Document:

Exhibit 4.1

 

 

 

INDENTURE,

dated as of February 1, 2005,

among

EDGEN ACQUISITION CORPORATION

as Issuer,

 

 

THE GUARANTORS HEREAFTER PARTIES HERETO,

as Guarantors

 

 

and

 

 

The Bank of New York,

 

 

as Trustee and Collateral Agent

 

 

97/8% Senior Secured Notes due 2011

 

 

 

CROSS-REFERENCE TABLE

 

	
  TIA

  Section

  	
   

  	
  Indenture

  Section

  
	
  310(a)(1)

  	
   

  	
  7.10

  
	
  (a)(2)

  	
   

  	
  7.10

  
	
  (a)(3)

  	
   

  	
  N.A.

  
	
  (a)(4)

  	
   

  	
  N.A.

  
	
  (a)(5)

  	
   

  	
  7.10

  
	
  (b)

  	
   

  	
  7.03; 7.08;
  7.10

  
	
  (c)

  	
   

  	
  N.A.

  
	
  311(a)

  	
   

  	
  7.03; 7.11

  
	
  (b)

  	
   

  	
  7.03; 7.11

  
	
  (c)

  	
   

  	
  N.A.

  
	
  312(a)

  	
   

  	
  2.05

  
	
  (b)

  	
   

  	
  7.07; 11.03

  
	
  (c)

  	
   

  	
  11.03

  
	
  313(a)

  	
   

  	
  7.06

  
	
  (b)

  	
   

  	
  7.06

  
	
  (c)

  	
   

  	
  7.06

  
	
  (d)

  	
   

  	
  7.06

  
	
  314(a)

  	
   

  	
  4.06; 4.20

  
	
  (b)

  	
   

  	
  12.02

  
	
  (c)(1)

  	
   

  	
  11.04

  
	
  (c)(2)

  	
   

  	
  11.04

  
	
  (c)(3)

  	
   

  	
  N.A.

  
	
  (d)

  	
   

  	
  12.03

  
	
  (e)

  	
   

  	
  11.05

  
	
  (f)

  	
   

  	
  N.A.

  
	
  315(a)

  	
   

  	
  7.01(b)

  
	
  (b)

  	
   

  	
  7.05

  
	
  (c)

  	
   

  	
  7.01(a)

  
	
  (d)

  	
   

  	
  7.01(c)

  
	
  (e)

  	
   

  	
  6.11

  
	
  316(a)(last sentence)

  	
   

  	
  2.09

  
	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
  (a)(2)

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
  6.07

  
	
  (c)

  	
   

  	
  9.04

  
	
  317(a)(1)

  	
   

  	
  6.08

  
	
  (a)(2)

  	
   

  	
  6.09

  
	
  (b)

  	
   

  	
  2.04

  
	
  318(a)

  	
   

  	
  11.01

  
	
  (b)

  	
   

  	
  N.A.

  
	
  (c)

  	
   

  	
  11.01

  

 

N.A.
means Not Applicable

 

NOTE:    This
Cross-Reference Table shall not, for any purpose, be deemed to be a part of
this Indenture.

 

 

TABLE OF CONTENTS

 

	
  ARTICLE
  ONE

  	
  DEFINITIONS
  AND INCORPORATION BY REFERENCE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.02.

  	
  Incorporation
  by Reference of Trust Indenture Act

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.03.

  	
  Rules of
  Construction

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO

  	
  THE NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  Form and Dating

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.02.

  	
  Execution and Authentication;
  Additional Notes; Aggregate Principal Amount

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.03.

  	
  Registrar and
  Paying Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.04.

  	
  Obligations of
  Paying Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.05.

  	
  Holder Lists

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.06.

  	
  Transfer and
  Exchange

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.07.

  	
  Replacement
  Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.08.

  	
  Outstanding
  Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.09.

  	
  Treasury
  Notes; When Notes Are Disregarded

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.10.

  	
  Temporary
  Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.11.

  	
  Cancellation

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.12.

  	
  CUSIP Numbers

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.13.

  	
  Deposit of
  Moneys

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.14.

  	
  Book-Entry
  Provisions for Global Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.15.

  	
  Special
  Transfer Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.16.

  	
  Transfers of
  Global Notes and Physical Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE

  	
  REDEMPTION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Optional
  Redemption

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.02.

  	
  Selection of
  Notes to be Redeemed

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.03.

  	
  Notice of
  Redemption

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.04.

  	
  Effect of
  Notice of Redemption

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.05.

  	
  Deposit of
  Redemption Price

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.06.

  	
  Notes
  Redeemed in Part

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOUR

  	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  Payment of
  Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.02.

  	
  Maintenance of
  Office or Agency

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.03.

  	
  Corporate Existence

  	
   

  
				

 

i

 

	
  SECTION 4.04.

  	
  Payment of
  Taxes and Other Claims

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.05.

  	
  Maintenance
  of Insurance

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.06.

  	
  Compliance
  Certificate; Notice of Default

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.07.

  	
  Waiver of Stay,
  Extension or Usury Laws

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.08.

  	
  Limitation on
  Incurrence of Additional Indebtedness

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  4.09.

  	
  Limitation
  on Restricted Payments

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  4.10.

  	
  Repurchase
  upon Change of Control

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.11.

  	
  Limitation on
  Asset Sales

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  4.12.

  	
  Limitation
  on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  4.13.

  	
  Limitation
  on Issuances and Sales of Capital Stock of Subsidiaries

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.14.

  	
  Limitation on Liens

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  4.15.

  	
  Limitations
  on Transactions with Affiliates

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  4.16.

  	
  Additional
  Subsidiary Guarantees

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  4.17.

  	
  Impairment
  of Security Interest

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  4.18.

  	
  Real
  Estate Mortgages and Filings

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.19.

  	
  Conduct of Business

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.20.

  	
  Reports to Holders

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  4.21.

  	
  Landlord,
  Bailee and Consignee Waivers

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.22.

  	
  Payments for
  Consent

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.23.

  	
  Additional Interest

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIVE

  	
  SUCCESSOR CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  5.01.

  	
  Merger,
  Consolidation and Sale of Assets

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  5.02.

  	
  Successor
  Entity Substituted

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIX

  	
  DEFAULT AND REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  Events of Default

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.02.

  	
  Acceleration

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.03.

  	
  Other Remedies

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.04.

  	
  Waiver of Past
  Defaults

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.05.

  	
  Control by Majority

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.06.

  	
  Limitation on Suits

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  6.07.

  	
  Rights
  of Holders to Receive Payment

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  6.08.

  	
  Collection
  Suit by Trustee or Collateral Agent

  	
   

  
				

 

ii

 

	
  SECTION
  6.09.

  	
  Trustee
  May File Proofs of Claim

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.10.

  	
  Priorities

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.11.

  	
  Undertaking for
  Costs

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  6.12.

  	
  Restoration
  of Rights and Remedies

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN

  	
  TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
  Duties of Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.02.

  	
  Rights of Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  7.03.

  	
  Individual
  Rights of Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.04.

  	
  Trustee’s
  Disclaimer

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.05.

  	
  Notice of Default

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  7.06.

  	
  Reports
  by Trustee to Holders

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  7.07.

  	
  Compensation
  and Indemnity

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.08.

  	
  Replacement of
  Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  7.09.

  	
  Successor
  Trustee by Merger, Etc

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  7.10.

  	
  Eligibility;
  Disqualification

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  7.11.

  	
  Preferential
  Collection of Claims Against Company

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  7.12.

  	
  Trustee
  as Paying Agent and Collateral Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  7.13.

  	
  Form
  of Documents Delivered to Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  EIGHT

  	
  SATISFACTION
  AND DISCHARGE OF INDENTURE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  8.01.

  	
  Legal
  Defeasance and Covenant Defeasance

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  8.02.

  	
  Satisfaction
  and Discharge

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  8.03.

  	
  Survival
  of Certain Obligations

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  8.04.

  	
  Acknowledgment
  of Discharge by Trustee and Collateral Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  8.05.

  	
  Application
  of Trust Moneys

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  8.06.

  	
  Repayment
  to the Company; Unclaimed Money

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.07.

  	
  Reinstatement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  NINE

  	
  AMENDMENTS,
  SUPPLEMENTS AND WAIVERS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  9.01.

  	
  Without
  Consent of Holders

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.02.

  	
  With Consent of
  Holders

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.03.

  	
  Compliance with TIA

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  9.04.

  	
  Revocation
  and Effect of Consents

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  9.05.

  	
  Notation
  on or Exchange of Notes

  	
   

  
				

 

iii

 

	
  SECTION
  9.06.

  	
  Trustee
  to Sign Amendments, Etc

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  9.07.

  	
  Conformity
  with Trust Indenture Act

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN

  	
  GUARANTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01.

  	
  Guarantee

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10.02.

  	
  Release of a
  Guarantor

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  10.03.

  	
  Limitation
  of Guarantor’s Liability

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  10.04.

  	
  Guarantors
  May Consolidate, etc., on Certain Terms

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10.05.

  	
  Contribution

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10.06.

  	
  Waiver of
  Subrogation

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  10.07.

  	
  Waiver
  of Stay, Extension or Usury Laws

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  10.08.

  	
  Execution
  and Delivery of Guarantees

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  11.01.

  	
  Trust
  Indenture Act Controls

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11.02.

  	
  Notices

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  11.03.

  	
  Communications
  by Holders with Other Holders

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  11.04.

  	
  Certificate
  and Opinion as to Conditions Precedent

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  11.05.

  	
  Statements
  Required in Certificate or Opinion

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  11.06.

  	
  Rules
  by Trustee, Paying Agent, Registrar

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11.07.

  	
  Legal Holidays

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11.08.

  	
  Governing Law

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  11.09.

  	
  No
  Adverse Interpretation of Other Agreements

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  11.10.

  	
  No Recourse
  Against Others

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11.11.

  	
  Successors

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11.12.

  	
  Duplicate
  Originals

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11.13.

  	
  Severability

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11.14.

  	
  Waiver of Jury
  Trial

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE

  	
  SECURITY

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 12.01.

  	
  Grant of
  Security Interest

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 12.02.

  	
  Recording and Opinions

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 12.03.

  	
  Release of
  Collateral

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  12.04.

  	
  Specified
  Releases of Collateral

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  12.05.

  	
  Release
  upon Satisfaction or Defeasance of All Outstanding Obligations

  	
   

  
				

 

iv

 

	
  SECTION
  12.06.

  	
  Form
  and Sufficiency of Release

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 12.07.

  	
  Purchaser
  Protected

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  12.08.

  	
  Authorization
  of Actions to Be Taken by the Collateral Agent Under the Collateral
  Agreements

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  12.09.

  	
  Authorization
  of Receipt of Funds by the Trustee Under the Collateral Agreements

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  12.10.

  	
  Intercreditor
  Agreements

  	
   

  

 

	
  Exhibit A

  	
  -

  	
  Form of Initial Note

  	
   

  
	
  Exhibit B

  	
  -

  	
  Form of Exchange Note

  	
   

  
	
  Exhibit C

  	
  -

  	
  Form of Legend for Global Notes

  	
   

  
	
  Exhibit D

  	
  -

  	
  Form of Certificate to Be Delivered in
  Connection with Transfers to Non-QIB Accredited Investors

  	
   

  
	
  Exhibit E

  	
  -

  	
  Form of Certificate to Be Delivered in
  Connection with Transfers Pursuant to Regulation S

  	
   

  
	
  Exhibit F

  	
  -

  	
  Form of Supplemental Indenture to be
  Delivered by Subsequent Guarantors

  	
   

  
	
  Exhibit G

  	
   

  	
  Form of Intercreditor and Subordination
  Agreement

  	
   

  
	
  Exhibit H-1

  	
   

  	
  Form of Landlord Waiver

  	
   

  
	
  Exhibit H-2

  	
   

  	
  Form of Bailee and Consignee Waiver

  	
   

  

 

 

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

 

v

 

INDENTURE, dated
as of February 1, 2005, among Edgen Acquisition Corporation, a Nevada
corporation (the “Company”), the Guarantors (as herein defined)
hereafter parties hereto and The Bank of New York, as Trustee (in such
capacity, the “Trustee”) and Collateral Agent (in such capacity, the “Collateral
Agent”).

 

Effective as of the date hereof, the Company will be merged with and
into Edgen Corporation, a Nevada corporation (the “Surviving Corporation”),
with the Surviving Corporation as the surviving corporation (the “Merger”).  Effective upon effectiveness of the Merger,
the Surviving Corporation will assume the Company’s obligations under this
Indenture and will cause its subsidiaries to become Guarantors to the extent
required by this Indenture.  Effective
upon effectiveness of the Merger, all references in this Indenture to the “Company”
shall refer to the Surviving Corporation. 
Each party agrees as follows for the benefit of each other and for the
equal and ratable benefit of the Holders of the 97/8%
Series A Senior Secured Notes due 2011 (the “Initial Notes”) and the 97/8%
Series B Senior Notes due 2011 (the “Exchange Notes,” and together with
the Initial Notes, the “Notes”):

 

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

 

SECTION
1.01.  Definitions.

 

“Acceleration
Notice” has the meaning set forth in Section 6.02.

 

“Acquisition”
means the acquisition of all of the issued and outstanding Capital Stock of
Edgen Corporation.

 

“Acquired
Indebtedness” means Indebtedness of a Person or any of its Subsidiaries
existing at the time such Person becomes a Restricted Subsidiary of the Company
or at the time it merges or consolidates with or into the Company or any of its
Restricted Subsidiaries or assumed in connection with the acquisition of assets
from such Person and in each case not incurred by such Person in connection
with, or in anticipation or contemplation of, such Person becoming a Restricted
Subsidiary of the Company or such acquisition, merger or consolidation and
which Indebtedness is without recourse to the Company or any of its
Subsidiaries or to any of their respective properties or assets other than the
Person or the assets to which such Indebtedness related prior to the time such
Person became a Restricted Subsidiary of the Company or the time of such
acquisition, merger or consolidation; provided
that Indebtedness of such Person that is redeemed, defeased, retired or
otherwise repaid at the time, or immediately upon consummation, of the transaction
by which such Person is merged with or into or became a Restricted Subsidiary
of the Company shall not be Acquired Indebtedness. Acquired Indebtedness shall
be deemed to be incurred on the date of any such acquisition, merger or
consolidation or the date the acquired Person becomes a Restricted Subsidiary.

 

“Additional Interest” has the meaning set forth in the
Registration Rights Agreement.

 

“Additional Notes”
means all 97/8% Senior Secured Notes due 2011 that are not Exchange Notes issued
after the Issue Date (other than pursuant to Sections 2.06, 2.07,
2.10 and 3.06 of this Indenture) from time to time in accordance
with the terms of this Indenture, including, without limitation, the provisions
of Section 2.02.

 

“Administrative
Agent” means, at any time, the Person serving at such time as the “Administrative
Agent” under the Credit Agreement or any other representative of the lenders
then most

 

 

recently designated by a
majority of the lenders under the Credit Agreement in a written notice delivered
to the Collateral Agent and the Trustee.

 

“Affiliate”
means, with respect to any specified Person, any other Person who directly or
indirectly through one or more intermediaries controls, or is controlled by, or
is under common control with, such specified Person.  The term “control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through the ownership of voting
securities, by contract or otherwise; provided, that Beneficial
Ownership of 10% or more of the Voting Stock of the Person shall be deemed to
be control.  The terms “controlling” and “controlled”
have meanings correlative of the foregoing.

 

“Affiliate
Transaction” has the meaning set forth in Section 4.15.

 

“Agent”
means any Registrar, Paying Agent or co-Registrar.

 

“Agent Members”
has the meaning set forth in Section 2.14 and means, with respect to
DTC, Euroclear or Clearstream, a Person who has an account with DTC, Euroclear
or Clearstream, respectively (and, with respect to DTC, shall include Euroclear
and Clearstream).

 

“Applicable
Indebtedness” means:

 

(1) in respect of any asset that is the
subject of an Asset Sale at a time when such asset is included in the
Collateral, Indebtedness that is pari passu with the Notes and secured at such
time by Collateral; or

 

(2) in respect of any other asset,
Indebtedness that is pari passu with the Notes.

 

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

 

“Asset
Acquisition” means:

 

(1) an Investment by the Company or any
Restricted Subsidiary of the Company in any other Person pursuant to which such
Person shall become a Restricted Subsidiary of the Company or any Restricted
Subsidiary of the Company, or shall be merged with or into the Company or any
Restricted Subsidiary of the Company, or

 

(2) the acquisition by the Company or any
Restricted Subsidiary of the Company of the assets of any Person (other than a
Restricted Subsidiary of the Company) which constitute all or substantially all
of the assets of such Person or comprise any division or line of business of
such Person or any other properties or assets of such Person other than in the
ordinary course of business.

 

“Asset Sale”
means any direct or indirect sale, issuance, conveyance, transfer, lease (other
than operating leases entered into in the ordinary course of business),
assignment or other transfer (other than a Lien in accordance with this
Indenture) for value by (x) the Company or any of its Restricted Subsidiaries
to any Person other than the Company or a Guarantor or (y) a Foreign Restricted
Subsidiary to any Person other than the Company or a Wholly Owned Restricted
Subsidiary of the Company of:

 

2

 

(1)      any
Capital Stock of any Restricted Subsidiary of the Company; or

 

(2)      any
other property or assets of the Company or any Restricted Subsidiary of the
Company other than in the ordinary course of business; provided,
however, that Asset Sales shall not
include:

 

(A)          a
transaction or series of related transactions for which the Company or its
Restricted Subsidiaries receive aggregate consideration of less than $1.0
million;

 

(B)           the
sale, lease, conveyance, disposition or other transfer of all or substantially
all of the assets of the Company as permitted under Section 5.01;

 

(C)           any
Restricted Payment permitted under Section 4.09, including a Permitted
Investment;

 

(D)          the
sale or other disposition of Cash Equivalents;

 

(E)           the
sale or other disposition of used, worn out, obsolete or surplus equipment;

 

(F)           the
sale of an Unrestricted Subsidiary;

 

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

 

(H)          the licensing or sublicensing of intellectual
property or other general intangibles and licenses, leases or subleases of
other property in the ordinary course of business which do not materially interfere with the business of the Company and its
Restricted Subsidiaries.

 

“Authenticating
Agent” has the meaning set forth in Section 2.02.

 

“Bankruptcy
Code” means the Bankruptcy Reform Act of 1978, as amended, and codified as
11 U.S.C. §§101 et  seq.

 

“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 upon the occurrence of a subsequent condition.  The terms “Beneficially Owns” and “Beneficially
Owned” have meanings correlative to the foregoing.

 

“Board of
Directors” means, as to any Person, the board of directors or similar
governing body of such Person or any duly authorized committee thereof.

 

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

 

3

 

“Business Day”
means a day that is not a Legal Holiday.

 

“Capital Stock”
means:

 

(1)      with
respect to any Person that is a corporation, any and all shares, interests,
participations or other equivalents (however designated and whether or not
voting) of corporate stock, including each class of Common Stock and Preferred
Stock of such Person;

 

(2)      with
respect to any Person that is not a corporation, any and all partnership,
membership or other equity interests of such Person; and

 

(3)      any
warrants, rights or options to purchase any of the instruments or interests
referred to in clause (1) or (2) above.

 

“Capitalized
Lease Obligation” means, as to any Person, the obligations of such Person
under a lease that are required to be classified and accounted for as capital
lease obligations under GAAP and, for purposes of this definition, the amount
of such obligations at any date shall be the capitalized amount of such
obligations at such date, determined in accordance with GAAP.

 

“Cash
Equivalents” means:

 

(1)   
marketable direct obligations issued by, or unconditionally guaranteed by, the
United States Government or issued by any agency thereof and backed by the full
faith and credit of the United States, in each case maturing within one year
from the date of acquisition thereof;

 

(2)   
marketable direct obligations issued by any state of the United States of
America or any political subdivision of any such state or any public
instrumentality thereof maturing within one year from the date of acquisition
thereof and, at the time of acquisition, having one of the two highest ratings
obtainable from either Standard & Poor’s Ratings Group (“S&P”)
or Moody’s Investors Service, Inc. (“Moody’s”);

 

(3) 
commercial paper maturing no more than one year from the date of
creation thereof and, at the time of acquisition, having a rating of at least
A-1 from S&P or at least P-1 from Moody’s;

 

(4) 
certificates of deposit or bankers’ acceptances maturing within one year
from the date of acquisition thereof issued by any bank organized under the
laws of the United States of America or any state thereof or the District of
Columbia or any U.S. branch of a foreign bank having at the date of acquisition
thereof combined net capital and surplus of not less than $250.0 million;

 

(5) 
repurchase obligations with a term of not more than seven days for
underlying securities of the types described in clause (1) and (2) above
entered into with any bank meeting the qualifications specified in clause (4)
above; and

 

(6) 
investments in money market funds which invest substantially all its
assets in securities of the types described in clauses (1) through (5)
above.

 

“Change of
Control” means the occurrence of one or more of the following events:

 

(1)      any
direct or indirect sale, lease, transfer, conveyance or other disposition
(other than by way of merger or consolidation), in one transaction or a series
of related transactions, of all or

 

4

 

substantially
all of the assets of the Company to any Person or group of related Persons for
purposes of Section 13(d) of the Exchange Act (a “Group”), other than a
transaction in which the transferee is controlled by one or more Permitted
Holders;

 

(2)      the
Company consolidates with, or merges with or into, any Person, or any Person
consolidates with, or merges with or into, the Company, other than (A) a
transaction in which the surviving or transferee Person is a Person that is
controlled by the Permitted Holders or (B) any such transaction where the
Voting Stock of the Company outstanding immediately prior to such transaction
is converted into or exchanged for Voting Stock (other than Disqualified
Capital Stock) of the surviving or transferee Person constituting a majority of
the outstanding shares of such Voting Stock of such surviving or transferee
Person (immediately after giving effect to such issuance), or any transaction
pursuant to which holders of securities representing 100% of the Company’s
Voting Stock immediately prior to such transaction have the right or ability by
voting power, contract or otherwise, to elect or designate a majority of the
Board of Directors of the surviving or transferee Person;

 

(3)      the
approval by the holders of Capital Stock of the Company of any plan or proposal
for the liquidation, winding up or dissolution of the Company;

 

(4)      prior
to the first Public Equity Offering, one or more of the Permitted Holders cease
for any reason to be the Beneficial Owner, directly or indirectly, in the
aggregate of at least a majority of the total voting power of the Voting Stock
of the Company, whether by virtue of the issuance, sale or other disposition of
Capital Stock of the Company, a merger, consolidation or sale of assets
involving the Company, a Restricted Subsidiary, any voting trust or other agreement;

 

(5)      subsequent
to the first Public Equity Offering, (a) any Person or Group is or becomes the
Beneficial Owner, directly or indirectly, in the aggregate of more than 35% of
the total voting power of the Voting Stock of the Company, and (b) one or more
of the Permitted Holders Beneficially Own, directly or indirectly, in the
aggregate a lesser percentage of the total voting power of the Voting Stock of
the Company than such other Person or Group and do not have the right or
ability by voting power, contract or otherwise to elect or designate for
election a majority of the Board of Directors of the Company; or

 

(6)      individuals
who on the Issue Date constituted the Board of Directors of the Company
(together with any new directors whose election by such Board of Directors or
whose nomination for election by the stockholders of the Company was approved
pursuant to a vote of a majority of the directors then still in office who were
either directors on the Issue Date or whose election or nomination for election
was previously so approved) cease for any reason to constitute a majority of
the Board of Directors then in office.

 

“Change of
Control Offer” has the meaning set forth in Section 4.10.

 

“Change of
Control Payment Date” has the meaning set forth in Section 4.10.

 

“Clearstream”
means Clearstream Banking, societe anonyme.

 

“Collateral”
means collateral as such term is defined in the Security Agreement, all
property mortgaged under the Mortgages and any other property, whether now
owned or hereafter acquired, upon which a Lien securing the Obligations is
granted or purported to be granted under any Collateral Agreement; provided,
however that the term “Collateral” shall not include
any Excluded Assets.

 

5

 

“Collateral
Agent” means The Bank of New York, as collateral agent and any successor
under this Indenture.

 

“Collateral
Agreements” means,
collectively, the Security Agreement and each Mortgage, in each case, as the
same may be in force from time to time.

 

“Commodity
Agreement” means any
hedging agreement or other similar agreement or arrangement designed to protect
the Company or any Restricted Subsidiary of the Company against fluctuations in
commodity prices.

 

“Common
Stock” of any Person
means any and all shares, interests or other participations in, and other
equivalents (however designated and whether voting or non-voting) of such
Person’s common stock, whether outstanding on the Issue Date or issued after
the Issue Date, and includes, without limitation, all series and classes of
such common stock..

 

“Company”
has the meaning set forth in the preamble to this Indenture.

 

“Comparable
Treasury Issue” means the
United States Treasury security selected by a Reference Treasury Dealer
appointed by the Company as having a maturity comparable to the remaining term
of the Notes (as if the final maturity of the Notes was February 1, 2008) that
would be utilized at the time of the selection and in accordance with customary
financial practice in pricing new issues of corporate debt securities of
comparable maturity to the remaining term of the Notes (as if the final
maturity of the Notes was February 1, 2008).

 

“Comparable
Treasury Price” means, with
respect to any redemption date, (1) the average of the bid and asked prices for
the Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) on the third Business Day preceding such Redemption Date, as
set forth in the daily statistical release (or any successor release) published
by the Federal Reserve Bank of New York and designated “Composite 3:30 pm.
Quotations for U.S. Government Securities” or (2) if such release (or any
successor release is not published or does not contain such prices on such
Business Day, (A) the average of the Reference Treasury Dealer Quotations for
such redemption date, after excluding the highest and lowest such Reference
Treasury Dealer Quotation or (B) if the Company obtains fewer than three such
Reference Treasury Dealer Quotations, the average of all such Reference
Treasury Dealer Quotations.

 

“Consolidated
EBITDA” means, with respect to any Person, for any period, the sum (without
duplication) of:

 

(1)      Consolidated
Net Income; and

 

(2)      to
the extent Consolidated Net Income has been reduced thereby:

 

(A)          all
income and franchise taxes of such Person and its Restricted Subsidiaries paid
or accrued in accordance with GAAP for such period;

 

(B)           Consolidated
Fixed Charges;

 

(C)           Consolidated
Non-cash Charges;

 

(D)          (a) customary fees and expenses of the Company and its Restricted Subsidiaries payable in
connection with (i) the issuance and maintenance of the Notes and the related

 

6

 

borrowing under
the Credit Agreement, (ii) any Equity Offering, (iii) the incurrence, maintenance,
termination or repayment of Indebtedness permitted by Section 4.08 (including
Indebtedness constituting Permitted Indebtedness), (iv) the Acquisition and any acquisition permitted under this Indenture
and (v) compliance with the Federal securities laws and the Sarbanes-Oxley Act
of 2002 for a period of 12 months following the Issue Date, (b) extraordinary
bonus payments payable to the officers and employees of the Company pursuant to
the Company’s 2004 Bonus Plan in respect of the Company’s 2004 fiscal year and
(c) bonuses and fees payable to existing stockholders, directors, officers and
employees of the Company, lenders, financial advisors and other Persons in
connection with the Acquisition on or substantially contemporaneous with the
Issue Date;

 

(E)           restructuring charges (as determined in
accordance with GAAP) relating to the consolidation of operations or reduction
in head-count;

 

(F)           any premium or penalty paid in connection with
redeeming or retiring Indebtedness of such Person and its consolidated
Restricted Subsidiaries prior to the stated maturity thereof pursuant to the
agreements governing such Indebtedness; and

 

(G)           any increase in cost of sales expense as a result of the Company’s
adoption of the LIFO method of costing inventory after the Issue Date,

 

all as
determined on a consolidated basis for such Person and its Restricted
Subsidiaries in accordance with GAAP.

 

“Consolidated
Fixed Charge Coverage Ratio” means, with respect to any Person, the ratio
of Consolidated EBITDA of such Person during the four consecutive full fiscal
quarters (the “Four Quarter Period”) most
recently ending on or prior to the date of the transaction or event giving rise
to the need to calculate the Consolidated Fixed Charge Coverage Ratio for which
internal financial statements are available (the “Transaction
Date”) to Consolidated Fixed Charges of such Person for the
Four Quarter Period.

 

In addition to
and without limitation of the foregoing, for purposes of this definition, “Consolidated
EBITDA” and “Consolidated Fixed Charges” shall be calculated after giving
effect on a pro forma basis for the period of such calculation to:

 

(1)      the
incurrence or repayment of any Indebtedness of such Person or any of its
Restricted Subsidiaries (and the application of the proceeds thereof) giving
rise to the need to make such calculation and any incurrence or repayment of
other Indebtedness (and the application of the proceeds thereof), other than
the incurrence or repayment of Indebtedness in the ordinary course of business for
working capital purposes pursuant to working capital facilities, occurring
during the Four Quarter Period or at any time subsequent to the last day of the
Four Quarter Period and on or prior to the Transaction Date, as if such
incurrence or repayment, as the case may be (and the application of the
proceeds thereof), occurred on the first day of the Four Quarter Period;

 

(2)      any
Asset Sale or other disposition of operations or Asset Acquisition (including,
without limitation, any Asset Acquisition giving rise to the need to make such
calculation as a result of such Person or one of its Restricted Subsidiaries
(including any Person who becomes a Restricted Subsidiary as a result of any
such Asset Acquisition) incurring, assuming or otherwise being liable for
Acquired Indebtedness during the Four Quarter Period or at any time subsequent
to the last day of the Four Quarter Period and on or prior to the Transaction
Date), as if such Asset Sale or other disposition of operations or Asset
Acquisition (including the incurrence, assumption or liability for any such
Indebtedness or Acquired Indebtedness and also including any Consolidated
EBITDA

 

7

 

associated with such Asset Acquisition) occurred on the first day of the
Four Quarter Period. If such Person or any of its Restricted Subsidiaries
directly or indirectly guarantees Indebtedness of a third Person, the preceding
sentence shall give effect to the incurrence of such guaranteed Indebtedness as
if such Person or any Restricted Subsidiary of such Person had directly
incurred or otherwise assumed such guaranteed Indebtedness;

 

(3)      any Person that is a Restricted Subsidiary on the Transaction Date (or
would become a Restricted Subsidiary on such Transaction Date in connection
with the transaction requiring determination of such Consolidated EBITDA) will
be deemed to have been a Restricted Subsidiary at all times during such Four
Quarter Period; and

 

(4)      any Person that is not a Restricted Subsidiary on the Transaction Date
(or would cease to be a Restricted Subsidiary on such Transaction Date in
connection with the transaction requiring determination of such Consolidated
EBITDA) will be deemed not to have been a Restricted Subsidiary at any time
during such Four Quarter Period.

 

Furthermore,
in calculating “Consolidated Fixed Charges” for purposes of determining the
denominator (but not the numerator) of this “Consolidated Fixed Charge Coverage
Ratio”:

 

(1)      interest
on outstanding Indebtedness determined on a fluctuating basis as of the
Transaction Date (including Indebtedness actually incurred on the Transaction
Date) and which will continue to be so determined thereafter shall be deemed to
have accrued at a fixed rate per annum equal to the rate of interest on such Indebtedness
in effect on the Transaction Date; and

 

(2)      notwithstanding
clause (1) above, interest on Indebtedness determined on a fluctuating basis,
to the extent such interest is covered by agreements relating to Interest Swap
Obligations, shall be deemed to accrue at the rate per annum resulting after
giving effect to the operation of such agreements.

 

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

 

(1)      Consolidated
Interest Expense (excluding amortization or write-off of deferred financing
costs); plus

 

(2)      the
product of (x) the amount of all cash dividend payments (other than dividends
paid by the Subsidiaries to the Company or to the Company’s Wholly-Owned
Restricted Subsidiaries) on any class or series of Preferred Stock of such
Person paid or in the case of any such class or series of Preferred Stock that
is Disqualified Capital Stock, paid, accrued or scheduled to be paid or
accrued, in each case, during such period times (y) a
fraction, the numerator of which is one and the denominator of which is one
minus the then current effective consolidated federal, state and local tax rate
of such Person, as estimated in good faith by the chief financial officer of
the Company, expressed as a decimal.

 

“Consolidated
Interest Expense” means, with respect to any Person for any period, the
aggregate of the interest expense of such Person and its Restricted
Subsidiaries for such period, on a consolidated basis, as determined in
accordance with GAAP, and including, without duplication, (a) all amortization
or accretion of original issue discount, (b) the interest component of
Capitalized Lease Obligations paid, accrued and/or scheduled to be paid or
accrued by such Person and its Restricted Subsidiaries during such period, and
(c) net cash costs under all Interest Swap Obligations (including amortization
of fees), but excluding amortization of debt issuance costs and excluding
accrued dividends on preferred stock that is reclassified as Indebtedness due to
a change in accounting principles.

 

8

 

“Consolidated
Net Income” means, with respect to any Person, for any period, the
aggregate net income (or loss) of such Person and its Restricted Subsidiaries
for such period on a consolidated basis, determined in accordance with GAAP; provided,
however, that there shall be excluded therefrom:

 

(1)      after-tax
gains and losses from Asset Sales or abandonments or reserves relating thereto;

 

(2)      after-tax
items classified as extraordinary gains or losses;

 

(3)      the
net income (but not loss) of any Restricted Subsidiary of the referent Person
to the extent that the declaration of dividends or similar distributions by
that Restricted Subsidiary of that income is restricted by a contract,
operation of law or otherwise;

 

(4)      the
net income of any Person, other than the referent Person or a Restricted
Subsidiary of the referent Person, except to the extent of cash dividends or
distributions paid to the referent Person or to a Wholly Owned Restricted
Subsidiary of the referent Person by such Person;

 

(5)      any
restoration to income of any material contingency reserve, except to the extent
that provision for such reserve was made out of Consolidated Net Income accrued
at any time following the Issue Date;

 

(6)      income
or loss attributable to discontinued operations (including, without limitation,
operations disposed of during such period whether or not such operations were
classified as discontinued);

 

(7)      all
gains and losses realized on or because of the purchase or other acquisition by
such Person or any of its Restricted Subsidiaries of any securities of such
Person or any of its Restricted Subsidiaries;

 

(8)      the
cumulative effect of a change in accounting principles;

 

(9)      interest
expense attributable to dividends on Qualified Capital Stock pursuant to
Statement of Financial Accounting Standards No. 150, “Accounting for Certain
Financial Instruments with Characteristics of both Liabilities and Equity;”

 

(10)    non-cash
charges resulting from the impairment of intangible assets; and

 

(11)    only
for purposes of calculating cumulative Consolidated Net Income for purposes of Section
4.09, in the case of a successor to the referent Person by consolidation or
merger or as a transferee of the referent Person’s assets, any earnings of the
successor corporation prior to such consolidation, merger or transfer of
assets.

