Document:

EX-4.5

 

Exhibit 4.5

MAX CAPITAL GROUP LTD.

TO

[     ],

Trustee

JUNIOR SUBORDINATED INDENTURE

Dated as of [     ]

JUNIOR SUBORDINATED DEBENTURES

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE 1 DEFINITIONS
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.1
	 	Certain Terms Defined	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE 2 SECURITY FORMS
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.1
	 	Forms Generally	 	 	12	 
	Section 2.2
	 	Form of Trustee’s Certificate of Authentication	 	 	12	 
	Section 2.3
	 	Form of Trustee’s Certificate of Authentication by an Authenticating Agent	 	 	12	 
	Section 2.4
	 	Securities Issuable in the Form of Global Securities	 	 	13	 
	 
	 	 	 	 	 	 
	ARTICLE 3 THE SECURITIES
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.1
	 	Amount Unlimited; Issuable in Series	 	 	14	 
	Section 3.2
	 	Form and Denominations	 	 	18	 
	Section 3.3
	 	Authentication, Dating and Delivery of Securities	 	 	18	 
	Section 3.4
	 	Execution of Securities	 	 	20	 
	Section 3.5
	 	Certificate of Authentication	 	 	21	 
	Section 3.6
	 	Registration, Registration of Transfer and Exchange	 	 	21	 
	Section 3.7
	 	Mutilated, Destroyed, Lost and Stolen Securities	 	 	22	 
	Section 3.8
	 	Payment of Interest and Certain Additional Amounts; Interest Rights and Certain Additional Amounts Preserved	 	 	23	 
	Section 3.9
	 	Cancellation of Securities; Destruction Thereof	 	 	24	 
	Section 3.10
	 	Temporary Securities	 	 	24	 
	Section 3.11
	 	Computation of Interest	 	 	25	 
	Section 3.12
	 	CUSIP Numbers	 	 	25	 
	Section 3.13
	 	Extension of Interest Payment Period	 	 	25	 
	Section 3.14
	 	Right of Set-Off	 	 	26	 
	Section 3.15
	 	Agreed Tax Treatment	 	 	26	 
	Section 3.16
	 	Extension of Stated Maturity; Adjustment of Stated Maturity Upon an Exchange	 	 	26	 
	 
	 	 	 	 	 	 
	ARTICLE 4 COVENANTS OF THE COMPANY
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 4.1
	 	Payment of Securities	 	 	27	 
	Section 4.2
	 	Offices or Agency	 	 	27	 
	Section 4.3
	 	Money for Securities Payments to Be Held in Trust	 	 	27	 
	Section 4.4
	 	Additional Amounts	 	 	28	 
	Section 4.5
	 	Redemption for Tax Purposes	 	 	29	 
	Section 4.6
	 	Corporate Existence	 	 	30	 
	Section 4.7
	 	Waiver of Certain Covenants	 	 	30	 
	Section 4.8
	 	Certificates to Trustee	 	 	30	 
	Section 4.9
	 	Calculation of Original Issue Discount	 	 	30	 
	Section 4.10
	 	Additional Sums	 	 	30	 
	Section 4.11
	 	Payment of Expenses of Each Max Capital Trust	 	 	31	 
	Section 4.12
	 	Ownership of Common Securities	 	 	31	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE 5 SECURITYHOLDER LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 5.1
	 	Company to Furnish Trustee Information as to Names and Addresses of Securityholders	 	 	32	 
	Section 5.2
	 	Preservation and Disclosure of Securityholder Lists	 	 	32	 
	Section 5.3
	 	Reports by the Company	 	 	32	 
	Section 5.4
	 	Reports by the Trustee	 	 	33	 
	 
	 	 	 	 	 	 
	ARTICLE 6 REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 6.1
	 	Event of Default Defined; Acceleration of Maturity; Waiver of Default	 	 	33	 
	Section 6.2
	 	Collection of Indebtedness by Trustee; Trustee May Prove Debt	 	 	37	 
	Section 6.3
	 	Application of Proceeds	 	 	38	 
	Section 6.4
	 	Suits for Enforcement	 	 	39	 
	Section 6.5
	 	Restoration of Rights on Abandonment of Proceedings	 	 	39	 
	Section 6.6
	 	Limitations on Suits by Securityholders	 	 	39	 
	Section 6.7
	 	Unconditional Right of Securityholders to Institute Certain Suits	 	 	40	 
	Section 6.8
	 	Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default	 	 	41	 
	Section 6.9
	 	Control by Holders of Securities	 	 	41	 
	Section 6.10
	 	Waiver of Past Defaults	 	 	41	 
	Section 6.11
	 	Trustee to Give Notice of Default, But May Withhold in Certain Circumstances	 	 	42	 
	Section 6.12
	 	Right of Court to Require Filing of Undertaking to Pay Costs	 	 	42	 
	Section 6.13
	 	Waiver of Usury, Stay or Extension Laws	 	 	43	 
	Section 6.14
	 	Delay or Omission Not Waiver	 	 	43	 
	 
	 	 	 	 	 	 
	ARTICLE 7 CONCERNING THE TRUSTEE
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 7.1
	 	Duties and Responsibilities of the Trustee; During Default; Prior to Default	 	 	43	 
	Section 7.2
	 	Certain Rights of the Trustee	 	 	44	 
	Section 7.3
	 	Trustee Not Responsible for Recitals, Disposition of Securities or Application of Proceeds Thereof	 	 	46	 
	Section 7.4
	 	Trustee and Agents May Hold Securities; Collections, etc	 	 	46	 
	Section 7.5
	 	Money Held by Trustee	 	 	46	 
	Section 7.6
	 	Compensation and Indemnification of Trustee and Its Prior Claim	 	 	46	 
	Section 7.7
	 	Right of Trustee to Rely on Officer’s Certificate, etc	 	 	47	 
	Section 7.8
	 	Qualification of Trustee; Conflicting Interests	 	 	47	 
	Section 7.9
	 	Persons Eligible for Appointment as Trustee	 	 	47	 
	Section 7.10
	 	Resignation and Removal; Appointment of Successor Trustee	 	 	48	 
	Section 7.11
	 	Acceptance of Appointment by Successor Trustee	 	 	49	 
	Section 7.12
	 	Merger, Conversion, Consolidation or Succession to Business of Trustee	 	 	50	 
	Section 7.13
	 	Preferential Collection of Claims Against the Company	 	 	50	 
	Section 7.14
	 	Authenticating Agent	 	 	50	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE 8 CONCERNING THE HOLDERS OF SECURITIES
	 	 	 	 
	 
	Section 8.1
	 	Action by Holders	 	 	51	 
	Section 8.2
	 	Proof of Execution of Instruments by Holders of Securities	 	 	51	 
	Section 8.3
	 	Holders to be Treated as Owners	 	 	52	 
	Section 8.4
	 	Securities Owned by Company Deemed Not Outstanding	 	 	52	 
	Section 8.5
	 	Right of Revocation of Action Taken	 	 	53	 
	 
	 	 	 	 	 	 
	ARTICLE 9 HOLDERS’ MEETINGS
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 9.1
	 	Purposes of Meetings	 	 	53	 
	Section 9.2
	 	Call of Meetings by Trustee	 	 	54	 
	Section 9.3
	 	Call of Meetings by Company or Holders	 	 	54	 
	Section 9.4
	 	Qualifications for Voting	 	 	54	 
	Section 9.5
	 	Regulations	 	 	54	 
	Section 9.6
	 	Voting	 	 	55	 
	Section 9.7
	 	No Delay of Rights by Reason of Meeting	 	 	55	 
	 
	 	 	 	 	 	 
	ARTICLE 10 SUPPLEMENTAL INDENTURES
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 10.1
	 	Supplemental Indentures Without Consent of Securityholders	 	 	56	 
	Section 10.2
	 	Supplemental Indentures With Consent of Securityholders	 	 	57	 
	Section 10.3
	 	Notice of Supplemental Indenture	 	 	58	 
	Section 10.4
	 	Effect of Supplemental Indenture	 	 	58	 
	Section 10.5
	 	Documents To Be Given to Trustee	 	 	59	 
	Section 10.6
	 	Notation on Securities in Respect of Supplemental Indentures	 	 	59	 
	Section 10.7
	 	Effect on Senior Indebtedness	 	 	59	 
	 
	 	 	 	 	 	 
	ARTICLE 11 CONSOLIDATION, AMALGAMATION, MERGER OR SALE
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 11.1
	 	Company May Consolidate, Etc., Only on Certain Terms	 	 	59	 
	Section 11.2
	 	Opinion of Counsel	 	 	60	 
	Section 11.3
	 	Successor Person Substituted	 	 	60	 
	 
	 	 	 	 	 	 
	ARTICLE 12 SATISFACTION AND DISCHARGE OF INDENTURE, UNCLAIMED MONEYS
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 12.1
	 	Satisfaction and Discharge of Securities of Any Series	 	 	60	 
	Section 12.2
	 	Defeasance and Covenant Defeasance	 	 	62	 
	Section 12.3
	 	Application of Trust Money	 	 	66	 
	Section 12.4
	 	Repayment of Moneys Held by Paying Agent	 	 	66	 
	Section 12.5
	 	Return of Unclaimed Moneys Held by Trustee and Paying Agent	 	 	66	 
	 
	 	 	 	 	 	 
	ARTICLE 13 SUBORDINATION OF SECURITIES
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 13.1
	 	Agreement to Subordinate	 	 	67	 
	Section 13.2
	 	Default on Company Senior Indebtedness	 	 	67	 
	Section 13.3
	 	Liquidation; Dissolution; Bankruptcy	 	 	68	 
	Section 13.4
	 	Subrogation	 	 	69	 
	Section 13.5
	 	Trustee to Effectuate Subordination	 	 	70	 
	Section 13.6
	 	Notice by the Company	 	 	70	 
	Section 13.7
	 	Rights of the Trustee; Holders of Company Senior Indebtedness	 	 	71	 
	Section 13.8
	 	Trustee Not Fiduciary for Holders of Senior Indebtedness	 	 	71	 
	Section 13.9
	 	Subordination May Not Be Impaired	 	 	72	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Section 13.10
	 	Application by Trustee of Assets Deposited with It	 	 	72	 
	 
	 	 	 	 	 	 
	ARTICLE 14 MISCELLANEOUS PROVISIONS
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 14.1
	 	Incorporators, Shareholders, Officers and Directors of Company Exempt from Individual Liability	 	 	72	 
	Section 14.2
	 	Provisions of Indenture for the Sole Benefit of Parties and Securityholders	 	 	73	 
	Section 14.3
	 	Successors and Assigns of Company Bound by Indenture	 	 	73	 
	Section 14.4
	 	Holders of Preferred Securities as Third Party Beneficiaries	 	 	73	 
	Section 14.5
	 	Notices to Holders; Waiver	 	 	73	 
	Section 14.6
	 	Addresses for Notices	 	 	74	 
	Section 14.7
	 	Officer’s Certificates and Opinions of Counsel; Statements to Be Contained Therein	 	 	74	 
	Section 14.8
	 	Separability Clause	 	 	75	 
	Section 14.9
	 	Legal Holidays	 	 	75	 
	Section 14.10
	 	Conflict of Any Provision of Indenture with Trust Indenture Act	 	 	75	 
	Section 14.11
	 	Governing Law; Waiver of Jury Trial	 	 	75	 
	Section 14.12
	 	Judgment Currency	 	 	76	 
	Section 14.13
	 	No Security Interest Created	 	 	76	 
	Section 14.14
	 	Submission to Jurisdiction	 	 	76	 
	Section 14.15
	 	Counterparts	 	 	77	 
	Section 14.16
	 	Effect of Headings	 	 	77	 
	Section 14.17
	 	Force Majeure	 	 	77	 
	 
	 	 	 	 	 	 
	ARTICLE 15 REDEMPTION OF SECURITIES
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 15.1
	 	Applicability of Article	 	 	77	 
	Section 15.2
	 	Notice of Redemption; Selection of Securities	 	 	77	 
	Section 15.3
	 	Payment of Securities Called for Redemption	 	 	79	 
	Section 15.4
	 	Right of Redemption of Securities Issued to a Max Capital Trust	 	 	80	 
	 
	 	 	 	 	 	 
	ARTICLE 16 SINKING FUNDS
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 16.1
	 	Applicability of Article	 	 	80	 
	Section 16.2
	 	Satisfaction of Mandatory Sinking Fund Payment with Securities	 	 	80	 
	Section 16.3
	 	Redemption of Securities for Sinking Fund	 	 	81	 

iv

 

MAX CAPITAL GROUP LTD.

     *Reconciliation and tie between Trust Indenture Act of 1939, as amended by the Trust Reform
Act of 1990, and Indenture, dated as of .

	 	 	 
	Section of the	 	 
	Trust Indenture Act of 1939	 	Section of Indenture
	310(a)(1), (2) and (5)
	 	7.9
	310(a)(3) and (4)
	 	Inapplicable
	310(b)
	 	7.8 and 7.10(a) and (b)
	311(a)
	 	7.13(a) and (c)(i) and (iii)
	311(b)
	 	7.13(b)
	312(a)
	 	5.1 and 5.2(a)
	312(b)
	 	5.2(b)
	312(c)
	 	5.2(b)
	313(a)
	 	5.4(a)
	313(b)(1)
	 	Inapplicable
	313(b)(2)
	 	5.4(b)
	313(c)
	 	5.4(c)
	313(d)
	 	5.4(d)
	314(a)
	 	4.8 and 5.3
	314(b)
	 	Inapplicable
	314(c)(1) and (2)
	 	15.7
	314(c)(3)
	 	Inapplicable
	314(d)
	 	Inapplicable
	314(e)
	 	15.7
	315(a), (c) and (d)
	 	7.1
	315(b)
	 	6.11
	315(e)
	 	6.12
	316(a)(1)
	 	6.9
	316(a)(2)
	 	Inapplicable
	316(a) (last sentence)
	 	8.4
	316(b)
	 	6.7
	316(c)
	 	8.1
	317(a)
	 	6.2
	317(b)
	 	4.2 and 4.3
	318(a)
	 	15.10

 

			
	*	 	This reconciliation and tie shall not, for any purpose, be deemed to be part of the Indenture or
to have any bearing upon the interpretation of any of its terms or provisions.

v

 

     This JUNIOR SUBORDINATED INDENTURE (herein, the “Indenture”), dated as of [ ], between
MAX CAPITAL GROUP LTD., an exempted company incorporated in Bermuda as a holding company (herein,
subject to ARTICLE 11, sometimes called the “Company”), having its principal office at Max House, 2
Front Street, Hamilton HM 11, Bermuda, and [ ], a [ ] banking corporation, as Trustee
(hereinafter, subject to ARTICLE 12, called the “Trustee”), having its principal corporate trust
office at [ ], Attention: Corporate Trust Administration.

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 subordinated notes, debentures or other evidences of its
unsecured indebtedness (herein called the “Securities”), including, without limitation, Securities
issued to evidence loans made to the Company of the proceeds from the issuance from time to time by
one or more Max Capital Trusts (as defined herein) of preferred beneficial interests in the assets
of such Trusts (the “Preferred Securities”) and common beneficial interests in the assets of such
Trusts (the “Common Securities” and, collectively with the Preferred Securities, the “Trust
Securities”), to be issued in one or more series, authenticated and delivered, as in this Indenture
provided.

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

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Securities by the Persons
acquiring the same, it is mutually covenanted and agreed, for the equal and proportionate benefit
of all Holders of the Securities or of the Securities of any series, without giving any priority of
any one Security or series over any other, except as otherwise expressly provided herein, as
follows:

ARTICLE 1

DEFINITIONS

     Section 1.1 Certain Terms Defined. The following terms (except as otherwise expressly provided or
unless the context otherwise clearly requires) for all purposes of this Indenture, including any
indenture supplemental hereto, have the respective meanings specified in this Section. All other
terms used in this Indenture that are defined in the Trust Indenture Act or the definitions of
which in the Securities Act of 1933 are referred to in the Trust Indenture Act or that are defined
by rule of the Commission under the Trust Indenture Act (except as herein otherwise expressly
provided or unless the context otherwise clearly requires) have the meanings assigned to such terms
in said Trust Indenture Act and in said Securities Act or in said Commission rule under the Trust
Indenture Act as in force at the date on which this Indenture was originally executed (subject to
Section 10.1 and Section 10.2). 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. All references herein to “Articles” or other subdivisions are to the
corresponding Articles or other subdivisions of this Indenture.

1

 

The terms defined in this Article have the meanings assigned
to them in this Article and include the plural as well as the singular.

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

     “Additional Provisions” has the meaning specified in Section 13.1.

     “Additional Interest” means the interest, if any, that shall accrue on any interest on the
Securities of any series the payment of which has not been made on the applicable Interest Payment
Date and which shall accrue at the rate per annum specified or determined as specified in such
Security.

     “Additional Sums” has the meaning specified in Section 4.10.

     “Additional Taxes” means the sum of any additional taxes, duties and other governmental
charges to which a Max Capital Trust has become subject from time to time as a result of a Tax
Event.

     “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; provided,
however, that an Affiliate of the Company shall not be deemed to include any Max Capital Trust to
which Securities in respect thereof have been issued. 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, with respect to any series of Securities, any authenticating
agent appointed by the Trustee, with respect to that series of Securities, pursuant to Section
7.14.

     “Authorized Newspaper” means a newspaper or financial journal printed in the English language,
customarily published at least once a day, and customarily published for at least five days in each
calendar week, whether or not published on days that are legal holidays and of general circulation;
or, in the alternative, shall mean such form of communication as may have come into general use for
the dissemination of information of import similar to that of the information specified to be
published by the provisions hereof. Whenever successive publications are required or authorized to
be made in Authorized Newspapers, the successive publications may be made (unless otherwise
expressly provided herein) in the same or different newspapers meeting the foregoing requirements
and in each case on any Business Day. In case, by reason of the suspension of publication of any
Authorized Newspaper, or for any other cause, it shall be impractical without unreasonable expense
to make publication of any notice in an Authorized Newspaper as required by this Indenture, then
such method of publication or notification as shall be made with the approval of the Trustee shall
be deemed the equivalent of the required publication of such notice in an Authorized Newspaper.

2

 

     “Board of Directors” means either the board of directors of the Company or any committee of
such Board of Directors or Officer duly authorized to act with respect to a particular matter on
behalf of the Board of Directors.

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

     “Business Day,” when used with respect to any Place of Payment or any other location specified
in the Securities or this Indenture, means any day other than a Saturday, Sunday or a day on which
banking institutions in that Place of Payment or location are generally authorized or obligated by
law, regulation or executive order to close, except as may be otherwise specified as contemplated
by Section 3.1.

     “Capital Stock” of any Person means any and all share capital, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
equity of such Person, including preferred stock, but excluding any debt securities convertible
into such equity.

     “Capitalized Lease Obligation” means an obligation under a lease that is required to be
capitalized for financial reporting purposes in accordance with generally accepted accounting
principles, and the amount of Indebtedness represented by such obligation shall be the capitalized
amount of such obligation determined in accordance with such principles.

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

     “Common Securities” has the meaning specified in the first recital of this Indenture.

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

     “Company” means Max Capital Group Ltd., an exempted company incorporated in Bermuda as a
holding company, and, subject to ARTICLE 11, its successors and assigns.

     “Company Order” and “Company Request” mean a written order or request signed in the name of
the Company by the president, any vice president or the treasurer or controller and by any
assistant treasurer, any assistant controller, the secretary or any assistant secretary of the
Company, and delivered to the Trustee.

     “Company Senior Indebtedness” means, with respect to the Securities of any particular series,
all Indebtedness of the Company outstanding at any time, except (a) the Securities of such series,
(b) Indebtedness as to which, by the terms of the instrument creating or evidencing the

3

 

same, it is provided that such Indebtedness is subordinated to or pari passu with the
Securities of such series, (c) Indebtedness of the Company to, or guaranteed on behalf of, a
Subsidiary of the Company or any officer, director or employee of the Company or any Subsidiary of
the Company, (d) interest accruing after the filing of a petition initiating any proceeding
relating to the Company referred to in Section 6.1(f) and 6.1(g) unless such interest is an allowed
claim enforceable against the Company in a proceeding under federal or state bankruptcy laws, (e)
trade accounts payable, (f) any liability for income, franchise, real estate or other taxes owed or
owing and (g) any Indebtedness, including all other debt securities and guarantees in respect of
those debt securities, initially issued to (x) any Max Capital Trust or (y) any trust, partnership
or other entity affiliated with the Company which is a financing vehicle of the Company or any
Affiliate of the Company in connection with the issuance by such entity of preferred securities or
other securities which are similar to Preferred Securities that are guaranteed by the Company
pursuant to an instrument that ranks pari passu with or junior in right of payment to the Preferred
Securities Guarantees.

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

     “Corporate Trust Office” means the principal office of the Trustee at which at any particular
time its corporate trust business shall be administered, which office, on the date of original
execution of this Indenture, is located at [ ], Attention: Corporate Trust Administration, or
at any other time at such other address as the Trustee may designate from time to time by notice to
the parties hereto, or at the principal corporate trust office of any successor trustee as to which
such successor trustee may notify the parties hereto in writing.

     “Corporation” includes corporations, limited liability companies, incorporated associations,
companies and business trusts.

     “Depositary” means, with respect to the Securities of any series or any Tranche thereof,
which, in accordance with the determination of the Company, will be issued in whole or in part in
the form of one or more Global Securities, The Depository Trust Company, New York, New York,
another clearing agency or any successor registered under the Exchange Act, or other applicable
statute or regulation, which, in each case, shall be designated by the Company pursuant to either
Section 2.4 or Section 3.1. If at any time there is more than one such Person, “Depositary” as
used with respect to the Securities of any such series or Tranche thereof means the Depositary with
respect to the Securities of that series or Tranche.

     “Direct Action” has the meaning specified in Section 6.7.

     “Distributions,” with respect to any Max Capital Trust, has the meaning specified in the
applicable Trust Agreement of such Max Capital Trust.

     “Dollar” (“$”) 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.

4

 

     “Exchange Act” means the Securities Exchange Act of 1934 and the rules and regulations
promulgated thereunder, in each case as amended from time to time, or any successor legislation.

     “Event of Default” means any event or condition specified as such in Section 6.1.

     “Extension Period” has the meaning specified in Section 3.13.

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

     “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Standards Accounting Board, and as
are applicable to the financial statements of the Company, in each case as of the date of any
computation required hereunder.

     “Global Security” means, with respect to all or any part of any series of Securities, a
Security executed by the Company and authenticated and delivered by the Trustee to the Depositary
or pursuant to the Depositary’s instruction, all in accordance with this Indenture and pursuant to
a Company Order, which shall be registered in the name of the Depositary or its nominee and the
ownership of which will be registered in a “book-entry” or other system maintained by the
Depositary.

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

5

 

     “Guarantee Agreement” means the Preferred Securities Guarantee Agreement with respect to the
Preferred Securities of a Max Capital Trust, substantially in such form as may be specified as
contemplated by Section 3.1 with respect to the Securities of any series, in each case as amended
from time to time.

     “Guarantor” means the Company, in its capacity as guarantor with respect to the Preferred
Securities.

     “Holder,” “Registered Holder” and “Securityholder” mean, with respect to a Security, the
Person in whose name such Security is registered in the Securities Register (which terms, in the
case of a Global Security, mean the Depositary, notwithstanding that the Depositary maintains a
“book-entry” or other system for identification of ownership in respect of such Global Security).

     The term “include” (and other forms of such term) means “include, without limitation.”

     “Indebtedness” means, with respect to any Person, (i) the principal of and any premium and
interest and Additional Amounts on (a) indebtedness of such Person for money borrowed or (b)
indebtedness evidenced by notes, debentures, bonds or other similar instruments for the payment of
which such Person is responsible or liable; (ii) all Capitalized Lease Obligations of such Person;
(iii) all obligations of such Person issued or assumed as the deferred purchase price of property,
all conditional sale obligations and all obligations under any title retention agreement (but
excluding trade accounts payable arising in the ordinary course of business); (iv) all obligations
of such Person for the reimbursement of any obligor on any letter of credit, banker’s acceptance or
similar credit transaction (other than obligations with respect to letters of credit securing
obligations (other than obligations described in (i) through (iii) above) entered into in the
ordinary course of business of such Person to the extent such letters of credit are not drawn upon
or, if and to the extent drawn upon, such drawing is reimbursed no later than the third Business
Day following receipt by such Person of a demand for reimbursement following payment on the letter
of credit); (v) all obligations of the type referred to in clauses (i) through (iv) of other
Persons and all dividends of other Persons for the payment of which, in either case, such Person is
responsible or liable as obligor, guarantor or otherwise, the amount thereof being deemed to be the
lesser of the stated recourse, if limited, and the amount of the obligation or dividends of the
other Person; (vi) all obligations of the type referred to in clauses (i) through (v) of other
Persons secured by any Lien on any property or asset of such Person (whether or not such obligation
is assumed by such Person), the amount of such obligation being deemed to be the lesser of the
value of such property or assets or the amount of the obligation so secured; and (vii) any
amendments, modifications, refundings, renewals or extensions of any indebtedness or obligation
described as Indebtedness in clauses (i) through (vi) above.

     “Indenture” means this instrument as originally executed and delivered or, if amended or
supplemented as herein provided, as so amended or supplemented, and includes the forms and terms of
particular series of Securities established as contemplated hereunder.

     The term “interest” means, with respect to any Original Issue Discount Security which by its
terms bears interest only after Maturity, means interest payable after Maturity and, when used with
respect to a Security which provides for the payment of Additional Amounts pursuant to Section 4.4,
includes such Additional Amounts.

6

 

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

     “Investment Company Event” means, in respect of a Max Capital Trust, such Max Capital Trust
shall have received an Opinion of Counsel from a nationally recognized independent counsel
experienced in practice under the Investment Company Act to the effect that, as a result of the
occurrence of a change in law or regulation or a written change in interpretation or application of
law or regulation by any legislative body, court, governmental agency or regulatory authority (a
“Change in 1940 Act Law”), there is a more than an insubstantial risk that such Max Capital Trust
is or will be considered an Investment Company that is required to be registered under the
Investment Company Act, which Change in 1940 Act Law becomes effective on or after the date of the
issuance of the Preferred Securities of such Max Capital Trust.

     “Judgment Currency” has the meaning specified in Section 15.12.

     “Lien” means any mortgage, pledge, lien, security interest or other encumbrance.

     “Majority in liquidation preference of the Securities” means, except as provided by the Trust
Indenture Act, Holders, voting separately as a class, representing more than 50% of the stated
liquidation preference (including the stated amount that would be paid on redemption, liquidation
or otherwise, plus accrued and unpaid Distributions to the date upon which the voting percentages
are determined) of all Preferred Securities.

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

     “Max Capital Trusts” means, collectively, Max Capital Trust I, a statutory trust formed under
the Statutory Trust Act, and any other similar trust created to issue Trust Securities and to use
the proceeds from the sale thereof to purchase Securities issued under this Indenture.

     “New York Banking Day” has the meaning specified in Section 15.12.

     “1940 Act” means the Investment Company Act of 1940, as amended from time to time, or any
successor legislation.

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

     “Officer’s Certificate” means a certificate signed by an Officer and delivered to the Trustee,
except as otherwise specifically set forth herein.

     “Opinion of Counsel” means an opinion in writing signed by legal counsel who may be an
employee of or counsel to the Company.

7

 

     “Original Issue Discount Security” means any Security that provides for an amount less than
the principal amount thereof to be due and payable upon a declaration of acceleration with respect
thereto pursuant to Section 6.1.

     “Outstanding” (subject to Section 8.4) means, with reference to Securities as of the date of
determination, all Securities authenticated and delivered under this Indenture, except:

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

     (b) Securities, or portions thereof, for the payment or redemption of which moneys in
the necessary amount shall have been irrevocably deposited in trust with the Trustee or with
any Paying Agent (other than the Company) or shall have been set aside, segregated and held
in trust by the Company for the Holders of such Securities (if the Company shall act as its
own Paying Agent) or for the payment of which Government Obligations shall have been
irrevocably deposited in trust with the Trustee in accordance with ARTICLE 12; provided
that, if such Securities, or portions thereof, are to be redeemed prior to the Stated
Maturity thereof, notice of such redemption shall have been given as herein provided, or
provision satisfactory to the Trustee shall have been made for giving such notice;

     (c) any such Security with respect to which the Company has effected defeasance
pursuant to the terms hereof, except to the extent provided in Section 12.2;

     (d) Securities in substitution for which other Securities shall have been authenticated
and delivered, or which shall have been paid, pursuant to the terms of Section 3.7 (except
with respect to any such Security as to which proof satisfactory to the Trustee and the
Company is presented that such Security is held by a Person in whose hands such Security is
a legal, valid and binding obligation of the Company); and

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

     In determining whether Holders of the requisite principal amount of Outstanding Securities of
any or all series have made or given any request, demand, authorization, direction, notice, consent
or waiver hereunder, or are present to constitute a quorum at a meeting of Holders of Securities,
(i) the principal amount of an Original Issue Discount Security that shall be deemed to be
Outstanding for such purposes shall be the amount of the principal thereof that would be due and
payable as of the date of such determination upon a declaration of acceleration with respect
thereto pursuant to Section 6.1 and (ii) Securities owned by the Company or any other obligor upon
the Securities or any Affiliate of the Company or such other obligor, shall be disregarded and
deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in
making such a determination or relying upon any such quorum, consent or vote, only Securities which
a Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded.

8

 

     “Overdue Rate” means, with respect to any Security of any particular series, the rate
designated as such in or pursuant to the resolution of the Board of Directors or the supplemental
indenture, as the case may be, relating to such Security as contemplated by Section 3.1.

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

     “Periodic Offering” means an offering of Securities of a series from time to time, any or all
of the specific terms of which Securities, which may be in one or more Tranches, including the rate
or rates of interest, if any, thereon, the Stated Maturity or Maturities thereof and the redemption
provisions, if any, with respect thereto, are to be determined by the Company or its agents from
time to time subsequent to the initial request for authentication and delivery of such Securities
by the Trustee, all as contemplated in Section 3.1.

     “Person” means a legal person, including any individual, corporation, estate, company, limited
liability company, trust, partnership, limited liability partnership, joint venture, association,
joint stock company, trust, unincorporated association or government or any agency or political
subdivision thereof, or any entity of whatever nature.

     “Place of Payment” means, with respect to any Security, the place or places where the
principal of, and premium, if any, and interest, if any, on, such Security are payable as specified
pursuant to Section 3.1.

     “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 3.7 in lieu of a lost,
destroyed, mutilated or stolen Security shall be deemed to evidence the same debt as the lost,
destroyed or stolen Security.

     “Preferred Securities” has the meaning specified in the first recital of this Indenture.

     “Preferred Securities Guarantee” means the guarantee by Max Capital Group Ltd., in its
capacity as Guarantor with respect to the Preferred Securities of a Max Capital Trust, of
distributions on such Preferred Securities to the extent provided in the Guarantee Agreement.

     “Institutional Trustee,” with respect to any Max Capital Trust, means the entity acting in the
capacity of Institutional Trustee pursuant to the related Trust Agreement.

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

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

     “Registered Holder:” See “Holder.”

9

 

     “Regular Record Date” for the interest payable on any Interest Payment Date on a Security
means the date specified for that purpose pursuant to Section 3.1 or as specified in Section 3.8.

     “Required Currency” has the meaning specified in Section 15.12.

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

     “Securities Act” means the Securities Act of 1933, as amended, from time to time, or any
successor legislation.

     “Securities Register” and “Securities Registrar” have the meaning specified in Section 3.6.

     “Security” or “Securities” has the meaning stated in the recitals of this Indenture.

     “Senior Indebtedness” means Company Senior Indebtedness with respect to the Securities of such
series.

     “Special Event” means an Investment Company Event or a Tax Event.

     “Special Record Date” for the payment of any defaulted interest means a date fixed pursuant to
Section 3.8.

     “Stated Maturity” means, with respect to any Security or any installment of principal thereof
or interest thereon or any Additional Amounts with respect thereto, 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, or such Additional Amounts are, due and payable (without regard to any provisions
for redemption, prepayment, acceleration, purchase or extension).

     “Statutory Trust Act” means Chapter 38 of Title 12 of the Delaware Code, 12 Del. C. ss. 3801
et seq., as it may be amended from time to time, or any successor legislation.

     “Subsidiary” means, in respect of any Person, any Corporation, limited or general partnership
or other business entity of which at the time of determination more than 50% of the voting power of
the shares of its Capital Stock or other interests (including partnership interests) entitled
(without regard to the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof is owned or controlled, directly or indirectly, by (i) such Person,
(ii) such Person and one or more Subsidiaries of such Person or (iii) one or more Subsidiaries of
such Person.

10

 

     “Tax Event” means, in respect of a Max Capital Trust, such Max Capital Trust shall have
received an Opinion of Counsel, rendered by a nationally recognized independent tax counsel
experienced in such matters, to the effect that as a result of (a) any amendment to, or change
(including any announced prospective change) in, the laws (or any regulations thereunder) of the
United States or any political subdivision or taxing authority therefor or therein, or (b) any
amendment to, or change in, an interpretation or application of any such laws or regulations by any
legislative body, court, governmental agency or regulatory authority (including the enactment of
any legislation and the publication of any judicial decision or regulatory determination on or
after the date of the issuance of the Preferred Securities of such Max Capital Trust), in either
case on or after the date of the issuance of the Preferred Securities of such Max Capital Trust,
there is more than an insubstantial risk that (i) the Trust is or will be subject to United States
Federal income tax with respect to interest received on the corresponding series of Securities, or
(ii) such Max Capital Trust is, or will be within 90 days of the date of such Opinion of Counsel,
subject to more than a de minimis amount of taxes, duties, assessments or other governmental
charges.

     “Trust Agreement” means the Declaration of Trust substantially in the form attached hereto as
Annex A, as amended by an Amended and Restated Declaration of Trust Agreement substantially in such
form as may be specified as contemplated by Section 3.1 with respect to the Securities of any
series, in each case as amended from time to time.

     “Tranche” means a group of Securities which (a) are of the same series and (b) are identical
except as to principal amount and/or date of issuance.

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

     “Trust Securities,” with respect to any Max Capital Trust, means, collectively, the Common
Securities and Preferred Securities issued by such Max Capital Trust.

     “Trustee” means the Person identified as “Trustee” in the first paragraph hereof and, subject
to the provisions of ARTICLE 7, shall also include any successor trustee.

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

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

11

 

     “Vice President” means any vice president, whether or not designated by a number or a word or
words added before or after the title “vice president.”

ARTICLE 2

SECURITY FORMS

     Section 2.1 Forms Generally. The Securities of each series shall be in substantially such form
(not inconsistent with this Indenture) as shall be established pursuant to Section 3.1, in each
case with such appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Indenture or any indenture supplemental hereto, and may have such
letters, numbers or other marks of identification and such legends or endorsements placed thereon
as the Company may deem appropriate and as are not contrary to the provisions of this Indenture, or
as may be required to comply with any law or with any rules made pursuant thereto or with any rules
of any securities exchange or of any automated quotation system, or to conform to usage, all as
determined by the officers executing such Securities, as conclusively evidenced by their execution
of the Securities. If the forms of Securities of the series are established by, or by action taken
pursuant to, a Board Resolution, a copy of the Board Resolution together with an appropriate record
of any such action taken pursuant thereto, including a copy of the approved form of Securities
shall be certified by the Secretary or an Assistant Secretary of the Company and delivered to the
Trustee at or prior to the delivery of the Company Order contemplated by Section 3.3 for the
authentication and delivery of such Securities.

     The definitive Securities shall be prepared by the Company and 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 conclusively evidenced by their execution of such
Securities, subject to the rules of any securities exchange or automated quotation system on which
such Securities are listed or quoted and (with respect to Global Securities) to the rules of the
Depositary.

     Section 2.2 Form of Trustee’s Certificate of Authentication. The Trustee’s Certificate of
Authentication on all Securities shall be in substantially the following form:

“CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory”
	 	 

     Section 2.3 Form of Trustee’s Certificate of Authentication by an Authenticating Agent. If at any
time there shall be an Authenticating Agent appointed with respect to any series of Securities,
then the Trustee’s Certificate of Authentication by such Authenticating Agent on all Securities of
each such series shall be in substantially the following form:

12

 

“CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authenticating Agent
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory”
	 	 

     
Section 2.4

Securities Issuable in the Form of Global Securities.

     (a) If the Company shall establish pursuant to Section 3.1 that the Securities of a
particular series are to be issued in whole or in part as one or more Global Securities,
then the Company shall execute, and the Trustee shall, in accordance with Section 3.3 and
the Company Order deliver to the Trustee thereunder, authenticate and make available for
delivery, one or more Global Securities, each of which (i) shall represent an aggregate
principal amount equal to the aggregate principal amount of the Outstanding Securities of
such series to be represented by such Global Security and may also provide that the
aggregate amount of Outstanding Securities represented thereby may from time to time be
increased or reduced to reflect exchanges, (ii) shall be registered in the name of the
Depositary or its nominee, (iii) shall be delivered by the Trustee to the Depositary or
pursuant to the Depositary’s instruction and (iv) if required by the Depositary, shall bear
a legend reflecting the Depositary’s interest in such Global Security.

     (b) Notwithstanding any provision of Section 3.6, any Global Security thereof may be
transferred, in whole but not in part, and in the manner provided in Section 3.6, only to
another nominee of the Depositary for such series or Tranche, or to a successor Depositary
for such series selected or approved by the Company or to a nominee of such successor
Depositary.

     (c) If at any time the Depositary for Securities of a series or Tranche thereof
notifies the Company that it is unwilling or unable to continue as Depositary for Securities
of such series or Tranche or if at any time the Depositary shall no longer be registered or
in good standing under the Exchange Act, or other applicable statute or regulation, and a
successor Depositary is not appointed by the Company within 90 days after the Company
receives such notice or becomes aware of such condition, as the case may be, this Section
shall no longer be applicable to the Securities of such series or Tranche and the Company
will execute, and the Trustee, upon receipt of a Company Order for the authentication and
delivery of individual securities of such series or Tranche, will authenticate and make
available for delivery, Securities of such series or Tranche, in authorized denominations,
and in an aggregate principal amount equal to  the

13

 

aggregate principal amount of the Global
Security or Global Securities of such series or Tranche in exchange for such Global Security
or Global Securities.

     The Company may at any time determine that Securities of any series or Tranche thereof shall
no longer be represented by one or more Global Securities and that the provisions of this Section
shall no longer apply to the Securities of such series or Tranche. In such event the Company will
execute and the Trustee, upon receipt of a Company Order for the authentication and delivery of
individual Securities of such series or Tranche, will authenticate and make available for delivery
Securities of such series or Tranche, in authorized denominations, and in an aggregate principal
amount equal to the aggregate principal amount of the Global Security or Global Securities of such
series or Tranche in exchange for such Global Security.

     If specified by the Company pursuant to Section 3.1 with respect to a series of Securities or
Tranche thereof, the Depositary for such series or Tranche may surrender a Global Security for such
series or Tranche in exchange in whole or in part for individual Securities of such series or
Tranche on such terms as are acceptable to the Company and such Depositary. Thereupon, the Company
shall execute, and the Trustee shall authenticate and make available for delivery, without service
charge,

     (i) to each Person specified by such Depositary a new individual Security or
Securities of the same series or Tranche, of any authorized denomination as
requested by such Person in aggregate principal amount equal to and in exchange for
such Persons’ beneficial interest in the Global Security; and

     (ii) to such Depositary a new Global Security in a denomination equal to the
difference, if any, between the principal amount of the surrendered Global Security
and the aggregate principal amount of individual Securities delivered to Holders
thereof.

     In any exchange provided for in any of the preceding paragraphs of this Section, the Company
will execute and the Trustee will authenticate and make available for delivery individual
Securities in registered form in authorized denominations.

     Upon the exchange of a Global Security for individual Securities, such Global Security shall
be cancelled by the Trustee. Individual Securities issued in exchange for a Global Security
pursuant to this Section shall be registered in such names and in such authorized
denominations as the Depositary for such Global Security shall instruct the Trustee.

     The Trustee shall make such Securities available for delivery to the Persons in whose names
such Securities are so registered.

ARTICLE 3

THE SECURITIES

     Section 3.1 Amount Unlimited; Issuable in Series. The aggregate principal amount of Securities
which may be authenticated and delivered under this Indenture is unlimited. The

14

 

Securities of each
series shall be subordinated in right of payment to all Company Senior Indebtedness with respect to
such series as provided in ARTICLE 13.

     The Securities may be issued from time to time in one or more series. With respect to the
Securities of any particular series, there shall be established in, or pursuant to the authority
granted in, a resolution of the Board of Directors, and set forth in an Officer’s Certificate, or
established in one or more indentures supplemental hereto prior to the issuance of Securities of a
series:

     (a) the form of the Securities of the series;

     (b) the title of the Securities of the series (which shall distinguish the Securities
of the series from all other Securities);

     (c) any limit upon the aggregate principal amount of the Securities of the series that
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 Company or exchange for Securities of another issuer pursuant to its
terms, or pursuant to or as contemplated by the terms of such Securities);

     (d) the date or dates on which the Securities of the series may be issued;

     (e) the date or dates, which may be serial, on which the principal of, and premium, if
any, on, the Securities of the series are payable;

     (f) the rate or rates, or the method of determination thereof, at which the Securities
of the series shall bear interest, if any, the rate or rates and the extent to which
Additional Interest, if any, shall be payable in respect of such Securities, the date or
dates, if any, from which such interest shall accrue or the method or methods, if any, by
which such date or dates are to be determined, the Interest Payment Dates, if any, on which
such interest shall be payable on a cash basis and the Regular Record Date, if any, for the
interest payable on Registered Securities on any Interest Payment Date, the right, pursuant
to Section 3.13 hereof or as otherwise set forth therein, of the Company to defer or extend
an interest payment period and the duration of any such Extension Period,
including the maximum consecutive period during which interest payment periods may be
extended, whether and under what circumstances Additional Amounts on such Securities or any
of them shall be payable, any Overdue Rate (including the rate or rates at which overdue
principal shall bear interest, if different from the rate or rates at which such Securities
shall bear interest prior to Maturity, and, if applicable, the rate or rates at which
overdue premium or interest shall bear interest, if any); any formula or other method or
other means by which any such rate or rates shall be determined, by reference to an index or
other fact or event ascertainable outside this Indenture or otherwise; the date or dates
from which such interest shall accrue the method or methods, if any, by which such date or
dates are to be determined, the Interest Payment Dates on which such interest shall be
payable and the Regular Record Date, if other than as set forth in Section 3.8, for the
determination of Holders to whom interest is payable, whether and under what circumstances
Additional Amounts on such Securities or any of them shall be

15

 

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

     (g) the place or places where the principal of, and premium, if any, and interest on or
Additional Amounts, if any, with respect to such Securities of the series shall be payable
(if other than as provided in Section 4.2);

     (h) the provisions, if any, establishing the price or prices at which, the date or
dates on which, the period or periods within 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,
pursuant to any sinking fund or otherwise;

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

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

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

     (l) whether the Securities of the series are to be issued as Original Issue Discount
Securities and, if so, the amount of the discount with respect thereto;

     (m) if other than the principal amount thereof, the portion of the principal amount of
the Securities of the series which shall be payable upon declaration of acceleration with
respect thereto pursuant to Section 6.1 or payable in bankruptcy pursuant to Section 6.2;

     (n) the relative degree, if any, to which Securities of such series shall be senior to
or be subordinated to other series of Securities in respect thereof or other Indebtedness of
the Company in right of payment, whether such other series of Securities or other
Indebtedness is outstanding or not;

     (o) any Events of Default or restrictive covenants provided for with respect to the
Securities of the series, if other than as set forth in Section 6.1, ARTICLE 4 and ARTICLE
11;

16

 

     (p) in case the Securities of the series do not bear interest, the applicable dates for
the purpose of Section 3.8;

     (q) whether either or both of Section 12.2(b) relating to defeasance or Section 12.2(c)
relating to covenant defeasance shall not be applicable to the Securities of such series, or
any covenants in addition to those specified in Section 12.2(c) relating to the Securities
of such series which shall be subject to covenant defeasance, and any deletions from, or
modifications or additions to, the provisions of ARTICLE 12 in respect of the Securities of
such series;

     (r) any trustees, paying agents, transfer agents or registrars with respect to the
Securities of the series;

     (s) whether the Securities of the series are issuable in whole or in part as one or
more Global Securities and, in such case, the identity of the Depositary for such Global
Security or Global Securities;

     (t) the extent to which, or the manner in which, any interest payment or Additional
Amounts on a Global Security on an Interest Payment Date will be paid and the manner in
which any principal or premium, if any, on any Global Security will be paid;

     (u) any restrictions on transfer with respect to the Securities of the series and any
legend reflecting such restrictions to be placed on such Securities;

     (v) the form or forms of the Trust Agreement (if different from the form attached
hereto as Annex A), Amended and Restated Trust Agreement and Guarantee Agreement;

     (w) if the amount of payment of principal of, and premium, if any, or interest on or
Additional Amounts, if any, with respect to such Securities of the series may be determined
with reference to an index, formula or other method, and, if so, the terms and conditions
upon which and the manner in which such amounts shall be determined;

     (x) any exceptions to Section 15.9 or in the definition of “Business Day” with respect
to the Securities of the series;

     (y) if other than U.S. dollars, the Foreign Currency in which the Securities of such
series shall be denominated and in which payments or principal of, and any premium or
interest on or Additional Amounts with respect to, such Securities shall or may be payable;

     (z) if the principal of, any premium or interest on or any Additional Amounts with
respect to any of such Securities are to be payable, at the election of the Company or a
Holder thereof or otherwise, in Dollars or in a Foreign Currency other than that in which
such Securities are stated to be payable, the date or dates on which, the period or periods
within which, and the other terms and conditions upon which, such election may be made, and
the time and manner of determining the exchange rate between the

17

 

Currency in which such
Securities are stated to be payable and the Currency in which such Securities or any of them
are to be paid pursuant to such election, and any deletions from or modifications of or
additions to the terms of this Indenture to provide for or to facilitate the issuance of
Securities denominated or payable, at the election of the Company or a Holder thereof or
otherwise, in a Foreign Currency; and

     (aa) any other terms of the series and any other modifications or additions to this
Indenture in respect of such Securities (which terms shall not be contrary to the provisions
of this Indenture).

     With respect to Securities of a series subject to a Periodic Offering, such resolution of the
Board of Directors or indenture supplemental hereto may provide general terms or parameters and may
provide that the specific terms of particular Securities, and the Persons authorized to determine
such terms or parameters, may be determined in accordance with or pursuant to the Company Order
referred to in Section 3.1.

     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 authority granted in, such
resolution of the Board of Directors or in any such indenture supplemental hereto.

     Anything herein to the contrary notwithstanding, the Trustee shall be under no obligation to
authenticate and deliver Securities of any series the terms of which, established as contemplated
by this Section, would affect the rights, duties, obligations, liabilities or immunities of the
Trustee under this Indenture.

     Section 3.2 Form and Denominations. In the absence of any specification pursuant to Section 3.1
with respect to the Securities of any series, the Securities of such series shall be issuable in
fully registered form, without coupons, in denominations of $1,000 and any integral multiple
thereof.

     Section 3.3 Authentication, Dating and Delivery of Securities. At any time and from time to time after the original execution and delivery of this Indenture,
the Company may deliver Securities of any series, executed by the Company, to the Trustee for
authentication. Except as otherwise provided in this Article, the Trustee shall thereupon
authenticate and make available for delivery, or cause to be authenticated and delivered, said
Securities to or upon a Company Order, without any further action by the Company; provided,
however, that the Trustee shall authenticate and make available for delivery Securities of such
series for original issue from time to time in the aggregate principal amount established for such
series pursuant to such procedures, acceptable to the Trustee and to such recipients, as may be
specified from time to time by a Company Order. The maturity dates, original issue dates, interest
rates and any other terms of the Securities of such series shall be determined by or pursuant to
such Company Order and procedures. If provided for in such procedures, such Company Order may
authorize authentication and delivery pursuant to oral instructions from the Company or its duly
authorized agent, which instructions shall be promptly confirmed in writing.

18

 

     In authenticating such Securities and accepting the responsibilities under this Indenture in
relation to such Securities, the Trustee shall be provided with, prior to the initial
authentication of such Securities, and (subject to Section 7.1) shall be fully protected in relying
upon:

     (a) a Board Resolution relating thereto;

     (b) an Officer’s Certificate or an executed supplemental indenture setting forth the
terms of such Securities as provided in Section 3.1;

     (c) an Officer’s Certificate, which shall state that all conditions precedent provided
for in this Indenture relating to the issuance of such Securities have been complied with,
that no Event of Default with respect to any series of Securities has occurred and is
continuing and that the issuance of such Securities does not constitute and will not result
in (i) any Event of Default or any event or condition, which, upon the giving of notice or
the lapse of time or both, would become an Event of Default or (ii) any default under the
provisions of any other instrument or agreement by which the Company is bound; and

     (d) an Opinion of Counsel, which shall state:

     (i) that the form and the terms of such Securities have been duly authorized by
the Company and have been established in conformity with the provisions of this
Indenture;

     (ii) 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 binding obligations of the Company
enforceable in accordance with their terms, except to the extent enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
arrangement, fraudulent conveyance, fraudulent transfer and other similar laws
affecting the enforcement of creditors’ rights generally and by general principles
of equity (regardless of whether enforceability is considered in a proceeding in
equity or at law);

     (iii) that no consent, approval, authorization, order, registration or
qualification of or with any court or any governmental agency or body having
jurisdiction over the Company is required for the execution and delivery of such
Securities by the Company, except such as have been obtained (and except that no
opinion need be expressed as to state securities or “blue sky” laws); and

     (iv) all applicable laws and requirements in respect of the execution and
delivery by the Company of such Securities have been complied with.

     Notwithstanding the provisions of Section 3.1 and of the immediately preceding paragraph, with
respect to Securities of a series subject to a Periodic Offering, the Trustee shall be provided
with the Officer’s Certificate otherwise required pursuant to Section 3.3(c) and the Opinion of
Counsel required by this Section 3.3(d) only once at or prior to the time of the first
authentication and delivery of such Securities (provided that such Opinion of Counsel addresses

19

 

the authentication and delivery of all such Securities) and that, in lieu of the opinions described in
clauses (ii) and (iii) above, Counsel may opine that:

     (x) when the terms of such Securities shall have been established pursuant to a Company
Order or Orders or pursuant to such procedures as may be specified from time to time by a
Company Order or Orders, all as contemplated by and in accordance with the instrument or
instruments delivered pursuant to clause (i) above, such terms will have been duly
authorized by the Company and will have been established in conformity with the provisions
of this Indenture; and

     (y) when such Securities shall have been authenticated and delivered by the Trustee in
accordance with this Indenture and the Company Order or Orders or the specified procedures
referred to in paragraph (x) above and issued and delivered by the Company in the manner and
subject to any conditions specified in such Opinion of Counsel, such Securities will
constitute valid obligations of the Company enforceable in accordance with their terms
except to the extent enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other similar laws affecting the enforcement of creditors
rights generally and by the effect of general principles of equity (regardless of whether
enforceability is considered in a proceeding in equity or at law).

