination
by Federal or State authority. If such Authenticating Agent publishes reports
of condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such Authenticating Agent shall be deemed to be
its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent shall cease to
be eligible in accordance with the provisions of this Section, such
Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.

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

     An Authenticating Agent may resign at any time by giving written
notice thereof to the Trustee and to the Company. The Trustee may at any time
terminate the agency of an Authenticating Agent by giving written notice
thereof to such Authenticating Agent and to the Company. Upon receiving such a
notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this

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Section, the Trustee may appoint a successor Authenticating Agent which shall
be acceptable to the Company and shall mail written notice of such appointment
by first-class mail, postage prepaid, to all Holders of Securities of the
series with respect to which such Authenticating Agent will serve, as their
names and addresses appear in the Security Register. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become
vested with all the rights, powers and duties of its predecessor hereunder,
with like effect as if originally named as an Authenticating Agent. No
successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.

     Except with respect to an Authenticating Agent appointed at the
request of the Company, the Trustee agrees to pay to each Authenticating Agent
from time to time reasonable compensation for its services under this Section,
and the Trustee shall be entitled to be reimbursed by the Company for such
payments, subject to the provisions of Section 607.

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

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

	 	 	 	 	 
	 	THE CHASE MANHATTAN BANK,

As Trustee

 	 
	 	By:  	 	 
	 	 	As Authenticating Agent 	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Officer 	 

ARTICLE SEVEN

HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY

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

     The Company will furnish or cause to be furnished to the Trustee

          (1) semi-annually, not later than May 15 and November 15 in
each year, a list for each series of Securities, in such form as the Trustee
may reasonably require, of the names and

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addresses of the Holders of Securities of such series as of the preceding April
30 or October 31, as the case may be, and

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

provided, however, that if and so long as the Trustee shall be the Security
Registrar for Securities of a series, no such list need be furnished with
respect to such series of Securities.

SECTION 702. Preservation of Information; Communications to Holders.

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

     The rights of the Holders to communicate with other Holders with
respect to their rights under this Indenture or under the Securities, and the
corresponding rights and privileges of the Trustee, shall be as provided by the
Trust Indenture Act.

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

SECTION 703. Reports by Trustee.

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

     Reports so required to be transmitted at stated intervals of not more
than 12 months shall be transmitted no later than July 15 in each calendar year
with respect to the 12-month period ending on the previous May 15, commencing
May 15, 1999.

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

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SECTION 704. Reports by Company.

     The Company shall:

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

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

          (3) transmit by mail to all Holders, as their names and
addresses appear in the Security Register, within 30 days after the filing
thereof with the Trustee, such summaries of any information, documents and
reports required to be filed by the Company pursuant to paragraphs (1) and (2)
of this Section as may be required by rules and regulations prescribed from
time to time by the Commission.

ARTICLE EIGHT

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

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

     The Company shall not consolidate with or merge into any other Person
or sell, lease or transfer its properties and assets as, or substantially as,
an entirety to, any Person, unless:

          (1) (A) in the case of a merger, the Company is the surviving
entity, or (B) the Person formed by such consolidation or into which the
Company is merged or the Person which acquires by sale or transfer, or which
leases, the properties and assets of the Company as, or substantially as, an
entirety shall expressly assume, by an indenture supplemental hereto, executed
and delivered to the Trustee, in form reasonably satisfactory to the Trustee,
the due and punctual payment of the principal of and any premium and interest
on all the Securities and the performance

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or observance of every covenant and condition of this Indenture on the part of
the Company to be performed or observed;

          (2) immediately after giving effect to such transaction, no
Default or Event of Default exists; and

          (3) the Company has delivered to the Trustee an Officer’s
Certificate and an Opinion of Counsel, each stating that such consolidation,
merger, sale, transfer or lease and the supplemental indenture required in
connection with such transaction comply with this Article and that all
conditions precedent herein provided for relating to such transaction have been
complied with.

SECTION 802. Successor Substituted.

     Upon any consolidation of the Company with, or merger of the Company
into, any other Person or any sale, transfer or lease of the properties and
assets of the Company as, or substantially as, an entirety in accordance with
Section 801, the successor Person formed by such consolidation or into which
the Company is merged or to which such sale, transfer or lease is made shall
succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Indenture with the same effect as if such successor
Person had been named originally as the Company herein, and thereafter, except
in the case of a lease, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and the Securities.

ARTICLE NINE

SUPPLEMENTAL INDENTURES

SECTION 901. Supplemental Indentures Without Consent of Holders.

     Without the consent of any Holders, the Company and the Trustee, at
any time and from time to time, may enter into one or more indentures
supplemental hereto, in form satisfactory to the Trustee, for any of the
following purposes:

          (1) to secure the Securities pursuant to the requirements of
Section 1006 or otherwise; or

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

          (3) to add to the covenants of the Company or the Events of
Default for the benefit of the Holders of all or any series of Securities (and
if such covenants or Events of Default are to be for the benefit of less than
all series of Securities, stating that such covenants or Events of

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Default, as the case may be, are expressly being included solely for the
benefit of such series) or to surrender any right or power herein conferred
upon the Company; or

          (4) to add to, change or eliminate any of the provisions of
this Indenture in respect of one or more series of Securities; provided,
however, that any such addition, change or elimination shall become effective
only when there is no Security Outstanding of any series created prior to the
execution of such supplemental indenture which is entitled to the benefit of
such provision; or

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

          (6) to cure any ambiguity, to correct or supplement any
provision herein which may be inconsistent with any other provision herein, to
comply with any applicable mandatory provisions of law or to make any other
provisions with respect to matters or questions arising under this Indenture,
provided that such action pursuant to this Clause (6) shall not adversely
affect the interests of the Holders of Securities of any series in any material
respect; or

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

          (8) to modify, eliminate or add to the provisions of this
Indenture to such extent as shall be necessary to effect the qualification of
this Indenture under the Trust Indenture Act or under any similar federal
statute subsequently enacted, and to add to this Indenture such other
provisions as may be expressly required under the Trust Indenture Act.

SECTION 902. Supplemental Indentures with Consent of Holders.

     With the consent of the Holders of a majority in aggregate principal
amount of the Outstanding Securities of all series affected by such
supplemental indenture (voting as one class), by Act of said Holders delivered
to the Company and the Trustee, the Company and the Trustee may enter into an
indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or of modifying in any manner the rights of the Holders of
Securities of such series under this Indenture; provided, however, that no such
supplemental indenture shall, without the consent of the Holder of each
Outstanding Security affected thereby,

          (1) change the Stated Maturity of the principal of, or any
installment of principal of or interest, if any, on, any Security, or reduce
the principal amount thereof or premium, if any, on or the rate of interest
thereon, or

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

          (3) change any obligation of the Company, with respect to
Outstanding Securities of a series, to maintain an office or agency in the
places and for the purposes specified in Section 1002 for such series, or

          (4) modify any of the provisions of this Section, Section 513
or Section 1008, except to increase any such percentage or to provide that
certain other provisions of this Indenture cannot be modified or waived without
the consent of the Holder of each Outstanding Security affected thereby;
provided, however, that this clause shall not be deemed to require the consent
of any Holder with respect to changes in the references to “the Trustee” and
concomitant changes in this Section, or the deletion of this proviso, in
accordance with the requirements of Sections 611 and 901(7).

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

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

SECTION 903. Execution of Supplemental Indentures.

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

SECTION 904. Effect of Supplemental Indentures.

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

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SECTION 905. Conformity with Trust Indenture Act.

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

SECTION 906. Reference in Securities to Supplemental Indentures.

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

ARTICLE TEN

COVENANTS

SECTION 1001. Payment of Principal, Premium and Interest.

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

SECTION 1002. Maintenance of Office or Agency.

     The Company will maintain in each Place of Payment for any series of
Securities an office or agency where Securities of that series may be presented
or surrendered for payment, where Securities of that series may be surrendered
for registration of transfer or exchange and where notices and demands to or
upon the Company in respect of the Securities of that series and this Indenture
may be served. The Company will give prompt written notice to the Trustee of
the location, and any change in the location, of such office or agency. If at
any time the Company shall fail to maintain any such required office or agency
or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and 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 other
offices or agencies where the Securities of one or more series may be presented
or surrendered for any or all such purposes and may from time to time rescind
such designations; provided, however, that no such designation or rescission
shall in any manner relieve the Company of its obligation to maintain an office
or agency in each Place of Payment for Securities of any series for such
purposes. The

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Company will give prompt written notice to the Trustee of any such designation
or rescission and of any change in the location of any such other office or
agency.

     Except as otherwise specified with respect to a series of Securities
as contemplated by Section 301, the Company hereby initially designates as the
Place of Payment for each series of Securities The City and State of New York,
and initially appoints the Trustee at its Corporate Trust Office as the
Company’s office or agency for each such purpose in such city.

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

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

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

     The Company will cause each Paying Agent for any series of Securities
other than the Trustee to execute and deliver to the Trustee an instrument in
which such Paying Agent shall agree with the Trustee, subject to the provisions
of this Section, that such Paying Agent will (1) hold all sums held by it for
the payment of the principal of (and premium, if any) or interest, if any, on
Securities of that series in trust for the benefit of the Persons entitled
thereto until such sums shall be paid to such Persons or otherwise disposed of
as herein provided; (2) give the Trustee notice of any default by the Company
(or any other obligor upon the Securities of that series) in the making of any
payment of principal (and premium, if any) or interest if any, on the
Securities of that series; and (3) during the continuance of any such default,
upon the written request of the Trustee, forthwith pay to the Trustee all sums
held in trust by such Paying Agent for payment in respect of the Securities of
that series.

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

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     Any money deposited with the Trustee or any Paying Agent, or then held
by the Company, in trust for the payment of the principal of or any premium or
interest on any Security of any series and remaining unclaimed for two years
after such principal, premium or interest has become due and payable shall be
paid to the Company on Company Request, or (if then held by the Company) shall
be discharged from such trust; and the Holder of such Security shall
thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in an Authorized Newspaper
in each Place of Payment with respect to such series, notice that such money
remains unclaimed and that, after a date specified therein, which shall not be
less than 30 days from the date of such publication, any unclaimed balance of
such money then remaining will be repaid to the Company.

SECTION 1004. Statement by Officers as to Default.

     The Company will deliver to the Trustee, within 150 days after the end
of each fiscal year of the Company ending after the date hereof, an Officer’s
Certificate, stating whether or not to the best knowledge of the signer thereof
the Company is in default in the performance and observance of any of the
terms, provisions and conditions of this Indenture (without regard to any
period of grace or requirement of notice provided hereunder) and, if the
Company shall be in default, specifying all such defaults and the nature and
status thereof of which they may have knowledge.

SECTION 1005. Existence.

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

Section 1006. Limitations on Liens.

     The Company will not, nor will it permit any Restricted Subsidiary to,
create, assume, incur or suffer to exist any Lien upon any Principal Property,
whether owned or leased on the date of this Indenture or thereafter acquired,
to secure any Debt of the Company or any other Person (other than the
Securities issued hereunder), without in any such case making effective
provision whereby all of the Securities Outstanding hereunder shall be secured
equally and ratably with, or prior to, such Debt so long as such Debt shall be
so secured. This restriction shall not apply to:

               (i) any Lien upon any property or assets of the
Company or any Restricted Subsidiary in existence on the date of this
Indenture or created pursuant to an “after-acquired property” clause
or similar term in existence on the date of this Indenture or

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any mortgage, pledge agreement, security agreement or other similar
instrument in existence on the date of this Indenture;

               (ii) any Lien upon any property or assets created at
the time of acquisition of such property or assets by the Company or
any Restricted Subsidiary or within one year after such time to secure
all or a portion of the purchase price for such property or assets or
Debt incurred to finance such purchase price, whether such Debt was
incurred prior to, at the time of or within one year of such
acquisition;

               (iii) any Lien upon any property or assets existing
thereon at the time of the acquisition thereof by the Company or any
Restricted Subsidiary (whether or not the obligations secured thereby
are assumed by the Company or any Restricted Subsidiary);

               (iv) any Lien upon any property or assets of a
Person existing thereon at the time such Person becomes a Restricted
Subsidiary by acquisition, merger or otherwise;

               (v) the assumption by the Company or any Restricted
Subsidiary of obligations secured by any Lien existing at the time of
the acquisition by the Company or any Restricted Subsidiary of the
property or assets subject to such Lien or at the time of the
acquisition of the Person which owns such property or assets;

               (vi) any Lien on property to secure all or part of
the cost of construction or improvements thereon or to secure Debt
incurred prior to, at the time of, or within one year after completion
of such construction or making of such improvements, to provide funds
for any such purpose;

               (vii) any Lien on any oil, gas, mineral and
processing and other plant properties to secure the payment of costs,
expenses or liabilities incurred under any lease or grant or operating
or other similar agreement in connection with or incident to the
exploration, development, maintenance or operation of such properties;

               (viii) any Lien arising from or in connection with a
conveyance by the Company or any Restricted Subsidiary of any
production payment with respect to oil, gas, natural gas, carbon
dioxide, sulphur, helium, coal, metals, minerals, steam, timber or
other natural resources;

               (ix) any Lien in favor of the Company or any
Restricted Subsidiary;

               (x) any Lien created or assumed by the Company or
any Restricted Subsidiary in connection with the issuance of Debt the
interest on which is excludable from gross income of the holder of
such Debt pursuant to the Internal Revenue Code of 1986, as amended,
or any successor statute, for the purpose of financing, in whole or in
part, the

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acquisition or construction of property or assets to be used by the
Company or any Subsidiary;

               (xi) any Lien upon property or assets of any foreign
Restricted Subsidiary to secure Debt of that foreign Restricted
Subsidiary;

               (xii) Permitted Liens;

               (xiii) any Lien upon any additions, improvements,
replacements, repairs, fixtures, appurtenances or component parts
thereof attaching to or required to be attached to property or assets
pursuant to the terms of any mortgage, pledge agreement, security
agreement or other similar instrument, creating a Lien upon such
property or assets permitted by Clauses (i) through (xii), inclusive,
of this Section; or

               (xiv) any extension, renewal, refinancing, refunding
or replacement (or successive extensions, renewals, refinancing,
refundings or replacements) of any Lien, in whole or in part, that is
referred to in Clauses (i) through (xiii), inclusive, of this Section,
or of any Debt secured thereby; provided, however, that the principal
amount of Debt secured thereby shall not exceed the greater of the
principal amount of Debt so secured at the time of such extension,
renewal, refinancing, refunding or replacement and the original
principal amount of Debt so secured (plus in each case the aggregate
amount of premiums, other payments, costs and expenses required to be
paid or incurred in connection with such extension, renewal,
refinancing, refunding or replacement); provided, further, however,
that such extension, renewal, refinancing, refunding or replacement
shall be limited to all or a part of the property (including
improvements, alterations and repairs on such property) subject to the
encumbrance so extended, renewed, refinanced, refunded or replaced
(plus improvements, alterations and repairs on such property).

     Notwithstanding the foregoing provisions of this Section, the Company
may, and may permit any Restricted Subsidiary to, create, assume, incur or
suffer to exist any Lien upon any Principal Property to secure any Debt of the
Company or any other Person (other than the Securities) that is not excepted by
Clauses (i) through (xiv), inclusive, of this Section without securing the
Securities issued hereunder, provided that the aggregate principal amount of
all Debt then outstanding secured by such Lien and all similar Liens, together
with all net sale proceeds from Sale-Leaseback Transactions (excluding
Sale-Leaseback Transactions permitted by Clauses (i) through (iv), inclusive,
of Section 1007), does not exceed 15% of Consolidated Net Tangible Assets.

SECTION 1007. Restriction of Sale-Leaseback Transaction.

