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Exhibit 4.3  

 
 

QWEST CORPORATION
  Officers' Certificate

        Pursuant
to Sections 2.02, 2.03 and 11.04 of the Indenture, dated as of October 15, 1999 (the "Indenture"), between Qwest Corporation (the "Corporation") and Bank One Trust
Company, National Association, as trustee (the "Trustee"), each of the undersigned, the President and the Vice President and Controller of the Corporation, hereby certifies, on the Corporation's
behalf, as follows: 

        (1)   The
issuance of Securities of the series designated as the "87/8% Notes due March 15, 2012" in an aggregate principal amount of $1,500,000,000 (the
"Notes") have been approved and authorized in accordance with the provisions of the Indenture by resolutions adopted by the Board of Directors of the Corporation by unanimous written consent effective
as of March 7, 2002; such resolutions have not been amended, modified or rescinded and remain in full force and effect; and such resolutions are the only resolutions adopted by the
Corporation's Board of Directors, or any committee of such Board of Directors, relating to the Notes; 

        (2)   The
Notes are being sold by the Corporation pursuant to an Offering Memorandum, dated March 7, 2002, as supplemented by the Supplement to Confidential Offering
Memorandum, dated March 11, 2002 (the "Offering Memorandum"); 

        (3)   The
terms of the series of Notes shall be as follows: 

	(a)
	The
title of the Notes is "87/8% Notes due March 15, 2012".

	(b)
	The
Notes are to be issued in an aggregate principal amount of $1,500,000,000.

	(c)
	The
principal amount of the Notes shall be payable on March 15, 2012.

	(d)
	The
Notes shall bear interest at a rate of 87/8% per annum, payable as set forth in the Notes attached hereto as Appendix A which is hereby incorporated in and
expressly made a part of this Officers' Certificate.

	(e)
	Provisions
relating to form, transfer and exchange of the Notes are set forth in Appendix A. The certificates for the Notes shall be in substantially the form of
Appendix A.

	(f)
	The
Notes will be issued and transferable only in denominations of $1,000 or any amount in excess thereof which is an integral multiple of $1,000. The Notes may be issued in
book-entry form and, if so issued, will be represented by Global Notes (as defined in Appendix A) delivered to the Depositary (as defined in Appendix A), and recorded in the book-entry
system maintained by the Depositary, all in accordance with the provisions set forth in Appendix A.

	(g)
	Payments
of principal, premium, if any, and interest on the Notes will be made to the Depositary, or its nominee, as the case may be, as the registered owner or holder of the Global
Notes. In the event that any of the Notes are issued in certificated form in exchange for the Global Notes, as set forth in Appendix A, principal and interest thereon will be payable at the
office of the Paying Agent in The City of New York designated for such purpose; provided that payment of interest, other than interest payable at maturity or upon redemption, may be made at the option
of the Corporation by check mailed by the Paying Agent to the address of the person entitled thereto as shown on the debt securities register.

	(h)
	The
Trustee shall be the Registrar and initial transfer agent for the Notes (subject to the Corporation's right to remove the Trustee as such transfer agent and, from time time, to
designate one or more other transfer agents and to rescind from time to time any such designations). 

 

	(i)
	The
Notes are redeemable at the option of the Corporation as described in the Offering Memorandum. The Notes will not be subject to any sinking fund.

	(j)
	The
Notes shall be sold by the Corporation to Credit Suisse First Boston Corporation, Banc of America Securities LLC, Lehman Brothers Inc., ABN AMRO Incorporated, Commerzbank Capital
Markets Corp. and First Union Securities, Inc., and the several Initial Purchasers named in Schedule I of the Purchase Agreement (collectively, the "Initial Purchasers") dated March 7,
2002 (the "Purchase Agreement"), among the Company and the Initial Purchasers. The Notes will be sold to the Initial Purchasers at a price equal to 96.1054% of the principal amount thereof; the
Initial Purchasers will offer the Notes from time to time for sale in one or more negotiated transactions, or otherwise, at market prices prevailing at the time of sale, at prices related to such
market prices or at negotiated prices. 

        (4)   All
covenants or conditions precedent provided for in the Indenture relating to the establishment of the series of Securities herein described, the terms of such series,
and the authentication of the Notes have been complied with. 

        Each
of the undersigned states that he has read and is familiar with the provisions of Article Two of the Indenture relating to the issuance of Securities thereunder; that he is
generally familiar with the other provisions of the Indenture and with the affairs of the Corporation and its corporate acts and proceedings; and that in his opinion, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as to whether or not the covenants and conditions referred to above have been complied with. 

        Debevoise &
Plimpton, as counsel for the Initial Purchasers, and Holme Roberts & Owen LLP and O'Melveny & Myers LLP as counsel for the Company, may each rely upon
this certificate in delivering their respective opinions pursuant to Section 6(j), 6(e) and 6(f), respectively, of the Purchase Agreement. 

        Capitalized
terms used herein and not otherwise defined herein have the meanings specified in the Indenture. 

[The
remainder of this page intentionally left blank.] 

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        IN
WITNESS WHEREOF, we have hereunto signed our names and affixed the seal of the Corporation. 

Dated
as of March 12, 2002 

	

 	
 	

By:	

/s/  JAMES A. SMITH      

	 	 	 	Name:	James A. Smith
	 	 	 	Title:	President
	

 	
 	

By:	

/s/  BRYAN TREADWAY      

	 	 	 	Name:	Bryan Treadway
	 	 	 	Title:	Vice President and Controller

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FORM OF RULE 144A GLOBAL NOTE  

        TRANSFERS OF THIS NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) ("DTC"),
NOMINEES OF DTC OR A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE, AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH
HEREIN AND IN THE OFFICERS' CERTIFICATE OF THE COMPANY (AS DEFINED BELOW) DATED MARCH 12, 2002 PURSUANT TO THE INDENTURE REFERRED TO HEREIN. 

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

        THE
HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF IS DEEMED TO HAVE AGREED TO BE BOUND BY THE PROVISIONS OF A REGISTRATION RIGHTS AGREEMENT AMONG THE COMPANY AND THE INITIAL PURCHASERS
NAMED THEREIN, DATED AS OF MARCH 12, 2002 (THE "REGISTRATION RIGHTS AGREEMENT"). THE COMPANY WILL PROVIDE A COPY OF THE REGISTRATION RIGHTS AGREEMENT TO A HOLDER WITHOUT CHARGE UPON WRITTEN REQUEST TO
THE COMPANY AT ITS PRINCIPAL PLACE OF BUSINESS. 

        THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS NOTE NOR
ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. 

        THE
HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE, PRIOR TO THE DATE (THE "RESALE RESTRICTION TERMINATION DATE") WHICH IS TWO YEARS
AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE THEREOF WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF THIS NOTE), ONLY (A) TO THE
COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT. (C) FOR SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A
UNDER THE SECURITIES ACT ("RULE 144A"), TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A) THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER
THE SECURITIES ACT OR (E) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S AND THE TRUSTEE'S (AS DEFINED BELOW) RIGHT
PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY 

 

TO
EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. 

2

 

	REGISTERED

No.

CUSIP No. 74 913 G AB1	 	 	 	PRINCIPAL AMOUNT

$

QWEST CORPORATION

87/8% Notes due March 15, 2012 

        QWEST
CORPORATION, a corporation duly organized and existing under the laws of the State of Colorado (such corporation, and its successors and assigns under the Indenture hereinafter
referred to, being herein called the "Company"), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of
                                         
                                          
                                          
                   
($                        ) (or such lesser amount as shall be listed on the Schedule of Increases or Decreases in Global
Note attached
hereto) on March 15, 2012 (the "Maturity Date"), unless previously redeemed on any Redemption Date (as defined below), by wire transfer of immediately available funds of such coin or currency
of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts and to pay interest thereon semiannually on each March 15 and
September 15, commencing September 15, 2002 (each, an "Interest Payment Date"), and on the Maturity Date at the rate per annum specified in the title of this Note, from March 12,
2002 (or from the most recent Interest Payment Date to which interest has been paid or duly provided for) until payment of said principal sum has been made or duly provided for. Notwithstanding the
foregoing, if the Company shall default in the payment of interest due on any Interest Payment Date, then this Note shall bear interest from the most recent Interest Payment Date to which interest has
been paid or, if no interest has been paid on this Note, from March 12, 2002. The interest so payable on any Interest Payment Date, subject to certain exceptions provided in the Indenture
referred to herein, will be paid to the person in whose name this Note shall be registered at the close of business on the fifteenth day immediately prior to such Interest Payment Date or Maturity
Date. If any Interest Payment Date, Maturity Date or redemption date is a Legal Holiday (as defined in the Indenture) in New York, New York, the required payment shall be made on the next succeeding
day that is not a Legal Holiday as if it was made on the date such payment was due and no interest will accrue on the amount so payable for the period from and after such Interest Payment Date,
Maturity Date or redemption date, as the case may be, to such next succeeding day. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. 

        This
Note is one of the duly authorized series of Securities of the Company, designated as the Company's "87/8% Notes due March 15, 2012" (the "Notes"), initially
limited to the aggregate principal amount of $1,500,000,000, all issued or to be issued under and pursuant to an Indenture dated as of October 15, 1999, as amended, modified or supplemented
from time to time (as so amended, modified or supplemented, the "Indenture"), duly executed and delivered by the Company to Bank One Trust Company, National Association, as trustee (hereinafter
referred to as the "Trustee"), to which Indenture and all Indentures supplemental thereto reference is hereby made for a description of the rights, limitation of rights, obligations, duties and
immunities thereunder of the Trustee, the Company and the Holders (the words "Holders" or "Holder" meaning the registered holders or registered holder of the Notes). Exchange Notes (as such term is
defined in the Registration Rights Agreement referred to below) shall be deemed to be of the same series as the Notes for purposes of the Indenture. 

        The
Holder of this Note is entitled to the benefits of the Registration Rights Agreement, dated as of March 12, 2002, among the Company and the Initial Purchasers named therein
(as the same may be amended from time to time, the "Registration Rights Agreement"). In the event that (i) the Exchange Offer Registration Statement (as such term is defined in the Registration
Rights Agreement) is not filed with the Securities and Exchange Commission (the "Commission") on or prior to the 150th calendar day following March 12, 2002 (the "Closing Date"),
(ii) the Exchange Offer Registration 

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Statement
has not been declared effective by the Commission on or prior to the 210th calendar day following the Closing Date, (iii) the Exchange Offer (as such term is defined in
the Registration Rights Agreement) is not consummated or a Shelf Registration Statement as such term is defined in the Registration Rights Agreement) is not declared effective by the Commission on or
prior to the 240th calendar day following the Closing Date or (iv) the Shelf Registration Statement has been declared effective but such Shelf Registration Statement ceases to be
effective or the Prospectus (as such term is defined in the Registration Rights Agreement) ceases to be usable for resales (A) at any time prior to the expiration of the Effectiveness Period
(as such term is defined in the Registration Rights Agreement) or (B) if related to corporate developments, public filings or similar events or to correct a material misstatement or omission in
the Prospectus, for more than 60-days (whether or not consecutive) in any twelve-month period, then in each such case the Special Interest Premium (as such term is defined in the
Registration Rights Agreement) shall accrue in respect of this Note from and including the next calendar day following each of (a) such 150-day period in the case of
clause (i) above, (b) such 210-day period in the case of clause (ii) above, (c) such 240-day period in the case of clause (iii) above, and
from and including such day (in the ease of clause (iv)(A) above), or the 61st day after (in the case of clause (iv)(B) above), such Shelf Registration Statement ceases to be effective
or the Prospectus ceases to be usable for resales, in each case at a rate equal to 0.25% per annum. Any Special Interest Premium due will be payable in cash on the next succeeding March 15 or
September 15, as the case may be, to Holders on the relevant Regular Record Dates for the payment of interest. The aggregate amount of the Special Interest Premium in respect of this Note
payable pursuant to the above provisions shall in no event exceed 0.25% per annum; provided, however, that if the Exchange Offer Registration Statement is not declared effective on or prior to the
240th calendar day following the Closing Date, and the Company shall request the Holder of this Note to provide the information called for by the Registration Rights Agreement for
inclusion in the Shelf Registration Statement, this Note, if owned by a Holder who does not deliver such information to the Company when required pursuant to the Registration Rights Agreement, will
not be entitled to any such Special Interest Premium for any day after the 240th day following the Closing Date. Upon (1) the filing of the Exchange Offer Registration Statement
after the 150-day period described in clause (i) above, (2) the effectiveness of the Exchange Offer Registration Statement after the 210-day period described in
clause (ii) above, (3) the consummation of the Exchange Offer or the effectiveness of a Shelf Registration Statement, as the case may be, after the 240-day period described
in clause (iii) above or (4) the earlier of (x) the return to effectiveness of the Shelf Registration Statement or (y) the usability of the Prospectus for resales or
(z) the expiration of the Effectiveness Period (as such term is defined in the Registration Rights Agreement) (in the case of clause (iv) above), the interest rate on this Note from the
date of such filing, effectiveness, consummation or expiration of the applicable time period, as the case may be, will be reduced to the original interest rate of 87/8.% per annum. The
Company shall promptly provide the Trustee with notice of any change in the interest rate borne by this Note. 

        The
Notes shall be redeemable at the option of the Company in whole at any time or in part from time to time, at a redemption price equal to the greater of (i) 100% of the
principal amount of this
Note to be redeemed or (ii) the sum, as determined by the Quotation Agent (as defined below), of the present values of the principal amount of this Note to be redeemed and the remaining
scheduled payments of interest on the principal amount of this Note to be redeemed from the redemption date to March 15, 2012 (the "Remaining Life"), discounted from their respective scheduled
payment dates to the redemption date on a semiannual basis (assuming a 360-day year consisting of 30-day months) at the Treasury Rate (as defined below) plus 50 basis points,
plus, in either case, accrued interest thereon to the date of redemption. 

        "Comparable
Treasury Issue" means the United States Treasury security selected by the Quotation Agent as having a maturity comparable to the Remaining Life that would be utilized, at the
time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity with the Remaining Life. 

4

 

        "Comparable
Treasury Price" means, with respect to any redemption date, the average of two Reference Treasury Dealer Quotations for such redemption date. 

        "Quotation
Agent" means the Reference Treasury Dealer appointed by the Company. 

        "Reference
Treasury Dealer" means each of Credit Suisse First Boston Corporation and Lehman Brothers Inc., and their successors; provided,
however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a "Primary Treasury Dealer"), the Company shall substitute
therefor another Primary Treasury Dealer. 

        "Reference
Treasury Dealer Quotations" means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New
York City time, on the third business day preceding such redemption date. 

        "Treasury
Rate" means, with respect to any redemption date, the rate per annum equal to the semiannual yield to maturity of the Comparable Treasury Issue, calculated on the third
business day preceding such redemption date using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such
redemption date. 

        Notice
of any redemption will be mailed not less than 15 nor more than 60 calendar days before the redemption date to the Holder hereof at its registered address. Unless the Company
defaults in payment of the redemption price, on and after the redemption date interest will cease to accrue on the principal amount of this Note. 

        If
money sufficient to pay the redemption price with respect to and accrued interest on the principal amount of this Note to be redeemed on the redemption date is deposited with the
Trustee on or before the redemption date and certain other conditions are satisfied, then on and after such date, interest will cease to accrue on the principal amount of this Note. 

        Except
as provided above, this Note is not redeemable by the Company prior to maturity and is not subject to any sinking fund. 

        In
case an Event of Default shall occur and be continuing, the principal hereof may be declared, and upon such declaration shall become, due and payable in the manner, with the effect
and subject to the conditions provided in the Indenture. 

        The
Indenture contains provisions permitting the Company and the Trustee, with the written consent of the Holders of a majority in principal amount of the outstanding Securities of each
series affected by a supplemental indenture (with each series voting as a class), to enter into a supplemental indenture to add any provisions to or to change or eliminate any provisions of the
Indenture or of any supplemental indenture or to modify, in each case in any manner not covered by provisions in the Indenture relating to amendments and waivers without the consent of Holders, the
rights of the Holders of each such series. The Holders of a majority in principal amount of the outstanding Securities of each series affected by such waiver (with each series voting as a class), by
notice to the Trustee, may waive compliance by the Company with any provision of the Indenture, any supplemental indenture or the Securities of any such series, except a Default in payment of the
principal of or interest on any Security. However, without the consent of each Holder affected, an amendment or waiver may not: (1) reduce the amount of Securities whose Holders must consent to an
amendment or waiver; (2) change the rate of or change the time for payment of interest on any Security; (3) change the principal of or change the fixed maturity of any Security;
(4) waive a Default in the payment of the principal of or interest on any Security; (5) make any Security payable in money other than that stated in the Security; or (6) make any
change in the provisions of the Indenture; (i) with respect to the rights of the Holders of a majority in principal amount of any series of Securities, by notice to the Trustee, to 

5

 

waive
an existing Default with respect to that series and its consequences; (ii) with respect to the right of any Holder of a Security to receive payment of principal of and interest on the
Security, on or after the respective due dates expressed in the Security, the right of any Holder of a coupon to receive payment of interest due as provided in such coupon, or the right to bring suit
for enforcement of any such payments on or after their respective dates; and (iii) described in this sentence. 

        No
reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of, premium, if any, and interest on this Note at the place, at the respective times, at the rate, and in the coin or currency herein prescribed. 

        No
director, officer, employee or stockholder, as such, of the Company shall have any liability for any obligations of the Company under this Note or the Indenture or for any claim based
on, in respect of or by reason of such obligations or their creation. Each Holder, by accepting this Note, waives and releases all such liability. The waiver and release are part of the consideration
for the issue of this Note. 

        The
laws of the State of New York shall govern the Indenture and this Note. 

        Ownership
of this Note shall be proved by the register for the Notes kept by the Registrar. The Company, the Trustee and any agent of the Company may treat the person in whose name a
Note is registered as the absolute owner thereof for all purposes. 

        Terms
used herein without definition that are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

        Unless
the Certificate of Authentication hereon has been executed by the Trustee under the Indenture referred to herein by the manual signature of one of its authorized officers, or on
behalf of the Trustee by the manual signature of an authorized officer of the Trustee's authenticating agent, this Note shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose. 

6

 

        IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed, manually or by fascimile and its corporate seal or a
facsimile of its corporate seal to be imprinted herein. 

        Date:
March 12, 2002 

	(SEAL)	 	QWEST CORPORATION
	

 	
 	

By:	
 	

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	

 	
 	

By:	
 	

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

CERTIFICATE OF AUTHENTICATION 

        This
is one of the Notes of the series designated herein, issued under the Indenture described herein. 

	BANK ONE TRUST COMPANY, NATIONAL ASSOCIATION,

    as Trustee
	

By:	
 	

	
 	

 
	 	 	Authorized Signatory	 	 

7

 
ASSIGNMENT FORM 

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

	Please insert social security number or other identifying number of assignee:
	 
	 	 
	Please print or type name and address (including zip code) of assignee:
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	the within Note and all rights thereunder, hereby irrevocably constituting and
appointing                        attorney to transfer said Note of Qwest Corporation on the books of Qwest Corporation, with full
power of substitution in the premises.
	 
	 	 
	

Dated:	
 	

 
	
 	

 

        NOTICE:
The signature to this assignment must correspond with the name as written upon the face of this Note in every particular without alteration or enlargement or any change
whatsoever. 

8

 
CERTIFICATE TO BE DELIVERED UPON

EXCHANGE OR REGISTRATION OF TRANSFER 

        This
certificate relates to $                        principal amount of Notes held in (check applicable space)
            book-entry or            definitive form by the
undersigned. 

        The
undersigned (Check one box below): 

        o has
requested the Trustee by written order to deliver in exchange for its beneficial interest in the Note held by the Depository a
Note or Notes in definitive, registered form of authorized denominations and an aggregate principal amount equal to its beneficial interest in such Note (or the portion thereof indicated above); or 

        o has requested the Trustee by written order to exchange or register the transfer of a Note or Notes. 

        In connection with any transfer of any of the Notes evidenced by this certificate occurring prior to the expiration of the period referred to in
Rule 144(k) under the Securities Act, the undersigned confirms that such Notes are being transferred in accordance with its terms; 

        CHECK
ONE BOX BELOW 

        o (1) to
the Company; or 

        o (2) pursuant to an effective registration statement under the Securities Act; or 

        o (3) inside the United States to a "qualified institutional buyer" (as defined in Rule 144A
under the Securities Act) that purchases for its own account or for the account of a qualified institutional buyer to whom notice is given that such transfer is being made in reliance on
Rule 144A, in each case pursuant to and in compliance with Rule 144A under the Securities Act; or 

        o (4) outside the United States in an offshore transaction within the meaning of Regulation S
under the Securities Act in compliance with Rule 904 under the Securities Act; or 

        o (5) pursuant to another available exemption from registration requirements of the Securities Act. 

        Unless one of the boxes is checked, the Trustee will refuse to register any of the Notes evidenced by this certificate in the name of any person other than the
registered holder thereof; provided, however, that if box (4) or (5) is checked, the Trustee may require, prior to registering any such transfer of the Notes, such legal opinions,
certifications and other information as the Company and the Trustee has reasonably requested to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject
to, the registration requirements of the Securities Act. 

	Date:	 	 
	 	 	 	 
 SIGNATURE OR SIGNATURE GUARANTEE:

NOTICE: Signature must be guaranteed by a participant in a recognized signature guaranty medallion program or other signature guarantor acceptable to the Trustee.

TO
BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED. 

        The
undersigned represents and warrants that it is purchasing the Notes for its own account or an account with respect to which it exercises sole investment discretion and that it and
any such account is a "qualified institutional buyer" within the meaning of Rule 144A under the Securities Act, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as the undersigned has requested pursuant to Rule 144A or 

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has
determined not to request such information and that it is aware that the transferor is relying upon the undersigned's foregoing representations in order to claim this exemption from registration
provided by Rule 144A. 

	Dated:	 	 
	 	 	 	 
	 
 NOTICE: To be executed by an executive officer	 	 

10

 
SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE  

        The following increases or decreases in this Global Note have been made: 

	Principal amount of this Global Note as of March 12, 2002
 
	 	Date Exchange Made
	 	Change in Principal

Amount of this Global

Note due to Exchange
	 	Principal Amount of

this Global Note

Following such

Exchange
	 	Notation made by or on

behalf of the Company

	$            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

11

FORM OF REGULATION S GLOBAL NOTE  

        TRANSFERS OF THIS NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) ("DTC"),
NOMINEES OF DTC OR A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE, AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH
HEREIN AND IN THE OFFICERS' CERTIFICATE OF THE COMPANY (AS DEFINED BELOW) DATED MARCH 12, 2002 PURSUANT TO THE INDENTURE REFERRED TO HEREIN. 

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

        THE
HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF IS DEEMED TO HAVE AGREED TO BE BOUND BY THE PROVISIONS OF A REGISTRATION RIGHTS AGREEMENT AMONG THE COMPANY AND THE INITIAL PURCHASERS
NAMED THEREIN, DATED AS OF MARCH 12, 2002 (THE "REGISTRATION RIGHTS AGREEMENT"). THE COMPANY WILL PROVIDE A COPY OF THE REGISTRATION RIGHTS AGREEMENT TO A HOLDER WITHOUT CHARGE UPON WRITTEN REQUEST TO
THE COMPANY AT ITS PRINCIPAL PLACE OF BUSINESS. 

        THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS NOTE NOR
ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. 

        THE
HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE, PRIOR TO THE DATE (THE "RESALE RESTRICTION TERMINATION DATE") WHICH IS TWO YEARS
AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE THEREOF WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF THIS NOTE), ONLY (A) TO THE
COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT. (C) FOR SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A
UNDER THE SECURITIES ACT ("RULE 144A"), TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A) THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER
THE SECURITIES ACT OR (E) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S AND THE TRUSTEE'S (AS DEFINED BELOW) RIGHT
PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY 

 

TO
EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. 

        THE
HOLDER OF THIS NOTE BY ACCEPTANCE HEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IF IT IS A PURCHASER IN A SALE THAT OCCURS OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
REGULATION S OF THE SECURITIES ACT, IT ACKNOWLEDGES THAT, UNTIL EXPIRATION OF THE "40-DAY DISTRIBUTION COMPLIANCE PERIOD" WITHIN THE MEANING OF RULE 903 OF REGULATION S, ANY OFFER OR SALE
OF THIS NOTE SHALL NOT BE MADE BY IT TO A U.S. PERSON TO FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON WITHIN THE MEANING OF RULE 902(k) UNDER THE SECURITIES ACT." 

2

 

	REGISTERED

No.

CUSIP No. U7490R AA 7	 	 	 	PRINCIPAL AMOUNT

$

QWEST CORPORATION

87/8% Notes due March 15, 2012 

        QWEST
CORPORATION, a corporation duly organized and existing under the laws of the State of Colorado (such corporation, and its successors and assigns under the Indenture hereinafter
referred to, being herein called the "Company"), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of
                                         
                                          
                                          
                   
($                        ) (or such lesser amount as shall be listed on the Schedule of Increases or Decreases in Global
Note attached
hereto) on March 15, 2012 (the "Maturity Date"), unless previously redeemed on any Redemption Date (as defined below), by wire transfer of immediately available funds of such coin or currency
of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts and to pay interest thereon semiannually on each March 15 and
September 15, commencing September 15, 2002 (each, an "Interest Payment Date"), and on the Maturity Date at the rate per annum specified in the title of this Note, from March 12,
2002 (or from the most recent Interest Payment Date to which interest has been paid or duly provided for) until payment of said principal sum has been made or duly provided for. Notwithstanding the
foregoing, if the Company shall default in the payment of interest due on any Interest Payment Date, then this Note shall bear interest from the most recent Interest Payment Date to which interest has
been paid or, if no interest has been paid on this Note, from March 12, 2002. The interest so payable on any Interest Payment Date, subject to certain exceptions provided in the Indenture
referred to herein, will be paid to the person in whose name this Note shall be registered at the close of business on the fifteenth day immediately prior to such Interest Payment Date or Maturity
Date. If any Interest Payment Date, Maturity Date or redemption date is a Legal Holiday (as defined in the Indenture) in New York, New York, the required payment shall be made on the next succeeding
day that is not a Legal Holiday as if it was made on the date such payment was due and no interest will accrue on the amount so payable for the period from and after such Interest Payment Date,
Maturity Date or redemption date, as the case may be, to such next succeeding day. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. 

        This
Note is one of the duly authorized series of Securities of the Company, designated as the Company's "87/8% Notes due March 15, 2012" (the "Notes"), initially
limited to the aggregate principal amount of $1,500,000,000, all issued or to be issued under and pursuant to an Indenture dated as of October 15, 1999, as amended, modified or supplemented
from time to time (as so amended, modified or supplemented, the "Indenture"), duly executed and delivered by the Company to Bank One Trust Company, National Association, as trustee (hereinafter
referred to as the "Trustee"), to which Indenture and all Indentures supplemental thereto reference is hereby made for a description of the
rights, limitation of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the Holders (the words "Holders" or "Holder" meaning the registered holders or registered
holder of the Notes). Exchange Notes (as such term is defined in the Registration Rights Agreement referred to below) shall be deemed to be of the same series as the Notes for purposes of the
Indenture. 

        The
Holder of this Note is entitled to the benefits of the Registration Rights Agreement, dated as of March 12, 2002, among the Company and the Initial Purchasers named therein
(as the same may be amended from time to time, the "Registration Rights Agreement"). In the event that (i) the Exchange Offer Registration Statement (as such term is defined in the Registration
Rights Agreement) is not filed with the Securities and Exchange Commission (the "Commission") on or prior to the 150th calendar day following March 12, 2002 (the "Closing Date"),
(ii) the Exchange Offer Registration 

3

 

Statement
has not been declared effective by the Commission on or prior to the 210th calendar day following the Closing Date, (iii) the Exchange Offer (as such term is defined in
the Registration Rights Agreement) is not consummated or a Shelf Registration Statement as such term is defined in the Registration Rights Agreement) is not declared effective by the Commission on or
prior to the 240th calendar day following the Closing Date or (iv) the Shelf Registration Statement has been declared effective but such Shelf Registration Statement ceases to be
effective or the Prospectus (as such term is defined in the Registration Rights Agreement) ceases to be usable for resales (A) at any time prior to the expiration of the Effectiveness Period
(as such term is defined in the Registration Rights Agreement) or (B) if related to corporate developments, public filings or similar events or to correct a material misstatement or omission in
the Prospectus, for more than 60-days (whether or not consecutive) in any twelve-month period, then in each such case the Special Interest Premium (as such term is defined in the
Registration Rights Agreement) shall accrue in respect of this Note from and including the next calendar day following each of (a) such 150-day period in the case of
clause (i) above, (b) such 210-day period in the case of clause (ii) above, (c) such 240-day period in the case of clause (iii) above, and
from and including such day (in the ease of clause (iv)(A) above), or the 61st day after (in the case of clause (iv)(B) above), such Shelf Registration Statement ceases to be effective
or the Prospectus ceases to be usable for resales, in each case at a rate equal to 0.25% per annum. Any Special Interest Premium due will be payable in cash on the next succeeding March 15 or
September 15, as the case may be, to Holders on the relevant Regular Record Dates for the payment of interest. The aggregate amount of the Special Interest Premium in respect of this Note
payable pursuant to the above provisions shall in no event exceed 0.25% per annum; provided, however, that if the Exchange Offer Registration Statement is not declared effective on or prior to the
240th calendar day following the Closing Date, and the Company shall request the Holder of this Note to provide the information called for by the Registration Rights Agreement for
inclusion in the Shelf Registration Statement, this Note, if owned by a Holder who does not deliver such information to the Company when required pursuant to the Registration Rights Agreement, will
not be entitled to any such Special Interest Premium for any day after the 240th day following the Closing Date. Upon (1) the filing of the Exchange Offer Registration Statement
after the 150-day period described in clause (i) above, (2) the effectiveness of the Exchange Offer Registration Statement after the 210-day period described in
clause (ii) above, (3) the consummation of the Exchange Offer or the effectiveness of a Shelf Registration Statement, as the case may be, after the 240-day period described
in clause (iii) above or (4) the earlier of (x) the return to effectiveness of the Shelf Registration Statement or (y) the usability of the Prospectus for resales or
(z) the expiration of the Effectiveness Period (as such term is defined in the Registration Rights Agreement) (in the case of clause (iv) above), the interest rate on this Note from the
date of such filing, effectiveness, consummation or expiration of the applicable time period, as the case may be, will be reduced to the original interest rate of 87/8.% per annum. The
Company shall promptly provide the Trustee with notice of any change in the interest rate borne by this Note. 

        The
Notes shall be redeemable at the option of the Company in whole at any time or in part from time to time, at a redemption price equal to the greater of (i) 100% of the
principal amount of this
Note to be redeemed or (ii) the sum, as determined by the Quotation Agent (as defined below), of the present values of the principal amount of this Note to be redeemed and the remaining
scheduled payments of interest on the principal amount of this Note to be redeemed from the redemption date to March 15, 2012 (the "Remaining Life"), discounted from their respective scheduled
payment dates to the redemption date on a semiannual basis (assuming a 360-day year consisting of 30-day months) at the Treasury Rate (as defined below) plus 50 basis points,
plus, in either case, accrued interest thereon to the date of redemption. 

        "Comparable
Treasury Issue" means the United States Treasury security selected by the Quotation Agent as having a maturity comparable to the Remaining Life that would be utilized, at the
time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity with the Remaining Life. 

4

 

        "Comparable
Treasury Price" means, with respect to any redemption date, the average of two Reference Treasury Dealer Quotations for such redemption date. 

        "Quotation
Agent" means the Reference Treasury Dealer appointed by the Company. 

        "Reference
Treasury Dealer" means each of Credit Suisse First Boston Corporation and Lehman Brothers Inc., and their successors; provided,
however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a "Primary Treasury Dealer"), the Company shall substitute
therefor another Primary Treasury Dealer. 

        "Reference
Treasury Dealer Quotations" means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New
York City time, on the third business day preceding such redemption date. 

        "Treasury
Rate" means, with respect to any redemption date, the rate per annum equal to the semiannual yield to maturity of the Comparable Treasury Issue, calculated on the third
business day preceding such redemption date using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such
redemption date. 

        Notice
of any redemption will be mailed not less than 15 nor more than 60 calendar days before the redemption date to the Holder hereof at its registered address. Unless the Company
defaults in payment of the redemption price, on and after the redemption date interest will cease to accrue on the principal amount of this Note. 

        If
money sufficient to pay the redemption price with respect to and accrued interest on the principal amount of this Note to be redeemed on the redemption date is deposited with the
Trustee on or before the redemption date and certain other conditions are satisfied, then on and after such date, interest will cease to accrue on the principal amount of this Note. 

        Except
as provided above, this Note is not redeemable by the Company prior to maturity and is not subject to any sinking fund. 

        In
case an Event of Default shall occur and be continuing, the principal hereof may be declared, and upon such declaration shall become, due and payable in the manner, with the effect
and subject to the conditions provided in the Indenture. 

        The
Indenture contains provisions permitting the Company and the Trustee, with the written consent of the Holders of a majority in principal amount of the outstanding Securities of each
series affected by a supplemental indenture (with each series voting as a class), to enter into a supplemental indenture to add any provisions to or to change or eliminate any provisions of the
Indenture or of any supplemental indenture or to modify, in each case in any manner not covered by provisions in the Indenture relating to amendments and waivers without the consent of Holders, the
rights of the Holders of each such series. The Holders of a majority in principal amount of the outstanding Securities of each series affected by such waiver (with each series voting as a class), by
notice to the Trustee, may waive compliance by the Company with any provision of the Indenture, any supplemental indenture or the Securities of any such series, except a Default in payment of the
principal of or interest on any Security. However, without the consent of each Holder affected, an amendment or waiver may not: (1) reduce the amount of Securities whose Holders must consent to an
amendment or waiver; (2) change the rate of or change the time for payment of interest on any Security; (3) change the principal of or change the fixed maturity of any Security;
(4) waive a Default in the payment of the principal of or interest on any Security; (5) make any Security payable in money other than that stated in the Security; or (6) make any
change in the provisions of the Indenture; (i) with respect to the rights of the Holders of a majority in principal amount of any series of Securities, by notice to the Trustee, to 

5

 

waive
an existing Default with respect to that series and its consequences; (ii) with respect to the right of any Holder of a Security to receive payment of principal of and interest on the
Security, on or after the respective due dates expressed in the Security, the right of any Holder of a coupon to receive payment of interest due as provided in such coupon, or the right to bring suit
for enforcement of any such payments on or after their respective dates; and (iii) described in this sentence. 

        No
reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of, premium, if any, and interest on this Note at the place, at the respective times, at the rate, and in the coin or currency herein prescribed. 

        No
director, officer, employee or stockholder, as such, of the Company shall have any liability for any obligations of the Company under this Note or the Indenture or for any claim based
on, in respect of or by reason of such obligations or their creation. Each Holder, by accepting this Note, waives and releases all such liability. The waiver and release are part of the consideration
for the issue of this Note. 

        The
laws of the State of New York shall govern the Indenture and this Note. 

        Ownership
of this Note shall be proved by the register for the Notes kept by the Registrar. The Company, the Trustee and any agent of the Company may treat the person in whose name a
Note is registered as the absolute owner thereof for all purposes. 

        Terms
used herein without definition that are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

        Unless
the Certificate of Authentication hereon has been executed by the Trustee under the Indenture referred to herein by the manual signature of one of its authorized officers, or on
behalf of the Trustee by the manual signature of an authorized officer of the Trustee's authenticating agent, this Note shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose. 

6

 

        IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed, manually or by fascimile and its corporate seal or a
facsimile of its corporate seal to be imprinted herein. 

        Date:
March 12, 2002 

	(SEAL)	 	QWEST CORPORATION
	

 	
 	

By:	
 	

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	

 	
 	

By:	
 	

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

CERTIFICATE OF AUTHENTICATION 

        This
is one of the Notes of the series designated herein, issued under the Indenture described herein. 

	BANK ONE TRUST COMPANY, NATIONAL ASSOCIATION,

    as Trustee
	

By:	
 	

	
 	

 
	 	 	Authorized Signatory	 	 

7

 
ASSIGNMENT FORM 

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

	Please insert social security number or other identifying number of assignee:
	 
	 	 
	Please print or type name and address (including zip code) of assignee:
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	the within Note and all rights thereunder, hereby irrevocably constituting and
appointing                        attorney to transfer said Note of Qwest Corporation on the books of Qwest Corporation, with full
power of substitution in the premises.
	 
	 	 
	

Dated:	
 	

 
	
 	

 

        NOTICE:
The signature to this assignment must correspond with the name as written upon the face of this Note in every particular without alteration or enlargement or any change
whatsoever. 

8

 
CERTIFICATE TO BE DELIVERED UPON

EXCHANGE OR REGISTRATION OF TRANSFER 

        This
certificate relates to $                        principal amount of Notes held in (check applicable space)
            book-entry or            definitive form by the
undersigned. 

        The
undersigned (Check one box below): 

        o has
requested the Trustee by written order to deliver in exchange for its beneficial interest in the Note held by the Depository a
Note or Notes in definitive, registered form of authorized denominations and an aggregate principal amount equal to its beneficial interest in such Note (or the portion thereof indicated above); or 

        o has requested the Trustee by written order to exchange or register the transfer of a Note or Notes. 

        In connection with any transfer of any of the Notes evidenced by this certificate occurring prior to the expiration of the period referred to in
Rule 144(k) under the Securities Act, the undersigned confirms that such Notes are being transferred in accordance with its terms; 

        CHECK
ONE BOX BELOW 

        o (1) to
the Company; or 

        o (2) pursuant to an effective registration statement under the Securities Act; or 

        o (3) inside the United States to a "qualified institutional buyer" (as defined in Rule 144A
under the Securities Act) that purchases for its own account or for the account of a qualified institutional buyer to whom notice is given that such transfer is being made in reliance on
Rule 144A, in each case pursuant to and in compliance with Rule 144A under the Securities Act; or 

        o (4) outside the United States in an offshore transaction within the meaning of Regulation S
under the Securities Act in compliance with Rule 904 under the Securities Act; or 

        o (5) pursuant to another available exemption from registration requirements of the Securities Act. 

        Unless one of the boxes is checked, the Trustee will refuse to register any of the Notes evidenced by this certificate in the name of any person other than the
registered holder thereof; provided, however, that if box (4) or (5) is checked, the Trustee may require, prior to registering any such transfer of the Notes, such legal opinions,
certifications and other information as the Company and the Trustee has reasonably requested to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject
to, the registration requirements of the Securities Act. 

	Date:	 	 
	 	 	 	 
 SIGNATURE OR SIGNATURE GUARANTEE:

NOTICE: Signature must be guaranteed by a participant in a recognized signature guaranty medallion program or other signature guarantor acceptable to the Trustee.

TO
BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED. 

        The
undersigned represents and warrants that it is purchasing the Notes for its own account or an account with respect to which it exercises sole investment discretion and that it and
any such account is a "qualified institutional buyer" within the meaning of Rule 144A under the Securities Act, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as the undersigned has requested pursuant to Rule 144A or 

9

 

has
determined not to request such information and that it is aware that the transferor is relying upon the undersigned's foregoing representations in order to claim this exemption from registration
provided by Rule 144A. 