     With respect to Securities of a series subject to a Periodic Offering, the Trustee may
conclusively rely, as to the authorization by the Company of any of such Securities, the forms and
terms thereof, the validity thereof and the compliance of the authentication and delivery thereof
with the terms and conditions of this Indenture, upon the Opinion or Opinions of Counsel, the
Officer’s Certificate and the certificates and other documents delivered pursuant to this Section
3.3 at or prior to the time of the first authentication and delivery of Securities of such series
until any of such opinions, certificates or other documents have been superseded or revoked or
expire by their terms; provided, however, that any request by the Company to the Trustee to
authenticate and deliver Securities of such series shall constitute a representation and warranty
by the Company that as of the date of such request the statements made in the most recent Officer’s
Certificate delivered pursuant to Section 3.3(c) are true and correct as if made on and as of the
date thereof.

     The Trustee shall have the right to decline to authenticate and make available for delivery
any Securities under this Section if the Trustee, being advised by counsel, determines that such
action would expose the Trustee to personal liability.

     Each Security shall be dated the date of its authentication, except as otherwise provided
pursuant to Section 3.1 with respect to the series of which such Security is a part and except that
any substitute Security under Section 3.7 shall be dated so that neither gain nor loss in interest
shall result from any mutilation, destruction, loss or theft of the relevant Predecessor Security.

     Section 3.4 Execution of Securities. The Securities shall be signed in the name of and on behalf
of the Company by both (a) its chairman or deputy chairman or president or any vice president and
(b) its treasurer, any assistant treasurer, its secretary or any assistant secretary, which may,
but need not, be attested. Such signatures may be the manual or facsimile signatures

20

 

of such officers. Typographical and other minor errors or defects in any such signature shall not affect
the validity or enforceability of any Security that has been duly authenticated and delivered by
the Trustee.

     In case any officer of the Company who shall have signed any of the Securities shall cease to
be such officer before the Security so signed shall be authenticated and delivered by or on behalf
of the Trustee or disposed of by the Company, such Securities nevertheless may be authenticated and
delivered or disposed of as though the Person who signed such Securities had not ceased to be such
officer of the Company; and any Security may be signed on behalf of the Company by such Persons as,
at the actual date of the original execution of such Security, shall be the proper officers of the
Company, although at the date of the original execution and delivery of this Indenture, or at the
date of such Security, any such Person was not such an officer.

     Section 3.5 Certificate of Authentication. No Security shall be entitled to the benefits of this
Indenture or be valid or obligatory for any purpose, unless there appears on such Security a
certificate of authentication substantially in the form hereinbefore recited, executed by or on
behalf of the Trustee by manual signature. Such certificate by or on behalf of the Trustee upon
any Security executed by the Company shall be conclusive evidence that the Security so
authenticated has been duly authenticated and delivered hereunder and that the Holder is entitled
to the benefits of this Indenture.

     Section 3.6 Registration, Registration of Transfer and Exchange. Subject to the conditions set
forth below (and subject, with respect to Global Securities, to Section 2.4), Securities of any
series may be exchanged for a like aggregate principal amount of Securities of the same series and
having the same terms but in other authorized denominations. Securities to be exchanged shall be
surrendered at the offices or agencies to be maintained for such purposes as provided in Section
4.2, and the Company shall execute and the Trustee or any Authenticating Agent shall authenticate
and make available for delivery in exchange therefor the Security or Securities which the Holder
making the exchange shall be entitled to receive.

     The Company shall keep or cause to be kept, at one of said offices or agencies maintained
pursuant to Section 4.2, a register for each series of Securities issued hereunder (hereinafter
collectively referred to as the “Securities Register”) in which, subject to such reasonable
regulations as it may prescribe, the Company shall, subject to the provisions of Section 2.4,
provide for the registration of Securities of such series and shall register the transfer of
Securities of such series as in this Article provided. The Securities Register shall be in written
form or in any other form capable of being converted into written form within a reasonable time.
The Trustee is hereby appointed as the initial “Securities Registrar” for the purpose of
registering Securities and registering transfers of Securities as herein provided. Subject to the
provisions of Section 2.4, upon surrender for registration of transfer of any Security of any
series at any such office or agency, the Company shall execute and the Trustee or any
Authenticating Agent shall authenticate and make available for delivery in the name of transferee
or transferees a new Security or Securities of the same series for an equal aggregate principal
amount.

     The Company shall have the right to remove and replace from time to time the Security
Registrar for any series of Securities; provided that no such removal or replacement shall be
effective until a successor Security Registrar with respect to such series of Securities shall have

21

 

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

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

     Each Security issued upon registration of transfer or exchange of Securities pursuant to this
Section shall be the valid obligation of the Company, evidencing the same indebtedness and entitled
to the same benefits under this Indenture as the Security or Securities surrendered upon
registration of such transfer or exchange.

     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 3.10, Section 10.6 or Section 16.3 not
involving any transfer.

     The Company shall not be required (a) to issue, exchange or register the transfer of any
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 such series and ending at the close
of business on the day of such mailing, or (b) to exchange or register the transfer of any
Securities selected, called or being called for redemption except, in the case of any Security to
be redeemed in part, the portion thereof not to be redeemed.

     Section 3.7 Mutilated, Destroyed, Lost and Stolen Securities. In case any temporary or definitive Security shall become mutilated (whether by defacement or
otherwise) or be destroyed, lost or stolen, and 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, except as
otherwise provided in this Section, execute, and upon a Company Request, the Trustee shall
authenticate and make available for delivery, a new Security of the same series, tenor and
principal amount, bearing a number, letter or other distinguishing symbol not contemporaneously
outstanding, in exchange and substitution for the mutilated Security, or in lieu of and in
substitution for the Security so destroyed, lost or stolen. In every case the applicant for a
substituted Security shall furnish to the Company and to the Trustee and any agent of the Company
or the Trustee such security or indemnity as may be required by them to save each of them harmless,
and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company
and the Trustee and any agent of the Company or the Trustee evidence to their satisfaction of the
destruction, loss or theft of such Security and of the ownership thereof.

     Upon the issuance of any substitute Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may

22

 

be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee or any
Authenticating Agent) connected therewith.

     In case any Security which has matured or is about to mature or has been called for redemption
in full shall become mutilated or be destroyed, lost or stolen, the Company may, instead of issuing
a substitute Security, pay or authorize the payment of the same (without surrender thereof except
in the case of a mutilated Security). In every case, the applicant for such payment shall furnish
to the Company and to the Trustee and any agent of the Company or the Trustee such security or
indemnity as any of them may require to save each of them harmless, and, in every case of
destruction, loss or theft, the applicant shall also furnish to the Company and the Trustee and any
agent of the Company or the Trustee evidence to their satisfaction of the destruction, loss or
theft of such Security and of the ownership thereof.

     Every substitute Security of any series issued pursuant to the provisions of this Section by
virtue of the fact that any such Security is destroyed, lost or stolen shall constitute an
additional contractual obligation of the Company, whether or not the destroyed, lost or stolen
Security shall be at any time enforceable by anyone and shall be entitled to all the benefits of
(but shall be subject to all the limitations of rights set forth in) this Indenture equally and
proportionately with any and all other Securities of such series duly authenticated and delivered
hereunder. All Securities shall be held and owned upon the express condition that, to the extent
permitted by law, the foregoing provisions of this Section are exclusive with respect to the
replacement or payment of mutilated (whether by defacement or otherwise) or destroyed, lost or
stolen Securities and shall preclude any and all other rights or remedies notwithstanding any law
or statute existing or hereafter enacted to the contrary with respect to the replacement or payment
of negotiable instruments or other securities without their surrender.

     Section 3.8 Payment of Interest and Certain Additional Amounts; Interest Rights and Certain
Additional Amounts Preserved. The Holder of any Securities at the close of business on the Regular
Record Date with respect to any Interest Payment Date shall be entitled to receive the interest, if
any, and any Additional
Amounts payable on such Interest Payment Date notwithstanding the cancellation of such Securities
upon any registration of transfer or exchange subsequent to the Regular Record Date and prior to
such Interest Payment Date, and, if provided for in the Board Resolution or supplemental indenture
pursuant to Section 3.1, in the case of a Security issued between a Regular Record Date and the
initial Interest Payment Date relating to such Regular Record Date, interest for the period
beginning on the date of issue and ending on such initial Interest Payment Date shall be paid to
the Person to whom such Security shall have been originally issued. Except as otherwise specified
as contemplated by Section 3.1, for Securities of a particular series the term “Regular Record
Date” as used in this Section with respect to any Interest Payment Date shall mean the close of
business on the last day of the calendar month preceding such Interest Payment Date if such
Interest Payment Date is the fifteenth day of a calendar month and shall mean the close of business
on the fifteenth day of the calendar month preceding such Interest Payment Date if such Interest
Payment Date is the first day of a calendar month, whether or not such day shall be a Business Day.
At the option of the Company, payment of interest on any Security may be made by check mailed to
the address of the Person entitled thereto (which shall be the Depositary in the case of Global
Securities) as such address shall appear in the Securities Register.

23

 

     If and to the extent the Company shall default in the payment of the interest due or any
Additional Amounts on such Interest Payment Date in respect of any Securities, such defaulted
interest shall be paid by the Company at its election in each case, as provided in clause (a) or
(b) below:

     (a) The Company may make payment of any defaulted interest to the Holder of Securities
at the close of business on a Special Record Date established by notice given by mail, by or
on behalf of the Company, to such Holder not less than 15 days preceding such Special Record
Date, such Special Record Date to be not less than 10 days preceding the date for payment of
such defaulted interest.

     (b) 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 the Securities of such series may be listed, and upon such notice as may
be required by such exchange, if, after notice given by the Company to the Trustee of the
proposed payment pursuant to this clause, such manner of payment shall be deemed practicable
by the Trustee.

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

     Section 3.9 Cancellation of Securities; Destruction Thereof. All Securities surrendered for
payment, redemption, registration of transfer or exchange, or for credit against any payment in
respect of a sinking or analogous fund, shall, if surrendered to the Company or any Paying Agent or
any Securities Registrar, be delivered to the Trustee for cancellation or, if surrendered to the
Trustee, shall be cancelled by it, and no Securities shall be
issued in lieu thereof except as expressly permitted by any of the provisions of this Indenture.
All cancelled Securities held by the Trustee shall be disposed of by the Trustee in accordance with
its customary procedures, unless by a company order the Company directs their return to it. If the
Company shall acquire any of the Securities, such acquisition shall not operate as a redemption or
satisfaction of the indebtedness represented by such Securities unless and until the same are
delivered to the Trustee for cancellation.

     Section 3.10 Temporary Securities. Pending the preparation by the Company of definitive Securities
of any series, the Company may execute and the Trustee shall authenticate and make available for
delivery in the manner provided in Section 3.3, temporary Securities for such series (printed,
lithographed, typewritten or otherwise reproduced, in each case in form satisfactory to the
Trustee). Temporary Securities of any series shall be issuable in any authorized denomination, and
substantially in the form of the definitive Securities of such series in lieu of which they are
issued but with such omissions, insertions and variations as may be appropriate for temporary
securities, all as may be determined by the Company with the concurrence of the Trustee. Temporary
Securities may contain such reference to any provisions of this Indenture as may be appropriate.
Every temporary Security shall be executed by the Company and be authenticated by the Trustee upon
the same conditions and in substantially the same manner, and with like effect, as the definitive
Securities. Without unreasonable delay the

24

 

Company shall execute and shall furnish definitive
Securities of such series and thereupon temporary Securities of such series may be surrendered in
exchange therefor without charge at the Corporate Trust Office of the Trustee, and the Trustee
shall authenticate and make available for delivery in exchange for such temporary Securities an
equal aggregate principal amount of definitive Securities of the same series. Such exchange shall
be made by the Company at its own expense and without any charge therefor except that in case of
any such exchange involving any registration of transfer the Company may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in relation thereto.
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 authenticated and
delivered hereunder.

     Section 3.11 Computation of Interest. Except as otherwise specified as contemplated by Section 3.1
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 3.12 CUSIP Numbers. The Company in issuing the Securities may use “CUSIP” numbers (if then
generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a
convenience to Holders as set forth in Section 16.2. The Company shall notify the Trustee in
writing of any change in “CUSIP” numbers.

     Section 3.13 Extension of Interest Payment Period. If specified as contemplated by Section 3.1 with respect to the Securities of a particular
series and subject to the terms, conditions and covenants, if any, so specified, the Company shall
have the right, at any time and from time to time during the term of such series, to defer the
payment of interest on such Securities for such period or periods as may be specified as
contemplated by Section 3.1 (each, an “Extension Period”), during which Extension Periods the
Company shall have the right to make no payments or partial payments of interest on any Interest
Payment Date. No Extension Period shall end on a day other than an Interest Payment Date. At the
end of any such Extension Period, the Company shall pay all interest then accrued and unpaid on the
Securities (together with Additional Interest thereon, if any, at the rate specified for the
Securities of such series to the extent permitted by applicable law). Prior to the termination of
any such Extension Period, the Company may further extend the interest payment period, provided
that no Extension Period shall exceed the period or periods specified in such Securities or extend
beyond the Stated Maturity of the principal of such Securities. Upon termination of any Extension
Period and upon the payment of all accrued and unpaid interest and any Additional Interest then due
on any Interest Payment Date, the Company may elect to begin a new Extension Period, subject to the
above requirements. No interest shall be due and payable during an Extension Period, except at the
end thereof.

     The Company shall give the Holders of the Securities of such series and the Trustee written
notice of its election to begin any such Extension Period at least one Business Day prior to the
Interest Payment Date or, with respect to the Securities of a series issued to a Max Capital
Trust, prior to the earlier of (i) the date the Distributions on the Preferred Securities of such
Max Capital Trust are payable or (ii) the date the trustees of such Max Capital Trust are required
to give notice to any securities exchange or other applicable self-regulatory organization or to
holders of such Preferred Securities of the record date or the date such Distributions are payable,
but in any event not less than one Business Day prior to such record date.

25

 

     The Trustee shall promptly give notice of the Company’s election to begin any such Extension
Period to the Holders of the outstanding Securities of such series.

     Section 3.14 Right of Set-Off. With respect to the Securities of a series issued to a Max Capital
Trust, notwithstanding anything to the contrary in this Indenture, the Company shall have the right
to set-off any payment it is otherwise required to make thereunder in respect of any such Security
to the extent the Company, as applicable, has theretofore made, or is concurrently on the date of
such payment making, a payment under the Preferred Securities Guarantee relating to such Security
or under Section 6.7 hereof, as applicable.

     Section 3.15 Agreed Tax Treatment. Each Security issued hereunder shall provide that the Company
and, by its acceptance of a Security or a beneficial interest therein, the Holder of, and any
Person that acquires a beneficial interest in, such Security agree that for United States Federal,
state and local tax purposes it is intended that such Security constitute indebtedness.

     Section 3.16 Extension of Stated Maturity; Adjustment of Stated Maturity Upon an Exchange. If
specified as contemplated by Section 3.1 with respect to the Securities of a particular series, the
Company shall have the right to (a) change the Stated Maturity of the principal of the Securities
of such series upon the liquidation of the applicable Max Capital Trust and the exchange of such
Securities for the Preferred Securities of such Max Capital Trust, or (b) extend the Stated
Maturity of the principal of the Securities of such series; provided that, at the time any election
to extend such Stated Maturity is made and at the time of such extension, (i) the Company is not in
bankruptcy, otherwise insolvent or in liquidation, (ii) the Company is not in default in the
payment of any interest or principal or Additional Amounts on the Securities of such series and no
deferred interest payments thereon have accrued, (iii) the applicable Max Capital Trust is not in
arrears on payments of Distributions on its Preferred Securities and no deferred Distributions
thereon have accumulated, (iv) the Securities of such series are rated not less than BBB- by
Standard & Poor’s Ratings Services or Baa3 by Moody’s Investors Service, Inc. or the equivalent by
any other nationally recognized statistical rating organization and (v) the extended Stated
Maturity is no later than the 49th anniversary of the initial issuance of the Preferred Securities
of the applicable Max Capital Trust; provided, further, that, if the Company exercises its right to
liquidate the applicable Max Capital Trust and exchange the Securities of such series for the
Preferred Securities of such Max Capital Trust as specified in clause (a) above, any changed Stated
Maturity of the principal of the Securities of such series shall be no earlier than the date that
is five years after the initial issue date of the Preferred Securities and no later than the date
30 years (plus an extended term of up to an additional 19 years if the above-referenced conditions
are satisfied) after the initial issue date of the Preferred Securities of the applicable Max
Capital Trust.

ARTICLE 4

COVENANTS OF THE COMPANY

     The Company covenants and agrees for the benefit of each series of Securities (except to the
extent that any series of Securities is excluded from the benefits of any of such covenants
pursuant to Section 3.1(o)) that on and after the date of original execution of this Indenture and
so long as any of the Securities of such series remain Outstanding:

26

 

     Section 4.1 Payment of Securities. The Company will duly and punctually pay or cause to be paid
the principal of any premium and interest (including any Additional Interest) on, and any
Additional Amounts with respect to the Securities of such series at the place or places, at the
respective times and in the manner provided in such Securities and in the Indenture.

     Section 4.2 Offices or Agency. The Company will maintain in the Borough of Manhattan, The City of
New York, New York, an office or agency where such Securities may be presented or surrendered for
payment, where such Securities may be surrendered for registration of transfer or exchange and
where notices and demands to or upon the Company in respect of such Securities and this Indenture may be served,
which office or agency shall initially be the Corporate Trust Office of the Trustee or, if the
Corporate Trust Office of the Trustee is not located in the Borough of Manhattan, The City of New
York, such office or agency shall be the principal corporate trust office of the Authenticating
Agent designated pursuant to Section 7.14 hereof. The Company will give prompt written notice to
the Trustee of any change in the location of any such office or agency. If at any time the Company
shall fail to maintain such required office or agency or shall fail to furnish the Trustee with the
required information with respect thereto, presentations, surrenders, notices and demands in
respect of Securities may be made or served at the Corporate Trust Office of the Trustee and the
corporate trust office of any Authenticating Agent appointed hereunder; and the Company hereby
appoints the Trustee and any Authenticating Agent appointed hereunder its agents 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 (in or
outside The City of New York) where the Securities of one or more series, or any Tranche thereof
may be presented or surrendered for any or all of such purposes, and may from time to time rescind
such designation; provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain for such purposes an office or agency in the
Borough of Manhattan, The City of New York. The Company will promptly notify the Trustee of any
such designation or rescission thereof.

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

     Section 4.3 Money for Securities Payments to Be Held in Trust. If the Company shall at any time
act as its own Paying Agent with respect to any series of Securities, it shall, on or before each
due date of the principal of, any premium or interest (including any Additional Interest) on or
Additional Amounts with respect to any of the Securities of such series, segregate and hold in
trust for the benefit of the Persons entitled thereto a sum in the currency or currencies, currency
unit or units or composite currency or currencies in which the Securities of such series are
payable (except as otherwise specified pursuant to Section 3.1 for the Securities of such series)
sufficient to pay the principal or any premium, interest (including any Additional Interest) or
Additional Amounts so becoming due until such sums shall be paid to such Persons or otherwise
disposed of as herein provided, and shall promptly notify the Trustee in writing of its action or
failure so to act.

27

 

     Whenever the Company shall have one or more Paying Agents for any series of Securities, it
shall, on or prior to each due date of the principal of, any premium or interest (including any
Additional Interest) on or any Additional Amounts with respect to any Securities of such series,
deposit with any Paying Agent a sum (in the currency or currencies, currency unit or units or
composite currency or currencies described in the preceding paragraph) sufficient to pay the
principal and any premium, interest (including any Additional Interest) or Additional Amounts so
becoming due, such sum to be held in trust for the benefit of the Persons entitled
thereto, and (unless such Paying Agent is the Trustee) the Company will promptly notify the
Trustee in writing of its action or failure so to act.

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

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

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

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

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

     Anything in this Section to the contrary notwithstanding, the agreement to hold sums in trust
as provided in this Section is subject to the provisions of Section 12.3, Section 12.4 and Section
12.5.

     Section 4.4 Additional Amounts. If any Securities of a series provide for the payment of
Additional Amounts, the Company agrees to pay to the Holder of any such Security Additional Amounts
as provided in or pursuant to this Indenture or such Securities.

     Whenever in this Indenture there is mentioned, in any context, the payment of the principal of
or any premium or interest on, or in respect of, any Security of any series or the net proceeds
received on the sale or exchange of any Security of any series, such mention shall be deemed to
include mention of the payment of Additional Amounts provided by the terms of such

28

 

series established hereby or pursuant hereto to the extent that, in such context, Additional Amounts are,
were or would be payable in respect thereof pursuant to such terms, and express mention of the
payment of Additional Amounts (if applicable) in any provision hereof shall not be construed as
excluding the payment of Additional Amounts in those provisions hereof where such express mention
is not made.

     Except as otherwise provided in or pursuant to this Indenture or the Securities of the
applicable series, if the Securities of agencies provide for the payment of Additional Amounts, at
least 10 days prior to the first Interest Payment Date with respect to such series of Securities
(or if the Securities of such series shall not bear interest prior to Maturity, the first day on
which a payment of principal is made), and at least 10 days prior to each date of payment of
principal or interest if there has been any change with respect to the matters set forth in the
below-mentioned Officer’s Certificate, the Company shall furnish to the Trustee and the principal
Paying Agent or Paying Agents, if other than the Trustee, an Officer’s Certificate instructing the
Trustee and such Paying Agent or Paying Agents whether such payment of principal of and premium or
interest, if any, on the Securities of such series shall be made to Holders of Securities of such
series who are United States Aliens without withholding for or on account of any tax assessment or
other governmental charge described in the Securities of such series. If any such withholding
shall be required, then such Officer’s Certificate shall specify by country the amount, if any,
required to be withheld on such payments to such Holders of Securities and the Company agrees to
pay to the Trustee or such Paying Agent the Additional Amounts required by the terms of such
Securities. The Company covenants to indemnify the Trustee and any Paying Agent for, and to hold
them harmless against, any loss, liability or expense reasonably incurred without negligence or bad
faith on their part arising out of or in connection with actions taken or omitted by any of them in
reliance on any Officer’s Certificate furnished pursuant to this Section 4.4.

     Section 4.5 Redemption for Tax Purposes. The Company may redeem the Securities at its option, in
whole but not in part, at a Redemption Price equal to 100% of the principal amount, together with
accrued and unpaid interest and Additional Amounts, if any, to the date fixed for redemption, at
any time it receives an opinion of counsel that as a result of (i) any change in or amendment to
the laws or treaties (or any regulations or rulings promulgated under these laws or treaties) of
Bermuda or any taxing jurisdiction (or of any political subdivision or taxation authority affecting
taxation) or any change in the application or official interpretation of such laws, regulations or
rulings, or (ii) any action taken by a taxing authority of Bermuda or any taxing jurisdiction (or
any political subdivision or taxing authority affecting taxation) which action is generally applied
or is taken with respect to the Company, or (iii) a decision rendered by a court of competent
jurisdiction in Bermuda or any taxing jurisdiction (or any political subdivision) whether or not
such decision was rendered with respect to the Company, there is a substantial probability that the
Company will be required as of the next Interest Payment Date to pay Additional Amounts with
respect to the Securities as provided in Section 4.4 and such requirements cannot be avoided by the
use of reasonable measures (consistent with practices and interpretations generally followed or in
effect at the time such measures could be taken) then available. If the Company elects to redeem
the Securities under this provision it will give written notice of such election to the Trustee.
If the Company elects to redeem the Securities under this provision it will also mail a notice of
redemption at least 30 days but no more than 60 days before the Redemption Date to each Holder of
the Securities to be redeemed. Unless the Company defaults in the payment of the Redemption Price,
on and after the Redemption Date,

29

 

interest will cease to accrue on the Securities or portions
thereof called for redemption. Any such redemption will be subject to ARTICLE 16 hereof.

     Section 4.6 Corporate Existence. Subject to ARTICLE 11, the Company shall do or cause to be done all things necessary to preserve
and keep in full force and effect its legal existence and rights (charter and statutory) and
franchises; provided, however, that the foregoing shall not obligate the Company to preserve any
such right or franchise if the Company shall determine that the preservation thereof is no longer
desirable in the conduct of its business and that the loss thereof is not disadvantageous in any
material respect to any Holder.

     Section 4.7 Waiver of Certain Covenants. The Company may omit in any particular instance to comply
with any term, provision or condition set forth in Section 3.1(o) and Article IV with respect to
the Securities of any series if before the time for such compliance the Holders of at least a
majority in principal amount of the Outstanding Securities of such series, by act of such Holders,
either shall waive such compliance in such instance or generally shall have waived compliance with
such term, provision or condition, but no such waiver shall extend to or affect such term,
provision or condition except to the extent so expressly waived, and, until such waiver shall
become effective, the obligations of the Company and the duties of the Trustee in respect of any
such term, provision or condition shall remain in full force and effect.

     Section 4.8 Certificates to Trustee. The Company will deliver to the Trustee, within 120 days
after the end of each fiscal year of the Company ending after the date hereof, a certificate,
signed by the principal executive officer, principal financial officer or principal accounting
officer, stating whether or not to the best knowledge of the signer thereof the Company is in
default (without regard to periods of grace or requirements of notice) in the performance and
observance of any of the terms, provisions and conditions hereof, and if the Company shall be in
default, specifying all such defaults and the nature and status thereof of which they may have
knowledge.

     The Company shall deliver to the Trustee, within five days after becoming aware of the
occurrence thereof, written notice of any Event of Default or any event which after notice or lapse
of time or both would become an Event of Default.

     Section 4.9 Calculation of Original Issue Discount. The Company shall deliver to the Trustee
promptly at the end of each calendar year (i) a written notice specifying the amount of original
issue discount (including daily rates and accrual periods) accrued on any Outstanding Original
Issue Discount Securities as of the end of such year and (ii) such other specific information
relating to such original issue discount as may then be relevant under the Code, as amended from
time to time.

     Section 4.10 Additional Sums. In the case of Securities of a series issued to a Max Capital
Trust, except as otherwise specified as contemplated by Section 3.1, in the event that (i) such Max
Capital Trust is the Holder of all of the Outstanding Securities of such series, (ii) a Tax Event
in respect of such Max Capital Trust shall have occurred and be continuing and (iii) the Company
shall not have (i) redeemed the Securities of such series pursuant to Section 16.4 or (ii)
terminated such Max
Capital Trust pursuant to Article VIII of the related Trust Agreement, the Company shall pay to
such Max Capital Trust (and its permitted successors

30

 

or assigns under the related Trust Agreement),
for so long as such Max Capital Trust (or its permitted successor or assignee) is the registered
holder of any Securities of such series, such additional amounts as may be necessary in order that
the amount of Distributions then due and payable by such Max Capital Trust on the related Preferred
Securities and Common Securities that at any time remain outstanding in accordance with the terms
thereof shall not be reduced as a result of any Additional Taxes (the “Additional Sums”). Whenever
in this Indenture there is mentioned, in any context, the payment of the principal of or any
premium or interest on, or in respect of, any Security of any series or any Coupon or the net
proceeds received on the sale or exchange of any Security of any series, such mention shall be
deemed to include mention of the payment of Additional Sums provided by the terms of such series
established hereby or pursuant hereto to the extent that, in such context, Additional Sums are,
were or would be payable in respect thereof pursuant to such terms, and express mention of the
payment of Additional Sums (if applicable) in any provision hereof shall not be construed as
excluding Additional Sums in those provisions hereof where such
express mention is not made; provided, however, that the extension of an interest payment period pursuant to Section 3.13 or the
terms of the applicable Securities shall not extend the payment of any Additional Sums that may be
due and payable during such interest payment period.

     Section 4.11 Payment of Expenses of Each Max Capital Trust. The Company covenants for the benefit
of the Holders of each series of Securities to pay or cause to be paid all of the obligations,
costs and expenses of each Max Capital Trust (other than payments in respect of Trust Securities)
in accordance with the provisions of its Trust Agreement and to pay the taxes of such Max Capital
Trust in accordance with the provisions of its Trust Agreement in order to permit such Max Capital
Trust to make distributions on and redemptions of its Preferred Securities in accordance with such
Trust Agreement.

     Section 4.12 Ownership of Common Securities. The Company covenants, as to each series of
Securities issued to a Max Capital Trust in connection with the issuance of Preferred Securities
and Common Securities by that Max Capital Trust, (a) to maintain directly or indirectly 100%
ownership of the Common Securities of such Max Capital Trust; provided, however, that any permitted
successor of the Company hereunder may succeed to the Company’s ownership of such Common
Securities, (b) not to voluntarily dissolve, wind-up or liquidate such Max Capital Trust, except in
connection with (i) a distribution of the Securities of such series to the holders of Preferred
Securities and Common Securities in liquidation of such Max Capital Trust, (ii) the redemption of
all of the Preferred Securities and Common Securities of such Max Capital Trust or (iii) certain
mergers, consolidations or amalgamations, each as permitted by the Trust Agreement of such Max
Capital Trust and (c) to use its reasonable efforts, consistent with the terms and provisions of
the related Trust Agreement, to cause such Max Capital Trust to remain classified as a grantor
trust and not an association taxable as a corporation for United States federal income tax
purposes.

31

 

ARTICLE 5

SECURITYHOLDER LISTS AND

REPORTS BY THE COMPANY AND THE TRUSTEE

     Section 5.1 Company to Furnish Trustee Information as to Names and Addresses of Securityholders.
If and so long as the Trustee shall not be the Security registrar for the Securities of any series,
the Company and any other obligor on the Securities will furnish or cause to be furnished to the
Trustee a list in such form as the Trustee may reasonably require of the names and addresses of the
Holders of the Registered Securities of such series pursuant to Section 312 of the Trust Indenture
Act (1) semi-annually not more than 5 days after each record date for the payment of interest on
such Registered Securities, as hereinabove specified, as of such record date and on dates to be
determined pursuant to Section 2.3 for non-interest bearing Registered Securities in each year, and
(2) at such other times as the Trustee may request in writing,
within 30 days after receipt by the Company of any such request as of a date not more than 15 days prior to the time such
information is furnished.

     Section 5.2 Preservation and Disclosure of Securityholder Lists.

     (a) The Trustee shall preserve, in as current a form as is reasonably practicable, the
names and addresses of Holders contained in the most recent list furnished to the Trustee as
provided in Section 4.1 and the names and addresses of Holders received by the Trustee in
its capacity as Security Registrar or paying agent. The Trustee may destroy any list
furnished to it as provided in Section 4.1 upon receipt of a new list so furnished.

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

     (c) 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 any of
them shall be held accountable by reason of the disclosure of any such information as to the
names and addresses of the Holders in accordance with Sections 4.1 and 4.2(2), regardless of
the source from which such information was derived, and that the Trustee shall not be held
accountable by reason of mailing any material pursuant to a request made under Section
4.2(2).

     Section 5.3 Reports by the Company. The Company shall provide to the Trustee, within 15 days after
it files such annual and quarterly reports, information, documents and other reports with the
Commission, copies of its annual report and of the information, documents and other reports (or
copies of such portions of any of the foregoing as the Commission may by rules and regulations
prescribe) which the Company is required to file with the Commission pursuant to Section 13 or
15(d) of the Exchange Act. Delivery of such reports, information and documents to the Trustee is
for informational purposes only and the Trustee’s receipt of such shall not constitute constructive
notice of any information contained therein or determinable from information contained therein,
including the Company’s compliance with any of its

32

 

covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officer’s Certificates). The Trustee shall be under no obligation
to analyze or make any credit decisions with respect to reports or other information received by it
pursuant to this section, but shall hold such reports and other information solely for the benefit
of, and review by, the security holders.

     Section 5.4 Reports by the Trustee.

     (a) Within 60 days after May 15 in each year following the date of original execution
of this Indenture, so long as any Securities are Outstanding hereunder, the Trustee shall
transmit by mail (with a copy to the Company) to the Securityholders of such series in the
manner and to extent provided in Trust Indenture Act Section 313(c), a brief report, as
provided by the Trust Indenture Act Sections 313(a) and (b).

     (b) A copy of each such report shall, at the time of such transmission to the
Securityholders of any series, be furnished to the Company and be filed by the Trustee with
each securities exchange upon which the Securities of such series are listed and also with
the Commission. The Company agrees to notify the Trustee promptly when and as the
Securities of any series become admitted to trading on any national securities exchange.

ARTICLE 6

REMEDIES OF THE TRUSTEE AND

SECURITYHOLDERS ON EVENT OF DEFAULT

     Section 6.1 Event of Default Defined; Acceleration of Maturity; Waiver of Default. “Event of
Default,” with respect to the Securities of any series, wherever used herein, means each one of the
following events which shall have occurred and be continuing (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body), unless it is either inapplicable to a particular series or it
is specifically deleted or modified in the applicable resolution of the Board of Directors or in
the supplemental indenture under which such series of Securities is issued, as the case may be, as
contemplated by Section 3.1:

     (a) default in the payment of any interest on any of the Securities of such series, as
and when the same shall become due and payable, and continuance of such default for a period
of 30 days and the time for payment of such interest has not been extended; provided,
however that if the Company is permitted by the terms of the Securities of the applicable
series to defer the payment in question, the date on which such payment is due and payable
shall be the date on which the Company is required to make payment following such deferral,
if such deferral has been elected pursuant to the
terms of the Securities of that series (subject to any deferral of any due date in the
case of an Extension Period); or

     (b) default in the payment of the principal of or premium, if any, on any of the
Securities of such series as, or any Additional Amounts payable with respect thereto, and

33

 

when the same shall become due and payable at Maturity, and the time for payment of such
principal (or premium, if any), or any Additional Amounts payable with respect thereto, has
not been extended; provided, however, that if the Company is permitted by the terms of the
Securities of the applicable series to defer the payment in question, the date on which such
payment is due and payable shall be the date on which the Company is required to make
payment following such deferral, if such deferral has been elected pursuant to the terms of
the Securities of that series; or

     (c) default in the performance or breach of any other covenant or warranty of the
Company in respect of the Securities of such series (other than a covenant or warranty in
respect of the Securities of such series a default in whose performance or observance is
elsewhere in this Section specifically dealt with), and continuance of such default for a
period of 90 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 33% in
principal amount of the Outstanding Securities of all series affected thereby or, if that
series of Securities is held by a Max Capital Trust, the holders of at least 33% in
liquidation amount of the Preferred Securities of that Max Capital Trust then outstanding, a
written notice specifying such default and requiring it to be remedied and stating that such
notice is a “Notice of Default” hereunder; or

     (d) default in the payment at Maturity of Indebtedness of the Company in excess of
$100,000,000 or if any event of default as defined in any mortgage, indenture or instrument
under which there may be issued, or by which there may be secured or evidenced, any
Indebtedness of the Company (other than Indebtedness which is non-recourse to the Company)
shall happen and shall result in the acceleration of more than $100,000,000 in principal
amount of such Indebtedness (after giving effect to any applicable grace period) and such
default shall not be cured or waived or such acceleration shall not be rescinded or annulled
within a period of 30 days after there shall have 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 33% in principal amount of the Outstanding Securities of such series or, if that
series of Securities is held by a Max Capital Trust, the holders of at least 33% in
liquidation amount of the Preferred Securities of that Max Capital Trust then outstanding, a
written notice specifying such default or event of default and requiring the Company to
cause such default to be cured or waived or to cause such acceleration to be rescinded or
annulled or to cause such Indebtedness to be discharged and stating that such notice is a
“Notice of Default” hereunder; or

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

     (f) a court having jurisdiction in the premises shall enter a decree or order for
relief in respect of the Company in an involuntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or, under any such law, (i)
appointing a receiver, liquidator, assignee, custodian, trustee or sequestrator (or similar
official) of the Company or for any substantial part of its property or (ii) ordering the
winding up or liquidation of its affairs, and such decree or order shall remain unstayed and
in effect for a period of 120 consecutive days; or

34

 

     (g) the Company shall commence a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or, under any such law, (i)
consent to the entry of an order for relief in an involuntary case under any such law, (ii)
consent to the appointment or taking possession by a receiver, liquidator, assignee,
custodian, trustee or sequestrator (or similar official) of the Company or for any
substantial part of its property, or (iii) make any general assignment for the benefit of
creditors; or

     (h) in the event Securities of a series are issued and sold to a Max Capital Trust or
a trustee of such trust in connection with the issuance of Preferred Securities by such Max
Capital Trust, such Max Capital Trust shall have voluntarily or involuntarily dissolved,
wound-up its business or otherwise terminated its existence except in connection with (i)
the distribution of Securities to holders of Preferred Securities in liquidation or
redemption of their interests in such Max Capital Trust upon a Tax Event with respect to
such Max Capital Trust, (ii) the redemption of all of the outstanding Preferred Securities
of such Max Capital Trust or (iii) certain mergers, consolidations or amalgamations, each as
permitted by the Declaration of such Max Capital Trust; or

     (i) any other Event of Default established by or pursuant to a resolution of the Board
of Directors or one or more indentures supplemental hereto as applicable to the Securities
of such series.

     If an Event of Default described in clause (a), (b), (c), (d), (e), (h) or (i) above occurs
and is continuing with respect to Securities of any series at the time Outstanding, the Trustee or
the Holders of not less than 33% in aggregate principal amount of the Securities of such series
then Outstanding, by notice in writing to the Company (and to the Trustee if given by
Securityholders), may declare the entire principal (or, if the Securities of such series are
Original Issue Discount Securities, such portion of the principal as may be specified in the terms
of such series) of all Securities of such series and the interest accrued thereon, if any, to be
due and payable immediately, and upon any such declaration the same shall become immediately due
and payable; provided that, in the case of Securities of a series issued to a Max Capital Trust,
if, upon an Event of Default, the Trustee or the Holders of not less than 33% in principal amount
of the Outstanding Securities of such series fail to declare the principal of all the Securities of
such series to be immediately due and payable, the holders of at least 33% in liquidation amount of
the Preferred Securities of such Max Capital Trust then outstanding shall have such right by a
notice in writing to the Company, the Trustee and the Institutional Trustee; and upon any such
declaration such principal or such lesser amount and all accrued and unpaid interest (including any
Additional Interest) thereon shall become immediately due and payable, provided that the payment of
principal and interest and all other amounts due with respect to such Securities shall remain
subordinated to the extent provided in ARTICLE 13.

     If any Event of Default described in clause (f) or (g) above occurs and is continuing, all
unpaid principal of the Securities then Outstanding of that series and the interest accrued thereon
(including any Additional Interest), if any, shall ipso facto become and be immediately due and
payable without declaration, presentment, demand or notice of any kind by the Trustee or any Holder
of Securities of that series.

35

 

     The foregoing provisions, however, are subject to the condition that if, at any time after a
declaration of acceleration with respect to the Securities of any series has been made and before
any judgment or decree for the payment of the moneys due shall have been obtained or entered as
hereinafter provided, (1) the Company shall pay or shall deposit with the Trustee a sum sufficient
to pay all matured installments of interest, if any, and any Additional Amounts with respect to all
the Securities of such series (or upon all the Securities, as the case may be) and the principal of
and premium (including any Additional Interest), if any, on any and all Securities of such series
(or of all the Securities, as the case may be) which shall have become due otherwise than by
acceleration (with interest upon such principal and premium, if any, and, to the extent that
payment of such interest is enforceable under applicable law, on overdue installments of interest
or Additional Amounts, at the Overdue Rate applicable to such series to the date of such payment or
deposit) and all amounts payable to the Trustee pursuant to the provisions of Section 7.6, and such
amount as shall be sufficient to cover reasonable compensation to the Trustee, its agents,
attorneys and counsel, and all other expenses and liabilities incurred, and all advances made, by
the Trustee except as a result of negligence or bad faith, if any, and (2) all Events of Default
under the Indenture, other than the nonpayment of the principal of and accrued interest on and any
Additional Amounts with respect to Securities of such series which shall have become due by
acceleration, shall have been cured, waived or otherwise remedied as provided herein, then and in
every such case the Holders of a majority in aggregate principal amount of the Securities of such
series (each series voting as a separate class), or of all the Securities (voting as a single
class), as the case may be, then Outstanding (subject to, in the case of any series of Securities
held as assets of a Max Capital Trust, such consent of the holders of the Preferred Securities and
the Common Securities of such Max Capital Trust as may be required under the Trust Agreement of
such Max Capital Trust), by written notice to the Company and to the Trustee, may waive all
defaults with respect to that series (or with respect to all the Securities, as the case may be)
and rescind and annul such acceleration and its consequences, but no such waiver or rescission and
annulment shall extend to or shall affect any subsequent default or shall impair any right
consequent thereon.

     For all purposes under this Indenture, if a portion of the principal of any Original Issue
Discount Security shall have been accelerated and declared or become due and payable pursuant to
the provisions hereof, then, from and after such acceleration, unless such acceleration has been
rescinded and annulled, the principal amount of such Original Issue Discount Security shall be
deemed, for all purposes hereunder, to be such portion of the principal thereof as shall be due and
payable as a result of such acceleration, and payment of such portion of the principal thereof as
shall be due and payable as a result of such acceleration, together with interest, if any, thereon
and all other amounts owing thereunder, shall constitute payment in full of such Original Issue
Discount Security.

     In the case of Securities of a series issued to a Max Capital Trust, should the Holders of
such Securities fail to rescind and annul such declaration and its consequences, the holders of a
Majority in liquidation preference of the Preferred Securities of such Max Capital Trust then
outstanding shall have such right by written notice to the Company, the Trustee and the
Institutional Trustee, subject to satisfaction of the conditions set forth in clauses (1) and (2)
above of this Section 6.1.

36

 

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

     Section 6.2 Collection of Indebtedness by Trustee; Trustee May Prove Debt. The Company covenants
that (a) in case default shall be made in the payment of any installment of interest (including any
Additional Interest) on or any Additional Amounts with respect to any of the Securities of any
series when such interest shall have become due and payable, and such default shall have continued
for a period of 30 days or (b) in case default shall be made in the payment of all or any part of
the principal of or any premium, if any, on any Securities of any series or any Additional Amounts
with respect thereto when the same shall have become due and payable, whether upon Stated Maturity
of the Securities of such series or upon any redemption or by acceleration or otherwise, or (c) in
case default shall be made in the deposit of any sinking fund payment, when and as due by the terms
of a Security of any series, then upon demand of the Trustee for such series, the Company will pay
to the Trustee for the benefit of the Holder of any such Security the whole amount that then shall
have become due and payable on any such Security for the principal, premium, if any, and interest
(including any Additional Interest), if any, with interest upon the overdue principal and premium,
if any, and, so far as payment of the same is enforceable under applicable law and, if the
Securities are held by a Max Capital Trust, without duplication of any other amounts paid to such
Max Capital Trust in respect thereof, on overdue installments of interest and Additional Amounts,
at the Overdue Rate applicable to any such Security; and, in addition thereto, such further amount
as shall be sufficient to cover the costs and expenses of collection, and any further amounts
payable to the Trustee, its agents and counsel pursuant to the provisions of Section 7.6.

     In case the Company shall fail forthwith to pay such amounts upon such demand, the Trustee, in
its own name and as trustee of an express trust, shall be entitled and empowered to institute any
action or proceedings at law or in equity for the collection of the sums so due and unpaid, and may
prosecute any such action or proceedings to judgment or final decree, and may enforce any such
judgment or final decree against the Company or other obligor upon such Securities and collect in
the manner provided by law out of the property of the Company or other obligor upon such
Securities, wherever situated, the moneys adjudged or decreed to be payable.

     The Trustee shall be entitled and empowered, either in its own name as trustee of an express
trust, or as attorney-in-fact for the Holders of any of the Securities, or in both such capacities,
to file such proof of debt, amendment of proof of debt, claim, petition or other document as may be
necessary or advisable in order to have the claims of the Trustee and of the Holders of Securities
allowed in any equity receivership, insolvency, bankruptcy, liquidation, readjustment,
reorganization or other similar proceedings, or any judicial proceedings, relative to the Company
or any other obligor on the Securities or its creditors or its property. The Trustee is hereby
irrevocably appointed (and the successive respective Holders of the Securities, by taking and
holding the same, shall be conclusively deemed to have so appointed the Trustee) the true
and lawful attorney-in-fact of the respective Holders of the Securities, with authority to
make or file in the respective names of the Holders of the Securities any proof of debt, amendment
of proof of debt, claim, petition or other document in any such proceedings and to receive payment
of any sums becoming distributable on account thereof, and to execute any other papers and
documents and do and perform any and all acts and things for and on behalf of such Holders of the
Securities as may be necessary or advisable in the opinion of the Trustee in order to have the

37

 

respective claims of the Holders of the Securities against the Company or any other obligor on the
Securities and/or its property allowed in any such proceedings, and to receive payment of or on
account of such claims; provided, however, that nothing herein contained shall be deemed to
authorize or empower the Trustee to consent to or accept or adopt, on behalf of any Holder of
Securities, any plan of reorganization or readjustment of the Company or any other obligor on the
Securities or, by other action of any character in any such proceeding, to waive or change in any
way any right of any Holder of any Security, even though it may otherwise be entitled so to do
under any present or future law, all such power or authorization being hereby expressly denied.

     All rights of action and of asserting claims under this Indenture or under any of the
Securities may be enforced by the Trustee without the possession of any of the Securities or the
production thereof in any trial or other proceedings relative thereto, and any such action or
proceedings instituted by the Trustee shall be brought in its own name as trustee of an express
trust, and any recovery of judgment, subject to the payment of the expenses, disbursements and
compensation of the Trustee, each predecessor Trustee and their respective agents and attorneys,
shall be for the ratable benefit of the holders of the Securities in respect of which such action
was taken.

     In any proceedings brought by the Trustee (and also any proceedings involving the
interpretation of any provision of this Indenture to which the Trustee shall be a party), the
Trustee shall be held to represent all the Holders of the Securities in respect of which such
action was taken, and it shall not be necessary to make any Holders of such Securities parties to
any such proceedings.

     Section 6.3 Application of Proceeds. Any moneys collected by the Trustee pursuant to this Article
in respect of any series of the Securities, together with any other sums held by the Trustee (as
such) hereunder (other than sums held in trust for the benefit of the Holders of particular
Securities), shall be applied in the following order at the date or dates fixed by the Trustee and,
in case of the distribution of such moneys on account of principal, or any premium, interest
(including any Additional Interest) or Additional Amounts, upon presentation of the several
Securities in respect of which moneys have been collected and stamping (or otherwise noting)
thereon the payment, or issuing Securities of such series in reduced principal amounts in exchange
for the presented Securities of like series if only partially paid, or upon surrender thereof if
fully paid:

     FIRST: To the payment of costs and expenses applicable to such series in respect of
which moneys have been collected, including reasonable compensation to the Trustee and each
predecessor Trustee and their respective agents and attorneys and of all expenses and
liabilities incurred, and all advances made, by the Trustee and each
predecessor Trustee except as a result of negligence or bad faith, and all other
amounts due to the Trustee or any predecessor Trustee pursuant to Section 7.6;

     SECOND: In case the principal of the Securities of such series in respect of which
moneys have been collected shall not have become and be then due and payable, to the payment
of interest (including any Additional Interest) and any Additional Amounts on the Securities
of such series in default in the order of the maturity of the installments of

38

 

such interest,
with interest (to the extent that such interest has been collected by the Trustee), so far
as it may be enforceable under applicable law, upon the overdue installments of interest and
any Additional Amounts at the Overdue Rate applicable to such series, such payments to be
made ratably to the Persons entitled thereto, without discrimination or preference;

     THIRD: In case the principal of the Securities of such series in respect of which
moneys have been collected shall have become and shall be then due and payable, to the
payment of the whole amount then owing and unpaid upon all the Securities of such series for
principal and premium, if any, and interest, if any, and any Additional Amounts, with
interest upon the overdue principal and premium, if any, and (to the extent that such
interest has been collected by the Trustee), so far as payment of the same is enforceable
under applicable law, upon overdue installments of interest and any Additional Amounts, if
any, at the Overdue Rate applicable to such series; and in case such moneys shall be
insufficient to pay in full the whole amount so due and unpaid upon the Securities of such
series, then to the payment of such principal, premium, if any, and interest, if any, and
any Additional Amounts, without preference or priority of principal and premium, if any,
over interest or any Additional Amounts, or of interest or any Additional Amounts, if any,
over principal and premium, if any, or of any installment of interest over any other
installment of interest, or of any Security of such series over any other Security of such
series, ratably to the aggregate of such principal, premium, if any, and accrued and unpaid
interest, if any; and

     FOURTH: To the payment of the remainder, if any, to the Company or as a court of
competent jurisdiction may direct in writing.

     Section 6.4 Suits for Enforcement. In case an Event of Default with respect to Securities of any
series has occurred, has not been waived and is continuing, the Trustee may in its discretion
proceed to protect and enforce the rights vested in it by this Indenture by such appropriate
judicial proceedings as the Trustee shall deem necessary to protect and enforce any of such rights,
either at law or in equity or in bankruptcy or otherwise, whether for the specific enforcement of
any covenant or agreement contained in this Indenture or in aid of the exercise of any power
granted in this Indenture or to enforce any other legal or equitable right vested in the Trustee by
this Indenture or by law.

     Section 6.5 Restoration of Rights on Abandonment of Proceedings. In case the Trustee or any Holder
shall have proceeded to enforce any right under this Indenture and such proceedings shall have been
discontinued or abandoned for any reason, or
shall have been determined adversely to the Trustee or such Holder, then and in every such case
(subject to the binding effect of any determination made in such proceedings) the Company and the
Trustee and each of the Holders shall be restored severally and respectively to their former
positions and rights hereunder, and (subject as aforesaid) all rights, remedies and powers of the
Company, the Trustee and the Holders shall continue as though no such proceedings had been
instituted.

     Section 6.6 Limitations on Suits by Securityholders. No Holder of any Security of any series shall
have any right by virtue or by availing of any provision of this Indenture to institute an action
or proceeding at law or in equity or in bankruptcy or otherwise upon or under or with

39

 

respect to
this Indenture, or for the appointment of a trustee, receiver, liquidator, custodian or other
similar official or for any other remedy hereunder, unless such Holder previously shall have given
to the Trustee written notice of an Event of Default and of the continuance thereof, as
hereinbefore provided, and unless also the Holders of not less than 33% in aggregate principal
amount of the Securities of such series then Outstanding shall have made written request upon the
Trustee to institute such action or proceeding in its own name as Trustee hereunder and shall have
offered to the Trustee such reasonable indemnity as it may require against the costs, expenses and
liabilities to be incurred therein or thereby and the Trustee for 60 days after its receipt of such
notice, request and offer of indemnity shall have failed to institute any such action or proceeding
and no direction inconsistent with such written request shall have been given to the Trustee
pursuant to Section 6.9; it being understood and intended, and being expressly covenanted by the
taker and Holder of every Security with every other taker and Holder of any Security and with the
Trustee, that no one or more Holders of Securities of any series shall have any right in any manner
whatever by virtue or by availing of any provision of this Indenture to affect, disturb or
prejudice the rights of any other Holder of Securities, or to obtain or seek to obtain priority
over or preference to any other such Holder or to enforce any right under this Indenture, except in
the manner herein provided and for the equal, ratable and common benefit of all Holders of
Securities of such series. For the protection and enforcement of the provisions of this Section,
each and every Holder of Securities of any series and the Trustee shall be entitled to such relief
as can be given either at law or in equity.