     The Company will not, nor will it permit any Restricted Subsidiary to,
engage in a Sale-Leaseback Transaction unless:

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               (i) such Sale-Leaseback Transaction occurs within
one year from the date of acquisition of the Principal Property
subject thereto or the date of the completion of construction or
commencement of full operations on such Principal Property, whichever
is later;

               (ii) the Sale-Leaseback Transaction involves a lease
for a period, including renewals, of not more than three years;

               (iii) the Company or such Restricted Subsidiary
would be entitled to incur Debt secured by a Lien on the Principal
Property subject thereto in a principal amount equal to or exceeding
the net sale proceeds from such Sale-Leaseback Transaction without
securing the Securities; or

               (iv) the Company or such Restricted Subsidiary,
within a one-year period after such Sale-Leaseback Transaction,
applies or causes to be applied an amount not less than the net sale
proceeds from such Sale-Leaseback Transaction to (A) the repayment,
redemption or retirement of Funded Debt of the Company or any
Subsidiary, or (B) investment in another Principal Property.

     Notwithstanding the foregoing provisions of this Section, the Company
may, and may permit any Restricted Subsidiary to, effect any Sale-Leaseback
Transaction that is not excepted by Clauses (i) through (iv), inclusive, of
this Section, provided that the net sale proceeds from such Sale-Leaseback
Transaction, together with the aggregate principal amount of then outstanding
Debt (other than the Securities) secured by Liens upon Principal Properties not
excepted by Clauses (i) through (xiv), inclusive, of Section 1006, do not
exceed 15% of the Consolidated Net Tangible Assets.

SECTION 1008. Waiver of Certain Covenants.

     The Company may omit in any particular instance to comply with any
term, provision or condition set forth in Section 1005, 1006 or 1007 with
respect to the Securities of any series if before the time for such compliance
the Holders of at least a majority in aggregate principal amount of the
Outstanding Securities of all affected series (voting as one class) shall, by
Act of such Holders, either waive such compliance in such instance or generally
waive compliance with such term, provision or condition, but no such waiver
shall extend to or affect such term, provision or condition except to the
extent so expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the duties of the Trustee in respect of any such
term, provision or condition shall remain in full force and effect.

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

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ARTICLE ELEVEN

REDEMPTION OF SECURITIES

SECTION 1101. Applicability of Article.

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

SECTION 1102. Election to Redeem; Notice to Trustee.

     The election of the Company to redeem any Securities shall be
evidenced by a Board Resolution. In case of any redemption at the election of
the Company of less than all the Securities of any series, the Company shall,
at least 45 days prior to the Redemption Date fixed by the Company (unless a
shorter notice shall be satisfactory to the Trustee), notify the Trustee of
such Redemption Date, of the principal amount of Securities of such series to
be redeemed and, if applicable, of the tenor of the Securities to be redeemed.
In the case of any redemption of Securities (1) prior to the expiration of any
restriction on such redemption provided in the terms of such Securities or
elsewhere in this Indenture, or (2) pursuant to an election of the Company
which is subject to a condition specified in the terms of such Securities, the
Company shall furnish the Trustee with an Officer’s Certificate evidencing
compliance with such restriction or condition.

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

     If less than all the Securities of any series are to be redeemed
(unless all the Securities of such series and of a specified tenor are to be
redeemed), the particular Securities to be redeemed shall be selected not more
than 45 days prior to the Redemption Date by the Trustee, from the outstanding
Securities of such series not previously called for redemption, by such method
as the Trustee shall deem fair and appropriate and which may provide for the
selection for redemption of portions (equal to the minimum authorized
denomination for Securities of that series or any integral multiple thereof) of
the principal amount of Securities of such series of a denomination larger than
the minimum authorized denomination for Securities of that series.

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

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

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SECTION 1104. Notice of Redemption.

     Notice of redemption shall be given by first-class mail (if
international mail, by air mail), postage prepaid, mailed not less than 30 nor
more than 60 days prior to the Redemption Date, to each Holder of Securities to
be redeemed, at his address appearing in the Security Register.

     All notices of redemption shall state:

          (1) the Redemption Date,

          (2) the Redemption Price,

          (3) if less than all the Outstanding Securities of any series
and of a specified tenor are to be redeemed, the identification (and, in the
case of partial redemption of any Securities, the principal amounts) of the
particular Securities to be redeemed,

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

          (5) the place or places where such Securities are to be
surrendered for payment of the Redemption Price, and

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

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

SECTION 1105. Deposit of Redemption Price.

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

SECTION 1106. Securities Payable on Redemption Date.

     Notice of redemption having been given as aforesaid, the Securities so
to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified, and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest) such Securities shall cease to bear interest. Upon surrender of any
such Security for redemption in accordance with said notice, such Security
shall be paid by the Company

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at the Redemption Price, together with accrued interest to the Redemption Date;
provided, however, that, unless otherwise specified as contemplated by Section
301, installments of interest whose Stated Maturity is on or prior to the
Redemption Date shall be payable to the Holders of such Securities, or one or
more Predecessor Securities, registered as such at the close of business on the
relevant Record Dates according to their terms and the provisions of Section
307.

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

SECTION 1107. Securities Redeemed in Part.

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

ARTICLE TWELVE

SINKING FUNDS

SECTION 1201. Applicability of Article.

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

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

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SECTION 1202. Satisfaction of Sinking Fund Payments with Securities.

     The Company (1) may deliver Outstanding Securities of a series (other
than any previously called for redemption), and (2) may apply as a credit
Securities of a series which have been redeemed either at the election of the
Company pursuant to the terms of such Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of such series required to be made
pursuant to the terms of such Securities as provided for by the terms of such
series; provided that such Securities have not been previously so credited.
Such Securities shall be received and credited for such purpose by the Trustee
at the Redemption Price specified in such Securities for redemption through
operation of the sinking fund and the amount of such sinking fund payment shall
be reduced accordingly.

SECTION 1203. Redemption of Securities for Sinking Fund.

     Not less than 45 days prior to each sinking fund payment date for any
series of Securities (unless a shorter period shall be satisfactory to the
Trustee), the Company will deliver to the Trustee an Officer’s Certificate
specifying the amount of the next ensuing 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 Securities of that series pursuant to
Section 1202 and stating the basis for such credit and that such Securities
have not been previously so credited, and will also deliver to the Trustee any
Securities to be so delivered. Not less than 30 days before each such sinking
fund payment date the Trustee shall select the Securities to be redeemed upon
such sinking fund payment date in the manner specified in Section 1103 and
cause notice of the redemption thereof to be given in the name of and at the
expense of the Company in the manner provided in Section 1104. Such notice
having been duly given, the redemption of such Securities shall be made upon
the terms and in the manner stated in Sections 1106 and 1107.

ARTICLE THIRTEEN

DEFEASANCE

SECTION 1301. Applicability of Article.

     The provisions of this Article shall be applicable to each series of
Securities except as otherwise specified as contemplated by Section 301 for
Securities of such series.

SECTION 1302. Legal Defeasance.

     In addition to discharge of the Indenture pursuant to Section 401, the
Company shall be deemed to have paid and discharged the entire indebtedness on
all the Securities of such a series on the 91st day after the date of the
deposit referred to in Clause (1) below, and the provisions of this

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Indenture with respect to the Securities of such series shall no longer be in
effect (except as to (i) rights of registration of transfer and exchange of
Securities of such series and the Company’s right of optional redemption, if
any, (ii) substitution of mutilated, destroyed, lost or stolen Securities,
(iii) rights of holders of Securities to receive payments of principal thereof
and interest thereon, upon the original stated due dates therefor or on the
specified redemption dates therefor (but not upon acceleration), and remaining
rights of the holders to receive mandatory sinking fund payments, if any, (iv)
the rights, obligations, duties and immunities of the Trustee hereunder, (v)
the rights of the holders of Securities of such series as beneficiaries hereof
with respect to the property so deposited with the Trustee payable to all or
any of them, and (vi) the obligations of the Company under Section 1002), and
the Trustee, at the expense of the Company, shall, upon a Company Request,
execute proper instruments acknowledging the same, if the conditions set forth
below are satisfied (hereinafter, “defeasance”):

          (1) The Company has irrevocably deposited or caused to be
deposited with the Trustee as trust funds in trust, for the purposes of making
the following payments, specifically pledged as security for, and dedicated
solely to, the benefit of the Holders of the Securities of such series (i) cash
in an amount, or (ii) in the case of any series of Securities the payments on
which may only be made in legal coin or currency of the United States, U.S.
Government Obligations, maturing as to principal and interest at such times and
in such amounts as will insure the availability of cash, or (iii) a combination
thereof, 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 (A) the principal and interest and premium, if
any, on all Securities of such series on each date that such principal,
interest or premium, if any, is due and payable or on any Redemption Date
established pursuant to Clause (3) below, and (B) any mandatory sinking fund
payments on the dates on which such payments are due and payable in
accordance
with the terms of the Indenture and the Securities of such series;

          (2) The Company has delivered to the Trustee an Opinion of
Counsel based on the fact that (x) the Company has received from, or there has
been published by, the Internal Revenue Service a ruling, or (y) since the date
hereof, there has been a change in the applicable federal income tax law, in
either case to the effect that, and such opinion 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 and defeasance
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 and
defeasance had not occurred;

          (3) If the Securities are to be redeemed prior to Stated
Maturity (other than from mandatory sinking fund payments or analogous
payments), notice of such redemption shall have been duly given pursuant to
this Indenture or provision therefor satisfactory to the Trustee shall have
been made;

          (4) No Event of Default or event which with notice or lapse
of time or both would become an Event of Default shall have occurred and be
continuing on the date of such deposit; and

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          (5) The Company has delivered to the Trustee an Officer’s
Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for relating to the defeasance contemplated by this
provision have been complied with.

     For this purpose, such defeasance means that the Company and any other
obligor upon the Securities of such series shall be deemed to have paid and
discharged the entire debt represented by the Securities of such series, which
shall thereafter be deemed to be “Outstanding” only for the purposes of Section
1304 and the rights and obligations referred to in Clauses (i) through (vi),
inclusive, of the first paragraph of this Section, and to have satisfied all
its other obligations under the Securities of such series and this Indenture
insofar as the Securities of such series are concerned.

SECTION 1303. Covenant Defeasance.

     The Company and any other obligor, if any, shall be released on the
91st day after the date of the deposit referred to in Clause (1) below from its
obligations under Sections 704, 801, 1005, 1006 and 1007 with respect to the
Securities of any series on and after the date the conditions set forth below
are satisfied (hereinafter, “covenant defeasance”), and the Securities of such
series shall thereafter be deemed to be not “Outstanding” for the purposes of
any request, demand, authorization, direction, notice, waiver, consent or
declaration or other action or Act of Holders (and the consequences of any
thereof) in connection with such covenants, but shall continue to be deemed
Outstanding for all other purposes hereunder. For this purpose, such covenant
defeasance means that, with respect to the Securities of such series, the
Company may omit to comply with and shall have no liability in respect of any
term, condition or limitation set forth in any such Section, whether directly
or indirectly by reason of any reference elsewhere herein to such Section or by
reason of any reference in such Section to any other provision herein or in any
other document and such omission to comply shall not constitute a Default or an
Event of Default under Section 501, but, except as specified above, the
remainder of this Indenture and the Securities of such series shall be
unaffected thereby. The following shall be the conditions to application of
this Section 1303:

          (1) The Company has irrevocably deposited or caused to be
deposited with the Trustee as trust funds in trust for the purpose of making
the following payments, specifically pledged as security for, and dedicated
solely to, the benefit of the Holders of the Securities of such series, (i)
cash in an amount, or (ii) in the case of any series of Securities the payments
on which may only be made in legal coin or currency of the United States, U.S.
Government Obligations, maturing as to principal and interest at such times and
in such amounts as will insure the availability of cash, or (iii) a combination
thereof, 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 (A) the principal and interest and premium, if
any, on all Securities of such series on each date that such principal,
interest or premium, if any, is due and payable or on any Redemption Date
established pursuant to Clause (2) below, and (B) any mandatory sinking fund
payments on the day on which such payments are due and payable in accordance
with the terms of the Indenture and the Securities of such series;

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          (2) If the Securities are to be redeemed prior to Stated
Maturity (other than from mandatory sinking fund payments or analogous
payments), notice of such redemption shall have been duly given pursuant to
this Indenture or provision therefor satisfactory to the Trustee shall have
been made;

          (3) No Event of Default or event which with notice or lapse
of time or both would become an Event of Default shall have occurred and be
continuing on the date of such deposit;

          (4) The Company shall have delivered to the Trustee an
Opinion of Counsel which 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 and covenant defeasance 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 and covenant
defeasance had not occurred; and

          (5) The Company shall have delivered to the Trustee an
Officer’s Certificate stating that all conditions precedent provided for
relating to the covenant defeasance contemplated by this provision have been
complied with.

SECTION 1304. Application by Trustee of Funds Deposited for Payment of
Securities.

     Subject to the provisions of the last paragraph of Section 1003, all
moneys or U.S. Government Obligations deposited with the Trustee pursuant to
Section 1302 or 1303 (and all funds earned on such moneys or U.S. Government
Obligations) shall be held in trust and applied by it to the payment, either
directly or through any Paying Agent (including the Company acting as its own
Paying Agent), to the Holders of the particular Securities of such series for
the payment or redemption of which such moneys have been deposited with the
Trustee, of all sums due and to become due thereon for principal and interest;
but such money need not be segregated from other funds except to the extent
required by law. Subject to Sections 1302 and 1303, the Trustee promptly shall
pay to the Company upon request any excess moneys held by them at any time.

SECTION 1305. Repayment to Company.

     The Trustee and any Paying Agent promptly shall pay or return to the
Company upon Company Request any money and U.S. Government Obligations held by
them at any time that are not required for the payment of the principal of and
any interest on the Securities of any series for which money or U.S. Government
Obligations have been deposited pursuant to Section 1302 or 1303.

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     The provisions of the last paragraph of Section 1003 shall apply to
any money held by the Trustee or any Paying Agent under this Article that
remains unclaimed for two years after the Maturity of any series of Securities
for which money or U.S. Government obligations have been deposited pursuant to
Section 1302 or 1303.

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

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

	 	 	 	 	 
	 	EL PASO ENERGY CORPORATION

 	 
	 	By:  	/s/ H. Brent Austin
 	 
	 	 	Name:  	H. Brent Austin 	 
	 	 	Title:  	Executive Vice President and
Chief Financial Officer 	 
	 
	 	THE CHASE MANHATTAN BANK

 	 
	 	By:  	/s/ Richard Lorenzen
 	 
	 	 	Name:  	Richard Lorenzen 	 
	 	 	Title:  	Assistant Vice President 	 
	 

-68-exv4wb

EXHIBIT 4.B

4.99% CONVERTIBLE PERPETUAL PREFERRED STOCK

     1. Number and Designation. 900,000 shares of the preferred stock of the Corporation shall be
designated as “4.99% Convertible Perpetual Preferred Stock” (the “Preferred Stock”).

     2. Certain Definitions. As used in this Certificate, the following terms shall have the
meanings defined in this Section 2. Any capitalized term not otherwise defined herein shall have
the meaning set forth in the Amended and Restated Certificate of Incorporation, unless the context
otherwise requires:

     “Additional Shares” shall have the meaning assigned to it in Section 9 hereof.

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

     “Agent Members” shall have the meaning assigned to it in Section 17(a) hereof.

     “Amended and Restated Certificate of Incorporation” shall have the meaning assigned to it in
the preamble to this Certificate.

     “Board of Directors” shall have the meaning assigned to it in the preamble to this
Certificate, and shall include any duly authorized committee thereof.

     “Business Day” means any day other than a Saturday, Sunday or a day on which state or U.S.
federally chartered banking institutions in New York, New York are not required to be open.

     “Capital Stock” of any Person means any and all shares, interests, participations or other
equivalents however designated of corporate stock or other equity participations, including
partnership interests, whether general or limited, of such Person and any rights (other than debt
securities convertible or exchangeable into an equity interest), warrants or options to acquire an
equity interest in such Person.

     “Certificate” means this Certificate of Designations.