	Dated:	 	 
	 	 	 	 
	 
 NOTICE: To be executed by an executive officer	 	 

10

 
SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE  

        The following increases or decreases in this Global Note have been made: 

	Principal amount of this Global Note as of March 12, 2002
 
	 	Date Exchange Made
	 	Change in Principal

Amount of this Global

Note due to Exchange
	 	Principal Amount of

this Global Note

Following such

Exchange
	 	Notation made by or on

behalf of the Company

	$            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

11

QuickLinks

QWEST CORPORATION Officers' CertificateExhibit
4.1

 

 

SEA
CONTAINERS LTD.,

 

Issuer

 

 

and

 

 

THE BANK
OF NEW YORK,

 

Trustee

 

 

 

Indenture

 

Dated as
of

 

May 1,
2004

 

Providing
for the Issuance

 

of

 

Debt
Securities

 

in One
or More Series

 

 

 

 

SEA CONTAINERS LTD.

 

Reconciliation and tie
between Trust Indenture Act of 1939

and Indenture dated as of May 1, 2004

 

 

 

 

 

	
  Trust Indenture
Act Section

  	
   

  	
  Indenture
Section

  
	
  § 310 (a)(1)

  	
   

  	
  6.08

  
	
  (a)(2)

  	
   

  	
  6.08

  
	
  (b)

  	
   

  	
  6.07, 6.09

  
	
  § 311

  	
   

  	
  6.13

  
	
  § 312 (c)

  	
   

  	
  7.01

  
	
  § 313

  	
   

  	
  7.02

  
	
  § 314 (a)

  	
   

  	
  7.03

  
	
  (a)(4)

  	
   

  	
  10.18

  
	
  (c)(1)

  	
   

  	
  1.03

  
	
  (c)(2)

  	
   

  	
  1.03

  
	
  (e)

  	
   

  	
  1.03

  
	
  § 315 (b)

  	
   

  	
  6.01

  
	
  § 316 (a) (last sentence)

  	
   

  	
  1.01 (“Outstanding”)

  
	
  (a)(1)(A)

  	
   

  	
  5.02, 5.12

  
	
  (a)(1)(B)

  	
   

  	
  5.13

  
	
  (b)

  	
   

  	
  5.08

  
	
  (c)

  	
   

  	
  1.05

  
	
  § 317 (a)(1)

  	
   

  	
  5.03

  
	
  (a)(2)

  	
   

  	
  5.04

  
	
  § 318 (a)

  	
   

  	
  1.08

  

 

i

 

TABLE OF CONTENTS

 

	
  ARTICLE
  ONE

  	
   

  
	
   

  	
   

  
	
  DEFINITIONS AND OTHER PROVISIONS OF GENERAL
  APPLICATION

  	
   

  
	
   

  	
   

  
	
  SECTION 1.01  Definitions.

  	
   

  
	
  SECTION 1.02  Other Definitions.

  	
   

  
	
  SECTION 1.03  Compliance Certificates and Opinions.

  	
   

  
	
  SECTION 1.04  Form of Documents Delivered to Trustee.

  	
   

  
	
  SECTION 1.05  Acts of Holders.

  	
   

  
	
  SECTION 1.06  Notices, etc., to Trustee and Company.

  	
   

  
	
  SECTION 1.07  Notice to Holders; Waiver.

  	
   

  
	
  SECTION 1.08  Conflict of any Provision of Indenture with Trust Indenture
  Act, as Amended.

  	
   

  
	
  SECTION 1.09  Effect of Headings and Table of Contents.

  	
   

  
	
  SECTION 1.10  Successors and Assigns.

  	
   

  
	
  SECTION 1.11  Separability Clause.

  	
   

  
	
  SECTION 1.12  Benefits of Indenture.

  	
   

  
	
  SECTION 1.13  Governing Law.

  	
   

  
	
  SECTION 1.14  Legal Holidays.

  	
   

  
	
  SECTION 1.15  Consent to Jurisdiction and Service of Process.

  	
   

  
	
  SECTION 1.16  Conversion of Currency.

  	
   

  
	
  SECTION 1.17  No Recourse Against Others.

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  TWO

  	
   

  
	
   

  	
   

  
	
  SECURITIES
  FORMS

  	
   

  
	
   

  	
   

  
	
  SECTION 2.01  Forms of Securities.

  	
   

  
	
  SECTION 2.02  Securities Issuable in Global Form.

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  THREE

  	
   

  
	
   

  	
   

  
	
  THE
  SECURITIES

  	
   

  
	
   

  	
   

  
	
  SECTION 3.01  Amount Unlimited; Issuable in Series.

  	
   

  
	
  SECTION 3.02  Denominations.

  	
   

  
	
  SECTION 3.03  Execution, Authentication, Delivery and Dating.

  	
   

  
	
  SECTION 3.04  Temporary Securities.

  	
   

  
	
  SECTION 3.05  Securities Register; Registration of Transfer and Exchange.

  	
   

  
	
  SECTION 3.06  Mutilated, Destroyed, Lost and Stolen Securities.

  	
   

  
	
  SECTION 3.07  Payment of Interest; Interest Rights Preserved; Optional
  Interest Reset.

  	
   

  

 

ii

 

	
  SECTION 3.08  Optional Extension of Maturity.

  	
   

  
	
  SECTION 3.09  Persons Deemed Owners.

  	
   

  
	
  SECTION 3.10  Cancellation.

  	
   

  
	
  SECTION 3.11  Computation of Interest.

  	
   

  
	
  SECTION 3.12  Currency and Manner of Payments in Respect of Securities.

  	
   

  
	
  SECTION 3.13  Appointment and Resignation of Successor Exchange Rate Agent.

  	
   

  
	
  SECTION 3.14  CUSIP Numbers.

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  FOUR

  	
   

  
	
   

  	
   

  
	
  SATISFACTION AND DISCHARGE

  	
   

  
	
   

  	
   

  
	
  SECTION 4.01  Satisfaction and Discharge of Indenture.

  	
   

  
	
  SECTION 4.02  Application of Trust Funds.

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  FIVE

  	
   

  
	
   

  	
   

  
	
  REMEDIES

  	
   

  
	
   

  	
   

  
	
  SECTION 5.01  Events of Default.

  	
   

  
	
  SECTION 5.02  Acceleration of Maturity; Rescission.

  	
   

  
	
  SECTION 5.03  Collection of Indebtedness and Suits for Enforcement by
  Trustee.

  	
   

  
	
  SECTION 5.04  Trustee May File Proofs of Claim.

  	
   

  
	
  SECTION 5.05  Trustee May Enforce Claims Without Possession of Securities or
  Coupons.

  	
   

  
	
  SECTION 5.06  Application of Money Collected.

  	
   

  
	
  SECTION 5.07  Limitation on Suits.

  	
   

  
	
  SECTION 5.08  Unconditional Right of Holders to Receive Principal, Premium
  and Interest.

  	
   

  
	
  SECTION 5.09  Restoration of Rights and Remedies.

  	
   

  
	
  SECTION 5.10  Rights and Remedies Cumulative.

  	
   

  
	
  SECTION 5.11  Delay or Omission Not Waiver.

  	
   

  
	
  SECTION 5.12  Control by Holders of Securities.

  	
   

  
	
  SECTION 5.13  Waiver of Past Defaults.

  	
   

  
	
  SECTION 5.14  Undertaking for Costs.

  	
   

  
	
  SECTION 5.15  Waiver of Stay, Extension or Usury Laws.

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  SIX

  	
   

  
	
   

  	
   

  
	
  THE
  TRUSTEE

  	
   

  
	
   

  	
   

  
	
  SECTION 6.01  Notice of Defaults.

  	
   

  
	
  SECTION 6.02  Certain Rights of Trustee.

  	
   

  
	
  SECTION 6.03  Not Responsible for Recitals or Issuance of Securities.

  	
   

  
	
  SECTION 6.04  May Hold Securities.

  	
   

  
	
  SECTION 6.05  Money Held in Trust.

  	
   

  

 

iii

 

	
  SECTION 6.06  Compensation and Reimbursement.

  	
   

  
	
  SECTION 6.07  Conflicting Interest.

  	
   

  
	
  SECTION 6.08  Corporate Trustee Required; Eligibility.

  	
   

  
	
  SECTION 6.09  Resignation and Removal; Appointment of Successor.

  	
   

  
	
  SECTION 6.10  Acceptance of Appointment by Successor.

  	
   

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

  	
   

  
	
  SECTION 6.12  Appointment of Authenticating Agent.

  	
   

  
	
  SECTION 6.13  Preferential Collection of Claims Against the Company.

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  SEVEN

  	
   

  
	
   

  	
   

  
	
  HOLDERS’
  LISTS AND REPORTS BY TRUSTEE AND COMPANY

  	
   

  
	
   

  	
   

  
	
  SECTION 7.01  Disclosure of Names and Addresses of Holders.

  	
   

  
	
  SECTION 7.02  Reports by Trustee.

  	
   

  
	
  SECTION 7.03  Reports by Company.

  	
   

  
	
  SECTION 7.04  Calculation of Original Issue Discount.

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  EIGHT

  	
   

  
	
   

  	
   

  
	
  CONSOLIDATION,
  MERGER, CONVEYANCE, TRANSFER OR LEASE

  	
   

  
	
   

  	
   

  
	
  SECTION 8.01  Company May Consolidate, etc., Only on Certain Terms.

  	
   

  
	
  SECTION 8.02  Successor Substituted.

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  NINE

  	
   

  
	
   

  	
   

  
	
  SUPPLEMENTAL INDENTURES

  	
   

  
	
   

  	
   

  
	
  SECTION 9.01  Supplemental Indentures Without Consent of Holders.

  	
   

  
	
  SECTION 9.02  Supplemental Indentures With Consent of Holders.

  	
   

  
	
  SECTION 9.03  Execution of Supplemental Indentures.

  	
   

  
	
  SECTION 9.04  Effect of Supplemental Indentures.

  	
   

  
	
  SECTION 9.05  Conformity with Trust Indenture Act.

  	
   

  
	
  SECTION 9.06  Reference in Securities to Supplemental Indentures.

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  TEN

  	
   

  
	
   

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  
	
  SECTION 10.01  Payment of Principal, Premium and Interest.

  	
   

  
	
  SECTION 10.02  Maintenance of Office or Agency.

  	
   

  
	
  SECTION 10.03  Money for Securities Payments to Be Held in Trust.

  	
   

  
	
  SECTION 10.04  Additional Amounts.

  	
   

  

 

iv

 

	
  SECTION 10.05  Corporate Existence.

  	
   

  
	
  SECTION 10.06  Payment of Taxes and Other Claims.

  	
   

  
	
  SECTION 10.07  Maintenance of Properties.

  	
   

  
	
  SECTION 10.08  Limitation on Indebtedness.

  	
   

  
	
  SECTION 10.09  Limitation on Restricted Payments.

  	
   

  
	
  SECTION 10.10  Restrictions on Liens.

  	
   

  
	
  SECTION 10.11  Limitation on Sale and Leaseback Transactions.

  	
   

  
	
  SECTION 10.12  Transactions with Affiliates.

  	
   

  
	
  SECTION 10.13  Limitation on Subsidiary Indebtedness.

  	
   

  
	
  SECTION 10.14  Restriction on Preferred Shares of Subsidiaries.

  	
   

  
	
  SECTION 10.15  Limitation on Dividends and Other Payment Restrictions
  Affecting Subsidiaries.

  	
   

  
	
  SECTION 10.16  Purchase of Securities upon Change of Control.

  	
   

  
	
  SECTION 10.17  Disposition of Proceeds of Asset Sales.

  	
   

  
	
  SECTION 10.18  Conduct of Business.

  	
   

  
	
  SECTION 10.19  Maintenance of Consolidated Tangible Net Worth.

  	
   

  
	
  SECTION 10.20  Statement as to Compliance; Notice of Default; Reporting
  Requirements.

  	
   

  
	
  SECTION 10.21  Waiver of Certain Covenants.

  	
   

  
	
  SECTION 10.22  Termination of Certain Covenants.

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  ELEVEN

  	
   

  
	
   

  	
   

  
	
  REDEMPTION OF SECURITIES

  	
   

  
	
   

  	
   

  
	
  SECTION 11.01  Optional Tax Redemption.

  	
   

  
	
  SECTION 11.02  Applicability of Article.

  	
   

  
	
  SECTION 11.03  Election to Redeem; Notice to Trustee.

  	
   

  
	
  SECTION 11.04  Selection by Trustee of Securities to Be Redeemed.

  	
   

  
	
  SECTION 11.05  Notice of Redemption.

  	
   

  
	
  SECTION 11.06  Deposit of Redemption Price.

  	
   

  
	
  SECTION 11.07  Securities Payable on Redemption Date.

  	
   

  
	
  SECTION 11.08  Securities Redeemed in Part.

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  TWELVE

  	
   

  
	
   

  	
   

  
	
  SINKING
  FUNDS

  	
   

  
	
   

  	
   

  
	
  SECTION 12.01  Applicability of Article.

  	
   

  
	
  SECTION 12.02  Satisfaction of Sinking Fund Payments with Securities.

  	
   

  
	
  SECTION 12.03  Redemption of Securities for Sinking Fund.

  	
   

  

 

v

 

	
  ARTICLE
  THIRTEEN

  	
   

  
	
   

  	
   

  
	
  REPAYMENT AT THE OPTION OF HOLDERS

  	
   

  
	
   

  	
   

  
	
  SECTION 13.01  Applicability of Article.

  	
   

  
	
  SECTION 13.02  Repayment of Securities.

  	
   

  
	
  SECTION 13.03  Exercise of Option.

  	
   

  
	
  SECTION 13.04  When Securities Presented for Repayment Become Due and Payable.

  	
   

  
	
  SECTION 13.05  Securities Repaid in Part.

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  FOURTEEN

  	
   

  
	
   

  	
   

  
	
  DEFEASANCE AND COVENANT DEFEASANCE

  	
   

  
	
   

  	
   

  
	
  SECTION 14.01  Applicability of Article; Company’s Option to Effect Defeasance
  or Covenant Defeasance.

  	
   

  
	
  SECTION 14.02  Defeasance and Discharge.

  	
   

  
	
  SECTION 14.03  Covenant Defeasance.

  	
   

  
	
  SECTION 14.04  Conditions to Defeasance or Covenant Defeasance.

  	
   

  
	
  SECTION 14.05  Deposited Money and Government Obligations to Be Held in Trust;
  Other Miscellaneous Provisions.

  	
   

  
	
  SECTION 14.06  Reinstatement.

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  FIFTEEN

  	
   

  
	
   

  	
   

  
	
  MEETINGS OF HOLDERS OF SECURITIES

  	
   

  
	
   

  	
   

  
	
  SECTION 15.01  Purposes for Which Meetings May Be Called.

  	
   

  
	
  SECTION 15.02  Call, Notice and Place of Meetings.

  	
   

  
	
  SECTION 15.03  Persons Entitled to Vote at Meetings.

  	
   

  
	
  SECTION 15.04  Quorum; Action.

  	
   

  
	
  SECTION 15.05  Determination of Voting Rights; Conduct and Adjournment of
  Meetings.

  	
   

  
	
  SECTION 15.06  Counting Votes and Recording Action of Meetings.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  EXHIBIT
  A - FORM OF CERTIFICATION

  	
   

  

 

vi

 

INDENTURE, dated as of May 1, 2004, between SEA
CONTAINERS LTD., a company limited by shares incorporated in the Islands of
Bermuda under the Companies (Incorporation by Registration) Act 1970
(hereinafter called the “Company”), and THE BANK OF NEW YORK, a New York
banking corporation, trustee (hereinafter called the “Trustee”).

 

RECITALS OF THE COMPANY

 

The Company deems it necessary to issue from time to
time for its lawful purposes unsecured debt securities (hereinafter called the
“Securities”) evidencing its subordinated or unsubordinated indebtedness, which
may or may not be convertible into or exchangeable for any securities of any
Person (including the Company), and has duly authorized the execution and
delivery of this Indenture to provide for the issuance from time to time of one
or more series of the Securities, unlimited as to principal amount, to bear
such rates of interest, to mature at such times and to have such other
provisions as shall be fixed as hereinafter provided.

 

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

 

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

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

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

 

ARTICLE ONE

 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

SECTION
1.01  Definitions.

 

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

 

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

 

(2)           all other terms used
herein and not defined in this Article or in other Articles of this Indenture,
which are defined in the Trust Indenture Act, either directly or by reference therein,
have the meanings assigned to them therein;

 

(3)           all accounting terms
not otherwise defined herein have the meanings assigned to them in accordance
with Generally Accepted Accounting Principles; and

 

 

 

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

 

Certain terms, used principally in Article Three,
Article Five, Article Six and Article Ten, are defined in those Articles.

 

“Act”, when used with respect to any Holder,
has the meaning specified in Section 1.05.

 

“Additional Amounts” has the meaning set forth
in Section 10.04.

 

“Affiliate” means (i) any Person directly or
indirectly controlling or controlled by, or under direct or indirect common
control with, the Company, (ii) each executive officer or director of the
Company, (iii) any spouse, immediate family member or other relative who has
the same principal residence as any Person described in clause (i) or (ii)
above, (iv) any trust in which any such Persons described in clauses (i)
through (iii) above have a substantial beneficial interest and (v) any
corporation or other organization of which any such Persons described in
clauses (i) through (iv) above collectively own more than 50% of the equity of
such entity.  For purposes of this
definition, beneficial ownership of 10% or more of voting common equity (on a
fully diluted basis) or warrants to purchase such equity (whether or not
currently exercisable) of a Person shall be deemed to be control of such
Person.

 

“Asset Acquisition” means (i) any capital
contribution (by means of transfers of cash or other property to others or
payments for property or services for the account or use of others, or
otherwise), or purchase or acquisition of Capital Stock, by the Company or any
Subsidiary in any other Person, in either case, pursuant to which such Person
shall become a Subsidiary or shall be merged with or into the Company or any
Subsidiary or (ii) any acquisition by the Company or any Subsidiary of the
assets of any Person that constitute substantially all of an operating unit or
business of such Person, provided no such capital contribution or purchase or
acquisition of Capital Stock or acquisition of assets shall constitute an
“Asset Acquisition” unless financial statements (including, without limitation,
an income statement, balance sheet and statement of cash flows) prepared and
audited by accountants nationally recognized in the relevant country in
accordance with the relevant accounting principles with respect to such Person,
operating unit or business, are delivered to the Trustee.

 

“Asset Sale” means any sale, issuance,
conveyance, transfer, lease or other disposition (including, without
limitation, by way of merger, consolidation or sale-leaseback) to any Person
other than the Company or a Subsidiary, in one or a series of related
transactions, of (a) any Capital Stock of any Subsidiary; (b) all or
substantially all of the properties and assets of any division or line of
business of the Company or any Subsidiary; or (c) any other properties or
assets of the Company or any Subsidiary other than, in the case of this clause
(c), the disposition of such properties or assets in the ordinary course of
business.

 

“Attributable Debt” for a series of Securities
means, in connection with a Sale and Leaseback Transaction occurring after the
date of this Indenture, the present value (discounted at the interest rate set
forth in the lease or, if none, at the interest rate set forth in such series
of 

 

2

 

Securities) of the
obligations of the lessee for rental payments during the term of any lease,
determined in accordance with GAAP.

 

“Authenticating Agent” means any authenticating
agent appointed by the Trustee pursuant to Section 6.12.

 

“Authorized Newspaper” means a newspaper, in
the English language or in an official language of the country of publication,
customarily published on each Business Day, 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 Business Day.

 

“Average Life to Stated Maturity” means, as of
the date of determination, with respect to any Indebtedness, the quotient
obtained by dividing (i) the sum of the products of (a) the number of years
from the date of determination to the date or dates of each successive
scheduled principal payment of such Indebtedness (including scheduled
redemption and similar payments with respect to Redeemable Capital Stock)
multiplied by (b) the amount of each such principal (or redemption or similar)
payment by (ii) the sum of all such principal (or redemption or similar)
payments.

 

“Bearer Security” means any Security
established pursuant to Section 2.01 which is payable to bearer.

 

“Board of Directors” means the board of
directors of the Company.

 

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

 

“Business Day” means, unless otherwise
specified with respect to any Securities pursuant to Section 3.01, each Monday,
Tuesday, Wednesday, Thursday or Friday that is not a day on which banking
institutions in New York City or London are authorized or obligated by law,
regulation or executive order to close.

 

“Capital Lease Obligation” of any Person means
any obligations (including, without limitation, for the payment of rent, hire
or other remuneration) of such Person and its Subsidiaries on a consolidated
basis under any leases, charter parties or other arrangements conveying the
right to use any property (whether real, personal or mixed) which, in
accordance with GAAP, is required to be recorded as a capitalized lease
obligation.

 

“Capital Stock” of any Person means any and all
shares, interests, participations, or other equivalents (however designated) of
such Person’s capital stock whether now outstanding or issued after the date of
this Indenture.

 

3

 

“Cash Equivalents” means (a) securities issued
or directly and fully guaranteed or insured by the United States, the United
Kingdom or other governments whose securities are readily marketable in London
or New York City or any agency or instrumentality thereof (provided that
the full faith and credit of such government is pledged in support thereof)
having maturities of not more than one year from the date of acquisition and
having the highest rating from either of Standard & Poor’s Ratings
Services, a division of the McGraw-Hill Companies, Inc., or Moody’s Investors
Service, Inc., (b) time deposits, certificates of deposit and bankers’
acceptances issued in London or in New York City by any commercial bank, or any
subsidiary or branch thereof, which bank is of recognized standing and has, on
a consolidated basis, capital, surplus and undivided profits in excess of
$300,000,000 or a Moody’s Investors Service, Inc. rating for short-term bank
deposits of at least P-2, with maturities of not more than one year from the
date of acquisition by such Person, (c) repurchase obligations with a term of
not more than 90 days for underlying securities of the types described in
clause (a) above entered into with any bank meeting the qualifications
specified in clause (b) above, (d) commercial paper issued by any Person and
having one of the top two investment ratings from either Standard & Poor’s
Ratings Services, a division of the McGraw-Hill Companies, Inc., or Moody’s
Investors Service, Inc. and in each case maturing not more than 270 days after
the date of acquisition by such Person and (e) investments in money market
funds substantially all of whose assets are comprised of securities of the
types described in clauses (a) through (d) above.

 

“Cash Flow Coverage Ratio” for any Reference
Period means the ratio of (a) the Company’s Consolidated Cash Flow for such
Reference Period to (b) the Company’s Consolidated Fixed Charges for such
Reference Period; provided that for purposes of calculating the
Company’s Consolidated Fixed Charges, (x) Consolidated Interest Expense shall
be the Company’s actual Consolidated Interest Expense during such Reference
Period, adjusted by (A) increasing such actual Consolidated Interest Expense by
the amount attributable to new Indebtedness Incurred at any time from the
beginning of such Reference Period through the Transaction Date, on a pro
forma basis as if such Indebtedness had been Incurred on the first day
of such Reference Period and had been outstanding during all such Reference
Period; and (B) decreasing such actual Consolidated Interest Expense by the
amount attributable to any Indebtedness repaid at any time from the beginning
of such Reference Period through the Transaction Date, on a pro  forma
basis as if such Indebtedness had been repaid on the first day of such
Reference Period and had been repaid during all such Reference Period; and (y)
the aggregate amount of cash dividends and other distributions paid or accrued
on Included Stock shall be the amount actually paid and accrued during such
Reference Period, adjusted by (A) increasing such actual amount by the amount
attributable to new Included Stock issued at any time from the beginning of
such Reference Period to the Transaction Date, on a pro  forma
basis as if such Included Stock had been issued on the first day of such
Reference Period and had been outstanding during all such Reference Period; and
(B) decreasing such actual amount by the amount attributable to any Included
Stock repaid, redeemed or acquired or converted into Capital Stock (other than
Redeemable Capital Stock) at any time from the beginning of such Reference
Period through the Transaction Date, on a pro  forma basis as if
such Included Stock had been repaid, redeemed or acquired or converted into
Capital Stock (other than Redeemable Capital Stock) on the first day of such
Reference Period and had been repaid, redeemed or acquired or converted into
Capital Stock (other than Redeemable Capital Stock) during all such Reference
Period.  “Consolidated Cash Flow” and
“Consolidated Fixed Charges” shall be calculated after giving effect on a pro
forma basis for such period to any Asset Sales or Asset Acquisitions 

 

4

 

occurring during
the period commencing on the first day of such period to and including the
Transaction Date, as if such Asset Sale or Asset Acquisition had occurred on
the first day of such period.

 

“Change of Control” means the occurrence of any
of the following events:  (a) any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act), other than Permitted Holders, is or becomes the “beneficial owner”
(as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a
person shall be deemed to have “beneficial ownership” of all securities that
such person has the right to acquire, whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of more
than 33 1/3% of the aggregate voting power of all classes of Voting Stock of
the Company; (b) the Company amalgamates or consolidates with, or merges with
or into, another Person or sells, assigns, conveys, transfers, leases or
otherwise disposes of all or substantially all of its assets to any Person, or
any Person amalgamates or consolidates with, or merges with or into, the
Company, in any such event pursuant to a transaction in which the outstanding
Voting Stock of all classes of the Company is converted into or exchanged for
cash, securities or other property, other than any such transaction where (i)
the outstanding Voting Stock of each class of the Company is converted into or
exchanged for (1) Voting Stock (other than Redeemable Capital Stock) of the
surviving or transferee company or corporation or (2) cash, securities and
other property in an amount which could be paid by the Company as a Restricted
Payment under this Indenture and (ii) the holders of each class of the Voting
Stock of the Company immediately prior to such transaction own, directly or
indirectly, not less than a majority of each class of the Voting Stock of the
surviving or transferee company or corporation immediately after such transaction;
(c) at any time, individuals who constituted the Board of Directors on the date
of this Indenture (together with any new directors whose election by such Board
of Directors or whose nomination for election by the shareholders of the
Company was approved by a vote of 66 2/3% of the directors then still in office
who were either directors on the date of this Indenture or whose election or
nomination for election was previously so approved) cease for any reason to
constitute a majority of the Board of Directors then in office; or (d) any
order, judgment or decree shall be entered against the Company decreeing the
dissolution or liquidation of the Company and shall not be discharged for a
period in excess of 60 days after the date on which any period for appeal has
expired and during which a stay of enforcement of such judgment, order or
decree has not been in effect.

 

“Clearstream” means Clearstream Banking,
société anonyme, 67 Bd Grande-Duchesse Charlotte, L-2967 Luxembourg.

 

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

 

“Company” means the Person named as the
“Company” in the first paragraph of this instrument, until a successor Person
shall have become such pursuant to the applicable provisions of this Indenture,
and thereafter “Company” shall mean such successor Person.  To the extent necessary to comply with the
requirements of the provisions of Sections 310 through 317 of the Trust
Indenture Act as they are applicable to the Company, the term “Company” shall 

 

5

 

include any other
obligor with respect to the Securities for the purposes of complying with such
provisions.

 

“Company Order” or “Company Request”
means a written request or order signed in the name of the Company (i) by its
President, any Executive Vice President, any Senior Vice President, or any Vice
President and (ii) by its Secretary or any Assistant Secretary and delivered to
the Trustee; provided, however, that such written request or
order may be signed by any two of the officers listed in clause (i) above in
lieu of being signed by one of such officers listed in such clause (i) and one
of the officers listed in clause (ii) above.

 

“Consolidated Cash Flow” with respect to any
period means Consolidated Net Income plus, to the extent the following were
deducted in determining Consolidated Net Income, (i) Consolidated Interest
Expense, (ii) federal, state, local and foreign income taxes and (iii)
depreciation, amortization and other non-cash charges for such period (taken as
one accounting period).

 

“Consolidated Fixed Charges” with respect to
any period means the aggregate amount of Consolidated Interest Expense, any
capitalized interest, and the aggregate amount of cash dividends and other
distributions paid or accrued on Included Stock, in each case during such
period.

 

“Consolidated Interest Expense” means, with
respect to any period, without duplication, the sum of (i) the interest expense
of a Person and its Subsidiaries for such period as determined in accordance
with GAAP, including, without limitation, (a) any amortization of debt
discount, (b) the net cost under Interest Rate Agreements (including any
amortization of discounts), (c) the interest portion of any deferred payment
obligation, (d) all commissions, discounts and other fees and charges owed with
respect to letters of credit and bankers’ acceptance financing and (e) all
accrued interest and (ii) the interest component of Capital Lease Obligations
paid, accrued and/or scheduled to be paid or accrued by such Person and its
Subsidiaries during such period, as determined in accordance with GAAP.  Furthermore, in calculating “Consolidated
Interest Expense”, (i) interest on outstanding Indebtedness determined on a
fluctuating basis as of the Transaction Date and which will continue to be so
determined thereafter shall be deemed to have accrued at a fixed rate per
annum equal to the rate of interest on such Indebtedness in effect on
the Transaction Date; (ii) if interest on any Indebtedness actually Incurred on
the Transaction Date may optionally be determined at an interest rate based
upon a factor of a prime or similar rate, a eurocurrency interbank offered
rate, or other rates, then the interest rate in effect on the Transaction Date
will be deemed to have been in effect during the period; and (iii)
notwithstanding clauses (i) and (ii) above, interest on Indebtedness determined
on a fluctuating basis, to the extent such interest is covered by agreements
relating to Interest Rate Agreements, shall be deemed to have accrued at the
rate per  annum resulting after giving effect to the operation of
such agreements.  If such Person or any
of its Subsidiaries directly or indirectly guarantees Indebtedness of a third
Person, the above clause shall give effect to the Incurrence of such guaranteed
Indebtedness as if such Person or such Subsidiary had directly Incurred or
otherwise assumed such guaranteed Indebtedness; provided that, with
respect to any series of Securities, no effect shall be given to any such
Guaranty of Indebtedness Incurred prior to the date of this Indenture, except
that any interest actually paid by the Company or any Subsidiary pursuant to
any such Guaranty during the period in question shall be included 

 

6

 

in computing the
Consolidated Interest Expense of the Company and its Subsidiaries for such
period.

 

“Consolidated Net Income” with respect to any
period means the consolidated net income (loss), before dividends on Preferred
Shares, for such period of the Company and its Subsidiaries (after deducting
net income attributable to minority interests in Subsidiaries) but without
giving effect to any extraordinary gain or loss or gains or losses from sales
of assets (other than from sales of assets determined by the Board of Directors
to be in the ordinary course of business), provided there should be excluded
(i) for purposes of the covenant contained in Section 10.08 hereof, but not for
purposes of the covenant contained in Section 10.09 hereof, the net income of
any Person (other than a Subsidiary) in which the Company or any of its
consolidated Subsidiaries has an interest with a third party except to the
extent of the amount of dividends or distributions actually paid to the Company
or a Subsidiary during such period, (ii) for purposes of the covenant contained
in Section 10.09 hereof, but not for purposes of the covenant contained in
Section 10.08 hereof, except to the extent of the amount of dividends or
distributions actually paid to the Company or one of its Subsidiaries by such
Person, the net income of any Person during such period accrued prior to the
date it becomes a Subsidiary or is merged into or consolidated with the Company
or any of its Subsidiaries or that Person’s assets are acquired by the Company
or any of its Subsidiaries and (iii) the amount of net income (if positive) of
any Subsidiary which, as a result of the operation of the terms of its charter
or any agreement, instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to the Subsidiary, could not be distributed
by such Subsidiary to the Company through the paying, making or repaying of
dividends or similar distributions, inter-company loans or advances or
management and similar fees.

 

“Consolidated Net Income Available for Restricted
Payments” with respect to any period and with respect to any series of
Securities, means the Consolidated Net Income for such period less dividends
and other distributions made during such period on (x) Preferred Shares
(including Preferred Shares constituting Redeemable Capital Stock) existing on
the date of this Indenture, and Preferred Shares issued to refinance such
Preferred Shares as permitted by Section 10.09(b)(iv) of this Indenture and (y)
Redeemable Capital Stock issued subsequent to the date of this Indenture.

 

“Consolidated Net Worth” means at any time the
sum of the liquidation value of Preferred Shares (other than Redeemable Capital
Stock) and common shareholders’ equity (adjusted for foreign currency gains or
losses subsequent to the December 31 Balance Sheet to the extent the net amount
of such adjustments aggregates in excess of $25,000,000, as calculated in
accordance with Statement of Financial Accounting Standards No. 52 of the
Financial Accounting Standards Board).

 

“Consolidated Revenue” means for any period the
total revenues of the Company and its Subsidiaries, determined in accordance
with GAAP.

 

“Consolidated Tangible Net Worth”, with respect
to any series of Securities, means at any time Consolidated Net Worth less the
sum of (i) the net book amount of all assets, after deducting any reserves
applicable thereto, which would be treated as intangibles under GAAP and (ii)
any write-up in the book value of any asset on the books of the Company or any 

 

7

 

Subsidiary
resulting from a revaluation thereof subsequent to the date of this Indenture
(other than the write-up of book value of an asset made in accordance with
GAAP), all as presented on the Company’s consolidated financial statements.

 

“Container Assets” means all assets and
property of the Company and its Subsidiaries used in the Container Business.

 

“Container Business” means all aspects of the
business of (a) acquiring, by purchase, lease or otherwise, manufacturing,
improving, using, maintaining, repairing, leasing, selling and otherwise
disposing of marine and intermodal cargo containers and flat racks of all
kinds, chassis for the transportation of containers and flat racks by road or
railway and cranes for the handling of such containers and flat racks, (b)
designing, holding, acquiring by purchase, charter or otherwise, of vessels for
the transportation of such containers, flat racks and chassis by sea or on
inland waterways and improving, outfitting, using, maintaining, repairing,
chartering to third Persons and selling or otherwise disposing of such vessels,
(c) acquiring, either alone or jointly with one or more Affiliates by purchase,
lease or otherwise, real property or interests therein principally for use by
the Company or any Subsidiary engaged in the Container Business as office
space, terminals or facilities for the manufacturing or repairing of containers
and related equipment and constructing buildings and other improvements thereon
and, to the extent incidental to such principal use, the selling, leasing to
third Persons or otherwise disposing of remaining unused real property and/or
unused improvements thereon, (d) providing insurance against casualty risks of
all kinds, and against personal liabilities for injury to third persons or
their property, occurring or arising in the conduct of the business described
in preceding clauses (a) through (c), (e) providing or arranging financing for
the aforesaid activities and (f) activities incidental to or integrated with
those mentioned above.

 

“Conversion Date” has the meaning specified in
Section 3.12(d).

 

“Conversion Event” means the cessation of use
of (i) a Foreign Currency both by the government of the country which issued
such 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 office of
the Trustee at which at any particular time its corporate trust business shall
be principally administered, which office at the date of execution of this
Indenture is located at 101 Barclay Street, New York, New York 10286.

 

“corporation” includes corporations,
associations, companies and business trusts.

 

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

 

“Currency” means any currency or currencies,
composite currency or currency unit or currency units 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 Agreement” means any foreign exchange
contract, currency swap agreement or other similar agreement or arrangements
designed to protect the Company or any Subsidiary against fluctuations in
currency values.

 

8

 

“December 31 Balance Sheet” means the
consolidated balance sheet of the Company and its Subsidiaries as at December
31, 1995, as included in the Company’s Annual Report on Form 10-K for the year
ended December 31, 1995.

 

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

 

“Defaulted Interest” has the meaning specified
in Section 3.07.

 

“Dollar” or “$” means a dollar or other
equivalent unit in such coin or currency of the United States of America as at
the time shall be legal tender for the payment of public and private debts.

 

“Election Date” has the meaning specified in
Section 3.12(h).

 

“euro” means the single currency of
Participating Member States of the European Union.

 

“Euroclear” means Morgan Guaranty Trust Company
of New York, Brussels Office, or its successor as operator of the Euroclear
System.

 

“Event of Default” has the meaning specified in
Article Five.

 

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

 

“Exchange Rate Agent”, with respect to
Securities of or within any series, means, unless otherwise specified with
respect to any Securities pursuant to Section 3.01, a New York Clearing House
bank designated pursuant to Section 3.01 or Section 3.13.

 

“Exchange Rate Officer’s Certificate” means a
certificate setting forth (i) the applicable Market Exchange Rate or the
applicable bid quotation and (ii) the Dollar or Foreign Currency amounts of
principal, premium, if any, and interest, if any (on an aggregate basis and on
the basis of a Security having the lowest denomination principal amount determined
in accordance with Section 3.02 in the relevant currency or currency unit),
payable with respect to a Security of any series on the basis of such Market
Exchange Rate or the applicable bid quotation, signed by the Chief Financial
Officer, the Treasurer, any Vice President or any Assistant Treasurer of the
Company.

 

“Fair Market Value” means, with respect to any
asset or property, the sale value that would be obtained in an arm’s length
transaction between an informed and willing seller under no compulsion to sell
and an informed and willing buyer.

 

“Federal Bankruptcy Code” means the Bankruptcy
Reform Act of 1978, as codified in Title 11 of the United States Code, as
amended from time to time.

 

“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.

 

9

 

“Generally Accepted Accounting Principles” or “GAAP”
means generally accepted accounting principles in the United States,
consistently applied, as in effect as of the date of this Indenture, including,
without limitation, those 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 Accounting
Standards Board or in such other statements by such other entity as approved by
a significant segment of the accounting profession.

 

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

 

“Group Loan Agreements” means (i) the Loan
Agreement, dated as of July 24, 1998, as amended from time to time, among the
Company and certain of its Subsidiaries, as borrowers, and the Banks named
therein, (ii) the Amended and Restated Indenture, dated as of July 16, 2001,
between The Bank of New York, as trustee, and Sea Containers SPC Ltd., (iii)
the Amended and Restated Loan Agreement, dated as of July 16, 2001, between the
Company and First Union National Bank, (iv) the Term Loan and Revolving Credit
Facility Agreement, dated November 5, 2003, among Silja Oyj Abp, certain
Silja subsidiaries and a syndicate of lending banks, (v) the Loan Facility
Agreement, dated November 5, 2003, among the Company, Silja Oyj Abp, certain
Silja subsidiaries and a syndicate of lending banks, (vi) the Term Loan
Agreement, dated as of March 11, 2002, among GE SeaCo SRL, the banks signatory
thereto, and ING Bank N.V., as Agent and Arranger, (vii) the Amended and
Restated Indenture, dated as of November 26, 2002, as supplemented, between GE
SeaCo Finance SRL and The Bank of New York, as Indenture Trustee, and (viii)
the Loan Facility Agreement, dated as of June 9, 2003, among GE SeaCo SRL, the
banks signatory thereto, and Fleet National Bank, as Administrative Agent
Documentation Agent, Assigning Bank and Swing Line Bank, and (ix) the Loan
Agreement, dated as of March 5, 1993, between Fahrschiff Europa Kb and
Kreditanstalt fur Wiederaufbau and Norddeutsche Landesbank, and includes any
amendments, renewals, extensions or refundings of such agreements.

 

“Guaranty” means, as applied to any obligation,
(1) a guaranty (other than by endorsement of negotiable instruments for
collection in the ordinary course of business), direct or indirect, in any
manner, of any part or all of such obligation and (2) an agreement, direct or 

 

10

 

indirect,
contingent or otherwise, the practical effect of which is to assure in any way
the payment or performance (or payment of damages in the event of
non-performance) of any part or all of such obligation, including, without
limiting the foregoing, the payment of amounts drawn down by letters of credit.

 

“Holder” means, in the case of a Registered
Security, the Person in whose name a Security is registered in the Security
Register and, in the case of a Bearer Security, the bearer thereof and, when
used with respect to any coupon, shall mean the bearer thereof.