     Section 6.7 Unconditional Right of Securityholders to Institute Certain Suits. Nothing contained
in this Indenture or in the Securities of any series shall affect or impair the obligation of the
Company, which is unconditional and absolute, to pay the principal of, and premium, if any, and
interest (including any Additional Interest), if any, on, and any Additional Amounts with respect
to, the Securities of such series at the respective places, at the respective times, at the
respective rates, in the respective amounts and in the coin or currency therein and herein
prescribed, or affect or impair the right of action, which is also absolute and unconditional, of
any Holder of any Security to institute suit to enforce such payment at the respective due dates
expressed in such Security, or upon redemption, by declaration, repayment or otherwise as herein
provided without reference to, or the consent of, the Trustee or the Holder of any other Security,
unless such Holder consents thereto or unless and to the extent that the institution or
prosecution.

     In the case of Securities of a series issued to a Max Capital Trust, any holder of Preferred
Securities issued by such Max Capital Trust shall have the right, upon the occurrence of an Event
of Default described in Section 6.1(a) or 6.1(b) hereof, to institute directly a proceeding against
the Company for enforcement of payment to such holder of principal of, and any premium and (subject
to Sections 3.6, 3.8 and 3.13) interest (including any Additional Interest) on, and Additional
Amounts with respect to, such Securities having a principal amount equal to the liquidation amount
of such Preferred Securities held by such holder (a “Direct Action”).

     Notwithstanding any payments made to a holder of Preferred Securities by the Company in
connection with a Direct Action, the Company shall remain obligated to pay the principal of and
premium, if any, or interest on and Additional Amounts, if any, with respect to the related
Securities, and the Company shall be subrogated to the rights of the holder of such Preferred

40

 

Securities with respect to payments on the Preferred Securities to the extent of any payments made
by the Company to such holder in any Direct Action.

     Section 6.8 Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default. Except as
provided in Section 6.6, no right or remedy herein conferred upon or reserved to the Trustee or to
the Holder of any Security or to the holders of Preferred Securities 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.

     No delay or omission of the Trustee or of any Holder of any Security or of the holders of
Preferred Securities of any series to exercise any right or power accruing upon any Event of
Default occurring and continuing as aforesaid shall impair any such right or power or shall be
construed to be a waiver of any such Event of Default or an acquiescence therein; and, subject to
Section 6.6, every power and remedy given by this Indenture or by law to the Trustee or to the
Holder of any Security or to the holders of Preferred Securities may be exercised from time to
time, and as often as shall be deemed expedient, by the Trustee or by the Holder of such Security
or by such holders of Preferred Securities.

     Section 6.9 Control by Holders of Securities. The Holders of a majority in aggregate principal
amount of the Securities of each series affected (with each series voting as a separate class) at
the time Outstanding 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 by this Indenture; provided that such
direction shall not be otherwise than in accordance with law and the provisions of this Indenture,
and provided, further, that (subject to the provisions of Section 7.1) the Trustee shall have the
right to decline to follow any such direction if the Trustee, being advised by counsel, shall
determine that the action or proceeding so directed may not lawfully be taken or if the Trustee in
good faith by a trust
committee of directors or Responsible Officers of the Trustee shall determine that the action or
proceedings so directed would expose the Trustee to personal liability or if the Trustee in good
faith shall so determine that the actions or forebearances specified in or pursuant to such
direction would be unduly prejudicial to the interests of Holders of the Securities of all series
so affected not joining in the giving of said direction, it being understood that (subject to
Section 7.1) the Trustee shall have no duty to ascertain whether or not such actions or
forebearances are unduly prejudicial to such Holders.

     As between the Trustee and the Holders of the Securities, nothing in this Indenture shall
impair the right of the Trustee in its discretion to take any action deemed proper by the Trustee
and which is not inconsistent with such direction or directions by Securityholders.

     Section 6.10 Waiver of Past Defaults. The Holders of not less than a majority in principal amount
of the Outstanding Securities of any series on behalf of the Holders of all the Securities of such
series and, in the case of any Securities issued to a Max Capital Trust, the holders of not less
than a Majority in liquidation preference of the Preferred Securities issued by

41

 

such Max Capital
Trust then outstanding, may waive any past default hereunder with respect to such series and its
consequences, except a default:

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

     (2) in respect of a covenant or provision hereof which under ARTICLE 11 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 6.11 Trustee to Give Notice of Default, But May Withhold in Certain Circumstances. The
Trustee shall transmit to the Securityholders of any series, as the names and addresses of such
Holders appear on the Security Register, notice by mail of all defaults known to a Responsible
Officer of the Trustee which have occurred with respect to such series, such notice to be
transmitted within 90 days after the occurrence thereof, unless such defaults shall have been cured
before the giving of such notice (the term “default” or “defaults” for the purposes of this Section
being hereby defined to mean any event or condition which is, or with notice or lapse of time or
both would become, an Event of Default); provided that, except in the case of default in the
payment of the principal of, or premium, if any, or interest, if any, on, or any Additional Amounts
with respect to, any of the Securities of such series, the Trustee shall be protected in
withholding such notice if and so long as a trust committee of directors or Responsible Officers of
the Trustee in good faith determines that the withholding of such notice is in the interests of the
Securityholders of such series.

     Section 6.12 Right of Court to Require Filing of Undertaking to Pay Costs. The parties to this
Indenture agree, and each Holder of any Security by his acceptance thereof shall be deemed to have
agreed, that any court may in its discretion require, in any suit for the enforcement of any right
or remedy under this Indenture or in any suit against the Trustee for any action taken, suffered or
omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys’ fees and expenses, against any party litigant in such suit, having
due regard to the merits and good faith of the claims or defenses made by such party litigant; but
the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit
instituted by any Securityholder or group of Securityholders of any series holding in the aggregate
more than 10% in aggregate principal amount of the Securities of such series Outstanding, or, in
the case of any suit relating to or arising under Section 6.1(c) or Section 6.1(i) (if the suit
relates to Securities of more than one but fewer than all series), 10% in aggregate principal
amount of Securities Outstanding affected thereby, or, in the case of any suit relating to or
arising under Section 6.1(c) or Section 6.1(i) (if the suit under clause (d) or (g) relates to all
the Securities then Outstanding), Section 6.1(f) or Section 6.1(g), 10% in aggregate principal
amount of all Securities Outstanding, or to any suit instituted by any Holder of

42

 

Securities for the
enforcement of the payment of the principal of, or premium, if any, or interest, if any, on, any
Security on or after the due date expressed in such Security.

     Section 6.13 Waiver of Usury, Stay or Extension Laws. The Company covenants that (to the extent
that it may lawfully do so) it will not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any usury, stay or extension law wherever
enacted, now or at any time hereafter in force, which may affect the covenants or the performance
of this Indenture; and the Company expressly waives (to the extent that it may lawfully do so) all
benefit or advantage of any such law and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.

     Section 6.14 Delay or Omission Not Waiver. No delay or omission of the Trustee or of any Holder of
any Security or of any holder of Preferred 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 any Holder of a Security or to any holder of Preferred Securities may be
exercised from time to time, and as often as may be deemed expedient, by the Trustee or by such
Holder or by such holder of Preferred Securities, as the case may be.

ARTICLE 7

CONCERNING THE TRUSTEE

     Section 7.1 Duties and Responsibilities of the Trustee; During Default; Prior to Default. With
respect to the Holders of any series of Securities issued hereunder, the Trustee, prior to the
occurrence of an Event of Default with respect to the Securities of that series and after the
curing or waiving of all Events of Default which may have occurred with respect to such series,
undertakes to perform such duties and only such duties as are specifically set forth in this
Indenture. In case an Event of Default with respect to the Securities of a series has occurred
(which has not been cured or waived), the Trustee shall exercise such of the rights and powers
vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a
prudent man would exercise or use under the circumstances in the conduct of his own affairs.

     No provision of this Indenture shall be construed to relieve the Trustee from liability for
its own negligent action, its own negligent failure to act, its own bad faith, or its own willful
misconduct, except that: (a) prior to the occurrence of an Event of Default with respect to the
Securities of such series and after the curing or waiving of all such Events of Default with
respect to such series which may have occurred:

          (i) the duties and obligations of the Trustee shall be determined solely by the
express provisions of this Indenture, and the Trustee shall not be liable except for
the performance of such duties and obligations as are specifically set forth in this
Indenture, and no implied covenants or obligations shall be read into this Indenture
against the Trustee; and

43

 

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

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

     (b) the Trustee shall not be liable for any action taken or omitted by it in good faith
and believed by it to be authorized or within the discretion, rights or powers conferred
upon it by this Indenture; and

     (c) the Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders of Securities
pursuant to Section 6.9 relating to the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred upon the Trustee, under this Indenture.

     None of the provisions contained in this Indenture shall require the Trustee to expend or risk
its own funds or otherwise incur any liability in the performance of any of its duties or in the
exercise of any of its rights or powers, if it shall have reasonable grounds for believing that the
repayment of such funds or adequate indemnity against such liability is not reasonably assured to
it.

     Section 7.2 Certain Rights of the Trustee. Subject to Section 7.1:

     (a) the Trustee may conclusively rely and shall be protected in acting or refraining
from acting upon any resolution, Officer’s Certificate or any other certificate, statement,
instrument, opinion, report, notice, request, consent, order, bond, debenture, note, coupon,
security or other paper or document (whether in original or facsimile form) believed by it
to be genuine and to have been signed or presented by the proper party or parties;

     (b) any request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by an Officer’s Certificate (unless other evidence in respect thereof
be herein specifically prescribed); and any resolution of the Board of Directors may be
evidenced to the Trustee by a copy thereof certified by the secretary or any assistant
secretary of the Company;

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

44

 

     (d) the Trustee shall be under no obligation to exercise any of the trusts or powers
vested in it by this Indenture at the request, order or direction of any of the
Securityholders pursuant to the provisions of this Indenture, unless such Securityholders
shall have offered to the Trustee reasonable security or indemnity satisfactory to it
against the costs, expenses and liabilities which might be incurred therein or thereby;

     (e) prior to the occurrence of an Event of Default hereunder and after the curing or
waiving of all Events of Default, 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, consent, order, approval, appraisal, bond, debenture,
note, coupon, security or other paper or document unless requested in writing so to do by
the Holders of not less than a majority in aggregate principal amount of the Securities of
all series affected then Outstanding; provided that, if the payment within a reasonable time
to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the
making of such investigation is, in the opinion of the Trustee, not reasonably assured to
the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may
require indemnity reasonably satisfactory to it against such expenses or
liabilities as a condition to proceeding; the reasonable expenses of every such
investigation shall be paid by the Company or, if paid by the Trustee or any predecessor
Trustee, shall be repaid by the Company upon demand;

     (f) 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 not regularly in its employ,
and the Trustee shall not be responsible for any misconduct or negligence on the part of any
such agent or attorney appointed with due care by it hereunder;

     (g) the Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or
other paper or document, but the Trustee, in its discretion, may make such further inquiry
or investigation into such facts or matters as it may see fit, and if the Trustee shall
determine to make such further inquiry or investigation, it shall be entitled to examine
during reasonable hours and upon reasonable notice the books, records and premises of the
Company, personally or by agent or attorney;

     (h) the Trustee shall not be deemed to have notice of any Default or Event of Default
unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written
notice of any event which is in fact such a default is received by the Trustee at the
Corporate Trust Office of the Trustee, and such notice references the Securities and this
Indenture; and

     (i) the rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian
and other Person authorized to act hereunder;

45

 

     (j) in no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of
profit) irrespective of whether the Trustee has been advised of the likelihood of such loss
or damage and regardless of the form of action; and

     (k) the Trustee may request that the Company deliver a 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 certificate may be signed by any person authorized
to sign an Officers’ Certificate, including any person specified as so authorized in any
such certificate previously delivered and not superseded.

     Section 7.3 Trustee Not Responsible for Recitals, Disposition of Securities or Application of
Proceeds Thereof. The recitals contained herein and in the Securities, except the certificates of
authentication, shall be taken as the statements of the Company, and the Trustee assumes no
responsibility for the correctness of the same, except that the Trustee represents that it is duly
authorized to execute and deliver this Indenture, authenticate the Securities and perform its
obligations hereunder and that the statements made by it in a Statement of Eligibility on Form T-1
supplied to the Company
are true and accurate, subject to the qualifications set forth therein. The Trustee makes no
representation as to the validity or sufficiency of this Indenture or of the Securities. The
Trustee shall not be accountable for the use or application by the Company of any of the Securities
or of the proceeds thereof.

     Section 7.4 Trustee and Agents May Hold Securities; Collections, etc. The Trustee, any Paying
Agent, Securities Registrar, Authenticating Agent or any agent of the Company or the Trustee, in
its individual or any other capacity, may become the owner or pledgee of Securities with the same
rights it would have if it were not the Trustee or such agent, and, subject to Section 7.8 and
Section 7.13, if operative, may otherwise deal with the Company and receive, collect, hold and
retain collections from the Company with the same rights it would have if it were not the Trustee,
Paying Agent, Securities Registrar, Authenticating Agent or such agent.

     Section 7.5 Money Held by Trustee. Subject to the provisions of Section 12.3, all money received
by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes
for which it was received, but need not be segregated from other funds except to the extent
required by mandatory provisions of law. The Trustee shall have no liability for interest on money
it receives and holds in trust except as specifically provided herein.

     Section 7.6 Compensation and Indemnification of Trustee and Its Prior Claim. The Company covenants
and agrees to pay the Trustee from time to time, and the Trustee shall be entitled to such
compensation as the Company and the Trustee may from time to time agree in writing for all services
rendered by the Trustee hereunder (which compensation shall not be limited by any provision of law
in regard to the compensation of a trustee of an express trust) and the Company covenants and
agrees to pay or reimburse the Trustee and each predecessor trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by or on behalf of it in
accordance with any of the provisions of this Indenture (including the reasonable compensation and
the expenses and disbursements of its counsel and of all agents and other Persons not regularly in
its employ) except any such expense, disbursement or advance as shall be attributable to its
negligence, bad faith or willful misconduct.

46

 

     The Company also covenants to indemnify the Trustee and each predecessor trustee for, and hold
it harmless against, any and all loss, liability, damage, claims or expense, including taxes (other
than taxes measured by the income of the Trustee or otherwise applicable to the Trustee for
operations outside the scope of this Indenture) incurred without negligence, bad faith or willful
misconduct on its part, arising out of or in connection with the acceptance or administration of
this Indenture or the trusts hereunder and the performance of its duties hereunder, including the
reasonable costs and expenses of defending itself against or investigating any claim of liability
in connection with the exercise or performance of any of its powers or duties hereunder except to
the extent that any such loss, liability, damage, claims or expense shall be attributable to the
Trustee’s negligence, bad faith or willful misconduct.

     The obligations of the Company under this Section to compensate and indemnify the Trustee and
each predecessor trustee and to pay or reimburse the Trustee and each predecessor trustee for
expenses, disbursements and advances shall constitute additional indebtedness hereunder and shall
survive the satisfaction and discharge of this Indenture and resignation or removal of the Trustee.
Such additional indebtedness shall be 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.

     The provisions of this section shall survive the termination of this Indenture.

     Section 7.7 Right of Trustee to Rely on Officer’s Certificate, etc. Subject to Section 7.1 and
Section 7.2, whenever in the administration of the trusts of this Indenture the Trustee shall deem
it necessary or desirable that a matter be proved or established prior to taking or suffering or
omitting any action hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence or bad faith on the part of the Trustee,
be deemed to be conclusively proved and established by an Officer’s Certificate delivered to the
Trustee, and such certificate, in the absence of negligence or bad faith on the part of the
Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted by it under
the provisions of this Indenture upon the good faith thereof.

     Section 7.8 Qualification of Trustee; Conflicting Interests. The Trustee for the Securities of any
series issued hereunder shall be subject to the provisions of Section 310(b) of the Trust Indenture
Act during the period of time provided for therein. In determining whether the Trustee has a
conflicting interest as defined in Section 310(b) of the Trust Indenture Act with respect to the
Securities of any series, there shall be excluded this Indenture with respect to Securities of any
particular series of Securities other than that series. Nothing herein shall prevent the Trustee
from filing with the Commission the application referred to in the penultimate paragraph of Section
310(b) of the Trust Indenture Act.

     Section 7.9 Persons Eligible for Appointment as Trustee. The Trustee for each series of Securities
hereunder shall at all times be a corporation or banking association organized and doing business
under the laws of the United States of America or of any State or the District of Columbia having a
combined capital and surplus of at least $50,000,000, and which is authorized under such laws to
exercise corporate trust powers and is subject to supervision or examination by Federal, State or
District of Columbia authority. Such corporation or banking association shall have a place of
business or an affiliate with a place of business in the Borough of

47

 

Manhattan, The City of New York
if there be such a corporation or association in such location willing to act upon reasonable and
customary terms and conditions. If such corporation or association publishes reports of condition
at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section, the combined capital and surplus of such
corporation or association shall be deemed to be its combined capital and surplus as set forth in
its most recent report of condition so published. In case at any time the Trustee shall cease to
be eligible in accordance with the
provisions of this Section, the Trustee shall resign immediately in the manner and with the effect
specified in Section 6.10.

     The provisions of this Section 7.9 are in furtherance of and subject to Section 310(a) of the
Trust Indenture Act.

     Section 7.10 Resignation and Removal; Appointment of Successor Trustee.

     (a) The Trustee, or any trustee or trustees hereafter appointed, may at any time resign
by giving written notice of resignation to the Company and by mailing notice thereof by
first-class mail to Holders of the Securities at their last addresses as they shall appear
on the Security Register. Upon receiving such notice of resignation, the Company shall
promptly appoint a successor trustee or trustees by written instrument in duplicate,
executed by authority of the Board of Directors, one copy of which instrument shall be
delivered to the resigning Trustee and one copy to the successor trustee or trustees. If no
successor trustee shall have been so appointed and have accepted appointment within 60 days
after the mailing of such notice of resignation, the resigning Trustee may petition at the
expense of the Company any court of competent jurisdiction for the appointment of a
successor trustee, or any Securityholder who has been a bona fide Holder of a Security or
Securities for at least six months may, subject to the provisions of Section 6.12, on behalf
of himself and all others similarly situated, petition any such court for the appointment of
a successor trustee. Such court may thereupon, after such notice, if any, as it may deem
proper and prescribe, appoint a successor trustee.

     (b) In case at any time any of the following shall occur:

          (i) the Trustee shall fail to comply with the provisions of Section 310(b) of
the Trust Indenture Act after written request therefor by the Company or by any
Securityholder who has been a bona fide Holder of a Security or Securities for at
least six months unless the Trustee’s duty to resign is stayed in accordance with
the provisions of Section 310(b) of the Trust Indenture Act; or

          (ii) the Trustee shall cease to be eligible in accordance with the provisions
of Section 7.9 and shall fail to resign after written request therefor by the
Company or by any Securityholder; or the Trustee shall become incapable of acting,
or shall be adjudged a bankrupt or insolvent; or a receiver or liquidator 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;

48

 

then, in any case, the Company may remove the Trustee and appoint a successor trustee by written
instrument, in duplicate, executed by order of the Board of Directors of the Company, one copy of
which instrument shall be delivered to the Trustee so removed and one copy to the successor
trustee, or, subject to the provisions of Section 6.12, any Securityholder who has been a bona fide
Holder of a Security or Securities for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the removal of
the Trustee and the appointment of a successor trustee. Such court may thereupon, after such
notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor
trustee.

     (c) The Holders of a majority in aggregate principal amount of the Securities at the
time Outstanding may at any time remove the Trustee and appoint a successor trustee by
delivering to the Trustee so removed, to the successor trustee so appointed and to the
Company the evidence provided for in Section 8.1 of the action in that regard taken by the
Securityholders.

     (d) No resignation or removal of the Trustee and no appointment of a successor trustee
pursuant to any of the provisions of this Section 7.10 shall become effective until
acceptance of appointment by the successor trustee as provided in Section 7.11.

     Section 7.11 Acceptance of Appointment by Successor Trustee. Any successor trustee appointed as
provided in Section 7.10 shall execute, acknowledge and deliver to the Company and to its
predecessor trustee an instrument accepting such appointment hereunder, and thereupon the
resignation or removal of the predecessor trustee shall become effective and such successor
trustee, without any further act, deed or conveyance, shall become vested with all rights, powers,
duties and obligations of its predecessor hereunder, with like effect as if originally named as
trustee hereunder; but nevertheless, on the written request of the Company or of the successor
trustee, upon payment of all amounts due to the Trustee under Section 7.6, the Trustee ceasing to
act shall, subject to Section 4.4, pay over to the successor trustee all moneys at the time held by
it hereunder and shall execute and deliver an instrument transferring to such successor trustee all
such rights, powers, duties and obligations. Upon request of any successor trustee, the Company
shall execute any and all instruments in writing for more fully and certainly vesting in and
confirming to such successor trustee all such rights and powers. Any Trustee ceasing to act,
shall, nevertheless, retain a prior lien upon all property or funds held or collected by such
trustee to secure any amounts then due it pursuant to the provisions of Section 7.6.

     No successor trustee shall accept appointment as provided in this Section 7.11 unless at the
time of such acceptance such successor trustee shall be qualified under the provisions of Section
7.8 and eligible under the provisions of Section 7.9. Upon acceptance of appointment by any
successor trustee as provided in this Section 7.11, the Company shall mail notice thereof by
first-class mail to the Holders of Securities at their last addresses as they shall appear on the
Security Register. If the acceptance of appointment is substantially contemporaneous with the
resignation, then the notice called for by the preceding sentence may be combined with the notice
called for by Section 7.10. If the Company fails to mail such notice within 10 days after
acceptance of appointment by the successor trustee, the successor trustee shall cause such notice
to be mailed at the expense of the Company.

49

 

     Section 7.12 Merger, Conversion, Consolidation or Succession to Business of Trustee.
Any corporation or national association in which the Trustee may be merged or converted or with
which it may be consolidated, or any corporation or national association resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any corporation or national
association succeeding to substantially all of the corporate trust business of the Trustee, shall
be the successor of the trustee hereunder, provided that such corporation or national association
shall be qualified under the provisions of Section 7.8 and eligible under the provisions of Section
7.9, without the execution or filing of any paper or any further act (including the giving of any
notice to Securityholders) on the part of any of the parties hereto, anything herein to the
contrary notwithstanding. In case at the time such successor to the Trustee shall succeed to the
trusts created by this Indenture any of the Securities shall have been authenticated but not
delivered, any such successor to the Trustee may adopt the certificate of authentication of any
predecessor trustee and deliver such Securities so authenticated; and, in case at that time any of
the Securities shall not have been authenticated, any successor to the Trustee may authenticate
such Securities either in the name of any predecessor hereunder or in the name of the successor
trustee; and in all such cases such certificate shall have the full force which it is anywhere in
the Securities or in this Indenture provided for the certificate of authentication of the Trustee.

     Section 7.13 Preferential Collection of Claims Against the Company The Trustee shall comply with
Section 311(a) of the Trust Indenture Act, excluding any creditor relationship listed in Section
311(b) of the Trust Indenture Act. A Trustee who has resigned or been removed shall be subject to
Section 311(a) of the Trust Indenture Act to the extent indicated therein.

     Section 7.14 Authenticating Agent. So long as any Securities remain Outstanding, the Trustee may,
by an instrument in writing, appoint with the approval of the Company an authenticating agent (the
“Authenticating Agent”) to act as the Trustee’s agent on its behalf and subject to its direction in
connection with the authentication and delivery of Securities. Securities authenticated by such
Authenticating Agent shall be entitled to the benefits of this Indenture and shall be valid and
obligatory for all purposes as if authenticated by such Trustee. Wherever reference is made in
this Indenture to the authentication and delivery of Securities by the Trustee or to 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 such Trustee by such Authenticating Agent. Such Authenticating Agent shall
at all times be a corporation organized and doing business under the laws of the United States of
America or of any State or of the District of Columbia, authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of at least $50,000,000 and subject
to supervision or examination by Federal, State or District of Columbia authority. If the
Corporate Trust Office of the Trustee is not located in the Borough of Manhattan, The City of New
York, the Authenticating Agent shall have its principal office and place of business in the Borough
of Manhattan, The City of New York.

     Any corporation into which any 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 any Authenticating Agent shall be a party, or any corporation
succeeding to the corporate agency business of any Authenticating Agent, shall continue to be the

50

 

Authenticating Agent without the execution or filing of any paper or any further act on the part of
the Trustee or such Authenticating Agent.

     Any Authenticating Agent may at any time, and if it shall cease to be eligible shall, resign
by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any
time terminate the agency of any Authenticating Agent by giving written notice of termination 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 any Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section 7.14, the Trustee shall upon Company Request appoint
a successor Authenticating Agent, and the Company shall provide notice of such appointment to all
Holders of Securities in the manner and to the extent provided in Section 15.5. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all
rights, powers, duties and responsibilities of its predecessor hereunder, with like effect as if
originally named as Authenticating Agent herein. The Company agrees to pay or to cause to be paid
to the Authenticating Agent from time to time reasonable compensation for its services. The
Authenticating Agent shall have no responsibility or liability for any action taken by it as such
in good faith at the direction of the Trustee.

ARTICLE 8

CONCERNING THE HOLDERS OF SECURITIES

     Section 8.1 Action by Holders. Whenever in this Indenture it is provided that the Holders of a
specified percentage in aggregate principal amount of the Securities of any series may take any
action (including the making of any demand or request, the giving of any notice, consent or waiver
or the taking of any other action) the fact that at the time of taking any such action the Holders
of such specified percentage have joined therein may be evidenced (a) by any instrument or any
number of instruments of similar tenor executed by Holders in Person or by agent or proxy appointed
in writing, or (b) by the record of Holders voting in favor thereof at any meeting of such Holders
duly called and held in accordance with the provisions of ARTICLE 9, or (c) by a combination of
such instrument or instruments and any such record of such a meeting of Holders. The Company may
(but shall not be required to) set a record date for purposes of determining the identity of
Securityholders entitled to vote or consent to any action by vote or consent authorized or
permitted under this Indenture, which record date shall be the later of 10 days prior to the first
solicitation of such consent or the date of the most recent list of Holders furnished to the
Trustee pursuant to Section 5.1 of this Indenture prior to such solicitation. If a record date is
fixed, those Persons who were Securityholders at such record date (or their duly designated
proxies), and only those Persons, shall be entitled to take such action by vote or consent or to
revoke any vote or consent previously given, whether or not such Persons continue to be Holders
after such record date.

     Section 8.2 Proof of Execution of Instruments by Holders of Securities.
Subject to Section 7.1, Section 7.2 and Section 9.5, the execution of any instrument by a Holder
of a Security or his agent or proxy may be proved in any reasonable manner that the Trustee deems
sufficient, including, without limitation, in the following manner:

51

 

     The fact and date of the execution by any such Person of any instrument may be proved
by the certificate of any notary public or other officer authorized to take acknowledgments
of deeds, that the Person executing such instrument acknowledged to him the execution
thereof, or by an affidavit or written statement of a witness to such execution. Where such
execution is by an officer of a corporation or association or a member of a partnership on
behalf of such corporation, association or partnership, as the case may be, or by any other
Person acting in a representative capacity, such certificate, affidavit or written statement
shall also constitute sufficient proof of his authority.

     The ownership of Securities shall be proved by the Securities Register or by a
certificate of the Securities Registrar.

     The record of any Holders’ meeting shall be proved in the manner provided in Section
9.6.

     Section 8.3 Holders to be Treated as Owners. The Company, the Trustee and any agent of the Company
or the Trustee may deem and treat the Person in whose name any Security shall be registered upon
the Security Register as the absolute owner of such Security (notwithstanding any notation of
ownership or other writing thereon) for the purpose of receiving payment of principal of, and
premium, if any, and (subject to Section 3.6 and Section 3.8) interest, if any, 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. All such payments so made to any Holder for the time being, shall be valid, and, to the
extent of the sum or sums so paid, effectual to satisfy and discharge the liability for moneys
payable upon such Security.

     None of the Company, the Trustee or any agent of the Company or the Trustee shall have any
responsibility or liability for any aspect of the records relating to or payments made on account
of beneficial ownership interest of a Global Security, or for maintaining, supervising or reviewing
any records relating to such beneficial ownership interest. Notwithstanding the foregoing, with
respect to any Global Security, nothing herein shall prevent the Company or the Trustee or any
agent of the Company or the Trustee from giving effect to any written certification, proxy or other
authorization furnished by any Depositary (or its nominee), as a Holder, with respect to such
Global Security or impair, as between such Depositary and owners of beneficial interests in such
Global Security, the operation of customary practices governing the exercise of the right of such
Depositary (or its nominee) as holder of such Global Security.

     Section 8.4 Securities Owned by Company Deemed Not Outstanding. In determining whether the Holders
of the requisite aggregate principal amount of Securities of any or all series have concurred in
any direction, consent or waiver under this Indenture, Securities which are owned by the Company or
any other obligor on the Securities with respect
to which such determination is being made or by any Person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company or any other obligor on
the Securities with respect to which such determination is being made shall be disregarded and
deemed not to be Outstanding for the purpose of any such determination, except that for the purpose
of determining whether the Trustee shall be protected in relying on any such direction, consent or
waiver only Securities which a Responsible Officer of the Trustee knows are so

52

 

owned shall be so
disregarded. Securities so owned which have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to
act with respect to such Securities and that the pledgee is not the Company or any other obligor
upon the Securities or any Person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Company or any other obligor on the Securities. In case
of a dispute as to such right, the advice of counsel shall be full protection in respect of any
decision made by the Trustee in accordance with such advice. Upon request of the Trustee, the
Company shall furnish to the Trustee promptly an Officer’s Certificate listing and identifying all
Securities, if any, known by the Company to be owned or held by or for the account of any of the
above-described Persons; and, subject to Section 7.1 and Section 7.2, the Trustee shall be entitled
to accept such Officer’s Certificate as conclusive evidence of the facts therein set forth and of
the fact that all Securities not listed therein are Outstanding for the purpose of any such
determination.

     Section 8.5 Right of Revocation of Action Taken. At any time prior to (but not after) the
evidencing to the Trustee, as provided in Section 8.1, of the taking of any action by the Holders
of the percentage in aggregate principal amount of the Securities of any or all series, as the case
may be, specified in this Indenture in connection with such action, any Holder of a Security, the
number, letter or other distinguishing symbol of which is shown by the evidence to be included in
the Securities the Holders of which have consented to such action, may, by filing written notice at
the Corporate Trust Office and upon proof of holding as provided in this Article, revoke such
action so far as concerns such Security. Except as aforesaid, any such action taken by the Holder
of any Security shall be conclusive and binding upon such Holder and upon all future Holders and
owners of such Security and of any Securities issued in exchange or substitution therefor,
irrespective of whether or not any notation in regard thereto is made upon any such Security or
such other Security. Any action taken by the Holders of the percentage in aggregate principal
amount of the Securities of any or all series, as the case may be, specified in this Indenture in
connection with such action shall be conclusively binding upon the Company, the Trustee and the
Holders of all the Securities affected by such action.

ARTICLE 9

HOLDERS’ MEETINGS

     Section 9.1 Purposes of Meetings. A meeting of Holders of Securities of any or all series may be
called at any time and from time to time pursuant to the provisions of this Article for any of the
following purposes:

     (a) to give any notice to the Company or to the Trustee for the Securities of such
series, or to give any directions to the Trustee, or to consent to the waiving of any
default hereunder and its consequences, or to take any other action authorized to be taken
by Holders pursuant to any of the provisions of ARTICLE 6;

     (b) to remove the Trustee and nominate a successor Trustee pursuant to the provisions
of ARTICLE 7;

53

 

     (c) to consent to the execution of an indenture or indentures supplemental hereto
pursuant to the provisions of Section 10.2; or

     (d) to take any other action authorized to be taken by or on behalf of the Holders of
any specified aggregate principal amount of the Securities of any one or more or all series,
as the case may be, under any other provision of this Indenture or under applicable law.

     Section 9.2 Call of Meetings by Trustee. The Trustee may at any time call a meeting of Holders of
Securities to take any action specified in Section 9.1, to be held at such time and at such place
in the Borough of Manhattan, The City of New York, or such other Place of Payment, as the Trustee
shall determine. Notice of every meeting of the Holders of Securities, setting forth the time and
the place of such meeting, and in general terms the action proposed to be taken at such meeting,
shall be given to Holders of Securities of the particular series in the manner and to the extent
provided in Section 15.5. Such notice shall be given not less than 20 nor more than 90 days prior
to the date fixed for the meeting.

     Section 9.3 Call of Meetings by Company or Holders. In case at any time the Company, pursuant to a
resolution of its Board of Directors, or the Holders of at least 10% in aggregate principal amount
of the Outstanding Securities of any or all series, as the case may be, shall have requested the
Trustee to call a meeting of Holders of Securities of any or all series, as the case may be, by
written request setting forth in reasonable detail the action proposed to be taken at the meeting,
and the Trustee for such series shall not have given the notice of such meeting within 20 days
after receipt of such request, then the Company or such Holders may determine the time and the
place in the Borough of Manhattan or other Place of Payment for such meeting and may call such
meeting to take any action authorized in Section 9.1, by giving notice thereof as provided in
Section 9.2.

     Section 9.4 Qualifications for Voting. To be entitled to vote at any meeting of Holders a Person
shall be (a) a Holder of one or more outstanding Securities with respect to which such meeting is
being held or (b) a Person appointed by an instrument in writing as proxy by such Holder. The only
Persons who shall be entitled to be present or to speak at any meeting of Holders shall be the
Persons entitled to vote at such meeting and their counsel and any representatives of the Trustee
and its counsel and any representatives of the Company and its counsel.

     Section 9.5 Regulations. Notwithstanding any other provisions of this Indenture, the Trustee may
make such reasonable regulations as it may deem advisable for any meeting of Holders of the
Securities in regard to proof of the holding of Securities and of the appointment of proxies, and
in regard to the appointment and duties of inspectors of votes, the submission and examination of
proxies, certificates and other evidence of the right to vote, and such other matters concerning
the conduct of the meeting as it shall think fit.

     The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting,
unless the meeting shall have been called by the Company or by Holders of Securities as provided in
Section 9.3, in which case the Company or the Holders calling the meeting, as the

54

 

case may be,
shall in like manner appoint a temporary chairman. A permanent chairman and a permanent secretary
of the meeting shall be elected by majority vote of the meeting.

     Subject to Section 8.4, at any meeting each Holder of Securities with respect to which such
meeting is being held or proxy therefor shall be entitled to one vote for each $1,000 principal
amount (in the case of Original Issue Discount Securities, such principal amount to be determined
as provided in the definition of “Outstanding”) of Securities held or represented by him; provided,
however, that no vote shall be cast or counted at any meeting in respect of any such Security
challenged as not Outstanding and ruled by the chairman of the meeting to be not Outstanding. The
chairman of the meeting shall have no right to vote other than by virtue of Securities held by him
or instruments in writing aforesaid duly designating him as the Person to vote on behalf of other
Holders. At any meeting of Holders, the presence of Persons holding or representing Securities
with respect to which such meeting is being held in an aggregate principal amount sufficient to
take action on the business for the transaction of which such meeting was called shall constitute a
quorum, but, if less than a quorum is present, the Persons holding or representing a majority in
aggregate principal amount of such Securities represented at the meeting may adjourn such meeting
with the same effect, for all intents and purposes, as though a quorum had been present. Any
meeting of Holders of Securities with respect to which a meeting was duly called pursuant to the
provisions of Section 9.2 or Section 9.3 may be adjourned from time to time by Persons holding or
representing a majority in aggregate principal amount of such Securities represented at the
meeting, present, whether or not constituting a quorum, and the meeting may be held as so adjourned
without further notice.

     Section 9.6 Voting. The vote upon any resolution submitted to any meeting of Holders of Securities
with respect to which such meeting is being held shall be by written ballots on which shall be
subscribed the signatures of such Holders or of their representatives by proxy and the serial
number or numbers of the Securities held or represented by them. The permanent chairman of the
meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for or
against any resolution and who shall make and file with the secretary of the meeting their verified
written reports in duplicate of all votes cast at the meeting. A record in duplicate of the
proceedings of each meeting of holders shall be prepared by the secretary of the meeting and there
shall be attached to said record the original reports of the inspectors of votes on any vote by
ballot taken thereat and affidavits by one or more Persons having knowledge of the facts setting
forth a copy
of the notice of the meeting and showing that said notice was mailed as provided in Section 9.2.
The record shall show the serial numbers of the Securities voting in favor of or against any
resolution. The record shall be signed and verified by the affidavits of the permanent chairman
and secretary of the meeting and one of the duplicates shall be delivered to the Company and the
other to the Trustee to be preserved by the Trustee.

     Any record so signed and verified shall be conclusive evidence of the matters therein stated.

     Section 9.7 No Delay of Rights by Reason of Meeting. Nothing in this Article contained shall be
deemed or construed to authorize or permit, by reason of any call of a meeting of Holders or any
rights expressly or impliedly conferred hereunder to make such call, any hindrance or delay in the
exercise of any right or rights conferred upon or reserved to the Trustee or to the Holders under
any of the provisions of this Indenture or of the Securities of any series.

55

 

ARTICLE 10

SUPPLEMENTAL INDENTURES

     Section 10.1
Supplemental Indentures Without Consent of Securityholders. Without the consent of any Holders of
Securities, the Company, when authorized by a resolution of its Board of Directors, and the Trustee
may from time to time and at any time enter into an indenture or indentures supplemental hereto
(which shall conform to the provisions of the Trust Indenture Act as in force at the date of the
execution thereof) for one or more of the following purposes:

          (a) to convey, transfer, assign, mortgage or pledge to the Trustee as security for the
Securities any property or assets;

          (b) to evidence the succession of another Person to the Company, or successive
successions, and the assumption by the successor Person of the covenants, agreements and
obligations of the Company under this Indenture and the Securities, in each case in
compliance with the Indenture;

          (c) to add to the covenants of the Company such further covenants, restrictions,
conditions or provisions as its Board of Directors shall consider to be for the protection
of the Holders of any series of Securities or Tranche thereof, or to surrender any right or
power herein conferred upon the Company and to make the occurrence and continuance of a
default in any such additional covenants, restrictions, conditions or provisions an Event of
Default permitting the enforcement of all or any of the several remedies provided in this
Indenture as herein set forth; provided that in respect of any such additional covenant,
restriction, condition or provision such supplemental indenture may provide for a particular
period of grace after default (which period may be shorter or longer than that allowed in
the case of other defaults) or may provide for an immediate enforcement upon such an Event
of Default or may limit the remedies available to the Trustee upon such an Event of Default
or may limit the right of the Holders of a majority in aggregate principal amount of the
Securities of such series to waive such an Event of Default;

          (d) to cure any ambiguity or to correct or supplement any provision contained herein or
in any supplemental indenture which may be defective or inconsistent with any other
provision contained herein or in any supplemental indenture; or to make such other
provisions in regard to matters or questions arising under this Indenture or under any
supplemental indenture or, in the case of Securities of a series issued to a Max Capital
Trust and for so long as any of the Preferred Securities issued by such Max Capital Trust
shall remain outstanding, the holders of such Preferred Securities may deem necessary or
desirable and which shall not materially adversely affect the interests of the Holders of
any Securities;

          (e) to establish the form or terms of Securities of any series as permitted by Section
3.1;

56

 

          (f) to evidence and provide for the acceptance of appointment hereunder by a successor
trustee with respect to the Securities, pursuant to Section 7.11, or 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; and

          (g) otherwise to amend or supplement any of the provisions of this Indenture or in any
supplemental indenture; provided, however, that no such amendment or supplement shall
materially adversely affect the interests of the Holders of any Securities then Outstanding.

     The Trustee is hereby authorized to join with the Company in the execution of any such
supplemental indenture, to make any further appropriate agreements and stipulations, which may be
therein contained and to accept the conveyance, transfer, assignment, mortgage or pledge of any
property thereunder, but the Trustee 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.

     Any supplemental indenture authorized by the provisions of this Section may be executed
without the consent of the Holders of any of the Securities at the time Outstanding,
notwithstanding any of the provisions of Section 10.2.

     Section 10.2
Supplemental Indentures With Consent of Securityholders. With the consent (evidenced as provided
in ARTICLE 8) of the Holders of not less than a majority in aggregate principal amount of the
Securities at the time Outstanding of all series affected by such supplemental indenture (voting as
one class) (and, in the case of any series of Securities held as assets of a Max Capital Trust,
such consent of holders of the Preferred Securities and the Common Securities of such Max Capital
Trust as may be required under the Trust Agreement of such Max Capital Trust), the Company, when
authorized by a resolution of its Board of Directors, and the Trustee may, from time to time and at
any time, enter into an indenture or indentures supplemental hereto (which shall conform to the
provisions of the Trust Indenture Act as in force at the date of execution thereof) for the purpose
of adding any provisions to or changing in any manner or eliminating any of the provisions of this
Indenture or of any supplemental indenture or of modifying in any manner the rights of the Holders
of the Securities of each such series; provided that no such supplemental indenture shall (a)
change the Stated Maturity of the principal of, or any premium or installment of interest
(including any Additional Interest) on or any Additional Amounts with respect to, any Security of
such series, or reduce the principal amount thereof (or modify the calculation of such principal
amount) or rate of interest (including any Additional Interest) thereon or any Additional Amounts
with respect thereto (or modify the calculation of such rate), or any premium payable on redemption
thereof or otherwise, or reduce the amount of the principal of an Original Issue Discount Security
that would be due and payable upon an acceleration with respect thereto pursuant to Section 6.1 or
the amount thereof provable in bankruptcy pursuant to Section 6.2, or change the obligation of the
Company to pay Additional Amounts pursuant to Section 4.4 (except as contemplated by
Section 11.1 and permitted by Section 10.1), or change the redemption provisions, or change the
Place of Payment, currency in which the principal of, any premium or interest (including any
Additional Interest) on, or any Additional Amounts with respect to any security is payable, or
impair or adversely affect the right of any Securityholder to institute suit for the payment
thereof

57

 

or, if the Securities provide therefor, any right of repayment at the option of the
Securityholder, without the consent of the Holder of each Security of such series so affected; or
(b) reduce the aforesaid percentage of the principal amount of Securities Outstanding of such
series, the consent of the Holders of which is required for any such supplemental indenture or any
waiver of any obligations of the Company under this Indenture, without the consent of the Holders
of each Security of such series so affected, or reduce the requirements for quorum on voting; or
(c) modify any of the provisions of this Indenture relating to the subordination of the Securities
in a manner adverse to Holders of Securities.

     Upon the request of the Company, accompanied by a Board Resolution authorizing the execution
of any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent
of Securityholders as aforesaid and other documents, if any, required by Section 8.1, the Trustee
shall join with the Company in the execution of such supplemental indenture unless such
supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture
or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter
into such supplemental indenture.

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

     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.

     Section 10.3 Notice of Supplemental Indenture. Promptly after the execution by the Company and the Trustee of
any supplemental indenture pursuant to the provisions of Section 10.2, the Company shall mail a
notice thereof by first-class mail to the Holders of Securities of each series affected thereby at
their addresses as they shall appear on the Security Register, setting forth in general terms the
substance of such supplemental indenture. Any failure of the Company to mail such notice, or any
defect therein, shall not, however, in any way impair or affect the validity of any such
supplemental indenture.

     Section 10.4 Effect of Supplemental Indenture. Upon the execution of any supplemental indenture pursuant to the
provisions of this Article, this Indenture shall be and be deemed to be modified and amended in
accordance therewith, but only with regard to the Securities of each series affected by such
supplemental indenture, and the respective rights, limitations of rights, obligations, duties and
immunities under this Indenture of the Trustee, the Company and the Holders of any Securities of
such series affected thereby shall
thereafter be determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of any such supplemental indenture
shall be and be deemed to be part of the terms and conditions of this Indenture for any and all
purposes with regard to the Securities of such series.

58

 

     Section 10.5 Documents To Be Given to Trustee. The Trustee, subject to the provisions of Section 7.1 and
Section 7.2, shall be provided with an Officer’s Certificate and an Opinion of Counsel as
conclusive evidence that any supplemental indenture executed pursuant to this Article complies with
the applicable provisions of this Indenture and is authorized or permitted by this Indenture.

     Section 10.6 Notation on Securities in Respect of Supplemental Indentures. Securities of any series affected by
any supplemental indenture which are authenticated and delivered after the execution of such
supplemental indenture pursuant to the provisions of this Article may bear a notation in form
approved by the Company and 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 Company, to any modification of this Indenture contained in any such
supplemental indenture may be prepared by the Company, authenticated by the Trustee and delivered
in exchange for the Securities of such series then Outstanding.

     Section 10.7 Effect on Senior Indebtedness. No supplemental indenture shall directly or indirectly modify or
eliminate the provisions of ARTICLE 13 in any manner which might terminate or impair the
subordination of the Securities of any series to Company Senior Indebtedness with respect to such
series without the prior written consent of the holders of such Company Senior Indebtedness.

ARTICLE 11

CONSOLIDATION, AMALGAMATION, MERGER OR SALE

     Section 11.1 Company May Consolidate, Etc., Only on Certain Terms. The Company shall not consolidate or
amalgamate with or merge into any other Person (whether or not affiliated with the Company), or
convey, transfer or lease its properties and assets as an entirety or substantially as an entirety
to any other Person (whether or not affiliated with the Company), and the Company shall not permit
any other Person (whether or not affiliated with the Company) to consolidate or amalgamate with or
merge into the Company or convey, transfer or lease its properties and assets as an entirety or
substantially as an entirety to the Company, unless:

          (a) in case the Company shall consolidate or amalgamate with or merge into another
Person or convey, transfer or lease its properties and assets as an entirety or
substantially as an entirety to any Person, the Person formed by such consolidation or
amalgamation or into which the Company is merged or the Person which acquires by
conveyance or transfer, or which leases, the properties and assets of the Company as an
entirety or substantially as an entirety shall be a Corporation or limited liability company
organized and existing under the laws of the United States of America, any state thereof or
the District of Columbia, Bermuda, or any other country (including under the laws of any
state, province or other political subdivision thereof) which is on the date of this
Indenture a member of the Organization for Economic Cooperation and Development, and shall
expressly assume, by an indenture (or indentures, if at such time there is more than one
Trustee) supplemental hereto, executed by the successor Person and delivered to the Trustee
the due and punctual payment of the principal of, any premium and interest (including any
Additional Interest) on and any Additional Amounts with respect to all the

59

 

Securities and the performance of every obligation in this Indenture and the Outstanding Securities on the
part of the Company to be performed or observed and shall provide for conversion or exchange
rights in accordance with the provisions of the Securities of any series that are
convertible or exchangeable into Common Stock or other securities;

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

          (c) in the case of the Securities of a series issued to a Max Capital Trust, such
transaction is permitted under the related Trust Agreement and does not give rise to any
breach or violation of such Trust Agreement; and

     Section 11.2 Opinion of Counsel. Either the Company or the successor Person shall deliver to the Trustee prior
to the proposed transaction(s) covered by Section 11.1 an Officer’s Certificate and an Opinion of
Counsel stating that the transaction(s) and such supplemental indenture are authorized and
permitted by this Indenture and that all conditions precedent to the consummation of the
transaction(s) under this Indenture have been met.

     Section 11.3 Successor Person Substituted. Upon any consolidation or amalgamation by the Company with or merger
of the Company into any other Person or any lease, sale, assignment, or transfer of all or
substantially all of the property and assets of the Company in accordance with Section 11.1, the
successor Person formed by such consolidation or amalgamation or into which the Company is merged
or the successor Person or affiliated group of Persons to which such lease, sale, assignment, or
transfer 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 or Persons
had been named as the Company herein, and thereafter, except in the case of a lease, the
predecessor Person or Persons shall be relieved of all obligations and covenants under this
Indenture and the Securities and in the event of such conveyance or transfer, except in the case of
a lease, any such predecessor Person may be dissolved and liquidated.

ARTICLE 12

SATISFACTION AND DISCHARGE OF INDENTURE, UNCLAIMED MONEYS

     Section 12.1 Satisfaction and Discharge of Securities of Any Series. The Company shall be deemed to have
satisfied and discharged this Indenture with respect to the entire indebtedness on all the
Outstanding Securities of any particular series, and the Trustee, at the expense of the Company and
upon Company Request, shall execute proper instruments acknowledging such satisfaction and
discharge, when

          (a) either:

     (i) all Outstanding Securities of such series theretofore authenticated and
delivered (other than (i) any Securities of such series which have been destroyed,
lost or stolen and which have been replaced or paid as provided in Section 3.7 and
Outstanding Securities of such series for whose payment money

60

 

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 12.3)
have been delivered to the Trustee for cancellation; or

               (ii) all Outstanding Securities of such series described in sub-clause (i)
above (other than the Securities referred to in the parenthetical phrase thereof)
not theretofore delivered to the Trustee for cancellation:

                    (x) have become due and payable;

                    (y) will become due and payable at
their Stated Maturity within one year; or

(z) if redeemable at the option of
the Company or pursuant to the operation of a sinking fund, 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 has irrevocably deposited or caused to be irrevocably deposited with the Trustee as
trust funds in trust an amount (except as otherwise specified pursuant to Section 3.1 for the
Securities of such series) sufficient to pay and discharge the entire indebtedness on all such
Outstanding Securities of such series, not therefore delivered to the Trustee for cancellation,
including the principal of, any premium and interest (including any Additional Interest) on, and
any Additional Amounts with respect to such Securities (based upon applicable law as in effect on
the date of such deposit), to the date of such deposit (in the case of Securities which have become
due and payable) or to the Maturity thereof, as the case may be;

          (b) the Company has paid or caused to be paid all other sums payable with respect to
the Outstanding Securities of such series including all fees due to the Trustee under
Section 7.6;

          (c) 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 due
satisfaction and discharge of this Indenture with respect to the entire indebtedness on all
Outstanding Securities of any such series have been complied with; and

          (d) if the Securities of such series are not to become due and payable at their Stated
Maturity within one year of the date of such deposit or are not to be called for redemption
within one year of the date of such deposit under arrangements satisfactory to the Trustee
as of the date of such deposit, then the Company shall have given, not later than the date
of such deposit, notice of such deposit to the Holders of the Securities of such series.

