Document:

exv4w27

Exhibit
4.27

NINETEENTH SUPPLEMENTAL INDENTURE

     NINETEENTH SUPPLEMENTAL INDENTURE, dated as of December 2, 2008 (the “Nineteenth Supplemental
Indenture”) among ALLIED WASTE NORTH AMERICA, INC., a Delaware corporation (the “Company”), having
its principal place of business at 18500 North Allied Way, Phoenix, Arizona 85054, ALLIED WASTE
INDUSTRIES, INC., a corporation duly organized and existing under the laws of the State of Delaware
(“Allied” or the “Parent Guarantor”), each of the other guarantors signatory hereto (collectively
with the Parent Guarantor, the “Guarantors”) and U.S. Bank National Association, a national banking
association, as trustee (the “Trustee”).

WITNESSETH:

     WHEREAS, the Company, Allied, the subsidiary guarantors party thereto and the Trustee executed
and delivered an Indenture, dated as of December 23, 1998 (the “Indenture”), to provide for the
issuance by the Company from time to time of debt securities evidencing its indebtedness (the
“Securities”);

     WHEREAS, pursuant to resolutions adopted by the Board of Directors of the Company, the Company
issued (i) $450,000,000 aggregate principal amount of its 7-7/8% Senior Notes due 2013 pursuant to
a Tenth Supplemental Indenture, dated as of April 9, 2003 (the “2013 Notes”), (ii) $350,000,000
aggregate principal amount of its 6.5% Senior Notes due 2010 pursuant to a Eleventh Supplemental
Indenture, dated as of November 10, 2003 (the “2010 Notes”), (iii) $400,000,000 aggregate principal
amount of its 5-3/4% Senior Notes due 2011 pursuant to a Twelfth Supplemental Indenture, dated as
of January 27, 2004 (the “First 2011 Notes”), (iv) $425,000,000 aggregate principal amount of its
6-1/8% Senior Notes due 2014 pursuant to a Thirteenth Supplemental Indenture, dated as of January
27, 2004 (the “First 2014 Notes”), (v) $400,000,000 aggregate principal amount of its 7-3/8% Senior
Unsecured Notes due 2014 pursuant to a Fourteenth Supplemental Indenture, dated as of April 20,
2004 (the “Second 2014 Notes”), (vi) $275,000,000 aggregate principal amount of its 6-3/8% Senior
Notes due 2011 pursuant to a Fifteenth Supplemental Indenture, dated as of April 20, 2004 (the
“Second 2011 Notes”), (vii) $600,000,000 aggregate principal amount of its 7-1/4% Senior Notes due
2015 pursuant to a Sixteenth Supplemental Indenture, dated as of March 9, 2005 (the “2015 Notes”),
(viii) $600,000,000 aggregate principal amount of its 7-1/8% Senior Notes due 2016 pursuant to a
Seventeenth Supplemental Indenture, dated as of May 17, 2006 (the “2016 Notes”) and (ix)
$750,000,000 aggregate principal amount of its 6-7/8% Senior Notes due 2017 pursuant to an
Eighteenth Supplemental Indenture, dated as of March 12, 2007 (the “2017 Notes” and, together with
the 2013 Notes, the 2010 Notes, the First 2011 Notes, the First 2014 Notes, the Second 2014 Notes,
the Second 2011 Notes, the 2015 Notes, and the 2016 Notes, the “Notes”) (the Indenture, as
supplemented by the related supplemental indenture for the applicable series of Notes, the
“Indenture Series”);

     WHEREAS, subsequent to the issuance of the Securities, the Company has acquired certain other
Restricted Subsidiaries identified on Schedule I hereto, which are required to
guarantee the Company’s obligations under the Securities and the Indenture Series in
accordance with the terms of the Securities and the Indenture Series;

 

 

     WHEREAS, each of the Restricted Subsidiaries identified on Schedule I hereto (the “Subsidiary
Guarantors”) has duly authorized the execution and delivery of this Nineteenth Supplemental
Indenture to provide for the Subsidiary Guarantees (as defined in the Indenture);

     WHEREAS, pursuant to resolutions adopted by the board of directors, partners or members, as
the case may be, of each of the Subsidiary Guarantors, each of the Subsidiary Guarantors has duly
authorized the guarantee of the Company’s obligations under the Securities and the Indenture
Series;

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

ARTICLE I

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

     SECTION 1.01 DEFINITIONS.

     All capitalized terms used herein without definition shall have the meanings ascribed thereto
in the Indenture.

     SECTION 1.02 PROVISIONS OF GENERAL APPLICATION.

     All rules of construction and other provisions of general application set forth in Article 1
of the Indenture are hereby incorporated herein by reference.

     SECTION 1.03 EFFECTIVENESS.

     This Nineteenth Supplemental Indenture shall become effective upon the signature of each and
all of the parties hereto without any further action.

ARTICLE II

GUARANTEE

     SECTION 2.01 SENIOR GUARANTEE.

     Each of the Subsidiary Guarantors hereby jointly and severally unconditionally guarantees for
the benefit of each Holder of a Security that has been authenticated and delivered by the Trustee,
and for the benefit of the Trustee on behalf of each such Holder, the due and punctual payment of
the principal of, premium, if any, and interest on such Security when and as the same shall become
due and payable, whether at its Stated Maturity or following acceleration, call for redemption,
purchase or otherwise, in each case in accordance with the terms and

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conditions of such Security, this Nineteenth Supplemental Indenture and the Indenture Series.
Each of the Subsidiary Guarantors shall be from the effective date of this Nineteenth Supplemental
Indenture a “Subsidiary Guarantor” within the meaning and for all purposes of the Indenture. In
addition, Allied hereby guarantees to the extent set forth the form of Senior Guarantee set forth
in Section 2.3 of the Indenture, the obligations of each Subsidiary Guarantor hereunder.

ARTICLE III

CONCERNING THE TRUSTEE

     SECTION 3.01 ACCEPTANCE OF TRUSTS.

     The Trustee accepts the trusts hereunder and agrees to perform the same, but only upon the
terms and conditions set forth in the Indenture Series and in this Nineteenth Supplemental
Indenture, to all of which the Company and the Guarantors agree and the Holders of Securities at
any time outstanding by their acceptance thereof agree.

     SECTION 3.02 NO RESPONSIBILITY OF THE TRUSTEE FOR RECITALS, ETC.

     The recitals and statements contained in this Nineteenth Supplemental Indenture shall be taken
as the recitals and statements of the Company and the Guarantors, and the Trustee assumes no
responsibility for the correctness of the same. The Trustee makes no representations as to the
validity or sufficiency of this Nineteenth Supplemental Indenture.

ARTICLE IV

MISCELLANEOUS PROVISIONS

     SECTION 4.01 BINDING AGREEMENT; ASSIGNMENTS.

     Whenever in this Nineteenth Supplemental Indenture any of the parties hereto is referred to,
such reference shall be deemed to include the successors and assigns of such party; and all
covenants, promises and agreements by or on behalf of each Guarantor that are contained in this
Nineteenth Supplemental Indenture shall bind and inure to the benefit of each party hereto and
their respective successors and assigns.

     SECTION 4.02 RELATION TO INDENTURE.