 

“Included Stock”, with respect to any series of
Securities, means (i) Preferred Shares (including Redeemable Capital Stock) of
the Company or any of its Subsidiaries outstanding on the date of this
Indenture and Preferred Shares issued to refinance such Preferred Shares as
permitted by Section 10.09(b)(iv) and (ii) Redeemable Capital Stock of the
Company or any of its Subsidiaries issued after the date of this Indenture.

 

“Incur” means, with respect to any
Indebtedness, to incur, create, issue, assume or directly or indirectly
Guaranty or otherwise in any manner become directly or indirectly liable for or
with respect to, or become responsible for, the payment of, contingently or otherwise,
such Indebtedness; provided, however, that neither the accrual of
interest (whether such interest is payable in cash or kind) nor the accretion
of original issue discount shall be considered an Incurrence of Indebtedness.

 

“Indebtedness” of any Person means, at any
date, without duplication, (i) all obligations of such Person for borrowed
money, (ii) all obligations of such Person evidenced by bonds, notes,
debentures or other similar instruments, (iii) all obligations of such Person
in respect of letters of credit or bankers’ acceptances or other similar
instruments (or reimbursement obligations with respect thereto), (iv) all
obligations of such Person as lessee under Capital Lease Obligations, (v) all
Indebtedness of others secured by a Lien on any asset of such Person, whether
or not such Indebtedness is assumed by such Person, (vi) all Indebtedness of
others Guaranteed by such Person, (vii) all Redeemable Capital Stock valued at
the mandatory liquidation preference or redemption price plus accrued and
unpaid dividends, (viii) to the extent not otherwise included, obligations
under Currency Agreements and Interest Rate Agreements and (ix) all obligations
of such Person to pay the deferred and unpaid purchase price of property or
services, which purchase price is due more than six months after the date of
placing such property in service or taking delivery and title thereto or the
completion of such services, except trade payables accrued in the ordinary
course of business.

 

“Indenture”, with respect to any series of
Securities, means this instrument as originally executed (including all
exhibits and schedules hereto) and as it may from time to time be supplemented
or amended by one or more indentures supplemental hereto entered into pursuant
to the applicable provisions hereof, and shall include the terms of that series
of Securities established as contemplated by Section 3.01; provided, however,
that, if at any time more than one Person is acting as Trustee under this
instrument, “Indenture” shall mean, with respect to any one or more series of
Securities for which such Person is Trustee, this instrument as originally
executed or as it may from time to time be supplemented or amended by one or
more indentures supplemental hereto entered into pursuant to the applicable
provisions hereof and shall include the terms of those particular series of
Securities for which such Person is 

 

11

 

Trustee
established as contemplated by Section 3.01, exclusive, however, of any
provisions or terms which relate solely to other series of Securities for which
such Person is not Trustee, regardless of when such terms or provisions were
adopted, and exclusive of any provisions or terms adopted by means of one or
more indentures supplemental hereto executed and delivered after such Person
had become such Trustee but to which such Person, as such Trustee, was not a
party.

 

“Indexed Security” means a series of Securities
as to which all or certain interest payments and/or the principal amount
payable at Maturity are determined by reference to prices, changes in prices,
or differences between prices, of securities, Currencies, intangibles, goods,
articles or commodities or by such other objective price, economic or other
measures as are specified in Section 3.01 hereof.

 

“interest”, when used with respect to an
Original Issue Discount Security which by its terms bears interest only after
Maturity, shall mean interest payable after Maturity, and, when used with
respect to a Security which provides for the payment of Additional Amounts
pursuant to Section 10.04, includes such Additional Amounts.

 

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

 

“Interest Rate Agreements” means the
obligations of any Person pursuant to any arrangement with any other Person
whereby, directly or indirectly, such Person is entitled to receive from time
to time periodic payments calculated by applying either a fixed or floating
rate of interest on a stated notional amount in exchange for periodic payments
made by such Person calculated by applying a fixed or floating rate of interest
on the same notional amount or pursuant to any interest rate protection
agreement, interest rate future, interest rate option or other interest rate
hedge arrangement.

 

“Investment” means, directly or indirectly, any
advance, loan or other extension of credit (other than a Guaranty) or capital
contribution to (by means of any transfer of cash or other property to others
or any payment for property or services for the account or use of others) or
any purchase or acquisition by such Person of any Capital Stock, bonds, notes,
debentures or other securities issued or owned by, any other Person.

 

“Investment Grade Ratings” has the meaning set
forth in Section 10.22.

 

“Leisure Industry Assets” means hotels and
other leisure industry assets and related property owned by the Company or any
of its Subsidiaries, including the stock of OEHL or any of its Subsidiaries (or
any successor thereto).

 

“Lien” means any mortgage, charge, pledge,
lien, privilege, security interest or encumbrance of any kind (including,
without limitation, any conditional sale or other title retention agreement or
lease in the nature thereof, any sale with recourse against the seller or any
Affiliate of the seller, or any agreement to give any security interest).

 

“Market Exchange Rate” means, unless otherwise
specified with respect to any series of the Securities pursuant to Section 3.01,
(i) for any conversion involving a currency unit 

 

12

 

on the one hand
and Dollars or any Foreign Currency on the other, the exchange rate between the
relevant currency unit and Dollars or such Foreign Currency calculated by the
method specified pursuant to Section 3.01 for the Securities of the relevant
series, (ii) for any conversion of Dollars into any Foreign Currency, the noon
buying rate for such Foreign Currency for cable transfers quoted in New York
City as certified for customs purposes by the Federal Reserve Bank of New York
and (iii) for any conversion of one Foreign Currency into Dollars or another
Foreign Currency, the spot rate at noon local time in the relevant market at
which, in accordance with normal banking procedures, the Dollars or Foreign
Currency into which conversion is being made could be purchased with the
Foreign Currency from which conversion is being made from major banks located
in either New York City, London or any other principal market for Dollars or
such purchased Foreign Currency, in each case determined by the Exchange Rate
Agent.  Unless otherwise specified with
respect to any Securities pursuant to Section 3.01, in the event of the
unavailability of any of the exchange rates provided for in the foregoing
clauses (i), (ii) and (iii), the Exchange Rate 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, London or other principal market
for such currency or currency unit in question, or such other quotations as the
Exchange Rate Agent shall deem appropriate. 
Unless otherwise specified by the Exchange Rate Agent, if there is more
than one market for dealing in any currency or currency unit by reason of
foreign exchange regulations or otherwise, the market to be used in respect of
such currency or currency unit shall be that upon which a nonresident issuer of
securities designated in such currency or currency unit would purchase such
currency or currency unit in order to make payments in respect of such
securities.

 

“Maritime Shipping and Rail Transport Businesses”
means:

 

(a)           the Container
Business;

 

(b)           all aspects of the
maritime shipping and ferry business in lawful trades other than the Container
Business, including the acquisition of the title to or the right to possess and
use ships of kinds other than those designed primarily for use in the Container
Business, the outfitting, furnishing, supplying, management, manning, use,
operation, chartering, sale and other disposition of such ships and the
acquisition, ownership, management and operation of ports and harbor facilities
servicing any such ships;

 

(c)           the insurance
business (subject to applicable statutory and regulatory limitations) related
to the activities described in clause (b) above;

 

(d)           all aspects of the
passenger and freight rail transport businesses, including the ownership,
management, use, operation, leasing and sale of railroads and railroad
franchises and equipment and related interests in real property, and

 

(e)           business and
activities incidental to or integrated with the foregoing.

 

“Material Subsidiary” means, at any particular time,
any Subsidiary that, together with the Subsidiaries of such Subsidiary, (a)
accounted for more than 10% of the Consolidated 

 

13

 

Revenues of the
Company and its Subsidiaries for the most recently completed fiscal year or (b)
was the owner of more than 10% of the consolidated assets of the Company and
its Subsidiaries as at the end of such fiscal year, all as shown on the
consolidated financial statements of the Company and its Subsidiaries for such
fiscal year.

 

“Maturity”, when used with respect to any
series of Securities, means the date on which the principal of such series or
an installment of principal becomes due and payable as therein or herein
provided, whether at the Stated Maturity, on the Change of Control Purchase
Date, and whether by redemption, declaration of acceleration, notice of option
to elect repayment, Change of Control, notice of exchange or conversion, or
otherwise.

 

“Minimum Consolidated Tangible Net Worth” means
$175,000,000.

 

“Net Cash Proceeds” means, with respect to any
Asset Sale, the proceeds thereof in the form of cash or Cash Equivalents
including payments in respect of deferred payment obligations when received in
the form of cash or Cash Equivalents (except to the extent that such
obligations are financed or sold with recourse to the Company or any
Subsidiary) net of (i) brokerage commissions and other fees and expenses
(including fees and expenses of legal counsel and investment bankers) related
to such Asset Sale, (ii) provisions for all taxes payable as a result of such
Asset Sale, (iii) amounts required to be paid to any Person (other than the
Company or any Subsidiary) owning a beneficial interest in the assets subject
to the Asset Sale and (iv) appropriate amounts to be provided by the Company or
any Subsidiary, as the case may be, as a reserve required in accordance with
GAAP consistently applied against any liabilities associated with such Asset
Sale and retained by the Company or any Subsidiary, as the case may be, after
such Asset Sale, including, without limitation, pension and other
post-employment benefit liabilities, liabilities related to environmental
matters and liabilities under any indemnification obligations associated with
such Asset Sale.

 

“OEHL” means Orient-Express Hotels Ltd., a
Bermuda Company, approximately 42%-owned by the Company as of the date of this
Indenture.

 

“Officers’ Certificate” means a certificate
signed by (i) the President, any Executive Vice President, any Senior Vice
President or any Vice President of the Company and (ii) the Secretary or any
Assistant Secretary of the Company and delivered to the Trustee; provided,
however, that such certificate may be signed by two of the officers
listed in clause (i) above in lieu of being signed by one of such officers
listed in such clause (i) and one of the officers listed in clause (ii) above.

 

“Opinion of Counsel” means a written opinion of
counsel, who may be counsel for the Company. 
Each such opinion shall include the statements provided for in Trust
Indenture Act Section 314(e) to the extent applicable.

 

“Original Issue Discount Security” means any
series of the Securities which provides for an amount less than the principal
amount thereof to be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 5.02.

 

“Other Assets” means any assets and property of
the Company or its Subsidiaries other than Container Assets, Passenger
Transport Assets or Leisure Industry Assets.

 

14

 

“Other Senior Note Indentures” means the
indentures under which the Company issued its (i) 103⁄4% Senior Notes due 2006,
(ii) 13% Senior Notes due 2006, (iii) 77/8% Senior Notes
due 2008, and (iv) 121⁄2% Senior Notes due 2009.

 

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

 

(i)            Securities of such
series theretofore cancelled by the Trustee or delivered to the Trustee for
cancellation;

 

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

 

(iii)          Securities of such
series, except to the extent provided in Sections 14.02 and 14.03, with respect
to which the Company has effected defeasance and/or covenant defeasance as
provided in Article Fourteen; and

 

(iv)          Securities of such
series which have been paid pursuant to Section 3.06, or in exchange for or in
lieu of which other Securities of such series have been authenticated and
delivered pursuant to this Indenture, other than any such Securities in respect
of which there shall have been presented to the Trustee proof satisfactory to
it that such Securities are held by a bona fide purchaser in whose hands such
Securities are valid obligations of the Company;

 

provided, however, that, in
determining whether the Holders of the requisite principal amount of any series
of Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder or are present at a meeting of
Holders for quorum purposes, and for the purpose of making the calculations
required by TIA Section 313, (i) the principal amount of an Original Issue
Discount Security that may be counted in making such determination or
calculation and that shall be deemed to be Outstanding for such purpose shall
be equal to the amount of principal thereof that would be (or shall have been
declared to be) due and payable, at the time of such determination, upon a
declaration of acceleration of the Maturity thereof pursuant to Section 5.02,
(ii) the principal amount of any series of the Securities denominated in a
Foreign Currency that may be counted in making such determination or calculation
and that shall be deemed Outstanding for such purpose shall be equal to the
Dollar equivalent, determined as of the date such series is originally issued
by the Company as set forth in an Exchange Rate Officer’s Certificate delivered
to the Trustee, of the principal amount (or, in the case of an Original Issue
Discount Security or Indexed Security, the Dollar equivalent as of such date of
original issuance of the amount determined as provided in clause (i) above or
(iii) below, respectively) of such Security, (iii) the principal amount of any
Indexed Security that may 

 

15

 

be counted in making such
determination or calculation and that shall be deemed outstanding for such
purpose shall be equal to the principal face amount of such Indexed Security at
original issuance, unless otherwise provided with respect to such Security
pursuant to Section 3.01, and (iv) a series of the Securities owned by the
Company or any other obligor upon such series or any Affiliate or of such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in making such calculation
or in relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Securities which a Responsible Officer of the Trustee
actually knows to be so owned shall be so disregarded.  Securities so owned which have been pledged
in good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such
Securities and that the pledgee is not the Company or any other obligor upon
the Securities or any Affiliate or of such other obligor.

 

“Participating Member State” means each state
so described in any legislation of the European Union.

 

“Passenger Transport Assets” means all assets
and property of the Company and its Subsidiaries used in the Maritime Shipping
and Rail Transport Businesses, other than Container Assets.

 

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

 

“Permitted Holder” means any wholly owned
Subsidiary, James B. Sherwood or any “group” (as such term is used in Section
13(d) of the Exchange Act) of which James B. Sherwood is a member, and any
other Person who or which is an heir or legatee of James B. Sherwood and
receives any Voting Stock of the Company from the estate of James B. Sherwood
or the estate of any of the foregoing.

 

“Permitted Indebtedness”, with respect to any
series of the Securities, means any of the following Indebtedness of the
Company or any Subsidiary, as the case may be:

 

(i)            Indebtedness of the
Company or a Subsidiary outstanding on the date of this Indenture, including
but not limited to Indebtedness under the Group Loan Agreements in amounts
equal to or less than the amounts outstanding on such date;

 

(ii)           Indebtedness and
obligations of the Company under such series of the Securities (other than the
additional Securities of such series which may be issued after the original
issuance of the series) and the obligations relating to such series under this
Indenture;

 

(iii)          Indebtedness of a
Subsidiary to the Company or another Subsidiary, or to any Subsidiary;

 

(iv)          Senior Indebtedness
the proceeds of which are used to acquire or refinance assets used in the
Maritime Shipping and Rail Transport Businesses; provided that the
aggregate amount of Indebtedness the proceeds of which were used to acquire or 

 

16

 

refinance
assets used in the Maritime Shipping and Rail Transport Businesses (whether
Incurred pursuant to this provision or any other provision of this Indenture)
shall not exceed 90% of the book value (after giving effect to related
deductions for accumulated depreciation) of all assets used in the Maritime
Shipping and Rail Transport Businesses; and provided  further that
the aggregate amount of Permitted Indebtedness Incurred under this clause (iv),
and under the corresponding clause in Sea Containers' Other Senior Note
Indentures, from July 1, 1996 (the date specified in the corresponding clause
in each of Sea Containers' Other Senior Note Indentures), shall not exceed
$300,000,000, of which no more than $150,000,000 may be Incurred in any fiscal
year of the Company;

 

(v)           Indebtedness of the
Company or its Subsidiaries represented by documentary, insurance or trade
letters of credit issued in the ordinary course of business, and standby
letters of credit, the total aggregate amount of such letters of credit not
exceeding an aggregate amount of $50,000,000 at any one time outstanding;

 

(vi)          Indebtedness for
working capital purposes of the Company or its Subsidiaries not to exceed
$75,000,000 in principal amount at any one time outstanding;

 

(vii)         Indebtedness of the
Company or its Subsidiaries arising as a result of Guaranties by the Company or
its Subsidiaries of Indebtedness of Persons (other than Subsidiaries), which
Guaranties are Incurred after the date of this Indenture, and shall not exceed
$25,000,000 at any one time outstanding;

 

(viii)        Indebtedness of the
Company under Currency Agreements and Interest Rate Agreements, provided
that such agreements do not increase the Indebtedness of the Company or a
Subsidiary outstanding other than as a result of fluctuations in interest rates
or foreign currency exchange rates or by reason of fees, indemnities and
compensation payable thereunder; and

 

(ix)           Indebtedness
(including Redeemable Capital Stock) used to replace, renew, refinance or
refund Indebtedness outstanding on the date of this Indenture, Permitted
Indebtedness Incurred pursuant to clause (iv) of this definition of Permitted
Indebtedness or other Indebtedness Incurred in accordance with Section 10.08
(excluding Permitted Indebtedness), in a principal amount (or, if such
Indebtedness does not require cash payments prior to maturity, with an original
issue price of such Indebtedness) not to exceed the lesser of (a) the principal
amount (or mandatory liquidation preference, in the case of Redeemable Capital
Stock) of the Indebtedness so replaced, renewed, refinanced or refunded (or, if
the Indebtedness being replaced, renewed, refinanced or refunded was issued
with an original issue discount, the original issue price plus the amortized
portion of the original issue discount to the date that such replacing,
renewing, refinancing or refunding Indebtedness was Incurred) or (b) the
principal amount (or mandatory liquidation preference, in the case of
Redeemable Capital Stock) or original issue price plus amortized original issue
discount, as the case may be, of such Indebtedness as of the date of this
Indenture, plus any prepayment penalties and premiums, accrued and unpaid
interest on the Indebtedness so replaced, renewed, refinanced or refunded, plus
customary fees, expenses and costs related to the Incurrence of such replacing,
renewing, refinancing or refunding Indebtedness; provided that, if the
Indebtedness being replaced, renewed, refinanced or refunded is Indebtedness of
the Company, such replacing, renewing, refinancing or refunding shall be
Indebtedness of the Company; provided 

 

17

 

further
that immediately after giving effect to such replacing, renewing, refinancing
or refunding, no Default or Event of Default under the series of Securities
shall have occurred and be continuing; and provided  further that
Indebtedness used to replace, renew, refinance or refund Indebtedness of the
Company that is pari  passu or subordinated in right of payment to
such series of the Securities will only be permitted if (x) such new
Indebtedness is expressly pari  passu or subordinated in right of
payment to the Securities of that series at least to the same extent that the
Indebtedness to be replaced, renewed, refinanced or refunded is pari  passu
or subordinated to the series and (y) the Average Life to Stated Maturity and
Stated Maturity of such Indebtedness exceed the Average Life to Stated Maturity
and Stated Maturity, respectively, of the Securities of that series.

 

For the purpose of determining the amount of
outstanding Indebtedness under any of the foregoing clauses, there shall be
included (A) the principal amount then outstanding that was originally Incurred
pursuant to such clause; (B) any outstanding Indebtedness Incurred pursuant to
clause (ix) to replace, renew, refinance or refund Indebtedness originally
Incurred pursuant to such clause; and (C) any subsequent replacements, renewals,
refinancings or refundings thereof.

 

“Permitted Investment”, with respect to any
series of Securities, means an Investment which consists of any one or more of
the following:

 

(i)            Investments in a
Subsidiary;

 

(ii)           Investments in
United States Treasury securities or other government securities having the
highest rating from Standard & Poor’s Ratings Services, a division of the
McGraw-Hill Companies, Inc., or Moody’s Investors Service, Inc. pledged to
secure collateralized senior notes so long as the entire purchase price for
such securities consists of proceeds from the issuance of such senior notes;

 

(iii)          Cash Equivalents;

 

(iv)          (I) Investments in
Persons whose principal business is one or more aspects of the Maritime
Shipping and Rail Transport Businesses and (II) Investments in other Persons
engaged in a business in which the Company is permitted to be engaged under
Section 10.18 and with whom the Company or one of its Subsidiaries,
substantially contemporaneously with such Investment, enters into a management
contract to manage the business of such other Person or a contract pursuant to
which the Company or one of its Subsidiaries leases or charters, or has the
right of first refusal to lease or charter, assets or property of the Company
or any of its Subsidiaries to such other Person, so long as the Board of
Directors determines that such Investment is necessary to obtain the management
contract, lease, charter or right of first refusal; provided that in the
case of each of I and II (x) after giving effect to such Investment, the
Company could Incur $1.00 of additional Indebtedness under Section 10.08 (which
is not Permitted Indebtedness), and (y) such Investment would not cause the
maximum aggregate amount invested under this clause (iv) at such time to exceed
20% of the Company’s Consolidated Tangible Net Worth; (in calculating the
amount invested under this clause (iv), such amount shall be 

 

18

 

reduced by an
amount equal to the net reduction in Investments in any third Person not a
Subsidiary resulting from payments of interest on Indebtedness, dividends,
repayments of loans or advances, or other transfers of assets, in each case to
the Company or any Subsidiary from any such third Person and by any amount
received by the Company or any Subsidiary from any such third Person pursuant
to any management contract, lease or charter; provided that such
payments (a) were not otherwise included in the Consolidated Net Income of the
Company and (b) do not exceed, in the case of such third Person, the amount of
Investments previously made by the Company or any Subsidiary in such third
Person);

 

(v)           Negotiable
instruments held for collection; outstanding travel, moving and other like
advances to officers, employees and consultants; or lease, utility and other
similar deposits, in each of the foregoing cases in the ordinary course of
business of the Company or a Subsidiary, as the case may be;

 

(vi)          Investments in the
Securities of that series; and

 

(vii)         Investments in
equity securities that have been accepted for trading by a registered
securities exchange or automated quotation system of the United States acquired
by the Company or a Subsidiary as consideration for the sale of assets by the
Company or such Subsidiary; provided, such securities shall only be a Permitted
Investment until the 180th day following the acquisition thereof.

 

“Permitted Liens”, with respect to any series
of Securities, shall mean:

 

(a)           operating leases or
charters of assets or property entered into in the ordinary course of business;

 

(b)           Liens for taxes,
assessments, governmental charges or claims that are not due or which are being
contested in good faith by appropriate proceedings and as to which the Company
or its Subsidiaries shall have set aside on its books such reserves as may be
required pursuant to GAAP;

 

(c)           statutory Liens of
landlords and Liens of carriers, warehousemen, mechanics, suppliers,
materialmen, repairmen and any other like Liens imposed by law and incidental
to the ordinary conduct of the business of the Company or a Subsidiary, which
are not incurred in connection with the borrowing of money and which do not
materially impair the use of such property in the operation of the business of
the Company and its Subsidiaries and which are not overdue for a period of more
than 60 days or which are being contested in good faith by appropriate
proceedings;

 

(d)           Liens Incurred or
deposits made in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other types of social security;

 

(e)           Liens Incurred or
deposits made to secure the performance of tenders, bids, leases, statutory
obligations, surety and appeal bonds, government contracts and 

 

19

 

other
obligations of a like nature incurred in the ordinary course of business
(exclusive of obligations for borrowed money);

 

(f)            easements,
rights-of-way, restrictions, minor defects or irregularities in title and other
similar charges or encumbrances not interfering in any material respect with
the business of the Company or any of its Subsidiaries;

 

(g)           judgment Liens in
connection with legal proceedings which do not otherwise give rise to a Default
or Event of Default;

 

(h)           Liens on government
securities permitted under clause (ii) of the definition of “Permitted
Investment”; and

 

(i)            Liens (other than
those described in paragraphs (a) through (h) above) on any asset or property
of the Company or any of its Subsidiaries, or any shares of capital stock of
any Subsidiary, or any income or profits thereon or proceeds thereof, securing
Indebtedness, provided that the aggregate amount of such Indebtedness
secured by (i) Container Assets does not exceed 90% of the net book value of
all Container Assets; (ii) Passenger Transport Assets does not exceed 90% of
the net book value of all Passenger Transport Assets; (iii) Leisure Industry
Assets does not exceed 80% of the Fair Market Value of all Leisure Industry
Assets; and (iv) Other Assets does not exceed 80% of the net book value of all
Other Assets.  To the extent that any
Indebtedness is secured by the stock of a Subsidiary, the net book value or
Fair Market Value, as the case may be, of all assets of such Subsidiary, to the
extent that the value of such assets is not otherwise subject to a Lien, shall
be counted in determining the amount of Indebtedness secured by Container
Assets, Passenger Transport Assets, Leisure Industry Assets or Other Assets, as
the case may be, for purposes of this clause (i).  For purposes of this clause (i), Investments in the Container
Business, the Maritime Shipping and Rail Transport Businesses (other than the
Container Business) and Leisure Industry Assets shall be treated as Container
Assets, Passenger Transport Assets and Leisure Industry Assets, respectively,
and all other Investments and cash shall be treated as Other Assets.

 

In determining the amount of Liens securing
Indebtedness pursuant to clause (i) immediately above, there shall be included
the aggregate Attributable Debt in respect of any Sale and Leaseback
Transactions relating to Container Assets, Passenger Transport Assets, Leisure
Industry Assets or Other Assets, as the case may be, in existence at such time
(excluding Sale and Leaseback Transactions the proceeds of which have been
applied in accordance with Section 10.11(d) and Sale and Leaseback Transactions
permitted under Section 10.11(b) or (c)).

 

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

 

“Place of Payment”, when used with respect to
the Securities of any series or any coupons, means the place or places where
the principal of, premium, if any, and interest, if any, on such series are
payable as specified and as contemplated by Sections 3.01 and 10.02.

 

20

 

“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 3.06 in
exchange for a mutilated Security or in lieu of a destroyed, lost or stolen
Security or a Security to which a mutilated, destroyed, lost or stolen coupon
appertains shall be deemed to evidence the same debt as the mutilated,
destroyed, lost or stolen Security or the Security to which the mutilated,
destroyed, lost or stolen coupon appertains.

 

“Preferred Shares” mean, with respect to any
Person, any and all shares, interests, participations or other equivalents
(however designated) of such Person’s preferred or preference stock whether now
outstanding or issued after the date of this Indenture, and includes, without
limitation, all classes and series of preferred or preference stock.

 

“Redeemable Capital Stock”, with respect to any
series of Securities, means any Capital Stock that, either by its terms, by the
terms of any security into which it is convertible or exchangeable or
otherwise, (i) is or upon the happening of an event or passage of time would be
required to be redeemed prior to the final Stated Maturity of such series, (ii)
is redeemable at the option of the holder thereof at any time prior to such
final Stated Maturity, or (iii) is convertible into or exchangeable for Capital
Stock referred to in clause (i) or (ii) above or Indebtedness having a
scheduled maturity prior to the final Stated Maturity of such series, provided
that Capital Stock that otherwise would not constitute Redeemable Capital Stock
shall not constitute Redeemable Capital Stock because it provides for the
redemption or acquisition of such Capital Stock in the event of a change of
control of the Company so long as the definition of change of control in such
instrument does not include a change of control that would not constitute a
Change of Control.

 

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

 

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

 

“Reference Period” means the most recent four
full consecutive fiscal quarters for which financial information in respect
thereof is available immediately prior to the Transaction Date, taken as one
accounting period.

 

“Registered Security” shall mean any Security
which is registered in the Security Register.

 

“Regular Record Date” for the interest payable
on any Interest Payment Date on the Registered Securities of any series means
the dated specified for that purpose as contemplated by Section 3.01 (whether
or not a Business Day).

 

“Relevant Prospectus” means the prospectus as
amended or supplemented from time to time, used to offer and sell a particular
series of Securities.

 

“Repayment Date” means, when used with respect
to any Security to be repaid at the option of the Holder, the date fixed for
such repayment by or pursuant to this Indenture.

 

21

 

“Repayment Price” means, when used with respect
to any Security to be repaid at the option of the Holder, the price at which it
is to be repaid by or pursuant to this Indenture.

 

“Responsible Officer”, when used with respect
to the Trustee, means any vice-president, any assistant secretary, any
assistant treasurer, any trust officer or assistant trust officer, or any other
officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers or assigned by the Trustee to
administer corporate trust matters at its Corporate Trust Office and also
means, with respect to a particular corporate trust matter, any other officer
to whom such matter is referred because of his knowledge of and familiarity
with the particular subject and who shall have direct responsibility for the
administration of this Indenture.

 

“Sale and Leaseback Transaction” means any
arrangement, directly or indirectly, with any Person providing for the leasing
by the Company or a Subsidiary of any property or assets in a transaction
pursuant to which such property or asset has been or is to be sold or
transferred by the Company or a Subsidiary to such Person.

 

“Security” or “Securities” has the
meaning stated in the first recital of this Indenture and, more particularly,
means any Security or Securities authenticated and delivered under this Indenture;
provided, however, that, if at any time there is more than one
Person acting as Trustee under this Indenture, “Securities” with respect to the
Indenture as to which such Person is Trustee shall have the meaning stated in
the first recital of this Indenture and shall more particularly mean Securities
authenticated and delivered under this Indenture, exclusive, however, of
Securities of any series as to which such Person is not Trustee.

 

“Security Register” and “Security Registrar”
have the respective meanings specified in Section 3.05.

 

“Senior Indebtedness”, with respect to any
series of Securities, means (i) the principal of, premium, if any, and accrued
and unpaid interest (including all interest accruing subsequent to the
commencement of an insolvency proceeding, or which, but for such commencement,
would have accrued, whether or not such interest is an allowable claim
enforceable against the debtor under the Federal Bankruptcy Code or any similar
law) on, and any regularly accruing fees and reasonable expenses and all other
amounts payable under or in respect of, all Indebtedness of the Company and its
Subsidiaries (other than the 121⁄2% Senior Subordinated Debentures), including
letters of credit (and reimbursement agreements with respect thereto), unless
such Indebtedness, by its terms or by the terms of any agreement pursuant to
which such Indebtedness is issued, is subordinated in right of payment to such
series of the Securities and (ii) modifications, renewals, extensions and
refundings (including permitted increases and refinancings of the existing
Indebtedness of the Company and its Subsidiaries) of any of the foregoing
obligations unless the foregoing obligations or such modifications, renewals,
extensions and refundings thereof provide by their terms, or by the terms of
any agreement or instrument pursuant to which such Indebtedness is issued, that
such Indebtedness shall be subordinated in right of payment to such series of
the Securities.  Notwithstanding the
foregoing, “Senior Indebtedness” shall not include (i) Indebtedness evidenced
by the 121⁄2% Senior Subordinated Debentures, (ii) Indebtedness that is
subordinated or junior in right of payment to any Indebtedness of the Company,
(iii) any liability for federal, state, provincial, 

 

22

 

local or other
taxes owed or owing by the Company, (iv) Indebtedness of the Company to a
Subsidiary or any other Affiliate of the Company or any of such Affiliate’s
subsidiaries, (v) amounts owing under leases (other than Capital Lease
Obligations and other than leases which but for the existence of a fair market
value purchase option would be a Capital Lease Obligation), (vi) any
Indebtedness of the Company that, when Incurred and without respect to any
election under Section 1111(b) of the Federal Bankruptcy Code, was without
recourse to the Company, (vii) any Indebtedness to any employee of the Company
or any of its Subsidiaries, (viii) any repurchase, redemption or other
obligation in respect of Redeemable Capital Stock and (ix) any trade payables.

 

“Special Record Date” for the payment of any
Defaulted Interest on any Registered Securities of or within any series means a
date fixed by the Trustee pursuant to Section 3.07(1).

 

“Stated Maturity”, when used with respect to
any series of Securities or any installment of principal thereof or interest
thereon, means the date specified in such series or a coupon representing such
installment of interest as the fixed date on which the principal of such series
or such installment of principal or interest is due and payable, as such date
may be extended pursuant to the provisions of Section 3.08, and when used with
respect to any other Indebtedness or any installment of principal or interest
thereon (or scheduled or required redemption or dividend payment), means the
date specified in such Indebtedness as the fixed date on which the principal
(or scheduled or required redemption or dividend payment) of such Indebtedness
or such installment of principal or interest (or scheduled or required
redemption or dividend payment) is due and payable.

 

“Subordinated Debenture Indenture” means the
Indenture, dated as of November 1, 1992, between the Company and The Bank of
New York, as successor to United States Trust Company of New York, as Trustee,
as the same has been and may be supplemented and amended from time to time,
providing for the 12 1⁄2 % Senior Subordinated Debentures.

 

“Subordinated Indebtedness” means any
Indebtedness of the Company or a Subsidiary that is expressly subordinated in
right of payment to any other Indebtedness of the Company or a Subsidiary.

 

“Subsidiary” means (i) any Person a majority of
the equity ownership or the Voting Stock of which is at the time owned,
directly or indirectly, by the Company or by one or more other Subsidiaries, or
by the Company and one or more such Subsidiaries, or (ii) GE SeaCo SRL, a joint
venture between the Company and General Electric Capital Corporation relating
to their respective container fleets (or any successor in interest thereto) for
so long as the Company owns, directly or indirectly, at least 50% of the voting
equity thereof.

 

“Transaction Date” with respect to any
calculation or determination required to be made under this Indenture means the
date of the event requiring such calculation or determination.

 

23

 

“Trust Indenture Act” or “TIA” means the
Trust Indenture Act of 1939, as amended, as in force at the date as of which
this Indenture was executed, except as provided in Section 9.05.

 

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

 

“121⁄2% Senior Subordinated Debentures” means the
$79,739,000 in current aggregate principal amount of 121⁄2% Senior Subordinated
Debentures due 2004 of the Company, of which Series A was issued on November
19, 1992 and Series B was issued on February 4, 1993, in each case under the
Subordinated Debenture Indenture.

 

“United States” means, unless otherwise
specified with respect to any Securities pursuant to Section 3.01, the United
States of America (including the states and the District of Columbia), its territories,
its possessions and other areas subject to its jurisdiction.

 

“United States person” means, unless otherwise
specified with respect to any Securities pursuant to Section 3.01, 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.

 

“Voting Stock” means shares of the class or
classes pursuant to which the holders thereof have the general voting power
under ordinary circumstances to elect directors, managers or trustees of a
company or corporation (irrespective of whether or not at the time shares of
any other class or classes shall have or might have voting power by reason of
the happening of any contingency); as of the date of this Indenture, the
Company had two classes of Voting Stock, denominated Class A common shares and
Class B common shares.

 

“Yield to Maturity” means the yield to
maturity, computed at the time of issuance of a series of Security (or, if
applicable, at the most recent redetermination of interest on such series) and
as set forth in such series in accordance with generally accepted United States
bond yield computation principles.

 

24

 

SECTION
1.02  Other Definitions.

 

	
  Term

  	
   

  	
  Defined in

  Section

  
	
  “Act”

  	
   

  	
  1.05

  
	
  “Change in Tax Law”

  	
   

  	
  11.01(a)

  
	
  “Change of Control Notice”

  	
   

  	
  10.16(b)

  
	
  “Change of Control Purchase
  Date”

  	
   

  	
  10.16(a)

  
	
  “Change of Control Purchase
  Notice”

  	
   

  	
  10.16(c)

  
	
  “Change of Control Purchase
  Price”

  	
   

  	
  10.16(a)

  
	
  “Common Depository”

  	
   

  	
  3.04(b)

  
	
  “covenant defeasance”

  	
   

  	
  14.03

  
	
  “CSC”

  	
   

  	
  1.15

  
	
  “Defaulted Interest”

  	
   

  	
  3.07  

  
	
  “defeasance”

  	
   

  	
  14.02

  
	
  “Excess Proceeds”

  	
   

  	
  10.17(b)

  
	
  “Excess Proceeds Offer”

  	
   

  	
  10.17(c)

  
	
  “Excess Proceeds Payment”

  	
   

  	
  10.17(c)

  
	
  “Excess Proceeds Payment
  Date”

  	
   

  	
  10.17(c)(ii)

  
	
  “Exchange Date”

  	
   

  	
  3.04

  
	
  “incorporated provision”  

  	
   

  	
  1.08  

  
	
  “Offer”

  	
   

  	
  10.19

  
	
  “Optional Reset Date”

  	
   

  	
  3.07(b)

  
	
  “Purchase Date”

  	
   

  	
  10.19

  
	
  “rate(s) of exchange”

  	
   

  	
  1.16(b)

  
	
  “Replacement Assets”

  	
   

  	
  10.17(b)

  
	
  “Reset Notice”

  	
   

  	
  3.07(b)

  
	
  “Restricted Payments”

  	
   

  	
  10.09

  
	
  “SCA”

  	
   

  	
  1.15

  
	
  “Subsequent Interest Period”

  	
   

  	
  3.07(b)

  
	
  “Surviving Entity”

  	
   

  	
  8.01(1)

  
	
  “Valuation Date”

  	
   

  	
  3.12

  
	
   

  	
   

  	
   

  

 

SECTION 1.03 
Compliance Certificates and Opinions.

 

Upon any application or request by the Company to the
Trustee to take any action under any provision of this Indenture, the Company
shall furnish to the Trustee an Officers’ Certificate stating that all
conditions precedent, if any, provided for in this Indenture (including any
covenant compliance which constitutes a condition precedent) relating to the
proposed action have been complied with, and an Opinion of Counsel stating that
in the opinion of such counsel all such conditions precedent, if any, have been
complied with, except that, in the case of any such application or request as
to which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or request,
no additional certificate or opinion need be furnished.

 

Every certificate or opinion (other than the
certificates required by Section 10.20(a)) with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

 

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

 

25

 

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

 

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

 

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

 

SECTION 1.04 
Form of Documents Delivered to Trustee.

 

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

 

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

 

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

 

SECTION
1.05  Acts of Holders.

 

(a)           Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given or taken by Holders of the Outstanding Securities of all series or
one or more series, as the case may be, may be embodied in and evidenced by
either (x) one or more instruments of substantially similar tenor signed by
such Holders in person or by agents duly appointed in writing or (y) the record
of Holders of Securities of such series voting in favor thereof, either in
person or by proxies duly appointed in writing, at any meeting of Holders of
Securities of such series duly called and held in accordance with the
provisions of Article Fifteen, or a combination of such instruments and any
such record; and, except as herein otherwise expressly provided, such action
shall become effective when such instrument or 

 

26

 

instruments or record or
both are delivered to the Trustee and, where it is hereby expressly required,
to the Company.  Such instrument or
instruments and any such record (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the “Act” of the Holders signing
such instrument or instruments or so voting at any such meeting.  Proof of execution of any such instrument or
of a writing appointing any such agent, or of the holding by any Person of a
Security, shall be sufficient for any purpose of this Indenture and (subject to
Trust Indenture Act Section 315) conclusive in favor of the Trustee and the
Company, if made in the manner provided in this Section.  The record of any meeting of Holders of
Securities shall be proved in the manner provided in Section 15.06.

 

(b)           The fact and date of
the execution by and Person of any such instrument or writing may be proved in
any reasonable manner that the Trustee deems sufficient.

 

(c)           The ownership of
Registered Securities shall be proved by the Security Register.

 

(d)           The ownership of
Bearer Securities may be proved by the production of such Bearer Securities or
by a certificate executed, as depositary, by any trust company, bank, banker or
other depositary, wherever situated, if such certificate shall be deemed by the
Trustee to be satisfactory, showing that at the date therein mentioned such
Person had on deposit with such depositary, or exhibited to it, the Bearer
Securities therein described; or such facts may be proved by the certificate or
affidavit of the Person holding such Bearer Securities, if such certificate or
affidavit is deemed by the Trustee to be satisfactory.  The Trustee and the Company may assume that
such ownership of any Bearer Security continues until (1) another certificate
or affidavit bearing a later date issued in respect of the same Bearer Security
is produced, or (2) such Bearer Security is produced to the Trustee by some
other Person, or (3) such Bearer Security is surrendered in exchange for a
Registered Security, or (4) such Bearer Security is no longer Outstanding.  The ownership of Bearer Securities may also
be proved in any other manner that the Trustee deems sufficient.