     Upon the satisfaction of the conditions set forth in this Section 12.1 with respect to all the
Outstanding Securities of any series, the terms and conditions with respect thereto set forth in

61

 

this Indenture shall no longer be binding upon, or applicable to, the Company; provided, however,
that the Company shall not be discharged from (a) any obligations under Section 7.6 and Section
7.10 and (b) any obligations under Section 3.6, Section 3.7, Section 5.1 and Section 12.3 and (c)
any obligations under Section 4.4, with respect to the payment of any Additional Amounts, if any,
(but only to the extent that the Additional Amounts payable with respect to any Outstanding
Securities of such series exceed the amount deposited in respect of such Additional Amounts
pursuant to Section 12.1(a)(ii)); and provided, further, that in the event a petition for relief
under the Federal Bankruptcy Code or a successor statute is filed with respect to the Company
within 91 days after the deposit, this Indenture with respect to the entire indebtedness on all
Securities of such series shall not be discharged, and in such event the Trustee shall return such
deposited funds or obligations as it is then holding to the Company upon Company Request.

          Section 12.2 Defeasance and Covenant Defeasance.

               (a) Unless pursuant to Section 3.1, either or both of (i) defeasance of the Securities
of or within a series under clause of this Section 12.2 shall not be applicable with respect
to the Securities of such series or (ii) covenant defeasance of the Securities of or within
a series under clause of this Section 12.2 shall not be applicable with respect to the
Securities of such series, then such provisions, together with the other provisions of this
Section 12.2 (with such modifications thereto as may be specified pursuant to Section 3.1
with respect to any Securities), shall be applicable to such Securities and the Company may
at its option by Board Resolution, at any time, with respect to such Securities, elect to
have Section 12.2(b) or Section 12.2(c) be applied to such Outstanding Securities upon
compliance with the conditions set forth below in this Section 12.2.

               (b) Upon the Company’s exercise of the above option applicable to this Section 12.2(b)
with respect to any Securities of or within a series, the Company shall be deemed to have
been discharged from its obligations with respect to such Outstanding Securities on the date
the conditions set forth in clause (d) of this Section 12.2 are satisfied (hereinafter,
“defeasance”). For this purpose, such defeasance means that the Company shall be deemed to
have paid and discharged the entire Indebtedness represented by such Outstanding Securities,
and under the Guarantee in respect thereof, which shall thereafter be deemed to be
“Outstanding” only for the purposes of clause (c) of this Section 12.2 and the other
Sections of this Indenture referred to in clauses (i) and (ii) below, and to have satisfied
all of its other obligations under such Securities and this Indenture insofar as such
Securities are concerned (and the Trustee, at the expense of the Company, shall execute
proper instruments acknowledging the same), except for the following which shall survive
until otherwise terminated or discharged hereunder: (i) the rights of Holders of such
Outstanding Securities, solely from the trust fund described in clause (d) of this Section
12.2 and as more fully set forth in such clause, payments in respect of the principal of
(and premium, if any) and interest (including Additional Interest), if any, on, and
Additional Amounts, if any, with respect to, such Securities when such payments are due, and
any rights of such Holder to convert such Securities into other Securities of the Company or
exchange such Securities for securities of another issuer; (ii) the obligations of the
Company and the Trustee with respect to such Securities under Sections 3.6, 3.7, 4.2, 4.3
and 12.3 and with respect to the payment of Additional

62

 

Amounts, if any, on such Securities as contemplated by Section 4.4 (but only to the extent that the
Additional Amounts payable with respect to such Securities exceed the amount deposited in respect of such Additional
Amounts pursuant to Section 12.2(d)(i) below), and with respect to any rights to convert
such Securities into other securities of the Company or exchange such Securities for
securities of another issuer; (iii) the rights, powers, trusts, duties and immunities of the
Trustee hereunder including, without limitation, the compensation, reimbursement and
indemnities provided in Section 7.6 herein; and (iv) this Section 12.2. The Company may
exercise its option under this Section 12.2(b) notwithstanding the prior exercise of its
option under clause (c) of this Section 12.2 with respect to such Securities.

               (c) Upon the Company’s exercise of the option to have this Section 12.2(c) apply with
respect to any Securities of or within a series, the Company shall be released from its
obligations in respect of any other covenant applicable to such Securities, with respect to
such Outstanding Securities on and after the date the conditions set forth in clause (d) of
this Section 12.2 are satisfied (hereinafter, “covenant defeasance”), and such Securities
shall thereafter be deemed to be not “Outstanding” for the purposes of any direction,
waiver, consent or declaration or Act of Holders (and the consequences of any thereof) in
connection with any such covenant or obligation, but shall continue to be deemed
“Outstanding” for all other purposes hereunder. For this purpose, such covenant defeasance
means that, with respect to such Outstanding Securities, 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 or such other covenant or obligation, whether directly or indirectly, by
reason of any reference elsewhere herein to any such Section or such other covenant or
obligation or by reason of reference in any such Section or such other covenant to any other
provision herein or in any other document and such omission
to comply shall not constitute a default or an Event of Default under Section 6.1 but,
except as specified above, the remainder of this Indenture and such Securities shall be
unaffected thereby.

               (d) The following shall be the conditions to application of clause (b) or (c) of this
Section 12.2 to any Outstanding Securities of or within a series:

     (i) The Company shall irrevocably have deposited or caused to be deposited with
the Trustee (or another trustee satisfying the requirements of Section 7.8 who shall
agree to comply with the provisions of this Section 12.2 applicable to it) as trust
funds in trust for the purpose of making the following payments, specifically
pledged as security for, and dedicated solely to, the benefit of the Holders of such
Securities, (1) an amount in Dollars or in such Foreign Currency in which such
Securities are then specified as payable at Stated Maturity, or (2) Government
Obligations applicable to such Securities (determined on the basis of the Currency
in which such Securities are then specified as payable at Stated Maturity) which
through the scheduled payment of principal and interest in respect thereof in
accordance with their terms will provide, not later than one day before the due date
of any payment with respect to such Securities, money in an amount, or (3) a
combination thereof, in any case, in an amount, sufficient, without consideration of
any reinvestment of such principal

63

 

and interest, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, and which
shall be applied by the Trustee (or other qualifying trustee) to pay and discharge,
(y) the principal of (and premium, if any) and interest (including any Additional
Interest), if any, on, and any Additional Amounts with respect to such Securities
(based upon applicable law as in effect on the date of such deposit), such
Outstanding Securities at the Stated Maturity or Redemption Date of such principal
or installment of principal or premium or interest and (z) any mandatory sinking
fund payments or analogous payments applicable to such Outstanding Securities on the
days on which such payments are due and payable in accordance with the terms of this
Indenture and of such Securities and, if applicable, shall have made irrevocable
arrangements satisfactory to the Trustee for the redemption of any Securities to be
redeemed at the option of the Company in connection with such deposit.

          (ii) No Event of Default or event which with notice or lapse of time or both
would become an Event of Default with respect to such Securities shall have occurred
and be continuing on the date of such deposit (after giving effect thereto) and,
with respect to defeasance only, no event described in Section 6.1(f) or (g) at any
time during the period ending on the 91st day after the date of such deposit (it
being understood that this condition shall not be deemed satisfied until the
expiration of such period).

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

          (iv) In the case of an election under clause (b) of this Section 12.2 for which
the Place of Payment is within the United States, the Company shall have delivered
to the Trustee an Opinion of Counsel stating that (i) the Company has received from
the Internal Revenue Service a letter ruling, or there has been published by the
Internal Revenue Service a Revenue Ruling, or (ii) since the date of execution of
this Indenture, there has been a change in the applicable Federal income tax law, in
either case to the effect that, and based thereon such opinion shall confirm that,
the Holders of such Outstanding Securities will not recognize income, gain or loss
for Federal income tax purposes as a result of such defeasance and will be subject
to Federal income tax on the same amounts, in the same manner and at the same times
as would have been the case if such defeasance had not occurred.

          (v) In the case of an election under clause (c) of this Section 12.2 with
respect to Requested Securities and for which the Place of Payment is within the
United States, the Company shall have delivered to the Trustee an Opinion of Counsel
to the effect that the Holders of such Outstanding Securities will not recognize
income, gain or loss for Federal income tax purposes as a result of such covenant
defeasance and will be subject to Federal income tax on the same

64

 

amounts, in the same manner and at the same times as would have been the case if such covenant
defeasance had not occurred.

          (vi) With respect to defeasance only, the Company shall have delivered to the
Trustee an Opinion of Counsel to the effect that, after the 91st day after the date
of deposit, all money and Government Obligations (or other property as may be
provided pursuant to Section 3.1) (including the proceeds thereof) deposited or
caused to be deposited with the Trustee (or other qualifying trustee) pursuant to
this clause (d) to be held in trust will not be subject to recapture or avoidance as
a preference in any case or proceeding (whether voluntary or involuntary) in respect
of the Company under any Federal or State bankruptcy, insolvency, reorganization or
other similar law, or any decree or order for relief in respect of the Company
issued in connection therewith (for which purpose such Opinion of Counsel may assume
that no Holder is an “insider”).

          (vii) With respect to defeasance only, the Company shall have delivered to the
Trustee an Officer’s Certificate as to solvency and the absence of any intent of
preferring the Holders over any other creditors of the Company.

          (viii) The Company shall have delivered to the Trustee an Officer’s Certificate
and an Opinion of Counsel, each stating that all conditions precedent to the
defeasance or covenant defeasance under clause (b) or (c) of this Section 12.2 (as
the case may be) have been complied with.

          (ix) Notwithstanding any other provisions of this Section 12.2(d), such
defeasance or covenant defeasance shall be effected in compliance with any
additional or substitute terms, conditions or limitations which may be imposed on
the Company in connection therewith pursuant to Section 3.1.

          (e) Unless otherwise specified in or pursuant to this Indenture, if, after a deposit
referred to in Section 12.2(d)(i) has been made, (i) the Holder of a Security in respect of
which such deposit was made is entitled to, and does, elect pursuant to Section 3.1 or the
terms of such Security to receive payment in a Currency other than that in which the deposit
pursuant to Section 12.2(d)(i) has been made in respect of such Security, or (ii) a
Conversion Event occurs in respect of the Foreign Currency in which the deposit pursuant to
Section 12.2(d)(i) has been made, the indebtedness represented by such Security shall be
deemed to have been, and will be, fully discharged and satisfied through the payment of the
principal of (and premium, if any), and interest (including any Additional Interest), if
any, on, and Additional Amounts, if any, with respect to, such Security as the same becomes
due out of the proceeds yielded by converting (from time to time as specified below in the
case of any such election) the amount or other property deposited in respect of such
Security into the Currency in which such Security becomes payable as a result of such
election or Conversion Event based on (x) in the case of payments made pursuant to clause
(i) above, the applicable market exchange rate for such Currency in effect on the second
Business Day prior to each payment date, or (y) with respect to a Conversion Event, the
applicable market exchange rate for such Foreign Currency in effect (as nearly as feasible)
at the time of the Conversion Event.

65

 

     The Company shall pay and indemnify the Trustee (or other qualifying trustee, collectively for
purposes of this Section 12.2(d) and Section 12.3, the “Trustee”) against any tax, fee or other
charge, imposed on or assessed against the Government Obligations deposited pursuant to this
Section 12.2 or the principal or interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of such Outstanding Securities.

     Anything in this Section 12.2 to the contrary notwithstanding, the Trustee shall deliver or
pay to the Company from time to time upon Company Request any money or Government Obligations (or
other property and any proceeds therefrom) held by it as provided in clause (d) of this Section
12.2 which, in the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, are in excess of the amount
thereof which would then be required to be deposited to effect a defeasance or covenant defeasance,
as applicable, in accordance with this Section 12.2.

     Section 12.3 Application of Trust Money. All money and obligations deposited with the Trustee pursuant to
Section 12.1 or 12.2 shall be held irrevocably in trust and shall be made under the terms of an
escrow trust agreement in form and substance satisfactory to the Company and the Trustee. Such
money and obligations shall be applied by the Trustee, in accordance with the provisions of the
Securities, this Indenture and such escrow trust agreement, 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 of (and premium, if any) and interest (including any
Additional Interest), if any, on the Securities for the payment of which such money and obligations
have been deposited with the Trustee. If Securities of any series are to be redeemed prior to
their Stated Maturity, whether pursuant to any optional redemption provisions or in accordance with
any mandatory or optional sinking fund requirement, the Company shall give the required notice of
redemption or shall make such arrangements as are satisfactory to the Trustee for the giving of
notice of redemption by the Trustee in the name, and at the expense, of the Company.

     Section 12.4 Repayment of Moneys Held by Paying Agent. In connection with the satisfaction and discharge of
this Indenture with respect to Securities of any series, all moneys with respect to such series
then held by any Paying Agent (and not required for such satisfaction and discharge) shall, upon
demand of the Company, be repaid to it or paid to the Trustee and thereupon such Paying Agent shall
be released from all further liability with respect to such moneys.

     Section 12.5
Return of Unclaimed Moneys Held by Trustee and Paying Agent. Any moneys deposited with or paid to
the Trustee or any Paying Agent for the payment of the principal of, or premium, if any, or
interest, if any, on, Securities of any series and which shall not be applied but shall remain
unclaimed by the Holders of Securities of such series for two years after the date upon which such
payment shall have become due and payable, shall be repaid to the Company by the Trustee on demand;
and the Holder of any of such Securities entitled to receive such payment shall thereafter look
only to the Company for the payment thereof; provided, however, that the Company or the Trustee,
before making any such repayment, shall at the expense of the Company cause to be published once a
week for two successive weeks (in each case on any day of the week) in an Authorized Newspaper, or
mail to each Holder, or

66

 

both, a notice that said moneys have not been so applied and that after a
date named therein any unclaimed balance of said moneys then remaining will be returned to the
Company.

     If the Trustee or Paying Agent is unable to apply any money in accordance with Section 12.3 by
reason of any order or judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, then the Company’s obligations under this Indenture and the
Securities shall be revived and reinstated as though no deposit had occurred pursuant to Section
12.1 or Section 12.2 until such time as the Trustee or Paying Agent is permitted to apply all such
money in accordance with Section 12.3; provided, however, that if the Company makes any payment of
interest on or principal of, or any Additional Amounts, with respect to any Security following the
reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of
such Securities to receive such payment from the money held by the Trustee or Paying Agent.

ARTICLE 13

SUBORDINATION OF SECURITIES

     Section 13.1
Agreement to Subordinate. The Company covenants and agrees, and each Holder of Securities issued hereunder and under any
indenture supplemental hereto or pursuant to a Board Resolution and Officers’ Certificate
(“Additional Provisions”) by such Holder’s acceptance thereof likewise covenants and agrees, that
all Securities shall be issued subject to the provisions of this ARTICLE 13; and each Holder of a
Security, whether upon original issue or upon transfer or assignment thereof, accepts and agrees to
be bound by such provisions.

     The payment by the Company of the principal of, any premium and interest (including any
Additional Interest) on and any Additional Amounts with respect to all Securities of each series
issued hereunder and under any Additional Provisions shall, to the extent and in the manner
hereinafter set forth and subject to the provisions of the related supplemental indenture, be
subordinate in right of payment to the prior payment in full of all Company Senior Indebtedness
with respect to such series, whether outstanding at the date of this Indenture or thereafter
incurred.

     No provision of this ARTICLE 13 shall prevent the occurrence of any default or Event of
Default hereunder.

     Section 13.2 Default on Company Senior Indebtedness. In the event and during the continuation of any default by
the Company in the payment of principal, premium, interest or any other amount due on any Company
Senior Indebtedness with respect to the Securities of any series, or in the event that the maturity
of any Company Senior Indebtedness with respect to the Securities of any series has been
accelerated because of a default, then, in either case, no payment shall be made by the Company
with respect to the principal (including redemption and sinking fund payments) of, any premium or
interest (including any Additional Interest) on, or any Additional Amounts with respect to, the
Securities of such series or to acquire such Securities (other than pursuant to the conversion of
such Securities).

67

 

In the event that, notwithstanding the foregoing, any payment shall be received by the Trustee when
such payment is prohibited by the preceding paragraph of this Section 13.2, such payment shall be
held in trust for the benefit of, and shall be paid over or delivered to, the holders of such
Company Senior Indebtedness or their respective representatives, or to the trustee or trustees
under any indenture pursuant to which any of such Company Senior Indebtedness may have been issued,
as their respective interests may appear, but only to the extent that the holders of such Company
Senior Indebtedness (or their representative or representatives or a trustee) notify the Trustee in
writing within 90 days of such payment of the amounts then due and owing on such Company Senior
Indebtedness and only the amounts specified in such notice to the Trustee shall be paid to the
holders of such Company Senior Indebtedness.

     Section 13.3 Liquidation; Dissolution; Bankruptcy. Upon any payment by the Company or distribution of assets of
the Company of any kind or character, whether in cash, property or securities, to creditors upon
any total or partial liquidation, dissolution, winding-up, reorganization, assignment for the
benefit of creditors or marshaling of assets of the Company, whether voluntary or involuntary, or
in bankruptcy,
insolvency, receivership or other similar proceedings relating to the Company or its assets, all
amounts due upon all Company Senior Indebtedness with respect to the Securities of any series shall
first be paid in full, or payment thereof provided for in money in accordance with its terms,
before any payment is made by the Company on account of the principal of, premium or interest
(including any Additional Interest) on, or Additional Amounts with respect to, the Securities of
such series; and in any such case, any payment by the Company, or distribution of assets of the
Company of any kind or character, whether in cash, property or securities, to which the Holders or
the Trustee (on behalf of Holders with respect to the principal of, premium or interest on or
Additional Amounts with respect to, the Securities of such Series) would be entitled to receive
from the Company, except for the provisions of this ARTICLE 13, shall be paid by the Company or by
any receiver, trustee in bankruptcy, liquidating trustee, agent or other Person making such payment
or distribution, or by the Holders or by the Trustee under this Indenture if received by them or
it, directly to the holders of such Company Senior Indebtedness (pro rata to such holders having
equal seniority on the basis of the respective amounts of such Company Senior Indebtedness held by
such holders, as calculated by the Company) or their representative or representatives, or to the
trustee or trustees under any indenture pursuant to which any instruments evidencing such Company
Senior Indebtedness may have been issued, as their respective interests may appear, to the extent
necessary to pay such Company Senior Indebtedness in full, in money or money’s worth, after giving
effect to any concurrent payment or distribution to or for the holders of such Company Senior
Indebtedness, before any payment or distribution is made to the Holders of the Securities of such
series or to the Trustee.

     In the event that, notwithstanding the foregoing, any payment or distribution of assets of the
Company of any kind or character, whether in cash, property or securities, prohibited by the
foregoing shall be received by the Trustee before all such Company Senior Indebtedness is paid in
full, or provision is made for such payment in money in accordance with its terms, such payment or
distribution shall be held in trust for the benefit of and shall be paid over or delivered to the
holders of such Company Senior Indebtedness or their representative or representatives, or to the
trustee or trustees under any indenture pursuant to which any instruments evidencing such Company
Senior Indebtedness may have been issued, as their respective interests may appear, as calculated
by the Company, for application to the payment of all such Company Senior

68

 

Indebtedness remaining
unpaid to the extent necessary to pay such Company Senior Indebtedness in full in money in
accordance with its terms, after giving effect to any concurrent payment or distribution to or for
the benefit of the holders of such Company Senior Indebtedness.

     For purposes of this ARTICLE 13, the words “cash, property or securities” shall not be deemed
to include common shares of the Company as reorganized or readjusted, or securities of the Company
or any other corporation provided for by a plan of reorganization or readjustment, the payment of
which is subordinated at least to the extent provided in this ARTICLE 13 with respect to the
Securities of the relevant series to the payment of all Company Senior Indebtedness with respect to
the Securities of such series that may at the time be outstanding, provided that (i) such Company
Senior Indebtedness is assumed by the new corporation, if any, resulting from any such
reorganization or readjustment, and (ii) the rights of the holders of such Company Senior
Indebtedness are not, without the consent of such holders, altered by such reorganization or
readjustment. The consolidation or amalgamation of the Company with, or the merger of the Company
into, another Person or the liquidation or dissolution of the Company
following the conveyance, transfer or lease of its property as an entirety, or substantially
as an entirety, to another Person upon the terms and conditions provided for in Sections 11.1 and
11.3 of this Indenture shall not be deemed a dissolution, winding-up, liquidation or reorganization
for the purposes of this Section 13.3 if such other Person shall, as a part of such consolidation,
merger, conveyance or transfer, comply with the conditions stated in Sections 11.1 and 11.3 of this
Indenture.

     Section 13.4 Subrogation. Subject to the payment in full of all Company Senior Indebtedness with respect to the
Securities of any series, the rights of the Holders of the Securities of such series shall be
subrogated to the rights of the holders of such Company Senior Indebtedness to receive payments or
distributions of cash, property or securities of the Company applicable to such Company Senior
Indebtedness until the principal of, any premium and interest (including any Additional Interest)
on, and any Additional Amounts with respect to, the Securities of such series shall be paid in
full; and, for the purposes of such subrogation, no payments or distributions to the holders of
such Company Senior Indebtedness of any cash, property or securities to which the Holders or the
Trustee would be entitled except for the provisions of this ARTICLE 13, and no payment over
pursuant to the provisions of this ARTICLE 13 to or for the benefit of the holders of such Company
Senior Indebtedness by Holders of the Securities of such series or the Trustee, shall, as between
the Company, its creditors other than holders of such Company Senior Indebtedness, and the Holders
of the Securities of such series, be deemed to be a payment by the Company to or on account of such
Company Senior Indebtedness. It is understood that the provisions of this ARTICLE 13 are and are
intended solely for the purposes of defining the relative rights of the Holders of the Securities
of each series, on the one hand, and the holders of the Company Senior Indebtedness with respect to
the Securities of such series on the other hand.

     Nothing contained in this ARTICLE 13 or elsewhere in this Indenture, any Additional Provisions
or in the Securities of any series is intended to or shall impair, as between the Company, its
creditors other than the holders of Company Senior Indebtedness with respect to the Securities of
such series, and the Holders of the Securities of such series, the obligation of the Company, which
is absolute and unconditional, to pay to the Holders of the Securities of such

69

 

series the principal of, any premium and interest (including any Additional Interest) on, and
any Additional Amounts with respect to, the Securities of such series as and when the same shall
become due and payable in accordance with their terms, or is intended to or shall affect the
relative rights of the Holders of the Securities of such series and creditors of the Company, other
than the holders of such Company Senior Indebtedness, nor shall anything herein or therein prevent
the Trustee or the Holder of any Security of such series from exercising all remedies otherwise
permitted by applicable law upon default under this Indenture, subject to the rights, if any, under
this ARTICLE 13 of the holders of such Company Senior Indebtedness in respect of cash, property or
securities of the Company, as the case may be, received upon the exercise of any such remedy.

     Upon any payment or distribution of assets of the Company referred to in this Article, the
Trustee, subject to the provisions of ARTICLE 7 of this Indenture, and the Holders shall be
entitled to conclusively rely upon any order or decree made by any court of competent jurisdiction
in which such dissolution, winding-up, liquidation or reorganization proceedings are pending, or a
certificate of the receiver, trustee in bankruptcy, liquidation trustee, agent or other Person
making such payment or distribution, delivered to the Trustee or to the Holders of the Securities
of any series, for the purposes of ascertaining the Persons entitled to participate in such
distribution, the holders of Company Senior Indebtedness with respect to the Securities of such
series and other indebtedness of the Company, as the case may be, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or
to this ARTICLE 13.

     Section 13.5 Trustee to Effectuate Subordination. Each Holder of Securities by such Holder’s acceptance thereof authorizes and directs the Trustee
on such Holder’s behalf to take such action as may be necessary or appropriate to effectuate the
subordination provided in this ARTICLE 13 and appoints the Trustee such Holder’s attorney-in-fact
for any and all such purposes.

     Section 13.6 Notice by the Company. The Company shall give prompt written notice to a Responsible Officer of the Trustee of any fact
known to the Company that would prohibit the making of any payment of monies to or by the Trustee
in respect of the Securities of any series pursuant to the provisions of this ARTICLE 13.
Notwithstanding the provisions of this ARTICLE 13 or any other provision of this Indenture or any
Additional Provisions, the Trustee shall not be charged with knowledge of the existence of any
facts that would prohibit the making of any payment of monies to or by the Trustee in respect of
the Securities of any series pursuant to the provisions of this ARTICLE 13, unless and until a
Responsible Officer of the Trustee shall have received written notice thereof from the Company or a
holder or holders of Company Senior Indebtedness with respect to the Securities of such series or
from any trustee therefor; and before the receipt of any such written notice, the Trustee, subject
to the provisions of ARTICLE 7 of this Indenture, shall be entitled in all respects to assume that
no such facts exist; provided, however, that if the Trustee shall not have received the notice
provided for in this Section 13.6 at least two Business Days prior to the date upon which by the
terms hereof any money may become payable for any purpose (including, without limitation, the
payment of the principal of, any premium or interest
(including any Additional Interest) on, or any Additional Amounts with respect to, any Security of
such series), then, anything herein contained to the contrary notwithstanding, the Trustee shall
have full power and authority to receive such money and to

70

 

apply the same to the purposes for which they were received, and shall not be affected by any notice to the contrary that may be received by
it within two Business Days prior to such date.

     The Trustee, subject to the provisions of ARTICLE 7 of this Indenture, shall be entitled to
conclusively rely on the delivery to it of a written notice by a Person representing himself to be
a holder of Company Senior Indebtedness with respect to the Securities of any series (or a trustee
on behalf of such holder), to establish that such notice has been given by a holder of such Company
Senior Indebtedness or a trustee on behalf of any such holder or holders. In the event that the
Trustee determines in good faith that further evidence is required with respect to the right of any
Person as a holder of such Company Senior Indebtedness to participate in any payment or
distribution pursuant to this ARTICLE 13, the Trustee may request such Person to furnish evidence
to the reasonable satisfaction of the Trustee as to the amount of such Company Senior Indebtedness
held by such Person, the extent to which such Person is entitled to participate in such payment or
distribution and any other facts pertinent to the rights of such Person under this ARTICLE 13, and,
if such evidence is not furnished, the Trustee may defer any payment to such Person pending
judicial determination as to the right of such Person to receive such payment.

     Section 13.7 Rights of the Trustee; Holders of Company Senior Indebtedness. The Trustee in its individual capacity shall be entitled to all the rights set forth in this
ARTICLE 13 in respect of any Company Senior Indebtedness with respect to the Securities of any
series at any time held by it, to the same extent as any other holder of such Company Senior
Indebtedness, and nothing in this Indenture or any Additional Provisions shall deprive the Trustee
of any of its rights as such holder.

     With respect to the holders of Company Senior Indebtedness with respect to the Securities of
any series, the Trustee undertakes to perform or to observe only such of its covenants and
obligations as are specifically set forth in this ARTICLE 13, and no implied covenants or
obligations with respect to the holders of such Company Senior Indebtedness shall be read into this
Indenture or any Additional Provisions against the Trustee. The Trustee shall not be deemed to owe
any fiduciary duty to the holders of such Company Senior Indebtedness and, subject to the
provisions of ARTICLE 7 of this Indenture, the Trustee shall not be liable to any holder of such
Company Senior Indebtedness if it shall mistakenly or otherwise pay over or deliver to Holders of
the Securities of such series, the Company or any other Person money or assets to which any holder
of such Company Senior Indebtedness shall be entitled by virtue of this ARTICLE 13 or otherwise.

     Nothing in this ARTICLE 13 shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 7.6.

     Section 13.8 Trustee Not Fiduciary for Holders of Senior Indebtedness. The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness
and shall not be liable to any such holders if the Trustee shall in good faith
mistakenly pay over or distribute to Holders of Securities or to the Company or to any other person
cash, property or securities to which any holders of Senior Indebtedness shall be entitled by
virtue of this Article or otherwise. With respect to the holders of Senior Indebtedness, the
Trustee undertakes to perform or to observe only such of its covenants or obligations as are
specifically set forth in this Article and

71

 

no implied covenants or obligations with respect to
holders of Senior Indebtedness shall be read into this Indenture against the Trustee.

     Section 13.9 Subordination May Not Be Impaired. No right of any present or future holder of any Company Senior Indebtedness to enforce
subordination as herein provided shall at any time in any way be prejudiced or impaired by any act
or failure to act on the part of the Company, or by any act or failure to act, in good faith, by
any such holder, or by any noncompliance by the Company with the terms, provisions and covenants of
this Indenture, regardless of any knowledge thereof that any such holder may have or otherwise be
charged with. Without in any way limiting the generality of the foregoing paragraph, the holders
of Company Senior Indebtedness with respect to the Securities of any series may, at any time and
from time to time, without the consent of or notice to the Trustee or the Holders of Securities of
such series, without incurring responsibility to such Holders and without impairing or releasing
the subordination provided in this ARTICLE 13 or the obligations hereunder of the Holders of the
Securities of such series to the holders of such Company Senior Indebtedness, do any one or more of
the following: (i) change the manner, place or terms of payment or extend the time of payment of,
or renew or alter, such Company Senior Indebtedness, or otherwise amend or supplement in any manner
such Company Senior Indebtedness or any instrument evidencing the same or any agreement under which
such Company Senior Indebtedness is outstanding; (ii) sell, exchange, release or otherwise deal
with any property pledged, mortgaged or otherwise securing such Company Senior Indebtedness; (iii)
release any Person liable in any manner for the collection of such Company Senior Indebtedness; and
(iv) exercise or refrain from exercising any rights against the Company and any other Person.

     Section 13.10 Application by Trustee of Assets Deposited with It. Amounts deposited in trust with the Trustee pursuant to and in accordance with this Indenture,
including without limitation pursuant to ARTICLE 12 hereof, shall be for the sole benefit of the
Holders of the Securities and, to the extent allocated for the payment of Securities, shall not be
subject to the subordination provisions of this ARTICLE 13. Otherwise, any deposit of assets with
the Trustee or any Paying Agent (whether or not in trust) for the payment of any Securities shall
be subject to the provisions of Sections 13.1, 13.2, and 13.3; provided that, if prior to two
Business Days preceding the date on which by the terms of this Indenture any such assets may become
distributable for any purpose (including, without limitation, the payment of any amount due on any
Security) the Trustee or such Paying Agent shall not have received with respect to such assets the
written notice provided for in Section 13.6, then the Trustee or such Paying Agent shall have full
power and authority to receive such assets and to apply the same to the purpose for which they were
received, and shall not be affected by any notice to the contrary which may be received by it on or
after such date.

ARTICLE 14

MISCELLANEOUS PROVISIONS

     Section 14.1 Incorporators, Shareholders, Officers and Directors of Company Exempt from
Individual Liability. No recourse under or upon any obligation, covenant or agreement contained in this Indenture, or
in any Security, or for any claim based thereon or otherwise in respect thereof, or because of any
indebtedness evidenced thereby, shall be had against any

72

 

incorporator, as such, or against any
past, present or future shareholder (except in a shareholder’s corporate capacity as Guarantor),
officer or director, as such, of the Company or of any successor, either directly or through the
Company or any successor, under any rule of law, statute or constitutional provision or by the
enforcement of any assessment or by any legal or equitable proceeding or otherwise it being
expressly understood that this Indenture and the obligations issued hereunder are solely corporate
obligations, and that no such personal liability whatever shall attach to, or is or shall be
incurred by, the incorporators, shareholders, officers or directors, as such, of the Company, or
any of them, because of the creation of the indebtedness hereby authorized, or under or by reason
of the obligations, covenants or agreements contained in this Indenture or in any Security or
implied therefrom; and that any and all such personal liability of every name and nature, either at
common law or in equity or by constitution or statute, of, and any and all such rights and claims
against, every such incorporator, shareholder, officer or director, as such, because of the
creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants
or agreements contained in this Indenture or in any Security or implied therefrom, are hereby
expressly waived and released as a condition of, and as a consideration for, the execution of this
Indenture and the issuance of such Security.

     Section 14.2 Provisions of Indenture for the Sole Benefit of Parties and Securityholders. Except as otherwise expressly provided herein with respect to holders of Preferred Securities,
nothing in this Indenture or in the Securities, expressed or implied, shall give or be construed to
give to any Person, other than the parties hereto and their successors, the Holders of the
Securities and holders of Senior Indebtedness, any legal or equitable right, remedy or claim under
this Indenture or under any covenant or provision herein contained, all such covenants and
provisions being for the sole benefit of the parties hereto and their successors and the Holders of
the Securities.

     Section 14.3 Successors and Assigns of Company Bound by Indenture. All the covenants, stipulations, promises and agreements in this Indenture contained by or on
behalf of the Company shall bind its successors and assigns, whether so expressed or not.

     Section 14.4 Holders of Preferred Securities as Third Party Beneficiaries. The Company hereby acknowledges that, to the extent specifically set forth herein, the holders
of the Preferred Securities of a Max Capital Trust shall expressly be third party beneficiaries of
this Indenture. The Company further acknowledges that, if an Event of Default has occurred and is
continuing and is attributable to the failure of the Company to pay the principal of or premium,
if any, or interest on or Additional Amounts with respect to the Securities of the series held by
such Max Capital Trust, any holder of the Preferred Securities of such Max Capital Trust may
institute a Direct Action against the Company.

     Section 14.5 Notices 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 by
first-class mail, postage prepaid, to such Holders as their names and addresses appear on the
Securities Register within the time prescribed. 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 on such

73

 

waiver. 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, and any notice which is mailed in the manner herein provided shall be conclusively
presumed to have been duly given. In the case by reason of the suspension of regular mail service
or by reason of any other cause it shall be impracticable to give such notice by mail, then such
notification as shall be made with the approval of the Trustee shall constitute a sufficient
notification for every purpose hereunder. In case by reason of the suspension of publication of
any Authorized Newspapers or by reason of any other cause it shall be impracticable to publish any
notice to Holders otherwise required or permitted under this Indenture, then such notification as
shall be given with the approval of the Trustee shall constitute sufficient notice to such Holders
for every purpose hereunder.

     Section 14.6 Addresses for Notices. Any notice or demand which by any provision of this Indenture is required or permitted to be
given or served by the Trustee or by the Holders of Securities of any series on the Company may be
given or served by registered mail addressed (until another address is filed by the Company with
the Trustee) as follows: Max Capital Group Ltd., Max House, 2 Front Street, Hamilton, HM 11,
Bermuda, Attention: General Counsel. Any notice, direction, request or demand by the Company or
any Holders of Securities of any series to or upon the Trustee shall be deemed to have been
sufficiently given or made, for all purposes, if received at the Corporate Trust Office of such
Trustee.

     Section 14.7 Officer’s Certificates and Opinions of Counsel; Statements to Be Contained
Therein. Upon any application or demand by the Company to the Trustee to take any action under any of the
provisions of this Indenture, the Company shall furnish to the Trustee an Officer’s Certificate
stating that all conditions precedent (including any covenants compliance with which constitutes a
condition precedent), if any, provided for in this Indenture relating to the proposed action have
been complied with and an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent (including any covenants compliance with which constitutes a condition
precedent) have been complied with, except that in the case of any such
application or demand as to which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished.

     Each certificate or opinion provided for in this Indenture (other than annual certificates
provided pursuant to Section 4.10) and delivered to the Trustee with respect to compliance with a
condition or covenant provided for in this Indenture shall include (a) a statement that the Person
making such certificate or opinion has read such covenant or condition, (b) a brief statement as to
the nature and scope of the examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based, (c) a statement that, in the opinion of such
Person, he has made such examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been complied with and (d) a
statement as to whether or not, in the opinion of such Person, such condition or covenant has been
complied with.

     Any certificate, statement 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 that the certificate or opinion or representations with respect to the matters

74

 

upon which his certificate, statement or opinion may be based as aforesaid are erroneous, or in the
exercise of reasonable care should know that the same are erroneous.

     Any certificate, statement or opinion of counsel may be based, insofar as it relates to
factual matters, information with respect to which is in the possession of the Company, upon the
certificate, statement or opinion of or representations by an officer or officers of the Company,
unless such counsel knows that the certificate, statement or opinion or representations with
respect to the matters upon which his certificate, statement or opinion may be based as aforesaid
are erroneous, or in the exercise of reasonable care should know that the same are erroneous. Any
certificate, statement or opinion of an officer of the Company or of counsel may be based, insofar
as it relates to accounting matters, upon a certificate or opinion of or representations by an
accountant or firm of accountants in the employ of the Company, unless such officer or counsel, as
the case may be, knows that the certificate or opinion or representations with respect to the
accounting matters upon which his certificate, statement or opinion may be based as aforesaid are
erroneous, or in the exercise of reasonable care should know that the same are erroneous. Any
certificate or opinion of any independent firm of public accountants filed with the Trustee shall
contain a statement that such firm is independent.

     Section 14.8 Separability Clause. In case any provision of this Indenture or of 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 14.9 Legal Holidays. In any case where any Interest Payment Date, Redemption Date or Stated Maturity of any Security
shall not be a Business Day in any Place of Payment, then (notwithstanding any other provision of
this Indenture or of the Securities, other than a provision in Securities of any series,
or any Tranche thereof, or in the indenture supplemental hereto, Board Resolution or Officer’s
Certificate that establishes the terms of the Securities of such series or Tranche, 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, and no interest shall accrue on
the amount so payable for the period from and after such Interest Payment Date, Redemption Date or
Stated Maturity, as the case may be, to such Business Day, except that if such next succeeding
Business Day is in the next succeeding calendar year, such payment may be made, and such Securities
may be converted or exchanged, on the immediately preceding Business Day (in the case of each of
the foregoing, with the same force and effect as if made on such Interest Payment Date or at such
Stated Maturity or Maturity or on such last day for conversion or exchange, as the case may be).

     Section 14.10 Conflict of Any Provision of Indenture with Trust Indenture Act. If and to the extent that any provision of this Indenture 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 former
provision shall control.

     Section 14.11 Governing Law; Waiver of Jury Trial. This Indenture and each Security shall be deemed to be a contract governed by and construed in
accordance with the laws of the

75

 

State of New York applicable to agreements made or instruments
entered into and, in each case, performed in said state. EACH OF THE COMPANY AND THE TRUSTEE
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR
THE TRANSACTION CONTEMPLATED HEREBY.

     Section 14.12 Judgment Currency. The Company agrees, to the fullest extent that it may effectively do so under applicable law,
that (a) if for the purpose of obtaining judgment in any court it is necessary to convert the sum
due in respect of the principal of, or premium or interest, if any, or Additional Amounts on the
Securities of any series (the “Required Currency”) into a currency in which a judgment will be
rendered (the “Judgment Currency”), the rate of exchange used shall be the rate at which in
accordance with normal banking procedures the Trustee could purchase in the City of New York the
requisite amount of the Required Currency with the Judgment Currency on the New York Banking Day
preceding the day on which a final unappealable judgment is given and (b) its obligations under
this Indenture to make payments in the Required Currency (i) shall not be discharged or satisfied
by any tender, or any recovery pursuant to any judgment (whether or not entered in accordance with
clause (a)), in any currency other than the Required Currency, except to the extent that such
tender or recovery shall result in the actual receipt, by the payee, of the full amount of the
Required Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as
an alternative or additional cause of action for the purpose of
recovering in the Required Currency the amount, if any, by which such actual receipt shall fall
short of the full amount of the Required Currency so expressed to be payable and (iii) shall not be
affected by judgment being obtained for any other sum due under this Indenture. For purposes of
the foregoing, “New York Banking Day” means any day except a Saturday, Sunday or a legal holiday in
The City of New York or a day on which banking institutions in The City of New York are authorized
or obligated by law, regulation or executive order to be closed.

     Section 14.13 No Security Interest Created. Nothing in this Indenture or in any Securities, express or implied, shall be construed to
constitute a security interest under the Uniform Commercial Code or similar legislation, as now or
hereafter enacted and in effect in any jurisdiction where property of the Company or its
Subsidiaries is or may be located.

     Section 14.14 Submission to Jurisdiction. The Company agrees that any judicial proceedings instituted in relation to any matter arising
under this Indenture or the Securities may be brought in any United States Federal or New York
State court sitting in the Borough of Manhattan, The City of New York, New York to the extent that
such court has subject matter jurisdiction over the controversy, and, by execution and delivery of
this Indenture, the Company hereby irrevocably accepts, generally and unconditionally, the
jurisdiction of the aforesaid courts, acknowledges their competence and irrevocably agrees to be
bound by any judgment rendered in such proceeding. The Company also irrevocably and
unconditionally waives for the benefit of the Trustee and the Holders of the Securities any
immunity from jurisdiction and any immunity from legal process (whether through service or notice,
attachment prior to judgment, attachment in the aid of execution, execution or otherwise) in
respect of this Indenture. The Company hereby irrevocably designates and appoints for the benefit
of the Trustee and the Holders of the Securities for the term of this Indenture CT Corporation
System, 111 Eighth

76

 

Avenue, New York, New York 10011, as its agent to receive on its behalf service
of all process (with a copy of all such service of process to be delivered to Max Capital Group
Ltd., Max House, 2 Front Street, Hamilton, HM 11, Bermuda, Attention: General Counsel) brought
against it with respect to any such proceeding in any such court in The City of New York, such
service being hereby acknowledged by the Company to be effective and binding service on it in every
respect whether or not the Company shall then be doing or shall have at any time done business in
New York. Such appointment shall be irrevocable so long as any of the Securities or the
obligations of the Company hereunder remain outstanding until the appointment of a successor by the
Company and such successor’s acceptance of such appointment. Upon such acceptance, the Company
shall notify the Trustee in writing of the name and address of such successor. The Company further
agrees for the benefit of the Trustee and the Holders of the Securities to take any and all action,
including the execution and filing of any and all such documents and instruments, as its agent in
full force and effect so long as any of the Securities or the obligations of the Company hereunder
shall be outstanding. The Trustee shall not be obligated and shall have no responsibility with
respect to any failure by the Company to take any such action. Nothing herein shall affect the
right to serve process in any other manner permitted by any law or limit the right of the Trustee
or any Holder to institute proceedings against the Company in the courts of any other jurisdiction
or jurisdictions.

     Section 14.15 Counterparts. This Indenture may be executed in any number of counterparts, and on separate counterparts, each
of which shall be an original; but such counterparts shall together constitute but one and the same
instrument.

     Section 14.16 Effect of Headings. The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the interpretation hereof.

     Section 14.17 Force Majeure. In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation strikes, work stoppages, accidents, acts
of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of
God, and interruptions, loss or malfunctions of utilities, communications or computer (software and
hardware) services; it being understood that the Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances.

ARTICLE 15

REDEMPTION OF SECURITIES

     Section 15.1 Applicability of Article. The provisions of this Article shall be applicable to the Securities of any series which are
redeemable before their Stated Maturity except as otherwise specified as contemplated by Section
3.1 for Securities of such series.

     Section 15.2 Notice of Redemption; Selection of Securities. In case the Company shall desire to exercise the right to redeem all or, as the case may be, any
part of the Securities of any series in accordance with their terms, it shall fix a Redemption Date
and shall provide notice of such redemption at least 45 days prior to such Redemption Date to the
Trustee and at least 30

77

 

days but no more than 60 days prior to such Redemption Date to the Holders
of Securities of such series so to be redeemed as a whole or in part in the manner provided in
Section 15.5, unless a different period is specified in the Securities to be redeemed. The notice
provided in the manner herein specified shall be conclusively presumed to have been duly given,
whether or not the Holder receives such notice. In any case, failure to give such notice or any
defect in the notice to the Holder of any Security of a series designated for redemption as a whole
or in part shall not affect the validity of the proceedings for the redemption of any other
Security of such series. If the Securities of a series are held by a Max Capital Trust, the
Company shall also deliver a copy of such notice to the Institutional Trustee of such Max Capital
Trust.

     Each such notice of redemption shall specify the Redemption Date, the Redemption Price, the
CUSIP or other comparable number, the Place or Places of Payment, that the Securities of such
series are being redeemed at the option of the Company pursuant to provisions contained in the
terms of the Securities of such series or in a supplemental indenture establishing such series, if
such be the case, together with a brief statement of the facts permitting such redemption, that
payment will be made upon presentation and surrender of the applicable Securities at the Place or
Places of Payment, that the Redemption Price together with any interest accrued and Additional
Amounts to the Redemption Date will be paid as specified in said notice, and that on and after said
Redemption Date any interest thereon or on the portions thereof to be redeemed will cease to
accrue, and any information that is required to be included therein by the Depositary.

     If fewer than all the Securities of any series are to be redeemed the notice of redemption
shall specify the numbers of the Securities of such series to be redeemed. In case any Security of
any series is to be redeemed in part only, the notice of redemption shall state the portion of the
principal amount thereof to be redeemed and shall state that on and after the Redemption Date, upon
surrender of such Security, a new Security or Securities of such series in principal amount equal
to the unredeemed portion thereof will be issued, or, in the case of Securities providing
appropriate space for such notation, at the option of the Holders the Trustee, in lieu of
delivering a new Security or Securities as aforesaid, may make a notation on such Security of the
payment of the redeemed portion thereof.

     On or before the Redemption Date with respect to the Securities of any series stated in the
notice of redemption given as provided in this Section 16.2, the Company will deposit with the
Trustee or with one or more Paying Agents an amount of money (except as otherwise specified as
contemplated by Section 3.1 for the Securities of such series or if the Company is acting as its
own Paying Agent, segregate and hold in trust as provided in Section 4.3) sufficient to redeem on
such Redemption Date all the Securities or portions thereof so called for redemption at the
applicable Redemption Price, together with accrued interest on and Additional Amounts with respect
thereto, to such Redemption Date.

     If fewer than all the Securities of any series, or any Tranche thereof, are to be redeemed,
the Company shall give notice of redemption to the Trustee not less than 60 days prior to the
Redemption Date as to the aggregate principal amount of Securities to be redeemed.

     If fewer than all the Securities of any series are to be redeemed, the particular Securities
to be redeemed shall be selected by the Trustee, from the Outstanding Securities of such series or

78

 

Tranche not previously called for redemption, substantially pro rata, by lot or by any other method
the Trustee considers fair and appropriate and that complies with the requirements of the principal
national securities exchange, if any, on which such Securities are listed, and which may provide
for the selection for redemption of portions (equal to the minimum authorized denomination for
Securities of that series or Tranche or any integral multiple thereof) of the principal amount of
Securities of such series or Tranche of a denomination larger than the minimum authorized
denomination for Securities of that series or Tranche; provided that in case the Securities of such
series or Tranche have different terms and maturities, the Securities to be redeemed shall be
selected by the Company and the Company shall give notice thereof to the Trustee; provided,
however, that if, as indicated in an Officer’s Certificate, the Company shall
have offered to purchase all or any principal amount of the Securities then Outstanding of any
series, or any Tranche thereof, and fewer than all of such Securities as to which such offer was
made shall have been tendered to the Company for such purchase, the Trustee, if so directed by
Company Order, shall select for redemption all or any principal amount of such Securities which
have not been so tendered.

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

     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.

     Section 15.3 Payment of Securities Called for Redemption. If notice of redemption has been given as above provided and the Company has deposited, on or
before the Redemption Date, with the Trustee (and/or having irrevocably directed the Trustee to
apply, from money held by it available to be used for the redemption of Securities) an amount in
cash sufficient to redeem all of the Securities to be redeemed, the Securities or portions of
Securities of the series specified in such notice shall become due and payable on the Redemption
Date, and at the place or places stated in such notice at the applicable Redemption Price, together
with any interest accrued to such Redemption Date, and on and after said Redemption Date any
interest on the Securities or portion of Securities of any series so called for redemption shall
cease to accrue. On presentation and surrender of such Securities at a Place of Payment in such
notice specified, such Securities or the specified portions thereof shall be paid and redeemed by
the Company at the applicable Redemption Price, together with any interest accrued and Additional
Amounts to the Redemption Date, except that if such Redemption Date is an Interest Payment Date,
interest shall be paid as provided in Section 3.8.

     Upon presentation of any Security redeemed in part only, the Company shall execute and the
Trustee shall authenticate and make available for delivery to or on the order of the Holder
thereof, at the expense of the Company, a new Security or Securities of such series, of authorized
denominations, in principal amount equal to the unredeemed portion of the Security so presented.

79

 

     If a Security in global form is so surrendered, the Company shall execute, and the Trustee
shall authenticate and deliver to the Depositary for such Security in global form as shall be
specified in the Company Order with respect thereto to the Trustee, without service charge, a new
Security in global form in a denomination equal to and in exchange for the unredeemed portion of
the principal of the Security in global form so surrendered.

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

     Section 15.4 Right of Redemption of Securities Issued to a Max Capital Trust. In the case of the Securities of a series issued to a Max Capital Trust, except as otherwise
specified as contemplated by Section 3.1, if a Special Event in respect of such Max Capital Trust
shall occur and be continuing, the Company may, at its option, redeem the Securities of such series
within 90 days of the occurrence of such Special Event, in whole but not in part, subject to the
provisions of this Section 16.4 and the other provisions of this ARTICLE 16. Unless otherwise
specified in or pursuant to this Indenture or the Securities of such series, the redemption price
for any Security so redeemed pursuant to this Section 16.4 shall be equal to 100% of the principal
amount of such Securities then Outstanding plus accrued and unpaid interest, including any
Additional Interest, to the date fixed for redemption.

ARTICLE 16

SINKING FUNDS

     Section 16.1 Applicability of Article. The provisions of this Article shall be applicable to any sinking fund for the retirement of
Securities of a series except as otherwise specified as contemplated by Section 3.1 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.”

     Section 16.2 Satisfaction of Mandatory Sinking Fund Payment with Securities. In lieu of making all or any part of any mandatory sinking fund payment with respect to any
Securities of a series in cash, the Company may at its option, at any time but not less than 45
days prior to the date on which such sinking fund payment is due, deliver to the Trustee Securities
of such series theretofore purchased or otherwise acquired by the Company, except Securities of
such series which have been redeemed through the application of mandatory sinking fund payments
pursuant to the terms of the Securities of such series, accompanied by a company order instructing
the Trustee to credit such obligations and stating that the Securities of such series were
originally issued by the Company by way of bona fide sale or other negotiation for value; 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 mandatory sinking fund and the amount of such mandatory sinking
fund payment shall be reduced accordingly.

80

 

     Section 16.3 Redemption of Securities for Sinking Fund. Not less than 60 days prior to each sinking fund payment date for any series of Securities, the
Company will deliver to the Trustee a certificate signed by a Vice President, the Treasurer or any
Assistant Treasurer of the Company specifying the amount of the next ensuing sinking fund payment
for such series pursuant to the terms of such 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 such series pursuant to Section 17.2 and whether the Company
intends to exercise its rights to make a permitted optional sinking fund payment with respect to
such series. Such certificate shall be irrevocable and upon its delivery the Company shall be
obligated to make the cash payment or payments therein referred to, if any, on or before the next
succeeding sinking fund payment date. In the case of the failure of the Company to deliver such
certificate (or to deliver the Securities, if any, specified in such certificate within the time
period specified in Section 17.2), unless otherwise agreed by the Trustee, the sinking fund payment
due on the next succeeding sinking fund payment date for such series shall be paid entirely in cash
and shall be sufficient to redeem the principal amount of the Securities of such series subject to
a mandatory sinking fund payment without the right to deliver or credit Securities as provided in
Section 17.2 and without the right to make any optional sinking fund payment, if any, with respect
to such series.