     The provisions of this Nineteenth Supplemental Indenture shall become effective immediately
upon the execution and delivery hereof. This Nineteenth Supplemental Indenture and all the terms
and provisions herein contained shall form a part of the Indenture as fully and with the same
effect as if all such terms and provisions had been set forth in the Indenture and each and every
term and condition contained in the Indenture shall apply to this Nineteenth Supplemental Indenture
with the same force and effect as if the same were set forth in full in this Nineteenth
Supplemental Indenture, with such omissions, variations and modifications thereof as may be
appropriate to make each such term and condition consistent with this Nineteenth Supplemental
Indenture. The Indenture is hereby ratified and confirmed and shall remain and continue in full
force and effect in accordance with the terms and provisions thereof, as supplemented and amended
by this Nineteenth Supplemental Indenture and the Indenture and
this Nineteenth Supplemental Indenture shall be read, taken and construed together as one
instrument.

     SECTION 4.03 COUNTERPARTS.

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

* * * *

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

	 	 	 	 	 
	 	ALLIED WASTE NORTH AMERICA, INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	Michael S. Burnett 	 
	 	 	Title:  Treasurer and Vice President 	 
	 
	 	ALLIED WASTE INDUSTRIES, INC.

as Guarantor of the Securities and as Guarantor of the
obligations of the Subsidiary Guarantors under the Subsidiary
Guarantees

 	 
	 	By:  	
 	 
	 	 	Name:  	Michael S. Burnett 	 
	 	 	Title:  Treasurer and Senior Vice President 	 
	 
	 	Each of the Subsidiary Guarantors Listed on Schedule I

hereto, as Guarantors of the Securities

 	 
	 	By:  	
 	 
	 	 	Name:  	Michael S. Burnett 	 
	 	 	Title:  Treasurer 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as Trustee

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

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SCHEDULE I

GUARANTORS

	 	 	 
	NAME OF SUBSIDIARY GUARANTOR

	 	STATE OF ORGANIZATION
	Allied Waste Services of Colorado, Inc.

	 	Delaware
	East Chicago Compost Facility, Inc.

	 	Delaware
	Kandel Enterprises, LLC

	 	Delaware

5exv4w31

Exhibit 4.31

 

 

 

 

 

 

 

ALLIED WASTE INDUSTRIES, INC.

AND

U.S. BANK NATIONAL ASSOCIATION

as Trustee

 

FIRST SUPPLEMENTAL INDENTURE

Dated as of December 5, 2008

to

INDENTURE

Dated as of April 20, 2004

 

4 1/4 % Senior Subordinated Convertible Debentures due 2034

 

 

 

 

 

 

     FIRST SUPPLEMENTAL INDENTURE, dated as of December 5, 2008 (the “First Supplemental
Indenture”), between ALLIED WASTE INDUSTRIES, INC., a Delaware corporation (hereinafter called the
“Company”), REPUBLIC SERVICES, INC., a Delaware corporation (hereinafter called “Republic”) and
U.S. BANK NATIONAL ASSOCIATION, as Trustee (hereinafter called the “Trustee”).

RECITALS

     WHEREAS, the Company executed and delivered to the Trustee that certain Indenture, dated as of
April 20, 2004 (the “Indenture”), pursuant to which the 4 1/4% Senior Subordinated Convertible
Debentures of the Company (the “Debentures”) were issued;

     WHEREAS, pursuant to the terms of the Indenture, the Debentures were initially convertible
into shares of common stock, par value $0.01 per share, of the Company (“Common Stock”);

     WHEREAS, pursuant to an Agreement and Plan of Merger dated as of June 22, 2008, as amended
(the “Merger Agreement”), among the Company, Republic Services, Inc., a Delaware corporation
(“Republic”) and RS Merger Wedge, Inc., a Delaware corporation and a wholly owned subsidiary of
Republic (“Merger Sub”), Merger Sub merged with and into the Company (the “Merger”), with the
Company as the surviving corporation, as a result of which each issued and outstanding share of
Common Stock (other than shares of Common Stock held by the Company, Republic or their respective
subsidiaries) were converted into the right to receive shares of common stock, par value $0.01 per
share, of Republic (“Republic Stock”);

     WHEREAS, in connection with the Merger, the Company has duly determined to make, execute and
deliver to the Trustee this First Supplemental Indenture in order to reflect the results of the
Merger as required by the Indenture;

     WHEREAS, Section 15.05(b) of the Indenture requires that, as a result of the Merger, the
Debentures become convertible into the consideration issued in the Merger to the holders of Common
Stock;

     WHEREAS, Section 11.01 of the Indenture provides that under certain conditions, the Company
and the Trustee, without the consent of the holders of Debentures, from time to time and at any
time, may enter into an indenture supplemental to the Indenture, to make provision with respect to
the conversion rights of the holders of Debentures pursuant to the requirements of Section 15.05(b)
of the Indenture and, so long as such action will not adversely affect the interests of holders of
Debentures, to cure any ambiguity or correct any error in the Indenture.

     NOW, THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH:

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     For and in consideration of the premises, it is mutually agreed, for the equal and
proportionate benefit of the respective holders from time to time of the Debentures, as follows:

ARTICLE ONE

DEFINITIONS

     Section1.1. Indenture Terms.

     Except as set forth in Section 1.2, capitalized terms used but not defined in this First
Supplemental Indenture shall have the respective meanings assigned to them in the Indenture.

     Section1.2. Certain Definitions.

     From and after the effective time of this First Supplemental Indenture, the following
definitions contained in Section 1.01 of Article 1 of the Indenture are hereby amended in their
entirety to read as follows:

     “Common Stock” means any stock of any class of the Company which has no preference in respect
of dividends or of amounts payable in the event of a voluntary or involuntary liquidation,
dissolution, or winding up of the Company and which is not subject to redemption by the Company.

     “Conversion Price” as of any day means $1,000 divided by the Conversion Rate as of such date
and rounded to the nearest cent.

     “Conversion Trading Price” means, as of any date of determination, the average of the
secondary market bid quotations per $1,000 principal amount of Debentures obtained by the Bid
Solicitation Agent for $5,000,000 aggregate principal amount of Debentures at approximately 4:00
p.m., New York City time, on such determination date from three independent nationally recognized
securities dealers (none of which shall be an Affiliate of the Company) selected by the Company;
provided, however, if at least three such bids cannot be reasonably obtained by the Bid
Solicitation Agent, but two bids are obtained, then the average of the two bids shall be used, and
if only one such bid can be reasonably obtained by the Bid Solicitation Agent, the one shall be
used. If, however, no bid is obtained by the Bid Solicitation Agent or, in the Company’s
reasonable judgment, the bid quotations are not indicative of the secondary market value of
Debentures as of such determination date, then the Conversion Trading Price per $1,000 principal
amount of the Debentures for such determination date will be deemed to be less than 98% of the
product of (i) the Conversion Rate as of such determination date multiplied by (ii) the Last
Reported Sale Price for the Republic Stock for such determination date.

     “Current Market Price” on any day means (i) the average of the Last Reported Sale Prices per
share of Republic Stock for the five consecutive Trading Days preceding the earlier of the day
preceding the day in question and the day before the “ex date” with respect to the issuance or
distribution requiring the computation of the Current Market

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Price, (ii) in the case of any Spin-Off that is effected simultaneously with an Initial Public
Offering of the securities being distributed in the Spin-Off, the Last Reported Sale Price of the
Republic Stock on the Trading Day on which the initial public offering price of the securities
being distributed in the Spin-Off is determined and (iii) in the case of any other Spin-Off, the
average of the Last Reported Sale Prices of the Republic Stock over the first 10 Trading Days
following the effective date of such Spin-Off. For purposes of this definition, the term “ex
date”, when used with respect to any issuance or distribution described in clause (i) of this
definition, means the first date on which the Republic Stock trades without the right to receive
the issuance or distribution requiring the computation of the Current Market Price.

