Document:

exv4w1

 

EXHIBIT 4.1

ABITIBIBOWATER INC.

(Successor by merger to ABI Escrow Corporation)

10.25% SENIOR SECURED NOTES DUE 2018

AMENDED AND RESTATED INDENTURE

Dated as of May 12, 2011

WELLS FARGO BANK, NATIONAL ASSOCIATION

as

Trustee

and

Collateral Agent

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1
	 
	DEFINITIONS AND INCORPORATION BY REFERENCE
	 
	Section 1.01. Definitions
	 	 	1	 
	Section 1.02. Other Definitions
	 	 	32	 
	Section 1.03. Incorporation by Reference of Trust Indenture Act
	 	 	32	 
	Section 1.04. Rules of Construction
	 	 	33	 
	Section 1.05. Applicability of Terms Indenture
	 	 	33	 
	 
	ARTICLE 2
	 
	THE NOTES
	 
	Section 2.01. Form and Dating
	 	 	33	 
	Section 2.02. Execution and Authentication
	 	 	34	 
	Section 2.03. Registrar and Paying Agent
	 	 	34	 
	Section 2.04. Paying Agent to Hold Money in Trust
	 	 	35	 
	Section 2.05. Holder Lists
	 	 	35	 
	Section 2.06. Transfer and Exchange
	 	 	35	 
	Section 2.07. Replacement Notes
	 	 	47	 
	Section 2.08. Outstanding Notes
	 	 	48	 
	Section 2.09. Treasury Notes
	 	 	48	 
	Section 2.10. Temporary Notes
	 	 	48	 
	Section 2.11. Cancellation
	 	 	48	 
	Section 2.12. Defaulted Interest
	 	 	49	 
	 
	ARTICLE 3
	 
	REDEMPTION
	 
	Section 3.01. Optional Redemption
	 	 	49	 
	Section 3.02. Mandatory Redemption
	 	 	49	 
	Section 3.03. Notices to Trustee
	 	 	49	 
	Section 3.04. Selection of Notes to Be Redeemed
	 	 	49	 
	Section 3.05. Notice of Redemption
	 	 	50	 
	Section 3.06. Effect of Notice of Redemption
	 	 	51	 
	Section 3.07. Deposit of Redemption Price
	 	 	51	 
	Section 3.08. Notes Redeemed in Part
	 	 	51	 
	 
	ARTICLE 4
	 
	COVENANTS
	 
	Section 4.01. Payment of Notes
	 	 	51	 
	Section 4.02. Maintenance of Office or Agency
	 	 	52	 
	Section 4.03. Reports
	 	 	52	 
	Section 4.04. Compliance Certificate
	 	 	53	 

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	 	 	Page	 
	Section 4.05. Taxes
	 	 	53	 
	Section 4.06. Stay, Extension and Usury Laws
	 	 	53	 
	Section 4.07. Restricted Payments
	 	 	54	 
	Section 4.08. Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries
	 	 	58	 
	Section 4.09. Incurrence of Indebtedness and Issuance of Preferred Stock
	 	 	60	 
	Section 4.10. Asset Sales
	 	 	65	 
	Section 4.11. Transactions with Affiliates
	 	 	69	 
	Section 4.12. Liens
	 	 	71	 
	Section 4.13. Business Activities
	 	 	71	 
	Section 4.14. Corporate Existence
	 	 	72	 
	Section 4.15. Offer to Repurchase upon Change of Control
	 	 	72	 
	Section 4.16. [Reserved]
	 	 	73	 
	Section 4.17. Payments for Consent
	 	 	73	 
	Section 4.18. Additional Note Guarantees
	 	 	74	 
	Section 4.19. Designation of Restricted and Unrestricted Subsidiaries
	 	 	74	 
	Section 4.20. Activities of Escrow Issuer
	 	 	75	 
	 
	ARTICLE 5
	 
	SUCCESSORS
	 
	Section 5.01. Merger, Consolidation, or Sale of Assets
	 	 	75	 
	Section 5.02. Successor Corporation Substituted
	 	 	76	 
	 
	ARTICLE 6
	 
	DEFAULTS AND REMEDIES
	 
	Section 6.01. Events of Default
	 	 	76	 
	Section 6.02. Acceleration
	 	 	79	 
	Section 6.03. Other Remedies
	 	 	79	 
	Section 6.04. Waiver of Past Defaults
	 	 	79	 
	Section 6.05. Control by Majority
	 	 	79	 
	Section 6.06. Limitation on Suits
	 	 	80	 
	Section 6.07. Rights of Holders of Notes to Receive Payment
	 	 	80	 
	Section 6.08. Collection Suit by Trustee
	 	 	80	 
	Section 6.09. Trustee May File Proofs of Claim
	 	 	80	 
	Section 6.10. Priorities
	 	 	81	 
	Section 6.11. Undertaking for Costs
	 	 	81	 
	 
	ARTICLE 7
	 
	TRUSTEE
	 
	Section 7.01. Duties of Trustee
	 	 	82	 
	Section 7.02. Rights of Trustee
	 	 	83	 
	Section 7.03. Individual Rights of Trustee
	 	 	84	 
	Section 7.04. Trustee’s Disclaimer
	 	 	85	 
	Section 7.05. Notice of Defaults
	 	 	85	 
	Section 7.06. Reports by Trustee to Holders of the Notes
	 	 	85	 
	Section 7.07. Compensation and Indemnity
	 	 	85	 

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	 	 	Page	 
	Section 7.08. Replacement of Trustee
	 	 	86	 
	Section 7.09. Successor Trustee by Merger, etc.
	 	 	87	 
	Section 7.10. Eligibility; Disqualification
	 	 	87	 
	Section 7.11. Preferential Collection of Claims Against the Issuer
	 	 	87	 
	Section 7.12. Escrow Authorization
	 	 	87	 
	 
	ARTICLE 8
	 
	LEGAL DEFEASANCE AND COVENANT DEFEASANCE
	 
	Section 8.01. Option to Effect Legal Defeasance or Covenant Defeasance
	 	 	88	 
	Section 8.02. Legal Defeasance and Discharge
	 	 	88	 
	Section 8.03. Covenant Defeasance
	 	 	88	 
	Section 8.04. Conditions to Legal or Covenant Defeasance
	 	 	89	 
	Section 8.05. Deposited Money and Government Securities to Be Held in Trust;
Other Miscellaneous Provisions
	 	 	90	 
	Section 8.06. Repayment to Issuer
	 	 	90	 
	Section 8.07. Reinstatement
	 	 	91	 
	 
	ARTICLE 9
	 
	AMENDMENT, SUPPLEMENT AND WAIVER
	 
	Section 9.01. Without Consent of Holders of Notes
	 	 	91	 
	Section 9.02. With Consent of Holders of Notes
	 	 	92	 
	Section 9.03. [Reserved]
	 	 	94	 
	Section 9.04. Revocation and Effect of Consents
	 	 	94	 
	Section 9.05. Notation on or Exchange of Notes
	 	 	94	 
	Section 9.06. Trustee to Sign Amendments, etc.
	 	 	94	 
	 
	ARTICLE 10
	 
	NOTE GUARANTEES
	 
	Section 10.01. Guarantee
	 	 	94	 
	Section 10.02. Limitation on Guarantor Liability
	 	 	96	 
	Section 10.03. Execution and Delivery of Note Guarantee
	 	 	96	 
	Section 10.04. Guarantors May Consolidate, etc., on Certain Terms
	 	 	97	 
	Section 10.05. Releases
	 	 	98	 
	 
	ARTICLE 11
	 
	SATISFACTION AND DISCHARGE
	 
	Section 11.01. Satisfaction and Discharge
	 	 	98	 
	Section 11.02. Application of Trust Money
	 	 	99	 

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	 	 	Page	 
	ARTICLE 12
	 
	INTERCREDITOR AGREEMENT
	 
	Section 12.01. Intercreditor Agreement
	 	 	99	 
	 
	ARTICLE 13
	 
	COLLATERAL
	 
	Section 13.01. Security Documents
	 	 	100	 
	Section 13.02. Collateral Agent
	 	 	100	 
	Section 13.03. Authorization of Actions to Be Taken
	 	 	100	 
	Section 13.04. Release of Collateral
	 	 	101	 
	Section 13.05. [Reserved]
	 	 	102	 
	Section 13.06. Powers Exercisable by Receiver or Trustee
	 	 	102	 
	Section 13.07. Voting
	 	 	102	 
	Section 13.08. Collateral Proceeds Account
	 	 	102	 
	Section 13.09. Appointment and Authorization of Wells Fargo Bank as Collateral Agent
	 	 	104	 
	 
	ARTICLE 14
	 
	MISCELLANEOUS
	 
	Section 14.01. [Reserved]
	 	 	104	 
	Section 14.02. Notices
	 	 	104	 
	Section 14.03. Communication by Holders of Notes with Other Holders of Notes
	 	 	105	 
	Section 14.04. Certificate and Opinion as to Conditions Precedent
	 	 	106	 
	Section 14.05. Statements Required in Certificate or Opinion
	 	 	106	 
	Section 14.06. Rules by Trustee and Agents
	 	 	106	 
	Section 14.07. No Personal Liability of Directors, Officers, Employees and Stockholders
	 	 	106	 
	Section 14.08. Governing Law
	 	 	106	 
	Section 14.09. No Adverse Interpretation of Other Agreements
	 	 	107	 
	Section 14.10. Successors
	 	 	107	 
	Section 14.11. Severability
	 	 	107	 
	Section 14.12. Counterpart Originals
	 	 	107	 
	Section 14.13. Table of Contents, Headings, etc.
	 	 	107	 
	Section 14.14. Jurisdiction; Consent to Service of Process
	 	 	107	 
	Section 14.15. Amendment and Restatement
	 	 	108	 

	 	 	 

	EXHIBITS

	 
	 	 
	Exhibit A

	 	FORM OF NOTE
	Exhibit B

	 	FORM OF CERTIFICATE OF TRANSFER
	Exhibit C

	 	FORM OF CERTIFICATE OF EXCHANGE
	Exhibit D

	 	FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR
	Exhibit E

	 	FORM OF NOTATION OF GUARANTEE

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     AMENDED AND RESTATED INDENTURE, dated as of May 12, 2011, among ABITIBIBOWATER INC., a
Delaware corporation (the “Company”), as successor by merger to ABI Escrow Corporation, a Delaware
corporation (the “Escrow Issuer”), each of the Guarantors from time to time party hereto, as
guarantors, and WELLS FARGO BANK, NATIONAL ASSOCIATION, as trustee (the “Trustee”) and as
Collateral Agent.

     WHEREAS, the Escrow Issuer has heretofore executed and delivered to the Trustee an indenture,
dated as of October 4, 2010 (as amended by that certain First Supplemental Indenture, dated as of
December 9, 2011 (the “First Supplemental Indenture”), the “Original Indenture”), providing for the
issuance of the Escrow Issuer’s 10.25% Senior Secured Notes due 2018 (the “Notes”), of which
$850,000,000 aggregate principal amount have heretofor been authenticated;

     WHEREAS, substantially concurrently with the execution and delivery of the First Supplemental
Indenture, the Escrow Issuer merged into the Company, with the Company continuing as the surviving
corporation, and the Guarantors executed and delivered Note Guarantees;

     WHEREAS, on or after the Release Date (as defined herein), (i) Bowater Incorporated changed
its name to AbiBow US Inc.; (ii) each of Bowater Alabama LLC, Bowater Newsprint South Operations
LLC, Bowater America Inc., Abitibi-Consolidated Alabama Corporation, and Alabama River Newsprint
Company merged into AbiBow US Inc.; (iii) Abitibi-Consolidated Corp. converted to AbiBow Recycling
LLC, a Delaware limited liability company; and (iv) Abitibi Consolidated Sales Corporation
converted to Abitibi Consolidated Sales LLC, a Delaware limited liability company; and

     WHEREAS pursuant to Section 9.01 of the Indenture, the Trustee, the New Issuer and the
Guarantors are authorized to execute and deliver this Indenture without the consent of any Holder
to amend and restate the Original Indenture as set forth herein;

     In this Indenture, except where otherwise indicated, all references to “dollars” and “$” are
to the lawful currency of the United States.

     The Issuer, the Guarantors and the Trustee agree as follows for the benefit of each other and
for the equal and ratable benefit of the Holders (as defined) of the 10.25% Senior Secured Notes
due 2018 (the “Notes”):

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.01. Definitions.

     “144A Global Note” means a Global Note substantially in the form of Exhibit A hereto bearing
the Global Note Legend and the Private Placement Legend and deposited with or on behalf of, and
registered in the name of, the Depositary or its nominee that will be issued in a denomination
equal to the outstanding principal amount of the Notes sold in reliance on Rule 144A.

     “ABL Credit Agreement” means the credit agreement, to be dated on or prior to the Release Date
among the Issuer and the other Subsidiaries of the Issuer party thereto, the various lenders and
agents party thereto and Citibank, N.A., as administrative agent, together with any amendments,
supplements, modifications, extensions, renewals, restatements or refundings thereof and any
indentures or credit facilities, receivables securitization facilities or commercial paper
facilities with banks or other institutional lenders or investors that replace, refund or refinance
any part of the loans, notes, other credit facilities or com-

 

 

mitments thereunder, including any such replacement, refunding or refinancing facility or
indenture that increases the amount borrowable thereunder, alters the maturity thereof or adds
Restricted Subsidiaries as additional borrowers or guarantors thereunder and whether by the same or
any other agent, lender, group of lenders or investors.

     “ABL Facility Collateral Agent” means Citibank, N.A., as collateral agent under the ABL Credit
Agreement, and its successors, replacements and/or assigns in such capacity.

     “ABL Obligations” means (x) the Indebtedness and other obligations which are secured by a Lien
on the Collateral permitted by clause (2) of the definition of “Permitted Liens” and (y)
obligations in respect of “Bank Products” (as defined in the Intercreditor Agreement) that are
permitted to be secured pursuant to the definition of “Permitted Liens.”

     “Acquired Debt” means, with respect to any specified Person:

     (1) Indebtedness of any other Person existing at the time such other Person is merged
with or into or became a Subsidiary of such specified Person, whether or not such
Indebtedness is incurred in connection with, or in contemplation of, such other Person
merging with or into, or becoming a Restricted Subsidiary of, such specified Person; and

     (2) Indebtedness secured by a Lien encumbering any asset acquired by such specified
Person.

     “Additional Notes” means additional Notes (other than the Initial Notes) issued under this
Indenture in accordance with Section 2.02, as part of the same series as the Initial Notes.

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

     “Agent” means any Registrar, co-registrar, Paying Agent or additional paying agent.

     “Applicable Accounting Standards” means, as of the Issue Date, U.S. GAAP; provided, however,
that the Issuer may, upon not less than sixty (60) days’ prior written notice to the Trustee,
change to IFRS; provided, however, that notwithstanding the foregoing, if the Issuer changes to
IFRS, it may elect, in its sole discretion, to continue to utilize U.S. GAAP for the purposes of
making all calculations under this Indenture that are subject to Applicable Accounting Standards
and the notice to the Trustee required upon the change to IFRS shall set forth whether or not the
Issuer intends to continue to use U.S. GAAP for purposes of making all calculations under this
Indenture. In the event the Issuer elects to change to IFRS for purposes of making calculations
under this Indenture, references in this Indenture to a standard or rule under U.S. GAAP shall be
deemed to refer to the most nearly comparable standard or rule under IFRS.

     “Applicable Premium” means, with respect to a Note, the greater of:

     (1) 1.0% of the then outstanding principal amount of such Note and

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     (2) (A) the present value of all remaining required interest and principal payments due
on such Note and all premium payments relating to such Note assuming a redemption date of
October 15, 2014, computed using a discount rate equal to the Treasury Rate plus 50 basis
points, minus

     (B) the then outstanding principal amount of such Note, minus

     (C) accrued interest paid on the date of redemption.

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

     “Asset Sale” means:

     (1) the sale, lease, conveyance or other disposition of any assets or rights; provided
that the sale, lease, conveyance or other disposition of all or substantially all of the
assets of the Issuer and its Restricted Subsidiaries taken as a whole will be governed by
Section 4.15 and/or Section 5.01 and not by the provisions of Section 4.10; and

     (2) the issuance of Equity Interests by any of the Issuer’s Restricted Subsidiaries or
the sale of Equity Interests in any of the Issuer’s Subsidiaries (other than directors’
qualifying Equity Interests or Equity Interests required by applicable law to be held by a
Person other than the Issuer or one of its Restricted Subsidiaries).

     Notwithstanding the preceding, none of the following items will be deemed to be an Asset Sale:

     (1) any single transaction or series of related transactions that involves assets not
constituting Notes Priority Collateral having a Fair Market Value of less than $15.0
million;

     (2) any single transaction or series of related transactions that involves assets
constituting Notes Priority Collateral having a Fair Market Value of less than $5.0 million;

     (3) a transfer of assets constituting Notes Priority Collateral between or among the
Issuer and the Guarantors;

     (4) a transfer of assets that are not Notes Priority Collateral between or among the
Issuer and its Restricted Subsidiaries; provided that in the case of a transfer by the
Issuer or a Restricted Subsidiary (other than an Existing Restricted Subsidiary JV) to an
Existing Restricted Subsidiary JV, the Issuer or such Restricted Subsidiary receives
consideration (excluding consideration consisting of Excluded Assets) at least equal to the
Fair Market Value of the assets transferred to the Existing Restricted Subsidiary JV;

     (5) an issuance of Equity Interests by a Restricted Subsidiary of the Issuer to the
Issuer or to a Restricted Subsidiary of the Issuer (other than Equity Interests of a
Restricted Subsidiary that is not an Existing Restricted Subsidiary JV to an Existing
Restricted Subsidiary JV);

     (6) the sale or lease of products, services or accounts receivable in the ordinary
course of business and any sale or other disposition of damaged, worn-out or obsolete
assets;

     (7) the sale or other disposition of Cash Equivalents not constituting Collateral;

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     (8) a Restricted Payment that does not violate Section 4.07 or a Permitted Investment;

     (9) the licensing of intellectual property or other general intangibles to third
persons on customary terms in the ordinary course of business;

     (10) the sale, lease, sublease, license, sublicense, consignment, conveyance or other
disposition of inventory not constituting Collateral in the ordinary course of business,
including leases with respect to facilities that are temporarily not in use or pending their
disposition, or accounts receivable in connection with the compromise, settlement or
collection thereof;

     (11) dispositions of accounts receivable and related assets to a Receivables Entity in
connection with a Qualified Receivables Transaction;

     (12) a disposition of leasehold improvements or leased assets in connection with the
termination of any operating lease;

     (13) dispositions of receivables in connection with the compromise, settlement or
collection thereof in the ordinary course of business or in bankruptcy or similar
proceedings and exclusive factoring or similar arrangements;

     (14) any sale of Equity Interests in, or other ownership interests in or assets or
property, including Indebtedness, or other securities of, an Unrestricted Subsidiary;

     (15) (A) any exchange of assets (including a combination of assets and Cash
Equivalents) for assets related to a Permitted Business of comparable or greater market
value or usefulness to the business of the Issuer and the Restricted Subsidiaries as a
whole, as determined in good faith by the Issuer, and (B) in the ordinary course of
business, any swap of assets, or lease, assignment or sublease of any real or personal
property, in exchange for services (including in connection with any outsourcing
arrangements) of comparable or greater value or usefulness to the business of the Issuer and
the Restricted Subsidiaries as a whole, as determined in good faith by the Issuer; provided
that if the assets transferred pursuant to this clause (15) are Notes Priority Collateral
the assets received in exchange therefor shall be Notes Priority Collateral;

     (16) any sale, conveyance or other disposition of assets of any Restricted Subsidiary
that is not a Wholly owned Restricted Subsidiary, except to the extent that the proceeds
thereof are distributed to the Issuer or a Wholly owned Restricted Subsidiary;

     (17) any foreclosure or any similar action with respect to the property or other assets
of the Issuer or any Restricted Subsidiary;

     (18) any sale, conveyance or other disposition of property or assets of the Issuer or
any Restricted Subsidiary (whether in a single transaction or a series of related
transactions) in connection with and pursuant to the Plans of Reorganization; and

     (19) the creation of or realization on a Lien to the extent that the granting of such
Lien was not in violation of Section 4.12.

     “Assumption” means the satisfaction of each of the conditions set forth in Section 5(a) of the
Escrow Agreement and the merger of the Escrow Issuer with and into the Company, with the Company
continuing as the surviving corporation.

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     “Attributable Debt” in respect of a sale and leaseback transaction means, at the time of
determination, the present value of the obligation of the lessee for net rental payments during the
remaining term of the lease included in such sale and leaseback transaction including any period
for which such lease has been extended or may, at the option of the lessor, be extended. Such
present value shall be calculated using a discount rate equal to the rate of interest implicit in
such transaction, determined in accordance with Applicable Accounting Standards; provided, however,
that if such sale and leaseback transaction results in a Capital Lease Obligation, the amount of
Indebtedness represented thereby will be determined in accordance with the definition of “Capital
Lease Obligation.”

     “Augusta” means Augusta Newsprint Company, a Georgia partnership, and its successors.

     “Bankruptcy Courts” means each of the United States Bankruptcy Court for the District of
Delaware and the Superior Court of Quebec in Canada.

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

     “Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under
the Exchange Act, except that in calculating the beneficial ownership of any particular “person”
(as that term is used in Section 13(d)(3) of the Exchange Act), such “person” will be deemed to
have beneficial ownership of all securities that such “person” has the right to acquire by
conversion or exercise of other securities, whether such right is currently exercisable or is
exercisable only after the passage of time. The terms “Beneficially Owns” and “Beneficially Owned”
have a corresponding meaning.

     “BIA” means the Bankruptcy and Insolvency Act (Canada).

     “Board of Directors” means:

     (1) with respect to a corporation, the board of directors of the corporation or any
committee thereof duly authorized to act on behalf of such board;

     (2) with respect to a partnership, the Board of Directors of the general partner of the
partnership;

     (3) with respect to a limited liability company, the managing member or members or any
controlling committee of managing members thereof; and

     (4) with respect to any other Person, the board or committee of such Person serving a
similar function.

     “Borrowing Base” means, as of any date, an amount equal to:

     (1) the excess, if positive, of (x) 85% of the face amount of all accounts receivable
owned by the Issuer and its Restricted Subsidiaries as of the end of the most recent fiscal
quarter preceding such date over (y) $125.0 million; plus

     (2) the excess, if positive, of (x) 65% of the book value of all Eligible Inventory
owned by the Issuer and its Restricted Subsidiaries as of the end of the most recent fiscal
quarter preceding such date over (y) $25.0 million.

     “Broker-Dealer” has the meaning set forth in the Registration Rights Agreement.

-5-

 

     “Business Day” means any day other than a Legal Holiday.

     “Capital Lease Obligation” means, at the time any determination is to be made, the amount of
the liability in respect of a capital lease that would at that time be required to be capitalized
on a balance sheet prepared in accordance with Applicable Accounting Standards, and the Stated
Maturity thereof shall be the date of the last payment of rent or any other amount due under such
lease prior to the first date upon which such lease may be prepaid by the lessee without payment of
a penalty.

     “Capital Stock” means:

     (1) in the case of a corporation, corporate stock;

     (2) in the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate stock;

     (3) in the case of a partnership or limited liability company, partnership interests
(whether general or limited) or membership interests; and

     (4) any other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing Person, but
excluding from all of the foregoing any debt securities convertible into Capital Stock,
whether or not such debt securities include any right of participation with Capital Stock.

     “Cash Equivalents” means:

     (1) United States dollars and Canadian dollars or any other currency freely convertible
into United States or Canadian dollars;

     (2) securities issued or directly and fully guaranteed or insured by the Canadian or
United States government or any agency or instrumentality of the Canadian or United States
government (provided that the full faith and credit of Canada or the United States is
pledged in support of those securities) having maturities of not more than six months from
the date of acquisition;

     (3) certificates of deposit and eurodollar time deposits with maturities of six months
or less from the date of acquisition, bankers’ acceptances with maturities not exceeding six
months and overnight bank deposits, in each case, with any lender party to the ABL Credit
Agreement or with any Canadian or United States commercial bank having capital and surplus
in excess of $500.0 million and a Thomson Bank Watch Rating of “B” or better;

     (4) repurchase obligations with a term of not more than seven days for underlying
securities of the types described in clauses (2) and (3) above entered into with any
financial institution meeting the qualifications specified in clause (3) above;

     (5) commercial paper having one of the two highest ratings categories (without regard
to any gradations or qualifiers within any rating category) obtainable from Moody’s or S&P
and, in each case, maturing within nine months after the date of acquisition;

     (6) securities issued by any state of the United States of America, any province of
Canada or any political subdivision or any public instrumentality of any such state or
province maturing within one year from the date of acquisition thereof and at the time of
acquisition the-

-6-

 

reof, having one of the two highest ratings categories (without regard to any
gradations or qualifiers within any rating category) obtainable from either S&P or Moody’s;

     (7) money market funds at least 95% of the assets of which constitute Cash Equivalents
of the kinds described in clauses (1) through (6) of this definition; and

     (8) local currencies held by the Issuer or any of its Restricted Subsidiaries, from
time to time in the ordinary course of business and consistent with past practice.

     “Casualty or Condemnation Event” means any taking under power of eminent domain or similar
proceeding and any insured loss, in each case, relating to property or other assets that
constituted Collateral.

     “CCAA” means the Companies’ Creditors Arrangement Act (Canada).

     “Change of Control” means the occurrence of any of the following:

     (1) the direct or indirect sale, lease, transfer, conveyance or other disposition
(other than by way of merger or consolidation), in one or a series of related transactions,
of all or substantially all of the properties or assets of the Issuer and its Subsidiaries
taken as a whole to any “person” (as that term is used in Section 13(d)(3) of the Exchange
Act);

     (2) the adoption of a plan relating to the liquidation or dissolution of the Issuer
(other than a plan of liquidation of the Issuer that is a liquidation for tax purposes
only);

     (3) the consummation of any transaction (including, without limitation, any merger or
consolidation), the result of which is that any “person” (as defined above) becomes the
Beneficial Owner, directly or indirectly, of more than 50% of the Voting Stock of the
Issuer, measured by voting power rather than number of shares;

     (4) the Issuer consolidates with, or merges with or into, any Person, or any Person
consolidates with, or merges with or into, the Issuer, in any such event pursuant to a
transaction in which any of the outstanding Voting Stock of the Issuer or such other Person
is converted into or exchanged for cash, securities or other property, other than any such
transaction where the Voting Stock of the Issuer outstanding immediately prior to such
transaction constitutes or is converted into or exchanged for a majority of the outstanding
 shares of the Voting Stock of such surviving or transferee Person (immediately after giving
effect to such transaction); or

     (5) the first day on which a majority of the members of the Board of Directors of the
Issuer are not Continuing Directors.

     Notwithstanding the foregoing: (A) any holding company whose only significant asset is Equity
Interests of the Issuer or any of its direct or indirect parent companies shall not itself be
considered a “person” or “group” for purposes of clause (2) above; (B) the transfer of assets
between or among the Guarantors and the Issuer shall not itself constitute a Change of Control; (C)
the term “Change of Control” shall not include a merger or consolidation of the Issuer with, or the
sale, assignment, conveyance, transfer, lease or other disposition of all or substantially all of
the Issuer’s assets to, an Affiliate incorporated or organized solely for the purpose of
reincorporating or reorganizing the Issuer in another jurisdiction and/or for the sole purpose of
forming or collapsing a holding company structure; and (D) a “person” or “group” shall not be
deemed to have beneficial ownership of securities subject to a stock purchase agree-

-7-

 

ment, merger agreement or similar agreement (or voting or option agreement related thereto)
until the consummation of the transactions contemplated by such agreement.

     “Clearstream” means Clearstream Banking, S.A.

     “Collateral” has the meaning given such term by the Intercreditor Agreement.

     “Collateral Agent” means the Trustee, in its capacity as collateral agent for the Holders of
Notes and holders of Permitted Additional Pari Passu Obligations, together with its successors in
such capacity.

     “Collateral Proceeds Account” means a deposit account or securities account established by the
Collateral Agent for purposes of holding the Net Proceeds of Notes Priority Collateral pending
release in accordance with Section 13.08.

     “Company” means AbitibiBowater Inc., a Delaware corporation, and any successor in interest
thereto.

     “Consolidated Cash Flow” means, with respect to any specified Person for any period, the
Consolidated Net Income of such Person for such period plus, without duplication:

     (1) provision for taxes based on income or profits of such Person and its Restricted
Subsidiaries for such period, to the extent that such provision for taxes was deducted in
computing such Consolidated Net Income; plus

     (2) the Fixed Charges of such Person and its Restricted Subsidiaries for such period,
to the extent that such Fixed Charges were deducted in computing such Consolidated Net
Income; plus

     (3) depreciation, amortization (including amortization of intangibles, deferred
financing fees, debt incurrence costs, commissions, fees and expenses, but excluding
amortization of prepaid cash expenses that were paid in a prior period), depletion and other
non-cash expenses or charges (including any write-offs of debt issuance or deferred
financing costs or fees and impairment charges and the impact on depreciation and
amortization of purchase accounting, but excluding any such non-cash expense to the extent
that it represents an accrual of or reserve for cash expenses in any future period or
amortization of a prepaid cash expense that was paid in a prior period) of such Person and
its Restricted Subsidiaries for such period to the extent that such depreciation,
amortization and other non-cash expenses or charges were deducted in computing such
Consolidated Net Income; plus

     (4) the amount of net loss resulting from the payment of any premiums, fees or similar
amounts that are required to be paid under the terms of the instrument(s) governing any
Indebtedness upon the repayment, prepayment or other extinguishment of such Indebtedness in
accordance with the terms of such Indebtedness; plus

     (5) business optimization expenses and other restructuring charges, reserves or
expenses (which, for the avoidance of doubt, shall include, without limitation, the effect
of inventory optimization programs, facility consolidations, retention, headcount
reductions, systems establishment costs, contract termination costs, future lease
commitments and excess pension charges) in an amount not to exceed $50.0 million for any
four fiscal quarter period; plus

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     (6) nonrecurring charges or expenses made or incurred in connection with any
restructuring, and transaction costs incurred in connection with any acquisition, in each
case to the extent deducted in computing such Consolidated Net Income; plus

     (7) any impairment charges or asset write-offs, in each case pursuant to Applicable
Accounting Standards, and the amortization of intangibles arising pursuant to Applicable
Accounting Standards; plus

     (8) any expenses incurred in connection with the ongoing administration of the Creditor
Protection Proceedings; minus

     (9) non-cash items increasing such Consolidated Net Income for such period, other than
the accrual of revenue in the ordinary course of business,

in each case, on a consolidated basis and determined in accordance with Applicable Accounting
Standards.

     Notwithstanding the preceding, the provision for taxes based on the income or profits of, and
the depreciation and amortization and other non-cash expenses of, a Restricted Subsidiary of the
Issuer will be added to Consolidated Net Income to compute Consolidated Cash Flow of the Issuer
only to the extent that a corresponding amount would be permitted at the date of determination to
be dividended to the Issuer by such Restricted Subsidiary without prior governmental approval (that
has not been obtained), and without direct or indirect restriction pursuant to the terms of its
charter and all agreements, instruments, judgments, decrees, orders, statutes, rules and
governmental regulations applicable to that Restricted Subsidiary or its stockholders.

     “Consolidated Net Income” means, with respect to any specified Person for any period, the
aggregate of the net income (loss) of such Person and its Restricted Subsidiaries for such period,
on a consolidated basis determined in accordance with Applicable Accounting Standards and without
any reduction in respect of preferred stock dividends; provided that:

     (1) all extraordinary gains and losses and all gains and losses realized in connection
with any Asset Sale or the disposition of securities or the early extinguishment of
Indebtedness or Hedging Obligations, together with any related provision for taxes on any
such gain, will be excluded;

     (2) the net income (or loss) of any Person that is not a Restricted Subsidiary or that
is accounted for by the equity method of accounting will be included only to the extent of
the amount of dividends or similar distributions paid in cash to the specified Person or a
Restricted Subsidiary of the Person;

     (3) the net income (or loss) of any Restricted Subsidiary will be excluded to the
extent that the declaration or payment of dividends or similar distributions by that
Restricted Subsidiary of that net income is not at the date of determination permitted
without any prior governmental approval (that has not been obtained) or, directly or
indirectly, by operation of the terms of its charter or any agreement, instrument, judgment,
decree, order, statute, rule or governmental regulation applicable to that Restricted
Subsidiary or its stockholders; provided that for purposes of determining Consolidated Cash
Flow, the net income of any such Restricted Subsidiary that is a Guarantor will be included;

     (4) the cumulative effect of a change in accounting principles will be excluded;

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     (5) notwithstanding clause (2) above, the net income of any Unrestricted Subsidiary
will be excluded to the extent received by the specified Person or one of its Restricted
Subsidiaries;

     (6) any restoration to or deduction from income related to the post-emergence
settlement of pre-petition claims obligations in relation to Creditor Protection Proceedings
following the Issue Date will be excluded provided such obligations are payable as expressly
contemplated in the Plans of Reorganization;

     (7) any charges or credits relating to any purchase accounting adjustments or any
non-cash reorganization expenses (including, without limitation, expenses incurred after the
Release Date in connection with the Plans of Reorganization) or charges resulting from the
adoption of fresh start accounting principles will be excluded;

     (8) (i) any (a) one-time non-cash compensation charges, (b) non-cash costs or expenses
resulting from stock option plans, employee benefit plans, compensation charges or
postemployment benefit plans, or grants or awards of stock, stock appreciation or similar
rights, stock options, restricted stock, preferred stock or other rights and (c) write-offs
or write-downs of goodwill will be excluded and (ii) any asset impairment charge (other than
impairments of goodwill) shall be recognized on a straight line basis over the ten year
period commencing with the date such charges would otherwise be recognized in accordance
with Applicable Accounting Standards;

     (9) any gain or loss for such period from currency translation gains or losses or net
gains or losses related to currency remeasurements of Indebtedness (including any net loss
or gain resulting from Hedging Obligations for currency exchange risk entered in relation
with Indebtedness) will be excluded;

     (10) any unrealized net after-tax income (loss) from Hedging Obligations or cash
management Obligations and the application of Accounting Standards Codification Topic 815
“Derivatives and Hedging” or from other derivative instruments shall be excluded;

     (11) non-cash interest expense resulting from the application of Accounting Standards
Codification Topic 470-20 “Debt–Debt with Conversion Options–Recognition” shall be
excluded;

     (12) any charges resulting from the application of Accounting Standards Codification
Topic 805 “Business Combinations,” Accounting Standards Codification Topic 350
“Intangibles–Goodwill and Other,” Accounting Standards Codification Topic 360-10-35-15
“Impairment or Disposal of Long-Lived Assets,” Accounting Standards Codification Topic
480-10-25-4 “Distinguishing Liabilities from Equity–Overall–Recognition” or Accounting
Standards Codification Topic 820 “Fair Value Measurements and Disclosures” shall be
excluded; and

     (13) the amortization or write-off of financing fees in connection with the
Transactions shall be excluded.

     “Consolidated Priority Debt” means, as of any date of determination, an amount, without
duplication, equal to the aggregate principal amount of (i) all outstanding Indebtedness of the
Issuer and the Guarantors as of such date that is secured by a Permitted Lien pursuant to clauses
(1), (2), (4), (5), (7), (8), (13) (to the extent representing a refinancing of Indebtedness
otherwise described in this clause (i)),

-10-

 

(28), (37) and (38) of the definition thereof plus (ii) all outstanding Indebtedness of
Restricted Subsidiaries that are not Guarantors as of such date.

     “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of the Issuer who:

     (1) was a member of such Board of Directors on the Issue Date; or

     (2) was nominated for election or elected to such Board of Directors with the approval
of a majority of the Continuing Directors who were members of such Board of Directors at the
time of such nomination or election.

     “Corporate Trust Office of the Trustee” will be at the address of the Trustee specified in
Section 14.02 or such other address as to which the Trustee may give notice to the Issuer.

     “Credit Facilities” means one or more debt facilities or commercial paper facilities
(including without limitation the credit facilities provided under the ABL Credit Agreement), in
each case, with banks or other lenders or credit providers or a trustee providing for revolving
credit loans, term loans, receivables financing (including through the sale of receivables to such
lenders or to special purpose entities formed to borrow from such lenders against such
receivables), bankers’ acceptances, letters of credit or issuances of senior secured notes,
including any related notes, guarantees, collateral documents, instruments, documents and
agreements executed in connection therewith and in each case, as amended, restated, modified,
renewed, extended, supplemented, restructured, refunded, replaced in any manner (whether upon or
after termination or otherwise) or refinanced (including, in each case, by means of sales of debt
securities to institutional investors) in whole or in part from time to time, in one or more
instances and including any amendment increasing the amount of Indebtedness incurred or available
to be borrowed thereunder, extending the maturity of any Indebtedness incurred thereunder or
contemplated thereby or deleting, adding or substituting one or more parties thereto (whether or
not such added or substituted parties are banks or other institutional lenders), including into one
or more separate instruments or facilities, in each case, whether any such amendment, restatement,
modification, renewal, extension, supplement, restructuring, refunding, replacement or refinancing
occurs simultaneously or not with the termination or repayment of a prior Credit Facility.

     “Creditor Protection Proceedings” has the meaning set forth in the Offering Memorandum.

     “Custodian” means the Trustee, as custodian with respect to the Notes in global form, or any
successor entity thereto.

     “Default” means any event that is, or with the passage of time or the giving of notice or both
would be, an Event of Default.

     “Definitive Note” means a certificated Note registered in the name of the Holder thereof and
issued in accordance with Section 2.06, substantially in the form of Exhibit A hereto except that
such Note shall not bear the Global Note Legend and shall not have the “Schedule of Exchanges of
Interests in the Global Note” attached thereto.

     “Depositary” means, with respect to the Notes issuable or issued in whole or in part in global
form, the Person specified in Section 2.03 as the Depositary with respect to the Notes, and any and
all successors thereto appointed as depositary hereunder and having become such pursuant to the
applicable provision of this Indenture.

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     “Designated Non-cash Consideration” means the Fair Market Value of non-cash consideration
received by the Issuer or any of its Restricted Subsidiaries in connection with an Asset Sale that
is so designated as Designated Non-cash Consideration pursuant to an Officer’s Certificate
delivered to the Trustee, setting forth the basis of such valuation.

     “Disqualified Stock” means any Capital Stock that, by its terms (or by the terms of any
security into which it is convertible, or for which it is exchangeable, in each case, at the option
of the holder of the Capital Stock), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the option of the
holder of the Capital Stock, in whole or in part, on or prior to the date that is 91 days after the
date on which the Notes mature. Notwithstanding the preceding sentence, any Capital Stock that
would constitute Disqualified Stock solely because the holders of the Capital Stock have the right
to require the Issuer to repurchase such Capital Stock upon the occurrence of a Change of Control
or an Asset Sale will not constitute Disqualified Stock if the terms of such Capital Stock provide
that the Issuer may not repurchase or redeem any such Capital Stock pursuant to such provisions
unless such repurchase or redemption complies with Section 4.07. The amount of Disqualified Stock
deemed to be outstanding at any time for purposes of this Indenture will be the maximum amount that
the Issuer and its Restricted Subsidiaries may become obligated to pay upon the maturity of, or
pursuant to any mandatory redemption provisions of, such Disqualified Stock, exclusive of accrued
dividends.

     “Eligible Inventory” means all inventory other than inventory that would be classified as
“Mill Stores and other supplies” in accordance with the standards set forth in the footnotes to the
Company’s financial statements included in the Offering Memorandum.

     “Equity Interests” means Capital Stock and all warrants, options or other rights to acquire
Capital Stock (but excluding any debt security that is convertible into, or exchangeable for,
Capital Stock).

     “Escrow Agent” means Wells Fargo Bank, National Association, as escrow agent under the Escrow
Agreement or any successor escrow agent as set forth in the Escrow Agreement.

     “Escrow Agreement” means the Escrow Agreement dated as of the Issue Date, among the Company,
the Escrow Issuer, the Trustee and the Escrow Agent, as amended, supplemented, modified, extended,
renewed, restated or replaced in whole or in part from time to time.

     “Escrow End Date” means December 31, 2010.

     “Escrow Investment” means (1) Treasury Securities, (2) investments in time deposit accounts,
certificates of deposit and money market deposits maturing no later than the Escrow End Date in
each case, entitled to U.S. Federal deposit insurance for the full amount thereof or issued by a
bank or trust company (including the Escrow Agent or an affiliate of the Escrow Agent) which is
organized under the laws of the United States of America or any State thereof having capital,
surplus and undivided profits aggregating in excess of $500.0 million and (3) repurchase
obligations maturing no later than the Escrow End Date entered into with a nationally recognized
broker-dealer, with respect to which the purchase securities are Obligations issued or guaranteed
by the United States government or any agency thereof, which repurchase Obligations shall be
entered into pursuant to written agreements.

     “Escrow Property” has the meaning set forth in the Escrow Agreement.

     “Euroclear” means Euroclear Bank, S.A./N.V., as operator of the Euroclear system.

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

-12-

 

     “Exchange Offer” has the meaning set forth in the Registration Rights Agreement.

     “Exchange Offer Registration Statement” has the meaning set forth in the Registration Rights
Agreement.

     “Excluded Assets” has the meaning set forth in the Security Agreement.

     “Excluded Proceeds” means the net proceeds from the sale of Specified Assets by the Issuer or
any of its Subsidiaries, during the period commencing on the Release Date and ending on the date
that is six months thereafter.

     “Existing Indebtedness” means all Indebtedness of the Issuer and its Subsidiaries (other than
Indebtedness under the ABL Credit Agreement) in existence on the Issue Date, until such amounts are
repaid.

     “Existing Restricted Subsidiary JV” means Calhoun Newsprint Company and Bowater Mersey Paper
Company, Ltd., in each case for so long as it is not a Wholly owned Restricted Subsidiary.

     “Fair Market Value” means the value that would be paid by a willing buyer to an unaffiliated
willing seller in a transaction not involving distress or necessity of either party, determined in
good faith by (unless otherwise provided in this Indenture) (i) if such Fair Market Value is less
than $20.0 million, the Chief Financial Officer of the Issuer and (ii) if such Fair Market Value is
$20.0 million or greater, the Board of Directors of the Issuer.

     “First Priority Obligations” means the Note Obligations and the Additional Pari Passu
Obligations.