     Any sinking fund payment or payments (mandatory or optional) made in cash plus any unused
balance of any preceding sinking fund payments made with respect to the Securities of any
particular series shall be applied by the Trustee (or by the Company if the Company is acting as
its own Paying Agent) on the sinking fund payment date on which such payment is made (or, if such
payment is made before a sinking fund payment date, on the sinking fund payment date following the
date of such payment) to the redemption of Securities of such series at the Redemption Price
specified in such Securities with respect to the sinking fund together with accrued interest, if
any, to the applicable Redemption Date. Any sinking fund moneys not so applied or allocated by the
Trustee (or by the Company if the Company is acting as its own Paying Agent) to the redemption of
Securities shall be added to the next sinking fund payment received by the Trustee (or if the
Company is acting as its own Paying Agent, segregated and held in trust as provided in Section 4.3)
for such series and, together with such payment (or such amount so segregated) shall be applied in
accordance with the provisions of this Section 17.3. Any and all sinking fund moneys with respect
to the Securities of any particular series held by the Trustee (or if the Company is acting as its
own Paying Agent, segregated and held in trust as provided in Section 4.3) on the last sinking fund
payment date with respect to Securities of such series and not held for the payment or redemption
of particular Securities of such series shall be applied by the Trustee (or by the Company if the
Company is acting as its own Paying Agent), together with other moneys, if necessary, to be
deposited (or segregated) sufficient for the purpose, to the payment of the principal of the
Securities of such series at Maturity.

     The Trustee shall select or cause to be selected the Securities to be redeemed upon such
sinking fund payment date in the manner specified in Section 16.2 and the Company shall cause
notice of the redemption thereof to be given in the manner provided in Section 16.2 except that the
notice of redemption shall also state that the Securities are being redeemed by operation of the
sinking fund and whether the sinking fund payment is mandatory or optional, or both, as the case
may be. Such notice having been duly given, the redemption of the Securities shall be made upon
the terms and in the manner stated in Section 16.3.

81

 

     On or before each sinking fund payment date, the Company shall pay to the Trustee (or, if the
Company is acting as its own Paying Agent, will segregate and hold in trust as provided in Section
4.3) in cash a sum equal to the principal and any interest accrued to the Redemption Date for
Securities or portions thereof to be redeemed on such sinking fund payment date pursuant to this
Section.

     Neither the Trustee nor the Company shall redeem any Securities of a series with sinking fund
moneys or mail any notice of redemption of Securities of such series by operation of the sinking
fund for such series during the continuance of a default in payment of interest, if any, on any
Securities of such series or of any Event of Default (other than an Event of Default occurring as a
consequence of this paragraph) with respect to the Securities of such series, except that if the
notice of redemption shall have been provided in accordance with the provisions hereof, the Trustee
(or the Company if the Company is acting as its own Paying Agent) shall redeem such Securities if
cash sufficient for that purpose shall be deposited with the Trustee (or segregated by the Company)
for that purpose in accordance with the terms of this Article. Except as aforesaid, any moneys in
the sinking fund for such series at the time when any such default or Event of Default shall occur
and any moneys thereafter paid into such sinking fund shall, during the continuance of such default
or Event of Default, be held as security for the payment of the Securities of such series;
provided, however, that in case such Event of Default or default shall have been cured or waived as
provided herein, such moneys shall thereafter be applied on the next sinking fund payment date for
the Securities of such series on which such moneys may be applied pursuant to the provisions of
this Section.

     IN WITNESS WHEREOF, Max Capital Group Ltd. has caused this Indenture to be duly executed as a
deed as of the date above written.

	 	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

82

 

     IN WITNESS WHEREOF, the undersigned, being duly authorized, has executed this Indenture as of
the date first above written.

	 	 	 	 	 	 	 
	 	 	[     ], AS TRUSTEE
	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

83EX-4.6

 

Exhibit 4.6

 

 

MAX USA HOLDINGS LTD., as Issuer,

MAX CAPITAL GROUP LTD., as Guarantor

AND

[_______________________], as Trustee

 

SENIOR INDENTURE

Dated as of [_______________]

 

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE ONE DEFINITIONS
	 	 	1	 
	Section 1.1 Certain Terms Defined
	 	 	1	 
	ARTICLE TWO SECURITIES
	 	 	9	 
	Section 2.1 Forms Generally
	 	 	9	 
	Section 2.2 Form of Trustee’s Certificate of Authentication
	 	 	12	 
	Section 2.3 Amount Unlimited; Issuable in Series
	 	 	13	 
	Section 2.4 Authentication and Delivery of Securities
	 	 	14	 
	Section 2.5 Execution of Securities
	 	 	16	 
	Section 2.6 Certificate of Authentication
	 	 	17	 
	Section 2.7 Denomination and Date of Securities; Payments of Interest
	 	 	17	 
	Section 2.8 Registration, Transfer and Exchange
	 	 	18	 
	Section 2.9 Mutilated, Defaced, Destroyed, Lost and Stolen Securities
	 	 	23	 
	Section 2.10 Cancellation of Securities
	 	 	24	 
	Section 2.11 Temporary Securities
	 	 	24	 
	Section 2.12 Currency and Manner of Payments in Respect of Securities
	 	 	25	 
	Section 2.13 CUSIP Numbers
	 	 	27	 
	Section 2.14 Securities in Global Form
	 	 	28	 
	ARTICLE THREE COVENANTS
	 	 	28	 
	Section 3.1 Payment of Principal, any Premium, Interest and Additional Amounts
	 	 	28	 
	Section 3.2 Offices for Notices and Payment, etc
	 	 	28	 
	Section 3.3 Money for Securities Payments to Be Held in Trust
	 	 	29	 
	Section 3.4 Additional Amounts
	 	 	31	 
	Section 3.5 Limitation of Liens on Stock of Restricted Subsidiaries

	 	 	32	 
	Section 3.6 Limitation on Disposition of Stock of Designated Subsidiaries
	 	 	33	 
	Section 3.7 Corporate Existence
	 	 	33	 
	Section 3.8 Waiver of Certain Covenants
	 	 	33	 
	Section 3.9 Company Statement as to Compliance; Notice of Certain Defaults
	 	 	34	 
	Section 3.10 Guarantor Statement as to Compliance; Notice of Certain Defaults
	 	 	34	 
	Section 3.11
Maintenance Properties 
	 	 	35	 
	Section 3.12
Payment of Taxes and Other Claims
	 	 	35	 
	Section 3.13
Further Acts and Instruments
	 	 	36	 
	Section 3.14
Calculations of  Original Issue Discount
	 	 	36	 
	ARTICLE FOUR SECURITYHOLDERS’ LISTS AND REPORTS BY THE ISSUER, GUARANTOR AND THE TRUSTEE
	 	 	36	 

i

 

	 	 	 	 	 
	Section 4.1 Company and Guarantor to Furnish Trustee Information as to Names and
Addresses of Securityholders
	 	 	36	 
	Section 4.2 Preservation and Disclosure of Securityholders’ Lists
	 	 	36	 
	Section 4.3 Reports by the Company and Guarantor
	 	 	38	 
	Section 4.4 Reports by the Trustee
	 	 	38	 
	ARTICLE FIVE REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
	 	 	39	 
	Section 5.1 Event of Default Defined; Acceleration of Maturity; Waiver of Default
	 	 	39	 
	Section 5.2 Collection of Indebtedness by Trustee; Trustee May Prove Debt
	 	 	42	 
	Section 5.3 Application of Proceeds
	 	 	44	 
	Section 5.4 Suits for Enforcement
	 	 	45	 
	Section 5.5 Restoration of Rights on Abandonment of Proceedings
	 	 	45	 
	Section 5.6 Limitations on Suits by Securityholders
	 	 	45	 
	Section 5.7 Unconditional Right of Securityholders to Institute Certain Suits
	 	 	46	 
	Section 5.8 Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default

	 	 	46	 
	Section 5.9 Control by Securityholders
	 	 	46	 
	Section 5.10 Waiver of Past Defaults
	 	 	47	 
	Section 5.11 Trustee to Give Notice of Default, But May Withhold in Certain
Circumstances
	 	 	47	 
	Section 5.12 Right of Court to Require Filing of Undertaking to Pay Costs
	 	 	47	 
	ARTICLE SIX CONCERNING THE TRUSTEE
	 	 	48	 
	Section 6.1 Duties and Responsibilities of the Trustee; During Default; Prior to
Default
	 	 	48	 
	Section 6.2 Certain Rights of the Trustee
	 	 	48	 
	Section 6.3 Trustee Not Responsible for Recitals, Disposition of Securities or
Application of Proceeds Thereof
	 	 	51	 
	Section 6.4 Trustee and Agents May Hold Securities; Collections, etc
	 	 	51	 
	Section 6.5 Moneys Held by Trustee
	 	 	51	 
	Section 6.6 Compensation and Indemnification of Trustee and Its Prior Claim
	 	 	51	 
	Section 6.7 Right of Trustee to Rely on Officers’ Certificate, Guarantor’s Officer’s
Certificate, etc
	 	 	52	 

ii

 

	 	 	 	 	 
	Section 6.8 Disqualification of Trustee; Conflicting Interests
	 	 	52	 
	Section 6.9 Persons Eligible for Appointment as Trustee
	 	 	52	 
	Section 6.10 Resignation and Removal; Appointment of Successor Trustee
	 	 	53	 
	Section 6.11 Acceptance of Appointment by Successor Trustee
	 	 	54	 
	Section 6.12 Merger, Conversion, Consolidation or Succession to Business of Trustee

	 	 	55	 
	Section 6.13 Preferential Collection of Claims Against the Company
	 	 	56	 
	Section 6.14 Appointment of Co-Trustees
	 	 	56	 
	ARTICLE SEVEN CONCERNING THE SECURITYHOLDERS
	 	 	57	 
	Section 7.1 Evidence of Action Taken by Securityholders
	 	 	57	 
	Section 7.2 Proof of Execution of Instruments
	 	 	57	 
	Section 7.3 Holders to Be Treated as Owners
	 	 	57	 
	Section 7.4 Securities Owned by Company Deemed Not Outstanding
	 	 	58	 
	Section 7.5 Right of Revocation of Action Taken
	 	 	58	 
	Section 7.6 Record Date for Determination of Holders Entitled to Vote
	 	 	59	 
	Section 7.7 Regarding the Depositary
	 	 	59	 
	ARTICLE EIGHT SUPPLEMENTAL INDENTURES
	 	 	59	 
	Section 8.1 Supplemental Indentures Without Consent of Securityholders
	 	 	59	 
	Section 8.2 Supplemental Indentures With Consent of Securityholders
	 	 	61	 
	Section 8.3 Effect of Supplemental Indenture
	 	 	62	 
	Section 8.4 Documents to Be Given to Trustee
	 	 	62	 
	Section 8.5 Notation on Securities in Respect of Supplemental Indentures
	 	 	62	 
	ARTICLE NINE CONSOLIDATION, AMALGAMATION, MERGER AND SALES
	 	 	63	 
	Section 9.1 Company May Consolidate, etc., on Certain Terms
	 	 	63	 
	Section 9.2 Successor Corporation Substituted
	 	 	63	 
	Section 9.3 Guarantor May Consolidate, Etc., Only on Certain Terms
	 	 	64	 
	Section 9.4 Successor Person Substituted for Guarantor
	 	 	65	 
	ARTICLE TEN SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS
	 	 	65	 
	Section 10.1 Satisfaction and Discharge of Indenture
	 	 	65	 
	Section 10.2 Application by Trustee of Funds Deposited for Payment of Securities
	 	 	70	 
	Section 10.3 Repayment of Moneys Held by Paying Agent
	 	 	70	 

iii

 

	 	 	 	 	 
	Section 10.4 Return of Unclaimed Moneys Held by Trustee and Paying Agent
	 	 	70	 
	Section 10.5 Reinstatement of Company’s and Guarantor’s Obligations
	 	 	71	 
	Section 10.6 Payments in Foreign Currencies
	 	 	71	 
	Section 10.7 Indemnification Against Taxes
	 	 	71	 
	ARTICLE ELEVEN MISCELLANEOUS PROVISIONS
	 	 	72	 
	Section 11.1 Incorporators, Stockholders, Officers and Directors of Company and
Guarantor Exempt from Individual Liability
	 	 	72	 
	Section 11.2 Provisions of Indenture for the Sole Benefit of Parties and
Securityholders
	 	 	72	 
	Section 11.3 Successors and Assigns of Company Bound by Indenture
	 	 	72	 
	Section 11.4 Notices and Demands on Company, the Guarantor, Trustee and
Securityholders
	 	 	72	 
	Section 11.5 Officers’ Certificates and Opinions of Counsel; Statements to Be
Contained Therein
	 	 	73	 
	Section 11.6 Payments Due on Saturdays, Sundays and Holidays
	 	 	74	 
	Section 11.7 Conflict of Any Provision of Indenture with Trust Indenture Act of 1939

	 	 	74	 
	Section 11.8 New York Law to Govern; Submission to Jurisdiction; Waiver of Trial by
Jury
	 	 	74	 
	Section 11.9 Counterparts
	 	 	75	 
	Section 11.10 Effect of Headings
	 	 	75	 
	Section 11.11 Determination of Principal Amount
	 	 	75	 
	ARTICLE TWELVE REDEMPTION OF SECURITIES AND SINKING FUNDS
	 	 	76	 
	Section 12.1 Applicability of Article
	 	 	76	 
	Section 12.2 Notice of Redemption; Partial Redemptions
	 	 	76	 
	Section 12.3 Payment of Securities Called for Redemption
	 	 	77	 
	Section 12.4 Exclusion of Certain Securities from Eligibility for Selection for
Redemption
	 	 	78	 
	Section 12.5 Mandatory and Optional Sinking Funds
	 	 	78	 
	Section 12.6 Repayment at the Option of the Holders
	 	 	80	 
	Section 12.7 Optional Redemption For Tax Reasons
	 	 	80	 
	ARTICLE THIRTEEN GUARANTEE AND INDEMNITY
	 	 	81	 
	Section 13.1 The Guarantee
	 	 	81	 
	Section 13.2 Guarantee Unconditional, etc
	 	 	82	 

iv

 

	 	 	 	 	 
	Section 13.3 Reinstatement
	 	 	82	 
	Section 13.4 Subrogation
	 	 	83	 
	Section 13.5 Indemnity
	 	 	83	 

v

 

     THIS INDENTURE, dated as of [___], among MAX USA HOLDINGS LTD., a corporation duly
organized and existing under the laws of the State of Delaware (the “Company”), MAX CAPITAL GROUP
LTD., a company duly organized and existing under the laws of Bermuda (the “Guarantor”) and
[___], a [___], as Trustee (the “Trustee”).

W I T N E S S E T H:

     WHEREAS, the Company has duly authorized the issue from time to time of its notes, unsecured
debentures, securities or other evidences of indebtedness to be issued in one or more Series (the
“Securities”) up to such principal amount or amounts as may from time to time be authorized in
accordance with the terms of this Indenture and to provide, among other things, for the
authentication, delivery and administration thereof, the Company has duly authorized the execution
and delivery of this Indenture;

     WHEREAS, for value received, the Guarantor has duly authorized the execution and delivery of
this Indenture to provide for the issuance of the Guarantee and the indemnity provided for herein;
and

     WHEREAS, all things necessary to make this Indenture a valid indenture and agreement of each
party according to its terms have been done by each such party.

     NOW, THEREFORE:

     In consideration of the premises and the purchases of the Securities by the holders thereof,
the Company, the Guarantor and the Trustee mutually covenant and agree for the equal and
proportionate benefit of the respective holders from time to time of the Securities as follows:

ARTICLE ONE

DEFINITIONS

     SECTION 1.1 Certain Terms Defined. The following terms (except as otherwise
expressly provided or unless the context otherwise clearly requires) for all purposes of this
Indenture and of any indenture supplemental hereto shall have the respective meanings specified in
this Section. All accounting terms used herein and not expressly defined shall have the meanings
assigned to such terms in accordance with generally accepted accounting principles, and the term
“generally accepted accounting principles” means such accounting principles as are generally
accepted at the time of any computation. The words “herein,” “hereof” and “hereunder” and other
words of similar import refer to this Indenture as a whole, as supplemented and amended from time
to time, and not to any particular Article, Section or other subdivision. The terms defined in
this Article have the meanings assigned to them in this Article and include the plural as well as
the singular.

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

 

 

     “Applicable Procedures” means, with respect to any transfer, redemption or exchange of or for
beneficial interests in any Global Security, the rules and procedures of the Depositary, Euroclear
and Clearstream that apply to such transfer, redemption or exchange.

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

     “Board of Directors” means either the Board of Directors of the Company or any committee of
such Board duly authorized to act hereunder.

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

     “Business Day” means, except as may otherwise be provided in the form of Securities of any
particular Series, any day, other than a Saturday or Sunday, or other day on which banking
institutions are authorized or required by law or regulation to close in New York, New York, and,
with respect to Securities denominated in a Foreign Currency, the capital city of the country of
such Foreign Currency, or, with respect to Securities denominated in the Euro, Brussels, Belgium.

     “Capital Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
equity of such Person, including Preferred Stock, but excluding any debt securities convertible
into such equity.

     “Capitalized Lease Obligation” means an obligation under a lease that is required to be
capitalized for financial reporting purposes in accordance with generally accepted accounting
principles, and the amount of Indebtedness represented by such obligation shall be the capitalized
amount of such obligation determined in accordance with such principles.

     “Clearstream” means Clearstream Banking, société anonyme, and any successor thereto.

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

     “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 and delivery of this
Indenture such Commission is not existing and performing the duties now assigned to it under the
Trust Indenture Act, then the body performing such duties on such date.

2

 

     “Company” means (except as otherwise provided in Article Six), the Person named as the
“Company” in the first paragraph of this instrument, and, subject to Article Nine, its successors
and assigns.

     “Consolidated Net Worth” in respect of any Person means the total of the amounts shown on the
balance sheet of such Person and its consolidated Subsidiaries, determined on a consolidated basis
in accordance with generally accepted accounting principles, as of the end of the most recent
fiscal quarter of such Person ending at least 45 days prior to the taking of any action for the
purpose of which the determination is being made, as (i) the par or stated value of all outstanding
Capital Stock of such Person plus (ii) paid-in capital or capital surplus relating to such Capital
Stock plus (iii) any retained earnings or earned surplus, less any accumulated deficit.

     “Conversion Date” has the meaning specified in Section 2.12(d).

     “Conversion Event” means the cessation of use of a Foreign Currency both by the government of
the country that issued such Currency and for the settlement of transactions by a central bank or
other public institutions of or within the international banking community.

     “Corporate Trust Office” means the office of the Trustee at which the corporate trust business
of the Trustee shall, at any particular time, be principally administered, which office is, at the
date as of which this Indenture is dated, located at c/o [                                        ].

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

     “Currency” means any currency or currencies, including, without limitation, the Euro, issued
by the government of one or more countries or by any reorganized confederation or association of
such governments.

     “Currency Determination Agent” means the New York Clearing House Bank, if any, from time to
time selected by the Company for purposes of Section 2.12.

     “Custodian” means, with respect to the Securities of a Series issuable or issued in whole or
in part in global form, the Person specified pursuant to Section 2.3(b) hereof as Custodian with
respect to the Securities of such Series, and any and all successors thereto appointed as custodian
hereunder and having become such pursuant to the applicable provisions of this Indenture.

     “Definitive Security” means a certificated Security Registered in the name of the Holder
thereof and issued in accordance with Section 2.6 or 2.10 hereof.

     “Depositary” means, with respect to the Securities of any Series issuable or issued in the
form of one or more Global Securities, the person designated as Depositary for such Global
Securities by the Company pursuant to Section 2.3 until a successor Depositary shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter “Depositary” shall
mean or include each person who is then a Depositary for such Global Securities, and if at any time
there is more than one person designated as Depositary for Global Securities of a

3

 

particular Series, “Depositary,” as used with respect to the Securities of such Series, means
the Depositary with respect to the particular Global Security or Securities; provided, that if no
Depositary is named with respect to a Series of Securities issued in the form of one or more Global
Securities, the Depositary shall be The Depository Trust Company.

     “Designated Subsidiary” means any present or future consolidated Subsidiary of the Guarantor,
the Consolidated Net Worth of which constitutes at least 5% of the Consolidated Net Worth of the
Guarantor.

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

     “Dollar Equivalent of the Foreign Currency” has the meaning specified in Section 2.12.

     “DTC” means The Depository Trust Company.

     “Euro” means the currency introduced at the start of the third stage of European economic and
monetary union pursuant to the treaty establishing the European Community.

     “Euroclear” means Euroclear Bank, S.A./N.V., as operator of the Euroclear System, and any
successor thereto.

     “Event of Default” means any event or condition specified as such in Section 5.1.

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

     “Exchange Rate Officer’s Certificate” means a certificate setting forth (i) the applicable
Market Exchange Rate or the applicable quotation and (ii) the Dollar or Foreign Currency amounts
payable on the basis of such Market Exchange Rate or quotation in respect of the principal of and
interest on the applicable Series of Securities, signed by the treasurer or any assistant treasurer
of the Company, and delivered to the Trustee.

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

     “Global Security Legend” means the legend set forth in Section 2.8(f), which is required to be
placed on all Global Securities issued under this Indenture.

     “Global Security” means any global Security issued in accordance with Article Two hereof.

     “Government Obligations” means securities which are (i) direct obligations of the government
which issued the currency in which the Securities of a particular Series are denominated or (ii)
obligations of a Person controlled or supervised by, or acting as an agency or instrumentality of,
the government which issued the currency in which the Securities of such Series are denominated,
the payment of which obligations is unconditionally guaranteed by such government, and which, in
either case, are full faith and credit obligations of such government,

4

 

are denominated in the currency in which the Securities of such Series are denominated and
which are not callable or redeemable at the option of the issuer thereof.

     “Guarantee” means the unconditional guarantee by the Guarantor of the payment of the principal
of, any premium or interest on, and any Additional Amounts with respect to the Securities and of
all obligations of the Company under this Indenture, as more fully set forth in Article Thirteen.

     “Guarantor” means (except as otherwise provided in Article Six) the Person named as the
“Guarantor” in the first paragraph of this instrument, and subject to Article Nine, its successors
and assigns.

     “Guarantor Request” and “Guarantor Order” mean, respectively, a written request or order, as
the case may be, signed in the name of the Guarantor by the Chairman of the Guarantor’s Board of
Directors, a Deputy Chairman, the President, the Chief Financial Officer, the Chief Investment
Officer, the Chief Accounting Officer, the General Counsel or the Secretary, of the Guarantor, and
delivered to the Trustee.

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

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

     “Guarantor’s Officer’s Certificate” means a certificate signed by the Chairman of the
Guarantor’s Board of Directors, a Deputy Chairman, the President, the Chief Financial Officer, the
Chief Investment Officer, the Chief Accounting Officer, any Vice President, the treasurer, the
General Counsel or the Secretary of the Guarantor, that complies with the requirements of Section
11.5, if and to the extent required hereby, and is delivered to the Trustee.

     “Holder,” “Holder of Securities,” “Securityholder” or other similar terms mean the Registered
Holder of a Security.

     “Indebtedness” means, with respect to any Person, (i) the principal of and any premium and
interest on (a) indebtedness of such Person for money borrowed and (b) indebtedness evidenced by
notes, debentures, bonds or other similar instruments for the payment of which such Person is
responsible or liable; (ii) all Capitalized Lease Obligations of such Person; (iii) all obligations
of such Person issued or assumed as the deferred purchase price of property, all conditional sale
obligations and all obligations under any title retention agreement (but excluding trade accounts
payable arising in the ordinary course of business); (iv) all obligations of such Person for the
reimbursement of any obligor on any letter of credit, banker’s acceptance or similar credit
transaction (other than obligations with respect to letters of credit securing obligations (other
than obligations described in (i) through (iii) above) entered into in the ordinary course of
business of such Person to the extent such letters of credit are not drawn upon or, if and to the
extent drawn upon, such drawing is reimbursed no later than the third Business

5

 

Day following receipt by such Person of a demand for reimbursement following payment on the
letter of credit); (v) all obligations of the type referred to in clauses (i) through (iv) of other
Persons and all dividends of other Persons for the payment of which, in either case, such Person is
responsible or liable as obligor, guarantor or otherwise; (vi) all obligations of the type
referred to in clauses (i) through (v) of other Persons secured by any Lien on any property or
asset of such Person (whether or not such obligation is assumed by such Person), the amount of such
obligation being deemed to be the lesser of the value of such property or assets or the amount of
the obligation so secured; and (vii) any amendments, modifications, refundings, renewals or
extensions of any indebtedness or obligation described as Indebtedness in clauses (i) through (vi)
above.

     “Indenture” means this instrument as originally executed and delivered or, if amended or
supplemented as herein provided, as so amended or supplemented or both, and shall include the forms
and terms of particular Series of Securities established as contemplated hereunder.

     “Indirect Participant” means a Person who holds a beneficial interest in a Global Security
through a Participant.

     “interest,” when used with respect to non-interest bearing Securities, means interest payable
at Maturity and, when used with respect to a Security which provides for the payment of Additional
Amounts pursuant to Section 3.8 or otherwise, includes such Additional Amounts.

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

     “Letter of Representations” has the meaning specified in Section 2.1(c)(vi).

     “Lien” has the meaning specified in Section 3.5.

     “Market Exchange Rate” has the meaning specified in Section 2.12(g).

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

     “non-United States Person” means a Person other than a United States Person.

     “Officer” means the chairman of the Board of Directors, the Chairman, Vice Chairman, the
president, the chief financial officer, any vice president, the treasurer, the secretary or any
assistant secretary or treasurer of the Company.

     “Officers’ Certificate” means a certificate signed by the chairman of the Board of Directors
or the president or any vice president and by the treasurer or the secretary or any assistant
secretary or treasurer of the Company and delivered to the Trustee. Each such certificate shall
include the statements provided for in Section 11.5, if and to the extent required hereby.

6

 

     “Opinion of Counsel” means an opinion in writing signed by legal counsel who may be an
employee of or counsel to the Company and who shall be satisfactory to the Trustee. Each such
opinion shall include the statements provided for in Section 11.5, if and to the extent required
hereby.

     “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 declaration of acceleration of the
Maturity thereof pursuant to Section 5.1.

     “Outstanding” when used with reference to Securities, shall, subject to the provisions of
Sections 7.4 and 11.11, mean, as of any particular time, all Global Securities and Definitive
Securities authenticated and delivered by the Trustee under this Indenture, except

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

     (b) Securities, or portions thereof, for the payment or redemption of which moneys in the
necessary amount and in the specified currency shall have been deposited in trust with the Trustee
or with any paying agent (other than the Company) or shall have been set aside, segregated and held
in trust by the Company for the holders of such Securities (if the Company shall act as its own
paying agent), provided that if such Securities, or portions thereof, are to be redeemed prior to
the Maturity thereof, notice of such redemption shall have been given as herein provided, or
provision satisfactory to the Trustee shall have been made for giving such notice; and

     (c) Securities in substitution for which other Securities shall have been authenticated and
delivered, or which shall have been paid, pursuant to the terms of Section 2.9 (except with respect
to any such Security as to which proof satisfactory to the Trustee and the Company is presented
that such Security is held by a person in whose hands such Security is a legal, valid and binding
obligation of the Company).

     “Participant” means, with respect to the Depositary, Euroclear or Clearstream, a Person who
has an account with the Depositary, Euroclear or Clearstream, respectively, and, with respect to
DTC, shall include Euroclear and Clearstream.

     “Paying Agent” means any Person (which may include the Company) authorized by the Company to
pay the principal of or interest, if any, on any Security on behalf of the Company.

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

     “Place of Payment,” when used with respect to the Securities of any Series, means the place or
places where the principal of and interest, if any, on the Securities of that Series are payable as
specified pursuant to Section 3.2.

     “principal” whenever used with reference to the Securities or any Security or any portion
thereof, shall be deemed to include “and premium, if any.”

7

 

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

     “Registered Holder” when used with respect to a Security means the person in whose name such
Security is registered in the Security Register.

     “Registrar” has the meaning specified in Section 2.8(h)(i).

     “Responsible Officer” when used with respect to the Trustee shall mean any officer assigned to
the Global Finance Americas unit (or any successor division or unit) of the Trustee located at the
Corporate Trust Office of the Trustee, who shall have direct responsibility for the administration
of this Indenture, and for the purposes of Section 5.9, Section 5.11 and Section 6.1(b) shall also
include any other officer of the Trustee to whom any corporate trust matter is referred because of
such officer’s knowledge of and familiarity with the particular subject.

     “Restricted Subsidiary” means any Subsidiary that is incorporated under the laws of any state
of the United States or of the District of Columbia except a Subsidiary (a) that has total assets
which are less than 10% of the Company’s and its consolidated Subsidiaries’ total assets (including
that Subsidiary) on the most recent fiscal year-end balance sheets of the Subsidiary and the
Company and its consolidated Subsidiaries or (b) that, in the judgment of the Board of Directors,
as evidenced by a resolution of the Board of Directors, is not material to the Company’s and its
consolidated Subsidiaries’ financial condition, taken as a whole.

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

     “Security” or “Securities” has the meaning stated in the first recital of this Indenture, or,
as the case may be, Securities that have been authenticated and delivered under this Indenture.

     “Security Register” has the meaning specified in Section 2.8(h)(i).

     “Series” or “Series of Securities” means a series of Securities. Subject to Section 2.3(c),
the Securities of a Series shall be identical.

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

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

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended.

8

 

     “Trustee” means the Person identified as “Trustee” in the first paragraph hereof and, subject
to the provisions of Article Six, any successor trustee.

     “United States of America” means the fifty states constituting the United States of America as
of the date of this Indenture.

     “United States Person” means, unless otherwise specified with respect to any Securities
pursuant to Section 2.3, an individual who is a citizen or resident of the United States, a
Corporation, partnership or other entity created or organized in or under the laws of the United
States or an estate or trust the income of which is subject to United States federal income
taxation regardless of its source. For purposes of this definition, the term United States means
the United States of America (including the states and the District of Columbia), its territories,
its possessions and other areas subject to its jurisdiction.

     “Valuation Date” has the meaning specified in Section 2.12.

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

ARTICLE TWO

SECURITIES

     SECTION 2.1 Forms Generally. (a) The Securities of each Series shall be
substantially in such form (not inconsistent with this Indenture) as shall be established by or
pursuant to a resolution of the Board of Directors 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 (the provisions of which shall be
appropriate to reflect the terms of each Series of Securities, including the currency or
denomination, which may be Dollars or any Foreign Currency) and may have imprinted or otherwise
reproduced thereon such legend or legends, not inconsistent with the provisions of this Indenture,
as may be required to comply with any law or with any rules or regulations pursuant thereto, or
with any rules of any securities exchange or to conform to general usage, all as may be determined
by the officers executing such Securities as evidenced by their execution of the Securities.

     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.

     (b) Each Global Security shall represent such aggregate principal amount of the outstanding
Securities of such Series as shall be specified therein and each shall provide that it shall
represent the aggregate principal amount of outstanding Securities of such Series from time to time
endorsed thereon and that the aggregate principal amount of outstanding Securities of such Series
represented thereby may from time to time be reduced or increased, as appropriate, to reflect
exchanges and redemptions and transfers of interests therein. Any endorsement of a Global Security
to reflect the amount of any increase or decrease in the aggregate principal amount of outstanding
Securities represented thereby shall be made by the Trustee or the

9

 

Custodian, at the direction of the Trustee, in connection with any transfer of a beneficial
interest therein pursuant to Section 2.8 hereof.

     (c) Book-Entry Procedures.

     (i) This Section 2.1(c) shall apply only to Global Securities deposited with the
Trustee, as Custodian for the Depositary. Participants and Indirect Participants shall have
no rights under this Indenture or any Global Security with respect to any Global Security
held on their behalf by the Depositary or by the Trustee as Custodian for the Depositary,
and the Depositary (or its nominee) shall be treated by the Company, the Trustee and any
agent of the Company or the Trustee as the absolute owner of such Global Security for all
purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the
Company, the Trustee or any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by the Depositary or impair,
as between the Depositary and its Participants or Indirect Participants, the Applicable
Procedures or the operation of customary practices of the Depositary governing the exercise
of the rights of a holder of a beneficial interest in any Global Security.

     (ii) Except as provided in paragraph (e) below, all of the Securities shall be
registered in the Security Register in the name of the Depositary or its nominee; provided
that if the Depositary shall request that the Securities of such Series be registered in the
name of a different nominee, the Trustee shall exchange all or any portion of the Securities
of such Series for an equal aggregate principal amount of Securities of such Series
registered in the name of such nominee or nominees of the Depositary. No Person other than
the Depositary or its nominee shall be entitled to receive from the Company or the Trustee
either a Security or any other evidence of ownership of the Securities of such Series, or
any right to receive any payment in respect thereof, unless the Depositary or its nominee
shall transfer record ownership of all or any portion of the Securities of such Series on
the Register in connection with discontinuing the book-entry system as provided in paragraph
(e) below or otherwise in accordance with the Global Security Legend.

     (iii) So long as any Securities of such Series are registered in the name of the
Depositary or any nominee thereof, all payments of the principal or redemption price of or
interest on such Securities shall be made to the Depositary or its nominee on the dates
provided for such payments under this Indenture. Each such payment to the Depositary or its
nominee shall be valid and effective to fully discharge all liability of the Company and the
Trustee with respect to the principal or redemption price of or interest on the Securities
of such Series to the extent of the sum or sums so paid. In the event of the redemption of
less than all of the Securities of any Series outstanding, the Trustee shall not require
surrender by the Depositary or its nominee of the Securities of such Series so redeemed, but
the Depositary (or its nominee) may retain such Securities and make an appropriate notation
on the Security certificate as to the amount of such partial redemption; provided that the
Depositary shall deliver to the Trustee, upon request, a written confirmation of such
partial redemption and thereafter the records maintained by

10

 

the Trustee shall be conclusive as to the amount of the Securities of such Series of
such Maturity which have been redeemed.

     (iv) The Company and the Trustee may treat the Depositary (or its nominee) as the sole
and exclusive owner of the Securities of any Series registered in its name for the purposes
of payment of the principal or redemption price of or interest on the Securities of such
Series, selecting the Securities of such Series or portions thereof to be redeemed, giving
any notice permitted or required to be given to Holders under this Indenture, registering
the transfer of Securities of such Series, obtaining any consent or other action to be taken
by Holders and for all other purposes whatsoever; and neither the Company nor the Trustee
shall be affected by any notice to the contrary. Neither the Company nor the Trustee shall
have any responsibility or obligation to any Participant or Indirect Participant, any person
claiming a beneficial ownership interest in the Securities of such Series under or through
the Depositary or any Participant or Indirect Participant, or any other person which is not
shown on the Security Register as being a Holder, with respect to (1) the Securities of such
Series, (2) the accuracy of any records maintained by the Depositary or any Participant or
Indirect Participant, (3) the payment by the Depositary or any Participant or Indirect
Participant of any amount in respect of the principal or redemption price of or interest on
the Securities of such Series, (4) any notice which is permitted or required to be given to
Holders under this Indenture, (5) the selection by the Depositary or any Participant or
Indirect Participant of any Person to receive payment in the event of a partial redemption
of the Securities of a Series, and (6) any consent given or other action taken by the
Depositary as Holder.

     (v) So long as the Securities of any Series or any portion thereof are registered in
the name of the Depositary or any nominee thereof, all notices required or permitted to be
given to the Holders of such Securities under this Indenture shall be given to the
Depositary.

     (vi) At or prior to settlement for the Securities of any Series subject to this Section
2.1(c), the Company and the Trustee shall execute, or signify their approval of, a letter
of representations (the “Letter of Representations”) applicable to the Securities of such
Series. Any successor Trustee shall, in its written acceptance of its duties under this
Indenture, agree to take any actions necessary from time to time to comply with the
requirements of the Letter of Representations.

     (d) The provisions of the “Operating Procedures of the Euroclear System” and “Terms and
Conditions Governing Use of Euroclear” and the “General Terms and Conditions of Clearstream” and
“Customer Handbook” of Clearstream, or any successor publications, shall be applicable to transfers
of beneficial interests in Global Securities that are held by Participants through Euroclear or
Clearstream.

     (e) The Company shall exchange Global Securities of any Series for Definitive Securities of
such Series if: (i) at any time the Depositary notifies the Company that it is unwilling or unable
to continue to act as Depositary for the Global Securities of such Series or if at any time the
Depositary shall no longer be eligible to act as such because it ceases to be a clearing agency
registered under the Exchange Act, and, in either case, the Company shall not

11

 

have appointed a successor Depositary within 90 days after the Company receives such notice or
becomes aware of such ineligibility, (ii) the Company, at its option, determines that the Global
Securities shall be exchanged for Definitive Securities and delivers a written notice to such
effect to the Trustee or (iii) upon written request of the Depositary if an Event of Default shall
have occurred and be continuing.

     Upon the occurrence of any of the events set forth in clauses (i), (ii) or (iii) of subsection
(e) above, the Company shall execute, and, upon receipt of an order in accordance with Section 2.4
hereof, the Trustee shall authenticate and deliver, Definitive Securities of such Series, in
authorized denominations, in an aggregate principal amount equal to the principal amount of the
Global Securities of such Series in exchange for such Global Securities.

     Upon the exchange of a Global Security of a Series for Definitive Securities of such Series,
such Global Securities shall be cancelled by the Trustee. Definitive Securities of a Series issued
in exchange for a Global Security of such Series pursuant to this Section 2.1 shall be registered
in such names and in such authorized denominations as the Depositary, pursuant to instructions from
its Participants or its Applicable Procedures, shall instruct the Trustee in writing. The Trustee
or such agent shall deliver such Definitive Securities to or as directed in writing by the Persons
in whose names such Definitive Securities are so registered or to the Depositary.

     SECTION 2.2 Form of Trustee’s Certificate of Authentication. The Trustee’s
certificate of authentication on all Securities shall be in substantially the following form:

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

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	,	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	as Trustee	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Authorized Signatory	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	[or	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	,	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	as Authentication Agent	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Authorized Signatory]	 	 	 	 

12

 

     SECTION 2.3 Amount Unlimited; Issuable in Series. (a) The aggregate principal amount
of Securities which may be authenticated and delivered under this Senior Indenture is unlimited.

     (b) The Securities may be issued in one or more Series and each such series shall rank equally
and pari passu with all other unsubordinated debt of the Company. There shall be established in or
pursuant to a resolution of the Board of Directors and set forth in an Officers’ Certificate, or
established in one or more indentures supplemental hereto, prior to the issuance of Securities of
any Series:

     (1) the title of the Securities of the Series (which title shall distinguish the
Securities of the Series from all other Securities issued by the Company);

     (2) any limit upon the aggregate principal amount of the Securities of the Series that
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 Sections 2.8, 2.9, 2.11 or 12.3);

     (3) if other than 100% of their principal amount, the percentage of their principal
amount at which the Securities of the Series will be offered;

     (4) the date or dates on which the principal of the Securities of the Series is
payable;

     (5) the rate or rates, which may be fixed or variable, at which the Securities of the
Series shall bear interest, if any, the date or dates from which such interest shall accrue,
the Interest Payment Dates on which such interest shall be payable and the record dates for
the determination of Holders to whom interest and principal is payable;

     (6) the place or places where the principal and interest on Securities of the Series
shall be payable (if other than as provided in Section 3.2);

     (7) the price or prices at which, the period or periods within 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, pursuant to any sinking fund or otherwise;

     (8) 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 pursuant to Section 5.1 or provable in bankruptcy pursuant to Section 5.2;

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

13

 

     (10) if other than denominations of $1,000 and any integral multiple thereof, the
denominations, which may be in Dollars or any Foreign Currency, in which Securities of the
Series shall be issuable;

     (11) the form of the Securities, including such legends as required by this Indenture,
by law or as the Company deems necessary or appropriate;

     (12) whether the Securities of such Series shall be issuable or issued in the form of
one or more Global Securities and, if so, whether on what terms the Global Securities shall
be exchangeable for definitive Securities of such Series and the name of any Custodian
and/or Depositary for such Global Security;

     (13) the Currency or Currencies in which payments of interest or principal and other
amounts are payable with respect to the Securities of the Series are to be denominated,
payable, redeemable or repurchasable, as the case may be;

     (14) whether, and under what circumstances, the Securities of any Series shall be
convertible into Securities of any other Series;

     (15) if other than the Trustee, any trustees, authenticating or paying agents,
registrars or any other agents with respect to the Securities of such Series;

     (16) if the Securities of such Series do not bear interest, the applicable dates for
purposes of Section 4.1 hereof;

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

     (18) whether, under what circumstances and the Currency in which, the Company will pay
Additional Amounts as contemplated by Section 3.8 on the Securities of the Series to any
Holder who is a non-United States Person (including any modification to the definition of
such term) in respect of any tax, assessment or governmental charge and, if so, whether the
Company will have the option to redeem such Securities in the event such Additional Amounts
(and the terms of any such option and payable); and

     (19) any other terms or conditions upon which the Securities of the Series are to be
issued (which terms shall not be inconsistent with the provisions of this Indenture).

     SECTION 2.4 Authentication and Delivery of 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, and the Trustee shall thereupon
authenticate and deliver such Securities to or upon the written order of the Company, signed by
both (a) the chairman of its Board of Directors, or any vice chairman of its Board of Directors, or
its president or any vice president and (b) by its treasurer or any assistant treasurer, secretary
or any assistant secretary without any further action by the Company. In authenticating

14

 

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 6.1) shall be
fully protected in relying upon:

     (1) a certified copy of any resolution or resolutions of the Board of Directors
authorizing the action taken pursuant to the resolution or resolutions delivered under
clause (2) below;

     (2) a copy of any resolution or resolutions of the Board of Directors relating to such
Series, in each case certified by the secretary or an assistant secretary of the Company;

     (3) an executed supplemental indenture, if any;

     (4) an Officers’ Certificate setting forth the form and terms of the Securities of such
Series as required pursuant to Sections 2.1 and 2.3, respectively, and prepared in
accordance with Section 11.5;

     (5) an Opinion of Counsel, prepared in accordance with Section 11.5, to the effect
that:

     (a) that the form or forms of such Securities have been established by or
pursuant to a resolution of the Board of Directors or by a supplemental indenture as
permitted by Section 2.1 in conformity with the provisions of this Indenture;

     (b) that the terms of such Securities have been established by or pursuant to a
resolution of the Board of Directors or by an Officers’ Certificate as permitted by
Section 2.3 in conformity with the provisions of this Indenture;

     (c) that such Securities have been duly authorized, and, 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 binding
obligations of the Company enforceable in accordance with their terms (subject, as
to enforceability, to applicable bankruptcy, reorganization, insolvency,
conservatorship, moratorium, receivership or other laws affecting creditors’ rights
generally from time to time in effect and to general principles of equity);

     (d) the registration statement, if any, relating to the Securities of such
Series and any amendments thereto has become effective under the Securities Act of
1933 and to the best knowledge of such counsel, no stop order suspending the
effectiveness of such registration statement, as amended, has been issued and no
proceedings for that purpose have been instituted or threatened;

     (e) the authentication and delivery of the Securities of such Series by the
Trustee in accordance with the directions of the Company so to do, and the

15

 

Company’s execution and delivery of the Securities of such Series, will not
violate the terms of this Indenture; and

     (f) this Indenture has been qualified under the Trust Indenture Act or that it
is not necessary to qualify the Indenture under the Trust Indenture Act.

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

     The Trustee shall have the right to decline to authenticate and deliver any Securities under
this Section if the Trustee, being advised by counsel, determines that such action may not lawfully
be taken by the Company or if the issue of such Securities pursuant to this Indenture will affect
the Trustee’s own rights, duties or immunities under this Indenture in a manner not acceptable to
the Trustee.

     Notwithstanding the foregoing, if any Security shall have been authenticated and delivered
hereunder but never issued and sold by the Company, and the Company shall deliver such Security to
the Trustee for cancellation as provided in Section 2.10, together with a written statement (which
need not comply with Section 11.5 and need not be accompanied by an Opinion of Counsel) stating
that such Security has never been issued and sold by the Company, 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 2.5 Execution of Securities. The Securities shall be signed on behalf of the
Company by one Officer of the Company. Such signatures may be the manual or facsimile signatures
of the present or any future such officers. The seal of the Company may be in the form of a
facsimile thereof and may be, but shall not be required to, impressed, affixed, imprinted or
otherwise reproduced on the Securities. Typographical and other minor errors or defects in any
such reproduction of the seal or any such signature shall not affect the validity or enforceability
of any Security that has been duly authenticated and delivered by the Trustee.

     In case any officer of the Company or the Guarantor who shall have signed any of the
Securities shall cease to be such officer before the Security so signed shall be authenticated (in
the case of the Securities) and delivered by the Trustee or disposed of by the Company or the
Guarantor, as the case may be, such Security nevertheless may be authenticated and delivered or
disposed of as though the person who signed such Security had not ceased to be such officer of the
Company or the Guarantor, as the case may be; and any Security may be signed on behalf of the
Company by such persons as, at the actual date of the execution of such Security, shall be the
proper officers of the Company, although at the date of the execution and delivery of this
Indenture any such person was not such an officer.

16

 

     SECTION 2.6 Certificate of Authentication. Only such Securities as shall bear
thereon a certificate of authentication substantially in the form hereinbefore recited, executed by
the Trustee by the manual signature of one of its authorized signatories, shall be entitled to the
benefits of this Indenture or be valid or obligatory for any purpose. Such certificate by the
Trustee upon any Security executed by the Company and the Guarantor shall be conclusive evidence
that the Security so authenticated has been duly authenticated and delivered hereunder and that the
Holder is entitled to the benefits of this Indenture.

     SECTION 2.7 Denomination and Date of Securities; Payments of Interest. The
Securities shall be issuable in denominations as shall be specified as contemplated by Section 2.3.
In the absence of any such specification with respect to the Securities of any Series, the
Securities of such Series shall be issuable in denominations of $1,000 and any multiple thereof,
which may be in Dollars or any Foreign Currency, and interest shall be computed, except as may be
otherwise provided in the resolution or supplemental indenture establishing the relevant Series, on
the basis of a 360-day year of twelve 30-day months. The Securities shall be numbered, lettered,
or otherwise distinguished in such manner or in accordance with such plan as the officers of the
Company and the Guarantor executing the same may determine with the approval of the Trustee as
evidenced by the execution and authentication thereof.

     Each Security shall be dated the date of its authentication, shall bear interest from such
date and shall be payable on the dates, in each case, which shall be specified as contemplated by
Section 2.3.

     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 the
payment of such interest.

     The term “record date” as used with respect to any Interest Payment Date (except for a date
for payment of defaulted interest) shall mean the date specified as such in the terms of the
Securities of any particular Series, or, if no such date is so specified, if such Interest Payment
Date is the first day of a calendar month, the close of business on the fifteenth day of the next
preceding calendar month or, if such Interest Payment Date is the fifteenth day of a calendar
month, the close of business on the first day of such calendar month, whether or not such record
date is a Business Day.

     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 (called “defaulted interest” for the purpose of
this Section) shall forthwith cease to be payable to the Registered Holder on the relevant record
date by virtue of his having been such Holder; and such defaulted interest may be paid by the
Company or the Guarantor, as the case may be, at its election in each case, as provided in clause
(1) or clause (2) below:

     (1) The Company or the Guarantor, as the case may be, may elect to make payment of any
defaulted interest to the persons in whose names any such Securities (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

17

 

following manner. The Company or the Guarantor, as the case may be, 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 or the
Guarantor, as the case may be, 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 in respect of
Securities of such Series which shall be not more than 15 nor 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 and the
Guarantor of such special record date and, in the name and at the expense of the Company or
the Guarantor, shall cause notice of the proposed payment of such defaulted interest and the
special record date thereof to be mailed, first-class postage prepaid, to each Registered
Holder 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 mailed as aforesaid, such defaulted interest in
respect of Securities of such Series shall be paid to the person in whose names such
Securities (or their respective predecessor Securities) are registered on such special
record date and such defaulted interest shall no longer be payable pursuant to the following
clause (2).

     (2) The Company or the Guarantor, as the case may be, 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 the Securities of that Series may be
listed, and upon such notice as may be required by such exchange, if, after notice given by
the Company or the Guarantor, as the case may be, to the Trustee of the proposed payment
pursuant to this clause, such payment shall be deemed practicable by the Trustee.

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

     SECTION 2.8 Registration, Transfer and Exchange.

     (a) Transfer And Exchange of Global Securities. A Global Security may not be
transferred as a whole except by the Depositary to a nominee of the Depositary, by a nominee of the
Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary or any
such nominee to a successor Depositary or a nominee of such successor Depositary. Upon the
occurrence of any of the events set forth in Section 2.1(e) above, Definitive Securities shall be
issued in denominations of $1,000 in excess of $2,000 and in such names as the Depositary shall
instruct the Trustee in writing. Global Securities also may be exchanged or replaced, in whole or
in part, as provided in Sections 2.9 and 2.11 hereof. Except as provided above, every Security
authenticated and delivered in exchange for, or in lieu of, a Global Security or any portion
thereof, pursuant to this Section 2.8 or Section 2.7 or 2.11 hereof, shall be authenticated

18

 

and delivered in the form of, and shall be, a Global Security. A Global Security may not be
exchanged for another Security other than as provided in this Section 2.8(a), and beneficial
interests in a Global Security may not be transferred and exchanged other than as provided in
Section 2.8(b) or (c) hereof.

     (b) Transfer and Exchange of Beneficial Interests in the Global Securities. The
transfer and exchange of beneficial interests in the Global Securities shall be effected through
the Depositary, in accordance with the provisions of this Indenture and the Applicable Procedures.

     (i) Transfer of Beneficial Interests in the Same Global Security. Beneficial
interests in any Global Security may be transferred to Persons who take delivery thereof in
the form of a beneficial interest in an Global Security. Except as may be required by any
Applicable Procedures, no written orders or instructions shall be required to be delivered
to the Registrar to effect the transfers described in this Section 2.8(b)(i).

     (ii) All Other Transfers and Exchanges of Beneficial Interests in Global
Securities. In connection with all transfers and exchanges of beneficial interests that
are not subject to Section 2.8(b)(i) above, the transferor of such beneficial interest must
deliver to the Registrar (A) a written order from a Participant or an Indirect Participant
given to the Depositary in accordance with the Applicable Procedures directing the
Depositary to credit or cause to be credited a beneficial interest in another Global
Security in an amount equal to the beneficial interest to be transferred or exchanged and
(B) instructions given in accordance with the Applicable Procedures containing information
regarding the Participant account to be credited with such increase. Upon satisfaction of
all of the requirements for transfer or exchange of beneficial interests in Global
Securities contained in this Indenture and the Securities or otherwise applicable under the
Securities Act, the Trustee shall adjust the principal amount of the relevant Global
Security(ies) pursuant to Section 2.8(h) hereof.