     “Ex-Dividend Date” means the first date upon which a sale of the Republic Stock does not
automatically transfer the right to receive the relevant distribution from the seller of the
Republic Stock to its buyer.

     “Last Reported Sale Price” of any security (including the Republic Stock or the Common Stock,
as the case may be) on any date means the closing sale price per share (or if no closing sale price
is reported, the average of the bid and asked prices or, if more than one in either case, the
average of the average bid and the average asked prices) on such date as reported in composite
transactions for the principal U.S. securities exchange on which such security is traded. If such
security is not listed for trading on a U.S. national or regional securities exchange on the
relevant date, the “Last Reported Sale Price” will be the last quoted bid price for such security
in the over-the-counter market on the relevant date as reported by the National Quotation Bureau
Incorporated or similar organization. If such security is not so quoted, the “Last Reported Sale
Price” will be the average of the mid-point of the last bid and asked prices for such security on
the relevant date quoted by each of at least three nationally recognized independent investment
banking firms selected by the Company for this purpose.

     “Outstanding”, when used with reference to Debentures and subject to the provisions of Section
9.04, means, as of any particular time, all Debentures authenticated and delivered by the Trustee
under this Indenture, except:

     (a)     Debentures theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

     (b)     Debentures, or portions thereof, (i) for the redemption of which monies in the necessary
amount shall have been deposited in trust with the Trustee or with any Paying Agent (other than the
Company) or (ii) which shall have been otherwise defeased in accordance with Article 13;

     (c)     Debentures in lieu of which, or in substitution for which, other Debentures shall have
been authenticated and delivered pursuant to the terms of Section 2.06; and

     (d)     Debentures converted pursuant to Article 15 and Debentures deemed not outstanding pursuant
to Article 3.

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     “Spin-Off” means a dividend or other distribution on the Republic Stock of shares of capital
stock of any class or series, or similar equity interests, of or relating to any Subsidiary of
Republic or other business unit of Republic.

     “Trading Day” when used in Articles 4 and 15 hereof or in the definition of “Applicable Five
Trading Day Period,” means a day during which trading in securities generally occurs on the New
York Stock Exchange or, if the Republic Stock is not listed on the New York Stock Exchange, on the
principal other U.S. national or regional securities exchange on which the Republic Stock is then
listed or, if the Republic Stock is not listed on a U.S. national or regional securities exchange,
on the principal other market on which the Republic Stock is then traded and, when used elsewhere
in the Indenture, means a day during which trading in securities generally occurs on the principal
market on which the Common Stock is then traded, if any.

     From and after the effective time of this First Supplemental Indenture, the following terms
shall be added as additional definitions in Section 1.01 of Article 1 of the Indenture in
appropriate alphabetical sequence:

     “Board Resolution” means a resolution of the Republic Board, certified by the Secretary or an
Assistant Secretary of Republic and delivered to the Trustee.

     “Republic” means Republic Services, Inc., a Delaware corporation.

     “Republic Board” means the board of directors of Republic or a committee of such board of
directors duly authorized to act for it hereunder.

     “Republic Stock” means any stock of any class of Republic which has no preference in respect
of dividends or of amounts payable in the event of any voluntary or involuntary liquidation,
dissolution or winding up of Republic and which is not subject to redemption by Republic. Subject
to the provisions of Section 15.05(b), however, shares issuable on conversion of Debentures shall
include only shares of the class designated as common stock of Republic at December 5, 2008
(namely, the common stock, par value $0.01 per share) or shares of any class or classes resulting
from any reclassification or reclassifications thereof and which have no preference in respect of
dividends or of amounts payable in the event of any voluntary or involuntary liquidation,
dissolution or winding up of Republic and which are not subject to redemption by Republic provided
that if at any time there shall be more than one such resulting class, the shares of each such
class then so issuable on conversion shall be substantially in the proportion which the total
number of shares of such class resulting from all such reclassifications bears to the total number
of shares of all classes resulting from all such reclassifications.

ARTICLE TWO

CONCERNING THE DEBENTURES

     Section 2.1. Conversion Privilege.

     Each Debenture outstanding after the Merger shall, from and after the effective time of this
First Supplemental Indenture, during the period such Debenture shall be

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convertible as specified in Section 15.01 of the Indenture, be convertible into the number of
shares of Republic Stock, and cash in lieu of fractional shares of Republic Stock, receivable upon
the effectiveness of the Merger by a holder of the number of shares of Common Stock of the Company
issuable upon conversion of such Debenture immediately prior to the Merger, subject to adjustment
as provided in Section 15.05 of the Indenture, as such Section is amended by this First
Supplemental Indenture.

     Section 2.2. Terms of Conversion.

     In furtherance of the obligation to make provision with respect to the conversion rights of
holders of Debentures in connection with a Reorganization Event pursuant to the requirements of
Section 15.05(b), from and after the effective time of this First Supplemental Indenture, Article
15 of the Indenture is amended in its entirety to read as follows:

Article 15

Conversion Of Debentures

     Section 15.01. Right To Convert.

     (a)     Subject to and upon compliance with the provisions of this Indenture, prior to April 15,
2034, the holder of any Debenture shall have the right, at such holder’s option, to convert the
principal amount of the Debenture, or any portion of such principal amount which is an integral
multiple of $1,000, into fully paid and non-assessable shares of Republic Stock (as such shares
shall then be constituted) at the Conversion Rate in effect at such time, by surrender of the
Debenture so to be converted in whole or in part, together with any required funds, under the
circumstances described in this Section 15.01 and in the manner provided in Section 15.02. The
Debentures shall be convertible only during the following periods upon the occurrence of one of the
following events:

	 	(i)	 	during any calendar quarter commencing after the quarter ended June 30, 2004
and before June 30, 2034 if the Last Reported Sale Price for the Republic Stock for at
least 20 Trading Days during the period of 30 consecutive Trading Days ending on the
last Trading Day of the previous calendar quarter is greater than 125% of the
Conversion Price on such last Trading Day;
	 
	 	(ii)	 	in the event that the Company calls any or all of the Debentures for
redemption, at any time prior to the close of business on the second Business Day
immediately preceding the Redemption Date (unless the Company fails to pay the
Redemption Price); provided that only those Debentures that are called for redemption
may be converted following such an event;
	 
	 	(iii)	 	during the five Business Day period after any three consecutive Trading Day
period in which the average Conversion Trading Price per Debenture, as determined
following a request by a holder in accordance with the

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	 	 	 	procedures described below, for such period is less than 98% of the average of the
product of the Conversion Rate and the Last Reported Sale Price of the Republic
Stock for each day during such period; provided that if, on the date of any
conversion pursuant to this Section 15.01(a)(iii) that is on or after April 15,
2029, the Last Reported Sale Price of the Republic Stock is greater than the
Conversion Price, then holders of Debentures surrendered for conversion will
receive, in lieu of Republic Stock based on the Conversion Rate, shares of Republic
Stock with a value equal to the principal amount of the Debentures converted; or

	 	(iv)	 	as provided in Section (b) of this Section 15.01.