 

(e)           If the Company shall
solicit from the Holders of any series of Registered Securities any request,
demand, authorization, direction, notice, consent, waiver or other Act, the
Company may, at its option, in or pursuant to a Board Resolution, fix in
advance a record date for the determination of such Holders entitled to give
such request, demand, authorization, direction, notice, consent, waiver or
other Act, but the Company shall have no obligation to do so.  Notwithstanding TIA Section 316(c), such
record date shall be the record date specified in or pursuant to such Board
Resolution, which shall be a date not earlier than the date 30 days prior to
the first solicitation of Holders generally in connection therewith and not
later than the date such solicitation is completed.  If such a record date is fixed, such request, demand,
authorization, direction, notice, consent, waiver or other Act may be given
before or after such record date, but only the Holders of record at the close
of business on such record date shall be deemed to be Holders for the purposes
of determining whether Holders of the requisite percentage of any series of
Outstanding Securities have authorized or agreed or consented to such request,
demand, authorization, direction, notice, consent, waiver or other Act, and for
that purpose the 

 

27

 

Outstanding
Securities shall be computed as of such record date; provided  however
that no such request, demand, authorization, direction, notice, consent or
other Act by the Holders on such record date shall be deemed effective unless
it shall become effective pursuant to the provisions of this Indenture, not
later than six months after the record date.

 

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

 

SECTION 1.06 
Notices, etc., to Trustee and Company.

 

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

 

(a)           the Trustee by any
Holder or the Company shall be sufficient for every purpose hereunder if made,
given, furnished or delivered, in writing, to or with the Trustee at its
Corporate Trust Office, Attention: 
Corporate Trust Administration; or

 

(b)           the Company by the
Trustee or by any Holder shall be sufficient for every purpose hereunder
(unless otherwise herein expressly provided) if made, given, furnished or
delivered in writing to the Company addressed to it at SEA CONTAINERS LTD., 22
Victoria Street, Hamilton, HM12, Bermuda, Attention:  Secretary (with a copy to (i) SEA CONTAINERS AMERICA INC., 1155
Avenue of the Americas, 30th Floor, New York, New York 10036, Attention:  General Counsel and (ii) SEA CONTAINERS
SERVICES LTD., 20 Upper Ground, London SE1 9PF, England, Attention:  General Counsel) or at any other address
furnished in writing to the Trustee by the Company.

 

SECTION 1.07 
Notice to Holders; Waiver.

 

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

 

28

 

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

 

If 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 to Holders of Registered Securities as shall be
made with the approval of the Trustee shall constitute a sufficient
notification to such Holders for every purpose hereunder.

 

Except as otherwise expressly provided herein or
otherwise specified with respect to any Securities pursuant to Section 3.01,
where this Indenture provides for notice to Holders of Bearer Securities of any
event, such notice shall be sufficiently given if published in an Authorized
Newspaper in The City of New York and in such other city or cities as may be
specified in such Securities on a Business Day in New York, such publication to
be not later than the latest date, and not earlier than the earliest date,
prescribed for the giving of such notice. 
Any such notice shall be deemed to have been given on the date of such
publication or, if published more than once, on the date of the first such
publication.

 

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

 

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

 

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

 

29

 

SECTION 1.08 
Conflict of any Provision of Indenture with
Trust Indenture Act, as Amended.

 

If any to the extent that any provision of this
Indenture limits, qualifies or conflict with the duties imposed by Sections 310
and 318, inclusive, of the Trust Indenture Act, or conflicts with any provision
(an “incorporated provisions”) required by or deemed to be included in their
Indenture by operation of such Trust Indenture Act Sections, such imposed duties
or incorporated provision shall control. 
If any provision of this Indenture modifies or excludes any provision of
the Trust Indenture Act that may be so modified or excluded, the latter
provision shall be deemed to apply to this Indenture as so modified or excluded
as the case may be.

 

SECTION 1.09 
Effect of Headings and Table of Contents.

 

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

 

SECTION 1.10 
Successors and Assigns.

 

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

 

SECTION
1.11  Separability Clause.

 

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

 

SECTION 1.12 Benefits of Indenture.

 

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

 

SECTION
1.13  Governing Law.

 

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

 

SECTION
1.14  Legal Holidays.

 

In any case where any Interest Payment Date,
Redemption Date, Repayment Date, sinking fund payment date, Stated Maturity or
Maturity of any Security shall not be a Business Day at any Place of Payment,
then (notwithstanding any other provision of this Indenture or any Security or
coupon other than a provision in the Securities of any series which
specifically states 

 

30

 

that such
provision shall apply in lieu of this Section), payment of principal, premium,
if any, or interest, if any, need not be made at such Place of Payment on such
date, but may be made on the next succeeding Business Day at such Place of
Payment with the same force and effect as if made on the Interest Payment Date,
Redemption Date, Repayment Date or sinking fund payment date, or at the Stated
Maturity or Maturity; provided that no interest shall accrue on the
amount so payable for the period from and after such Interest Payment Date,
Redemption Date, Repayment Date, sinking fund payment date, Stated Maturity or
Maturity, as the case may be to the next succeeding Business Day.

 

SECTION 1.15 
Consent to Jurisdiction and Service of
Process.

 

The Company agrees that any legal suit, action or
proceeding brought by any party to enforce any rights under or with respect to
this Indenture or the Securities or any coupon may be instituted in any state
or federal court in New York City and waives to the fullest extent permitted by
law any objection which it may now or hereafter have to the laying of venue of
any such suit, action or proceeding and irrevocably submits to the
non-exclusive jurisdiction of any such court in any such suit, action or
proceeding.  The Company hereby
irrevocably designates and appoints each of Sea Containers America Inc. (“SCA”)
and Corporation Service Company (“CSC”) as the Company’s authorized agents to
receive and forward on its behalf service of any and all process which may be
served in any such suit, action or proceeding in any such court and agrees that
service of process upon either or both SCA or any successor (provided, however,
that such service upon SCA or any successor shall only be required by this
Section 1.15 as long as SCA or such successor maintains an office at the
address set forth herein or at another address in New York City which the
Company has designated by written notice to the Trustee) at its office at 1155
Avenue of the Americas, 30th Floor, New York, New York 10036, and CSC or any
successor at its office at 80 State Street, Albany, New York 12207-2543 (or
such other address in the State of New York as the Company may designate by
written notice to the Trustee) and written notice of such service to the
Company marked or delivered to either or both SCA (subject to the foregoing
proviso) and CSC at their addresses set forth herein, shall be deemed in every
respect effective service of process upon the Company in any such suit, action
or proceeding and shall be taken and held to be valid personal service upon the
Company.  Nothing in this Section 1.15
shall affect the right of the Company or the Trustee to serve process in any
manner permitted by law or limit the right of any party hereto to bring
proceedings against the Company in the courts of any jurisdiction or
jurisdictions.  The Company further
agrees to take any and all action, including the execution and filing of any
and all such documents and instruments as may be necessary to continue such
designation and appointment of SCA and CSC in full force and effect so long as
this Indenture or any of the Securities shall be outstanding.  To the extent that the Company has or
hereafter may acquire any immunity from jurisdiction of any court or from any
legal process (whether through service of notice, attachment prior to judgment,
attachment in aid of execution, executor or otherwise) with respect to itself
or its property, the Company hereby irrevocably waives such immunity in respect
of its obligations under this Indenture and the Securities, to the extent
permitted by law.

 

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 

 

31

 

RELATING TO THIS
INDENTURE, THE SENIOR NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

SECTION 1.16 
Conversion of Currency.

 

(a)           The Company shall
indemnify the Holders against, and the Holders shall have an additional legal
claim for, any loss or damage which, consequent upon any judgment being
obtained or enforced in respect of the non-payment by the Company of any amount
due under or pursuant to this Indenture, arises from any variation in rates of
exchange between United States dollars and the currency in which judgment is
obtained or enforced between the date such amount became due (or the date of
the said judgment being obtained as the case may be) and the date of actual
payment of such amount.  The indemnity
contained in this Section 1.16 shall apply irrespective of any indulgence
granted to the Company from time to time and shall continue in full force and
effect notwithstanding any payment by or on behalf of the Company, and any
amount due from the Company under this Section 1.16 will be due as a separate
payment and shall not be affected by any judgment being obtained for any other
sums due under or in respect of this Indenture.

 

(b)           The term “rate(s) of
exchange” shall mean, unless otherwise specified with respect to any series of
Securities pursuant to Section 3.01, the rate, quoted at noon for transactions
in excess of $1,000,000, at which the Holder is able or would have been able on
the relevant date to purchase at Morgan Guaranty Trust Company of New York at
its main branch in New York City, United States dollars with the judgment
currency other than United States dollars referred to in Subsection (a) above
and includes any premiums and costs of exchange payable.

 

SECTION 1.17 
No Recourse Against Others.

 

A director, officer, employee or shareholder, as such,
of the Company shall not have any liability for any obligations of the Company
under the Securities or this Indenture or for any claim based on, in respect of
or by reason of such obligations or their creation.  Each Holder by accepting any of the Securities waives and
releases all such liability.

 

ARTICLE TWO

 

SECURITIES FORMS

 

SECTION 2.01
Forms of Securities.

 

The Registered Securities, if any, of each series and
the Bearer Securities, if any, of each series and related coupons shall be in
substantially the forms as shall be established in one or more indentures
supplemental hereto or approved from time to time by a Board Resolution in
accordance with Section 3.01, shall have such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
this Indenture or any indenture 

 

32

 

supplemental
hereto, and may have such letters, notations or other marks of identification
or designation and such legends or endorsements placed thereon as the Company
may deem appropriate and as are not inconsistent with the provisions of this
Indenture, or as may be required to comply with any law or with any rule or
regulation made pursuant thereto or with any rule or regulation of any stock
exchange on which the Securities may be listed, or to conform to usage.

 

Unless otherwise specified as contemplated by Section
3.01, Bearer Securities shall have interest coupons attached.

 

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

 

SECTION 2.02 
Securities Issuable in Global Form.

 

If Securities of or within a series are issuable in
global form, as specified as contemplated by Section 3.01, then,
notwithstanding clause (8) of Section 3.01 and the provisions of Section 3.02,
any such Security shall represent such of the Outstanding Securities of such
series as shall be specified therein and may provide that it shall represent
the aggregate amount of Outstanding Securities of such series from time to time
endorsed thereon and that the aggregate amount of Outstanding Securities of
such series represented thereby may from time to time be increased or decreased
to reflect exchanges.  Any endorsement
of a Security in global form to reflect the amount, or any increase or decrease
in the amount, of Outstanding Securities represented thereby shall be made by
the Trustee in such manner and upon instructions given by such Person or
Persons as shall be specified therein or in the Company Order to be delivered
to the Trustee pursuant to Section 3.03 or 3.04.  Subject to the provisions of Section 3.03 and, if applicable,
Section 3.04, 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.  If a Company Order pursuant to Section 3.03 or 3.04 has been, or
simultaneously is, delivered, any instructions by the Company with respect to
endorsement, delivery or redelivery of a Security in global form shall be in
writing but need not comply with Section 1.03 and need not be accompanied by an
Opinion of Counsel.

 

The provisions of the last sentence of Section 3.03
shall apply to any Security represented by a 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 1.03 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 sentence of Section 3.03.

 

Notwithstanding the provisions of Section 3.07, unless
otherwise specified as contemplated by Section 3.01, payment of principal of,
premium, if any, and interest, if any, on any Security in permanent global form
shall be made to the Person or Persons specified therein.

 

33

 

Notwithstanding the provisions of Section 3.09 and
except as provided in the preceding paragraph, the Company, the Trustee and any
agent of the Company and the Trustee shall treat as the Holder of such
principal amount of Outstanding Securities represented by a permanent global
Security (i) in the case of a permanent global Security in registered form, the
Holder of such permanent global Security in registered form, or (ii) in the
case of a permanent global Security in bearer form, Euroclear or Clearstream.

 

ARTICLE THREE

 

THE SECURITIES

 

SECTION 3.01 
Amount Unlimited; Issuable in Series.

 

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

 

The Securities may be issued in one or more
series.  There shall be established in
one or more Board Resolutions or pursuant to authority granted by one or more
Board Resolutions and, subject to Section 3.03, set forth, or determined in the
manner provided, in an Officers’ Certificate, or established in one or more
indentures supplemental hereto, prior to the issuance of Securities of any
series, any or all of the following, as applicable (each of which, if so
provided, may be determined from time to time by the Company with respect to
unissued Securities of the series when issued from time to time):

 

(1)           the title of the
Securities of the series (including CUSIP and CINS numbers) (which shall
distinguish the Securities of such series from all other series of Securities);

 

(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 Section 3.04, 3.05,
3.06, 10.16, 10,18, 11.08 or 13.05);

 

(3)           the date or dates,
or the method by which such date or dates shall be determined or extended, on
which the principal of the Securities of the series shall be payable;

 

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

 

34

 

basis upon
which such interest shall be calculated if other than that of a 360-day year of
twelve 30-day months;

 

(5)           the place or places,
if any, other than or in addition to the Borough of Manhattan, The City of New
York, where the principal of, premium, if any, and interest, if any, on
Securities of the series shall be payable, where any Registered Securities of
the series may be surrendered for registration of transfer, where Securities of
the series may be surrendered for exchange, where Securities of that series
that are convertible or exchangeable may be surrendered for conversion or
exchange, as applicable, and where notices or demands to or upon the Company in
respect of the Securities of the series and this Indenture may be served;

 

(6)           the period or
periods within which, the price or prices at which, the Currency or Currencies
in which, and other terms and conditions upon which, Securities of the series
may be redeemed, in whole or in part, at the option of the Company, if the Company
is to have the option;

 

(7)           any deletions from,
modifications of or additions to, the redemption provisions set forth in
Section 11.03, and the obligation, if any, of the Company to redeem, repay or
purchase Securities of the series pursuant to any sinking fund or analogous
provision or at the option of a Holder thereof, and the period or periods
within which or the date or dates on which, the price or prices at which, the
Currency or Currencies in which, and other terms and conditions upon which, Securities
of the series shall be redeemed, repaid or purchased, in whole or in part,
pursuant to such obligation;

 

(8)           if not as provided
in Section 3.02, the denomination or denominations in which any Securities of
the series shall be issuable;

 

(9)           if other than the
Trustee, the identity of each Security Registrar and/or Paying Agent;

 

(10)         if other than the
total principal amount thereof, the portion of the principal amount of
Securities of the series that shall be payable upon declaration of acceleration
of the Maturity thereof pursuant to Section 5.02 or the method by which such
portion shall be determined;

 

(11)         if other than the
Dollar, the Currency or Currencies in which payment of the principal of,
premium, if any, or interest, if any, on, the Securities of the series shall be
made or in which the Securities of the series shall be denominated, and the
particular provisions applicable thereto in accordance with, in addition to or
in lieu of any of the provisions of Section 3.12;

 

(12)         whether the amount of
payments of principal of, premium, if any, or interest, if any, on, the
Securities of the series may be determined with reference to an index, formula
or other method (which index, formula or method may be based, without
limitation, on one or more Currencies, commodities, equity indices or other
indices), and the manner in which such amounts shall be determined;

 

35

 

(13)         whether the principal
of, premium, if any, or interest, if any, on, the Securities of the series are
to be payable, at the election of the Company or a Holder thereof, in one or
more Currencies other than that in which such Securities are denominated or
stated to be payable, the period or periods within which (including the
Election Date), and the terms and conditions upon which, such election may be
made, and the time and manner of determining the exchange rate between the
Currency or Currencies in which such Securities are denominated or stated to be
payable and the Currency or Currencies in which such Securities are to be paid,
in each case in accordance with, in addition to or in lieu of any of the
provisions of Section 3.12;

 

(14)         provisions, if any,
granting special rights to the Holders of Securities of the series upon the
occurrence of such events as may be specified;

 

(15)         any deletions from,
modifications of or additions to the Events of Default or covenants (including
any deletions from, modifications of or additions to any of the provisions of
Section 10.21) or other undertakings of the Company with respect to Securities
of the series, whether or not such Events of Default, covenants or undertakings
are consistent with the Events of Default, covenants or undertakings set forth
herein;

 

(16)         whether Securities of
the series are to be issuable as Registered Securities, Bearer Securities (with
or without coupons) or both, any restrictions applicable to the offer, sale or
delivery of Bearer Securities and the terms upon which Bearer Securities of the
series may be exchanged for Registered Securities of the series and vice versa
(if permitted by applicable laws and regulations), whether any Securities of
the series are to be issuable initially in temporary global form and whether
any Securities of the series are to be issuable in permanent global form with
or without coupons and, if so, whether beneficial owners of interests in any
such permanent global Security may exchange such interests for Securities of
such series in certificated form and of like tenor of any authorized form and denomination
and the circumstances under which any such exchanges may occur, if other than
in the manner provided in Section 3.05, and, if Registered Securities of the
series are to be issuable as a global Security, the identity of the depository
for such series;

 

(17)         the date as of which
any Bearer Securities of the series and any temporary global Security
representing Outstanding Securities of the series shall be dated if other than
the date of original issuance of the first Security of the series to be issued;

 

(18)         the Person to whom
any interest on any Registered Security of the series shall be payable, if
other than the Person in whose name such Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest, the manner in which, or the Person to whom, any interest on
any Bearer Security of the series shall be payable, if otherwise than upon
presentation and surrender of the coupons appertaining thereto as they
severally mature, and the extent to which, or the manner in which, any interest
payable on a temporary global Security on an Interest Payment Date will be paid
if other than in the manner provided in Section 3.04;

 

36

 

(19)         the applicability, if
any, of Sections 14.02 and/or 14.03 to the Securities of the series and any
provisions in modification of, in addition to or in lieu of any of the
provisions of Article Fourteen;

 

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

 

(21)         whether, under what
circumstances and the Currency in which, the Company will pay Additional
Amounts as contemplated by Section 10.04 on the Securities of the series to any
Holder who is not a 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 rather than pay such Additional Amounts (and the terms of any such
option);

 

(22)         the designation of
the initial Exchange Rate Agent, if any;

 

(23)         if the Securities of
the series are to be convertible into or exchangeable for any securities of any
Person (including the Company), the terms and conditions upon which such
Securities will be so convertible or exchangeable;

 

(24)         whether the series
are to be subordinated or unsubordinated Indebtedness of the Company, and to
the extent that such series is to be subordinated Indebtedness of the Company,
the terms and conditions of such subordinated Indebtedness;

 

(25)         the dates to be
established for purposes of: the definition of Consolidated Net Income
Available for Restricted Payments in Section 1.01; the definition of Included
Stock in Section 1.01; the definition of Permitted Indebtedness in Section
1.01; the Limitation on Restricted Payments covenant set forth in Section
10.09; the Limitation on Asset Sales covenant set forth in Section 10.17(b);
and the Conduct of Business covenant set forth in Section 10.18; and

 

(26)         any other terms of
the series, which terms shall not be inconsistent with the provisions of this
Indenture or the requirements of the Trust Indenture Act;

 

All Securities of any one series and the coupons
appertaining to any Bearer Securities of such series shall be substantially
identical except, in the case of Registered Securities, as to denomination and
except as may otherwise be provided in or pursuant to such Board Resolution
(subject to Section 3.03) and set forth in such Officers’ Certificate or in any
such indenture supplemental hereto.  All
Securities of any one series need not be issued at the same time and, unless
otherwise provided, a series may be reopened, without the consent of the
Holders, for issuances of additional Securities of such series.

 

If any of the terms of the Securities of any series
are established by action taken pursuant to one or more Board Resolutions, a
copy of an appropriate record of such action(s) shall be set forth in an
Officers’ Certificate pursuant to this Section 3.01.

 

37

 

SECTION
3.02  Denominations.

 

The Securities of each series shall be issuable in
such denominations as shall be specified as contemplated by Section 3.01.  With respect to Securities of any series
denominated in Dollars, in the absence of any such provisions with respect to
the Securities of any series, the Registered Securities of such series,  other than Registered Securities issued in
global form (which may be of any denomination) shall be issuable in
denominations of $1,000 and any integral multiple thereof, and the Bearer
Securities of such series, other than Bearer Securities issued in global form
(which may be of any denomination), shall be issuable in a denomination of
$5,000.

 

SECTION 3.03 
Execution, Authentication, Delivery and
Dating.

 

The Securities and any coupons appertaining thereto
shall be executed on behalf of the Company by any one director or officer and
the secretary of the Company, under its common seal reproduced thereon.  The signature of any of these directors or
officers on the Securities and coupons may be manual or facsimile signatures of
the present or any future such director or authorized officer and may be
imprinted or otherwise reproduced on the Securities.

 

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

 

At any time and from time to time after the execution
and delivery of this Indenture, the Company may deliver Securities of any
series, together with any coupon appertaining thereto, executed by the Company,
to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities, and the Trustee in accordance
with the Company Order shall authenticate and deliver such Securities; provided,
however, that, in connection with its original issuance, no Bearer
Security shall be mailed or otherwise delivered to any location in the United
States; and provided  further that, unless otherwise specified
with respect to any series of Securities pursuant to Section 3.01, a Bearer
Security may be delivered in connection with its original issuance, or a
definitive Bearer Security may be delivered in exchange for a temporary Bearer
Security pursuant to Section 3.04(a), only if the Person entitled to receive
such Bearer Security shall have furnished a certificate in the form set forth
in Exhibit A-1 to this Indenture or such other certificate as may be specified
with respect to any series of Securities pursuant to Section 3.01, dated no
earlier than 15 days prior to the earlier of the date on which such definitive
Bearer Security is delivered and the date on which any temporary Bearer
Security first becomes exchangeable for such definitive Bearer Security in
accordance with the terms of such temporary Security and this Indenture.  If any Security shall be represented by a
permanent global Bearer Security, then, for purposes of this Section and
Section 3.04, the notation of a beneficial owner’s interest therein upon
original issuance of such Security or upon exchange of a portion of a temporary
global Security shall be deemed to be delivery in connection with its original
issuance of such beneficial owner’s interest in such permanent global Security.  Except as permitted by Section 3.06, the
Trustee shall not authenticate and deliver any Bearer Security unless all
appurtenant coupons for interest then 

 

38

 

matured have been
detached and canceled.  If all the
Securities of any series are not to be issued at one time and if the Board
Resolution or supplemental indenture establishing such series shall so permit,
such Company Order may set forth procedures acceptable to the Trustee for the
issuance of such Securities and determining the terms of particular Securities
of such series, such as interest rate, maturity date, date of issuance and date
from which interest shall accrue.  In
authenticating such Securities, and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to TIA Sections 315(a) through 315(d)) shall
be fully protected in relying upon,

 

(i)            an Opinion of
Counsel stating,

 

(a)           that all conditions
precedent which the Company must perform have been complied with for the
authentication and delivery of such Securities by the Trustee;

 

(b)           that the form or
forms of such Securities and any coupons have been established in conformity
with the provisions of this Indenture;

 

(c)           that the terms of
such Securities and any coupons have been established in conformity with the
provisions of this Indenture; and

 

(ii)           that such
Securities, together with any coupons appertaining thereto, when authenticated
and delivered by the Trustee and issued by the Company in accordance with the
terms of this Indenture and subject to any conditions specified in such Opinion
of Counsel, will constitute valid and binding obligations of the Company,
enforceable against the Company in accordance with their terms, subject to
applicable bankruptcy, insolvency, reorganization and other laws of general
applicability relating to or affecting the enforcement of creditors’ rights, to
general equitable principles and to such other qualifications as such counsel
shall conclude do not materially affect the rights of Holders of such
Securities and any coupons; and

 

(iii)          an Officers’
Certificate stating, to the best of the knowledge of the signers of such
certificate, that no Event of Default with respect to any of the Securities shall
have occurred and be continuing.

 

Notwithstanding the provisions of Section 3.01 and of
this Section 3.03, if all the Securities of any series are not to be issued at
one time, it shall not be necessary to deliver an Officers’ Certificate
otherwise required pursuant to Section 3.01 or the Company Order, Opinion of
Counsel or Officers’ Certificate otherwise required pursuant to the preceding
paragraph at the time of issuance of each Security of such series, but such
order, opinion and certificates, with appropriate modifications to cover such
future issuances, shall be delivered at or before the time of issuance of the
first Security of such series.

 

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

 

39

 

Securities
denominated in a Foreign Currency if the Trustee reasonably believes that it
would be unable to perform its duties with respect to such Securities.

 

Each Registered Security shall be dated the date of
its authentication, and each Bearer Security shall be dated as of the date
specified as contemplated by Section 3.01.

 

No Security or coupon shall be entitled to any benefit
under this Indenture or be valid or obligatory for any purpose unless there
appears on such Security or Security to which such coupon appertains a
certificate of authentication substantially in the form provided for herein duly
executed by the Trustee by manual signature of one of its duly authorized
signatories, and such certificate upon any Security shall be conclusive
evidence, and the only evidence, that such Security has been duly authenticated
and delivered hereunder and is entitled to the benefits of this Indenture.  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 3.10 together with a written
statement (which need not comply with Section 1.03 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.

 

In case the Company, pursuant to Article Eight, shall
be amalgamated, consolidated or merged with or into any other Person or shall
convey, transfer, lease or otherwise dispose of substantially all of its
properties and assets to any Person, and the successor Person resulting from
such amalgamation or consolidation, or surviving such merger, or into which the
Company shall have been merged, or the successor Person which shall have
received a conveyance, transfer, lease or other disposition as aforesaid, shall
have executed an indenture supplemental hereto with the Trustee pursuant to
Article Eight, any of the Securities of any series authenticated or delivered
prior to such amalgamation, consolidation, merger, conveyance, transfer, lease
or other disposition may, from time to time, at the request of the successor
Person, be exchanged for other Securities of any series executed in the name of
the successor Person with such changes in phraseology and form as may be
appropriate, but otherwise in substance of like tenor as the Securities of any
series surrendered for such exchange and of like principal amount; and the
Trustee, upon Company Order of the successor Person, shall authenticate and
deliver Securities of any series as specified in such request for the purpose
of such exchange.  If the Securities of
any series shall at any time be authenticated and delivered in any new name of
a successor Person pursuant to this Section in exchange or substitution for or
upon registration of transfer of any Securities of any series, such successor
Person, at the option of any Holder but without expense to such Holder, shall
provide for the exchange of all Securities of any series at the time
Outstanding held by such Holder for Securities of any series authenticated and
delivered in such new name.

 

SECTION 3.04 
Temporary Securities.

 

(a)           Pending the preparation of definitive
Securities of any series, the Company may execute, and upon Company Order the
Trustee shall authenticate and deliver, temporary Securities which are printed,
lithographed, typewritten, mimeographed 

 

40

 

or otherwise produced, in
any authorized denomination, substantially of the same tenor as the definitive
Securities in lieu of which they are issued, in registered form, or, if
authorized, in bearer form with one or more coupons or without coupons, and
with such appropriate insertions, omissions, substitutions and other variations
as the directors or officers executing such Securities may determine, as
conclusively evidenced by their execution of such Securities.  In the case of Securities of any series,
such temporary Securities may be in global form.

 

Except in the case of
temporary Bearer Securities in global form (which shall be exchanged in
accordance with Section 3.04(b) or as otherwise provided in or pursuant to a
Board Resolution), if temporary Securities of any series are issued, the
Company will cause definitive Securities of that series to be prepared without
unreasonable delay.  After the
preparation of definitive Securities of such series, the temporary Securities
of such series shall be exchangeable for definitive Securities of such series
upon surrender of the temporary Securities of such series at the office or
agency of the Company in a Place of Payment for that series, without charge to
the Holder.  Upon surrender for cancellation
of any one or more temporary Securities of any series (accompanied by any
non-matured coupons appertaining thereto), the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a like principal
amount of definitive Securities of the same series of authorized denominations;
provided, however, that no definitive Bearer Security shall be
delivered in exchange for a temporary Registered Security; and provided  further
that a definitive Bearer Security shall be delivered in exchange for a
temporary Bearer Security only in compliance with the conditions set forth in
Section 3.03.  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.

 

(b)           Unless otherwise
provided in or pursuant to a Board Resolution, this Section 3.04(b) shall
govern the exchange of temporary Bearer Securities issued in global form.  If Bearer temporary Securities of any series
are issued in global form, any such temporary global Security shall, unless
otherwise provided therein, be delivered to the London office of a depository
or common depository (the “Common Depository”), for the benefit of Euroclear
and Clearstream, for credit to the respective accounts of the beneficial owners
of such Securities (or to such other accounts as they may direct).

 

Without unnecessary delay
but in any event not later than the date specified in, or determined pursuant
to the terms of, any such temporary global Bearer Security of a series (the
“Exchange Date”), the Company shall deliver to the Trustee definitive
Securities of such series, in aggregate principal amount equal to the principal
amount of such temporary global Bearer Security, executed by the Company.  On or after the Exchange Date, such
temporary global Bearer Security shall be surrendered by the Common Depositary
to the Trustee, as the Company’s agent for such purpose, to be exchanged, in
whole or from time to time in part, for definitive Securities of such series
without charge, and the Trustee shall authenticate and deliver, in exchange for
each portion of such temporary global Bearer Security, an equal aggregate
principal amount of definitive Securities of the same series of authorized
denominations and of like tenor as the portion of such temporary global Bearer
Security to be exchanged.  The
definitive 

 

41

 

Securities to be
delivered in exchange for any such temporary global Bearer Security shall be in
bearer form, registered form, permanent global bearer form or permanent global
registered form, or any combination thereof, as specified as contemplated by
Section 3.01, and, if any combination thereof is so specified, as requested by
the beneficial owner thereof; provided, however, that, unless
otherwise specified in such temporary global Security, upon such presentation
by the Common Depositary, such temporary global Security is accompanied by a
certificate dated the Exchange Date or a subsequent date and signed by
Euroclear as to the portion of such temporary global Security held for its
account then to be exchanged, and a certificate dated the Exchange Date or a
subsequent date and signed by Clearstream as to the portion of such temporary
global Security held for its account then to be exchanged, each in the form set
forth in Exhibit A-2 to this Indenture or in such other form as may be
established pursuant to Section 3.01; and provided  further that
definitive Bearer Securities shall be delivered in exchange for a portion of a
temporary global Security only in compliance with the requirements of Section
3.03.

 

Unless otherwise
specified in such temporary global Bearer Security, the interest of a
beneficial owner of Securities of a series in a temporary global Bearer
Security shall be exchanged for definitive Securities of the same series and of
like tenor following the Exchange Date when the account holder instructs
Euroclear or Clearstream, as the case may be, to request such exchange on his
behalf and delivers to Euroclear or Clearstream, as the case may be, a
certificate in the form set forth in Exhibit A-1 to this Indenture (or in such
other form as may be established pursuant to Section 3.01), dated no earlier
than 15 days prior to the Exchange Date, copies of which certificate shall be
available from the offices of Euroclear and Clearstream, the Trustee, any
Authenticating Agent appointed for such series of Securities, and each Paying
Agent.  Unless otherwise specified in
such temporary global Bearer Security, any such exchange shall be made free of
charge to the beneficial owners of such temporary global Bearer Security,
except that a Person receiving definitive Securities must bear the cost of
insurance, postage, transportation and the like unless such Person takes
delivery of such definitive Securities in person at the offices of Euroclear or
Clearstream.  Definitive Securities in
bearer form to be delivered in exchange for any portion of a temporary global
Bearer Security shall be delivered only outside the United States.

 

Until exchanged in full
as hereinabove provided, the temporary Securities of any series shall in all
respects be entitled to the same benefits under this Indenture as definitive
Securities of the same series and of like tenor authenticated and delivered
hereunder, except that, unless otherwise specified as contemplated by Section
3.01, interest payable on a temporary global Bearer Security on an Interest
Payment Date for Securities of such series occurring prior to the applicable
Exchange Date shall be payable to Euroclear and Clearstream on such Interest
Payment Date upon delivery by Euroclear and Clearstream to the Trustee of a
certificate or certificates in the form set forth in Exhibit A-2 to this
Indenture (or in such other forms as may be established pursuant to Section
3.01), for credit without further interest on or after such Interest Payment
Date to the respective accounts of Persons who are the beneficial owners of
such temporary global Security on such Interest Payment Date and who have each
delivered to Euroclear or Clearstream, as the case may be, a certificate dated
no earlier than 15 days prior to the 

 

42

 

Interest Payment Date
occurring prior to such Exchange Date in the form set forth as Exhibit A-1 to
this Indenture (or in such other forms as may be established pursuant to
Section 3.01).  Notwithstanding anything
to the contrary herein contained, the certifications made pursuant to this
paragraph shall satisfy the certification requirements of the preceding two
paragraphs of this Section 3.04(b) and of the third paragraph of Section 3.03
and the interests of the Persons who are the beneficial owners of the temporary
global Bearer Security with respect to which such certification was made will
be exchanged for definitive Securities of the same series and of like tenor on
the Exchange Date or the date of certification if such date occurs after the
Exchange Date, without further act or deed by such beneficial owners.  Except as otherwise provided in this
paragraph, no payments of principal, premium, if any, or interest, if any,
owing with respect to a beneficial interest in a temporary global Bearer
Security will be made unless and until such interest in such temporary global
Bearer Security shall have been exchanged for an interest in a definitive
Security.  Any interest so received by
Euroclear and Clearstream and not paid as herein provided shall be returned to
the Trustee prior to the expiration of two years after such Interest Payment
Date in order to be repaid to the Company in accordance with Section 10.03.

 

SECTION 3.05 
Securities Register; Registration of
Transfer and Exchange.

 

The Company shall cause to be kept at the Corporate
Trust Office of the Trustee or in any office or agency of the Company in a
Place of Payment a register for each series of Securities (the registers
maintained in such office or in any such office or agency of the Company in a
Place of Payment being herein sometimes referred to collectively as the
“Security Register”) in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of Registered
Securities and of transfers of Registered Securities.  The Security Register shall be in written form or any other form
capable of being converted into written form within a reasonable time.  The Trustee, at its Corporate Trust Office,
is hereby initially appointed “Security Registrar” for the purpose of registering
Registered Securities and transfers of Registered Securities on such Security
Register as herein provided.  In the
event that the Trustee shall cease to be Security Registrar, it shall have the
right to examine the Security Register at all reasonable times.

 

Upon surrender for registration of transfer of any
Registered Security of any series at any office or agency of the Company in a
Place of Payment for that series, the Company shall execute, and the Trustee
shall authenticate and deliver, in the name of the designated transferee or transferees,
one or more new Registered Securities of the same series, of any authorized
denominations and of a like aggregate principal amount, bearing a number not
contemporaneously outstanding and containing identical terms and provisions.

 

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

 

43

 

any series of Securities as contemplated by Section
3.01, Bearer Securities may not be issued in exchange for Registered
Securities.

 

If (but only if) permitted by the applicable Board
Resolution and (subject to Section 3.03) set forth in the applicable Officers’
Certificate, or in any indenture supplemental hereto, delivered as contemplated
by Section 3.01, at the option of the Holder, Bearer Securities of any series
may be exchanged for Registered Securities of the same series of any authorized
denominations and of a like aggregate principal amount and tenor, upon
surrender of the Bearer Securities to be exchanged at any such office or
agency, with all unmatured coupons and all matured coupons in default thereto
appertaining.  If the Holder of a Bearer
Security is unable to produce any such unmatured coupon or coupons or matured
coupon or coupons in default, any such permitted exchange may be effected if
the Bearer Securities are accompanied by payment in funds acceptable to the
Company in an amount equal to the face amount of such missing coupon or
coupons, or the surrender of such missing coupon or coupons may be waived by
the Company and the Trustee if there is furnished to them such security or
indemnity as they may require to save each of them and any Paying Agent
harmless.  If thereafter the Holder of
such Security shall surrender to any Paying Agent any such missing coupon in
respect of which such a payment shall have been made, such Holder shall be
entitled to receive the amount of such payment; provided, however,
that, except as otherwise provided in Section 10.02, interest represented by
coupons shall be payable only upon presentation and surrender of those coupons
at an office or agency located outside the United States.  Notwithstanding the foregoing, in case a
Bearer Security of any series is surrendered at any such office or agency in a
permitted exchange for a Registered Security of the same series and like tenor
after the close of business at such office or agency on (i) any Regular Record
Date and before the opening of business at such office or agency on the
relevant Interest Payment Date, or (ii) any Special Record Date and before the
opening of business at such office or agency on the related proposed date for
payment of Defaulted Interest, such Bearer Security shall be surrendered
without the coupon relating to such Interest Payment Date or proposed date for
payment, as the case may be, and interest or Defaulted Interest, as the case
may be, will not be payable on such Interest Payment Date or proposed date for
payment, as the case may be, in respect of the Registered Security issued in
exchange for such Bearer Security, but will be payable only to the Holder of
such coupon when due in accordance with the provisions of this Indenture.

 

Whenever any Securities are so surrendered for
exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Securities which the Holder making the exchange is entitled to
receive.

 

Notwithstanding the foregoing, except as otherwise
specified as contemplated by Section 3.01, any permanent global Security shall
be exchangeable only as provided in this paragraph.  If the beneficial owners of interests in a permanent global
Security are entitled to exchange such interests for Securities of such series
and of like tenor and principal amount of another authorized form and
denomination, as specified as contemplated by Section 3.01, and provided
that any applicable notice provided in the permanent global Security shall have
been given, then without unnecessary delay but in any event not later than the
earliest date on which such interests may be so exchanged, the Company shall
deliver to the Trustee definitive Securities of that series in aggregate
principal amount equal to the principal amount of such permanent global
Security, executed by the Company.  On
or after the earliest date on which 

 

44

 

such interests may
be so exchanged, such permanent global Security shall be surrendered by the
Common Depositary or such other depositary as shall be specified in the Company
Order with respect thereto to the Trustee, as the Company’s agent for such
purpose, to be exchanged, in whole or from time to time in part, for definitive
Securities of the same series without charge, and the Trustee shall
authenticate and deliver, in exchange for each portion of such permanent global
Security, an equal aggregate principal amount of definitive Securities of the
same series of authorized denominations and of like tenor as the portion of
such permanent global Security to be exchanged which, unless the Securities of
the series are not issuable both as Bearer Securities and as Registered
Securities, as specified as contemplated by Section 3.01, shall be in the form
of Bearer Securities or Registered Securities, or any combination thereof, as
shall be specified by the beneficial owner thereof; provided, however,
that no such exchanges may occur during a period beginning at the opening of
business 15 days before any selection of Securities to be redeemed and ending
on the relevant Redemption Date if the Security for which exchange is requested
may be among those selected for redemption; and provided  further
that no Bearer Security delivered in exchange for a portion of a permanent
global Security (or, if specified as contemplated by Section 3.01) shall be
mailed or otherwise delivered to any location in the United States.  Promptly following any partial exchange and
any endorsement thereon to reflect the amount represented by such exchange,
such permanent global Security shall be returned by the Trustee to the Common
Depository or such other depository referred to above.  If a Registered Security is issued in
exchange for any portion of a permanent global Security after the close of
business at the office or agency where such exchange occurs on (i) any Regular
Record Date and before the opening of business at such office or agency on the
relevant Interest Payment Date, or (ii) any Special Record Date and before the
opening of business at such office or agency on the related proposed date for
payment of Defaulted Interest, interest or Defaulted Interest, as the case may
be, will not be payable on such Interest Payment Date or proposed date for
payment, as the case may be, in respect of such Registered Security, but will
be payable on such Interest Payment Date or proposed date for payment, as the
case may be, only to the Person to whom interest in respect of such portion of
such permanent global Security is payable in accordance with the provisions of
this Indenture.

 

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

 

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

 

No service charge shall be made for any registration
of transfer, exchange or redemption of Securities, but the Company may require
payment of a sum sufficient to pay all documentary, stamp of similar issue or
transfer taxes or other governmental charges that may be imposed in connection
with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Section 3.03, 3.04, 9.06, 10.16, 10.17, 10.19, 11.08 or
13.05 not involving any transfer.