     (c) Transfer and Exchange of Beneficial Interests in Global Securities for Definitive
Securities. Subject to Section 2.8(a) hereof, if any holder of a beneficial interest in a
Global Security proposes to exchange such beneficial interest for a Definitive Security or to
transfer such beneficial interest to a Person who takes delivery thereof in the form of a
Definitive Security, then, upon satisfaction of the applicable conditions set forth in Section
2.8(b)(i) hereof, the Trustee shall reduce or cause to be reduced in a corresponding amount
pursuant to Section 2.8(h) hereof, the aggregate principal amount of the applicable Global
Security, and the Company shall execute, and, upon receipt of an order in accordance with Section
2.4 hereof, the Trustee shall authenticate and deliver a Definitive Security in the appropriate
principal amount to the Person designated by the holder of such beneficial interest in written
instructions delivered to the Registrar by the Depositary and the applicable Participant or
Indirect Participant on behalf of such holder. Any Definitive Security issued in exchange for a
beneficial interest pursuant to this Section 2.8(c) shall be registered in such name or names and
in such authorized denomination or denominations as the holder of such beneficial interest shall
designate in such instructions. The Trustee shall deliver such Definitive Securities to the Persons
in whose names such Securities are so registered.

19

 

     (d) Transfer and Exchange of Definitive Securities for Beneficial Interests in the Global
Securities.

     (i) Transfer or Exchange of Definitive Securities to Beneficial Interests in Global
Securities. A holder of a Definitive Security may exchange such Definitive Security for
a beneficial interest in a Global Security or transfer such Definitive Security to a Person
who takes delivery thereof in the form of a beneficial interest in a Global Security at any
time. Upon receipt of a request for such an exchange or transfer, the Trustee shall cancel
the applicable Definitive Security and increase or cause to be increased in a corresponding
amount pursuant to Section 2.8(h) hereof the aggregate principal amount of one of the Global
Securities.

     (ii) Issuance of Global Securities. If any such exchange or transfer of a
Definitive Security for a beneficial interest in a Global Security is effected pursuant to
clause (i) above at a time when a Global Security has not yet been issued, the Company shall
issue and, upon receipt of an order in accordance with Section 2.4 hereof, the Trustee shall
authenticate one or more Global Securities in an aggregate principal amount equal to the
principal amount of Definitive Securities so transferred.

     (e) Transfer and Exchange of Definitive Securities for Definitive Securities. A holder
of Definitive Securities may transfer such Definitive Securities to a Person who takes delivery
thereof in the form of a Definitive Security. Upon request by a holder of Definitive Securities
and such holder’s compliance with the provisions of this Section 2.8(e), the Registrar shall
register the transfer or exchange of Definitive Securities. Prior to such registration of transfer
or exchange, the requesting Holder shall present or surrender to the Registrar the Definitive
Securities duly endorsed or accompanied by a written instruction of transfer in form satisfactory
to the Company and the Registrar duly executed by such holder. In addition, the requesting holder
shall provide any additional certifications, documents and information, as applicable, required
pursuant to the following provisions of this Section 2.8(e). Upon receipt of a request to register
such a transfer, the Registrar shall register the Definitive Securities pursuant to the
instructions from the holder thereof.

     (f) Global Security Legend. The following legend shall appear on the face of all
Global Securities issued under this Indenture unless specifically stated otherwise in the
applicable provisions of this Indenture.

“THIS GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT
THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO
SECTION 2.8 OF THE INDENTURE, (II) THIS GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE
BUT NOT IN PART PURSUANT TO SECTION 2.8(a) OF THE INDENTURE, (III) THIS GLOBAL
SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11
OF THE INDENTURE AND (IV) THIS GLOBAL SECURITY

20

 

MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE
COMPANY.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE
FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS SECURITY
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW
YORK CORPORATION (“DTC”), 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 IN SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS MAY BE 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 INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

     (g) Cancellation and/or Adjustment of Global Securities. At such time as all
beneficial interests in a particular Global Security have been exchanged for Definitive Securities
or a particular Global Security has been redeemed, repurchased or cancelled in whole and not in
part, each such Global Security shall be returned to or retained and cancelled by the Trustee in
accordance with Section 2.10 hereof. At any time prior to such cancellation, if any beneficial
interest in a Global Security is exchanged for or transferred to a Person who will take delivery
thereof in the form of a beneficial interest in another Global Security or for Definitive
Securities, the aggregate principal amount of Securities represented by such Global Security shall
be reduced accordingly and an endorsement shall be made on such Global Security by the Trustee or
by the Depositary at the direction of the Trustee to reflect such reduction; and if the beneficial
interest is being exchanged for or transferred to a Person who will take delivery thereof in the
form of a beneficial interest in another Global Security, the aggregate principal amount of such
other Global Security shall be increased accordingly and an endorsement shall be made on such
Global Security by the Trustee or by the Depositary at the direction of the Trustee to reflect such
increase.

     (h) General Provisions Relating To Transfers And Exchanges.

     (i) With respect to the Securities of each Series, the Company shall cause to be kept a
register (each such register being herein sometimes referred to as the “Security Register”)
at an office or agency for such Series in which, subject to such reasonable regulations as
it may prescribe, the Company shall provide for the registration of the Securities of such
Series and of transfers of the Securities of such Series. Such office or

21

 

agency shall be the “Registrar” for that Series of Securities. Unless otherwise
specified in or pursuant to this Indenture or the Securities, the Trustee shall be the
initial Registrar for each Series of Securities. The Company shall have the right to remove
and replace from time to time the Registrar for any Series of Securities; provided that no
such removal or replacement shall be effective until a successor Registrar with respect to
such Series of Securities shall have been appointed by the Company and shall have accepted
such appointment by the Company. In the event that the Trustee shall not be or shall cease
to be Registrar with respect to a Series of Securities, it shall have the right to examine
the Security Register for such Series at all reasonable times. There shall be only one
Security Register for each Series of Securities.

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

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

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

     (v) No service charge shall be made to a holder of a beneficial interest in a Global
Security or to a Holder of a Definitive Security for any registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any transfer tax
or similar governmental charge payable in connection therewith (other than any such transfer
taxes or similar governmental charge payable upon exchange or transfer pursuant to Sections
2.11, 8.5 and 12.3 hereof).

     (vi) All Global Securities and Definitive Securities issued upon any registration of
transfer or exchange of Global Securities or Definitive Securities shall be the valid
obligations of the Company and the Guarantor, evidencing the same debt as the Global
Securities or Definitive Securities surrendered upon such registration of transfer or
exchange and shall be entitled to all of the benefits of this Indenture equally and
proportionately with all other Securities duly issued hereunder.

22

 

     (vii) Neither the Registrar nor the Company shall be required (A) to issue, to register
the transfer of or to exchange any Securities during a period beginning at the opening of
business 15 days before the day of any selection of Securities for redemption under Article
Twelve hereof and ending at the close of business on the date of selection, (B) to register
the transfer of or to exchange any Security so selected for redemption in whole or in part,
except the unredeemed portion of any Security being redeemed in part or (C) to register the
transfer of or to exchange a Security between a record date (including a regular record
date) and the next succeeding Interest Payment Date.

     (viii) Prior to due presentment for the registration of transfer of any Security, the
Trustee, the Registrar, the Company may deem and treat the Person in whose name any Security
is registered as the absolute owner of such Security for the purpose of receiving payment of
principal of, and interest on such Security and for all other purposes, in each case
regardless of any notice to the contrary.

     (ix) All certifications, certificates and Opinions of Counsel required to be submitted
to the Registrar pursuant to this Section 2.8 to effect a registration of transfer or
exchange must be in writing and may be submitted by facsimile.

     (x) The Trustee is hereby authorized and directed to enter into a Letter of
Representations with the Depositary in the form provided by the Company and to act in
accordance with such letter.

     (xi) Neither the Trustee nor the Registrar shall have any obligation or duty to
monitor, determine or inquire as to compliance with any restriction on transfer imposed
under this Indenture or under applicable law with respect to any transfer of any interest in
any Security (including transfers between or among beneficial owners of interests in any
Global Security) other than to require delivery of such certificates and other documentation
or evidence as are expressly required by, and to do so if and when expressly required by the
terms of, this Indenture, and to examine the same to determine substantial compliance as to
form with the express requirements hereof.

     In connection with the transfer or exchange of any beneficial interest in a Global Security or
any interest in a Definitive Security, in the event the Company reasonably believes that such
transfer or exchange may violate any applicable securities laws, the Trustee may require an Opinion
of Counsel in form reasonably acceptable to the Trustee and the Company to the effect that such
exchange or transfer complies with the Securities Act.

     SECTION 2.9 Mutilated, Defaced, Destroyed, Lost and Stolen Securities. In case any
temporary or definitive Security shall become mutilated, defaced or be destroyed, lost or stolen,
the Company in its discretion may execute, and upon the written request of any officer of the
Company, the Trustee shall authenticate and deliver, a new Security of the same Series, bearing a
number not contemporaneously outstanding, in exchange and substitution for the mutilated or defaced
Security, or in lieu of and substitution for the Security so destroyed, lost or stolen. In every
case the applicant for a substitute Security shall furnish to the Company, the Guarantor and the
Trustee and to any agent of the Company, the Guarantor or the Trustee such security or indemnity as
may be required by them to indemnify and defend and to save each of them

23

 

harmless and, in every case of destruction, loss or theft, evidence to their satisfaction of
the destruction, loss or theft of such Security and of the ownership thereof.

     Upon the issuance of any substitute Security, 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. In
case any Security which has matured or is about to mature or has been called for redemption in full
shall become mutilated or defaced or be destroyed, lost or stolen, the Company may, instead of
issuing a substitute Security, pay or authorize the payment of the same (without surrender thereof
except in the case of a mutilated or defaced Security) if the applicant for such payment shall
furnish to the Company, the Guarantor and the Trustee and any agent of the Company, the Guarantor
or the Trustee such security or indemnity as any of them may require to save each of them harmless,
and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company,
the Guarantor and the Trustee and any agent of the Company, the Guarantor or the Trustee evidence
to their satisfaction of the destruction, loss or theft of such Security and of the ownership
thereof.

     Every substitute Security of any Series issued pursuant to the provisions of this Section by
virtue of the fact that any such Security is destroyed, lost or stolen shall constitute an
additional contractual obligation of the Company and the Guarantor, whether or not the destroyed,
lost or stolen Security shall be at any time enforceable by anyone and shall be entitled to all the
benefits of (but shall be subject to all the limitations of rights set forth in) this Indenture
equally and proportionately with any and all other Securities of such Series duly authenticated and
delivered hereunder. All Securities shall be held and owned upon the express condition that, to
the extent permitted by the law, the foregoing provisions are exclusive with respect to the
replacement or payment of mutilated, defaced, destroyed, lost or stolen Securities and shall
preclude any and all other rights or remedies notwithstanding any law or statute existing or
hereafter enacted to the contrary with respect to the replacement or payment of negotiable
instruments or other securities without their surrender.

     SECTION 2.10 Cancellation of Securities. All Securities surrendered for payment,
redemption, registration of transfer or exchange, or for credit against any payment in respect of a
sinking or analogous fund, shall, if surrendered to the Company, the Guarantor or any agent of the
Company, the Guarantor or the Trustee, be delivered to the Trustee for cancellation or, if
surrendered to the Trustee, shall be cancelled by it; and no Securities shall be issued in lieu
thereof, except as expressly permitted by any of the provisions of this Indenture. The Trustee
shall dispose cancelled Securities in accordance with its customary procedures. If the Company
shall acquire any of the Securities, such acquisition shall not operate as a redemption or
satisfaction of the indebtedness represented by such Securities unless and until the same are
delivered to the Trustee for cancellation.

     SECTION 2.11 Temporary Securities. Pending the preparation of definitive Securities
for any Series, the Company may execute and the Trustee shall authenticate and deliver temporary
Securities for such Series (printed, lithographed, typewritten or otherwise reproduced, in each
case in form satisfactory to the Trustee). Temporary Securities of any Series may be issued in any
authorized denomination, and substantially in the form of the definitive Securities of such Series
but with such omissions, insertions and variations as may be appropriate for

24

 

temporary Securities, all as may be determined by the Company with the concurrence of the
Trustee. Temporary Securities may contain such reference to any provisions of this Indenture as
may be appropriate. Every temporary Security shall be executed by the Company and be authenticated
by the Trustee upon the same conditions and in substantially the same manner, and with like effect,
as the definitive Securities. Without unreasonable delay the Company shall execute and shall
furnish definitive Securities of such Series and thereupon temporary Securities of such Series may
be surrendered in exchange therefor without charge at each office or agency to be maintained by the
Company for that purpose pursuant to Section 3.2, and the Trustee shall authenticate and deliver in
exchange for such temporary Securities of such Series a like aggregate principal amount of
definitive Securities of the same Series of authorized denominations. Until so exchanged, the
temporary Securities of any Series shall be entitled to the same benefits under this Indenture as
definitive Securities of such Series.

     SECTION 2.12 Currency and Manner of Payments in Respect of Securities.

     (a) With respect to Securities of any Series with respect to which the Holders of such
Securities have not made the election provided for in paragraph (b) below, the following payment
provisions shall apply:

     (1) Except as provided in subparagraph (a)(2), in paragraph (b) or in paragraph (e)
below or in the Securities of any particular Series, payment of the principal of any
Security will be made at the Place of Payment by delivery of a check in the Currency in
which the Security is denominated on the payment date against surrender of such Security,
and any interest on any Security will be paid at the Place of Payment by mailing a check in
the Currency in which the Securities were issued to the Person entitled thereto at the
address of such Person appearing on the Register.

     (2) Payment of the principal of and interest on such Security may also, subject to
applicable laws and regulations, be made at such other place or places as may be designated
by the Company by any appropriate method.

     (b) With respect to Securities of any Series, the following payment provisions shall apply,
except as otherwise provided in paragraphs (e) and (f) below:

     (1) The Board of Directors may provide with respect to any Series of such Securities
that Holders shall have the option to receive payments of principal of and interest on such
Security in any of the Currencies which may be designated for such election in such Security
by delivering to the Trustee a written election, to be in form and substance satisfactory to
the Trustee, not later than the close of business on the record date immediately preceding
the applicable payment date. Such election will remain in effect for such Holder until
changed by the Holder by written notice to the Trustee (but any such change must be made not
later than the close of business on the record date immediately preceding the next payment
date to be effective for the payment to be made on such payment date and no such change may
be made with respect to payments to be made on any Security with respect to which notice of
redemption has been given by the Company pursuant to Article Twelve). Any Holder of any
such Security who shall not have delivered any such election to the Trustee not later than
the close of business on the

25

 

applicable record date will be paid the amount due on the applicable payment date in
the relevant Currency as provided in paragraph (a) of this Section 2.12. Payment of
principal shall be made on the payment date against surrender of such Securities. Payment
of principal and interest shall be made at the Place of Payment by mailing a check in the
applicable currency to the Person entitled thereto at the address of such Person appearing
on the Security Register. The provisions of Sections 2.12(c), (d), (e), (f), (g) and (h)
are applicable only if the Board of Directors has provided with respect to a series that
Holders should have the option to elect to receive payments of principal and interest in
currencies designated in that election.

     (2) Payment of the principal of and interest on such Security may also, subject to
applicable laws and regulations, be made at such other place or places as may be designated
by the Company by any appropriate method.

     (c) Not later than the fourth Business Day after the record date for each payment date, the
Trustee will deliver to the Company a written notice specifying, in the Currency in which each
Series of the Securities are denominated, the respective aggregate amounts of principal of and
interest on the Securities to be made on such payment date, specifying the amounts so payable in
respect of the Securities as to which the Holders shall have elected to be paid in another Currency
as provided in paragraph (b) above. If the Board of Directors has provided for the election
referred to in paragraph (b) above and if at least one Holder has made such election, then not
later than the second Business Day preceding such record date the Company will deliver to the
Trustee an Exchange Rate Officer’s Certificate in respect of the Dollar or Foreign Currency
payments to be made on such payment date. The Dollar or Foreign Currency amount receivable by
Holders of Securities who have elected payment in another Currency as provided in paragraph (b)
above shall be determined by the Company on the basis of the applicable Market Exchange Rate in
effect on the second Business Day (the “Valuation Date”) prior to such payment date and set forth
in the applicable Exchange Rate Officer’s Certificate.

     (d) If a Conversion Event occurs with respect to a Foreign Currency in which any of the
Securities are denominated or payable, then with respect to each date for the payment of principal
of and interest on the applicable Foreign Currency denominated Securities occurring after the last
date on which the Foreign Currency was so used (the “Conversion Date”), the Dollar shall be the
currency of payment for use on each such payment date. The Dollar amount to be paid by the Company
to the Trustee and by the Trustee or any Paying Agent to the Holders of such Securities with
respect to such payment date shall be, in the case of a Foreign Currency, the Dollar Equivalent of
the Foreign Currency as determined by the Currency Determination Agent in the manner provided in
paragraphs (g) or (h) below.

     (e) If the Holder of a Security elects payment in a specified Currency as provided for by
paragraph (b) and a Conversion Event occurs with respect to such elected Currency, such Holder
shall receive payment in the Currency in which payment would have been made in the absence of such
election; and if a Conversion Event occurs with respect to the Currency in which payment would have
been made in the absence of such election, such Holder shall receive payment in Dollars.

26

 

     (f) The “Dollar Equivalent of the Foreign Currency” shall be determined by the Currency
Determination Agent as of each Valuation Date and shall be obtained by converting the specified
Foreign Currency into Dollars at the Market Exchange Rate on the Conversion Date.

     (g) For purposes of this Section 2.12 the following term shall have the following meaning:

     “Market Exchange Rate” shall mean for any currency the noon Dollar buying rate for that
currency for cable transfers quoted in New York City on the Valuation Date as certified for
customs purposes by the Federal Reserve Bank of New York. If such rates are not available
for any reason with respect to one or more Currencies for which an exchange rate is
required, the Currency Determination Agent shall use, in its sole discretion and without
liability on its part, such quotation of the Federal Reserve Bank of New York as of the most
recent available date, or quotations from one or more major banks in New York City or in the
country of issue of the currency in question, or such other quotations as the Currency
Determination Agent shall deem appropriate. Unless otherwise specified by the Currency
Determination Agent, if there is more than one market for dealing in any currency by reason
of foreign exchange regulations or otherwise, the market to be used in respect of such
currency shall be that upon which a nonresident issuer of securities designated in such
currency would purchase such currency in order to make payments in respect of such
securities.

     All decisions and determinations of the Currency Determination Agent regarding the Dollar
Equivalent of the Foreign Currency and the Market Exchange Rate as specified above shall be in its
sole discretion and shall, in the absence of manifest error, be conclusive for all purposes and
irrevocably binding upon the Company, the Guarantor and the Trustee for the relevant Series of
Securities and all Holders of such Securities.

     In the event that a Conversion Event has occurred with respect to a Foreign Currency, the
Company, after learning thereof, will immediately give notice thereof to the Trustee (and the
Trustee will promptly thereafter give notice in the manner provided in Section 11.4 to the affected
Holders) specifying the Conversion Date.

     The Trustee shall be fully justified and protected in relying on and acting upon the
information so received by it from the Company and the Currency Determination Agent and shall not
otherwise have any duty or obligation to determine such information independently.

     SECTION 2.13 CUSIP Numbers. The Company in issuing the Securities may use “CUSIP” or
“ISIN” numbers (if then generally in use), and, if so, the Trustee shall indicate the “CUSIP” or
“ISIN” numbers of the Securities in notices of redemption as a convenience to Holders;
provided that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities or as contained in any notice of
redemption and that reliance may be placed only on the other identification numbers printed on the
Securities, and any such redemption shall not be affected by any defect in or omission of such
numbers. The Company will promptly notify the Trustee of any change in the “CUSIP” or “ISIN”
numbers.

27

 

     SECTION 2.14 Securities in Global Form. If Securities of or within a Series are
issuable in whole or in part in global form, any such Security may provide that it shall represent
the aggregate amount of Outstanding Securities from time to time endorsed thereon and may also
provide that the aggregate amount of Outstanding Securities represented thereby may from time to
time be reduced or increased to reflect exchanges. Any endorsement of a Security in global form to
reflect the amount, or any increase or decrease in the amount, or changes in the rights of Holders,
of Outstanding Securities represented thereby, shall be made in such manner and by such Person or
Persons as shall be specified therein or in the Company order to be delivered to the Trustee
pursuant to Section 2.4 or, if applicable, 2.8 or 2.11. Subject to the provisions of Section 2.4
and, if applicable, Section 2.8 or 2.11, the Trustee shall deliver and redeliver any Security in
permanent global form in the manner and upon instructions given by the Person or Persons specified
therein or in the applicable Company order. Any instructions by the Company with respect to
endorsement or deliver or redelivery of a Security in global form shall be in writing but need not
comply with Section 11.5 and need not be accompanied by an Opinion of Counsel.

     The provisions of the second paragraph of Section 2.4 shall apply to any Security in global
form if such Security was never issued and sold by the Company and the Company delivers to the
Trustee the Security in global form together with written instructions (which need not comply with
Section 11.5 and need not be accompanied by an Opinion of Counsel) with regard to the reduction in
the principal amount of Securities represented thereby, together with the written statement
contemplated by the last paragraph of Section 2.4.

     Notwithstanding the provisions of Section 3.1, unless otherwise specified as contemplated by
Section 2.4, payment of principal of and interest on any Security in permanent global form shall be
made to the Person or Persons specified in such Security.

ARTICLE THREE

COVENANTS

     SECTION 3.1 Payment of Principal, any Premium, Interest and Additional Amounts. The
Company covenants and agrees for the benefit of each Series of Securities that it will duly and
punctually pay or cause to be paid (in the currency in which the Securities of such Series are
payable, except as otherwise provided pursuant to Section 2.3 for the Securities of such Series and
except as provided in Section 2.12(b), (d) and (e) hereof) the principal of, any premium and
interest on, if any, and any Additional Amounts, if any, with respect to, each of the Securities of
such Series in accordance with the terms of the Securities of such Series and this Indenture.

     SECTION 3.2 Offices for Notices and Payment, etc. So long as any of the Securities
remain outstanding, the Company and the Guarantor shall maintain the following for each Series: an
office or agency (a) where the Securities may be presented or surrendered for payment, (b) where
the Securities may be presented for registration of transfer and for exchange as in this Indenture
provided and (c) where notices and demands to or upon the Company or the Guarantor in respect of
the Securities or of this Indenture may be served. The Company or the Guarantor will give to the
Trustee written notice of the location of any such office or agency and of any change of location
thereof. In case the Company or the Guarantor shall fail to so designate or

28

 

maintain any such office or agency or shall fail to give such notice of the location or of any
change in the location thereof, presentations, surrenders and demands may be made and notices may
be served at the Corporate Trust Office of the Trustee. Unless otherwise specified pursuant to
Section 2.3, the Trustee is appointed Paying Agent and Registrar to receive all such presentations,
surrenders, notices and demands.

     The Company and the Guarantor 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 or the Guarantor of its
obligation to maintain an office or agency in each Place of Payment for Securities of any Series
for such purposes. The Company and the Guarantor shall give prompt written notice to the Trustee
of any such designation or rescission and of any change in the location of any such other office or
agency. Unless otherwise provided in or pursuant to this Indenture, the Company and the Guarantor
hereby designate as the Place of Payment for each Series of Securities the Borough of Manhattan,
The City of New York, and initially appoint the Corporate Trust Office of the Trustee as the office
or agency of the Company in the Borough of Manhattan, The City of New York for such purpose. The
Company and the Guarantor may subsequently appoint a different office or agency in the Borough of
Manhattan, The City of New York for the Securities of any Series.

     Unless otherwise specified with respect to any Securities pursuant to Section 2.3, if and so
long as the Securities of any Series (i) are denominated in a Foreign Currency or (ii) may be
payable in a Foreign Currency, or so long as it is required under any other provision of this
Indenture, then the Company will maintain with respect to each such Series of Securities, or as so
required, at least one exchange rate agent.

     SECTION 3.3 Money for Securities Payments to Be Held in Trust. If the Company shall
at any time act as its own Paying Agent, or if the Guarantor shall act as Paying Agent, with
respect to any Series of Securities, it shall, on or before each due date of the principal of, any
premium, interest on, if any, or Additional Amounts, if any, with respect to, any of the Securities
of such Series, segregate and hold in trust for the benefit of the Persons entitled thereto a sum
in the currency or currencies, currency unit or units or composite currency or currencies in which
the Securities of such Series are payable (except as otherwise specified pursuant to Section 2.3
for the Securities of such Series) sufficient to pay the principal or any premium, interest or
Additional Amounts so becoming due until such sums shall be paid to such Persons or otherwise
disposed of as herein provided, and shall promptly notify the Trustee of its action or failure so
to act.

     Whenever the Company shall have one or more Paying Agents for any Series of Securities, it
shall, on or prior to each due date of the principal of, any premium or interest on, if any, or
Additional Amounts, if any, with respect to, any Securities of such Series, deposit with any Paying
Agent a sum (in the currency or currencies, currency unit or units or composite currency or
currencies described in the preceding paragraph) sufficient to pay the principal or any premium,
interest or Additional Amounts so becoming due, such sum to be held in trust for the benefit of the
Persons entitled thereto, and (unless such Paying Agent is the Trustee) the Company will promptly
notify the Trustee of its action or failure so to act.

29

 

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

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

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

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

     The Company or the Guarantor 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 or Guarantor
Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company, the
Guarantor or such Paying Agent, such sums to be held by the Trustee upon the same terms as those
upon which such sums were held by the Company, the Guarantor or such Paying Agent; and, upon such
payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further
liability with respect to such sums.

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

30

 

     SECTION 3.4 Additional Amounts. If any taxes, assessments or other governmental
charges are imposed by the jurisdiction, other than the United States, where the Guarantor or a
successor (a “Payor”) is organized or otherwise considered to be a resident for tax purposes, any
jurisdiction, other than the United States, from or through which the Payor makes a payment on the
Securities of any Series, or, in each case, any political organization or governmental authority
thereof or therein having the power to tax (the “Relevant Tax Jurisdiction”) in respect of any
payments under the Securities of such Series, the Payor shall pay to each Holder of any such
Security, to the extent it may lawfully do so, such additional amounts (“Additional Amounts”) as
may be necessary in order that the net amounts paid to such Holder will be not less than the amount
specified in such Security to which such holder is entitled; provided, however, the Payor shall not
be required to make any payment of Additional Amounts for or on account of:

     (a) any tax, assessment or other governmental charge which would not have been imposed but for
(i) the existence of any present or former connection between such Holder (or between a fiduciary,
settlor, beneficiary, member or shareholder of, or possessor of a power over, such Holder, if such
Holder is an estate, trust, partnership, limited liability company or corporation) and the Relevant
Tax Jurisdiction including, without limitation, such Holder (or such fiduciary, settlor,
beneficiary, member, shareholder or possessor) being or having been a citizen or resident thereof
or being or having been present or engaged in a trade or business therein or having or having had a
permanent establishment therein or (ii) the presentation of a Security (where presentation is
required) for payment on a date more than 30 days after (x) the date on which such payment became
due and payable or (y) the date on which payment thereof is duly provided for, whichever occurs
later;

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

     (c) any tax, assessment or other governmental charge which is payable otherwise than by
withholding from payment of (or in respect of) principal of, premium, if any, or any interest on,
the Securities of such Series;

     (d) any tax, assessment or other governmental charge that is imposed or withheld by reason of
the failure by the Holder or the beneficial owner of the Securities of such Series to comply with a
request of the Payor addressed to the Holder to provide information, documents or other evidence
concerning the nationality, residence or identity of the Holder or such beneficial owner which is
required by a statute, treaty, regulation or administrative practice of the taxing jurisdiction as
a precondition to exemption from all or part of such tax, assessment or other governmental charge;
or

     (e) any combination of the above;

nor will Additional Amounts be paid with respect to any payment of the principal of, or any premium
or interest on, any Securities of such Series to any Holder who is a fiduciary or partnership or
limited liability company or other than the sole beneficial owner of such payment to the extent
such payment would be required by the laws of the Relevant Tax Jurisdiction to be included in the
income for tax purposes of a beneficiary or settlor with respect to such fiduciary

31

 

or a member of such partnership, limited liability company or beneficial owner who would not have
been entitled to such Additional Amounts had it been the Holder of such Securities.

     The Payor shall provide the Trustee with the official acknowledgment of the relevant tax
authority (or, if such acknowledgment is not available, a certified copy thereof) evidencing the
payment of the withholding taxes by the Payor. Copies of such documentation shall be made
available to the holders of the Securities of such Series or the paying agent, as applicable, upon
request therefor.

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

     Except as otherwise provided in or pursuant to this Indenture or the Securities of the
applicable Series, at least 10 days prior to the first Interest Payment Date with respect to such
Series of Securities (or if the Securities of such Series shall not bear interest prior to
Maturity, the first day on which a payment of principal is made), and at least 10 days prior to
each date of payment of principal or interest if there has been any change with respect to the
matters set forth in the below-mentioned Officers’ Certificate, the Company shall furnish to the
Trustee and the principal Paying Agent or Paying Agents, if other than the Trustee, an Officers’
Certificate instructing the Trustee and such Paying Agent or Paying Agents whether such payment of
principal of and premium, if any, or interest on, if any, and Additional Amounts, if any, with
respect to the Securities of such Series shall be made to Holders of Securities of such Series who
are United States Aliens without withholding for or on account of any tax, assessment or other
governmental charge described in the Securities of such Series. If any such withholding shall be
required, then such Officers’ Certificate shall specify by country the amount, if any, required to
be withheld on such payments to such Holders of Securities, and the Company agrees to pay to the
Trustee or such Paying Agent the Additional Amounts required by the terms of such Securities. The
Company covenants to indemnify the Trustee and any Paying Agent for, and to hold them harmless
against, any loss, liability or expense reasonably incurred without negligence or bad faith on
their part arising out of or in connection with actions taken or omitted by any of them in reliance
on any Officers’ Certificate furnished pursuant to this Section 3.4.

     SECTION 3.5 Limitation of Liens on Stock of Restricted Subsidiaries. So long as any
Securities are Outstanding, neither the Company nor the Guarantor will, nor will it permit any of
their respective Subsidiaries to, create, assume, incur, guarantee or otherwise permit to exist any
Indebtedness secured by any mortgage, pledge, lien, security interest or other encumbrance (a
“Lien”) upon any shares of Capital Stock of any Restricted Subsidiary (whether such shares of stock
are now owned or hereafter acquired) without effectively providing concurrently that the Securities
(and, if the Company and the Guarantor so elect, any other Indebtedness of the Company that is not
subordinate to the Securities and with respect to which the governing

32

 

instruments require, or pursuant to which the Company is otherwise obligated, to provide such
security) shall be secured equally and ratably with such Indebtedness for at least the time period
such other Indebtedness is so secured.

     SECTION 3.6 Limitation on Disposition of Stock of Designated Subsidiaries. So long
as any Securities are outstanding and except in a transaction otherwise governed by this Indenture,
neither the Company nor the Guarantor will issue, sell, assign, transfer or otherwise dispose of
any shares of, securities convertible into, or warrants, rights or options to subscribe for or
purchase shares of, Capital Stock (other than Preferred Stock having no voting rights) of any
Designated Subsidiary, and will not permit any Designated Subsidiary (other than to the Company or
the Guarantor) to issue any shares (other than the director’s qualifying shares and Preferred Stock
having no voting rights) of, or securities convertible into, or warrants, rights or options to
subscribe for or purchase shares of, Capital Stock (other than Preferred Stock having no voting
rights) of any Designated Subsidiary, if, after giving effect to any such transaction and the
issuance of the maximum number of shares issuable upon the conversion or exercise of all such
convertible securities, warrants, rights or options, the Company or the Guarantor, as the case may
be, would own, directly or indirectly, less than 80% of the shares of Capital Stock of such
Designated Subsidiary (other than Preferred Stock having no voting rights); provided, however, that
(i) the foregoing shall not prevent any issuance, sale, assignment, transfer or other disposition
by the Company or the Guarantor if the consolidation is at least a fair market value as determined
in good faith by the Guarantor’s Board of Directors pursuant to a Guarantor’s Board Resolution and
(ii) the foregoing shall not prohibit any such issuance or disposition of securities if required by
any law or any regulation or order of any governmental or insurance regulatory authority.
Notwithstanding the foregoing, (i) the Company or the Guarantor, as the case may be, may merge or
consolidate any Designated Subsidiary into or with another direct or indirect Subsidiary of the
Guarantor, the shares of capital stock of which the Guarantor owns directly or indirectly at least
80%, and (ii) the Company or the Guarantor, as the case may be, may, subject to the provisions of
Article Nine, sell, assign, transfer or otherwise dispose of the entire Capital Stock of any
Designated Subsidiary at one time for at least a fair market value consideration as determined in
good faith by the Guarantor’s Board of Directors pursuant to a Guarantor’s Board Resolution.

     SECTION 3.7 Corporate Existence. Subject to Article Nine, the Company and the
Guarantor shall do or cause to be done all things necessary to preserve and keep in full force and
effect their respective corporate existences and that of each of their respective Subsidiaries and
their respective rights (charter and statutory) and franchises; provided, however, that the
foregoing shall not obligate the Company or the Guarantor or any of their respective Subsidiaries
to preserve any such existence (other than the Company or the Guarantor), right or franchise if the
Company, the Guarantor or any such Subsidiary shall determine that the preservation thereof is no
longer desirable in the conduct of the business of the Company or the Guarantor and its
Subsidiaries taken as a whole and that the loss thereof is not disadvantageous in any material
respect to any Holder.

     SECTION 3.8 Waiver of Certain Covenants. The Company or the Guarantor, as the case
may be, may omit in any particular instance to comply with any term, provision or condition set
forth in Section 3.5, 3.6 or 3.7 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 at Maturity of

33

 

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

     SECTION 3.9 Company Statement as to Compliance; Notice of Certain Defaults.

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

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

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

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

     (3) The Trustee shall have no duty to monitor the Company’s compliance with the
covenants contained in this Article Three other than as specifically set forth in
this Section 3.9.

     SECTION 3.10 Guarantor Statement as to Compliance; Notice of Certain Defaults.

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

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

34

 

     supervision, and

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

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

     (3) The Trustee shall have no duty to monitor the Guarantor’s compliance with
the covenants contained in this Article Three.

     SECTION 3.11 Maintenance of Properties. The Company and the Guarantor will, and will
cause their respective Subsidiaries to, cause all properties used or useful in the conduct of their
respective businesses, or the business of any Subsidiary of the Company or of the Guarantor, to be
maintained and kept in good condition, repair and working order and supplied with all necessary
equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and
improvements thereof, all as in the judgment of the Company or the Guarantor, as applicable, may be
necessary so that the business carried on in connection therewith may be properly and
advantageously conducted at all times; provided, however, that nothing in this Section shall
prevent the Company or the Guarantor from discontinuing the operation or maintenance of any such
properties if such discontinuance is, in the judgment of the Company or the Guarantor, as
applicable, desirable in the conduct of the business of the Company or the Guarantor, or the
business of any Subsidiary of the Company or the Guarantor, and not disadvantageous in any material
respect to the Holders.

     SECTION 3.12 Payment of Taxes and Other Claims. The Company and the Guarantor shall
pay or discharge or cause to be paid or discharged, before becoming delinquent, (a) all taxes,
assessments and governmental charges (including withholding taxes and any penalties, interest and
additions to taxes) levied or imposed upon the Company or the Guarantor, or any of their respective
Subsidiaries, or upon the income, profits or property of the Company or the Guarantor, or any of
their respective Subsidiaries, and (b) all material lawful claims for labor, materials and supplies
which, if unpaid, might by law become a lien upon the property of the Company or the Guarantor;
provided, however, that neither the Company nor the Guarantor shall be required to pay or discharge
or cause to be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate proceedings and for which
disputed amounts adequate reserves have been made.

35

 

     SECTION 3.13 Further Acts and Instruments. Upon request of the Trustee, the Company
and the Guarantor will execute and deliver such further instruments and perform such further acts
as may be reasonably necessary or proper to carry out more effectively the purposes of this
Indenture.

     SECTION 3.14 Calculation of Original Issue Discount. The Company shall file with the
Trustee promptly at the end of each calendar year (a) a written notice specifying the amount of
original issue discount (including daily rates and accrual periods), if any, accrued on Outstanding
Securities as of the end of such year and (b) such other specific information relating to such
original issue discount as may then be relevant under the Code, as amended from time to time.

ARTICLE FOUR

SECURITYHOLDERS’ LISTS AND REPORTS BY THE

ISSUER, GUARANTOR AND THE TRUSTEE

     SECTION 4.1 Company and Guarantor to Furnish Trustee Information as to Names and
Addresses of Securityholders. The Company and the Guarantor each covenants and agrees that
they will furnish or cause to be furnished to the Trustee for the Securities of each Series a list
in such form as the Trustee may reasonably require of the names and addresses of the Holders of the
Securities of each Series:

     (a) semi-annually and not more than 15 days after each record date for the payment of interest
on such Securities, as hereinabove specified, as of such record date and on dates to be determined
pursuant to Section 2.3 for non-interest bearing securities in each year, and

     (b) at such other times as the Trustee may request in writing, within 30 days after receipt by
the Company or the Guarantor of any such request such list to be as of a date not more than 15 days
prior to the time such information is furnished,

provided, that if and so long as the Trustee shall be the Registrar for such Series, such
list shall not be required to be furnished.

     SECTION 4.2 Preservation and Disclosure of Securityholders’ Lists. (a) The Trustee
for the Securities of each Series shall preserve, in as current a form as is reasonably
practicable, all information as to the names and addresses of the Holders of each Series of
Securities contained in the most recent list furnished to it as provided in Section 4.1 or
maintained by the Trustee in its capacity as Registrar for such Series, if so acting. The Trustee
may destroy any list furnished to it as provided in Section 4.1 upon receipt of a new list so
furnished.

     (b) In case three or more Holders of Securities of any Series (hereinafter referred to as
“applicants”) apply in writing to the Trustee and furnish to the Trustee reasonable proof that each
such applicant has owned a Security for a period of at least six months preceding the date of such
application, and such application states that the applicants desire to communicate with other
Holders of Securities of a particular Series (in which case the applicants must all hold Securities
of such Series) or with Holders of all Securities with respect to their rights under this Indenture
or under such Securities and such application is accompanied by a copy of the form of proxy or

36

 

other communication which such applicants propose to transmit, then the Trustee shall, within
five business days after the receipt of such application, at its election, either

     (i) afford to such applicants access to the information preserved at the time by the
Trustee in accordance with the provisions of subsection (a) of this Section 4.2, or

     (ii) inform such applicants as to the approximate number of Holders of Securities of
such Series or all Securities, as the case may be, whose names and addresses appear in the
information preserved at the time by the Trustee, in accordance with the provisions of
subsection (a) of this Section.

     If the Trustee shall elect not to afford to such applicants access to such information, the
Trustee shall, upon the written request of such applicants, mail to each Securityholder of such
Series or all Securities, as the case may be, whose name and address appear in the information
preserved at the time by the Trustee in accordance with the provisions of subsection (a) of this
Section, a copy of the form of proxy or other communication which is specified in such request,
with reasonable promptness after a tender to the Trustee of the material to be mailed and of
payment, or provision for the payment, of the reasonable expenses of mailing, unless within five
days after such tender, the Trustee shall mail to such applicants and file with the Commission
together with a copy of the material to be mailed, a written statement to the effect that, in the
opinion of the Trustee, such mailing would be contrary to the best interests of the Holders of
Securities of such Series or all Securities, as the case may be, or could be in violation of
applicable law. Such written statement shall specify the basis of such opinion. If the
Commission, after opportunity for a hearing upon the objections specified in the written statement
so filed, shall enter an order refusing to sustain any of such objections or if, after the entry of
such order sustaining one or more of such objections, the Commission shall find, after notice and
opportunity for hearing, that all the objections so sustained have been met, and shall enter an
order so declaring, the Trustee shall mail copies of such material to all such Securityholders with
reasonable promptness after the entry of such order and the renewal of such tender; otherwise the
Trustee shall be relieved of any obligation or duty to such applicants respecting their
application. If the Commission shall refuse to accept the filing by the Trustee because the
Company is not subject to the ongoing reporting requirements of Section 13 of 15(d) of the Exchange
Act or otherwise, or otherwise communicates to the Company, the applicants or the Trustee that it
does not have jurisdiction over the matter, the Trustee shall mail copies of such material to all
such Securityholders with reasonable promptness after such refusal or communication.

     (c) Each and every Holder of Securities, by receiving and holding the same, agrees with the
Company, the Guarantor and the Trustee that none of the Company, the Guarantor, the Trustee or any
agent of the Company, the Guarantor or the Trustee shall be held accountable by reason of the
disclosure of any such information as to the names and addresses of the Holders of Securities in
accordance with the provisions of subsection (b) of this Section, regardless of the source from
which such information was derived, and that the Trustee shall not be held accountable by reason of
mailing any material pursuant to a request made under such subsection (b).

37

 

     SECTION 4.3 Reports by the Company and Guarantor. The Guarantor or the Company, if
the Company is no longer a subsidiary of the Guarantor, covenants:

     (a) to file with the Trustee for the Securities of each Series, within 15 days after the
Company or the Guarantor, as the case may be, 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 Commissioner may from time to time by rules and
regulations prescribe) which the Company or the Guarantor, as the case may be, may be required to
file with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act, or if the
Company or the Guarantor, as the case may be, is not required to file information, documents, or
reports pursuant to either of such Sections, then to file with the Trustee and the Commission, in
accordance with applicable rules and regulations, if any, 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, or 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;

     (b) to file with the Trustee and the Commission, in accordance with applicable rules and
regulations, if any, prescribed from time to time by the Commission, such additional information,
documents, and reports with respect to compliance by the Company or the Guarantor, as the case may
be, with the conditions and covenants provided for in this Indenture as may be required from time
to time by such rules and regulations; and

     (c) to transmit by mail to the Holders of Securities, as the names and addresses of such
holders appear upon the Security Register, in the manner required by Section 11.4, 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 or the Guarantor, as the case may be, pursuant to
subsection (a) and (b) of this Section as may be required to be transmitted to such Holders by
rules and regulations prescribed from time to time by the Commission.

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

     SECTION 4.4 Reports by the Trustee. (a) 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, if applicable, at the times and in the manner provided pursuant thereto.
If required by Section 313(a) of the Trust Indenture Act, the Trustee shall, within sixty days
after each May 15 following the date of this Indenture deliver to Holders a brief report, dated as
of such May 15, which complies with the provisions of such Section 313(a).

     (b) A copy of each such report shall, at the time of such transmission to Holders, be filed by
the Trustee with each stock exchange, if any, upon which the Securities are listed, with the
Commission, the Company and the Guarantor. The Company or the Guarantor, as the case

38

 

may be, will promptly notify the Trustee when the Securities are listed on any stock exchange
and of any delisting thereof.

ARTICLE FIVE

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS

ON EVENT OF DEFAULT

     SECTION 5.1 Event of Default Defined; Acceleration of Maturity; Waiver of Default.
In case one or more of the following Events of Default (unless it is either inapplicable to a
particular Series or it is specifically deleted from or modified in the instrument establishing
such Series and the form of Security for such Series) shall have occurred and be continuing with
respect to any Series of Securities:

     (a) default in the payment of any installment of interest upon any Security of such Series, or
any Additional Amounts payable with respect thereto, as and when such interest becomes or such
Additional Amounts become due and payable, and continuance of such default for a period of 30 days;
or

     (b) default in the payment of the principal of or any premium on any Security of such Series,
or any Additional Amounts payable with respect thereto, when such principal or premium becomes or
such Additional Amounts become due and payable at their Maturity, upon redemption (for any sinking
fund payment or otherwise), by declaration or otherwise; or

     (c) failure on the part of the Company or the Guarantor, as the case may be, duly to observe
or perform any other of the covenants or agreements on the part of the Company or the Guarantor in
this Indenture, as the case may be, in the Securities of such Series, or in this Indenture
contained and relating to such Series, for a period of 60 days after the date on which written
notice specifying such failure and requiring the Company or the Guarantor, as the case may be, to
remedy the same and stating that such notice is a “Notice of Default” hereunder shall have been
given by registered or certified mail to the Company or the Guarantor, as the case may be, by the
Trustee for the Securities of such Series, or to the Company, the Guarantor and the Trustee by the
Holders of at least 25% in aggregate principal amount at Maturity of the Securities of such Series
at the time Outstanding; or

     (d) if any event of default as defined in any mortgage, indenture or instrument under which
there may be issued, or by which there may be secured or evidenced, any Indebtedness of the
Company, the Guarantor or any of its Designated Subsidiaries (including, in each case, an Event of
Default under any other Series of Securities), whether such Indebtedness now exists or shall
hereafter be created or incurred, shall happen and shall consist of default in the payment of more
than $10,000,000 in principal amount of such Indebtedness at the maturity thereof (after giving
effect to any applicable grace period) or shall result in such Indebtedness in principal amount in
excess of $10,000,000 becoming or being declared due and payable prior to the date on which it
would otherwise become due and payable, and such default shall not be cured or such acceleration
shall not be rescinded or annulled within a period of 30 days after there shall have been given, by
registered or certified mail, to the Company and the Guarantor by the Trustee or to the Company,
the Guarantor and the Trustee by the Holders of at least 25% in

39

 

aggregate principal amount at Maturity of the Outstanding Securities of such Series, a written
notice specifying such event of default and requiring the Company or the Guarantor to cause such
acceleration to be rescinded or annulled or to cause such Indebtedness to be discharged and stating
that such notice is a “Notice of Default” hereunder; or

     (e) the Company or the Guarantor shall fail within 60 days to pay, bond or otherwise discharge
any uninsured judgment or court order for the payment of money in excess of $10,000,000, which is
not stayed on appeal or is not otherwise being appropriately contested in good faith; or

     (f) except as permitted by this Indenture, the Guarantee shall be held in any judicial
proceeding to be unenforceable or invalid or shall cease for any reason to be in full force and
effect or the Guarantor or any Person acting on its behalf, shall deny or disaffirm the Guarantor’s
obligations under the Guarantee; or

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

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

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

     (iii) a final and non-appealable order appointing a custodian, receiver, liquidator,
assignee, trustee or other similar official of the Company, the Guarantor or any of its
Designated Subsidiaries of any substantial part of the property of the Company, the
Guarantor or any of its Designated Subsidiaries or ordering the winding up or liquidation of
the affairs of the Company, the Guarantor or any of its Designated Subsidiaries; or

     (h) the commencement by the Company, the Guarantor or any of its Designated Subsidiaries of a
voluntary proceeding under any applicable bankruptcy, insolvency, reorganization (other than a
reorganization under a foreign law that does not relate to insolvency) or other similar law or of a
voluntary proceeding seeking to be adjudicated insolvent or the consent by the Company, the
Guarantor or any of its Designated Subsidiaries to the entry of a decree or order for relief in an
involuntary proceeding under any applicable bankruptcy, insolvency, reorganization or other similar
law or to the commencement of any insolvency proceedings against it, or the filing by the Company,
the Guarantor or any of its Designated Subsidiaries of a petition or answer or consent seeking
reorganization, arrangement, adjustment or composition of the Company, the Guarantor or any of its
Designated Subsidiaries under any applicable law, or the consent by the Company, the Guarantor or
any of its Designated

40

 

Subsidiaries to the filing of such petition or to the appointment of or taking possession by a
custodian, receiver, liquidator, assignee, trustee or similar official of the Company, the
Guarantor or any of its Designated Subsidiaries or any substantial part of the property of the
Company, the Guarantor or any of its Designated Subsidiaries or the making by the Company, the
Guarantor or any of its Designated Subsidiaries of an assignment for the benefit of creditors, or
the taking of corporate action by the Company, the Guarantor or any of its Designated Subsidiaries
in furtherance of any such action; or

     (i) any other Event of Default provided in the Supplemental Indenture or resolution of the
Board of Directors under which such Series of Securities is issued or in the form of Security for
such Series;

then and in each and every such case (other than an Event of Default under clause (g) and (h)
above), so long as such Event of Default with respect to such Series shall not have been remedied
or waived, unless the principal of all Securities of such Series shall have already become due and
payable, either the Trustee for such Series or the Holders of not less than 25% in aggregate
principal amount at Maturity of the Securities of such Series then Outstanding hereunder, by notice
in writing to the Company (and to the Trustee if given by such Holders), may declare the principal
(or, in the case of Original Issue Discount Securities, such principal amount as may be determined
in accordance with the terms thereof) of all the Securities of such Series to be due and payable
immediately, and upon any such declaration the same shall become and shall be immediately due and
payable, anything in this Indenture or in the Securities of such Series contained to the contrary
notwithstanding. With respect to an Event of Default described under clauses (g) and (h) above,
the principal of all Securities of such Series shall become immediately due and payable without any
declaration or other act by the Trustee or the Holders. This provision, however, is subject to the
condition that if at any time after the principal of the Securities of such Series (or, in the case
of Original Issue Discount Securities, such principal amount as may be determined in accordance
with the terms thereof) shall have been so declared due and payable, and if recission would not
conflict with any judgment or decree of a court of competent jurisdiction, the Company or the
Guarantor shall pay or shall deposit with the Trustee a sum sufficient to pay in the Currency in
which the Securities of such Series are payable (except as otherwise provided pursuant to Section
2.3 for the Securities of such Series and except as provided in Section 2.12(b), (d) and (e)
hereof) all matured installments of interest, if any, upon all the Securities of such Series and
the principal of any and all Securities of such Series which shall have become due otherwise than
by such acceleration (with interest upon such principal and, to the extent that payment of such
interest is enforceable under applicable law, upon overdue installments of interest, at the rate
borne by the Securities of such Series (or, in the case of Original Issue Discount Securities, at
the yield to Maturity) to the date of such payment or deposit) and in Dollars such amount as shall
be sufficient to cover reasonable compensation to the Trustee, its agents, attorneys and counsel
and all other expenses and liabilities incurred, and all advances made, by the Trustee, its agents,
attorneys and counsel and any and all defaults under this Indenture, other than the nonpayment of
the principal of Securities of such Series which shall have become due by such acceleration, shall
have been cured or waived, then and in every such case the Holders of at least a majority in
aggregate principal amount at Maturity of the Securities of such Series then Outstanding, by
written notice to the Company, the Guarantor and the Trustee for the Securities of such Series, may
waive all defaults and rescind and annul

41

 

such declaration and its consequences; but no such waiver or rescission and annulment shall extend
to or shall affect any subsequent default or shall impair any right consequent thereon.