 

 

     “Closing Sale Price” of the shares of Common Stock or other Capital Stock or similar equity
interests on any date means the closing sale price per share (or, if no closing sale price is
reported, the average of the closing bid and ask prices or, if more than one in either case, the
average of the average closing bid and the average closing ask prices) on such date as reported on
the New York Stock Exchange or such other national or regional exchange or market on which shares
of Common Stock or such other Capital Stock or similar equity interests are then listed or quoted.
In the absence of such quotations, the Board of Directors shall be entitled to determine the
“Closing Sale Price” on the basis it considers appropriate, which determination shall be
conclusive. The “Closing Sale Price” shall be determined without reference to any extended or
after hours trading.

     “Common Stock” means any stock of any class of the Corporation that has no preference in
respect of dividends or of amounts payable in the event of any voluntary or involuntary
liquidation, dissolution or winding up of the Corporation and that is not subject to redemption by
the Corporation. Subject to the provisions of Section 11, however, shares issuable on conversion
or redemption of the Preferred Stock shall include only shares of the Common Stock, par value $3.00
per share, or shares of any class or classes resulting from any reclassification or
reclassifications thereof and that have no preference in respect of dividends or of amounts payable
in the event of any voluntary or involuntary liquidation, dissolution or winding up of the
Corporation and which are not subject to redemption by the Corporation; provided that if at any
time there shall be more than one such resulting class, the shares of each such class then so
issuable on conversion shall be substantially in the proportion that the total number of shares of
such class resulting from all such reclassifications bears to the total number of shares of all
such classes resulting from all such reclassifications. From and after the time that shares of
Preferred Stock are convertible into shares of Public Acquirer Common Stock pursuant to Section
9(b)(v), references to Common Stock herein shall, as applicable, become references to such Public
Acquirer Common Stock.

     “Conversion Agent” shall have the meaning assigned to it in Section 19(a) hereof.

     “Conversion Price” per share of Preferred Stock means, on any date, the Liquidation Preference
divided by the Conversion Rate in effect on such date.

     “Conversion Rate” means 76.7754 shares of Common Stock per $1,000 liquidation preference of
Preferred Stock, subject to adjustment pursuant to Section 10 hereof.

     “Corporation” shall have the meaning assigned to it in the preamble to this Certificate, and
shall include any successor to such Corporation.

2

 

     “Current Market Price” shall mean the average of the daily Closing Sale Prices per share of
Common Stock for each of the ten consecutive Trading Days ending on the earlier of such date of
determination and the day before the “ex-date” with respect to the issuance, distribution,
subdivision or combination requiring such computation. For purposes of this paragraph, the term
“ex-date,” (1) when used with respect to any issuance or distribution, means the first date on
which the Common Stock trades, regular way, on the relevant exchange or in the relevant market from
which the Closing Sale Price was obtained without the right to receive such issuance or
distribution, and (2) when used with respect to any subdivision or combination of shares of Common
Stock, means the first date on which the Common Stock trades, regular way, on such exchange or in
such market after the time at which such subdivision or combination becomes effective. If another
distribution to which Section 10(d) applies occurs during the period applicable for calculating
“Current Market Price” pursuant to this definition, the “Current Market Price” shall be calculated
for such period in a manner determined by the Board of Directors to reflect the impact of such
issuance, distribution, subdivision or combination on the Closing Sale Price of the Common Stock
during such period.

     “Depositary” means DTC or its successor depositary.

     “Dividend Payment Date” means January 1, April 1, July 1 and October 1 of each year,
commencing July 1, 2005, or if any such date is not a Business Day, on the next succeeding Business
Day.

     “Dividend Period” shall mean, with respect to Preferred Stock, the period beginning on, and
including, a Dividend Payment Date and ending on, and excluding, the immediately succeeding
Dividend Payment Date and, with respect to Parity Stock, shall have a meaning correlative thereto.

     “DTC” shall mean The Depository Trust Company, New York, New York.

     “Effective Date” shall have the meaning assigned to it in Section 9(b) hereof.

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

     “Fair Market Value” shall mean the amount that a willing buyer would pay a willing seller in
an arm’s-length transaction.

     “Fundamental Change” shall mean any transaction or event (whether by means of an exchange
offer, liquidation, tender offer, consolidation, merger, combination, reclassification,
recapitalization or otherwise) in connection with which 90% or more of the Common Stock of the
Corporation is exchanged for, converted into, acquired for or constitutes solely the right to
receive, consideration which is not at least 90% shares of common stock that (i) is listed on, or
immediately after the transaction or event will be listed on, a United States

3

 

national securities exchange, or (ii) is approved, or immediately after the transaction or
event will be approved, for quotation on a United States national securities exchange or quotation
thereof in an inter-dealer quotation system of any registered United States national securities
association.

     “Fundamental Change Redemption Date” shall have the meaning assigned to it in Section 13(a)
hereof.

     “Global Preferred Share” shall have the meaning assigned to it in Section 17(a) hereof.

     “Global Shares Legend” shall have the meaning assigned to it in Section 17(a) hereof.

     “Junior Stock” shall have the meaning assigned to it in Section 3(a) hereof.

     “Liquidation Preference” shall have the meaning assigned to it in Section 5(a) hereof.

     “Mandatory Conversion Date” shall have the meaning assigned to it in Section 6(b) hereof.

     “Officer” means the Chairman of the Board, the Chief Executive Officer, a Vice Chairman of the
Board, the President, any Vice President, the Treasurer, any Assistant Treasurer, the Controller,
any Assistant Controller, the Secretary or any Assistant Secretary of the Corporation.

     “Outstanding” means, when used with respect to Preferred Stock, as of any date of
determination, all shares of Preferred Stock outstanding as of such date; provided, however, that,
if (i) such Preferred Stock is to be redeemed, (ii) notice of such redemption has been duly given
pursuant to this Certificate and (iii) the Paying Agent holds, in accordance with this Certificate,
money sufficient to pay in full the Redemption Price for the shares of Preferred Stock to be
redeemed, then immediately after such Redemption Date such shares of Preferred Stock shall cease to
be “Outstanding”; provided further that, in determining whether the holders of Preferred Stock have
given any request, demand, authorization, direction, notice, consent or waiver or taken any other
action hereunder, Preferred Stock owned by the Corporation or its Affiliates shall be deemed not to
be “Outstanding”, except that, in determining whether the Registrar shall be protected in relying
upon any such request, demand, authorization, direction, notice, consent, waiver or other action,
only Preferred Stock which the Registrar has actual knowledge of being so owned shall be deemed not
to be “Outstanding”.

     “Parity Stock” shall have the meaning assigned to it in Section 3(b) hereof.

4

 

     “Paying Agent” shall have the meaning assigned to it in Section 19(a) hereof.

     “Person” means an individual, a corporation, a partnership, a limited liability company,
limited partnership, an association, a trust or any other entity or organization, including a
government or political subdivision or an agency or instrumentality thereof.

     “Preferred Stock” shall have the meaning assigned to it in Section 1 hereof.

     “Preferred Stock Director” shall have the meaning assigned to it in Section 14(c) hereof.

     “Public Acquirer Fundamental Change” means any Fundamental Change that would otherwise
obligate the Corporation to increase the Conversion Rate as described in Section 9 where the
acquirer has a class of common stock traded on a national securities exchange or quoted on the
Nasdaq National Market or which will be so traded or quoted when issued or exchanged in connection
with such Fundamental Change (the “Public Acquirer Common Stock”). If an acquirer does not itself
have a class of common stock satisfying the foregoing requirement, it will be deemed to have Public
Acquirer Common Stock if a corporation that directly or indirectly owns at least a majority of the
acquirer, has a class of common stock satisfying the foregoing requirement, and all references to
Public Acquirer Common Stock will refer to such class of common stock. Majority owned for these
purposes means having the “beneficial ownership” (as defined in Rule 13d-3 under the Exchange Act)
of more than 50% of the total voting power of all shares of the respective entity’s Capital Stock
that are entitled to vote generally in the election of directors.

     “Record Date” means (i) with respect to the dividends payable on January 1, April 1, July 1
and October 1 of each year, December 15, March 15, June 15 and September 15 of each year,
respectively, or such other record date, not more than 60 days and not less than 10 days preceding
the applicable Dividend Payment Date, as shall be fixed by the Board of Directors and (ii) solely
for the purpose of adjustments to the Conversion Rate pursuant to Section 10 with respect to any
dividend, distribution or other transaction or event in which the holders of Common Stock have the
right to receive any cash, securities or other property or in which the Common Stock (or other
applicable security) is exchanged for or converted into any combination of cash, securities or
other property, the date fixed for determination of stockholders entitled to receive such cash,
securities or other property (whether such date is fixed by the Board of Directors or by statute,
contract or otherwise).

     “Redemption Date” means a date that is fixed for redemption of the Preferred Stock by the
Corporation in accordance with Section 7 hereof.

5

 

     “Redemption Price” means an amount equal to the Liquidation Preference per share of Preferred
Stock being redeemed, plus an amount equal to any accumulated and unpaid dividends, (whether or not
declared), including liquidated damages, if any, thereon to, but excluding, the Redemption Date or
Fundamental Change Redemption Date (as applicable); provided that if the Redemption Date shall
occur after a Record Date and before the related Dividend Payment Date, the Redemption Price shall
be only an amount equal to the Liquidation Preference per share of Preferred Stock being redeemed
and will not include any amount in respect of dividends declared and payable on such corresponding
Dividend Payment Date.

     “Registrar” shall have the meaning assigned to it in Section 15 hereof.

     “Rights” shall have the meaning assigned to it in Section 12 hereof.

     “Rights Plan” shall have the meaning assigned to it in Section 12 hereof.

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

     “Senior Stock” shall have the meaning assigned to it in Section 3(c) hereof.

     “Stock Price” shall have the meaning assigned to it in Section 9(b) hereof.

     “Subsidiary” means (a) a corporation, a majority of whose Capital Stock with voting power,
under ordinary circumstances, to elect directors is, at the date of determination, directly or
indirectly owned by the Corporation, by one or more Subsidiaries of the Corporation or by the
Corporation and one or more Subsidiaries of the Corporation, (b) a partnership in which the
Corporation or a Subsidiary of the Corporation holds a majority interest in the equity capital or
profits of such partnership, or (c) any other Person (other than a corporation) in which the
Corporation, a Subsidiary of the Corporation or the Corporation and one or more Subsidiaries of the
Corporation, directly or indirectly, at the date of determination, has (i) at least a majority
ownership interest or (ii) the power to elect or direct the election of a majority of the directors
or other governing body of such Person.

     “Trading Day” means a day during which trading in securities generally occurs on the New York
Stock Exchange or, if the Common Stock is not listed on the New York Stock Exchange, on the
principal other national or regional securities exchange on which the Common Stock is then listed
or, if the Common Stock is not listed on a national or regional securities exchange, on Nasdaq or,
if the Common Stock is not quoted on Nasdaq, on the principal other market on which the Common
Stock is then traded or, if the Common Stock is not so traded on a principal other market, on the
New York Stock Exchange.

     “Transfer Agent” shall have the meaning assigned to it in Section 15 hereof.

6

 

     3. Rank. The Preferred Stock shall, with respect to dividend rights and rights upon
liquidation, winding-up or dissolution, rank:

     (a) senior to the Common Stock and any other class or series of Capital Stock of the
Corporation, the terms of which provide that such class or series ranks junior to the Preferred
Stock as to dividend rights and rights on liquidation, winding-up and dissolution of the
Corporation (collectively, together with any warrants, rights, calls or options exercisable for or
convertible into such Capital Stock, the “Junior Stock”);

     (b) on a parity with any other class or series of Capital Stock of the Corporation, the terms
of which provide that such class or series ranks on a parity with the Preferred Stock as to
dividend rights and rights on liquidation, winding-up and dissolution of the Corporation
(collectively, together with any warrants, rights, calls or options exercisable for or convertible
into such Capital Stock, the “Parity Stock”); and

     (c) junior to each class or series of Capital Stock of the Corporation (other than Common
Stock), the terms of which do not expressly provide that such class or series ranks junior to or on
a parity with the Preferred Stock as to dividend rights and rights on liquidation, winding-up and
dissolution of the Corporation (collectively, together with any warrants, rights, calls or options
exercisable for or convertible into such Capital Stock, the “Senior Stock”).

     4. Dividends. (a) Holders of Preferred Stock shall be entitled to receive, when, as and if
declared by the Board of Directors, out of funds legally available for the payment of dividends,
cumulative cash dividends on each Outstanding share of Preferred Stock at the annual rate of 4.99%
of the Liquidation Preference per share; provided however that such holders will not be entitled to
receive any dividends that may be declared by the Board of Directors on the Common Stock unless
such holders’ shares of Preferred Stock have been converted to Common Stock as set forth in Section
8 hereof prior to or on the Record Date for the payment of such dividends. Such dividends shall be
payable in arrears in equal amounts quarterly on each Dividend Payment Date, beginning July 1,
2005, in preference to and in priority over dividends on any Junior Stock but subject to the rights
of any holders of Senior Stock or Parity Stock.

     (b) Dividends shall be cumulative from the initial date of issuance or the last Dividend
Payment Date for which accumulated dividends were paid, whichever is later, whether or not funds of
the Corporation are legally available for the payment of such dividends and whether or not the
Board of Directors declares the dividends. Each such dividend shall be payable to the holders of
record of shares of the Preferred Stock, as they appear on the Corporation’s stock register at the
close of business on a Record Date. Accumulated and unpaid dividends for any past Dividend Periods
may be declared and paid at any time, without reference to any Dividend Payment Date, to holders of
record on

7

 

such date, not more than 60 nor less than 10 days preceding the payment date thereof, as may
be fixed by the Board of Directors.

     (c) Accumulated and unpaid dividends for any past Dividend Period (whether or not declared)
shall cumulate at the annual rate of 4.99% and shall be payable in cash in the manner set forth in
this Section 4.

     (d) The amount of dividends payable for each full Dividend Period for the Preferred Stock
shall be computed by dividing the annual dividend rate by four. The amount of dividends payable on
the Preferred Stock for the initial Dividend Period, or for any other period shorter or longer than
a full Dividend Period (or amounts determined with respect thereto), shall be computed on the basis
of a 360-day year consisting of twelve 30-day months. Holders of Preferred Stock shall not be
entitled to any dividends, whether payable in cash, property or stock, in excess of cumulative
dividends, as herein provided, on the Preferred Stock.

     (e) No dividend shall be declared or paid, or funds set apart for the payment of any dividend
or other distribution, whether in cash, obligations or shares of Capital Stock of the Corporation
or other property, directly or indirectly, upon any shares of Junior Stock or Parity Stock, nor
shall any shares of Junior Stock or Parity Stock be redeemed, repurchased or otherwise acquired for
consideration by the Corporation or any of its subsidiaries through a sinking fund or otherwise, in
each case unless all accumulated and unpaid dividends, including liquidated damages, if any,
through the most recent Dividend Payment Date (whether or not there are funds of the Corporation
legally available for the payment of dividends) on the shares of Preferred Stock and any Parity
Stock for all preceding Dividend Periods have been paid in full or set apart for payment; provided,
however, that, notwithstanding any provisions of this Section 4(e) to the contrary, the Corporation
or any of its subsidiaries may redeem, repurchase or otherwise acquire for consideration Junior
Stock or Parity Stock with Junior Stock or pursuant to a purchase or exchange offer made on the
same terms to all holders of Preferred Stock and such Parity Stock. Furthermore, for the avoidance
of doubt, the foregoing provisions of this Section 4(e) shall not apply to any shares of Junior
Stock or Parity Stock surrendered to the Company upon a “cashless” exercise of stock options or
withheld upon the exercise of stock options or the vesting of restricted stock to satisfy
applicable withholding tax obligations. When dividends are not paid in full, as aforesaid, upon
the shares of Preferred Stock, all dividends declared on the Preferred Stock and any other Parity
Stock shall be paid pro rata so that the amount of dividends so declared on the shares of Preferred
Stock and each such other class or series of Parity Stock shall in all cases bear to each other the
same ratio as accumulated dividends on the shares of Preferred Stock and such class or series of
Parity Stock bear to each other.