 

45

 

The Company shall not be required (i) to issue,
register the transfer of or exchange Securities of any series during a period
beginning at the opening of business 15 days before selection of Securities of
that series to be redeemed under Section 11.04 and ending at the close of
business on (A) if such Securities are issuable only as Registered Securities,
the day of the mailing of the relevant notice of redemption and (B) if such
Securities are issuable as Bearer Securities, the day of the first publication
of the relevant notice of redemption or, if such Securities are also issuable
as Registered Securities and there is no publication, the mailing of the
relevant notice of redemption, or (ii) to register the transfer of or exchange
any Registered Security so selected for redemption in whole or in part, except,
in the case of any Registered Security to be redeemed in part, the portion thereof
not to be redeemed, or (iii) to exchange any Bearer Security so selected for
redemption except that such a Bearer Security may be exchanged for a Registered
Security of that series and like tenor, provided that such Registered
Security shall be simultaneously surrendered for redemption, or (iv) to issue,
register the transfer of or exchange any Security which has been surrendered
for repayment at the option of the Holder, except the portion, if any, of such
Security not to be so repaid.

 

SECTION 3.06 
Mutilated, Destroyed, Lost and Stolen
Securities.

 

If any mutilated Security or a Security with a
mutilated coupon appertaining to it is surrendered to the Trustee or the
Company, together with, in proper cases, such security or indemnity as may be
required by the Company or the Trustee to save each of them or any agent of
either of them harmless, the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor a new Security of the same series
and principal amount, containing identical terms and provisions and bearing a
number not contemporaneously outstanding, with coupons corresponding to the
coupons, if any, appertaining to the surrendered Security.

 

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

 

Notwithstanding the provisions of the previous two
paragraphs, in case any such mutilated, destroyed, lost or stolen Security or
coupon has become or is about to become due and payable, the Company in its
discretion may, instead of issuing a new Security, with coupons corresponding
to the coupons, if any, appertaining to such mutilated, destroyed, lost or
stolen Security or to the Security to which such mutilated, destroyed, lost or
stolen coupon appertains, pay such Security or coupon; provided, however,
that payment of principal of, premium, if any, and interest, if any, on, Bearer
Securities shall, except as otherwise provided in Section 10.02, be payable
only at an office or agency located outside the United States and, unless
otherwise 

 

46

 

specified as
contemplated by Section 3.01, any interest on Bearer Securities shall be
payable only upon presentation and surrender of the coupons appertaining
thereto.

 

Upon the issuance of any new Security under this
Section, the Company may require the payment of a sum sufficient to pay all
documentary, stamp or similar issue or transfer taxes or other governmental
charges that may be imposed in relation thereto and any other expenses
(including the fees and expenses of the Trustee) connected therewith.

 

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

 

Notwithstanding Section 5.10, the provisions of this
Section are exclusive and shall preclude (to the extent lawful) all other
rights and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities or coupons.

 

SECTION 3.07 
Payment of Interest; Interest Rights
Preserved; Optional Interest Reset.

 

(a)           Except as otherwise specified with
respect to a series of Securities in accordance with the provisions of Section
3.01, interest, if any, on any Registered Security that is payable, and is
punctually paid or duly provided for, on any Interest Payment Date shall be
paid to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest at the office or agency of the Company maintained for such
purpose pursuant to Section 10.02; provided, however, that each
installment of interest, if any, on any Registered Security may at the
Company’s option be paid by (i) mailing a check for such interest, payable to
or upon the written order of the Person entitled thereto pursuant to Section
3.09, to the address of such Person as it appears on the Security Register or
(ii) transfer to an account maintained by the payee inside the United States.

 

Unless otherwise provided
as contemplated by Section 3.01 with respect to the Securities of any series,
payment of interest, if any, may be made, in the case of a Bearer Security, by
transfer to an account maintained by the payee with a bank located outside the
United States, but only upon presentation and surrender of the several coupons
for such interest installments as are evidenced thereby as they severally
mature.

 

Unless otherwise provided
as contemplated by Section 3.01, every permanent global Bearer Security will
provide that interest, if any, payable on any Interest Payment Date will be
paid to each of Euroclear and Clearstream with respect to that portion of such
permanent global Security held for its account by the Common Depositary, for
the purpose of permitting each of Euroclear and Clearstream to credit the
interest, if any, 

 

47

 

received by it in respect
of such permanent global Security to the accounts of the beneficial owners
thereof.

 

In case a Bearer Security
of any series is surrendered in exchange for a Registered Security of such
series after the close of business (at an office or agency in a Place of
Payment for such series) on any Regular Record Date and before the opening of
business (at such office or agency) on the next succeeding Interest Payment
Date, such Bearer Security shall be surrendered without the coupon relating to
such Interest Payment Date and interest will not be payable on such Interest
Payment Date in respect of the Registered Security issued in exchange for such
Bearer Security, but will be payable only to the Holder of such coupon when due
in accordance with the provisions of this Indenture.

 

(b)           Except as otherwise specified with
respect to a series of Securities in accordance with the provisions of Section
3.01, any interest on any Registered Security of any series that is payable,
but is not punctually paid or duly provided for, on any Interest Payment Date
(such defaulted interest herein called “Defaulted Interest”), shall forthwith
cease to be payable to the Holder thereof on the relevant Regular Record Date
by virtue of having been such Holder; and such Defaulted Interest may be paid
by the Company, at its election in each case, as provided in clause (1) or (2)
below:

 

(1)           The Company may
elect to make payment of any Defaulted Interest to the Persons in whose names
the Registered Securities of such series (or their respective Predecessor
Securities) are registered at the close of business on a Special Record Date
for the payment of such Defaulted Interest, which shall be fixed in the
following manner.  The Company shall
notify the Trustee in writing of the amount of Defaulted Interest proposed to
be paid on each Registered Security of such series and the date of the proposed
payment (which shall not be less than 20 days after such notice is received by
the Trustee), and at the same time the Company shall deposit with the Trustee
an amount of money in the Currency in which the Securities of such series are
payable (except as otherwise specified pursuant to Section 3.01 for the
Securities of such series and except, if applicable, as provided in Sections
3.12(b), 3.12(d) and 3.12(e)) equal to the aggregate amount proposed to be paid
in respect of such Defaulted Interest or shall make arrangements satisfactory
to the Trustee for such deposit on or prior to the date of the proposed payment,
such money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this clause provided.  Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall be not more
than 15 days and not less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the
notice of the proposed payment.  The
Trustee shall promptly notify the Company of such Special Record Date. In the
name and at the expense of the Company, the Trustee shall cause notice of the
proposed payment of such Defaulted Interest and the Special Record Date
therefor to be mailed, first-class postage prepaid, to each Holder of
Registered Securities of such series at his address as it appears in the
Security Register, not less than 10 days prior to such Special Record
Date.  Notice of the proposed payment of
such 

 

48

 

Defaulted
Interest and the Special Record Date therefor having been so mailed, such
Defaulted Interest shall be paid to the Persons in whose names the Registered
Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on such Special Record Date and shall no
longer be payable pursuant to the following clause (2).  In case a Bearer Security of any series is
surrendered at the office or agency in a Place of Payment for such series in
exchange for a Registered Security of such series after the close of business
at such office or agency on any Special Record Date and before the opening of
business at such office or agency on the related proposed date for payment of
Defaulted Interest, such Bearer Security shall be surrendered without the
coupon relating to such proposed date of payment and Defaulted Interest will
not be payable on such proposed date of payment in respect of the Registered
Security issued in exchange for such Bearer Security, but will be payable only
to the Holder of such coupon when due in accordance with the provisions of this
Indenture.

 

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

 

The provisions of this Section 3.07(b) may be made applicable to any
series of Securities pursuant to Section 3.01 (with such modifications,
additions or substitutions as may be specified pursuant to such Section
3.01).  The interest rate (or the spread
or spread multiplier used to calculate such interest rate, if applicable) on
any Security of such series may be reset by the Company on the date or dates
specified on the face of such Security (each an “Optional Reset Date”).  The Company may exercise such option with
respect to such Security by notifying the Trustee of such exercise at least 45
but not more than 60 days prior to an Optional Reset Date for such
Security.  Not later than 40 days prior
to each Optional Reset Date, the Trustee shall transmit, in the manner provided
for in Section 1.07, to the Holder of any such Security a notice (the “Reset
Notice”) indicating whether the Company has elected to reset the interest rate
(or the spread or spread multiplier used to calculate such interest rate, if
applicable), and if so (i) such new interest rate (or such new spread or spread
multiplier, if applicable) and (ii) the provisions, if any, for redemption
during the period from such Optional Reset Date to the next Optional Reset Date
or if there is no such next Optional Reset Date, to the Stated Maturity Date of
such Security (each such period a “Subsequent Interest Period”), including the
date or dates on which or the period or periods during which and the price or
prices at which such redemption may occur during the Subsequent Interest
Period.

 

Notwithstanding the foregoing, not later than 20 days
prior to the Optional Reset Date, the Company may, at its option, revoke the
interest rate (or the spread or spread multiplier used to calculate such interest
rate, if applicable) provided for in the Reset Notice and establish an interest
rate (or a spread or spread multiplier used to calculate such interest rate, if
applicable) that is higher than the interest rate (or the spread or spread
multiplier, if applicable) provided for in the Reset Notice, for the Subsequent
Interest Period by causing the Trustee to transmit, in the 

 

49

 

manner provided
for in Section 1.07, notice of such higher interest rate (or such higher spread
or spread multiplier, if applicable) to the Holder of such Security.  Such notice shall be irrevocable.  All Securities with respect to which the
interest rate (or the spread or spread multiplier used to calculate such
interest rate, if applicable) is reset on an Optional Reset Date, and with
respect to which the Holders of such Securities have not tendered such
Securities for repayment (or have validly revoked any such tender) pursuant to
the next succeeding paragraph, will bear such higher interest rate (or such
higher spread or spread multiplier, if applicable).

 

The Holder of any such Security will have the option
to elect repayment by the Company of the principal of such Security on each
Optional Reset Date at a price equal to the principal amount thereof plus
interest accrued to such Optional Reset Date. 
In order to obtain repayment on an Optional Reset Date, the Holder must
follow the procedures set forth in Article Thirteen for repayment at the option
of Holders except that the period for delivery or notification to the Trustee
shall be at least 25 but not more than 35 days prior to such Optional Reset
Date and except that, if the Holder has tendered any Security for repayment
pursuant to the Reset Notice, the Holder may, by written notice to the Trustee,
revoke such tender or repayment until the close of business on the tenth day
before such Optional Reset Date.

 

Subject to the foregoing provisions of this Section
and Section 3.05, 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 3.08  Optional Extension of Maturity.

 

The provisions of this Section 3.08 may be made
applicable to any series of Securities pursuant to Section 3.01 (with such
modifications, additions or substitutions as may be specified pursuant to such
Section 3.01).  The Stated Maturity of
any Security of such series may be extended at the option of the Company for
the period or periods specified on the face of such Security (each an
“Extension Period”) up to but not beyond the date (the “Final Maturity”) set
forth on the face of such Security.  The
Company may exercise such option with respect to any Security by notifying the
Trustee of such exercise at least 45 but not more than 60 days prior to the
Stated Maturity of such Security in effect prior to the exercise of such option
(the “Original Stated Maturity”).  If
the Company exercises such option, the Trustee shall transmit, in the manner
provided for in Section 1.07, to the Holder of such Security not later than 40
days prior to the Original Stated Maturity a notice (the “Extension Notice”)
indicating (i) the election of the Company to extend the Stated Maturity, (ii)
the new Stated Maturity, (iii) the interest rate, if any, applicable to the
Extension Period and (iv) the provisions, if any, for redemption during such
Extension Period.  Upon the Trustee’s
transmittal of the Extension Notice, the Stated Maturity of such Security shall
be extended automatically and, except as modified by the Extension Notice and
as described in the next paragraph, such Security will have the same terms as
prior to the transmittal of such Extension Notice.

 

Notwithstanding the foregoing, not later than 20 days
before the Original Stated Maturity of such Security, the Company may, at its
option, revoke the interest rate provided for in the Extension Notice and
establish a higher interest rate for the Extension Period by causing the
Trustee to transmit, in the manner provided for in Section 1.07, notice of such
higher interest 

 

50

 

rate to the Holder
of such Security.  Such notice shall be
irrevocable.  All Securities with
respect to which the Stated Maturity is extended will bear such higher interest
rate.

 

If the Company extends the Stated Maturity of any
Security, the Holder will have the option to elect repayment of such Security
by the Company on the Original Stated Maturity at a price equal to the
principal amount thereof, plus interest accrued to such date.  In order to obtain repayment on the Original
Stated Maturity once the Company has extended the Stated Maturity thereof, the
Holder must follow the procedures set forth in Article Thirteen for repayment
at the option of Holders, except that the period for delivery or notification
to the Trustee shall be at least 25 but not more than 35 days prior to the
Original Stated Maturity and except that, if the Holder has tendered any
Security for repayment pursuant to an Extension Notice, the Holder may by
written notice to the Trustee revoke such tender for repayment until the close
of business on the tenth day before the Original Stated Maturity.

 

SECTION 3.09  Persons Deemed Owners.

 

Prior to the time of due presentment of a Registered
Security for registration of transfer, the Company, the Trustee and any agent
of the Company or the Trustee may treat the Person in whose name such
Registered Security is registered as the owner of such Security for the purpose
of receiving payment of principal of, premium, if any, and (subject to Sections
3.05 and 3.07) interest, if any, on, such Registered Security and for all other
purposes whatsoever, whether or not such Registered 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.

 

Title to any Bearer Security and any coupons
appertaining thereto shall pass by delivery. 
The Company, the Trustee and any agent of the Company or the Trustee may
treat the bearer of any Bearer Security and the bearer of any coupon as the
absolute owner of such Security or coupon for the purpose of receiving payment
thereof or on account thereof and for all other purposes whatsoever, whether or
not such Security or coupon 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.

 

None of the Company, the Trustee, any Paying Agent or
the Security Registrar will have any responsibility or liability for any aspect
of the records relating to or payments made on account of beneficial ownership
interests of a Security in global form or for maintaining, supervising or reviewing
any records relating to such beneficial ownership interests.

 

Notwithstanding the foregoing, with respect to any
global Security, 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 any depositary, 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 rights of such
depositary (or its nominee) as Holder of such global Security.

 

51

 

SECTION 3.10  Cancellation.

 

All Securities and coupons surrendered for payment,
redemption, repayment at the option of the Holder, registration of transfer or
exchange or for credit against any sinking fund payment shall, if surrendered
to any Person other than the Trustee, be delivered to the Trustee, and any such
Securities and coupons, and Securities and coupons surrendered directly to the
Trustee for any such purpose, shall be promptly canceled by it.  The Company may at any time deliver to the
Trustee for cancellation any Securities previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and may
deliver to the Trustee (or to any other Person for delivery to the Trustee) for
cancellation any Securities previously authenticated hereunder which the
Company has not issued and sold, and all Securities so delivered shall be
promptly canceled by the Trustee.  If
the Company shall so acquire any of the Securities, however, such acquisition
shall not operate as a redemption or satisfaction of the indebtedness
represented by such Securities unless and until the same are surrendered to the
Trustee for cancellation.  No Securities
shall be authenticated in lieu of or in exchange for any Securities canceled as
provided in this Section, except as expressly permitted by this Indenture.  Canceled Securities and coupons held by the
Trustee shall be disposed of by the Trustee in its customary manner.

 

SECTION 3.11  Computation of Interest.

 

Except as otherwise specified as contemplated by
Section 3.01 with respect to Securities of any series, interest, if any,  on the Securities of each series shall be
computed on the basis of a 360-day year consisting of twelve 30-day months.

 

SECTION 3.12  Currency and Manner of Payments in Respect
of Securities.

 

(a)           Unless otherwise
specified with respect to any series of Securities pursuant to Section 3.01,
with respect to Registered Securities of any series not permitting the election
provided for in paragraph (b) below or the Holders of which have not made the
election provided for in paragraph (b) below, and with respect to Bearer
Securities of any series, except as provided in paragraphs (d) and (e) below,
payment of the principal of, premium, if any, and interest, if any, on, any
Registered or Bearer Security of such series will be made in the Currency in
which such Registered Security or Bearer Security, as the case may be, is
payable.  The provisions of this Section
3.12 may be modified or superseded with respect to any Securities pursuant to
Section 3.01.

 

(b)           It may be provided
pursuant to Section 3.01 with respect to Registered Securities of any series
that Holders shall have the option, subject to paragraphs (d) and (e) below, to
receive payments of principal of, premium, if any, or interest, if any, on such
Registered Securities in any of the Currencies which may be designated for such
election by delivering to the Trustee for such series of Registered Securities
a written election with signature guarantees and in the applicable form
established pursuant to Section 3.01, not later than the close of business on
the Election Date immediately preceding the applicable payment date.  If a Holder so elects to receive such
payments in any such Currency, such election will remain in effect for such
Holder or any transferee 

 

52

 

of such Holder
until changed by such Holder or such transferee by written notice to the
Trustee for such series of Registered Securities (but any such change must be
made not later than the close of business on the Election Date immediately
preceding the next payment date to be effective for the payment to be made on
such payment date and no such change of election may be made with respect to
payments to be made on any Registered Security of such series with respect to
which an Event of Default has occurred or with respect to which the Company has
deposited funds pursuant to Article Four or Fourteen or with respect to which a
notice of redemption has been given by the Company or a notice of option to
elect repayment has been sent by such Holder or such transferee).  Any Holder of any such Registered Security
who shall not have delivered any such election to the Trustee of such series of
Registered Securities not later than the close of business on the applicable
Election Date will be paid the amount due on the applicable payment date in the
relevant Currency as provided in Section 3.12(a).  The Trustee for each such series of Registered Securities shall
notify the Exchange Rate Agent as soon as practicable after the Election Date
of the aggregate principal amount of Registered Securities for which Holders
have made such written election.

 

(c)           If the election
referred to in paragraph (b) above has been provided for pursuant to Section
3.01, then, unless otherwise specified pursuant to Section 3.01, not later than
the fourth Business Day after the Election Date for each payment date for
Registered Securities of any series, the Exchange Rate Agent will deliver to
the Company a written notice specifying the Currency in which Registered
Securities of such series are payable, the aggregate amount of principal of,
premium, if any, and interest, if any, on, the Registered Securities to be paid
on such payment date in such Currency, and the amounts in such Currency so
payable in respect of the Registered Securities as to which the Holders of
Registered Securities shall have elected to be paid in another Currency as
provided in paragraph (b) above.  If the
election referred to in paragraph (b) above has been provided for pursuant to
Section 3.01 and if at least one Holder has made such election, then, unless
otherwise specified pursuant to Section 3.01, on the second Business Day
preceding such payment date the Company will deliver to the Trustee for such
series of Registered Securities an Exchange Rate Officer’s Certificate in
respect of the Dollar or Foreign Currency or Currencies payments to be made on
such payment date.  Unless otherwise
specified pursuant to Section 3.01, the Dollar or Foreign Currency or Currencies
amount receivable by Holders of Registered Securities who have elected payment
in a 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”) immediately preceding each payment
date, and such determination shall be conclusive and binding for all purposes,
absent manifest error.

 

(d)           If a Conversion
Event occurs with respect to a Foreign Currency in which any of the Securities
are denominated or payable other than pursuant to an election provided for
pursuant to paragraph (b) above, then with respect to each date for the payment
of principal of, premium, if any, and interest, if any, on, the applicable
Securities denominated or payable in such Foreign Currency occurring after the
last date on which such Foreign Currency was used (the “Conversion Date”), the
Dollar shall be the currency of payment for use on each such payment date.  Unless otherwise specified pursuant to Section
3.01, the Dollar amount to be paid by the Company to the Trustee of 

 

53

 

each such
series of Securities and by such 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 other than a currency unit, the Dollar Equivalent of the Foreign
Currency or, in the case of a currency unit, the Dollar Equivalent of the
Currency Unit, in each case as determined by the Exchange Rate Agent in the
manner provided in paragraph (f) or (g) below.

 

(e)           Unless otherwise
specified pursuant to Section 3.01, if the Holder of a Registered Security
denominated in any Currency shall have elected to be paid in another Currency
as provided in paragraph (b) above, 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 as provided in paragraph (d) of this Section 3.12.

 

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

 

(g)           The “Dollar
Equivalent of the Currency Unit” shall be determined by the Exchange Rate Agent
and subject to the provisions of paragraph (h) below shall be the sum of each
amount obtained by converting the Specified Amount of each Component Currency
into Dollars at the Market Exchange Rate for such Component Currency on the
Valuation Date with respect to each payment.

 

(h)           For purposes of this
Section 3.12, the following terms shall have the following meanings:

 

A “Component Currency” shall mean any currency which, on the
Conversion Date, was a component currency of the relevant currency unit.

 

A “Specified Amount” of a Component Currency shall mean the
number of units of such Component Currency or fractions thereof which were
represented in the relevant currency unit on the Conversion Date.  If after the Conversion Date the official
unit of any Component Currency is altered by way of combination or subdivision,
the Specified Amount of such Component Currency shall be divided or multiplied
in the same proportion.  If after the
Conversion Date two or more Component Currencies are consolidated into a single
currency, the respective Specified Amounts of such Component Currencies shall
be replaced by an amount in such single currency equal to the sum of the
respective Specified Amounts of such consolidated Component Currencies
expressed in such single currency, and such amount shall thereafter be a
Specified Amount and such single currency shall thereafter be a Component
Currency.  If after the Conversion Date
any Component Currency shall be divided into two or more currencies, the
Specified Amount of such Component Currency shall be replaced by amounts of 

 

54

 

such two or more currencies, having an aggregate Dollar Equivalent
value at the Market Exchange Rate on the date of such replacement equal to the
Dollar Equivalent of the Specified Amount of such former Component Currency at
the Market Exchange Rate immediately before such division, and such amounts
shall thereafter be Specified Amounts and such currencies shall thereafter be
Component Currencies.  If, after the Conversion
Date of the relevant currency unit, a Conversion Event (other than any event
referred to above in this definition of “Specified Amount”) occurs with respect
to any Component Currency of such currency unit and is continuing on the
applicable Valuation Date, the Specified Amount of such Component Currency
shall, for purposes of calculating the Dollar Equivalent of the Currency Unit,
be converted into Dollars at the Market Exchange Rate in effect on the
Conversion Date of such Component Currency.

 

“Election Date” shall mean the Regular Record Date for the
applicable series of Registered Securities or at least 16 days prior to
Maturity, as the case may be, or such other prior date for any series of
Registered Securities as specified pursuant to clause 13 of Section 3.01 by
which the written election referred to in Section 3.12(b) may be made.

 

All decisions and determinations of the Exchange Rate
Agent regarding the Dollar Equivalent of the Foreign Currency, the Dollar
Equivalent of the Currency Unit, the Market Exchange Rate and changes in the
Specified Amounts 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 Trustee for the appropriate series of
Securities and all Holders of such Securities denominated or payable in the
relevant Currency.  The Exchange Rate
Agent shall promptly give written notice to the Company and the Trustee for the
appropriate series of Securities of any such decision or determination.

 

In the event that the Company determines in good faith
that a Conversion Event has occurred with respect to a Foreign Currency, the
Company will immediately give written notice thereof to the Trustee of the
appropriate series of Securities and to the Exchange Rate Agent (and such
Trustee will promptly thereafter give notice in the manner provided in Section
1.07 to the affected Holders) specifying the Conversion Date.  In the event the Company so determines that
a Conversion Event has occurred with respect to any currency unit in which
Securities are denominated or payable, the Company will immediately give
written notice thereof to the Trustee of the appropriate series of Securities
and to the Exchange Rate Agent (and such Trustee will promptly thereafter give
notice in the manner provided in Section 1.07 to the affected Holders)
specifying the Conversion Date and the Specified Amount of each Component
Currency on the Conversion Date.  In the
event the Company determines in good faith that any subsequent change in any
Component Currency as set forth in the definition of Specified Amount above has
occurred, the Company will similarly give written notice to the Trustee of the
appropriate series of Securities and to the Exchange Rate Agent.

 

The Trustee of the appropriate series of Securities
shall be fully justified and protected in relying and acting upon information
received by it from the Company and the Exchange Rate Agent and shall not
otherwise have any duty or obligation to determine the

 

55

 

accuracy or
validity of such information independent of the Company or the Exchange Rate
Agent.

 

SECTION 3.13  Appointment and Resignation of Successor
Exchange Rate Agent.

 

Unless otherwise specified pursuant to Section 3.01,
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.  The
Company will cause the Exchange Rate Agent to make the necessary foreign
exchange determinations at the time and in the manner specified pursuant to
Section 3.01 for the purpose of determining the applicable rate of exchange
and, if applicable, for the purpose of converting the issued Foreign Currency
into the applicable payment Currency for the payment of principal, premium, if
any, and interest, if any, pursuant to Section 3.12.

 

(a)           No resignation of
the Exchange Rate Agent and no appointment of a successor Exchange Rate Agent
pursuant to this Section shall become effective until the acceptance of
appointment by the successor Exchange Rate Agent as evidenced by a written
instrument delivered to the Company and the Trustee of the appropriate series
of Securities accepting such appointment executed by the successor Exchange
Rate Agent.

 

(b)           If the Exchange Rate
Agent shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of the Exchange Rate Agent for any cause, with
respect to the Securities of one or more series, the Company, by a Board
Resolution, shall promptly appoint a successor Exchange Rate Agent or Exchange
Rate Agents with respect to the Securities of that or those series (it being
understood that any such successor Exchange Rate Agent may be appointed with
respect to the Securities of one or more or all of such series and that, unless
otherwise specified pursuant to Section 3.01, at any time there shall only be
one Exchange Rate Agent with respect to the Securities of any particular series
that are originally issued by the Company on the same date and that are
initially denominated and/or payable in the same Currency).

 

SECTION 3.14  CUSIP Numbers.

 

The Company in issuing the Securities may use “CUSIP”
and “CINS” numbers (if then generally in use), and, if so, the Trustee shall
indicate the “CUSIP” and “CINS” 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 “CINS” numbers.

 

56

 

ARTICLE FOUR

 

SATISFACTION AND DISCHARGE

 

SECTION 4.01  Satisfaction and Discharge of Indenture.

 

This Indenture shall, upon Company Request, cease to
be of further effect with respect to any series of Securities specified in such
Company Request (except as to any surviving rights of registration of transfer
or exchange of Securities of such series expressly provided for herein or
pursuant hereto and any right to receive Additional Amounts, as provided in
Section 10.04), and the Trustee, upon receipt of a Company Order, and at the
expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture as to such series when

 

(1)           either

 

(A)          all Securities of such series
theretofore authenticated and delivered and all coupons, if any, appertaining
thereto (other than (i) coupons appertaining to Bearer Securities surrendered
for exchange for Registered Securities and maturing after such exchange, whose
surrender is not required or has been waived as provided in Section 3.05, (ii)
Securities and coupons of such series which have been destroyed, lost or stolen
and which have been replaced or paid as provided in Section 3.06, (iii) coupons
appertaining to Securities called for redemption and maturing after the
relevant Redemption Date, whose surrender has been waived as provided in
Section 11.07, and (iv) Securities and coupons of such series for whose payment
money has theretofore been deposited in trust or segregated and held in trust
by the Company and thereafter repaid to the Company or discharged from such
trust, as provided in Section 10.03) have been delivered to the Trustee for
cancellation; or

 

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

 

(i)            have become due and
payable, or

 

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

 

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

 

and the Company, in the case of (i), (ii) or (iii) above, has
irrevocably deposited or caused to be deposited with the Trustee, under the
terms of an irrevocable trust agreement in form and substance satisfactory to
the Trustee, as trust funds in trust

 

57

 

for such purpose an amount, in the Currency in which the Securities of
such series are payable, sufficient to pay and discharge the entire
indebtedness on such Securities and such coupons not theretofore delivered to
the Trustee for cancellation, for principal, premium, if any, and interest, if
any, to the date of such deposit (in the case of Securities which have become
due and payable) or to the Stated Maturity or Redemption Date, as the case may
be;

 

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

 

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

 

Notwithstanding the satisfaction and discharge of this
Indenture with respect to any series of Securities, the obligations of the
Company to the Trustee and any predecessor Trustee under Section 6.06, the
obligations of the Company to any Authenticating Agent under Section 6.12 and,
if money shall have been deposited with the Trustee pursuant to subclause (B)
of clause (1) of this Section 4.01, the obligations of the Trustee under Section
4.02 and the last paragraph of Section 10.03 shall survive such satisfaction
and discharge.

 

SECTION 4.02  Application of Trust Funds.

 

Subject to the provisions of the penultimate paragraph
of Section 10.03, all money deposited with the Trustee pursuant to Section 4.01
shall be held in trust and applied by it, in accordance with the provisions of
the Securities, the coupons appertaining thereto and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company acting
as its own Paying Agent) as the Trustee may determine, to the Persons entitled
thereto, of the principal, premium, if any, and interest, if any, for whose
payment such money has been deposited with or received by the Trustee, but such
money need not be segregated from other funds except to the extent required by
law.

 

ARTICLE FIVE

 

REMEDIES

 

SECTION 5.01  Events of Default.

 

Unless otherwise specified with respect to a series of
Securities as contemplated by Section 3.01, an “Event of Default”, wherever
used herein with respect to any series of Securities, means any one of the
following events:

 

58

 

(a)           the Company defaults
in the payment of any interest upon any Security of that series or any coupon
pertaining thereto, when such interest or coupon becomes due and payable and
such Default continues for a period of 30 days; or

 

(b)           the Company defaults
in the payment of the principal of, or premium, if any, on, any Security of
that series when the same becomes due and payable at its Maturity; or

 

(c)           the Company defaults
in the performance of, or breaches, any covenant, warranty or agreement of the
Company with respect to any Security of that series (other than a Default in
the performance, or breach, of a covenant, warranty or agreement that is
specifically dealt with elsewhere in this Section), and such Default or breach
continues for a period of 30 days after there has been given, by registered or
certified mail, to the Company by the Trustee or to the Company and the Trustee
by the Holders of at least 25% in principal amount of the Outstanding
Securities of that series, a written notice specifying such Default or breach
and stating that such notice is a “Notice of Default” hereunder; or

 

(d)           an event of default
shall have occurred with respect to any issue or issues of Indebtedness of the
Company or any Subsidiary having an outstanding principal amount of $5,000,000
or more individually or in the aggregate, for all issues of all such Persons,
whether such Indebtedness now exists or shall hereafter be created, which has
caused such Indebtedness of at least $5,000,000 or aggregating at least
$5,000,000 becoming or being declared due and payable prior to the date on
which it would otherwise become due and payable and such Indebtedness has not
been discharged in full or such acceleration has not been rescinded or annulled
within 30 days of such acceleration; or

 

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

 

(f)            judgments or orders
are rendered against the Company or any Subsidiary that require the payment in
money, either individually or in an aggregate amount, that is more than
$5,000,000 and such judgments or orders shall remain unsatisfied, unstayed or
unbonded (provided that the judgment or order shall only be considered
bonded if as a result of such bond no action can be taken to enforce the
judgment or order) for 60 days; or

 

(g)           a decree or order is
entered by a court having jurisdiction in the premises (i) for relief in
respect of the Company or any Material Subsidiary in an involuntary case or
proceeding under the Federal Bankruptcy Code or any other federal or state law
relating to bankruptcy, insolvency, reorganization or relief of debtors, or
similar law or (ii) adjudging the Company or any Material Subsidiary a bankrupt
or insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Company or any
Material Subsidiary under the Federal Bankruptcy Code or any other applicable
federal or state law relating to bankruptcy, insolvency, reorganization or
relief of debtors or other similar law, or (iii)

 

59

 

appointing a
custodian, receiver, liquidator, assignee, trustee, sequestrator (or other
similar official) of the Company or any Material Subsidiary or of any
substantial part of any of their properties, or (iv) ordering the winding up or
liquidation of any of their affairs, and any such decree or order remains
unstayed and in effect for a period of 60 consecutive days; or

 

(h)           the Company or any
Material Subsidiary institutes a voluntary case or proceeding under the Federal
Bankruptcy Code or any other applicable federal or state law relating to
bankruptcy, insolvency, reorganization or relief of debtors or similar law or
any other case or proceeding to be adjudicated a bankrupt or insolvent, or any
of them consents to the entry of a decree or order for relief in respect of the
Company or any Material Subsidiary in any involuntary case or proceeding under
the Federal Bankruptcy Code or any other applicable federal or state law
relating to bankruptcy, insolvency, reorganization or relief of debtors or similar
law or to the institution of bankruptcy or insolvency proceedings against the
Company or any Material Subsidiary, or any of them files a petition or answer
or consent seeking reorganization or relief under the Federal Bankruptcy Code
or any other applicable federal or state law relating to bankruptcy,
insolvency, reorganization or relief of debtors, or similar law, or any of them
consents to the filing of any such petition or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee, trustee,
sequestrator (or other similar official) of any of the Company or any Material
Subsidiary or of any substantial part of its property, or any of them makes an
assignment for the benefit of creditors, or any of them admits in writing its
inability to pay its debts generally as they become due or any of them takes
corporate action in furtherance of any such action; or

 

(i)            the Company or any
Material Subsidiary which is not a U.S. corporation makes an application for an
administrative order or convenes any meeting of its members or creditors or
takes any other steps (under any applicable law relating to bankruptcy,
insolvency, liquidation, winding-up, reorganization or similar proceedings)
with a view to the liquidation, winding-up, dissolution, receivership,
administration, reorganization or amalgamation of the Company or such Material
Subsidiary or with a view to proposing any kind of composition, scheme of
arrangement or other compromise or arrangement with its creditors generally other
than solvent amalgamations and similar reorganizations otherwise permitted
under Article Eight hereof; or

 

(j)            with respect to the
Company or any Material Subsidiary that is not a U.S. corporation, (i) an
application for an administrative order in relation to the Company or such
Material Subsidiary is presented to a court having jurisdiction in the
premises; (ii) an administrative or other receiver or any manager is appointed
by a court having jurisdiction in the premises with respect to the Company or such
Material Subsidiary or all or any substantial part of their respective
property; or (iii) a petition is presented to a court having jurisdiction in
the premises by any person requesting the liquidation, dissolution or
winding-up of the Company or such Material Subsidiary; and, in the case of each
of clauses (i) through (iii) above, such application, appointment or petition
is not revoked, discharged or dismissed or the related proceedings not stayed,
as the case may be, within 60 days; or

 

60

 

(k)           there occurs, in
relation to the Company or any Material Subsidiary that is not a U.S.
corporation, in any courts having jurisdiction in the premises of any country
or territory in which it carries on business or to the jurisdiction of whose
courts it or a substantial portion of its property is subject, any event or
proceeding which corresponds in that country or territory with any of those
mentioned in sub-clauses (g) to (j) inclusive (subject to the same exceptions
provided in said sub-clauses and the passage of analogous time periods); or

 

(l)            there is a Default
in the performance or breach of any of the provisions of Article Eight or
Section 10.16.

 

SECTION 5.02  Acceleration of Maturity; Rescission.

 

(a)           If an Event of Default (other than an
Event of Default specified in Section 5.01(g) through 5.01(i)) occurs and is
continuing with respect to Securities of any series, the Trustee or the Holders
of at least 25% of the principal amount of the Securities of that series then
Outstanding, by written notice to the Company (and to the Trustee if such
notice is given by the Holders), may, and the Trustee at the request of such
Holders shall, declare all unpaid principal of, and premium, if any, and
accrued Interest if any, on the Securities of that series (or, in the case of
Securities sold at original issue discount, the amount specified in the terms
thereof) to be due and payable immediately, and upon any such declaration, such
principal, premium and accrued interest shall become immediately due and
payable.  Thereupon the Trustee may, at
its discretion, proceed to protect and enforce the rights of Holders of the
Securities of that series by appropriate judicial proceeding.

 

(b)           If an Event of
Default specified in any of Sections 5.01(g) through 5.01(i) occurs and is
continuing, the amounts specified above, shall ipso facto become and be
immediately due and payable without any declaration or other act on the part of
the Trustee or any Holder.

 

(c)           After a declaration
of acceleration of any series of Securities, but before a judgment or decree
for payment of the money due has been obtained by the Trustee, by written
notice to the Company and the Trustee, the Holders of a majority in aggregate
principal amount of the Outstanding Securities of such series, may annul such
declaration of acceleration, provided, in each case, that (a) the
Company has paid or deposited with the Trustee a sum sufficient to pay (i) all
sums paid or advanced by the Trustee under this Indenture and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, (ii) all overdue Interest on all Securities of that series, (iii)
the principal of and premium, if any, on that series of Securities which have
become due otherwise than by such declaration of acceleration and interest
thereon at the rate borne by that series, and (iv) to the extent that payment
of such interest is lawful, interest upon overdue Interest at the rate borne by
that series of Securities; and (b) all Events of Default, other than the
non-payment of principal of that series of Securities that have become due
solely by the declaration of acceleration, have been cured or waived.

 

61

 

SECTION 5.03 Collection of Indebtedness and Suits
for Enforcement by Trustee.

 

The Company covenants that if

 

(a)           a Default occurs in
the payment of any Interest on Securities of any series and any related coupon
when such Interest becomes due and payable and such Default continues for a
period of 30 days, or

 

(b)           a Default occurs in
the payment of the principal of, or premium, if any, on Securities of any
series at the Maturity thereof,

 

the Company will, upon demand of the Trustee, pay to
it, for the benefit of the Holders of Securities of such series and coupons,
the whole amount then due and payable on such series of Securities and coupons
for principal, premium, if any and Interest, if any, with interest upon the
overdue principal, premium, if any, and, to the extent that payment of such
interest shall be legally enforceable, upon overdue installments of Interest,
at the rate borne by 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 the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.

 

If the Company fails to pay such amounts forthwith
upon such demand, the Trustee, in its own name and as trustee of an express
trust, may institute a judicial proceeding for the collection of the sums so
due and unpaid and may prosecute such proceeding to judgment or final decree,
and may enforce the same against the Company or any other obligor upon the
Securities of such series and collect the moneys adjudged or decreed to be
payable in the manner provided by law out of the property of the Company or any
other obligor upon the Securities of such series, wherever situated.

 

If an Event of Default occurs and is continuing with
respect to Securities of any series, the Trustee may in its discretion proceed
to protect and enforce its rights and the rights of the Holders of Securities
of such series and any related coupons under this Indenture by such appropriate
private or judicial proceedings as the Trustee shall deem most effectual to
protect and enforce such rights.

 

SECTION 5.04  Trustee May File Proofs of Claim.

 

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

 

62

 

(a)           to file and prove a
claim for the whole amount of principal, premium, if any and Interest, if any,
owing and unpaid in respect of the Securities of such series (or in the case of
Original Issue Discount Securities or Indexed Securities, such portion of the
principal as may be provided in the terms thereof)  and to file such other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and of the Holders allowed in such judicial
proceeding, and

 

(b)           to collect and receive
any moneys, securities or other property payable or deliverable upon the
exchange of the Securities of such series in connection with any such claims
and to distribute the same; and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or similar official in any such judicial proceeding is
hereby authorized by each Holder of Securities of such series and related
coupons, to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to such Holders,
to pay the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 6.06.

 

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

 

SECTION 5.05  Trustee May Enforce Claims Without
Possession of Securities or Coupons.

 

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

 

SECTION 5.06  Application of Money Collected.

 

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

 

63

 

FIRST:  To the
payment of all amounts due the Trustee and any predecessor Trustee under
Section 6.06;

 

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

 

THIRD:  To the
payment of the remainder, if any, to the Company.