     SECTION 5.2 Collection of Indebtedness by Trustee; Trustee May Prove Debt. The
Company and the Guarantor each covenants that (a) in case default shall be made in the payment of
any installment of interest on or any Additional Amounts any of the Securities of any Series when
such interest or Additional Amounts shall have become due and payable, and such default shall have
continued for a period of 30 days or (b) in case default shall be made in the payment of all or any
part of the principal of any of the Securities of any Series when such interest on or any
Additional Amounts shall have become due and payable, whether upon Maturity of the Securities of
such Series or upon any redemption or by declaration or otherwise, then upon demand of the Trustee
for the Securities of such Series, the Company or the Guarantor, as the case may be, will pay to
the Trustee for the Securities of such Series for the benefit of the Holders of the Securities of
such Series the whole amount that then shall have become due and payable on all Securities of such
Series for principal of or interest, as the case may be (with interest to the date of such payment
upon the overdue principal and, to the extent that payment of such interest is enforceable under
applicable law, on overdue installments of interest and Additional Amounts at the same rate as the
rate of interest specified in the Securities of such Series); and in addition thereto, such further
amount as shall be sufficient to cover the costs and expenses of collection, including reasonable
compensation to the Trustee and each predecessor Trustee, their respective agents, attorneys and
counsel, and any expenses and liabilities incurred, and all advances made, by the Trustee and each
predecessor Trustee.

     Until such demand is made by the Trustee, the Company or the Guarantor, as the case may be,
may pay the principal of, interest on, and any Additional Amounts the Securities of any Series to
the persons entitled thereto, whether or not the principal of and interest on the Securities of
such Series are overdue.

     In case the Company or the Guarantor, as the case may be, shall fail forthwith to pay such
amounts upon such demand, the Trustee for the Securities of such Series, in its own name and as
trustee of an express trust, shall be entitled and empowered to institute any action or proceedings
at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such
action or proceedings to judgment or final decree, and may enforce any such judgment or final
decree against the Company or the Guarantor, as the case may be, or other obligor upon such
Securities and collect in the manner provided by law out of the property of the Company, the
Guarantor or any other obligor upon such Securities, wherever situated, the moneys adjudged or
decreed to be payable.

     In case there shall be pending proceedings relative to the Company, the Guarantor or any other
obligor upon the Securities under Title 11 of the United States Code or any other applicable
Federal or state bankruptcy, insolvency or other similar law, or in case a receiver, assignee or
trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official shall have
been appointed for or taken possession of the Company, the Guarantor or their respective properties
or such other obligor, or in case of any other comparable judicial proceedings relative to the
Company, the Guarantor or other obligor under the Securities of any Series, if any, or to the
creditors or property of the Company, the Guarantor or any such other obligor, the Trustee,
irrespective of whether the principal of any Securities shall then be due and payable as therein

42

 

expressed or by declaration or otherwise and irrespective of whether the Trustee shall have
made any demand pursuant to the provisions of this Section, shall be entitled and empowered, by
intervention in such proceedings or otherwise:

     (a) to file and prove a claim or claims for the whole amount of principal (or, if the
Securities of such Series are Original Issue Discount Securities, such portion of the principal
amount as may be due and payable with respect to the Securities of such Series pursuant to a
declaration in accordance with Section 5.1 hereof), any premium, interest and Additional Amounts
owing and unpaid in respect of the Securities of any Series, and to file such other papers or
documents as may be necessary or advisable in order to have the claims of the Trustee (including
any claim for reasonable compensation to the Trustee and each predecessor Trustee, and their
respective agents, attorneys and counsel, and for reimbursement of all expenses and liabilities
incurred, and all advances made, by the Trustee and each predecessor Trustee,) and of the
Securityholders allowed in any judicial proceedings relative to the Company, the Guarantor or any
other obligor upon all Securities of any Series, or to the creditors or property of the Company,
the Guarantor or any such other obligor,

     (b) unless prohibited by applicable law and regulations, to vote on behalf of the holders of
the Securities of any Series in any election of a trustee or a standby trustee in arrangement,
reorganization, liquidation or other bankruptcy or insolvency proceedings or person performing
similar functions in comparable proceedings, and

     (c) to collect and receive any moneys or other property payable or deliverable on any such
claims, and to distribute all amounts received with respect to the claims of the Securityholders
and of the Trustee on their behalf; and any trustee, receiver, or liquidator, custodian or other
similar official is hereby authorized by each of the Holders to make payments to the Trustee for
the Securities of such Series, and, in the event that such Trustee shall consent to the making of
payments directly to the Securityholders, to pay to such Trustee such amounts as shall be
sufficient to cover reasonable compensation to such Trustee, each predecessor Trustee and their
respective agents, attorneys and counsel, and all other expenses and liabilities incurred, and all
advances made, by such Trustee and each predecessor Trustee and all other amounts due to such
Trustee or any predecessor Trustee pursuant to Section 6.6.

     Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to
or vote for or accept or adopt on behalf of any Securityholder any plan of reorganization,
arrangement, adjustment or composition affecting the Securities of any Series or the rights of any
Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Securityholder
in any such proceeding except, as aforesaid, to vote for the election of a trustee in bankruptcy or
similar person.

     All rights of action and of asserting claims under this Indenture, or under any of the
Securities, may be enforced by the Trustee for the Securities of such Series without the possession
of any of the Securities of such Series or the production thereof at any trial or other proceedings
relative thereto, and any such action or proceedings instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment, subject to the payment
of the expenses, disbursements and compensation of the Trustee, each predecessor

43

 

Trustee and their respective agents and attorneys, shall be for the ratable benefit of the
Holders of the Securities in respect of which such action was taken.

     In any proceedings brought by the Trustee for the Securities of such Series (and also any
proceedings involving the interpretation of any provision of this Indenture to which the Trustee
shall be a party), the Trustee shall be held to represent all the Holders of the Securities in
respect to which such action was taken, and it shall not be necessary to make any Holders of such
Securities parties to any such proceedings.

     SECTION 5.3 Application of Proceeds. Any moneys collected by the Trustee for the
Securities of such Series pursuant to this Article in respect of the Securities of any Series and
any money or other property distributable in respect of the Company’s or the Guarantor’s
obligations under this Indenture after the occurrence of an Event of Default shall be applied in
the following order at the date or dates fixed by such Trustee and, in case of the distribution of
such moneys on account of principal, interest or Additional Amounts upon presentation of the
several Securities in respect of which moneys have been collected and stamping (or otherwise
noting) thereon the payment, or issuing Securities of such Series in reduced principal amounts in
exchange for the presented Securities of like Series if only partially paid, or upon surrender
thereof if fully paid:

     FIRST: To the payment of costs and expenses applicable to such Series in respect of
which moneys have been collected, including compensation to the Trustee and each predecessor
Trustee and their respective agents and attorneys and of all expenses and liabilities
incurred, and all advances made, by the Trustee and each predecessor Trustee and all other
amounts due to the Trustee or any predecessor Trustee pursuant to Section 6.6;

     SECOND: In case the principal of the Securities of such Series in respect of which
moneys have been collected shall not have become and be then due and payable, to the payment
of interest on the Securities of such Series in default in the order of the Maturity of the
installments of such interest and any Additional Amounts, with interest and any Additional
Amounts (to the extent that such interest has been collected by the Trustee) upon the
overdue installments of interest at the same rate as the rate of interest specified in such
Securities, such payments to be made ratably to the persons entitled thereto, without
discrimination or preference;

     THIRD: In case the principal of the Securities of such Series in respect of which
moneys have been collected shall have become and shall be then due and payable, to the
payment of the whole amount then owing and unpaid upon all the Securities of such Series for
principal, interest and Additional Amounts, with interest upon the overdue principal, and
(to the extent that payment of such interest is permissible by law and that such interest
has been collected by the Trustee) upon overdue installments of interest at the same rate as
the rate of interest specified in the Securities of such Series; and in case such moneys
shall be insufficient to pay in full the whole amount so due and unpaid upon the Securities
of such Series, then to the payment of such principal, interest and Additional Amounts
without preference or priority of principal over interest or of interest over principal, or
of any installment of interest over any other installment of interest, or

44

 

of any Security of such Series over any other Security of such Series, ratably to the
aggregate of such principal and accrued and unpaid interest; and

     FOURTH: To the payment of the remainder, if any, to the Company, the Guarantor or any
other person lawfully entitled thereto.

     SECTION 5.4 Suits for Enforcement. In case an Event of Default has occurred, has not
been waived and is continuing, the Trustee may in its discretion proceed to protect and enforce the
rights vested in it by this Indenture by such appropriate judicial proceedings as the Trustee shall
deem effectual to protect and enforce any of such rights, either at law or in equity or in
bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement
contained in this Indenture or in aid of the exercise of any power granted in this Indenture or to
enforce any other legal or equitable right vested in the Trustee by this Indenture or by law.

     SECTION 5.5 Restoration of Rights on Abandonment of Proceedings. In case the Trustee
for the Securities of any Series shall have proceeded to enforce any right under this Indenture and
such proceedings shall have been discontinued or abandoned for any reason, or shall have been
determined adversely to the Trustee, then and in every such case the Company, the Guarantor and the
Trustee shall be restored respectively to their former positions and rights hereunder, and all
rights, remedies and powers of the Company, the Guarantor, the Trustee and the Securityholders
shall continue as though no such proceedings had been taken.

     SECTION 5.6 Limitations on Suits by Securityholders. No Holder of any Security of
any Series shall have any right by virtue or by availing of any provision of this Indenture to
institute any action or proceeding at law or in equity or in bankruptcy or otherwise upon or under
or with respect to this Indenture, or for the appointment of a trustee, receiver, liquidator,
custodian or other similar official or for any other remedy hereunder, unless such Holder
previously shall have given to the Trustee written notice of default and of the continuance
thereof, as hereinbefore provided, and unless also the Holders of not less than 25% in aggregate
principal amount at Maturity of the Securities of such Series then Outstanding shall have made
written request upon the Trustee to institute such action or proceedings in its own name as trustee
hereunder and shall have offered to the Trustee such reasonable indemnity, as it may require
against the costs, expenses and liabilities to be incurred therein or thereby and the Trustee for
60 days after its receipt of such notice, request and offer of indemnity shall have failed to
institute any such action or proceeding and no direction inconsistent with such written request
shall have been given to the Trustee pursuant to Section 5.9; it being understood and intended, and
being expressly covenanted by the taker and Holder of every Security with every other taker and
Holder of a Security and the Trustee, that no one or more Holders of Securities of any Series shall
have any right in any manner whatever, by virtue or by availing of any provision of this Indenture
to affect, disturb or prejudice the rights of any other such Holder of Securities, or to obtain or
seek to obtain priority over or preference to any other such Holder or to enforce any right under
this Indenture, except in the manner herein provided and for the equal, ratable and common benefit
of all Holders of Securities of the applicable Series. For the protection and enforcement of the
provisions of this Section, each and every Securityholder and the Trustee shall be entitled to such
relief as can be given either at law or in equity.

45

 

     SECTION 5.7 Unconditional Right of Securityholders to Institute Certain Suits.
Notwithstanding any provision in this Indenture and any provision of any Security, the right of any
Holder of any Security to receive payment of the principal of and interest on such Security at the
respective rates, in the respective amount and in the Currency therein prescribed on or after the
respective due dates expressed in such Security, or to institute suit for the enforcement of any
such payment on or after such respective dates, shall not be impaired or affected without the
consent of such Holder.

     SECTION 5.8 Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default.
Except as provided in Sections 2.9 or 5.6, no right or remedy herein conferred upon or reserved to
the Trustee or to the Securityholders 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.

     No delay or omission of the Trustee or of any Securityholder to exercise any right or power
accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such
right or power or shall be construed to be a waiver of any such Event of Default or an acquiescence
therein; and, subject to Sections 2.9 or 5.6, every power and remedy given by this Indenture or by
law to the Trustee, or to the Securityholders may be exercised from time to time, and as often as
shall be deemed expedient, by the Trustee, or the Securityholders.

     SECTION 5.9 Control by Securityholders. The Holders of a majority in aggregate
principal amount at Maturity of the Securities of each Series affected (with each Series treated as
a separate class) at the time Outstanding 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 by this Indenture;
provided that such direction shall not be otherwise than in accordance with law and the provisions
of this Indenture and provided further that (subject to the provisions of Section 6.1) the Trustee
shall have the right to decline to follow any such direction if the Trustee, being advised by
counsel, shall determine that the action or proceeding so directed may not lawfully be taken or if
the Trustee in good faith by its board of directors, the executive committee, or a trust committee
of directors or Responsible Officers of the Trustee shall determine that the action or proceedings
so directed would involve the Trustee in personal liability or if the Trustee in good faith shall
so determine that the actions or forebearances specified in or pursuant to such direction would be
unduly prejudicial to the interests of Holders of the Securities of all Series so affected not
joining in the giving of said direction, it being understood that (subject to Section 6.1) the
Trustee shall have no duty to ascertain whether or not such actions or forbearances are unduly
prejudicial to such Holders.

     Nothing in this Indenture shall impair the right of the Trustee to take any action deemed
proper by the Trustee and which is not inconsistent with such direction or directions by
Securityholders.

46

 

     SECTION 5.10 Waiver of Past Defaults. Prior to the declaration of the acceleration
of the Maturity of the Securities of any Series as provided in Section 5.1, the Holders of not less
than a majority in aggregate principal amount at Maturity of the Securities of such Series at the
time Outstanding may on behalf of the Holders of all the Securities of such Series waive any past
default hereunder or its consequences, except a default in the payment of the principal of or
interest on or any Additional Amounts with respect to, any of the Securities of such Series (unless
the conditions specified in the last paragraph of Section 5.1 have been fully satisfied). In the
case of any such waiver, the Company, the Guarantor, the Trustee, the Holders of the Securities of
such Series shall be restored to their former positions and rights hereunder, respectively; but no
such waiver shall extend to any subsequent or other default or impair any right consequent thereon.

     Upon any such waiver, such default shall cease to exist and be deemed to have been cured and
not to have occurred, and any Event of Default arising therefrom shall be deemed to have been cured
and not to have occurred for every purpose of this Indenture; but no such waiver shall extend to
any subsequent or other Event of Default or impair any right consequent thereon.

     SECTION 5.11 Trustee to Give Notice of Default, But May Withhold in Certain
Circumstances. The Trustee shall transmit to the Securityholders of any Series notice in the
manner and to the extent provided in Section 11.4, of all defaults known to the Trustee to have
occurred with respect to such Series (as provided in Section 6.2(h)), such notice to be transmitted
within 90 days after the occurrence thereof, unless such defaults shall have been cured before the
giving of such notice (the term “default” or “defaults” for the purposes of this Section being
hereby defined to mean any event or condition which is, or with notice or lapse of time or both
would become, an Event of Default); provided that, except in the case of default in the payment of
the principal of, interest on or any Additional Amounts with respect to, any of the Securities of
such Series or any default in the payment of any sinking fund installment or analogous obligation
in respect of any of the Securities of such Series, the Trustee shall be protected in withholding
such notice if and so long as the board of directors, the executive committee, or a trust committee
of directors or trustees or Responsible Officers of the Trustee in good faith determines that the
withholding of such notice is in the interests of the Securityholders of such Series.

     SECTION 5.12 Right of Court to Require Filing of Undertaking to Pay Costs. All
parties to this Indenture agree, and each Holder of any Security by his acceptance thereof, shall
be deemed to have agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any
action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit
of an undertaking to pay the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in
such suit, having due regard to the merits and good faith of the claims or defenses made by such
party litigant; but the provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Securityholder or group of Securityholders of any Series
holding in the aggregate more than 10% in aggregate principal amount at Maturity of the Securities
of such Series, or, in the case of any suit relating to or arising under clause (d) of Section 5.1
(if the suit relates to Securities of more than one but less than all Series), 10% in aggregate
principal amount at Maturity of Securities Outstanding affected thereby, or in the case

47

 

of any suit relating to or arising under clause (d) (if the suit under clause (d) relates to
all the Securities then Outstanding), (e), (f) or (g) of Section 5.1, 10% in aggregate principal
amount of all Securities Outstanding, or to any suit instituted by any Securityholder for the
enforcement of the payment of the principal of, interest on or any Additional Amounts with respect
to, any Security on or after the due date expressed in such Security.

ARTICLE SIX

CONCERNING THE TRUSTEE

     SECTION 6.1 Duties and Responsibilities of the Trustee; During Default; Prior to
Default. (a) With respect to the Holders of any Series of Securities issued hereunder, the
Trustee, prior to the occurrence of an Event of Default with respect to the Securities of a
particular Series and after the curing or waiving of all Events of Default which may have occurred
with respect to such Series, undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture. In case an Event of Default with respect to the
Securities of a Series has occurred (which has not been cured or waived) of which a Responsible
Officer has actual knowledge, the Trustee shall exercise such of the rights and powers vested in it
by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of such person’s own affairs.

     (b) Prior to the occurrence of an Event of Default with respect to the Securities of any
Series and after the curing or waiving of all such Events of Default with respect to such Series
which may have occurred:

     (i) the duties and obligations of the Trustee with respect to the Securities of any
Series shall be determined solely by the express provisions of this Indenture, and the
Trustee shall not be liable except for the performance of such duties and obligations as are
specifically set forth in this Indenture, and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and

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

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

     (i) this Subsection shall not be construed to limit the effect of the Subsections (a),
(b) or (d) of this Section;

48

 

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

     (iii) the Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders pursuant to
Section 5.9 relating to the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred upon the
Trustee, under this Indenture.

     (d) None of the provisions contained in this Indenture shall require the Trustee to expend or
risk its own funds or otherwise incur personal financial liability in the performance of any of its
duties or in the exercise of any of its rights or powers, if there shall be reasonable ground for
believing that the repayment of such funds or adequate indemnity against such liability is not
reasonably assured to it.

     (e) 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 conditions of this Section 6.1.

     SECTION 6.2 Certain Rights of the Trustee. Subject to Section 6.1:

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

     (b) any request, direction, order or demand of the Company or of the Guarantor mentioned
herein shall be sufficiently evidenced by an Officers’ Certificate or the Guarantor’s Officer’s
Certificate (unless other evidence in respect thereof be herein specifically prescribed); and any
resolution of the Board of Directors or the Guarantor’s Board of Directors may be evidenced to the
Trustee by a copy thereof certified by the secretary or any assistant secretary of the Company or
the Guarantor, as the case may be;

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

     (d) the Trustee shall be under no obligation to exercise any of the rights, trusts or powers
vested in it by this Indenture at the request, order or direction of any of the Securityholders
pursuant to the provisions of this Indenture, unless such Securityholders shall have offered to the
Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities which
might be incurred therein or thereby;

49

 

     (e) the Trustee shall not be liable for any action taken or omitted by it in good faith and
believed by it to be authorized or within the discretion, rights or powers conferred upon it by
this Indenture;

     (f) 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, consent,
order, approval, appraisal, bond, debenture, note, coupon, security, or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney at the sole cost of the Company and shall incur no liability or
additional liability of any kind by reason of such inquiry or investigation;

     (g) 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 not regularly in its employ and the
Trustee shall not be responsible for any misconduct or negligence on the part of any such agent or
attorney appointed with due care by it hereunder;

     (h) the Trustee shall not be deemed to have notice or be charged with knowledge of any default
or Event of Default unless a Responsible Officer has received written notice from the Company, the
Guarantor or any Holder of such default or Event of Default at the Corporate Trust Office of the
Trustee and such notice references the Securities and this Indenture and identifies each such
default or Event of Default;

     (i) the rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and each agent, co-trustee,
custodian and other Person employed to act hereunder;

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

     (k) no provision of this Indenture shall be deemed to impose any duty or obligation on the
Trustee to perform any act or acts, receive or obtain any interest in property or exercise any
interest in property, or exercise any right, power, duty or obligation conferred or imposed on it
in any jurisdiction in which it shall be illegal, or in which the Trustee shall be unqualified or
incompetent in accordance with applicable law, to perform any such act or acts, to receive or
obtain any such interest in property or to exercise any such right, power, duty or obligation; and
no permissive or discretionary power or authority available to the Trustee shall be construed to be
a duty;

50

 

     (l) anything in this Indenture notwithstanding, in no event shall the Trustee be liable for
special, indirect, punitive or consequential loss or damage of any kind whatsoever (including but
not limited to loss of profit), even if the Trustee has been advised as to the likelihood of such
loss or damage and regardless of the form of action; and

     (m) the Trustee shall not be responsible or liable for any failure or delay in the performance
of its obligations under this Indenture arising out of or caused, directly or indirectly, by
circumstances beyond its reasonable control, including, without limitation, acts of God;
earthquakes; fire; flood; terrorism; wars and other military disturbances; sabotage; epidemics;
riots; interruptions; loss or malfunctions of utilities, computer (hardware or software) or
communication services; accidents; labor disputes; acts of civil or military authority and
governmental action.

     SECTION 6.3 Trustee Not Responsible for Recitals, Disposition of Securities or
Application of Proceeds Thereof. The recitals contained herein and in the Securities, except
the Trustee’s certificate of authentication, shall be taken as the statements of the Company or the
Guarantor, as the case may be, and the Trustee assumes no responsibility for the correctness of the
same. The Trustee makes no representation as to the validity or sufficiency of this Indenture or
of the Securities. The Trustee shall not be accountable for the use or application by the Company
or the Guarantor, as the case may be, of any of the Securities or of the proceeds thereof.

     SECTION 6.4 Trustee and Agents May Hold Securities; Collections, etc. The Trustee,
any Paying Agent, Registrar, or any agent of the Company, the Guarantor or the Trustee, in its
individual or any other capacity, may become the owner or pledgee of Securities with the same
rights it would have if it were not the Trustee or such agent and, subject to Sections 6.8 and
6.13, if operative, may otherwise deal with the Company or the Guarantor, as the case may be, and
receive, collect, hold and retain collections from the Company or the Guarantor, as the case may
be, with the same rights it would have if it were not the Trustee or such agent.

     SECTION 6.5 Moneys Held by Trustee. Subject to the provisions of Section 10.4
hereof, all moneys received by the Trustee shall, until used or applied as herein provided, be held
in trust for the purposes for which they were received, but need not be segregated from other funds
except to the extent required by mandatory provisions of law. Neither the Trustee nor any agent of
the Company, the Guarantor or the Trustee shall be under any liability for interest on any moneys
received by it hereunder.

     SECTION 6.6 Compensation and Indemnification of Trustee and Its Prior Claim. The
Company and the Guarantor, covenant and agree to pay in Dollars to the Trustee from time to time,
and the Trustee shall be entitled to, such compensation as shall be agreed in writing between the
Company or the Guarantor, as the case may be, and the Trustee (which shall not be limited by any
provision of law in regard to the compensation of a trustee of an express trust) and the Company
and the Guarantor covenant and agree to pay or reimburse in Dollars the Trustee and each
predecessor Trustee upon its request for all expenses, disbursements and advances incurred or made
by or on behalf of it in accordance with any of the provisions of this Indenture (including the
compensation and the expenses and disbursements of its counsel and of all agents and other persons
not regularly in its employ) except any such expense, disbursement or advance

51

 

as may arise from its negligence or bad faith. Each of the Company and the Guarantor also
covenants to indemnify the Trustee and each predecessor Trustee for, and to hold it harmless
against, any and all loss, liability, damage, claim or expense, including taxes (other than taxes
based on the income of the Trustee), incurred without negligence or bad faith on its part, arising
out of or in connection with the acceptance or administration of this Indenture or the trusts
hereunder and its duties hereunder, including the costs and expenses of defending itself against or
investigating any claim (whether asserted by the Company, the Guarantor, a Holder or any other
Person) of liability in the premises. The obligations of the Company and the Guarantor under this
Section to compensate and indemnify the Trustee and each predecessor Trustee and to pay or
reimburse the Trustee and each predecessor Trustee for expenses, disbursements and advances shall
constitute additional indebtedness hereunder and shall survive the satisfaction and discharge of
the Securities and this Indenture, the termination for any reason of this Indenture, or the
resignation or removal of the Trustee. Such additional indebtedness shall be a senior claim 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, and the Securities are
hereby subordinated to such senior claim.

     When the Trustee incurs expenses or renders services in connection with an Event of Default
specified in Section 5.1(e), the expenses (including the reasonable charges and expenses of its
counsel) and the compensation for the services are intended to constitute expenses of
administration under any applicable Federal or state bankruptcy, insolvency or other similar law.

     “Trustee” for purposes of this Section shall include any predecessor Trustee; provided,
however, that the negligence, willful misconduct or bad faith of any Trustee hereunder shall not
affect the rights of any other Trustee hereunder.

     SECTION 6.7 Right of Trustee to Rely on Officers’ Certificate, Guarantor’s Officer’s
Certificate, etc. Subject to Sections 6.1 and 6.2, whenever in the administration of the
trusts of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved
or established prior to taking or suffering or omitting any action hereunder, such matter (unless
other evidence in respect thereof be herein specifically prescribed) may, in the absence of bad
faith on the part of the Trustee, be deemed to be conclusively proved and established by an
Officers’ Certificate or Guarantor’s Officer’s Certificate, as the case may be, complying with
Section 11.5 delivered to the Trustee, and such certificate, in the absence of bad faith on the
part of the Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted
by it or under the provisions of this Indenture upon the faith thereof.

     SECTION 6.8 Disqualification of Trustee; Conflicting Interests. If the Trustee for
the Securities of any Series has or shall acquire any “conflicting interest,” as defined in the
Trust Indenture Act, it shall, within 90 days after ascertaining that it has such conflicting
interest, and if the default (as defined in the Trust Indenture Act) to which such conflicting
interest relates has not been cured or waived or otherwise eliminated before the end of such 90-day
period, the Trustee shall, either eliminate such conflicting interest or resign in the manner and
with the effect specified in the Trust Indenture Act and this Indenture.

     SECTION 6.9 Persons Eligible for Appointment as Trustee. The Trustee for each Series
of Securities hereunder shall at all times be a Corporation organized and doing business under

52

 

the laws of the United States of America or of any State or the District of Columbia having a
combined capital and surplus of at least $50,000,000, and which is authorized under such laws to
exercise corporate trust powers and is subject to supervision or examination by Federal, state or
District of Columbia authority. If such Corporation publishes reports of condition at least
annually, pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section, the combined capital and surplus of such
Corporation shall be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. In case at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section, the Trustee shall resign immediately in the manner
and with the effect specified in Section 6.10.

     SECTION 6.10 Resignation and Removal; Appointment of Successor Trustee. (a) The
Trustee, or any trustee or trustees hereafter appointed, may at any time resign with respect to one
or more or all Series of Securities by giving written notice of resignation to the Company and the
Guarantor and by mailing notice thereof to the Holders in the manner and to the extent provided in
Section 11.4. Upon receiving such notice of resignation, the Company or the Guarantor, as the case
may be, shall promptly appoint a successor trustee or trustees with respect to the applicable
Series by written instrument in duplicate, executed by authority of the Board of Directors or the
Guarantor’s Board of Directors, as the case may be, one copy of which instrument shall be delivered
to the resigning Trustee and one copy to the successor trustee or trustees. If no successor
trustee shall have been so appointed with respect to any Series and have accepted appointment
within 30 days after the mailing of such notice of resignation, the resigning trustee may petition,
at the expense of the Company and the Guarantor, any court of competent jurisdiction for the
appointment of a successor trustee, or any Securityholder who has been a bona fide Holder of a
Security or Securities of the applicable Series for at least six months may, subject to the
provisions of Section 5.12, on behalf of himself and all others similarly situated, petition any
such court for the appointment of a successor trustee. Such court may thereupon, after such
notice, if any, as it may deem proper and prescribe, appoint a successor trustee.

     (b) In case at any time any of the following shall occur:

     (i) the Trustee shall fail to comply with the provisions of Section 6.8 with respect to
any Series of Securities after written request therefor by the Company, the Guarantor or by
any Securityholder who has been a bona fide Holder of a Security or Securities of such
Series for at least six months unless the Trustee’s duty to resign is stayed in accordance
with the provisions of Section 310(b) of the Trust Indenture Act; or

     (ii) the Trustee shall cease to be eligible in accordance with the provisions of
Section 6.9 and shall fail to resign after written request therefor by the Company, the
Guarantor or by any Securityholder; or

     (iii) the Trustee shall become incapable of acting with respect to any Series of the
Securities, or shall be adjudged a bankrupt or insolvent, or a receiver or liquidator 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;

53

 

then, in any such case, the Company or the Guarantor may remove the Trustee with respect to the
applicable Series of Securities and appoint a successor trustee for such Series by written
instrument, in duplicate, executed by order of the Board of Directors of the Company or the
Guarantor’s Board of Directors, as the case may be, one copy of which instrument shall be delivered
to the Trustee so removed and one copy to the successor trustee, or, subject to the provisions of
Section 5.12, any Securityholder who has been a bona fide Holder of a Security or Securities of
such Series for at least six months may on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee and the appointment of
a successor trustee with respect to such Series. Such court may thereupon, after such notice, if
any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee.

     (c) The Holders of a majority in aggregate principal amount of the Securities of each Series
at the time Outstanding may at any time remove the Trustee with respect to Securities of such
Series and such Holders shall provide promptly to the Company and the Guarantor the evidence
provided for in Section 7.1 of the action in that regard taken by the Securityholders. In such an
event and upon receipt of such evidence, the Company or the Guarantor will appoint a successor
trustee with respect to the Securities of such Series by delivering to the Trustee so removed, and
to the successor trustee so appointed such evidence received from the Holders.

     If no successor Trustee shall have been appointed with respect to such Series within 30 days
after the mailing of such notice of removal, the Trustee being removed may petition, at the expense
of the Company and the Guarantor, any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such Series.

     (d) Any resignation or removal of the Trustee with respect to any Series and any appointment
of a successor trustee with respect to such Series pursuant to any of the provisions of this
Section 6.10 shall become effective upon acceptance of appointment by the successor trustee as
provided in Section 6.11.

     SECTION 6.11 Acceptance of Appointment by Successor Trustee. Any successor trustee
appointed as provided in Section 6.10 shall execute and deliver to the Company, the Guarantor and
to its predecessor Trustee an instrument accepting such appointment hereunder, and thereupon the
resignation or removal of the predecessor Trustee with respect to all or any applicable Series
shall become effective and such successor trustee, without any further act, deed or conveyance,
shall become vested with all rights, powers, duties and obligations with respect to such Series of
its predecessor hereunder, with like effect as if originally named as trustee for such Series
hereunder; but, nevertheless, on the written request of the Company, of the Guarantor or of the
successor trustee, upon payment of its charges then unpaid, the trustee ceasing to act shall,
subject to Section 10.4, pay over to the successor trustee all moneys at the time held by it
hereunder and shall execute and deliver an instrument transferring to such successor trustee all
such rights, powers, duties and obligations. Upon request of any such successor trustee, the
Company shall execute any and all instruments in writing for more fully and certainly vesting in
and confirming to such successor trustee all such rights and powers. Any trustee ceasing to act
shall, nevertheless, retain a prior claim upon all property or funds held or collected by such
trustee to secure any amounts then due it pursuant to the provisions of Section 6.6.

54

 

     If a successor trustee is appointed with respect to the Securities of one or more (but not
all) Series, the Company, the Guarantor, the predecessor Trustee and each successor trustee with
respect to the Securities of any applicable Series shall execute and deliver an indenture
supplemental hereto which shall contain such provisions as shall be deemed necessary or desirable
to confirm that all the rights, powers, trusts and duties of the predecessor Trustee with respect
to the Securities of any Series as to which the predecessor Trustee is not retiring shall continue
to be vested in the predecessor Trustee, and shall add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration of the trusts
hereunder by more than one trustee, it being understood that nothing herein or in such supplemental
indenture shall constitute such trustees co-trustees of the same trust and that each such trustee
shall be trustee of a trust or trusts under separate indentures.

     No successor trustee with respect to any Series of Securities shall accept appointment as
provided in this Section 6.11 unless at the time of such acceptance such successor trustee shall be
qualified under the provisions of Section 6.8 and eligible under the provisions of Section 6.9.

     Upon acceptance of appointment by any successor trustee as provided in this Section 6.11, the
Company or the Guarantor, as the case may be, shall give notice in the manner and to the extent
provided in Section 11.4 to the Holders of Securities of any Series for which such successor
trustee is acting as trustee at their last addresses as they shall appear in the Security Register.
If the acceptance of appointment is substantially contemporaneous with the resignation, then the
notice called for by the preceding sentence may be combined with the notice called for by Section
6.10. If the Company fails to mail such notice within ten days after acceptance of appointment by
the successor trustee, the successor trustee shall cause such notice to be mailed at the expense of
the Company and the Guarantor.

     SECTION 6.12 Merger, Conversion, Consolidation or Succession to Business of Trustee.
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
that such Corporation shall be qualified under the provisions of Section 6.8 and eligible under the
provisions of Section 6.9, without the execution or filing of any paper or any further act on the
part of any of the parties hereto, anything herein to the contrary notwithstanding.

     In case at the time such successor to the Trustee shall succeed to the trusts created by this
Indenture any of the Securities of any Series shall have been authenticated but not delivered, any
such successor to the Trustee may adopt the certificate of authentication of any predecessor
Trustee and deliver such Securities so authenticated; and, in case at that time any of the
Securities of any Series shall not have been authenticated, any successor to the Trustee may
authenticate such Securities either in the name of any predecessor Trustee hereunder or in the name
of the successor Trustee; and in all such cases such certificates shall have the full force which
it is anywhere in the Securities of such Series or in this Indenture provided that the certificate
of the Trustee shall have; provided, that the right to adopt the certificate of authentication of
any predecessor Trustee or to authenticate Securities of any Series in the name of any predecessor
Trustee shall apply only to its successor or successors by merger, conversion or consolidation.

55

 

     SECTION 6.13 Preferential Collection of Claims Against the Company. If and when the
Trustee shall be or become a creditor of the Company (or any other obligor upon the Securities),
the Trustee shall be subject to the provisions of the Trust Indenture Act, if such act shall then
be applicable to this Indenture, regarding the collection of claims against the Company or the
Guarantor (or any such other obligor).

     SECTION 6.14 Appointment of Co-Trustees. At any time or times, for the purpose of
meeting the legal requirements of any jurisdiction in which any collateral may at the time be
located, or if the Trustee is unable or unwilling to execute any documents in a jurisdiction in
which any collateral may at any time be located or hold or enforce the rights of the secured
parties thereunder, each of the Company and the Trustee shall have power to appoint, and, upon the
written request of the Trustee or of the Holders of at least twenty-five per centum (25%) in
aggregate principal amount of the Notes then Outstanding, the Company shall for such purpose join
with the Trustee in the execution and delivery of all instruments and agreements necessary or
proper to appoint, one or more Persons approved by the Trustee and, if no Event of Default shall
have occurred and be continuing, by the Company either to act as co-trustee, jointly with the
Trustee, of all or any part of any collateral, or to act as separate trustee of any such property,
in either case with such powers as may be provided in the instrument of appointment, and to vest in
such Person or Persons, in the capacity aforesaid, any property, title, right or power deemed
necessary or desirable, subject to the other provisions of this Section. If the Company does not
join in such appointment within fifteen (15) days after the receipt by it of a request so to do, or
if an Event of Default shall have occurred and be continuing, the Trustee alone shall have power to
make such appointment.

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

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

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

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

56

 

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

     (d) Neither the Trustee nor any co-trustee or separate trustee hereunder shall be personally
liable by reason of any act or omission of any other trustee hereunder; and

     (e) Any Act of Holders delivered to the Trustee shall be deemed to have been delivered to each
such co-trustee and separate trustee.

ARTICLE SEVEN

CONCERNING THE SECURITYHOLDERS

     SECTION 7.1 Evidence of Action Taken by Securityholders.

     (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by a specified percentage in principal amount of
the Securityholders of any or all Series may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such specified percentage of Securityholders
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 to
the Trustee. Proof of execution of any instrument or of a writing appointing any such agent shall
be sufficient for any purpose of this Indenture and (subject to Sections 6.1 and 6.2) conclusive in
favor of the Trustee, the Company and the Guarantor, if made in the manner provided in this
Article.

     (b) The ownership of Securities shall be proved by the Security Register.

     SECTION 7.2 Proof of Execution of Instruments. The execution of any instrument by a
Securityholder or his agent or proxy may be proved in accordance with such reasonable rules and
regulations as may be prescribed by the Trustee or in such manner as shall be satisfactory to the
Trustee.

     SECTION 7.3 Holders to Be Treated as Owners. The Company, the Guarantor, the Trustee
and any agent of the Company, the Guarantor or the Trustee may deem and treat the person in whose
name any Security shall be registered upon the Security Register for such Series as the absolute
owner of such Security (whether or not such Security shall be overdue and notwithstanding any
notation of ownership or other writing thereon) for the purpose of receiving payment of or on
account of the principal of, interest on, and any Additional Amounts with respect to, such Security
and for all other purposes; and neither the Company, the Guarantor, the Trustee nor any agent of
the Company, the Guarantor or the Trustee shall be affected by any

57

 

notice to the contrary. All such payments so made to any such person, or upon his order,
shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge
the liability for moneys payable upon any such Security.

     SECTION 7.4 Securities Owned by Company Deemed Not Outstanding. In determining
whether the Holders of the requisite aggregate principal amount of Outstanding Securities of any or
all Series have concurred in any direction, consent or waiver under this Indenture or whether a
quorum is present at a meeting of Holders of Securities, Securities which are owned by the Company,
the Guarantor or any other obligor on the Securities with respect to which such determination is
being made or by any person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company, the Guarantor or any other obligor on the Securities with
respect to which such determination is being made shall be disregarded and deemed not to be
Outstanding for the purpose of any such determination, except that for the purpose of determining
whether the Trustee shall be protected in relying on any such direction, consent or waiver, and for
purposes of determining the presence of a quorum, only Securities which a Responsible Officer of
the Trustee actually knows are so owned shall be so disregarded. Securities so owned which have
been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that
the pledgee is not the Company, the Guarantor or any other obligor upon the Securities or any
person directly or indirectly controlling or controlled by or under direct or indirect common
control with the Company, the Guarantor or any other obligor on the Securities. In case of a
dispute as to such right, the advice of counsel shall be full protection in respect of any decision
made by the Trustee in accordance with such advice. Upon request of the Trustee, the Company shall
furnish to the Trustee promptly an Officers’ Certificate listing and identifying all Securities, if
any, known by the Company to be owned or held by or for the account of any of the above-described
persons; and, subject to Sections 6.1 and 6.2, the Trustee shall be entitled to accept such
Officers’ Certificate as conclusive evidence of the facts therein set forth and of the fact that
all Securities not listed therein are Outstanding for the purpose of any such determination.

     SECTION 7.5 Right of Revocation of Action Taken. At any time prior to (but not
after) the evidencing to the Trustee, as provided in Section 7.1, of the taking of any action by
the Holders of the percentage in aggregate principal amount of the Securities of any or all Series,
as the case may be, specified in this Indenture in connection with such action, any Holder of a
Security the serial number of which is shown by the evidence to be included among the serial
numbers of the Securities the Holders of which have consented to such action may, by filing written
notice at the Corporate Trust Office and upon proof of holding as provided in this Article, revoke
such action so far as concerns such Security. Except as aforesaid any such action taken by the
Holder of any Security shall be conclusive and binding upon such Holder and upon all future Holders
and owners of such Security and of any Securities issued in exchange or substitution therefor,
irrespective of whether or not any notation in regard thereto is made upon any such Security. Any
action taken by the Holders of the percentage in aggregate principal amount of the Securities of
any or all Series, as the case may be, specified in this Indenture in connection with such action
shall be conclusively binding upon the Company, the Guarantor, the Trustee and the Holders of all
the Securities affected by such action.

58

 

     SECTION 7.6 Record Date for Determination of Holders Entitled to Vote. The Company
may, in the circumstances permitted by the Trust Indenture Act, if applicable, set a record date
for the purpose of determining the Securityholders entitled to give or take any request, demand,
authorization, direction, notice, consent, waiver or other action, or to vote on any action,
authorized or permitted to be given or taken by Securityholders. If there is to be a record date
and no such record date has been set by the Company prior to the first solicitation of a
Securityholder made by any Person in respect of any such action, or, in the case of any such vote,
prior to such vote, the record date for any such action or vote shall be the 30th day (or, if
later, the date of the most recent list of Holders required to be provided pursuant to Section 4.1)
prior to such first solicitation or vote, as the case may be. With regard to any record date, only
the Holders on such date (or their duly appointed proxies) shall be entitled to give or take, or
vote on, the relevant action.

     SECTION 7.7 Regarding the Depositary. None of the Trustee, the Paying Agent or the
Registrar shall have any responsibility or obligation to any beneficial owner in a Global Security,
any member of or Participant in the Depositary or other Person with respect to the accuracy of the
records of the Depositary or its nominee or of any Participant, with respect to any ownership
interest in the Securities or with respect to the delivery to any Participant, beneficial owner or
other Person (other than the Depositary) of any notice (including any notice of redemption) or the
payment of any amount, under or with respect to such Securities. All notices and communications to
be given to the Securityholders and all payments to be made to Holders under the Securities and
this Indenture shall be given or made only to or upon the order of the registered Holders (which
shall be the Depositary or its nominee in the case of the Global Security). The rights of
beneficial owners in the Global Security shall be exercised only through the Depositary subject to
the applicable procedures. The Trustee, the Paying Agent and the Registrar shall be entitled to
rely and shall be fully protected in relying upon information furnished by the Depositary with
respect to its members, participants and any beneficial owners. The Trustee, the Paying Agent and
the Registrar shall be entitled to deal with the Depositary, and any nominee thereof, that is the
registered Holder of any Global Security for all purposes of this Indenture relating to such Global
Security (including the payment of principal, premium, if any, and interest and additional amounts,
if any, and the giving of instructions or directions by or to the owner or holder of a beneficial
ownership interest in such Global Security) as the sole Holder of such Global Security and shall
have no obligations to the beneficial owners thereof. None of the Trustee, the Paying Agent or the
Registrar shall have any responsibility or liability for any acts or omissions of the Depositary
with respect to such Global Security, for the records of any such depositary, including records in
respect of beneficial ownership interests in respect of any such Global Security, for any
transactions between the Depositary and any Participant or between or among the Depositary, any
such Participant and/or any holder or owner of a beneficial interest in such Global Security, or
for any transfers of beneficial interests in any such Global Security.

ARTICLE EIGHT

SUPPLEMENTAL INDENTURES

     SECTION 8.1 Supplemental Indentures Without Consent of Securityholders. The Company
(when authorized by a resolution of its Board of Directors), the Guarantor (when

59

 

authorized by a Guarantor’s Board Resolution) and the Trustee for the Securities of an
effected Series may from time to time and at any time enter into an indenture or indentures
supplemental hereto (which shall conform to the provisions of the Trust Indenture Act of 1939, if
such act shall then be applicable to the Indenture, as in force at the date of the execution
thereof), in form satisfactory to such Trustee, and applicable to a particular Series of Securities
or all Series of Securities outstanding or to be outstanding hereunder for one or more of the
following purposes:

     (a) to convey, transfer, assign, mortgage or pledge to the Trustee as security for the
Securities of one or more Series any property or assets;

     (b) to evidence the succession of another Corporation to the Company or the Guarantor, or
successive successions, and the assumption by the successor Corporation of the covenants,
agreements and obligations of the Company or the Guarantor, as the case may be, pursuant to Article
Nine;

     (c) to add to the covenants of the Company or the Guarantor, as the case may be, such further
covenants, restrictions, conditions or provisions as its Board of Directors and the Trustee shall
consider to be for the protection of the Holders of Securities of any or all Series and, if such
additional covenants are to be for the benefit of less than all the Series of Securities stating
that such covenants are being added solely for the benefit of such Series, and to make the
occurrence, or the occurrence and continuance, of a default in any such additional covenants,
restrictions, conditions or provisions an Event of Default permitting the enforcement of all or any
of the several remedies provided in this Indenture as herein set forth (and if such additional
Events of Default are to be for the benefit of less than all Series of the Securities stating that
such Events of Default are being added solely for the benefit of such Series); provided, that in
respect of any such additional covenant, restriction, condition or provision such supplemental
indenture may provide for a particular period of grace after default (which period may be shorter
or longer than that allowed in the case of other defaults) or may provide for an immediate
enforcement upon such an Event of Default or may limit the remedies available to the Trustee upon
such an Event of Default or may limit the right of the Holders of not less than a majority in
aggregate principal amount at Maturity of the Securities of such Series to waive such an Event of
Default;

     (d) to cure any ambiguity or to correct or supplement any provision contained herein or in any
supplemental indenture which may be defective or inconsistent with any other provision contained
herein or in any supplemental indenture; or to make such other provisions in regard to matters or
questions arising under this Indenture or under any supplemental indenture as the Board of
Directors or the Guarantor’s Board of Directors may deem necessary or desirable and which shall not
materially and adversely affect the interests of the Holders of the Securities;

     (e) to establish the form or terms of Securities of any Series as permitted by Sections 2.1
and 2.3;

     (f) 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 the one Trustee, pursuant to the requirements of Section 6.11; or

60

 

     (g) for the issuance of a different Series of Securities; provided, that prior to the issuance
of any such different Series, a supplemental indenture may change any provision of this Indenture
applicable only to such Series.

     Any amendment described in clause (d) above made solely to conform this Indenture or the
Securities of a particular Series to the final offering memorandum or other disclosure document
provided to investors in connection with the initial offering of such Securities by the Company
will not be deemed to adversely affect the interests of the Holders in any respect.

     The Trustee is hereby authorized to join with the Company and the Guarantor in the execution
of any such supplemental indenture, to make any further appropriate agreements and stipulations
which may be therein contained and to accept the conveyance, transfer, assignment, mortgage or
pledge of any property thereunder, but the Trustee 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.

     Any supplemental indenture authorized by the provisions of this Section may be executed
without the consent of the Holders of any of the Securities at the time Outstanding,
notwithstanding any of the provisions of Section 8.2.

     SECTION 8.2 Supplemental Indentures With Consent of Securityholders. With the
consent (evidenced as provided in Article Seven) of the Holders of not less than a majority in
aggregate principal amount at Maturity of the Securities at the time Outstanding of each Series
affected by such supplemental indenture (treated as one class), the Company, when authorized by a
resolution of its Board of Directors, the Guarantor, when authorized by a Guarantor’s Board
Resolution and the Trustee for such Series of Securities may, from time to time and at any time,
enter into an indenture or indentures supplemental hereto (which shall conform to the provisions of
the Trust Indenture Act of 1939, if such act shall then be applicable to the Indenture, as in force
at the date of execution thereof) for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or
of modifying in any manner the rights of the Holders of the Securities of each such Series;
provided, that no such supplemental indenture shall (a) extend the final Maturity of any Security
of such Series, or reduce the principal amount thereof or reduce the rate or extend the time of
payment of interest thereon, or reduce any amount payable on redemption thereof, or impair or
affect the right of any Securityholder of such Series to institute suit for payment thereof or (b)
reduce the aforesaid percentage of Securities of any such Series, the consent of the Holders of
which is required for any such supplemental indenture, without the consent of the Holders of each
Security of such Series so affected.

     Upon the request of the Company or the Guarantor, accompanied by a copy of a resolution of the
Board of Directors or by a copy of a Guarantor’s Board Resolution, certified by the secretary or an
assistant secretary of the Company or the Guarantor, as the case may be, authorizing the execution
of any such supplemental indenture, and upon the filing with the Trustee for such Series of
Securities of evidence of the consent of Securityholders as aforesaid and other documents, if any,
required by Section 7.1, the Trustee for such Series of Securities shall join with the Company and
the Guarantor in the execution of such supplemental indenture unless such supplemental indenture
affects such Trustee’s own rights, duties or immunities under

61

 

this Indenture or otherwise, in which case such Trustee may in its discretion, but shall not
be obligated to, enter into such supplemental indenture.

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

     Promptly after the execution by the Company, the Guarantor and the Trustee of any supplemental
indenture pursuant to the provisions of this Section, the Company and the Guarantor shall give
notice in the manner and to the extent provided in Section 11.4 to the Holders of Securities of
each Series affected thereby at their addresses as they shall appear on the Security Register,
setting forth in general terms the substance of such supplemental indenture. Any failure of the
Company or the Guarantor to mail such notice, or any defect therein, shall not, however, in any way
impair or affect the validity of any such supplemental indenture.

     For the purposes of this Section 8.2 only, if the Securities of any Series are issuable upon
the exercise of warrants, each holder of an unexercised and unexpired warrant with respect to such
Series shall be deemed to be a Holder of Outstanding Securities of such Series in the amount
issuable upon the exercise of such warrant. For such purposes, the ownership of any such warrant
shall be determined by the Company and the Guarantor in a manner consistent with customary
commercial practices. The Trustee for such Series shall be entitled to rely on an Officers’
Certificate or a Guarantor’s Officer’s Certificate as to the principal amount of Securities of such
Series in respect of which consents shall have been executed by holders of such warrants.

     SECTION 8.3 Effect of Supplemental Indenture. Upon the execution of any supplemental
indenture pursuant to the provisions hereof, this Indenture shall be and be deemed to be modified
and amended in accordance therewith and the respective rights, limitations of rights, obligations,
duties and immunities under this Indenture of the Trustee, the Company, the Guarantor and the
Holders of Securities of each Series affected thereby shall thereafter be determined, exercised and
enforced hereunder subject in all respects to such modifications and amendments, and all the terms
and conditions of any such supplemental indenture shall be and be deemed to be part of the terms
and conditions of this Indenture for any and all purposes.

     SECTION 8.4 Documents to Be Given to Trustee. The Trustee, subject to the provisions
of Sections 6.1 and 6.2, shall receive an Officers’ Certificate or Guarantor’s Officer’s
Certificate, as the case may be, and an Opinion of Counsel as conclusive evidence that any
supplemental indenture executed pursuant to this Article Eight complies with the applicable
provisions of this Indenture.

     SECTION 8.5 Notation on Securities in Respect of Supplemental Indentures. Securities
of any Series authenticated and delivered after the execution of any supplemental indenture
pursuant to the provisions of this Article may bear, upon the direction of the Company, a notation
for the Securities of such Series as to any matter provided for by such supplemental indenture or
as to any action taken at any such meeting. If the Company or the Trustee shall so determine, new
Securities of any Series so modified as to conform, in the opinion of the Trustee and the Board of
Directors, to any modification of this Indenture contained in any such

62

 

supplemental indenture may be prepared by the Company, authenticated by the Trustee and
delivered in exchange for the Securities of such Series then Outstanding.