     5. Liquidation Preference. (a) In the event of any liquidation, dissolution or winding-up of
the Corporation resulting in a payment or distribution

8

 

of assets to the holders of any class or series of the Capital Stock of the Corporation,
whether voluntary or involuntary, before any payment or distribution of the Corporation’s assets
(whether capital or surplus) shall be made to or set apart for the holders of Junior Stock, but
after any payments or distributions are made on any of the Corporation’s indebtedness and to
holders of Senior Stock, holders of Preferred Stock shall be entitled to receive $1,000 per share
of Preferred Stock (the “Liquidation Preference”) plus an amount equal to all dividends (whether or
not declared) accumulated and unpaid thereon, including liquidated damages, if any, to the date of
final payment or distribution to such holders, but shall not be entitled to any further payment or
other participation in any distribution of the assets of the Corporation. If, upon any
liquidation, dissolution or winding-up of the Corporation, whether voluntary or involuntary, the
Corporation’s assets, or proceeds thereof, distributable among the holders of Preferred Stock are
insufficient to pay in full the preferential amount aforesaid and liquidating payments on any
Parity Stock, then such assets, or the proceeds thereof, shall be distributed among the holders of
the Preferred Stock and any other Parity Stock equally and ratably in proportion to the respective
amounts that would be payable on such shares of Preferred Stock and any such other Parity Stock if
all amounts payable thereon were paid in full.

     (b) Neither the voluntary sale, conveyance, exchange or transfer, for cash, shares of stock,
securities or other consideration, of all or substantially all of the Corporation’s property or
assets, nor the consolidation, merger or amalgamation of the Corporation with or into any
corporation or the consolidation, merger or amalgamation of any corporation with or into the
Corporation shall be deemed to be a voluntary or involuntary liquidation, dissolution or winding-up
of the Corporation.

     (c) Subject to the rights of the holders of any Parity Stock, after payment has been made in
full to the holders of the Preferred Stock, as provided in this Section 5, holders of Junior Stock
shall, subject to the respective terms and provisions (if any) applying thereto, be entitled to
receive any and all assets remaining to be paid or distributed, and the holders of Preferred Stock
shall not be entitled to share therein.

     6. Mandatory Conversion. (a) At any time on or after April 5, 2010, the Corporation shall have
the right, at its option, to cause all Outstanding shares of the Preferred Stock to be
automatically converted into that number of whole shares of Common Stock at then prevailing
Conversion Rate, with any resulting fractional shares of Common Stock to be settled in accordance
with Section 8(d). The Corporation may exercise its right to cause a mandatory conversion pursuant
to this Section 6(a) only if the Closing Sale Price of the Common Stock equals or exceeds 130% of
the Conversion Price then in effect for at least 20 Trading Days in any period of 30 consecutive
Trading Days, including the last Trading Day of such 30-day period, ending on the Trading Day
immediately preceding the Corporation’s issuance of a press release announcing the mandatory
conversion as described in Section 6(b).

9

 

     (b) To exercise the mandatory conversion right described in Section 6(a), the Corporation must
issue a press release for publication on the Dow Jones News Service prior to the opening of
business on the first Trading Day following any date on which the conditions described in Section
6(a) are met, announcing such a mandatory conversion. The Corporation shall also give notice by
mail or by publication (with subsequent prompt notice by mail) to the holders of Preferred Stock,
or cause DTC to send notice to its participants that own Preferred Stock (which notice or
publication shall be given not more than four Business Days after the date of the press release),
of the mandatory conversion announcing the Corporation’s intention to convert the Preferred Stock.
The conversion date will be a date selected by the Corporation (the “Mandatory Conversion Date”)
and will be the earlier of (i) no more than five days after the date on which the Corporation
issues the press release described in this Section 6(b) and (ii) the date that such notice is sent
by DTC to its participants that own Preferred Stock.

     (c) In addition to any information required by applicable law or regulation, the press release
and notice of a mandatory conversion described in Section 6(b) shall state, as appropriate: (i) the
Mandatory Conversion Date; (ii) the number of shares of Common Stock to be issued upon conversion
of each share of Preferred Stock; (iii) the number of shares of Preferred Stock to be converted;
and (iv) that dividends on the Preferred Stock to be converted will cease to accrue on the
Mandatory Conversion Date.

     (d) On and after the Mandatory Conversion Date, dividends will cease to accrue on the
Preferred Stock called for a mandatory conversion pursuant to Section 6(a) and all rights of
holders of such Preferred Stock will terminate except for the right to receive the number of whole
shares of Common Stock issuable upon conversion thereof and cash, in lieu of any fractional shares
of Common Stock in accordance with Section 8(d). The dividend payment with respect to the Preferred
Stock for which the Mandatory Conversion Date occurs during the period commencing after the close
of business on any Dividend Record Date and ending at the close of business on the corresponding
Dividend Payment Date will be payable on such Dividend Payment Date to the record holder of such
share of Preferred Stock on such Dividend Record Date if such share has been converted after such
Dividend Record Date and prior to such Dividend Payment Date. Except as provided in the immediately
preceding sentence with respect to a mandatory conversion pursuant to Section 6(a), no payment or
adjustment will be made upon conversion of Preferred Stock for accumulated and unpaid dividends or
for dividends with respect to the Common Stock issued upon such conversion.

     (e) The Corporation may not authorize, issue a press release or give notice of any mandatory
conversion pursuant to Section 6(a) unless, prior to giving the conversion notice, all accumulated
and unpaid dividends on the Preferred Stock for Dividend Periods ended prior to the date of such
conversion notice shall have been paid in cash.

10

 

     7. Limited Optional Redemption of the Preferred Stock. Shares of Preferred Stock shall
be redeemable at the option of the Corporation in accordance with this Section 7.

     (a) The Corporation may, at its option, redeem all Outstanding shares of Preferred Stock, in
whole but not in part, at the Redemption Price, if, on or after April 5, 2010, (i) the Closing Sale
Price of the Common Stock for 20 Trading Days within a period of 30 consecutive Trading Days ending
on the Trading Day immediately preceding the date the Corporation gives notice of such redemption
pursuant to this Section 7 equals or exceeds the Conversion Price in effect on each such Trading
Day and (ii) the total number of Outstanding shares of Preferred Stock is less than 10% of the
total number of Outstanding shares of Preferred Stock on April 15, 2005.

     (b) In the event the Corporation elects to redeem shares of Preferred Stock pursuant to this
Section 7, the Corporation shall:

     (i) send a written notice to the Registrar and Transfer Agent of the Redemption Date,
stating that all Outstanding shares of Preferred Stock are to be redeemed and the
Redemption Price, at least 35 days before the Redemption Date (unless a shorter period
shall be satisfactory to the Registrar and Transfer Agent);

     (ii) send a written notice by first class mail to each holder of record of the
Preferred Stock at such holder’s registered address or if the Preferred Stock is held by
DTC or its nominee, request that DTC send a copy of such notice to its participants, not
fewer than 10 nor more than 30 days prior to the Redemption Date stating:

     (A) the Redemption Date;

     (B) the Redemption Price;

     (C) the Conversion Price and the Conversion Ratio;

     (D) the name and address of the Paying Agent and Conversion Agent;

     (E) that shares of Preferred Stock called for redemption may be converted at
any time before 5:00 p.m., New York City time on the Business Day immediately
preceding the Redemption Date;

     (F) that holders who want to convert shares of the Preferred Stock must
satisfy the requirements set forth in Section 8 of this Certificate;

11

 

     (G) that shares of the Preferred Stock called for redemption must be
surrendered to the Paying Agent to collect the Redemption Price;

     (H) that, unless the Corporation defaults in making payment of such Redemption
Price, dividends in respect of the shares of Preferred Stock called for redemption
will cease to accumulate on and after the Redemption Date;

     (I) the CUSIP number of the Preferred Stock; and

     (J) any other information the Corporation wishes to present; and

     (iii) (A) publish the information set forth in Section 7(b)(ii) once in a daily
newspaper printed in the English language and of general circulation in the Borough of
Manhattan, The City of New York, (B) issue a press release containing such information and
(C) publish such information on the Corporation’s web site on the World Wide Web.

     (c) The Redemption Price shall be payable in cash.

     (d) If the Corporation gives notice of redemption, then, by 12:00 p.m., New York City time, on
the Redemption Date, to the extent sufficient funds are legally available, the Corporation shall,
with respect to:

     (i) shares of the Preferred Stock held by DTC or its nominees, deposit or cause to be
deposited, irrevocably with DTC, cash sufficient to pay the Redemption Price and shall give
DTC irrevocable instructions and authority to pay the Redemption Price to holders of such
shares of the Preferred Stock; and

     (ii) shares of the Preferred Stock held in certificated form, deposit or cause to be
deposited, irrevocably with the Paying Agent cash sufficient to pay the Redemption Price
and shall give the Paying Agent irrevocable instructions and authority to pay the
Redemption Price to holders of such shares of the Preferred Stock upon surrender of their
certificates evidencing their shares of the Preferred Stock.

     (e) If on the Redemption Date, DTC and/or the Paying Agent holds or hold cash sufficient to
pay the Redemption Price for the shares of Preferred Stock delivered for redemption as set forth
herein, dividends shall cease to accumulate as of the Redemption Date on all Outstanding shares of
Preferred Stock and all rights of holders of such shares shall terminate, except for the right to
receive the Redemption Price pursuant to this Section 7.

     (f) Payment of the Redemption Price for shares of the Preferred Stock is conditioned upon
book-entry transfer of or physical delivery of certificates

12

 

representing the Preferred Stock,
together with necessary endorsements, to the Paying Agent, or the Paying Agent’s account at DTC, at
any time after delivery of the notice of redemption.

     (g) Payment of the Redemption Price for shares of the Preferred Stock will be made (1) on the
Redemption Date, if book-entry transfer of or physical delivery of the Preferred Stock has been
made by or on the Redemption Date, or (2) if book-entry transfer of or physical delivery of the
Preferred Stock has not been made by or on the Redemption Date, at the time of such transfer or
delivery.

     (h) If the Redemption Date falls after a Record Date and before the related Dividend Payment
Date, holders of the shares of Preferred Stock at the close of business on that Record Date shall
be entitled to receive the dividend payable on those shares on the corresponding Dividend Payment
Date. The Redemption Price payable on such Redemption Date will not include any amount in respect
of dividends declared or payable on such corresponding Dividend Payment Date.

     (i) Notwithstanding the foregoing provisions of this Section 7, unless full cumulative
dividends (whether or not declared) on all Outstanding shares of Preferred Stock have been paid or
set apart for payment for all Dividend Periods terminating before the date on which notice of a
redemption in accordance with Section 6(a) is sent in accordance with Section 6(b)(ii), none of the
shares of Preferred Stock shall be redeemed, and no sum shall be set aside for such redemption.

     8. Conversion. (a) Right to Convert. Each share of Preferred Stock shall be convertible, at
any time, in accordance with, and subject to, this Section 8 into a number of fully paid and
non-assessable shares of Common Stock equal to the Conversion Rate in effect at such time.
Notwithstanding the foregoing, if shares of Preferred Stock are to be redeemed pursuant to Section
7, such conversion right shall cease and terminate at 5:00 p.m., New York City time, on the
Business Day immediately preceding the Redemption Date as provided herein, unless the Corporation
shall default in the payment of the Redemption Price therefor.

     (b) Conversion Procedures. (i) Conversion of shares of the Preferred Stock may be effected by
any holder thereof upon the surrender to the Corporation, at the principal office of the
Corporation or at the office of the Conversion Agent as may be designated by the Board of
Directors, of the certificate or certificates for such shares of the Preferred Stock to be
converted accompanied by a complete and manually signed Notice of Conversion (as set forth in the
form of Preferred Stock certificate attached hereto as Exhibit A) along with (A) appropriate
endorsements and transfer documents as required by the Registrar or Conversion Agent and (B) if
required pursuant to Section 8(c), funds equal to the dividend payable on the next Dividend Payment
Date. In case such

13

 

Notice of Conversion shall specify a name or names other than that of such
holder, such notice shall be accompanied by payment of all transfer taxes payable upon the issuance
of shares of Common Stock in such name or names. Other than such taxes, the Corporation shall pay
any documentary, stamp or similar issue or transfer taxes that may be payable in respect of any
issuance or delivery of shares of Common Stock upon conversion of shares of the Preferred Stock
pursuant hereto. The conversion of the Preferred Stock will be deemed to have been made as of the
close of business on the date (the “Conversion Date”) such certificate or certificates have been
surrendered and the receipt of such Notice of Conversion and payment of all required transfer
taxes, if any (or the demonstration to the satisfaction of the Corporation that such taxes have
been paid). As promptly as practicable following the Conversion Date, the Corporation shall
deliver or cause to be delivered (1) certificates representing the whole number of validly issued,
fully paid and nonassessable full shares of Common Stock to which the holder of shares of the
Preferred Stock being converted (or such holder’s transferee) shall be entitled, and (2) if less
than the full number of shares of the Preferred Stock evidenced by the surrendered certificate or
certificates is being converted, a new certificate or certificates, of like tenor, for the number
of shares evidenced by such surrendered certificate or certificates less the number of shares being
converted, along with cash payment for any fractional shares. As of the close of business on the
Conversion Date, the rights of the holder of the Preferred Stock as to the shares being converted
shall cease except for the right to receive shares of Common Stock, and the Person entitled to
receive the shares of Common Stock shall be treated for all purposes as having become the record
holder of such shares of Common Stock at such time.

     (ii) Anything herein to the contrary notwithstanding, in the case of Global Preferred
Shares, Notices of Conversion may be delivered to, and shares of the Preferred Stock
representing beneficial interests in respect of such Global Preferred Shares shall be
surrendered for conversion in accordance with the applicable procedures of, the Depositary
as in effect from time to time.

     (c) Dividend and Other Payments Upon Conversion. (i) If a holder of shares of Preferred Stock
exercises conversion rights, such shares will cease to accumulate dividends as of the end of the
day immediately preceding the Conversion Date. On conversion of the Preferred Stock, except for
conversion during the period commencing on the close of business on any Record Date corresponding
to a Dividend Payment Date and ending at the close of business on the Business Day immediately
preceding such Dividend Payment Date, in which case the holder on such Dividend Record Date shall
receive the dividends payable on such Dividend Payment Date, a holder of Shares of Preferred Stock
will not be entitled to accumulated and unpaid dividends and liquidated damages, if any, on the
converted shares of Preferred Stock. Shares of the Preferred Stock surrendered for conversion
after the close of business on any Record Date for the payment of dividends declared and before the
opening of business on the

14

 

Dividend Payment Date corresponding to that Record Date must be
accompanied by a payment to the Corporation in cash of an amount equal to the dividend payable in
respect of those shares on such Dividend Payment Date; provided that a holder of shares of the
Preferred Stock on a Record Date who converts such shares into shares of Common Stock on the
corresponding Dividend Payment Date shall be entitled to receive the dividend payable on such
shares of the Preferred Stock on such Dividend Payment Date, and such holder need not include
payment to the Corporation of the amount of such dividend upon surrender of shares of the Preferred
Stock for conversion.

     (ii) Notwithstanding the preceding paragraph, if shares of the Preferred Stock are
converted during the period that commences after the close of business on any Record Date
and ends at the opening of business on the corresponding Dividend Payment Date and the
Corporation has called such shares of the Preferred Stock for redemption during such
period, or the Corporation has designated a Fundamental Change Redemption Date during such
period, then, in each case, the holder who tenders such shares for conversion shall receive
the dividend payable on such Dividend Payment Date and need not include payment of the
amount of such dividend upon surrender of shares of the Preferred Stock for conversion.

     (d) Fractional Shares. In connection with the conversion of any shares of the Preferred
Stock, no fractional shares of Common Stock shall be issued, but the Corporation shall pay a cash
adjustment in respect of any fractional interest in an amount equal to the fractional interest
multiplied by the Closing Sale Price of the Common Stock on the Conversion Date, rounded to the
nearest whole cent.