 

Notwithstanding the foregoing, for purposes
of calculating Consolidated Net Income for any period, Consolidated Net Income
for such period shall (except for purposes of calculating Consolidated Net
Income for such period as used in clause (1) of the definition of the term “Consolidated
EBITDA”) include, to the extent Consolidated Net Income for such period has
been reduced thereby, any non-cash charges associated with the purchase
accounting write-up of inventory, including without limitation, pursuant to FAS
141.

 

“Consolidated Net Tangible Assets” means, as of any date of
determination and with respect to any Person, the total assets, less goodwill
and other intangibles (other than patents, trademarks, copyrights, licenses and
other intellectual property), shown on the balance sheet of such Person and its

 

9

 

Restricted Subsidiaries for the
most recently ended fiscal quarter for which internal financial statements are
available, determined on a consolidated basis in accordance with GAAP.

 

“Consolidated
Non-cash Charges” means, with respect to any Person, for any period, the
aggregate depreciation, amortization and other non-cash items and expenses of
such Person and its Restricted Subsidiaries to the extent they reduce
Consolidated Net Income of such Person and its Restricted Subsidiaries for such
period, determined on a consolidated basis in accordance with GAAP (A) including, but not limited to, (i) non-cash
charges attributable to the grant,
exercise or repurchase of options for or shares of Qualified Capital Stock to
or from employees of such Person and its consolidated subsidiaries, (ii)
unrealized losses resulting solely from the marking to market of derivative
securities or securities held in deferred compensation plans, (iii) non-cash
charges associated with the amortization or write-off of deferred financing
costs and debt issuance costs of such Person and its consolidated subsidiaries
during such period, (iv) amortization expense associated with the purchase
accounting write-up of tangible and intangible assets and (v) non-cash charges
associated with the purchase accounting write-up of inventory, including,
without limitation, pursuant to FAS 141, but (B) excluding any such
charges constituting an extraordinary item or loss or any such charge which
requires an accrual of or a reserve for cash charges for any future period.

 

“Corporate
Trust Office” means the office of the Trustee at which the corporate trust
business of the Trustee shall, at any particular time, be principally
administered, which office is, at the date of this Indenture, located at The
Bank of New York, 101 Barclay Street, Floor 8W, New York, New York 10286,
Attn:  Corporate Trust Administration.

 

“Covenant
Defeasance” has the meaning set forth in Section 8.01.

 

“Credit
Agreement” means the Amended and
Restated Loan and Security Agreement dated as of the Issue Date, between the
Company, certain Subsidiaries of the Company and the lenders party thereto
(together with their successors and assigns, the “Lenders”) and the Administrative Agent, setting forth
the terms and conditions of the senior credit facility, together with the
related documents thereto (including, without limitation, any guarantee
agreements and security documents), in each case as amended, restated,
modified, renewed, refunded, replaced (whether on or after termination or
otherwise) or refinanced (including by means of sales of debt securities to
institutional investors) in whole or in part from time to time. Without
limiting the generality of the foregoing, the term “Credit Agreement” shall
include any amendment, amendment and restatement, renewal, extension,
restructuring, supplement or modification to any Credit Agreement and all
refundings, refinancings and replacements of any Credit Agreement, including
any credit agreement:

 

(1)      extending the maturity of any indebtedness incurred thereunder or contemplated
thereby,

 

(2)      adding or deleting borrowers or guarantors thereunder, so long as
borrowers and Company include one or more of the Company and the Subsidiaries
and their respective successors and assigns,

 

(3)      increasing the amount of Indebtedness incurred thereunder or available to
be borrowed thereunder, provided that
on the date such Indebtedness is incurred, such Indebtedness would be permitted
under clause (2) or (17) (either individually or in the aggregate) of the
definition of “Permitted Indebtedness,” or

 

(4)      otherwise altering the terms and conditions thereof in a manner not
prohibited by the terms of this Indenture and whether by the same or any
other agent, lender or group of lenders (including by means of sales of debt
securities to institutional lenders).

 

10

 

“Currency
Agreement” means any foreign exchange contract, currency swap agreement or
other similar agreement or arrangement designed to protect the Company or any
Restricted Subsidiary of the Company against fluctuations in currency values.

 

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

 

“Default”
means an event or condition the occurrence of which is, or with the lapse of
time or the giving of notice or both would be, an Event of Default.

 

“Depository”
means DTC, its nominees and successors.

 

“Disqualified
Capital Stock” means that portion of any Capital Stock which, by its terms
(or by the terms of any security into which it is convertible or for which it
is exchangeable at the option of the holder thereof), or upon the happening of
any event (other than an event that would constitute a Change of Control),
matures or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise, or is redeemable at the sole option of the holder thereof (except in
each case, upon the occurrence of a Change of Control) on or prior to the first
anniversary of the final maturity date of the Notes for cash or is convertible
into or exchangeable for debt securities of the Company or its Subsidiaries at
any time prior to such anniversary.

 

“Domestic
Restricted Subsidiary” means, with respect to any Person, a Domestic
Subsidiary of such Person that is a Restricted Subsidiary of such Person.

 

“Domestic
Subsidiary” means, with respect to any Person, a Subsidiary of such Person
that is not a Foreign Subsidiary of such Person.

 

“DTC” means
The Depository Trust Company, its nominees and successors.

 

“Equity
Offering” means any private or public offering of Capital Stock of the
Company or any holding company of the Company to any Person (other than
issuances upon exercise of options by employees of any holding company, the
Company or any of the Restricted Subsidiaries).

 

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

 

“Event of
Default” has the meaning set forth in Section 6.01.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, or any successor statute
or statutes thereto.

 

“Exchange
Notes” has the
meaning set forth in the preamble to this Indenture and means the Notes, if
any, issued under Section 2.02 pursuant to the Registration Rights
Agreement.

 

“Exchange
Offer” means an
exchange offer that may be made by the Company, pursuant to the Registration
Rights Agreement, to exchange for any and of all the Initial Notes for a like
aggregate principal amount of Exchange Notes having substantially identical
terms to the Initial Notes registered under the Securities Act.

 

11

 

“Excluded Assets” means:

 

(1)      any lease, license, contract, property right
or agreement to which the Company or any Guarantor is a party or any of its
rights or interests thereunder if and only for so long as the grant of a Lien
under the Collateral Agreements (i) is prohibited by applicable law or would
constitute or result in the abandonment, invalidation or unenforceability of
any right, title or interest of the grantor of such Lien therein pursuant to
applicable law, or (ii) would require the consent of third parties and such
consent shall not have been obtained, or (iii) would constitute or result in a
breach, termination or default under any such lease, license, contract,
property right or agreement (other than to the extent that any such consent
requirement or other term thereof would be rendered ineffective pursuant to
Sections 9-406, 9-407, 9-408 or 9-409 of the Uniform Commercial Code of any
relevant jurisdiction or any other applicable law or principles of equity); provided that such lease, license, contract, property right
or agreement will be an Excluded Asset only to the extent and for so long as
the consequences specified above will result and will cease to be an Excluded
Asset and will become subject to the Lien granted under the Collateral
Agreements, immediately and automatically, at such time as such consequences
will no longer result;

 

(2)      leasehold interests in real property with
respect to which the Company or any Guarantor is a tenant or subtenant;

 

(3)      Capital Stock of each Subsidiary of the
Company or any Guarantor;

 

(4)      property and assets owned by the Company or
any Guarantor that are the subject of Permitted Liens described in clause (6)
or (7) of the definition thereof for so long as such Permitted Liens are in
effect; and

 

(5)      any other assets owned or acquired by the
Company or any of its Guarantors that are expressly not required to constitute “Collateral”
pursuant to the terms of the Collateral Agreements.

 

 “Fair Market Value” means, with respect
to any asset or property, the price which could be negotiated in an arm’s
length transaction, for cash, between a willing seller and a willing and able
buyer, neither of whom is under undue pressure or compulsion to complete the
transaction. Fair Market Value shall be determined by the Board of Directors of
the Company acting in good faith and shall be evidenced by a Board Resolution
of the Board of Directors of the Company; provided,
however, that with respect to any price less than
$2.5 million only the good faith determination by the Company’s senior
management shall be required.

 

“Foreign
Restricted Subsidiary” means any Restricted Subsidiary that is organized
under the laws of any jurisdiction other than the United States of America, any
state thereof or the District of Columbia.

 

“Foreign
Subsidiary” means, with respect to any Person, any Subsidiary of such
Person that is organized under the laws of any jurisdiction other than the
United States of America, any state thereof or the District of Columbia.

 

“GAAP”
means accounting principles generally accepted in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board of the
American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as may be approved by a significant segment of
the accounting profession of the United States, which are in effect as of the
Issue Date.

 

“Global Notes”
has the meaning set forth in Section 2.01.

 

12

 

“Guarantee”
has the meaning set forth in Section 10.01.

 

“Guarantor”
means  (1) each of the Company’s Domestic
Restricted Subsidiaries existing on the Issue Date and (2) each of the Company’s
Domestic Restricted Subsidiaries that in the future executes a supplemental
indenture in which such Domestic Restricted Subsidiary agrees to be bound by
the terms of this Indenture as a Guarantor; provided
that any Person constituting a Guarantor as described above shall cease to
constitute a Guarantor when its respective Guarantee is released in accordance
with the terms of this Indenture.

 

“Holder”
means the Person in whose name a Note is registered on the registrar’s books.

 

“IAI Global
Notes” has the meaning set forth in Section 2.01.

 

“incur” has
the meaning set forth in Section 4.08.

 

“Indebtedness”
means with respect to any Person, without duplication:

 

(1)      all Obligations of such Person for borrowed
money to the extent such Obligations would appear as a liability upon the
consolidated balance sheet of such Person in accordance with GAAP;

 

(2)      all Obligations of such Person evidenced by
bonds, debentures, notes or other similar instruments to the extent such
Obligations would appear as a liability upon the consolidated balance sheet of
such Person in accordance with GAAP;

 

(3)      all Capitalized Lease Obligations of such
Person;

 

(4)      all Obligations of such Person issued or
assumed as the deferred purchase price of property, all conditional sale
obligations and all Obligations under any title retention agreement (but
excluding trade accounts payable and other accrued liabilities arising in the
ordinary course of business that are not overdue by 90 days or more or are
being contested in good faith by appropriate proceedings and any deferred
purchase price represented by earn outs consistent with the Company’s past
practice) to the extent such Obligations would appear as a liability upon the
consolidated balance sheet of such Person in accordance with GAAP;

 

(5)      all Obligations for the reimbursement of any
obligor on any letter of credit, banker’s acceptance or similar credit
transaction, whether or not then due;

 

(6)      guarantees and other contingent obligations
in respect of Indebtedness referred to in clauses (1) through (5) above and
clause (8) below;

 

(7)      all Obligations of any other Person of the
type referred to in clauses (1) through (6) which are secured by any Lien on
any property or asset of such Person, the amount of any such Obligation being
deemed to be the lesser of the Fair Market Value of the property or asset
securing such Obligation or the amount of such Obligation;

 

(8)      all Interest Swap Obligations and all
Obligations under Currency Agreements and Commodity Agreements of such Person;
and

 

(9)      all Disqualified Capital Stock issued by such
Person with the amount of Indebtedness represented by such Disqualified Capital
Stock being equal to the greater of its voluntary or

 

13

 

involuntary
liquidation preference and its maximum fixed repurchase price, but excluding
accrued dividends, if any.

 

Notwithstanding the foregoing, Indebtedness shall not include any
Qualified Capital Stock. For purposes hereof, the “maximum
fixed repurchase price” of any Disqualified Capital Stock which does
not have a fixed repurchase price shall be calculated in accordance with the
terms of such Disqualified Capital Stock as if such Disqualified Capital Stock
were purchased on any date on which Indebtedness shall be required to be
determined pursuant to this Indenture, and if such price is based upon, or
measured by, the Fair Market Value of such Disqualified Capital Stock, such
Fair Market Value shall be determined reasonably and in good faith by the Board
of Directors of the issuer of such Disqualified Capital Stock.

 

“Indemnified
Party” has the meaning set forth in Section 7.07.

 

“Indenture”
means this Indenture, as amended or supplemented from time to time in
accordance with the terms hereof.

 

“Indenture Documents”
means, collectively, this Indenture, the Notes, the Guarantees, and the
Collateral Agreements.

 

“Independent
Financial Advisor” means a nationally-recognized accounting, appraisal or
investment banking firm that, in the judgment of the Board of Directors of the
Company (including a majority of the disinterested members thereof), is
independent and qualified to perform the task for which it is to be engaged.

 

“Initial Notes” has the meaning set forth in the preamble to
this Indenture.

 

“Initial Purchaser” means Jefferies & Company, Inc.

 

“Institutional
Accredited Investor” means an institution that is an “accredited investor”
as that term is defined in Rule 501(a)(1), (2), (3) or (7) under the Securities
Act.

 

“Intercreditor
Agreements” means, collectively, the Senior Intercreditor Agreement and the
Subordinated Intercreditor Agreement.

 

“Interest
Payment Date” means the stated maturity of an installment of interest on
the Notes.

 

“Interest Swap
Obligations” means the obligations of any Person pursuant to any
arrangement with any other Person, whereby, directly or indirectly, such Person
is entitled to receive from time to time periodic payments calculated by
applying either a floating or a fixed rate of interest on a stated notional
amount in exchange for periodic payments made by such other Person calculated
by applying a fixed or a floating rate of interest on the same notional amount
and shall include, without limitation, interest rate swaps, caps, floors,
collars and similar agreements.

 

“Investment”
in any Person means any direct or indirect advance, loan (other than advances
to customers in the ordinary course of business that are recorded as accounts
receivable on the balance sheet of the lender) or other extensions of credit
(including by way of guarantee or similar arrangement) or capital contribution
to (by means of any transfer of cash or other property to others or any payment
for property or services for the account or use of others), or any purchase or
acquisition for value of Capital Stock, Indebtedness or other similar
instruments issued by such Person.  If
the Company or any Restricted Subsidiary issues, sells or otherwise disposes of
any Capital Stock of a Person that is a Restricted

 

14

 

Subsidiary such that, after
giving effect thereto, such Person is no longer a Restricted Subsidiary, any
Investment by the Company or any Restricted Subsidiary in such Person remaining
after giving effect thereto will be deemed to be a new Investment at such
time.  The acquisition by the Company or
any Restricted Subsidiary of a Person that holds an Investment in a third
Person will be deemed to be an Investment by the Company or such Restricted
Subsidiary in such third Person at such time. 
Except as otherwise provided for herein, the amount of an Investment
shall be its Fair Market Value at the time the Investment is made and without
giving effect to subsequent changes in value.

 

For purposes of the definition
of “Unrestricted Subsidiary,” the definition of “Restricted Payment” and
Section 4.09:

 

(i)       “Investment”
shall include the portion (proportionate to the Company’s equity interest in
such Subsidiary) of the Fair Market Value of the net assets of any Subsidiary
of the Company at the time that such Subsidiary is designated an Unrestricted
Subsidiary; provided, however,
that upon a redesignation of such Subsidiary as a Restricted Subsidiary, the
Company shall be deemed to continue to have a permanent “Investment” in an
Unrestricted Subsidiary equal to an amount (if positive) equal to (A) the
Company’s “Investment” in such Subsidiary at the time of such redesignation
less (B) the portion (proportionate to the Company’s equity interest in such
Subsidiary) of the Fair Market Value of the net assets of such Subsidiary at
the time of such redesignation; and

 

(ii)      any
property transferred to or from an Unrestricted Subsidiary shall be valued at
its Fair Market Value at the time of such transfer, in each case as determined
in good faith by the Board of Directors of the Company.

 

“Issue Date”
means the date of original issuance of the Notes.

 

“JCP Group” means (i) ING Furman Selz Investors III
L.P., ING Barings Global Leveraged Equity Plan Ltd., ING Barings U.S. Leveraged
Equity Plan LLC and FS Private Investments III LLC and any of their respective
Affiliates and (ii) any investment vehicle that is managed (whether through
ownership of securities having a majority of the voting power or through
management of investments) by any of the Persons listed in clause (i), but
excluding any portfolio companies of any Person listed in clause (i) or (ii).

 

“Junior Lien Collateral Agent” means any person appointed as such by the
Junior Lien Debtholders.

 

“Junior Lien Debt” means the Indebtedness permitted to be
incurred pursuant to Section 4.08 (including indebtedness constituting
Permitted Indebtedness) and secured by Permitted Liens of the type set forth in
clause (19) of the definition of Permitted Liens.

 

“Junior Lien Debtholders” means the holders of Junior Lien Debt.

 

“Legal Defeasance”
has the meaning set forth in Section 8.01.

 

“Legal Holiday”
has the meaning set forth in Section 11.07.

 

“Lenders”
has the meaning set forth in the definition of the term “Credit Agreement.”

 

15

 

“Lien”
means any lien, mortgage, deed of trust, pledge, security interest, charge or
encumbrance of any kind (including any conditional sale or other title
retention agreement, any lease in the nature thereof and any agreement to give
any security interest).

 

“Management
Agreement” means the management agreement, dated as of the Issue Date,
between the Company and Jefferies Capital Partners, as in effect on the Issue
Date and as amended; provided, any such
amendment does not adversely affect the Company, any Guarantor or the Holders
of the Notes.

 

“Management
Fees” means the
management fees payable pursuant to the Management Agreement.

 

“Management
Investors and Related Trusts”
means Daniel J. O’Leary, David L. Laxton III, Robert L. Gilleland, Craig
Stephen Kiefer, Roy J. Meredith, Douglas J. Daly, Jr. and each trust created by
any of the foregoing Persons for estate planning purposes.

 

“Maturity Date”
means February 1, 2011.

 

“Moody’s”
means Moody’s Investor Services, Inc.

 

“Mortgages”
means the mortgages, deeds of trust, deeds to secure Indebtedness or other
similar documents securing Liens on the Premises, as well as the other
Collateral secured by and described in the mortgages, deeds of trust, deeds to
secure Indebtedness or other similar documents.

 

“Net Cash
Proceeds” means, with respect to any Asset Sale, the proceeds in the form
of cash or Cash Equivalents including payments in respect of deferred payment
obligations when received in the form of cash or Cash Equivalents (other than
the portion of any such deferred payment constituting interest) received by the
Company or any of its Restricted Subsidiaries from such Asset Sale net of:

 

(1)      the
direct costs relating to such Asset Sale, including, without limitation, legal,
accounting and investment banking fees and sales commissions;

 

(2)      all
taxes and other costs and expenses actually paid or estimated by the Company
(in good faith) to be payable in cash in connection with such Asset Sale;

 

(3)      repayment
of Indebtedness that is secured by the property or assets that are the subject
of such Asset Sale and is required to be repaid in connection with such Asset
Sale; and

 

(4)      appropriate
amounts to be provided by the Company or any Restricted Subsidiary, as the case
may be, as a reserve, in accordance with GAAP, against any liabilities
associated with such Asset Sale and retained by the Company or any Restricted
Subsidiary, as the case may be, after such Asset Sale, including, without
limitation, pension and other post-employment benefit liabilities, liabilities
related to environmental matters and liabilities under any indemnification
obligations associated with such Asset Sale;

 

provided, however, that if, after the payment of all taxes with respect to such Asset
Sale, the amount of estimated taxes, if any, pursuant to clause (2) above
exceeded the tax amount actually paid in cash in respect of such Asset Sale,
the aggregate amount of such excess shall, at such time, constitute Net Cash
Proceeds.

 

16

 

“Net Proceeds
Offer” shall have the meaning set forth in Section 4.11.

 

“Net Proceeds
Offer Amount” shall have the meaning set forth in Section 4.11.

 

“Net Proceeds
Offer Payment Date” shall have the meaning set forth in Section 4.11.

 

“Net Proceeds
Offer Trigger Date” shall have the meaning set forth in Section 4.11.

 

“Non-U.S.
Person” means a Person who is not a U.S. person, as defined in Regulation
S.

 

“Notes” has the meaning set forth in the preamble to this
Indenture and means the Initial Notes, the Additional Notes, if any, and the
Exchange Notes treated as single class of securities, as amended or
supplemental from time to time in accordance with the terms hereof, that are
issued pursuant to this Indenture.

 

“Obligations”
means all obligations for principal, premium, interest, Additional Interest,
penalties, fees, indemnifications, reimbursements, damages and other
liabilities payable under the documentation governing any Indebtedness.

 

“Offering”
means the offering of the Initial Notes hereunder.

 

“Offering Circular”
means the offering circular dated January 25, 2005. related to the offer and
sale of the Initial Notes.

 

“Officer”
means the Chief Executive Officer, the President, the Chief Financial Officer
or any Vice President of the Company.

 

“Officers’
Certificate” means a certificate signed by two Officers of the Company, at
least one of whom shall be the principal financial officer of the Company, and
delivered to the Trustee.

 

 “Opinion of Counsel” means a written
opinion of counsel who shall be reasonably acceptable to the Trustee.

 

“Paying Agent”
has the meaning set forth in Section 2.03.

 

“Permitted
Business” means any
business that is the same as or similar, reasonably related, complementary or
incidental to the business in which the Company and its Restricted Subsidiaries
are engaged on the Issue Date.

 

“Permitted
Holders” means the JCP Group and its Affiliates (excluding any portfolio
companies of any such Person) and the Management Investors and Related Trusts.

 

“Permitted
Indebtedness” means, without duplication, each of the following:

 

(1)      Indebtedness
under the Notes issued in the offering or in the Exchange Offer in an aggregate
outstanding principal amount not to exceed $105.0 million and the related
Guarantees;

 

(2)      Indebtedness
incurred pursuant to the Credit Agreement in an aggregate principal amount at
any time outstanding not to exceed $20.0 million as such amount may be reduced
from time to

 

17

 

time as a result of permanent reductions of the revolving commitments
thereunder as provided in Section 4.11;

 

(3)      other
Indebtedness of the Company and its Restricted Subsidiaries outstanding on the
Issue Date;

 

(4)      Interest
Swap Obligations of the Company or any Restricted Subsidiary of the Company
covering Indebtedness of the Company or any of its Restricted Subsidiaries that
are entered into for the purpose of fixing or hedging interest rates with
respect to any fixed or variable rate Indebtedness that is permitted by this
Indenture to be outstanding; provided, that
the notional amount of any such Interest Swap Obligation does not exceed the
principal amount of Indebtedness to which such Interest Swap Obligation
relates;

 

(5)      Indebtedness
under Currency Agreements and Commodity Agreements, in each case arising in the
ordinary course of business of the Company and its Restricted Subsidiaries; provided that in the case of Currency Agreements which
relate to Indebtedness, such Currency Agreements do not increase the
Indebtedness of the Company and its Restricted Subsidiaries outstanding other
than as a result of fluctuations in foreign currency exchange rates or by
reason of fees, indemnities and compensation payable thereunder;

 

(6)      Intercompany
Indebtedness of (a) the Company or a Guarantor for so long as such Indebtedness
is held by the Company or a Guarantor and (b) any Foreign Restricted Subsidiary
for so long as such Indebtedness is held by (i) the Company or any Guarantor
and is permitted to be made by the Company or such Guarantor in such Foreign
Restricted Subsidiary pursuant to (A) clause (7), (8), (14)(a) or (17) of the
definition of the term “Permitted Investment” or (B) as a Restricted Payment
pursuant to Section 4.09 or (ii) any other Foreign Restricted Subsidiary; provided that if as of any date any Person
other than the Company or a Guarantor owns or holds any such Indebtedness or
holds a Lien in respect of such Indebtedness, such date shall be deemed the
incurrence of Indebtedness not constituting Permitted Indebtedness under this
clause (6) by the issuer of such Indebtedness;

 

(7)      Indebtedness
arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument inadvertently (except in the case of daylight
overdrafts) drawn against insufficient funds in the ordinary course of
business; provided, however, that such
Indebtedness is extinguished within five Business Days of incurrence;

 

(8)      Indebtedness
of the Company or any of its Restricted Subsidiaries represented by letters of
credit, surety bonds, insurance obligations or other similar bonds for the
account of the Company or such Restricted Subsidiary, as the case may be, in
order to provide security for workers’ compensation claims, payment obligations
in connection with self-insurance or similar requirements in the ordinary
course of business;

 

(9)      obligations
in respect of performance, bid and surety bonds and completion guarantees
provided by the Company or any Restricted Subsidiary in the ordinary course of
business;

 

(10)    Indebtedness
represented by Capitalized Lease Obligations and Purchase Money Indebtedness of
the Company and its Restricted Subsidiaries incurred in the ordinary course of
business (including Refinancings thereof that do not result in an increase in
the aggregate principal amount of Indebtedness of such Person as of the date of
such proposed Refinancing (plus the amount of any premium required to be paid
under the terms of the instrument governing such Indebtedness and plus the
amount of reasonable expenses incurred by the Company in connection with such
Refinancing)) not to exceed $5.0 million at any time outstanding;

 

18

 

(11)    Refinancing
Indebtedness;

 

(12)    Indebtedness
of Foreign Restricted Subsidiaries of the Company organized under the laws of
Canada or any Province thereof, the aggregate principal amount of which
Indebtedness outstanding at any time in reliance of this clause (12) does not
exceed, as to all such Foreign Restricted Subsidiaries, $5.0 million, plus the
amount by which the U.S. dollar equivalent of the principal amount of such
Indebtedness exceeds $5.0 million as a result of currency fluctuations;

 

(13)    Indebtedness
represented by guarantees by the Company or a Restricted Subsidiary of
Indebtedness incurred by the Company or a Restricted Subsidiary so long as the
incurrence of such Indebtedness by the Company or any such Restricted
Subsidiary is otherwise permitted by the terms of this Indenture;

 

(14)    Indebtedness
arising from agreements of the Company or a Subsidiary providing for
indemnification, adjustment of purchase price or similar obligations, in each
case, incurred in connection with the disposition of any business, assets or
Subsidiary, other than guarantees of Indebtedness incurred by any Person
acquiring all or any portion of such business, assets or Subsidiary for the
purpose of financing such acquisition; provided that
the maximum aggregate liability in respect of all such Indebtedness shall at no
time exceed the gross proceeds actually received by the Company and the
Subsidiary in connection with such disposition;

 

(15)    Indebtedness
of the Company or any of its Restricted Subsidiaries to the extent the net
proceeds thereof are promptly used to redeem the Notes in full or deposited to
defease or discharge the Notes, in each case, in accordance with this
Indenture;

 

(16)    Indebtedness
of Foreign Restricted Subsidiaries of the Company, the aggregate principal
amount of which Indebtedness outstanding at any time in reliance of this clause
(16) does not exceed, as to all such Foreign Restricted Subsidiaries, $2.5
million, plus the amount by which the U.S. dollar equivalent of the principal
amount of such Indebtedness exceeds $2.5 million as a result of currency
fluctuations; and

 

(17)    additional
Indebtedness of the Company and its Restricted Subsidiaries in an aggregate
principal amount not to exceed $5.0 million at any time outstanding (which
amount may, but need not, be incurred in whole or in part under the Credit
Agreement).

 

For purposes of determining
compliance with Section 4.08, (a) the outstanding principal amount of any item
of Indebtedness shall be counted only once and (b) in the event that an item of
Indebtedness meets the criteria of more than one of the categories of Permitted
Indebtedness described in clauses (1) through (17) above or is entitled to be
incurred pursuant to the Consolidated Fixed Charge Coverage Ratio provisions of
such covenant, the Company shall be entitled, in its sole discretion, to
classify (or later reclassify) such item of Indebtedness in any manner that
complies with Section 4.08.

 

“Permitted Investments” means:

 

(1)      Investments
by the Company or any Restricted Subsidiary of the Company in any Person that
is or will become immediately after such Investment a Guarantor or that will
merge or consolidate with or into the Company or a Guarantor, or that transfers
or conveys all or substantially all of its assets to the Company or a
Guarantor;

 

(2)      Investments
in the Company by any Restricted Subsidiary of the Company; provided that any Indebtedness evidencing such Investment is
unsecured and subordinated, pursuant to a written agreement, to the Company’s
Obligations under the Notes and this Indenture;

 

19

 

(3)      Investments
in cash and Cash Equivalents;

 

(4)      Currency
Agreements, Commodity Agreements and Interest Swap Obligations, in each case,
entered into (a) in the ordinary course of the Company’s or its Restricted
Subsidiaries’ businesses, (b) not for speculative purposes and (c) otherwise in
compliance with this Indenture;

 

(5)      Investments
in the Notes;

 

(6)      Investments
in securities of trade creditors or customers received pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of such
trade creditors or customers in exchange for claims against such trade
creditors or customers;

 

(7)      Investments
in Foreign Restricted Subsidiaries of the Company organized under the laws of
Canada or any Province thereof by the Company or any Domestic Restricted
Subsidiary; provided that the
aggregate amount of such Investments outstanding at any time in reliance of
this clause (7) (after giving effect to any such Investments or any portions
thereof that are returned to the Company or any Domestic Restricted Subsidiary
in cash on or prior to the date of such calculation) shall not exceed $2.5
million;

 

(8)      Investments
in Foreign Restricted Subsidiaries of the Company organized under the laws of
Canada or any Province thereof by the Company or any Domestic Restricted
Subsidiary; provided that (a) the
aggregate amount of such Investments outstanding at any time in reliance of
this clause (8) (after giving effect to any such Investments or any portions
thereof that are returned to the Company or any Domestic Restricted Subsidiary
in cash on or prior to the date of such calculation) shall not exceed 5% of the
Consolidated Net Tangible Assets of the Company and its Restricted
Subsidiaries, (b) each such Investment is used by each such Foreign Restricted
Subsidiary (i) for working capital purposes or (ii) substantially
contemporaneous with its receipt thereof to purchase all or substantially all
of the assets of, or all of the Capital Stock of, any Person (other than a
Restricted Subsidiary of the Company) engaged in a Permitted Business primarily
in Canada (including by means of a merger, consolidation or other business
combination permitted under this Indenture), which Person shall become a
Foreign Restricted Subsidiary of the Company in the case of where such purchase
is of all of the Capital Stock of such Person and (c) any such Investment made
in reliance upon this clause (8) may continue to be maintained notwithstanding
that such Investment if made thereafter would not comply with the requirements
of this clause (8);

 

(9)      Investments
made by the Company or its Restricted Subsidiaries as a result of consideration
received in connection with an Asset Sale made in compliance with Section 4.11;

 

(10)    Investments
in existence on the Issue Date;

 

(11)    loans
and advances, including advances for travel and moving expenses, to employees,
officers, directors of the Company or any Restricted Subsidiary of the Company
in the ordinary course of business for bona fide business purposes not in
excess of $1.0 million at any one time outstanding;

 

(12)    advances
to suppliers and customers in the ordinary course of business;

 

(13)    receivables
owing to the Company or any Restricted Subsidiary if created or acquired in the
ordinary course of business and payable or dischargeable in accordance with
customary trade terms as the Company or such Restricted Subsidiary deems
reasonable under the circumstances;

 

20

 

(14)    Investments
in Foreign Restricted Subsidiaries of the Company by (a) the Company or any
Domestic Restricted Subsidiary; provided
that the aggregate amount of such Investments outstanding at any time in
reliance of this clause (14)(a) (after giving effect to any such Investments or
any portions thereof that are returned to the Company or any Domestic
Restricted Subsidiary in cash on or prior to the date of such calculation)
shall not exceed $2.5 million and (b) any other Foreign Restricted Subsidiary
of the Company;

 

(15)    payroll, travel and similar advances to cover matters that are expected
at the time of the advances ultimately to be treated as expenses for accounting
purposes and that are made in the ordinary course of business and consistent
with past practice;

 

(16)    Investments consisting of prepaid expenses, negotiable instruments held
for collection and lease, utility and workers’ compensation, performance and
other similar deposits made in the ordinary course of business and consistent
with past practice; and

 

(17)    additional
Investments (including Investments in any Foreign Restricted Subsidiary or
Foreign Restricted Subsidiaries) in an aggregate amount not to exceed $5.0
million at any time outstanding.