ARTICLE NINE

CONSOLIDATION, AMALGAMATION, MERGER AND SALES

     SECTION 9.1 Company May Consolidate, etc., on Certain Terms. The Company shall not
consolidate or amalgamate with or merge into any other Person (whether or not affiliated with the
Company), or convey, transfer or lease its properties and assets as an entirety or substantially as
an entirety to any other Person (whether or not affiliated with the Company), and the Company shall
not permit any other Person (whether or not affiliated with the Company) to consolidate or
amalgamate with or merge into the Company or convey, transfer or lease its properties and assets as
an entirety or substantially as an entirety to the Company; unless:

     (a) in case the Company shall consolidate or amalgamate with or merge into another Person or
convey, transfer or lease its properties and assets as an entirety or substantially as an entirety
to any Person, the Person formed by such consolidation or amalgamation or into which the Company is
merged or the Person, if not the Company, which acquires by conveyance or transfer, or which
leases, the properties and assets of the Company as an entirety or substantially as an entirety
shall be a Corporation organized and existing under the laws of the United States of America or any
state thereof or the District of Columbia and shall expressly assume, by an indenture (or
indentures, if at such time there is more than one Trustee) supplemental hereto, executed by the
successor Person and the Guarantor and delivered to the Trustee the due and punctual payment of the
principal of, any premium and interest on and any Additional Amounts with respect to all the
Securities and the performance of every obligation in this Indenture and the Outstanding Securities
on the part of the Company to be performed or observed, provided, that, unless such person is a
Corporation, a corporate co-issuer will be added to the Securities and this Indenture by a
supplemental indenture;

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

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

     SECTION 9.2 Successor Corporation Substituted. In case of any such consolidation,
merger, conveyance, transfer, sale or lease and following such an assumption by the successor
Person or Persons, such successor Person or Persons shall succeed to and be substituted for the
Company, with the same effect as if it had been named herein. Such successor Corporation may cause
to be signed, and may issue either in its own name or in the name of the Company prior to

63

 

such succession any or all of the Securities issuable hereunder which theretofore shall not
have been signed by the Company and delivered to the Trustee; and, upon the order of such successor
Corporation instead of the Company and subject to all the terms, conditions and limitations in this
Indenture prescribed, the Trustee shall authenticate and shall deliver any Securities, which
previously shall have been signed and delivered by the officers of the Company to the Trustee for
authentication, and any Securities which such successor Corporation thereafter shall cause to be
signed and delivered to the Trustee for that purpose. All of the Securities so issued shall in all
respects have the same legal rank and benefit under this Indenture as the Securities theretofore or
thereafter issued in accordance with the terms of this Indenture as though all of such Securities
had been issued at the date of the execution hereof.

     In case of any such merger, conveyance, transfer, sale or lease such changes in phraseology
and form (but not in substance) may be made in the Securities thereafter to be issued as may be
appropriate.

     In the event of any such sale or conveyance (other than a conveyance by way of lease) the
Company or any successor Person or Persons which shall theretofore have become such in the manner
described in this Article shall be discharged from all obligations and covenants under this
Indenture and the Securities and may be liquidated and dissolved.

     SECTION 9.3 Guarantor May Consolidate, Etc., Only on Certain Terms.

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

     (1) in case the Guarantor shall consolidate or amalgamate with or merge into another
Person or convey, transfer or lease its properties and assets as an entirety or
substantially as an entirety to any Person, the Person formed by such consolidation or
amalgamation or into which the Guarantor is merged or the Person which acquires by
conveyance or transfer, or which leases, the properties and assets of the Guarantor as an
entirety or substantially as an entirety shall be a Corporation organized and existing under
the laws of the United States of America, any state thereof or the District of Columbia,
Bermuda or any member of the Organization for Economic Co-Operation and Development, and
shall expressly assume, by an indenture (or indentures, if at such time there is more than
one Trustee) supplemental hereto, executed by the successor Person and the Company and
delivered to the Trustee the performance of every obligation in this Indenture and the
Outstanding Securities on the part of the Guarantor to be performed or observed;

     (2) immediately after giving effect to such transaction and treating any indebtedness
which becomes an obligation of the Guarantor or a Subsidiary as a result of such transaction
as having been incurred by the Guarantor or such Subsidiary at the time

64

 

of such transaction, no Event of Default or event which, after notice or lapse of time,
or both, would become an Event of Default, shall have occurred and be continuing; and

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

     SECTION 9.4 Successor Person Substituted for Guarantor.

     Upon any consolidation or amalgamation by the Guarantor with or merger of the Guarantor into
any other Person or any conveyance, transfer or lease of the properties and assets of the Guarantor
substantially as an entirety to any Person in accordance with Section 9.3, the successor Person
formed by such consolidation or amalgamation or into which the Guarantor is merged or to which such
conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise
every right and power of, the Guarantor under this Indenture with the same effect as if such
successor Person had been named as the Guarantor herein; and thereafter, except in the case of a
lease, the predecessor Person shall be released from all obligations and covenants under this
Indenture and the Securities.

ARTICLE TEN

SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

     SECTION 10.1 Satisfaction and Discharge of Indenture.

     (a) Satisfaction and Discharge. (i) If at any time (A) the Company or the Guarantor
shall have paid or caused to be paid the principal of, interest on and any Additional Amounts on
all the Securities of any Series Outstanding hereunder (other than Securities which have been
destroyed, lost or stolen and which have been replaced or paid as provided in Section 2.9) as and
when the same shall have become due and payable, or (ii) the Company or the Guarantor shall have
delivered to the Trustee for cancellation all Securities of any Series theretofore authenticated
(other than any Securities of such Series which have been destroyed, lost or stolen and which shall
have been replaced or paid as provided in Section 2.9) or (iii)(A) all the Securities of such
Series not theretofore delivered to the Trustee for cancellation shall have become due and payable,
or are by their terms to become due and payable within one year or are to be called for redemption
within one year under arrangements satisfactory to the Trustee for the giving of notice of
redemption, and (B) the Company or the Guarantor shall have irrevocably deposited or caused to be
deposited with the Trustee as trust funds the entire amount in the Currency required (other than
moneys repaid by the Trustee or any Paying Agent to the Company or the Guarantor in accordance with
Section 10.4) or Government Obligations maturing as to principal and interest in such amounts and
at such times as will ensure the availability of cash sufficient, in the opinion of a firm of
independent certified public accountants, to pay at Maturity or upon redemption all Securities of
such Series (other than any Securities of such Series which shall have been destroyed, lost or
stolen and which shall have

65

 

been replaced or paid as provided in Section 2.9) not theretofore delivered to the Trustee for
cancellation, including principal, interest due or to become due and any Additional Amounts to such
date of Maturity as the case may be, and if, in any such case, the Company or the Guarantor shall
also pay or cause to be paid all other sums payable hereunder by the Company or the Guarantor with
respect to Securities of such Series and the Guarantee in respect thereof, then this Indenture
shall cease to be of further effect with respect to Securities of such Series (except as to (i)
rights of registration of transfer and exchange, and the Company’s right of optional redemption,
(ii) substitution of mutilated, defaced, destroyed, lost or stolen Securities, (iii) rights of
Holders to receive payments of principal thereof and interest thereon upon the original stated due
dates therefor (but not upon acceleration) and remaining rights of the Holders to receive mandatory
sinking fund payments, if any, (iv) the rights, obligations and immunities of the Trustee hereunder
and (v) the rights of the Securityholders of such Series as beneficiaries hereof with respect to
the property so deposited with the Trustee payable to all or any of them), and, subject to Section
10.5, the Trustee, on demand of the Company accompanied by an Officers’ Certificate, or on demand
of the Guarantor accompanied by a Guarantor’s Officer’s Certificate, and an Opinion of Counsel and
at the cost and expense of the Company and the Guarantor, shall execute proper instruments
acknowledging such satisfaction of and discharging this Indenture with respect to such Series;
provided, that the rights of Holders of the Securities to receive amounts in respect of principal
of, interest on and any Additional Amounts with respect to, the Securities held by them shall not
be delayed longer than required by then-applicable mandatory rules or policies of any securities
exchange upon which the Securities are listed. The Company and the Guarantor each agree to
reimburse the Trustee for any costs or expenses thereafter reasonably and properly incurred and to
compensate the Trustee for any services thereafter reasonably and properly rendered by the Trustee
in connection with this Indenture, the Securities of such Series and the Guarantee in respect
thereof.

     (b) Covenant Defeasance.

     (i) On and after the date the conditions set forth in clause (ii) below are satisfied
(“covenant defeasance”), the Company and the Guarantor shall be released from its
obligations under Sections 3.4, 3.5, 3.6, 3.9, 9.1(c), and, to the extent specified pursuant
to Section 2.3 with respect to the Securities of a particular Series, any other covenant
applicable to such Series and Events of Default specified in Sections 5.1(d), (e) or (i).
For this purpose, such covenant defeasance means that, with respect to such Outstanding
Securities, the Company and the Guarantor may omit to comply with, and shall have no
liability in respect of, any term, condition or limitation set forth in any such Section or
such other covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such Section or such other covenant or by reason of reference in any such
Section or such other covenant to any other provision herein or in any other document and
such omission to comply shall not constitute an Event of Default under Section 5.1(c) or
otherwise, as the case may be, but, except as specified above, the remainder of this
Indenture, such Securities and the Guarantee in respect thereof shall be unaffected thereby.

     (ii) The following shall be the conditions to application of clause (i) above to any
Outstanding Securities of or within a Series:

66

 

     (A) The Company or the Guarantor shall irrevocably have deposited or caused to
be deposited with the Trustee (or another trustee satisfying the requirements of
Section 6.9 who shall agree to comply with the provisions of this Section 10.1(b)
applicable to it) as trust funds in trust for the purpose of making the following
payments, specifically pledged as security for, and dedicated solely to, the benefit
of the Holders of such Securities, (1) an amount in Dollars or in such Foreign
Currency in which such Securities are then specified as payable, or (2) Government
Obligations applicable to such Securities (determined on the basis of the Currency
in which such Securities are then specified as payable) which through the scheduled
payment of principal and interest in respect thereof in accordance with their terms
will provide, not later than one day before the due date of any payment of principal
of and interest, if any, on such Securities, money in an amount, or (3) a
combination thereof, in any case, in an amount, sufficient, without consideration of
any reinvestment of such principal and interest, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, and which
shall be applied by the Trustee (or other qualifying trustee) to pay and discharge,
(y) the principal of, interest on and any Additional Amounts on such Outstanding
Securities at the Maturity (which may be a Redemption Date) of such principal or
installment of principal or interest or any Additional Amounts and (z) any mandatory
sinking fund payments or analogous payments applicable to such Outstanding
Securities on the days on which such payments are due and payable in accordance with
the terms of this Indenture, of such Securities and the Guarantee in respect
thereof;

     (B) such covenant defeasance shall not result in a breach or violation of, or
constitute a default under, this Indenture or any other material agreement or
instrument to which the Company or the Guarantor is a party or by which either of
them is bound (other than a default under this Indenture arising from the borrowing
of funds to make such deposit);

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

     (D) the Company or the Guarantor shall have delivered to the Trustee an Opinion
of Counsel to the effect that the Holders of such Outstanding Securities will not
recognize income, gain or loss for Federal income tax purposes as a result of such
covenant defeasance and will be subject to Federal income tax on the same amounts,
in the same manner and at the same times as would have been the case if such
covenant defeasance had not occurred;

     (E) the Company or the Guarantor shall have delivered to the Trustee an Opinion
of Counsel to the effect that, after the 123rd day after the date of

67

 

deposit, all money and Government Obligations (including the proceeds thereof)
deposited or caused to be deposited with the Trustee (or other qualifying trustee)
pursuant to this clause (ii) to be held in trust will not be subject to any case or
proceeding (whether voluntary or involuntary) in respect of the Company or the
Guarantor under any Federal or State bankruptcy, insolvency, reorganization or other
similar law, or any decree or order for relief in respect of the Company or the
Guarantor issued in connection therewith;

     (F) the Company or the Guarantor shall have delivered to the Trustee an
Officers’ Certificate or Guarantor’s Officer’s Certificate, as the case may be, and
an Opinion of Counsel, each stating that all conditions precedent to the covenant
defeasance under clause (b) of this Section 10.1 have been complied with; and

     (G) notwithstanding any other provisions of this Section 10.1(b), such
defeasance shall be effected in compliance with any additional or substitute terms,
conditions or limitations which may be imposed on the Company or the Guarantor in
connection therewith pursuant to Section 2.3.

     (c) Legal Defeasance.

     (i) On and after the date the conditions set forth in clause (ii) below are satisfied
(“legal defeasance”), the Company and the Guarantor shall be deemed to have been discharged
from its obligations with respect to the Securities of any Series and this Indenture with
respect to such Series. For this purpose, such legal defeasance means that the Company and
the Guarantor shall be deemed to have paid and discharged the entire Indebtedness
represented by such Outstanding Securities which shall thereafter be deemed to be
“Outstanding” only for the purposes of Section 10.1 and the other Sections of this Indenture
referred to in clauses (A) and (B) below, and to have satisfied all of its other obligations
under such Securities, the Guarantee in respect thereof and this Indenture insofar as such
Securities and the Guarantee in respect thereof are concerned (and the Trustee, at the
expense of the Company and the Guarantor shall execute proper instruments acknowledging the
same), except for the following which shall survive until otherwise terminated or discharged
hereunder: (i) the rights of Holders of such Outstanding Securities to receive, solely from
the trust fund described in clause (ii)(A) and as more fully set forth in such clause,
payments in respect of the principal of and interest, if any, on, and Additional Amounts, if
any, with respect to, such Securities when such payments are due, (ii) the obligations of
the Company, the Guarantor and the Trustee with respect to such Securities under Sections
2.8, 2.9 and 3.2 and with respect to the payment of Additional Amounts, if any, on such
Securities as contemplated by Section 3.8 (but only to the extent that the Additional
Amounts payable with respect to such Securities exceed the amount deposited in respect of
such Additional Amounts pursuant to clause (ii)(A)), (iii) the rights, powers, trusts,
duties and immunities of the Trustee hereunder, (iv) the rights of optional redemption and
(v) this Article Ten.

     (ii) The following shall be the conditions to application of clause (i) above to any
Outstanding Securities of or within a Series:

68

 

     (A) The Company or the Guarantor shall irrevocably have deposited or caused to
be deposited with the Trustee (or another trustee satisfying the requirements of
Section 6.9 who shall agree to comply with the provisions of this Section 10.1(c)
applicable to it) as trust funds in trust for the purpose of making the following
payments, specifically pledged as security for, and dedicated solely to, the benefit
of the Holders of such Securities, (1) an amount in Dollars or in such Foreign
Currency in which such Securities are then specified as payable, or (2) Government
Obligations applicable to such Securities (determined on the basis of the Currency
in which such Securities are then specified as payable) which through the scheduled
payment of principal, interest and any Additional Amounts in respect thereof in
accordance with their terms will provide, not later than one day before the due date
of any payment of principal of and interest, if any, and any Additional Amounts, on
such Securities, money in an amount, or (3) a combination thereof, in any case, in
an amount, sufficient, without consideration of any reinvestment of such principal
and interest, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the Trustee,
to pay and discharge, and which shall be applied by the Trustee (or other qualifying
trustee) to pay and discharge, (y) the principal of, interest on and any Additional
Amounts on such Outstanding Securities at the Maturity (which may be a Redemption
Date) of such principal or installment of principal or interest and any Additional
Amounts and (z) any mandatory sinking fund payments or analogous payments applicable
to such Outstanding Securities on the days on which such payments are due and
payable in accordance with the terms of this Indenture, of such Securities and the
Guarantee in respect thereof;

     (B) such covenant defeasance shall not result in a breach or violation of, or
constitute a default under, this Indenture or any other material agreement or
instrument to which the Company or the Guarantor is a party or by which either of
them is bound (other than a default under this Indenture arising from the borrowing
of funds to make such deposit);

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

     (D) the Company or the Guarantor shall have delivered to the Trustee an Opinion
of Counsel stating that (i) the Company or the Guarantor has received from the
Internal Revenue Service a letter ruling, or there has been published by the
Internal Revenue Service a revenue ruling, or (ii) since the date of execution of
this Indenture, there has been a change in the applicable Federal income tax law, in
either case to the effect that, and based thereon such opinion shall confirm that,
the Holders of such Outstanding Securities will not recognize income, gain or loss
for Federal income tax purposes as a result of such defeasance and will be

69

 

subject to Federal income tax on the same amounts, in the same manner and at
the same times as would have been the case if such defeasance had not occurred;

     (E) the Company or the Guarantor shall have delivered to the Trustee an Opinion
of Counsel to the effect that, after the 123rd day after the date of deposit, all
money and Government Obligations (including the proceeds thereof) deposited or
caused to be deposited with the Trustee (or other qualifying trustee) pursuant to
this clause (ii) to be held in trust will not be subject to any case or proceeding
(whether voluntary or involuntary) in respect of the Company or the Guarantor under
any Federal or State bankruptcy, insolvency, reorganization or other similar law, or
any decree or order for relief in respect of the Company or the Guarantor issued in
connection therewith;

     (F) the Company or the Guarantor shall have delivered to the Trustee an
Officers’ Certificate or a Guarantor’s Officer’s Certificate, as the case may be,
and an Opinion of Counsel, each stating that all conditions precedent to the
defeasance under clause (c) of this Section 10.1 have been complied with; and

     (G) notwithstanding any other provisions of this Section 10.1(c), such
defeasance shall be effected in compliance with any additional or substitute terms,
conditions or limitations which may be imposed on the Company or the Guarantor in
connection therewith pursuant to Section 2.3.

     SECTION 10.2 Application by Trustee of Funds Deposited for Payment of Securities.
Subject to Section 10.4, all moneys deposited with the Trustee pursuant to Section 10.1 shall be
held in trust and applied by it to the payment, either directly or through any Paying Agent
(including the Company or the Guarantor 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.

     SECTION 10.3 Repayment of Moneys Held by Paying Agent. In connection with the
satisfaction and discharge of this Indenture with respect to Securities of any Series, all moneys
then held by any Paying Agent under the provisions of this Indenture with respect to such Series of
Securities shall, upon demand of the Company or the Guarantor, be repaid to it or paid to the
Trustee and thereupon such Paying Agent shall be released from all further liability with respect
to such moneys.

     SECTION 10.4 Return of Unclaimed Moneys Held by Trustee and Paying Agent. Any moneys
deposited with or paid to the Trustee or any Paying Agent for the payment of the principal of or
interest on any Security of any Series and not applied but remaining unclaimed for two years after
the date upon which such principal, interest or any Additional Amounts shall have become due and
payable, shall, upon the written request of the Company or the Guarantor and unless otherwise
required by mandatory provisions of applicable escheat or abandoned or unclaimed property law, be
repaid to the Company or the Guarantor, as the case may be, by the Trustee or such Paying Agent for
such Series, and the Holder of the Security of such Series shall,

70

 

unless otherwise required by mandatory provisions of applicable escheat or abandoned or
unclaimed property laws, thereafter look only to the Company or the Guarantor, as the case may be,
for any payment which such Holder may be entitled to collect, and all liability of the Trustee or
any Paying Agent with respect to such moneys shall thereupon cease.

     SECTION 10.5 Reinstatement of Company’s and Guarantor’s Obligations. If the Trustee
is unable to apply any funds or Government Obligations in accordance with Section 10.1 by reason of
any legal proceeding or by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application or by reason of the Trustee’s
inability to convert any such funds or Government Obligations into the Currency required to be paid
with respect to the Securities of such Series, the Company’s and the Guarantor’s obligations under
this Indenture and the Securities of any Series for which such application is prohibited shall be
revived and reinstated as if no deposit had occurred pursuant to Section 10.1 until such time as
the Trustee is permitted to apply all such funds or Government Obligations in accordance with
Section 10.1 or is able to convert all such funds or Government Obligations; provided, however,
that if the Company or the Guarantor has made any payment of interest on or principal of any of
such Securities because of the reinstatement of either of its obligations, the Company or the
Guarantor, as the case may be, shall be subrogated to the rights of the Securityholders of such
Securities to receive such payment from the funds or Government Obligations held by the Trustee.

     SECTION 10.6 Payments in Foreign Currencies. Unless otherwise specified in or
pursuant to this Indenture or any Security, if, after a deposit referred to in 10.1 has been made,
(a) the Holder of a Security in respect of which such deposit was made is entitled to, and does,
elect pursuant to Section 3.1 or the terms of such Security to receive payment in a Currency other
than that in which the deposit pursuant to Section 10.1 has been made in respect of such Security,
or (b) a Conversion Event occurs in respect of the Foreign Currency in which the deposit pursuant
to Section 10.1 has been made, the indebtedness represented by such Security shall be deemed to
have been, and will be, fully discharged and satisfied through the payment of the principal of, and
interest, if any, on, and Additional Amounts, if any, with respect to, such Security as the same
becomes due out of the proceeds yielded by converting (from time to time as specified below in the
case of any such election) the amount or other property deposited in respect of such Security into
the Currency in which such Security becomes payable as a result of such election or Conversion
Event based on (x) in the case of payments made pursuant to clause (a) above, the applicable market
exchange rate for such Currency in effect on the second Business Day prior to each payment date, or
(y) with respect to a Conversion Event, the applicable market exchange rate for such Foreign
Currency in effect (as nearly as feasible) at the time of the Conversion Event.

     SECTION 10.7 Indemnification Against Taxes. The Company and the Guarantor shall pay
and indemnify the Trustee (or other qualifying trustee, collectively for purposes of this Section
10.7 and Section 10.1, the “Trustee”) against any tax, fee or other charge, imposed on or assessed
against the Government Obligations deposited pursuant to Section 10.1 or the principal or interest
received in respect thereof other than any such tax, fee or other charge which by law is for the
account of the Holders of such Outstanding Securities.

71

 

ARTICLE ELEVEN

MISCELLANEOUS PROVISIONS

     SECTION 11.1 Incorporators, Stockholders, Officers and Directors of Company and Guarantor
Exempt from Individual Liability. No recourse under or upon any obligation, covenant or
agreement contained in this Indenture, in any Security, or because of any indebtedness evidenced
thereby, shall be had against any incorporator, as such or against any past, present or future
stockholder, member, partner, other owner of Capital Stock, officer or director, as such, of the
Company or the Guarantor or of any successor, either directly or through the Company, the Guarantor
or any successor, under any rule of law, statute or constitutional provision or by the enforcement
of any assessment or by any legal or equitable proceeding or otherwise, all such liability being
expressly waived and released by the acceptance of the Securities by the Holders thereof and as
part of the consideration for the issue of the Securities.

     SECTION 11.2 Provisions of Indenture for the Sole Benefit of Parties and
Securityholders. Nothing in this Indenture or in the Securities, expressed or implied, shall
give or be construed to give to any Person, firm or Corporation, other than the parties hereto, any
Paying Agent and their successors hereunder and the Holders of the Securities any legal or
equitable right, remedy or claim under this Indenture or under any covenant or provision herein
contained, all such covenants and provisions being for the sole benefit of the parties hereto and
their successors and of the Holders of the Securities.

     SECTION 11.3 Successors and Assigns of Company Bound by Indenture. All the covenants,
stipulations, promises and agreements in this Indenture contained by or on behalf of each of the
Company and the Guarantor shall bind their respective successors and assigns, whether so expressed
or not.

     SECTION 11.4 Notices and Demands on Company, the Guarantor, Trustee and
Securityholders. Any notice or demand which by any provision of this Indenture is required or
permitted to be given or served by the Trustee, by the Holders of Securities to or on the Company
or the Guarantor shall be in writing and shall be given or served by being deposited postage
prepaid, first-class mail (except as otherwise specifically provided herein) addressed (until
another address of the Company or the Guarantor is filed by the Company or the Guarantor with the
Trustee) to Max USA Holdings Ltd., c/o Max Capital Group Ltd., Max House, 2 Front Street, Hamilton,
HM 12, Bermuda, Attention: General Counsel with a copy to the Chief Financial Officer. Any
notice, direction, request or demand by the Company or the Guarantor or any Securityholder to or
upon the Trustee shall be in writing and delivered in person, via facsimile or by postage pre-paid,
first-class mail and shall be deemed to have been sufficiently given or made, for all purposes, if
actually received at the Corporate Trust Office. Any facsimiles to the Trustee shall be sent to
fax number (212) 815-5802.

     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 by
first-class mail, postage prepaid to such Registered Holders as their names and addresses appear in
the Security Register within the time prescribed. Where this Indenture provides for notice in any
manner, such notice may be waived in writing by the Person entitled to receive such notice,

72

 

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 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, and any notice which is mailed in the manner herein provided shall be
conclusively presumed to have been duly given.

     In case, by reason of the suspension of or irregularities in regular mail service, it shall be
impracticable to mail notice to the Company, the Guarantor and Securityholders when such notice is
required to be given pursuant to any provision of this Indenture, then any manner of giving such
notice as shall be satisfactory to the Trustee shall be deemed to be a sufficient giving of such
notice.

     SECTION 11.5 Officers’ Certificates and Opinions of Counsel; Statements to Be Contained
Therein. Upon any application or demand by the Company or the Guarantor to the Trustee to take
any action under any of the provisions of this Indenture, the Company or the Guarantor shall
furnish to the Trustee an Officers’ Certificate or Guarantor’s Officer’s Certificate, as the case
may be, stating that all conditions precedent provided for in this Indenture relating to the
proposed action have been complied with and an Opinion of Counsel stating that in the opinion of
such counsel all such conditions precedent have been complied with, except that in the case of any
such application or demand as to which the furnishing of such documents is specifically required by
any provision of this Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished.

     Each certificate or opinion provided for in this Indenture (except for the certificates
specified in Sections 3.9 and 3.10) and delivered to the Trustee with respect to compliance with a
condition or covenant provided for in this Indenture shall include (a) a statement that the person
making such certificate or opinion has read such covenant or condition, (b) a brief statement as to
the nature and scope of the examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based, (c) a statement that, in the opinion of such
person, such person has made such examination or investigation as is necessary to enable such
person to express an informed opinion as to whether or not such covenant or condition has been
complied with and (d) a statement as to whether or not, in the opinion of such person, such
condition or covenant has been complied with.

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

73

 

may be based as aforesaid are erroneous, or in the exercise of reasonable care should know
that the same are erroneous.

     Any certificate, statement or opinion of an officer of the Company or the Guarantor or of
counsel may be based, insofar as it relates to accounting matters, upon a certificate or opinion of
or representations by an accountant or firm of accountants in the employ of the Company or the
Guarantor, unless such officer or counsel, as the case may be, knows that the certificate or
opinion or representations with respect to the accounting matters upon which his certificate,
statement or opinion may be based as aforesaid are erroneous, or in the exercise of reasonable care
should know that the same are erroneous.

     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 as to such matters in one or several documents.

     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.

     Any certificate or opinion of any independent firm of public accountants filed with the
Trustee shall contain a statement that such firm is independent.

     SECTION 11.6 Payments Due on Saturdays, Sundays and Holidays. Unless otherwise
specified in the certificate representing the Securities of a Series, the date of Maturity of
interest on or principal of the Securities of any Series or the date fixed for redemption or
repayment of any such Security shall not be a Business Day, then payment of interest or principal
need not be made on such date, but may be made on the next succeeding Business Day with the same
force and effect as if made on the date of Maturity or the date fixed for redemption, and no
interest shall accrue for the period after such date.

     SECTION 11.7 Conflict of Any Provision of Indenture with Trust Indenture Act of 1939.
If this Indenture has been qualified under the Trust Indenture Act with respect to a particular
Series of Securities, and to the extent that any provision of this Indenture, with respect to said
Series of Securities, limits, qualifies or conflicts with another provision included in this
Indenture which is required to be included herein by any of Sections 310 to 317, inclusive, of the
Trust Indenture Act, such required provision shall control with respect to such Series of
Securities.

     SECTION 11.8 New York Law to Govern; Submission to Jurisdiction; Waiver of Trial by
Jury. This Indenture and each Security shall be deemed to be a contract under the laws of the
State of New York, and for all purposes shall be construed in accordance with the laws of such
State.

     Each of the Company and the Guarantor submits to the jurisdiction of the courts of the State
of New York and the courts of the United States, in each case located in the Borough of Manhattan,
The City of New York and State of New York over any suit, action or proceeding

74

 

arising under or in connection with this Indenture or the transactions contemplated hereby or
the Securities. Each of the Company and the Guarantor waives any objection that it may have to the
venue of any suit, action or proceeding arising under or in connection with this Indenture or the
transactions contemplated hereby or the Securities in the courts of the State of New York or the
courts of the United States, in each case located in the Borough of Manhattan, The City of New York
and State of New York, or that such suit, action or proceeding brought in the courts of the State
of New York or the courts of the United States, in each case located in the Borough of Manhattan,
The City of New York and State of New York, was brought in an inconvenient court and agrees not to
plead or claim the same.

     Each of the Company and Guarantor agrees that service of all writs, process and summonses in
any suit, action or proceeding arising under or in connection with this Indenture or the
transactions contemplated hereby or the Securities against the Company in any court of the State of
New York or any United States Federal court, in each case, sitting in the Borough of Manhattan,
City and State of New York, may be made upon the CT Corporation System at 111 Eighth Avenue, New
York, New York 10011, whom the Company irrevocably appoints as its authorized agent for service of
process. Each of the Company and the Guarantor represents and warrants that the CT Corporation
System has agreed to act as the Company’s and Guarantor’s agent for service of process. Each of
the Company and the Guarantor agrees that such appointment shall be irrevocable until the
irrevocable appointment by the Company and Guarantor of a successor in The City of New York as its
authorized agent for such purpose and the acceptance of such appointment by such successor. Each
of the Company and Guarantor further agrees to take any and all action, including the filing of any
and all documents and instruments that may be necessary to continue such appointment in full force
and effect as aforesaid. If the CT Corporation System shall cease to act as the agent for service
of process for the Company and the Guarantor, the Company and the Guarantor shall appoint without
delay, another such agent and provide prompt written notice to the Trustee of such appointment.

     EACH PARTY HERETO, AND EACH HOLDER OF A SECURITY BY ACCEPTANCE THEREOF, HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF
ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS INDENTURE.

     SECTION 11.9 Counterparts. This Indenture may be executed in any number of
counterparts, each of which shall be an original; but such counterparts shall together constitute
but one and the same instrument.

     SECTION 11.10 Effect of Headings. The Article and Section headings herein and the
Table of Contents are for convenience only and shall not affect the construction hereof.

     SECTION 11.11 Determination of Principal Amount. In determining whether the Holders
of the requisite principal amount of outstanding Securities of any Series have given any request,
demand, authorization, direction, notice, consent or waiver hereunder, whether a quorum is present
at a meeting of Holders of Securities or whether sufficient funds are available for redemption or
for any other purpose, the principal amount of an Original Issue Discount Security that shall be
deemed to be outstanding for such purposes shall be the amount of the principal

75

 

thereof that would be due and payable as of the date of such determination upon a declaration
of acceleration of the Maturity thereof pursuant to Section 5.1 and the principal amount of any
Securities denominated in a Foreign Currency that shall be deemed to be outstanding for such
purposes shall be determined by converting the Foreign Currency into Dollars at the Market Exchange
Rate as of the date of such determination.

ARTICLE TWELVE

REDEMPTION OF SECURITIES AND SINKING FUNDS

     SECTION 12.1 Applicability of Article. The provisions of this Article shall be
applicable to the Securities of any Series which are redeemable before their Maturity or to any
sinking fund for the retirement of Securities of a Series except as otherwise specified as
contemplated by Section 2.3 for Securities of such Series.

     SECTION 12.2 Notice of Redemption; Partial Redemptions. Notice of redemption to the
Holders of Securities of any Series to be redeemed as a whole or in part at the option of the
Company shall be given by giving notice of such redemption as provided in Section 11.4, at least 30
days and not more than 60 days prior to the date fixed for redemption to such Holders of Securities
of such Series. Failure to give notice by mail, or any defect in the notice to the Holder of any
Security of a Series designated for redemption as a whole or in part shall not affect the validity
of the proceedings for the redemption of any other Security of such Series.

     The notice of redemption to each such Holder shall identify the Securities to be redeemed
(including “CUSIP” or “ISIN” numbers), specify the date fixed for redemption, the redemption price,
the Place or Places of Payment, that payment will be made upon presentation and surrender of such
Securities, and that such redemption is pursuant to the mandatory or optional sinking fund, or
both, if such be the case, that interest accrued to the date fixed for redemption will be paid as
specified in such notice and that on and after said date interest thereon or on the portions
thereof to be redeemed will cease to accrue and that, if less than all of the Outstanding
Securities of a Series are to be redeemed, the identification and principal amount of the
Securities to be redeemed. If less than all of the Securities of any Series and to be redeemed,
the notice of redemption shall specify the numbers of the Securities of such Series to be redeemed.
In case any Security of a Series is to be redeemed in part, the notice of redemption shall state
the portion of the principal amount thereof to be redeemed and shall state that on and after the
date fixed for redemption, upon surrender of such Security, a new Security or Securities of such
Series in principal amount equal to the unredeemed portion thereof will be issued.

     The notice of redemption of Securities of any Series to be redeemed at the option of the
Company shall be given by the Company or, at the Company’s request, by the Trustee in the name and
at the expense of the Company. The Company shall give the Trustee at least 45 days prior written
notice of any redemption hereunder (unless a shorter notice shall be satisfactory to the Trustee).

     Not later than 11:00 a.m., New York time, on the Redemption Date specified in the notice of
redemption given as provided in this Section, the Company will have on deposit with the Trustee or
with one or more paying agents (or, if the Company is acting as its own paying

76

 

agent, set aside, segregate and hold in trust as provided in Section 3.4) an amount of money
in the currency in which the Securities of such Series are payable (except as otherwise specified
pursuant to Section 2.3 and except as provided in Sections 2.12(b), (d) and (e) of this Indenture)
sufficient to redeem on the Redemption Date all the Securities of such Series so called for
redemption at the appropriate redemption price, together with accrued interest to the date fixed
for redemption. If less than all the Outstanding Securities of a Series are to be redeemed, the
Company will deliver to the Trustee at least 60 days prior to the date fixed for redemption an
Officers’ Certificate stating the aggregate principal amount of Securities to be redeemed.

     If less than all the Securities of a Series are to be redeemed, the Trustee shall select, in
such manner as it shall deem appropriate and fair, Securities of such Series to be redeemed in
whole or in part. Securities may be redeemed in part in multiples equal to the minimum authorized
denomination for Securities of such Series or any multiple thereof. The Trustee shall promptly
notify the Company in writing of the Securities of such Series selected for redemption and, in the
case of any Securities of such Series 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 of any Series shall relate, in the case of any
Security redeemed or to be redeemed only in part, to the portion of the principal amount of such
Security which has been or is to be redeemed.

     SECTION 12.3 Payment of Securities Called for Redemption. If notice of redemption has
been given as above provided, the Securities or portions of Securities specified in such notice
shall become due and payable on the date and at the place stated in such notice at the applicable
redemption price, together with interest accrued to the date fixed for redemption, and on and after
said date (unless the Company shall default in the payment of such Securities at the redemption
price, together with interest accrued to said date) interest on the Securities or portions of
Securities so called for redemption shall cease to accrue and, except as provided in Sections 6.5
and 10.4, such Securities shall cease from and after the date fixed for redemption to be entitled
to any benefit or security under this Indenture, and the Holders thereof shall have no right in
respect of such Securities except the right to receive the redemption price thereof and unpaid
interest to the date fixed for redemption. On presentation and surrender of such Securities at a
place of payment specified in said notice, said Securities or the specified portions thereof shall
be paid and redeemed by the Company at the applicable redemption price, together with interest
accrued thereon to the date fixed for redemption; provided that any semi-annual payment of interest
on Securities becoming due on the date fixed for redemption shall be payable to the Holders of such
Securities registered as such on the relevant record date subject to the terms and provisions of
Section 2.4 hereof.

     If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal shall, until paid or duly provided for, bear interest from the date fixed
for redemption at the rate of interest borne by the Security.

     Upon presentation of any Security redeemed in part only, the Company shall execute and the
Trustee shall authenticate and deliver to or on the order of the Holder thereof, at the expense of
the Company, a new Security or Securities, of authorized denominations, in principal amount equal
to the unredeemed portion of the Security so presented.

77

 

     SECTION 12.4 Exclusion of Certain Securities from Eligibility for Selection for
Redemption. Securities shall be excluded from eligibility for selection for redemption if they
are identified by registration and certificate number in a written statement signed by an Officer
of the Company and delivered to the Trustee at least 40 days prior to the last date on which notice
of redemption may be given as being owned of record and beneficially by, and not pledged or
hypothecated by, either (a) the Company, (b) the Guarantor or (c) an entity specifically identified
in such written statement directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company.

     SECTION 12.5 Mandatory and Optional Sinking Funds. 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.”
The date on which a sinking fund payment is to be made is herein referred to as the “sinking fund
payment date.”

     In lieu of making all or any part of any mandatory sinking fund payment with respect to any
Series of Securities in cash, the Company or the Guarantor may at its option (a) deliver to the
Trustee Securities of such Series theretofore purchased or otherwise acquired (except upon
redemption pursuant to the mandatory sinking fund) by the Company or the Guarantor or receive
credit for Securities of such Series (not previously so credited) theretofore purchased or
otherwise acquired (except as aforesaid) by the Company or the Guarantor and delivered to the
Trustee for cancellation pursuant to Section 2.10, (b) receive credit for optional sinking fund
payments (not previously so credited) made pursuant to this Section, or (c) receive credit for
Securities of such Series (not previously so credited) redeemed by the Company or the Guarantor
through any optional redemption provision contained in the terms of such Series. Securities so
delivered or credited shall be received or credited by the Trustee at the sinking fund redemption
price specified in such Securities.

     On or before the forty-fifth day next preceding each sinking fund payment date for any Series
of Securities, the Company or the Guarantor will deliver to the Trustee a written statement (which
need not contain the statements required by Section 11.5) signed by an Officer of the Company or
the Guarantor, as the case may be, (a) specifying the portion of the mandatory sinking fund payment
to be satisfied by payment of cash in the currency in which the Securities of such Series are
payable (except as otherwise specified pursuant to Section 2.3 for the Securities of such Series
and except as provided in Section 2.12(b), (d) and (e) hereof), and the portion to be satisfied by
credit of Securities of such Series, (b) stating that none of the Securities of such Series has
theretofore been so credited, (c) stating that no defaults in the payment of interest or Events of
Default with respect to such Series have occurred (which have not been waived or cured) and are
continuing, (d) stating whether or not the Company or the Guarantor, as the case may be, intends to
exercise its right to make an optional sinking fund payment with respect to such Series and, if so,
specifying the amount of such optional sinking fund payment which the Company or the Guarantor, as
the case may be, intends to pay on or before the next succeeding sinking fund payment date and (e)
specifying such sinking fund payment date. Any Securities of such Series to be credited and
required to be delivered to the Trustee in order for the Company or the Guarantor, as the case may
be, to be entitled to credit therefor as aforesaid which have not theretofore been delivered to the
Trustee shall be delivered for cancellation

78

 

pursuant to Section 2.10 to the Trustee with such written statement (or reasonably promptly
thereafter if acceptable to the Trustee). Such written statement shall be irrevocable and upon its
receipt by the Trustee the Company and the Guarantor shall become unconditionally obligated to make
all the cash payments or payments therein referred to, if any, on or before the next succeeding
sinking fund payment date. Failure of the Company or the Guarantor, on or before any such sixtieth
day, to deliver such written statement and Securities specified in this paragraph, if any, shall
not constitute a default but shall constitute, on and as of such date, the irrevocable election of
the Company or the Guarantor (i) that the mandatory sinking fund payment for such Series due on the
next succeeding sinking fund payment date shall be paid entirely in cash (in the currency described
above) without the option to deliver or credit Securities of such Series in respect thereof and
(ii) that the Company or the Guarantor will make no optional sinking fund payment with respect to
such Series as provided in this Section.

     If the sinking fund payment or payments (mandatory or optional or both) to be made in cash (in
the currency described above) on the next succeeding sinking fund payment date plus any unused
balance of any preceding sinking fund payments made in cash shall exceed $100,000, or the
equivalent in the currency in which the Securities of such Series are payable (or a lesser sum if
the Company or the Guarantor shall so request) with respect to the Securities of any particular
Series, such cash shall be applied on the next succeeding sinking fund payment date to the
redemption of Securities of such Series at the sinking fund redemption price together with accrued
interest to the date fixed for redemption. If such amount shall be $100,000, or the equivalent in
the currency in which the Securities of such Series are payable, or less and the Company or the
Guarantor makes no such request then it shall be carried over until a sum in excess of $100,000, or
the equivalent in the currency in which the Securities of such Series are payable, is available.
The Trustee shall select, in the manner provided in Section 12.2, for redemption on such sinking
fund payment date a sufficient principal amount of Securities of such Series to absorb said cash,
as nearly as may be possible, and shall (if requested in writing by the Company or the Guarantor)
inform the Company or the Guarantor of the serial numbers of the Securities of such Series (or
portions thereof) so selected. Securities of any Series which are identified by registration and
certificate number in an Officers’ Certificate at least 60 days prior to the sinking fund payment
date as being beneficially owned by, and not pledged or hypothecated by, the Company, the Guarantor
or an entity directly or indirectly controlling or controlled by or under direct or indirect common
control with the Company or the Guarantor shall be excluded from Securities of such Series eligible
for selection for redemption. The Trustee, in the name and at the expense of the Company or the
Guarantor (or the Company or the Guarantor, if it shall so notify the Trustee in writing) shall
cause notice of redemption of the Securities of such Series to be given in substantially the manner
provided in Section 12.2 (and with the effect provided in Section 12.3) for the redemption of
Securities of such Series in part at the option of the Company. The amount of any sinking fund
payments not so applied or allocated to the redemption of Securities of such Series shall be added
to the next cash sinking fund payment for such Series and, together with such payment, shall be
applied in accordance with the provisions of this Section. Any and all sinking fund moneys held on
the Stated Maturity date of the Securities of any particular Series (or earlier, if such Maturity
is accelerated), which are not held for the payment or redemption of particular Securities of such
Series shall be applied, together with other moneys, if necessary, sufficient for the purpose, to
the payment of the principal of, and interest on, the Securities of such Series at Maturity.

79

 

     The Trustee shall not convert any currency in which the Securities of such Series are payable
for the purposes of such sinking fund application unless specifically requested to do so by the
Company or the Guarantor, and any such conversion agreed to by the Trustee in response to such
request shall be for the account and at the expense of the Company or the Guarantor and shall not
affect the Company’s or the Guarantor’s obligation to pay the Holders in the currency to which such
Holder may be entitled.

     Not later than 9:00 a.m., New York time, on the sinking fund payment date, the Company or the
Guarantor shall have paid to the Trustee in cash (in the currency described in the third paragraph
of this Section 12.5) or shall otherwise provide for the payment of all interest accrued to the
date fixed for redemption on Securities to be redeemed on the next following sinking fund payment
date.

     The Trustee shall not redeem or cause to be redeemed any Securities of a Series with sinking
fund moneys or mail or publish any notice of redemption of Securities for such Series by operation
of the sinking fund during the continuance of a default in payment of interest on such Securities
or of any Event of Default except that, where the mailing or publication of notice of redemption of
any Securities shall theretofore have been made, the Trustee shall redeem or cause to be redeemed
such Securities, provided that it shall have received from the Company or the Guarantor a sum
sufficient for such redemption. Except as aforesaid, any moneys in the sinking fund for such
Series at the time when any such Event of Default shall occur, and any moneys thereafter paid into
the sinking fund, shall, during the continuance of such Event of Default, be deemed to have been
collected under Article Five and held for the payment of all such Securities. In case such Event
of Default shall have been waived as provided in Section 5.10 or the default cured on or before the
sixtieth day preceding the sinking fund payment date in any year, such moneys shall thereafter be
applied on the next succeeding sinking fund payment date in accordance with this Section to the
redemption of such Securities.

     SECTION 12.6 Repayment at the Option of the Holders. Securities of any Series which
are repayable at the option of the Holders thereof before their Stated Maturity shall be repaid in
accordance with the terms of the Securities of such Series.

     The repayment of any principal amount of Securities pursuant to such option of the Holder to
require repayment of Securities before their Stated Maturity, for purposes of Section 10.1, shall
not operate as a payment, redemption or satisfaction of the indebtedness represented by such
Securities unless and until the Company or the Guarantor, at its option, shall deliver or surrender
the same to the Trustee with a directive that such Securities be cancelled.

     SECTION 12.7 Optional Redemption For Tax Reasons. The Company shall be entitled to
redeem all, but not part, of the Securities of any Series if as a result of any change in or
amendment to the laws, regulations or rulings of the Relevant Tax Jurisdiction or any change in the
official application or interpretation of such laws, regulations or rulings, or any change in the
official application or interpretation of, or any execution of or amendment to, any treaty or
treaties affecting taxation to which such Relevant Tax Jurisdiction is a party (a “Change in Tax
Law”), the Payor is or would be required on the occasion of the next payment of principal or
interest in respect of the Securities of such Series to pay Additional Amounts pursuant to Section
and the payment of such Additional Amounts cannot be avoided by the use of any

80

 

reasonable measures available to the Payor. The Change in Tax Law must become effective on or
after the original issue date with respect to the Securities of such Series. Notwithstanding
anything to the contrary contained in this Article Twelve, the Company must (i) deliver to the
trustee at least 30 days before the redemption date an Officers’ Certificate and an opinion of
independent legal counsel of recognized standing to the effect that the Payor has or will become
obligated to pay Additional Amounts as a result of such Change in Tax Law and (ii) provide the
holders with notice of the intended redemption at least 30 days and no more than 60 days before the
redemption date. The redemption price will equal the principal amount of the Securities of such
Series plus accrued interest to the redemption date.

ARTICLE THIRTEEN

GUARANTEE AND INDEMNITY

     SECTION 13.1 The Guarantee.

     (a) The Guarantor hereby unconditionally guarantees to each Holder of a Security authenticated
and delivered by the Trustee the due and punctual payment of the principal of, any premium and
interest on, and any Additional Amounts with respect to such Security and the due and punctual
payment of the sinking fund payments (if any) provided for pursuant to the terms of such Security,
when and as the same shall become due and payable, whether at Maturity, by acceleration,
redemption, repayment or otherwise, in accordance with the terms of such Security and of this
Indenture. In case of the failure of the Company punctually to pay any such principal, premium,
interest, Additional Amounts or sinking fund payment, the Guarantor hereby agrees to cause any such
payment to be made punctually when and as the same shall become due and payable, whether at
Maturity, upon acceleration, redemption, repayment or otherwise, and as if such payment were made
by the Company. The aforesaid Guarantee is one of payment and not of collection.

     (b) The Guarantor’s obligations hereunder shall rank pari passu with all other senior
unsecured debt obligations of the Guarantor (other than any obligations preferred by statute or by
operation of law).

     (c) The Guarantor’s obligation under Section 13.1(a) shall terminate if and when the Company
ceases to be a subsidiary of the Guarantor; provided, however, that immediately prior to such
termination, the Guarantor shall automatically assume, without any action by the Holders or the
Trustee or any further action on behalf of the Guarantor, the due and punctual payment of the
principal of, any premium and interest on and any Additional Amounts with respect to all the
Securities and the performance of every obligation in this Indenture and the Outstanding Securities
on the part of the Company to be performed or observed with the same effect as if the Guarantor
had been named as an issuer herein. Upon such an assumption, the Guarantor shall execute a
supplemental indenture evidencing its assumption of all such rights and obligations of the Company,
and the Company shall be released from its liabilities hereunder and under such Securities as
obligor on the Securities of such Series.

     (d) The Guarantor may, without the consent of the Holders, assume all of the rights and
obligations of the Company hereunder with respect to a Series of Securities and under the

81

 

Securities of such Series if, after giving effect to such assumption, no Event of Default or
event which with the giving of notice or lapse of time, or both, would become an Event of Default,
shall have occurred and be continuing. Upon such an assumption, the Guarantor shall execute a
supplemental indenture evidencing its assumption of all such rights and obligations of the Company
and the Company shall be released from its liabilities hereunder and under such Securities as
obligor on the Securities of such Series.

     (e) The Guarantor shall assume all of the rights and obligations of the Company hereunder with
respect to a Series of Securities and under the Securities of such Series if, upon a default by the
Company in the due and punctual payment of the principal of, any premium and interest on and any
Additional Amounts with respect to all such Securities, the Guarantor is prevented by any court
order or judicial proceeding from fulfilling its obligations under Section 13.1(a) with respect to
such Series of Securities. Such assumption shall result in the Securities of such Series becoming
the direct obligations of the Guarantor and shall be effected without the consent of the Holders of
the Securities of any Series. Upon such an assumption, the Guarantor shall execute a supplemental
indenture evidencing its assumption of all such rights and obligations of the Company, and the
Company shall be released from its liabilities hereunder and under such Securities as obligor on
the Securities of such Series.

     SECTION 13.2 Guarantee Unconditional, etc. The Guarantor hereby agrees that its
obligations hereunder shall be as principal and not merely as surety, and shall be absolute,
irrevocable and unconditional, irrespective of, and shall be unaffected by, any invalidity,
irregularity or unenforceability of any Security or this Indenture, any failure to enforce the
provisions of any Security or this Indenture, or any waiver, modification, consent or indulgence
granted with respect thereto by the Holder of such Security or the Trustee, the recovery of any
judgment against the Company or any action to enforce the same, or any other circumstances which
may otherwise constitute a legal or equitable discharge of a surety or guarantor. The Guarantor
hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event
of merger, insolvency or bankruptcy of the Company, any right to require a proceeding first against
the Company, protest or notice with respect to any such Security or the Indebtedness evidenced
thereby and all demands whatsoever, and covenants that this Guarantee will not be discharged except
by payment in full of the principal of, any premium and interest on, and any Additional Amounts and
sinking fund payments required with respect to, the Securities and the complete performance of all
other obligations contained in the Securities. The Guarantor further agrees, to the fullest extent
that it lawfully may do so, that, as between the Guarantor, on the one hand, and the Holders and
the Trustee, on the other hand, the Maturity of the obligations guaranteed hereby may be
accelerated as provided in Section 5.1 hereof for the purposes of this Guarantee, notwithstanding
any stay, injunction or prohibition extant under any bankruptcy, insolvency, reorganization or
other similar law of any jurisdiction preventing such acceleration in respect of the obligations
guaranteed hereby.

     SECTION 13.3 Reinstatement. This Guarantee shall continue to be effective or be
reinstated, as the case may be, if at any time payment on any Security, in whole or in part, is
rescinded or must otherwise be restored to the Company or the Guarantor upon the bankruptcy,
liquidation or reorganization of the Company or otherwise.

82

 

     SECTION 13.4 Subrogation. The Guarantor shall be subrogated to all rights of the
Holder of any Security against the Company in respect of any amounts paid to such Holder by the
Guarantor pursuant to the provisions of this Guarantee; provided, however, that the Guarantor shall
not be entitled to enforce, or to receive any payments arising out of or based upon, such right of
subrogation until the principal of, any premium and interest on, and any Additional Amounts and
sinking fund payments required with respect to, all Securities shall have been paid in full.

     SECTION 13.5 Indemnity. As a separate and alternative stipulation, the Guarantor
unconditionally and irrevocably agrees that any sum expressed to be payable by the Company under
this Indenture, the Securities but which is for any reason (whether or not now known or becoming
known to the Company, the Guarantor, the Trustee or any Holder of any Security) not recoverable
from the Guarantor on the basis of a guarantee will nevertheless be recoverable from it as if it
were the sole principal debtor and will be paid by it to the Trustee on demand. This indemnity
constitutes a separate and independent obligation from the other obligations in this Indenture,
gives rise to a separate and independent cause of action and will apply irrespective of any
indulgence granted by the Trustee or any Holder of any Security.

[signature page follows]

83

 

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

	 	 	 	 	 
	 	MAX USA HOLDINGS LTD.,

     as Issuer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	MAX CAPITAL GROUP LTD.,

     as Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	[                                        ],

     as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

S-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]