     “Fixed Charge Coverage Ratio” means with respect to any specified Person for any period, the
ratio of the Consolidated Cash Flow of such Person for such period to the Fixed Charges of such
Person for such period. In the event that the specified Person or any of its Restricted
Subsidiaries incurs, assumes, guarantees, repays, repurchases, redeems, defeases or otherwise
discharges any Indebtedness (other than ordinary working capital borrowings) or issues, repurchases
or redeems preferred stock subsequent to the commencement of the period for which the Fixed Charge
Coverage Ratio is being calculated and on or prior to the date on which the event for which the
calculation of the Fixed Charge Coverage Ratio is made (the “Calculation Date”), then the Fixed
Charge Coverage Ratio will be calculated giving pro forma effect, in the good-faith judgment of the
Chief Financial Officer of the Issuer, to such incurrence, assumption, Guarantee, repayment,
repurchase, redemption, defeasance or other discharge of Indebtedness, or such issuance, repurchase
or redemption of preferred stock, and the use of the proceeds therefrom, as if the same had
occurred at the beginning of the applicable four-quarter reference period.

     In addition, for purposes of calculating the Fixed Charge Coverage Ratio:

     (1) acquisitions, dispositions, discontinued operations or other operational changes
that have been made by the specified Person or any of its Restricted Subsidiaries, including
through Investments, mergers or consolidations, or any Person or any of its Restricted
Subsidiaries acquired by the specified Person or any of its Restricted Subsidiaries, and
including all related financing transactions and including increases in ownership of
Restricted Subsidiaries, during the four-quarter reference period or subsequent to such
reference period and on or prior to the Calculation Date, or that are to be made on the
Calculation Date, will be given pro forma effect, in the good-faith judgment of the Chief
Financial Officer of the Issuer, as if they had occurred on the first day of the
four-quarter reference period, and such pro forma calculations may reflect operat-

-13-

 

ing expense reductions and other operating improvements or synergies expected to result
from the applicable event based on actions to be taken within 12 months after the relevant
event (to the extent set forth in an Officer’s Certificate in reasonable detail, including
the cost and timing of such expense reductions or other operating improvements or
synergies), in each case, net of all costs required to achieve such expense reduction or
other operating improvement or synergy;

     (2) the Consolidated Cash Flow attributable to discontinued operations, as determined
in accordance with Applicable Accounting Standards, and operations or businesses (and
ownership interests therein) disposed of prior to the Calculation Date, will be excluded;

     (3) the Fixed Charges attributable to discontinued operations, as determined in
accordance with Applicable Accounting Standards, and operations or businesses (and ownership
interests therein) disposed of prior to the Calculation Date, will be excluded, but only to
the extent that the obligations giving rise to such Fixed Charges will not be obligations of
the specified Person or any of its Restricted Subsidiaries following the Calculation Date;

     (4) any Person that is a Restricted Subsidiary on the Calculation Date will be deemed
to have been a Restricted Subsidiary at all times during such four-quarter period;

     (5) any Person that is not a Restricted Subsidiary on the Calculation Date will be
deemed not to have been a Restricted Subsidiary at any time during such four-quarter period;
and

     (6) if any Indebtedness bears a floating rate of interest, the interest expense on such
Indebtedness will be calculated as if the rate in effect on the Calculation Date had been
the applicable rate for the entire period (taking into account any Hedging Obligation
applicable to such Indebtedness if such Hedging Obligation has a remaining term as at the
Calculation Date in excess of 12 months).

     “Fixed Charges” means, with respect to any specified Person for any period, the sum, without
duplication, of:

     (1) the consolidated interest expense of such Person and its Restricted Subsidiaries
for such period, whether paid or accrued, including, without limitation, amortization of
original issue discount, non-cash interest payments, the interest component of any deferred
payment obligations, the interest component of all payments associated with Capital Lease
Obligations, imputed interest with respect to Attributable Debt, commissions, discounts,
yield and other fees and charges (including interest) incurred in connection with any
Qualified Receivables Transaction or any other transaction pursuant to which the Issuer or
any of its Subsidiaries may sell, convey or otherwise transfer or grant a security interest
in any accounts receivable or related assets of the type specified in the definition of
“Qualified Receivables Transaction” and net of the effect of all payments made or received
pursuant to Hedging Obligations in respect of interest rates; provided that the amortization
or write-off of deferred financing fees shall be excluded from Fixed Charges; plus

     (2) the product of (A) all dividends, whether paid or accrued and whether or not in
cash, on any series of Disqualified Stock of the Issuer or preferred stock of any Restricted
Subsidiaries, other than dividends on Equity Interests payable solely in Equity Interests of
the Issuer (other than Disqualified Stock) or to the Issuer or a Restricted Subsidiary of
the Issuer, times (B) a fraction, the numerator of which is one and the denominator of which
is one minus the then current combined federal, state and local statutory tax rate of such
Person, expressed as a decimal, in

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each case, determined on a consolidated basis in accordance with Applicable Accounting
Standards.

     Notwithstanding the foregoing, any charges arising from (i) the application of Accounting
Standards Codification Topic 480-10-25-4 “Distinguishing Liabilities from
Equity–Overall–Recognition” to any series of preferred stock other than Disqualified Stock or
(ii) the application of Accounting Standards Codification Topic 470-20 “Debt–Debt with Conversion
Options–Recognition,” in each case, shall be disregarded in the calculation of Fixed Charges.

     “Foreign Subsidiary” means, with respect to any Person, any Subsidiary of such Person that is
not a U.S. Subsidiary and any Subsidiary of such a Subsidiary, whether or not a U.S. Subsidiary.

     “Global Note Legend” means the legend set forth in Section 2.06(g)(2), which is required to be
placed on all Global Notes issued under this Indenture.

     “Global Notes” means, individually and collectively, each of the Restricted Global Notes and
the Unrestricted Global Notes deposited with or on behalf of and registered in the name of the
Depositary or its nominee, substantially in the form of Exhibit A hereto and that bears the Global
Note Legend and that has the “Schedule of Exchanges of Interests in the Global Note” attached
thereto, issued in accordance with Section 2.01, 2.06(b)(3), 2.06(b)(4), 2.06(d)(2) or 2.06(f).

     “Government Securities” means securities that are:

     (1) direct obligations of the United States of America for the timely payment of which
its full faith and credit is pledged, or

     (2) obligations of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United States of
America, which, in each case, are not callable or redeemable at the option of the issuer
thereof, and shall also include a depository receipt issued by a bank (as defined in Section
3(a)(2) of the Securities Act) as custodian with respect to any such U.S. government
obligations or a specific payment of principal of or interest on any such U.S. government
obligations held by such custodian for the account of the holder of such depository receipt;
provided, however, that (except as required by law) such custodian is not authorized to make
any deduction from the amount payable to the holder of such depository receipt from any
amount received by the custodian in respect of the U.S. government obligations or the
specific payment of principal of or interest on the U.S. government obligations evidenced by
such depository receipt.

     “Guarantee” means a guarantee other than by endorsement of negotiable instruments for
collection in the ordinary course of business, direct or indirect, in any manner including, without
limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements
in respect thereof, of all or any part of any Indebtedness (whether arising by virtue of
partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or
services, to take or pay or to maintain financial statement conditions or otherwise).

     “Guarantors” means any Restricted Subsidiary of the Issuer that executes a Note Guarantee in
accordance with the provisions of this Indenture, and their respective successors and assigns, in
each case, until the Note Guarantee of such Person has been released in accordance with the
provisions of Section 10.05.

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     “Hedging Obligations” means, with respect to any specified Person, the obligations of such
Person under:

     (1) interest rate swap agreements (whether from fixed to floating or from floating to
fixed), interest rate cap agreements and interest rate collar agreements;

     (2) other agreements or arrangements designed to manage interest rates or interest rate
risk; and

     (3) other agreements or arrangements designed to protect such Person against
fluctuations in currency exchange rates or commodity prices.

     “Holder” means a Person in whose name a Note is registered.

     “IAI Global Note” means a Global Note substantially in the form of Exhibit A hereto bearing
the Global Note Legend and the Private Placement Legend and deposited with or on behalf of and
registered in the name of the Depositary or its nominee that will be issued in a denomination equal
to the outstanding principal amount of the Notes sold to Institutional Accredited Investors.

     “IFRS” means the International Financial Reporting Standards, as promulgated by the
International Accounting Standards Board (or any successor board or agency), as in effect on the
date of the election, if any, by the Issuer to change Applicable Accounting Standards to IFRS.

     “Indebtedness” means, with respect to any specified Person, any indebtedness of such Person
(excluding accrued expenses and trade payables), whether or not contingent:

     (1) in respect of borrowed money;

     (2) evidenced by bonds, notes, debentures or similar instruments or letters of credit
(or reimbursement agreements in respect thereof);

     (3) in respect of banker’s acceptances;

     (4) representing Capital Lease Obligations or Attributable Debt in respect of sale and
leaseback transactions;

     (5) representing the balance deferred and unpaid of the purchase price of any property
or services due more than six months after such property is acquired or such services are
completed but excluding other accrued liabilities being contested in good faith by
appropriate proceedings promptly instituted and diligently conducted; or

     (6) representing any Hedging Obligations,

if and to the extent any of the preceding items would appear as a liability upon a balance sheet
(excluding the footnotes) of the specified Person prepared in accordance with Applicable Accounting
Standards. In addition, the term “Indebtedness” includes all Indebtedness of others secured by a
Lien on any asset of the specified Person (whether or not such Indebtedness is assumed by the
specified Person), except for any pledge of the Equity Interests of an Unrestricted Subsidiary as
permitted by clause (20) of the definition of “Permitted Liens,” and, to the extent not otherwise
included, the Guarantee by the specified Person of any Indebtedness of any other Person as shall
equal the lesser of (x) the Fair Market Value of such asset

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as of the date of determination or (y) the amount of such Indebtedness and, to the extent not
otherwise included, the Guarantee by the specified Person of any Indebtedness of any other Person.

     Notwithstanding the foregoing, the term “Indebtedness” will not include (a) in connection with
the purchase by the Issuer or any of its Restricted Subsidiaries of any business, post-closing
payment adjustments to which the seller may become entitled to the extent such payment is
determined by a final closing balance sheet or such payment depends on the performance of such
business after the closing unless such payments are required under Applicable Accounting Standards
to appear as a liability on the balance sheet (excluding the footnotes); provided, however, that at
the time of closing, the amount of any such payment is not determinable and, to the extent such
payment thereafter becomes fixed and determined, the amount is paid within 30 days thereafter; (b)
contingent obligations incurred in the ordinary course of business and not in respect of borrowed
money; (c) deferred or prepaid revenues; or (d) purchase price holdbacks in respect of a portion of
the purchase price of an asset to satisfy warranty or other unperformed obligations of the
respective seller.

     “Indenture” means this Amended and Restated Indenture, as further amended or supplemented from
time to time.

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

     “Initial Notes” means the first $850.0 million aggregate principal amount of Notes issued
under this Indenture on the Issue Date.

     “Initial Purchasers” means J.P. Morgan Securities LLC, Barclays Capital Inc., Citigroup Global
Markets Inc., Wells Fargo Securities LLC, CIBC World Markets Corp., Scotia Capital (USA) Inc. and
BMO Capital Markets Corp.

     “Institutional Accredited Investor” means an institution that is an “accredited investor” as
defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act that is also not a QIB.

     “Intercreditor Agreement” means that certain intercreditor agreement, dated the Release Date,
among the Issuer, the Guarantors, the ABL Facility Collateral Agent and the Collateral Agent, as
amended, supplemented, restated, modified, renewed or replaced (whether upon or after termination
or otherwise), in whole or in part from time to time, or any other successor agreement and whether
among the same or any other parties.

     “Investments” means, with respect to any Person, all direct or indirect investments by such
Person in other Persons (including Affiliates) in the forms of loans (including Guarantees of
Indebtedness or other obligations), advances or capital contributions (excluding (i) commission,
travel and similar advances to officers and employees made in the ordinary course of business and
(ii) extensions of credit to customers or advances, deposits or payment to or with suppliers,
lessors or utilities or for workers’ compensation, in each case, that are incurred in the ordinary
course of business and recorded as accounts receivable, prepaid expenses or deposits on the balance
sheet of such Person prepared in accordance with Applicable Accounting Standards), purchases or
other acquisitions for consideration of Indebtedness, Equity Interests or other securities,
together with all items that are or would be classified as investments on a balance sheet prepared
in accordance with Applicable Accounting Standards. If the Issuer or any Restricted Subsidiary of
the Issuer sells or otherwise disposes of any Equity Interests of any direct or indirect Restricted
Subsidiary of the Issuer such that, after giving effect to any such sale or disposition, such
Person is no longer a Restricted Subsidiary of the Issuer, the Issuer will be deemed to have made
an Investment on the date of any such sale or disposition equal to the Fair Market Value of the
Issuer’s Investments in such

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Restricted Subsidiary that were not sold or disposed of in an amount determined as provided in
the final paragraph of Section 4.07(b). The acquisition by the Issuer or any Restricted Subsidiary
of the Issuer of a Person that holds an Investment in a third Person will be deemed to be an
Investment by the Issuer or such Restricted Subsidiary in such third Person in an amount equal to
the Fair Market Value of the Investments held by the acquired Person in such third Person in an
amount determined as provided in the final paragraph of Section 4.07(b). Except as otherwise
provided in this Indenture, the amount of an Investment will be determined at the time the
Investment is made and without giving effect to subsequent changes in value but giving effect
(without duplication) to all subsequent reductions in the amount of such Investment as a result of
(x) the repayment or disposition thereof for cash or (y) the redesignation of an Unrestricted
Subsidiary as a Restricted Subsidiary (valued proportionately to the equity interest in such
Unrestricted Subsidiary of the Issuer or such Restricted Subsidiary owning such Unrestricted
Subsidiary at the time of such redesignation) at the Fair Market Value of the net assets of such
Unrestricted Subsidiary at the time of such redesignation, in the case of clauses (x) and (y), not
to exceed the original amount, or Fair Market Value, of such Investment.

     “Issue Date” means October 4, 2010.

     “Issuer” means (i) prior to the Release Date, the Escrow Issuer and (ii) from and after the
Release Date, the Company and its successors.

     “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in the City
of New York or at a place of payment are authorized by law, regulation or executive order to remain
closed. If a payment date is a Legal Holiday at a place of payment, payment may be made at that
place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue on such
payment for the intervening period.

     “Lien” means, with respect to any asset, any mortgage, hypothecation, lien, pledge, charge,
security interest or encumbrance of any kind in respect of such asset, whether or not filed,
recorded or otherwise perfected under applicable law, including any conditional sale or other title
retention agreement, any lease in the nature thereof, any option or other agreement to sell or give
a security interest in; provided that in no event shall an operating lease, rights of set-off or
netting arrangements in the ordinary course of business be deemed to constitute a Lien.

     “Marketable Securities” means securities or securities entitlements that are capable of being
contributed to the Collateral Proceeds Account as security for the Note Obligations and that
otherwise constitute Cash Equivalents.

     “Moody’s” means Moody’s Investors Service, Inc. and its successors.

     “Net Proceeds” means the aggregate cash proceeds and Cash Equivalents received by the Issuer
or any of its Restricted Subsidiaries in respect of any Asset Sale or Casualty or Condemnation
Event (including, without limitation, any cash or Cash Equivalents received upon the sale or other
disposition of any non-cash consideration received in any Asset Sale), net of the direct costs
relating to such Asset Sale or Casualty or Condemnation Event, including, without limitation,
legal, accounting and investment banking fees, and sales commissions, any relocation expenses
incurred as a result of the Asset Sale or Casualty or Condemnation Event and taxes paid or payable
as a result of the Asset Sale or Casualty or Condemnation Event, in each case, after taking into
account, without duplication, (1) any available tax credits or deductions and any tax sharing
arrangements, and amounts required to be applied to the repayment of Indebtedness secured by a
Permitted Lien on the asset or assets that were the subject of such Asset Sale or Casualty or
Condemnation Event (other than ABL Obligations, Note Obligations and Permitted Additional Pari
Passu Obligations) and any reserve for adjustment in respect of the sale price of such asset or

-18-

 

assets established in accordance with Applicable Accounting Standards, (2) any reserve or
payment with respect to liabilities associated with such asset or assets and retained by the Issuer
or any of its Restricted Subsidiaries after such sale or other disposition thereof, including,
without limitation, severance costs, pension and other post-employment benefit liabilities and
liabilities related to environmental matters or against any indemnification obligations associated
with such transaction, and (3) any cash escrows in connection with purchase price adjustments,
reserves or indemnities (until released).

     “Non-Recourse Debt” means Indebtedness:

     (1) except for a pledge of the Equity Interest of an Unrestricted Subsidiary as
permitted by clause (20) of the definition of “Permitted Liens,” as to which neither the
Issuer nor any of its Restricted Subsidiaries (A) provides credit support of any kind
(including any undertaking, agreement or instrument that would constitute Indebtedness), (B)
is directly or indirectly liable as a guarantor or otherwise, or (C) constitutes the lender;

     (2) no default with respect to which (including any rights that the holders of the
Indebtedness may have to take enforcement action against an Unrestricted Subsidiary) would
permit upon notice, lapse of time or both any holder of any other Indebtedness of the Issuer
or any of its Restricted Subsidiaries to declare a default on such other Indebtedness or
cause the payment of the Indebtedness to be accelerated or payable prior to its Stated
Maturity; and

     (3) as to which the lenders have been notified in writing that they will not have any
recourse to the stock or assets of the Issuer or any of its Restricted Subsidiaries (other
than the Equity Interests of an Unrestricted Subsidiary);

in each case, except to the extent permitted by Section 4.07; provided, however, that Indebtedness
shall not cease to be Non-Recourse Debt solely by reason of pledge by the Issuer or any of its
Restricted Subsidiaries of Equity Interests of an Unrestricted Subsidiary of the Issuer or of a
Person that is not a Subsidiary of the Issuer or such Restricted Subsidiary if recourse is limited
to such Equity Interests.

     “Non-U.S. Person” means a Person who is not a U.S. Person.

     “Note Documents” means this Indenture, the Security Documents, the Notes and the Note
Guarantees.

     “Note Guarantee” means the Guarantee by each Guarantor of the Issuer’s obligations under this
Indenture and the Notes on the terms set forth in Article 10.

     “Note Liens” means all Liens in favor of the Collateral Agent on Collateral securing the Note
Obligations and any Permitted Additional Pari Passu Obligations.

     “Note Obligations” means the Obligations of the Issuer and any other obligor under this
Indenture or any of the other Note Documents, including any Guarantor, to pay principal, premium,
if any, and interest (including any interest accruing after the commencement of bankruptcy or
insolvency proceedings) when due and payable, and all other amounts due or to become due under or
in connection with this Indenture, the notes and the performance of all other Obligations to the
Trustee and the Holders under this Indenture and the Note Documents, according to the respective
terms thereof.

     “Notes” has the meaning assigned to it in the preamble to this Indenture. The Initial Notes
and the Additional Notes shall be treated as a single class for all purposes under this Indenture,
and unless the

-19-

 

context otherwise requires, all references to the Notes shall include the Initial Notes and
any Additional Notes.

     “Notes Priority Collateral” has the meaning set forth in the Intercreditor Agreement.

     “Obligations” means any principal, interest, penalties, fees, indemnifications,
reimbursements, damages and other liabilities payable under the documentation evidencing, securing
or otherwise relating to any Indebtedness.

     “Offering Memorandum” means the Confidential Offering Memorandum, dated as of September 20,
2010, relating to the Initial Notes.

     “Officer” means, with respect to any Person, the Chairman of the Board, the Chief Executive
Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer,
any Assistant Treasurer, the Controller, the Chief Legal Officer, the Secretary, any Assistant
Secretary or any Vice-President of such Person.

     “Officer’s Certificate” means a certificate signed on behalf of the Company by an Officer of
the Company, who must be the principal executive officer, the principal financial officer, the
treasurer or the principal accounting officer of the Company, that meets the requirements of
Section 14.05.

     “Opinion of Counsel” means an opinion from legal counsel who is reasonably acceptable to the
Trustee, that meets the requirements of Section 14.05. The counsel may be an employee of or
counsel to the Company, any Subsidiary of the Company or the Trustee. Such opinion may be subject
to customary assumptions, exceptions and qualifications.

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

     “Permitted Additional Pari Passu Obligations” means obligations under any Additional Notes or
any other Indebtedness (whether or not consisting of Additional Notes) secured by the Note Liens;
provided that, except in the case of Permitted Refinancing Indebtedness in respect of the Notes or
Permitted Additional Pari Passu Obligations, immediately after giving effect to the incurrence of
such Permitted Additional Pari Passu Obligations, the Priority Debt Leverage Ratio of the Issuer
and its Restricted Subsidiaries would be less than or equal to 2.0:1.0; provided that (i) the
trustee or agent under such Permitted Additional Pari Passu Obligation executes a joinder agreement
to the Security Agreement in the form attached thereto agreeing to be bound thereby and (ii) the
Issuer has designated such Indebtedness as “Permitted Additional Pari Passu Obligations” under the
Security Agreement.

     “Permitted Business” means any business engaged in by the Issuer or any of its Restricted
Subsidiaries on the Issue Date in the forest products, paper products, energy and recycling
industries (including, without limitation, the manufacturing and production of paper, packaging
products and wood pulp) and any business or other activities that are reasonably similar,
ancillary, complementary or related to, or a reasonable extension, development or expansion of, the
businesses in which the Issuer and its Restricted Subsidiaries are engaged on the Issue Date.

     “Permitted Escrow Investments” has the meaning set forth in the Escrow Agreement.

     “Permitted Hedging Obligations” means any Hedging Obligations that would constitute Permitted
Debt pursuant to clause (9) of the definition of “Permitted Debt.”

-20-

 

     “Permitted Investments” means:

     (1) any Investment in the Issuer or a Restricted Subsidiary; provided that such
Investment shall not consist of (A) a transfer of Notes Priority Collateral (other than
Equity Interests of a Restricted Subsidiary) unless such transfer is to the Issuer, a
Guarantor or to a Restricted Subsidiary domiciled in Canada and, in the case of such a
Restricted Subsidiary domiciled in Canada, the Issuer or Guarantor transferring such Notes
Priority Collateral receives assets in exchange with a similar Fair Market Value to such
transferred Notes Priority Collateral, which assets shall become Notes Priority Collateral,
or (B) Investments in Existing Restricted Subsidiary JVs;

     (2) any Investment in Cash Equivalents;

     (3) any Investment by the Issuer or any Restricted Subsidiary of the Issuer in a
Person, if as a result of such Investment:

     (A) such Person becomes a Restricted Subsidiary of the Issuer; or

     (B) such Person is merged, consolidated or amalgamated with or into, or
transfers or conveys substantially all of its assets to, or is liquidated into, the
Issuer or a Restricted Subsidiary of the Issuer (other than an Existing Restricted
Subsidiary JV unless the consideration for such transaction was paid solely by the
Existing Restricted Subsidiary JV);

     (4) any Investment made as a result of the receipt of non-cash consideration from an
Asset Sale that was made pursuant to and in compliance with Section 4.10 or from a sale or
other disposition of assets not constituting an Asset Sale;

     (5) any acquisition of assets or Capital Stock solely in exchange for the issuance of
Equity Interests (other than Disqualified Stock) of the Issuer;

     (6) any Investments received in compromise or resolution of (A) obligations of trade
creditors or customers that were incurred in the ordinary course of business of the Issuer
or any of its Restricted Subsidiaries, including pursuant to any plan of reorganization or
similar arrangement upon the bankruptcy or insolvency of any trade creditor or customer; or
(B) litigation, arbitration or other disputes;

     (7) Investments represented by Hedging Obligations;

     (8) loans and advances to officers, directors or employees (A) for business-related
travel expenses, moving expenses and other similar expenses, including as part of a
recruitment or retention plan, in each case incurred in the ordinary course of business or
consistent with past practice or to fund such Person’s purchase of Equity Interests of the
Issuer or any direct or indirect parent entity of the Issuer, (B) required by applicable
employment laws loans and (C) other loans and advances not to exceed $5.0 million at any one
time outstanding;

     (9) any Investment pursuant to the Plans of Reorganization or an Investment consisting
of any extension, modification or renewal of any such Investment; provided that the amount
of any such Investment may be increased (A) as required by the terms of such Investment
pursuant to the Plans of Reorganization or (B) as otherwise permitted under this Indenture;

-21-

 

     (10) repurchases of the Notes;

     (11) any Investment of the Issuer or any of its Restricted Subsidiaries existing on the
Issue Date, and any extension, modification or renewal of such existing Investments, to the
extent not involving any additional Investment other than as the result of the accrual or
accretion of interest or original issue discount or the issuance of pay-in-kind securities,
in each case, pursuant to the terms of such Investments as in effect on the Issue Date;

     (12) Guarantees otherwise permitted by this Indenture;

     (13) receivables owing to the Issuer or any of its Restricted Subsidiaries, prepaid
expenses, and lease, utility, workers’ compensation and other deposits, if created, acquired
or entered into in the ordinary course of business;

     (14) payroll, business-related travel, and similar advances to cover matters that are
expected at the time of such advances to be ultimately treated as expenses for accounting
purposes and that are made in the ordinary course of business;

     (15) Investments resulting from the acquisition of a Person, otherwise permitted by
this Indenture, which Investments at the time of such acquisition were held by the acquired
Person and were not acquired in contemplation of the acquisition of such Person;

     (16) reclassification of any Investment initially made in (or reclassified as) one form
into another (such as from equity to loan or vice versa); provided in each case that the
amount of such Investment is not increased thereby;

     (17) any Investment in any Subsidiary of the Issuer or any joint venture in the
ordinary course of business in connection with intercompany cash management arrangements or
related activities;

     (18) other Investments in any Person having an aggregate Fair Market Value (measured on
the date each such Investment was made and without giving effect to subsequent changes in
value), when taken together with all other Investments made pursuant to this clause (18)
that are at the time outstanding, not to exceed $100.0 million, net of any return of or on
such Investments received by the Issuer or any Restricted Subsidiary;

     (19) the acquisition by a Receivables Entity in connection with a Qualified Receivables
Transaction of Equity Interests of a trust or other Person established by such Receivables
Entity to effect such Qualified Receivables Transaction; and any other Investment by the
Issuer or a Restricted Subsidiary in a Receivables Entity or any Investment by a Receivables
Entity in any other Person in connection with a Qualified Receivables Transaction;

     (20) the pledge of the Equity Interests of an Unrestricted Subsidiary as security for
Indebtedness that is permitted by clause (20) of the definition of “Permitted Liens”; and

     (21) Investments in Existing Restricted Subsidiary JVs (A) consisting of sales in the
ordinary course on customary terms or (B) in an aggregate amount outstanding at any time not
to exceed $50.0 million, net of any return of or on such investment to the Issuer or a
Restricted Subsidiary that is not an Existing Restricted Subsidiary JV.

-22-

 

     “Permitted Liens” means:

     (1) any Liens held by the Collateral Agent securing the Initial Notes and the related
Note Guarantees (and any related Exchange Notes and Guarantees of the Exchange Notes);

     (2) any Lien with respect to the ABL Credit Agreement or any other Credit Facility so
long as the aggregate principal amount outstanding under the ABL Credit Agreement or any
successor Credit Facility does not exceed the principal amount which could be borrowed under
clause (1) of the definition of “Permitted Debt”;

     (3) Liens in favor of the Issuer or the Guarantors;

     (4) Liens on property of a Person existing at the time such Person becomes a Restricted
Subsidiary of the Issuer or is merged with or into or consolidated with the Issuer or any
Restricted Subsidiary of the Issuer; provided that such Liens were in existence prior to the
contemplation of such Person becoming a Restricted Subsidiary of the Issuer or such merger
or consolidation and do not extend to any assets other than those of the Person that becomes
a Restricted Subsidiary of the Issuer or is merged into or consolidated with the Issuer or a
Restricted Subsidiary of the Issuer;

     (5) Liens on property (including Capital Stock) existing at the time of acquisition of
the property by the Issuer or any Restricted Subsidiary of the Issuer (plus improvements and
accessions to such property or proceeds or distributions thereof); provided that such Liens
were in existence prior to such acquisition and not incurred in contemplation of such
acquisition;

     (6) Liens to secure the performance of tenders, completion guarantees, statutory
obligations, surety, environmental or appeal bonds, bids, leases, government contracts,
performance bonds or other obligations of a like nature incurred in the ordinary course of
business;

     (7) Liens to secure Indebtedness (including Capital Lease Obligations) or Attributable
Debt permitted by clause (5) of the definition of “Permitted Debt” covering only the assets
acquired with or financed by such Indebtedness (plus improvements and accessions to such
property or proceeds or distributions thereof);

     (8) Liens existing on the Issue Date;

     (9) Liens for taxes, assessments or governmental charges or claims that are not yet
delinquent or that are being contested in good faith by appropriate proceedings promptly
instituted and diligently concluded; provided that any reserve or other appropriate
provision as is required in conformity with Applicable Accounting Standards has been made
therefor;

     (10) Liens consisting of carriers’, warehousemen’s, landlord’s and mechanics’,
suppliers’, materialmen’s, repairmen’s and similar Liens not securing Indebtedness or in
favor of customs or revenue authorities or freight forwarders or handlers to secure payment
of customs duties, in each case, incurred in the ordinary course of business;

     (11) any state of facts an accurate survey would disclose, public and private roads,
timber cutting and hauling contracts, timber sales contracts, prescriptive easements or
adverse possession claims, minor encumbrances, easements or reservations of, or rights of
others for, pursuant to any leases, licenses, rights-of-way or other similar agreements or
arrangements, development, air or water rights, sewers, electric lines, telegraph and
telephone lines and other utility

-23-

 

lines, pipelines, service lines, railroad lines, improvements and structures located
on, over or under any property, drains, drainage ditches, culverts, electric power or gas
generating or co-generation, storage and transmission facilities and other similar purposes,
zoning or other restrictions as to the use of real property or minor defects in title, which
were not incurred to secure payment of Indebtedness and that do not in the aggregate
materially adversely affect the value of said properties or materially impair their use in
the operation of the business of such Person;

     (12) Liens on the assets of a Restricted Subsidiary that is not a Guarantor securing
Indebtedness or other obligations of such Restricted Subsidiary permitted by this Indenture;

     (13) Liens to secure any Permitted Refinancing Indebtedness permitted to be incurred
under this Indenture (other than the ABL Credit Agreement or the Notes); provided, however,
that the new Lien is limited to all or part of the same property and assets that secured or,
under the written agreements pursuant to which the original Lien arose, could secure the
original Lien (plus improvements and accessions to such property or proceeds or
distributions thereof);

     (14) Liens on real property consisting of public and private roads, timber cutting and
hauling contracts, timber sales contracts, prescriptive easements or adverse possession
claims, minor encumbrances, easements or reservations of, or rights of others for, pursuant
to any leases, licenses, rights-of-way or other similar agreements or arrangements,
development, air or water rights, sewers, electric lines, telegraph and telephone lines and
other utility lines, pipelines, service lines, railroad lines, improvements and structures
located on, over or under any property, drains, drainage ditches, culverts, electric power
or gas generating or co-generation, storage and transmission facilities and other similar
purposes, zoning or other restrictions as to the use of real property or minor defects in
title, which were not incurred to secure payment of Indebtedness and that do not in the
aggregate materially adversely affect the value of said properties or materially impair
their use in the operation of the business of the Issuer and its Restricted Subsidiaries;

     (15) Liens on specific items of inventory or other goods and proceeds of any Person
securing such Person’s obligations in respect of bankers’ acceptances, tender, bid,
judgment, appeal, performance or governmental contract bonds and completion guarantees,
surety, standby letters of credit and warranty and contractual service obligations of a like
nature, trade letters of credit and documentary letters of credit and similar bonds or
guarantees provided by the Issuer or any Subsidiary of the Issuer;

     (16) Liens incurred or pledges or deposits made in the ordinary course of business in
connection with workers’ compensation, unemployment insurance and other types of social
security and employee health and disability benefits, or casualty-liability insurance or
self-insurance or securing letters of credit issued in the ordinary course of business;

     (17) judgment and attachment Liens not giving rise to an Event of Default and notices
of lis pendens and associated rights related to litigation being contested in good faith by
appropriate proceedings and for which adequate reserves have been made in conformity with
Applicable Accounting Standards;

     (18) Liens on (A) assets other than those constituting Collateral securing Permitted
Hedging Obligations and (B) assets constituting Collateral securing Permitted Hedging
Obligations to the extent that the Obligations to which the Hedging Obligations relate are
permitted to be secured pursuant to this Indenture;

-24-

 

     (19) any interest or title of a lessor, licensor or sublicense under any operating
lease, license or sublicense, as applicable;

     (20) Liens on the Equity Interests of an Unrestricted Subsidiary of the Issuer or of a
Person that is not a Subsidiary of the Issuer securing Indebtedness of such Unrestricted
Subsidiary or other Person if recourse to the Issuer and its Restricted Subsidiaries with
respect to such Indebtedness is limited to such Equity Interests;

     (21) Liens in favor of collecting or payor banks having a right of set off, revocation,
refund or chargeback with respect to money or instruments of the Issuer or any Restricted
Subsidiary thereof on deposit with or in possession of such bank;

     (22) any obligations or duties affecting any of the property of the Issuer or any of
its Restricted Subsidiaries to any municipality or public authority with respect to any
franchise, grant, license or permit that do not impair the use of such property for the
purposes for which it is held;

     (23) Liens on any property in favor of domestic or foreign governmental bodies to
secure partial, progress, advance or other payment pursuant to any contract or statute, not
yet due and payable;

     (24) Liens with respect to so-called “greenbelt” or “buffer zone” properties;

     (25) leases and ground leases of underutilized or vacant properties of the Issuer or
any of its Restricted Subsidiaries to third parties with which the Issuer or such Restricted
Subsidiary has a production, co-production, operating or other arrangement or to third party
providers of energy, transportation services or raw materials in the ordinary course of
business, provided such leases do not materially interfere with the operation of the
business of the Issuer or any of its Restricted Subsidiaries or secure any Indebtedness;

     (26) Liens consisting of any law or governmental regulation or permit requiring the
Issuer or any of its Restricted Subsidiaries to maintain certain facilities or perform
certain acts as a condition of its occupancy of or interference with any public lands or any
river or stream or navigable waters;

     (27) Liens on assets of Foreign Subsidiaries securing Indebtedness of such Foreign
Subsidiaries that is permitted under Section 4.09;

     (28) Liens securing Permitted Additional Pari Passu Obligations;

     (29) Liens on the unearned premiums under the insurance policies permitted by clause
(16) of the definition of “Permitted Debt” securing Indebtedness incurred pursuant to clause
(16) of the definition of “Permitted Debt”;

     (30) any amounts held by a trustee in the funds and accounts under an indenture
securing any revenue bonds issued for the benefit of the Issuer or any Restricted
Subsidiary;

     (31) Liens incurred to secure cash management services or to implement cash pooling
arrangements in the ordinary course of business;

-25-

 

     (32) any netting or set-off arrangements entered into by the Issuer or any Restricted
Subsidiary in the ordinary course of its banking arrangements (including, for the avoidance
of doubt, cash pooling arrangements) for the purposes of netting debit and credit balances
of the Issuer or any Restricted Subsidiary of the Issuer, including pursuant to any cash
management agreement;

     (33) Liens deemed to exist in connection with Investments in repurchase agreements
permitted under Section 4.09; provided that such Liens do not extend to any assets other
than those that are the subject of such repurchase agreements;

     (34) leases and subleases of real property which do not materially interfere with the
ordinary conduct of the business of the Issuer or any of its Restricted Subsidiaries and
other Liens incidental to the conduct of the business of the Issuer and its Restricted
Subsidiaries that do not materially detract from the value of the property subject thereto
or interfere with the ordinary conduct of the Issuer’s business;

     (35) Liens arising from UCC financing statement filings regarding operating leases
entered into by the Issuer and its Restricted Subsidiaries in the ordinary course of
business or other precautionary UCC financing statement filings;

     (36) Liens arising out of conditional sale, title retention, consignment or similar
arrangements for the sale of goods entered into in the ordinary course of business;

     (37) Liens on assets of the Issuer or a Receivables Entity incurred in connection with
a Qualified Receivables Transaction;

     (38) Liens not otherwise permitted hereunder securing Indebtedness or other obligations
that do not, in the aggregate, exceed $25.0 million at any one time outstanding; and

     (39) Liens on Equity Interests of an Existing Restricted Subsidiary JV securing
Indebtedness of such Existing Restricted Subsidiary JV.

     “Permitted Refinancing Indebtedness” means any Indebtedness of the Issuer or any of its
Restricted Subsidiaries issued in exchange for, or the net proceeds of which are used to renew,
refund, refinance, replace, defease or discharge other Indebtedness of the Issuer or any of its
Restricted Subsidiaries (other than intercompany Indebtedness); provided that:

     (1) the principal amount (or accreted value, if applicable) of such Permitted
Refinancing Indebtedness does not exceed the principal amount (or accreted value, if
applicable) of the Indebtedness renewed, refunded, refinanced, replaced, defeased or
discharged (plus all accrued interest on the Indebtedness and the amount of all fees and
expenses, including premiums, incurred in connection therewith);

     (2) such Permitted Refinancing Indebtedness has a final maturity date later than the
final maturity date of, and has a Weighted Average Life to Maturity equal to or greater than
the Weighted Average Life to Maturity of, the Indebtedness being renewed, refunded,
refinanced, replaced, defeased or discharged;

     (3) if the Indebtedness being renewed, refunded, refinanced, replaced, defeased or
discharged is subordinated in right of payment to the Notes, such Permitted Refinancing
Indebtedness is subordinated in right of payment to the Notes on terms at least as favorable
to the Hold-

-26-

 

ers of Notes as those contained in the documentation governing the Indebtedness being
renewed, refunded, refinanced, replaced, defeased or discharged; and

     (4) Permitted Refinancing Indebtedness may not be incurred by a Person other than the
Issuer or a Guarantor to renew, refund, refinance, replace, defease or discharge any
Indebtedness of the Issuer or a Guarantor.

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

     “Plans of Reorganization” means the plan or plans of reorganization proposed by AbitibiBowater
Inc. and certain of its U.S. and Canadian subsidiaries described in the Offering Memorandum under
“Summary–Plans of Reorganization” that satisfy the requirements of the provisions of Chapter 11 of
the United States Bankruptcy Code, as amended, and the CCAA.

     “Priority Debt Leverage Ratio” means, as of any date of determination, the ratio of (a)
Consolidated Priority Debt on the date of determination to (b) Consolidated Cash Flow of the Issuer
and its Restricted Subsidiaries for the most recently ended four full fiscal quarters for which
internal financial statements are available, in each case with such pro forma adjustments to
Consolidated Cash Flow as are consistent with the pro forma adjustment provisions set forth in the
definition of “Fixed Charge Coverage Ratio.”

     “Private Placement Legend” means the legend set forth in Section 2.06(g)(1) to be placed on
all Notes issued under this Indenture except where otherwise permitted by the provisions of this
Indenture.

     “QIB” means a “qualified institutional buyer” as defined in Rule 144A.

     “QSPEs” means each of the following: (1) Calhoun Note Holdings AT LLC, (2) Calhoun Note
Holdings TI LLC, (3) Bowater Catawba Note Holdings I LLC, (4) Bowater Catawba Note Holdings II LLC,
(5) Bowater Saluda Note Holdings LLC, (6) Timber Note Holding LLC, (7) Rich Timber Holdings, LLC,
(8) Abitibi-Consolidated U.S. Funding Corp. and (9) any other qualified special purpose entity
created to facilitate the sale and/or the monetization of receivables from the sale of Timberlands.

     “Qualified Equity Offering” means a public or private equity offering of Capital Stock (other
than Disqualified Stock and other than issuances to an Affiliate of the Issuer) of the Issuer or
any direct or indirect parent company of the Issuer, of at least $50.0 million; provided that, in
the case of an offering or sale by a direct or indirect parent company of the Issuer, such parent
company contributes to the capital of the Issuer the portion of the net cash proceeds of such
offering or sale necessary to pay the aggregate Redemption Price (plus accrued interest to the
redemption date) of the Notes to be redeemed pursuant to Section 5(d) of the Notes.

     “Qualified Receivables Transaction” means any transaction or series of transactions entered
into by the Issuer, any of its Restricted Subsidiaries or any of their respective Subsidiaries
pursuant to which the Issuer, such Restricted Subsidiaries or any of their respective Subsidiaries
sells, conveys or otherwise transfers to (i) a Receivables Entity (in the case of a transfer by the
Issuer, Restricted Subsidiaries or any such Subsidiary) and (ii) any other Person (in the case of a
transfer by a Receivables Entity), or grants a security interest in, any accounts receivable
(whether now existing or arising in the future) of the Issuer, its Restricted Subsidiaries or any
of their respective Subsidiaries, and any assets related thereto including, without limitation, all
collateral securing such accounts receivable, all contracts and all guarantees or other obligations
in respect of such accounts receivable, proceeds of such accounts receivable and other as-

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sets which are customarily transferred or in respect of which security interests are customarily granted in
connection with asset securitization transactions involving accounts receivable.

     “Receivables Entity” means a Subsidiary of the Issuer or any Restricted Subsidiary that
engages in no activities other than in connection with the financing of accounts receivable and
which is designated by the Board of Directors of the Issuer (as provided below) as a Receivables
Entity. Any such designation by the Board of Directors of the Issuer will be evidenced to the
Trustee by filing with the Trustee a certified copy of the resolution of the Board of Directors of
the Issuer giving effect to such designation and an Officer’s Certificate certifying that such
designation complied with the foregoing conditions.

     “Registration Rights Agreement” means the Registration Rights Agreement, dated as of the Issue
Date, among the Escrow Issuer and the Initial Purchasers, as such agreement may be amended,
modified or supplemented from time to time, and, with respect to any Additional Notes, one or more
registration rights agreements among the Issuer, the Guarantors and the other parties thereto, as
such agreement(s) may be amended, modified or supplemented from time to time, relating to rights
given by the Issuer to the purchasers of Additional Notes to register such Additional Notes under
the Securities Act.

     “Regulation S” means Regulation S promulgated under the Securities Act.

     “Regulation S Global Note” means a Global Note substantially in the form of Exhibit A hereto
bearing the Global Note Legend and the Private Placement Legend and deposited with or on behalf of
and registered in the name of the Depositary or its nominee, issued in a denomination equal to the
outstanding principal amount of the Notes sold in reliance on Rule 903 of Regulation S.