 

“Permitted Liens” means the following types of
Liens:

 

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

 

(2)      statutory
Liens of landlords and Liens of carriers, warehousemen, mechanics, suppliers,
materialmen, repairmen and other Liens imposed by law or pursuant to customary
reservations or retentions of title incurred in the ordinary course of business
for sums not yet delinquent or being contested in good faith, if such reserve
or other appropriate provision, if any, as shall be required by GAAP shall have
been made in respect thereof;

 

(3)      Liens
incurred or deposits made in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other types of social
security, including any Lien securing letters of credit issued in the ordinary
course of business consistent with past practice in connection therewith, or to
secure the performance of tenders, statutory obligations, surety and appeal
bonds, bids, leases, government contracts, performance and return-of-money
bonds and other similar obligations (exclusive of obligations for the payment
of borrowed money);

 

(4)      any
judgment Lien not giving rise to an Event of Default;

 

(5)      easements,
rights-of-way, zoning restrictions and other similar charges or encumbrances in
respect of real property not interfering in any material respect with the
ordinary conduct of the business of the Company or any of its Restricted Subsidiaries;

 

(6)      any
interest or title of a lessor under any Capitalized Lease Obligation permitted
pursuant to clause (10) of the definition of “Permitted Indebtedness;” provided that such Liens do not extend to any property or
assets which is not leased property subject to such Capitalized Lease
Obligation;

 

(7)      Liens
securing Purchase Money Indebtedness permitted pursuant to clause (10) of the
definition of “Permitted Indebtedness;” provided, however,
that (a) the Indebtedness shall not exceed the cost of the property or assets
acquired, together, in the case of real property, with the cost

 

21

 

of the construction thereof and improvements thereto, and shall not be
secured by a Lien on any property or assets of the Company or any Restricted
Subsidiary of the Company other than such property or assets so acquired or
constructed and improvements thereto and (b) the Lien securing such
Indebtedness shall be created within 180 days of such acquisition or
construction or, in the case of a refinancing of any Purchase Money
Indebtedness, within 180 days of such refinancing;

 

(8)      Liens
upon specific items of inventory or other goods and proceeds of any Person
securing such Person’s obligations in respect of bankers’ acceptances issued or
created for the account of such Person to facilitate the purchase, shipment or
storage of such inventory or other goods;

 

(9)      Liens
securing reimbursement obligations with respect to commercial letters of credit
which encumber documents and other property relating to such letters of credit
and products and proceeds thereof;

 

(10)    Liens
encumbering deposits made to secure obligations arising from statutory,
regulatory, contractual, or warranty requirements of the Company or any of its
Restricted Subsidiaries, including rights of offset and set-off;

 

(11)    Liens
securing Interest Swap Obligations which Interest Swap Obligations relate to
Indebtedness that is otherwise permitted under this Indenture;

 

(12)    Liens
securing Indebtedness under Currency Agreements and Commodity Agreements, in
each case, that are permitted under this Indenture;

 

(13)    Liens
securing Acquired Indebtedness incurred in accordance with Section 4.08; provided that:

 

(A)          such Liens secured such
Acquired Indebtedness at the time of and prior to the incurrence of such
Acquired Indebtedness by the Company or a Restricted Subsidiary of the Company
and were not granted in connection with, or in anticipation of, the incurrence
of such Acquired Indebtedness by the Company or a Restricted Subsidiary of the
Company; and

 

(B)           such Liens do not
extend to or cover any property or assets of the Company or of any of its
Restricted Subsidiaries other than the property or assets that secured the
Acquired Indebtedness prior to the time such Indebtedness became Acquired
Indebtedness of the Company or a Restricted Subsidiary of the Company and are
no more favorable to the lienholders than those securing the Acquired
Indebtedness prior to the incurrence of such Acquired Indebtedness by the
Company or a Restricted Subsidiary of the Company;

 

(14)    Liens
existing as of the Issue Date and securing Indebtedness permitted to be
outstanding under clause (3) of the definition of the term “Permitted
Indebtedness” to the extent and in the manner such Liens are in effect on the
Issue Date;

 

(15)    Liens
securing the Notes and all other monetary obligations under this Indenture and
the Guarantees;

 

(16)    Liens
securing Indebtedness under the Credit Agreement to the extent such
Indebtedness is permitted under clause (2) or (17) of the definition of the
term “Permitted Indebtedness;” provided, that
any such Liens on Priority Collateral are contractually subordinated to the
Liens described in clause (15) above pursuant to the Senior Intercreditor
Agreement;

 

22

 

(17)    Liens
securing Refinancing Indebtedness which is incurred to Refinance any
Indebtedness which has been secured by a Lien permitted under this paragraph
and which has been incurred in accordance with Section 4.08 or clause
(1), (3) or (11) of the definition of the term “Permitted Indebtedness;” provided, however, that
such Liens: (i) are no less favorable to the Holders and are not more favorable
to the lienholders with respect to such Liens than the Liens in respect of the
Indebtedness being Refinanced; and (ii) do not extend to or cover any property
or assets of the Company or any of its Restricted Subsidiaries not securing the
Indebtedness so Refinanced;

 

(18)    Liens
incurred in the ordinary course of business of the Company or any of its
Restricted Subsidiaries securing Obligations (other than Obligations under the
Credit Agreement) that do not exceed $2.0 million at any time outstanding;

 

(19)    Liens
securing Indebtedness which is contractually subordinated to the Notes and
which is incurred in accordance with Section 4.08 (including Indebtedness
constituting Permitted Indebtedness);
provided that (i) such Liens are contractually subordinated pursuant
to the Subordinated Intercreditor Agreement to the Liens described in clause
(15) above and (ii) such Indebtedness is not incurred under the Credit
Agreement;

 

(20)    leases
or subleases granted to Persons other than the Company or any of its Restricted
Subsidiaries in the ordinary course of business, and not materially interfering
with the ordinary course of business of the Company or any of its Restricted
Subsidiaries;

 

(21)    Liens
under licensing agreements entered into in the ordinary course of business by
the Company of any of its Restricted Subsidiaries for the use by the Company or
any such Restricted Subsidiary of intellectual property;

 

(22)    Liens
arising out of conditional sale, title retention, consignment or similar
arrangements for the sale of goods entered into by the Company or any of its
Restricted Subsidiaries in the ordinary course of business; provided that such Liens do not extend to or cover any
property or assets of the Company or any of its Restricted Subsidiaries other
than the goods that are the subject of any such conditional sale, title
retention, consignment or similar arrangement;

 

(23)    Liens
securing Indebtedness of Foreign Restricted Subsidiaries to the extent such
Indebtedness is (i) permitted under clause (12), (16) or (17) of the definition
of “Permitted Indebtedness” or (ii) permitted to be incurred under Section
4.08 (other than as Permitted Indebtedness); provided,
however, that no asset of the Company or
any Domestic Restricted Subsidiary shall be subject to any such Lien; and

 

(24)    Liens
in favor of the Company or any of its Domestic Restricted Subsidiaries.

 

“Person”
means an individual, partnership, corporation, limited liability company,
unincorporated organization, trust or joint venture, or a governmental agency
or political subdivision thereof.

 

“Physical Notes”
has the meaning set forth in Section 2.14.

 

“Preferred
Stock” of any Person means any Capital Stock of such Person that has
preferential rights to any other Capital Stock of such Person with respect to
dividends or redemptions or upon liquidation.

 

“Premises”
has the meaning set forth in Section 4.18.

 

23

 

“principal”
of any Indebtedness (including the Notes) means the principal amount of such
Indebtedness plus the premium, if any, on such Indebtedness.

 

“Priority Collateral” means all Collateral other than “Working
Capital Collateral” as defined in the Senior Intercreditor Agreement as in
effect on the Issue Date.

 

“Private
Placement Legend” means the legend set forth on the Initial Notes in the
form set forth in Exhibit A.

 

“pro forma”
means, with respect to any calculation made or required to be made pursuant to
the terms of this Indenture, a calculation made substantially in accordance
with Article 11 of Regulation S-X under the Securities Act, as determined by
the Board of Directors of the Company in consultation with its independent
public accountants.

 

“Public
Equity Offering” means an underwritten public offering of Common Stock of
the Company or any holding company of the Company pursuant to a registration
statement filed with the SEC (other than on Form S-8).

 

“Purchase Money
Indebtedness” means Indebtedness of the Company and its Restricted
Subsidiaries incurred for the purpose of financing all or any part of the
purchase price, or the cost of installation, construction or improvement, of
property or equipment, provided, that the aggregate principal amount of
such Indebtedness does not exceed the lesser of the Fair Market Value of such
property or such purchase price or cost.

 

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

 

“QIB Global
Notes” has the meaning set forth in Section 2.01.

 

“Qualified
Capital Stock” means any Capital Stock that is not Disqualified Capital
Stock.

 

“Record Date”
means any of the Record Dates specified in the Notes, whether or not a Legal
Holiday.

 

“Redemption
Date” means, when used with respect to any Note to be redeemed, the price
fixed for redemption pursuant to this Indenture and the Notes.

 

“Redemption
Price” means, when used with respect to any Note to be redeemed, the price
fixed for redemption pursuant to this Indenture and the Notes.

 

“Reference Date” has the meaning set forth in Section 4.09.

 

“Reference
Treasury Dealer” means any
primary U.S. government securities dealer in the City of New York selected by
the Company.

 

“Reference
Treasury Dealer Quotation”
means, with respect to each Reference Treasury Dealer and any Redemption Date,
the average, as determined by the Company, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Company by such Reference Treasury
Dealer at 5:00 p.m. on the third Business Day preceding such Redemption Date.

 

24

 

“Refinance” means, in respect of any security or Indebtedness,
to refinance, extend, renew, refund, repay, prepay, redeem, defease or retire,
or to issue a security or Indebtedness in exchange or replacement for, such
security or Indebtedness in whole or in part. 
“Refinanced” and “Refinancing” shall have correlative meanings.

 

“Refinancing
Indebtedness” means any Refinancing by the Company or any Restricted
Subsidiary of the Company of Indebtedness incurred in accordance with Section
4.08; (other than pursuant to Permitted Indebtedness) or clauses (1), (3) or
(11) of the definition of Permitted Indebtedness, in each case that does not:

 

(1)      have
an aggregate principal amount (or, if such Indebtedness is issued with original
issue discount, an aggregate offering price) greater than the sum of (x) the
aggregate principal amount of the Indebtedness being Refinanced (or, if such
Indebtedness being Refinanced is issued with original issue discount, the
aggregate accreted value) as of the date of such proposed Refinancing plus (y)
the amount of fees, expenses, premium, defeasance costs and accrued but unpaid
interest relating to the Refinancing of such Indebtedness being Refinanced;

 

(2)      create
Indebtedness with: (a) a Weighted Average Life to Maturity that is less than
the Weighted Average Life to Maturity of the Indebtedness being Refinanced; or
(b) a final maturity earlier than the final maturity of the Indebtedness being
Refinanced; or

 

(3)      affect
the security, if any, for such Refinancing Indebtedness (except to the extent
that less security is granted to holders of such Refinancing Indebtedness);

 

If such Indebtedness being Refinanced is
subordinate or junior by its terms to the Notes, then such Refinancing
Indebtedness shall be subordinate by its terms to the Notes at least to the
same extent and in the same manner as the Indebtedness being Refinanced.

 

“Register”
has the meaning set forth in Section 2.03.

 

“Registrar”
has the meaning set forth in Section 2.03.

 

“Registration
Rights Agreement” means the
Registration Rights Agreement, dated as of the Issue Date, between the
Surviving Corporation, the Guarantors and the Initial Purchaser, as the same
may be amended or modified from time to time in accordance with the terms
thereof.

 

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

 

“Regulation S
Permanent Global Note” means a permanent Global Note 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 Regulation S
Temporary Global Note upon expiration of the Restricted Period.

 

“Regulation S
Temporary Global Note” means a temporary Global Note 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 Initial
Notes or Additional Notes initially sold in reliance on Rule 903 of Regulation
S.

 

“Restricted
Payment” has the meaning set forth in Section 4.09.

 

25

 

“Restricted Period”
means the 40-day distribution compliance period as defined in Regulation S.

 

“Restricted
Security” has the meaning assigned to such term in Rule 144(a)(3) under the
Securities Act; provided that the Trustee shall be entitled to
conclusively rely on an Opinion of Counsel with respect to whether any Note
constitutes a Restricted Security.

 

“Restricted
Subsidiary” of any Person means any Subsidiary of such Person which at the
time of determination is not an Unrestricted Subsidiary.

 

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

 

“S&P”
means Standard & Poor’s Ratings Group.

 

“SEC” means
the Securities and Exchange Commission.

 

“Secured
Parties” has the meaning set forth in the Security Agreement.

 

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations of
the SEC promulgated thereunder.

 

“Security
Agreement” means the Security Agreement, dated as of the Issue Date, made
by the Company and the Guarantors in favor of the Collateral Agent, as amended
or supplemented from time to time in accordance with its terms.

 

“Senior Intercreditor Agreement” means the intercreditor
agreement among the Administrative Agent, the Trustee, the Collateral Agent,
the Company and the Subsidiary Guarantors, dated as of the Issue Date, as the
same may be amended, supplemented or modified from time to time.

 

“Significant
Subsidiary” with respect to any Person, means any Restricted Subsidiary of
such Person that satisfies the criteria for a “significant subsidiary” set
forth in Rule 1-02(w) of Regulation S-X under the Exchange Act.

 

“Subordinated Intercreditor Agreement” means the intercreditor
and subordination agreement among the Administrative Agent, the Trustee, the
Collateral Agent, the Junior Lien Collateral Agent and/or the holders of Junior
Lien Debt, the Company and the Subsidiary Guarantors, substantially in the form
of Exhibit G, as the same may be amended, supplemented or modified from time to
time.

 

“Subsidiary”
with respect to any Person, means:

 

(1) any corporation of which the outstanding
Capital Stock having at least a majority of the votes entitled to be cast in
the election of directors under ordinary circumstances shall at the time be
owned, directly or indirectly, by such Person; or

 

(2) any other Person of which at least a
majority of the voting interest under ordinary circumstances is at the time,
directly or indirectly, owned by such Person.

 

“Surviving
Corporation” has the meaning set forth in the preamble to this Indenture.

 

“Surviving
Entity” shall have the meaning set forth in Section 5.01.

 

26

 

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

 

“Transactions” has the meaning specified thereof in the Offering
Circular.

 

“Treasury
Rate” means, with
respect to any redemption date, the rate per annum equal to the semi-annual
equivalent yield to maturity of the Comparable Treasury Issue, assuming a price
for the Comparable Treasury Issue (expressed as a percentage of its principal
amount) equal to the Comparable Treasury Price for such redemption period.

 

“Trust Officer”
means, when used with respect to the Trustee, any officer within the corporate
trust department of the Trustee, including any vice president, assistant vice
president, assistant secretary, assistant treasurer, trust officer or any other
officer of the Trustee who customarily performs functions similar to those
performed by the Persons who at the time shall be such officers, respectively,
or to whom any corporate trust matter is referred because of such person’s
knowledge of and familiarity with the particular subject and who shall have
direct responsibility for the administration of this Indenture.

 

“Trustee”
means the party named as such in this Indenture until a successor replaces it
in accordance with the provisions of this Indenture and thereafter means such
successor.

 

“Unrestricted
Subsidiary” of any Person means:

 

(1)      any
Subsidiary of such Person that at the time of determination shall be or
continue to be designated an Unrestricted Subsidiary by the Board of Directors
of such Person in the manner provided below; and

 

(2)      any
Subsidiary of an Unrestricted Subsidiary.

 

The Board of Directors of the
Company may designate any Subsidiary (including any newly acquired or newly
formed Subsidiary) to be an Unrestricted Subsidiary unless such Subsidiary owns
any Capital Stock of, or owns or holds any Lien on any property of, the Company
or any other Subsidiary of the Company that is not a Subsidiary of the
Subsidiary to be so designated, provided that:

 

(1)      the
Company certifies to the Trustee that such designation complies with Section
4.09; and

 

(2)      each
Subsidiary to be so designated and each of its Subsidiaries has not at the time
of designation, and does not thereafter, create, incur, issue, assume,
guarantee or otherwise become directly or indirectly liable with respect to any
Indebtedness pursuant to which the lender has recourse to any of the assets of
the Company or any of its Restricted Subsidiaries.

 

The Board of Directors of the
Company may designate any Unrestricted Subsidiary to be a Restricted Subsidiary
only if:

 

(1)      immediately
after giving effect to such designation, the Company is able to incur at least
$1.00 of additional Indebtedness (other than Permitted Indebtedness) in
compliance with the Section 4.08; and

 

(2)      immediately
before and immediately after giving effect to such designation, no Default or
Event of Default shall have occurred and be continuing.

 

27

 

Any such designation by the
Board of Directors shall be evidenced to the Trustee by promptly filing with
the Trustee a copy of the Board Resolution giving effect to such designation
and an Officers’ Certificate certifying that such designation complied with the
foregoing provisions.

 

 “U.S. Government Obligations” means
direct obligations of, and obligations guaranteed by, the United States of
America for the payment of which the full faith and credit of the United States
of America is pledged.

 

“U.S. Legal
Tender” means such coin or currency of the United States which, as at the
time of payment, shall be immediately available legal tender for the payment of
public and private debts.

 

“U.S. Person”
means a Person who is a U.S. person as defined in Regulation S.

 

“Voting Stock”
means, with respect to any Person, securities of any class or classes of
Capital Stock of such Person entitling the holders thereof (whether at all
times or only so long as no senior class of stock has voting power by reason of
any contingency) to vote in the election of members of the Board of Directors
(or equivalent governing body) 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 then outstanding
aggregate principal amount of such Indebtedness into (2) the sum of the total
of the products obtained by multiplying:

 

(A)    the amount of each then
remaining installment, sinking fund, serial maturity or other required payment
of principal, including payment at final maturity, in respect thereof, by

 

(B)    the number of years
(calculated to the nearest one-twelfth) which will elapse between such date and
the making of such payment.

 

“Wholly-Owned
Restricted Subsidiary” of any Person means any Restricted Subsidiary of
such Person of which all the outstanding Capital Stock (other than in the case
of a Foreign Restricted Subsidiary, directors’ qualifying shares or an
immaterial amount of shares required to be owned by other Persons pursuant to
applicable law) are owned by such Person or any Wholly Owned Restricted
Subsidiary of such Person.

 

SECTION
1.02.  Incorporation by Reference of Trust
Indenture Act.

 

Whenever this
Indenture refers to a provision of the TIA, such provision is incorporated by
reference in, and made a part of, this Indenture.  The following TIA terms used in this
Indenture have the following meanings:

 

“indenture
securities” means the Notes.

 

“indenture
security holder” means a Holder.

 

“indenture to
be qualified” means this Indenture.

 

“indenture
trustee” or “institutional trustee” means the Trustee.

 

“obligor”
on the indenture securities means each of the Company or any other obligor on
the Notes.

 

28

 

All other TIA
terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule and not otherwise defined
herein have the meanings assigned to them therein.

 

SECTION
1.03.  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 GAAP;

 

(3)           “or” is not exclusive;

 

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

 

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

 

(6)           when the words “includes”
or “including” are used herein, they shall be deemed to be followed by the
words “without limitation”;

 

(7)           all references to
Sections or Articles refer to Sections or Articles of this Indenture unless
otherwise indicated; and

 

(8)           unless otherwise
defined or the context otherwise requires, terms for which meanings are
provided in this Indenture shall have such meanings when used in each other
Indenture Document.

 

ARTICLE TWO

THE NOTES

 

SECTION
2.01.  Form and Dating.

 

The Initial Notes
and the Additional Notes and the Trustee’s certificate of authentication
thereon shall be substantially in the form of Exhibit A hereto (“Global
Notes”).  The Exchange Notes and the
Trustee’s certificate of authentication thereon shall be substantially in the
form of Exhibit B hereto.  The Notes may
have notations, legends or endorsements required by law, stock exchange rule or
DTC rule or usage.  The Company and the
Trustee shall approve the form of the Notes and any notation, legend or
endorsement on them.  Each Note shall be
dated the date of its authentication.

 

The terms and
provisions contained in the forms of the Notes annexed hereto as Exhibit A
and Exhibit B shall constitute, and are hereby expressly made, a part of
this Indenture and, to the extent applicable, the Company, the Guarantors and
the Trustee, by their execution and delivery of this Indenture, expressly agree
to such terms and provisions and to be bound thereby.

 

Notes originally
sold to QIBs shall be issued initially in the form of one or more permanent global
notes in registered form, substantially in the form set forth in Exhibit A
(the “QIB Global Notes”), deposited with the Trustee, as custodian for
DTC, duly executed by the Company and authenticated by the Trustee as
hereinafter provided and shall bear the legend set forth in Exhibit C.

 

Notes offered and
sold to Institutional Accredited Investors as defined in Rule 501(a)(1), (2),
(3) or (7) under the Securities Act shall be issued initially in the form of
one or more permanent global notes in registered form, substantially in the
form set forth in Exhibit A (the “IAI Global Notes”), deposited

 

29

 

with the Trustee, as custodian
for DTC, duly executed by the Company and authenticated by the Trustee as hereinafter
provided and shall bear the legend set forth in Exhibit C.

 

Notes offered and
sold in offshore transactions in reliance on Regulation S shall be issued
initially in the form of one or more Regulation S Temporary Global Notes
deposited with the Trustee, as custodian for the Depository, and registered in
the name of the Depository or the nominee of the Depository for the accounts of
designated agents holding on behalf of Euroclear or Clearstream, duly executed
by the Company and authenticated by the Trustee as hereinafter provided and
shall bear the legend set forth in Exhibit C.

 

Following the
termination of the Restricted Period, beneficial interests in a
Regulation S Temporary Global Note will be exchanged for beneficial
interests in a Regulation S Permanent Global Note pursuant to the
Applicable Procedures.  Simultaneously
with the authentication of a Regulation S Permanent Global Note, the
Trustee will cancel the related Regulation S Temporary Global Note.

 

The provisions of
the “Operating Procedures of the Euroclear System” and “Terms and Conditions
Governing Use of Euroclear” and the “General Terms and Conditions of
Clearstream Banking” and “Customer Handbook” of Clearstream will be applicable
to transfers of beneficial interests in the Regulation S Temporary Global
Note and the Regulation S Permanent Global Note that are held by
participants through Euroclear or Clearstream.

 

The aggregate
principal amount of any Global Note may from time to time be increased or
decreased by adjustments made on the records of the Trustee, as custodian for
DTC, as hereinafter provided.

 

The definitive
Notes shall be typed, printed, lithographed or engraved or produced by any
combination of these methods or may be produced in any other manner permitted
by the rules of any securities exchange on which the Notes may be listed, all
as determined by the Officer executing such Notes, as evidenced by their
execution of such Notes.

 

SECTION
2.02.  Execution and Authentication; Additional
Notes; Aggregate Principal Amount.

 

An Officer (who
shall have been duly authorized by all requisite corporate action) shall sign
the Notes for the Company by manual or facsimile signature.

 

If an Officer
whose signature is on a Note was an Officer at the time of such execution but
no longer holds that office or position at the time the Trustee authenticates
the Note, the Note shall nevertheless be valid.

 

A Note shall not
be valid until an authorized signatory of the Trustee manually signs the
certificate of authentication on the Note. 
The signature shall be conclusive evidence that the Note has been
authenticated under this Indenture.

 

The Company may,
subject to compliance with Section 4.08 hereof, issue Additional Notes
in an unlimited amount under this Indenture.

 

The Trustee shall
authenticate (i) Initial Notes for original issue in the aggregate
principal amount not to exceed $105.0 million, (ii) Exchange Notes from time to
time for issue only in exchange for a like principal amount at maturity of
Initial Notes, and (iii) one or more series of Additional Notes in each case
upon written orders of the Company in the form of an Officers’ Certificate,
which Officers’ Certificate shall, in the case of any issuance of Additional
Notes, certify that such issuance is in compliance with

 

30

 

Section 4.08.  In addition, each Officers’ Certificate shall
specify the amount of Notes to be authenticated and the date on which the Notes
are to be authenticated, whether the Notes are to be Initial Notes, Exchange
Notes or Additional Notes.  All Notes
issued under this Indenture shall vote and consent together on all matters as
one class and no series of Notes shall have the right to vote or consent as a
separate class on any matter.

 

The Trustee may
appoint an authenticating agent (the “Authenticating Agent”) reasonably
acceptable to the Company to authenticate Notes.  Unless otherwise provided in the appointment,
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 Authenticating
Agent.  An Authenticating Agent has the
same rights as an Agent to deal with the Company and Affiliates of the Company.

 

The Notes shall be
issuable in fully registered form only, without coupons, in denominations of
$1,000 in principal amount and any integral multiple thereof.

 

SECTION
2.03.  Registrar and Paying Agent.

 

The Company shall
maintain an office or agency which shall initially be the office of the Trustee
in the Borough of Manhattan, The City of New York, where (a) Notes may be
presented or surrendered for registration of transfer or for exchange (the “Registrar”),
(b) Notes may be presented or surrendered for payment (the “Paying
Agent”) and (c) notices and demands to or upon the Company in respect
of the Notes and this Indenture may be served. 
The Registrar shall keep a register of the Notes and of their transfer
and exchange (the “Register”). 
The Company, upon prior written notice to the Trustee, may have one or
more co-Registrars and one or more additional Paying Agents reasonably
acceptable to the Trustee.  The term “Paying
Agent” includes any additional Paying Agent. 
Neither the Company nor any Affiliate of the Company may act as Paying
Agent.

 

The Company shall
enter into an appropriate agency agreement with any Agent not a party to this
Indenture, which agreement shall incorporate the provisions of the TIA and
implement the provisions of this Indenture that relate to such Agent.  The Company shall notify the Trustee in
writing, in advance, of the name and address of any such Agent and otherwise be
reasonably satisfactory to the Trustee. 
If the Company fails to maintain a Registrar or Paying Agent, or fails
to give the foregoing notice, the Trustee shall act as such.

 

The Company
initially appoints the Trustee as Registrar, Paying Agent and agent for service
of demands and notices in connection with the Notes.  The Paying Agent or Registrar may resign upon
thirty (30) days’ written notice to the Company.

 

SECTION
2.04.  Obligations of Paying Agent.

 

The Company shall
require each Paying Agent other than the Trustee to agree in writing that such
Paying Agent shall hold separate and apart from, and not commingle with any
other properties, for the benefit of the Holders or the Trustee, all assets
held by the Paying Agent for the payment of principal of, or interest or
Additional Interest, if any, on, the Notes (whether such assets have been
distributed to it by the Company or any other obligor on the Notes), and the
Company and the Paying Agent shall notify the Trustee in writing of any Default
by the Company (or any other obligor on the Notes) in making any such
payment.  The Company at any time may
require a Paying Agent to distribute all assets held by it to the Trustee and
account for any assets disbursed and the Trustee may at any time during the
continuance of any payment Default, upon written request to a Paying Agent,
require such Paying Agent to distribute all assets held by it to the Trustee and
to account for any assets distributed. 
Upon receipt by the Trustee of

 

31

 

all assets that shall have been
delivered by the Company to the Paying Agent, the Paying Agent shall have no
further liability for such assets.

 

SECTION
2.05.  Holder Lists.

 

The Trustee shall
preserve in as current a form as is reasonably practicable the most recent list
available to it of the names and addresses of the Holders and shall otherwise
comply with TIA Section 312(a).  If
the Trustee is not the Registrar, the Company shall furnish or cause the
Registrar to furnish to the Trustee before each Record Date and at such other
times as the Trustee may request in writing a list as of such date and in such
form as the Trustee may reasonably request of the names and addresses of the
Holders, which list may be conclusively relied upon by the Trustee.

 

SECTION
2.06.  Transfer and Exchange.

 

Subject to the
provisions of Sections 2.14 and 2.15, when Notes are presented to
the Registrar with a request to register the transfer of such Notes or to
exchange such Notes for an equal principal amount of Notes of other authorized
denominations, the Registrar or co-Registrar shall register the transfer or
make the exchange as requested; provided, however, that the Notes
presented or surrendered for registration of transfer or exchange shall be duly
endorsed or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Registrar or co-Registrar, duly executed by
the Holder thereof or his attorney duly authorized in writing and such other
documents as the Registrar or co-Registrar may reasonably require.  To permit registrations of transfers and
exchanges, the Company shall issue and the Trustee shall authenticate Notes at
the Registrar’s or co-Registrar’s request. 
No service charge shall be made for any registration of transfer or
exchange, but the Company or the Trustee 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 exchanges or transfers pursuant to Section
2.10, 3.06, 4.10, 4.11 or 9.05, in which event
the Company shall be responsible for the payment of such taxes).

 

The Registrar or
co-Registrar shall not be required to register the transfer or exchange of any
Note (i) during a period beginning at the opening of business fifteen (15)
days before the mailing of a notice of redemption of Notes and ending at the
close of business on the day of such mailing and (ii) selected for
redemption in whole or in part pursuant to Article Three, except the
unredeemed portion of any Note being redeemed in part.

 

Any Holder of a
Global Note shall, by acceptance of such Global Note, agree that transfers of
beneficial interests in such Global Note may be effected only through DTC, in
accordance with this Indenture and the Applicable Procedures.

 

SECTION
2.07.  Replacement
Notes.

 

If a mutilated
Note is surrendered to the Trustee or if the Holder of a Note claims in writing
that the Note has been lost, destroyed or wrongfully taken, then, in the
absence of written notice to the Company upon its request or the Trustee that
such Note has been acquired by a protected purchaser, the Company shall issue
and the Trustee shall authenticate a replacement Note of like tenor and
principal amount and bearing a number not contemporaneously outstanding if the
Trustee’s requirements are met.  Except
with respect to mutilated Notes, if required by the Trustee or the Company,
such Holder must provide an affidavit of lost certificate and an indemnity bond
or other indemnity, sufficient in the judgment of both the Company and the
Trustee, to protect the Company, the Trustee or any Agent from any loss which
any of them may suffer if a Note is replaced. 
The Company may charge such Holder for its reasonable out-of-pocket
expenses in replacing a Note, including reasonable fees and expenses of its

 

32

 

counsel and of the Trustee and
its counsel.  In case any mutilated,
lost, destroyed or wrongfully taken Note has become or is about to become due
and payable, the Company in its discretion may pay such Note instead of issuing
a new Note in replacement thereof.  Every
replacement Note shall constitute an additional obligation of the Company,
entitled to the benefits of this Indenture.

 

SECTION
2.08.  Outstanding Notes.

 

Notes outstanding
at any time are all the Notes that have been authenticated by the Trustee
except those cancelled by it, those delivered to it for cancellation and those
described in this Section 2.08 as not outstanding.  Subject to the provisions of Section 2.09,
a Note does not cease to be outstanding because the Company or any of its
Affiliates holds the Note.

 

If a Note is
replaced pursuant to Section 2.07 (other than a mutilated Note
surrendered for replacement), it ceases to be outstanding unless the Trustee
receives proof satisfactory to it that the replaced Note is held by a bona
fide purchaser.  A mutilated Note
ceases to be outstanding upon surrender of such Note and replacement thereof
pursuant to Section 2.07.

 

If on a Redemption
Date or the Maturity Date the Paying Agent holds U.S. Legal Tender or U.S.
Government Obligations sufficient to pay all of the principal and interest and
Additional Interest, if and, due on the Notes payable on that date and is not
prohibited from paying such money to the Holders thereof pursuant to the terms
of this Indenture, then on and after that date such Notes cease to be
outstanding and interest and Additional Interest, if applicable, on them ceases
to accrue.

 

SECTION
2.09.  Treasury
Notes; When Notes Are Disregarded.

 

In determining
whether the Holders of the required principal amount of Notes have concurred in
any direction, waiver, consent or notice, Notes owned by the Company or any of
its Affiliates shall be considered as though they are not outstanding, except
that for the purposes of determining whether the Trustee shall be protected in
relying on any such direction, waiver or consent, only Notes which a Trust
Officer of the Trustee actually knows are so owned shall be so considered.  Notes so owned which have been pledged in
good faith may be regarded as outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such
Notes and that the pledgee is not one of the Company or any other obligor upon
the Notes or any Affiliate of the Company or of such other obligor.

 

SECTION
2.10.  Temporary Notes.

 

Until definitive
Notes are ready for delivery, the Company may prepare and execute and the
Trustee shall authenticate temporary Notes upon receipt of a written order of
the Company in the form of an Officers’ Certificate.  The Officers’ Certificate shall specify the
amount of temporary Notes to be authenticated and the date on which the
temporary Notes are to be authenticated. 
Temporary Notes shall be substantially in the form of definitive Notes
but may have variations that the Company consider appropriate for temporary
Notes.  Without unreasonable delay, the
Company shall prepare and the Trustee shall authenticate upon receipt of a
written order of the Company pursuant to Section 2.02 definitive Notes
in exchange for temporary Notes.  Until
so exchanged, the temporary Notes shall be entitled to the same benefits under
this Indenture as definitive Notes.

 

SECTION
2.11.  Cancellation.

 

The Company at any
time may deliver Notes previously authenticated hereunder which the Company has
acquired in any lawful manner, to the Trustee for cancellation.  The Registrar and the Paying Agent shall
forward to the Trustee any Notes surrendered to them for transfer, exchange or

 

33

 

payment.  The Trustee, or at the direction of the
Trustee, the Registrar or the Paying Agent, and no one else, shall cancel all
Notes surrendered for transfer, exchange, payment or cancellation.  Subject to Section 2.07, the Company
may not issue new Notes to replace Notes that it has paid or delivered to the
Trustee for cancellation.  If the Company
shall acquire any of the Notes, such acquisition shall not operate as a
redemption or satisfaction of the Indebtedness represented by such Notes unless
and until the same are surrendered to the Trustee for cancellation pursuant to
this Section 2.11.  The Trustee
shall dispose of all cancelled Notes in accordance with customary procedures
or, at the written request of the Company, shall return the same to the
Company.

 

SECTION
2.12.  CUSIP Numbers.

 

A “CUSIP”
number shall be printed on the Notes, and the Trustee shall use the CUSIP
number in notices of redemption, purchase or exchange as a convenience to
Holders; provided that any such notice may state that no representation
is made as to the correctness or accuracy of the CUSIP number printed in the
notice or on the Notes and that reliance may be placed only on the other
identification numbers printed on the Notes. 
The Company shall promptly notify the Trustee of any change in the CUSIP
number.

 

SECTION
2.13.  Deposit of Moneys.

 

Prior to 11:00
a.m. New York City time on each Interest Payment Date and the Maturity Date,
the Company shall deposit with the Paying Agent U.S. Legal Tender sufficient to
make cash payments, if any, due on such Interest Payment Date or the Maturity
Date, as the case may be.

 

SECTION
2.14.  Book-Entry Provisions for Global Notes.

 

(a)           The Global
Notes initially shall (i) be registered in the name of DTC or the nominee
of DTC, (ii) be delivered to the Trustee as custodian for DTC and
(iii) bear legends as set forth in Exhibit C.

 

Members of, or
participants in, DTC (“Agent Members”) shall have no rights under this
Indenture with respect to any Global Note held on their behalf by DTC, or the
Trustee as its custodian, or under any Global Note, and DTC may be treated by
the Company, the Trustee and any agent of the Company or the Trustee as the
absolute owner of the Global Note for all purposes whatsoever.  Notwithstanding the foregoing, nothing herein
shall prevent the Company, the Trustee or any agent of the Company or the
Trustee from giving effect to any written certification, proxy or other
authorization furnished by DTC or impair, as between DTC and its Agent Members,
the operation of customary practices governing the exercise of the rights of a
Holder of any Note.

 

(b)           Transfers
of the Global Notes shall be limited to transfers in whole, but not in part, to
DTC, its successors or their respective nominees.  Interests of beneficial owners in the Global
Notes may be transferred or exchanged in accordance with the Applicable
Procedures of DTC and the provisions of Section 2.15; provided, however,
that prior to the expiration of the Restricted Period, transfers of beneficial
interests in the Regulation S Temporary Global Note may not be made to a
U.S. Person or for the account or benefit of a U.S. Person.  In addition, Notes in the form of
certificated Notes in registered form in substantially the form set forth in Exhibit A
hereto (the “Physical Notes”) shall be transferred to all beneficial
owners in exchange for their beneficial interests in the Global Notes if
(i) DTC notifies the Company that it is unwilling or unable to continue as
depository for the Global Notes and a successor Depository is not appointed by
the Company within ninety (90) days of such notice or (ii) an Event of
Default has occurred and is continuing and the Registrar has received a request
from DTC to issue Physical Notes; provided that a beneficial interest in
the Regulation S Temporary Global Note may not be exchanged for a Physical
Note or transferred to a Person who takes delivery thereof in the form of a

 

34

 

Physical Note prior to
(A) the expiration of the Restricted Period and (B) the receipt by
the Registrar of any certificates required pursuant to
Rule 903(b)(3)(ii)(B) under the Securities Act, except in the case of a
transfer pursuant to an exemption from the registration requirements of the
Securities Act other than Rule 903 or Rule 904.