     (e) Total Shares. If more than one share of the Preferred Stock shall be surrendered for
conversion by the same holder at the same time, the number of whole shares of, and fractional
interests, if any, in, Common Stock issuable on conversion of those shares shall be computed on the
basis of the total number of shares of the Preferred Stock so surrendered.

     (f) Reservation of Shares; Shares to be Fully Paid; Compliance with Governmental Requirements;
Listing of Common Stock. The Corporation shall:

     (i) at all times reserve and keep available, free from preemptive rights, for issuance
upon the conversion of shares of the Preferred Stock such number of its authorized but
unissued shares of Common Stock as shall from time to time be sufficient to permit the
conversion of all Outstanding shares of the Preferred Stock;

     (ii) prior to the delivery of any securities that the Corporation shall be obligated
to deliver upon conversion of the Preferred Stock, comply with all applicable federal and
state laws and regulations that

15

 

require action to be taken by the Corporation (including,
without limitation, the registration or approval, if required, of any shares of Common
Stock to be provided for the purpose of conversion of the Preferred Stock hereunder); and

     (iii) ensure that all shares of Common Stock delivered upon conversion of the
Preferred Stock will, upon delivery, be duly and validly issued and fully paid and
nonassessable, free of all liens and charges and not subject to any preemptive rights.

     9. Make Whole Payment Upon the Occurrence of a Fundamental Change. (a) General. If a holder
exercises its right pursuant to Section 13 hereof to convert its Preferred Stock upon the
occurrence of a Fundamental Change that occurs prior to April 5, 2015, then in the circumstances
set forth in this Section 9, such holder will be entitled to receive, in addition to a number of
shares of Common Stock equal to the applicable Conversion Rate, an additional number of shares of
Common Stock of the Corporation (the “Additional Shares”) upon conversion as set forth in this
Section 9. The Corporation must give notice to all holders and to the Conversion Agent at least 15
Trading Days prior to the anticipated Effective Date. The Corporation must also give notice to all
holders and to the Conversion Agent that such Fundamental Change has become effective. Holders may
surrender Preferred Stock for conversion and receive the Additional Shares at any time from and
after the date that is 15 days prior to the anticipated Effective Date until and including the date
that is 15 days after the actual Effective Date (or, if such Fundamental Change also results in
holders having a right to require the Corporation to redeem its Preferred Stock in accordance with
Section 13 hereof, until the Fundamental Change Redemption Date).

     (b) Determination of Additional Shares. The number of Additional Shares shall be determined
for the Preferred Stock by reference to the table below, based on the date on which the transaction
constituting a Fundamental Change becomes effective (the “Effective Date”) and the average of the
Closing Sale Prices of Common Stock of the Corporation over the ten Trading Day period ending on
the fifth Trading Day immediately preceding the Effective Date (the “Stock Price”). If holders of
the Common Stock receive only cash in such transaction constituting a Fundamental Change, the Stock
Price shall be the cash amount paid per share. Otherwise, the Stock Price shall be the average of
the Closing Sale Prices of the Common Stock on the five Trading Days prior to but not including the
Effective Date of the transaction constituting the Fundamental Change.

     (i) The Stock Prices set forth in the first row of the table below (i.e., column
headers) will be adjusted as of any date on which the Conversion Rate of the Preferred
Stock is adjusted. The adjusted Stock Prices will equal the Stock Prices applicable
immediately prior to such adjustment, multiplied by a fraction, the numerator of which is
the

16

 

Conversion Rate immediately prior to the adjustment giving rise to the Stock Price
adjustment and the denominator of which is the Conversion Rate as so adjusted. The number
of Additional Shares will be adjusted in the same manner as the Conversion Rate as set
forth under Section 10 below.

     (ii) The following table sets forth the number of Additional Shares to be received per
$1,000 liquidation preference per share of Preferred Stock:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Price on the Effective Date	 
	Effective Date	 	$10.42	 	 	$11.00	 	 	$12.00	 	 	$13.00	 	 	$14.00	 	 	$15.00	 	 	$16.00	 	 	$17.00	 	 	$18.00	 	 	$19.00	 	 	$20.00	 	 	$25.00	 	 	$30.00	 	 	$35.00	 	 	$40.00	 
	April 15, 2005
	 	 	17.59	 	 	 	15.72	 	 	 	13.16	 	 	 	11.10	 	 	 	9.41	 	 	 	8.01	 	 	 	6.96	 	 	 	6.00	 	 	 	5.17	 	 	 	4.48	 	 	 	3.90	 	 	 	1.88	 	 	 	0.81	 	 	 	0.24	 	 	 	0.00	 
	April 5, 2006
	 	 	16.92	 	 	 	14.98	 	 	 	12.39	 	 	 	10.34	 	 	 	8.68	 	 	 	7.47	 	 	 	6.40	 	 	 	5.46	 	 	 	4.66	 	 	 	4.07	 	 	 	3.51	 	 	 	1.68	 	 	 	0.72	 	 	 	0.21	 	 	 	0.00	 
	April 5, 2007
	 	 	16.12	 	 	 	14.47	 	 	 	11.74	 	 	 	9.63	 	 	 	8.02	 	 	 	6.70	 	 	 	5.61	 	 	 	4.70	 	 	 	3.94	 	 	 	3.46	 	 	 	2.94	 	 	 	1.37	 	 	 	0.58	 	 	 	0.16	 	 	 	0.00	 
	April 5, 2008
	 	 	15.75	 	 	 	13.84	 	 	 	11.03	 	 	 	8.83	 	 	 	7.12	 	 	 	5.75	 	 	 	4.65	 	 	 	3.77	 	 	 	3.23	 	 	 	2.71	 	 	 	2.25	 	 	 	1.03	 	 	 	0.43	 	 	 	0.11	 	 	 	0.00	 
	April 5, 2009
	 	 	15.51	 	 	 	13.31	 	 	 	10.35	 	 	 	7.96	 	 	 	6.04	 	 	 	4.51	 	 	 	3.33	 	 	 	2.44	 	 	 	2.10	 	 	 	1.61	 	 	 	1.23	 	 	 	0.52	 	 	 	0.21	 	 	 	0.04	 	 	 	0.00	 
	April 5, 2010
	 	 	15.60	 	 	 	13.33	 	 	 	10.28	 	 	 	7.75	 	 	 	5.46	 	 	 	3.56	 	 	 	1.50	 	 	 	0.65	 	 	 	0.54	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	April 5, 2011
	 	 	15.46	 	 	 	13.07	 	 	 	10.08	 	 	 	7.47	 	 	 	5.27	 	 	 	3.12	 	 	 	1.39	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	April 5, 2012
	 	 	15.37	 	 	 	13.19	 	 	 	10.00	 	 	 	7.42	 	 	 	5.24	 	 	 	3.11	 	 	 	1.39	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	April 5, 2013
	 	 	15.22	 	 	 	13.32	 	 	 	9.85	 	 	 	7.31	 	 	 	5.15	 	 	 	3.06	 	 	 	1.37	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	April 5, 2014
	 	 	15.36	 	 	 	13.39	 	 	 	10.10	 	 	 	7.22	 	 	 	5.07	 	 	 	3.02	 	 	 	1.35	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	April 5, 2015
	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 

     (iii) The exact Stock Prices and Effective Dates may not be set forth in the
table above, in which case:

     (A) If the Stock Price is between two Stock Price amounts in the table or the
Effective Date is between two Effective Dates in the table, the number of
Additional Shares will be determined by a straight-line interpolation between the
number of Additional Shares set forth for the higher and lower Stock Price amounts
and the two dates, as applicable, based on a 365-day year.

     (B) If the Stock Price is equal to or in excess of $40.00 per share (subject
to adjustment), no Additional Shares will be issued upon conversion.

     (C) If the Stock Price is less than $10.42 per share (subject to adjustment),
no Additional Shares will be issued upon conversion.

     (iv) Notwithstanding the foregoing, in no event will the total number of shares of
Common Stock of the Corporation issuable upon conversion exceed 95.9693 per $1,000
liquidation preference per share of Preferred Stock, subject to adjustments in the same
manner of the Conversion Rate as set forth under Section 10 below.

17

 

     (v) Notwithstanding the foregoing, in the case of a Public Acquirer Fundamental
Change, the Corporation may, in lieu of increasing the Conversion Rate by Additional Shares
as described above in this Section 9, elect to adjust the Conversion Rate and the related
conversion obligation such that, from and after the Effective Date of such Public Acquirer
Fundamental Change, holders of the Preferred Stock who elect to convert will be entitled to
convert their Preferred Stock into a number of shares of Public Acquirer Common Stock that
have been registered, or the resale of which will be registered, under the Securities Act,
if required, by multiplying the Conversion Rate in effect immediately before the Public
Acquirer Fundamental Change by a fraction,

     (A) the numerator of which will be (i) in the case of a consolidation, merger
or binding share exchange, pursuant to which the Common Stock of the Corporation is
converted into or exchanged for the right to receive cash, securities or other
property, the value of all cash and any other consideration (as determined by the
Board of Directors) paid or payable per share of Common Stock or (ii) in the case
of any other Public Acquirer Fundamental Change, the average of the Closing Sale
Price of Common Stock of the Corporation for the five consecutive Trading Days
prior to but excluding the Effective Date of such Public Acquirer Fundamental
Change; and

     (B) the denominator of which will be the average of the last Closing Sale
Price of the Public Acquirer Common Stock for the five consecutive Trading Days
commencing on the Trading Day next succeeding the effective date of such Public
Acquirer Fundamental Change.

Upon the Corporation’s decision to adjust the Conversion Rate and related
conversion obligation upon a Public Acquirer Fundamental Change, holders may
convert their Preferred Stock at the adjusted Conversion Rate described in this
Section 9(b)(v) but will not be entitled to the Additional Shares as described in
this Section 9. The registered shares of Public Acquirer Common Stock, or the
shares of Public Acquirer Common Stock registered for resale, as the case may be,
shall be listed, or approved for listing subject only to the official notice of
issuance, on a national securities exchange or the Nasdaq National Market. Upon a
Public Acquirer Fundamental Change, shares of Public Acquirer Common Stock shall be
subject to the conversion adjustments in Section 10 hereof.

     (vi) In the event the Corporation elects to adjust the Conversion Rate as set forth in
Section 9(b)(v), then the Corporation shall not enter into any transaction which would
result in a Public Acquirer Fundamental Change unless, as a term of such transaction, the
acquirer irrevocably

18

 

commits itself to implement the provisions of Section 9(b)(v) in respect of such
Public Acquirer Fundamental Change.

     10. Conversion Rate Adjustments. The Conversion Rate shall be adjusted from time to time by
the Corporation in accordance with the provisions of this Section 10.

     (a) If the Corporation shall hereafter pay a dividend or make a distribution to all holders of
the outstanding Common Stock in shares of Common Stock, the Conversion Rate in effect at the
opening of business on the date following the Record Date shall be increased by multiplying such
Conversion Rate by a fraction,

     (i) the numerator of which shall be the sum of the number of shares of Common Stock
outstanding at the close of business on such Record Date and the total number of shares of
Common Stock constituting such dividend or other distribution; and

     (ii) the denominator of which shall be the number of shares of Common Stock
outstanding at the close of business on such Record Date.

Such increase shall become effective immediately after the opening of business on the day following
such Record Date. If any dividend or distribution of the type described in this Section 10(a) is
declared but not so paid or made, the Conversion Rate shall again be adjusted to the Conversion
Rate that would then be in effect if such dividend or distribution had not been declared.

     (b) If the Corporation shall issue rights or warrants to all holders of any class of Common
Stock entitling them (for a period expiring within forty-five (45) days after the Record Date) to
subscribe for or purchase shares of Common Stock (or securities convertible into Common Stock) at a
price per share (or having a conversion price per share) less than the Current Market Price on the
Record Date, the Conversion Rate shall be adjusted so that the same shall equal the rate determined
by multiplying the Conversion Rate in effect immediately prior to such Record Date by a fraction,

     (i) the numerator of which shall be the number of shares of Common Stock outstanding
at the close of business on such Record Date plus the total number of shares of Common
Stock so offered for subscription or purchase (or into which the convertible securities so
offered are convertible); and

     (ii) the denominator of which shall be the number of shares of Common Stock
outstanding at the close of business on such Record Date plus the number of shares which
the aggregate offering price of the total number of shares so offered for subscription or
purchase (or the aggregate conversion price of the convertible securities so offered) would
purchase at such Current Market Price.

19

 

Such adjustment shall become effective immediately after the opening of business on the day
following such Record Date. To the extent that shares of Common Stock (or securities
convertible into Common Stock) are not delivered pursuant to such rights or warrants, upon
the expiration or termination of such rights or warrants, the Conversion Rate shall be
readjusted to the Conversion Rate that would then be in effect had the adjustment made upon
the issuance of such rights or warrants been made on the basis of delivery of only the
number of shares of Common Stock (or securities convertible into Common Stock) actually
delivered. If such rights or warrants are not so issued, the Conversion Rate shall again
be adjusted to be the Conversion Rate that would then be in effect if such Record Date had
not been fixed. In determining whether any rights or warrants entitle the holders to
subscribe for or purchase shares of Common Stock at less than such Current Market Price,
and in determining the aggregate offering price of such shares of Common Stock, there shall
be taken into account any consideration received by the Corporation for such rights or
warrants and any amount payable on exercise or conversion thereof, the Fair Market Value of
such consideration, if other than cash, to be determined by the Board of Directors, whose
determination shall be conclusive. Notwithstanding the foregoing, no adjustment shall be
made to the Conversion Rate pursuant to this Section 10(b) for the rights of holders of
Common Stock to participate in any dividend reinvestment plan in existence on April 11,
2005 and made available to all holders of Common Stock or the employee stock purchase plan
to be effective in July 2005, or the purchase of Common Stock pursuant to any such plan.

     (c) If the outstanding shares of Common Stock shall be subdivided into a greater number of
shares of Common Stock, the Conversion Rate in effect at the opening of business on the day
following the day upon which such subdivision becomes effective shall be proportionately increased,
and conversely, in the event outstanding shares of Common Stock shall be combined into a smaller
number of shares of Common Stock, the Conversion Rate in effect at the opening of business on the
day following the day upon which such combination becomes effective shall be proportionately
reduced, such increase or reduction, as the case may be, to become effective immediately after the
opening of business on the day following the day upon which such subdivision or combination becomes
effective.

     (d) If the Corporation shall, by dividend or otherwise, distribute to all holders of its
Common Stock shares of any class of Capital Stock of the Corporation (other than any dividends or
distributions to which Section 10(a) applies) or evidences of its indebtedness or assets (including
securities, but excluding (i) any rights or warrants referred to in 10(b) or (ii) any dividend or
distribution (x) paid exclusively in cash or (y) referred to in Section 10(a) or Section 10(g) (any
of the foregoing hereinafter referred to in this Section 10(d) as the “Distributed Property”),
then, in each such case, the Conversion Rate shall

20

 

be adjusted so that the same shall be equal to the rate determined by multiplying the
Conversion Rate in effect on the Record Date with respect to such distribution by a fraction,

     (iii) the numerator of which shall be the Current Market Price on such Record Date;
and

     (iv) the denominator of which shall be the Current Market Price on such Record Date
less the Fair Market Value (as determined by the Board of Directors, whose determination
shall be conclusive, and described in a resolution of the Board of Directors) on such
Record Date of the portion of the Distributed Property applicable to one share of Common
Stock (determined on the basis of the number of shares of the Common Stock outstanding on
such Record Date).