     “Release Date” means December 9, 2010, the date on which the funds from the Escrow Account
were released pursuant to Section 5(a) of the Escrow Agreement and the Assumption occurred.

     “Responsible Officer,” when used with respect to the Trustee, means any officer within the
Corporate Trust Administration of the Trustee (or any successor group of the Trustee) or any other
officer of the Trustee customarily performing functions similar to those performed by any of the
above designated officers and also means, with respect to a particular corporate trust matter, any
other officer to whom such matter is referred because of his knowledge of and familiarity with the
particular subject.

     “Restricted Definitive Note” means a Definitive Note bearing the Private Placement Legend.

     “Restricted Global Note” means a Global Note bearing the Private Placement Legend.

     “Restricted Investment” means an Investment other than a Permitted Investment.

     “Restricted Subsidiary” of a Person means any Subsidiary of the referent Person that is not an
Unrestricted Subsidiary.

     “Rule 144” means Rule 144 promulgated under the Securities Act.

     “Rule 144A” means Rule 144A promulgated under the Securities Act.

     “Rule 903” means Rule 903 promulgated under the Securities Act.

     “Rule 904” means Rule 904 promulgated under the Securities Act.

     “S&P” means Standard & Poor’s Rating Services and its successors.

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     “Sale of Notes Priority Collateral” means any Asset Sale to the extent involving a sale, lease
or other disposition of Notes Priority Collateral.

     “SEC” means the Securities and Exchange Commission.

     “Secured Obligations” has the meaning given such term by the Security Agreement.

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

     “Security Agreement” means the Security Agreement, dated as of the Release Date, by and among
the Collateral Agent, the Issuer and the Guarantors, as the same may be amended, supplemented or
modified from time to time.

     “Security Documents” means the Security Agreement, the Intercreditor Agreement and all
security agreements, pledge agreements, collateral assignments, mortgages, deeds of trust,
collateral agency agreements, control agreements or other grants or transfers for security executed
and delivered by the Issuer or any Guarantor creating (or purporting to create) a Lien upon
Collateral in favor of the Collateral Agent, in each case, as amended, modified, renewed, restated
or replaced, in whole or in part, from time to time, in accordance with its terms.

     “Shelf Registration Statement” means the Shelf Registration Statement as defined in the
Registration Rights Agreement.

     “Significant Subsidiary” means any Subsidiary that would be a “significant subsidiary” as
defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as
such Regulation is in effect on the Issue Date.

     “Special Interest” has the meaning assigned to that term pursuant to the Registration Rights
Agreement.

     “Special Mandatory Redemption” shall have the meaning set forth in Section 6 of the Note
attached hereto as Exhibit A.

     “Specified Assets” means (i) the assets associated with the ACH Limited Partnership and (ii)
the assets associated with the Alabama River newsprint mill located in Purdue, Alabama.

     “Stated Maturity” means, with respect to any installment of interest or principal on any
series of Indebtedness, the date on which the payment of interest or principal was scheduled to be
paid in the documentation governing such Indebtedness as of the Issue Date, and will not include
any contingent obligations to repay, redeem or repurchase any such interest or principal prior to
the date originally scheduled for the payment thereof.

     “Subsidiary” means, with respect to any specified Person:

     (1) any corporation, association or other business entity of which more than 50% of
the total voting power of shares of Capital Stock entitled (without regard to the occurrence
of any contingency and after giving effect to any voting agreement or stockholders’
agreement that effectively transfers voting power) to vote in the election of directors,
managers or trustees of the corporation, association or other business entity is at the time
owned or controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person (or a combination thereof); and

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     (2) any partnership (A) the sole general partner or the managing general partner of
which is such Person or a Subsidiary of such Person or (B) the only general partners of
which are that Person or one or more Subsidiaries of that Person (or any combination
thereof) to the extent such partnership is included in the consolidated financial statements
of such Person.

     “TIA” means the Trust Indenture Act of 1939, as amended (15 U.S.C. §§ 77aaa-77bbbb).

     “Timberlands” means any real property of the Issuer or any Restricted Subsidiary which
contains standing timber which is (or upon completion of a growth cycle then in process is expected
to become) of a commercial quantity and of merchantable quality, excluding, however, any such real
property which at the time of determination is held primarily for development or sale, and not
primarily for the production of any lumber or other timber products.

     “Total Assets” means the total assets of the Issuer and its Restricted Subsidiaries, as shown
on the most recent internal balance sheet of the Issuer, prepared on a consolidated basis
(excluding Unrestricted Subsidiaries) in accordance with Applicable Accounting Standards.

     “Transactions” means, collectively, the effectiveness of the Plans of Reorganization and
related transactions, including the application of fresh start accounting principles, the entry
into the ABL Credit Agreement (and the substantially concurrent satisfaction or waiver of the
conditions to effectiveness with respect thereto), the issuance of the Initial Notes and the
application of the net proceeds thereof in the manner set forth in the Plans of Reorganization.

     “Treasury Rate” means the rate per annum equal to the yield to maturity at the time of
computation of United States Treasury securities with a constant maturity most nearly equal to the
period from such date of redemption to October 15, 2014; provided that if the period from such date
of redemption to October 15, 2014 is not equal to the constant maturity of a United States Treasury
security for which a weekly average yield is given, the Treasury Rate shall be obtained by linear
interpolation (calculated to the nearest one-twelfth of a year) from the weekly average yields of
United States Treasury securities for which such yields are given, except that if the period from
such date of redemption to October 15, 2014 is less than one year, the weekly average yield on
actually traded United States Treasury securities adjusted to a constant maturity of one year shall
be used.

     “Treasury Securities” means any Investment in obligations issued or guaranteed by the United
States government or agency thereof, in each case, maturing no later than the Escrow End Date.

     “Trustee” means Wells Fargo Bank, National Association until a successor replaces it in
accordance with the applicable provisions of this Indenture and thereafter means the successor
serving hereunder.

     “Unrestricted Definitive Note” means a Definitive Note that does not bear and is not required
to bear the Private Placement Legend.

     “Unrestricted Global Note” means a Global Note that does not bear and is not required to bear
the Private Placement Legend.

     “Unrestricted Subsidiary” means (a) the QSPEs, (b) Augusta and (c) any Subsidiary of the
Issuer that is designated by the Board of Directors of the Issuer as an Unrestricted Subsidiary
pursuant to a resolution of the Board of Directors, but only to the extent that such Subsidiary:

     (1) has no Indebtedness other than Non-Recourse Debt;

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     (2) except as permitted by Section 4.11, is not party to any agreement, contract,
arrangement or understanding with the Issuer or any Restricted Subsidiary of the Issuer
unless the terms of any such agreement, contract, arrangement or understanding are no less
favorable to the Issuer or such Restricted Subsidiary than those that might be obtained at
the time from Persons who are not Affiliates of the Issuer;

     (3) except as otherwise permitted by Section 4.07, is a Person with respect to
which neither the Issuer nor any of its Restricted Subsidiaries has any direct or indirect
obligation (A) to subscribe for additional Equity Interests or (B) to maintain or preserve
such Person’s financial condition or to cause such Person to achieve any specified levels of
operating results; and

     (4) except as otherwise permitted by Section 4.07, has not guaranteed or otherwise
provided credit support for any Indebtedness of the Issuer or any of its Restricted
Subsidiaries.

     “U.S. GAAP” means generally accepted accounting principles set forth in 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 have been approved by a significant segment of the
accounting profession in the United States in effect on the Issue Date.

     “U.S. Person” means a U.S. Person as defined in Rule 902(k) promulgated under the Securities
Act.

     “U.S. Subsidiary” means, with respect to any Person, any Subsidiary of such Person that is
organized or existing under the laws of the United States, any state thereof or the District of
Columbia.

     “Voting Stock” of any specified Person as of any date means the Capital Stock of such Person
that is at the time entitled to vote in the election of the Board of Directors of such Person.

     “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the
number of years obtained by dividing:

     (1) the sum of the products obtained by multiplying (A) the amount of each then
remaining installment, sinking fund, serial maturity or other required payments of
principal, including payment at final maturity, in respect of the Indebtedness, by (B) the
number of years (calculated to the nearest one-twelfth) that will elapse between such date
and the making of such payment; by

     (2) the then outstanding principal amount of such Indebtedness.

     “Wholly owned Restricted Subsidiary” of any specified Person means a Restricted Subsidiary of
such Person all of the outstanding Capital Stock or other ownership interests of which (other than
directors’ qualifying shares) will at the time be owned by such Person or by one or more Wholly
owned Restricted Subsidiaries of such Person.

     “Wholly owned Subsidiary” of any specified Person means a Subsidiary of such Person all of the
outstanding Capital Stock or other ownership interests of which (other than directors’ qualifying
shares) will at the time be owned by such Person or by one or more Wholly owned Subsidiaries of
such Person.

     “WURA” means the Wind-Up and Restructuring Act (Canada).

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     Section 1.02. Other Definitions.

	 	 	 
	 	 	Defined in
	Term	 	Section
	“Affiliate Transaction”
	 	4.11
	“Authentication Order”
	 	2.02
	“Change of Control Offer”
	 	4.15
	“Change of Control Payment”
	 	4.15
	“Change of Control Payment Date”
	 	4.15
	“Covenant Defeasance”
	 	8.03
	“DTC”
	 	2.03
	“Escrow Issuer”
	 	Recitals
	“Event of Default”
	 	6.01
	“Excess Proceeds”
	 	4.10
	“incur”
	 	4.09
	“Legal Defeasance”
	 	8.02
	“Net Proceeds Offer”
	 	4.10
	“Offer Amount”
	 	4.10
	“Offer Period”
	 	4.10
	“Paying Agent”
	 	2.03
	“Payment Default”
	 	6.01
	“Permitted Debt”
	 	4.09
	“Purchase Date”
	 	4.10
	“Registrar”
	 	2.03
	“Restricted Payments”
	 	4.07
	“Trust Monies”
	 	13.08

     Section 1.03. Incorporation by Reference of Trust Indenture Act.

     Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture. Unless specifically referred to herein, the TIA
shall not apply to this Indenture except to the extent required by law.

     The following TIA terms used in this Indenture have the following meanings:

     “indenture securities” means the Notes;

     “indenture security holder” means a Holder of a Note;

     “indenture to be qualified” means this Indenture;

     “indenture trustee” or “institutional trustee” means the Trustee; and

     “obligor” on the Notes and the Note Guarantees means the Company and the Guarantors,
respectively, and any successor obligor upon the Notes and the Note Guarantees,
respectively.

     All other terms used in this Indenture that are defined by the TIA, defined by TIA reference
to another statute or defined by SEC rule under the TIA have the meanings so assigned to them.

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     Section 1.04. Rules of Construction.

     Unless the context otherwise requires:

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

     (2) an accounting term not otherwise defined has the meaning assigned to it in
accordance with U.S. GAAP;

     (3) “or” is not exclusive;

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

     (5) “will” shall be interpreted to express a command;

     (6) provisions apply to successive events and transactions;

     (7) references to sections of or rules under the Securities Act or the TIA will be
deemed to include substitute, replacement or successor sections or rules adopted by the SEC
from time to time; and

     (8) references to laws and statutes shall be deemed to refer to successor laws and
statutes thereto.

     Section 1.05. Applicability of Terms Indenture.

     Prior to the Release Date, neither the Company nor any of its Restricted Subsidiaries shall
have any rights or obligations under this Indenture and the restrictions set forth in this
Indenture shall not apply to the Company or any of its Restricted Subsidiaries. To the extent the
Company or any Restricted Subsidiary has incurred Indebtedness (treating Indebtedness not
discharged pursuant to the Plans of Reorganization and remaining outstanding on the Release Date as
having been incurred as of the Release Date), made any Restricted Payments, consummated any Asset
Sale or otherwise taken any action or engaged in any activities during the period beginning on the
Issue Date and ending on the Release Date, in each case, except as expressly contemplated by the
Plans of Reorganization, such actions and activities shall be treated and classified under this
Indenture (including but not limited to impacting relevant baskets and determining whether a
Default or Event of Default would have occurred as of the Release Date for purposes of the release
conditions set forth in the Escrow Agreement), as if this Indenture and the covenants set forth
herein had applied to the Company and the Restricted Subsidiaries during such period and the terms
applicable to the “Issuer” and its “Restricted Subsidiaries” hereunder shall apply for such period
to the Company and its Restricted Subsidiaries.

ARTICLE 2

THE NOTES

     Section 2.01. Form and Dating.

     (a) General. The Notes and the Trustee’s certificate of authentication will be
substantially in the form of Exhibit A hereto. The Notes may have notations, legends or
endorsements required by law, stock exchange rule or usage. Each Note will be dated the date of
its authentication. The Notes shall be in denominations of $2,000 and integral multiples of $1,000
in excess thereof.

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     The terms and provisions contained in the Notes will constitute, and are hereby expressly
made, a part of this Indenture and the Escrow Issuer, the Company, the Guarantors and the Trustee,
by their execution and delivery of this Indenture (or any indenture supplemental hereto), expressly
agree to such terms and provisions and to be bound thereby. However, to the extent any provision
of any Note conflicts with the express provisions of this Indenture, the provisions of this
Indenture shall govern and be controlling.

     (b) Global Notes. Notes issued in global form will be substantially in the form of
Exhibit A hereto (including the Global Note Legend thereon and the “Schedule of Exchanges of
Interests in the Global Note” attached thereto). Notes issued in definitive form will be
substantially in the form of Exhibit A hereto (but without the Global Note Legend thereon and
without the “Schedule of Exchanges of Interests in the Global Note” attached thereto). Each Global
Note will represent such of the outstanding Notes as will be specified therein and each shall
provide that it represents the aggregate principal amount of outstanding Notes from time to time
endorsed thereon and that the aggregate principal amount of outstanding Notes represented thereby
may from time to time be reduced or increased, as appropriate, to reflect exchanges and
redemptions. Any endorsement of a Global Note to reflect the amount of any increase or decrease in
the aggregate principal amount of outstanding Notes represented thereby will be made by the Trustee
or the Custodian, at the direction of the Trustee, in accordance with instructions given by the
Holder thereof as required by Section 2.06.

     Section 2.02. Execution and Authentication.

     At least one Officer must sign the Notes for the Issuer by manual or facsimile signature.

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

     A Note will not be valid until authenticated by the manual signature of the Trustee. The
signature will be conclusive evidence that the Note has been authenticated under this Indenture.

     The Trustee will, upon receipt of a written order of the Issuer signed by an Officer (an
“Authentication Order”), authenticate Notes for original issue that may be validly issued under
this Indenture, including any Additional Notes. The aggregate principal amount of Notes
outstanding at any time may not exceed the aggregate principal amount of Notes authorized for
issuance by the Issuer pursuant to one or more Authentication Orders, except as provided in Section
2.07.

     The Trustee may appoint an authenticating agent acceptable to the Issuer to authenticate
Notes. An authenticating agent may authenticate Notes whenever the Trustee may do so. Each
reference in this Indenture to authentication by the Trustee includes authentication by such agent.
An authenticating agent has the same rights as an Agent to deal with Holders or an Affiliate of
the Company.

     Section 2.03. Registrar and Paying Agent.

     The Issuer will maintain an office or agency where Notes may be presented for registration of
transfer or for exchange (“Registrar”) and an office or agency where Notes may be presented for
payment (“Paying Agent”). The Registrar will keep a register of the Notes and of their transfer
and exchange. The Issuer may appoint one or more co-registrars and one or more additional paying
agents. The term “Registrar” includes any co-registrar and the term “Paying Agent” includes any
additional paying agent. The Issuer may change any Paying Agent or Registrar without notice to any
Holder. The Issuer will notify the Trustee in writing of the name and address of any Agent not a
party to this Indenture. If the Issuer fails to

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appoint or maintain another entity as Registrar or
Paying Agent, the Trustee shall act as such. The Company or any of its Subsidiaries may not act as
Paying Agent or Registrar.

     The Issuer initially appoints The Depository Trust Company (“DTC”) to act as Depositary with
respect to the Global Notes.

     The Issuer initially appoints the Trustee to act as the Registrar and Paying Agent and to act
as Custodian with respect to the Global Notes and the Trustee hereby agrees so to initially act.

     Section 2.04. Paying Agent to Hold Money in Trust.

     The Issuer will require each Paying Agent other than the Trustee to agree in writing that the
Paying Agent will hold in trust for the benefit of Holders or the Trustee all money held by the
Paying Agent for the payment of principal, premium or Special Interest, if any, or interest on the
Notes, and will notify the Trustee in writing of any default by the Issuer in making any such
payment. While any such default continues, the Trustee may require a Paying Agent to pay all money
held by it to the Trustee. The Issuer at any time may require a Paying Agent to pay all money held
by it to the Trustee. Upon payment over to the Trustee, the Paying Agent will have no further
liability for the money.

     Section 2.05. Holder Lists.

     The Trustee will preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of all Holders and shall otherwise comply with TIA
§ 312(a). If the Trustee is not the Registrar, the Issuer will furnish to the Trustee at least
seven Business Days before each interest payment date and at such other times as the Trustee may
request in writing, a list in such form and as of such date as the Trustee may reasonably require
of the names and addresses of the Holders of Notes and the Issuer shall otherwise comply with TIA
§ 312(a).

     Section 2.06. Transfer and Exchange.

     (a) Transfer and Exchange of Global Notes. A Global Note may not be transferred except as
a whole by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the
Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary. All Global Notes will be exchanged
by the Company for Definitive Notes if:

     (1) the Issuer delivers to the Trustee notice from the Depositary that it is
unwilling or unable to continue to act as Depositary or that it is no longer a clearing
agency registered under the Exchange Act and, in either case, a successor Depositary is not
appointed by the Issuer within 90 days after the date of such notice from the Depositary;

     (2) the Issuer in its sole discretion determines that the Global Notes (in whole
but not in part) should be exchanged for Definitive Notes and delivers a written notice to
such effect to the Trustee; or

     (3) there has occurred and is continuing an Event of Default with respect to the
Notes and the Holder so requests.

     Upon the occurrence of either of the preceding events in (1) or (2) above, Definitive Notes
shall be issued in such names as the Depositary shall instruct the Trustee in writing. Global
Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 2.07 and
2.10. Every Note authenti-

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cated and delivered in exchange for, or in lieu of, a Global Note or any
portion thereof, pursuant to this Section 2.06 or Section 2.07 or 2.10, shall be authenticated and
delivered in the form of, and shall be, a Global Note. A Global Note may not be exchanged for
another Note other than as provided in this Section 2.06(a), however, beneficial interests in a
Global Note may be transferred and exchanged as provided in Section 2.06(b), (c) or (f).

     (b) Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer and
exchange of beneficial interests in the Global Notes will be effected through the Depositary, in
accordance with the provisions of this Indenture and the Applicable Procedures. Beneficial
interests in the Restricted Global Notes will be subject to restrictions on transfer comparable to
those set forth herein to the extent required by the Securities Act. Transfers of beneficial
interests in the Global Notes also will require compliance with either subparagraph (1) or (2)
below, as applicable, as well as one or more of the other following subparagraphs, as applicable:

     (1) Transfer of Beneficial Interests in the Same Global Note. Beneficial interests
in any Restricted Global Note may be transferred to Persons who take delivery thereof in the
form of a beneficial interest in the same Restricted Global Note in accordance with the
transfer restrictions set forth in the Private Placement Legend; provided, however, that
prior to the expiration of the Restricted Period, transfers of beneficial interests in the
Regulation S Global Note may not be made to a U.S. Person or for the account or benefit of a
U.S. Person (other than an Initial Purchaser). Beneficial interests in any Unrestricted
Global Note may be transferred to Persons who take delivery thereof in the form of a
beneficial interest in an Unrestricted Global Note. No written orders or instructions shall
be required to be delivered to the Registrar to effect the transfers described in this
Section 2.06(b)(1).

     (2) All Other Transfers and Exchanges of Beneficial Interests in Global Notes. In
connection with all transfers and exchanges of beneficial interests that are not subject to
Section 2.06(b)(1) above, the transferor of such beneficial interest must deliver to the
Registrar either:

     (A) both:

     (i) a written order from a Participant or an Indirect Participant
given to the Depositary in accordance with the Applicable Procedures
directing the Depositary to credit or cause to be credited a beneficial
interest in another Global Note in an amount equal to the beneficial
interest to be transferred or exchanged; and

     (ii) instructions given in accordance with the Applicable
Procedures containing information regarding the Participant account to be
credited with such increase; or

     (B) both:

     (i) a written order from a Participant or an Indirect Participant
given to the Depositary in accordance with the Applicable Procedures
directing the Depositary to cause to be issued a Definitive Note in an
amount equal to the beneficial interest to be transferred or exchanged; and

     (ii) instructions given by the Depositary to the Registrar
containing information regarding the Person in whose name such Definitive
Note shall be registered to effect the transfer or exchange referred to in
(1) above.

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Upon consummation of an Exchange Offer by the Company in accordance with Section 2.06(f),
the requirements of this Section 2.06(b)(2) shall be deemed to have been satisfied upon
receipt by the Registrar of the instructions contained in the Letter of Transmittal
delivered by the Holder of such beneficial interests in the Restricted Global Notes. Upon
satisfaction of all of the requirements for transfer or exchange of beneficial interests in
Global Notes contained in this Indenture and the Notes or otherwise applicable under the
Securities Act, the Trustee shall adjust the principal amount of the relevant Global Note(s)
pursuant to Section 2.06(h).

     (3) Transfer of Beneficial Interests to Another Restricted Global Note. A
beneficial interest in any Restricted Global Note may be transferred to a Person who takes
delivery thereof in the form of a beneficial interest in another Restricted Global Note if
the transfer complies with the requirements of Section 2.06(b)(2) above and the Registrar
receives the following:

     (A) if the transferee will take delivery in the form of a beneficial
interest in the 144A Global Note, then the transferor must deliver a certificate in
the form of Exhibit B hereto, including the certifications in item (1) thereof;

     (B) if the transferee will take delivery in the form of a beneficial
interest in the Regulation S Global Note, then the transferor must deliver a
certificate in the form of Exhibit B hereto, including the certifications in item
(2) thereof; and

     (C) if the transferee will take delivery in the form of a beneficial
interest in the IAI Global Note, then the transferor must deliver a certificate in
the form of Exhibit B hereto, including the certifications, certificates and Opinion
of Counsel required by item (3) thereof, if applicable.

     (4) Transfer and Exchange of Beneficial Interests in a Restricted Global Note for
Beneficial Interests in an Unrestricted Global Note. A beneficial interest in any
Restricted Global Note may be exchanged by any Holder thereof for a beneficial interest in
an Unrestricted Global Note or transferred to a Person who takes delivery thereof in the
form of a beneficial interest in an Unrestricted Global Note if the exchange or transfer
complies with the requirements of Section 2.06(b)(2) above and:

     (A) such exchange or transfer is effected pursuant to the Exchange Offer in
accordance with the Registration Rights Agreement and the holder of the beneficial
interest to be transferred, in the case of an exchange, or the transferee, in the
case of a transfer, certifies in the applicable Letter of Transmittal that it is not
(i) a Broker-Dealer, (ii) a Person participating in the distribution of the Exchange
Notes or (iii) a Person who is an affiliate (as defined in Rule 144) of the Issuer;

     (B) such transfer is effected pursuant to the Shelf Registration Statement
in accordance with the Registration Rights Agreement;

     (C) such transfer is effected by a Broker-Dealer pursuant to the Exchange
Offer Registration Statement in accordance with the Registration Rights Agreement;

     (D) the Registrar receives the following:

     (i) if the holder of such beneficial interest in a Restricted
Global Note proposes to exchange such beneficial interest for a beneficial
interest in an

-37-

 

Unrestricted Global Note, a certificate from such holder in
the form of Exhibit C hereto, including the certifications in item (1)(a)
thereof, or

     (ii) if the holder of such beneficial interest in a Restricted
Global Note proposes to transfer such beneficial interest to a Person who
shall take delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note, a certificate from such holder in the form of
Exhibit B hereto, including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so
requests or if the Applicable Procedures so require, an Opinion of Counsel in form
reasonably acceptable to the Registrar to the effect that such exchange or transfer
is in compliance with the Securities Act and that the restrictions on transfer
contained herein and in the Private Placement Legend are no longer required in order
to maintain compliance with the Securities Act; and

     (E) the Issuer delivers to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each to the effect that the transfer of Restricted Notes to
Unrestricted Notes complies with the Securities Act.

     If any such transfer is effected pursuant to subparagraph (B), (D) or (E) above at a
time when an Unrestricted Global Note has not yet been issued, the Company shall issue and,
upon receipt of an Authentication Order in accordance with Section 2.02, the Trustee shall
authenticate one or more Unrestricted Global Notes in an aggregate principal amount equal to
the aggregate principal amount of beneficial interests transferred pursuant to subparagraph
(B), (D) or (E) above.

     Beneficial interests in an Unrestricted Global Note cannot be exchanged for, or transferred to
Persons who take delivery thereof in the form of, a beneficial interest in a Restricted Global
Note.

     (c) Transfer or Exchange of Beneficial Interests for Definitive Notes.

     (1) Beneficial Interests in Restricted Global Notes to Restricted Definitive Notes.
If any holder of a beneficial interest in a Restricted Global Note proposes to exchange
such beneficial interest for a Restricted Definitive Note or to transfer such beneficial
interest to a Person who takes delivery thereof in the form of a Restricted Definitive Note,
then, upon receipt by the Registrar of the following documentation:

     (A) if the holder of such beneficial interest in a Restricted Global Note
proposes to exchange such beneficial interest for a Restricted Definitive Note, a
certificate from such holder in the form of Exhibit C hereto, including the
certifications in item (2)(a) thereof;

     (B) if such beneficial interest is being transferred to a QIB in accordance
with Rule 144A, a certificate to the effect set forth in Exhibit B hereto, including
the certifications in item (1) thereof;

     (C) if such beneficial interest is being transferred to a Non-U.S. Person
in an offshore transaction in accordance with Rule 903 or Rule 904, a certificate to
the effect set forth in Exhibit B hereto, including the certifications in item (2)
thereof;

-38-

 

     (D) if such beneficial interest is being transferred pursuant to an
exemption from the registration requirements of the Securities Act in accordance
with Rule 144, a certificate to the effect set forth in Exhibit B hereto, including
the certifications in item (3)(a) thereof;

     (E) if such beneficial interest is being transferred to an Institutional
Accredited Investor in reliance on an exemption from the registration requirements
of the Securities Act other than those listed in subparagraphs (B) through (D)
above, a certificate to the effect set forth in Exhibit B hereto, including the
certifications, certificates and Opinion of Counsel required by item (3) thereof, if
applicable;

     (F) if such beneficial interest is being transferred to the Company or any
of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (3)(b) thereof; or

     (G) if such beneficial interest is being transferred pursuant to an
effective registration statement under the Securities Act, a certificate to the
effect set forth in Exhibit B hereto, including the certifications in item (3)(c)
thereof,

the Trustee shall cause the aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 2.06(h), and the Company shall execute and the Trustee shall
authenticate and deliver to the Person designated in the instructions a Definitive Note in the
appropriate principal amount. Any Definitive Note issued in exchange for a beneficial interest in
a Restricted Global Note pursuant to this Section 2.06(c) shall be registered in such name or names
and in such authorized denomination or denominations as the holder of such beneficial interest
shall instruct the Registrar through instructions from the Depositary and the Participant or
Indirect Participant. The Trustee shall deliver such Definitive Notes to the Persons in whose
names such Notes are so registered. Any Definitive Note issued in exchange for a beneficial
interest in a Restricted Global Note pursuant to this Section 2.06(c)(1) shall bear the Private
Placement Legend and shall be subject to all restrictions on transfer contained therein.

     (2) Beneficial Interests in Restricted Global Notes to Unrestricted Definitive
Notes. A holder of a beneficial interest in a Restricted Global Note may exchange such
beneficial interest for an Unrestricted Definitive Note or may transfer such beneficial
interest to a Person who takes delivery thereof in the form of an Unrestricted Definitive
Note only if:

     (A) such exchange or transfer is effected pursuant to the Exchange Offer in
accordance with the Registration Rights Agreement and the holder of such beneficial
interest, in the case of an exchange, or the transferee, in the case of a transfer,
certifies in the applicable Letter of Transmittal that it is not (i) a
Broker-Dealer, (ii) a Person participating in the distribution of the Exchange Notes
or (iii) a Person who is an affiliate (as defined in Rule 144) of the Company;

     (B) such transfer is effected pursuant to the Shelf Registration Statement
in accordance with the Registration Rights Agreement;

     (C) such transfer is effected by a Broker-Dealer pursuant to the Exchange
Offer Registration Statement in accordance with the Registration Rights Agreement;
or

     (D) the Registrar receives the following:

-39-

 

     (i) if the holder of such beneficial interest in a Restricted
Global Note proposes to exchange such beneficial interest for an
Unrestricted Definitive Note, a certificate from such holder in the form of
Exhibit C hereto, including the certifications in item (1)(b) thereof; or

     (ii) if the holder of such beneficial interest in a Restricted
Global Note proposes to transfer such beneficial interest to a Person who
shall take delivery thereof in the form of an Unrestricted Definitive Note,
a certificate from such holder in the form of Exhibit B hereto, including
the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so requests or
if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable
to the Registrar to the effect that such exchange or transfer is in compliance with the
Securities Act and that the restrictions on transfer contained herein and in the Private
Placement Legend are no longer required in order to maintain compliance with the Securities
Act.

     (3) Beneficial Interests in Unrestricted Global Notes to Unrestricted Definitive
Notes. If any holder of a beneficial interest in an Unrestricted Global Note proposes to
exchange such beneficial interest for a Definitive Note or to transfer such beneficial
interest to a Person who takes delivery thereof in the form of a Definitive Note, then, upon
satisfaction of the conditions set forth in Section 2.06(b)(2), the Trustee will cause the
aggregate principal amount of the applicable Global Note to be reduced accordingly pursuant
to Section 2.06(h), and the Company will execute and the Trustee will authenticate and
deliver to the Person designated in the instructions a Definitive Note in the appropriate
principal amount. Any Definitive Note issued in exchange for a beneficial interest pursuant
to this Section 2.06(c)(3) will be registered in such name or names and in such authorized
denomination or denominations as the holder of such beneficial interest requests through
instructions to the Registrar from or through the Depositary and the Participant or Indirect
Participant. The Trustee will deliver such Definitive Notes to the Persons in whose names
such Notes are so registered. Any Definitive Note issued in exchange for a beneficial
interest pursuant to this Section 2.06(c)(3) will not bear the Private Placement Legend.

     (d) Transfer and Exchange of Definitive Notes for Beneficial Interests.

     (1) Restricted Definitive Notes to Beneficial Interests in Restricted Global Notes.
If any Holder of a Restricted Definitive Note proposes to exchange such Note for a
beneficial interest in a Restricted Global Note or to transfer such Restricted Definitive
Notes to a Person who takes delivery thereof in the form of a beneficial interest in a
Restricted Global Note, then, upon receipt by the Registrar of the following documentation:

     (A) if the Holder of such Restricted Definitive Note proposes to exchange
such Note for a beneficial interest in a Restricted Global Note, a certificate from
such Holder in the form of Exhibit C hereto, including the certifications in item
(2)(b) thereof;

     (B) if such Restricted Definitive Note is being transferred to a QIB in
accordance with Rule 144A, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (1) thereof;

     (C) if such Restricted Definitive Note is being transferred to a Non-U.S.
Person in an offshore transaction in accordance with Rule 903 or Rule 904, a
certificate to the effect set forth in Exhibit B hereto, including the
certifications in item (2) thereof;

-40-

 

     (D) if such Restricted Definitive Note is being transferred pursuant to an
exemption from the registration requirements of the Securities Act in accordance
with Rule 144, a certificate to the effect set forth in Exhibit B hereto, including
the certifications in item (3)(a) thereof;

     (E) if such Restricted Definitive Note is being transferred to an
Institutional Accredited Investor in reliance on an exemption from the registration
requirements of the Securities Act other than those listed in subparagraphs (B)
through (D) above, a certificate to the effect set forth in Exhibit B hereto,
including the certifications, certificates and Opinion of Counsel required by item
(3) thereof, if applicable;

     (F) if such Restricted Definitive Note is being transferred to the Company
or any of its Subsidiaries, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (3)(b) thereof; or

     (G) if such Restricted Definitive Note is being transferred pursuant to an
effective registration statement under the Securities Act, a certificate to the
effect set forth in Exhibit B hereto, including the certifications in item (3)(c)
thereof, the Trustee will cancel the Restricted Definitive Note, increase or cause
to be increased the aggregate principal amount of, in the case of clause (A) above,
the appropriate Restricted Global Note, in the case of clause (B) above, the 144A
Global Note, in the case of clause (C) above, the Regulation S Global Note, and in
all other cases, the IAI Global Note.

     (2) Restricted Definitive Notes to Beneficial Interests in Unrestricted Global
Notes. A Holder of a Restricted Definitive Note may exchange such Note for a beneficial
interest in an Unrestricted Global Note or transfer such Restricted Definitive Note to a
Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted
Global Note only if:

     (A) such exchange or transfer is effected pursuant to the Exchange Offer in
accordance with the Registration Rights Agreement and the Holder, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in the applicable
Letter of Transmittal that it is not (i) a Broker-Dealer, (ii) a Person
participating in the distribution of the Exchange Notes or (iii) a Person who is an
affiliate (as defined in Rule 144) of the Company;

     (B) such transfer is effected pursuant to the Shelf Registration Statement
in accordance with the Registration Rights Agreement;

     (C) such transfer is effected by a Broker-Dealer pursuant to the Exchange
Offer Registration Statement in accordance with the Registration Rights Agreement;
or

     (D) the Registrar receives the following:

     (i) if the Holder of such Definitive Notes proposes to exchange
such Notes for a beneficial interest in the Unrestricted Global Note, a
certificate from such Holder in the form of Exhibit C hereto, including the
certifications in item (1)(c) thereof; or

     (ii) if the Holder of such Definitive Notes proposes to transfer
such Notes to a Person who shall take delivery thereof in the form of a
beneficial in-

-41-

 

terest in the Unrestricted Global Note, a certificate from such
Holder in the form of Exhibit B hereto, including the certifications in item
(4) thereof,

and, in each such case set forth in this subparagraph (D), if the Registrar so requests or
if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable
to the Registrar to the effect that such exchange or transfer is in compliance with the
Securities Act and that the restrictions on transfer contained herein and in the Private
Placement Legend are no longer required in order to maintain compliance with the Securities
Act.

     Upon satisfaction of the conditions of any of the subparagraphs in this Section 2.06(d)(2),
the Trustee will cancel the Definitive Notes and increase or cause to be increased the aggregate
principal amount of the Unrestricted Global Note.

     (3) Unrestricted Definitive Notes to Beneficial Interests in Unrestricted Global
Notes. A Holder of an Unrestricted Definitive Note may exchange such Note for a beneficial
interest in an Unrestricted Global Note or transfer such Definitive Notes to a Person who
takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note
at any time.

     Upon receipt of a request for such an exchange or transfer, the Trustee will cancel the
applicable Unrestricted Definitive Note and increase or cause to be increased the aggregate
principal amount of one of the Unrestricted Global Notes.

     If any such exchange or transfer from a Definitive Note to a beneficial interest is effected
pursuant to subparagraphs (2)(B), (2)(D) or (3) above at a time when an Unrestricted Global Note
has not yet been issued, the Company will issue and, upon receipt of an Authentication Order in
accordance with Section 2.02, the Trustee will authenticate one or more Unrestricted Global Notes
in an aggregate principal amount equal to the principal amount of Definitive Notes so transferred.

     (e) Transfer and Exchange of Definitive Notes for Definitive Notes. Upon request by a
Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section
2.06(e), the Registrar will register the transfer or exchange of Definitive Notes. Prior to such
registration of transfer or exchange, the requesting Holder must present or surrender to the
Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in
form satisfactory to the Registrar duly executed by such Holder or by its attorney, duly authorized
in writing. In addition, the requesting Holder must provide any additional certifications,
documents and information, as applicable, required pursuant to the following provisions of this
Section 2.06(e).

     (1) Restricted Definitive Notes to Restricted Definitive Notes. Any Restricted
Definitive Note may be transferred to and registered in the name of Persons who take
delivery thereof in the form of a Restricted Definitive Note if the Registrar receives the
following:

     (A) if the transfer will be made pursuant to Rule 144A, then the transferor
must deliver a certificate in the form of Exhibit B hereto, including the
certifications in item (1) thereof,

     (B) if the transfer will be made pursuant to Rule 903 or Rule 904, then the
transferor must deliver a certificate in the form of Exhibit B hereto, including the
certifications in item (2) thereof, and

     (C) if the transfer will be made pursuant to any other exemption from the
registration requirements of the Securities Act, then the transferor must deliver a
certifi-

-42-

 

cate in the form of Exhibit B hereto, including the certifications,
certificates and Opinion of Counsel required by item (3) thereof, if applicable.

     (2) Restricted Definitive Notes to Unrestricted Definitive Notes. Any Restricted
Definitive Note may be exchanged by the Holder thereof for an Unrestricted Definitive Note
or transferred to a Person or Persons who take delivery thereof in the form of an
Unrestricted Definitive Note if:

     (A) such exchange or transfer is effected pursuant to the Exchange Offer in
accordance with the Registration Rights Agreement and the Holder, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in the applicable
Letter of Transmittal that it is not (i) a Broker-Dealer, (ii) a Person
participating in the distribution of the Exchange Notes or (iii) a Person who is an
affiliate (as defined in Rule 144) of the Company;

     (B) any such transfer is effected pursuant to the Shelf Registration
Statement in accordance with the Registration Rights Agreement;

     (C) any such transfer is effected by a Broker-Dealer pursuant to the
Exchange Offer Registration Statement in accordance with the Registration Rights
Agreement; or

     (D) the Registrar receives the following:

     (i) if the Holder of such Restricted Definitive Notes proposes to
exchange such Notes for an Unrestricted Definitive Note, a certificate from
such Holder in the form of Exhibit C hereto, including the certifications in
item (1)(d) thereof; or

     (ii) if the Holder of such Restricted Definitive Notes proposes to
transfer such Notes to a Person who shall take delivery thereof in the form
of an Unrestricted Definitive Note, a certificate from such Holder in the
form of Exhibit B hereto, including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so
requests, an Opinion of Counsel in form reasonably acceptable to the Registrar to
the effect that such exchange or transfer is in compliance with the Securities Act
and that the restrictions on transfer contained herein and in the Private Placement
Legend are no longer required in order to maintain compliance with the Securities
Act.

     (3) Unrestricted Definitive Notes to Unrestricted Definitive Notes. A Holder of
Unrestricted Definitive Notes may transfer such Notes to a Person who takes delivery thereof
in the form of an Unrestricted Definitive Note. Upon receipt of a request to register such
a transfer, the Registrar shall register the Unrestricted Definitive Notes pursuant to the
instructions from the Holder thereof.

     (f) Exchange Offer. Upon the occurrence of an Exchange Offer in accordance with the
Registration Rights Agreement, the Issuer will issue and, upon receipt of an Authentication Order
in accordance with Section 2.02, the Trustee will authenticate:

-43-

 

     (1) one or more Unrestricted Global Notes in an aggregate principal amount equal to
the principal amount of the beneficial interests in the Restricted Global Notes accepted for
exchange in such Exchange Offer by Persons that certify in the applicable Letters of
Transmittal that (A) they are not Broker-Dealers, (B) they are not participating in a
distribution of the Exchange Notes and (C) they are not affiliates (as defined in Rule 144)
of the Company; and

     (2) Unrestricted Definitive Notes in an aggregate principal amount equal to the
principal amount of the Restricted Definitive Notes accepted for exchange in the Exchange
Offer by Persons that certify in the applicable Letters of Transmittal that (A) they are not
Broker-Dealers, (B) they are not participating in a distribution of the Exchange Notes and
(C) they are not affiliates (as defined in Rule 144) of the Company.

     Concurrently with the issuance of such Notes, the Trustee will cause the aggregate principal
amount of the applicable Restricted Global Notes to be reduced accordingly, and the Company will
execute and the Trustee will authenticate and deliver to the Persons designated by the Holders of
Definitive Notes so accepted Unrestricted Definitive Notes in the appropriate principal amount.

     (g) Legends. The following legends will appear on the face of all Global Notes and
Definitive Notes issued under this Indenture unless specifically stated otherwise in the applicable
provisions of this Indenture.

     (1) Private Placement Legend.

     (A) Except as permitted by subparagraph (B) below, each Global Note and
each Definitive Note (and all Notes issued in exchange therefor or substitution
thereof) shall bear the legend in substantially the following form:

     THIS SECURITY 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 SECURITY 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 SECURITY, BY ITS ACCEPTANCE,
AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS
PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO
THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS [IN THE CASE OF RULE
144A NOTES: ONE YEAR] [IN THE CASE OF REGULATION S NOTES: 40 DAYS] AFTER THE LATER
OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY
AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH
SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS
BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES
ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON
IT REASONABLY BELIEVES IS 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 THE TRANSFER IS BEING
MADE IN RELI-

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ANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE
THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E)
TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(a)(1), (2),
(3) OR (7) UNDER THE SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED INVESTOR
ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN
INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE
SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR OFFER
OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR
(F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY
SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) 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. [IN THE CASE OF REGULATION S
NOTES: BY ITS ACQUISITION HEREOF, THE HOLDER HEREOF REPRESENTS THAT IT IS NOT A
U.S. PERSON NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S. PERSON AND IS ACQUIRING
THIS SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE
SECURITIES ACT.]

     (B) Notwithstanding the foregoing, any Global Note or Definitive Note
issued pursuant to subparagraphs (b)(4), (c)(2), (c)(3), (d)(2), (d)(3), (e)(2),
(e)(3) or (f) of this Section 2.06 (and all Notes issued in exchange therefor or
substitution thereof) will not bear the Private Placement Legend.

     (2) Global Note Legend. Each Global Note will bear a legend in substantially the
following form:

     “THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT
THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO
SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT
NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY
BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE
INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH
THE PRIOR WRITTEN CONSENT OF THE ISSUER.

     UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH

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SUCCESSOR DEPOSITARY. UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE ISSUER 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 MAY BE REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH
OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.”