 

(c)           Any
beneficial interest in one of the Global Notes that is transferred to a person
who takes delivery in the form of an interest in another Global Note shall,
upon transfer, cease to be an interest in such Global Note and become a
beneficial interest in such other Global Note and, accordingly, shall
thereafter be subject to all transfer restrictions, if any, and other
procedures applicable to a beneficial interest in such other Global Notes for
as long as it remains such an interest.

 

(d)           In
connection with any transfer or exchange of a portion of the beneficial
interest in the Global Note to beneficial owners pursuant to clause (b)
of this Section 2.14, the Registrar shall (if one or more Physical Notes
are to be issued) reflect on its books and records the date and a decrease in
the principal amount of the Global Note in an amount equal to the principal
amount of the beneficial interest in the Global Note to be transferred, and the
Company shall execute, and the Trustee shall authenticate and deliver, one or
more Physical Notes of like tenor and aggregate principal amount.

 

(e)           In
connection with the transfer of an entire Global Note to beneficial owners
pursuant to clause (b) of this Section 2.14, the Global Notes
shall be deemed to be surrendered to the Trustee for cancellation, and the
Company shall execute, and the Trustee shall authenticate and deliver, to each
beneficial owner identified by DTC in exchange for its beneficial interest in
the Global Notes, an equal aggregate principal amount of Physical Notes of authorized
denominations.

 

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 Physical Notes, the principal amount of Notes
represented by such Global Note shall be reduced accordingly and an endorsement
will be made on such Global Note by the Trustee or by the Depositary at
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 shall be increased accordingly and an endorsement will
made on such Global Notes by the Trustee or by the Depositary at the direction
of the Trustee to reflect such increase.

 

(g)           Any
Physical Note constituting a Restricted Security delivered in exchange for an
interest in the Global Note pursuant to clause (b) or (c) shall,
except as otherwise provided by clauses (a)(i)(x) and (c) of Section
2.15, bear the legend regarding transfer restrictions applicable to the
Physical Notes set forth in Exhibit A.

 

(h)           The Holder
of a Global Note may grant proxies and otherwise authorize any Person,
including Agent Members and Persons that may hold interests through Agent
Members, to take any action which a Holder is entitled to take under this
Indenture or the Notes.

 

SECTION
2.15.  Special
Transfer Provisions.

 

(a)           Transfers
to Non-QIB Institutional Accredited Investors and Non-U.S. Persons.  The following provisions shall apply with
respect to the registration of any proposed transfer of a Note constituting a
Restricted Security to any Institutional Accredited Investor which is not a QIB
or to any Non-U.S. Person:

 

35

 

(i)            the
Registrar shall register the transfer of any Note constituting a Restricted
Security, whether or not such Note bears the Private Placement Legend, if
(x) the requested transfer is after February 1, 2007 or
(y) (1) in the case of a transfer to an Institutional Accredited
Investor which is not a QIB (excluding Non-U.S. Persons), the proposed
transferee has delivered to the Registrar a certificate substantially in the
form of Exhibit D hereto or (2) in the case of a transfer to a
Non-U.S. Person, the proposed transferor has delivered to the Registrar a
certificate substantially in the form of Exhibit E hereto; and

 

(ii)           if the
proposed transferor is an Agent Member holding a beneficial interest in the
Global Note, upon receipt by the Registrar of (x) the certificate, if any,
required by clause (i) above and (y) instructions given in
accordance with the Applicable Procedures and the Registrar’s procedures,

 

whereupon
(1) the Registrar shall reflect on its books and records the date and (if
the transfer does not involve a transfer of outstanding Physical Notes) a
decrease in the principal amount of the Global Note in an amount equal to the
principal amount of the beneficial interest in the Global Note to be
transferred, and (2) the Company shall execute and the Trustee shall
authenticate and deliver one or more Physical Notes of like tenor and principal
amount.

 

(b)           Transfers
to QIBs.  The following provisions
shall apply with respect to the registration of any proposed transfer of a Note
constituting a Restricted Security to a QIB (excluding transfers to Non-U.S.
Persons):

 

(i)            the
Registrar shall register the transfer if such transfer is being made by a
proposed transferor who has checked the box provided for on the form of Note
stating, or has otherwise advised the Company and the Registrar in writing,
that the sale has been made in compliance with the provisions of Rule 144A to a
transferee who has signed the certification provided for on the form of Note
stating, or has otherwise advised the Company and the Registrar in writing,
that it is purchasing the Note for its own account or an account with respect
to which it exercises sole investment discretion and that it and any such account
is a QIB within the meaning of Rule 144A, and is aware that the sale to it is
being made in reliance on Rule 144A and acknowledges that it has received such
information regarding the Company as it has requested pursuant to Rule 144A or
has determined not to request such information and that it is aware that the
transferor is relying upon its foregoing representations in order to claim the
exemption from registration provided by Rule 144A; and

 

(ii)           if the
proposed transferee is an Agent Member, and the Notes to be transferred consist
of Physical Notes which after transfer are to be evidenced by an interest in
the Global Note, upon receipt by the Registrar of instructions given in
accordance with the Applicable Procedures and the Registrar’s procedures, the
Registrar shall reflect on its books and records the date and an increase in
the principal amount of the Global Note in an amount equal to the principal
amount of the Physical Notes to be transferred, and the Trustee shall cancel
the Physical Notes so transferred.

 

(c)           Private
Placement Legend.  Upon the transfer,
exchange or replacement of Notes not bearing the Private Placement Legend, the
Registrar shall deliver Notes that do not bear the Private Placement
Legend.  Upon the transfer, exchange or replacement
of Notes bearing the Private Placement Legend, the Registrar shall deliver only
Notes that bear the Private Placement Legend unless (i) the circumstance
contemplated by clause (a)(i)(x) of this Section 2.15 exists or
(ii) there is delivered to the Registrar an Opinion of Counsel reasonably
satisfactory to the Company and the Trustee to the effect that neither such
legend nor the related restrictions on transfer are required in order to
maintain compliance with the provisions of the Securities Act.  The Registrar shall not register a transfer
of any Note unless such transfer complies with the restrictions on transfer of
such Note set forth in this Indenture. 
In connection with any transfer of Notes, each Holder agrees by its
acceptance of the Notes to furnish the

 

36

 

Registrar or the Company such
certifications, legal opinions or other information as either of them may
reasonably require to confirm that such transfer is being made pursuant to an
exemption from, or a transaction not subject to, the registration requirements
of the Securities Act; provided that the Registrar shall not be required
to determine (but may rely on a determination made by the Company with respect
to) the sufficiency of any such certifications, legal opinions or other
information.

 

(d)           General.  By its acceptance of any Note bearing the
Private Placement Legend, each Holder of such a Note acknowledges the
restrictions on transfer of such Note set forth in this Indenture and in the
Private Placement Legend and agrees that it shall transfer such Note only as
provided in this Indenture.

 

The Registrar
shall retain copies of all letters, notices and other written communications
received pursuant to Section 2.14 or this Section 2.15.  The Company shall have the right to inspect
and make copies of all such letters, notices or other written communications at
any reasonable time upon the giving of reasonable written notice to the
Registrar.

 

The Trustee shall
have no obligation or duty to monitor, determine or inquire as to compliance
with any restrictions on transfer imposed under this Indenture or under
applicable law with respect to any transfer of any interest in any Note
(including any transfers between or among Agent Members or beneficial owners of
interests in any Global Note) other than to require delivery of such
certificates and other documentation or evidence as are expressly required by,
and to do so if and when expressly required by the terms of, this Indenture,
and to examine the same to determine substantial compliance as to form with the
express requirements hereof.

 

Neither the
Trustee nor any Agent shall have any responsibility for any actions taken or
not taken by DTC.

 

SECTION
2.16.  Transfers of Global Notes and Physical
Notes.

 

A transfer of a
Global Note or a Physical Note (including the right to receive principal and
interest and Additional Interest, if any, payable thereon) may be made only by
the Registrar’s entering the transfer in the Register.  Prior to such entry, the Company shall treat
the person in whose name such Note is registered as the owner of the Note for
all purposes.

 

ARTICLE THREE

REDEMPTION

 

SECTION
3.01.  Redemption.

 

(a)           Optional Redemption on or after February 1,
2008.  Except as described in Sections 3.01(b)
and (c), the Notes are not redeemable before February 1,
2008.  At any time on or after February
1, 2008, the Company may redeem the Notes, at its option, in whole or in part,
at any time or from time to time, upon not less than 30 nor more than 60 days’
notice, at the following redemption prices (expressed as percentages of the
principal amount thereof) if redeemed during the twelve-month period commencing
on February 1, of each of the years set forth below, plus, in each case,
accrued and unpaid interest and Additional Interest, if any, thereon to the
Redemption Date:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  104.938

  	
  %

  
	
  2009

  	
   

  	
  102.469

  	
  %

  
	
  2010 and each year thereafter

  	
   

  	
  100.000

  	
  %

  

 

37

 

(b)           Optional
Redemption Upon Equity Offerings.  At
any time, or from time to time, on or prior to February 1, 2007, the Company
may, at its option, use an amount not to exceed the net cash proceeds of one or
more Equity Offerings to redeem up to 35% of the aggregate principal amount of
the Notes (which includes Additional Notes, if any) originally issued under
this Indenture at a redemption price of
109.875% of the aggregate principal amount thereof, plus accrued and unpaid
interest and Additional Interest, thereon, if any, to the Redemption Date.  In order to effect the foregoing redemption
with the proceeds of any Equity Offering,

 

(1)           at least 65% of the aggregate principal
amount of the Notes (which includes Additional Notes, if any) originally issued
under this Indenture shall remain outstanding immediately after such Redemption
Date; and

 

(2)           the Redemption Date must be as of a date not
more than 120 days after the consummation of any such Equity Offering.

 

(c)           Optional
Redemption Prior to February 1, 2008. 
At any time prior to February 1, 2008, the Company may, at its option,
redeem the Notes for cash, in whole or in part, at any time or from time to
time, upon not less than 30 days nor more than 60 days notice to each Holder of
Notes, at a redemption price equal to the greater of:

 

(1)           100% of
the principal amount of the Notes being redeemed; or

 

(2)           the sum of
the present values of 104.938 % of the principal amount of the Notes being
redeemed and scheduled payments of interest on such Notes to and including
February 1, 2008 discounted to the date of redemption on a semi-annual basis
(assuming a 360-day year consisting of twelve 30-day months) at the Treasury
Rate plus 50 basis points, together in either case with accrued and unpaid
interest, if any, to the date of redemption.

 

(d)           Notice
of Redemption.  Notice of redemption
will be mailed by first-class mail at least 30 days but not more than 60 days
before the Redemption Date to each Holder to be redeemed at its registered
address.  If fewer than all of the Notes
are to be redeemed, at any time, selection of the Notes for redemption will be
made by the Trustee in compliance with the requirements of the principal
national securities exchange, if any, on which the Notes are listed, or, if the
Notes are not then listed on a national securities exchange, on a pro rata
basis, by lot or by such method as the Trustee may reasonably determine is fair
and appropriate, provided that no
Notes of a principal amount of $1,000 or less shall be redeemed in part;
and provided, further, that any such partial redemption made with the proceeds of an Equity Offering will be
made only on a pro rata basis or on as nearly a pro rata basis as is practicable (subject to DTC
procedures), unless such method is otherwise prohibited.  Notes
in denominations of $1,000 or more may be redeemed in part.

 

Except as set
forth in this Indenture, if monies for the redemption of the Notes called for
redemption shall have been deposited with the Paying Agent for redemption on
such Redemption Date sufficient to pay such Redemption Price plus accrued and
unpaid interest and Additional Interest, if any, the Notes called for
redemption will cease to bear interest from and after such Redemption Date, and
the only remaining right of the Holders of such Notes will be to receive
payment of the Redemption Price plus accrued and unpaid interest and Additional
Interest, if any, as of the Redemption Date upon surrender to the Paying Agent
of the Notes redeemed.

 

38

 

(e)           Mandatory
Redemption.  The Company shall not be
required to make mandatory redemption or sinking fund payments with respect to
the Notes.

 

Each Officers’
Certificate provided for in this Section 3.01 shall be accompanied by an
Opinion of Counsel stating that such redemption shall comply with the
conditions contained herein and in the Notes.

 

SECTION
3.02.  Selection of Notes to be Redeemed.

 

If fewer than all
of the Notes are to be redeemed pursuant to Paragraph 5 of the Notes, selection
of the Notes for redemption will be made by the Trustee either:

 

(1)      in
compliance with the requirements of the principal national securities exchange,
if any, on which such Notes are listed; or

 

(2)      if
such Notes are not then listed on a national securities exchange, on a pro rata basis, by lot or by such method as the Trustee may
reasonably determine is fair and appropriate; provided that no partial
redemption will reduce the principal amount of a Note not redeemed to less than
$1,000; and provided, further, that if a partial redemption is
made with the proceeds of an Equity Offering then the selection of the Notes or
portions thereof for redemption shall be made by the Trustee only on a pro rata basis or on as
nearly a pro  rata basis as is
practicable (subject to the procedures of DTC), unless such method is
prohibited.

 

The Trustee shall
make the selection from the Notes outstanding and not previously called for
redemption and shall promptly notify the Company in writing of the Notes
selected for redemption and, in the case of any Note selected for partial
redemption, the principal amount at maturity thereof, to be redeemed.  Notes in denominations of $1,000 in principal
amount at maturity may be redeemed only in whole.  The Trustee may select for redemption
portions (equal to $1,000 in principal amount at maturity or any integral
multiple thereof) of the principal of Notes that have denominations larger than
$1,000.  Provisions of this Indenture
that apply to Notes called for redemption also apply to portions of Notes
called for redemption.

 

SECTION
3.03.  Notice of Redemption.

 

At least thirty
(30) days but not more than sixty (60) days before a Redemption Date, the
Company shall mail or cause to be mailed a notice of redemption by first class
mail, postage prepaid, to each Holder whose Notes are to be redeemed at its
registered address, with a copy to the Trustee and any Paying Agent.  At the Company’ written request delivered at
least ten (10) days before the notice of redemption is to be given to the
Holders (unless a shorter period shall be acceptable to the Trustee), the
Trustee shall give the notice of redemption in the Company’ name and at the
Company’ expense.  Failure to give notice
of redemption, or any defect therein to any Holder of any Note selected for
redemption shall not impair or affect the validity of the redemption of any
other Note.

 

Each notice of
redemption shall identify the Notes to be redeemed and shall state:

 

(1)           the Redemption Date;

 

(2)           the Redemption Price
and the amount of accrued interest and Additional Interest, if any, to be paid
the Redemption Date;

 

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

 

(4)           the CUSIP number;

 

39

 

(5)           the subparagraph of the
Notes pursuant to which such redemption is being made;

 

(6)           the place where such
Notes called for redemption must be surrendered to the Paying Agent to collect
the Redemption Price plus accrued interest and Additional Interest, if any, to
(but not including) the Redemption Date;

 

(7)           that, unless the
Company fails to deposit with the Paying Agent funds in satisfaction of the
applicable Redemption Price, interest Additional Interest, if any, on Notes
called for redemption ceases to accrue on and after the Redemption Date in
accordance with Section 3.05, and the only remaining right of the
Holders of such Notes is to receive payment of the Redemption Price plus
accrued interest and Additional Interest, if any, to (but not including) the
Redemption Date, upon surrender to the Paying Agent of the Notes redeemed;

 

(8)           if any Note is being
redeemed in part, the portion of the principal amount of such Note to be
redeemed and that, after the Redemption Date, and upon surrender of such Note,
a new Note or Notes in the aggregate principal amount equal to the unredeemed
portion thereof shall be issued; and

 

(9)           if fewer than all the
Notes are to be redeemed, the identification of the particular Notes (or
portion thereof) to be redeemed, as well as the aggregate principal amount of
Notes to be redeemed and the aggregate principal amount of Notes to be
outstanding after such partial redemption.

 

If any of the
Notes to be redeemed is in the form of a Global Note, then the Company shall
modify such notice to the extent necessary to accord with the procedures of DTC
applicable to redemption.

 

SECTION
3.04.  Effect of
Notice of Redemption.

 

Once notice of
redemption is mailed in accordance with Section 3.03, Notes or portions
thereof called for redemption shall become irrevocably due and payable on the
Redemption Date and at the Redemption Price plus accrued interest and
Additional Interest, if any, to (but not including) the Redemption Date.  Upon surrender to the Trustee or Paying
Agent, such Notes or portions thereof called for redemption shall be paid at
the Redemption Price plus accrued interest and Additional Interest, if any,
thereon to (but not including) the Redemption Date, but installments of
interest and Additional Interest, if applicable, the maturity of which is on or
prior to the Redemption Date, shall be payable to Holders of record at the
close of business on the relevant Record Dates referred to in the Notes.

 

SECTION
3.05.  Deposit of Redemption Price.

 

Not later than
10:00 a.m. local time in the place of payment on the Redemption Date, the
Company shall deposit with the Paying Agent U.S. Legal Tender sufficient to pay
the Redemption Price plus accrued interest and Additional Interest, if any, to
(but not including) the Redemption Date, of all Notes or portions thereof to be
redeemed on that date.

 

The Paying Agent
shall promptly return to the Company any U.S. Legal Tender so deposited which
is not required for that purpose, except with respect to monies owed as
obligations to the Trustee pursuant to Article Seven.

 

If the Company
complies with the preceding paragraph, then, unless the Company defaults in the
payment of such Redemption Price plus accrued interest and Additional Interest,
if any, interest to (but

 

40

 

not including) the Redemption
Date, on the Notes to be redeemed shall cease to accrue on and after the
applicable Redemption Date, whether or not such Notes are presented for
payment.

 

SECTION
3.06.  Notes
Redeemed in Part.

 

Upon surrender of
a Note that is to be redeemed in part, the Company shall issue and the Trustee
shall authenticate for the Holder at the expense of the Company a new Note or
Notes equal in principal amount to the unredeemed portion of the Note
surrendered.

 

ARTICLE FOUR

COVENANTS

 

SECTION
4.01.  Payment of
Notes.

 

The Company shall
pay the principal of, premium, if any, and interest and Additional Interest, if
any, on, the Notes on the dates and in the manner provided in the Notes and in
this Indenture.  An installment of
principal of, premium, if any, and interest and Additional Interest, if any,
on, the Notes shall be considered paid on the date it is due if the Trustee or
Paying Agent (other than the Company or an Affiliate of the Company) holds on
that date U.S. Legal Tender designated for and sufficient to pay the
installment in full and is not prohibited from paying such money to the Holders
pursuant to the terms of this Indenture.

 

Notwithstanding
anything to the contrary contained in this Indenture, the Company may, to the
extent it are required to do so by law, deduct or withhold income or other
similar taxes imposed by the United States from principal or interest payments
hereunder.

 

SECTION
4.02.  Maintenance of Office or Agency.

 

The Company shall
maintain the office or agency required under Section 2.03.  The Company shall give prior written notice
to the Trustee of the location, and any change in the location, of such office
or agency.  If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office and the
Company hereby appoints the Trustee as its agent to receive all such
presentations, surrenders, notices and demands.

 

SECTION
4.03.  Corporate
Existence.

 

Except as otherwise
permitted by Article Four, Article Five and Article Ten,
the Company shall do or cause to be done, at its own cost and expense, all
things necessary to preserve and keep in full force and effect its corporate
existence and the limited liability company or corporate existence of each of
the Restricted Subsidiaries in accordance with the respective organizational
documents of the Company and of each such Restricted Subsidiary and the
material rights (charter and statutory) and franchises of the Company and each
such Restricted Subsidiary; provided, however, that the Company
shall not be required to preserve, with respect to themselves, any material
right or franchise and, with respect to any of the Restricted Subsidiaries, any
such existence, material right or franchise, if the Board of Directors of the
Company shall determine in good faith that the preservation thereof is no
longer desirable in the conduct of the business of the Company and its
Restricted Subsidiaries, taken as a whole.

 

41

 

SECTION
4.04.  Payment of Taxes and Other Claims.

 

The Company shall pay or
discharge or cause to be paid or discharged, before the same shall become
delinquent, all material taxes, assessments and governmental charges (including
withholding taxes and any penalties, interest and additions to taxes) levied or
imposed upon them or any of the Restricted Subsidiaries or their properties or
any of the Restricted Subsidiaries’ properties; provided, however,
that the Company shall not be required to pay or discharge or cause to be paid
or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being or shall be contested in good faith by
appropriate proceedings diligently conducted for which adequate reserves, to
the extent required under GAAP, have been taken.

 

SECTION
4.05.  Maintenance
of Properties and Insurance.

 

The Company shall, and shall cause each of its
Restricted Subsidiaries to, maintain in good working order and condition in all
material respects (subject to ordinary wear and tear) their properties that are
used or useful in the conduct of their business and that are material to the
conduct of such business, and make all necessary repairs, renewals, replacements,
additions, betterments and improvements thereto; provided, however,
that nothing in this Section 4.05 shall prevent the Company or any of
its Restricted Subsidiaries from discontinuing the operation and maintenance of
any of their properties if such discontinuance is desirable in the conduct of
their businesses and is not disadvantageous in any material respect to the
Holders, in each case as determined in the good faith judgment of the Board of
Directors or other governing body of the Company or the Restricted Subsidiary
concerned, as the case may be.

 

The Company shall maintain insurance (including
appropriate self-insurance) against loss or damage of the kinds that, in the
good faith judgment of the Company, are adequate and appropriate for the conduct
of the business of the Company and the Restricted Subsidiaries in a prudent
manner, with reputable insurers or with the government of the United States or
an agency or instrumentality thereof, in such amounts, with such deductibles,
and by such methods as shall be customary, in the good faith judgment of the
Company, for companies similarly situated in the industry in which the Company
and the Restricted Subsidiaries are engaged.

 

SECTION
4.06.  Compliance Certificate, Notice of Default.

 

(1)           The
Company and each Guarantor shall deliver to the Trustee, within ninety (90)
days after the end of the Company’s fiscal year, an Officers’ Certificate
stating that a review of its activities during the preceding fiscal year has
been made under the supervision of the signing Officers (one of whom is the
principal executive officer, principal financial officer or principal
accounting officer) with a view to determining whether it has kept, observed,
performed and fulfilled its obligations under this Indenture and further
stating, as to each such Officer signing such certificate, that to the best of
such Officer’s actual knowledge the Company during such preceding fiscal year
has kept, observed, performed and fulfilled each and every condition and
covenant under this Indenture and no Default or Event of Default occurred
during such year and at the date of such certificate there is no Default or
Event of Default that has occurred and is continuing or, if such signers do
know of such Default or Event of Default, the certificate shall describe the
Default or Event of Default and its status with particularity.  The Officers’ Certificate shall also notify
the Trustee should the Company elect to change the manner in which it fixes its
fiscal year end.

 

(2)           (i)
If any Default or Event of Default has occurred and is continuing or
(ii) if any Holder has provided written notice to the Company that such
Holder seeks to exercise any remedy hereunder with respect to a claimed Default
under this Indenture or the Notes, the Company shall deliver to the

 

42

 

Trustee, at its address set
forth in Section 11.02, by registered or certified mail or by telegram,
telex or facsimile transmission followed by hard copy by registered or
certified mail an Officers’ Certificate specifying such event or notice, and
the status thereof within ten (10) Business Days of any such officer becoming
aware of such occurrence.

 

SECTION
4.07.  Waiver of Stay, Extension or Usury Laws.

 

The Company covenants (to
the extent that it may lawfully do so) that it shall not at any time insist
upon, plead, or in any manner whatsoever claim or take the benefit or advantage
of, any stay or extension law or any usury law or other law that would prohibit
or forgive the Company from paying all or any portion of the principal of,
premium, if any, or interest or Additional Interest, if any, on the Notes as
contemplated herein, wherever enacted, now or at any time hereafter in force;
and (to the extent that it may lawfully do so) the Company hereby expressly
waive all benefit or advantage of any such law, and covenant that it shall not,
by resort to any such law, hinder, delay or impede the execution of any power
herein granted to the Trustee, but shall suffer and permit the execution of
every such power as though no such law had been enacted.

 

SECTION
4.08.  Limitation on Incurrence of Additional
Indebtedness.

 

The Company will
not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, create, incur, assume, guarantee, acquire, become liable,
contingently or otherwise, with respect to, or otherwise become responsible for
payment of (collectively, “incur”)
any Indebtedness (other than Permitted Indebtedness); provided,
however, that the Company or any of its Restricted
Subsidiaries that is or, upon such incurrence, becomes a Guarantor may incur
Indebtedness (including, without limitation, Acquired Indebtedness) if on the
date of the incurrence of such Indebtedness the Consolidated Fixed Charge
Coverage Ratio of the Company will be, after giving effect to the incurrence
thereof greater than: (i) 2.0 to 1.0 prior to the first anniversary of the
Issue Date and (ii) 2.25 to 1.0 on and after the first anniversary of the Issue
Date.

 

The Company will not, and will
not permit any of its Domestic Restricted Subsidiaries to, directly or
indirectly, incur any Indebtedness which by its terms (or by the terms of any
agreement governing such Indebtedness) is contractually subordinated to any
other Indebtedness of the Company or such Domestic Restricted Subsidiary unless
such Indebtedness is also by its terms (or by the terms of any agreement
governing such Indebtedness) made contractually subordinate to the Obligations
of the Company or such Domestic Restricted Subsidiary under (i) in the case of
the Company, the Notes and this Indenture or (ii) in the case of such Domestic
Restricted Subsidiary, its Guarantee and this Indenture, in each case, on substantially identical terms; provided, however, that no Indebtedness will be deemed to be
contractually subordinated in right of payment to any other Indebtedness of the
Company solely by virtue of being unsecured.

 

The
accrual of interest, accrual of dividends on Disqualified Capital Stock, the accretion or amortization
of original issue discount, the payment of interest on any Indebtedness in the
form of additional Indebtedness in accordance with their terms, the
reclassification of Preferred Stock as Indebtedness due to a change in
accounting principles, and the payment of dividends on Disqualified Capital
Stock in the form of additional shares of the same class of Disqualified
Capital Stock will not be deemed to be an incurrence of Indebtedness or an
issuance of Disqualified Capital Stock for purposes of Section 4.08. Notwithstanding any other provision of Section
4.08, the maximum amount of
Indebtedness that the Company or any Restricted Subsidiary may incur pursuant
to Section 4.08 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:

 

43

 

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

 

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

 

(3)      in respect of
Indebtedness of another Person secured by a Lien on the assets of the specified
Person without recourse to such Person or any of its assets (other than to the
assets that are the subject of such Lien), the lesser of:

 

(a)      the
Fair Market Value of such assets that are the subject of such Lien at the date
of determination; and

 

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

 

SECTION
4.09.  Limitation on Restricted
Payments.

 

The Company will
not, and will not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly:

 

(1)      declare or pay
any dividend or make any distribution (other than dividends or distributions
payable in Qualified Capital Stock of the Company and dividends and
distributions payable to the Company or another Restricted Subsidiary of the
Company) on or in respect of shares of Capital Stock of the Company or its
Restricted Subsidiaries to holders of such Capital Stock in their capacity as
such;

 

(2)      purchase,
redeem or otherwise acquire or retire for value any Capital Stock of the
Company or its Restricted Subsidiaries (other than any such Capital Stock held
by the Company or any Restricted Subsidiary);

 

(3)      make any
principal payment on, purchase, defease, redeem, prepay, decrease or otherwise
acquire or retire for value, prior to any scheduled final maturity, scheduled
repayment or scheduled sinking fund payment, any Indebtedness of the Company or
any Guarantor that is contractually subordinate or junior in right of payment
to the Notes or a Guarantee (excluding any intercompany indebtedness held by
the Company or any Guarantor); or

 

(4)      make any
Investment (other than Permitted Investments);

 

(each of the foregoing actions set forth in clauses (1), (2), (3) and
(4) being referred to as a “Restricted Payment”),
if at the time of such Restricted Payment or immediately after giving effect
thereto:

 

(i)       a Default or an
Event of Default shall have occurred and be continuing;

 

(ii)      the Company is
not able to incur at least $1.00 of additional Indebtedness (other than
Permitted Indebtedness) in compliance with Section 4.08; or

 

(iii)     the aggregate
amount of Restricted Payments (including such proposed Restricted Payment) made
subsequent to the Issue Date (the amount expended for such purposes, if other
than in cash, being the Fair Market Value of such property at the time of the
making thereof) shall exceed the sum of:

 

(A)          50%
of the cumulative Consolidated Net Income (or if cumulative Consolidated Net
Income is a loss, minus 100% of such loss) of the Company earned during the
period beginning on the Issue Date and ending on the last day of the Company’s
most recent fiscal quarter ending prior to the date the Restricted Payment
occurs for which internal financial statements are available (the “Reference Date”) (treating such period as a single
accounting period); plus

 

44

 

(B)           100%
of the aggregate net cash proceeds received by the Company from any Person
(other than a Subsidiary of the Company) from the issuance and sale subsequent
to the Issue Date and on or prior to the Reference Date of Qualified Capital
Stock of the Company; plus

 

(C)           without
duplication of any amounts included in clause (iii)(B) above, 100% of the
aggregate net cash proceeds of any equity contribution received by the Company
from a holder of the Company’s Capital Stock subsequent to the Issue Date and
on or prior to the Reference Date; plus

 

(D)          100%
of the aggregate net cash proceeds received from the issuance of Indebtedness
or shares of Disqualified Capital Stock of the Company that have been converted
into or exchanged for Qualified Capital Stock of the Company subsequent to the
Issue Date and on or prior to the Reference Date; plus

 

(E)           an
amount equal to the sum of (i) the net reduction in the Investments (other than
Permitted Investments) made by the Company or any of its Restricted
Subsidiaries in any Person resulting from repurchases, repayments or
redemptions of such Investments by such Person, proceeds realized on the sale
of such Investment and proceeds representing the return of capital (excluding
dividends and distributions), in each case received by the Company or any of
its Restricted Subsidiaries, and (ii) to the extent such Person is an
Unrestricted Subsidiary, the portion (proportionate to the Company’s equity
interest in such Subsidiary) of the Fair Market Value of the net assets of such
Unrestricted Subsidiary at the time such Unrestricted Subsidiary is designated
a Restricted Subsidiary; provided, however, that the foregoing sum shall not exceed, in the
case of any such Person or Unrestricted Subsidiary, the amount of Investments
(excluding Permitted Investments) previously made (and treated as a Restricted
Payment) by the Company or any of its Restricted Subsidiaries in such Person or
Unrestricted Subsidiary; plus

 

(F)           any
cash dividends received by the Company or any of its Restricted Subsidiaries
after the Issue Date from an Unrestricted Subsidiary of the Company, to the
extent that such cash dividends were not otherwise included in the calculation
of cumulative Consolidated Net Income; plus

 

(G)           100%
of the Fair Market Value as of the date of issuance of any shares of Qualified
Capital Stock issued by the Company as consideration for the purchase by the
Company or any Guarantor of all or substantially all of the assets of, or all
of the Capital Stock of, any Person (other than a Restricted Subsidiary of the
Company) engaged in a Permitted Business primarily in the United States
(including by means of a merger, consolidation or other business combination
permitted under this Indenture), which Person shall become a Domestic
Restricted Subsidiary of the Company in the case of where such purchase is of
all of the Capital Stock of such Person.

 

Notwithstanding the foregoing,
the provisions set forth in the immediately preceding paragraph do not
prohibit:

 

(1)      the payment of
any dividend or other distribution or redemption within 60 days after the date
of declaration of such dividend or call for redemption if such payment would
have been permitted on the date of declaration or call for redemption;

 

(2)      the acquisition
of any shares of Qualified Capital Stock of the Company, either (i) solely in
exchange for other shares of Qualified Capital Stock of the Company or (ii)
through the application of net proceeds of a sale for cash (other than to a
Subsidiary of the Company) of shares of Qualified Capital Stock of the Company
within 60 days after such sale;

 

(3)      the acquisition
of any Indebtedness of the Company or the Guarantors that is subordinate or
junior in right of payment to the Notes and Guarantees either (i) solely in
exchange for shares of Qualified Capital Stock of the Company, or (ii) through
the application of net proceeds of a sale for

 

45

 

cash (other than to a
Subsidiary of the Company) within 60 days after such sale of (a) shares of
Qualified Capital Stock of the Company or (b) if no Default or Event of Default
would exist after giving effect thereto, Refinancing Indebtedness;

 

(4)      an Investment
either (i) solely in exchange for shares of Qualified Capital Stock of the
Company or (ii) through the application of the net proceeds of a sale for cash
(other than to a Restricted Subsidiary of the Company) of shares of Qualified
Capital Stock of the Company within 60 days after such sale;

 

(5)      if no Default
or Event of Default has occurred and is continuing or would exist after giving
effect thereto, the repurchase or other acquisition of shares of Capital Stock
of the Company from employees, former employees, directors or former directors
of the Company or any Restricted Subsidiary of the Company (or permitted
transferees of such employees, former employees, directors or former directors
(or their respective heirs or estates)), pursuant to the terms of the
agreements (including employment agreements) or plans (or amendments thereto)
approved by the Board of Directors of the Company under which such individuals
purchase or sell or are granted the option to purchase or sell, shares of such
Capital Stock; provided, that the aggregate amount of all such repurchases and other
acquisitions (other than any such repurchase or other acquisition of shares of
such Capital Stock from (i) any employee whose employment has been terminated
by the Company or such Restricted Subsidiary or (ii) any employee who has
retired or resigned from the Company or such Restricted Subsidiary) in any
calendar year shall not exceed $500,000 plus up to $500,000 of any unused
amount permitted under this clause (5) for the immediately preceding year;

 

(6)      repurchases of
Capital Stock deemed to occur upon exercise of stock options, warrants or other
similar rights if such Capital Stock represents a portion of the exercise price
of such options, warrants or other similar rights;

 

(7)      payments or
distributions to dissenting stockholders of Capital Stock of the Company
pursuant to applicable law, pursuant to or in connection with a consolidation,
merger or transfer of assets that complies with the provisions of this
Indenture applicable to mergers, consolidations and transfers of all or
substantially all of the property and assets of the Company or any of its
Restricted Subsidiaries;

 

(8)      the application
of the proceeds from the issuance of the Notes on the Issue Date as described
in the “Use of Proceeds” section of the Offering Circular;

 

(9)      if no Default
or Event of Default has occurred and is continuing or would exist after giving
effect thereto, the payment of Management Fees, provided,
however, that the aggregate amount of
such Management Fee payments in any calendar year shall not exceed $500,000;

 

(10)    any dividend,
distribution or other payments by any of the Company’s Subsidiaries on its
Capital Stock that is paid pro rata to all holders of such Capital Stock;

 

(11)    within 60 days
after the completion of a Change of Control Offer pursuant to the covenant
described in Section 4.10 (including the repurchase of all Notes validly
tendered and not properly withdrawn in connection therewith), any purchase or
redemption of Indebtedness subordinated to the Notes required pursuant to the
terms thereof as a result of the related Change of Control at a purchase or
redemption price not to exceed 101% of the aggregate principal amount thereof
(or, if such Indebtedness was issued with original issue discount, 101% of the
accreted value thereof) to be so purchased or redeemed, plus accrued and unpaid
interest thereon, if any; provided, that
(i) at the time of such purchase or redemption, no Default or Event of Default
shall have occurred and be continuing or would exist after giving effect
thereto, (ii) the Company would be able to incur at least $1.00 of additional
Indebtedness (other than Permitted Indebtedness) in compliance with Section
4.08 after giving pro forma effect to such Restricted Payment and (iii)
such purchase or redemption is not made, directly or indirectly, from the
proceeds of (or made in anticipation of) any issuance of Indebtedness by the
Company or any of its Subsidiaries;

 

46

 

(12)    (a) if no Default or Event of
Default has occurred and is continuing or would exist after giving effect
thereto, the acquisition of any shares of
Disqualified Capital Stock of the Company in exchange for other shares of
Disqualified Capital Stock of the Company or with the net cash proceeds from an
issuance of Disqualified Capital Stock of the Company within 60 days of such
issuance, in each case that is permitted to be issued under Section 4.08
and (b) the declaration and payment of regularly scheduled or accrued dividends
to holders of any class or series of Disqualified Capital Stock issued on or
after the Issue Date in accordance with the covenant described above under Section
4.08; and

 

(13)    if no Default
or Event of Default has occurred and is continuing or would exist after giving
effect thereto, Restricted Payments not otherwise permitted pursuant to Section 4.09 in an
aggregate amount pursuant to this clause (13) not to exceed $2.5 million on and
after the Issue Date; provided  however, that the amount of
Restricted Payments pursuant to this clause (13) shall not exceed $1.0 million
prior to January 1, 2006.