     In connection with any conversion pursuant to Section 15.01(a)(iii), the Trustee shall have no
obligation to obtain the bids necessary for the Company to determine the Conversion Trading Price
of the Debentures unless the Company has requested it to do so, and the Company shall have no
obligation to make such request unless a holder of Debentures provides the Company with reasonable
evidence that the Conversion Trading Price per Debenture is less than 98% of the product of the
Last Reported Sale Price of the Republic Stock and the Conversion Rate. At such time, the Company
will instruct the Trustee to obtain the bids (in the manner described in the definition of
Conversion Trading Price) beginning on the next Trading Day and on each successive Trading Day
until the Conversion Trading Price per Debenture is greater than or equal to 98% of the product of
the Last Reported Sale Price of the Republic Stock and the Conversion Rate.

     The Company or its designated agent shall determine on a daily basis during the time period
specified in Section 15.01(a)(i) and 15.01(a)(iii) whether the Debentures shall be convertible as a
result of the occurrence of an event specified in clause (i) or (iii) above and, if the Debentures
shall be so convertible, the Company shall promptly deliver to the Trustee (or other Conversion
Agent appointed by the Company) written notice thereof. Whenever the Debentures shall become
convertible pursuant to this Section 15.01, the Company or, at the Company’s request, the Trustee
in the name and at the expense of the Company, shall notify the holders of the event triggering
such convertibility in the manner provided in Section 17.03, and the Company shall also publicly
announce such information by publication on the Company’s website or through such other public
medium as it may use at such time. Any notice so given shall be conclusively presumed to have been
duly given, whether or not the holder receives such notice.

     The Trustee shall be entitled at its sole discretion to consult with the Company and to
request the assistance of the Company in connection with the Trustee’s duties and obligations
pursuant to Section 15.01(a) hereof, and the Company agrees, if requested by the Trustee, to
cooperate with, and provide assistance to, the Trustee in carrying out its duties under this
Section 15.01; provided, however, that nothing herein shall be construed to relieve the Trustee of
its duties pursuant to Section 15.01(a) hereof.

     (b)     In addition, if:

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               (i) (A) Republic distributes to all holders of Republic Stock rights, warrants, options or
other securities entitling them to subscribe for or purchase, for a period expiring within 45 days
of the date after the date of distribution, shares of Republic Stock, or securities convertible
into shares of Republic Stock, at less than the average of the Last Reported Sale Prices of the
Republic Stock for the five Trading Days immediately preceding the declaration date of the
distribution, or (B) Republic distributes to all holders of Republic Stock assets, evidence of
indebtedness or other property or rights to subscribe for or purchase securities of Republic, which
distribution has a per share value as determined by the Republic Board and set forth in a Board
Resolution exceeding 10% of the average of the Last Reported Sale Prices of the Republic Stock for
the five Trading Days immediately preceding the declaration date for such distribution, then, in
either case, the Debentures may be surrendered for conversion at any time on and after the date
that the Company gives notice to the holders of such distribution, which shall be not less than 20
Business Days prior to the Ex-Dividend Date for such distribution, until the earlier of the close
of business on the Business Day immediately preceding, but not including, the Ex-Dividend Date or
the date the Company publicly announces that such distribution will not take place; provided that
no holder may exercise this right to convert if the holder will otherwise participate in such
distribution without conversion;

               (ii)     Republic consolidates with or merges with or into another Person or is a party to a
binding share exchange, in each case pursuant to which the Republic Stock is converted into cash or
property other than securities, then the Debentures may be surrendered for conversion at any time
from and after the date which is 15 days prior to the anticipated effective date of the transaction
until and including the date which is 15 days after the actual effective date of the transaction.
The Republic Board shall determine the anticipated effective date of the transaction, and such
determination shall be conclusive and binding on the Debentureholders and shall be publicly
announced by the Company by publication on its website or through such other public medium as it
may use at that time not later than two Business Days prior to such 15th day;

     (c)     A Debenture in respect of which a holder is electing to exercise its option to require
repurchase upon a Fundamental Change pursuant to Section 3.05 or repurchase pursuant to Section
3.06 may be converted only if such holder withdraws its election in accordance with Section
3.08(d). A holder of Debentures is not entitled to any rights of a holder of Republic Stock until
such holder has converted his Debentures to Republic Stock, and only to the extent such Debentures
are deemed to have been converted to Republic Stock under this Article 15.

     Section 15.02. Exercise of Conversion Privilege; Issuance of Republic Stock on
Conversion; No Adjustment for Interest or Dividends. In order to exercise the conversion
privilege with respect to any Debenture in certificated form, the Company must receive at the
office or agency of the Company maintained for that purpose or, at the option of such holder, the
Corporate Trust Office, such Debenture with the original or facsimile of the form entitled “Form of
Conversion Notice” on the reverse thereof, duly completed and

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manually signed, together with such Debentures duly endorsed for transfer, accompanied by the
funds, if any, required by this Section 15.02. Such notice shall also state the name or names (with
address or addresses) in which the certificate or certificates for shares of Republic Stock which
shall be issuable on such conversion shall be issued, and shall be accompanied by transfer or
similar taxes, if required pursuant to Section 15.07.

     In order to exercise the conversion privilege with respect to any interest in a Global
Debenture, the beneficial holder must complete, or cause to be completed, the appropriate
instruction form for conversion pursuant to the Depositary’s book-entry conversion program,
deliver, or cause to be delivered, by book-entry delivery an interest in such Global Debenture,
furnish appropriate endorsements and transfer documents if required by the Company or the Trustee
or Conversion Agent, and pay the funds, if any, required by this Section 15.02 and any transfer or
similar taxes if required pursuant to Section 15.07.

     As promptly as practicable after satisfaction of the requirements for conversion set forth
above, subject to Section 15.03 and compliance with any restrictions on transfer if shares issuable
on conversion are to be issued in a name other than that of the Debentureholder (as if such
transfer were a transfer of the Debenture or Debentures (or portion thereof) so converted),
Republic shall issue and the Company shall deliver to such Debentureholder at the office or agency
maintained by the Company for such purpose pursuant to Section 5.02, a certificate or certificates
for the number of full shares of Republic Stock, cash or a combination of cash and shares of
Republic Stock (if the Company timely elects to pay cash for any portion of the shares of Republic
Stock issuable upon conversion) issuable upon the conversion of such Debenture or portion thereof
as determined by the Company in accordance with the provisions of this Article 15 and a check or
cash in respect of any fractional interest in respect of a share of Republic Stock arising upon
such conversion, calculated by the Company as provided in Section 15.03. In case any Debenture of a
denomination greater than $1,000 shall be surrendered for partial conversion, and subject to
Section 2.03, the Company shall execute and the Trustee shall authenticate and deliver to the
holder of the Debenture so surrendered, without charge to such holder, a new Debenture or
Debentures in authorized denominations in an aggregate principal amount equal to the unconverted
portion of the surrendered Debenture.

     Each conversion shall be deemed to have been effected as to any such Debenture (or portion
thereof) on the date on which the requirements set forth above in this Section 15.02 have been
satisfied as to such Debenture (or portion thereof) (such date, the “Conversion Date”), and the
Person in whose name any certificate or certificates for shares of Republic Stock shall be issuable
upon such conversion shall be deemed to have become on said date the holder of record of the shares
represented thereby; provided that any such surrender on any date when the stock transfer books of
Republic shall be closed shall constitute the Person in whose name the certificates are to be
issued as the record holder thereof for all purposes on the next succeeding day on which such stock
transfer books are open, but such conversion shall be at the Conversion Rate in effect on the date
upon which such Debenture shall be surrendered.