Such adjustment shall become effective immediately prior to the opening of business on the day
following such Record Date; provided that if the then Fair Market Value (as so determined by the
Board of Directors) of the portion of the Distributed Property applicable to one share of Common
Stock is equal to or greater than the Current Market Price on the Record Date, in lieu of the
foregoing adjustment, adequate provision shall be made so that each holder of Preferred Stock shall
have the right to receive upon conversion the amount of Distributed Property such holder would have
received had such holder converted each share of its Preferred Stock on the Record Date. To the
extent that any of the Distributed Property is not distributed, the Conversion Rate shall be
readjusted to the Conversion Rate that would then be in effect had the adjustment made been made on
the basis of only the Distributed Property actually distributed. If such dividend or distribution
is not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that
would then be in effect if such dividend or distribution had not been declared. If the Board of
Directors determines the Fair Market Value of any distribution for purposes of this Section 10(d)
by reference to the trading market for any securities, it must in doing so consider the prices in
such market over the same period used in computing the Current Market Price on the applicable
Record Date.

     Subject to the provisions of Section 12 hereof, rights or warrants (including rights under any
Rights Plan) distributed by the Corporation to all holders of Common Stock entitling the holders
thereof to subscribe for or purchase shares of the Corporation’s Capital Stock (either initially or
under certain circumstances), which rights or warrants, until the occurrence of a specified event
or events (“Trigger Event”): (i) are deemed to be transferred with such shares of Common Stock;
(ii) are not exercisable; and (iii) are also issued in respect of future issuances of Common Stock,
shall be deemed not to have been distributed for purposes of this Section 10(d) (and no adjustment
to the Conversion Rate under this Section 10(d) will be required) until the occurrence of the
earliest Trigger Event, whereupon such rights and warrants shall be deemed to have been distributed
and an appropriate adjustment (if any is required) to the Conversion

21

 

Rate shall be made under this Section 10(d). If any such right or warrant, including any such
existing rights or warrants distributed prior to the date of this Certificate, are subject to
events, upon the occurrence of which such rights or warrants become exercisable to purchase
different securities, evidences of indebtedness or other assets, then the date of the occurrence of
any and each such event shall be deemed to be the date of distribution and record date with respect
to new rights or warrants with such rights (and a termination or expiration of the existing rights
or warrants without exercise by any of the holders thereof). In addition, in the event of any
distribution (or deemed distribution) of rights or warrants, or any Trigger Event or other event
(of the type described in the preceding sentence) with respect thereto that was counted for
purposes of calculating a distribution amount for which an adjustment to the Conversion Rate under
this Section 10(d) was made, (1) in the case of any such rights or warrants that shall all have
been redeemed or repurchased without exercise by any holders thereof, the Conversion Rate shall be
readjusted upon such final redemption or repurchase to give effect to such distribution or Trigger
Event, as the case may be, as though it were a cash distribution, equal to the per share redemption
or repurchase price received by a holder or holders of Common Stock with respect to such rights or
warrants (assuming such holder had retained such rights or warrants), made to all holders of Common
Stock as of the date of such redemption or repurchase, and (2) in the case of such rights or
warrants that shall have expired or been terminated without exercise thereof, the Conversion Rate
shall be readjusted as if such expired or terminated rights and warrants had not been issued.

     For purposes of this Section 10(d), Section 10(a) and Section 10(b), any dividend or
distribution to which this Section 10(d) is applicable that also includes shares of Common Stock,
or rights or warrants to subscribe for or purchase shares of Common Stock (or both), shall be
deemed instead to be (1) a dividend or distribution of the evidences of indebtedness, assets or
shares of Capital Stock other than such shares of Common Stock or rights or warrants, as to which
any Conversion Rate adjustment required by this Section 10(d) with respect to such dividend or
distribution shall then be made, immediately followed by (2) a dividend or distribution of such
shares of Common Stock or such rights or warrants, as to which any further Conversion Rate
adjustment required by Sections 10(a) and 10(b) with respect to such dividend or distribution shall
then be made, except any shares of Common Stock included in such dividend or distribution shall not
be deemed “outstanding at the close of business on such Record Date” within the meaning of Sections
10(a) and 10(b).

     (e) If the Corporation shall, by dividend or otherwise, distribute to all holders of its
Common Stock cash, excluding (i) any dividend or distribution in connection with the liquidation,
dissolution or winding-up of the Corporation, whether voluntary or involuntary, (ii) any quarterly
cash dividend on its Common Stock to the extent that the aggregate amount of cash distributions per
share of Common Stock in any quarter does not exceed $0.04 (the “Dividend Threshold Amount”), then,
in such case, the Conversion Rate shall be increased so that

22

 

the same shall equal the rate determined by multiplying the Conversion Rate in effect
immediately prior to the close of business on such Record Date by a fraction,

     (iii) the numerator of which shall be the Current Market Price on such Record Date
less the Dividend Threshold Amount (as such Dividend Threshold Amount may be adjusted
pursuant to this Section 10(e)); and

     (iv) the denominator of which shall be the Current Market Price on such Record Date
less the amount of cash so distributed applicable to one share of Common Stock.

Such adjustment shall be effective immediately prior to the opening of business on the day
following the Record Date; provided that if the portion of the cash so distributed applicable to
one share of Common Stock is equal to or greater than the Current Market Price on the Record Date,
in lieu of the foregoing adjustment, adequate provision shall be made so that each holder of
Preferred Stock shall have the right to receive upon conversion the amount of cash such holder
would have received had such holder converted each share of Preferred Stock on the Record Date. To
the extent that such dividend or distribution is not made, the Conversion Rate shall be readjusted
to the Conversion Rate that would then be in effect had the adjustment made been made on the basis
of only the dividend or distribution actually made. If such dividend or distribution is not so
paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then
be in effect if such dividend or distribution had not been declared. If an adjustment is required
to be made as set forth in this Section 10(e) as a result of a distribution that is not a quarterly
dividend, the Dividend Threshold Amount shall be deemed to be zero for purposes of calculating the
adjustment to the Conversion Rate under this Section 10(e). The Dividend Threshold Amount shall be
adjusted inversely proportional to the adjustments to the Conversion Rate made pursuant to Sections
10(a), (b), (c),(d),(f) and (g) hereof.

     (f) If a tender or exchange offer made by the Corporation or any Subsidiary for all or any
portion of the Common Stock shall require the payment (other than payments made under the
Corporation’s “odd-lot” sale program in existence on April 11, 2005) to stockholders of
consideration per share of Common Stock having a Fair Market Value (as determined by the Board of
Directors, whose determination shall be conclusive and described in a resolution of the Board of
Directors) that, as of the last time (the “Expiration Time”) tenders or exchanges may be made
pursuant to such tender or exchange offer, exceeds the Closing Sale Price of a share of Common
Stock on the Trading Day next succeeding the Expiration Time, the Conversion Rate shall be
increased so that the same shall equal the rate determined by multiplying the Conversion Rate in
effect immediately prior to the Expiration Time by a fraction,

23

 

     (i) the numerator of which shall be the sum of (x) the Fair Market Value (determined
as aforesaid) of the aggregate consideration payable to stockholders based on the
acceptance (up to any maximum specified in the terms of the tender or exchange offer) of
all shares validly tendered or exchanged and not withdrawn as of the Expiration Time (the
shares deemed so accepted up to any such maximum, being referred to as the “Purchased
Shares”) and (y) the product of the number of shares of Common Stock outstanding (less any
Purchased Shares) at the Expiration Time and the Closing Sale Price of a share of Common
Stock on the Trading Day next succeeding the Expiration Time; and

     (ii) the denominator of which shall be the number of shares of Common Stock
outstanding (including any Purchased Shares) at the Expiration Time multiplied by the
Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the
Expiration Time.

Such adjustment shall become effective immediately prior to the opening of business on the day
following the Expiration Time. In the event that the Corporation or any such Subsidiary, as the
case may be, is obligated to purchase shares pursuant to any such tender or exchange offer, but the
Corporation or any such Subsidiary, as the case may be, is permanently prevented by applicable law
from effecting any such purchases or all such purchases are rescinded, the Conversion Rate shall
again be adjusted to be the Conversion Rate that would then be in effect if such tender or exchange
offer had not been made.

     (g) If the Corporation pays a dividend or makes a distribution to all or substantially all
holders of its Common Stock consisting of Capital Stock of any class or series, or similar equity
interests, of or relating to a Subsidiary or other business unit of the Corporation, unless the
Corporation distributes such Capital Stock or equity interests to holders of the Preferred Stock in
such distribution on the same basis as they would have received had such holders converted their
shares of Preferred Stock into shares of Common Stock immediately prior to such distributions, the
Conversion Rate shall be increased so that the same shall be equal to the rate determined by
multiplying the Conversion Rate in effect on the Record Date with respect to such distribution by a
fraction,

     (i) the numerator of which shall be the sum of (A) the average of the Closing Sale
Prices of the Common Stock for the ten (10) Trading Days commencing on and including the
fifth Trading Day after the date on which “ex-dividend trading” commences for such dividend
or distribution on The New York Stock Exchange or such other national or regional exchange
or market on which such securities are then listed or quoted (the “Ex-Dividend Date”) plus
(B) the Fair Market Value of the securities distributed in respect of each share of Common
Stock, which shall equal the number of securities distributed in respect of each share of
Common Stock multiplied by the average of the Closing Sale Prices of those

24

 

distributed securities for the ten (10) Trading Days commencing on and including the
fifth Trading Day after the Ex-Dividend Date; and

     (ii) the denominator of which shall be the average of the Closing Sale Prices of the
Common Stock for the ten (10) Trading Days commencing on and including the fifth Trading
Day after the Ex-Dividend Date.

Such adjustment shall become effective immediately prior to the opening of business on the day
following the fifteenth Trading Day after the Ex-Dividend Date.

     (h) To the fullest extent permitted by law, the Corporation may make such increases in the
Conversion Rate in addition to those required by this Section 10 as the Board of Directors
considers to be advisable to avoid or diminish any income tax to holders of Common Stock or rights
to purchase Common Stock resulting from any dividend or distribution of stock (or rights to acquire
stock) or from any event treated as such for income tax purposes. To the fullest extent permitted
by applicable law, the Corporation from time to time may increase the Conversion Rate by any amount
for any period of time if the period is at least 20 days and the increase is irrevocable during the
period and the Board of Directors determines in good faith that such increase would be in the best
interest of the Corporation, which determination shall be conclusive. Whenever the Conversion Rate
is increased pursuant to the preceding sentence, the Corporation shall mail to each holder of the
Preferred Stock at the address of such holder as it appears in the stock register a notice of the
increase at least 15 days prior to the date the increased Conversion Rate takes effect, and such
notice shall state the increased Conversion Rate and the period during which it will be in effect.

     (i) No adjustment in the Conversion Rate (other than any adjustment pursuant to Section 10(e)
above) shall be required unless such adjustment would require an increase or decrease of at least
one percent (1%) in the Conversion Rate then in effect; provided, however, that any adjustments
that by reason of this Section 10(i) are not required to be made shall be carried forward and taken
into account in any subsequent adjustment. All calculations under this Section 10 shall be made by
the Corporation and shall be made to the nearest cent or to the nearest one-ten thousandth
(1/10,000) of a share, as the case may be. No adjustment need be made, except as set forth in this
Section 10, for any issuance of Common Stock or securities convertible, exercisable or exchangeable
into Common Stock. To the extent the Preferred Stock becomes convertible into cash, assets,
property or securities (other than Capital Stock of the Corporation), subject to Section 11, no
adjustment need be made thereafter to the Conversion Rate. Interest will not accrue on any cash
into which the Preferred Stock may be convertible.

25

 

     (j) Whenever the Conversion Rate is adjusted as herein provided (except for adjustments
pursuant to Section 10(e) hereof that in the aggregate are less than 1%), the Corporation shall
promptly file with the Conversion Agent an Officer’s certificate setting forth the Conversion Rate
after such adjustment and setting forth a brief statement of the facts requiring such adjustment.
Unless and until a responsible officer of the Conversion Agent shall have received such Officer’s
certificate, the Conversion Agent shall not be deemed to have knowledge of any adjustment of the
Conversion Rate and may assume that the last Conversion Rate of which it has knowledge is still in
effect. Promptly after delivery of such certificate, the Corporation shall prepare a notice of
such adjustment of the Conversion Rate setting forth the adjusted Conversion Rate and the date on
which each adjustment becomes effective and shall mail such notice of such adjustment of the
Conversion Rate to each holder of Preferred Stock at its last address appearing in the stock
register within twenty (20) days after execution thereof. Failure to deliver such notice shall not
affect the legality or validity of any such adjustment.

     (k) For purposes of this Section 10, the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the Corporation, unless such treasury
shares participate in any distribution or dividend that requires an adjustment pursuant to this
Section 10, but shall include shares issuable in respect of scrip certificates issued in lieu of
fractions of shares of Common Stock.

     11. Effect of Reclassification, Consolidation, Merger or Sale on Conversion Privilege. (a) If
any of the following events occur, namely (i) any reclassification or change of the outstanding
shares of Common Stock (other than a subdivision or combination to which Section 10(c) applies),
(ii) any consolidation, merger or combination of the Corporation with another Person as a result of
which holders of Common Stock shall be entitled to receive stock, other securities or other
property or assets (including cash) with respect to or in exchange for such Common Stock, or (iii)
any sale or conveyance of all or substantially all of the properties and assets of the Corporation
to any other Person as a result of which holders of Common Stock shall be entitled to receive
stock, other securities or other property or assets (including cash) with respect to or in exchange
for such Common Stock, then each share of Preferred Stock Outstanding immediately prior to such
transaction shall be convertible into the kind and amount of shares of stock, other securities or
other property or assets (including cash) receivable upon such reclassification, change,
consolidation, merger, combination, sale or conveyance by a holder of a number of shares of Common
Stock issuable upon conversion of such Preferred Stock (assuming, for such purposes, a sufficient
number of authorized shares of Common Stock are available to convert all such Preferred Stock)
immediately prior to such reclassification, change, consolidation, merger, combination, sale or
conveyance assuming such holder of Common Stock did not exercise his rights of election, if any, as
to the kind or amount of stock, other securities or other property or assets (including cash)
receivable upon such reclassification, change, consolidation,

26

 

merger, combination, sale or conveyance (provided that, if the kind or amount of stock, other
securities or other property or assets (including cash) receivable upon such reclassification,
change, consolidation, merger, combination, sale or conveyance is not the same for each share of
Common Stock in respect of which such rights of election shall not have been exercised
(“non-electing share”), then for the purposes of this Section 11 the kind and amount of stock,
other securities or other property or assets (including cash) receivable upon such
reclassification, change, consolidation, merger, combination, sale or conveyance for each
non-electing share shall be deemed to be the kind and amount so receivable per share by a plurality
of the non-electing shares). However, if the Corporation elects to adjust the Conversion Rate and
the related conversion obligation in accordance with Section 9(b)(v) hereof, the foregoing sentence
will not be applicable.

     (b) The Corporation shall cause notice of the application of this Section 11 to be delivered
to each holder of the Preferred Stock at the address of such holder as it appears in the stock
register within twenty (20) days after the occurrence of any of the events specified in Section
11(a) and shall issue a press release containing such information and publish such information on
its web site on the World Wide Web. Failure to deliver such notice shall not affect the legality
or validity of any conversion right pursuant to this Section 11.

     (c) The above provisions of this Section 11 shall similarly apply to successive
reclassifications, changes, consolidations, mergers, combinations, sales and conveyances, and the
provisions of Section 10 shall apply to any shares of Capital Stock received by the holders of
Common Stock in any such reclassification, change, consolidation, merger, combination, sale or
conveyance; provided that if this Section 11 applies to any event or occurrence, Section 10 shall
not apply to such event or occurrence.