     (h) Original Issue Discount Legend. Each Note issued hereunder that has more than a de
minimis amount of original issue discount for U.S. federal income tax purposes as determined by the
Issuer shall also bear the following legend on the face thereof:

“THE NOTES HAVE BEEN ISSUED WITH “ORIGINAL ISSUE DISCOUNT” (WITHIN THE MEANING OF SECTION
1273 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED). UPON WRITTEN REQUEST ADDRESSED TO
SECRETARY, ABITIBIBOWATER INC., 1155 METCALFE STREET, SUITE 800, MONTREAL, QUEBEC, CANADA
H3B 5H2, THE ISSUER WILL PROMPTLY MAKE AVAILABLE TO ANY HOLDER OF THE NOTES THE FOLLOWING
INFORMATION: (1) THE ISSUE PRICE AND ISSUE DATE OF THE NOTES, (2) THE AMOUNT OF ORIGINAL
ISSUE DISCOUNT ON THE NOTES AND (3) THE YIELD TO MATURITY OF THE NOTES.”

     (i) Cancellation and/or Adjustment of Global Notes. At such time as all beneficial
interests in a particular Global Note have been exchanged for Definitive Notes or a particular
Global Note has been redeemed, repurchased or canceled in whole and not in part, each such Global
Note will be returned to or retained and canceled by the Trustee in accordance with Section 2.11.
At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged
for or transferred to a Person who will take delivery thereof in the form of a beneficial interest
in another Global Note or for Definitive Notes, the principal amount of Notes represented by such
Global Note will be reduced accordingly and an endorsement will be made on such Global Note by the
Trustee or by the Depositary at the direction of the Trustee to reflect such reduction; and if the
beneficial interest is being exchanged for or transferred to a Person who will take delivery
thereof in the form of a beneficial interest in another Global Note, such other Global Note will be
increased accordingly and an endorsement will be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such increase.

     (j) General Provisions Relating to Transfers and Exchanges.

     (1) To permit registrations of transfers and exchanges, the Issuer will execute and
the Trustee will authenticate Global Notes and Definitive Notes upon receipt of an
Authentication Order in accordance with Section 2.02 or at the Registrar’s request.

     (2) No service charge will be made to a Holder of a beneficial interest in a Global
Note or to a Holder of a Definitive Note for any registration of transfer or exchange, but
the Issuer may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than any such transfer taxes or
similar governmental charge payable upon exchange or transfer pursuant to Section 2.10,
Article 3 and Sections 4.10, 4.15 and 9.05).

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     (3) The Registrar will not be required to register the transfer of or exchange of
any Note selected for redemption in whole or in part, except the unredeemed portion of any
Note being redeemed in part.

     (4) All Global Notes and Definitive Notes issued upon any registration of transfer
or exchange of Global Notes or Definitive Notes will be the valid obligations of the Issuer,
evidencing the same debt, and entitled to the same benefits under this Indenture, as the
Global Notes or Definitive Notes surrendered upon such registration of transfer or exchange.

     (5) Neither the Registrar nor the Issuer will be required:

     (A) to issue, to register the transfer of or to exchange any Notes during a
period beginning at the opening of business 15 days before the day of any selection
of Notes for redemption under Section 3.02 and ending at the close of business on
the day of selection;

     (B) to register the transfer of or to exchange any Note selected for
redemption in whole or in part, except the unredeemed portion of any Note being
redeemed in part; or

     (C) to register the transfer of or to exchange a Note between a record date
and the next succeeding interest payment date.

     (6) Prior to due presentment for the registration of a transfer of any Note, the
Trustee, any Agent and the Issuer may deem and treat the Person in whose name any Note is
registered as the absolute owner of such Note for the purpose of receiving payment of
principal of and interest on such Notes and for all other purposes, and none of the Trustee,
any Agent or the Issuer shall be affected by notice to the contrary.

     (7) The Trustee will authenticate Global Notes and Definitive Notes in accordance
with the provisions of Section 2.02.

     (8) All certifications, certificates and Opinions of Counsel required to be
submitted to the Registrar pursuant to this Section 2.06 to effect a registration of
transfer or exchange may be submitted by facsimile.

     (9) To the extent that any Notes are issued at a discount to their stated
redemption price at maturity and bear the legend required by Section 2.06(h), each group of
Notes bearing a given amount of original issue discount shall be treated as a separate
series only for purposes of the transfer and exchange provisions of this Section 2.06 and
may trade under a separate CUSIP number.

     Section 2.07. Replacement Notes.

     If any mutilated Note is surrendered to the Trustee or the Issuer and the Trustee receives
evidence to its satisfaction of the destruction, loss or theft of any Note, the Issuer will issue
and the Trustee, upon receipt of an Authentication Order, will authenticate a replacement Note if
the Trustee’s requirements are met. If required by the Trustee or the Issuer, an indemnity bond
must be supplied by the Holder that is sufficient in the judgment of the Trustee and the Issuer to
protect the Issuer, the Trustee, any Agent and any authenticating agent from any loss that any of
them may suffer if a Note is replaced. The Issuer may charge for its expenses in replacing a Note.

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     Every replacement Note is an additional obligation of the Issuer and will be entitled to all
of the benefits of this Indenture equally and proportionately with all other Notes duly issued
hereunder.

     Section 2.08. Outstanding Notes.

     The Notes outstanding at any time are all the Notes authenticated by the Trustee except for
those canceled by it, those delivered to it for cancellation, those reductions in the interest in a
Global Note effected by the Trustee in accordance with the provisions, and those described in this
Section 2.08 as not outstanding. Except as set forth in Section 2.09, a Note does not cease to be
outstanding because the Issuer or an Affiliate of the Issuer holds the Note.

     If a Note is replaced pursuant to Section 2.07, it ceases to be outstanding unless the Trustee
receives proof satisfactory to it that the replaced Note is held by a protected purchaser.

     If the principal amount of any Note is considered paid under Section 4.01, it ceases to be
outstanding and interest on it ceases to accrue.

     If the Paying Agent (other than the Issuer, a Subsidiary or an Affiliate of any thereof)
holds, on a redemption date or maturity date, money sufficient to pay Notes payable on that date,
then on and after that date such Notes will be deemed to be no longer outstanding and will cease to
accrue interest.

     Section 2.09. Treasury Notes.

     In determining whether the Holders of the required principal amount of Notes have concurred in
any direction, waiver or consent, Notes owned by the Issuer or any Guarantor, or by any Person
directly or indirectly controlling or controlled by or under direct or indirect common control with
the Issuer or any Guarantor, will be considered as though not outstanding, except that for the
purposes of determining whether the Trustee will be protected in relying on any such direction,
waiver or consent, only Notes that the Trustee knows are so owned will be so disregarded.

     Section 2.10. Temporary Notes.

     Until certificates representing Notes are ready for delivery, the Issuer may prepare and the
Trustee, upon receipt of an Authentication Order, will authenticate temporary Notes. Temporary
Notes will be substantially in the form of certificated Notes but may have variations that the
Issuer considers appropriate for temporary Notes and as may be reasonably acceptable to the
Trustee. Without unreasonable delay, the Issuer will prepare and the Trustee will authenticate
definitive Notes in exchange for temporary Notes.

     Holders of temporary Notes will be entitled to all of the benefits of this Indenture.

     Section 2.11. Cancellation.

     The Issuer at any time may deliver Notes to the Trustee for cancellation. The Registrar and
Paying Agent will forward to the Trustee any Notes surrendered to them for registration of
transfer, exchange or payment. The Trustee and no one else will cancel all Notes surrendered for
registration of transfer, exchange, payment, replacement or cancellation and will destroy canceled
Notes (subject to the record retention requirement of the Exchange Act). Certification of the
destruction of all canceled Notes will be delivered to the Issuer. The Issuer may not issue new
Notes to replace Notes that it has paid or that have been delivered to the Trustee for
cancellation.

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     Section 2.12. Defaulted Interest.

     If the Issuer defaults in a payment of interest on the Notes, it will pay the defaulted
interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted
interest, to the Persons who are Holders on a subsequent special record date, in each case at the
rate provided in the Notes and in Section 4.01. The Issuer will notify the Trustee in writing of
the amount of defaulted interest proposed to be paid on each Note and the date of the proposed
payment. The Issuer will fix or cause to be fixed each such special record date and payment date;
provided that no such special record date may be less than 10 days prior to the related payment
date for such defaulted interest. At least 15 days before the special record date, the Issuer (or,
upon the written request of the Issuer, the Trustee in the name and at the expense of the Issuer)
will send or cause to be sent to Holders a notice that states the special record date, the related
payment date and the amount of such interest to be paid.

ARTICLE 3

REDEMPTION

     Section 3.01. Optional Redemption.

     The Notes may be redeemed, in whole, or from time to time in part, subject to the conditions
and at the redemption prices set forth in Section 5 of the form of Note set forth in Exhibit A
hereto.

     Section 3.02. Mandatory Redemption.

     The Issuer shall redeem Notes, in whole or in part as applicable, under the circumstances
specified in Section 6 of the form of Note set forth in Exhibit A hereto.

     Section 3.03. Notices to Trustee.

     If the Issuer elects to redeem Notes pursuant to Section 3.01 or is required to redeem Notes
pursuant to Section 3.02, it shall notify the Trustee, Registrar and each Paying Agent in writing
of (i) the Section of this Indenture and the Notes pursuant to which the redemption shall occur
(including the relevant provision of the Notes), (ii) the redemption date, (iii) the principal
amount of Notes to be redeemed and (iv) the redemption price. The Issuer shall give notice to the
Trustee provided for in this paragraph at least 30 days but not more than 60 days before a
redemption date if the redemption is pursuant to Section 5 of the Note, unless a shorter or longer
period is acceptable to the Trustee. Such notice shall be accompanied by an Officer’s Certificate
and Opinion of Counsel from the Issuer to the effect that such redemption will comply with the
conditions herein, as well as such notice required to be delivered under Section 3.05 below. If
fewer than all the Notes are to be redeemed, the record date relating to such redemption shall be
selected by the Issuer and given to the Trustee, which record date shall be not fewer than 15 days
after the date of notice to the Trustee. Any such notice pursuant to Section 3.01 may be canceled
at any time prior to notice of such redemption being mailed to any Holder and shall thereby be void
and of no effect.

     Section 3.04. Selection of Notes to Be Redeemed.

     Selection of Notes for redemption will be made by the Registrar on a pro rata basis by lot to
the extent practicable; provided that no Notes of $2,000 principal amount or less shall be redeemed
in part.

     Notwithstanding anything else contained in this Section 3.04, the parties acknowledge and
agree that any partial redemption of a Global Note will be made by the Depository among the
Beneficial Owners

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in accordance with the rules and regulations of the Depository and that the
Trustee shall have no liability in connection with the selection of Beneficial Owners whose
interest in the Global Security will be redeemed or any other actions taken by the Depository in
connection therewith, and by accepting the Notes, the Holders shall waive and release any and all
such liability.

     Section 3.05. Notice of Redemption.

     (a) At least 30 days but not more than 60 days before a redemption date pursuant to
Section 3.01 and at least three Business Days before a redemption date pursuant to Section 3.02,
the Issuer shall mail or cause to be mailed by first-class mail a notice of redemption to each
Holder whose Notes are to be redeemed.

     Any such notice shall identify the Notes to be redeemed and shall state:

     (1) the redemption date;

     (2) the redemption price and the amount of accrued interest to the redemption date;

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

     (4) the provision of the Notes or the Indenture pursuant to which the redemption is
occurring;

     (5) that Notes called for redemption must be surrendered to the Paying Agent to
collect the redemption price;

     (6) if fewer than all the outstanding Notes are to be redeemed, the certificate
numbers and principal amounts of the particular Notes to be redeemed, the aggregate
principal amount of Notes to be redeemed and the aggregate principal amount of Notes to be
outstanding after such partial redemption;

     (7) that, unless the Issuer defaults in making such redemption payment or the
Paying Agent is prohibited from making such payment pursuant to the terms of this Indenture,
interest on Notes (or portion thereof) called for redemption ceases to accrue on and after
the redemption date;

     (8) the CUSIP number, ISIN and/or “Common Code” number, if any, printed on the
Notes being redeemed; and

     (9) that no representation is made as to the correctness or accuracy of the CUSIP
number or ISIN and/or “Common Code” number, if any, listed in such notice or printed on the
Notes.

     (b) At the Issuer’s request, the Registrar and each Paying Agent shall give the notice of
redemption in the Issuer’s name and at the Issuer’s expense. In such event, the Issuer shall
provide the Registrar and each Paying Agent with the information required by this Section 3.05 at
least two Business Days prior to the date such notice is to be provided to Holders in the final
form such notice is to be delivered to Holders.

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     Section 3.06. Effect of Notice of Redemption.

     Once notice of redemption is mailed in accordance with Section 3.05, Notes called for
redemption become due and payable on the redemption date and at the redemption price stated in the
notice, except as provided in the final sentence of Section 5 of the form of Note set forth in
Exhibit A hereto. Upon surrender to the Paying Agent, such Notes shall be paid at the redemption
price stated in the notice; provided, however, that if the redemption date is after a regular
Record Date and on or prior to the Interest Payment Date, the accrued interest shall be payable to
the Holder of the redeemed Notes registered on the relevant Record Date. Failure to give notice or
any defect in the notice to any Holder shall not affect the validity of the notice to any other
Holder.

     Section 3.07. Deposit of Redemption Price.

     Prior to 12:00 noon New York City time on each redemption date, the Issuer shall deposit with
the Paying Agent funds sufficient to pay the redemption price of all Notes to be redeemed on that
date. The Paying Agent shall promptly return to the Issuer any amount so deposited that is not
required for that purpose, except with respect to monies owed as obligations to the Trustee
pursuant to Article 7.

     Unless the Issuer fails to comply with the preceding paragraph and defaults in the payment of
such redemption price, interest on the Notes to be redeemed will cease to accrue on and after the
applicable redemption date, whether or not such Notes are presented for payment.

     Section 3.08. Notes Redeemed in Part.

     Upon surrender of a Note that is redeemed or purchased in part, the Issuer shall issue and,
upon receipt of an Authentication Order, the Trustee shall authenticate for the Holder at the
expense of the Issuer a new Note in principal amount equal to the unredeemed portion of the Note
being redeemed or purchased in part in the name of the Holder thereof.

ARTICLE 4

COVENANTS

     Section 4.01. Payment of Notes.

     The Issuer will pay or cause to be paid the principal of, premium, if any, and interest and
Special Interest, if any, on, the Notes on the dates and in the manner provided in the Notes.
Principal, premium, if any, and interest and Special Interest, if any will be considered paid on
the date due if the Paying Agent, if other than the Issuer or a Subsidiary thereof, holds as of
10:00 a.m. Eastern Time on the due date money deposited by the Issuer in immediately available
funds and designated for and sufficient to pay all principal, premium, if any, and interest then
due. The Issuer will pay all Special Interest, if any, in the same manner on the dates and in the
amounts set forth in the Registration Rights Agreement.

     The Issuer will pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal at the rate equal to 1% per annum in excess of the then
applicable interest rate on the Notes to the extent lawful; it will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest and Special Interest (without regard to any applicable grace period) at the same rate to
the extent lawful.

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     Section 4.02. Maintenance of Office or Agency.

     The Issuer will maintain an office or agency (which may be an office of the Trustee or an
affiliate of the Trustee, Registrar or co-registrar) where Notes may be surrendered for
registration of transfer or for exchange and where notices and demands to or upon the Issuer in
respect of the Notes and this Indenture may be served. The Issuer will give prompt written notice
to the Trustee of the location, and any change in the location, of such office or agency. If at any
time the Issuer fails to maintain any such required office or agency or fails 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.

     The Issuer may also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may from time to time
rescind such designations. The Issuer 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.

     The Issuer hereby designates the Corporate Trust Office of the Trustee as one such office or
agency of the Issuer in accordance with Section 2.03.

     Section 4.03. Reports.

     (a) Whether or not required by the rules and regulations of the SEC, so long as any Notes
are outstanding, the Issuer will furnish to the Trustee, within the time periods specified in the
SEC’s rules and regulations (including any extensions provided therein) for a filer that is a
“non-accelerated filer” (or any successor term that provides an entity with the greatest time
period for filing periodic reports with the SEC) plus five Business Days:

     (1) all quarterly and annual reports that would be required to be filed with the
SEC on Forms 10-K and 10-Q (or any successor or comparable forms) if the Issuer were
required to file such reports; and

     (2) all current reports that would be required to be filed with the SEC on Form 8-K
or any successor or comparable form if the Issuer were required to file such reports.

     All such reports will be prepared in all material respects in accordance with all of the rules
and regulations applicable to such reports. Each annual report on Form 10-K will include a report
on the Issuer’s consolidated financial statements by the Issuer’s certified independent
accountants. Notwithstanding the above reporting requirements, the Issuer shall not be required to
disclose to the Trustee (or the Holders of the Notes) any materials for which it has sought and has
received (or reasonably expects to receive) confidential treatment from the SEC.

     Notwithstanding the foregoing, the Issuer shall not be required to comply with Sections 302,
906 and 404 of the Sarbanes-Oxley Act of 2002, as such provisions have been implemented pursuant to
the rules and regulations of the SEC. The Issuer will not take any action for the purpose of
causing the SEC not to accept any such filings. If, notwithstanding the foregoing, the SEC will
not accept the Issuer’s filings for any reason, the Issuer will post the reports referred to in the
preceding paragraph on its website within the time periods described above.

     The filing of any such information, document or report required by this Section 4.03(a) with
the SEC in a publicly-available format on the SEC’s EDGAR system, or any successor thereto, shall
be deemed to constitute delivery of such document to the Trustee under this Section 4.03; provided,
how-

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ever, that the Issuer shall promptly provide to the Trustee a copy of any such information,
document or report upon the written request of the Trustee.

     (b) For so long as any Notes remain outstanding, if at any time they are not required to
file with the SEC the reports required by paragraph (a) of this Section 4.03, the Issuer and the
Guarantors will furnish to the Holders and to securities analysts and prospective investors, upon
their request, the information required to be delivered pursuant to Rule 144A(d)(4) under the
Securities Act.

     (c) Notwithstanding anything herein to the contrary, the Issuer will not be deemed to have
failed to comply with this Section 4.03 for the purposes of Section 6.01(4) until 120 days after
the proper notice under such clause (4) has been provided.

     (d) For the avoidance of doubt, an Event of Default resulting from a failure to provide
any report required by this Section 4.03 shall be cured upon the provision of such report prior to
the acceleration of the Notes pursuant to Section 6.02.

     Section 4.04. Compliance Certificate.

     (a) The Issuer shall deliver to the Trustee, within 90 days after the end of each fiscal
year commencing with the fiscal year ending December 31, 2010, an Officer’s Certificate stating
that a review of the activities of the Issuer and its Subsidiaries during the preceding fiscal year
has been made under the supervision of the signing Officers with a view to determining whether the
Issuer has kept, observed, performed and fulfilled its obligations under this Indenture and the
Security Documents, and further stating, as to such Officer signing such certificate, that to the
best of his or her knowledge the Issuer has kept, observed, performed and fulfilled each and every
covenant contained in this Indenture and the Security Documents and is not in default in the
performance or observance of any of the terms, provisions and conditions of this Indenture and the
Security Documents (or, if a Default or Event of Default has occurred, describing all such Defaults
or Events of Default of which he or she may have knowledge and what action the Issuer is taking or
proposes to take with respect thereto) and that to the best of his or her knowledge no event has
occurred and remains in existence by reason of which payments on account of the principal of or
interest, if any, on the Notes is prohibited or if such event has occurred, a description of the
event and what action the Issuer is taking or proposes to take with respect thereto.

     (b) So long as any of the Notes are outstanding, the Issuer will deliver to the Trustee,
forthwith upon any Officer becoming aware of any Default or Event of Default, an Officer’s
Certificate specifying such Default or Event of Default and what action the Issuer is taking or
proposes to take with respect thereto.

     Section 4.05. Taxes.

     The Issuer will pay, and will cause each of its Subsidiaries to pay, prior to delinquency, all
taxes, assessments, and governmental levies except such as are contested in good faith and by
appropriate proceedings or where the failure to effect such payment would not reasonably be
expected to have a material adverse effect on the Issuer and its Subsidiaries, taken as a whole.

     Section 4.06. Stay, Extension and Usury Laws.

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

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

     Section 4.07. Restricted Payments.

     (a) The Issuer will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly:

     (1) declare or pay any dividend or make any other payment or distribution on or in
respect of the Issuer’s or any Restricted Subsidiary’s Equity Interests (including any such
payment in connection with any merger or consolidation involving such Person) or to the
direct or indirect holders of the Issuer’s or any Restricted Subsidiary’s Equity Interests,
except dividends or distributions payable solely in Equity Interests of the Issuer or such
Restricted Subsidiary (other than Disqualified Stock) and except dividends or distributions
payable solely to the Issuer or a Restricted Subsidiary (and, if such Restricted Subsidiary
is not a Wholly owned Subsidiary, to its other Equity Interest holders on a pro rata basis
or on a basis that results in the receipt by the Issuer or a Restricted Subsidiary of
dividends or distributions of greater value than it would receive on a pro rata basis);

     (2) purchase, redeem or otherwise acquire or retire for value (including, without
limitation, in connection with any merger or consolidation involving the Issuer) any Equity
Interests of the Issuer;

     (3) make any payment on or with respect to, or purchase, redeem, defease or
otherwise acquire or retire for value any Indebtedness of the Issuer or any Guarantor that
is contractually subordinated to the Notes or to any Note Guarantee (excluding any
intercompany Indebtedness between or among the Issuer and any of its Restricted
Subsidiaries), except (a) a payment of interest or principal at the Stated Maturity thereof
or (b) the purchase, repurchase or other acquisition or retirement for value of any such
Indebtedness in anticipation of satisfying a sinking fund obligation, principal installment
or final maturity, in each case, due within one year of the date of such purchase,
repurchase or other acquisition or retirement for value; or

     (4) make any Restricted Investment

(all such payments and other actions set forth in these clauses (1) through (4) above being
collectively referred to as “Restricted Payments”), unless, at the time of and after giving effect
to such Restricted Payment:

     (i) no Default or Event of Default has occurred and is continuing
or would occur after giving effect to such Restricted Payment;

     (ii) the Issuer would, at the time of such Restricted Payment and
after giving pro forma effect thereto, have been permitted to incur at least
$1.00 of additional Indebtedness pursuant to Section 4.09(a); and

     (iii) such Restricted Payment, together with the aggregate amount
of all other Restricted Payments made by the Issuer and its Restricted
Subsidiaries since the Issue Date (excluding Restricted Payments permitted
by clauses (2),

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(3), (4), (5), (6), (7), (8), (9), (10), (12), (13) and (14)
of Section 4.07(b)), is less than the sum, without duplication of:

     (A) 50% of the Consolidated Net Income of the Issuer for the period (taken
as one accounting period) from the beginning of the first fiscal quarter commencing
after the Release Date to the end of the Issuer’s most recently ended fiscal quarter
for which internal financial statements are available at the time of such Restricted
Payment (or, if such Consolidated Net Income for such period is a deficit, less 100%
of such deficit); plus

     (B) 100% of the aggregate net cash proceeds (or the Fair Market Value of
any property or assets) received by the Issuer since the Release Date as a
contribution to its common equity capital or from the issue or sale of Equity
Interests (other than Disqualified Stock) of the Issuer or from the issue or sale of
convertible or exchangeable Disqualified Stock of the Issuer or convertible or
exchangeable debt securities of the Issuer, in each case that have been converted
into or exchanged for Equity Interests of the Issuer (other than Disqualified Stock,
Equity Interests and convertible or exchangeable Disqualified Stock or debt
securities sold to a Subsidiary of the Issuer); plus

     (C) to the extent that any Restricted Investment that was made after the
Issue Date is sold or otherwise liquidated or repaid, the amount of the cash return
of or on capital (or the Fair Market Value of any property or assets) with respect
to such Restricted Investment (less the cost of disposition, if any); plus

     (D) to the extent that any Unrestricted Subsidiary of the Issuer designated
as such after the Issue Date is redesignated as a Restricted Subsidiary after the
Issue Date, the Fair Market Value of the Issuer’s Restricted Investment in such
Restricted Subsidiary as of the date of such redesignation; plus

     (E) cash dividends received by the Issuer or a Restricted Subsidiary of the
Issuer that is a Guarantor after the Issue Date from an Unrestricted Subsidiary of
the Issuer, to the extent that such dividends were not otherwise included in the
Consolidated Net Income of the Issuer for such period.

     (b) The provisions of Section 4.07(a) will not prohibit:

     (1) the payment of any dividend or distribution on account of Equity Interests or
the consummation of any redemption within 60 days after the date of declaration of the
dividend or distribution on account of Equity Interests or giving of the redemption notice,
as the case may be, if at the date of declaration or notice, the dividend, distribution or
redemption payment would have complied with the provisions of this Section 4.07;

     (2) the making of any Restricted Payment in exchange for, or out of or with the net
proceeds of the sale (other than to a Subsidiary of the Issuer) of, Equity Interests of the
Issuer (other than Disqualified Stock) or from the contribution of common equity capital to
the Issuer; provided that the amount of any such net proceeds that are utilized for any such
Restricted Payment will not be considered to be net proceeds of Equity Interests of the
Issuer for purposes of Section 4.07(a)(iii)(B);

     (3) the purchase, repurchase, redemption, defeasance or other acquisition or
retirement for value of Indebtedness of the Issuer or any Guarantor that is contractually
subordinated to

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the Notes or to any Note Guarantee in exchange for, by conversion into or
out of, or with the net cash proceeds from, a substantially concurrent incurrence of
Permitted Refinancing Indebtedness, which incurrence occurs within 60 days of such purchase,
repurchase, redemption, defeasance or other acquisition or retirement for value;

     (4) any Restricted Payment made in connection with and contemplated by the Plans of
Reorganization;

     (5) so long as no Default or Event of Default has occurred and is continuing, the
repurchase, redemption or other acquisition or retirement for value of any Equity Interests
of the Issuer or any Restricted Subsidiary of the Issuer held by any current or former
officer, director or employee of the Issuer or any of its Restricted Subsidiaries pursuant
to any equity subscription agreement, stock option agreement, shareholders’ agreement or
similar agreement; provided that the aggregate price paid for all such repurchased,
redeemed, acquired or retired Equity Interests may not exceed $5.0 million in any
twelve-month period; provided, further, that such amount in any twelve-month period may be
increased by an amount not to exceed:

     (A) the cash proceeds from the sale of Equity Interests (other than
Disqualified Stock) of the Issuer and, to the extent contributed to the Issuer as
common equity capital, the cash proceeds from the sale of Equity Interests of any of
the Issuer’s direct or indirect parent companies, in each case to members of
management, directors or consultants of the Issuer, any of its Subsidiaries or any
of its direct or indirect parent companies that occurs after the Issue Date to the
extent the cash proceeds from the sale of such Equity Interests have not otherwise
been applied to the making of Restricted Payments pursuant to clause (iii) of
Section 4.07(a) or clause (b)(2) above; plus

     (B) the cash proceeds of key man life insurance policies received by the
Issuer or its Restricted Subsidiaries after the Issue Date; and

in addition, cancellation of Indebtedness owing to the Issuer or any Guarantor from any
current or former officer, director or employee (or any permitted transferees thereof) of
the Issuer or any of its Restricted Subsidiaries in connection with a repurchase of Equity
Interests of the Issuer or any of its Restricted Subsidiaries from such Persons will not be
deemed to constitute a Restricted Payment for purposes of this Section 4.07 or any other
provisions of this Indenture;

     (6) the repurchase of Equity Interests deemed to occur upon the exercise of stock
options, warrants or similar rights to the extent such Equity Interests represent a portion
of the exercise price of those stock options, warrants or similar rights or the payment of
related withholding taxes;

     (7) so long as no Default or Event of Default has occurred and is continuing, the
declaration and payment of regularly scheduled or accrued dividends to holders of any class
or series of Disqualified Stock of the Issuer or any Restricted Subsidiary of the Issuer
issued on or after the Issue Date pursuant to Section 4.09(a);

     (8) so long as no Default or Event of Default has occurred and is continuing or
would be caused thereby, upon the occurrence of a Change of Control and within 60 days after
completion of the offer to repurchase Notes pursuant to Section 4.15, any purchase or
redemption of Indebtedness of the Issuer that is contractually subordinated to the Notes or
any Note Guarantee that is required to be repurchased or redeemed pursuant to the terms
thereof as a result of such Change of Control, at a purchase price not greater than 101% of
the outstanding principal amount

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thereof (plus accrued and unpaid interest); provided that,
prior to such repayment or repurchase, the Issuer shall have made the Change of Control
Offer with respect to the Notes as required by Section 4.15, and the Issuer shall have
repurchased all Notes validly tendered for payment and not withdrawn in connection with such
Change of Control Offer;

     (9) so long as no Default or Event of Default has occurred and is continuing or
would be caused thereby, after the completion of a Net Proceeds Offer pursuant to Section
4.10, any purchase or redemption of Indebtedness of the Issuer that is contractually
subordinated to the Notes or any Note Guarantee that is required to be repurchased or
redeemed pursuant to the terms thereof as a result of such Asset Sale, at a purchase price
not greater than 100% of the outstanding principal amount thereof (plus accrued and unpaid
interest) with any Excess Proceeds that remain after consummation of a Net Proceeds Offer;
provided that, prior to such repayment or repurchase, the Issuer shall have made the Net
Proceeds Offer with respect to the Notes as required by Section 4.10, and the Issuer shall
have repurchased all Notes validly tendered for payment and not withdrawn in connection with
such Net Proceeds Offer;

     (10) the redemption, repurchase or other acquisition for value of any Equity
Interests of any Foreign Subsidiary of the Issuer that are held by a Person that is not an
Affiliate of the Issuer; provided that the consideration for such redemption, repurchase or
other acquisition is not in excess of either (i) the Fair Market Value of such common Equity
Interests or (ii) such amount required by applicable laws, rules or regulations;

     (11) [Reserved];

     (12) purchases of receivables pursuant to a Qualified Receivables Transaction and
the payment or distribution of fees in connection therewith;

     (13) Investments since the Issue Date in joint ventures and Unrestricted
Subsidiaries in an aggregate amount not to exceed $50.0 million, net of any return of or on
such Investments; and

     (14) so long as no Default or Event of Default has occurred and is continuing,
other Restricted Payments in an aggregate amount not to exceed $50.0 million.

     The amount of all Restricted Payments (other than cash) will be the Fair Market Value on the
date of the Restricted Payment of the asset(s) or securities proposed to be transferred or issued
by the Issuer or such Restricted Subsidiary, as the case may be, pursuant to the Restricted
Payment. The Fair Market Value of any assets or securities that are required to be valued by this
Section 4.07 will be determined by the Issuer or, if such Fair Market Value is in excess of $20.0
million, by the Board of Directors of the Issuer whose resolution with respect thereto shall be
delivered to the Trustee. The Board of Directors’ determination must be based upon an opinion or
appraisal issued by an accounting, appraisal or investment banking firm of national standing if the
Fair Market Value exceeds $50.0 million.

     For purposes of determining compliance with this Section 4.07, in the event that a proposed
Restricted Payment (or portion thereof) meets the criteria of more than one of the categories of
Restricted Payments described in Sections 4.07(b)(1) through 4.07(b)(14) above, or is entitled to
be incurred pursuant to Section 4.07(a), the Issuer will be entitled to classify or reclassify
(based on circumstances existing at the time of such reclassification) such Restricted Payment or
portion thereof in any manner that complies with this Section 4.07 and such Restricted Payment will
be treated as having been made pursuant to only such clause or clauses or Section 4.07(a).

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     Section 4.08. Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.

     (a) The Issuer will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly, create or permit to exist or become effective any consensual encumbrance or
restriction on the ability of any Restricted Subsidiary to:

     (1) pay dividends or make any other distributions on its Capital Stock to the
Issuer or any of its Restricted Subsidiaries or with respect to any other interest or
participation in, or measured by, its profits, or pay any indebtedness owed to the Issuer;

     (2) make loans or advances to the Issuer; or

     (3) sell, lease or transfer any of its properties or assets to the Issuer.

     (b) The restrictions in Section 4.08(a) will not apply to encumbrances or restrictions
existing under or by reason of:

     (1) agreements governing Existing Indebtedness and the ABL Credit Agreement, as in
effect on the Release Date and any amendments, restatements, modifications, renewals,
supplements, refundings, replacements or refinancings of those agreements; provided that the
amendments, restatements, modifications, renewals, supplements, refundings, replacements or
refinancings are not, in the good faith judgment of the Board of Directors of the Issuer,
materially more restrictive, taken as a whole, with respect to such dividend and other
payment restrictions than those contained in those agreements on the Issue Date;

     (2) this Indenture, the Notes and the Note Guarantees, and any Exchange Notes and
the related Note Guarantees to be issued pursuant to any Registration Rights Agreement;

     (3) applicable law, rule, regulation, order, approval, license, permit or similar
restriction;

     (4) (a) any instrument governing Indebtedness or Capital Stock of a Person acquired
by the Issuer or any of its Restricted Subsidiaries as in effect at the time of such
acquisition (except to the extent such Indebtedness or Capital Stock was incurred in
connection with or in contemplation of such acquisition), which encumbrance or restriction
is not applicable to any Person, or the properties or assets of any Person, other than the
Person, or the property or assets of the Person, so acquired; provided that, in the case of
Indebtedness, such Indebtedness was permitted by the terms of this Indenture to be incurred
and (b) any amendment, modification, replacement or refinancing thereof; provided, however,
that such encumbrances or restrictions are not, in the good faith judgment of the Board of
Directors of the Issuer, materially more restrictive, taken as a whole, with respect to
consensual encumbrances or restrictions set forth in clause (1), (2) or (3) of Section
4.08(a) than such encumbrances or restrictions prior to such amendment, modification,
replacement or refinancing;

     (5) customary non-assignment provisions in contracts and licenses entered into in
the ordinary course of business;

     (6) purchase money obligations for property acquired in the ordinary course of
business and Capital Lease Obligations that impose restrictions on the property purchased or
leased of the nature described in Section 4.08(a)(3)

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     (7) any agreement for the sale or other disposition of the Capital Stock or assets
of a Restricted Subsidiary that restricts distributions by that Restricted Subsidiary
pending such sale or other disposition;

     (8) Permitted Refinancing Indebtedness; provided that the restrictions contained in
the agreements governing such Permitted Refinancing Indebtedness are not, in the good faith
judgment of the Board of Directors of the Issuer, materially more restrictive, taken as a
whole, than those contained in the agreements governing the Indebtedness being refinanced,
extended, renewed, refunded, replaced, defeased or discharged;

     (9) Liens permitted to be incurred under Section 4.12 that limit the right of the
debtor to dispose of the assets subject to such Liens;

     (10) customary provisions in joint venture agreements or other similar agreements
entered into in the ordinary course;

     (11) other Indebtedness or Disqualified Stock of any Subsidiary that is not a
Restricted Subsidiary so long as such encumbrances and restrictions contained in any
agreement or instrument will not materially affect the Issuer’s ability to make anticipated
principal or interest payments on the Notes (as determined in good faith by the Issuer);

     (12) customary provisions in Permitted Hedging Obligations;

     (13) provisions limiting the disposition or distribution of assets or property in
joint venture agreements, asset sale agreements, sale-leaseback agreements, stock sale
agreements and other similar agreements entered into with the approval of the Issuer’s Board
of Directors, which limitation is applicable only to the assets that are the subject of such
agreements;

     (14) restrictions on cash or other deposits or net worth imposed by customers under
contracts or other agreements entered into in the ordinary course of business;

     (15) restrictions in other Indebtedness incurred in compliance with Section 4.09;
provided that such restrictions, taken as a whole, are, in the good faith judgment of the
Issuer’s Board of Directors, no more materially restrictive with respect to such
encumbrances and restrictions than those contained in the existing agreements referenced in
clauses (1) and (2) of this Section 4.08(b);

     (16) encumbrances on property that exist at the time such property was acquired by
the Issuer or any Restricted Subsidiary;

     (17) restrictions applicable to Foreign Subsidiaries of the Issuer or of any
Guarantor, arising under the documentation governing Indebtedness of Foreign Subsidiaries
that is permitted to be incurred by this Indenture;

     (18) Indebtedness or other contractual requirements of a Receivables Entity in
connection with a Qualified Receivables Transaction; provided that such restrictions apply
to such Receivables Entity;

     (19) encumbrances or restrictions consisting of customary non-assignment provisions
in leases governing leasehold interests to the extent such provisions restrict the transfer
of the lease or the property leased thereunder;

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     (20) customary guarantees by the Issuer of non-Indebtedness obligations of a
Subsidiary set forth in leases, licenses and other agreements entered into by the Subsidiary
in the ordinary course of business;

     (21) any legislation, regulation, order-in-council or similar enactment, whether in
effect on the Issue Date or adopted thereafter, pursuant to which the Issuer or any
Subsidiary is eligible for funding relief in respect of its pension deficit funding
obligations and any agreements or arrangements entered into for purposes of effecting any
such legislation, regulation, order-in-council or similar enactment; and

     (22) contractual encumbrances or restrictions in effect on the Issue Date, and any
amendments, restatements, modifications, supplements, renewals, extensions, refundings,
replacements, or refinancings of those agreements; provided that the amendments,
restatements, modifications, supplements, renewals, extensions, refundings, replacements, or
refinancings are not, in the good faith judgment of the Board of Directors of the Issuer,
materially more restrictive, taken as a whole, with respect to consensual encumbrances or
restrictions set forth in clause (1), (2) or (3) of Section 4.08(a) than those contained in
those agreements on the Issue Date.

     For purposes of determining compliance with this Section 4.08, the subordination of loans or
advances made to the Issuer or a Restricted Subsidiary to other Indebtedness incurred by the Issuer
or any such Restricted Subsidiary shall not be deemed a restriction on the ability to make loans or
advances.

     Section 4.09. Incurrence of Indebtedness and Issuance of Preferred Stock.

     (a) The Issuer will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly, create, incur, issue, assume, guarantee or otherwise become directly or
indirectly liable, contingently or otherwise, with respect to (collectively, “incur”) any
Indebtedness (including Acquired Debt), and the Issuer will not issue any Disqualified Stock and
will not permit any of its Restricted Subsidiaries to issue any shares of preferred stock;
provided, however, that the Issuer may incur Indebtedness (including Acquired Debt) or issue
Disqualified Stock, and the Guarantors may incur Indebtedness (including Acquired Debt) or issue
preferred stock, if the Fixed Charge Coverage Ratio for the Issuer’s most recently ended four full
fiscal quarters for which internal financial statements are available immediately preceding the
date on which such additional Indebtedness is incurred or such Disqualified Stock or preferred
stock is issued, as the case may be, would have been at least 2.0 to 1.0, determined on a pro forma
basis (including a pro forma application of the net proceeds therefrom), as if the additional
Indebtedness had been incurred or the Disqualified Stock or the preferred stock had been issued, as
the case may be, at the beginning of such four-quarter period.