 

In determining the aggregate
amount of Restricted Payments made subsequent to the Issue Date in accordance
with clause (iii) of the first paragraph of this Section 4.09, amounts
expended pursuant to clauses (1), (2)(ii), (3)(ii)(a), (4)(ii) (but only to the
extent any Investment made pursuant to such clause (4)(ii) was in an
Unrestricted Subsidiary or a Person that became an Unrestricted Subsidiary of
the Company in connection with such Investment), (11) and (13) of the second
paragraph of this Section 4.09 shall be included in such calculation.

 

For purposes of determining
compliance with Section 4.09, in the event that a Restricted Payment
meets the criteria of more than one of the exceptions described in (1) through
(13) of the second paragraph of this Section 4.09 or is entitled to be
made pursuant to the first paragraph of Section 4.09, the Company shall
be permitted, in the Company’s sole discretion, to classify or reclassify such
Restricted Payment in any manner that complies with Section 4.09.

 

Promptly following the end of
each fiscal quarter during which any Restricted Payment in excess of $5.0
million was made, the Company shall deliver to the Trustee an Officers’
Certificate stating that such Restricted Payment complies with this Indenture
and if the Fair Market Value of any assets or securities that were required to
be valued by Section 4.09 exceeded $5.0 million, a Board Resolution
evidencing the determination of such Fair Market Value by the Board of
Directors shall be delivered to the Trustee.

 

SECTION
4.10.  Repurchase upon Change
of Control.

 

Upon the occurrence of a Change of Control, each
Holder will have the right to require that the Company purchase all or a
portion (in integral multiples of $1,000) of such Holder’s Notes using
immediately available funds pursuant to the offer described below (the “Change
of Control Offer”), at a purchase price in cash equal to 101%
of the principal amount thereof on the date of purchase, plus accrued and
unpaid interest and Additional Interest, if any, to the date of purchase.

 

Within 30 days following the date upon which the
Change of Control occurred, the Company must send, by registered first-class
mail, an offer to each Holder, with a copy to the Trustee, which offer shall
govern the terms of the Change of Control Offer.  The notice to the Holders shall contain all
instructions and materials necessary to enable such Holders to tender Notes pursuant
to the Change of Control Offer.  Such
notice shall state:

 

(1)           that the Change of
Control Offer is being made pursuant to this Section 4.10 and that, to
the extent lawful, all Notes validly tendered and not withdrawn shall be
accepted for payment;

 

(2)           the purchase date
(including the amount of accrued interest and Additional Interest, if any),
which must be no earlier than 30 days nor later than 60 days from the date such
notice is mailed, other than as may be required by law (the “Change
of Control Payment Date”).

 

47

 

(3)           that any Note not
tendered shall continue to accrue interest and Additional Interest, if
applicable;

 

(4)           that, unless the
Company default in making payment therefor, any Note accepted for payment
pursuant to the Change of Control Offer shall cease to accrue interest and
Additional Interest, if applicable, after the Change of Control Payment Date;

 

(5)           that Holders electing
to have a Note purchased pursuant to a Change of Control Offer will be required
to surrender the Note, with the form entitled “Option of Holder to Elect
Purchase” on the reverse of the Note completed, to the paying agent at the
address specified in the notice prior to the close of business on the third
business day prior to the Change of Control Payment Date;

 

(6)           that Holders shall be
entitled to withdraw their election if the Paying Agent receives, not later
than five (5) Business Days prior to the Change of Control Payment Date, a
telegram, telex, facsimile transmission or letter setting forth the name of the
Holder, the principal amount of the Notes the Holder delivered for purchase and
a statement that such Holder is withdrawing its election to have such Notes
purchased;

 

(7)           that Holders whose
Notes are purchased only in part shall be issued new Notes in a principal
amount equal to the unpurchased portion of the Notes surrendered; provided
that each Note purchased and each new note issued shall be in an original
principal amount of $1,000 or integral multiples thereof, and such new Notes
will be issued in the name of the Holder thereof upon cancellation of the
original Note (or appropriate adjustments to the amount and beneficial
interests in a Global Note will be made); and

 

(8)           the circumstances and
relevant facts regarding such Change of Control.

 

If any of the
Notes subject to the Change of Control Offer is in the form of a Global Note,
then the Company shall modify such notice to the extent necessary to comply
with the procedures of the Depositary applicable to repurchases.

 

On or before the
Change of Control Payment Date, the Company shall, to the extent lawful
(i) accept for payment Notes or portions thereof properly tendered
pursuant to the Change of Control Offer, (ii) deposit with the Paying
Agent U.S. Legal Tender sufficient to pay the purchase price plus accrued
interest and Additional Interest, if any, of all Notes or portions thereof so
tendered and (iii) deliver or cause to be delivered to the Trustee the
Notes so accepted together with an Officers’ Certificate stating the aggregate
principal amount of Notes or portions thereof being purchased by the
Company.  The Paying Agent shall promptly
mail to the Holders so tendered the purchase price for such Notes and the
Company shall promptly issue and the Trustee shall promptly (but in any case not
later than five (5) days after the Change of Control Payment Date) authenticate
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; provided
that each such new Note shall be in a principal amount of $1,000 or an integral
multiple thereof.  Any Notes not so
accepted shall be promptly mailed by the Company to the Holders thereof.  For purposes of this Section 4.10, the
Trustee shall act as the Paying Agent.

 

Any amounts
remaining after the purchase of Notes pursuant to a Change of Control Offer
shall be returned by the Trustee to the Company.

 

Neither the Board
of Directors of the Company nor the Trustee may waive the Company’s obligation
to offer to purchase the Notes pursuant to this Section 4.10.

 

48

 

The Company
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 the repurchase of Notes pursuant
to a Change of Control Offer. To the extent that the provisions of any
securities laws or regulations conflict with the provisions of Section 4.10
of this Indenture, the Company shall comply with the applicable securities laws
and regulations and shall not be deemed to have breached its obligations under
the provisions of Section 4.10 of this Indenture by virtue thereof.

 

The Company
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 Indenture
applicable to a Change of Control Offer made by the Company and purchases all
Notes validly tendered and not properly withdrawn under such Change of Control
Offer.

 

SECTION
4.11.  Limitation on Asset
Sales.

 

The Company will
not, and will not permit any of its Restricted Subsidiaries to, consummate an
Asset Sale unless:

 

(1)      the Company or
the applicable Restricted Subsidiary, as the case may be, receives
consideration at the time of such Asset Sale at least equal to the Fair Market
Value of the assets sold or otherwise disposed (and if such Fair Market Value
exceeds $5.0 million, a Board Resolution evidencing the determination of such
Fair Market Value by the Board of Directors shall be delivered to the Trustee);

 

(2)      at least 75% of
the consideration received by the Company or the Restricted Subsidiary, as the
case may be, from such Asset Sale is in the form of cash or Cash Equivalents
and is received at the time of such disposition; provided that
the amount of any liabilities (as shown on the most recent applicable balance
sheet) of the Company or such Restricted Subsidiary (other than liabilities
that are by their terms subordinated to the Notes) that are assumed by the
transferee of any such assets shall be deemed to be cash for purposes of this
provision so long as the documents governing such liabilities provide that
there is no further recourse to the Company or any of its Subsidiaries with
respect to such liabilities; and

 

(3)      within 360 days
of receipt thereof by the Company or any of its Restricted Subsidiaries, the
Company shall apply, or cause such Restricted Subsidiary to apply, the Net Cash
Proceeds relating to such Asset Sale either:

 

(A)     to the extent
that the assets and property sold pursuant to such Asset Sale do not constitute
Priority Collateral, to repay Indebtedness under the Credit Agreement and
permanently reduce the commitments thereunder;

 

(B)     to make an
investment in property, plant, equipment or other non-current assets that
replace the properties and assets that were the subject of such Asset Sale or
that will be used or useful in a Permitted Business (including expenditures for
maintenance, repair or improvement of existing properties and assets) or the
acquisition of all of the Capital Stock of a Person engaged in a Permitted
Business; or

 

(C)     a combination
of repayment and investment permitted by the foregoing clauses (3)(A) and
(3)(B).

 

Pending the
final application of Net Cash Proceeds, the Company may temporarily reduce
revolving credit borrowings or invest such Net Cash Proceeds in Cash
Equivalents. On the 361st day after an Asset Sale or such earlier date, if any,
as the Board of Directors of the Company or of such Restricted Subsidiary
determines not to apply the Net Cash Proceeds relating to such Asset Sale as
set forth in clauses (3)(A), (3)(B) or (3)(C) of the preceding paragraph (each,
a “Net Proceeds Offer Trigger Date”), such aggregate
amount of Net Cash Proceeds which have not been applied on or before such Net

 

49

 

Proceeds Offer
Trigger Date as permitted in clauses (3)(A), (3)(B) and (3)(C) of the preceding
paragraph (each, a “Net Proceeds Offer Amount”)
shall be applied by the Company or such Restricted Subsidiary to make an offer
to purchase (the “Net Proceeds Offer”) on a
date (the “Net Proceeds Offer Payment Date”) not less than 30
nor more than 45 days following the applicable Net Proceeds Offer Trigger Date,
from all Holders and all holders of other Applicable Indebtedness containing
provisions similar to those set forth in Section 4.11, on a pro
rata basis, the maximum principal amount of Notes and such
other Applicable Indebtedness that may be purchased with the Net Proceeds Offer
Amount at a price equal to 100% of the principal amount thereof (or if such
Indebtedness was issued with original issue discount, 100% of the accreted
value), plus accrued and unpaid interest and Additional Interest thereon, if
any, to the date of purchase; provided, however, that if
at any time any non-cash consideration received by the Company or any
Restricted Subsidiary of the Company, as the case may be, in connection with
any Asset Sale is converted into or sold or otherwise disposed of for cash
(other than interest received with respect to any such non-cash consideration),
then such conversion or disposition shall be deemed to constitute an Asset Sale
hereunder on the date of such conversion or disposition, as the case may be,
and the Net Cash Proceeds thereof shall be applied in accordance with Section
4.11.

 

The Company
may defer any Net Proceeds Offer until there is an aggregate unutilized Net
Proceeds Offer Amount equal to or in excess of $5.0 million resulting from one
or more Asset Sales in which case the accumulation of such amount shall
constitute a Net Proceeds Offer Trigger Date (at which time, the entire
unutilized Net Proceeds Offer Amount, and not just the amount in excess of $5.0
million, shall be applied as required pursuant to the immediately preceding
paragraph). Upon the completion of each Net Proceeds Offer, the Net Proceeds
Offer Amount will be reset at zero.

 

In the event
of the transfer of substantially all (but not all) of the property and assets
of the Company and its Restricted Subsidiaries as an entirety to a Person in a
transaction permitted under Section 5.01, which transaction does not
constitute a Change of Control, the successor entity shall be deemed to have
sold the properties and assets of the Company and its Restricted Subsidiaries
not so transferred for purposes of Section 4.11, and shall comply with
the provisions of Section 4.11 with respect to such deemed sale as if it
constituted an Asset Sale. In addition, the Fair Market Value of such
properties and assets of the Company or its Restricted Subsidiaries deemed to
be sold shall be deemed to be Net Cash Proceeds for purposes of Section 4.11.

 

Each notice of
a Net Proceeds Offer shall be mailed first class, postage prepaid, to the
record Holders as shown on the register of Holders within 20 days following the
Net Proceeds Offer Trigger Date, with a copy to the Trustee, and shall comply
with the procedures set forth in this Indenture. Upon receiving notice of the
Net Proceeds Offer, Holders may elect to tender their Notes in whole or in part
in integral multiples of $1,000 in exchange for cash. To the extent Holders
properly tender Notes in an amount exceeding the Net Proceeds Offer Amount,
Notes of tendering Holders will be purchased on a pro
rata basis (based on amounts tendered).
A Net Proceeds Offer shall remain open for a period of 20 business days or such
longer period as may be required, or such shorter period as may be permitted,
by law.

 

The Company
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 the repurchase of Notes pursuant
to a Net Proceeds Offer. To the extent that the provisions of any securities
laws or regulations conflict with Section 4.11 of this Indenture, the
Company shall comply with the applicable securities laws and regulations and
shall not be deemed to have breached its obligations under Section 4.11
of this Indenture by virtue of such compliance.

 

50

 

SECTION
4.12.  Limitation on Dividend
and Other Payment Restrictions Affecting Restricted Subsidiaries.

 

The Company
will not, and will not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly, create or otherwise cause or permit to exist or become
effective any encumbrance or restriction on the ability of any Restricted
Subsidiary of the Company to:

 

(1)      pay
dividends or make any other distributions on or in respect of its Capital
Stock;

 

(2)      make
loans or advances or to pay any Indebtedness or other obligation owed to the
Company or any other Restricted Subsidiary of the Company; or

 

(3)      transfer
any of its property or assets to the Company or any other Restricted Subsidiary
of the Company,

 

except for such encumbrances or restrictions existing under or by
reason of:

 

(A)          applicable
law, rule or regulation;

 

(B)           this
Indenture, the Notes, the Guarantees, the Collateral Agreements and the
Intercreditor Agreements;

 

(C)           customary
non-assignment provisions of any contract, lease or license of any Restricted
Subsidiary of the Company to the extent such provisions restrict the transfer
of the lease or the property leased thereunder;

 

(D)          any
instrument governing Acquired Indebtedness, which encumbrance or restriction is
not applicable to any Person, or the properties or assets of any Person, other
than the Person or the properties or assets of the Person so acquired;

 

(E)           the
Credit Agreement (and all replacements or substitutions thereof on terms no
more adverse to the Holders and not more materially restrictive to the Company
and its Restricted Subsidiaries);

 

(F)           agreements
existing on the Issue Date to the extent and in the manner such agreements are
in effect on the Issue Date;

 

(G)           restrictions
on the transfer of assets subject to any Lien permitted under this Indenture;

 

(H)          restrictions
imposed by any agreement to sell assets or Capital Stock permitted under this
Indenture to any Person pending the closing of such sale;

 

(I)            provisions
in joint venture agreements and other similar agreements (in each case relating
solely to the respective joint venture or similar entity or the equity
interests therein) entered into in the ordinary course of business;

 

(J)            restrictions
contained in the terms of the Purchase Money Indebtedness or Capitalized Lease
Obligations not incurred in violation of this Indenture; provided,
that such restrictions relate only to the assets financed with such
Indebtedness;

 

(K)          restrictions
in other Indebtedness incurred in compliance with the covenant described under Section
4.08 (including Indebtedness constituting Permitted Indebtedness); provided
that such restrictions, taken as a whole, are, in the good faith judgment of
the Company’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 (B), (E) and (F) above;

 

(L)           restrictions
on cash or other deposits imposed by customers under contracts or other
arrangements entered into or agreed to in the ordinary course of business;

 

51

 

(M)         restrictions
on the ability of any Foreign Restricted Subsidiary to make dividends or other
distributions resulting from the operation of covenants contained in
documentation governing Indebtedness of such Subsidiary permitted under this
Indenture; or

 

(N)          an
agreement governing Indebtedness incurred to Refinance the Indebtedness issued,
assumed or incurred pursuant to an agreement referred to in clause (B), (D) and
(F) above; provided, however, that the provisions
relating to such encumbrance or restriction contained in any such Indebtedness
are no less favorable to the Company in any material respect as determined by
the Board of Directors of the Company in their reasonable and good faith
judgment than the provisions relating to such encumbrance or restriction contained
in agreements referred to in such clause (B), (D) and (F).

 

SECTION
4.13.  Limitation on Issuances
and Sales of Capital Stock of Subsidiaries.

 

The Company
will not permit or cause any of its Restricted Subsidiaries to issue or sell
any Capital Stock (other than to the Company or to a Wholly Owned Restricted
Subsidiary of the Company) or permit any Person (other than the Company or a
Wholly Owned Restricted Subsidiary of the Company) to own or hold any Capital
Stock of any Restricted Subsidiary of the Company or any Lien or security
interest therein (other than as required by applicable law); provided,
however, that this provision shall not prohibit (1) any
issuance or sale if, immediately after giving effect thereto, such Restricted
Subsidiary would no longer constitute a Restricted Subsidiary and any
Investment in such Person remaining after giving effect to such issuance or
sale would have been permitted to be made under the Section 4.09 if made
on the date of such issuance or sale, (2) the sale of all of the Capital Stock
of a Restricted Subsidiary in compliance with the provisions of Section 4.11
or (3) issuances of director’s qualifying shares or sales to foreign nationals
of shares of capital stock of Foreign Restricted Subsidiaries to the extent
required by applicable law.

 

SECTION 4.14.  Limitation on Liens.

 

The Company will not, and will
not cause or permit any of its Restricted Subsidiaries to, directly or
indirectly, create, incur, assume or permit or suffer to exist any Liens of any
kind against or upon any property or assets of the Company or any of its
Restricted Subsidiaries whether owned on the Issue Date or acquired after the
Issue Date, or any proceeds therefrom, or assign or otherwise convey any right
to receive income or profits therefrom, except for Permitted Liens.

 

Notwithstanding anything to the
contrary in the immediately preceding paragraph, the Company will not, and will
not cause or permit any of its Domestic Restricted Subsidiaries to, directly or
indirectly, create, incur, assume or permit or suffer to exist any Liens of any
kind against or upon any (i) leasehold interest or (ii) Capital Stock issued by
a Subsidiary of the Company that is held by the Company or any of its
Restricted Subsidiaries whether on or after the Issue Date or any right related
thereto (other than (A) with respect to any such leasehold interests, Permitted
Liens described in clauses (1), (2), (4) (provided
that neither the Company or any Restricted Subsidiary shall voluntarily take,
or consent to the taking of, any action to perfect any such Permitted Lien
described in such clause (4)), (5), (13), (15), (17) and (20) of the definition
thereof and (B) with respect to any such Capital Stock, Permitted Liens
described in clauses (1), (13), (15) and (17) of the definition thereof; provided
that, in each such case, an additional limitation to the limitations set forth
in such clause (17) shall be that the Indebtedness that was being Refinanced
was only secured by a Permitted Lien described in clause (13) of the definition
thereof).

 

SECTION
4.15.  Limitations on
Transactions with Affiliates.

 

(a) The
Company will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly, enter into or permit to exist any transaction or series
of related transactions (including, without limitation, the purchase, sale,
lease or exchange of any property or the rendering of any service) with, or for
the benefit of, any of its Affiliates (each an “Affiliate
Transaction”), other than

 

(x)      Affiliate Transactions permitted under paragraph (b) below, and

 

52

 

(y)      Affiliate Transactions on terms that are no less favorable than those
that might reasonably have been obtained in a comparable transaction at such
time on an arm’s-length basis from a Person that is not an Affiliate of the
Company or such Restricted Subsidiary.

 

Each Affiliate Transaction (and each series of related Affiliate
Transactions which are similar or part of a common plan) involving aggregate payments
or other property with a Fair Market Value in excess of  $5.0 million shall be approved by a majority
of the members of the Board of Directors of the Company (including a majority
of the disinterested members thereof), such approval to be evidenced by a Board
Resolution filed with the Trustee that states that such Board of Directors has
determined that such transaction complies with the foregoing provisions. If the
Company or any Restricted Subsidiary of the Company enters into an Affiliate
Transaction (or a series of related Affiliate Transactions related to a common
plan) that involves an aggregate Fair Market Value of more than $10.0 million,
the Company shall, prior to the consummation thereof, obtain a favorable
opinion as to the fairness of the financial terms of such transaction or series
of related transactions to the Company or the relevant Restricted Subsidiary,
as the case may be, from an Independent Financial Advisor and file the same
with the Trustee.

 

(b)
 The restrictions set forth in the first
paragraph of Section 4.15 shall not apply to:

 

(1)        reasonable fees and
compensation (including directors’ fees) paid to and indemnity provided on
behalf of, officers, directors, employees or consultants of the Company or any
Restricted Subsidiary of the Company as determined in good faith by the Company’s
Board of Directors or senior management;

 

(2)        transactions exclusively
between or among the Company and any of its Restricted Subsidiaries or
exclusively between or among such Restricted Subsidiaries, provided,
that such transactions are not otherwise prohibited by this Indenture;

 

(3)        any agreement as in effect
as of the Issue Date or any transaction contemplated thereby and any amendment
thereto or any replacement agreement thereto so long as any such amendment or
replacement agreement is not more disadvantageous to the Holders in any
material respect than the original agreement as in effect on the Issue Date;

 

(4)        Permitted Investments
described in clauses (10), (11) and (15) of the definition thereof and
Restricted Payments permitted by this Indenture;

 

(5)        any merger or other
transaction with an Affiliate solely for the purpose of reincorporating the
Company in another jurisdiction or creating a holding company of the Company;

 

(6)        any employment, stock
option, stock repurchase, employee benefit compensation, business expense
reimbursement, severance, termination or other employment-related agreements,
arrangements or plans entered into by the Company or any of its Restricted
Subsidiaries in the ordinary course of business;

 

(7)        issuances or sales of Qualified Capital Stock of the
Company to its Affiliates and employees, officers and directors of the Company
or any Restricted Subsidiary of the Company; and

 

(8)        the Management Agreement and payment of Management Fees pursuant thereto, provided, however, that
the aggregate amount of such Management Fee payments in any calendar year shall
not exceed $500,000.

 

53

 

SECTION
4.16.  Additional Subsidiary
Guarantees.

 

If the Company
or any of its Restricted Subsidiaries acquires or creates another Domestic
Restricted Subsidiary after the Issue Date (other than an Unrestricted
Subsidiary), then the Company shall cause such Domestic Restricted Subsidiary
to:

 

(1)           execute
and deliver to the Trustee a supplemental indenture substantially in the form
of Exhibit F hereto and endorse a notation of guarantee substantially in the
form included in Exhibit A hereto pursuant to which such Domestic Restricted
Subsidiary shall unconditionally guarantee on a senior secured basis all of the
Company’s obligations under the Notes and this Indenture on the terms set forth
in this Indenture;

 

(2)           take
such actions necessary or as the Collateral Agent reasonably determines to be
advisable to grant to the Collateral Agent for the benefit of the Holders a
perfected security interest in the assets of such new Domestic Restricted
Subsidiary which are of the type that constitute Collateral under the
Collateral Agreements, subject to the Permitted Liens and the terms of the
Senior Intercreditor Agreement, including the filing of Uniform Commercial Code
financing statements in such jurisdictions as may be required by the Security
Agreement or by law or as may be reasonably requested by the Collateral Agent;

 

(3)           take
such further action and execute and deliver such other documents specified in
this Indenture or otherwise reasonably requested by the Trustee or the
Collateral Agent to effectuate the foregoing; and

 

(4)           deliver
to the Trustee an Opinion of Counsel that such supplemental indenture and any
other documents required to be delivered have been duly authorized, executed
and delivered by such Domestic Restricted Subsidiary and constitute legal,
valid, binding and enforceable obligations of such Domestic Restricted
Subsidiary.

 

Thereafter, such Domestic Restricted Subsidiary shall be a Guarantor
for all purposes of this Indenture.

 

SECTION
4.17.  Impairment of Security
Interest.

 

Subject to the
Senior Intercreditor Agreement, neither the Company nor any of its Domestic
Restricted Subsidiaries will take or omit to take any action which would
adversely affect or impair in any material respect the Liens in favor of the
Collateral Agent with respect to the Collateral. Neither the Company nor any of
its Domestic Restricted Subsidiaries will enter into any agreement that
requires the proceeds received from any sale of Collateral to be applied to
repay, redeem, defease or otherwise acquire or retire any Indebtedness of any
Person, other than as permitted by this Indenture, the Notes, the Intercreditor
Agreements and the Collateral Agreements. The Company shall, and shall cause
each Guarantor to, at their sole cost and expense, execute and deliver all such
agreements and instruments as the Collateral Agent or the Trustee shall
reasonably request to more fully or accurately describe the property intended
to be Collateral or the obligations intended to be secured by the Collateral
Agreements. The Company shall, and shall cause each Guarantor to, at its sole
cost and expense, file any such notice filings or other agreements or
instruments as may be reasonably necessary or desirable under applicable law to
perfect the Liens created by the Collateral Agreements to the extent required
by the Collateral Agreements, subject to Permitted Liens.

 

SECTION
4.18.  Real Estate Mortgages
and Filings.

 

With respect
to any fee interest in any real property (individually and collectively, the “Premises”)
(a) owned by the Company or a Domestic Restricted Subsidiary on the Issue Date
or (b) acquired by the Company or a Domestic Restricted Subsidiary after the
Issue Date, with (i) a purchase

 

54

 

price or (ii)
as of the Issue Date, with a Fair Market Value, of greater than $1.5 million,
on the Issue Date in the case of clause (a) and within 90 days of the
acquisition thereof in the case of clause (b):

 

(1)      the Company shall deliver to
the Collateral Agent, as mortgagee, fully executed counterparts of Mortgages,
each dated as of the Issue Date or the date of acquisition of such property, as
the case may be, duly executed by the Company or the applicable Domestic
Restricted Subsidiary, together with evidence of the completion (or
satisfactory arrangements for the completion), of all recordings and filings of
such Mortgage as may be necessary to create a valid, perfected Lien, subject to
Permitted Liens, against the properties purported to be covered thereby;

 

(2)      the Company shall deliver to
the Collateral Agent a mortgagee’s title insurance policy in favor of the
Collateral Agent, as mortgagee in an amount equal to 100% of the Fair Market
Value of the Premises purported to be covered by the related Mortgage, insuring
that the Lien created by such Mortgage constitutes a valid Lien thereon free
and clear of all Liens, defects and encumbrances other than Permitted Liens,
and such policies shall also include, to the extent available, such
endorsements as shall be consistent with endorsements generally obtained in
connection with title policies for properties of like size and value in
comparable financings and shall be accompanied by evidence of the payment in
full of all premiums thereon; and

 

(3)     the Company shall deliver to
the Collateral Agent, with respect to the covered Premises, (x) the most recent
survey of such Premises in the possession or under the control of the Company
or any of its Domestic Restricted Subsidiaries, and (y) if such Premises is
acquired after the Issue Date, a survey certified in favor of the Trustee and
the Collateral Agent by the surveyor of such survey, which survey shall (I) be
reasonably acceptable to the title insurer providing the title insurance policy
relating to such property under clause (2) above and (II) allow such title
insurer to remove the standard survey exception from such title insurance
policy and, if available in the relevant jurisdiction, issue a survey
endorsement.

 

SECTION 4.19.  Conduct of Business.

 

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

 

Notwithstanding
anything to the contrary in the immediately preceding paragraph, Edgen
Acquisition Corporation will not engage in any business activities other than
those consisting of the Transactions or reasonably related thereto.

 

SECTION 4.20.  Reports to Holders.

 

Whether or not
required by the rules and regulations of the Securities and Exchange Commission
(the “SEC”), so long as any Notes are outstanding, the
Company will furnish to the Trustee and, upon request, to the Holders:

 

(1)      all quarterly and annual
financial information that would be required to be contained in a filing with
the SEC on Forms 10-Q and 10-K if the Company were required to file such Forms,
including a “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” that describes the financial condition and results of
operations of the Company and its consolidated Subsidiaries (showing in
reasonable detail, either on the face of the financial statements or in the
footnotes thereto and in Management’s Discussion and Analysis of Financial
Condition and Results of Operations, the financial condition and results of
operations of the Company and its Restricted Subsidiaries separate from the
financial condition and results of operations of the Unrestricted Subsidiaries
of the Company, if any) and, with respect to the

 

55

 

annual information only, a report thereon by the Company’s certified
independent accountants; and

 

(2)      all current reports that
would be required to be filed with the SEC on Form 8-K if the Company were
required to file such reports, in each case within the time periods specified
in the SEC’s rules and regulations.

 

Notwithstanding
the foregoing, the Company may satisfy such requirements prior to the
effectiveness of the registration statement contemplated by the Registration
Rights Agreement by filing with the SEC such registration statement within the
time period required for such filing as specified in the Registration Rights
Agreement, to the extent that any such registration statement contains
substantially the same information as would be required to be filed by the
Company if it were subject to the reporting requirements of Section 13 or 15(d)
of the Exchange Act, and by providing the Trustee and Holders with such
Registration Statement (and any amendments thereto) promptly following the filing
thereof.  Subject to Section 314 of the
TIA, the Company’s reporting obligations with respect to this paragraph and
clause (1) and (2) of the immediately preceding paragraph shall be satisfied in
the event the Company files such reports with the SEC and such reports are
publicly accessible via the EDGAR system (unless the SEC will not accept such
filing or any Holder reasonably requests such reports be furnished to it).

 

In addition,
following the consummation of the Exchange Offer, whether or not required by
the rules and regulations of the SEC, the Company will file a copy of all such
information and reports with the SEC for public availability within the time
periods specified in the SEC’s rules and regulations (unless the SEC will not
accept such a filing). In addition, the Company has agreed that, prior to the
consummation of the Exchange Offer, for so long as any Notes remain
outstanding, it will furnish to the Holders upon its request, the information
required to be delivered pursuant to Rule 144(A)(d)(4) under the Securities
Act.

 

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

 

SECTION
4.21.  Landlord, Bailee and
Consignee Waivers.

 

(a)           Each
of the Company and each of its Domestic Restricted Subsidiaries that is a
lessee of, or becomes a lessee of, real property on or in which it will
maintain, store, hold or locate assets having an aggregate Fair Market Value of
at least $250,000, is, and will be, required to use commercially reasonable
efforts to deliver to the Collateral Agent a landlord waiver, substantially in
the form of Exhibit H-1 attached to this Indenture, executed by the
lessor of such real property; provided that in the case
where such lease is a lease in existence on the Issue Date or the lessee
thereof that is a Domestic Restricted Subsidiary of the Company was not a
Domestic Restricted Subsidiary of the Company on the Issue Date, the Company or
such Domestic Restricted Subsidiary that is the lessee thereunder shall have 90
days from the Issue Date or the date it became a Domestic Restricted Subsidiary
after the Issue Date, as the case may be, to satisfy such requirement and shall
be relieved of such obligation with respect to any landlord waiver to the
extent the related lessor has refused to deliver such a landlord waiver
following such Person’s use of such commercially reasonable efforts.

 

(b)           Each of the Company and
each of its Domestic Restricted Subsidiaries that is a bailor of, or becomes a
bailor of, any of its assets having an aggregate Fair Market Value of at least
$250,000 with any bailee, is, and will be, required to use commercially
reasonable efforts to deliver to the Collateral Agent a bailee waiver, substantially
in the form of Exhibit H-2, executed by the bailee of such assets; provided
that in the case where such bailment is a bailment in existence on the Issue
Date or the bailor thereof that is a Domestic Restricted Subsidiary of the
Company was not a Domestic Restricted Subsidiary of the Company on the Issue
Date, the Company or such Domestic Restricted Subsidiary that

 

56

 

is the bailor thereunder shall have 90 days from the Issue Date or the
date it became a Domestic Restricted Subsidiary after the Issue Date, as the
case may be, to satisfy such requirement and shall be relieved of such
obligation with respect to any bailee waiver to the extent the related bailee
has refused to deliver such a bailee waiver following such Person’s use of such
commercially reasonable efforts.

 

(c)           Each of the Company and
each of its Domestic Restricted Subsidiaries that is a consignor of, or becomes
a consignor of, any of its assets having an aggregate Fair Market Value of at
least $250,000 with any consignee, is, and will be, required to use
commercially reasonable efforts to deliver to the Collateral Agent a consignee
waiver, substantially in the form of Exhibit H-2, executed by the
consignee of such assets; provided that in the case
where such consignment is a consignment in existence on the Issue Date or the
consignor thereof that is a Domestic Restricted Subsidiary of the Company was
not a Domestic Restricted Subsidiary of the Company on the Issue Date, the
Company or such Domestic Restricted Subsidiary that is the consignor thereunder
shall have 90 days from the Issue Date or the date it became a Domestic
Restricted Subsidiary after the Issue Date, as the case may be, to satisfy such
requirement and shall be relieved of such obligation with respect to any
consignee waiver to the extent the related consignee has refused to deliver
such a consignee waiver following such Person’s use of such commercially
reasonable efforts.