     12. Rights Issued in Respect of Common Stock Issued Upon Conversion. Each share of Common
Stock issued upon conversion of the Preferred Stock shall be entitled to receive the appropriate
number of common stock or preferred stock purchase rights, as the case may be, including without
limitation, the rights under the Rights Plan (collectively, the “Rights”), if any, that shares of
Common Stock are entitled to receive and the certificates representing the Common Stock issued upon
such conversion shall bear such legends, if any, in each case as may be provided by the terms of
any shareholder rights agreement adopted by the Corporation, as the same may be amended from time
to time (in each case, a “Rights Plan”). If such Rights Plan requires that each share of Common
Stock issued upon conversion of the Preferred Stock at any time prior to the distribution of
separate certificates representing the Rights be entitled to receive such Rights, then,
notwithstanding anything else to the contrary in this Certificate, there shall not be any
adjustment to the conversion privilege or Conversion Rate as a result of the issuance of Rights,
but an adjustment to the Conversion Rate shall be made pursuant to Section 10(d) upon the
separation of the Rights from the Common Stock, provided that no

27

 

adjustment to the Conversion Rate shall be made pursuant to Section 10(d) upon such separation
if (a) at the time of separation the Corporation sets aside for issuance upon conversion of the
Preferred Stock a number of rights equal to the rights the holders of Preferred Stock would have
received if the conversion occurred immediately prior such separation and (b) the rights so set
aside are perpetual in duration.

     13. Fundamental Change that Requires the Corporation to Redeem Shares of Preferred Stock at
the Option of the Holder.

     (a) Redemption Right. Subject to legally available funds, if there shall occur a Fundamental
Change prior to April 1, 2015, shares of Preferred Stock that remain Outstanding after a
Fundamental Change shall be redeemed, subject to satisfaction by or on behalf of any holder of the
requirements set forth in Section 13(d), by the Corporation at the option of the holders thereof as
of the date specified by the Corporation (the “Fundamental Change Redemption Date”) that is not
more than 30 calendar days (or the next succeeding Business Day if such 30th calendar
day is not a Business Day) after the mailing of written notice of the Fundamental Change pursuant
to Section 13(c) below. The Redemption Price shall be paid, subject to legally available funds, in
cash.

     (b) Limitation on Fundamental Change Redemption Right. Holders of shares of Preferred Stock
shall not have the right to require the Corporation to repurchase shares of Preferred Stock upon a
Fundamental Change unless and until the Board of Directors has approved such Fundamental Change or
elected to take a neutral position with respect to such Fundamental Change.

     (c) Notice to Holders. Within 30 calendar days after the occurrence of a Fundamental Change,
the Corporation shall (i) mail a written notice of the Fundamental Change to each holder at the
address of such holder as it appears in the stock register and to beneficial owners (as required by
applicable law) or (ii) cause DTC to send a notice to its participants that own Preferred Stock
(and issue a press release containing such notice and publish such notice on its web site on the
World Wide Web). The Corporation shall also deliver a copy of the notice to the Transfer Agent.
The notice shall include the form of a Fundamental Change Redemption Notice (as defined in Section
13(d) below) to be completed by the holder and shall state:

     (i) the date of such Fundamental Change and, briefly, the events causing such
Fundamental Change;

     (ii) the date by which the Fundamental Change Redemption Notice pursuant to this
Section 13 must be given;

     (iii) the Fundamental Change Redemption Date;

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     (iv) the Redemption Price that will be payable with respect to the shares of Preferred
Stock that remain Outstanding after such Fundamental Change as of the Fundamental Change
Redemption Date;

     (v) the name and address of each Paying Agent and Conversion Agent;

     (vi) the Conversion Rate and any adjustments thereto;

     (vii) that Preferred Stock that remains Outstanding after such Fundamental Change as
to which a Fundamental Change Event Redemption Notice has been given may be converted into
Common Stock pursuant to this Certificate only to the extent that the Fundamental Change
Redemption Notice has been withdrawn in accordance with the terms of this Certificate;

     (viii) the procedures that the holder of Preferred Stock must follow to exercise
rights under this Section 13; and

     (ix) the procedures for withdrawing a Fundamental Change Redemption Notice, including
a form of notice of withdrawal.

If any of the Preferred Stock that remains Outstanding after such Fundamental Change is in the form
of Global Preferred Shares, then the Corporation shall modify such notice to the extent necessary
to accord with the procedures of the Depositary applicable to the redemption of Global Preferred
Shares.

     (d) Conditions to Redemption. (i) Subject to legally available funds, a holder of shares of
Preferred Stock that remain Outstanding after a Fundamental Change may exercise its rights
specified in Section 13(a) upon delivery of a written notice (which shall be in substantially the
form included as Exhibit B to this Certificate and which may be delivered by letter, overnight
courier, hand delivery, facsimile transmission or in any other written form and, in the case of
Global Preferred Shares, may be delivered electronically or by other means in accordance with the
Depositary’s customary procedures) of the exercise of such rights (a “Fundamental Change Redemption
Notice”) to the Transfer Agent at any time prior to the close of business on the Business Day
immediately before the Fundamental Change Redemption Date. The Fundamental Change Redemption
Notice must specify (A) if certificated shares of Preferred Stock have been issued, the certificate
numbers for such shares in respect of which such notice is being submitted, or if not, such
information as may be required by the Depositary, (B) the number of shares of Preferred Stock, with
respect to which such notice is being submitted; and (C) that the Corporation shall redeem such
Preferred Stock in accordance with the applicable provisions of this Certificate and the Amended
and Restated Certificate of Incorporation. The Transfer Agent shall promptly notify the
Corporation of the receipt of any Fundamental Change Redemption Notice.

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     (ii) The delivery of such shares of Preferred Stock to be redeemed by the Corporation
to the Transfer Agent (together with all necessary endorsements) at the office of the
Transfer Agent, or the book-entry transfer of such shares, shall be a condition to the
receipt by the holder of the Redemption Price.

     (iii) Any redemption by the Corporation contemplated pursuant to the provisions of
this Section 13(d) shall be consummated by the delivery of the consideration to be received
by the holder promptly following the later of the Fundamental Change Redemption Date and
the time of delivery of such share of Preferred Stock to the Transfer Agent in accordance
with this Section 13(d).

     (e) Withdrawal of Fundamental Change Redemption Notice. Notwithstanding anything herein to
the contrary, any holder of Preferred Stock that remains Outstanding after a Fundamental Change
delivering to the Transfer Agent the Fundamental Change Redemption Notice shall have the right to
withdraw such Fundamental Change Redemption Notice in whole or in part at any time prior to the
close of business on the Business Day immediately preceding the Fundamental Change Redemption Date
by delivery of a written notice of withdrawal to the Transfer Agent specifying:

     (i) if certificated shares of Preferred Stock have been issued, the certificate
numbers for such shares in respect of which such notice of withdrawal is being submitted,
or if not, such information as may be required by the Depositary;

     (ii) the number of shares of Preferred Stock, with respect to which such notice of
withdrawal is being submitted; and

     (iii) the number of shares of Preferred Stock, if any, that remain subject to the
original Fundamental Change Redemption Notice and that have been or will be delivered for
redemption by the Corporation.

The Transfer Agent shall promptly notify the Corporation of the receipt of any written notice of
withdrawal of a Fundamental Change Redemption Notice. The Transfer Agent will promptly return to
the respective holders thereof any shares of Preferred Stock with respect to which a Fundamental
Change Redemption Notice has been withdrawn in compliance with this Certificate.

     (f) Global Preferred Shares. Anything herein to the contrary notwithstanding, in the case of
Global Preferred Shares, any Fundamental Change Redemption Notice may be delivered or withdrawn,
and the shares of Preferred Stock that remain Outstanding after a Fundamental Change in respect of
such Global Preferred Shares may be surrendered or delivered for redemption, in accordance with the
applicable procedures of the Depositary as in effect from time to time.

30

 

     (g) Effect of Fundamental Change Redemption Notice. Upon receipt by the Transfer Agent of the
Fundamental Change Redemption Notice, the holder of the shares of Preferred Stock in respect of
which such Fundamental Change Redemption Notice was given shall (unless such Fundamental Change
Redemption Notice is withdrawn as specified above) thereafter be entitled, subject to legally
available funds, to receive the Redemption Price with respect to such shares of Preferred Stock,
subject to 13(d) hereof. Such Redemption Price shall be paid, subject to legally available funds,
to such holder promptly on the later of (a) the Fundamental Change Redemption Date with respect to
such shares of Preferred Stock and (b) the time of delivery or book-entry transfer of such shares
of Preferred Stock to the Transfer Agent by the holder thereof in the manner required by this
Section 13. Shares of Preferred Stock in respect of which a Fundamental Change Redemption Notice
has been given by the holder thereof may not be converted into Common Stock on or after the date of
the delivery of such Fundamental Change Redemption Notice unless such Fundamental Change Redemption
Notice has first been validly withdrawn as specified in Section 13(e) above.

     (h) Deposit of Redemption Price. Prior to 11:00 a.m. (New York City time) on the Fundamental
Change Redemption Date, the Corporation shall, subject to legally available funds, deposit with the
Paying Agent an amount of cash (in immediately available funds if deposited on such Business Day),
sufficient to pay the aggregate Redemption Price of all shares of Preferred Stock that remain
Outstanding after a Fundamental Change or portions thereof which are to be redeemed as of the
Fundamental Change Redemption Date. The manner in which the deposit required by this Section 13(h)
is made by the Corporation shall be at the option of the Corporation, provided, however, that such
deposit shall be made in a manner such that the Paying Agent shall have immediately available funds
on the Fundamental Change Redemption Date. If the Paying Agent holds, on the Business Day
following the Fundamental Change Redemption Date, cash sufficient to pay the Redemption Price of
any share of Preferred Stock for which a Fundamental Change Redemption Notice has been tendered and
not withdrawn in accordance with this Section 13(e), then, immediately after such Fundamental
Change Redemption Date, such share of Preferred Stock (whether or not book-entry transfer of the
shares of Preferred Stock is made or whether or not the certificates representing the shares of
Preferred Stock are delivered to the Transfer Agent) will cease to be Outstanding, dividends will
cease to accrue and all other rights of the holder in respect thereof shall terminate (other than
the right to receive the Redemption Price as aforesaid). The Corporation shall publicly announce
the number of shares of Preferred Stock redeemed as a result of such Fundamental Change on or as
soon as practicable after the Fundamental Change Redemption Date.

     (i) Preferred Stock Redeemed in Part. Upon surrender of a certificate or certificates
representing shares of the Preferred Stock that remain Outstanding after a Fundamental Change that
is or are redeemed in part, the Corporation shall execute, and the Transfer Agent shall
authenticate and deliver

31

 

to the holder, a new certificate or certificates representing shares of the Preferred Stock in
an amount equal to the unredeemed portion of the shares of Preferred Stock surrendered for partial
redemption.

     (j) Repayment to the Corporation. The Paying Agent shall return to the Corporation any cash
that remains unclaimed for two years, subject to applicable unclaimed property law, together with
interest, if any, thereon held by the Paying Agent for the payment of the Redemption Price;
provided, however, that to the extent that the aggregate amount of cash deposited by the
Corporation pursuant to this Section 13 exceeds the aggregate Redemption Price of the Preferred
Stock or portions thereof which the Corporation is obligated to redeem as of the Fundamental Change
Redemption Date, then on the Business Day following the Fundamental Change Redemption Date, the
Paying Agent shall return any such excess to the Corporation. Thereafter, any holder entitled to
payment must look to the Corporation for payment as general creditors, unless an applicable
abandoned property law designates another Person.

     (k) Compliance with Laws. The Corporation will comply with all the applicable provisions of
Rule 13e-4 and any other tender offer rules under the Exchange Act, if required, in connection with
any offer by the Corporation to redeem the Preferred Stock and to the extent necessary to comply
therewith, the time periods specified herein shall be extended accordingly.

     14. Voting Rights.

          (a) The holders of record of shares of the Preferred Stock shall not be entitled to any voting
rights except as hereinafter provided in this Section 14 or as otherwise provided by law.

          (b) The affirmative vote of holders of at least two-thirds of the Outstanding shares of the
Preferred Stock and all other Parity Stock with like voting rights, voting as a single class, in
person or by proxy, at an annual meeting of the Corporation’s stockholders or at a special meeting
called for the purpose, or by written consent in lieu of such a meeting, shall be required to
alter, repeal or amend, whether by merger, consolidation, combination, reclassification or
otherwise, any provisions of the Amended and Restated Certificate of Incorporation or this
Certificate if the amendment would amend, alter or affect the powers, preferences or special rights
of the Preferred Stock, so as to adversely affect the holders thereof, including, without
limitation, the creation of, or increase in the authorized number of, shares of any class or series
of Senior Stock; provided however, that any increase in the amount of the authorized Common Stock
or authorized Preferred Stock or the creation and issuance of any class or series of Common Stock,
other Junior Stock or Parity
Stock will not be deemed to adversely affect such powers, preferences or special rights.

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          (c) If at any time (1) dividends on any shares of Preferred Stock or any other class or series
of Parity Stock having like voting rights shall be in arrears for Dividend Periods, whether or not
consecutive, containing in the aggregate a number of days equivalent to six calendar quarters or
(2) the Corporation shall have failed to pay the Redemption Price when due (whether the redemption
is pursuant to an Optional Redemption or the redemption is in connection with a Fundamental Change
) then, immediately prior to the next annual meeting of shareholders, the total number of directors
constituting the entire Board of Directors shall automatically be increased by two, and, in each
case, the holders of shares of Preferred Stock (voting separately as a class with all other series
of Parity Stock upon which like voting rights have been conferred and are exercisable) will be
entitled to elect two of the authorized number of the Corporation’s directors (each, a “Preferred
Stock Director”) at the next annual meeting of stockholders (or at a special meeting of the
Corporation’s stockholders called for such purpose, whichever is earlier) and each subsequent
meeting until the Redemption Price or all accumulated and unpaid dividends on the Preferred Stock
to the most recent Dividend Payment Date have been fully paid or set aside for payment. The
Preferred Stock Directors shall not be divided into the classes of the Board and the term of office
of all such Preferred Stock Directors shall terminate immediately upon the termination of the right
of the holders of Preferred Stock and such Parity Stock to vote for directors and upon such
termination the total number of directors constituting the entire Board will be automatically
reduced by two. Each holder of shares of the Preferred Stock will have one vote for each share of
Preferred Stock held. At any time after voting power to elect directors shall have become vested
and be continuing in the holders of the Preferred Stock pursuant to this Section 14(c), or if a
vacancy shall exist in the office of any Preferred Stock Director, the Board of Directors may, and
upon written request of the holders of record of at least 25% of the Outstanding shares of
Preferred Stock addressed to the Chairman of the Board of the Corporation shall, call a special
meeting of the holders of the Preferred Stock (voting separately as a class with all other series
of Parity Stock upon which like voting rights have been conferred and are exercisable) for the
purpose of electing the Preferred Stock Director that such holders are entitled to elect. At any
meeting held for the purpose of electing a Preferred Stock Directors, the presence in person or by
proxy of the holders of at least a majority of the Outstanding Preferred Stock shall be required to
constitute a quorum of such Preferred Stock. Any vacancy occurring in the office of a Preferred
Stock Director may be filled by the remaining Preferred Stock Director unless and until such
vacancy shall be filled by the holders of the Preferred Stock and all other Parity Stock having
like voting rights, as provided above.

     15. Transfer Agent and Registrar. The duly appointed Transfer Agent (the “Transfer Agent”) or
Registrar (the “Registrar”) for the Preferred Stock shall be EquiServe Trust Company, N.A. The
Corporation may, in its sole discretion,
remove the Transfer Agent and Registrar in accordance with the agreement between the
Corporation and the Transfer Agent and Registrar; provided that the

33

 

Corporation shall appoint a
successor transfer agent and registrar who shall accept such appointment prior to the effectiveness
of such removal.

     16. Currency. All shares of Preferred Stock shall be denominated in U.S. currency, and all
payments and distributions thereon or with respect thereto shall be made in U.S. currency. All
references herein to “$”or “dollars” refer to U.S. currency.