     (b) The provisions of Section 4.09(a) will not prohibit the incurrence of any of the
following items of Indebtedness or the issuance of any of the following Disqualified Stock
(collectively, “Permitted Debt”):

     (1) (x) the incurrence by the Issuer and any Restricted Subsidiary and the
guarantee thereof by any Restricted Subsidiary of Indebtedness and letters of credit (and
reimbursement obligations with respect thereto) under one or more Credit Facilities (with
letters of credit being deemed to have a principal amount equal to the maximum remaining
potential liability of the Issuer and its Restricted Subsidiaries thereunder) and (y)
Indebtedness incurred by a Receivables Entity in a Qualified Receivables Transaction, in an
aggregate principal amount at any one time outstanding under this clause (1) not to exceed
the greater of:

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     (A) $700.0 million less the amount applied to repay Indebtedness pursuant
to Section 4.10(c)(1); and

     (B) the amount of the Borrowing Base as of the date of such incurrence;

     (2) the incurrence by the Issuer and its Restricted Subsidiaries of the Existing
Indebtedness;

     (3) the incurrence by the Issuer and the Guarantors of Indebtedness represented by
the Initial Notes and the related Note Guarantees and the Exchange Notes and related
Guarantees thereof to be issued pursuant to the Registration Rights Agreement;

     (4) [Reserved];

     (5) the incurrence by the Issuer or any of its Restricted Subsidiaries of
Attributable Debt in connection with a sale and leaseback transaction or Indebtedness
represented by Capital Lease Obligations, mortgage financings or purchase money obligations,
in each case, incurred for the purpose of financing all or any part of the purchase price or
cost of design, development, construction, installation, expansion, repair or improvement of
property (either real or personal), plant or equipment used in the business of the Issuer or
any of its Restricted Subsidiaries (in each case, whether through the direct purchase of
such assets or the purchase of Equity Interests of any Person owning such assets), which
incurrence occurs within 270 days of such purchase, design, development, construction,
installation, expansion, repair or improvement in an aggregate principal amount, including
all Permitted Refinancing Indebtedness incurred to renew, refund, refinance, replace,
defease or discharge any Indebtedness incurred pursuant to this clause (5), not to exceed,
outstanding as of any date of incurrence of Indebtedness pursuant to this clause (5), the
greater of (x) $125.0 million and (y) 2.0% of Total Assets;

     (6) the incurrence by the Issuer or any of its Restricted Subsidiaries of Permitted
Refinancing Indebtedness in exchange for, or the net proceeds of which are used to extend,
renew, refund, refinance, replace, defease or discharge Indebtedness (other than
intercompany Indebtedness) that was permitted to be incurred under Section 4.09(a) or clause
(2), (3), (5), (6), (17) or (22) of this Section 4.09(b);

     (7) the incurrence by the Issuer or any of its Restricted Subsidiaries of
intercompany Indebtedness between or among the Issuer and any of its Restricted
Subsidiaries; provided, however, that:

     (A) if the Issuer or any Guarantor is the obligor on such Indebtedness and
the payee is not the Issuer or a Guarantor, such Indebtedness (other than
Indebtedness incurred in the ordinary course in connection with the cash management
operations of the Issuer and its Subsidiaries) must be expressly subordinated to the
prior payment in full in cash of all Obligations then due with respect to the Notes,
in the case of the Issuer, or the Note Guarantee, in the case of a Guarantor; and

     (B) (i) any subsequent issuance or transfer of Equity Interests that
results in any such Indebtedness being held by a Person other than the Issuer or a
Restricted Subsidiary of the Issuer and (ii) any sale or other transfer of any such
Indebtedness to a Person that is not either the Issuer or a Restricted Subsidiary of
the Issuer,

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will be deemed, in each case, to constitute an incurrence of such Indebtedness by the Issuer
or such Restricted Subsidiary, as the case may be, that was not permitted by this clause
(7);

     (8) the issuance by any of the Issuer’s Restricted Subsidiaries to the Issuer or to
any of its Restricted Subsidiaries of shares of preferred stock; provided, however, that:

     (A) any subsequent issuance or transfer of Equity Interests that results in
any such preferred stock being held by a Person other than the Issuer or a
Restricted Subsidiary of the Issuer; and

     (B) any sale or other transfer of any such preferred stock to a Person that
is not either the Issuer or a Restricted Subsidiary of the Issuer,

will be deemed, in each case, to constitute an issuance of such preferred stock by such
Restricted Subsidiary that was not permitted by this clause (8);

     (9) Hedging Obligations that are not incurred for speculative purposes but for the
purpose of (a) fixing or hedging interest rate risk with respect to any Indebtedness that is
permitted by the terms of this Indenture to be outstanding; (b) fixing or hedging currency
exchange rate risk with respect to any currency exchanges; or (c) fixing or hedging
commodity price risk, including the price or cost of raw materials, emission rights,
manufactured products or related commodities, with respect to any commodity purchases or
sales;

     (10) the Guarantee by the Issuer or any of the Guarantors of Indebtedness of the
Issuer or a Restricted Subsidiary of the Issuer that was permitted to be incurred by another
provision of this Section 4.09; provided that if the Indebtedness being Guaranteed is
subordinated in right of payment to the Notes, then the Guarantee must be subordinated in
right of payment to the same extent as the Indebtedness Guaranteed;

     (11) the incurrence by the Issuer or any of its Restricted Subsidiaries of
Indebtedness in respect of workers’ compensation claims, unemployment or other insurance or
self-insurance obligations, bankers’ acceptances, performance, completion and surety bonds,
completion guarantees and similar obligations in the ordinary course of business;

     (12) the incurrence by the Issuer or any of its Restricted Subsidiaries of
Indebtedness arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument inadvertently drawn against insufficient funds, so long as such
Indebtedness is covered within five Business Days;

     (13) the incurrence by the Issuer or any of its Restricted Subsidiaries of
Indebtedness arising from agreements of the Issuer or such Restricted Subsidiary providing
for indemnification, adjustment of purchase price or similar obligations, in each case,
incurred or assumed in connection with the sale or other disposition of any business, assets
or Capital Stock of the Issuer or any of its Restricted Subsidiaries, other than guarantees
of Indebtedness incurred by any Person acquiring all or any portion of such business, assets
or Capital Stock; provided that (A) the maximum aggregate liability in respect of all such
Indebtedness shall at no time exceed the net proceeds, whether or not cash, actually
received by the Issuer and its Restricted Subsidiaries in connection with such disposition
and (B) such Indebtedness is not reflected in the balance sheet of the Issuer or any of its
Restricted Subsidiaries (contingent obligations referred to in a footnote to financial
statements and not otherwise reflected on its balance sheet will not be deemed to be
reflected on such balance sheet for purposes of this clause (13));

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     (14) the incurrence of contingent liabilities arising out of endorsements of checks
and other negotiable instruments for deposit or collection in the ordinary course of
business;

     (15) the incurrence of Indebtedness consisting of guarantees of loans or other
extensions of credit to or on behalf of current or former officers, directors, employees, or
consultants of the Issuer, any of its Restricted Subsidiaries, or any direct or indirect
parent of the Issuer for the purpose of permitting such Persons to purchase Capital Stock of
the Issuer or any direct or indirect parent of the Issuer; provided that the aggregate
amount of such Indebtedness and Investments made pursuant to clause (8) of the definition of
“Permitted Investments” may not exceed $5.0 million at any one time outstanding;

     (16) the incurrence by the Issuer or any of its Restricted Subsidiaries of
Indebtedness solely in respect of premium financing and/or similar deferred payment
obligations with respect to insurance policies purchased in the ordinary course of business;

     (17) (a) the incurrence by a wholly owned Foreign Subsidiary (other than a Foreign
Subsidiary organized under the laws of Canada or any province thereof) of the Issuer of
additional Indebtedness in an aggregate principal amount, including all Permitted
Refinancing Indebtedness incurred to renew, refund, refinance, replace, defease or discharge
any Indebtedness incurred pursuant to this clause (17)(a), not to exceed $25.0 million at
any time outstanding and (b) the incurrence by a wholly owned Foreign Subsidiary organized
under the laws of Canada or any province thereof of the Issuer or of any Guarantor of
additional Indebtedness in an aggregate principal amount, including all Permitted
Refinancing Indebtedness incurred to renew, refund, refinance, replace, defease or discharge
any Indebtedness incurred pursuant to this clause (17)(b) not to exceed $35.0 million at any
time outstanding;

     (18) the incurrence of Indebtedness under any agreement between the Issuer or any
Restricted Subsidiary and any commercial bank or other financial institution relating to
treasury, depository and cash management services, employee credit card arrangements or
automated clearinghouse transfers of funds;

     (19) the incurrence of Indebtedness of the Issuer or any Restricted Subsidiary
consisting of take-or-pay obligations entered into in the ordinary course of business;

     (20) the incurrence of Indebtedness incurred on behalf of, or representing
guarantees of Indebtedness of, joint ventures not to exceed $50.0 million at any time
outstanding;

     (21) the incurrence by the Issuer or any Restricted Subsidiaries of Obligations in
respect of bankers’ acceptances, tender, bid, judgment, appeal, performance or governmental
contract bonds and completion guarantees, surety, standby letters of credit and warranty and
contractual service obligations of a like nature, trade letters of credit and documentary
letters of credit and similar bonds or guarantees provided by the Issuer or any Restricted
Subsidiary in the ordinary course of business;

     (22) Indebtedness, Disqualified Stock or preferred stock of Persons that are
acquired by the Issuer or any Restricted Subsidiary or merged into the Issuer or a
Restricted Subsidiary in accordance with the terms of this Indenture; provided that such
Indebtedness, Disqualified Stock or preferred stock is not incurred in contemplation of such
acquisition or merger; provided further that after giving pro forma effect to such
acquisition or merger, either:

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     (A) the Issuer would be permitted to incur at least $1.00 of additional
Indebtedness pursuant to Section 4.09(a); or

     (B) the Fixed Charge Coverage Ratio would be greater than that immediately
prior to such acquisition or merger; and

     (23) the incurrence by the Issuer or any of its Restricted Subsidiaries of
additional Indebtedness or Disqualified Stock in an aggregate principal amount (or accreted
value, as applicable) at any time outstanding, including all Permitted Refinancing
Indebtedness incurred to renew, refund, refinance, replace, defease or discharge any
Indebtedness incurred pursuant to this clause (23), not to exceed $150.0 million.

     Any Indebtedness incurred under a Credit Facility pursuant to Section 4.09(b)(1) shall be
deemed for purposes of this covenant to have been incurred on the date such Indebtedness was first
incurred until such Indebtedness is actually repaid, other than pursuant to “cash sweep” provisions
or any similar provisions under any Credit Facility that provide that such Indebtedness is deemed
to be repaid daily (or otherwise periodically).

     For purposes of determining compliance with this Section 4.09, in the event that an item of
proposed Indebtedness or Disqualified Stock meets the criteria of more than one of the categories
of Permitted Debt described in clauses (1) through (23) above or is entitled to be incurred
pursuant to Section 4.09(a), the Issuer will be permitted to classify all or a portion of such item
of Indebtedness or Disqualified Stock on the date of its incurrence, or later reclassify all or a
portion of such item of Indebtedness or Disqualified Stock (based on circumstances existing on the
date of such reclassification), in any manner that complies with this Section 4.09, except that
Indebtedness outstanding under the ABL Credit Agreement and under receivables securitization
facilities related to a Qualified Receivables Transaction outstanding on the Release Date will
always be deemed to have been incurred on such date in reliance on the exception provided by clause
(1) of the definition of “Permitted Debt.” The accrual of interest, the accretion or amortization
of original issue discount, the payment of interest on any Indebtedness in the form of additional
Indebtedness with the same terms, the reclassification of preferred stock as Indebtedness due to a
change in accounting principles, and the payment of dividends on Disqualified Stock in the form of
additional shares of the same class of Disqualified Stock will not be deemed to be an incurrence of
Indebtedness or an issuance of Disqualified Stock for purposes of this Section 4.09; provided, in
each such case, that the amount of any such accrual, accretion, or payment is included in Fixed
Charges of the Issuer as accrued. Notwithstanding any other provision of this Section 4.09, the
maximum amount of Indebtedness that the Issuer or any Restricted Subsidiary may incur pursuant to
this Section 4.09 shall not be deemed to be exceeded solely as a result of fluctuations in exchange
rates or currency values.

     The amount of any Indebtedness outstanding as of any date will be:

(i) the accreted value of the Indebtedness, in the case of any Indebtedness issued with
original issue discount;

(ii) the principal amount of the Indebtedness, in the case of any other Indebtedness;
and

(iii) in respect of Indebtedness of another Person secured by a Lien on the assets of
the specified Person, the lesser of:

(A) the Fair Market Value of such assets at the date of determination; and

(B) the amount of the Indebtedness of the other Person.

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     Section 4.10. Asset Sales.

     (a) The Issuer will not, and will not permit any of its Restricted Subsidiaries to,
consummate an Asset Sale unless:

     (1) the Issuer (or its Restricted Subsidiary, as the case may be) receives
consideration at the time of the Asset Sale at least equal to the Fair Market Value of the
assets or Equity Interests issued or sold or otherwise disposed of;

     (2) at least 75% of the consideration received in the Asset Sale by the Issuer or
such Restricted Subsidiary is in the form of cash or Cash Equivalents. For purposes of this
clause (2), each of the following shall be deemed to be cash:

     (A) except in the case of a Sale of Notes Priority Collateral, any
liabilities, as shown on the Issuer’s most recent consolidated balance sheet, of the
Issuer or any Restricted Subsidiary (other than contingent liabilities and
liabilities that are by their terms subordinated to the Notes or any Note Guarantee)
that are assumed by the transferee of any such assets pursuant to a customary
assumption or similar agreement;

     (B) except in the case of a Sale of Notes Priority Collateral, any
securities, notes or other obligations received by the Issuer or any such Restricted
Subsidiary from such transferee that are converted by the Issuer or such Restricted
Subsidiary into cash or Cash Equivalents within 180 days of receipt thereof, to the
extent of the cash or Cash Equivalents received in that conversion;

     (C) except in the case of a Sale of Notes Priority Collateral, any
Designated Non-cash Consideration received by the Issuer or any Restricted
Subsidiary thereof in such Asset Sale having a Fair Market Value, taken together
with all other Designated Non-cash Consideration received pursuant to this clause
(C) that is at that time outstanding, not to exceed the greater of (x) $50.0 million
or (y) 1.0% of Total Assets at the time of receipt of such Designated Non-cash
Consideration, with the Fair Market Value of each item of Designated Non-cash
Consideration being measured at the time received without giving effect to
subsequent changes in value; and

     (D) any stock or assets of the kind referred to in clause (1) or (3) of
Section 4.10(b) (in the case of a Sale of Notes Priority Collateral) or clause (2)
or (4) of Section 4.10(c) (in any other case); and

     (3) in the case of a Sale of Notes Priority Collateral (A) at least 75% of the
consideration received in the Asset Sale by the Issuer or such Restricted Subsidiary is in
the form of cash or Marketable Securities and (B) the Issuer (or its Restricted Subsidiary,
as the case may be) deposits the Net Proceeds therefrom (to the extent they are in excess of
$5.0 million) as Collateral into the Collateral Proceeds Account in accordance with Section
13.08.

     Notwithstanding the foregoing, the Issuer will not, and will not permit any of its Restricted
Subsidiaries to, consummate an Asset Sale at any time before the date that is the six month
anniversary of the Release Date, other than an Asset Sale with respect to Specified Assets;
provided that the first $100.0 million of Net Proceeds from any such Asset Sale of Specified Assets
consummated before such six month anniversary shall be applied pursuant to Section 3.02 and any
excess amount of Net Proceeds from any such Asset Sale of Specified Assets shall be applied in
accordance with the subsequent paragraphs.

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     (b) If the Issuer (or its Restricted Subsidiary, as the case may be) receives any Net
Proceeds (to the extent they are in excess of $5.0 million) from a Casualty or Condemnation Event
directly attributable to any Notes Priority Collateral, it will promptly deposit such Net Proceeds
in the Collateral Proceeds Account in accordance with Section 13.08. Within 360 days after the
receipt of any Net Proceeds from any Sale of Notes Priority Collateral or a Casualty or
Condemnation Event directly attributable to any Notes Priority Collateral, the Issuer (or the
applicable Restricted Subsidiary, as the case may be) may apply those Net Proceeds at its option:

     (1) to acquire all or substantially all of the assets of, or any Capital Stock of,
a Permitted Business, if, after giving effect to any such acquisition, such Permitted
Business is owned by the Issuer or a Guarantor and such Permitted Business includes Notes
Priority Collateral with a Fair Market Value at least equal to the Fair Market Value of the
Notes Priority Collateral disposed of in the applicable Sale of Notes Priority Collateral;

     (2) to make capital expenditures on assets that constitute Notes Priority
Collateral;

     (3) to acquire other assets that are Notes Priority Collateral and that are used or
useful in a Permitted Business; and/or

     (4) to repay Permitted Additional Pari Passu Obligations in an amount not to exceed
the product of (x) the quotient equal to the principal amount of Additional Pari Passu
Obligations then outstanding divided by the principal amount of First Priority Obligations
then outstanding, and (y) the Net Proceeds received from such Sale of Notes Priority
Collateral or Casualty or Condemnation Event, with the remaining Net Proceeds used to make a
Net Proceeds Offer solely to Holders of the Notes.

     (c) Within 360 days after the receipt of any Net Proceeds from an Asset Sale (other than
from a Sale of Notes Priority Collateral), the Issuer (or the applicable Restricted Subsidiary, as
the case may be) may apply such Net Proceeds at its option:

     (1) (A) in the case of Net Proceeds from any Asset Sale of assets of any
non-Guarantor, to repay Indebtedness of such non-Guarantor or (B) in the case of any other
Net Proceeds, to repay ABL Obligations;

     (2) to acquire all or substantially all of the assets of, or any Capital Stock of,
another Permitted Business, if, after giving effect to any such acquisition of Capital
Stock, the Permitted Business is or becomes a Restricted Subsidiary of the Issuer;

     (3) to make a capital expenditure; and/or

     (4) to acquire other assets that are used or useful in a Permitted Business.

     (d) Pending the final application of any Net Proceeds (other than Net Proceeds from any
Sale of Notes Priority Collateral or a Casualty or Condemnation Event directly attributable to any
Notes Priority Collateral), the Issuer or the applicable Restricted Subsidiary, as the case may be,
may temporarily reduce revolving credit borrowings or otherwise invest the Net Proceeds in any
manner that is not prohibited by this Indenture. Any binding commitment to apply Net Proceeds to
invest in accordance with clause (1), (2) or (3) of Section 4.10(b) (in the case of Net Proceeds of
Notes Priority Collateral) or clause (2), (3) or (4) of Section 4.10(c) (in the case of any other
Net Proceeds) shall be treated as a permitted final application of Net Proceeds from the date of
such commitment so long as the Issuer or such Restricted Subsidiary enters into such commitment
with the good faith expectation that such Net Proceeds

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will be applied to satisfy such commitment within 180 days of such commitment; provided that
if such commitment is later canceled, terminated or otherwise not consummated after the 360-day
period for any reason, then such Net Proceeds shall constitute “Excess Proceeds”.

     (e) Any Net Proceeds from Asset Sales (including Sales of Notes Priority Collateral, but
excluding Excluded Proceeds) or Casualty or Condemnation Events related to Notes Priority
Collateral that are not applied or invested as provided in Section 4.10(b) (in the case of Sales of
Notes Priority Collateral or Net Proceeds from a Casualty or Condemnation Event related to Notes
Priority Collateral) or (c) (in the case of any other Net Proceeds of any Asset Sale except to the
extent provided in clause (a) above) will constitute “Excess Proceeds.” When the aggregate amount
of Excess Proceeds exceeds $25.0 million, within 30 days thereof, the Issuer will make an offer (a
"Net Proceeds Offer”) to all Holders of Notes and to the holders of any Permitted Additional Pari
Passu Obligations containing provisions similar to those set forth in this Section 4.10 (except
with respect to a Net Proceeds Offer made solely to Holders of Notes pursuant to clause (4) of
Section 4.10(b)) with respect to asset sales to purchase the maximum principal amount of Notes and
such other Permitted Additional Pari Passu Obligations (plus all accrued interest and the amount of
all fees and expenses, including premiums, incurred in connection therewith) that may be purchased
out of the Excess Proceeds. The offer price in any Net Proceeds Offer will be equal to 100% of the
principal amount, plus accrued and unpaid interest, if any, to the date of purchase, and will be
payable in cash.

     (f) In the event that, pursuant to the foregoing provisions of this Section 4.10, the
Issuer is required to commence a Net Proceeds Offer, it will follow the procedures specified below.
The Net Proceeds Offer shall be made to all Holders and, except as provided Section 4.10(b), all
holders of Permitted Additional Pari Passu Obligations (other than Additional Notes) containing
provisions similar to those set forth in this Indenture with respect to offers to purchase or
redeem with the proceeds of sales of assets. The Net Proceeds Offer will remain open for a period
of at least 20 Business Days following its commencement and not more than 30 Business Days, except
to the extent that a longer period is required by applicable law (the “Offer Period”). No later
than three Business Days after the termination of the Offer Period (the “Purchase Date”), the
Issuer will apply all Excess Proceeds (the “Offer Amount”) to the purchase of Notes and, except as
provided above, such other Permitted Additional Pari Passu Obligations (on a pro rata basis, with
such adjustments as may be needed so that only Notes in minimum amounts of $2,000 and integral
multiples of $1,000 will be purchased) or, if less than the Offer Amount has been tendered, all
Notes and such other Permitted Additional Pari Passu Obligations tendered in response to the Net
Proceeds Offer. Payment for any Notes so purchased will be made in the same manner as interest
payments are made.

     (g) If the Purchase Date is on or after a Record Date and on or before the related
Interest Payment Date, any accrued and unpaid interest and Special Interest, if any, will be paid
to the Person in whose name a Note is registered at the close of business on such Record Date, and
no additional interest will be payable to Holders who tender Notes pursuant to the Net Proceeds
Offer.

     (h) Upon the commencement of a Net Proceeds Offer, the Issuer will send a notice thereof
to each of the Holders, with a copy to the Trustee. The notice will contain all instructions and
materials necessary to enable such Holders to tender Notes pursuant to the Net Proceeds Offer. The
notice, which will govern the terms of the Net Proceeds Offer, will state:

     (1) that the Net Proceeds Offer is being made pursuant to this Section 4.10 and the
length of time the Net Proceeds Offer will remain open;

     (2) the Offer Amount, the purchase price and the Purchase Date;

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

     (4) that, unless the Issuer defaults in making such payment, any Note accepted for
payment pursuant to the Net Proceeds Offer will cease to accrue interest on and after the
Purchase Date;

     (5) that Holders electing to have a Note purchased pursuant to any Net Proceeds
Offer may elect to have Notes purchased in denominations of $1,000 or integral multiples of
$1,000 in excess thereof only (except that no Note may be purchased in part to the extent
the remaining portion of such Note would be less than $2,000);

     (6) that Holders electing to have Notes purchased pursuant to any Net Proceeds
Offer will be required to surrender the Note, with the form entitled “Option of Holder to
Elect Purchase” attached to the Notes completed, or transfer by book-entry transfer, to the
Issuer, a Depositary, if appointed by the Issuer, or a Paying Agent at the address specified
in the notice at least three days before the Purchase Date;

     (7) that Holders will be entitled to withdraw their election if the Issuer, the
Depositary or the Paying Agent, as the case may be, receives, not later than the expiration
of the Offer Period, a telegram, telex, facsimile transmission or letter setting forth the
name of the Holder, the principal amount of the Note the Holder delivered for purchase and a
statement that such Holder is withdrawing his election to have such Note purchased;

     (8) that, except as provided above, if the aggregate principal amount of Notes and
other Permitted Additional Pari Passu Obligations surrendered by holders thereof exceeds the
Offer Amount, the Issuer will select the Notes and other Permitted Additional Pari Passu
Obligations to be purchased on a pro rata basis based on the principal amount of Notes and
such other Permitted Additional Pari Passu Obligations surrendered (with such adjustments as
may be deemed appropriate by the Issuer so that only Notes in denominations of $2,000 and
integral multiples of $1,000 in excess thereof will remain outstanding); and

     (9) that Holders whose Notes were purchased only in part will be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered (or
transferred by book-entry transfer).

     (i) On or before the Purchase Date, the Issuer will, to the extent lawful, accept for
payment, on a pro rata basis to the extent necessary and consistent with the provisions of this
Section 4.10, the Offer Amount of Notes or portions thereof tendered pursuant to the Net Proceeds
Offer, or if less than the Offer Amount has been tendered, all Notes tendered, and will deliver or
cause to be delivered to the Trustee the Notes properly accepted together with an Officer’s
Certificate stating that such Notes or portions thereof were accepted for payment by the Issuer in
accordance with the terms of this Section 4.10. The Issuer, the Depositary or the Paying Agent, as
the case may be, will promptly (but in any case not later than five days after the Purchase Date)
mail or deliver to each tendering Holder an amount equal to the purchase price of the Notes
tendered by such Holder and accepted by the Issuer for purchase, and the Issuer will promptly issue
a new Note, and the Trustee, upon written request from the Issuer, will authenticate and mail or
deliver (or cause to be transferred by book-entry) such new Note to such Holder, in a principal
amount equal to any unpurchased portion of the Note surrendered. Any Note not so accepted shall be
promptly mailed or delivered by the Issuer to the Holder thereof. The Issuer will publicly
announce the results of the Net Proceeds Offer on the Purchase Date.

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     (j) If any Excess Proceeds remain after consummation of a Net Proceeds Offer, those Excess
Proceeds will be released from the Collateral Proceeds Account in accordance with Section 13.08,
and the Issuer may use those Excess Proceeds for any purpose not otherwise prohibited by this
Indenture. If the aggregate principal amount of Notes and Permitted Additional Pari Passu
Obligations tendered into such Net Proceeds Offer exceeds the amount of Excess Proceeds, the
Trustee will select the Notes and Permitted Additional Pari Passu Obligations on a pro rata basis
with such adjustments as may be needed so that only Notes in minimum amounts of $2,000 and integral
multiples of $1,000 will be purchased. Upon completion of each Net Proceeds Offer, the amount of
Excess Proceeds will be reset at zero (and to the extent such Net Proceeds are held in the
Collateral Proceeds Account, such Net Proceeds shall be released to the Issuer). If the Issuer
makes a Net Proceeds Offer prior to the 360-day deadline specified in Section 4.10(b) or (c), as
applicable, with respect to any Net Proceeds, the Issuer’s obligations with respect to such Net
Proceeds under this covenant shall be deemed satisfied after completion of such Net Proceeds Offer.

     (k) The Issuer will comply with the requirements of 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 connection with each repurchase of Notes pursuant to a Change of Control or a Net
Proceeds Offer. To the extent that the provisions of any securities laws or regulations conflict
with the provisions of this Section 4.10, the Issuer will comply with the applicable securities
laws and regulations and will not be deemed to have breached its obligations under this Section
4.10 by virtue of such compliance.

     (l) For purposes of this Section 4.10, (x) any Additional Notes shall be deemed to be
Notes and not Permitted Additional Pari Passu Obligations and (y) the Net Cash Proceeds
attributable to the sale of (i) Notes Priority Collateral consisting of Equity Interests of a
Person that is not a Guarantor shall be deemed to be equal to the equity value of such Equity
Interests and (ii) a group of assets consisting of both Notes Priority Collateral and assets that
are not Notes Priority Collateral shall be deemed to be Net Cash Proceeds from Notes Priority
Collateral and such other assets, respectively, based on the Fair Market Value of the Notes
Priority Collateral and such other assets (as determined in good faith by the Issuer, which
determination shall be conclusive absent manifest error).

     Section 4.11. Transactions with Affiliates.

     (a) The Issuer will not, and will not permit any of its Restricted Subsidiaries to, make
any payment to, or sell, lease, transfer or otherwise dispose of any of its properties or assets
to, or purchase any property or assets from, or enter into or make or amend any transaction,
contract, agreement, understanding, loan, advance or guarantee with, or for the benefit of, any
Affiliate of the Issuer (each an “Affiliate Transaction”), unless:

     (1) the Affiliate Transaction is on terms that are no less favorable to the Issuer
or the relevant Restricted Subsidiary than those that would have been obtained in a
comparable transaction by the Issuer or such Restricted Subsidiary with an unrelated Person;
and

     (2) the Issuer delivers to the Trustee:

     (A) with respect to any Affiliate Transaction or series of related
Affiliate Transactions involving aggregate consideration in excess of $20.0 million,
a resolution of the Board of Directors of the Issuer set forth in an Officer’s
Certificate certifying that such Affiliate Transaction complies with clause (1) of
this Section 4.11(a) and that such Affiliate Transaction has been approved by a
majority of the members of the Board of Directors of the Issuer; and

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     (B) with respect to any Affiliate Transaction or series of related
Affiliate Transactions involving aggregate consideration in excess of $50.0 million,
an opinion as to the fairness to the Issuer or such Restricted Subsidiary of such
Affiliate Transaction from a financial point of view issued by an accounting,
appraisal or investment banking firm of national standing.

     (b) The following items will not be deemed to be Affiliate Transactions and, therefore,
will not be subject to the provisions of Section 4.11(a):

     (1) any consulting or employment agreement or arrangements, incentive compensation
plan, stock option or stock ownership plan, employee benefit plan, severance arrangements,
officer or director indemnification agreement or any similar arrangement entered into by the
Issuer or any of its Restricted Subsidiaries in the ordinary course of business for the
benefit of directors, officers, employees and consultants of the Issuer or a direct or
indirect parent of the Issuer and payments and transactions pursuant thereto and payments
pursuant thereto;

     (2) transactions between or among the Issuer and/or its Restricted Subsidiaries;

     (3) transactions with a Person (other than an Unrestricted Subsidiary of the
Issuer) that is an Affiliate of the Issuer solely because the Issuer owns, directly or
through a Restricted Subsidiary, an Equity Interest in, or controls, such Person;

     (4) payment of reasonable directors’ fees;

     (5) any transaction in which the only consideration paid by the Issuer or any
Restricted Subsidiary to Affiliates of the Issuer consists of Equity Interests (other than
Disqualified Stock) of the Issuer or any contribution of capital to the Issuer;

     (6) Restricted Payments that do not violate the provisions of this Indenture or
that are Permitted Investments (other than those described in clauses (4), (5), (10) and
(12) of the definition thereof);

     (7) any agreement, instrument or arrangement as in effect on the Issue Date or any
amendment thereto (so long as such amendment is not materially more disadvantageous, taken
as a whole, than the applicable agreement, instrument or arrangement, as in effect on the
Issue Date, as determined in good faith by the Issuer);

     (8) [Reserved];

     (9) loans or advances to employees in the ordinary course of business not to exceed
$5.0 million in the aggregate at any one time outstanding;

     (10) transactions between the Issuer or any Restricted Subsidiary and any Person
that is an Affiliate of the Issuer or any Restricted Subsidiary solely because a director of
such Person is also a director of the Issuer or any direct or indirect parent entity of the
Issuer; provided that such director abstains from voting as a director of the Issuer or any
direct or indirect parent entity of the Issuer, as the case may be, on any matter involving
such other Person;

     (11) purchase or sale of goods and/or services in the ordinary course of business
on terms that are no less favorable to the Issuer or the relevant Restricted Subsidiary than
those that

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would have been obtained in a comparable transaction by the Issuer or such Restricted
Subsidiary with an unrelated Person;

     (12) if such Affiliate Transaction is with an Affiliate in its capacity as a holder
of Indebtedness of the Issuer or any Restricted Subsidiary, a transaction in which such
Affiliate is treated no more favorably than the other holders of Indebtedness of the Issuer
or such Restricted Subsidiary;

     (13) any capital contribution to any Affiliate otherwise permitted by this
Indenture;

     (14) transactions with any joint venture engaged in a Permitted Business; provided
that all the outstanding ownership interests of such joint venture are owned only by the
Issuer, its Restricted Subsidiaries and Persons that are not Affiliates of the Issuer;

     (15) any Investment of the Issuer or any of its Restricted Subsidiaries existing on
the Release Date, and any extension, modification or renewal of such existing Investments,
to the extent not involving any additional Investment other than as the result of the
accrual or accretion of interest or original issue discount or the issuance of pay-in-kind
securities, in each case, pursuant to the terms of such Investments as in effect on the
Release Date;

     (16) transactions between a Receivables Entity and any Person in which the
Receivables Entity has an Investment;

     (17) the transactions contemplated by the Plans of Reorganization, including the
payment of fees and expenses in connection therewith;

     (18) pledges of Equity Interests of Unrestricted Subsidiaries;

     (19) [Reserved]; and

     (20) the formation and maintenance of any consolidated group or subgroup for tax,
accounting or cash pooling or management purposes in the ordinary course of business or
transactions undertaken in good faith for the purpose of improving the consolidated tax
efficiency of the Issuer and its Subsidiaries and not for the purpose of circumventing any
provision of this Indenture.

     Section 4.12. Liens.

     The Issuer will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly create, incur, assume or suffer to exist any Lien of any kind securing Indebtedness on
any asset now owned or hereafter acquired, except Permitted Liens.

     Section 4.13. Business Activities.

     The Issuer will not, and will not permit any of its Restricted Subsidiaries to, engage in any
business other than Permitted Businesses, except to such extent as would not be material to the
Issuer and its Restricted Subsidiaries taken as a whole, as reasonably determined by the Issuer.

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     Section 4.14. Corporate Existence.

     Subject to Article 5, the Issuer shall do or cause to be done all things necessary to preserve
and keep in full force and effect:

     (1) its corporate existence, and the corporate, partnership or other existence of
each of its Subsidiaries, in accordance with the respective organizational documents of the
Issuer or any such Subsidiary; and

     (2) the rights (charter and statutory), licenses and franchises of the Issuer and
its Subsidiaries; provided, however, that the Issuer shall not be required to preserve any
such right, license or franchise, or the corporate, partnership or other existence of any of
its Subsidiaries (other than the Issuer), if the Board of Directors shall determine that the
preservation thereof is no longer desirable in the conduct of the business of the Issuer and
its Subsidiaries, taken as a whole, and that the loss thereof would not reasonably be
expected to have a material adverse effect on the Issuer and its Subsidiaries, taken as a
whole.

     Section 4.15. Offer to Repurchase upon Change of Control.

     (a) Upon the occurrence of a Change of Control following the Release Date, the Issuer will
make an offer (a “Change of Control Offer”) to each Holder to repurchase all or any part (equal to
$2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Notes at a purchase
price in cash equal to 101% of the aggregate principal amount of Notes repurchased, plus accrued
and unpaid interest and Special Interest, if any, on the Notes repurchased to the date of purchase,
subject to the rights of Holders on the relevant Record Date to receive interest due on the
relevant Interest Payment Date (the “Change of Control Payment”). Within 30 days following any
Change of Control, the Issuer will send a notice to each Holder with a copy to the Trustee
describing the transaction or transactions that constitute the Change of Control and stating:

     (1) that the Change of Control Offer is being made pursuant to this Section 4.15
and that all Notes tendered will be accepted for payment;

     (2) the purchase price and the purchase date, which shall be no earlier than 30
days and no later than 60 days from the date such notice is sent (the “Change of Control
Payment Date”);

     (3) that any Note not tendered will continue to accrue interest;

     (4) that, unless the Issuer defaults in the payment of the Change of Control
Payment, all Notes accepted for payment pursuant to the Change of Control Offer will cease
to accrue interest on and after the Change of Control Payment Date;

     (5) that Holders electing to have any Notes purchased pursuant to a Change of
Control Offer will be required to surrender the Notes, with the form entitled “Option of
Holder to Elect Purchase” attached to the Notes completed, or transfer by book-entry
transfer, to the Paying Agent at the address specified in the notice prior to the close of
business on the third Business Day preceding the Change of Control Payment Date;

     (6) that Holders will be entitled to withdraw their election if the Paying Agent
receives, not later than the close of business on the second Business Day preceding the
Change of Control Payment Date, a facsimile transmission or letter setting forth the name of
the Holder, the

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principal amount of Notes delivered for purchase, and a statement that such Holder is
withdrawing his election to have the Notes purchased; and

     (7) that Holders whose Notes are being purchased only in part will be issued new
Notes equal in principal amount to the unpurchased portion of the Notes surrendered, which
unpurchased portion must be equal to $2,000 in principal amount or an integral multiple of
$1,000 in excess thereof.

     (b) On the Change of Control Payment Date, the Issuer will, to the extent lawful:

     (1) accept for payment all Notes or portions of Notes properly tendered pursuant to
the Change of Control Offer;

     (2) deposit with the Paying Agent an amount equal to the Change of Control Payment
in respect of all Notes or portions of Notes properly tendered; and

     (3) deliver or cause to be delivered to the Trustee the Notes properly accepted
together with an Officer’s Certificate stating the aggregate principal amount of Notes or
portions of Notes being purchased by the Issuer.

     The Paying Agent will promptly mail to each Holder of Notes properly tendered the Change of
Control Payment for such Notes as directed by the Issuer in writing, and the Trustee will promptly
authenticate upon an authentication order from the Issuer and mail (or cause to be transferred by
book entry) to each Holder a new Note equal in principal amount to any unpurchased portion of the
Notes surrendered, if any; provided that each new Note will be in denominations of $2,000 and
integral multiples of $1,000 in excess of $2,000. The Issuer will publicly announce the results of
the Change of Control Offer on or as soon as practicable after the Change of Control Payment Date.

     (c) The Issuer will comply with the requirements of Rule l4e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of the Notes as a result of a Change of Control. To
the extent that the provisions of any securities laws or regulations conflict with the provisions
of this Section 4.15, the Issuer will comply with the applicable securities laws and regulations
and will not be deemed to have breached its obligations under this Section 4.15 by virtue of such
compliance.

     (d) Notwithstanding anything to the contrary in this Section 4.15, the Issuer will not be
required to make a Change of Control Offer upon a Change of Control if a third party makes the
Change of Control Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Section 4.15 and purchases all Notes properly tendered and not
withdrawn under the Change of Control Offer, unless and until there is a default in payment of the
applicable redemption price. Notwithstanding anything to the contrary contained herein, a Change
of Control Offer may be made in advance of a Change of Control, conditional upon the consummation
of such Change of Control, if a definitive agreement is in place for the Change of Control at the
time the Change of Control Offer is made.

     Section 4.16. [Reserved].

     Section 4.17. Payments for Consent.

     The Issuer will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, pay or cause to be paid any consideration to or for the benefit of any Holder of Notes
for or as an inducement to any consent, waiver or amendment of any of the terms or provisions of
this Indenture, the Security

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Documents or the Notes unless such consideration is offered to be paid and is paid to all
Holders of the Notes that consent, waive or agree to amend in the time frame set forth in the
solicitation documents relating to such consent, waiver or agreement.

     Section 4.18. Additional Note Guarantees.

     If (a) the Issuer or any of its Restricted Subsidiaries acquires or creates another Wholly
owned Restricted Subsidiary (other than (x) a Foreign Subsidiary or (y) a Restricted Subsidiary
that when taken together with each other Restricted Subsidiary that is not a Guarantor solely as a
result of this clause (y) accounts for less than 1.0% of the Total Assets of the Issuer and its
consolidated Restricted Subsidiaries and less than 1.0% of the consolidated revenue of the Issuer)
after the Issue Date or (b) any of the Issuer’s Restricted Subsidiaries that is not a Guarantor
guarantees any other Indebtedness of the Issuer or a Guarantor, then that newly acquired or created
Wholly owned Restricted Subsidiary or Restricted Subsidiary, as applicable, will become a Guarantor
of the Notes and execute a supplemental indenture and Security Documents, if applicable, and
deliver an Opinion of Counsel and an Officer’s Certificate as to the authorization, execution,
delivery and enforceability of such supplemental indenture and Security Documents satisfactory to
the Trustee (and, if applicable, the Collateral Agent) within 20 Business Days of the date on which
it was acquired, created or Guaranteed the other Indebtedness.

     Section 4.19. Designation of Restricted and Unrestricted Subsidiaries.

     The Board of Directors of the Issuer may designate any Restricted Subsidiary to be an
Unrestricted Subsidiary if that designation would not cause a Default; provided that in no event
will the businesses currently operated by the Issuer be transferred to or held by an Unrestricted
Subsidiary. If a Restricted Subsidiary is designated as an Unrestricted Subsidiary, the aggregate
Fair Market Value of all outstanding Investments owned by the Issuer and its Restricted
Subsidiaries in the Restricted Subsidiary designated as an Unrestricted Subsidiary will be deemed
to be an Investment made as of the time of the designation and will reduce the amount available for
Restricted Payments under Section 4.07 or under one or more clauses of the definition of “Permitted
Investments”, as determined by the Issuer. That designation will only be permitted if the
Investment would be permitted at that time and if such Restricted Subsidiary otherwise meets the
definition of an Unrestricted Subsidiary. The Board of Directors of the Issuer may redesignate any
Unrestricted Subsidiary to be a Restricted Subsidiary if that redesignation would not cause a
Default.

     Any designation of a Subsidiary of the Issuer as an Unrestricted Subsidiary will be evidenced
to the Trustee by filing with the Trustee a certified copy of a resolution of the Board of
Directors giving effect to such designation and an Officer’s Certificate certifying that such
designation complied with the preceding conditions and was permitted by Section 4.07. If, at any
time, any Unrestricted Subsidiary would fail to meet the preceding requirements as an Unrestricted
Subsidiary, it will thereafter cease to be an Unrestricted Subsidiary for purposes of this
Indenture and any Indebtedness of such Unrestricted Subsidiary will be deemed to be incurred by a
Restricted Subsidiary of the Issuer as of such date and, if such Indebtedness is not permitted to
be incurred as of such date under Section 4.09, the Issuer will be in default of such covenant.
The Board of Directors of the Issuer may at any time designate any Unrestricted Subsidiary to be a
Restricted Subsidiary of the Issuer; provided that such designation will be deemed to be an
incurrence of Indebtedness by a Restricted Subsidiary of the Issuer of any outstanding Indebtedness
of such Unrestricted Subsidiary, and such designation will only be permitted if (1) such
Indebtedness is permitted under Section 4.09, calculated on a pro forma basis as if such
designation had occurred at the beginning of the four-quarter reference period; and (2) no Default
or Event of Default would be in existence following such designation.

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     Section 4.20. Activities of Escrow Issuer

     Escrow Issuer shall not engage in any activities other than issuing the Notes, performing its
obligations with respect to the Notes under this Indenture (including granting a security interest)
and the Escrow Agreement and consummating the Assumption or the Special Mandatory Redemption, as
applicable. Escrow Issuer may not own, hold or otherwise have any interest in any assets other
than the Escrow Account and Permitted Escrow Investments.

ARTICLE 5

SUCCESSORS

     Section 5.01. Merger, Consolidation, or Sale of Assets.

     The Issuer shall not, directly or indirectly: (i) consolidate, merge or amalgamate with or
into another Person (whether or not the Issuer is the surviving corporation); or (ii) sell, assign,
transfer, convey or otherwise dispose of all or substantially all of the properties or assets of
the Issuer and its Restricted Subsidiaries taken as a whole, in one or more related transactions,
to another Person, unless:

     (1) either:

     (A) the Issuer is the surviving corporation; or

     (B) the Person formed by or surviving any such consolidation, merger or
amalgamation (if other than the Issuer) or to which such sale, assignment, transfer,
conveyance or other disposition has been made is organized or existing under the
laws of the United States, any state of the United States or the District of
Columbia and is either (i) a corporation or (ii) a partnership or limited liability
company and is (or has previously been) joined by a corporation as a co-issuer of
the Notes;

     (2) the Person formed by or surviving any such consolidation, merger or
amalgamation (if other than the Issuer) or the Person to which such sale, assignment,
transfer, conveyance or other disposition has been made assumes all the obligations of the
Issuer under the Notes, this Indenture, the Registration Rights Agreement and the Security
Documents and pursuant to agreements reasonably satisfactory to the Trustee and the
Collateral Agent;

     (3) immediately after such transaction, no Default or Event of Default exists; and

     (4) the Issuer or the Person formed by or surviving any such consolidation, merger
or amalgamation (if other than the Issuer), or to which such sale, assignment, transfer,
conveyance or other disposition has been made would, on the date of such transaction after
giving pro forma effect thereto and any related financing transactions as if the same had
occurred at the beginning of the applicable four-quarter period, (i) be permitted to incur
at least $1.00 of additional Indebtedness pursuant to Section 4.09(a) or (ii) have had a
Fixed Charge Coverage Ratio equal to or greater than the Fixed Charge Coverage Ratio of the
Issuer immediately prior to such transaction.

     In addition, the Issuer will not, directly or indirectly, lease all or substantially all of
the properties or assets of the Issuer and its Restricted Subsidiaries taken as a whole, in one or
more related transactions, to any other Person.

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     This Section 5.01 will not apply to:

     (i) a merger, amalgamation or consolidation of the Issuer with an Affiliate solely
for the purpose of (a) reorganizing the Issuer as a different type of entity; provided that
in the case where the surviving entity in such merger, amalgamation or consolidation is not
a corporation, a corporation becomes (or has previously become) a co-issuer of the Notes, or
(b) reincorporating or reorganizing the Issuer in another jurisdiction, in each case in a
transaction that complies with Sections 5.01(1) and (2);

     (ii) any consolidation, amalgamation or merger, or any sale, assignment, transfer,
conveyance, lease or other disposition of assets between or among the Issuer and its
Restricted Subsidiaries; or

     (iii) any merger, amalgamation or consolidation of the Issuer or any Restricted
Subsidiary pursuant to or contemplated by the Plans of Reorganization.

     Section 5.02. Successor Corporation Substituted.

     Upon any consolidation, amalgamation or merger, or any sale, assignment, transfer, lease,
conveyance or other disposition of all or substantially all of the properties or assets of the
Issuer in a transaction that is subject to, and that complies with the provisions of, Section 5.01,
the successor Person formed by such consolidation or amalgamation or into or with which the Issuer
is merged or to which such sale, assignment, transfer, lease, conveyance or other disposition is
made shall succeed to, and be substituted for (so that from and after the date of such
consolidation, amalgamation, merger, sale, assignment, transfer, lease, conveyance or other
disposition, the provisions of this Indenture referring to “the Issuer” shall refer instead to the
successor Person and not to previous Issuer), and may exercise every right and power of the Issuer
under this Indenture with the same effect as if such successor Person had been named as the Issuer
herein; provided, however, that the predecessor Issuer shall not be relieved from the obligation to
pay the principal of, premium, if any, or interest on the Notes in the case of a lease of all or
substantially all of the Issuer’s property and assets in a transaction that is subject to, and that
complies with the provisions of, Section 5.01.