 

SECTION
4.22.  Payments for Consent.

 

The Company 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
for or as an inducement to any consent, waiver or amendment of any of the terms
or provisions of this Indenture, the Notes, any Collateral Agreement or the
Intercreditor Agreements unless such consideration is offered to be paid or is
paid to all Holders 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
4.23.  Additional Interest.

 

If Additional
Interest becomes payable by the Company pursuant to the Registration Rights
Agreement, the Company shall deliver to the Trustee an Officers’ Certificate
stating (i) the amount of Additional Interest due and payable, (ii) the Section
of the Registration Rights Agreement pursuant to which Additional Interest is
due and payable and (iii) the date on which Additional Interest is payable.  Unless and until a Responsible Officer of the
Trustee receives such an Officers’ Certificate, the Trustee may assume without
inquiry that no Additional Interest is payable; provided, that the failure of the Company to deliver to the
Trustee such Officers’ Certificate shall not relieve the Company of its
obligation to pay any such Additional Interest when due and payable.

 

ARTICLE FIVE

 

SUCCESSOR CORPORATION

 

SECTION
5.01.  Merger, Consolidation
and Sale of Assets.

 

The Company
will not, in a single transaction or series of related transactions,
consolidate or merge with or into any Person, or sell, assign, transfer, lease,
convey or otherwise dispose of (or cause or permit any Restricted Subsidiary of
the Company to sell, assign, transfer, lease, convey or otherwise dispose of)
all or substantially all of the Company’s assets (determined on a consolidated
basis for the Company and the Company’s Restricted Subsidiaries) to any Person
unless:

 

(1)      either:

 

(A)          the
Company shall be the surviving or continuing corporation; or

 

57

 

(B)           the
Person (if other than the Company) formed by such consolidation or into which
the Company is merged or the Person which acquires by sale, assignment,
transfer, lease, conveyance or other disposition the properties and assets of
the Company and of the Company’s Restricted Subsidiaries substantially as an
entirety (the “Surviving Entity”):

 

(x) shall be a corporation organized and validly existing under the
laws of the United States or any State thereof or the District of Columbia; and

 

(y) shall expressly assume, (i) by supplemental indenture (in form and
substance reasonably satisfactory to the Trustee), executed and delivered to
the Trustee, the due and punctual payment of the principal of, and premium, if
any, interest and Additional Interest, if any, on all of the Notes and the
performance of every covenant of the Notes, this Indenture and the Registration
Rights Agreement on the part of the Company to be performed or observed
thereunder and (ii) by amendment, supplement or other instrument (in form and
substance reasonably satisfactory to the Trustee and the Collateral Agent),
executed and delivered to the Trustee, all obligations of the Company under the
Collateral Agreements, and in connection therewith shall cause such instruments
to be filed and recorded in such jurisdictions and take such other actions as
may be required by applicable law to perfect or continue the perfection of the
Lien created under the Collateral Agreements on the Collateral owned by or
transferred to the surviving entity;

 

(2)      immediately
after giving effect to such transaction and the assumption contemplated by
clause (1)(b)(y) above (including giving effect to any Indebtedness and
Acquired Indebtedness incurred or anticipated to be incurred in connection with
or in respect of such transaction), the Company or such Surviving Entity, as
the case may be, shall be able to incur at least $1.00 of additional
Indebtedness (other than Permitted Indebtedness) in compliance with Section
4.08;

 

(3)      immediately
after giving effect to such transaction and the assumption contemplated by
clause (1)(b)(y) above (including, without limitation, giving effect to any
Indebtedness and Acquired Indebtedness incurred or anticipated to be incurred and
any Lien granted in connection with or in respect of the transaction), no
Default or Event of Default shall have occurred or be continuing; and

 

(4)      the Company or
the Surviving Entity shall have delivered to the Trustee an Officers’
Certificate and if requested by the Trustee, an Opinion of Counsel, each
stating that such consolidation, merger, sale, assignment, transfer, lease,
conveyance or other disposition and, if a supplemental indenture is required in
connection with such transaction, such supplemental indenture comply with the
applicable provisions of this Indenture and that all conditions precedent in
this Indenture relating to such transaction have been satisfied.

 

For purposes
of the foregoing, the transfer (by lease, assignment, sale or otherwise, in a
single transaction or series of transactions) of all or substantially all of
the properties or assets of one or more Restricted Subsidiaries of the Company
the Capital Stock of which constitutes all or substantially all of the
properties and assets of the Company, shall be deemed to be the transfer of all
or substantially all of the properties and assets of the Company.

 

Each Guarantor
(other than any Guarantor whose Guarantee is to be released in accordance with
the terms of the Guarantee and this Indenture in connection with any
transaction complying with the provisions of Section 5.01 and Section
4.11) will not, and the Company will not cause or permit any Guarantor to,
consolidate with or merge with or into any Person, other than the Company 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 Person organized and existing under the laws of the United
States or any State thereof or the District of Columbia;

 

58

 

(2)      such entity
assumes (a) by supplemental indenture (in form and substance reasonably
satisfactory to the Trustee), executed and delivered to the Trustee, all of the
obligations of the Guarantor under the Guarantee and the performance of every
covenant of the Guarantee, this Indenture and the Registration Rights Agreement
and (b) by amendment, supplement or other instrument (in form and substance
satisfactory to the Trustee and the Collateral Agent) executed and delivered to
the Trustee and the Collateral Agent, all obligations of the Guarantor under
the Collateral Agreements and in connection therewith shall cause such instruments
to be filed and recorded in such jurisdictions and take such other actions as
may be required by applicable law to perfect or continue the perfection of the
Lien created under the Collateral Agreements on the Collateral owned by or
transferred to the surviving entity; and

 

(3)      immediately
after giving effect to such transaction, no Default or Event of Default shall
have occurred and be continuing.

 

Any merger or
consolidation of (i) a Guarantor with and into the Company (with the Company
being the surviving entity) or another Guarantor or (ii) a Guarantor or the
Company with an Affiliate organized solely for the purpose of reincorporating
such Guarantor or the Company in another jurisdiction in the United States or
any state thereof or the District of Columbia need only comply with:

 

(A)          in
the case of a merger or consolidation described in clause (ii), clause (4) of
the first paragraph of Section 5.01; and

 

(B)           (x)
clause (1)(b)(y) of the first paragraph of Section 5.01and (y) clause
(2) of the immediately preceding paragraph.

 

SECTION
5.02.  Successor Entity
Substituted.

 

Upon any
consolidation, combination or merger or any transfer of all or substantially
all of the assets of the Company in accordance with the provisions of Section
5.01, in which the Company is not surviving or the continuing corporation,
the successor Person formed by such consolidation or into which the Company is
merged or to which such conveyance, lease or transfer is made shall succeed to,
and be substituted for, and may exercise every right and power of, the Company
under this Indenture and the Notes with the same effect as if such surviving
entity had been named as such. Upon such substitution, the Company and any
Guarantors that remain Subsidiaries of the Company shall be released from their
obligations under this Indenture and the Guarantees.

 

ARTICLE SIX

 

DEFAULT AND REMEDIES

 

SECTION 6.01.  Events of Default.  The following events are defined as “Events
of Default”:

 

(1)      the
failure to pay interest or Additional Interest, if any, on any Notes when the
same becomes due and payable and the default continues for a period of 30 days;

 

(2)      the
failure to pay the principal of or premium, if any, on any Notes, when such
principal becomes due and payable, at maturity, upon redemption or otherwise
(including the failure to make a payment to purchase Notes validly tendered and
not properly withdrawn pursuant to a Change of Control Offer or a Net Proceeds
Offer);

 

(3)      the
failure by the Company or any of its Restricted Subsidiaries to comply with Section
4.10 and Section 5.01;

 

(4)      the
failure by the Company or any of its Restricted Subsidiaries for 45 days after
notice to the Company by the Trustee or the Holders of at least 25% in
outstanding principal amount of the Notes to comply with Section 4.08, Section
4.09 and Section 4.11, and remedy the default arising from the
failure by the Company or any such Restricted Subsidiary to so comply;

 

59

 

(5)      the
failure by the Company or any of its Restricted Subsidiaries for 60 days after
notice to the Company by the Trustee or the Holders of at least 25% in
outstanding principal amount of the Notes to comply with any of the other
agreements in this Indenture or any Collateral Agreement and remedy the default
arising from the failure by the Company or any such Restricted Subsidiary to so
comply;

 

(6)      the
failure to pay at final maturity (giving effect to any applicable waivers,
amendments, grace periods and any extensions thereof) the principal amount of
any Indebtedness of the Company or any Restricted Subsidiary of the Company, or
the acceleration of the final stated maturity of any such Indebtedness (which
acceleration is not rescinded, annulled or otherwise cured within 20 days from
the date of acceleration) if the aggregate principal amount of such
Indebtedness, together with the principal amount of any other such Indebtedness
in default for failure to pay principal at final maturity or which has been
accelerated (in each case with respect to which the 20-day period described
above has elapsed), aggregates $5.0 million or more at any time;

 

(7)      one
or more judgments in an aggregate amount in excess of $5.0 million shall have
been rendered against the Company or any of its Restricted Subsidiaries (other
than any judgment to the extent a reputable and solvent third party insurer has
not disclaimed coverage) and such judgments remain undischarged, unpaid or
unstayed for a period of 60 days after such judgment or judgments become final
and non-appealable;

 

(8)     the Company or any
Significant Subsidiary (A) commences a voluntary case or proceeding under any
Bankruptcy Code with respect to itself, (B) consents to the entry of an order
for relief against it in an involuntary case under any Bankruptcy Code, (C) consents
to the appointment of a Custodian of it or for substantially all of its
property, (D) makes a general assignment for the benefit of its creditors; or
(E) takes any corporate action to authorize or effect any of the
foregoing;

 

(9)     a court of competent
jurisdiction enters a judgment, decree or order for relief in respect of the
Company or any Significant Subsidiary of the Company in an involuntary case or
proceeding under any Bankruptcy Code, which shall (A) approve as properly
filed a petition seeking reorganization, arrangement, adjustment or composition
in respect of the Company or any Significant Subsidiary of the Company,
(B) appoint a Custodian of the Company or any Significant Subsidiary of
the Company or for substantially all of its property or (C) order the
winding-up or liquidation of its affairs; and such judgment, decree or order
shall remain unstayed and in effect for a period of sixty (60) consecutive
days;

 

(10)    any
Collateral Agreement at any time for any reason shall cease to be in full force
and effect in all material respects, or ceases to give the Collateral Agent the
Liens, rights, powers and privileges purported to be created thereby with
respect to Collateral having an aggregate Fair Market Value of more than $5.0
million, superior to and prior to the rights of all third Persons therein other
than the holders of Permitted Liens and subject to no other Liens except as
expressly permitted by the applicable Collateral Agreement, and such failure
shall continue for a period of 45 days;

 

(11)    the
Company or any of the Guarantors, directly or indirectly, contest in any manner
the effectiveness, validity, binding nature or enforceability of any Collateral
Agreement; or

 

(12)    any
Guarantee of a Significant Subsidiary ceases to be in full force and effect or
any Guarantee of a Significant Subsidiary is declared to be null and void and
unenforceable or any Guarantee of a Significant Subsidiary is found to be
invalid or any Guarantor denies its liability under its Guarantee (other than
by reason of release of a Guarantor in accordance with the terms of this
Indenture).

 

60

 

SECTION 6.02.  Acceleration.

 

(a)     If
an Event of Default (other than an Event of Default specified in Sections
6.01(8) and (9) with respect to the Company) shall occur and be
continuing and has not been waived, the Trustee or the Holders of at least 25%
in principal amount of outstanding Notes may declare the principal of and
premium, if any, accrued interest and Additional Interest, if any, on all the
Notes to be due and payable by notice in writing to the Company and the Trustee
specifying the Event of Default and that it is a “notice of acceleration” (the “Acceleration
Notice”), and the same shall become immediately due and payable.

 

(b)     If
an Event of Default specified in Sections 6.01(8) and (9)  with respect to the Company occurs and is
continuing, then all unpaid principal of, and premium, if any, and accrued and
unpaid interest and Additional Interest, if any, on all of the outstanding
Notes shall ipso facto become and be immediately due and payable
without any declaration or other act on the part of the Trustee or any Holder.

 

(c)     At
any time after a declaration of acceleration with respect to the Notes as
described in the preceding paragraphs, the Holders of a majority in principal
amount of the Notes may rescind and cancel such declaration and its
consequences:

 

(1)           if
the rescission would not conflict with any judgment or decree;

 

(2)           if
all existing Events of Default have been cured or waived except nonpayment of
principal, premium, if any, interest or Additional Interest, if any, that has
become due solely because of the acceleration;

 

(3)           to
the extent the payment of such interest is lawful, interest on overdue installments
of interest and overdue principal and premium, if any, and Additional Interest,
if any, which has become due otherwise than by such declaration of
acceleration, has been paid; and

 

(4)           in
the event of the cure or waiver of an Event of Default of the type described in
Sections 6.01(8) and (9), the Trustee shall have received an
Officers’ Certificate that such Event of Default has been cured or waived.

 

(d)     No
such rescission shall affect any subsequent Default or impair any right
consequent thereto.

 

SECTION 6.03.  Other Remedies.

 

If an Event of
Default occurs and is continuing, each of the Trustee and the Collateral Agent
may pursue any available remedy by proceeding at law or in equity to collect
the payment of principal of, premium, if any, or interest or Additional
Interest, if any, on the Notes or, subject to the Intercreditor Agreements, to
enforce the performance of any provision of the Notes, this Indenture or any of
the other Indenture Documents.

 

Each of the
Trustee and the Collateral Agent 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, the Collateral Agent or any Holder 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.  No remedy is exclusive of any other
remedy.  All available remedies are
cumulative to the extent permitted by law.

 

61

 

SECTION
6.04.  Waiver of Past Defaults.

 

Subject to Sections
2.09, 6.02(c), 6.07 and 9.02, the Holders of a
majority in principal amount of the Notes may waive any existing Default or
Event of Default and its consequences, except (other than as provided in Section
6.02(c)) a default in the payment of the principal of or premium, if any,
interest, or Additional Interest, if any, on any Notes.  When a Default or Event of Default is waived,
it is cured and ceases to exist.

 

SECTION 6.05.  Control by Majority.

 

Subject to Section
2.09, the Intercreditor Agreements and applicable law, the Holders of a
majority in principal amount of the outstanding Notes may direct the time,
method and place of conducting any proceeding for exercising any remedy
available to the Trustee or the Collateral Agent, as the case may be, or
exercising any trust or power conferred on the Trustee or the Collateral Agent,
as the case may be, including, without limitation, any remedies provided for in
Section 6.03.  Subject to Section
7.01 and 7.02(f), however, the Trustee or the Collateral Agent, as
the case may be, may refuse to follow any direction (which direction, if sent
to the Trustee or the Collateral Agent, as the case may be, shall be in
writing) that the Trustee or the Collateral Agent, as the case may be,
reasonably believes conflicts with any applicable law, the Intercreditor
Agreements or any of the other Indenture Documents, that the Trustee or the
Collateral Agent, as the case may be, determines may be unduly prejudicial to
the rights of another Holder, or that may subject the Trustee or the Collateral
Agent, as the case may be, to personal liability; provided that the
Trustee or the Collateral Agent, as the case may be, may take any other action
deemed proper by the Trustee or the Collateral Agent, as the case may be, which
is not inconsistent with such direction (which direction, if sent to the
Trustee or the Collateral Agent, as the case may be, shall be in writing).

 

SECTION 6.06.  Limitation on Suits.

 

A Holder may not
pursue any remedy with respect to this Indenture or the Notes unless:

 

(1)           the Holder gives to the
Trustee written notice of a continuing Event of Default;

 

(2)           subject to Section 2.09, Holders of at least 25% in
principal amount of the outstanding Notes make a written request to the Trustee
to institute proceedings in respect of that Event of Default;

 

(3)           such Holders offer to
the Trustee indemnity reasonably satisfactory to the Trustee against any loss,
liability or expense to be incurred in compliance with such request;

 

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

 

(5)           during such sixty (60)
day period the Holders of a majority in principal amount of the outstanding
Notes do not give the Trustee a written direction which, in the opinion of the
Trustee, is inconsistent with the request.

 

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

 

62

 

SECTION
6.07.  Rights of Holders to
Receive Payment.

 

Notwithstanding
any other provision of this Indenture, the right of any Holder to receive
payment of principal of, premium, if any, and interest and Additional Interest,
if any, on a Note, on or after the respective due dates expressed in such Note,
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 or Collateral Agent.

 

If an Event of
Default specified in Section 6.01(1) or (2) occurs and is
continuing, subject to the Intercreditor Agreements, the Trustee or the
Collateral Agent may recover judgment (i) in its own name and (ii)(x) in the
case of the Trustee, as trustee of an express trust or (y) in the case of the
Collateral Agent, as collateral agent on behalf of each of the Secured Parties,
in each case against the Company or any other obligor on the Notes for the
whole amount of principal of, premium, if any, and accrued interest and
Additional Interest, if any, remaining unpaid on, the Notes, together with
interest on overdue principal and, to the extent that payment of such interest
is lawful, interest on overdue installments of interest and Additional
Interest, if any, at the rate set forth in Section 4.01 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, the Collateral Agent and their respective agents and counsel and
any other amounts due any such Person under the Collateral Agreements and Section
7.07.

 

SECTION
6.09.  Trustee May File Proofs
of Claim.

 

The Trustee and
the Collateral Agent are 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 or the Collateral Agent (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, the
Collateral Agent, their respective agents and counsel) and the Holders allowed
in any judicial proceedings relating to the Company or any other obligor upon
the Notes, any of their respective creditors or any of their respective
property and, subject to the Intercreditor Agreements, shall be entitled and
empowered to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute the same, and any Custodian in
any such judicial proceedings is hereby authorized by each Holder to make such
payments to the Trustee or Collateral Agent and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to
the Trustee or Collateral Agent any amount due to it for the reasonable
compensation, expenses, taxes, disbursements and advances of the Trustee, the
Collateral Agent, their respective agents and counsel, and any other amounts
due any such Person under the Collateral Agreements and Section 7.07.  The Company’ payment obligations under this Section
6.09 shall be secured in accordance with the provisions of Section 7.07.  Nothing herein contained shall be deemed to
authorize the Trustee or Collateral Agent 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
thereof, or to authorize the Trustee or the Collateral Agent, as the case may
be, to vote in respect of the claim of any Holder in any such proceeding.

 

SECTION 6.10.  Priorities.

 

If the Trustee
collects any money or property pursuant to this Article Six, it shall
pay out the money in the following order:

 

First:  to the Trustee, the Collateral Agent, the
Paying Agent and the Registrar for amounts due under Section 7.07
(including payment of all compensation expense, all liabilities incurred and
all advances made by the Trustee or the Collateral Agent, as the case may be,
and the costs and expenses of collection);

 

63

 

Second:  if the Holders are forced to proceed against
the Company directly without the Trustee or the Collateral Agent, to Holders
for their collection costs;

 

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

 

Fourth:  to the Company or any other obligor on the
Notes, as their interests may appear, or as a court of competent jurisdiction
may direct.

 

The Trustee, upon
prior written notice to the Company, may fix a record date and payment date for
any payment to Holders pursuant to this Section 6.10.

 

SECTION
6.11.  Undertaking for Costs.

 

All parties to
this Indenture agree, and each Holder by its acceptance of its Note shall be
deemed to have agreed, that in any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee or the
Collateral Agent, as the case may be, for any action taken or omitted by it as
Trustee or the Collateral Agent, as the case may be, 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 or the
Collateral Agent, as the case may be, a suit by a Holder pursuant to Section
6.07, or a suit by a Holder or Holders of more than 10% in principal amount
of the outstanding Notes.

 

SECTION
6.12.  Restoration of Rights
and Remedies.

 

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

 

ARTICLE SEVEN

TRUSTEE

 

SECTION 7.01.  Duties of Trustee.

 

The duties and
responsibilities of the Trustee shall be as provided by the TIA and as set
forth herein.

 

(a)           If
an Event of Default has occurred and is continuing, the Trustee shall exercise
such rights and powers vested in it by this Indenture and use the same degree
of care and skill in its exercise thereof 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:

 

64

 

(1)           the duties of the
Trustee shall be determined solely by the express provisions of this Indenture
and the TIA and the Trustee need perform only those duties as are specifically
set forth in this Indenture and no covenants or obligations shall be implied in
or 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
requirements of this Indenture; provided,
however, in case of any such
certificates or opinions furnished to the Trustee which by the provisions
hereof are furnished to the Trustee, the Trustee shall examine the certificates
and opinions to determine whether or not they conform to the requirements of
this Indenture.

 

(c)           Notwithstanding
anything to the contrary herein contained, the Trustee may not be relieved from
liability for its own negligent action, its own negligent failure to act, or
its own willful misconduct, except that:

 

(3)           this clause (c)
does not limit the effect of clause (b) of this Section 7.01;

 

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

 

(5)           the Trustee shall 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)           No
provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any liability (financial or otherwise).  The Trustee shall be under no obligation to
exercise any of its rights or powers under this Indenture Documents at the
request, order or direction of any Holders unless such Holders have offered to
the Trustee security and indemnity reasonably satisfactory to the Trustee
against the costs and expenses which may be incurred by it (including repayment
of its own funds) in compliance with such request, order or direction.

 

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

 

(f)            The
Trustee shall not be liable for interest on any money or assets received by it
except as the Trustee may agree in writing with the Company.  Money and assets held in trust by the Trustee
need not be segregated from other funds or assets held by the Trustee except to
the extent required by law.

 

SECTION 7.02.  Rights of Trustee.

 

Subject to Section
7.01:

 

(a)           The Trustee may
conclusively rely and shall be fully protected in acting or refraining from
acting upon any resolution, certificate, statement instrument, opinion, report,
request direction, consent, order, bond, note or other paper or 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 acts
or refrains from acting, it may consult with counsel of its selection and may
require an Officers’ Certificate or an Opinion of Counsel, or both, which shall
conform to Sections 11.04 and 11.05.  The Trustee shall not be liable for any
action it takes or

 

65

 

omits
to take in good faith in reliance on such Officers’ Certificate or Opinion of
Counsel.  The written advice of the
Trustee’s counsel or any Opinion of Counsel shall be full and complete
authorization and protection from liability in respect of any action taken,
suffered or omitted by the Trustee hereunder in good faith and in reliance
thereon.

 

(c)           The Trustee may act
through its attorneys and agents and shall not be responsible for the
misconduct or negligence of any agent appointed with due care.

 

(d)           The Trustee shall not
be liable for any action that it takes or omits to take in good faith which it
reasonably believes to be authorized or within its rights or powers under this
Indenture.

 

(e)           The Trustee shall not
be bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, notice, request,
direction, consent, order, bond, debenture, or other paper or document, but the
Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled, upon
reasonable notice to the Company, to examine the books, records and premises of
the Company, personally or by agent or attorney and to consult with the
officers and representatives of the Company, including the Company’ accountants
and attorneys.  Except as expressly
stated herein to the contrary, in no event shall the Trustee have any
responsibility to ascertain whether there has been compliance with any of the
covenants or provisions of Articles Four or Five hereof.

 

(f)            The Trustee shall not
be required to give any bond or surety in respect of the performance of its
powers and duties hereunder.

 

(g)           Unless otherwise
specifically provided in this Indenture, any demand, request, direction or
notice from the Company shall be sufficient if signed by an Officer of the
Company and any resolution of the Board of Directors shall be sufficient if
evidenced by a copy of such resolution certified by an Officer of the Company
to have been duly adopted and in full force and effect on the date hereof.

 

(h)           The Trustee shall not
be deemed to have notice or be charged with knowledge of any Default or Event
of Default unless the Trustee shall have received from the Company, any
Guarantor or any other obligor upon the Notes or from any Holder written notice
thereof at its address set forth in Section 11.02 hereof, and such
notice references the Notes and this Indenture.

 

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

 

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

 

(k)           The permissive right of
the Trustee to take any action under this Indenture Documents shall not be
construed as a duty to so act.

 

66

 

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

 

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, any Subsidiary of the Company or their
respective Affiliates with the same rights it would have if it were not
Trustee.  Any Agent may do the same with
like rights.  However, the Trustee must
comply with Sections 7.10 and 7.11 of this Indenture, and the
Trustee is subject to TIA Sections 310(b) and 311.

 

SECTION
7.04.  Trustee’s Disclaimer.

 

The Trustee makes
no representation as to the validity, adequacy or sufficiency of this
Indenture, the Notes or the Collateral Agreements, and it shall not be
accountable for the Company’ use of the proceeds from the Notes, and it shall
not be responsible for any statement of the Company in this Indenture, the
Notes, the Collateral Agreements or any other documents in connection with the
issuance of the Notes other than the Trustee’s certificate of authentication,
which shall be taken as the statement of Company, and the Trustee assumes no
responsibility for their correctness.

 

Beyond the
exercise of reasonable care in the custody thereof and the fulfillment of its
obligations under this Indenture and the Collateral Agreements, the Trustee
shall have no duty as to any Collateral in its possession or control or in the
possession or control of any agent or bailee or any income thereon or as to preservation
of rights against prior parties or any other rights pertaining thereto.  The Trustee shall be deemed to have exercised
reasonable care in the custody of the Collateral in its possession if the
Collateral is accorded treatment substantially equal to that which it accords
its own property.

 

The Trustee makes
no representations as to and shall not be responsible for the existence,
genuineness, value, sufficiency or condition of any of the Collateral or as to
the security afforded or intended to be afforded thereby, hereby or by any
Collateral Agreement, or for the validity, perfection, priority or
enforceability of the Liens or security interests in any of the Collateral
created or intended to be created by any of the Collateral Agreements, whether
impaired by operation of law or by reason of any action or omission to act on
its part hereunder, except to the extent such action or omission constitutes
gross negligence or willful misconduct on the part of the Trustee, for the
validity or sufficiency of the Collateral, any Collateral Agreements or any
agreement or assignment contained in any thereof, for the validity of the title
of the Company or any Guarantor to the Collateral, for insuring the Collateral
or for the payment of taxes, charges, assessments or Liens upon the Collateral
or otherwise as to the maintenance of the Collateral.

 

SECTION 7.05.  Notice of Default.

 

If a Default or an
Event of Default occurs and is continuing and if a Trust Officer has actual
knowledge or has received written notice from the Company or any Holder, the
Trustee shall mail to each Holder, with a copy to the Company, notice of the
Default or Event of Default within ninety (90) days thereof.  Except in the case of a Default or an Event
of Default in payment of principal of, premium, if any, or interest and
Additional Interest, if any, on, any Note, including an accelerated payment and
the failure to make payment on the Change of Control Payment Date pursuant to a
Change of Control Offer and, except in the case of a failure to comply with Article
Five, the Trustee may withhold the notice if and

 

67

 

so long as its Board of Directors, the executive committee of its Board
of Directors or a committee of its directors and/or Trust Officers in good
faith determines that withholding the notice is in the interest of the Holders.

 

SECTION 7.06.  Reports by Trustee to Holders.

 

Within sixty (60)
days after each February 1, beginning with February 1, 2006, the Trustee shall,
to the extent that any of the events described in TIA Section 313(a) occurred
within the previous twelve months, but not otherwise, mail to each Holder a
brief report dated as of such date that complies with TIA Section 313(a).  The Trustee also shall comply with TIA
Sections 313(b) and (c).

 

A copy of each
report at the time of its mailing to Holders shall be mailed to the Company and
filed by the Trustee with the SEC and each stock exchange or market, if any, on
which the Notes are listed or quoted.

 

The Company shall
promptly notify the Trustee if the Notes become listed or quoted on any stock
exchange or market and the Trustee shall comply with TIA Section 313(d) and any
delisting thereof.

 

SECTION 7.07.  Compensation and Indemnity.

 

The Company and
the Guarantors, jointly and severally, shall pay to the Trustee (the “Indemnified
Party”) from time to time such compensation for its services as Trustee, as
the case may be, as shall from time to time be agreed in writing.  The Trustee’s compensation shall not be
limited by any law on compensation of a trustee of an express trust.  The Company shall reimburse the Indemnified
Party upon request for all reasonable out-of-pocket expenses incurred or made
by it in connection with the performance of its duties under, as the case may
be, the Indenture Documents.  Such
expenses shall include the reasonable fees and expenses of the Indemnified
Party’s agents and counsel.

 

The Company and
the Guarantors, jointly and severally, hereby agree to indemnify the
Indemnified Party for, and to hold it harmless against, any loss, cost, claim,
liability or expense (including taxes) incurred by of it except for such
actions to the extent caused by any negligence, bad faith or willful misconduct
on the part of the Indemnified Party, arising out of or in connection with the
Indenture Documents, or the administration of this trust, including the
reasonable costs and expenses of enforcing this Indenture or the other
Indenture Documents against the Company or any Guarantor (including this Section
7.07) and defending itself. against any claim or liability in connection
with the exercise or performance of any of its rights, powers or duties
hereunder or thereunder (including the reasonable fees and expenses of
counsel).  The Trustee shall notify the Company
promptly of any claim asserted against it for which the Trustee may seek
indemnity hereunder or under the other Indenture Documents.  Failure by the Trustee to so notify the
Company shall not relieve the Company of its obligations hereunder.  At the Indemnified Party’s sole discretion,
the Company shall defend the claim and the Indemnified Party shall cooperate
and may participate in the defense; provided that any settlement of a
claim shall be approved in writing by the Indemnified Party, which consent
shall not be unreasonably be withheld. 
Alternatively, the Indemnified Party may at its option have separate
counsel of its own choosing and the Company shall pay the reasonable fees and
expenses of such counsel; provided that the Company shall not be required
to pay such fees and expenses if it assumes the Indemnified Party’s defense and
there is no conflict of interest between the Company and the Indemnified Party
in connection with such defense as reasonably determined by the Indemnified
Party.  The Company need not pay for any
settlement made without its written consent, which consent shall not be
unreasonably withheld.

 

To secure the
Company’s and each Guarantor’s payment obligations in this Section 7.07,
the Indemnified Party shall have a lien prior to the Notes on all Collateral
held or collected by the Trustee or

 

68

 

the Collateral Agent, in its capacity as such, except assets or money
held in trust to pay principal of or interest and Additional Interest, if any,
on particular Notes which have been called for redemption.

 

When an
Indemnified Party incurs expenses or renders services after an Event of Default
specified in Section 6.01(8) or (9) occurs, such expenses
(including the reasonable fees and expenses of its counsel) and the
compensation for such services are intended to constitute expenses of
administration under any Bankruptcy Code.

 

The obligations of
the Company and the Guarantors under this Section 7.07 shall survive the
satisfaction and discharge of this Indenture, termination of the Collateral
Agreements or the other Indenture Documents or the resignation or removal of
the Trustee, or the Collateral Agent.

 

The Trustee shall
comply with the provisions of TIA Section 312(b)(2) to the extent applicable.

 

SECTION
7.08.  Replacement of Trustee.

 

The Trustee may
resign by so notifying the Company.  The
Holders of a majority in aggregate principal amount of the outstanding Notes
may remove the Trustee by so notifying the Company and the Trustee in writing
and may appoint a successor Trustee.  The
Company, by a Board Resolution, may remove the Trustee if:

 

(1)           the Trustee fails to
comply with Section 7.10;

 

(2)           the Trustee is adjudged
bankrupt or insolvent;

 

(3)           a receiver or other
public officer takes charge of the Trustee or its property; or

 

(4)           the Trustee becomes
incapable of acting with respect to the Notes.

 

If the Trustee
resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Company shall notify each Holder in writing of such event and shall
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 outstanding Notes may appoint a
successor Trustee to replace the successor Trustee appointed by the Company.

 

A successor
Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company and thereupon the resignation or removal of the
retiring Trustee shall become effective and such successor Trustee, without any
further act, deed or conveyance, shall become vested with all rights, powers,
trusts, duties and obligations of the retiring Trustee and shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such Trustee so ceasing to act hereunder subject nevertheless to its lien, if
any, provided for in Section 7.07. 
Upon request of the Company or the successor Trustee, such retiring
Trustee shall at the expense of the Company and upon payment of the charges of
the Trustee then unpaid, execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee,
and shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder.

 

If a successor
Trustee does not take office within thirty (30) days after the retiring Trustee
resigns or is removed, the retiring Trustee, at the Company’ expense, the
Company or the Holders of at least 10% in principal amount of the outstanding
Notes may petition any court of competent jurisdiction for the appointment of a
successor Trustee.

 

69

 

If the Trustee
fails to comply with Section 7.10, any Holder who satisfies the
requirements of TIA Section 310(b) may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

 

The Company shall
give notice of any resignation and any removal of the Trustee and each
appointment of a successor Trustee to all Holders in writing.  Each notice shall include the name of the
successor Trustee and the address of its Corporate Trust Office.

 

SECTION 7.09.  Successor Trustee by Merger, Etc.

 

If the Trustee consolidates
with, merges or converts into, or transfers all or substantially all of its
corporate trust business to, another Person, the resulting, surviving or
transferee Person without any further act shall, if such resulting, surviving
or transferee Person is otherwise eligible hereunder, be the successor Trustee;
provided, however, that such Person shall be otherwise qualified
and eligible under this Article Seven.

 

In case any Notes
have been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such authenticating Trustee
may adopt such authentication and deliver the Notes so authenticated with the
same effect as if such successor Trustee had itself authenticated such Notes.

 

SECTION 7.10.  Eligibility; Disqualification.

 

This
Indenture shall always have a Trustee who satisfies the requirements of TIA
Sections 310(a)(1), (2), (3) and (5). 
The Trustee (or, in the case of a corporation included in a bank holding
company system, the related bank holding company) shall have a combined capital
and surplus of at least $50,000,000 as set forth in its most recent published
annual report of condition.  In addition,
if the Trustee is a corporation included in a bank holding company system, the
Trustee, independently of such bank holding company, shall meet the capital
requirements of TIA Section 310(a)(2). 
The Trustee shall comply with TIA Section 310(b); provided, however,
that there shall be excluded from the operation of TIA Section 310(b)(1) any
indenture or indentures under which other securities, or certificates of
interest or participation in other securities, of the Company are outstanding
if the requirements for such exclusion set forth in TIA Section 310(b)(1)
are met.  The provisions of TIA
Section 310 shall apply to the Company, as obligors of the Notes.