 

SECTION 5.07  Limitation on Suits.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

SECTION 5.08  Unconditional Right of Holders to Receive
Principal, Premium and Interest.

 

Notwithstanding any other provision in this Indenture,
the Holder of any Security or coupon shall have the right which is absolute and
unconditional to receive payment of the

 

64

 

principal of, premium, if
any, and (subject to Section 3.07) interest, if any, on, such Security or
payment of such coupon on the respective due dates expressed in such Security
or coupon (or, in the case of redemption, on the Redemption Date) and to
institute suit for the enforcement of any such payment, and such rights shall
not be impaired without the consent of such Holder.

 

SECTION 5.09  Restoration of Rights and Remedies.

 

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

 

SECTION 5.10  Rights and Remedies Cumulative.

 

Except as provided in Section 3.06, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders of
Securities or coupons is intended to be exclusive of any other right or remedy,
and every right and remedy shall, to the extent permitted by law, be cumulative
and in addition to every other right and remedy given hereunder or now or
hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

 

SECTION 5.11  Delay or Omission Not Waiver.

 

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

 

SECTION 5.12  Control by Holders of Securities.

 

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

 

(1)           such direction shall
not be in conflict with any rule of law or with this Indenture or expose the
Trustee to personal liability, and

 

65

 

(2)           subject to the
provisions of Trust Indenture Act Section 315, the Trustee may take any other
action deemed proper by the Trustee which is not inconsistent with such
direction.

 

SECTION 5.13  Waiver of Past Defaults.

 

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

 

(1)           in the payment of
the principal of, or premium, if any, or interest, if any, on, any Security of
such series or any related coupons, or

 

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

 

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

 

SECTION 5.14  Undertaking for Costs.

 

The Company and the Trustee agree, and each Holder of
Securities of any series or coupon 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
Holder of Securities of any series or coupon for the enforcement of the payment
of the principal of, or premium, if any, or interest, if any, on Securities of any
series on or after the respective Stated Maturities expressed in such Security
(or, in the case of redemption, on or after the Redemption Date), or to any
suit instituted by any Holder of Securities of any series or coupon, or group
of such Holders, holding in the aggregate more than 10% in principal amount of
the Securities.

 

SECTION 5.15  Waiver of Stay, Extension or Usury Laws.

 

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

 

66

 

the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not hinder, delay or impede the execution of
any power herein granted to the Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.

 

ARTICLE SIX

 

THE TRUSTEE

 

SECTION 6.01  Notice of Defaults.

 

Within 90 days after the occurrence of any Default
that is known to the Trustee, the Trustee shall transmit to the Holder of such
series in the manner and to the extent provided in TIA Section 313(c), notice
of such Default hereunder known to the Trustee, unless such Default shall have
been cured or waived; provided, however, that, except in the case
of a Default in the payment of the principal of, premium, if any, or interest,
if any, on, any Security of such series, or in the payment of any sinking or
purchase fund installment with respect to 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
and/or Responsible Officers of the Trustee in good faith determines that the
withholding of such notice is in the interest of the Holders of the Securities
and coupons of such series; and provided  further that, in the
case of any Default or breach of the character specified in Section 5.01(c)
with respect to the Securities and coupons of such series, no such notice to Holders
shall be given until at least 30 days after the occurrence thereof.

 

SECTION 6.02  Certain Rights of Trustee.

 

Subject to the provisions of TIA Sections 315(a)
through 315(d):

 

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

 

(2)           Any request or
direction of the Company mentioned herein shall be sufficiently evidenced by a
Company Request or Company Order (other than delivery of any Security, together
with any coupons appertaining thereto, to the Trustee for authentication and
delivery pursuant to Section 3.03, which shall be sufficiently evidenced as
provided therein) and any resolution of the Board of Directors of the Company
may be sufficiently evidenced by a Board Resolution.

 

(3)           Whenever in the
administration of this Indenture the Trustee shall deem it desirable that a
matter be proved or established prior to taking, suffering or omitting any

 

67

 

action
hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, rely upon an
Officers’ Certificate.

 

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

 

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

 

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

 

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

 

(8)           The Trustee shall
not be liable for any action it takes or omits to take by it in good faith
which it believes to be authorized or within the rights or powers conferred
upon it by this Indenture.

 

(9)           No provision of this
Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

 

(10)         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.

 

(11)         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.

 

68

 

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

 

SECTION 6.03  Not Responsible for Recitals or Issuance of
Securities.

 

The recitals contained herein and in the Securities,
except the Trustee’s certificate of authentication, and in any coupons shall be
taken as the statements of the Company, and neither the Trustee nor any Authenticating
Agent assumes any responsibility for their correctness.  The Trustee makes no representations as to
the validity or sufficiency of this Indenture or of any Securities or coupons.  The Trustee shall not be accountable for the
use or application by the Company of the proceeds from the issuance of the
Securities, 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, if and when the Company seeks to qualify this
Indenture under the Trust Indenture Act, the statements made by it in a
Statement of Eligibility on Form T-1 supplied to the Company with respect to
the Securities will be true and accurate, subject to the qualifications set
forth therein.

 

SECTION 6.04  May Hold Securities.

 

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

 

SECTION 6.05  Money Held in Trust.

 

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

 

SECTION 6.06  Compensation and Reimbursement.

 

The Company agrees:

 

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

 

(2)           Except as otherwise
expressly provided herein, to reimburse the Trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Trustee
in accordance with any provision of this Indenture (including the

 

69

 

reasonable
compensation and the expenses and disbursements of its agents and counsel),
except any such expense, disbursement or advance as shall be determined to have
been caused by its own negligence or bad faith.

 

(3)           To indemnify each of
the Trustee and any predecessor Trustee for, and to hold it harmless against,
any and all loss, damage, claim, liability or expense, including taxes (other
than taxes based on the income of the Trustee) incurred without negligence or
bad faith on its own part, arising out of or in connection with the acceptance
or administration of this trust, including the costs and expenses of defending
itself against any claim (whether asserted by any Holder or the Company or any
other Person) or liability in connection with the exercise or performance of
any of its powers or duties hereunder.

 

As security for the performance of the obligations of
the Company under this Section, the Trustee shall have a claim prior to the
Securities upon all property and funds held or collected by the Trustee as
such, except funds held in trust for the benefit of Holders of particular Securities
or any coupons.

 

If the Trustee incurs expenses or renders services
after the occurrence of an Event of Default specified in Sections 5.01(g)
through (k), the expenses and compensation for such services are intended to
constitute expenses of administration under the Federal Bankruptcy Code or any
similar federal, state or foreign law for the relief of debtors.

 

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

 

SECTION 6.07  Conflicting Interest.

 

The Trustee shall comply with the provisions of
Section 310(b) of the TIA.  The
provisions of this Section shall survive the termination of TIA’s Indenture.

 

SECTION 6.08  Corporate Trustee Required; Eligibility.

 

There shall at all times be a Trustee hereunder and
which shall be eligible to act as Trustee under TIA Section 310(a)(1) and which
shall have a combined capital and surplus of at least $50,000,000 and have its
Corporate Trust Office located in the City of New York (or if its Corporate
Trust Office shall not be located in the City of New York, which shall maintain
an office in the City of New York where the Securities may be presented or
surrendered and notices and demands hereunder may be made or served) to the
extent there is such an institution eligible and willing to serve.  If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of federal,
state, territorial or District of Columbia 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.  If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article.

 

70

 

SECTION 6.09  Resignation and Removal; Appointment of
Successor.

 

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

 

(b)           The Trustee may, at
any time with respect to the Securities of one or more series, resign as
Trustee by giving written notice to the Company.  If an instrument of acceptance by a successor Trustee shall not
have been delivered to the Trustee within 30 days after the giving 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.

 

(c)           The Trustee may, at
any time, be removed with respect to the Securities of any series as Trustee by
an Act of the Holders of a majority in principal amount of the Outstanding
Securities of such series delivered to the Trustee and the Company.  If an instrument of acceptance by a
successor Trustee shall not have been delivered to the Trustee within 30 days
after the giving of such notice of removal, the Trustee being removed may
petition, at the expense of the Company, any court of competent jurisdiction
for the appointment of a successor Trustee.

 

(d)           If at any time:

 

(1)           the Trustee shall
fail to comply with the provisions of TIA Section 310(b) after written request
therefor by the Company or by any Holder of a Security who has been a bona fide
Holder of a Security for at least six months, or

 

(2)           the Trustee shall
cease to be eligible under Section 6.08 and shall fail to resign after written
request therefor by the Company or by any Holder of a Security who has been a
bona fide Holder of a Security for at least six months, or

 

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

 

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

 

(e)           If the Trustee shall
resign, be removed or become incapable of acting, or if a vacancy shall occur
in the office of Trustee for any cause with respect to the Securities of one or
more series, the Company, by a Board Resolution, shall promptly appoint a
successor Trustee or Trustees with respect to the Securities of that or those
series (it being understood that any such successor Trustee may be appointed
with respect to the

 

71

 

Securities of
one or more or all of such series and that at any time there shall be only one
Trustee with respect to the Securities of any particular series).  If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor Trustee
with respect to the Securities of any series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such
series delivered to the Company and the retiring Trustee, the successor Trustee
so appointed shall, forthwith upon its acceptance of such appointment in
accordance with Section 6.10, become the successor Trustee with respect to the
Securities of such series and supersede the successor Trustee appointed by the
Company.  If no successor Trustee with
respect to the Securities of any series shall have been so appointed by the
Company or the Holders of Securities and so accepted appointment, any Holder of
a Security who has been a bona fide Holder of a Security of such series for at
least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to Securities of such series.

 

(f)            The Company shall
give notice of each resignation and each removal of the Trustee with respect to
the Securities of any series and each appointment of a successor Trustee with
respect to the Securities of any series by mailing written notice of such event
by first class mail, postage prepaid, to the Holders of such Securities as
their names and addresses appear in the Security Register.  Each notice shall include the name of the
successor Trustee with respect to the Securities of such series and the address
of its Corporate Trust Office.

 

SECTION 6.10  Acceptance of Appointment by Successor.

 

(a)           Every successor
Trustee appointed hereunder successor Trustee shall execute, acknowledge and
deliver to the Company and to the retiring Trustee an instrument accepting such
appointment, and thereupon the resignation or removal of the retiring Trustee
shall become effective and such successor Trustee, without any further act,
deed or conveyance, shall become vested with all the rights, powers, trusts and
duties of the retiring Trustee; provided, however, that the retiring Trustee
shall continue to be entitled to the benefit of Section 6.06(3). On request of
the Company or the successor Trustee, such retiring Trustee shall, upon payment
of its charges, execute and deliver an instrument transferring to such
successor Trustee all such rights, powers and trusts of the retiring Trustee,
and shall duly assign, transfer and deliver to such successor Trustee all
property and money held by such retiring Trustee hereunder. Upon request of any
such successor Trustee, the Company shall execute any and all instruments more
fully and certainly vesting in and conforming to such successor Trustee all
such rights, powers and trusts.

 

(b)           In case of the
appointment hereunder of a successor Trustee with respect to the Securities of
one or more (but not all) series, the Company, the retiring Trustee and each
successor Trustee with respect to the Securities of one or more series shall
execute and deliver an indenture supplemental hereto wherein each successor
Trustee shall accept such appointment and which (1) shall contain such provisions
as shall be necessary or desirable to transfer and confirm to, and to vest in,
each successor Trustee all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or

 

72

 

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

 

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

 

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

 

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

 

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

 

73

 

SECTION 6.12  Appointment of Authenticating Agent.

 

At any time when any of the Securities remain
Outstanding, the Trustee may appoint an Authenticating Agent or Agents with
respect to one or more series of Securities which shall be authorized to act on
behalf of the Trustee to authenticate Securities of such series issued upon
exchange, registration of transfer or partial redemption thereof, and
Securities so authenticated shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder. Any such appointment shall be evidenced by an instrument in
writing signed by a Responsible Officer of the Trustee, a copy of which instrument
shall be promptly furnished to the Company. 
Wherever reference is made in this Indenture to the authentication and
delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent and a certificate
of authentication executed on behalf of the Trustee by an Authenticating
Agent.  Each Authenticating Agent shall
be acceptable to the Company and, except as may otherwise be provided pursuant
to Section 3.01, shall at all times be a bank or trust company or corporation
organized and doing business and in good standing under the laws of the United
States of America or of any State or the District of Columbia, authorized under
such laws to act as Authenticating Agent, having a combined capital and surplus
of not less than $1,500,000 and subject to supervision or examination by
federal or state authorities.  If such
Authenticating Agent publishes reports of condition at least annually, pursuant
to law or the requirements of the aforesaid supervising or examining authority,
then for the purposes of this Section, the combined capital and surplus of such
Authenticating Agent shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published.  In case at any time an Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section,
such Authenticating Agent shall resign immediately in the manner and with the
effect specified in this Section.

 

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

 

An Authenticating Agent for any series of Securities
may at any time resign by giving written notice of resignation to the Trustee
for such series and to the Company.  The
Trustee for any series of Securities may at any time terminate the agency of an
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 such Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, the Trustee for such series may
appoint a successor Authenticating Agent which shall be acceptable to the
Company and shall give notice of such appointment to all Holders of Securities
of the series with respect to which such Authenticating Agent will serve in the
manner set forth in Section 1.07.  Any
successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent
herein.  No

 

74

 

successor Authenticating Agent shall be appointed
unless eligible under the provisions of this Section.

 

The Company agrees to pay to each Authenticating Agent
from time to time reasonable compensation, including reimbursement of its reasonable
expenses for its services under this Section.

 

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

 

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

 

	
   

  	
  THE BANK OF NEW YORK,
  as Trustee

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  as Authenticating
  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Authorized
  Officer

  

 

SECTION 6.13  Preferential Collection of Claims Against
the Company.

 

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

 

ARTICLE SEVEN

 

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

SECTION 7.01  Disclosure of Names and Addresses of
Holders.

 

Every Holder of Securities or coupons, by receiving
and holding the same, agrees with the Company and the Trustee that neither the
Company nor the Trustee or any of either of them shall be held accountable by
reason of the disclosure of any information as to the names and addresses of
the Holders of Securities in accordance with TIA Section 312, 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 TIA Section 312.

 

75

 

SECTION 7.02  Reports by Trustee.

 

Within 60 days after May 15 of each year commencing
with the first May 15 after the first issuance of Securities pursuant to this Indenture,
the Trustee shall transmit by mail to all Holders of Securities, as their names
and addresses appear in the Security Register as provided in TIA Section
313(c), a brief report dated as of such May 15 if required by TIA Section
313(a).

 

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 and with the
Company.  The Company will promptly
notify the Trustee when the Securities are listed on any stock exchange and of
any delisting thereof.

 

SECTION 7.03  Reports by Company.

 

The Company will:

 

(1)           file with the
Trustee, within 15 days after the Company files the same with the Commission,
copies of the annual reports and of the information, documents, and other
reports (or copies of such portions of any of the foregoing as the Commission
may from time to time by rules and regulations prescribe) which the Company may
be required to file with the Commission pursuant to Section 10.20(c) of this
Indenture and Section 13 or Section 15(d) of the Exchange Act; or, if the
Company is not required to file information, documents or reports pursuant to
either of such Sections, then it will file with the Trustee and the Commission,
in accordance with rules and regulations prescribed from time to time by the
Commission, such of the supplementary and periodic information, documents and
reports which may be required pursuant to Section 13 of the Exchange Act in
respect of a security listed and registered on a national securities exchange
as may be prescribed from time to time in such rules and regulations;

 

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

 

(3)           transmit by mail to
all Holders of Securities, as their names and addresses appear in the Security
Register (a) within 30 days after the filing thereof with the Trustee, in the
manner and to the extent provided in TIA Section 313(c), such summaries of any
information, documents and reports required to be filed by the Company pursuant
to paragraphs (1) and (2) of this Section as may be required by rules and
regulations prescribed from time to time by the Commission, and (b) within 30
days after the mailing thereof to shareholders of the Company, all reports and
other documents sent by the Company to its shareholders.

 

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,

 

76

 

including the
Company’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers’ Certificates).

 

SECTION 7.04  Calculation of Original Issue Discount.

 

The Company shall file with the Trustee of a series of
Securities, promptly at the end of each calendar year, a written notice
specifying the amount of original issue discount (including daily rates and
accrual periods), if any, accrued on Outstanding Securities of such series as
of the end of such year.

 

ARTICLE EIGHT

 

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

 

SECTION 8.01  Company May Consolidate, etc., Only on
Certain Terms.

 

The Company shall not amalgamate or consolidate with,
or merge with or into, any other Person or sell, assign, convey, transfer,
lease or otherwise dispose of all or substantially all of its properties and
assets substantially as an entirety to any Person or group of affiliated
Persons unless at the time and after giving effect thereto:

 

(1)           either (a) the
Company shall be the continuing company or corporation or (b) the Person (if
other than the Company) formed by such amalgamation, consolidation or merger,
or to which such sale, assignment, transfer, lease, conveyance or disposition
shall have been made (the “Surviving Entity”), is a company or corporation duly
organized and validly existing under the laws of the Islands of Bermuda, the
United States of America, any state thereof or the District of Columbia and
shall, in either case, expressly assume by supplemental indenture hereto,
executed and delivered to the Trustee, in form satisfactory to the Trustee, all
the obligations of the Company under each Outstanding series of the Securities
and this Indenture, and this Indenture shall remain in full force and effect;

 

(2)           immediately prior to
such transaction, and immediately after giving effect to such transaction on a pro
forma basis, no Default or Event of Default shall have occurred and be
continuing;

 

(3)           except as provided
for in Section 10.22, the Consolidated Net Worth of the Company (or the
Surviving Entity if the Company is not the continuing obligor under this Indenture),
on a pro  forma basis after giving effect to such transaction, is
not less than the Consolidated Net Worth of the Company immediately prior to
such transaction;

 

(4)           except as provided
for in Section 10.22, immediately after giving effect to such transaction on a pro
forma basis, the Company (or the Surviving Entity if the Company is not
the continuing obligor under this Indenture) would be able to Incur at least
$1.00 of additional Indebtedness pursuant to Section 10.08 (excluding Permitted
Indebtedness);

 

77

 

(5)           the successor Person
formed by such amalgamation, consolidation, merger, conveyance, transfer or
lease (if such person is organized and validly existing under the laws of a
jurisdiction other than the United States, any State thereof, or the District
of Columbia) agrees to indemnify the Holder of each Security against (a) any
tax, assessment or governmental charge imposed on any such Holder or required
to be withheld or deducted from any payment to such Holder as a consequence of
such amalgamation, consolidation, merger, conveyance, transfer or lease and (b)
any costs or expenses of the act of such amalgamation, consolidation, merger,
conveyance, transfer or lease; and

 

(6)           the Company has delivered
to the Trustee, in form and substance reasonably satisfactory to the Trustee,
an Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger or transfer and such supplemental indenture, if one is
required by this Section 8.01, comply with this Section 8.01 and that all
conditions precedent herein provided for relating to such transaction have been
complied with.

 

SECTION 8.02  Successor Substituted.

 

Upon any amalgamation or consolidation or merger or
any sale, assignment, transfer, lease or conveyance or other disposition of all
or substantially all of the assets of the Company in accordance with Section
8.01, any Surviving Entity formed by such amalgamation or consolidation or into
which the Company is merged or to which such sale, assignment, transfer, lease,
conveyance or other disposition 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 Surviving Entity had been named as
the Company herein.

 

ARTICLE NINE

 

SUPPLEMENTAL INDENTURES

 

SECTION 9.01  Supplemental Indentures Without Consent of
Holders.

 

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

 

(1)           to evidence the
succession in accordance with Section 8.01 of another Person to the Company and
the assumption by any such successor of the covenants of the Company herein and
in any series of Securities; or

 

(2)           to add to the
covenants of the Company for the benefit of the Holders of all or any series of
Securities (and if such covenants are to be for the benefit of less than all
series of Securities, stating that such covenants are expressly being included
solely for

 

78

 

the benefit of such series), or to surrender any right or power herein
or in the Securities conferred upon the Company; or

 

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

 

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

 

(5)           to secure the
Securities pursuant to the requirements of Section 10.10 or otherwise; or

 

(6)           to establish the
form or terms of Securities of any series and any related coupons as permitted
by Sections 2.01 and 3.01, including the provisions and procedures relating to
Securities convertible into or exchangeable for any securities of any Person
(including the Company); or

 

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

 

(8)           to cure any
ambiguity, to correct or supplement any provision herein which may be defective
or inconsistent with any other provision herein, or to make any other
provisions with respect to matters or questions arising under this Indenture; provided
that, in each case,  any such provision
shall not adversely affect the interests of the Holders of Securities of any
series then Outstanding or any related coupons in any material respect, as to
which the Trustee is entitled to conclusively rely upon an Opinion of Counsel
provided to it; or

 

(9)           to supplement any of
the provisions of this Indenture to such extent as shall be necessary to permit
or facilitate the defeasance and discharge of any series of Securities pursuant
to Sections 4.01, 14.02 or 14.03; provided that any such action shall
not adversely affect the interests of the Holders of Securities of such series
and any related coupons or any other series of Securities in any material
respect; or

 

(10)         to secure any series
of Securities;

 

79

 

(11)         to comply with the
requirements of the Commission under the Trust Indenture Act;

 

(12)         to evidence the
appointment of a successor Trustee upon the resignation or removal of the
Trustee, as provided in Section 6.10; or

 

(13)         to make any other
change that does not adversely affect the rights of any Holder of Securities
then Outstanding, as to which the Trustee is entitled to conclusively rely upon
an Opinion of Counsel provided to it.

 

SECTION 9.02  Supplemental Indentures With Consent of
Holders.

 

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

 

(1)           change the Stated
Maturity of the principal of, premium, if any, on, or any installment of
principal of or interest on, such series, or reduce the principal amount
thereof or reduce the rate of interest thereon, or any premium payable upon the
redemption thereof, or reduce any obligation of the Company to pay Additional
Amounts pursuant to Section 10.04 (except as contemplated by Section 8.01(1)
and permitted by Section 9.01(1)), or reduce the portion of the principal of an
Original Issue Discount Security or Indexed Security that would be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant to
Section 5.02 or the amount thereof provable in bankruptcy pursuant to Section
5.04, or adversely affect any right of repayment at the option of the Holder of
such series, or change any Place of Payment where, or the Currency in which,
such series or any premium or interest thereon is payable, or impair the right
to institute suit for the enforcement of any such payment on or after the
Stated Maturity thereof (or, in the case of redemption or repayment at the
option of the Holder, on or after the Redemption Date or the Repayment Date, as
the case may be), or adversely affect any right to convert or exchange any
Security of such series as may be provided pursuant to Section 3.01 herein or
modify the obligation of the Company to purchase Securities of such series upon
a Change of Control, or

 

(2)           reduce the percentage
in principal amount of the Outstanding Securities of such series, the consent
of whose Holders is required for any such supplemental indenture, or the
consent of whose Holders is required for any waiver with respect to such series
(of compliance with certain provisions of this Indenture or certain Defaults
hereunder and their consequences) provided for in this Indenture, reduce the
requirements of Section 15.04 for quorum voting, or

 

80

 

(3)           modify any of the
provisions of this Section, Section 5.13 or Section 10.21, except to increase
the percentage or principal amount of the Outstanding Securities of such series
the consent of whose Holders is required for the actions described in such
sections, or to provide that certain other provisions of this Indenture cannot
be modified or waived without the consent of the Holder of each Outstanding
Security of such series affected thereby.

 

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

 

A supplemental indenture that changes or eliminates
any covenant or other provision of this Indenture that has expressly been
included solely for the benefit of one or more particular series of Securities,
or the modifies the rights of 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 9.03  Execution of Supplemental Indentures.

 

In executing, or accepting the additional trusts
created by, any supplemental indenture permitted by this Article or the
modifications thereby of the trusts created by this Indenture, the Trustee
shall be provided with and (subject to Trust Indenture Act Sections 315(a)
through 315(d) and Section 6.02 hereof) shall be fully protected in relying
upon, an Opinion of Counsel and an Officers’ Certificate stating that the
execution of such supplemental indenture is authorized or permitted by this
Indenture.  The Trustee may, but shall
not be obligated to, enter into any such supplemental indenture which affects
the Trustee’s own rights, duties or immunities under this Indenture or
otherwise.

 

SECTION 9.04  Effect of Supplemental Indentures.

 

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

 

SECTION 9.05  Conformity with Trust Indenture Act.

 

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

 

SECTION 9.06  Reference in Securities to Supplemental
Indentures.

 

Securities of any series authenticated and delivered
after the execution of any supplemental indenture pursuant to this Article may,
and shall, if required by the Trustee, bear a notation in form approved by the
Trustee as to any matter provided for in such supplemental

 

81

 

indenture.  If the Company shall so determine, new
Securities of any series so modified as to conform, in the opinion of the
Trustee and the Company, to any such supplemental indenture may be prepared and
executed by the Company and authenticated and delivered by the Trustee in
exchange for Outstanding Securities of such series.

 

ARTICLE TEN

 

COVENANTS

 

Unless otherwise specified with respect to a series of
Securities as contemplated by Section 3.01, the following covenants shall apply
to all series of Registered Securities.

 

SECTION 10.01  Payment of Principal, Premium and Interest.

 

The Company covenants and agrees, for the benefit of
the Holders of each series of Securities, that it will duly and punctually pay
the principal of, premium, if any, and interest, if any, on, the Securities of
that series in accordance with the terms of such series of Securities, any
coupons appertaining thereto and this Indenture.  Unless otherwise specified as contemplated by Section 3.01 with
respect to any series of Securities, any interest due on Bearer Securities on
or before Maturity, other than Additional Amounts, if any, payable as provided
in Section 10.04 in respect of principal of, premium, if any, on, such a
Security, shall be payable only upon presentation and surrender of the several
coupons for such interest installments as are evidenced thereby as they
severally mature.  Unless otherwise
specified with respect to Securities of any series pursuant to Section 3.01, at
the option of the Company, all payments of principal may be paid by check to
the registered Holder of the Registered Security or other person entitled
thereto against surrender of such Security.

 

SECTION 10.02  Maintenance of Office or Agency.

 

If Securities of a series are issuable only as
Registered Securities, the Company shall maintain in each Place of Payment for
such series an office or agency where Securities of that series may be
presented or surrendered for payment, where Securities of that series may be
surrendered for registration of transfer or exchange, where Securities of that
series that are convertible may be surrendered for conversion, and where
notices and demands to or upon the Company in respect of the Securities of that
series and this Indenture may be served.

 

If Securities of a series are issuable as Bearer
Securities, the Company will maintain (A) in the Borough of Manhattan, The City
of New York, an office or agency where any Registered Securities of that series
may be presented or surrendered for payment, where any Registered Securities of
that series may be surrendered for registration of transfer, where Securities
of that series may be surrendered for exchange, where Securities of that series
that are convertible may be surrendered for conversion, where notices and
demands to or upon the Company in respect of the Securities of that series and
this Indenture may be served and where Bearer Securities of that series and
related coupons may be presented or surrendered for payment in the circumstances
described in the following paragraph (and not otherwise), (B) subject to any
laws or regulations applicable thereto, in a Place of Payment for that series
which is located

 

82

 

outside the United
States, an office or agency where Securities of that series and related coupons
may be presented and surrendered for payment; provided, however,
that if the Securities of that series are listed on the Bourse de Luxembourg or
any other stock exchange located outside the United States and such stock
exchange shall so require, the Company will maintain a Paying Agent for the
Securities of that series in Luxembourg or any other required city located
outside the United States, as the case may be, so long as the Securities of
that series are listed on such exchange, and (C) subject to any laws or
regulations applicable thereto, in a Place of Payment for that series located
outside the United States, an office or agency where any Registered Securities
of that series may be surrendered for registration of transfer, where
Securities of that series may be surrendered for exchange, where Securities of
that series that are convertible or exchangeable may be surrendered for
conversion or exchange, as applicable, and where notices and demands to or upon
the Company in respect of the Securities of that series and this Indenture may
be served.

 

The Company will give prompt written notice to the
Trustee, and prompt notice to the Holders of Securities of such series as
provided in Section 1.07, of the location, and any change in the location, of
each such office or agency.  If at any
time the Company shall fail to maintain any such required office or agency in
respect of any series of Securities, or shall fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be
made or served at the Corporate Trust Office of the Trustee, except that Bearer
Securities of that series and the related coupons may be presented and
surrendered for payment at any Place of Payment for such series located outside
the United States, and the Company hereby appoints the Trustee its agent to
receive all such presentations, surrenders, notices and demands.

 

Unless otherwise specified with respect to any
Securities pursuant to Section 3.01, no payment of principal, premium, if any,
or interest, if any, on Bearer Securities shall be made at any office or agency
of the Company in the United States or by check mailed to any address in the
United States or by transfer to an account maintained with a bank located in
the United States; provided, however, that, if the Securities of
a series are payable in Dollars, payment of principal of, premium, if any, and
interest, if any, on, any Bearer Security shall be made at the office of the
Company’s Paying Agent in the Borough of Manhattan, The City of New York, if
(but only if) payment in Dollars of the full amount of such principal, premium
or interest, as the case may be, at all offices or agencies outside the United
States maintained for such purpose by the Company in accordance with this
Indenture, is illegal or effectively precluded by exchange controls or other
similar restrictions.

 

The Company may from time to time designate one or
more other offices or agencies (in or outside any Place of Payment) where the
Securities of one or more series and any related coupons may be presented or
surrendered for any or all of such purposes, and may from time to time rescind
such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to
maintain an office or agency in accordance with the requirements set forth
above for Securities of any series for such purposes.  The Company will give prompt written notice to the Trustee of any
such designation or rescission and of any change in the location of any such
other office or agency.  Unless
otherwise specified pursuant to Section 3.01 with respect to a series of
Securities, the Company hereby designates as Places of Payment for each series
of Securities the office or agency of the Company in the Borough of Manhattan,
The City of New York, and initially appoints the Trustee

 

83

 

at its Corporate
Trust Office as Paying Agent in such city and as its agent to receive all such
presentations, surrenders, notices and demands.

 

Unless otherwise specified with respect to any
Securities pursuant to Section 3.01, if and so long as the Securities of any
series (i) are denominated in a currency other than Dollars or (ii) may be
payable in a currency other than Dollars, or so long as it is required under
any other provision of the Indenture, then the Company will maintain with
respect to each such series of Securities, or as so required, at least one
Exchange Rate Agent.

 

SECTION 10.03  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 any Securities and any related coupons, it
will, on or before each due date of the principal of, premium, if any, or
interest, if any, on, any of the Securities of that series, segregate and hold
in trust for the benefit of the Persons entitled thereto a sum in the Currency
in which the Securities of such series are payable (except as otherwise
specified pursuant to Section 3.01 for the Securities of such series and
except, if applicable, as provided in Sections 3.12(b), 3.12(d) and 3.12(e))
sufficient to pay the principal of, premium, if any, and interest, if any, on, Securities
of such series so becoming due until such sums shall be paid to such Persons or
otherwise disposed of as herein provided, and will promptly notify the Trustee
of its action or failure so to act.

 

Whenever the Company shall have one or more Paying Agents
for any series of Securities and any related coupons, it will, on or before
each due date of the principal of (or premium, if any) or interest, if any, on,
any Securities of that series, deposit with a Paying Agent a sum (in the
Currency described in the preceding paragraph) sufficient to pay the principal,
premium, if any, or interest, if any, so becoming due, such sum to be held in
trust for the benefit of the Persons entitled to such principal, premium or
interest and (unless such Paying Agent is the Trustee) the Company will
promptly notify the Trustee of its action or failure so to act.

 

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

 

(a)           hold all sums held
by it for the payment of the principal of, or premium, if any, Interest if any,
on the Securities of that series in trust for the benefit of the Persons
entitled thereto until such sums shall be paid to such Persons or otherwise
disposed of as herein provided;

 

(b)           give the Trustee
notice of any Default by the Company (or any other obligor upon the Securities
of that series) in the making of any payment of principal, premium, if any,
Interest if any; 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.

 

84

 

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

 

Except as otherwise provided in the Securities of any
series pursuant to Section 3.01, any money deposited with the Trustee or any
Paying Agent, or then held by the Company, in trust for the payment of the
principal of, premium, if any, or interest, if any, on, any Security of any
series or the payment of any related coupon and remaining unclaimed for two
years after such principal, premium or interest has become due and payable
shall, unless otherwise required by mandatory provisions of applicable escheat,
or abandoned or unclaimed property law, be paid to the Company upon Company
Request or (if then held by the Company) shall be discharged from such trust; and
the Holder of such Security or coupon shall thereafter, as an unsecured general
creditor, look only to the Company for payment of such principal, premium or
interest, without interest thereon, 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.

 

SECTION 10.04  Additional Amounts.

 

The Company hereby further agrees, subject to the
limitations and exceptions set forth below, that if any deduction or
withholding for any present or future taxes, assessments or other governmental
charges of the jurisdiction (or any political subdivision or taxing authority
thereof or therein) in which the Company is incorporated or resident for tax
purposes shall at any time be required by such jurisdiction (or any such
political subdivision or taxing authority) in respect of any amounts to be paid
by the Company under any series of Securities, then the Company will pay to the
Holder of a Security of such series as supplemental interest such additional
amounts (“Additional Amounts”) as may be necessary in order that the net
amounts paid to such Holder who, with respect to any such tax, assessment or
other governmental charge, is not resident in such jurisdiction, after such
deduction or withholding, shall be not less than the amounts specified in such
Security to which such Holder is entitled; provided, however,
that the Company shall not be required to make any payment of Additional
Amounts (i) for or on account of any such tax, assessment or governmental
charge imposed by the jurisdiction in which the Company is incorporated or
resident for tax purposes (or any political subdivision or taxing authority
thereof or therein) or (ii) for or on account of:

 

(A)          any tax, assessment or other
governmental charge that would not have been imposed but for (x) 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 or
corporation) and the taxing jurisdiction or any political subdivision or
territory or possession thereof or area subject to its 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 trade or business therein
or having or having had a permanent establishment therein or (y) the
presentation of a Security (where presentation is required) for payment on a
date more

 

85

 

than 30 days after the
date on which such payment became due and payable or the date on which payment
thereof is duly provided for, whichever occurs later;

 

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

 

(C)           any tax, assessment or other
governmental charge that is payable otherwise than by withholding from payments
of (or in respect of) principal of, or any premium or interest on, a Security;

 

(D)          any tax, assessment or other
governmental charge that is imposed or withheld by reason of the failure to
comply by the Holder or the beneficial owner of a Security with a request of
the Company addressed to the Holder (x) to provide information, documents and
other evidence concerning the nationality, residence or identity of the Holder
or such beneficial owner or (y) to make and deliver any declaration or other
similar claim (other than a claim for refund of a tax, assessment or other
governmental charge withheld by the Company) or satisfy any information or
reporting requirement, which, in the case of (x) or (y), is required or imposed
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 items (A), (B),
(C) and (D);

 

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

 

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

 

At least ten days prior to the first Interest Payment
Date for any series of Securities, and at least ten days prior to each date of
payment of principal and any premium or interest, if there has been any change
with respect to the matters set forth in the below-mentioned Officers’
Certificate, the Company will furnish the Trustee and the Company’s principal
Paying Agent or Paying Agents, if other than the Trustee, with an Officers’
Certificate instructing the

 

86

 

Trustee and such
Paying Agent or Paying Agents whether such payment of principal of and any
premium or interest on the series of Securities shall be made to Holders of
such series without withholding for or on account of any tax, assessment or
other governmental charge described in the Securities of that 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 the Securities of
that series and the Company will pay to the Trustee or such Paying Agent or
Paying Agents the Additional Amounts required by this Section.  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.

 

SECTION 10.05  Corporate Existence.

 

Subject to Article Eight, the Company shall do or
cause to be done all things necessary to preserve and keep in full force and
effect its corporate existence and that of each Subsidiary and the corporate
rights (charter and statutory), corporate licenses and corporate franchises of
the Company and its Subsidiaries; provided that the Company shall not be
required to preserve any such existence (except of the Company), right, license
or franchise if the Board of Directors of the Company, or of the Subsidiary
concerned, shall determine that the preservation thereof is no longer desirable
in the conduct of the business of the Company or such Subsidiary and that the
loss thereof is not disadvantageous in any material respect to the Holders of
any Outstanding series.

 

SECTION 10.06  Payment of Taxes and Other Claims.

 

The Company will pay or discharge or cause to be paid
or discharged, before the same shall become delinquent, (a) all taxes,
assessments and governmental charges levied or imposed upon it or any
Subsidiary or upon the income, profits or property of the Company or any of its
Subsidiaries and (b) all lawful claims for labor, materials and supplies,
which, if unpaid, might by law become a Lien upon the property of the Company
or any of its Subsidiaries; provided, however, that the Company
shall not be required to pay or discharge or cause to be paid or discharged any
such tax, assessment, charge or claim whose amount, applicability or validity
is being contested in good faith by appropriate proceedings properly instituted
and diligently conducted and in respect of which appropriate reserves are being
maintained in accordance with GAAP consistently applied.

 

SECTION 10.07  Maintenance of Properties.

 

The Company shall cause all properties owned by, or
leased to, it or any Subsidiary and necessary in the conduct of its business or
the business of such Subsidiary to be maintained and kept in normal condition,
repair and working order, ordinary wear and tear excepted; provided, however,
that nothing in this Section shall prevent the Company or any Subsidiary from
discontinuing the use, operation or maintenance of any of such properties, or
disposing of any of them, if such discontinuance or disposal is, in the
judgment of the Board of Directors or the board of directors of the Subsidiary
concerned, or of any officer of the Company

 

87

 

or such Subsidiary
having managerial responsibility for any such property, desirable in the
conduct of the business of the Company or any Subsidiary and if such discontinuance
or disposal is not adverse in any material respect to the Holders of the
Securities.

 

The Company shall provide or cause to be provided, for
itself and any Subsidiaries, insurance (including appropriate self-insurance)
against loss or damage of the kinds customarily insured against by corporations
similarly situated and owning like properties in the same general areas in
which the Company or such Subsidiaries operate.

 

SECTION 10.08  Limitation on Indebtedness.

 

Except as provided for in Section 10.22, the Company
will not, and will not permit any of its Subsidiaries to, Incur any
Indebtedness (excluding Permitted Indebtedness) unless, at the time of such
Incurrence and after giving effect thereto on a pro  forma basis,
the Company’s Cash Flow Coverage Ratio for the Reference Period would have
equaled or exceeded 1.75 to 1.0.

 

SECTION 10.09  Limitation on Restricted Payments.

 

(a)           Except as provided
for in Section 10.22, the Company will not, and will not permit any of its
Subsidiaries to, directly or indirectly.