ARTICLE 6

DEFAULTS AND REMEDIES

     Section 6.01. Events of Default.

     Each of the following is an “Event of Default”:

     (1) default for 30 days in the payment when due of interest on, or Special
Interest, if any, with respect to, the Notes;

     (2) default in the payment when due (at maturity, upon redemption or otherwise) of
the principal of, or premium, if any, on, the Notes;

     (3) failure by the Issuer or any of its Restricted Subsidiaries for 30 days after
notice to the Issuer by the Trustee or the Holders of at least 25% in aggregate principal
amount of the Notes then outstanding voting as a single class to comply with the provisions
of Sections 4.10, 4.15 or 5.01;

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     (4) failure by the Issuer or any of its Restricted Subsidiaries for 60 days after
notice to the Issuer by the Trustee or the Holders of at least 25% in aggregate principal
amount of the Notes then outstanding voting as a single class to comply with any of the
other agreements in this Indenture or the Security Documents;

     (5) default under any mortgage, indenture or instrument under which there may be
issued or by which there may be secured or evidenced any Indebtedness for money borrowed by
the Issuer or any of its Restricted Subsidiaries (or the payment of which is guaranteed by
the Issuer or any of its Restricted Subsidiaries), whether such Indebtedness or Guarantee
now exists, or is created after Issue Date, if that default:

     (A) is caused by a failure to pay principal of, or interest or premium, if
any, on, such Indebtedness prior to the expiration of the grace period provided in
such Indebtedness on the date of such default (a “Payment Default”); or

     (B) results in the acceleration of such Indebtedness prior to its express
maturity,

and, in each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a Payment Default
or the maturity of which has been so accelerated, aggregates $50.0 million or more;

     (6) failure by the Issuer, any Restricted Subsidiary of the Issuer or any group of
Restricted Subsidiaries of the Issuer to pay final and non-appealable judgments entered by a
court or courts of competent jurisdiction aggregating in excess of $50.0 million (net of any
amounts covered by insurance or pursuant to which the Issuer is indemnified to the extent
that the third party under such agreement acknowledges its obligations thereunder), which
judgments are not paid, discharged or stayed for a period of 60 days and, in the event such
judgment is covered by insurance, an enforcement proceeding has been commenced by any
creditor upon such judgment or decree that is not promptly stayed;

     (7) the Issuer or any of its Restricted Subsidiaries that is a Significant
Subsidiary or any group of Restricted Subsidiaries of the Issuer that, taken together, would
constitute a Significant Subsidiary pursuant to or within the meaning of Bankruptcy Law:

     (A) commences a voluntary case, application, petition, compromise,
voluntary arrangement, scheme of arrangement, moratorium, liquidation,
administration, or receivership or other proceeding,

     (B) consents to the entry of an order for relief against it in an
involuntary case, application, petition or other proceeding,

     (C) consents to the appointment of a custodian, receiver, receiver-manager,
administrative receiver, administrator or liquidator of it or for all or
substantially all of its property,

     (D) makes a general assignment for the benefit of its creditors, begins
negotiations with any creditor for the rescheduling or restructuring of any of its
debts, a moratorium is declared or instituted, or any step is taken with a view to a
moratorium or composition or similar arrangement with its creditors,

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     (E) generally is not paying its debts as they become due; or is unable or
admits in writing its inability, to pay its debts as such debts become due or is
otherwise insolvent or by reason of actual or anticipated financial difficulties,
suspends making payments on any of its debts, or announces an intention to do so, or
its shareholders, directors or other officers request the appointment of, or give
notice of their intention to appoint, a receiver, receiver-manager, administrative
receiver, administrator, liquidator or other officer having similar powers over its
property, or

     (F) is deemed for the purposes of any applicable law to be unable to pay
its debts as they fall due, or is insolvent.

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

     (A) is for relief against the Issuer or any of its Restricted Subsidiaries
that is a Significant Subsidiary or any group of Restricted Subsidiaries of the
Issuer that, taken together, would constitute a Significant Subsidiary in an
involuntary case, application, petition or other proceeding;

     (B) appoints a custodian, receiver, receiver-manager, administrative
receiver, administrator, liquidator, or other similar officer of the Issuer or any
of its Restricted Subsidiaries that is a Significant Subsidiary or any group of
Restricted Subsidiaries of the Issuer that, taken together, would constitute a
Significant Subsidiary or for all or substantially all of the property of the Issuer
or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group
of Restricted Subsidiaries of the Issuer that, taken together, would constitute a
Significant Subsidiary; or

     (C) orders the liquidation, administration or receivership of the Issuer or
any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of
Restricted Subsidiaries of the Issuer that, taken together, would constitute a
Significant Subsidiary; and the order or decree remains unstayed and in effect for
60 consecutive days; or

     (9) except as permitted by Section 10.05, any Note Guarantee is held in any
judicial proceeding to be unenforceable or invalid or ceases for any reason to be in full
force and effect, or any Guarantor, or any Person acting on behalf of any Guarantor, denies
or disaffirms its obligations under its Note Guarantee; or

     (10) unless all of the Collateral has been released from the Note Liens in
accordance with the provisions of the Security Documents, the default, repudiation or
disaffirmation by the Issuer or any of its Restricted Subsidiaries of any of their
obligations under the Security Documents (other than by reason of a release of such
obligation or Lien related thereto in accordance with this Indenture or the Security
Documents), which default, repudiation or disaffirmation results in Collateral having an
aggregate Fair Market Value in excess of $50.0 million not being subject to a valid,
perfected security interest in favor of the Collateral Agent under any applicable law (other
than the law of any foreign jurisdiction) (to the extent required under the Security
Documents), or a determination in a judicial proceeding that the Security Documents are
unenforceable or invalid against the Issuer or any of its Restricted Subsidiaries for any
reason with respect to Collateral having an aggregate Fair Market Value of $50.0 million or
more; provided that such default, repudiation, disaffirmation or determination is not
rescinded, stayed, or waived by the Persons having such authority pursuant to the Security
Documents or otherwise cured within 60 days after the Issuer receives written notice thereof
specifying such occurrence from the Trustee

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or the Holders of at least 25% of the outstanding principal amount of the Notes
demanding that such default be remedied.

     Section 6.02. Acceleration.

     In the case of an Event of Default specified in clause (7) or (8) of Section 6.01, with
respect to the Issuer, any Restricted Subsidiary of the Issuer that is a Significant Subsidiary or
any group of Restricted Subsidiaries of the Issuer that, taken together, would constitute a
Significant Subsidiary, all outstanding Notes will become due and payable immediately without
further action or notice. If any other Event of Default occurs and is continuing, the Trustee or
the Holders of at least 25% in aggregate principal amount of the then outstanding Notes may declare
all the Notes to be due and payable immediately.

     Upon any such declaration, the Notes shall become due and payable immediately.

     Section 6.03. Other Remedies.

     If an Event of Default occurs and is continuing, subject to the Intercreditor Agreement, the
Trustee may pursue any available remedy to collect the payment of principal, premium and Special
Interest, if any, and interest on the Notes or to enforce the performance of any provision of the
Note Documents. Additionally, at the request of the Holders of a majority in principal amount of
the Notes then outstanding following any declaration of the acceleration of the Notes that has not
been rescinded, the Trustee may instruct the Escrow Agent to release the funds in the Escrow
Account to the Trustee to consummate a Special Mandatory Redemption.

     The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not
produce any of them in the proceeding. A delay or omission by the Trustee or any Holder of a Note
in exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.

     Section 6.04. Waiver of Past Defaults.

     Holders of not less than a majority in aggregate principal amount of the then outstanding
Notes by written notice to the Trustee may on behalf of the Holders of all of the Notes waive an
existing Default or Event of Default and its consequences hereunder, except a continuing Default or
Event of Default in the payment of the principal of, premium and Special Interest, if any, or
interest on, the Notes (including in connection with an offer to purchase); provided, however, that
the Holders of a majority in aggregate principal amount of the then outstanding Notes may rescind
an acceleration and its consequences, including any related payment default that resulted from such
acceleration. Upon any such waiver, such Default shall cease to exist, and any Event of Default
arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

     Section 6.05. Control by Majority.

     Subject to the Intercreditor Agreement, Holders of a majority in aggregate principal amount of
the then outstanding Notes may direct the time, method and place of conducting any proceeding for
exercising any remedy available to the Trustee or exercising any trust or power conferred on it.
However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture
that the Trustee determines may be unduly prejudicial to the rights of other Holders of Notes or
that may subject the Trustee

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to personal liability or expense. Notwithstanding the foregoing, the Trustee shall have the
right to select and retain counsel of its choosing to represent of in any such proceedings.

     Section 6.06. Limitation on Suits.

     Subject to the Intercreditor Agreement, a Holder may pursue a remedy with respect to this
Indenture or the Notes only if:

     (1) such Holder gives to the Trustee written notice that an Event of Default is
continuing;

     (2) Holders of at least 25% in aggregate principal amount of the then outstanding
Notes make a written request to the Trustee to pursue the remedy;

     (3) such Holder or Holders offer and, if requested, provide to the Trustee security
or indemnity satisfactory to the Trustee against any loss, liability or expense;

     (4) the Trustee does not comply with the request within 60 days after receipt of
the request and the offer of security or indemnity; and

     (5) during such 60-day period, Holders of a majority in aggregate principal amount
of the then outstanding Notes do not give the Trustee a direction inconsistent with such
request.

     A Holder of a Note may not use this Indenture to prejudice the rights of another Holder of a
Note or to obtain a preference or priority over another Holder of a Note.

     Section 6.07. Rights of Holders of Notes to Receive Payment.

     Notwithstanding any other provision of this Indenture, the right of any Holder of a Note to
receive payment of principal, premium and Special Interest, if any, and interest on the Note, on or
after the respective due dates expressed in the Note (including in connection with an offer to
purchase), or to bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder.

     Section 6.08. Collection Suit by Trustee.

     If an Event of Default specified in Section 6.01(1) or (2) occurs and is continuing, subject
to the Intercreditor Agreement, the Trustee is authorized to recover judgment in its own name and
as trustee of an express trust against the Issuer and Guarantors for the whole amount of principal
of, premium and Special Interest, if any, and interest remaining unpaid on, the Notes and interest
on overdue principal and, to the extent lawful, interest and 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.

     Section 6.09. Trustee May File Proofs of Claim.

     Subject to the Intercreditor Agreement, the Trustee is authorized to file such proofs of claim
and 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 the Holders of the Notes allowed in any judicial
proceedings relative to the Company or the Issuer (or any other obligor upon the Notes), its
creditors or its property and shall be

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entitled and empowered to collect, receive and distribute any money or other property payable
or deliverable on any such claims and any custodian in any such judicial proceeding is hereby
authorized by each Holder to make such payments to the Trustee, and in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07. To the
extent that the payment of any such compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07 out of
the estate in any such proceeding, shall be denied for any reason, subject to the Intercreditor
Agreement, payment of the same shall be secured by a Lien on, and shall be paid out of, any and all
distributions, dividends, money, securities and other properties that the Holders may be entitled
to receive in such proceeding whether in liquidation or under any plan of reorganization or
arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization,
arrangement, adjustment or composition affecting the Notes or the rights of any Holder, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

     Section 6.10. Priorities.

     Subject to the Intercreditor Agreement, if the Trustee collects any money or property pursuant
to this Article 6, it shall pay out the money or property in the following order:

     First: to the Trustee, its agents and attorneys for amounts due under Section 7.07,
including payment of all compensation, expenses and liabilities incurred, and all advances
made, by the Trustee and the costs and expenses of collection;

     Second: to Holders of Notes for amounts due and unpaid on the Notes for principal,
premium and Special Interest, if any, and interest, ratably, without preference or priority
of any kind, according to the amounts due and payable on the Notes for principal, premium
and Special Interest, if any and interest, respectively; and

     Third: to the Company or the Issuer or to such party as a court of competent
jurisdiction shall direct.

     The Trustee may fix a record date and payment date for any payment to Holders of Notes
pursuant to this Section 6.10.

     Section 6.11. Undertaking for Costs.

     In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as a Trustee, a court in its discretion
may require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section 6.11 does not apply to a suit by the
Trustee, a suit by a Holder of a Note pursuant to Section 6.07, or a suit by Holders of more than
10% in aggregate principal amount of the then outstanding Notes.

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ARTICLE 7

TRUSTEE

     Section 7.01. Duties of Trustee.

     (a) If an Event of Default has occurred and is continuing, the Trustee will exercise such
of the rights and powers vested in it by this Indenture, and use the same degree of care and skill
in its exercise, as a prudent person would exercise or use under the circumstances in the conduct
of such person’s own affairs.

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

     (1) the duties of the Trustee will be determined solely by the express provisions
of this Indenture and the Trustee need perform only those duties that are specifically set
forth in this Indenture and no others, and no implied covenants or obligations shall be read
into this Indenture against the Trustee; and

     (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as
to the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the form required by
this Indenture. However, the Trustee will examine the certificates and opinions to
determine whether or not they conform to the requirements of this Indenture. Delivery of
reports, information and documents to the Trustee is for informational purposes only and the
Trustee’s receipt of such shall not constitute constructive notice of any information
contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officer’s Certificates).

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

     (1) this paragraph does not limit the effect of paragraph (b) of this Section 7.01;

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

     (3) the Trustee will not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 6.05.

     (d) Whether or not therein expressly so provided, every provision of this Indenture that
in any way relates to the Trustee is subject to paragraphs (a), (b), and (c) of this Section 7.01.

     (e) No provision of this Indenture will require the Trustee to expend or risk its own
funds or incur any liability. The Trustee will be under no obligation to exercise any of its
rights and powers under this Indenture at the request of any Holders, unless such Holder has
offered to the Trustee security and indemnity satisfactory to it against any loss, liability or
expense.

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

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     Section 7.02. Rights of Trustee.

     (a) The Trustee may conclusively rely upon any document believed by it to be genuine and
to have been signed or presented by the proper Person. The Trustee need not investigate any fact
or matter stated in the document.

     (b) Before the Trustee takes, suffers or omits to take any action hereunder, it may
require an Officer’s Certificate or an Opinion of Counsel or both. The Trustee will not be liable
for any action it takes or omits to take in good faith in reliance on such Officer’s Certificate or
Opinion of Counsel. The Trustee may consult with counsel and the written advice of such counsel or
any Opinion of Counsel will be full and complete authorization and protection from liability in
respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance
thereon.

     (c) The Trustee may act through its attorneys and agents and will not be responsible for
the misconduct or negligence of any agent or attorney appointed with due care.

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

     (e) Unless otherwise specifically provided in this Indenture, any demand, request,
direction or notice from the Issuer will be sufficient if signed by an Officer of the Issuer.

     (f) The Trustee will 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 unless such Holders have
offered to the Trustee indemnity or security satisfactory to the Trustee against the losses,
liabilities and expenses that might be incurred by it in compliance with such request or direction.

     (g) The Trustee is not required to take notice or deemed to have notice of any Default or
Event of Default hereunder or under any of the Note Documents with respect to a series of Notes
(other than an Event of Default described in subsections (1) or (2) of Section 6.01 with respect to
such Notes during any period the Trustee is also serving as a Paying Agent for such Notes), unless
a Responsible Officer has received notice in writing of such Event of Default from the Issuer or
from the Holders of at least 25% in aggregate principal amount of the outstanding Notes so
affected, and in absence of any such notice, the Trustee may conclusively assume that no Default or
Event of Default exists.

     (h) The Trustee is not required to give any bond or surety with respect to the performance
of its duties or the exercise of its powers under this Indenture.

     (i) The Trustee’s rights, powers, indemnities, immunities and protections from liability
and its rights to compensation and indemnification in connection with the performance of its duties
under this Indenture shall extend to (1) the Trustee, whether serving in any other capacity
hereunder, including without limitation, in the capacity of Registrar or Paying Agent, and (2) the
Trustee’s officers, directors, agents and employees. Such immunities and protections and rights to
indemnification, together with the Trustee’s right to compensation, shall survive the Trustee’s
resignation or removal, the discharge of this Indenture and final payment of the Notes.

     (j) The Trustee shall have no responsibility for any information in any offering document
or other disclosure material distributed with respect to any series of Notes, and the Trustee shall
have no responsibility for compliance with any state or federal securities laws in connection with
the Notes, other than the filing of any documents required to be filed by an indenture trustee
pursuant to the Trust Indenture Act.

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     (k) Notwithstanding anything else herein contained, whenever any provision of this
Indenture indicates that any confirmation of a condition or event is qualified by the words “to the
knowledge of” or “known to” the Trustee or other words of similar meaning, said words shall mean
and refer to the current awareness of one or more Responsible Officers who are located at the
Corporate Trust Office of the Trustee.

     (l) The Trustee shall have no responsibility for any registration, filing, recording,
reregistration, refiling or rerecording of this Indenture, any of the Security Documents or any
other document or instrument executed in connection with this Indenture and the issuance and sale
of the Notes, including without limitation, any financing statements or continuation statements
with respect thereto.

     (m) The Trustee shall not be under any obligation to effect or maintain insurance or to
renew any policies of insurance or to inquire as to the sufficiency of any policies of insurance
carried by the Issuer or any other party, or to report, or make or file claims or proof of loss
for, any loss or damage insured against or which may occur, or to keep itself informed or advised
as to the payment of any taxes or assessments, or to require any such payment to be made.

     (n) The Trustee shall not be personally liable for any debts, contractual obligations or
other claims by or on behalf of any Person (including, without limitation, any damages to Persons
or property or salaries or other employee benefits) arising from the conduct or management of, or
from any work or thing done on, any property that is subject to the Security Documents, whether
such might arise prior to, during or after any period in which the Trustee may be in the possession
of or managing any property subject to the Security Documents; and shall have no affirmative duty
with respect to compliance of such properties under state or federal laws pertaining to the
transport, storage, treatment or disposal of pollutants, contaminants, waste or hazardous
materials, or regulations, permits or licenses issued under such laws.

     (o) Notwithstanding anything else contained herein or in any of the Security Documents,
prior to exercising any rights or remedies under the Security Documents, including, without
limitation, foreclosing on any property, the Trustee shall have the right to obtain any and all
environmental and other reports and studies and undertake such additional investigation as it deems
prudent, and to require that it be furnished with, security or indemnitees against any and all
risks and liabilities in connection therewith, which shall have such coverage and be in form and
substance satisfactory to the Trustee.

     (p) The Trustee shall have no responsibility or obligation to any Participant or Indirect
Participant or to the Persons for whom they act as nominees with respect to the Notes, or to any
Beneficial Owner of Notes in respect of the accuracy of any records maintained by the Depositary or
its nominee or any Participant or Indirect Participant, the payment by the Depositary, or any
Participant or Indirect Participant of any amount in respect of the principal or redemption price
of or interest on the Notes, any notice which is permitted or required to be given under this
Indenture, the selection by the Depositary or any Participant or Indirect Participant of any Person
to receive payment in the event of a partial redemption of the Notes, or any consent given or other
action taken by the Depositary or its nominee as Holder.

     Section 7.03. Individual Rights of Trustee.

     The Trustee in its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Company, the Issuer or any Affiliate of the Company with the same
rights it would have if it were not Trustee. However, in the event that the Trustee acquires any
conflicting interest it must eliminate such conflict within 90 days, apply to the SEC for
permission to continue as trustee (if this Indenture has been qualified under the TIA) or resign.
Any Agent may do the same with like rights and duties. The Trustee is also subject to Sections
7.10 and 7.11.

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     Section 7.04. Trustee’s Disclaimer.

     The Trustee will not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Notes, or the value, condition or sufficiency of the Collateral
or any other assets pledged or assigned as security for the Notes, the right, title or interest of
the Issuer, the Guarantor or any other Person therein, or the security provided thereby or by the
Note Documents. The Trustee shall not be accountable for the Issuer’s use of the proceeds from the
Notes or any money paid to the Issuer or upon the Issuer’s direction under any provision of this
Indenture, it will not be responsible for the use or application of any money received by any
Paying Agent other than the Trustee, and it will not be responsible for any statement or recital
herein or any statement in the Notes or any other document in connection with the sale of the Notes
or pursuant to this Indenture other than its certificate of authentication.

     Section 7.05. Notice of Defaults.

     If a Default or Event of Default occurs and is continuing and if it is known to the Trustee,
the Trustee will send to Holders of Notes a notice of the Default or Event of Default within 90
days after it occurs. Except in the case of a Default or Event of Default in payment of principal
of, premium or Special Interest, if any, or interest on, any Note, the Trustee may withhold the
notice if and so long as a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interests of the Holders of the Notes.

     Section 7.06. Reports by Trustee to Holders of the Notes.

     Within 60 days after each May 15 beginning with the May 15 following the date of this
Indenture, and for so long as Notes remain outstanding, the Trustee will send to the Holders of the
Notes a brief report dated as of such reporting date that complies with TIA § 313(a) (but if no
event described in TIA § 313(a) has occurred within the twelve months preceding the reporting date,
no report need be transmitted). The Trustee also will comply with TIA § 313(b)(2). The Trustee
will also transmit by mail all reports as required by TIA § 313(c). Notwithstanding the foregoing,
the requirements of this Section 7.06 shall not apply until such time as this Indenture has been
qualified under the TIA.

     Section 7.07. Compensation and Indemnity.

     (a) The Issuer will pay to the Trustee from time to time reasonable compensation for its
acceptance of this Indenture and services hereunder and under the other Note Documents. The
Trustee’s compensation will not be limited by any law on compensation of a trustee of an express
trust. The Issuer will reimburse the Trustee promptly upon request for all reasonable
disbursements, advances and expenses incurred or made by it in addition to the compensation for its
services in accordance with and subject to the Trustee’s standard billing practices. Such expenses
will include the reasonable compensation, disbursements and expenses of the Trustee’s agents and
counsel.

     (b) The Issuer and the Guarantors will indemnify, defend and hold the Trustee and its
officers, directors, employees and agents harmless against any and all losses, liabilities, claims
or expenses incurred by it arising out of or in connection with the acceptance or administration of
its duties, or the exercise or failure to exercise any of its rights or remedies, under this
Indenture or the other Note Documents, including the costs and expenses of enforcing this Indenture
against the Issuer and the Guarantors (including this Section 7.07) and defending itself against
any claim (whether asserted by the Issuer, the Guarantors, any Holder or any other Person) or
liability in connection with the exercise or performance of any of its powers or duties hereunder
and under the other Note Documents (or its failure to do so), except to the extent any such loss,
liability or expense may be attributable to its negligence or bad faith. The Trustee will notify
the Issuer promptly of any claim for which it may seek indemnity. Failure by the

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Trustee to so notify the Issuer will not relieve the Issuer or any of the Guarantors of
its/their obligations hereunder. The Issuer or such Guarantor will defend the claim and the
Trustee will cooperate in the defense. The Trustee may have separate counsel and the Issuer will
pay the reasonable fees and expenses of such counsel. Neither the Issuer nor any Guarantor need
pay for any settlement made without its consent, which consent will not be unreasonably withheld.

     (c) The obligations of the Issuer and the Guarantors under this Section 7.07 will survive the
satisfaction and discharge of this Indenture.

     (d) To secure the Issuer’s and the Guarantors’ payment obligations in this Section 7.07, the
Trustee will have a Lien prior to the Lien (if any) securing the Notes on all money or property
held or collected by the Trustee under the Note Documents or otherwise, except that held in trust
to pay principal and interest on particular Notes. Such Lien will survive the satisfaction and
discharge of this Indenture and the resignation or removal of the Trustee.

     (e) When the Trustee incurs expenses or renders services after an Event of Default specified
in Section 6.01(7) or (8) occurs, the expenses and the compensation for the services (including the
fees and expenses of its agents and counsel) are intended to constitute expenses of administration
under any Bankruptcy Law.

     Section 7.08. Replacement of Trustee.

     (a) A resignation or removal of the Trustee and appointment of a successor Trustee will become
effective only upon the successor Trustee’s acceptance of appointment as provided in this Section
7.08.

     (b) The Trustee may resign in writing at any time and be discharged from the trust hereby
created by so notifying the Issuer. The Holders of a majority in aggregate principal amount of the
then outstanding Notes may remove the Trustee by so notifying the Trustee and the Issuer in
writing. The Issuer may remove the Trustee if:

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

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

     (3) a custodian or public officer takes charge of the Trustee or its property; or

     (4) the Trustee becomes incapable of acting.

     (c) If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for
any reason, the Issuer will promptly appoint a successor Trustee. Within one year after the
successor Trustee takes office, the Holders of a majority in aggregate principal amount of the then
outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed by the
Issuer.

     (d) If a successor Trustee does not take office within 60 days after the retiring Trustee
resigns or is removed, the retiring Trustee, the Issuer, or the Holders of at least 10% in
aggregate principal amount of the then outstanding Notes may petition any court of competent
jurisdiction for the appointment of a successor Trustee.

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     (e) If the Trustee, after written request by any Holder who has been a Holder for at least six
months, fails to comply with Section 7.10, such Holder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

     (f) A successor Trustee will deliver a written acceptance of its appointment to the retiring
Trustee and to the Issuer. Thereupon, the resignation or removal of the retiring Trustee will
become effective, and the successor Trustee will have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee will mail a notice of its succession to
Holders. The retiring Trustee will promptly transfer all property held by it as Trustee to the
successor Trustee; provided all sums owing to the Trustee hereunder have been paid and subject to
the Lien provided for in Section 7.07. Notwithstanding replacement of the Trustee pursuant to this
Section 7.08, the Issuer’s obligations under Section 7.07 will continue for the benefit of the
retiring Trustee.

     Section 7.09. Successor Trustee by Merger, etc.

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

     Section 7.10. Eligibility; Disqualification.

     There will at all times be a Trustee hereunder that is a corporation organized and doing
business under the laws of the United States of America or of any state thereof that is authorized
under such laws to exercise corporate trustee power, that is subject to supervision or examination
by federal or state authorities and that has a combined capital and surplus of at least $100.0
million as set forth in its most recent filed annual or quarterly report of condition.

     This Indenture will always have a Trustee who satisfies the requirements of TIA § 310(a)(1),
(2) and (5). The Trustee is subject to TIA § 310(b).

     Section 7.11. Preferential Collection of Claims Against the Issuer.

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

     Section 7.12. Escrow Authorization.

     Each Holder, by its acceptance of a Note, consents and agrees to the terms of the Escrow
Agreement and authorizes and directs the Trustee to enter into the Escrow Agreement and to perform
its obligations and exercise its rights thereunder in accordance therewith. The Escrow Issuer
shall do or cause to be done all such acts and things as may be necessary or proper, or as may be
required by the provisions of the Escrow Agreement, to assure and confirm to the Trustee the
security interest contemplated by the Escrow Agreement or any part thereof, as from time to time
constituted, so as to render the same available for the security and benefit of this Indenture and
of the Notes secured hereby, according to the intent and purpose herein expressed. Escrow Issuer
shall take, or shall cause to be taken, any and all actions reasonably required to cause the Escrow
Agreement to create and maintain, as security for the obligations of Escrow Issuer under this
Indenture and the Notes as provided in the Escrow Agreement, valid and enforceable first priority
perfected liens in and on all the Escrow Property, in favor of the Trustee for its benefit and the
ratable benefit of the Holders. Additionally, the Trustee and the Collateral Agent are

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hereby authorized, without the consent of any Holder, to enter into the Notes Documents
contemplated by the Escrow Agreement to be entered into on or prior to the Release Date.

ARTICLE 8

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

     Section 8.01. Option to Effect Legal Defeasance or Covenant Defeasance.

     The Issuer may at any time, at the option of its Board of Directors evidenced by a resolution
set forth in an Officer’s Certificate, elect to have either Section 8.02 or 8.03 be applied to all
outstanding Notes upon compliance with the conditions set forth below in this Article 8.

     Section 8.02. Legal Defeasance and Discharge.

     Upon the Issuer’s exercise under Section 8.01 of the option applicable to this Section 8.02,
the Company and each of the Guarantors will, subject to the satisfaction of the conditions set
forth in Section 8.04, be deemed to have been discharged from its/their obligations with respect to
all outstanding Notes (including the Note Guarantees) on the date the conditions set forth below
are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means that the
Issuer and the Guarantors will be deemed to have paid and discharged the entire Indebtedness
represented by the outstanding Notes (including the Note Guarantees), which will thereafter be
deemed to be “outstanding” only for the purposes of Section 8.05 and the other Sections of this
Indenture referred to in clauses (1) and (2) below, and to have satisfied all its/their other
obligations under such Notes, the Note Guarantees and this Indenture (and the Trustee, on demand of
and at the expense of the Issuer, shall execute proper instruments acknowledging the same) and all
of the Liens on Collateral securing the Notes shall be released, except for the following
provisions of this Indenture which will survive until otherwise terminated or discharged hereunder:

     (1) the rights of Holders of outstanding Notes to receive payments in respect of the
principal of, or interest or premium, if any, on, such Notes when such payments are due from
the trust referred to in Section 8.04;

     (2) the Issuer’s obligations with respect to such Notes under Article 2 and Section
4.02;

     (3) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the
Issuer’s and the Guarantors’ obligations in connection therewith; and

     (4) this Article 8.

     Subject to compliance with this Article 8, the Issuer may exercise its option under this
Section 8.02 notwithstanding the prior exercise of its option under Section 8.03.

     Section 8.03. Covenant Defeasance.

     Upon the Issuer’s exercise under Section 8.01 of the option applicable to this Section 8.03,
the Issuer and each of the Guarantors will, subject to the satisfaction of the conditions set forth
in Section 8.04, be released from each of their/its obligations under the covenants contained in
Sections 4.03, 4.04, 4.05, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.15, 4.18 and 4.19 and clause
(4) of the first paragraph of Section 5.01 with respect to the outstanding Notes on and after the
date the conditions set forth in Section 8.04 are satisfied (hereinafter, “Covenant Defeasance”),
and the Notes will thereafter be deemed not “outstanding”

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for the purposes of any direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but will continue to be deemed
“outstanding” for all other purposes hereunder (it being understood that such Notes will not be
deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means that, all
Liens on the Collateral securing the Notes will be released and with respect to the outstanding
Notes and Note Guarantees, the Issuer and the Guarantors may omit to comply with and will have no
liability in respect of any term, condition or limitation set forth in any such covenant, whether
directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by
reason of any reference in any such covenant to any other provision herein or in any other document
and such omission to comply will not constitute a Default or an Event of Default under Section
6.01, but, except as specified above, the remainder of this Indenture and such Notes and Note
Guarantees will be unaffected thereby. In addition, upon the Issuer’s exercise under Section 8.01
of the option applicable to this Section 8.03, subject to the satisfaction of the conditions set
forth in Section 8.04, Sections 6.01(3) through 6.01(6) and Sections 6.01(9) and (10) will not
constitute Events of Default.

     Section 8.04. Conditions to Legal or Covenant Defeasance.

     In order to exercise either Legal Defeasance or Covenant Defeasance under either Section 8.02
or 8.03:

     (1) the Issuer must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders, cash in U.S. dollars, non-callable Government Securities, or a combination
thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized
investment bank, appraisal firm, or firm of independent public accountants, to pay the
principal of, premium and Special Interest, if any, and interest on, the outstanding Notes
on the stated date for payment thereof or on the applicable redemption date, as the case may
be, and the Issuer must specify whether the Notes are being defeased to such stated date for
payment or to a particular redemption date;

     (2) in the case of an election under Section 8.02, the Issuer must deliver to the
Trustee an Opinion of Counsel confirming that:

     (A) the Issuer has received from, or there has been published by, the Internal
Revenue Service a ruling; or

     (B) since the Issue Date, there has been a change in the applicable federal
income tax law,

in either case to the effect that, and based thereon such Opinion of Counsel shall confirm
that, the Holders of the outstanding Notes will not recognize income, gain or loss for
federal income tax purposes as a result of such Legal 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 Legal Defeasance had not occurred;

     (3) in the case of an election under Section 8.03, the Issuer must deliver to the
Trustee an Opinion of Counsel confirming that the Holders of the outstanding Notes will not
recognize income, gain or loss for federal income tax purposes as a result of such Covenant
Defeasance and will be subject to federal income tax on the same amounts, in the same manner
and at the same times as would have been the case if such Covenant Defeasance had not
occurred;

     (4) no Default or Event of Default shall have occurred and be continuing on the date of
such deposit (other than a Default or Event of Default resulting from the borrowing of funds
to

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be applied to such deposit) and the deposit will not result in a breach or violation
of, or constitute a default under, any other instrument to which the Issuer or any Guarantor
is a party or by which the Issuer or any Guarantor is bound;

     (5) such Legal Defeasance or Covenant Defeasance will not result in a breach or
violation of, or constitute a default under, any material agreement or instrument (other
than this Indenture) to which the Issuer or any of its Subsidiaries is a party or by which
the Issuer or any of its Subsidiaries is bound;

     (6) the Issuer must deliver to the Trustee an Officer’s Certificate stating that the
deposit was not made by the Issuer with the intent of preferring the Holders of Notes over
the other creditors of the Issuer with the intent of defeating, hindering, delaying or
defrauding any creditors of the Issuer or others; and

     (7) the Issuer must deliver to the Trustee an Officer’s Certificate and an Opinion of
Counsel, each stating that all conditions precedent relating to the Legal Defeasance or the
Covenant Defeasance have been complied with.

     Section 8.05. Deposited Money and Government Securities to Be Held in Trust; Other Miscellaneous Provisions.

     Subject to Section 8.06, all money and non-callable Government Securities (including the
proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for
purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04 in respect of the
outstanding Notes will be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Indenture, to the payment, either directly or through any Paying
Agent (including the Issuer acting as Paying Agent) as the Trustee may determine, to the Holders of
such Notes of all sums due and to become due thereon in respect of principal, premium and Special
Interest, if any, and interest, but such money need not be segregated from other funds except to
the extent required by law.

     The Issuer will pay and indemnify the Trustee against any tax, fee or other charge imposed on
or assessed against the cash or non-callable Government Securities deposited pursuant to Section
8.04 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 the outstanding Notes.

     Notwithstanding anything in this Article 8 to the contrary, the Trustee will deliver or pay to
the Issuer from time to time upon the request of the Issuer any money or non-callable Government
Securities held by it as provided in Section 8.04 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 8.04(1)), are in excess of the amount
thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or
Covenant Defeasance.

     Section 8.06. Repayment to Issuer.

     Subject to applicable law, 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 or Special Interest, if
any, or interest on, any Note and remaining unclaimed for two years after such principal, premium
or Special Interest, if any, or interest has become due and payable shall be paid to the Issuer on
its request or (if then held by the Issuer) will be discharged from such trust; and the Holder of
such Note will thereafter be permitted to look only to the Issuer for payment thereof, and all
liability and other obligations of the Trustee

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or such Paying Agent with respect to such trust money, and all liability of the Issuer as
trustee thereof, will thereupon cease.

     Section 8.07. Reinstatement.

     If the Trustee or Paying Agent is unable to apply any U.S. dollars or non-callable Government
Securities in accordance with Section 8.02 or 8.03, as the case may be, by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, then the Issuer’s and the Guarantors’ obligations under this Indenture and the
Notes and the Note Guarantees will be revived and reinstated as though no deposit had occurred
pursuant to Section 8.02 or 8.03 until such time as the Trustee or Paying Agent is permitted to
apply all such money in accordance with Section 8.02 or 8.03, as the case may be; provided,
however, that, if the Issuer makes any payment of principal of, premium or Special Interest, if
any, or interest on, any Note following the reinstatement of its obligations, the Issuer will be
subrogated to the rights of the Holders of such Notes to receive such payment from the money held
by the Trustee or Paying Agent.

ARTICLE 9

AMENDMENT, SUPPLEMENT AND WAIVER

     Section 9.01. Without Consent of Holders of Notes.

     Notwithstanding Section 9.02 of this Indenture, the Issuer, the Guarantors and the Trustee may
amend or supplement this Indenture, the Escrow Agreement, the Security Documents, the Notes or the
Note Guarantees without the consent of any Holder of Note:

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

     (2) to provide for uncertificated Notes in addition to or in place of certificated
Notes;

     (3) to provide for the assumption of the Issuer’s or a Guarantor’s obligations to the
Holders of the Notes and Note Guarantees by a successor to the Issuer or such Guarantor
pursuant to Article 5 or Article 10;

     (4) to make any change that would provide any additional rights or benefits to the
Holders of the Notes or that does not adversely affect the legal rights hereunder of any
Holder;

     (5) to comply with requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the TIA;

     (6) to conform the text of this Indenture, the Notes, the Escrow Agreement, the
Registration Rights Agreement or the Security Documents to any provision of the “Description
of Notes” section of the Offering Memorandum, to the extent that such provision in that
“Description of Notes” was intended to be a verbatim recitation of a provision of this
Indenture, the Escrow Agreement, the Note Guarantees, the Notes or the Security Documents,
which intent shall be evidenced by an Officer’s Certificate of the Issuer to that effect;

     (7) to provide for the issuance of Additional Notes in accordance with the limitations
set forth in this Indenture as of the Issue Date;

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     (8) to allow any Guarantor to execute a supplemental indenture and/or a Note Guarantee
with respect to the Notes;

     (9) to make, complete or confirm any grant of Collateral permitted or required by this
Indenture or any of the Security Documents or any release of Collateral that becomes
effective as set forth in this Indenture or any of the Security Documents;

     (10) to comply with the rules of the Depository; or

     (11) as contemplated by Section 7.12.

     In addition, the Issuer, the Guarantors, the Trustee and the Collateral Agent may amend the
Intercreditor Agreement or the Security Documents to add additional secured parties holding
Permitted Additional Pari Passu Obligations or ABL Obligations permitted by this Indenture with the
same Lien priorities and rights as provided in the Intercreditor Agreement or to enter into
intercreditor arrangements with the holders of any such Indebtedness so long as the terms of such
intercreditor arrangements are not less favorable to the Holders of Notes than the intercreditor
provisions contained in the Security Agreement and the Intercreditor Agreement.

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

     Upon the request of the Issuer accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and upon receipt by the
Trustee of the documents described in Section 7.02, the Trustee will join with the Issuer and the
Guarantors in the execution of any amended or supplemental indenture authorized or permitted by the
terms of this Indenture and to make any further appropriate agreements and stipulations that may be
therein contained, but the Trustee will not be obligated to enter into such amended or supplemental
indenture that affects its own rights, duties, privileges, protections, indemnities, liabilities or
immunities under this Indenture or otherwise.

     Section 9.02. With Consent of Holders of Notes.

     Except as provided below in this Section 9.02, the Issuer and the Trustee may amend or
supplement this Indenture (including, without limitation, Section 4.10 and Section 4.15) and the
Notes and the Note Guarantees with the consent of the Holders of at least a majority in aggregate
principal amount of the then outstanding Notes (including, without limitation, Additional Notes, if
any) voting as a single class (including, without limitation, consents obtained in connection with
a tender offer or exchange offer for, or purchase of, the Notes), and, subject to Sections 6.04 and
6.07, any existing Default or Event of Default (other than a Default or Event of Default in the
payment of the principal of, premium or Special Interest, if any, or interest on, the Notes, except
a payment default resulting from an acceleration that has been rescinded) or compliance with any
provision of this Indenture, the Security Documents, the Notes or the Note Guarantees may be waived
with the consent of the Holders of a majority in aggregate principal amount of the then outstanding
Notes (including, without limitation, Additional Notes, if any) voting as a single class
(including, without limitation, consents obtained in connection with a tender offer or exchange
offer for, or purchase of, the Notes).

     Upon the request of the Issuer accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture or other amendments, and
upon the filing with the Trustee of evidence satisfactory to the Trustee of the consent of the
Holders of Notes as aforesaid, and upon receipt by the Trustee of the documents described in
Section 7.02, the Trustee will join

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with the Issuer and the Guarantors in the execution of such amended or supplemental indenture
unless such amended or supplemental indenture directly affects the Trustee’s own rights, duties,
privileges, protections, indemnities, liabilities or immunities under this Indenture or otherwise,
in which case the Trustee may in its discretion, but will not be obligated to, enter into such
amended or supplemental Indenture.

     It is not be necessary for the consent of the Holders of Notes under this Section 9.02 to
approve the particular form of any proposed amendment, supplement or waiver, but it is sufficient
if such consent approves the substance thereof.

     After an amendment, supplement or waiver under this Section 9.02 becomes effective, the Issuer
will mail to the Holders of Notes affected thereby a notice briefly describing the amendment,
supplement or waiver. Any failure of the Issuer to mail such notice, or any defect therein, will
not, however, in any way impair or affect the validity of any such amended or supplemental
indenture or waiver. Subject to Sections 6.04 and 6.07, the Holders of a majority in aggregate
principal amount of the Notes then outstanding voting as a single class may waive compliance in a
particular instance by the Issuer with any provision of this Indenture or the Notes or the Note
Guarantees. However, without the consent of each Holder affected, an amendment, supplement or
waiver under this Section 9.02 may not (with respect to any Notes held by a non-consenting Holder):

     (1) reduce the principal amount of Notes whose Holders must consent to an amendment,
supplement or waiver;

     (2) reduce the principal of or change the fixed maturity of any Note or alter or waive
any of the provisions with respect to the redemption of the Notes (except as provided above
with respect to Sections 4.10 and 4.15);

     (3) reduce the rate of or change the time for payment of interest, including default
interest, on any Note;

     (4) waive a Default or Event of Default in the payment of principal of, or premium, if
any, or interest on, the Notes (except a rescission of acceleration of the Notes by the
Holders of at least a majority in aggregate principal amount of the then outstanding Notes
and a waiver of the payment default that resulted from such acceleration);

     (5) make any Note payable in money other than that stated in the Notes;

     (6) make any change in the provisions of this Indenture relating to waivers of past
Defaults or the rights of Holders of Notes to receive payments of principal of, or interest
or premium, if any, on, the Notes;

     (7) waive a redemption payment with respect to any Note (other than a payment required
by Section 4.10 or 4.15);

     (8) release any Guarantor from any of its obligations under its Note Guarantee or this
Indenture, except in accordance with the terms of this Indenture; or

     (9) make any change in the preceding amendment and waiver provisions.