 

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

 

SECTION 7.11.  Preferential Collection of Claims Against
Company.

 

The Trustee shall
comply with TIA Section 311(a), excluding any creditor relationship listed
in TIA Section 311(b).  A Trustee
who has resigned or been removed shall be subject to TIA Section 311(a) to
the extent indicated therein.

 

SECTION 7.12.  Trustee as Paying Agent and Collateral
Agent.

 

References to the
Trustee in Sections 7.01(f), 7.02, 7.03, 7.04, 7.07,
7.08 and the first paragraph of Section 7.09 shall include the
Trustee in its role as Paying Agent, as Registrar and as Collateral Agent.

 

70

 

SECTION 7.13.  Form of Documents Delivered to Trustee.

 

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

 

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

 

ARTICLE EIGHT

SATISFACTION AND DISCHARGE OF INDENTURE

 

SECTION 8.01.  Legal Defeasance and Covenant Defeasance.

 

(a)           The
Company may, at its option and at any time, elect to have either paragraph
(b) or paragraph (c) below be applied to the outstanding Notes upon
compliance with the applicable conditions set forth in paragraph (d).

 

(b)           Upon the
Company’s exercise under paragraph (a) of the option applicable to
this paragraph (b), the Company and the Guarantors shall be deemed to
have been released and discharged from their obligations with respect to the
outstanding Notes, the Guarantees and the Collateral Agreements on the date the
applicable conditions set forth below are satisfied (hereinafter, “Legal
Defeasance”).  For this purpose, such
Legal Defeasance means that the Company shall be deemed to have paid and
discharged the entire Indebtedness represented by the outstanding Notes, which
shall thereafter be deemed to be “outstanding” only for the purposes of the
Sections and matters under this Indenture referred to in clause  (i)
and (ii) below, and the Company and the Guarantors shall be deemed to
have satisfied all their other obligations under such Notes and this Indenture,
the Guarantees and the Collateral Agreements, except for the following which
shall survive until otherwise terminated or discharged hereunder: (i) the
rights of Holders of outstanding Notes to receive solely from the trust fund
described in paragraph (d) below and as more fully set forth in such
paragraph payments in respect of the principal of, and premium, if any,
interest and Additional Interest, if any, on such Notes when such payments are
due, (ii) obligations listed in Section 8.03, subject to compliance
with this Section 8.01 and (iii) the rights, powers, trusts, duties and
immunities of the Trustee and the Company’s obligations in connection
therewith.  The Company may exercise its
option under this paragraph (b)
notwithstanding the prior exercise of its option under paragraph (c)
below with respect to the Notes.

 

(c)           Upon the
Company’s exercise under paragraph (a) of the option applicable to
this paragraph (c), the Company and its
Restricted Subsidiaries shall be released and discharged from their obligations
under any covenant contained in Sections 4.04 through 4.06, Sections
4.08 through 4.23 (provided that the release and discharge of the
Company’s obligations under Section 4.23 shall in no way relieve the
Company of its obligation to pay any Additional Interest when due and payable)
and Section 5.01(2), with respect to the outstanding Notes on and after
the date the conditions set forth below are satisfied (hereinafter, “Covenant
Defeasance”), and the Notes shall thereafter be deemed to be not “outstanding”
for the purpose of any direction, waiver, consent or declaration or act of
Holders (and the consequences of any thereof) in connection with such
covenants, but shall continue to be deemed “outstanding” for all other purposes
hereunder (it being understood that such Notes shall not be deemed

 

71

 

outstanding
for accounting purposes).  For this
purpose, such Covenant Defeasance means that, with respect to the outstanding
Notes and Guarantees, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such
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
shall 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
shall be unaffected thereby.  In
addition, upon the Company’s exercise under paragraph (a) hereof of the
option applicable to this paragraph (c), subject to the satisfaction of
the conditions set forth in paragraph (d) below, Sections 6.01(3) (solely as pertains
to Section 4.10 and Section 5.01(2)), 6.01(4), 6.01(5)
(solely as pertains to Sections 4.04 through 4.06, Sections
4.08 through 4.23 (provided that the release and discharge of
the Company’s obligations under Section 4.23 shall in no way relieve the
Company of its obligation to pay any Additional Interest when due and payable) and Section 5.01(2)), and Section
6.01(6) through Section 6.01(12) shall not constitute Events of
Default; provided  however, that in the case of Sections
6.01(8) and 6.01(9), to the extent the events described therein
occur within the nine month period following the Company’s exercise under paragraph
(a) of the option applicable to this paragraph (c), such events will
constitute Events of Default.

 

(d)           The
following shall be the conditions to application of either paragraph (b)
or paragraph (c) above to the outstanding Notes:

 

1.             The
Company shall have irrevocably deposited in trust with the Trustee, pursuant to
an irrevocable trust and security agreement in form and substance reasonably
satisfactory to the Trustee, U.S. Legal Tender or non-callable U.S. Government
Obligations or a combination thereof, in such amounts and at such times as are
sufficient, in the opinion of a nationally-recognized firm of independent
public accountants, to pay the principal of, and premium, if any, interest and
Additional Interest, if any, on the outstanding Notes on the stated dates for
payment or redemption, as the case may be; provided,
however, that the Trustee (or
other qualifying trustee) shall have received an irrevocable written order from
the Company instructing the Trustee (or other qualifying trustee) to apply such
U.S. Legal Tender or the proceeds of such U.S. Government Obligations to said
payments with respect to the Notes to maturity or redemption;

 

2.              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
failure to comply with Section 4.08 or Section 4.14 or Section
4.17 arising in connection with the borrowing of funds to fund the deposit
referenced in clause (1) above and the granting of any Lien securing such
borrowing) or insofar as Defaults or Events of Default from bankruptcy or
insolvency events are concerned, at any time in the period ending on the 91st
day after the date of such deposit;

 

3.             Such
Legal Defeasance or Covenant Defeasance shall not result in a breach or
violation of, or constitute a default hereunder (other than a Default or Event
of Default resulting from the failure to comply with Section 4.08 or Section
4.14 or Section 4.17 arising in connection with the borrowing of
funds to fund the deposit referenced in clause (1) above and the granting of
any Lien securing such borrowing) or any other material agreement or instrument
to which the Company or any of it Subsidiaries is a party or by which the
Company or any of its Subsidiaries is bound;

 

4.             (i) In
the event the Company elects paragraph (b) above, the Company shall
deliver to the Trustee an Opinion of Counsel in the United States of America,
in form and

 

72

 

substance
reasonably satisfactory to the Trustee, to the effect that (A) the Company
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 state that, Holders shall not recognize
income, gain or loss for federal income tax purposes as a result of such Legal
Defeasance contemplated hereby and shall be subject to federal income tax in
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 or (ii) in the event
the Company elects paragraph (c) above, the Company shall deliver to the
Trustee an Opinion of Counsel in the United States, in form and substance
reasonably satisfactory to the Trustee, to the effect that Holders shall not
recognize income, gain or loss for federal income tax purposes as a result of
such Covenant Defeasance contemplated hereby and shall be subject to federal
income tax in 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;

 

5.             The
Company shall have delivered to the Trustee an Officers’ Certificate stating
that the deposit under clause (1) was not made by the Company with the
intent of preferring the Holders over any other creditors of the Company or
with the intent of defeating, hindering, delaying or defrauding any other
creditors of the Company or others;

 

6.             The
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent specified herein
relating to the defeasance contemplated by this Section 8.01 have been
complied with.

 

Notwithstanding
the foregoing, the Opinion of Counsel required by Section 8.01(d)(4)(i) above
with respect to a Legal Defeasance need not be delivered if all Notes not
theretofore delivered to the Trustee for cancellation (1) have become due and
payable or (2) shall become due and payable on the maturity date within one
year under arrangements satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the Company.

 

In the event all or any portion of the Notes
are to be redeemed through such irrevocable trust, the Company must make
arrangements reasonably satisfactory to the Trustee, at the time of such
deposit, for the giving of the notice of such redemption or redemptions by the
Trustee in the name and at the expense of the Company.

 

SECTION 8.02.  Satisfaction and Discharge.

 

In addition to the
Company’s rights under Section 8.01, this Indenture (subject to Section
8.03), and all Liens in connection with the issuance of the Notes, shall be
discharged and shall cease to be in further effect (except as to surviving
rights or registration of transfer or exchange of the Notes, as expressly
provided for in this Indenture) as to all outstanding Notes when:

 

(1)           either:

 

(a)           all the Notes theretofore authenticated and
delivered (except lost, stolen or destroyed Notes which have been replaced or
paid and Notes for whose payment money has theretofore been deposited in trust
or segregated and held in trust by the Company and thereafter repaid to the
Company or discharged from such trust) have been delivered to the Trustee for
cancellation; or

 

(b)           all Notes not theretofore delivered to the
Trustee for cancellation (i) have become due and payable, (ii) will become due
and payable at their stated maturity within one year or (iii) are to be called
for redemption within one year under arrangements

 

73

 

reasonably satisfactory to
the Trustee, and the Company has irrevocably deposited or caused to be
deposited with the Trustee funds in an amount sufficient to pay and discharge
the entire Indebtedness on the Notes not theretofore delivered to the Trustee
for cancellation, for principal of, premium, if any, interest and Additional
Interest, if any, on the Notes to the date of deposit together with irrevocable
instructions from the Company directing the Trustee to apply such funds to the
payment thereof at maturity or redemption, as the case may be;

 

(2)           the Company has paid
all other sums payable under this Indenture and the Collateral Agreements by
the Company; and

 

(3)           the Company has
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel
stating that all conditions precedent under this Indenture relating to the
satisfaction and discharge of this Indenture have been complied with.

 

SECTION 8.03.  Survival of Certain Obligations.

 

Notwithstanding
the satisfaction and discharge of this Indenture and of the Notes referred to
in Section 8.01 or 8.02, the respective obligations of the Company
and the Trustee under Sections  2.03, 2.04, 2.05, 2.06,
2.07, 2.08, and 2.10, Sections 7.07 and 7.08
and Sections 8.05, 8.06 and 8.07 shall survive until the
Notes are no longer outstanding, and thereafter the obligations of the Company
and the Trustee under Sections 7.07, 8.04, 8.05, 8.06
and 8.07 shall survive.

 

SECTION
8.04.  Acknowledgment of
Discharge by Trustee and Collateral Agent.

 

Subject to Section
8.07, after (i) the conditions of Section 8.01 or 8.02
have been satisfied, (ii) the Company has paid or caused to be paid all
other sums payable hereunder by the Company and (iii) the Company has
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel,
each stating that all conditions precedent referred to in clause (i)
above relating to the satisfaction and discharge of this Indenture have been
complied with, the Trustee, upon written request, shall acknowledge in writing
the discharge of the Company’ obligations under this Indenture except for those
surviving obligations specified in Section 8.03 and the Collateral Agent
shall execute and deliver to the Company any document reasonably requested by
the Company to effect or evidence any release and discharge of Lien or
Collateral Agreement contemplated by Section 12.05.

 

SECTION
8.05.  Application of Trust
Moneys.

 

The Trustee shall
hold any U.S. Legal Tender or U.S. Government Obligations deposited with it in
the irrevocable trust established pursuant to Section 8.01.  The Trustee shall apply the deposited U.S.
Legal Tender or the U.S. Government Obligations, together with earnings
thereon, through the Paying Agent, in accordance with this Indenture and the
terms of the irrevocable trust agreement established pursuant to Section
8.01, to the payment of principal of, premium, if any, and interest and
Additional Interest, if any, on the Notes. 
Anything in this Article Eight to the contrary notwithstanding,
the Trustee shall deliver or pay to the Company from time to time upon the
Company’ request any U.S. Legal Tender or U.S. Government Obligations held by
it as provided in Section 8.01(d) which, in the opinion of a
nationally-recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, are in excess of the
amount thereof that would then be required to be deposited to effect an
equivalent Legal Defeasance or Covenant Defeasance.

 

The Company shall
pay and indemnify the Trustee against any tax, fee or other charge imposed on
or assessed against the U.S. Government Obligations deposited pursuant to Section
8.01 or 8.02 or the

 

74

 

principal, premium, if any, and interest and Additional Interest, if
any, received in respect thereof other than any such tax, fee or other charge
which by law is for the account of the Holders of outstanding Notes.

 

SECTION
8.06.  Repayment to the
Company; Unclaimed Money.

 

Subject to Sections
7.07, 8.01 and 8.02, the Trustee and the Paying Agent shall
promptly pay to the Company upon written request from the Company any excess
U.S. Legal Tender or U.S. Government Obligations held by them at any time.  The Trustee and the Paying Agent shall pay to
the Company, upon receipt by the Trustee or the Paying Agent, as the case may
be, of a written request from the Company any money held by it for the payment
of principal, premium, if any, or interest and Additional Interest, if any,
that remains unclaimed for two years after payment to the Holders is required,
without interest thereon; provided, however, that the Trustee and
the Paying Agent before being required to make any payment may, but need not,
at the expense of the Company cause to be published once in a newspaper of
general circulation in the City of New York or mail to each Holder entitled to
such money notice that such money remains unclaimed and that after a date
specified therein, which shall be at least thirty (30) days from the date of
such publication or mailing, any unclaimed balance of such money then remaining
shall be repaid to the Company, without interest thereon.  After payment to the Company, Holders
entitled to money must look solely to the Company for payment as general
creditors unless an applicable abandoned property law designated another
Person, and all liability of the Trustee or Paying Agent with respect to such
money shall thereupon cease.

 

SECTION 8.07.  Reinstatement.

 

If the Trustee or
Paying Agent is unable to apply any U.S. Legal Tender or U.S. Government
Obligations in accordance with Section 8.01 or 8.02 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 Company’s and each Guarantor’s obligations under this
Indenture and each other Indenture Document to which such Person is a party
shall be revived and reinstated as though no deposit had occurred pursuant to Section
8.01 or 8.02 until such time as the Trustee or Paying Agent is
permitted to apply all such U.S. Legal Tender or U.S. Government Obligations in
accordance with Section 8.01 or 8.02; provided, however,
that if the Company have made any payment of premium, if any, or interest and
Additional Interest, if any, on or principal of any Notes because of the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Notes to receive such payment from the money or U.S.
Government Obligations held by the Trustee or Paying Agent.

 

ARTICLE NINE

AMENDMENTS, SUPPLEMENTS AND WAIVERS

 

SECTION
9.01.  Without Consent of
Holders.

 

From time to time, the Company,
the Guarantors, the Trustee and, if such amendment, modification or supplement
relates to any Collateral Agreement or the Intercreditor Agreements, the
Collateral Agent, without the consent of the Holders, may amend, modify or
supplement this Indenture, the Notes, the Guarantees, the Collateral Agreements
and the Intercreditor Agreements:

 

(1)           to cure any ambiguity,
defect or inconsistency contained therein;

 

(2)           to provide for
uncertificated Notes in addition to or in place of certificated Notes;

 

(3)           to provide for the
assumption of the Company’s or a Guarantor’s obligations to Holders in
accordance with Section 5.01;

 

75

 

(4)           to make any change that
would provide any additional rights or benefits to the Holders or that does not
adversely affect the legal rights of any such Holder under this Indenture, the
Notes, the Guarantees or the Collateral Agreements;

 

(5)           to comply with
requirements of the SEC in order to effect or maintain the qualification of
this Indenture under the TIA;

 

(6)           to allow any Subsidiary
or any other Person to guarantee the Notes;

 

(7)           to release a Guarantor
as permitted by this Indenture and the relevant Guarantee; or

 

(8)           if necessary, in connection
with any addition or release of Collateral permitted under the terms of this
Indenture or Collateral Agreements, so long as such amendment, modification or
supplement does not, in the opinion of the Trustee and, if such amendment,
modification or supplement relates to any Collateral Agreement, the Collateral
Agent, adversely affect the rights of any of the Holders in any material
respect. In formulating its opinion on such matters, each of the Trustee and,
if such amendment, modification or supplement relates to any Collateral
Agreement, the Collateral Agent, will be entitled to rely on such evidence as
it deems appropriate, including, without limitation, solely on an Opinion of
Counsel.

 

After an
amendment, modification, waiver or supplement under this Section 9.01
becomes effective, the Company shall mail to the Holders affected thereby a
notice briefly describing the amendment, modification, waiver or
supplement.  Any failure of the Company
to mail such notice, or any defect therein, shall not, however, in any way
impair or affect the validity of any such amendment, modification, waiver or
supplement or constitute an Event of Default hereunder.

 

SECTION
9.02.  With Consent of Holders.

 

The Company and
the Guarantors, when authorized by a Board Resolution, and the Trustee, or the
Collateral Agent, as applicable, together, with the written consent of the
Holder or Holders of at least a majority in aggregate principal amount of the
outstanding Notes, may amend, modify or supplement this Indenture, the Notes,
the Guarantees and the Collateral Agreements without notice to any other
Holders.  The Holder or Holders of a
majority in aggregate principal amount of the outstanding Notes may waive
compliance by the Company with any provision of this Indenture, any Collateral
Agreement or the Notes without notice to any other Holder.  However, no amendment, modification, supplement or waiver, including a waiver
pursuant to Section 6.04, shall without the consent of each Holder of
each Note affected thereby:

 

(1)           reduce the principal
amount of Notes whose Holders must consent to an amendment, supplement or
waiver of any provision of this Indenture or the Notes;

 

(2)           reduce the rate of or
change or have the effect of changing the time for payment of interest,
including default interest or Additional Interest, on any Notes;

 

(3)           reduce the principal of
or change or have the effect of changing the fixed maturity of any Notes, or
change the date on which any Notes may be subject to redemption or reduce the
Redemption Price therefor;

 

(4)           make any Notes payable
in money other than that stated in the Notes;

 

(5)           make any change in
provisions of this Indenture protecting the right of each Holder to receive
payment of principal of, premium, if any, interest and Additional Interest, if
any, on such Note on or after the due date thereof or to bring suit to enforce
such payment, or

 

76

 

permitting
Holders of a majority in principal amount of Notes to waive Defaults or Events
of Default;

 

(6)           amend, change or modify
in any material respect the obligation of the Company to make and consummate a
Change of Control Offer after the occurrence of a Change of Control, or make
and consummate a Net Proceeds Offer with respect to any Asset Sale that has
been consummated or modify any of the provisions or definitions with respect
thereto;

 

(7)           modify or change any
provision of this Indenture or the related definitions affecting the ranking of
the Notes or any Guarantee or any Lien created under any Collateral Agreement
in a manner which adversely affects the Holders;

 

(8)           release any Guarantor
from any of its obligations under its Guarantee or this Indenture otherwise
than in accordance with the terms of this Indenture;

 

(9)           release all or
substantially all of the Collateral otherwise than in accordance with the terms
of this Indenture and the Collateral Agreements; or

 

(10)         make any change to Section
9.01 or this Section 9.02.

 

It shall not be
necessary for the consent of the Holders under this Section 9.02 to
approve the particular form of any proposed amendment, supplement or waiver,
but it shall be sufficient if such consent approves the substance thereof.

 

After an
amendment, supplement or waiver under this Section 9.02 becomes
effective, the Company shall mail to the Holders affected thereby a notice
briefly describing the amendment, supplement or waiver.  Any failure of the Company to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such amendment, supplement or waiver.

 

SECTION 9.03.  Compliance with TIA.

 

Every amendment,
waiver or supplement of this Indenture, the Notes, the Collateral Agreements or
the Guarantees shall comply with the TIA as then in effect.

 

SECTION
9.04.  Revocation and Effect of
Consents.

 

Until an
amendment, waiver or supplement becomes effective (which may be prior to any
such amendment, waiver or supplement becoming operative), a consent to it by a
Holder is a continuing consent by the Holder 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.  Subject to the following paragraph, any such
Holder or subsequent Holder may revoke the consent as to such Holder’s Note or
portion of such Note by written notice to the Trustee and the Company received
before the date on which the Trustee and if such amendment, waiver or
supplement relates to any Collateral Agreement, the Collateral Agent, receives
written consents from the Holders of a requisite percentage in principal amount
of the outstanding Notes or receives an Officers’ Certificate certifying that
the Holders of the requisite principal amount of Notes have consented (and not
theretofore revoked such consent) to the amendment, supplement or waiver.  An amendment, waiver or supplement shall
become effective upon receipt by the Trustee or the Collateral Agent, as the
case may be, of written consents from the Holders of the requisite percentage
in principal amount of the outstanding Notes or such Officers’ Certificate,
whichever first occurs, and the execution thereof by the Trustee or the
Collateral Agent, as the case may be.

 

77

 

The Company may,
but shall not be obligated to, fix a record date for the purpose of determining
the Holders entitled to consent to any amendment, supplement or waiver.  If a record date is fixed, then
notwithstanding the last sentence of the immediately preceding paragraph, those
Persons who were Holders at such record date (or their duly designated
proxies), and only those Persons, shall be entitled to revoke any consent
previously given, whether or not such Persons continue to be Holders after such
record date.  No such consent shall be
valid or effective for more than ninety (90) days after such record date.

 

After an
amendment, supplement or waiver becomes effective, it shall bind every Holder
unless it makes a change described in any of clauses (1) through (10)
of Section 9.02, in which case, the amendment, supplement or waiver
shall bind only each Holder of a Note who has consented to it and every
subsequent Holder of a Note or portion of a Note that evidences the same debt
as the consenting Holder’s Note; provided that any such waiver shall not
impair or affect the right of any Holder to receive payment of principal of,
premium, if any, and interest and Additional Interest, if any, on a Note, on or
after the respective due dates expressed in such Note, or to bring suit for the
enforcement of any such payment on or after such respective dates without the
consent of such Holder.

 

SECTION
9.05.  Notation on or Exchange
of Notes.

 

If an amendment,
supplement or waiver changes the terms of a Note, the Trustee may require the
Holder of the Note to deliver the Note to the Trustee.  The Trustee at the written direction of the
Company may place an appropriate notation on the Note about the changed terms
and return it to the Holder and the Trustee may place an appropriate notation
on any Note thereafter authenticated. 
Alternatively, if the Company or the Trustee so determines, the Company
in exchange for the Note shall issue and the Trustee shall authenticate a new
Note that reflects the changed terms. 
Failure to make an appropriate notation, or issue a new Note, shall not
affect the validity and effect of such amendment, supplement or waiver.  Any such notation or exchange shall be made
at the sole cost and expense of the Company. 
Failure to make the appropriate notation or issue a new Note shall not
effect the validity and effect of such amendment, supplement or waiver.

 

SECTION
9.06.  Trustee to Sign
Amendments, Etc.

 

The Trustee and/or
the Collateral Agent, as applicable, shall execute any amendment, supplement or
waiver authorized pursuant to this Article Nine; provided that
the Trustee or the Collateral Agent, as the case may be, may, but shall not be
obligated to, execute any such amendment, supplement or waiver which adversely
affects the rights, duties or immunities of the Trustee or the Collateral
Agent, as the case may be, under this Indenture or any Collateral
Agreement.  The Trustee or the Collateral
Agent, as the case may be, shall be entitled to receive, and shall be fully
protected in relying upon, an Opinion of Counsel and an Officers’ Certificate
each stating that the execution of any amendment, supplement or waiver
authorized pursuant to this Article Nine is authorized or permitted by
this Indenture.  Such Opinion of Counsel
shall also state that the amendment or supplement is a valid and enforceable
obligation of the Company.  Such Opinion
of Counsel shall not be an expense of the Trustee or the Collateral Agent, as
the case may be, and shall be paid for by the Company.

 

SECTION
9.07.  Conformity with Trust
Indenture Act.

 

Every supplemental
indenture executed pursuant to this Article Nine shall conform to the
requirements of the TIA as then in effect.

 

78

 

ARTICLE TEN

GUARANTEE

 

SECTION 10.01.  Guarantee.

 

Each Guarantor hereby fully, irrevocably and
unconditionally, jointly and severally guarantees (such guarantee, as amended
or supplemented from time to time, to be referred to herein as the “Guarantee”),
to each of the Holders, the Trustee and the Collateral Agent and their
respective successors and assigns that (i) the principal of, premium, if
any and interest and Additional Interest, if any, on the Notes shall be
promptly paid in full when due, subject to any applicable grace period, whether
upon redemption pursuant to the terms of the Notes, by acceleration or
otherwise, and interest on the overdue principal (including interest accruing
at the then applicable rate provided in the Indenture Documents after the
occurrence of any Event of Default set forth in Section 6.01(8), whether
or not a claim for post-filing or post-petition interest is allowed under
applicable law following the institution of a proceeding under bankruptcy,
insolvency or similar laws), if any, and interest on any interest and
Additional Interest, if any, to the extent lawful, of the Notes and all other
obligations of the Company to the Holders, the Trustee and the Collateral Agent
hereunder, thereunder or under any Collateral Agreement shall be promptly paid
in full or performed, all in accordance with the terms hereof, thereof and of
the Collateral Agreements; and (ii) in case of any extension of time of
payment or renewal of any of the Notes or of any such other obligations, the
same shall be promptly paid in full when due or performed in accordance with
the terms of the extension or renewal, subject to any applicable grace period,
whether at stated maturity, by acceleration or otherwise, subject, however, in
the case of clauses (i) and (ii) above, to the limitations set
forth in Section 10.03.  The Guarantee
of each Guarantor shall rank senior in right of payment to all subordinated
Indebtedness of such Guarantor and equal in right of payment with all other
senior obligations of such Guarantor. 
Each Guarantor hereby agrees that its obligations hereunder shall be
unconditional, irrespective of the validity, regularity or enforceability of
the Notes, this Indenture, or any Collateral Agreement, the absence of any
action to enforce the same, any waiver or consent by any of the Holders with
respect to any provisions hereof or thereof, any release of any other
Guarantor, the recovery of any judgment against the Company, 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 Company, any right to require a proceeding
first against the Company, protest, notice and all demands whatsoever and
covenants that this Guarantee shall not be discharged except by complete
performance of the obligations contained in the Notes, this Indenture and in
this Guarantee.  The obligations of each
Guarantor are limited to the maximum amount which, after giving effect to all
other contingent and fixed liabilities of such Guarantor and after giving
effect to any collections from or payments made by or on behalf of any other
Guarantor in respect of the obligations of such other Guarantor under its
Guarantee or pursuant to its contribution obligations under this Indenture,
shall result in the obligations of such Guarantor under the Guarantee not
constituting a fraudulent conveyance or fraudulent transfer under federal or
state law.  The net worth of any
Guarantor for such purpose shall include any claim of such Guarantor against
the Company for reimbursement and any claim against any other Guarantor for
contribution.  Each Guarantor may
consolidate with or merge into or sell its assets to the Company or another
Guarantor without limitation in accordance with Sections 5.01, 4.11
and 10.04.  If any Holder, the
Collateral Agent or the Trustee is required by any court or otherwise to return
to the Company, any Guarantor, or any custodian, trustee, liquidator or other
similar official acting in relation to the Company or any Guarantor, any amount
paid by the Company or any Guarantor to the Trustee, the Collateral Agent or
such Holder, this Guarantee, to the extent theretofore discharged, shall be
reinstated in full force and effect. 
Each Guarantor further agrees that, as between each Guarantor, on the
one hand, and the Holders, the Collateral Agent and the Trustee, on the other
hand, (x) the maturity of the obligations guaranteed hereby may be
accelerated as provided in Article Six for the purposes of this

 

79

 

Guarantee notwithstanding any
stay, injunction or other prohibition preventing such acceleration in respect
of the obligations guaranteed hereby, and (y) in the event of any
acceleration of such obligations as provided in Article Six, such
obligations (whether or not due and payable) shall forthwith become due and
payable by each Guarantor for the purpose of this Guarantee.

 

SECTION
10.02.  Release of a Guarantor.

 

A Guarantor will
be automatically and unconditionally released from its Guarantee (and may
subsequently dissolve) without any action required on the part of the Trustee
or any Holder:

 

(1)      if
(a) all of the Capital Stock issued by such Guarantor or all or substantially
all of the assets of such Guarantor are sold or otherwise disposed of
(including by way of merger or consolidation and, in the case of a sale of
Capital Stock, whether directly by transfer of Capital Stock issued by that
Guarantor or indirectly by transfer of Capital Stock of other Subsidiaries
that, directly or indirectly, own Capital Stock issued by such Guarantor) to a
Person other than the Company or any of its Domestic Restricted Subsidiaries or
(b) such Guarantor ceases to be a Restricted Subsidiary, and the Company
otherwise complies, to the extent applicable, with Section 4.11;

 

(2)      if
the Company designates such Guarantor as an Unrestricted Subsidiary in
accordance with Section 4.09;

 

(3)      if
the Company exercises its legal defeasance option or its covenant defeasance
option as described below under Section 8.01; or

 

(4)      upon
satisfaction and discharge of this Indenture as described in Section 8.02 or
payment in full in cash of the principal of, and premium, if any, accrued and
unpaid interest and Additional Interest, if any, on, the Notes and all other
Obligations that are then due and payable.

 

At the Company’s request and expense, the Trustee will execute and
deliver an instrument evidencing such release. A Guarantor may also be released
from its obligations under its Guarantee in connection with a permitted
amendment of this Indenture.  Any
Guarantor not so released remains liable for the full amount of its Guarantee
as provided in this Article Ten.

 

SECTION
10.03.  Limitation of Guarantor’s
Liability.

 

Each Guarantor
and, by its acceptance hereof, each of the Holders hereby confirms that it is
the intention of all such parties that the guarantee by such Guarantor pursuant
to its Guarantee not constitute a fraudulent transfer or conveyance for
purposes of any Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the
Uniform Fraudulent Transfer Act or any similar Federal or state law.  To effectuate the foregoing intention, the
Holders and such Guarantor hereby irrevocably agree that the obligations of
such Guarantor under the Guarantee shall be limited to the maximum amount as
shall, after giving effect to all other contingent and fixed liabilities of
such Guarantor and after giving effect to any collections from or payments made
by or on behalf of any other Guarantor in respect of the obligations of such
other Guarantor under its Guarantee or pursuant to Section 10.05, result
in the obligations of such Guarantor under the Guarantee not constituting such
fraudulent transfer or conveyance.

 

SECTION
10.04.  Guarantors May
Consolidate, etc., on Certain Terms.

 

Each Guarantor
(other than any Guarantor whose Guarantee is to be released in accordance with
the terms of the Guarantee and this Indenture in connection with any transaction
complying with this Section 10.04 and Section 4.11) will not, and
the Company will not cause or permit any Guarantor to, consolidate with or
merge with or into any Person, other than the Company or any other Guarantor
unless:

 

80

 

(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 or limited liability company organized and existing under the
laws of the United States or any State thereof or the District of Columbia;

 

(2)           such entity assumes (a)
by supplemental indenture (in form and substance reasonably satisfactory to the
Trustee), executed and delivered to the Trustee, all of the obligations of the
Guarantor under the Guarantee and the performance of every covenant of the
Guarantee and this Indenture and (b) by amendment, supplement or other
instrument (in form and substance satisfactory to the Trustee and the
Collateral Agent) executed and delivered to the Trustee and the Collateral
Agent, all obligations of the Guarantor under the Collateral Agreements and in
connection therewith shall cause such instruments to be filed and recorded in
such jurisdictions and take such other actions as may be required by applicable
law to perfect or continue the perfection of the Lien created under the
Collateral Agreements on the Collateral owned by or transferred to the
surviving entity; and

 

(3)           immediately after
giving effect to such transaction, no Default or Event of Default shall have
occurred and be continuing.

 

This Section 10.04
will not apply to:

 

(a)
           any merger or
consolidation of a Guarantor with and into the Company (with the Company being
the surviving entity) or another Guarantor or; or

 

(b)
          any merger or
consolidation of a Guarantor or the Company with an Affiliate organized solely
for the purpose of reincorporating such Guarantor or the Company in another
jurisdiction in the United States or any state thereof or the District of
Columbia.

 

SECTION 10.05.  Contribution.

 

In order to
provide for just and equitable contribution among the Guarantors, the
Guarantors agree, inter se, that each Guarantor that makes a payment or
distribution under a Guarantee shall be entitled to a pro rata
contribution from each other Guarantor hereunder based on the net assets of
each other Guarantor.  The preceding
sentence shall in no way affect the rights of the Holders to the benefits of
this Indenture, the Notes or the Guarantees.

 

SECTION
10.06.  Waiver of Subrogation.

 

Each Guarantor
agrees that it shall 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.

 

SECTION
10.07.  Waiver of Stay,
Extension or Usury Laws.

 

Each Guarantor
covenants to the extent permitted by law that it shall not at any time insist
upon, plead, or in any manner whatsoever claim or take the benefit or advantage
of, any stay or extension law or any usury law or other law that would prohibit
or forgive such Guarantor from performing its Guarantee as contemplated herein,
wherever enacted, now or at any time hereafter in force; and each Guarantor
hereby expressly waives to the extent permitted by law all benefit or advantage
of any such law, and covenants that it shall not hinder, delay or impede the
execution of any power herein granted to the

 

81

 

Trustee, but shall suffer and permit the execution of every such power
as though no such law had been enacted.

 

SECTION
10.08.  Execution and Delivery
of Guarantees.

 

To evidence the
Guarantees set forth in Section 10.1 hereof, each of the Guarantors
agrees that a notation of Guarantee substantially in the form included in Exhibit
A hereto shall be endorsed on each Note authenticated and delivered by the
Trustee and that a supplemental indenture substantially in the form of Exhibit
F hereto shall be executed on behalf of each of the Guarantors by an
Officer thereof in accordance with Section 4.16 hereof.

 

Each of the
Guarantors agree that the Guarantees set forth in this Article Ten shall
remain in full force and effect and apply to all the Notes notwithstanding any
failure to endorse on each Note a notation of the Guarantees.  If an Officer whose signature is on a Note or
a notation of Guarantee no longer holds that office at the time the Trustee
authenticates the Note on which the Guarantees are endorsed, the Guarantees
shall be valid nevertheless.  The
delivery of any Note by the Trustee, after the authentication thereof
hereunder, shall constitute due delivery of the Guarantees set forth in this
Indenture on behalf of the Guarantors.

 

ARTICLE ELEVEN

MISCELLANEOUS

 

SECTION
11.01.  Trust Indenture Act
Controls.

 

If any provision
of this Indenture limits, qualifies, or conflicts with another provision which
is required to be included in this Indenture by the TIA, the required provision
shall control.  Any provision of the TIA
which is required to be included in a qualified Indenture, but not expressly
included herein, shall be deemed to be included by this reference.