 

(i)            declare or pay of
any dividend on, or make any distribution to holders of, any shares of its or
such Subsidiary’s Capital Stock (other than dividends or distributions payable
in shares of its or such Subsidiary’s Capital Stock or in options, warrants or
other rights to purchase such Capital Stock, but excluding dividends or
distributions payable in Redeemable Capital Stock or in options, warrants or
other rights to purchase Redeemable Capital Stock) (any such declaration,
payment or distribution, a "Restricted Dividend Payment"),

 

(ii)           purchase, redeem,
or acquire or retire for value, any Capital Stock of the Company or any
Subsidiary or any options, warrants or other rights to acquire such Capital
Stock (except pursuant to mandatory sinking fund requirements or at the Stated
Maturity thereof, which payments may be made at any time during the year prior
to the required sinking fund payment date or Stated Maturity) (any such
purchase, redemption, acquisition or retirement, a "Restricted Capital
Stock Redemption Payment"),

 

(iii)          make any voluntary
or optional principal payment, or voluntary or optional redemption, repurchase,
defeasance, or other acquisition or retirement for value, of Indebtedness of
the Company that is subordinated in right of payment to the series of
Securities (except pursuant to mandatory sinking fund requirements or at the
Stated Maturity thereof, which payments may be made at any time during the year
prior to the required sinking fund payment date or Stated Maturity), or

 

(iv)          make any Investment
(other than any Permitted Investment) in any Person other than a Subsidiary and
other than a Person which becomes a Subsidiary as a result of such Investment

 

88

 

(such payments or other
actions described in the foregoing clauses (i) through (iv) are collectively
referred to as “Restricted Payments”), unless at the time of and after giving
effect to the proposed Restricted Payment (the amount of any such Restricted
Payment, if other than cash, shall be as determined by the Board of Directors,
whose determination shall be conclusive and evidenced by a Board Resolution),
(1) no Default or Event of Default shall have occurred and be continuing or
shall occur as a result of such Restricted Payment, (2) the Company could Incur
at least $1.00 of additional Indebtedness under Section 10.08 (excluding
Permitted Indebtedness) and (3) the aggregate amount of all Restricted Payments
declared or made after July 1, 1996 (the date specified in the corresponding
clause in each of the Company’s Other Senior Note Indentures) shall not exceed
the sum of:

 

(A)          50% of the aggregate cumulative
Consolidated Net Income Available for Restricted Payments accrued on a
cumulative basis during the period (taken as one accounting period) beginning
on April 1, 1993 (the date specified in the corresponding clause in each of the
Company’s Other Senior Note Indentures) and ending on the last day of the
Company’s last fiscal quarter ending prior to the date of such proposed
Restricted Payment (or, if such aggregate cumulative Consolidated Net Income
Available for Restricted Payments shall be a loss, minus 100% of such loss), plus

 

(B)           the aggregate net proceeds, including
the Fair Market Value of property other than cash (as determined by the Board
of Directors), received by the Company after February 1, 1998, (the date
specified in the corresponding clause in each of the Company’s Other Senior
Note Indentures) from the issuance or sale (other than to any of its Subsidiaries)
of shares of Capital Stock of the Company (other than Redeemable Capital Stock)
or warrants, options or rights to purchase such shares of Capital Stock of the
Company (other than Redeemable Capital Stock), plus

 

(C)           the aggregate net proceeds, including
the Fair Market Value of property other than cash (as determined by the Board
of Directors), received by the Company after February 1, 1998 (the date
specified in the corresponding clause in each of the Company’s Other Senior
Note Indentures) (other than from any of its Subsidiaries) upon the exercise of
options, warrants or rights to purchase shares of Capital Stock of the Company
(other than Redeemable Capital Stock), plus

 

(D)          the aggregate net proceeds, including
the Fair Market Value of property other than cash (as determined by the Board
of Directors), received by the Company after February 1, 1998 (the date
specified in the corresponding clause in each of the Company’s Other Senior
Note Indentures), from the issue or sale of debt securities or Redeemable
Capital Stock that, in either case, have been converted into or exchanged for
Capital Stock of the Company (other than Redeemable Capital Stock), plus the
aggregate cash received by the Company at the time of such conversion or
exchange, plus

 

89

 

(E)           an amount equal to the net reduction,
after February 1, 1998 (the date specified in the corresponding clause in
each of the Company’s Other Senior Note Indentures), in Investments in any
third Person not a Subsidiary resulting from payments of interest on
Indebtedness, dividends, repayments of loans or advances, or other transfers of
assets, in each case to the Company or any Subsidiary from any such third
Person, but only to the extent such payments (i) were not otherwise included in
the Consolidated Net Income of the Company, (ii) were not deducted from the
Investment of the Company in any third Person not a Subsidiary pursuant to
clause (iv) of the definition of Permitted Investments and (iii) do not exceed
in the case of any such third Person the amount of Investments previously made
by the Company or any Subsidiary in such third Person, plus

 

(F)           $15,000,000.

 

Notwithstanding anything to the contrary in this
Indenture, the aggregate amount of all Restricted Dividend Payments and
Restricted Capital Stock Redemption Payments made out of funds available
therefor under the immediately foregoing paragraphs (A), (B), (C), (D), (E) and
(F) shall not exceed the sum of (i) $60 million and (ii) the sum
of (I) any funds accrued under the immediately foregoing paragraph (A)
during the period beginning on the date of this Indenture and ending on the
last day of Sea Containers' last fiscal quarter ending prior to the date of
such Restricted Payment, (II) any funds received after the date of this
Indenture under the immediately foregoing paragraphs (B), (C) and (D) and
(III) an amount equal to any net reduction after the date of this
Indenture under the immediately foregoing paragraph (E).

 

(b)           The foregoing clause
(a) will not be violated with respect to a series of Securities by reason of,
and will not take into account:

 

(i)            the payment of any
dividend within 60 days after the date of declaration thereof, if at such
declaration date such declaration complied with the foregoing provision (in
which event such dividend shall be deemed to have been paid on such date of
declaration thereof for purposes of the foregoing provision),

 

(ii)           a Restricted
Payment by a Subsidiary to the Company or to another Subsidiary or by the Company
to a Subsidiary, provided that any Restricted Payment by a Subsidiary
relating to Capital Stock held by the Company or a Subsidiary shall also be
permitted to be made to Persons other than the Company or a Subsidiary so long
as such Restricted Payment is made to the Company or such Subsidiary and such
other Person pro  rata based on the ownership interests in such
Capital Stock of the Company or such Subsidiary, on the one hand, and such
other Person, on the other hand,

 

(iii)          the issuance of
Capital Stock (other than Redeemable Capital Stock) upon the exercise by
employees of options issued pursuant to employee benefit plans, or

 

(iv)          so long as no
Default or Event of Default is in existence,

 

(A)          the acquisition or retirement for
value of any shares of Capital Stock or any Indebtedness subordinated in right
of payment to such series of Securities prior to a Stated Maturity of such
Indebtedness by exchange for, or upon conversion of, or out of the proceeds of
the substantially concurrent sale for cash (other than to a Subsidiary) of,
other shares of Capital Stock (other than Redeemable Capital Stock) of the
Company or Indebtedness of the type, and satisfying the requirements, described
in clause (ix) of the definition of Permitted Indebtedness,

 

90

 

(B)           the payment of a dividend on
Preferred Shares (including Redeemable Capital Stock) outstanding on the date
of this Indenture, and Preferred Shares issued to refinance such Preferred
Shares as permitted by preceding clause (A) at rates not in excess of those set
forth in the terms of such Preferred Shares on such date,

 

(C)           the payment of dividends on
Redeemable Capital Stock issued after the date of this Indenture, or

 

(v)                               the redemption,
acquisition or retirement for value of the 12 1/2% Senior Subordinated
Debentures with the net proceeds from the sale of the Securities.

 

Notwithstanding anything to the contrary herein, the aggregate net
proceeds, including the Fair Market Value of property other than cash, received
by the Company from the issuance or sale of shares of Capital Stock (other than
Redeemable Capital Stock) of the Company pursuant to clauses (iii) and (iv)(A)
above shall not be counted for purposes of increasing the available amount of
Restricted Payments pursuant to clause (a)(3)(B) above.

 

SECTION 10.10  Restrictions on Liens.

 

If the series of Securities is Senior Indebtedness,
the Company will not, and will not permit any of its Subsidiaries, directly or
indirectly, to create, Incur, assume or suffer to exist any Lien (other than
Permitted Liens) upon any property or assets of the Company or its
Subsidiaries, or on any shares of Capital Stock of any Subsidiary, or any
income or profits thereon or proceeds thereof, without in any such case effectively
providing that the Securities of such series are secured equally and ratably
with (or prior to) the obligations secured by such Lien.

 

SECTION 10.11  Limitation on Sale and Leaseback
Transactions.

 

If the series of Securities is Senior Indebtedness, the
Company will not, and will not permit any of its Subsidiaries to, enter into
any Sale and Leaseback Transaction, unless (a) at the time of such transaction,
the Company or such Subsidiary would be permitted to Incur Indebtedness secured
by a Lien on the property or asset to be leased under clause (i) of the
definition of “Permitted Liens” in an amount at least equal to the Attributable
Debt with respect to the Sale and Leaseback Transaction without equally and
ratably securing the series of Securities, or (b) such Sale and Leaseback
Transaction is between the Company and a Subsidiary or between Subsidiaries, or
(c) such Sale and Leaseback Transaction is for a term, including renewal
rights, of not more than three years or (d) within 180 days of the effective
date of the Sale and Leaseback Transaction, the Company or such Subsidiary
commits to apply an amount not less than the greater of (i) the net proceeds of
the sale of the property or asset leased pursuant to such arrangement or (ii)
the Fair Market Value (as determined by the Board of Directors or the board of
directors of such Subsidiary) of such property or asset to retire the series of
Securities or any other Senior Indebtedness of the Company or any Subsidiary
with a maturity of greater than

 

91

 

one year from the
date of determination or to purchase other property having a fair market value
(as determined by the Board of Directors or the board of directors of such
Subsidiary) at least equal to the Fair Market Value of the property or asset
leased in such Sale and Leaseback Transaction (and in fact applies such amount
within 360 days of the effective date of the Sale and Leaseback Transaction).

 

SECTION 10.12  Transactions with Affiliates.

 

Except as provided for in Section 10.22, the Company
will not, and will not permit any of its Subsidiaries to, directly or
indirectly, enter into any transaction or series of related transactions
(including, without limitation, the sale, purchase, exchange or lease of
assets, property or services, the entering into of any contract, agreement or
understanding, any Investment, or the payment of any compensation) with any
Affiliate (other than a Subsidiary) unless (i) such transaction or series of
transactions is or are on terms that are no less favorable to the Company or
such Subsidiary, as the case may be, than could have been obtained at the time
of such transaction or transactions in a comparable transaction in arm’s-length
dealings with an unaffiliated third party and (ii) with respect to any
transaction or series of transactions involving aggregate payments in excess of
$15,000,000, the Company delivers an Officers’ Certificate to the Trustee
certifying that such transaction or series of transactions complies with clause
(i) above and that such transaction or series of transactions has received the
approval of a majority of the disinterested directors of the Board of Directors
and for which the Company or such Subsidiary delivers to the Trustee a written
opinion of a recognized independent financial advisor, auditing or appraisal
firm stating that the transaction is fair to the Company or such Subsidiary
from a financial point of view or in the case of the sale by the Company or a
Subsidiary of an asset, that the consideration received for such asset equals
or exceeds the appraised value of such asset, or in the case of a purchase by
the Company or a Subsidiary of an asset, that the consideration paid for such
asset equals or does not exceed the appraised value of such asset, provided
that the foregoing restriction shall not apply, with respect to any series of
Securities, to transactions pursuant to agreements, in place and as in place as
of the date of this Indenture, disclosed or described in the Relevant
Prospectus for such series or in the Company’s Annual Report on Form 10-K to
the Commission for its latest fiscal year prior to the date of issuance of such
series of Securities, and any extensions of such agreements and any
replacements of such agreements, provided such replacements have substantially
similar terms to the agreements being replaced.

 

SECTION 10.13  Limitation on Subsidiary Indebtedness.

 

If the series of Securities is Senior Indebtedness,
and except as provided for in Section 10.22, the Company will not permit any of
its Subsidiaries to Incur any Indebtedness (other than Indebtedness (x) which
would be permitted to be secured by a Lien under the terms of Section 10.10 and
(y) otherwise in an amount not in excess of $50,000,000 outstanding at any
time), provided that this Section 10.13 shall not restrict any
Subsidiary from Incurring Indebtedness to and held by the Company or a wholly
owned Subsidiary.

 

92

 

SECTION 10.14  Restriction on Preferred Shares of Subsidiaries.

 

Except as provided for in Section 10.22, the Company
will not permit any of its Subsidiaries to issue any Preferred Shares (other
than Redeemable Capital Stock, to the extent such Redeemable Capital Stock is
otherwise permitted to be issued in accordance with the terms of this
Indenture) or warrants, options or other rights to purchase or otherwise
acquire any Preferred Shares of such Subsidiary (other than Redeemable Capital
Stock, to the extent such Redeemable Capital Stock is otherwise permitted to be
issued in accordance with the terms of this Indenture) or permit any Person to
own or hold an interest in any Preferred Shares of such Subsidiary (other than
Redeemable Capital Stock, to the extent such Redeemable Capital Stock is
otherwise permitted to be issued in accordance with the terms of this
Indenture), provided, however, that this Section 10.14 shall not
restrict any Subsidiary from issuing Preferred Shares to and held by the
Company or a wholly owned Subsidiary.

 

SECTION 10.15  Limitation on Dividends and Other Payment
Restrictions Affecting Subsidiaries.

 

With respect to any series of Securities, the Company
will not, and will not permit any Material Subsidiary to, create or otherwise
cause or suffer to exist or become effective any consensual encumbrance or
restriction of any kind on the ability of any Material Subsidiary to (a) pay
dividends or make any other distribution on its Capital Stock, (b) pay any
Indebtedness owed to the Company or any Subsidiary, (c) make loans or advances to
the Company or any Subsidiary or (d) transfer any of its property or assets to
the Company or any Subsidiary, except (i) any encumbrance or restriction with
respect to a Subsidiary that is not a Subsidiary on the date of this Indenture,
in existence at the time such Person becomes a Subsidiary or created on the
date it becomes a Subsidiary so long as such encumbrance or restriction was not
created in contemplation of such Person becoming a Subsidiary; (ii) any
encumbrance or restriction with respect to a Subsidiary that had no assets
immediately prior to the time the encumbrance or restriction was created and
which encumbrance or restriction was created in connection with such
Subsidiary’s acquisition of assets and the financing thereof; (iii) any encumbrance
or restriction arising under or by reason of applicable law; (iv) any
restriction on the ability of a Subsidiary to transfer an asset or property to
the extent such restriction arises pursuant to a security interest or mortgage
entered into in connection with the financing of the acquisition of such asset
or property; and (v) any encumbrance or restriction pursuant to any agreement
that creates a Permitted Lien or extends, refinances, renews or replaces any
agreement containing any of the restrictions described in the foregoing clauses
(i), (ii) and (iv), provided that the terms and conditions of any such
restrictions are not materially less favorable to the Holders of such series of
Securities than those under or pursuant to the agreement extended, refinanced,
renewed or replaced.  The Incurrence of
Indebtedness shall not be considered the creation, existence or effectiveness
of a consensual encumbrance or restriction merely because the obligation to
repay such Indebtedness may limit such Subsidiary’s cash flow available to make
any of the payments described in clauses (a) through (d) above.

 

93

 

SECTION 10.16  Purchase of Securities upon Change of
Control.

 

(a)           If there shall have
occurred a Change of Control, the Securities then Outstanding shall be
purchased by the Company, at the option of the Holder thereof, in whole or in
part in integral multiples of $1,000, on a Business Day that is not earlier
than 45 days nor later than 60 days from the date the Change of Control Notice
referred to below is given to Holders of the Securities or such later date as
may be necessary for the Company to comply with requirements under the Exchange
Act (such date, or such later date, being the “Change of Control Purchase Date”),
at a purchase price in cash (the “Change of Control Purchase Price”) in an
amount equal to 101% of the principal amount of such Securities plus accrued
and unpaid Interest (including any Defaulted Interest), if any, to the Change
of Control Purchase Date, subject to satisfaction by or on behalf of the Holder
of the Securities of the requirements set forth in Section 10.16(c).

 

(b)           Within 30 days after
the occurrence of a Change of Control, the Company shall give written notice of
such Change of Control (a “Change of Control Notice”) to the Trustee, and the
Trustee shall promptly upon its receipt of such notice give a copy of such
notice to Holders of the Securities in the manner specified in Section
1.07.  The Trustee shall be under no
obligation to ascertain the occurrence of a Change of Control or to give notice
with respect thereto other than as provided above upon receipt of a Change of
Control Notice from the Company.  The
Change of Control Notice shall include a form of Change of Control Purchase
Notice to be completed by the Holder of the Securities and shall state:

 

(i)            the events causing
the Change of Control and the date such Change of Control is deemed to have
occurred for purposes of this Section 10.16;

 

(ii)           the date by which a
Holder of the Securities must give a Change of Control Purchase Notice;

 

(iii)          the Change of
Control Purchase Price;

 

(iv)          the Change of
Control Purchase Date;

 

(v)           that any Security
not purchased will continue to accrue interest;

 

(vi)          that the Company
will pay the Change of Control Purchase Price, promptly following the Change of
Control Purchase Date, for any Securities that have been properly tendered and
not withdrawn; and

 

(vii)         the procedures a
Holder must follow to exercise rights under this Section 10.16 and a brief
description of those rights and the limitations on such rights set forth in
this Section 10.16.

 

(c)           A Holder of
Securities may exercise its rights specified in Section 10.16(a) upon (i)
delivery to any Paying Agent of a written notice (a “Change of Control Purchase
Notice”) at any time prior to the close of business on the Change of Control
Purchase Date, stating (A) the certificate number of the Security that the
Holder will deliver to be

 

94

 

purchased and (B) the portion of the principal amount of the Security
that the Holder of the Securities will deliver to be purchased, which portion
must be $1,000 or an integral multiple thereof and (ii) delivery of such
Security to such Paying Agent at the office specified for such purpose in the
Change of Control Notice prior to, on or after the Change of Control Purchase
Date (together with all necessary endorsements), such delivery being a
condition to receipt by the Holder of the Change of Control Purchase Price
therefor; provided, however, that such Change of Control Purchase
Price shall be so paid only if the Security so delivered to such office shall
conform in all respects to the description thereof set forth in the related
Change of Control Purchase Notice.  A
Change of Control Purchase Notice may be withdrawn by delivering to the Paying
Agent, not later than the close of business on the third Business Day
immediately preceding the Change of Control Purchase Date, a telegram, telex,
facsimile transmission or letter setting forth the name of the Holder of the
Securities, the principal amount of Securities covered by the Change of Control
Purchase Notice, and a statement that such Holder is withdrawing his election
to have such Securities purchased.  If a
Holder of the Securities has elected to deliver to the Company for purchase a
portion of a Security and not timely withdrawn such election, and if the
principal amount of such portion is $1,000 or an integral multiple of $1,000,
the Company shall purchase such portion from the Holder thereof pursuant to
this Section 10.16.  Provisions of this
Indenture that apply to the purchase of all of a Security also apply to the
purchase of a portion of such Security. 
Each Paying Agent shall promptly notify the Company of the receipt by
the former of any and all Change of Control Purchase Notices.

 

(d)           Upon receipt by any
Paying Agent of a Change of Control Purchase Notice which is not timely
withdrawn, the Holder of the Security in respect of which such Change of Control
Purchase Notice was given shall thereafter be entitled to receive solely the
Change of Control Purchase Price with respect to such Security.  Such Change of Control Purchase Price shall
be paid to such Holder promptly following the later of the Business Day
following the Change of Control Purchase Date (provided the conditions in
Section 10.16(c) have been satisfied) and the time of delivery of such Security
to the relevant Paying Agent at the office of such Paying Agent by the Holder
thereof in the manner required by Section 10.16(c).

 

(e)           On or prior to the
Change of Control Purchase Date, the Company shall deposit with the Trustee or
with a Paying Agent (or, if the Company is acting as its own Paying Agent,
segregate and hold in trust as provided in Section 10.03) an amount of money in
same day funds (or New York Clearing House funds if such deposit is made prior
to the Change of Control Purchase Date) sufficient to pay the Change of Control
Purchase Price of all the Securities or portions thereof which are to be
purchased on that date.

 

(f)            Upon surrender of
any Security for purchase in accordance with the foregoing provisions, such
Security shall be paid by the Company at the Change of Control Purchase Price; provided,
however, that installments of Interest whose Stated Maturity is on or
prior to the Change of Control Purchase Date shall be payable to the Holders of
such Securities registered as such on the relevant Regular Record Dates
according to the terms and the provisions of Section 3.07.  If any Security tendered for

 

95

 

purchase shall
not be so paid upon surrender thereof, the principal thereof, and premium, if
any, thereon, shall, until paid, bear interest from the Change of Control
Purchase Date at the rate borne by such Security.

 

(g)           Any Security that is
to be purchased only in part shall be surrendered to a Paying Agent at the
office of such Paying Agent (with, if the Company or the Trustee so requires,
due endorsement by, or a written instrument of transfer in form satisfactory to
the Company and the Trustee duly executed by, the Holder thereof or such
Holder’s attorney duly authorized in writing), and the Company shall execute
and the Trustee shall authenticate and deliver to the Holder of such Security,
without service charge, one or more new Securities of any authorized
denomination as requested by such Holder in an aggregate principal amount equal
to, and in exchange for, the portion of the principal amount of the Security so
surrendered that is not purchased.

 

SECTION 10.17  Disposition of Proceeds of Asset Sales.

 

(a)           Except as provided for in
Section 10.22, the Company will not, and will not permit any of its
Subsidiaries to, make any Asset Sale unless

 

(i)            the Company or such
Subsidiary, as the case may be, receives consideration (including by way of the
purchaser assuming Indebtedness of the Company or any of its Subsidiaries) at
the time of such Asset Sale at least equal to the Fair Market Value of the
shares or assets sold or otherwise disposed of,

 

(ii)           if the Fair Market
Value of such Asset Sale exceeds $25,000,000, at least 75% of such
consideration consists of cash (including cash to be received after the date of
such sale pursuant to a lease not giving rise to a Capital Lease Obligation),
Cash Equivalents or the assumption of Indebtedness of the Company or any of its
Subsidiaries by the purchaser, provided that, in the event of a sale by
the Company or any of its Subsidiaries of a hotel, the Fair Market Value of
which exceeds $25,000,000, at least 75% of such consideration consists of (A)
cash (including cash to be received after the date of such sale pursuant to a
lease not giving rise to a Capital Lease Obligation), (B) Cash Equivalents, (C)
the assumption of Indebtedness of the Company or any of its Subsidiaries by the
purchaser or (D) Indebtedness of the purchaser or any Subsidiary of the
purchaser secured by a perfected first mortgage on the hotel being sold, and

 

(iii)          no Default or Event
of Default exists or would exist after giving effect to such Asset Sale.

 

(b)           To the extent that
the Net Cash Proceeds from any Asset Sale are not applied to permanently repay
Senior Indebtedness, and permanently reduce the commitments under the
instruments governing the Indebtedness so repaid, the Company or such
Subsidiary, as the case may be, may commit to apply the Net Cash Proceeds from
such Asset Sale, within 180 days of such Asset Sale (and in fact apply such Net
Cash Proceeds within 360 days of such Asset Sale), to an Investment in properties
and assets that will be used in the businesses of the Company and its
Subsidiaries as permitted or

 

96

 

engaged in on
the date of this Indenture, or in businesses similar or related thereto
(“Replacement Assets”).  Any Net Cash
Proceeds from any Asset Sale that are not applied to pay, acquire or retire
Senior Indebtedness, and are either not committed to an Investment in
Replacement Assets within 180 days of such Asset Sale or, if committed within
such 180-day period, are not invested in Replacement Assets within such 360-day
period, constitute “Excess Proceeds”, provided that, in the event that
the Company is required to make and completes an Excess Proceeds Offer (as
defined in Subsection 10.17(c)), upon such completion, the amount of Excess
Proceeds will be reset to zero and thereafter recalculated from time to time
according to the provisions of this Section 10.17.  The Trustee shall be under no obligation to ascertain the
existence of Excess Proceeds resulting from any Asset Sale.

 

(c)           If, as of the first
day of any calendar month, the aggregate amount of Excess Proceeds not
theretofore subject to an Excess Proceeds Offer totals at least $10,000,000,
the Company must, not later than the fifteenth Business Day of such month, make
an offer (an “Excess Proceeds Offer”) to purchase from the holders of public,
unsecured Indebtedness that is not Subordinated Indebtedness (including any
series of Securities which are not Subordinated Indebtedness) on a pro  rata
basis an aggregate principal amount of such Indebtedness equal to the Excess
Proceeds on such date, at a purchase price in cash equal to 100% of the
principal amount of such Indebtedness, plus accrued and unpaid interest (if
any) (including Defaulted Interest) to the date of purchase (the “Excess
Proceeds Payment”).  If the aggregate
principal amount of such Indebtedness validly tendered and not withdrawn by
holders thereof exceeds the Excess Proceeds, the Indebtedness to be purchased
will be selected on a pro  rata basis.

 

At any time that the
Company is required to commence an Excess Proceeds Offer, it shall mail a form
of letter of transmittal and a notice to the Trustee and each Holder of
Securities which are not Subordinated Indebtedness, which notice shall state:

 

(i)            that the Excess
Proceeds Offer is being made pursuant to this Section 10.17 and that all such
Securities validly tendered will be accepted for payment on a pro  rata
basis together with all other public, unsecured Indebtedness which is not
Subordinated Indebtedness;

 

(ii)           the purchase price
and the date of purchase (which shall be a Business Day no earlier than 30 days
nor later than 40 days from the date such notice is mailed and which shall be a
date prior to the date of purchase, if any, established by the Company for the
purchase of any Indebtedness subordinated to such Securities pursuant to any
covenant or other provision similar to this Section 10.17) (the “Excess
Proceeds Payment Date”);

 

(iii)          that any such
Securities not tendered will continue to accrue interest;

 

(iv)          that, unless the
Company defaults in the payment of the Excess Proceeds Payment, any such
Securities accepted for payment pursuant to the

 

97

 

Excess Proceeds Offer shall cease to accrue interest after the Excess
Proceeds Payment Date;

 

(v)           that Holders
electing to have Securities purchased pursuant to the Excess Proceeds Offer
will be required to surrender the evidence of such Securities, together with a
properly completed copy of the form of letter of transmittal enclosed
therewith, to the Paying Agent at the address specified in the notice prior to
the close of business on the Business Day immediately preceding the Excess
Proceeds Payment Date;

 

(vi)          that Holders will be
entitled to withdraw their election if the Paying Agent receives, not later
than the close of business on the third Business Day immediately preceding the
Excess Proceeds Payment Date, a facsimile transmission or letter setting forth
the name of such Holder, the type and principal amount of Securities delivered
for purchase, and a statement that such Holder is withdrawing his election to
have such Securities purchased; and

 

(vii)         that Holders whose
Securities are being purchased only in part will be issued new Securities, with
identical terms and equal in principal amount to the unpurchased portion of the
Indebtedness surrendered; provided that all Securities purchased and
each new evidence of Securities issued shall be in an original principal amount
of $1,000 or an integral multiple thereof.

 

On or prior to the date
notice is mailed to the Trustee and each Holder of Securities receives such
Excess Proceeds Offer, the Company shall furnish the Trustee with an Officers’
Certificate stating the amount of the Excess Proceeds Payment.

 

On the Excess Proceeds Payment Date, the Company
shall:

 

(i)            accept for payment
on a pro  rata basis public, unsecured Indebtedness that is not
Subordinated Indebtedness (including Securities which are not Subordinated
Indebtedness), or portions thereof tendered pursuant to the Excess Proceeds
Offer;

 

(ii)           deposit with the
Paying Agent money sufficient to pay the purchase price of all such Securities
or portions thereof so accepted; and

 

(iii)          deliver, or cause
to be delivered, to the Trustee all such Securities or portions thereof so
accepted together with an Officers’ Certificate specifying the Securities or
portions thereof accepted for payment by the Company.  The Paying Agent shall promptly mail to the Holders of Securities
so accepted payment in an amount equal to the purchase price, and the Trustee
shall promptly authenticate and mail to such Holders a new evidence of
Securities of the same tenor and equal in principal amount to any unpurchased
portion of the Security surrendered; provided that all Securities
purchased and each new evidence of Securities issued shall be in an original
principal amount of $1,000 or an integral multiple thereof.

 

98

 

The Company will publicly
announce the results of the Excess Proceeds Offer as soon as practicable after
the Excess Proceeds Payment Date.  For
purposes of this Section 10.17, the Trustee shall act as the Paying Agent.

 

The Company will comply
with Rule 14e-1 under the Exchange Act and any other securities laws and
regulations thereunder, to the extent such laws and regulations are applicable,
in the event that an Asset Sale occurs and the Company is required to purchase
Indebtedness as described in this Section 10.17.

 

(d)           Notwithstanding
anything in Section 10.17(c), to the extent that the aggregate principal amount
of public, unsecured Indebtedness that is not Subordinated Indebtedness
tendered pursuant to an Excess Proceeds Offer is less than the Excess Proceeds
available for such Excess Proceeds Offer, the Company may use such amount for
the purchase of any Subordinated Indebtedness pursuant to a covenant or other
provision similar to this Section 10.17 and for general corporate purposes.

 

(e)           Notwithstanding
anything to the contrary in this Indenture, 75% of the total amount of any Net
Cash Proceeds received in excess of a total cumulative amount of
$20 million and up to total Net Cash Proceeds of $260 million (such
total amount, "Applicable OEHL Net Cash Proceeds") from a sale or sales
of capital stock of OEHL will be applied as follows, in the case of clauses (i)
and (ii) within 180 days of such sale or sales: (i)(I) to permanently repay any
non-public Senior Indebtedness and to permanently reduce the commitments under
the instruments governing the Indebtedness so repaid and/or (II) repurchase,
acquire or repay any other Senior Indebtedness the final stated maturity of
which is within 180 days of the date of such sale or sales of Capital
Stock of OEHL or (ii) to offer to purchase rateably from all Holders of
the Securities an aggregate principal amount of Securities equal to the amount
of Applicable OEHL Net Cash Proceeds received (less any amount expended
pursuant to immediately preceding clause (i)), at a price in cash equal to 100%
of the outstanding principal amount thereof plus any accrued and unpaid
interest to the purchase date, and (iii) only in the event the Applicable
OEHL Net Cash Proceeds have not been expended to purchase Securities in an
offer to purchase Securities that has been made to all Holders on the terms
described in the immediately preceding clause (ii), in the same manner provided
for under this covenant with respect to any Net Cash Proceeds arising from any
other Asset Sales.

 

SECTION 10.18  Conduct of Business.

 

The Company and its Subsidiaries will not engage in
any businesses that are not the same as, or similar or related to, the
businesses in which the Company and its Subsidiaries have engaged since
July 1, 1996.

 

SECTION 10.19  Maintenance of Consolidated Tangible Net
Worth.

 

Except as provided for in Section 10.22, if, at any
time, the Company’s Consolidated Tangible Net Worth at the end of each of any
two consecutive fiscal quarters is less than the Minimum Consolidated Tangible
Net Worth, then the Company shall make an offer (an “Offer”), on or prior to
the 30th day following the date on which the Company files its quarterly or
annual report, as the case may be, with the Commission reporting the results
for the second fiscal quarter giving rise to the obligation to make the Offer
(or, in the event the Company is not required to file a quarterly report with
the Commission in accordance with this Indenture, on or prior to the 30th day
following the date on which the Company determines the results for the second
fiscal quarter giving rise to the obligation to make the Offer; but in any
event not later than the 75th day following the end of the quarter in the case
of the first three fiscal quarters in any fiscal year, or the 120th day
following the end of the quarter in the case of the fourth quarter in any
fiscal year), to purchase 10% of the aggregate principal amount of each series
of Securities then Outstanding at a purchase price of 100% of the principal
amount plus interest, if any, accrued and unpaid to the date on which the
Securities are to be purchased (the “Purchase Date”); provided, however,
that if the Purchase Date is an Interest Payment Date, interest payable on such
date shall be paid according to the terms and provisions of Section 3.07.  The Company may not credit against its
obligation to purchase Securities on any Purchase Date hereunder the principal
amount of any Securities previously acquired or redeemed by the Company.  In no event shall the failure to meet the
Minimum Consolidated Tangible Net Worth requirement stated above at the end of
any fiscal quarter be counted toward the making of more than one Offer
hereunder.

 

99

 

Notice of an Offer, together with a form of letter of
transmittal, shall be mailed by the Company not less than 25 days before the
Purchase Date to the Trustee and to the Holders of each Outstanding series of
Securities at their last registered addresses. 
The Trustee shall be under no obligation to ascertain whether an Offer
is required to be made under this Section 10.19.  The Offer shall remain open from the time of mailing until at
least until five Business Days before the Purchase Date.

 

The notice and form of letter of transmittal shall be
accompanied by a copy of the information regarding the Company required to be
contained in a quarterly report for the second fiscal quarter referred to above
if such second fiscal quarter is one of the Company’s first three fiscal
quarters or, if the Company is not required to file quarterly reports with the
Commission in accordance with this Indenture, such other report as the Company
delivers to its shareholders with respect to such second fiscal quarter or, if
no such report is delivered, a copy of the Company’s quarterly financial results
for such quarter.  If such second fiscal
quarter is the Company’s last fiscal quarter of a fiscal year, a copy of the
information required to be contained in an annual report for the fiscal year
ending with such second fiscal quarter shall either accompany the notice or be
delivered to Holders not less than ten days before the Purchase Date.  The notice and form of letter of transmittal
shall contain all instructions and materials necessary to enable such Holders
to tender Securities pursuant to the Offer. 
The notice together with the form of letter of transmittal, which shall
govern the terms of the Offer, shall state:

 

(1)           the Offer is being
made pursuant to this Section 10.19 and that Securities will be accepted for
payment on a pro  rata basis;

 

(2)           the purchase price
and the Purchase Date;

 

(3)           that any Security
not tendered or accepted for payment will continue to accrue Interest;

 

(4)           that, unless the
Company defaults in the payment of the purchase price, any Security accepted
for payment pursuant to the Offer shall cease to accrue Interest after the
Purchase Date;

 

(5)           that Holders
electing to have a Security purchased pursuant to the Offer will be required to
surrender the Security, with a properly completed copy of the form of letter of
transmittal, to the Paying Agent at the address specified in the notice five
Business Days prior to the Purchase Date;

 

(6)           that Holders will be
entitled to withdraw their election if the Paying Agent receives, not later
than three Business Days prior to the close of business on the Purchase Date, a
facsimile transmission or letter setting forth the name of the Holder, the
principal amount of Securities the Holder delivered for purchase and a
statement that such Holder is withdrawing his election to have such Securities
purchased; and

 

(7)           that Holders whose
Securities are purchased only in part will be issued new Securities equal in
principal amount to the unpurchased portions thereof tendered pursuant to the
Offer, of the Securities surrendered.

 

100

 

On the Purchase Date, the Company shall (i) accept for
purchase on a pro  rata basis each series of Securities then
Outstanding or portions thereof tendered pursuant to the Offer in a principal
amount not to exceed 10% of the aggregate principal amount originally issued of
each such series, (ii) deposit with the Paying Agent money sufficient to pay
the purchase price of all Securities or portions thereof so accepted, and (iii)
deliver to the Trustee Securities so accepted together with an Officers’
Certificate (A) setting forth calculations demonstrating compliance with
clauses (i) and (ii), and (B) stating the Securities or portions thereof
accepted for payment by the Company.  The
Paying Agent shall promptly mail or deliver to Holders of Securities so
accepted payment in an amount equal to the purchase price as specified in an
Officers’ Certificate.  The Trustee
shall promptly authenticate and mail or deliver to each Holder who tendered
Securities pursuant to the Offer a new Security equal in principal amount to
any unpurchased portion of the Security surrendered.  The Company will publicly announce the results of the Offer on or
as soon as practicable after the Purchase Date.  For purposes of this Section 10.19, the Trustee shall act as the
Paying Agent.

 

SECTION 10.20  Statement as to Compliance; Notice of
Default; Reporting Requirements.

 

(a)           The
Company will deliver to the Trustee, within 120 days after the end of each
fiscal year ending after the date of this Indenture, a brief certificate of its
principal executive officer, principal financial officer or
principal accounting officer stating whether, to such officer’s knowledge, the
Company is in compliance with all covenants and conditions to be complied with
by it under this Indenture with respect to each Outstanding series of
Securities.  For purposes of this
Section 10.20, such compliance shall be determined without regard to any period
of grace or requirement of notice under this Indenture.

 

(b)           If a Default has occurred
and is continuing with respect to any Outstanding series of Securities, or if
the Trustee, any Holder or the trustee for or the holder of any other
Indebtedness of the Company (other than Indebtedness in the aggregate principal
amount of less than $5,000,000) gives any notice or takes any other action with
respect to a claimed Default, the Company shall deliver to the Trustee an
Officers’ Certificate specifying such Default, notice or other action within
five Business Days of the occurrence of such Default or receipt of such notice;
provided, however, that in the event that the Company gives
notice of such Default, notice or other action to any other person prior to the
fifth Business Day after the occurrence of such Default or receipt of such
notice, the Company shall deliver such Officers’ Certificate to the Trustee
concurrently with the giving of such notice to such other person.

 

(c)           So long as any
Securities remain Outstanding, the Company shall file with the Commission such
annual reports, quarterly reports and all other information, documents and
other reports required to be filed with the Commission under Section 13 and
15(d) of the Exchange Act by a United States domestic issuer, provided
that if the Company does not have a class of securities registered under the
Exchange Act (and only if the Company does not have a class of securities
registered under the Exchange Act), the Company shall furnish to the Trustee
(and, to the extent it is permitted to do so, to the Commission) on a timely
basis such financial information required to be filed with the

 

101

 

Commission
pursuant to Section 7.03(1) of this Indenture by a United States domestic
issuer with a class of securities registered under the Exchange Act.  The Company will furnish to the Trustee,
and, to the extent required by law, provide to the Holders, within 15 days
after its files them with the Commission copies and/or summaries of such
reports and documents.  For the purposes
of this paragraph, as long as Sea Containers remains a "foreign private
issuer" under Rule 405 of the Securities Act, the annual and quarterly
reports, and other documents and information (including financial information)
to be filed or furnished to the Trustee need not include any information not
required to be provided by a foreign private issuer.

 

(d)           The Company will
provide the Holders with copies of all documents which the Company, from time
to time, provides to its shareholders.

 

SECTION 10.21  Waiver of Certain Covenants.

 

The Company may with respect to any Outstanding series
of the Securities omit in any particular instance to comply with any covenant
or condition set forth in Sections 10.08 through 10.15 and Section 10.18 if,
before or after the time for such compliance, the Holders of a majority in
aggregate principal amount of the series at the time Outstanding shall, by Act
of such Holders, waive such compliance in such instance with such covenant or
condition, but no such waiver shall extend to or affect such covenant 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 covenant or condition shall remain in full force
and effect.

 

SECTION 10.22  Termination of Certain Covenants.

 

In the event that the ratings assigned to any
Outstanding series of the Securities by Standard & Poor’s Ratings Services,
a division of the McGraw-Hill Companies, Inc. (or successor thereto) and
Moody’s Investors Service, Inc. (or successor thereto) are equal to or higher
than BBB– and Baa3, or the equivalents thereof, respectively (the “Investment
Grade Ratings”), and notwithstanding that such may later cease to have an
Investment Grade Rating, the Company and its Subsidiaries will not be subject
to its obligations under Sections 10.08, 10.09, 10.12, 10.13, 10.14, 10.17,
10.19 and clauses 3 and 4 of Section 8.01, provided that no Default or
Event of Default has occurred and is continuing.

 

ARTICLE ELEVEN

 

REDEMPTION OF SECURITIES

 

SECTION 11.01  Optional Tax Redemption.