9

 

     Any Debenture or portion thereof surrendered for conversion during the period from the close
of business on any Regular Record Date to the opening of business on the immediately following
Interest Payment Date shall be accompanied by payment, in immediately available funds or other
funds acceptable to the Company, of an amount equal to the Interest otherwise payable on such
Interest Payment Date on the principal amount being converted; provided that no such payment need
be made (1) if the Company has specified a Redemption Date that is after a Regular Record Date and
on or prior to the next Interest Payment Date, (2) if the Company has specified a Repurchase Date
following a Fundamental Change that is after a Regular Record Date and on or prior to the next
Interest Payment Date or (3) to the extent of any overdue Interest, if any overdue Interest exists
at the time of conversion with respect to such Debenture. Except as provided above in this Section
15.02, no payment or other adjustment shall be made for Interest accrued on any Debenture converted
or for dividends on any shares issued upon the conversion of such Debenture as provided in this
Article 15.

     Upon the conversion of an interest in a Global Debenture, the Trustee (or other Conversion
Agent appointed by the Company), or the Custodian at the direction of the Trustee (or other
Conversion Agent appointed by the Company), shall make a notation on such Global Debenture as to
the reduction in the principal amount represented thereby. The Company shall notify the Trustee in
writing of any conversions of Debentures effected through any Conversion Agent other than the
Trustee.

     Upon the conversion of a Debenture, that portion of the accrued but unpaid Interest with
respect to the converted Debenture shall not be cancelled, extinguished or forfeited, but rather
shall be deemed to be paid in full to the holder thereof through delivery of the Republic Stock,
cash or a combination of cash and Republic Stock (together with the cash payment, if any in lieu of
fractional shares) in exchange for the Debenture being converted pursuant to the provisions hereof;
and the fair market value of such shares of Republic Stock and any such cash payment (together with
any such cash payment in lieu of fractional shares) shall be treated as issued, to the extent
thereof, first in exchange for and in satisfaction of the Company’s obligation to pay the principal
amount of the converted Debenture and the accrued but unpaid Interest, and the balance, if any, of
such fair market value of such Republic Stock (and any such cash payment) shall be treated as
issued in exchange for and in satisfaction of the right to convert the Debenture being converted
pursuant to the provisions hereof.

     Section 15.03. Payment Upon Conversion; Cash Payments in Lieu of Fractional Shares.
(a) In the event that the Company receives notice of conversion on or prior to the day that is 20
days prior to Stated Maturity or, with respect to Debentures being redeemed, the applicable
Redemption Date (the “Final Notice Date”), the following procedures will apply:

     If the Company chooses to satisfy all or any portion of the Company’s obligation (the
“Conversion Obligation”) in cash, the Company will notify the holder through the Trustee of the
dollar amount to be satisfied in cash (which must be expressed either as 100% of the Conversion
Obligation or as a fixed dollar amount) at any time on or before the date that is two Business Days
following receipt of the notice of conversion (“Cash

10

 

Settlement Notice Period”). If the Company timely elects to pay cash for any portion of the
shares otherwise issuable to such holder, the conversion notice may be retracted by the holder at
any time during the two Business Day period beginning on the day after the final day of the Cash
Settlement Notice Period (“Conversion Retraction Period”); no such retraction can be made (and a
conversion notice shall be irrevocable) if the Company does not elect to deliver cash in lieu of
shares (other than cash in lieu of fractional shares). If the conversion notice has not been
retracted, then settlement (in cash and/or shares) will occur on the Business Day following the
final day of the 10 Trading Day period beginning on the day after the final day of the Conversion
Retraction Period. Settlement amounts will be computed as follows:

               (i)     If the Company elects to satisfy all or any portion of the Conversion Obligation in
shares, the Company will deliver to holders surrendering Debentures for conversion a number of
shares equal to (1) the aggregate original principal amount of Debentures to be converted into
shares divided by 1,000 multiplied by (2) the Conversion Rate.

               (ii)     If the Company elects to satisfy all or any portion of the Conversion Obligation in cash,
the Company will deliver to holders surrendering Debentures for conversion cash in an amount equal
to the product of:

          (A)     a number equal to (1) the aggregate original principal amount of Debentures to be
paid in cash divided by 1,000 multiplied by (2) the Conversion Rate and

          (B)     the average of the Last Reported Sale Prices of the Republic Stock for the 10
consecutive Trading Days immediately following the date of the Company’s notice of its
election to deliver cash (the “Cash Settlement Averaging Period”).

     (b)     In the event that the Company receives notice of conversion after the Final Notice Date,
the Company will not send individual notices of its election to satisfy all or any portion of the
Conversion Obligation in cash. Instead, if the Company chooses to satisfy all or any portion of
such Conversion Obligation in cash, the Company will send a single notice to the Trustee of the
dollar amount to be satisfied in cash (which must be expressed either as 100% of the Conversion
Obligation or as a fixed dollar amount) promptly following the Company’s receipt of such notice of
conversion. Settlement amounts will be computed and settlement dates will be determined in the
same manner as set forth under Section 15.03(a) above except that the “Cash Settlement Averaging
Period” shall be the five consecutive Trading Days ending on the third Trading Day prior to the
Conversion Date. Settlement (in cash and/or shares) will occur on the Business Day following the
final day of such Cash Settlement Averaging Period, subject to receipt by the Company of the
Debentures to be converted.

     (c)     No fractional shares of Republic Stock or scrip certificates representing fractional
shares shall be issued upon conversion of Debentures. If more than one Debenture shall be
surrendered for conversion at one time by the same holder, the

11

 

number of full shares that shall be issuable upon conversion shall be computed on the basis of
the aggregate principal amount of the Debentures (or specified portions thereof to the extent
permitted hereby) so surrendered. If any fractional share of stock would be issuable upon the
conversion of any Debenture or Debentures, the Company shall make an adjustment and payment
therefor in cash to the holder of Debentures at the Last Reported Sale Price of the Republic Stock
on the last Trading Day immediately preceding the day on which the Debentures (or specified
portions thereof) are deemed to have been converted.

     Section 15.04. Conversion Rate. Each $1,000 principal amount of the Debentures shall
be convertible into 22.02642 shares of Republic Stock (herein called the “Conversion Rate”),
subject to adjustment as provided in this Article 15.

     Section 15.05. Adjustment of Conversion Rate. (a) The Conversion Rate shall be
adjusted from time to time by the Company as follows:

               (i)     If Republic shall pay or make a dividend or other distribution on the Republic Stock in
shares of the Republic Stock, the Conversion Rate, as in effect at the opening of business on the
day following the date fixed for the determination of stockholders entitled to receive such
dividend or other distribution, shall be increased by dividing such Conversion Rate by a fraction
of which the numerator shall be the number of shares of Republic Stock outstanding at the close of
business on the date fixed for such determination and the denominator shall be the sum of such
number of shares and the total number of shares constituting such dividend or other distribution,
such increase to become effective immediately after the opening of business on the day following
the date fixed for such determination.