     In addition, without the consent of the Holders of at least 66 2/3% in aggregate principal
amount of Notes then outstanding, no amendment or waiver may release all or substantially all of
the Collateral from the Lien of this Indenture and the Security Documents with respect to the Notes
Obligations.

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     Without the consent of the Holders of at least 75% in aggregate principal amount of the Notes
then outstanding, no amendment or waiver may make any change to, or extend the time for performance
under, the escrow release provisions described in the Escrow Agreement or the Special Mandatory
Redemption provisions in Section 6 of the Notes.

     Section 9.03. [Reserved].

     Section 9.04. Revocation and Effect of Consents.

     Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a
Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note or
portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of
the consent is not made on any Note. However, any such Holder of a Note or subsequent Holder of a
Note may revoke the consent as to its Note if the Trustee receives written notice of revocation
before the date the amendment, supplement or waiver becomes effective. An amendment, supplement or
waiver becomes effective in accordance with its terms and thereafter binds every Holder.

     Section 9.05. Notation on or Exchange of Notes.

     The Trustee may place an appropriate notation about an amendment, supplement or waiver on any
Note thereafter authenticated. The Issuer in exchange for all Notes may issue and the Trustee
shall, upon receipt of an Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

     Failure to make the appropriate notation or issue a new Note will not affect the validity and
effect of such amendment, supplement or waiver.

     Section 9.06. Trustee to Sign Amendments, etc.

     The Trustee will sign any amended or supplemental indenture or other amendment authorized
pursuant to this Article 9 if the amendment or supplement does not, in the opinion of the Trustee,
adversely affect the rights, duties, liabilities, privileges, protections, indemnities or
immunities of the Trustee. The Issuer may not sign an amended or supplemental indenture until the
Board of Directors of the Issuer approves it. In executing any amended or supplemental indenture,
the Trustee will be entitled to receive and (subject to Section 7.01) will be fully protected in
relying upon, in addition to the documents required by Section 14.04, an Officer’s Certificate and
an Opinion of Counsel stating that the execution of such amended or supplemental indenture is
authorized or permitted by this Indenture.

ARTICLE 10

NOTE GUARANTEES

     Section 10.01. Guarantee.

     (a) Subject to this Article 10, each of the Guarantors hereby, jointly and severally,
unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee and
to the Trustee and its successors and assigns, irrespective of the validity and enforceability of
this Indenture, the Notes, the other Notes Documents or the obligations of the Issuer hereunder or
thereunder, that:

     (1) the principal of, premium and Special Interest, if any, and interest on, the Notes
will be promptly paid in full when due, whether at maturity, by acceleration, redemption or
otherwise,

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and interest on the overdue principal of and interest on the Notes, if any, if
lawful, and all other obligations of the Issuer to the Holders or the Trustee hereunder or
thereunder will be promptly paid in full or performed, all in accordance with the terms
hereof and thereof, and

     (2) in case of any extension of time of payment or renewal of any Notes or any of such
other obligations, that same will be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise.

     Failing payment when due of any amount so guaranteed or any performance so guaranteed for
whatever reason, the Guarantors will be jointly and severally obligated to pay the same
immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee of
collection.

     (b) The Guarantors hereby agree that their obligations hereunder are unconditional,
irrespective of the validity, regularity or enforceability of the Notes or this Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with
respect to any provisions hereof or thereof, the recovery of any judgment against the Issuer, any
action to enforce the same or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a Guarantor. Each Guarantor hereby waives diligence,
presentment, demand of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Issuer, any right to require a proceeding first against the Issuer, protest,
notice and all demands whatsoever and covenant that this Note Guarantee will not be discharged
except by complete performance of the obligations contained in the Notes and this Indenture.

     (c) If any Holder or the Trustee is required by any court or otherwise to return to the
Issuer, the Guarantors or any custodian, trustee, liquidator or other similar official acting in
relation to either the Company or the Guarantors, any amount paid by either to the Trustee or such
Holder, this Note Guarantee, to the extent theretofore discharged, will be reinstated in full force
and effect.

     (d) Each Guarantor agrees that it will not be entitled to any right of subrogation in relation
to the Holders in respect of any obligations guaranteed hereby until payment in full of all
obligations guaranteed hereby. Each Guarantor further agrees that, as between the Guarantors, on
the one hand, and the Holders and the Trustee, on the other hand, (1) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article 6 for the purposes of this
Note Guarantee, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby, and (2) in the event of any
declaration of acceleration of such obligations as provided in Article 6, such obligations (whether
or not due and payable) will forthwith become due and payable by the Guarantors for the purpose of
this Note Guarantee.

     (e) All Guarantors desire to allocate among themselves (collectively, the “Contributing
Guarantors”), in a fair and equitable manner, their obligations arising under this Indenture.
Accordingly, in the event any payment or distribution is made on any date by a Guarantor (a
“Funding Guarantor”) under its Guarantee of the Notes such that its Aggregate Payments exceed its
Fair Share as of such date, such Funding Guarantor shall be entitled to a contribution from each of
the other Contributing Guarantors in an amount sufficient to cause each Contributing Guarantor’s
Aggregate Payments to equal its Fair Share as of such date. “Fair Share” means, with respect to a
Contributing Guarantor as of any date of determination, an amount equal to (a) the ratio of (i) the
Fair Share Contribution Amount with respect to such Contributing Guarantor, to (ii) the aggregate
of the Fair Share Contribution Amounts with respect to all Contributing Guarantors, multiplied by
(b) the aggregate amount paid or distributed on or before such date by all Funding Guarantors under
its Guarantee of the Notes in respect of the obligations guaranteed. “Fair Share Contribution
Amount” means, with respect to a Contributing Guarantor as of any date of determination, the
maximum aggregate amount of the obligations of such Contributing Guarantor under its Guarantee

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of the Notes that would not render its obligations hereunder or thereunder subject to
avoidance as a fraudulent transfer or conveyance under Section 548 of the Bankruptcy Code or any
comparable applicable provisions of state law; provided that solely for purposes of calculating the
Fair Share Contribution Amount with respect to any Contributing Guarantor for purposes of this
Section 10.01, any assets or liabilities of such Contributing Guarantor arising by virtue of any
rights to subrogation, reimbursement or indemnification or any rights to or obligations of
contribution hereunder shall not be considered as assets or liabilities of such Contributing
Guarantor. “Aggregate Payments” means, with respect to a Contributing Guarantor as of any date of
determination, an amount equal to (1) the aggregate amount of all payments and distributions made
on or before such date by such Contributing Guarantor in respect of its Guarantee of the Notes
(including in respect of this Section 10.01), minus (2) the aggregate amount of all payments
received on or before such date by such Contributing Guarantor from the other Contributing
Guarantors as contributions under this Section 10.01. The amounts payable as contributions
hereunder shall be determined as of the date on which the related payment or distribution is made
by the applicable Funding Guarantor. Each Guarantor is a third party beneficiary to the
contribution agreement set forth in this Section 10.01.

     Section 10.02. Limitation on Guarantor Liability.

     Each Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is the
intention of all such parties that the Note Guarantee of such Guarantor not constitute a fraudulent
transfer or conveyance for purposes of applicable Bankruptcy Law, the Uniform Fraudulent Conveyance
Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent
applicable to any Note Guarantee. To effectuate the foregoing intention, the Trustee, the Holders
and the Guarantors hereby irrevocably agree that the obligations of such Guarantor will be limited
to the maximum amount that will, after giving effect to such maximum amount and all other
contingent and fixed liabilities of such Guarantor that are relevant under such laws, and after
giving effect to any collections from, rights to receive contribution from or payments made by or
on behalf of any other Guarantor in respect of the obligations of such other Guarantor under this
Article 10, result in the obligations of such Guarantor under its Note Guarantee not constituting a
fraudulent transfer or conveyance.

     Section 10.03. Execution and Delivery of Note Guarantee.

     To evidence its Note Guarantee set forth in Section 10.01, each Guarantor hereby agrees that a
notation of such Note Guarantee substantially in the form attached as Exhibit E hereto will be
endorsed by an Officer of such Guarantor on each Note authenticated and delivered by the Trustee
and that this Indenture will be executed on behalf of such Guarantor by one of its Officers (but
the failure to execute such notation shall not affect the validity of any Note Guarantee).

     Each Guarantor hereby agrees that its Note Guarantee set forth in Section 10.01 will remain in
full force and effect notwithstanding any failure to endorse on each Note a notation of such Note
Guarantee.

     If an Officer whose signature is on this Indenture or on the Note Guarantee no longer holds
that office at the time the Trustee authenticates the Note on which a Note Guarantee is endorsed,
the Note Guarantee will be valid nevertheless.

     The delivery of any Note by the Trustee, after the authentication thereof hereunder, will be
deemed to constitute due delivery of the Note Guarantee set forth in this Indenture on behalf of
the Guarantors.

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     Section 10.04. Guarantors May Consolidate, etc., on Certain Terms.

     No Guarantor (other than any Guarantor whose Note Guarantee is to be released in accordance
with the terms of Section 10.05 in connection with any transaction complying with the provisions of
Section 4.10) will, and the Issuer will not cause or permit any Guarantor to, consolidate with or
merge with or into any Person other than the Issuer or any other Guarantor unless:

     (1) the entity formed by or surviving any such consolidation or merger (if other than
the Guarantor) or to which such sale, lease, conveyance or other disposition shall have been
made is a corporation, limited liability company or partnership organized or existing under
the laws of the United States, any state of the United States or the District of Columbia;

     (2) such entity (if other than a Guarantor) assumes by supplemental indenture or other
documentation or instruments (in form reasonably satisfactory to the trustee and the
Collateral Agent), the performance of every covenant and obligation of the Guarantor on the
Note Guarantee and the Indenture, the Security Documents and the Intercreditor Agreement, on
the part of such Guarantor to be performed or observed, and such entity (whether or not
previously a Guarantor) shall cause such amendments, supplements or other documents to be
executed, filed and recorded in such jurisdictions as may be required by applicable law to
preserve and protect the Lien on the Collateral owned by or transferred to such entity,
together with such financing statements or comparable documents as may be required to
perfect any security interest in such Collateral which may be perfected by the filing of a
financing statement or a similar document under the Uniform Commercial Code or other similar
statute or regulation of the relevant states or jurisdictions; and

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

     In case of any such consolidation, amalgamation, merger, sale or conveyance and upon the
assumption by the successor Person, by supplemental indenture, executed and delivered to the
Trustee and satisfactory in form to the Trustee, of the Note Guarantee endorsed upon the Notes and
the due and punctual performance of all of the covenants and conditions of this Indenture to be
performed by the Guarantor, such successor Person will succeed to and be substituted for the
Guarantor with the same effect as if it had been named herein as a Guarantor. Such successor
Person thereupon may cause to be signed any or all of the Note Guarantees to be endorsed upon all
of the Notes issuable hereunder which theretofore shall not have been signed by the Issuer and
delivered to the Trustee. All the Note Guarantees so issued will in all respects have the same
legal rank and benefit under this Indenture as the Note Guarantees theretofore and thereafter
issued in accordance with the terms of this Indenture as though all of such Note Guarantees had
been issued at the date of the execution.

     Except as set forth in Articles 4 and 5, and notwithstanding clauses 2(a) and (b) above,
nothing contained in this Indenture or in any of the Notes will prevent any consolidation,
amalgamation or merger of a Guarantor with or into the Issuer or another Guarantor, or will prevent
any sale or conveyance of the property of a Guarantor as an entirety or substantially as an
entirety to the Issuer or another Guarantor.

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     Section 10.05. Releases.

     The Note Guarantee of any Guarantor, and the Collateral Agent’s Lien on the Collateral of such
Guarantor, will be released:

     (1) in connection with any sale or other disposition of all of the assets of that
Guarantor (including by way of merger or consolidation) to a Person that is not (either
before or after giving effect to such transaction) the Issuer or a Guarantor if the sale or
other disposition does not violate Section 4.10;

     (2) in connection with any sale or other disposition of Capital Stock of that Guarantor
to a Person that is not (either before or after giving effect to such transaction) the
Issuer or Guarantor, if the sale or other disposition does not violate Section 4.10 and the
Guarantor ceases to be a Restricted Subsidiary of the Issuer as a result of the sale or
other disposition;

     (3) if the Issuer designates any Restricted Subsidiary that is a Guarantor to be an
Unrestricted Subsidiary in accordance with Section 4.19; or

     (4) upon Legal Defeasance or Covenant Defeasance in accordance with Article 8 or
satisfaction and discharge of this Indenture in accordance with Articles 8 and 11.

     Any Guarantor not released from its obligations under its Note Guarantee as provided in this
Section 10.05 will remain liable for the full amount of principal of and interest and premium and
Special Interest, if any, on the Notes and for the other obligations of any Guarantor under this
Indenture as provided in this Article 10.

ARTICLE 11

SATISFACTION AND DISCHARGE

     Section 11.01. Satisfaction and Discharge.

     This Indenture and Notes will be discharged (and all Liens on the Collateral will be released)
and this Indenture will cease to be of further effect as to all Notes issued hereunder, when:

     (1) either:

     (A) all Notes that have been authenticated, except lost, stolen or destroyed
Notes that have been replaced or paid and Notes for whose payment money has
theretofore been deposited in trust and thereafter repaid to the Issuer, have been
delivered to the Trustee for cancellation; or

     (B) all Notes that have not been delivered to the Trustee for cancellation have
become due and payable by reason of the mailing of a notice of redemption or
otherwise or will become due and payable within one year and the Issuer or any
Guarantor has irrevocably deposited or caused to be deposited with the Trustee as
trust funds in trust solely for the benefit of the Holders, cash in U.S. dollars,
non-callable Government Securities, or a combination thereof, in such amounts as
will be sufficient, without consideration of any reinvestment of interest, to pay
and discharge the entire Indebtedness on the Notes not delivered to the Trustee for
cancellation for principal, premium and Special Interest, if any, and accrued
interest to the date of maturity or redemption;

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     (2) no Default or Event of Default has occurred and is continuing on the date of such
deposit (other than a Default or Event of Default resulting from the borrowing of funds to
be applied to such deposit) and the deposit will not result in a breach or violation of, or
constitute a default under, any other instrument to which the Issuer or any Guarantor is a
party or by which the Issuer or any Guarantor is bound;

     (3) the Issuer or any Guarantor has paid or caused to be paid all sums payable by it
under this Indenture; and

     (4) the Issuer has delivered irrevocable instructions to the Trustee under this
Indenture to apply the deposited money toward the payment of the Notes at maturity or on the
redemption date, as the case may be.

In addition, the Issuer must deliver an Officer’s Certificate and an Opinion of Counsel to the
Trustee stating that all conditions precedent to satisfaction and discharge have been satisfied.

     Notwithstanding the satisfaction and discharge of this Indenture, if money has been deposited
with the Trustee pursuant to subclause (B) of clause (1) of this Section 11.01, the provisions of
Sections 11.02 and 8.06 will survive. In addition, nothing in this Section 11.01 will be deemed to
discharge those provisions of Section 7.07, that, by their terms, survive the satisfaction and
discharge of this Indenture.

     Section 11.02. Application of Trust Money.

     Subject to the provisions of Section 8.06, all money deposited with the Trustee pursuant to
Section 11.01 shall be held in trust and applied by it, in accordance with the provisions of the
Notes and this Indenture, to the payment, either directly or through any Paying Agent (including
the Issuer acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled
thereto, of the principal (and premium and Special Interest, if any) and interest for whose payment
such money has been deposited with the Trustee; but such money need not be segregated from other
funds except to the extent required by law.

     If the Trustee or Paying Agent is unable to apply any money or Government Securities in
accordance with Section 11.01 by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Issuer’s and any Guarantor’s obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to Section 11.01,
provided that if the Issuer has made any payment of principal of, premium or Special Interest, if
any, or interest on, any Notes because of the reinstatement of its obligations, the Issuer shall be
subrogated to the rights of the Holders of such Notes to receive such payment from the money or
Government Securities held by the Trustee or Paying Agent.

ARTICLE 12

INTERCREDITOR AGREEMENT

     Section 12.01. Intercreditor Agreement.

     Each Holder by accepting a Note agrees that the Note Liens are subject to the terms of the
Intercreditor Agreement. The Holders by accepting a Note hereby authorize and direct the Trustee
and the Collateral Agent to enter into the Intercreditor Agreement on behalf of the Holders and
agree that the Holders shall comply with the provisions of the Intercreditor Agreement applicable
to them in their capacities as such to the same extent as if the Holders were parties thereto. In
the event of a conflict or inconsistency

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between (a) the terms and provisions of this Indenture, the Notes or the
Guarantees (on the one hand) and (b) the terms and provisions of the Intercreditor Agreement (on
the other hand), the terms and provisions of the Intercreditor Agreement shall govern.

ARTICLE 13

COLLATERAL

     Section 13.01. Security Documents.

     The Note Obligations are secured as provided in the Security Documents. The Issuer shall, and
shall cause each Guarantor to, and each Guarantor shall, make all filings (including filings of
continuation statements and amendments to UCC financing statements that may be necessary to
continue the effectiveness of such UCC financing statements) necessary to maintain (at the sole
cost and expense of the Issuer and the Guarantors) the security interest created by the Security
Documents in the Collateral as a perfected security interest to the extent perfection is required
by the Security Documents, subject only to Permitted Liens.

     Section 13.02. Collateral Agent.

     (a) The Collateral Agent shall have all the rights and protections provided in the Security
Documents and, additionally, shall have all the rights and protections in its dealings under the
Security Documents as are provided to the “Trustee” under Article 7.

     (b) Subject to Section 7.01, none of the Collateral Agent, Trustee, Paying Agent, Registrar or
Transfer Agent nor any of their respective officers, directors, employees, attorneys or agents will
be responsible or liable for the existence, genuineness, value or protection of any Collateral, for
the legality, enforceability, effectiveness or sufficiency of the Security Documents, for the
creation, perfection, priority, sufficiency or protection of any Note Liens, or any defect or
deficiency as to any such matters.

     (c) Except as required or permitted by the Security Documents, the Holders, by accepting a
Note, acknowledge that the Collateral Agent will not be obligated:

     (1) to act upon directions purported to be delivered to it by any Person, except in
accordance with the Security Documents;

     (2) to foreclose upon or otherwise enforce any Note Lien; or

     (3) to take any other action whatsoever with regard to any or all of the Note Liens,
Security Documents or Collateral.

     Section 13.03. Authorization of Actions to Be Taken.

     (a) Each Holder of Notes, by its acceptance thereof, consents and agrees to the terms of each
Security Document, as originally in effect and as amended, supplemented or replaced from time to
time in accordance with its terms or the terms of this Indenture, authorizes and directs the
Collateral Agent to enter into the Security Documents to which it is a party, authorizes and
empowers the Collateral Agent to execute and deliver the Intercreditor Agreement and authorizes and
empowers the Collateral Agent to bind the Holders of Notes as set forth in the Security Documents
to which the Collateral Agent is a party and the Intercreditor Agreement and to perform its
obligations and exercise its rights and powers thereunder.

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     (b) The Trustee is authorized and empowered to receive for the benefit of the Holders of Notes
any funds collected or distributed to the Collateral Agent under the Security Documents to which
the Trustee is a party and, subject to the terms of the Security Documents, to make further
distributions of such funds to the Holders of Notes according to the provisions of this Indenture.

     (c) Subject to the provisions of Section 7.01, Section 7.02, and the Security Documents, the
Trustee may (but shall not be obligated to), in its sole discretion and without the consent of the
Holders, direct, on behalf of the Holders, the Collateral Agent to take all actions it deems
necessary or appropriate in order to:

     (1) foreclose upon or otherwise enforce any or all of the Note Liens;

     (2) enforce any of the terms of the Security Documents to which the Collateral Agent is
a party; or

     (3) collect and receive payment of any and all Obligations.

     Subject to the Intercreditor Agreement and at the Issuer’s sole cost and expense, the Trustee
is hereby authorized and empowered by each Holder of Notes (by its acceptance thereof) to institute
and maintain, or direct the Collateral Agent to institute and maintain, such suits and proceedings
as it may deem reasonably expedient to protect or enforce the Note Liens or the Security Documents
to which the Collateral Agent or Trustee is a party or to prevent any impairment of Collateral by
any acts that may be unlawful or in violation of the Security Documents or this Indenture, and such
suits and proceedings as the Trustee may deem reasonably expedient, at the Issuer’s sole cost and
expense, to preserve or protect its interests and the interests of the Holders of Notes in the
Collateral, including power to institute and maintain suits or proceedings to restrain the
enforcement of or compliance with any legislative or other governmental enactment, rule or order
that may be unconstitutional or otherwise invalid if the enforcement of, or compliance with, such
enactment, rule or order would impair the Note Liens or be prejudicial to the interests of Holders
or the Trustee.

     Section 13.04. Release of Collateral.

     Collateral may be released from the Lien and security interest created by the Security
Documents at any time or from time to time in accordance with the provisions of the Security
Documents and the Intercreditor Agreement and in accordance with Article 9. In addition, the
Issuer and the Guarantors will be entitled to the release of assets included in the Collateral from
the Liens securing the Notes, and the Trustee shall (or, if the Trustee is not then the Collateral
Agent, shall direct the Collateral Agent to) release the same from such Liens at the Issuer’s sole
cost and expense, under any one or more of the following circumstances without the need for any
further action by any Person:

     (a) in whole or in part, as applicable, as to all or any portion of property subject to such
Note Liens which has been taken by eminent domain, condemnation or other similar circumstances;

     (b) in whole upon (i) satisfaction and discharge of this Indenture in accordance with Article
11 or (ii) a Legal Defeasance or Covenant Defeasance under Article 8;

     (c) in part, as to any property that (i) is sold, transferred or otherwise disposed of by the
Issuer or any Guarantor (other than to the Issuer or another Guarantor) in a transaction not
prohibited by this Indenture at the time of such sale, transfer or disposition, (ii) is owned or at
any time acquired by a Guarantor that has been released from its Guarantee pursuant to Section
10.05, concurrently with the release of such Guarantee or (iii) is Excluded Assets; and

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     (d) in part, in accordance with the applicable provisions of the Security Documents.

In connection with any release of Collateral under this Indenture, the Issuer shall not be required
to comply with Sections 314(c) or 314(d) of the TIA.

     Section 13.05. [Reserved].

     Section 13.06. Powers Exercisable by Receiver or Trustee.

     In case the Collateral shall be in the possession of a receiver or trustee, lawfully
appointed, the powers conferred in this Article 13 upon the Issuer or a Guarantor with respect to
the release, sale or other disposition of such property may be exercised by such receiver or
trustee, and an instrument signed by such receiver or trustee shall be deemed the equivalent of any
similar instrument of the Issuer or a Guarantor or of any officer or officers thereof required by
the provisions of this Article 13; and if the Trustee or the Collateral Agent shall be in the
possession of the Collateral under any provision of this Indenture, then such powers may be
exercised by the Trustee or the Collateral Agent, as the case may be.

     Section 13.07. Voting.

     In connection with any matter under the Security Agreement requiring a vote of holders of
Secured Obligations (as defined in the Security Agreement), the holders of such Secured Obligations
shall be treated as a single class and the Holders shall cast their votes in accordance with this
Indenture. The amount of the Notes to be voted by the Holders will equal the aggregate outstanding
principal amount of the Notes. Following and in accordance with the outcome of the applicable vote
under this Indenture, the Trustee shall vote the total amount of the Notes as a block in respect of
any vote under the Security Agreement.

     Section 13.08. Collateral Proceeds Account.

     (a) Establishment of Collateral Proceeds Account. No later than the first date following the
Issue Date on which the Issuer or any Guarantor receives any Net Proceeds that are expressly
required pursuant to the provisions of Section 4.10 to be deposited into the Collateral Proceeds
Account, there shall be established and, at all times thereafter until this Indenture shall have
terminated, there shall be maintained with the Collateral Agent the Collateral Proceeds Account.
The Collateral Proceeds Account shall be established and maintained by the Collateral Agent at the
office of the Collateral Agent. For the avoidance of doubt, no other deposit account or securities
account shall be, or shall be deemed to be, the Collateral Proceeds Account, and for purposes of
this Indenture, “Trust Monies” shall include only Net Proceeds required to be deposited into the
Collateral Proceeds Account pursuant to the terms of Section 4.10, amounts deposited in the
Collateral Proceeds Account in accordance with the Security Agreement and any investment return in
respect thereof received by the Collateral Agent. The Issuer shall cause all Net Proceeds
expressly required by Section 4.10 to be deposited into the Collateral Proceeds Account to be so
deposited in the Collateral Proceeds Account and any such Trust Monies shall be held by and under
the dominion and control of the Collateral Agent for its benefit and for the benefit of the Secured
Parties (as defined in the Security Agreement) as a part of the Collateral until released in
accordance with this Article 12.

     (b) Withdrawal of Net Proceeds in Connection with Reinvestments. To the extent that any Trust
Monies consist of Net Proceeds of an Asset Sale or Casualty or Condemnation Event, such Trust
Monies may be withdrawn by the Issuer and shall be paid by the Collateral Agent (upon the direction
of the Trustee) to reimburse the Issuer or any Guarantor for expenditures made, or to pay costs to
be incurred, by the Issuer or such Guarantor in connection with a reinvestment of such Net Proceeds
or repayment

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of Indebtedness with such Net Proceeds, in each case complying with Section 4.10, upon
receipt by the Trustee and the Collateral Agent of an Officer’s Certificate, dated not more than 30
days prior to the date of the application for the withdrawal and payment of such Trust Monies to
the effect that:

     (i) such Trust Monies have been (or will be within 30 days of the
requested date of release) applied in compliance with the requirements of
Section 4.10; and

     (ii) to the extent required by Section 4.10 the Issuer has taken (or
will take not later than 30 days following the application of such Net
Proceeds) all steps, if any, required by the Security Documents in order to
grant and/or perfect the security interest of the Collateral Agent in any
assets in which such Net Proceeds have been reinvested (which Officer’s
Certificate shall attach copies of (or forms of) any additional Security
Documents or amendments thereto or filings thereunder, if any, required to
comply with the Security Documents and Section 4.10).

     Upon compliance with the foregoing provisions of this Section 13.08, the Collateral Agent
shall, upon receipt of a written request by the Issuer (which may be contained in the Officer’s
Certificate), pay an amount of Trust Monies equal to the amount specified in the Officer’s
Certificate required by this Section 13.08(b) as directed by the Issuer.

     (c) Withdrawal of Net Cash Proceeds to Fund a Net Proceeds Offer or Release Following a Net
Proceeds Offer. To the extent that any Trust Monies consist of Net Proceeds received by the
Collateral Agent pursuant to the provisions of Section 4.10 and a Net Proceeds Offer has been made
in accordance therewith, such Trust Monies may be withdrawn by the Issuer and shall be paid by the
Collateral Agent to the Paying Agent for application in accordance with Section 4.10 upon receipt
by the Trustee and the Collateral Agent of an Officer’s Certificate, dated not more than ten (10)
days prior to the Purchase Date, setting forth the amount of Excess Proceeds, as applicable,
subject to the Net Proceeds Offer and the date on which Notes and Permitted Additional Pari Passu
Obligations are to be purchased, and to the effect that:

     (1) (x) such Trust Monies constitute Net Proceeds and (y) pursuant to and in accordance
with Section 4.10, the Issuer has made a Net Proceeds Offer; and

     (2) all conditions precedent and covenants herein provided for such application of
Trust Monies have been satisfied.

     Upon compliance with the foregoing provisions of this Section 13.08(c), the Collateral Agent
shall apply the Trust Monies as directed and specified by the Issuer, subject to Section 4.10
(including to return to the Issuer any such amount of Excess Proceeds that are subject to the Net
Proceeds Offer and that are not required to be applied to the purchase of Notes or Permitted
Additional Pari Passu Obligations pursuant to Section 4.10).

     (d) Investment of Trust Monies. So long as no Default or Event of Default shall have occurred
and be continuing, all or any part of any Trust Monies held by (or held in an account subject to
the sole control of) the Collateral Agent shall from time to time be invested or reinvested by the
Collateral Agent in any Cash Equivalents pursuant to a written request by the Issuer in the form of
an Officer’s Certificate, which shall specify the Cash Equivalents in which such Trust Monies shall
be invested and shall certify that such investments constitute Cash Equivalents; and the Collateral
Agent shall sell any such Cash Equivalent only upon receipt of such a written request by the Issuer
specifying the particular Cash

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Equivalent to be sold, unless otherwise required under the Security Agreement. So long as no
Default or Event of Default occurs and is continuing, any interest or dividends accrued, earned or
paid on such Cash Equivalents (in excess of any accrued interest or dividends paid at the time of
purchase) that may be received by the Collateral Agent shall be forthwith paid to the Issuer. Such
Cash Equivalents shall be held by the Collateral Agent as a part of the Collateral, subject to the
same provisions hereof as the cash used by it to purchase such Cash Equivalents.

     The Trustee and Collateral Agent shall not be liable or responsible for any loss, fee, tax or
other charge resulting from such investments, reinvestments or sales except only for their own
grossly negligent action, their own grossly negligent failure to act or their own willful
misconduct in complying with this Section 13.08.

     (e) Application of Other Trust Monies. The Collateral Agent shall return all Trust Monies to
the Issuer upon any Legal Defeasance or Covenant Defeasance under Article 8 or satisfaction and
discharge of this Indenture under Article 11. The Collateral Agent shall have all rights and
remedies with respect to the Collateral Proceeds Account and any Trust Monies as provided in the
Security Documents.

     Section 13.09. Appointment and Authorization of Wells Fargo Bank as Collateral Agent.

     (1) Wells Fargo Bank, National Association is hereby designated and appointed as the
Collateral Agent of the Holders under the Security Documents, and is authorized as the Collateral
Agent for such Holders to execute and enter into each of the Security Documents and all other
instruments relating to the Security Documents and (i) to take action and exercise such powers and
remedies as are expressly required or permitted hereunder and under the Security Documents and all
instruments relating hereto and thereto and (ii) to exercise such powers and perform such duties as
are, in each case, expressly delegated to the Collateral Agent by the terms hereof and thereof,
together with such other powers as are reasonably incidental hereto and thereto.

     (2) Notwithstanding any provision to the contrary elsewhere in this Indenture or the Security
Documents, the Collateral Agent shall not have (i) any duties or responsibilities except those
expressly set forth herein or therein or (ii) any fiduciary relationship with any Holder, and no
implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read
into this Indenture or any Security Document or otherwise exist against the Collateral Agent.

ARTICLE 14

MISCELLANEOUS

     Section 14.01. [Reserved].

     Section 14.02. Notices.

     Any notice or communication by the Issuer, any Guarantor, the Trustee or the Collateral Agent
to the others is duly given if in writing and delivered in person or by first class mail
(registered or certified, return receipt requested), facsimile transmission or overnight courier
guaranteeing next day delivery, to the others’ address:

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     If to the Issuer and/or any Guarantor:

c/o AbitibiBowater Inc.

1155 Metcalfe Street, Suite 800

Montreal, Québec Canada H3B 5H2

Facsimile No.: (514) 394-3644

Attention: Chief Financial Officer

With a copy to:

Troutman Sanders LLP

600 Peachtree Street, NE Suite 5200

Atlanta, Georgia 30308

Facsimile No.: (404) 962-6740

Attention: Marlon F. Starr, Esq.

     If to the Trustee or the Collateral Agent:

Wells Fargo Bank, National Association

Corporate Trust Services

7000 Central Parkway Suite 550

Atlanta, GA 30328

Facsimile No.: (770) 551-5118

Attention: Stefan Victory

     The Issuer, any Guarantor, the Trustee or the Collateral Agent, by notice to the others, may
designate additional or different addresses for subsequent notices or communications.

     All notices and communications (other than those sent to Holders) will be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if transmitted by
facsimile; and the next Business Day after timely delivery to the courier, if sent by overnight
courier guaranteeing next day delivery.

     Any notice or communication to a Holder will be mailed by first class mail, certified or
registered, return receipt requested, or by overnight courier guaranteeing next day delivery or by
electronic means to its address shown on the register kept by the Registrar. Failure to send a
notice or communication to a Holder or any defect in it will not affect its sufficiency with
respect to other Holders.

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

     If the Issuer sends a notice or communication to Holders, it will mail a copy to the Trustee
and each Agent at the same time.

     Section 14.03. Communication by Holders of Notes with Other Holders of Notes.

     Holders may communicate pursuant to TIA § 312(b) with other Holders with respect to their
rights under this Indenture or the Notes. The Issuer, the Trustee, the Registrar and anyone else
shall have the protection of TIA § 312(c).

-105-

 

     Section 14.04. Certificate and Opinion as to Conditions Precedent.

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

     (1) an Officer’s Certificate in form and substance reasonably satisfactory to the
Trustee (which must include the statements set forth in Section 14.05) stating that, in the
opinion of the signers, all conditions precedent and covenants, if any, provided for in this
Indenture relating to the proposed action have been satisfied; and

     (2) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
(which must include the statements set forth in Section 14.05) stating that, in the opinion
of such counsel, all such conditions precedent and covenants have been satisfied.

     Section 14.05. Statements Required in Certificate or Opinion.

     Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture must include:

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

     (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 such Person, he or she has made such
examination or investigation as is necessary to enable him or her to express an informed
opinion as to whether or not such covenant or condition has been satisfied; and

     (4) a statement as to whether or not, in the opinion of such Person, such condition or
covenant has been satisfied.

     Section 14.06. Rules by Trustee and Agents.

     The Trustee may make reasonable rules for action by or at a meeting of Holders. The Registrar
or Paying Agent may make reasonable rules and set reasonable requirements for its functions.

     Section 14.07. No Personal Liability of Directors, Officers, Employees and Stockholders.

     No past, present or future director, officer, employee, incorporator or stockholder of the
Issuer or any Guarantor, as such, will have any liability for any obligations of the Issuer or the
Guarantors under the Notes, this Indenture, the Note Guarantees, the Security Documents or for any
claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of
Notes by accepting a Note waives and releases all such liability. The waiver and release are part
of the consideration for issuance of the Notes. The waiver may not be effective to waive
liabilities under the federal securities laws.

     Section 14.08. Governing Law.

     THIS INDENTURE, THE NOTE, AND THE NOTE GUARANTEES AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAWS OF

-106-

 

THE STATE OF NEW YORK, WITHOUT REGARD TO ITS CONFLICTS OF LAW PRINCIPLES INSOFAR AS SUCH
PRINCIPLES WOULD DEFER TO THE SUBSTANTIVE LAWS OF SOME OTHER JURISDICTION.

     Section 14.09. No Adverse Interpretation of Other Agreements.

     This Indenture may not be used to interpret any other indenture, loan or debt agreement of the
Issuer, the Company or its Subsidiaries or of any other Person. Any such indenture, loan or debt
agreement may not be used to interpret this Indenture.

     Section 14.10. Successors.

     All agreements of the Issuer in this Indenture and the Notes will bind its successors
(including the Company following the Assumption). All agreements of the Trustee in this Indenture
will bind its successors. All agreements of each Guarantor in this Indenture will bind its
successors, except as otherwise provided in Section 10.05.

     Section 14.11. Severability.

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

     Section 14.12. Counterpart Originals.

     The parties may sign any number of copies of this Indenture. Each signed copy will be an
original, but all of them together represent the same agreement.

     Section 14.13. Table of Contents, Headings, etc.

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

     Section 14.14. Jurisdiction; Consent to Service of Process.

     (a) Each party hereto irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of any U.S. Federal or New York State court sitting in the Borough of
Manhattan, New York, New York in any action or proceeding arising out of or relating to this
Indenture, or for recognition or enforcement of any judgment, and each of the parties hereto hereby
irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding
may be heard and determined in such New York State or, to the extent permitted by law, in such
Federal court. Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Indenture shall affect any right that the
Issuer, the Trustee or any Holder of Notes may otherwise have to bring any action or proceeding
relating to this Indenture against any party hereto or its properties in the courts of any
jurisdiction.

     (b) Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection which it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this Indenture in any
court referred to in

-107-

 

paragraph (a) of this Section. Each of the parties hereto hereby irrevocably waives, to the
fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such
action or proceeding in any such court.

     Section 14.15. Amendment and Restatement.

     The Original Indenture is hereby consolidated, amended and restated in its entirety by this
Indenture, and is hereby deemed merged herein, superseded hereby, and enforceable only in
accordance with the terms of this Indenture, and every holder of Notes heretofore or hereafter
authenticated and delivered shall be bound hereby. The Company hereby confirms that it has assumed
by operation of law all obligations of the Escrow Issuer as the “Issuer” under the Original
Indenture, the Notes, the Registration Rights Agreement, and the other Note Documents and does
expressly hereby agrees to unconditionally assume and perform all such obligations under this
Indenture, the Notes and the Registration Rights Agreement, and the other Note Documents in
accordance with the terms hereof and thereof from and after the effectiveness of this Indenture.
It is intended that this Indenture is not a novation, or a release, discharge, payment or other
satisfaction of any Note Obligations in respect of the Original Indenture.

     The Trustee, Issuer and each of the Guarantors hereby acknowledges and agrees that (i) the
Security Documents, Notes, Note Guarantees, and all other Note Documents, agreements, mortgages,
deeds of trust, security agreements, guarantees, Uniform Commercial Code financing statements and
other agreements, documents and instruments evidencing or otherwise relating to the Original
Indenture shall remain in full force and effect, without waiver or modification, notwithstanding
the execution, delivery and performance of this Indenture; (ii) reaffirms each of its agreements
and obligations owing under each of the Security Documents, Notes, Note Guarantees, and all other
Note Documents, agreements, mortgages, deeds of trust, security agreements, guarantees, Uniform
Commercial Code financing statements and other agreements, documents and instruments evidencing or
otherwise relating to the Original Indenture; and (iii) all reference to the “Indenture” in any
Security Document, Note, Note Guarantee, and any other Note Document or agreement, mortgage, deed
of trust, security agreement, guarantee, document or instrument evidencing or otherwise relating to
the Original is hereby deemed to be a reference to this Indenture. Except as expressly amended
hereby, the Security Documents, the Notes and the Registration Rights Agreement, and all other Note
Documents are in all respects ratified and confirmed and all the terms, conditions and provisions
thereof shall remain in full force and effect.

[Signatures on following page]

-108-

 

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

	 	 	 	 	 
	 	ABITIBIBOWATER INC., as the Issuer

 	 
	 	By:  	/s/ William G. Harvey
 	 
	 	 	Name:  	William G. Harvey 	 
	 	 	Title:  	Senior Vice President,
Chief Financial Officer, and Treasurer 	 
	 
	 	ABIBOW US INC., as a Guarantor

 	 
	 	By:  	/s/ William G. Harvey
 	 
	 	 	Name:  	William G. Harvey 	 
	 	 	Title:  	Senior Vice President and Treasurer 	 
	 
	 	BOWATER NEWSPRINT SOUTH LLC, as a Guarantor

 	 
	 	By:  	/s/ William G. Harvey
 	 
	 	 	Name:  	William G. Harvey 	 
	 	 	Title:  	Manager 	 
	 
	 	BOWATER NUWAY MID-STATES INC., as a Guarantor

 	 
	 	By:  	/s/ William G. Harvey
 	 
	 	 	Name:  	William G. Harvey 	 
	 	 	Title:  	President 	 
	 
	 	LAKE SUPERIOR FOREST PRODUCTS INC., as a Guarantor

 	 
	 	By:  	/s/ William G. Harvey
 	 
	 	 	Name:  	William G. Harvey 	 
	 	 	Title:  	Vice President and
Chief Financial Officer 	 
	 

[INDENTURE]

S-1

 

	 	 	 	 	 
	 	DONOHUE CORP., as a Guarantor

 	 
	 	By:  	/s/ William G. Harvey
 	 
	 	 	Name:  	William G. Harvey 	 
	 	 	Title:  	Vice President and
Chief Financial Officer 	 
	 
	 	ABIBOW RECYCLING LLC, as a Guarantor

 	 
	 	By:  	AbitibiBowater Inc., its Sole Member
 	 
	 	 	 
	 	By:  	  /s/ William G. Harvey
 	 
	 	 	Name:  	William G. Harvey 	 
	 	 	Title:  	Senior Vice President,
Chief Financial Officer, and Treasurer 	 
	 
	 	ABITIBI CONSOLIDATED SALES LLC, as a Guarantor

 	 
	 	By:  	AbitibiBowater Inc., its Sole Member
 	 
	 	 	 
	 	By:  	  /s/ William G. Harvey
 	 
	 	 	Name:  	William G. Harvey 	 
	 	 	Title:  	Senior Vice President,
Chief Financial Officer, and Treasurer 	 
	 

[INDENTURE]

S-2

 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
and Collateral Agent

 	 
	 	By:  	/s/ Stefan Victory
 	 
	 	 	Name:  	Stefan Victory 	 
	 	 	Title:  	Vice President 	 
	 

[INDENTURE]

S-3

 

EXHIBIT A-1

FORM OF NOTE

[Face of Note]

     [Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture]

     [Insert the Private Placement Legend, if applicable pursuant to the provisions of the
Indenture]

     [Insert the Regulation S Temporary Global Note Legend, if applicable pursuant to the
provisions of the Indenture]

A-1

 

CUSIP: [          ]

ISIN: [            ]

$[______________]

10.25% Senior Secured Note due 2018

      

			
	No. ___
	 	[$______________]

     ABI ESCROW CORPORATION, a Delaware corporation (or, if the Assumption occurs, ABITIBIBOWATER
INC., a Delaware corporation), promises to pay to Cede & Co., or registered assigns, the principal
sum set forth on the Schedule of Increases or Decreases in Global Note attached hereto on October
15, 2018.

     Interest Payment Dates: April 15 and October 15

     Record Dates: April 1 and October 1

     Additional provisions of this Note are set forth on the other side of this Note.

A-2

 

     IN WITNESS WHEREOF, the parties have caused this instrument to be duly executed.