 

(a)           The Securities of
any series may be redeemed at the option of the Company in whole but not in
part at any time at a redemption price equal to the principal amount thereof
plus accrued Interest to the date fixed for redemption, if, as a result of any
change in or amendment to the laws or any regulations or rulings promulgated
thereunder

 

102

 

of the
jurisdiction (or of any political subdivision or taxing authority thereof or
therein) in which the Company is incorporated or resident for tax purposes 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 jurisdiction (or such political subdivision or taxing
authority) is a party (a “Change in Tax Law”), which becomes effective on or
after the date of issuance of such series of Securities, the Company is or
would be required to pay Additional Amounts with respect to the Securities on
the next succeeding Interest Payment Date and the payment of such Additional
Amounts cannot be avoided by the use of any reasonable measures available to
the Company.  Prior to the giving of
notice of redemption of such Securities pursuant to this Indenture, the Company
will deliver to the Trustee an Officers’ Certificate, stating that the Company
is entitled to effect such redemption and setting forth in reasonable detail a
statement of circumstances showing that the conditions precedent to the right
of the Company to redeem such Securities pursuant to this paragraph have been
satisfied.

 

(b)           If, pursuant to
Section 8.01, a Surviving Entity has been or would be required to pay any
Additional Amounts, as therein provided, as a consequence of any amalgamation,
consolidation, merger, conveyance, transfer or lease and as a consequence of a
Change in Tax Law occurring after the date of such amalgamation, consolidation,
merger, conveyance, transfer or lease, the Securities of any series may be
redeemed at the option of such Surviving Entity in whole, but not in part, at
any time, at a redemption price equal to the principal amount thereof plus
accrued Interest to the date fixed for redemption.  Prior to the giving of notice of redemption of such Securities
pursuant to this Indenture, such Surviving Entity will deliver to the Trustee
an Officers’ Certificate, stating that such Person is entitled to effect such
redemption and setting forth in reasonable detail a statement of circumstances
showing that the conditions precedent to the right of such Person to redeem
such Securities pursuant to this paragraph have been satisfied.

 

SECTION 11.02  Applicability of Article.

 

Securities of any series which are redeemable before
their Stated Maturity shall be redeemable in accordance with their terms and,
except as otherwise specified as contemplated by Section 3.01 for Securities of
such series, in accordance with this Article.

 

SECTION 11.03  Election to Redeem; Notice to Trustee.

 

The election of the Company to redeem any series of
Securities shall be evidenced by a Board Resolution.  In case of any redemption at the election of the Company of less
than all of the Securities of any series, the Company shall, not less than 30
days (or, if the Trustee is to give notice at the request of the Company, 45
days) nor more than 60 days prior to the Redemption Date fixed by the Company
(unless a shorter notice period shall be satisfactory to the Trustee), notify
the Trustee in writing of such Redemption Date, of the principal amount of
Securities of such series to be redeemed. 
In the case of any redemption of Securities prior to the expiration of
any restriction on such redemption provided in the terms of such Securities or

 

103

 

elsewhere in this
Indenture, the Company shall furnish the Trustee with an Officers’ Certificate
evidencing compliance with such restriction.

 

SECTION 11.04  Selection by Trustee of Securities to Be
Redeemed.

 

If less than all the Securities of any series with the
same terms are to be redeemed, the particular Securities to be redeemed shall
be selected not more than 60 days and not less than 30 days prior to the
Redemption Date by the Trustee, from the Outstanding Securities of such series
issued on such date with the same terms not previously called for redemption,
either pro  rata, by lot or by any other method the Trustee deems
fair and reasonable, and the amounts to be redeemed may be equal to $1,000 or
any integral multiple thereof.

 

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

 

For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to the redemption of Securities
shall relate, in the case of any 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 11.05  Notice of Redemption.

 

Notice of redemption shall be given by first class
mail, postage prepaid, mailed not less than 30 nor more than 60 days prior to
the Redemption Date, unless a shorter period is specified by the terms of such
series established pursuant to Section 3.01, to each Holder of Securities to be
redeemed, but failure to give such notice in the manner herein provided to the
Holder of any Security designated for redemption as a whole or in part, or any
defect in the notice to any such Holder, shall not affect the validity of the
proceedings for the redemption of any other such Security or portion thereof.

 

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

 

All notices of redemption shall identify the
Securities to be redeemed (including CUSIP or CINS numbers) and shall state:

 

(1)           the Redemption Date,

 

(2)           the Redemption Price
and accrued interest, if any, to the Redemption Date payable as provided in
Section 11.07,

 

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

 

104

 

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

 

(5)           that on the
Redemption Date, the Redemption Price and accrued interest, if any, to the
Redemption Date payable as provided in Section 11.07 will become due and
payable upon each such Security, or the portion thereof, to be redeemed and, if
applicable, that interest thereon shall cease to accrue on and after said date,

 

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

 

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

 

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

 

(9)           if Bearer Securities
of any series are to be redeemed and any Registered Securities of such series
are not to be redeemed, and if such Bearer Securities may be exchanged for
Registered Securities not subject to redemption on this Redemption Date
pursuant to the fourth paragraph of Section 3.05 or otherwise, the last date,
as determined by the Company, on which such exchanges may be made, and

 

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

 

SECTION 11.06  Deposit of Redemption Price.

 

On or prior to 11:00 a.m., New York City time, on any
Redemption Date, the Company shall deposit with the Trustee or with a Paying
Agent (or, if the Company is acting as its own Paying Agent, which it may not
do in the case of a sinking fund payment under Article Twelve, segregate and
hold in trust as provided in Section 10.03) an amount of money in the Currency
in which the Securities of such series are payable (except as otherwise
specified pursuant to Section 3.01 for the Securities of such series and except,
if applicable, as provided in Sections 3.12(b), 3.12(d) and 3.12(e)) sufficient
to pay on the Redemption Date the Redemption Price of, and (except if the
Redemption Date shall be an Interest Payment Date) accrued interest on, all the
Securities or portions thereof which are to be redeemed on that date.

 

105

 

SECTION 11.07  Securities Payable on Redemption Date.

 

Notice of redemption having been given as aforesaid,
the Securities so to be redeemed shall, on the Redemption Date, become due and
payable at the Redemption Price therein specified in the Currency in which the
Securities of such series are payable (except as otherwise specified pursuant
to Section 3.01 for the Securities of such series and except, if applicable, as
provided in Sections 3.12(b), 3.12(d) and 3.12(e)) (together with accrued
interest, if any, to the Redemption Date), and from and after such date (unless
the Company shall default in the payment of the Redemption Price and accrued interest,
if any) such Securities shall if the same were interest-bearing cease to bear
interest and the coupons for such interest appertaining to any Bearer
Securities so to be redeemed, except to the extent provided below, shall be
void.  Upon surrender of any such
Security for redemption in accordance with said notice, together with all
coupons, if any, appertaining thereto maturing after the Redemption Date, such
Securities shall be paid by the Company at the Redemption Price, together with
accrued interest, if any, to the Redemption Date; provided, however,
that installments of interest on Bearer Securities whose Stated Maturity is on
or prior to the Redemption Date shall be payable only at an office or agency
located outside the United States (except as otherwise provided in Section
10.02) and, unless otherwise specified as contemplated by Section 3.01, only
upon presentation and surrender of coupons for such interest, and provided
further that, unless otherwise specified as contemplated in Section
3.01, installments of interest on Registered Securities whose Stated Maturity
is on or prior to the Redemption Date shall be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 3.10.

 

If any Bearer Security surrendered for redemption
shall not be accompanied by all appurtenant coupons maturing after the
Redemption Date, such Security may be paid after deducting from the Redemption
Price an amount equal to the face amount of all such missing coupons, or the
surrender of such missing coupon or coupons may be waived by the Company and
the Trustee if there be furnished to them such security or indemnity as they may
require to save each of them and any Paying Agent harmless.  If thereafter the Holder of such Security
shall surrender to the Trustee or any Paying Agent any such missing coupon in
respect of which a deduction shall have been made from the Redemption Price,
such Holder shall be entitled to receive the amount so deducted; provided,
however, that interest represented by coupons shall be payable only at
an office or agency located outside the United States (except as otherwise
provided in Section 10.02) and, unless otherwise specified as contemplated by
Section 3.01, only upon presentation and surrender of those coupons.

 

If any Security called for redemption shall not be so
paid upon surrender thereof for redemption, the Redemption Price shall, until
paid, bear interest from the Redemption Date at the rate of interest set forth
in such Security or, in the case of an Original Issue Discount Security, at the
Yield to Maturity of such Security.

 

So long as it is known to the Trustee that an Event of
Default is continuing hereunder, the Trustee shall not redeem any Securities of
any series pursuant to this Article (unless all outstanding Securities of such
series are to be redeemed) or mail or give any notice of redemption of
Securities except that, where the mailing of notice of redemption of any
Securities shall theretofore have been made, the Trustee shall redeem or cause
to be redeemed such

 

106

 

Securities, provided
that it shall have received from the Company a sum sufficient for such
redemption.  Except as aforesaid, any
monies theretofore or thereafter received by the Trustee 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 5.13 or the Default cured on or before the
sixtieth day preceding the Redemption Date, such monies shall thereafter be
applied in accordance with the provisions of this Article Eleven.

 

SECTION 11.08  Securities Redeemed in Part.

 

Any Registered Security which is to be redeemed only
in part pursuant to the provisions of this Article or of Article 12 shall be
surrendered at the office or agency of the Company maintained for such purpose
pursuant to Section 10.02 (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the
Company and the Trustee, duly executed by, the Holder thereof or his attorney
duly authorized in writing) and the Company shall execute, and the Trustee
shall authenticate and deliver to the Holder of such Security without service
charge, a new Security or Securities of the same series, of any authorized
denomination as requested by such Holder in aggregate principal amount equal to
and in exchange for the unredeemed portion of the principal of the Security so
surrendered.

 

ARTICLE TWELVE

 

SINKING FUNDS

 

SECTION 12.01  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 3.01 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 such Securities of any series is herein
referred to as an “optional sinking fund payment”.  If provided for by the terms of any Securities of any series, the
cash amount of any mandatory sinking fund payment may be subject to reduction
as provided in Section 12.02.  Each
sinking fund payment shall be applied to the redemption of Securities of any
series as provided for by the terms of Securities of such series.

 

SECTION 12.02  Satisfaction of Sinking Fund Payments with
Securities.

 

The Company may, in satisfaction of all or any part of
any mandatory sinking fund payment with respect to the Securities of a series,
(1) deliver Outstanding Securities of such

 

107

 

series (other than
any previously called for redemption) together in the case of any Bearer
Securities of such series with all unmatured coupons appertaining thereto and
(2) apply as a credit Securities of such series which have been redeemed either
at the election of the Company pursuant to the terms of such Securities or
through the application of permitted optional sinking fund payments pursuant to
the terms of such Securities, as provided for by the terms of such Securities; provided
that such Securities so delivered or applied as a credit have not been
previously so credited.  Such Securities
shall be received and credited for such purpose by the Trustee at the
applicable Redemption Price specified in such Securities for redemption through
operation of the sinking fund and the amount of such mandatory sinking fund
payment shall be reduced accordingly.

 

SECTION 12.03  Redemption of Securities for Sinking Fund.

 

Not less than 60 days prior to each sinking fund
payment date for Securities of any series, the Company will deliver to the
Trustee an Officers’ Certificate specifying the amount of the next ensuing
mandatory sinking fund payment for that series pursuant to the terms of that
series, the portion thereof, if any, which is to be satisfied by payment of
cash in the Currency in which the Securities of such series are payable (except
as otherwise specified pursuant to Section 3.01 for the Securities of such
series and except, if applicable, as provided in Sections 3.12(b), 3.12(d) and
3.12(e)) and the portion thereof, if any, which is to be satisfied by
delivering and crediting Securities of that series pursuant to Section 12.02,
and the optional amount, if any, to be added in cash to the next ensuing
mandatory sinking fund payment, and will also deliver to the Trustee any
Securities to be so delivered and credited. 
If such Officers’ Certificate shall specify an optional amount to be
added in cash to the next ensuing mandatory sinking fund payment, the Company
shall thereupon be obligated to pay the amount therein specified.  Not less than 30 days before each such
sinking fund payment date the Trustee shall select the Securities to be
redeemed upon such sinking fund payment date in the manner specified in Section
11.04 and cause notice of the redemption thereof to be given in the name of and
at the expense of the Company in the manner provided in Section 11.05.  Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 11.07 and 11.08.

 

ARTICLE THIRTEEN

 

REPAYMENT AT THE OPTION OF HOLDERS

 

SECTION 13.01  Applicability of Article.

 

Repayment of Securities of any series before their
Stated Maturity at the option of Holders thereof shall be made in accordance
with the terms of such Securities and (except as otherwise specified by the
terms of such series established pursuant to Section 3.01) in accordance with
this Article.

 

108

 

SECTION 13.02  Repayment of Securities.

 

Securities of any series subject to repayment in whole
or in part at the option of the Holders thereof will, unless otherwise provided
in the terms of such Securities, be repaid at the Repayment Price thereof,
together with interest, if any, thereon accrued to the Repayment Date specified
in or pursuant to the terms of such Securities.  The Company covenants that on or before the Repayment Date it
will deposit with the Trustee or with a Paying Agent (or, if the Company is
acting as its own Paying Agent, segregate and hold in trust as provided in
Section 10.03) an amount of money in the Currency in which the Securities of
such series are payable (except as otherwise specified pursuant to Section 3.01
for the Securities of such series and except, if applicable, as provided in
Sections 3.12(b), 3.12(d) and 3.12(e)) sufficient to pay the Repayment Price
of, and (except if the Repayment Date shall be an Interest Payment Date)
accrued interest on, all the Securities or portions thereof, as the case may
be, to be repaid on such date.

 

SECTION 13.03  Exercise of Option.

 

Securities of any series subject to repayment at the
option of the Holders thereof will contain an “Option to Elect Repayment” form
on the reverse of such Securities.  To
be repaid at the option of the Holder, any Security so providing for such
repayment, with the “Option to Elect Repayment” form on the reverse of such
Security duly completed by the Holder (or by the Holder’s attorney duly
authorized in writing) must be received by the Company at the Place of Payment
therefor specified in the terms of such Security (or at such other place or
places of which the Company shall from time to time notify the Holders of such
Securities) not earlier than 45 days nor later than 30 days prior to the
Repayment Date.  If less than the entire
Repayment Price of such Security is to be repaid in accordance with the terms
of such Security, the portion of the Repayment Price of such Security to be
repaid, in increments of the minimum denomination for Securities of such
series, and the denomination or denominations of the Security or Securities to
be issued to the Holder for the portion of such Security surrendered that is not
to be repaid, must be specified. Any Security providing for repayment at the
option of the Holder thereof may not be repaid in part if, following such
repayment, the unpaid principal amount of such Security would be less than the
minimum authorized denomination of Securities of the series of which such
Security to be repaid is a part.  Except
as otherwise may be provided by the terms of any Security providing for
repayment at the option of the Holder thereof, exercise of the repayment option
by the Holder shall be irrevocable unless waived by the Company.

 

SECTION 13.04  When Securities Presented for Repayment
Become Due and Payable.

 

If Securities of any series providing for repayment at
the option of the Holders thereof shall have been surrendered as provided in
this Article and as provided by or pursuant to the terms of such Securities,
such Securities or the portions thereof, as the case may be, to be repaid shall
become due and payable and shall be paid by the Company on the Repayment Date
therein specified, and on and after such Repayment Date (unless the Company
shall default in the payment of such Securities on such Repayment Date) such
Securities shall, if the same were interest-bearing, cease to bear interest and
the coupons for such interest appertaining to any

 

109

 

Bearer Securities
so to be repaid, except to the extent provided below, shall be void.  Upon surrender of any such Security for
repayment in accordance with such provisions, together with all coupons, if
any, appertaining thereto maturing after the Repayment Date, the Repayment
Price of such Security so to be repaid shall be paid by the Company, together
with accrued interest, if any, to the Repayment Date; provided, however,
that coupons whose Stated Maturity is on or prior to the Repayment Date shall
be payable only at an office or agency located outside the United States
(except as otherwise provided in Section 10.02) and, unless otherwise specified
pursuant to Section 3.01, only upon presentation and surrender of such coupons;
and provided  further that, in the case of Registered Securities,
installments of interest, if any, whose Stated Maturity is on or prior to the
Repayment Date shall be payable (but without interest thereon, unless the
Company shall default in the payment thereof) to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 3.07.

 

If any Bearer Security surrendered for repayment shall
not be accompanied by all appurtenant coupons maturing after the Repayment
Date, such Security may be paid after deducting from the amount payable
therefor as provided in Section 13.02 an amount equal to the face amount of all
such missing coupons, or the surrender of such missing coupon or coupons may be
waived by the Company and the Trustee if there be furnished to them such
security or indemnity as they may require to save each of them and any Paying
Agent harmless.  If thereafter the
Holder of such Security shall surrender to the Trustee or any Paying Agent any
such missing coupon in respect of which a deduction shall have been made as
provided in the preceding sentence, such Holder shall be entitled to receive
the amount so deducted; provided, however, that interest
represented by coupons shall be payable only at an office or agency located
outside the United States (except as otherwise provided in Section 10.02) and,
unless otherwise specified as contemplated by Section 3.01, only upon
presentation and surrender of those coupons.

 

If any Security surrendered for repayment shall not be
so repaid upon surrender thereof, the Repayment Price shall, until paid, bear
interest from the Repayment Date at the rate of interest set forth in such
Security or, in the case of an Original Issue Discount Security, at the Yield
to Maturity of such Security.

 

SECTION 13.05  Securities Repaid in Part.

 

Upon surrender of any Registered Security which is to
be repaid in part only, the Company shall execute and the Trustee shall
authenticate and deliver to the Holder of such Security, without service charge
and at the expense of the Company, a new Registered Security or Securities of
the same series, of any authorized denomination specified by the Holder, in an
aggregate principal amount equal to and in exchange for the portion of the
principal of such Security so surrendered which is not to be repaid.

 

110

 

ARTICLE FOURTEEN

 

DEFEASANCE AND COVENANT DEFEASANCE

 

SECTION 14.01  Applicability of Article; Company’s Option
to Effect Defeasance or Covenant Defeasance.

 

Unless otherwise provided for pursuant to Section 3.01
(a) defeasance of the Securities of any series under Section 14.02 and (b)
covenant defeasance of the Securities of any series under Section 14.03,
together with the other provisions of this Article (with such modifications
thereto as may be specified pursuant to Section 3.01 with respect to any
Securities), shall be applicable to such Securities and any coupons
appertaining thereto, and the Company may at its option by Board Resolution, at
any time, with respect to such Securities and any coupons appertaining thereto,
elect to have Section 14.02 (if applicable) or Section 14.03 (if applicable) be
applied to such Outstanding Securities and any coupons appertaining thereto
upon compliance with the conditions set forth below in this Article.

 

SECTION 14.02  Defeasance and Discharge.

 

Upon the Company’s exercise of the above option
applicable to this Section with respect to any series of Outstanding
Securities, the Company shall be deemed to have been discharged from its
obligations with respect to all Outstanding Securities of such series and any
coupons appertaining thereto on the date the conditions set forth in Section
14.04 are satisfied (hereinafter, “defeasance”).  For this purpose, such defeasance means that the Company shall be
deemed to have paid and discharged the entire indebtedness represented by such
Outstanding Securities and any coupons appertaining thereto, which shall
thereafter be deemed to be “Outstanding” only for the purposes of Section 14.05
and the other Sections of this Indenture referred to below in clauses (A) and
(B) of this Section, and to have satisfied all its other obligations with
respect to such series and any coupons appertaining thereto and this Indenture
insofar as such series and any coupons appertaining thereto are concerned (and
the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following which shall survive until
otherwise terminated or discharged hereunder: 
(A) the rights of Holders of such Outstanding series and any coupons appertaining
thereto to receive, solely from the trust fund described in Section 14.04 and
as more fully set forth in such Section, payments in respect of the principal
of, premium, if any, and interest, if any, on, such Securities and any coupons
appertaining thereto when such payments are due, (B) the Company’s obligations
with respect to such series under Sections 3.04, 3.05, 3.07, 10.02 and 10.03
and with respect to the payment of Additional Amounts, if any, on such series
as contemplated by Section 10.04, (C) the rights, powers, trusts, duties and
immunities of the Trustee hereunder and (D) this Article Fourteen.  Subject to compliance with this Article
Fourteen, the Company may exercise its option under this Section
notwithstanding the prior exercise of its option under Section 14.03 with respect
to such Securities and any coupons appertaining thereto.

 

111

 

SECTION 14.03  Covenant Defeasance.

 

Upon the Company’s exercise of the above option
applicable to this Section with respect to any Outstanding series of
Securities, the Company shall be released from its obligations under Sections
7.03, 8.01(3), 8.01(4), 10.08 through 10.19 and 10.20(c), and, if specified
pursuant to Section 3.01, its obligations under any other covenant, with
respect to such Outstanding series and any coupons appertaining thereto on and
after the date the conditions set forth in Section 14.04 are satisfied
(hereinafter, “covenant defeasance”), and such series and any coupons
appertaining thereto shall thereafter be deemed to be not “Outstanding” for the
purposes of any direction, waiver, consent or declaration or Act of Holders
(and the consequences of any thereof) in connection with Sections 7.03,
8.01(3), 8.01(4), 10.08 through 10.19 and 10.20(c), or such other covenant, 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 series and any
coupons appertaining thereto, the Company may omit to comply with and shall
have no liability in respect of any term, condition or limitation set forth in
any such 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 a Default or an Event of Default under paragraph
5.01(c) (with respect to Sections 7.03, 10.08 through 10.19 and 10.20(c)),
paragraph (d), paragraph (f) and paragraph (l) (with respect to Sections
8.01(3) and 8.01(4)), but, except as specified above, the remainder of this
Indenture and such Securities and any coupons appertaining thereto shall be unaffected
thereby.

 

SECTION 14.04  Conditions to Defeasance or Covenant
Defeasance.

 

The following shall be the conditions to application
of Section 14.02 or Section 14.03 to any Outstanding series of Securities and
any coupons appertaining thereto:

 

(a)           The Company shall
irrevocably have deposited or caused to be deposited with the Trustee (or
another trustee satisfying the requirements of Section 6.07 who shall agree to
comply with the provisions of this Article Fourteen applicable to it) as trust
funds in trust for the purpose of making the following payments, specifically
pledged as security for, and dedicated solely to, the benefit of the Holders of
such Securities and any coupons appertaining thereto, (1) an amount of cash (in
such Currency in which such Securities and any coupons appertaining thereto are
then specified as payable at Stated Maturity), or (2) Government Obligations
applicable to such Securities and coupons appertaining thereto (determined on
the basis of the Currency in which such Securities and coupons appertaining
thereto are then specified as payable at Stated Maturity) which through the
scheduled payment of principal and interest in respect thereof in accordance
with their terms will provide, not later than one day before the due date of any
payment of principal of, and premium, if any,

 

112

 

and interest,
if any, on, such Securities and any coupons appertaining thereto, money in an
amount, or (3) a combination thereof in each such case in an amount sufficient,
in the opinion of a United States 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, (i) the principal of,
premium, if any, and interest, if any, on, such Outstanding Securities and any
coupons appertaining thereto on the Stated Maturity of such principal or
installment of principal or interest and (ii) any mandatory sinking fund
payments or analogous payments applicable to such Outstanding Securities and
any coupons appertaining thereto on the day on which such payments are due and
payable in accordance with the terms of this Indenture and of such Securities
and any coupons appertaining thereto.

 

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

 

(c)           No Default or Event
of Default with respect to such Securities and any coupons appertaining thereto
shall have occurred and be continuing on the date of such deposit or, insofar
as Sections 5.01(g) and 5.01(h) are concerned, 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).

 

(d)           In the case of an
election under Section 14.02, the Company shall have delivered to the Trustee
an Opinion of Counsel from United States counsel stating that (i) the Company
has received from, or there has been published by, the Internal Revenue Service
a ruling, or (ii) since the date hereof, there has been a change in the
applicable United States federal income tax law, in either case to the effect
that, and based thereon such opinion shall confirm that, the Holders of such
Outstanding series of Securities and any coupons appertaining thereto will not
recognize income, gain or loss for federal income tax purposes as a result of
such defeasance and will be subject to federal income tax on the same amounts,
in the same manner and at the same times as would have been the case if such
defeasance had not occurred.

 

(e)           In the case of an
election under Section 14.03, the Company shall have delivered to the Trustee
an Opinion of Counsel to the effect that the Holders of such Outstanding series
of Securities and any coupons appertaining thereto will not recognize income,
gain or loss for United States 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.

 

(f)            The Company shall
have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent to the defeasance under
Section 14.02 or the covenant defeasance under Section 14.03 (as the case may
be) have been complied with.

 

(g)           The Company shall
have delivered to the Trustee an Opinion of Counsel from Bermuda counsel to the
effect that Holders of such Outstanding series of Securities subject to
defeasance will not recognize income, gain or loss for Bermuda tax purposes as
a result of such defeasance or covenant defeasance, and will be subject to
Bermuda taxes 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.

 

113

 

(h)           The Company shall
have delivered to the Trustee an Opinion of Counsel to the effect that after
the 91st day following the deposit, the trust funds established pursuant to
this Article Fourteen will not be subject to the effect of any applicable
United States bankruptcy, insolvency, reorganization or similar laws affecting
creditors’ rights generally (for the limited purpose of the Opinion of Counsel
referred to in this paragraph, such opinion may contain an assumption that the
conclusions contained in a customary solvency letter by a nationally recognized
appraisal firm, dated as of the date of the deposit and taking into account
such deposit, are accurate as of such date, provided that such solvency
letter is also addressed and delivered to the Trustee).

 

(i)            Notwithstanding any
other provisions of this Section, 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 3.01.

 

SECTION 14.05  Deposited Money and Government Obligations
to Be Held in Trust; Other Miscellaneous Provisions.

 

Subject to the provisions of the last paragraph of
Section 10.03, all money and Government Obligations (or other property as may
be provided pursuant to Section 3.01) (including the proceeds thereof)
deposited with the Trustee (or other qualifying trustee, collectively for
purposes of this Section 14.05, the “Trustee”) pursuant to Section 14.04(a) in
respect of any Outstanding Securities of any series and any coupons
appertaining thereto shall be held in trust and applied by the Trustee, in
accordance with the provisions of such Securities and any coupons appertaining
thereto and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Holders of such Securities and any coupons
appertaining thereto of all sums due and to become due thereon in respect of
principal, premium, if any, and interest, if any, but such money need not be
segregated from other funds except to the extent required by law.

 

Unless otherwise specified with respect to any series
of Security pursuant to Section 3.01, if, after a deposit referred to in
Section 14.04(a) has been made, (a) the Holder of a Security in respect of
which such deposit was made is entitled to, and does, elect pursuant to Section
3.12(b) or the terms of such series to receive payment in a Currency other than
that in which the deposit pursuant to Section 14.04(a) has been made in respect
of such series, or (b) a Conversion Event occurs as contemplated in Section
3.12(d) or 3.12(e) or by the terms of any Security in respect of which the
deposit pursuant to Section 14.04(a) has been made, the indebtedness
represented by such Security and any coupons appertaining thereto shall be
deemed to have been, and will be, fully discharged and satisfied through the
payment of the principal of , premium, if any, and interest, if any, on, such
series of 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 the applicable Market Exchange Rate for
such Currency in effect on the second Business Day prior to each payment date,
except, with respect to a Conversion Event, for such Currency in effect (as
nearly as feasible) at the time of the Conversion Event.

 

114

 

The Company shall pay and indemnify the Trustee against
any tax, fee or other charge imposed on or assessed against the Government
Obligations deposited pursuant to Section 14.04(a) or the principal and
interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of such Outstanding
Securities and any coupons appertaining thereto.

 

Anything in this Article Fourteen 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 Section 14.04
which, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the
Trustee (which may be the opinion delivered under Section 14.04(a)), 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 Article.

 

SECTION 14.06  Reinstatement.

 

If the Trustee or Paying Agent is unable to apply any
money in accordance with Section 14.02 or Section 14.03 by reason of any order
or judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, then the Company’s obligation under
this Indenture and the Securities shall be revived and reinstated as though no
deposit had occurred pursuant to Section 14.02 or Section 14.03 as the case may
be, until such time as the Trustee or Paying Agent is permitted to apply all
such money in accordance with Section 14.02 or Section 14.03, as the case may
be; provided, however, that, if the Company makes any payment of principal of,
or premium, if any, or interest on, 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 such Trustee
or Paying Agent.

 

ARTICLE FIFTEEN

 

MEETINGS OF HOLDERS OF SECURITIES

 

SECTION 15.01  Purposes for Which Meetings May Be Called.

 

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

 

SECTION 15.02  Call, Notice and Place of Meetings.

 

(a)           The Trustee may at
any time call a meeting of Holders of Securities of any series for any purpose
specified in Section 15.01, to be held at such time and at such place in the
Borough of Manhattan, The City of New York or in London as the Trustee

 

115

 

shall determine.  Notice of every meeting of Holders of
Securities of any series, setting forth the time and the place of such meeting
and in general terms the action proposed to be taken at such meeting, shall be
given, in the manner provided in Section 1.07, not less than 21 nor more than
180 days prior to the date fixed for the meeting.

 

(b)           In case at any time
the Company, pursuant to a Board Resolution, or the Holders of at least 10% in
principal amount of the Outstanding Securities of any series shall have requested
the Trustee to call a meeting of the Holders of Securities of such series for
any purpose specified in Section 15.01, by written request setting forth in
reasonable detail the action proposed to be taken at the meeting, and the
Trustee shall not have made the first publication of the notice of such meeting
within 21 days after receipt of such request or shall not thereafter proceed to
cause the meeting to be held as provided herein, then the Company or the
Holders of Securities of such series in the amount above specified, as the case
may be, may determine the time and the place in the Borough of Manhattan, The
City of New York or in London for such meeting and may call such meeting for
such purposes by giving notice thereof as provided in subsection (a) of this
Section.

 

SECTION 15.03  Persons Entitled to Vote at Meetings.

 

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

 

SECTION 15.04  Quorum; Action.

 

The Persons entitled to vote a majority in principal
amount of the Outstanding Securities of a series shall constitute a quorum for
a meeting of Holders of Securities of such series; provided, however,
that if any action is to be taken at such meeting with respect to a consent or
waiver which this Indenture expressly provides may be given by the Holders of
not less than a specified percentage in principal amount of the Outstanding
Securities of a series, the Persons entitled to vote such specified percentage
in principal amount of the Outstanding Securities of such series shall
constitute a quorum.  In the absence of
a quorum within 30 minutes of the time appointed for any such meeting, the
meeting shall, if convened at the request of Holders of Securities of such
series, be dissolved.  In any other case
the meeting may be adjourned for a period of not less than 10 days as
determined by the chairman of the meeting prior to the adjournment of such
meeting.  In the absence of a quorum at
any such adjourned meeting, such adjourned meeting may be further adjourned for
a period of not less than 10 days as determined by the chairman of the meeting
prior to the adjournment of such adjourned meeting.  Notice of the reconvening of any

 

116

 

adjourned meeting
shall be given as provided in Section 15.02(a), except that such notice need be
given only once not less than five days prior to the date on which the meeting
is scheduled to be reconvened.  Notice
of the reconvening of any adjourned meeting shall state expressly the
percentage, as provided above, of the principal amount of the Outstanding
Securities of such series which shall constitute a quorum.

 

Except as limited by the proviso to Section 9.02, any
resolution presented to a meeting or adjourned meeting duly reconvened at which
a quorum is present as aforesaid may be adopted by the affirmative vote of the
Holders of a majority in principal amount of the Outstanding Securities of that
series; provided, however, that, except as limited by the proviso
to Section 9.02, any resolution with respect to any request, demand,
authorization, direction, notice, consent, waiver or other action which this
Indenture expressly provides may be made, given or taken by the Holders of a
specified percentage which is less than a majority in principal amount of the
Outstanding Securities of a series may be adopted at a meeting or an adjourned
meeting duly reconvened and at which a quorum is present as aforesaid by the
affirmative vote of the Holders of such specified percentage in principal
amount of the Outstanding Securities of that series.

 

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

 

Notwithstanding the foregoing provisions of this
Section 15.04, if any action is to be taken at a meeting of Holders of
Securities of any series with respect to any request, demand, authorization,
direction, notice, consent, waiver or other action that this Indenture
expressly provides may be made, given or taken by the Holders of a specified
percentage in principal amount of all Outstanding Securities affected thereby,
or of the Holders of such series and one or more additional series:

 

(i)            there shall be no
minimum quorum requirement for such meeting; and

 

(ii)           the principal
amount of the Outstanding Securities of such series that vote in favor of such
request, demand, authorization, direction, notice, consent, waiver or other
action shall be taken into account in determining whether such request, demand,
authorization, direction, notice, consent, waiver or other action has been
made, given or taken under this Indenture.

 

SECTION 15.05  Determination of Voting Rights; Conduct and
Adjournment of Meetings.

 

(a)           Notwithstanding any
provisions of this Indenture, the Trustee may make such reasonable regulations
as it may deem advisable for any meeting of Holders of Securities of a series
in regard to proof of the holding of Securities of such series and of the
appointment of proxies and in regard to the appointment and duties of
inspectors of votes, the submission and examination of proxies, certificates
and other evidence of the right to vote, and such other matters concerning the
conduct of the meeting as it shall deem appropriate.  Except as otherwise permitted or required by any such
regulations, the holding of Securities shall be proved in the manner specified
in Section 1.05(d) and the appointment of any proxy shall be proved in the
manner specified in Section 1.05(a) or

 

117

 

by having the
signature of the Person executing the proxy witnessed or guaranteed by any trust
company, bank or banker authorized by Section 1.05 to certify to the holding of
Bearer Securities.  Such regulations may
provide that written instruments appointing proxies, regular on their face, may
be presumed valid and genuine without the proof specified in Section 1.05 or
other proof.

 

(b)           The Trustee shall,
by an instrument in writing appoint a temporary chairman of the meeting, unless
the meeting shall have been called by the Company or by Holders of Securities
as provided in Section 15.02(b), in which case the Company or the Holders of
Securities of the series calling the meeting, as the case may be, shall in like
manner appoint a temporary chairman.  A
permanent chairman and a permanent secretary of the meeting shall be elected by
vote of the Persons entitled to vote a majority in principal amount of the
Outstanding Securities of such series represented at the meeting.

 

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

 

(d)           Any meeting of
Holders of Securities of any series duly called pursuant to Section 15.02 at
which a quorum is present pursuant to Section 15.04 may be adjourned from time
to time by Persons entitled to vote a majority in principal amount of the
Outstanding Securities of such series represented at the meeting, and the
meeting may be held as so adjourned without further notice.

 

SECTION 15.06  Counting Votes and Recording Action of
Meetings.

 

The vote upon any resolution submitted to any meeting
of Holders of Securities of any series shall be by written ballots on which
shall be subscribed the signatures of the Holders of Securities of such series
or of their representatives by proxy and the principal amounts and serial
numbers of the Outstanding Securities of such series held or represented by
them.  The permanent chairman of the
meeting shall appoint two inspectors of votes who shall count all votes cast at
the meeting for or against any resolution and who shall make and file with the
secretary of the meeting their verified written reports in duplicate of all
votes cast at the meeting.  A record, at
least in duplicate, of the proceedings of each meeting of Holders of Securities
of any series shall be prepared by the secretary of the meeting and there shall
be attached to said record the original reports of the inspectors of votes on
any vote by ballot taken thereat and affidavits by one or more persons having
knowledge of the fact, setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 15.02 and, if
applicable, Section 15.04.  Each copy
shall be signed and verified by the affidavits of the permanent chairman and
secretary of the meeting and one such copy shall be delivered to the Company
and another to the Trustee to be preserved by the Trustee, the latter to have
attached thereto the ballots voted at the meeting.  Any record so signed and verified shall be conclusive evidence of
the matters therein stated.

 

118

 

*  * 
*  *  *

 

This Indenture may be signed in any number of
counterparts with the same effect as if the signatures to each counterpart were
upon a single instrument, and all such counterparts together shall be deemed an
original of this Indenture.

 

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

 

 

	
  ATTEST

  	
  SEA CONTAINERS LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert M. Riggs

  
	
   

  	
   

  	
  Name: Robert M. Riggs

  
	
   

  	
   

  	
  Title: Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK,
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patricia Gallagher

  
	
   

  	
   

  	
  Name: Patricia
  Gallagher

  
	
   

  	
   

  	
  Title: Vice President

  

 

119

 

EXHIBIT A

 

FORM OF CERTIFICATE TO BE GIVEN BY PERSON ENTITLED

TO RECEIVE A BEARER SECURITY OR TO OBTAIN INTEREST

PAYABLE PRIOR TO THE EXCHANGE DATE

 

CERTIFICATE

 

[Insert title or
sufficient description of Securities to be delivered]

 

This is to certify that, as of the date hereof, and
except as set forth below, the above-captioned Securities held by you for our
account (i) are owned by person(s) that are not citizens or residents of the
United States, domestic partnerships, domestic corporations or any estate or
trust the income of which is subject to United States federal income taxation
regardless of its source (“United States person(s)”), (ii) are owned by United
States person(s) that are (a) foreign branches of United States financial
institutions (financial institutions, as defined in United States Treasury
Regulations Section 1.165-12(c)(1)(v) are herein referred to as “financial
institutions”) purchasing for their own account or for resale, or (b) United
States person(s) who acquired the Securities through foreign branches of United
States financial institutions and who hold the Securities through such foreign
branches of United States financial institutions on the date hereof (and in
either case (a) or (b), each such United States financial institution hereby
agrees, on its own behalf or through its agent, that you may advise Sea
Containers Ltd. or its agent that such financial institution will comply with
the requirements of Section 165(j)(3)(A), (B) or (C) of the United States
Internal Revenue Code of 1986, as amended, and the regulations thereunder), or
(iii) are owned by United States or foreign financial institution(s) for
purposes of resale during the restricted period (as defined in United States
Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)), and, in addition, if the
owner is a United States or foreign financial institution described in clause
(iii) above (whether or not also described in clause (i) or (ii)), this is to
further certify that such financial institution has not acquired the Securities
for purposes of resale directly or indirectly to a United States person or to a
person within the United States or its possessions.

 

As used herein, “United States” means the
United States of America (including the States and the District of Columbia);
and its “possessions” include Puerto Rico, the U.S. Virgin Islands, Guam,
American Samoa, Wake Island and the Northern Mariana Islands.

 

We undertake to advise you promptly by tested telex on
or prior to the date on which you intend to submit your certification relating
to the above-captioned Securities held by you for our account in accordance
with your operating procedures if any applicable statement herein is not
correct on such date, and in the absence of any such notification it may be
assumed that this certification applies as of such date.

 

This certificate excepts and does not relate to
[U.S.$]  of such interest in the
above-captioned Securities in respect of which we are not able to certify and
as to which we understand an exchange for an interest in a Permanent Global
Security or an exchange for and

 

A-1

 

delivery of
definitive Securities (or, if relevant, collection of any interest) cannot be
made until we do so certify.

 

We understand that this certificate may be required in
connection with certain tax legislation in the United States.  If administrative or legal proceedings are
commenced or threatened in connection with which this certificate is or would
be relevant, we irrevocably authorize you to produce this certificate or a copy
thereof to any interested party in such proceedings.

 

	
  Dated:                        ,
  20       

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [To be dated no earlier than the 15th day prior to
  (i) the Exchange Date or (ii) the relevant Interest Payment Date occurring
  prior to the Exchange Date, as applicable]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Name of Person Making
  Certification]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Authorized Signatory)

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]