               (ii)     If Republic shall issue to all holders of Republic Stock (such issuance not being
available on an equivalent basis to holders of the Debentures upon conversion)

          (1)     options, warrants or other rights entitling them to subscribe for or purchase
shares of Republic Stock, or

          (2)     securities convertible or exchangeable into shares of Republic Stock, options,
warrants or other rights to purchase or acquire securities convertible or exchangeable into
shares of Republic Stock, in each case at a price per share of Republic Stock less than the
Current Market Price on the date fixed for the determination of stockholders entitled to
receive such options, warrants or other rights or securities (other than pursuant to a
dividend reinvestment, share purchase or similar plan),

the Conversion Rate in effect at the opening of business on the day following the date fixed for
such determination shall be increased by dividing such Conversion Rate by a fraction, the numerator
of which shall be the number of shares of Republic Stock outstanding at the close of business on
the date fixed for such determination plus the number of shares of Republic Stock which the
aggregate consideration expected to be

12

 

received by Republic upon the exercise, conversion or exchange of such options, warrants or other
rights or securities (as determined in good faith by the Republic Board, whose determination shall
be conclusive and described in a Board Resolution) would purchase at such Current Market Price and
the denominator of which shall be the number of shares of Republic Stock outstanding at the close
of business on the date fixed for such determination plus the number of shares of Republic Stock so
offered for subscription or purchase, either directly and indirectly, or into which such securities
are convertible or exchangeable, such increase to become effective immediately after the opening of
business on the day following the date fixed for such determination.

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

               (iv) (A) If Republic shall, by dividend or otherwise, distribute to all holders of Republic
Stock evidences of its indebtedness, shares of capital stock, cash or other assets (but excluding
any issuance of options, warrants or other rights or securities referred to in paragraph (ii) of
this Section 15.05(a), any dividend or distribution paid exclusively in cash and any dividend,
shares of capital stock of any class or series, or similar equity interests, of or relating to a
subsidiary or other business unit in the case of a Spin-Off referred to in the next subparagraph,
or dividend or distribution referred to in paragraph (i) of this Section 15.05(a)), the Conversion
Rate shall be increased by dividing the Conversion Rate in effect immediately prior to the close of
business on the date fixed for the determination of stockholders entitled to receive such
distribution by a fraction, the numerator of which shall be the Current Market Price on the date
fixed for such determination less the then fair market value (as determined in good faith by the
Republic Board, whose determination shall be conclusive and described in a Board Resolution) of the
portion of the assets or evidences of indebtedness so distributed applicable to one share of
Republic Stock and the denominator of which shall be such Current Market Price, such adjustment to
become effective immediately prior to the opening of business on the day following the date fixed
for the determination of stockholders entitled to receive such distribution. In any case in which
this clause (iv)(A) is applicable, clause (iv)(B) of this Section 15.05 shall not be applicable.

          (B) 
In the case of a Spin-Off, the Conversion Rate in effect immediately before the
close of business on the record date fixed for determination of stockholders entitled to
receive that distribution will be increased by multiplying the Conversion Rate by a
fraction, the numerator of which is the Current Market Price plus the Fair Market Value of
the portion of those shares of capital stock or

13

 

similar equity interests so distributed applicable to one share of Republic Stock and
the denominator of which is the Current Market Price; provided that if the application of
the foregoing formula would result in a decrease in the Conversion Rate, no adjustment to
the Conversion Rate will be made. Any adjustment to the Conversion Rate under this
subclause (iv)(B) will occur at the earlier of (A) the tenth Trading Day from, and
including, the effective date of the Spin-Off and (B) the date of the securities being
offered in the Initial Public Offering of the Spin-Off, if that Initial Public Offering is
effected simultaneously with the Spin-Off.

               (v)     In case Republic shall, by dividend or otherwise, distribute to all holders of Republic
Stock cash (excluding any cash that is distributed in a Reorganization Event to which Section
15.05(b) applies or as part of a distribution referred to in paragraph (iv) of this Section
15.05(a)), then, and in each such case, immediately after the close of business on such date for
determination, the Conversion Rate shall be increased by dividing the Conversion Rate in effect
immediately prior to the close of business on the date fixed for determination of the stockholders
entitled to receive such distribution by a fraction (A) the numerator of which shall be equal to
the Current Market Price on the date fixed for such determination less an amount equal to the
quotient of (x) the aggregate amount of cash distributed to all holders of the Republic Stock and
(y) the number of shares of Republic Stock outstanding on the date fixed for such determination and
(B) the denominator of which shall be equal to the Current Market Price on the date fixed for such
determination.

               (vi)     In case a tender or exchange offer made by Republic or any Subsidiary of Republic for all
or any portion of the Republic Stock shall expire and such tender or exchange offer (as amended
through the expiration thereof) shall require the payment per share of Republic Stock exceeding the
Last Reported Sale Price of the Republic Stock on the Trading Day next succeeding the last time
(the “Expiration Time”) tenders could have been made pursuant to such tender or exchange offer (as
amended through the expiration thereof), then, and in each such case, immediately prior to the
opening of business on the day after such Trading Day next succeeding the Expiration Time, the
Conversion Rate shall be increased by dividing the Conversion Rate immediately prior to the close
of business on such Trading Day next succeeding the date of the Expiration Time by a fraction (A)
the numerator of which shall be equal to (x) the product of (I) the Last Reported Sale Price of the
Republic Stock on the Trading Day next succeeding the date of the Expiration Time and (II) the
number of shares of Republic Stock outstanding (including any tendered shares) on the Trading Day
next succeeding the date of the Expiration Time less (y) the amount of cash plus the fair market
value (determined as aforesaid) of the aggregate consideration payable to stockholders in such
tender or exchange offer (assuming the acceptance, up to any maximum specified in the terms of the
tender or exchange offer, of Purchased Shares), and (B) the denominator of which shall be equal to
the product of (x) the Last Reported Sale Price of the Republic Stock on the Trading Day next
succeeding the date of the Expiration Time and (y) the number of shares of Republic Stock
outstanding (including any tendered shares) on the Trading Day next succeeding the date of the
Expiration Time less the number of all shares validly tendered, not withdrawn and accepted for
payment on the date of the

14

 

Expiration Time (such validly tendered shares, up to any such maximum, being referred to as
the “Purchased Shares”).

               (vii)     All adjustments to the Conversion Rate shall be calculated to the nearest 1/10,000th of
a share of Republic Stock (or if there is not a nearest 1/10,000th of a share to the next lower
1/10,000th of a share). No adjustment to the Conversion Rate will be required until the earlier of
(1) such time as the Company provides notice to holders of the Debentures of the Company’s
intention to redeem the Debentures or (2) such time as the adjustment would require an increase or
decrease of at least 1% of the Conversion Rate. If an adjustment is not made because the adjustment
would not change the Conversion Rate by more than 1%, then the adjustment that is not made will be
carried forward and taken into account in any future adjustment.

               (viii)     The Company may make such increases in the Conversion Rate, in addition to those
required or permitted by this Section 15.05, as the Republic Board considers to be advisable in
order to avoid or diminish any income tax to any holders of shares of Republic Stock resulting from
any dividend or distribution of shares (or rights to acquire shares) or from any event treated as
such for income tax purposes or for any other reasons.