	 	 	 	 	 
	 	ABI ESCROW CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated: [                    ]

A-3

 

     This is one of the Notes referred to in the within-mentioned Indenture:

	 	 	 	 	 
	 	Wells Fargo Bank, National Association, as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

A-4

 

	 	 	 	 	 

[Back of Note]

10.25% Senior Secured Note Due 2018

     Capitalized terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

     1. ABI ESCROW CORPORATION, a Delaware corporation (or, if the Assumption occurs,
ABITIBIBOWATER INC., a Delaware corporation, as the surviving entity) (the “Issuer”), promises to
pay interest on the principal amount of this Note at 10.25% per annum from October 4, 2010 until
maturity and shall pay the Special Interest, if any, payable pursuant to the Registration Rights
Agreement referred to below. The Issuer will pay interest and Special Interest, if any,
semi-annually in arrears on April 15 and October 15 of each year, or if any such day is not a
Business Day, on the next succeeding Business Day (each, an “Interest Payment Date”). Interest on
the Notes will accrue from the most recent date to which interest has been paid or, if no interest
has been paid, from the Issue Date; provided that the first Interest Payment Date shall be
April 15, 2011. The Issuer will pay interest (including post-petition interest in any proceeding
under any Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at
a rate that is 1% per annum in excess of the rate then in effect to the extent lawful; it will pay
interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest and Special Interest, if any (without regard to any applicable grace
periods), from time to time on demand at the same rate to the extent lawful. Interest will be
computed on the basis of a 360-day year comprised of twelve 30-day months.

     2. METHOD OF PAYMENT. The Issuer will pay interest on the Notes (except defaulted interest)
and Special Interest, if any, to the Persons who are registered Holders of Notes at the close of
business on the April 1 and October 1 (whether or not a Business Day), as the case may be, next
preceding the Interest Payment Date, even if such Notes are canceled after such Record Date and on
or before such Interest Payment Date, except as provided in Section 2.12 of the Indenture with
respect to defaulted interest. The Notes will be payable as to principal, premium and Special
Interest, if any, and interest at the office or agency of the Issuer of the Issuer maintained for
such purpose, or, at the option of the Issuer, payment of interest and Special Interest, if any,
may be made by check mailed to the Holders at their addresses set forth in the register of Holders,
provided that payment by wire transfer of immediately available funds will be required with respect
to principal of and interest, premium and Special Interest, if any, on all Global Notes and all
other Notes the Holders of which shall have provided wire transfer instructions to the Issuer or
the Paying Agent. Such payment shall be in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private debts.

     3. TRUSTEE; PAYING AGENT AND REGISTRAR. Wells Fargo Bank, National Association, the Trustee
under the Indenture, will act as Paying Agent and Registrar. The Issuer may change any Paying
Agent or Registrar without notice to any Holder. None of the Company or any of its Affiliates may
act in any such capacity.

     4. INDENTURE AND SECURITY DOCUMENTS. The Escrow Issuer issued the Notes under an Indenture,
dated as of October 4, 2010 (the “Indenture”), among ABI Escrow Corporation and the Trustee. This
Note is one of a duly authorized issue of Notes of the Issuer. The terms of the Notes include
those stated in the Indenture. The Notes are subject to all such terms, and Holders are referred
to the Indenture for a statement of such terms. To the extent any provision of this Note conflicts
with the express provisions of the Indenture, the provisions of the Indenture shall govern and be
controlling. Following the Release Date, the Notes are secured obligations of the Issuer. The
Notes are secured by a pledge of the Collateral pursuant to the Security Documents referred to in
the Indenture. The Indenture does not limit the aggregate principal amount of Notes that may be
issued thereunder.

A-5

 

     5. OPTIONAL REDEMPTION.

     (a) The Notes are subject to redemption, at the option of the Issuer, in whole or in part, at
any time on or after October 15, 2014 upon not less than 30 nor more than 60 days’ notice at the
following Redemption Prices (expressed as percentages of the principal amount to be redeemed) set
forth below, plus accrued and unpaid interest, if any, to, but not including, the redemption date
(subject to the right of Holders of record on the relevant Record Date to receive interest due on
an Interest Payment Date that is on or prior to the redemption date), if redeemed during the
12-month period beginning on October 15 of the years indicated below:

	 	 	 	 	 
	 	 	Redemption	 
	Year	 	Price	 
	2014
	 	 	105.125	%
	2015
	 	 	102.563	%
	2016 and thereafter
	 	 	100.000	%

     (b) Prior to October 15, 2013, the Issuer may redeem during each 12-month period commencing
with the Issue Date up to 10% of the aggregate principal amount of the Notes issued under the
Indenture, including any Additional Notes (or any Exchange Notes therefor) at its option, from time
to time, upon not less than 30 nor more than 60 days’ prior notice mailed by first-class mail to
each Holder’s registered address, at a redemption price equal to 103% of the principal amount of
the Notes redeemed, plus accrued and unpaid interest, if any, to the redemption date (subject to
the right of Holders of record on the relevant Record Date to receive interest due on the relevant
Interest Payment Date that is on or prior to the redemption date).

     (c) In addition, at any time (a “Make-Whole Redemption Date”) prior to October 15, 2014, the
Issuer may redeem the Notes, in whole or in part, at a Redemption Price equal to the principal
amount of the Notes plus the Applicable Premium plus accrued and unpaid interest, if any, to but
not including the date of redemption (subject to the right of Holders of record on the relevant
Record Date to receive interest due on the relevant Interest Payment Date that is on or prior to
the redemption date).

     (d) In addition to the optional redemption provisions in clauses (a) through (c) above, prior
to October 15, 2013, the Issuer may, from time to time, with the net proceeds of one or more
Qualified Equity Offerings, redeem up to an aggregate of 35% of the aggregate principal amount of
the outstanding Notes (including any Additional Notes but excluding any Exchange Notes), at a
Redemption Price equal to 110.250% of the principal amount thereof, plus accrued and unpaid
interest thereon, if any, to, but not including, the date of redemption; provided that at least 65%
of the principal amount of Notes (including any Additional Notes) that have been issued under the
Indenture remains outstanding immediately after the occurrence of any such redemption (excluding
Notes held by the Issuer or its Subsidiaries) and that any such redemption occurs within 90 days
following the closing of any such Qualified Equity Offering.

     (e) Any notice of any redemption may be given prior to the redemption of any Notes, and any
such redemption or notice may, at the Issuer’s discretion, be subject to one or more conditions
precedent, including, but not limited to, completion of a Qualified Equity Offering or other
corporate transaction.

     6. SPECIAL MANDATORY REDEMPTION.

     (a) If the Release Date has not occurred on or before the Escrow End Date or if the Issuer
shall at any time determine that it is unlikely to be able to comply with the requirements set
forth in the Escrow Agreement for obtaining a release of the Escrow Property (the first such date
to occur, the “Trigger

A-6

 

Date”), then the Issuer shall redeem the Notes (the “Special Mandatory
Redemption”) no later than January 4, 2011 in cash at a price equal to 101% of the principal amount
of Notes, together with accrued and unpaid interest from the date of the Indenture up to but not
including the date of the Special Mandatory Redemption (the “Special Mandatory Redemption Price”)
(subject to the rights of Holders of record on the relevant Record Date to receive interest payable
on the related Interest Payment Date).

     (b) In the event that the Issuer or any Restricted Subsidiary receives any Excluded Proceeds
from an Asset Sale of Specified Assets prior to the date that is six calendar months following the
Release Date, the Issuer shall, within 30 days following the receipt of such Excluded Proceeds,
apply an amount equal to the lesser of (x) 100% of such Excluded Proceeds and (y) an amount that,
when aggregated with the amount of Excluded Proceeds previously applied pursuant to this Section
6(b), would equal $100.0 million, to redeem the maximum amount of Notes that can be redeemed with
such Excluded Proceeds at a redemption price equal to 105% of the principal amount of the Notes so
redeemed plus accrued and unpaid interest, if any, to but not including the redemption date
(subject to the right of Holders of record on the relevant Record Date to receive interest due on
the relevant Interest Payment Date that is on or prior to the redemption date). Notwithstanding
the foregoing, for purposes of the Indenture, any Excluded Proceeds received by the Issuer or any
Restricted Subsidiary following September 20, 2010 and prior to the Release Date shall be deemed to
have been received by the Issuer or such Restricted Subsidiary on the Release Date.

     7. OFFERS TO REPURCHASE.

     (a) Upon the occurrence of a Change of Control, each Holder shall have the right, subject to
certain conditions specified in the Indenture, to cause the Issuer to repurchase all or any part of
such Holder’s Notes at a purchase price in cash equal to 101% of the principal amount thereof, plus
accrued and unpaid interest, if any, to the date of repurchase (subject to the right of the Holders
of record on the relevant Record Date to receive interest due on the relevant Interest Payment
Date), as provided in, and subject to the terms of, the Indenture.

     (b) In accordance with Section 4.10 of the Indenture, the Issuer will be required to offer to
purchase Notes upon the occurrence of certain events.

     8. DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in fully registered form only, without
coupons, in denominations of $2,000 and integral multiples of $1,000 in excess thereof. A Holder
shall register the transfer or exchange of Notes in accordance with the Indenture. The Registrar
may require a holder, among other things, to furnish appropriate endorsements and transfer
documents and to pay certain transfer taxes or similar governmental charges payable in connection
therewith as permitted by the Indenture. The Registrar need not register the transfer or exchange
of any Notes during a period beginning 15 days before the mailing of a redemption notice for any
Notes or portions thereof selected for redemption.

     9. PERSONS DEEMED OWNERS. The registered Holder of a Note may be treated as its owner for all
purposes.

     10. AMENDMENT, SUPPLEMENT AND WAIVER. The Indenture, the Guarantees or the Notes may be
amended or supplemented as provided in Article 9 of the Indenture and Events of Default may be
waived as provided in Article 6 of the Indenture.

     11. DEFAULTS AND REMEDIES. If an Event of Default occurs (other than an Event of Default
relating to certain events of bankruptcy, insolvency or reorganization of the Issuer) and is
continuing, the Trustee or the Holders of at least 25% in principal amount of the outstanding
Notes, in each

A-7

 

case, by notice to the Issuer, may declare the principal of, premium, if any, and
accrued but unpaid interest on all the Notes to be due and payable. If an Event of Default
relating to certain events of bankruptcy, insolvency or reorganization of the Issuer or certain
Restricted Subsidiaries occurs, the principal of, premium, if any, and interest on all the Notes
shall become immediately due and payable without any declaration or other act on the part of the
Trustee or any Holders. Under certain circumstances, the Holders of a majority in principal amount
of the outstanding Notes may rescind any such acceleration with respect to the Notes and its
consequences.

     14. AUTHENTICATION. This Note shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose until authenticated by the manual signature of the Trustee or
an authenticating agent.

     15. ADDITIONAL RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND RESTRICTED DEFINITIVE NOTES.
In addition to the rights provided to Holders of Notes under the Indenture, Holders of Restricted
Global Notes and Restricted Definitive Notes shall have all the rights set forth in the
Registration Rights Agreement, including the right to receive Special Interest (as defined in the
Registration Rights Agreement).

     16. GOVERNING LAW. THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THE
INDENTURE, THE NOTES AND THE GUARANTEES.

     17. CUSIP AND ISIN NUMBERS. Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Issuer has caused CUSIP and ISIN numbers to be
printed on the Notes and the Trustee may use CUSIP and ISIN numbers in notices of redemption as a
convenience to Holders. No representation is made as to the accuracy of such numbers either as
printed on the Notes or as contained in any notice of redemption and reliance may be placed only on
the other identification numbers placed thereon.

     18. REFERENCE TO INDENTURE AND OTHER RELATED DOCUMENTS. Reference is hereby made to the
Indenture, the Security Agreement, the Intercreditor Agreement, the Escrow Agreement and other Note
Documents (copies of which are on file at the Corporate Trust Office of the Trustee) and all
indentures and agreements supplemental thereto for a description of the rights thereunder of the
Holders of the Notes, the nature and extent of the security therefor, the rights, duties,
protections and immunities of the Trustee and the rights and obligations of the Issuer and the Note
Guarantors thereunder, to all the provisions of which the Holder, by acceptance hereof, assents and
agrees.

     The Issuer will furnish to any Holder upon written request and without charge a copy of the
Indenture and/or the Registration Rights Agreement. Requests may be made to the Issuer at the
following address:

AbitibiBowater Inc.

1155 Metcalfe Street, Suite 800

Montreal, Québec Canada H3B 5H2

Facsimile No.: (514) 394-3644

Attention: Chief Financial Officer

A-8

 

\

ASSIGNMENT FORM

     To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to:

 

(Insert assignee’s legal name)

 

(Insert assignee’s Soc. Sec. or tax I.D. no.)

 

 

 

 

(Print or type assignee’s name, address and zip code)

and irrevocably appoint
 

to transfer this Note on the books of the Issuer. The agent may substitute another to act for him.

Date: _____________________

	 	 	 	 	 
	 	 	 
	 	Your Signature:  	
 	 
	 	 	(Sign exactly as your name appears on 	 
	 	 	the face of this Note) 	 
	 

Signature Guarantee*: __________________________________

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

A-9

 

OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Note purchased by the Issuer pursuant to Section 4.10 or
4.15 of the Indenture, check the appropriate box below:

o Section 4.10                 o Section 4.15

     If you want to elect to have only part of this Note purchased by the Issuer pursuant to
Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have purchased:

$_______________

Date: _____________________

	 	 	 	 	 
	 	 	 
	 	Your Signature:  	
 	 
	 	 	(Sign exactly as your name appears on 	 
	 	 	the face of this Note) 	 
	 

Tax Identification No.:_____________________

Signature Guarantee*: __________________________________

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

A-10

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE*

     The initial outstanding principal amount of this Global Note is $__________. The following
exchanges of a part of this Global Note for an interest in another Global Note or for a Definitive
Note, or exchanges of a part of another Global or Definitive Note for an interest in this Global
Note, have been made:

	 	 	 	 	 	 	 	 	 
	 	 	Amount of decrease	 	Amount of increase	 	Principal Amount of	 	Signature of
	 	 	in Principal	 	in Principal	 	this Global Note	 	authorized officer
	Date of	 	Amount of	 	Amount of this	 	following such	 	of Trustee or
	Exchange	 	this Global Note	 	Global Note	 	decrease or increase	 	Custodian
	 

	 	 
	 	 
	 	 
	 	 

 

			
	*	 	This schedule should be included only if the Note is issued in global form.

A-11

 

EXHIBIT B

FORM OF CERTIFICATE OF TRANSFER

AbitibiBowater Inc.

1155 Metcalfe Street, Suite 800

Montreal, Québec Canada H3B 5H2

Attention: Investor Relations

Wells Fargo Bank, National Association

Corporate Trust Services

7000 Central Parkway, Suite 550

Atlanta, GA 30328

Re: 10.25% Senior Secured Notes due 2018

     Reference is hereby made to the Indenture, dated as of October 4, 2010 (the “Indenture”),
among ABI Escrow Company, as issuer (the “Issuer”), the Guarantors party thereto and Wells Fargo
Bank, National Association, as trustee. Capitalized terms used but not defined herein shall have
the meanings given to them in the Indenture.

     __________________________ (the “Transferor”) owns and proposes to transfer the Note[s] or
interest in such Note[s] specified in Annex A hereto, in the principal amount of $______________ in
such Note[s] or interests (the “Transfer”), to ________________________ (the “Transferee”), as
further specified in Annex A hereto. In connection with the transfer, the Transferor hereby
certifies that:

[CHECK ALL THAT APPLY]

     1. o Check if Transferee will take delivery of a beneficial interest in the 144A Global Note
or a Restricted Definitive Note pursuant to Rule 144A. The Transfer is being effected pursuant
to and in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities
Act”), and, accordingly, the Transferor hereby further certifies that the beneficial interest or
Definitive Note is being transferred to a Person that the Transferor reasonably believes is
purchasing the beneficial interest or Definitive Note for its own account, or for one or more
accounts with respect to which such Person exercises sole investment discretion, and such Person
and each such account is a “qualified institutional buyer” within the meaning of Rule 144A in a
transaction meeting the requirements of Rule 144A, and such Transfer is in compliance with any
applicable blue sky securities laws of any state of the United States. Upon consummation of the
proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the 144A Global Note and/or the Restricted Definitive Note and
in the Indenture and the Securities Act.

     2. o Check if Transferee will take delivery of a beneficial interest in the Regulation S
Global Note or a Restricted Definitive Note pursuant to Regulation S. The Transfer is being
effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and,
accordingly, the Transferor hereby further certifies that (i) the Transfer is not being made to a
Person in the United States and (x) at the time the buy order was originated, the Transferee was
outside the United States or such Transferor and any Person acting on its behalf reasonably
believed and believes that the Transferee was outside the United States or (y) the transaction was
executed in, on or through the facilities of a designated offshore securities market and neither
such Transferor nor any Person acting on its behalf knows

B-1

 

that the transaction was prearranged with
a buyer in the United States, (ii) no directed selling efforts have been made in contravention of
the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act and, (iii)
the transaction is not part of a plan or scheme to evade the registration requirements of the
Securities Act. Upon consummation of the proposed transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will be subject to the
restrictions on Transfer enumerated in the Private Placement Legend printed on the Regulation S
Global Note and/or the Restricted Definitive Note and in the Indenture and the Securities Act.

     3. o Check and complete if Transferee will take delivery of a beneficial interest in the IAI
Global Note or a Restricted Definitive Note pursuant to any provision of the Securities Act other
than Rule 144A or Regulation S. The Transfer is being effected in compliance with the transfer
restrictions applicable to beneficial interests in Restricted Global Notes and Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act and any applicable blue
sky securities laws of any state of the United States, and accordingly the Transferor hereby
further certifies that (check one):

     (a) o such Transfer is being effected pursuant to and in accordance with Rule 144 under
the Securities Act;

or

     (b) o such Transfer is being effected to the Issuer, Company or a subsidiary thereof;

or

     (c) o such Transfer is being effected pursuant to an effective registration statement
under the Securities Act and in compliance with the prospectus delivery requirements of the
Securities Act;

or

     (d) o such Transfer is being effected to an Institutional Accredited Investor and
pursuant to an exemption from the registration requirements of the Securities Act other than
Rule 144A, Rule 144, Rule 903 or Rule 904, and the Transferor hereby further certifies that
it has not engaged in any general solicitation within the meaning of Regulation D under the
Securities Act and the Transfer complies with the transfer restrictions applicable to
beneficial interests in a Restricted Global Note or Restricted Definitive Notes and the
requirements of the exemption claimed, which certification is supported by (1) a certificate
executed by the Transferee in the form of Exhibit D to the Indenture and (2) if such
Transfer is in respect of a principal amount of Notes at the time of transfer of less than
$250,000, an Opinion of Counsel provided by the Transferor or the Transferee (a copy of
which the Transferor has attached to this certification), to the effect that such Transfer
is in compliance with the Securities Act. Upon consummation of the proposed transfer in
accordance with the terms of the Indenture, the transferred beneficial interest or
Definitive Note will be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the IAI Global Note and/or the Restricted Definitive Notes and
in the Indenture and the Securities Act.

     4. o Check if Transferee will take delivery of a beneficial interest in an Unrestricted
Global Note or of an Unrestricted Definitive Note.

B-2

 

     (a) o Check if Transfer is pursuant to Rule 144. (i) The Transfer is being effected pursuant to
and in accordance with Rule 144 under the Securities Act and in compliance with the transfer
restrictions contained in the Indenture and any applicable blue sky securities laws of any state of
the United States and (ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the Securities Act. Upon
consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on
Restricted Definitive Notes and in the Indenture.

     (b) o Check if Transfer is Pursuant to Regulation S. (i) The Transfer is being effected pursuant
to and in accordance with Rule 903 or Rule 904 under the Securities Act and in compliance with the
transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any
state of the United States and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with the Securities Act.
Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on
Restricted Definitive Notes and in the Indenture.

     (c) o Check if Transfer is Pursuant to Other Exemption. (i) The Transfer is being effected
pursuant to and in compliance with an exemption from the registration requirements of the
Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance with the transfer
restrictions contained in the Indenture and any applicable blue sky securities laws of any State of
the United States and (ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the Securities Act. Upon
consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will not be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes or
Restricted Definitive Notes and in the Indenture.

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Issuer.

	 	 	 	 	 
	 	 	 	 
	 	[Insert Name of Transferor]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated: _____________________

B-3

 

ANNEX A TO CERTIFICATE OF TRANSFER

	 
	1.	 	The Transferor owns and proposes to transfer the following:

[CHECK ONE OF (a) OR (b)]

	 
	 	(a)	 	o a beneficial interest in the:

	 
	 	(i)	 	o 144A Global Note (CUSIP ________), or
	 
	 	(ii)	 	o Regulation S Global Note (CUSIP ______), or
	 
	 	(iii)	 	o IAI Global Note (CUSIP _________); or

	 
	 	(b)	 	o a Restricted Definitive Note.

	 
	2.	 	o After the Transfer the Transferee will hold:

[CHECK ONE]

	 
	 	(a)	 	o a beneficial interest in the:

	 
	 	(i)	 	o 144A Global Note (CUSIP ________), or
	 
	 	(ii)	 	o Regulation S Global Note (CUSIP ______), or
	 
	 	(iii)	 	o IAI Global Note (CUSIP _________); or
	 
	 	(iv)	 	o Unrestricted Global Note (CUSIP ________); or

	 
	 	(b)	 	o a Restricted Definitive Note; or
	 
	 	(c)	 	o an Unrestricted Definitive Note,

	 
	 	 	in accordance with the terms of the Indenture.

B-4

 

EXHIBIT C

FORM OF CERTIFICATE OF EXCHANGE

AbitibiBowater Inc.

1155 Metcalfe Street, Suite 800

Montreal, Québec Canada H3B 5H2

Attention: Investor Relations.

Wells Fargo Bank, National Association

Corporate Trust Services

7000 Central Parkway, Suite 550

Atlanta, GA 30328

Re: 10.25% Senior Secured Notes due 2018

(CUSIP _____)

     Reference is hereby made to the Indenture, dated as of October 4, 2010 (the “Indenture”),
among ABI Escrow Company, as issuer (the “Issuer”), the Guarantors party thereto and Wells Fargo
Bank, National Association, as trustee. Capitalized terms used but not defined herein shall have
the meanings given to them in the Indenture.

     _________________________ (the “Owner”) owns and proposes to exchange the Note[s] or interest
in such Note[s] specified herein, in the principal amount of $___________________ in such Note[s]
or interests (the “Exchange”). In connection with the Exchange, the Owner hereby certifies that:

     1. Exchange of Restricted Definitive Notes or Beneficial Interests in a Restricted Global
Note for Unrestricted Definitive Notes or Beneficial Interests in an Unrestricted Global Note

     (a) o Check if Exchange is from beneficial interest in a Restricted Global Note to beneficial
interest in an Unrestricted Global Note. In connection with the Exchange of the Owner’s beneficial
interest in a Restricted Global Note for a beneficial interest in an Unrestricted Global Note in an
equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired
for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to the Global Notes and pursuant to and in accordance
with the Securities Act of 1933, as amended (the “Securities Act”), (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the beneficial interest in an Unrestricted
Global Note is being acquired in compliance with any applicable blue sky securities laws of any
state of the United States.

     (b) o Check if Exchange is from beneficial interest in a Restricted Global Note to Unrestricted
Definitive Note. In connection with the Exchange of the Owner’s beneficial interest in a Restricted
Global Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the Definitive Note
is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to the Restricted Global Notes and
pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained
in the Indenture and the Private Placement Legend are not required in order to maintain compliance
with the Securities Act and (iv) the Definitive Note is being acquired in compliance with any
applicable blue sky securities laws of any state of the United States.

C-1

 

     (c) o Check if Exchange is from Restricted Definitive Note to beneficial interest in an
Unrestricted Global Note. In connection with the Owner’s Exchange of a Restricted Definitive Note
for a beneficial interest in an Unrestricted Global Note, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions applicable to Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions
on transfer contained in the Indenture and the Private Placement Legend are not required in order
to maintain compliance with the Securities Act and (iv) the beneficial interest is being acquired
in compliance with any applicable blue sky securities laws of any state of the United States.

     (d) o Check if Exchange is from Restricted Definitive Note to Unrestricted Definitive Note. In
connection with the Owner’s Exchange of a Restricted Definitive Note for an Unrestricted Definitive
Note, the Owner hereby certifies (i) the Unrestricted Definitive Note is being acquired for the
Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in accordance
with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with the Securities Act
and (iv) the Unrestricted Definitive Note is being acquired in compliance with any applicable blue
sky securities laws of any state of the United States.

     2. Exchange of Restricted Definitive Notes or Beneficial Interests in Restricted Global
Notes for Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes

     (a) o Check if Exchange is from beneficial interest in a Restricted Global Note to Restricted
Definitive Note. In connection with the Exchange of the Owner’s beneficial interest in a Restricted
Global Note for a Restricted Definitive Note with an equal principal amount, the Owner hereby
certifies that the Restricted Definitive Note is being acquired for the Owner’s own account without
transfer. Upon consummation of the proposed Exchange in accordance with the terms of the Indenture,
the Restricted Definitive Note issued will continue to be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Definitive Note and in the
Indenture and the Securities Act.

     (b) o Check if Exchange is from Restricted Definitive Note to beneficial interest in a
Restricted Global Note. In connection with the Exchange of the Owner’s Restricted Definitive Note
for a beneficial interest in the [CHECK ONE] o 144A Global Note, o Regulation S Global Note, þ IAI
Global Note with an equal principal amount, the Owner hereby certifies (i) the beneficial interest
is being acquired for the Owner’s own account without transfer and (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to the Restricted Global Notes and
pursuant to and in accordance with the Securities Act, and in compliance with any applicable blue
sky securities laws of any state of the United States. Upon consummation of the proposed Exchange
in accordance with the terms of the Indenture, the beneficial interest issued will be subject to
the restrictions on transfer enumerated in the Private Placement Legend printed on the relevant
Restricted Global Note and in the Indenture and the Securities Act.

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Issuer.

C-2

 

	 	 	 	 	 
	 	 	 	 
	 	[Insert Name of Transferor]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated: _____________________

C-3

 

EXHIBIT D

FORM OF CERTIFICATE FROM

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

AbitibiBowater Inc.

1155 Metcalfe Street, Suite 800

Montreal, Québec Canada H3B 5H2

Facsimile No.: [(___) __-____]

Attention: Investor Relations.

Wells Fargo Bank, National Association

Corporate Trust Services

7000 Central Parkway, Suite 550

Atlanta, GA 30328

Re: 10.25% Senior Secured Notes due 2018

     Reference is hereby made to the Indenture, dated as of October 4, 2010 (the “Indenture”),
among ABI Escrow Company, as issuer (the “Issuer”), the Guarantors party thereto and Wells Fargo
Bank, National Association, as trustee. Capitalized terms used but not defined herein shall have
the meanings given to them in the Indenture.

     In connection with our proposed purchase of $______________ aggregate principal amount of:

     (a) o
a beneficial interest in a Global Note, or

     (b) o
a Definitive Note,

     we confirm that:

     1. We understand that any subsequent transfer of the Notes or any interest therein is subject
to certain restrictions and conditions set forth in the Indenture and the undersigned agrees to be
bound by, and not to resell, pledge or otherwise transfer the Notes or any interest therein except
in compliance with, such restrictions and conditions and the Securities Act of 1933, as amended
(the “Securities Act”).

     2. We understand that the offer and sale of the Notes have not been registered under the
Securities Act, and that the Notes and any interest therein may not be offered or sold except as
permitted in the following sentence. We agree, on our own behalf and on behalf of any accounts for
which we are acting as hereinafter stated, that if we should sell the Notes or any interest
therein, we will do so only (A) to the Company or any subsidiary thereof, (B) in accordance with
Rule 144A under the Securities Act to a “qualified institutional buyer” (as defined therein), (C)
to an institutional “accredited investor” (as defined below) that, prior to such transfer,
furnishes (or has furnished on its behalf by a U.S. broker-dealer) to you and to the Issuer a
signed letter substantially in the form of this letter and, if such transfer is in respect of a
principal amount of Notes, at the time of transfer of less than $250,000, an Opinion of Counsel in
form reasonably acceptable to the Issuer to the effect that such transfer is in compliance with the
Securities Act, (D) outside the United States in accordance with Rule 904 of Regulation S under the
Securities Act, (E) pursuant to the provisions of Rule 144(k) under the Securities Act or (F)
pursuant to an effective registration statement under the Securities Act, and we further agree to
provide to any Person purchasing the Definitive Note or beneficial interest in a Global Note from
us in a transaction meeting the requirements of

D-1

 

clauses (A) through (E) of this paragraph a notice advising such purchaser
that resales thereof are restricted as stated herein.

     3. We understand that, on any proposed resale of the Notes or beneficial interest therein, we
will be required to furnish to you and the Issuer such certifications, legal opinions and other
information as you and the Issuer may reasonably require to confirm that the proposed sale complies
with the foregoing restrictions. We further understand that the Notes purchased by us will bear a
legend to the foregoing effect.

     4. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) of Regulation D under the Securities Act) and have such knowledge and experience in financial
and business matters as to be capable of evaluating the merits and risks of our investment in the
Notes, and we and any accounts for which we are acting are each able to bear the economic risk of
our or its investment.

     5. We are acquiring the Notes or beneficial interest therein purchased by us for our own
account or for one or more accounts (each of which is an institutional “accredited investor”) as to
each of which we exercise sole investment discretion.

     You and the Issuer are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby.

					
	 
	 	[Insert Name of Accredited Investor]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated: ________________

D-2

 

EXHIBIT E

FORM OF NOTATION OF GUARANTEE

     For value received, each Guarantor (which term includes any successor Person under the
Indenture) has, jointly and severally, unconditionally guaranteed, to the extent set forth in the
Indenture and subject to the provisions in the Indenture dated as of October 4, 2010 (the
“Indenture”) among AbitibiBowater Inc. (as successor to ABI Escrow Company) (the “Issuer”), the
Guarantors party thereto and Wells Fargo Bank, National Association, as trustee (the “Trustee”),
(a) the due and punctual payment of the principal of, premium and Special Interest, if any, and
interest on, the Notes, whether at maturity, by acceleration, redemption or otherwise, the due and
punctual payment of interest on overdue principal of and interest on the Notes, if any, if lawful,
and the due and punctual performance of all other obligations of the Issuer to the Holders or the
Trustee or Collateral Agent all in accordance with the terms of the Indenture and other Note
Documents and (b) in case of any extension of time of payment or renewal of any Notes or any of
such other obligations, that the same will be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration
or otherwise. The obligations of the Guarantors to the Holders of Notes and to the Trustee and
Collateral Agent pursuant to the Note Guarantee, the Indenture and other Note Documents are
expressly set forth in Article 10 of the Indenture and reference is hereby made to the Indenture
for the precise terms of the Note Guarantee.

     Capitalized terms used but not defined herein have the meanings given to them in the
Indenture.

	 	 	 	 	 
	 	[NAME OF GUARANTOR(S)]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

E-1exv10w1

EXHIBIT 10.1

AMENDMENT NO. 1 TO CREDIT AGREEMENT

     AMENDMENT NO. 1 (this “Amendment”) dated as of April 28, 2011 to the ABL Credit Agreement
dated as of December 9, 2010 (the “Credit Agreement”) among AbitibiBowater Inc., a Delaware
corporation (“AbitibiBowater”), the Subsidiaries of AbitibiBowater party thereto (together with
AbitibiBowater, collectively, the “Borrowers”), the Lenders party thereto from time to time and
Citibank, N.A., as Administrative Agent (the “Administrative Agent”) and Collateral Agent.

     The parties hereto agree as follows:

     Section 1. Defined Terms; References. Unless otherwise
specifically defined herein, each term used herein that is defined in the Credit Agreement
has the meaning assigned to such term in the Credit Agreement. Each reference to
“hereof”, “hereunder”, “herein” and “hereby” and each other similar reference and each
reference to “this Agreement” and each other similar reference contained in the Credit
Agreement shall, as of the Amendment Effective Date (as defined below), refer to the
Credit Agreement as amended hereby.

     Section 2. Amendment to Section 10.19 of the Credit Agreement. Section 10.19 of the
Credit Agreement is amended by replacing “April 30, 2011” with “July 31, 2011”.

     Section 3. Amendment to Section 5.03(d) of the Credit Agreement. Section 5.03(d) of
the Credit Agreement is amended and restated to read in its entirety as follows:

     “(i) All amounts deposited or held in all of the U.S. Collection Accounts with respect to each
U.S. Loan Party and available for transfer (other than amounts which are payable to Subsidiaries or
Affiliates of AbitibiBowater that are not Loan Parties and which were sent or deposited to the
incorrect lockbox or deposit account by the account debtor) shall be transferred not less
frequently than once per Business Day (it being understood that any amounts deposited in a U.S.
Collection Account after such daily transfer has occurred shall be transferred on the following
Business Day), or, solely in the case of amounts held in the U.S. Collection Accounts set forth on
Schedule 5.03(d), not less frequently than weekly, into one or more accounts with the
Administrative Agent or a financial institution reasonably acceptable to the Administrative Agent
(each a “Core U.S. Concentration Account” and collectively, the “Core U.S. Concentration Accounts”)
unless such amounts are otherwise required or permitted to be applied pursuant to Section 5.02;
provided, however, that so long as no Dominion Period then exists, the Borrowers shall be permitted
to retain in each U.S. Collection Account funds in an aggregate amount not to exceed at any time
the sum of (x) the amount required (as reasonably determined by AbitibiBowater) to satisfy the
payment of outstanding obligations owing in respect of checks or similar obligations issued by any
U.S. Loan Party with respect to such U.S

 

 

Collection Account plus (y) $100,000 (provided that the aggregate amount of funds retained in all
U.S. Collection Accounts pursuant to this clause (y) shall not exceed $500,000 at any time) and
(ii) all amounts deposited or held in all of the Canadian Collection Accounts with respect to each
Canadian Loan Party and available for transfer shall be transferred not less frequently than once
per Business Day (it being understood that any amounts deposited in a Canadian Collection Account
after such daily transfer has occurred shall be transferred on the following Business Day), or,
solely in the case of amounts held in the Canadian Collection Accounts set forth on Schedule
5.03(d), not less frequently than weekly, into one or more accounts with the Administrative Agent
or a financial institution reasonably acceptable to the Administrative Agent (each a “Core Canadian
Concentration Account” and collectively, the “Core Canadian Concentration Accounts”) unless such
amounts are otherwise required or permitted to be applied pursuant to Section 5.02; provided,
however, that so long as no Dominion Period then exists, the Borrowers shall be permitted to retain
in each Canadian Collection Account funds in an aggregate amount not to exceed at any time the sum
of (x) the amount required (as reasonably determined by AbitibiBowater) to satisfy the payment of
outstanding obligations owing in respect of checks or similar obligations issued by any Canadian
Loan Party with respect to such Canadian Collection Account plus (y) $100,000 (provided that the
aggregate amount of funds retained in all Canadian Collection Accounts pursuant to this clause (y)
shall not exceed $700,000 at any time). Except as, and to the extent, permitted by this Section
5.03(d), and Section 10 each Collection Account shall have a zero balance immediately following the
transfer of funds pursuant to the immediately preceding sentences. So long as no Dominion Period
then exists, the Borrowers and the other Loan Parties shall be permitted to transfer cash from the
Core Concentration Accounts to other Deposit Accounts to be used for working capital and general
corporate purposes all subject to the requirements of this Agreement (including this Section
5.03(d)). If a Dominion Period exists, all collected amounts held in the Core Concentration
Accounts shall be applied as provided in Section 5.03(e) or (f), as applicable.

     Section 4. Representations of Borrower. Each of the Borrowers
represents and warrants that (a) the representations and warranties of the Borrowers set
forth in Section 8 of the Credit Agreement and in the Loan Documents will be true and
correct in all material respects on and as of the Amendment Effective Date with the same
effect as though such representations and warranties had been made on and as of the
Amendment Effective Date (it being understood and agreed that (x) any representation or
warranty which by its terms is made as of a specified date shall be required to be true
and correct in all material respects only as of such specified date and (y) any
representation or warranty that is qualified as to “materiality”, “Material Adverse
Effect” or similar language shall be true and correct in all respects on such date) and
(b) no Default or Event of Default will have occurred and be continuing on the Amendment
Effective Date.

     Section 5. Counterparts. This Amendment may be executed in any
number of counterparts and by the different parties hereto on separate counterparts, each
of which when so executed and delivered shall be an original, but all of which shall
together constitute one and the same instrument. Delivery

2

 

of an executed counterpart hereof by facsimile or electronic transmission shall be as
effective as delivery of an original executed counterpart hereof.

     Section 6. Effectiveness. This Amendment shall become effective
on the date when the following conditions are met (the “Amendment Effective Date”):

     (a) the Administrative Agent shall have received from each of the Borrowers and the
Lenders party hereto, who constitute the Required Lenders, (x) a counterpart of this
Amendment signed on behalf of such party or (y) evidence satisfactory to the
Administrative Agent (which may include a facsimile or other electronic transmission) that
such party has signed a counterpart of this Amendment; and

     (b) the Borrowers shall have paid all expenses of the Agents payable pursuant to
Section 13.01(a) of the Credit Agreement to the extent invoiced on or prior the Amendment
Effective Date (including, without limitation, the reasonable fees and disbursements of
counsel to the Agents).

     Section 7. Reference To and Effect Upon the Credit Agreement.

     (a) Except as expressly set forth herein, all terms, conditions, covenants,
representations and warranties contained in the Credit Agreement and the other Loan
Documents and all rights of the Agents, the Issuing Lenders, the Swingline Lenders and the
Lenders and all obligations of the Loan Parties, shall remain in full force and effect.
The Borrowers hereby confirm that the Credit Agreement and the other Loan Documents are in
full force and effect.

     (b) This Amendment shall constitute a Loan Document for all purposes of the Credit
Agreement and all the other Loan Documents.

     Section 8. Governing Law. This Amendment shall be governed by and construed in
accordance with the laws of the State of New York.

[Signature Pages Follow]

3

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of
the date first above written.

	 	 	 	 	 
	 	U.S. BORROWERS:

ABITIBIBOWATER INC.

 	 
	 	By:  	/s/ Jacques P. Vachon
 	 
	 	 	Name:  	Jacques P. Vachon 	 
	 	 	Title:  	Senior Vice President and

Chief Legal Officer 	 
	 
	 	ABIBOW US INC., as successor to
	 
	 	 	Bowater Incorporated, as a U.S. 

Borrower

 	 
	 	By:  	/s/ Jacques P. Vachon
 	 
	 	 	Name:  	Jacques P. Vachon 	 
	 	 	Title:  	Vice President and Secretary 	 
	 
	 	ABIBOW RECYCLING LLC, as successor 	 
	 	 	to Abitibi-Consolidated Corp., as a U.S.

Borrower

 	 
	 	By:  	/s/ Jacques P. Vachon
 	 
	 	 	Name:  	Jacques P. Vachon 	 
	 	 	Title:  	Senior Vice President and

Chief Legal Officer 	 
	 
	 	CANADIAN BORROWER:

ABIBOW CANADA INC., as successor to 

	 
	 	 	
Abitibi-Consolidated Inc., as a 

Canadian Borrower

 	 
	 	By:  	/s/ Jacques P. Vachon
 	 
	 	 	Name:  	Jacques P. Vachon 	 
	 	 	Title:  	Vice President and Secretary 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	CITIBANK, N.A., as Administrative Agent and Lender

 	 
	 	By:  	/s/ Miles McManus
 	 
	 	 	Name:  	Miles McManus 	 
	 	 	Title:  	Vice President and Director 	 
	 
	 	Wells Fargo Capital Finance, LLC, as Lender

 	 
	 	By:  	/s/ Matt Harbour
 	 
	 	 	Name:  	Matt Harbour 	 
	 	 	Title:  	Vice President 	 
	 
	 	SIEMENS FINANCIAL SERVICES, INC., as Lender

 	 
	 	By:  	/s/ Anthony Casciano
 	 
	 	 	Name:  	Anthony Casciano 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	/s/ David Kantes
 	 
	 	 	Name:  	David Kantes 	 
	 	 	Title:  	SVP & CRO 	 
	 
	 	JPMORGAN CHASE BANK, N.A., as Lender

 	 
	 	By:  	/s/ Peter S. Predun
 	 
	 	 	Name:  	Peter S. Predun 	 
	 	 	Title:  	Executive Director 	 
	 

[Signature page to Amendment No. 1]

 

 

	 	 	 	 	 
	 	Export Development Canada, as Lender

 	 
	 	By:  	/s/ Matthew Devine
 	 
	 	 	Name:  	Matthew Devine 	 
	 	 	Title:  	Senior Asset Manager 	 
	 
	 	 	 
	 	By:  	/s/ Talal M. Kairouz
 	 
	 	 	Name:  	Talal M. Kairouz 	 
	 	 	Title:  	Asset Manager 	 
	 
	 	CITIBANK, N.A., CANADIAN 

BRANCH, as Lender

 	 
	 	By:  	/s/ Isabelle Cote
 	 
	 	 	Name:  	Isabelle Cote 	 
	 	 	Title:  	Authorized Officer 	 
	 
	 	CIT Bank, as Lender

 	 
	 	By:  	/s/ Benjamin Haslam
 	 
	 	 	Name:  	Benjamin Haslam 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	CIBC Inc., as Lender

 	 
	 	By:  	/s/ Dominic J. Sorresso
 	 
	 	 	Name:  	Dominic J. Sorresso 	 
	 	 	Title:  	Executive Director 	 
	 
	 	 	 
	 	By:  	/s/ Eoin Roche
 	 
	 	 	Name:  	Eoin Roche 	 
	 	 	Title:  	Executive Director

CIBC World Markets Corp.

Authorized Signatory 	 

6

 

	 	 	 	 	 

	 	 	 	 	 
	 	Canadian Imperial Bank of Commerce, as Lender

 	 
	 	By:  	/s/ Jens Paterson
 	 
	 	 	Name:  	Jens Paterson 	 
	 	 	Title:  	Executive Director 	 
	 
	 	 	 
	 	By:  	/s/ Peter Rawlins
 	 
	 	 	Name:  	Peter Rawlins 	 
	 	 	Title:  	Executive Director 	 
	 
	 	BARCLAYS BANK PLC, as Lender

 	 
	 	By:  	/s/ Michael J. Moyer
 	 
	 	 	Name:  	Michael J. Moyer 	 
	 	 	Title:  	Vice President 	 
	 
	 	THE BANK OF NOVA SCOTIA, as Lender

 	 
	 	By:  	/s/ David Angel
 	 
	 	 	Name:  	David Angel 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	/s/ David Loewen
 	 
	 	 	Name:  	David Loewen 	 
	 	 	Title:  	Director 	 
	 
	 	Bank of Montreal, as Lender

 	 
	 	By:  	/s/ Michael Scolaro
 	 
	 	 	Name:  	Michael Scolaro 	 
	 	 	Title:  	Managing Director and
 Group Head 	 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}]]