     17. Form. (a) The Preferred Stock shall be issued in the form of one or more permanent global
shares of Preferred Stock (each, a “Global Preferred Share”) in definitive, fully registered form
with the global legend (the “Global Shares Legend”) each as set forth on the form of Preferred
Stock certificate attached hereto as Exhibit A, which is hereby incorporated in and expressly made
a part of this Certificate. The Global Preferred Shares may have notations, legends or
endorsements required by law, stock exchange rules, agreements to which the Corporation is subject,
if any, or usage (provided that any such notation, legend or endorsement is in a form acceptable to
the Corporation). The Global Preferred Shares shall be deposited on behalf of the holders of the
Preferred Stock represented thereby with the Registrar, at its New York office, as custodian for
the Depositary, and registered in the name of the Depositary or a nominee of the Depositary, duly
executed by the Corporation and countersigned and registered by the Registrar as hereinafter
provided. The aggregate number of shares represented by each Global Preferred Share may from time
to time be increased or decreased by adjustments made on the records of the Registrar and the
Depositary or its nominee as hereinafter provided. This Section 17(a) shall apply only to a Global
Preferred Share deposited with or on behalf of the Depositary. The Corporation shall execute and
the Registrar shall, in accordance with this Section 17, countersign and deliver initially one or
more Global Preferred Shares that (i) shall be registered in the name of Cede & Co. or other
nominee of the Depositary and (ii) shall be delivered by the Registrar to Cede & Co. or pursuant to
instructions received from Cede & Co. or held by the Registrar as custodian for the Depositary
pursuant to an agreement between the Depositary and the Registrar. Members of, or participants in,
the Depositary (“Agent Members”) shall have no rights under this Certificate, with respect to any
Global Preferred Share held on their behalf by the Depositary or by the Registrar as the custodian
of the Depositary, or under such Global Preferred Share, and the Depositary may be treated by the
Corporation, the Registrar and any agent of the Corporation or the Registrar as the absolute owner
of such Global Preferred Share for all purposes whatsoever. Notwithstanding the foregoing, nothing
herein shall prevent the Corporation, the Registrar or any agent of the Corporation or the
Registrar from giving effect to any written certification, proxy or other authorization furnished
by the Depositary or impair, as between the Depositary and its Agent Members, the operation of
customary practices of the Depositary governing the exercise of the rights of a holder of a
beneficial interest in any Global Preferred Share. Owners of beneficial interests
in Global Preferred Shares shall not be entitled to receive physical delivery of certificated
shares of Preferred Stock, unless (x) DTC is unwilling or unable to

34

 

continue as Depositary for the
Global Preferred Shares and the Corporation does not appoint a qualified replacement for DTC within
90 days, (y) DTC ceases to be a “clearing agency” registered under the Exchange Act or (z) the
Corporation decides to discontinue the use of book-entry transfer through DTC (or any successor
Depositary). In any such case, the Global Preferred Shares shall be exchanged in whole for
certificated shares of Preferred Stock in registered form, with the same terms and of an equal
aggregate Liquidation Preference (unless the Corporation determines otherwise in accordance with
applicable law). Certificated shares of Preferred Stock shall be registered in the name or names
of the Person or Person specified by DTC in a written instrument to the Registrar.

     (b) (i) Authorized Officers shall sign the Global Preferred Shares for the Corporation, in
accordance with the Corporation’s bylaws and applicable law, by manual or facsimile signature.

     (ii) If the Officers whose signatures are on a Global Preferred Share no longer hold
that office at the time the Transfer Agent authenticates the Global Preferred Share, the
Global Preferred Share shall be valid nevertheless.

     (iii) A Global Preferred Share shall not be valid until an authorized signatory of the
Transfer Agent manually countersigns such Global Preferred Share. The signature shall be
conclusive evidence that such Global Preferred Share has been authenticated under this
Certificate. Each Global Preferred Share shall be dated the date of its authentication.

     18. Registration; Transfer.

          (a) Notwithstanding any provision to the contrary herein, so long as a Global Preferred Share
remains Outstanding and is held by or on behalf of the Depositary, transfers of a Global Preferred
Share, in whole or in part, or of any beneficial interest therein, shall only be made in accordance
with this Section 18.

          (b) Transfers of a Global Preferred Share shall be limited to transfers of such Global
Preferred Share in whole, but not in part, to nominees of the Depositary or to a successor of the
Depositary or such successor’s nominee.

     19. Paying Agent and Conversion Agent.

          (a) The Corporation shall maintain in the Borough of Manhattan, City of New York, State of New
York (i) an office or agency where Preferred Stock may be presented for payment (the “Paying
Agent”) and (ii) an office or agency where Preferred Stock may be presented for conversion (the
“Conversion Agent”). The Transfer Agent shall act as Paying Agent and Conversion Agent, unless
another Paying Agent or Conversion Agent is appointed by the
Corporation. The Corporation may appoint the Registrar, the Paying Agent and the Conversion
Agent and may appoint one or more additional paying agents and

35

 

one or more additional conversion
agents in such other locations as it shall determine. The term “Paying Agent” includes any
additional paying agent and the term “Conversion Agent” includes any additional conversion agent.
The Corporation may change any Paying Agent or Conversion Agent without prior notice to any holder.
The Corporation shall notify the Registrar of the name and address of any Paying Agent or
Conversion Agent appointed by the Corporation. If the Corporation fails to appoint or maintain
another entity as Paying Agent or Conversion Agent, the Registrar shall act as such. The
Corporation or any of its Affiliates may act as Paying Agent, Registrar or Conversion Agent. The
Registrar shall record any exchanges, increases or decreases in the number of shares of Preferred
Stock represented by a Global Preferred Share on Schedule A to such Global Preferred Share.

          (b) Payments due on the Preferred Stock shall be payable at the office or agency of the
Corporation maintained for such purpose in The City of New York and at any other office or agency
maintained by the Corporation for such purpose. Payments shall be payable by United States dollar
check drawn on, or wire transfer (provided, that appropriate wire instructions have been received
by the Registrar at least 15 days prior to the applicable date of payment) to a U.S. dollar account
maintained by the holder with, a bank located in New York City; provided that at the option of the
Corporation, payment of dividends may be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Preferred Stock register. Notwithstanding the
foregoing, payments due in respect of beneficial interests in the Global Preferred Shares shall be
payable by wire transfer of immediately available funds in accordance with the procedures of the
Depositary.

     20. Headings. The headings of the Sections of this Certificate are for convenience of
reference only and shall not define, limit or affect any of the provisions hereof.

36

 

EXHIBIT A

FORM OF 4.99% CONVERTIBLE PERPETUAL PREFERRED STOCK

			
	 	 	 
	Number:                     
	 	                     Shares

CUSIP NO.:

4.99% Convertible Perpetual Preferred Stock

(par value $0.01 per share)

(liquidation preference $1,000 per share)

OF

EL PASO CORPORATION

FACE OF SECURITY

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE CORPORATION OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL IN AS MUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO. HAS AN INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF
THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN THE CERTIFICATE OF DESIGNATIONS REFERRED TO BELOW.

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH
CERTIFICATES AND OTHER INFORMATION AS SUCH REGISTRAR AND TRANSFER AGENT MAY REASONABLY REQUIRE TO
CONFIRM THAT TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

THE SECURITY EVIDENCED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT OF 1933”), OR ANY STATE SECURITIES LAWS, AND MAY

37

 

NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF,
THE HOLDER:

(1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT OF 1933;

(2) AGREES THAT IT WILL NOT, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS
TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE
CORPORATION OR ANY AFFILIATE OF THE CORPORATION WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR
OF SUCH SECURITY), RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR THE COMMON STOCK
ISSUABLE UPON CONVERSION OF SUCH SECURITY EXCEPT (A) TO EL PASO CORPORATION OR ANY SUBSIDIARY
THEREOF, (B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT OF 1933, (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT OF 1933 (IF AVAILABLE), OR (D) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN
DECLARED EFFECTIVE UNDER THE SECURITIES ACT OF 1933 AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME
OF SUCH TRANSFER; AND

(3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THE SECURITY EVIDENCED HEREBY IS TRANSFERRED
(OTHER THAN A TRANSFER PURSUANT TO CLAUSE 2(C) OR 2(D) ABOVE) A NOTICE SUBSTANTIALLY TO THE EFFECT
OF THIS LEGEND.

38

 

EL PASO CORPORATION, a Delaware corporation (the “Corporation”), hereby certifies that Cede & Co.
or registered assigns (the “Holder”) is the registered owner of fully paid and non-assessable
shares of preferred stock of the Corporation designated the “4.99% Convertible Perpetual Preferred
Stock,” par value $0.01 per share and liquidation preference $1,000 per share (the “Preferred
Stock”). The shares of Preferred Stock are transferable on the books and records of the Registrar,
in person or by a duly authorized attorney, upon surrender of this certificate duly endorsed and in
proper form for transfer. The designation, rights, privileges, restrictions, preferences and other
terms and provisions of the Preferred Stock represented hereby are issued and shall in all respects
be subject to the provisions of the Certificate of Designations of the Corporation dated April 14,
2005, as the same may be amended from time to time in accordance with its terms (the “Certificate
of Designations”). Capitalized terms used herein but not defined shall have the respective
meanings given them in the Certificate of Designations. The Corporation will provide a copy of the
Certificate of Designations to a Holder without charge upon written request to the Corporation at
its principal place of business.

Reference is hereby made to select provisions of the Preferred Stock set forth on the reverse
hereof, and to the Certificate of Designations, which select provisions and the Certificate of
Designations shall for all purposes have the same effect as if set forth at this place.

Upon receipt of this certificate, the Holder is bound by the Certificate of Designations and is
entitled to the benefits thereunder.

Unless the Transfer Agent’s Certificate of Authentication hereon has been properly executed, the
shares of Preferred Stock evidenced hereby shall not be entitled to any benefit under the
Certificate of Designations or be valid or obligatory for any purpose.

39

 

IN WITNESS WHEREOF, El Paso Corporation has executed this Certificate as of the date set forth
below.

	 	 	 	 	 
	 	EL PASO CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Dated: 	 	 
	 

TRANSFER AGENT’S CERTIFICATE OF AUTHENTICATION

This is one of the certificates representing shares of Preferred Stock referred to in the within
mentioned Certificate of Designations.

	 	 	 	 	 
	 	as Transfer Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	Dated: 	 	 

40

 

	 	 	 	 	 

REVERSE OF SECURITY

EL PASO CORPORATION

4.99% Convertible Perpetual Preferred Stock

Dividends on each share of 4.99% Convertible Perpetual Preferred Stock shall be payable in cash at
a rate per annum set forth on the face hereof or as provided in the Certificate of Designations.

The shares of 4.99% Convertible Perpetual Preferred Stock shall be redeemable as provided in the
Certificate of Designations. The shares of 4.99% Convertible Perpetual Preferred Stock shall be
convertible into the Corporation’s Common Stock in the manner and according to the terms set forth
in the Certificate of Designations. Upon a Fundamental Change, holders of shares of 4.99%
Convertible Perpetual Preferred Stock that remain Outstanding after the Fundamental Change will
have the right to require the Corporation to redeem such shares in the manner and according to the
terms set forth in the Certificate of Designations.

As required under Delaware law, the Corporation shall furnish to any Holder upon request and
without charge, a full summary statement of the designations, voting rights preferences,
limitations and special rights of the shares of each class or series authorized to be issued by the
Corporation so far as they have been fixed and determined.

41

 

ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned assigns and transfers the shares of 4.99% Convertible
Perpetual Preferred Stock evidenced hereby to:

 

 

(Insert assignee’s social security or tax identification number)

 

(Insert address and zip code of assignee)

 

 

and irrevocably appoints:

 

agent to transfer the shares of 4.99% Convertible Perpetual Preferred Stock evidenced hereby on the
books of the Transfer Agent and Registrar. The agent may substitute another to act for him or her.

Date: __________________

Signature: ______________________

(Sign exactly as your name appears on the other side of this 4.99% Convertible Perpetual Preferred
Stock)

Signature Guarantee: _____________________1

 

			
	1	 	Signature must be guaranteed by an “eligible
guarantor institution” (i.e., a bank, stockbroker, savings and loan association
or credit union) meeting the requirements of the Registrar, which requirements
include membership or participation in the Securities Transfer Agents Medallion
Program (“STAMP”) or such other “signature guarantee program” as may be
determined by the Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended.

42

 

NOTICE OF CONVERSION

(To be Executed by the Registered Holder

in order to Convert the 4.99% Convertible Perpetual Preferred Stock)

The undersigned hereby irrevocably elects to convert (the “Conversion”) _______ shares of 4.99%
Convertible Perpetual Preferred Stock (the “Preferred Stock”), represented by stock certificate
No(s). __ (the “Preferred Stock Certificates”) into shares of common stock, par value $3.00 per
share (“Common Stock”), of El Paso Corporation (the “Corporation”) according to the conditions of
the Certificate of Designations establishing the terms of the Preferred Stock (the “Certificate of
Designations”), as of the date written below. If shares are to be issued in the name of a Person
other than the undersigned, the undersigned will pay all transfer taxes payable with respect
thereto and is delivering herewith such certificates. No fee will be charged to the holder for any
conversion, except for transfer taxes, if any. A copy of each Preferred Stock Certificate is
attached hereto (or evidence of loss, theft or destruction thereof).

The undersigned represents and warrants that all offers and sales by the undersigned of the shares
of Common Stock issuable to the undersigned upon conversion of the Preferred Stock shall be made
pursuant to registration of the Common Stock under the Securities Act of 1933 (the “Act”) or
pursuant to an exemption from registration under the Act.

The Corporation is not required to issue shares of Common Stock until the original Preferred Stock
Certificate(s) (or evidence of loss, theft or destruction thereof) to be converted are received by
the Corporation or its Transfer Agent. The Corporation shall issue and deliver shares of Common
Stock to an overnight courier as promptly as practicable following receipt of the original
Preferred Stock Certificate(s) to be converted.

Capitalized terms used but not defined herein shall have the meanings ascribed thereto in or
pursuant to the Certificate of Designations.

     Date of Conversion: ____________________________________________

     Applicable Conversion Rate: ____________________________________

     Number of shares of 4.99% Convertible Perpetual Preferred Stock

          to be Converted: __________________________

43

 

     Number of shares of Common Stock to be Issued: __________________

     Signature: _______________________________________________

     Name: __________________________________________________

     Address:2 _______________________________________________

     Fax No.: _________________________________________________

 

			
	2	 	Address where shares of Common Stock and any
other payments or certificates shall be sent by the Corporation.

44

 

SCHEDULE A

SCHEDULE OF EXCHANGES FOR GLOBAL SECURITY

     The initial number of shares of 4.99% Convertible Perpetual Preferred Stock represented by
this Global Preferred Share shall be ______. The following exchanges of a part of this Global
Preferred Share have been made:

	 	 	 	 	 	 	 	 	 

	Date 

of 

Exchange
	 	Amount of

decrease in

number of shares

represented by

this

Global

Preferred Share
	 	Amount of

increase in

number of shares

represented by this

Global

Preferred

Share
	 	Number of shares

represented by

this Global

Preferred Share

following

such decrease or

increase
	 	Signature of

authorized officer

of Registrar
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 

45

 

EXHIBIT B

FORM OF NOTICE OF ELECTION OF REDEMPTION

UPON A FUNDAMENTAL CHANGE

EquiServe Trust Company, N.A., as Transfer Agent

[_______________]

			
	Re:	 	El Paso Corporation

4.99% Convertible Perpetual Preferred Stock

(the “Preferred Stock”)

     The undersigned hereby irrevocably acknowledges receipt of a notice from El Paso Corporation
(the “Corporation”) as to the occurrence of a Fundamental Change with respect to the Corporation
and requests and instructs the Corporation to redeem _____ shares of Preferred Stock in accordance
with the terms of the Certificate of Designations at the Redemption Price.

     Capitalized terms used but not defined herein shall have the meanings ascribed thereto
pursuant to the Certificate of Designations.

Dated: _____________

___________________

___________________

Signature(s)

NOTICE: The above signatures of the holder(s) hereof must

correspond with the name as written upon the face of the

security in every particular without alteration or

enlargement or any change whatever.

Aggregate Liquidation Preference to be redeemed (if less

than all):

____________________________

____________________________

Social Security or Other Taxpayer Identification Number

46

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