               (ix)     Whenever the Conversion Rate is adjusted in accordance with this Section 15.05, the
Company shall: (1) forthwith compute the Conversion Rate in accordance with this Section 15.05 and
prepare and transmit to the Trustee an Officer’s Certificate setting forth the Conversion Rate, the
method of calculation thereof in reasonable detail, and the facts requiring such adjustment and
upon which such adjustment is based; and (2) as soon as practicable following the occurrence of an
event that requires or permits an adjustment to the Conversion Rate pursuant to this Section 15.05
(or if the Company is not aware of such occurrence, as soon as practicable after becoming so
aware), provide a written notice to the holders of Debentures of the occurrence of such event and a
statement setting forth in reasonable detail the method by which the adjustment to the Conversion
Rate was determined and setting forth the adjusted Conversion Rate.

               (x)     Holders of Debentures will be entitled to receive, upon conversion of Debentures, in
addition to shares of the Republic Stock, the rights under any rights plan adopted by Republic
whether or not the rights have separated from shares of the Republic Stock at the time of
conversion and no adjustment to the Conversion Rate will be made in accordance with paragraph (iv)
above or otherwise to the extent such rights are so received upon conversion.

     (b)     In the event of:

	 	(i)	 	any consolidation or merger of Republic with or into another
Person or of another Person with or into Republic; or

15

 

	 	(ii)	 	any sale, transfer, lease or conveyance to another Person of
the property of Republic as an entirety or substantially as an entirety; or
	 
	 	(iii)	 	any reclassification of Republic Stock (other than a
reclassification to which paragraph (iii) of Section 15.05(a) applies),

(any such event, a “Reorganization Event”), each holder of a Debenture prior to such Reorganization
Event shall, after such Reorganization Event, be entitled to receive upon conversion the kind and
amount of securities, cash and other property receivable in such Reorganization Event (without any
interest thereon, and without any right to dividends or distribution thereon which have a record
date that is prior to the date of the Reorganization Event) by a holder of a number of shares of
Republic Stock issuable upon conversion of such Debentures that (1) is not a Person with which
Republic consolidated or into which Republic merged or which merged into Republic or to which such
sale or transfer was made, as the case may be (any such Person, a “Constituent Person”), or an
Affiliate of a Constituent Person to the extent such Reorganization Event provides for different
treatment of Republic Stock held by Affiliates of Republic and non-Affiliates of Republic, and (2)
has failed to exercise the rights of election, if any, as to the kind or amount of securities, cash
and other property receivable upon such Reorganization Event (provided that if the kind or amount
of securities, cash and other property receivable upon such Reorganization Event is not the same
for each share of Republic Stock held immediately prior to such Reorganization Event by other than
a Constituent Person or an Affiliate thereof and in respect of which such rights of election shall
not have been exercised (“non-electing share”), then for the purpose of this Section 15.05 the kind
and amount of securities, cash and other property receivable upon such Reorganization Event by each
non-electing share shall be deemed to be the kind and amount so receivable per share by a plurality
of the non-electing shares). On the Conversion Date, the Conversion Rate then in effect shall be
applied to the value or amount on the Conversion Date of such securities, cash or other property.

     In the event of such a Reorganization Event, the Person formed by such consolidation or
merger, or the Person which acquires the property of Republic, shall execute and deliver to the
Trustee an agreement supplemental hereto providing that the holder of each Debenture that remains
outstanding after the Reorganization Event (if any) shall have the rights provided by this Section
15.05. Such supplemental agreement shall provide for adjustments which, for events subsequent to
the effective date of such supplemental agreement, shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Section 15.05. The above provisions of this
Section 15.05 shall similarly apply to successive Reorganization Events.

     Section 15.06. Withholding Taxes. The Company shall have the right to set-off any
withholding taxes that the Company is required to pay with respect to any deemed distributions
occurring as a result of changes in the Conversion Rate against cash payments of interest payable
on the Debentures.

16

 

     Section 15.07. Taxes on Shares Issued. The issue of stock certificates on conversions
of Debentures shall be made without charge to the converting Debentureholder for any documentary,
stamp or similar issue or transfer tax in respect of the issue thereof. The Company shall not,
however, be required to pay any such tax which may be payable in respect of any transfer involved
in the issue and delivery of stock in any name other than that of the holder of any Debenture
converted, and the Company shall not be required to issue or deliver any such stock certificate
unless and until the Person or Persons requesting the issue thereof shall have paid to the Company
the amount of such tax or shall have established to the satisfaction of the Company that such tax
has been paid. Nothing herein shall preclude any tax withholding required by law or regulations.

     Section 15.08. Reservation of Shares, Shares To Be Fully Paid; Compliance with
Governmental Requirements; Listing of Republic Stock. Republic shall reserve, free from
preemptive rights, out of its authorized but unissued shares or shares held in treasury, sufficient
shares of Republic Stock to provide for the conversion of the Debentures from time to time as such
Debentures are presented for conversion. Before taking any action which would cause an adjustment
increasing the Conversion Rate to an amount that would cause the Conversion Price to be reduced
below the then par value, if any, of the shares of Common Stock issuable upon conversion of the
Debentures, Republic will take all corporate action which may, in the opinion of its counsel, be
necessary in order that Republic may validly and legally issue shares of such Republic Stock at
such adjusted Conversion Rate.

     The Company and Republic covenant that all shares of Republic Stock which may be issued upon
conversion of Debentures will upon issue be fully paid and non-assessable by Republic and free from
all taxes, liens and charges with respect to the issue thereof.

     Republic covenants that, if any shares of Republic Stock to be provided for the purpose of
conversion of Debentures hereunder require registration with or approval of any governmental
authority under any federal or state law before such shares may be validly issued upon conversion,
Republic will in good faith and as expeditiously as possible, to the extent then permitted by the
rules and interpretations of the Commission (or any successor thereto), endeavor to secure such
registration or approval, as the case may be. Republic further covenants that, if at any time the
Republic Stock shall be listed on the New York Stock Exchange or any other U.S. national securities
exchange or automated quotation system, Republic will, if permitted by the rules of such exchange
or automated quotation system, list and keep listed, so long as the Republic Stock shall be so
listed on such exchange or automated quotation system, all Republic Stock issuable upon conversion
of the Debentures; provided that if the rules of such exchange or automated quotation system permit
Republic to defer the listing of such Republic Stock until the first conversion of the Debentures
into Republic Stock in accordance with the provisions of this Indenture, Republic covenants to list
such Republic Stock issuable upon conversion of the Debentures in accordance with the requirements
of such exchange or automated quotation system at such time.

17

 

     Section 15.09. Responsibility of Trustee. The Trustee and any other Conversion Agent
shall not at any time be under any duty or responsibility to the Company or any holder of
Debentures to determine the Conversion Rate or whether any facts exist which may require any
adjustment of the Conversion Rate, or with respect to the nature or extent or calculation of any
such adjustment when made, or with respect to the method employed, or herein or in any supplemental
indenture provided to be employed, in making the same. The Trustee and any other Conversion Agent
shall not be accountable with respect to the validity or value (or the kind or amount) of any
shares of Republic Stock, or of any securities or property, which may at any time be issued or
delivered upon the conversion of any Debenture; and the Trustee and any other Conversion Agent make
no representations with respect thereto. Neither the Trustee nor any Conversion Agent shall be
responsible for any failure of the Company to transfer or deliver any shares of Republic Stock or
stock certificates or other securities or property or cash upon the surrender of any Debenture for
the purpose of conversion or to comply with any of the duties, responsibilities or covenants of the
Company contained in this Article 15. Without limiting the generality of the foregoing, neither the
Trustee nor any Conversion Agent shall be under any responsibility to determine the correctness of
any provisions contained in any supplemental indenture entered into pursuant to Section 15.05(b)
relating either to the kind or amount of shares of stock or securities or property (including cash)
receivable by Debentureholders upon the conversion of their Debentures after any event referred to
in such Section 15.05(b) or to any adjustment to be made with respect thereto, but, subject to the
provisions of Section 8.01, may accept as conclusive evidence of the correctness of any such
provisions, and shall be protected in relying upon, the Officers’ Certificate (which the Company
shall be obligated to file with the Trustee prior to the execution of any such supplemental
indenture) with respect thereto.

     Section 15.10. Notice to Holders Prior to Certain Actions. In case:

     (a)     Republic shall declare a dividend (or any other distribution) on Republic Stock that would
require an adjustment in the Conversion Rate pursuant to Section 15.05; or

     (b)     Republic shall authorize the granting to the holders of all or substantially all of
Republic Stock of rights or warrants to subscribe for or purchase any share of any class or any
other rights or warrants; or

     (c)     of any reclassification or reorganization of the Republic Stock (other than a subdivision
or combination of the outstanding Republic Stock, or a change in par value, or from par value to no
par value, or from no par value to par value), or of any consolidation or merger to which Republic
is a party and for which approval of any shareholders of Republic is required, or of the sale or
transfer of all or substantially all of the assets of Republic; or

     (d)     of the voluntary or involuntary dissolution, liquidation or winding up of Republic;

18

 

the Company shall cause to be filed with the Trustee and to be mailed to each holder of Debentures
at such holder’s address appearing on the Debenture Register provided for in Section 2.05 of this
Indenture, as promptly as possible but in any event at least ten (10) days prior to the applicable
date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the
purpose of such dividend, distribution or rights or warrants, or, if a record is not to be taken,
the date as of which the holders of Republic Stock of record to be entitled to such dividend,
distribution or rights are to be determined, or (y) the date on which such reclassification,
consolidation, merger, sale, transfer, dissolution, liquidation or winding up is expected to become
effective or occur, and the date as of which it is expected that holders of Republic Stock of
record shall be entitled to exchange their Republic Stock for securities or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding up. Failure to give such notice, or any defect therein, shall not affect the
legality or validity of such dividend, distribution, reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation or winding up.

ARTICLE THREE

ADDITIONAL CONFORMING CHANGES

     Section 3.1. Amendment of Section 2.03.

     In the second paragraph of Section 2.03, the phrase “into Common Stock” shall be deleted and
the phrase “in accordance with Article 15” substituted therefor.

     Section 3.2. Amendment of Section 2.06.

     In the second paragraph of Section 2.06, the phrase “into Common Stock” shall be deleted and
the phrase “in accordance with Article 15” substituted therefor.

     Section 3.3. Amendment of Sections 3.02(b) and (c).

     In each of Sections 3.02(b) and 3.02(c) the phrase “into Common Stock” shall be deleted and
the phrase “in accordance with Article 15” substituted therefor.

     Section 3.4. Amendment of Section 3.03.

     In the first and third paragraph of Section 3.03 the phrase “into Common Stock” shall be
deleted and the phrase “in accordance with Article 15” substituted therefor.

     Section 3.5. Amendment of Sections 3.07(a) and (e).

     In Section 3.07(a) and Section 3.07(e) the phrase “of the Common Stock” shall be inserted
following each reference to the “Last Reported Sale Price.”

19

 

     Section 3.6. Amendment of Section 7.01(c).

     In Section 7.01(c), the phrase “into shares of Common Stock, cash or a combination of cash and
shares of Common Stock” shall be deleted and the phrase “in accordance with Article 15” substituted
therefor.

     Section 3.7. Amendment of Section 7.07.

     In Section 7.07, the phrase “into shares of Common Stock, cash or a combination of cash and
shares of Common Stock” shall be deleted and the phrase “in accordance with Article 15” substituted
therefor.

     Section 3.8. Amendment to Section 11.02.

     In the first paragraph of Section 11.02 the phrase “into Common Stock” is deleted and the
phrase “in accordance with Article 15” is substituted therefor; and the phrase “shares of Common
Stock” is deleted and the phrase “shares of capital stock” is substituted therefor.

ARTICLE FOUR

CONCERNING THE TRUSTEE

     Section 4.1. Terms and Conditions.

     The Trustee accepts this First Supplemental Indenture and agrees to perform the duties of the
Trustee upon the terms and conditions herein and in the Indenture set forth.

     Section 4.2. No Responsibility.

     The Trustee makes no undertaking or representations in respect of, and shall not be
responsible in any manner whatsoever for and in respect of, the validity or sufficiency of this
First Supplemental Indenture or the proper authorization or the due execution hereof by the
Company, or for or in respect of the recitals and statements contained herein, all of which
recitals and statements are made solely by the Company.

ARTICLE FIVE

EFFECT OF EXECUTION AND DELIVERY HEREOF

     From and after the effective time of this First Supplemental Indenture, (i) the Indenture
shall be deemed to be amended and modified as provided herein, (ii) this First Supplemental
Indenture shall form a part of the Indenture, (iii) except as modified and amended by this First
Supplemental Indenture, the Indenture shall continue in full force and effect, (iv) the Debentures
shall continue to be governed by the Indenture, as modified and amended by this First Supplemental
Indenture, and (v) every holder of Debentures heretofore and hereafter authenticated and delivered
under the Indenture shall be bound by this First Supplemental Indenture.

20

 

ARTICLE SIX

OBLIGATIONS UNDER THE INDENTURE

     Notwithstanding anything in the Indenture or this First Supplemental Indenture to the
contrary, all obligations for payment of principal of, or interest or premium on, the Debentures
shall remain solely the obligation of the Company, Republic has executed this First Supplemental
Indenture only for the purpose of confirming its obligation to issue shares of Republic Stock upon
the conversion of Debentures in accordance with Article 15 and to reserve, register and list such
shares as provided in Section 15.08 of the Indenture, and Republic neither has nor assumes any
obligations for payment of principal of, or interest or premium on, the Debentures, or any other
obligations under the Indenture.

ARTICLE SEVEN

MISCELLANEOUS PROVISIONS

     Section 7.1. Effective Time.

     This First Supplemental Indenture is effective as of the Effective Time of the Merger, as
defined in the Merger Agreement.

     Section 7.2. Headings Descriptive.

     The headings of the several Articles and Sections of this First Supplemental Indenture are
inserted for convenience only and shall not in any way affect the meaning or construction of any
provision of this First Supplemental Indenture.

     Section 7.3. Rights and Obligations of the Trustee.

     All of the provisions of the Indenture with respect to the rights, privileges, immunities,
powers and duties of the Trustee shall be applicable in respect of this First Supplemental
Indenture as fully and with the same effect as if set forth herein in full.

     Section 7.4. Successors and Assigns.

     This First Supplemental Indenture shall be binding upon and inure to the benefit of and be
enforceable by the respective successors and assigns of the parties hereto and the holders of any
Debentures then outstanding.

     Section 7.5. Counterparts.

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

     Section 7.6. Governing Law.

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

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

	 	 	 	 	 
	 	ALLIED WASTE INDUSTRIES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Jo Lynn White 	 
	 	 	Title:  	Vice President, Assistant Secretary &

Deputy General Counsel 	 
	 
	 	REPUBLIC SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Edward A. Lang, III 	 
	 	 	Title:  	Vice President, Finance & Treasurer 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:

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