 

SECTION 11.02.  Notices.

 

Any notices or
other communications required or permitted hereunder shall be in writing, and
shall be sufficiently given if made by hand delivery, by telecopier or
registered or certified mail, postage prepaid, return receipt requested,
addressed as follows:

 

if to the
Company:

 

Edgen
Corporation

18444 Highland
Road

Baton Rouge,
Louisiana 70809

Attention:
David Laxton

Facsimile
Number:  (225) 756-7953

 

82

 

if to the
Trustee:

 

The Bank of
New York

101 Barclay
Street

Floor 8W

New York, New
York  10286

Attn:  Corporate Trust Administration

Facsimile
Number:  (212) 815-5707

 

if to the
Collateral Agent:

 

The Bank of
New York

101 Barclay
Street

Floor 8W

New York, New
York  10286

Attn:
Corporate Trust Administration

Facsimile
Number: (212) 815-5707

 

Each of the
Company, the Trustee and the Collateral Agent by written notice to each other
may designate additional or different addresses for notices to such
Person.  Any notice or communication to
the Company, the Trustee or the Collateral Agent shall be deemed to have been
given or made as of the date so delivered if personally delivered; when
answered back, if telexed; when receipt is acknowledged, if faxed; and five (5)
calendar days after mailing if sent by registered or certified mail, postage
prepaid (except that a notice of change of address or a notice sent by mail to
the Trustee shall not be deemed to have been given until actually received by
the addressee).

 

Any notice or
communication mailed to a Holder shall be mailed to such Holder by first class
mail or other equivalent means at such Holder’s address as it appears on the
registration books of the Registrar and shall be sufficiently given to such
Holder if so mailed within the time prescribed.

 

Failure to mail a
notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders. 
If a notice or communication is mailed in the manner provided above, it
is duly given, whether or not the addressee receives it.

 

SECTION
11.03.  Communications by
Holders with Other Holders.

 

Holders may
communicate pursuant to TIA Section 312(b) with other Holders with respect
to their rights under this Indenture, any Collateral Agreement, any Guarantee
or the Notes.  The Company, the Trustee,
the Collateral Agent, the Registrar and any other Person shall have the
protection of TIA Section 312(c).

 

SECTION
11.04.  Certificate and Opinion
as to Conditions Precedent.

 

Upon any request
or application by the Company or any Guarantor to the Trustee or the Collateral
Agent, as the case may be, to take any action under this Indenture, any
Collateral Agreement or any other Indenture Document, the Company shall furnish
to the Trustee or the Collateral Agent, as the case may be, upon request:

 

(1)           an Officers’
Certificate, in form and substance reasonably satisfactory to the Trustee or
the Collateral Agent, as the case may be, stating that, in the opinion of the
signers, all conditions precedent to be performed by the Company or the
applicable Guarantor (as the case

 

83

 

may
be), if any, provided for in this Indenture, any Collateral Agreement or any
other Indenture Document relating to the proposed action have been complied
with; and

 

(2)           an Opinion of Counsel
stating that, in the opinion of such counsel, all such conditions precedent to
be performed by the Company or the applicable Guarantor (as the case may be),
if any, provided for in this Indenture relating to the proposed action have
been complied with.

 

SECTION
11.05.  Statements Required in
Certificate or Opinion.

 

Each certificate
or opinion with respect to compliance with a condition or covenant provided for
in this Indenture, any Collateral Agreement or any other Indenture Document,
other than the Officers’ Certificate required by Section 4.06(1), shall
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 has made such examination or investigation as is
reasonably necessary to enable him to express an informed opinion as to whether
or not such covenant or condition has been complied with; and

 

(4)           a statement as to
whether or not, in the opinion of each such Person, such condition or covenant
has been complied with.

 

SECTION
11.06.  Rules by Trustee,
Paying Agent, Registrar.

 

The Trustee may
make reasonable rules in accordance with the Trustee’s customary practices for
action by or at a meeting of Holders. 
The Paying Agent or Registrar may make reasonable rules for its
functions.

 

SECTION 11.07.  Legal Holidays.

 

A “Legal
Holiday” used with respect to a particular place of payment is a Saturday,
a Sunday or a day on which banking institutions in New York, New York or at
such place of payment are not required to be open.  If a payment date is a Legal Holiday at such
place, payment may be made at such place on the next succeeding day that is not
a Legal Holiday, and no interest shall accrue for the intervening period.

 

84

 

SECTION 11.08.  Governing Law.

 

THIS INDENTURE AND THE
NOTES SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS
APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT
REGARD TO PRINCIPLES OF CONFLICT OF LAWS. 
EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS INDENTURE, THE NOTES, THE GUARANTEES, THE COLLATERAL
AGREEMENTS OR THE TRANSACTIONS CONTEMPLATED BY THIS INDENTURE.

 

SECTION
11.09.  No Adverse Interpretation of Other
Agreements.

 

This Indenture may
not be used to interpret another indenture, loan or debt agreement of the
Company or any of its Subsidiaries.  Any
such indenture, loan or debt agreement may not be used to interpret this
Indenture.

 

SECTION
11.10.  No Recourse Against Others.

 

No past,
present or future director, officer, employee, incorporator, agent, stockholder
or Affiliate of the Company or a Guarantor, as such, shall have any liability
for any obligations of the Company or the Guarantors under the Notes, the
Guarantees, this Indenture or the Collateral Agreements or for any claim based
on, in respect of, such obligations or their creation. Each Holder by accepting
a Note waives and releases all such liability. The waiver and release are part
of the consideration for issuance of the Notes.

 

SECTION 11.11.  Successors.

 

All agreements of the Company and the
Guarantors in this Indenture, the Notes, and the Guarantees shall bind their
successors.  All agreements of each of the Trustee and the
Collateral Agent in this Indenture shall bind their respective successors.

 

SECTION
11.12.  Duplicate Originals.

 

All parties may sign any number of copies of
this Indenture.  Each signed copy shall
be an original, but all of them together shall represent the same agreement.

 

SECTION 11.13.  Severability.

 

In case any one or
more of the provisions in this Indenture, the Notes or in the Guarantees shall
be held invalid, illegal or unenforceable, in any respect for any reason, the
validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions shall not in any way be affected or
impaired thereby, it being intended that all of the provisions hereof shall be
enforceable to the full extent permitted by law.

 

SECTION
11.14.  Waiver of Jury Trial.

 

EACH OF THE
PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
LAW, ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
IN CONNECTION WITH THIS INDENTURE, THE NOTES, THE GUARANTEES, THE COLLATERAL
AGREEMENTS OR THE TRANSACTIONS CONTEMPLATED BY THIS INDENTURE.

 

85

 

ARTICLE TWELVE

SECURITY

 

SECTION
12.01.  Grant of Security
Interest.

 

(1)           The due
and punctual payment of the principal of, premium, if any, interest and
Additional Interest, if any, on the Notes and amounts due hereunder and under
the Guarantees when and as the same shall be due and payable, whether on an
Interest Payment Date, by acceleration, purchase, repurchase, redemption or
otherwise, and interest on the overdue principal of, premium, if any, and
interest (to the extent permitted by law), if any, on the Notes and the
performance of all other Obligations of the Company and the Guarantors to the
Holders or the Trustee under this Indenture, the Collateral Agreements, the
Guarantees and the Notes shall be secured as provided in the Collateral
Agreements.  Notwithstanding anything to
the contrary herein, no Collateral shall consist of any Excluded Assets.

 

(2)           Each
Holder, by its acceptance of a Note, consents and agrees to the terms of each
Collateral Agreement and Intercreditor Agreements, as the same may be in effect
or may be amended from time to time in accordance with their respective terms,
and authorizes and directs the Collateral Agent to enter into this Indenture
and the Collateral Agreements and to perform its obligations and exercise its
rights thereunder in accordance therewith. 
The Company shall, and shall cause each of its Domestic Restricted
Subsidiaries to, do or cause to be done, at its sole cost and expense, all such
actions and things as may be required by the provisions of the Collateral
Agreements, to assure and confirm to the Collateral Agent the security
interests in the Collateral contemplated by the Collateral Agreements, 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 and Guarantees secured hereby,
according to the intent and purpose herein and therein expressed and subject to
the Intercreditor Agreements, including taking all commercially reasonable
actions required or as may be reasonably requested by the Collateral Agent to
cause the Collateral Agreements to create and maintain, as security for the
Obligations contained in this Indenture, the Notes, the Collateral Agreements
and the Guarantees valid and enforceable, perfected (to the extent required therein) security interests in and on all the
Collateral, in favor of the Collateral Agent, superior to and prior to the
rights of all third Persons other than as set forth in the Senior Intercreditor
Agreement, and subject to no other Liens, in each case, except as expressly
provided herein or therein.  If required
for the purpose of meeting the legal requirements of any jurisdiction in which
any of the Collateral may at the time be located, the Company, the Trustee and
the Collateral Agent shall have the power to appoint, and shall take all
reasonable action to appoint, one or more Persons approved by the Trustee and
reasonably acceptable to the Company to act as co-Collateral Agent with respect
to any such Collateral, with such rights and powers limited to those deemed
necessary for the Company, the Trustee or the Collateral Agent to comply with
any such legal requirements with respect to such Collateral, and which rights
and powers shall not be inconsistent with the provisions of this Indenture or
any Indenture Document. The Company shall from time to time promptly pay all
reasonable financing and continuation statement recording and/or filing
fees, charges and taxes relating to this Indenture, the Collateral Agreements
and any amendments hereto or thereto and any other instruments of further
assurance required pursuant hereto or thereto.

 

SECTION 12.02.  Opinions.

 

The
Company shall furnish to the Trustee, at such time as required by TIA Section
314(b) an Opinion of Counsel either (i) stating that, in the opinion of such
counsel, this Indenture and the Collateral Agreements, financing
statements and fixture filings then executed and delivered, as applicable, and
all other instruments of further assurance or amendment then executed and
delivered have been properly recorded, registered and filed to the extent
necessary to perfect the security interests created by this Indenture and the
Collateral Agreements and reciting the details of such action or referring to
prior

 

86

 

Opinions
of Counsel in which such details are given, and stating that as to such
Collateral Agreements and such other instruments, such recording, registering
and filing are the only recordings, registerings and filings necessary to
perfect such security interest and that no re-recordings, re-registerings,
or re-filings are necessary to maintain such perfection, and further stating
that all financing statements and continuation statements have been filed are
necessary fully to preserve and protect the rights of and perfect such security
interests of the Trustee for the benefit of itself and the Holders, under the
Collateral Agreements or (ii) stating that, in the Opinion of such Counsel, no
such action is necessary to perfect any security interest created under this
Indenture, the Notes or any of the Collateral Agreements as intended by this
Indenture, the Notes or any such Collateral Agreement.

 

The
Company shall furnish to the Trustee and the Collateral Agent (if other than
the Trustee), on or within three months of the last day of each fiscal year,
commencing on the last day of the fiscal year ending subsequent to the Issuance
Date, an Opinion of Counsel either (i) stating that, in the opinion of such
counsel, all action necessary to perfect or continue the perfection of the
security interests created by the Collateral Agreements and reciting the
details of such action or referring to prior Opinions of Counsel in which such
details are given have been taken or (ii) stating that, in the Opinion of such
Counsel, no such action is necessary to perfect or continue the perfection of
any security interest created under any of the Collateral Agreements.

 

SECTION
12.03.  Release of Collateral.

 

The
Collateral Agent shall not at any time release Collateral from the security
interests created by the Collateral Agreements unless such release is in
accordance with the provisions of this Indenture and the applicable Collateral
Agreements.

 

The
release of any Collateral from the terms of the Collateral Agreements shall not
be deemed to impair the security under this Indenture in contravention of the
provisions hereof if and to the extent the Collateral is released pursuant to
this Indenture and the Collateral Agreements. 
To the extent applicable, the Company shall cause TIA Section 314(d)
relating to the release of property from the security interests created by this
Indenture and the Collateral Agreements to be complied with.  Any certificate or opinion required by TIA
Section 314(d) may be made by an Officer of the Company, except in cases where
TIA Section 314(d) requires that such certificate or opinion be made by an
independent Person, which Person shall be an independent engineer, appraiser or
other expert selected or approved by the Trustee in the exercise of reasonable
care.  A Person is “independent” if such
Person (a) is in fact independent, (b) does not have any direct financial
interest or any material indirect financial interest in the Company or in any
Affiliate of the Company and (c) is not an officer, employee, promoter,
underwriter, trustee, partner or director or person performing similar
functions to any of the foregoing for the Company.  The Trustee shall be entitled to receive and
conclusively rely upon a certificate provided by any such Person confirming
that such Person is independent within the foregoing definition.

 

Notwithstanding
any provision to the contrary herein, Collateral comprised of accounts
receivable, and inventory or the proceeds of the foregoing, or cash shall be
subject to release upon sales of such inventory, collection of the proceeds of
such accounts receivable, and withdrawals of cash from the Company’s deposit
accounts in the ordinary course of business. 
If requested in writing by the Company, the Trustee shall instruct the
Collateral Agent to execute and deliver such documents, instruments or
statements and to take such other action as the Company may request to evidence
or confirm that the Collateral falling under this Section 12.03 has
been released from the Liens of each of the Collateral Agreements.

 

87

 

SECTION
12.04.  Specified Releases of
Collateral.

 

Subject to Section 12.03,
Collateral may be released from the Lien and security interest created by the
Collateral Agreements at any time or from time to time in accordance with the
provisions of the Collateral Agreements, or as provided hereby.  Upon the request of the Company pursuant to
an Officers’ Certificate certifying that all conditions precedent hereunder
have been met and without the consent of any Holder, the Company and the
Guarantors will be entitled to releases of assets included in the Collateral
from the Liens securing the obligations under the Notes and the Guarantees
under any one or more of the following circumstances:

 

(1)           to enable the Company
(or a Guarantor) to consummate asset sales or dispositions that are not Asset
Sales or that are Asset Sales permitted under Section 4.11;

 

(2)           with the consent of the
Holders of not less than a majority of the aggregate principal amount of Notes
outstanding pursuant to Section 9.02;

 

(3)           if any Subsidiary that
is a Guarantor is released from its Guarantee in accordance with the terms of
this Indenture, such Subsidiary’s assets will also be released;

 

(4)           if the Company exercise
its legal defeasance option or covenant defeasance option as described above
under Section 8.01;

 

(5)           upon satisfaction and
discharge of this Indenture in accordance with Section 8.02 or payment
in full in cash of the principal of and premium, if any, and accrued and unpaid
interest on the Notes and all other Obligations under this Indenture and the
other Indenture Documents that are then due and payable; or

 

(6)           if such release is
required under the Senior Intercreditor Agreement.

 

Upon receipt of
such Officers’ Certificate and any necessary or proper instruments of
termination, satisfaction or release prepared by the Company, the Collateral
Agent shall execute, deliver or acknowledge such instruments or releases to
evidence the release of any Collateral permitted to be released pursuant to
this Indenture or the Collateral Agreements.

 

SECTION
12.05.  Release upon
Satisfaction or Defeasance of All Outstanding Obligations.

 

The Liens on, and
pledges of, all Collateral will also be terminated and released upon
(i) payment in full of the principal of, premium, if any, on, and accrued
and unpaid interest and Additional Interest, if any, on the Notes and all other
Obligations hereunder, the Guarantees and the Collateral Agreements that are
due and payable at or prior to the time such principal, premium, if any, and
accrued and unpaid interest and Additional Interest, if any, are paid,
(ii) a satisfaction and discharge of this Indenture as described above
under Section 8.02 and (iii) the occurrence of a Legal Defeasance
or Covenant Defeasance as described above under Section 8.01.

 

SECTION
12.06.  Form and Sufficiency of
Release.

 

In the event that
the Company or any Guarantor has sold, exchanged, or otherwise disposed of or
proposes to sell, exchange or otherwise dispose of any portion of the
Collateral that may be sold, exchanged or otherwise disposed of by such Company
or such Guarantor, and such Company or such Guarantor requests in writing the
Collateral Agent to furnish a written disclaimer, release or quit-claim of any
interest in such property under this Indenture and the Collateral Agreements,
the Collateral Agent

 

88

 

shall execute, acknowledge and deliver to the Company or such Guarantor
(in proper form prepared by the Company or such Guarantor) such an instrument
promptly after satisfaction of the conditions set forth herein for delivery of
any such release.  Notwithstanding the preceding
sentence, all purchasers and grantees of any property or rights purporting to
be released herefrom shall be entitled to rely upon any release executed by the
Collateral Agent hereunder as sufficient for the purpose of this Indenture and
as constituting a good and valid release of the property therein described from
the Lien of this Indenture or of the Collateral Agreements.

 

SECTION
12.07.  Purchaser Protected.

 

No purchaser or
grantee of any property or rights purporting to be released herefrom shall be
bound to ascertain the authority of the Trustee or the Collateral Agent to
execute the release or to inquire as to the existence of any conditions herein
prescribed for the exercise of such authority; nor shall any purchaser or
grantee of any property or rights permitted by this Indenture to be sold or
otherwise disposed of by the Company be under any obligation to ascertain or
inquire into the authority of the Company to make such sale or other
disposition.

 

SECTION
12.08.  Authorization of
Actions to Be Taken by the Collateral Agent Under the Collateral Agreements.

 

The Bank of New
York is hereby appointed Collateral Agent. 
Subject to the provisions of the applicable Collateral Agreements and
the applicable Intercreditor Agreement, each Holder, by acceptance of its
Note(s) agrees that (a) the Collateral Agent shall execute and deliver the
Collateral Agreements and act in accordance with the terms thereof, (b) the
Collateral Agent may, in its sole discretion and without the consent of the
Trustee or the Holders, take all actions it deems necessary or appropriate in
order to (i) enforce any of the terms of the Collateral Agreements and (ii)
collect and receive any and all amounts payable in respect of the Obligations
of the Company and the Guarantors hereunder and under the Notes, the Guarantees
and the Collateral Agreements and (c) to the extent permitted by this
Indenture, the Collateral Agent shall have power to institute and to maintain
such suits and proceedings as it may deem expedient to prevent any impairment
of the Collateral by any act that may be unlawful or in violation of the
Collateral Agreements or this Indenture, and suits and proceedings as the
Collateral Agent may deem expedient to preserve or protect its interests and
the interests of the Trustee and the Holders in the Collateral (including the
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 security interest thereunder or be prejudicial to the interests of
the Collateral Agent, the Holders or the Trustee).  Notwithstanding the foregoing, the Collateral
Agent may, at the expense of the Company, request the direction of the Holders
with respect to any such actions and upon receipt of the written consent of the
Holders of at least a majority in aggregate principal amount of the outstanding
Notes, shall take such actions; provided that all actions so taken
shall, at all times, be in conformity with the requirements of the
Intercreditor Agreements.

 

SECTION
12.09.  Authorization of
Receipt of Funds by the Trustee Under the Collateral Agreements.

 

The Collateral
Agent is authorized to receive any funds for the benefit of itself, the Trustee
and the Holders distributed under the Collateral Agreements and to the extent
not prohibited under the Senior Intercreditor Agreement, for turnover to the Trustee
to make further distributions of such funds to itself, the Trustee and the
Holders in accordance with the provisions of Section 6.10 and the other
provisions of this Indenture.

 

89

 

SECTION
12.10.  Intercreditor
Agreements.

 

This Article Twelve and the Collateral Agreements are subject to
the terms, limitations and conditions set forth in each of the Intercreditor
Agreements.

 

90

 

SIGNATURES

 

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

 

	
   

  	
  EDGEN ACQUISITION CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nicholas
  Daraviras

  	
   

  
	
   

  	
   

  	
  Name: Nicholas
  Daraviras

  	
   

  
	
   

  	
   

  	
  Title: President
  and Treasurer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW
  YORK, as Trustee and Collateral

  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Geovanni Barris

  	
   

  
	
   

  	
   

  	
  Name: Geovanni
  Barris

  	
   

  
	
   

  	
   

  	
  Title: Vice
  President

  	
   

  

 

 

EXHIBIT A

 

[FORM OF INITIAL NOTE]

 

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

 

THE HOLDER OF THIS NOTE, BY ITS ACCEPTANCE HEREOF, (1) REPRESENTS
THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT), (B) IT IS A NON-U.S. PURCHASER AND IS ACQUIRING
THIS NOTE IN AN OFFSHORE TRANSACTION WITHIN THE MEANING OF REGULATION S UNDER
THE SECURITIES ACT, OR (C) IT IS AN INSTITUTIONAL “ACCREDITED INVESTOR”
WITHIN THE MEANING OF SUBPARAGRAPH (a)(1), (2), (3) OR (7) OF RULE
501 UNDER THE SECURITIES ACT, AND (2) AGREES TO OFFER, SELL OR OTHERWISE
TRANSFER SUCH NOTE OR ANY INTEREST OR PARTICIPATION HEREIN, PRIOR TO THE DATE
(THE “RESALE RESTRICTION TERMINATION DATE”) WHICH IS TWO YEARS AFTER THE LATER
OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY
AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF SUCH
NOTE), ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) FOR SO
LONG AS THE NOTES 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 WHICH NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (C) PURSUANT TO OFFERS AND SALES TO NON-U.S. PURCHASERS THAT
OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE
SECURITIES ACT, (D) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE
MEANING OF SUBPARAGRAPH (a)(1), (2), (3) OR (7) OF RULE 501 UNDER THE
SECURITIES ACT THAT IS ACQUIRING THE NOTE FOR ITS OWN ACCOUNT, OR FOR THE
ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, 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, (E) PURSUANT TO A
REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S,
OR TRANSFER AGENT’S, AS APPLICABLE, RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
TRANSFER PURSUANT TO CLAUSE (C), (D) OR (F) TO REQUIRE THE DELIVERY
OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY
TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER

 

A-1

 

IN THE FORM APPEARING ON THE OTHER SIDE OF THIS
NOTE IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE OR TRANSFER
AGENT.

 

A-2

 

EDGEN ACQUISITION CORPORATION

 

97/8% SENIOR SECURED NOTES DUE 2011

 

	
  CUSIP No.

  	
   

  	
   

  
	
  No.

  	
   

  	
  $

  

 

Edgen Acquisition Corporation, a Nevada corporation (the “Company”,
which term includes any successors under the Indenture hereinafter referred
to), for value received promises to pay to Cede & Co.,
or registered assigns, the principal sum of                         
DOLLARS ($[       ]) on February 1,
2011.

 

Interest
Rate:  97/8%

 

Interest
Payment Dates:  February 1 and August 1,
commencing August 1, 2005.

 

Record
Dates:  January 15 and July 15.

 

Reference is
made to the further provisions of this Note contained on the reverse side of
this Note, which will for all purposes have the same effect as if set forth at
this place.

 

IN WITNESS
WHEREOF, the Company has caused this Note to be signed manually or by facsimile
by its duly authorized officer.

 

 

	
   

  	
  EDGEN ACQUISITION
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Dated:  February 1,
2005

 

A-3

 

TRUSTEE CERTIFICATE OF
AUTHENTICATION

 

This is one of
the 97/8% Senior Secured Notes due 2011 referred to in the
within-mentioned Indenture.

 

	
   

  	
  THE BANK OF NEW YORK,
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated: February 1, 2005

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

A-4

 

(REVERSE OF NOTE)

 

97/8%
Senior Secured Note due 2011

 

1.                                       Interest.  Edgen Acquisition Corporation, a Nevada
corporation (the ”Company”, which term includes any successors
under the Indenture hereinafter referred to), promises to pay interest on the
principal amount of this Note at the rate per annum shown above.  Interest on the Note will accrue from the
most recent date on which interest has been paid or, if no interest has been
paid, from and including the date of issuance. 
The Company will pay interest in cash semi-annually in arrears on each
Interest Payment Date, commencing August 1, 2005.  Interest will be computed on the basis of a
360-day year comprised of twelve 30-day months.

 

[FOR
REGULATION S TEMPORARY GLOBAL NOTES INSERT: Until this Regulation S Temporary Global
Note is exchanged for one or more Regulation S Permanent Global Notes, the
Holder hereof shall not be entitled to receive payments of interest hereon;
until so exchanged in full, this Regulation S Temporary Global Note shall in
all other respects be entitled to the same benefits as other Notes under the
Indenture.]

 

2.                                       Method
of Payment.  The Company shall pay
interest on the Notes (except defaulted interest) to the Persons who are the
registered Holders at the close of business on the Record Date immediately
preceding the Interest Payment Date even if the Notes are cancelled on
registration of transfer or registration of exchange after such Record Date,
and on or before such Interest Payment Date. 
Holders must surrender Notes to a Paying Agent to collect principal
payments.  The Company shall pay
principal and interest in money of the United States that at the time of
payment is legal tender for payment of public and private debts (“U.S. Legal
Tender”).  However, the Company may
pay principal and interest by check payable in such U.S. Legal Tender.  The Company may deliver any such interest
payment to the Paying Agent or to a Holder at the Holder’s registered address.

 

3.                                       Paying
Agent and Registrar.  Initially, The
Bank of New York (the “Trustee”) will act as Paying Agent and
Registrar.  The Company may change any
Paying Agent, Registrar or co-Registrar without notice to the Holders.  Neither the Company nor any Affiliate of the
Company may act as Paying Agent.

 

4.                                       Indenture.  The Notes were issued under an Indenture,
dated as of February 1, 2005 (the “Indenture”), by and between the
Company and the Trustee.  The terms of the Notes include those stated in
the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) (the “TIA”),
as in effect on the date of the Indenture until such time as the Indenture is
qualified under the TIA, and thereafter as in effect on the date on which the
Indenture is qualified under the TIA. 
Notwithstanding anything to the contrary herein, the Notes are subject
to all such terms, and Holders of Notes are referred to in the Indenture and
the TIA for a statement of such terms. 
The Notes are senior secured obligations of the Company.  Each Holder, by accepting a Note, agrees to
be bound by all of the terms and provisions of the Indenture, as the same may
be amended from time to time. 
Capitalized terms herein are used as defined in the Indenture unless
otherwise

 

A-5

 

defined herein.

 

5.                                       Redemption.

 

(a)                                  Optional
Redemption on or after February 1, 2008.  Except as described in Sections 5(b) and
5(c), the Notes are not redeemable before February 1, 2008.  At any time on or after February 1,
2008, the Company may redeem the Notes, at its option, in whole or in part, at
any time or from time to time, upon not less than 30 nor more than 60 days’
notice, at the following redemption prices (expressed as percentages of the
principal amount thereof) if redeemed during the twelve-month period commencing
on February 1, of each of the years set forth below, plus, in each case,
accrued and unpaid interest and Additional Interest, if any, thereon to the
Redemption Date:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  104.938

  	
  %

  
	
  2009

  	
   

  	
  102.469

  	
  %

  
	
  2010 and each year thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b)                                 Optional
Redemption Upon Equity Offerings.  At
any time, or from time to time, on or prior to February 1, 2007, the
Company may, at its option, use an amount not to exceed the net cash proceeds
of one or more Equity Offerings to redeem up to 35% of the aggregate principal
amount of the Notes (which includes Additional Notes, if any) originally issued
under the Indenture at a redemption
price of 109.875% of the aggregate principal amount thereof, plus accrued and
unpaid interest and Additional Interest, thereon, if any, to the Redemption
Date.  In order to effect the foregoing
redemption with the proceeds of any Equity Offering,

 

(1)                                  at least 65% of the aggregate principal
amount of the Notes (which includes Additional Notes, if any) originally issued
under the Indenture shall remain outstanding immediately after such Redemption
Date; and

 

(2)                                  the Redemption Date must be as of a date not
more than 120 days after the consummation of any such Equity Offering.

 

(c)                                  Optional
Redemption Prior to February 1, 2008. 
At any time prior to February 1, 2008, the Company may, at its
option, redeem the Notes for cash, in whole or in part, at any time or from
time to time, upon not less than 30 days nor more than 60 days notice to each
Holder of Notes, at a redemption price equal to the greater of:

 

(1)                                  100%
of the principal amount of the Notes being redeemed; or

 

(2)                                  the
sum of the present values of 104.938 % of the principal amount of the Notes
being redeemed and scheduled payments of interest on such Notes to and
including February 1, 2008 discounted to the date of redemption on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Treasury Rate plus 50 basis points, together in either case with
accrued and unpaid interest, if any, to the date of redemption.

 

A-6

 

“Comparable Treasury Issue” means the United States
Treasury security selected by a Reference Treasury Dealer appointed by the
Company as having a maturity comparable to the remaining term of the Notes (as
if the final maturity of the Notes was February 1, 2008) that
would be utilized at the time of the selection and in accordance with customary
financial practice in pricing new issues of corporate debt securities of
comparable maturity to the remaining term of the Notes (as if the final
maturity of the Notes was February 1, 2008).

 

“Comparable Treasury Price” means, with respect to any
Redemption Date, (1) the average of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) on the third Business Day preceding such Redemption Date, as
set forth in the daily statistical release (or any successor release) published
by the Federal Reserve Bank of New York and designated “Composite 3:30 pm.
Quotations for U.S. Government Securities” or (2) if such release (or any
successor release is not published or does not contain such prices on such
Business Day), (A) the average of the Reference Treasury Dealer Quotations
(as defined below) for such redemption date, after excluding the highest and
lowest such Reference Treasury Dealer Quotation or (B) if the Company
obtains fewer than three such Reference Treasury Dealer Quotations, the average
of all such Reference Treasury Dealer Quotations.

 

“Reference Treasury Dealer” means any primary U.S.
government securities dealer in the City of New York selected by the Company.

 

“Reference Treasury Dealer Quotation” means, with
respect to each Reference Treasury Dealer and any Redemption Date, the average,
as determined by the Company, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m.
on the third Business Day preceding such Redemption Date.

 

“Treasury Rate” means, with respect to any redemption
date, the rate per annum equal to the semi-annual equivalent yield to maturity
of the Comparable Treasury Issue, assuming a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption period.

 

(d)                                 Notice
of Redemption.  Notice of redemption
will be mailed by first-class mail at least 30 days but not more than 60 days
before the Redemption Date to each Holder to be redeemed at its registered
address.  If fewer than all of the Notes
are to be redeemed, at any time, selection of the Notes for redemption will be
made by the Trustee in compliance with the requirements of the principal
national securities exchange, if any, on which the Notes are listed, or, if the
Notes are not then listed on a national securities exchange, on a pro rata
basis, by lot or by such method as the Trustee may reasonably determine is fair
and appropriate, provided that no
Notes of a principal amount of $1,000 or less shall be redeemed in part;
and provided, further, that any such partial redemption made with the proceeds of an Equity Offering will be
made only on a pro rata basis or on as nearly a pro rata basis as is practicable (subject to DTC
procedures), unless such method is otherwise prohibited.  Notes
in denominations of $1,000 or more may be redeemed in part.

 

Except as set forth in the Indenture, if monies for
the redemption of the Notes called for redemption shall have been deposited
with the Paying Agent for redemption on such Redemption Date sufficient to pay
such Redemption Price plus accrued and unpaid interest and Additional Interest,
if any, the Notes called for redemption will cease to bear interest from and
after such Redemption Date, and the only remaining right of the Holders of such
Notes will be to receive payment of the Redemption Price plus accrued and
unpaid interest and Additional

 

A-7

 

Interest, if any, as of the Redemption Date upon
surrender to the Paying Agent of the Notes redeemed.

 

(e)                                  Mandatory
Redemption.  The Company shall not be
required to make mandatory redemption or sinking fund payments with respect to
the Notes.

 

6.                                       Offers
to Purchase.  Sections 4.10 and 4.11
of the Indenture provide that upon the occurrence of a Change of Control and
after certain Asset Sales and subject to further limitations contained therein,
the Company will make an offer to purchase certain amounts of the Notes in
accordance with the procedures set forth in the Indenture.

 

7.                                       Registration
Rights.  Pursuant to the Registration
Rights Agreement among Edgen Corporation, a Nevada corporation (the “Surviving
Corporation”), the Guarantors party thereto and the Initial Purchaser of the
Initial Notes, the Surviving Corporation will be obligated to consummate an
exchange offer.  Upon such exchange
offer, the Holders of the Initial Notes shall have the right, subject to
compliance with securities laws, to exchange such Initial Notes for 97/8%
Senior Notes due 2011, which have been registered under the Securities Act, in
like principal amount and having terms identical in all material respects to
the Initial Notes.  The Holders of the
Initial Notes shall be entitled to receive certain additional interest payments
in the event such exchange offer is not consummated and upon certain other
conditions, all pursuant to and in accordance with the terms of the Registration
Rights Agreement.

 

8.                                       Denominations;
Transfer; Exchange.  The Notes are in
registered form, without coupons, in denominations of $1,000 and integral
multiples thereof.  A Holder shall
register the transfer of 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 any taxes, fees or similar governmental charges payable in
connection therewith as permitted by the Indenture.  The Registrar
shall not be required to register the transfer or exchange of any Note (i) during
a period beginning at the opening of business fifteen (15) days before the
mailing of a notice of redemption of Notes and ending at the close of business
on the day of such mailing and (ii) selected for redemption in whole or in
part pursuant to Article Three of the Indenture, except the unredeemed
portion of any Note being redeemed in part.

 

9.                                       Persons
Deemed Owners.  The registered Holder
of a Note shall be treated as the owner of it and the Notes of which it is
composed for all purposes.

 

10.                                 Unclaimed
Money.  If money for the payment of
principal or interest remains unclaimed for two years, the Trustee and the
Paying Agent may pay the money without interest thereon back to the
Company.  After that, all liability of
the Trustee and such Paying Agent with respect to such money shall cease.

 

A-8

 

11.                                 Discharge
Prior to Redemption or Maturity.  If
the Company at any time deposits with the Trustee U.S. Legal Tender or U.S.
Government Obligations sufficient to pay the principal of and interest on the
Notes to redemption or stated maturity and complies with the other provisions
of the Indenture relating thereto, the Company shall be deemed to have paid and
discharged the entire Indebtedness represented by the outstanding Notes, except
for the rights of Holders to receive payments in respect of the principal of,
and premium, if any, interest and Additional Interest, if any, on the Notes
when such payments are due from the deposits referred to above.

 

12.                                 Amendment;
Supplement; Waiver.  Subject to
certain exceptions, the Indenture, the Notes or the Guarantees may be amended
or supplemented with the written consent of the Holders of at least a majority
in aggregate principal amount of the Notes then outstanding, and any existing
Default or Event of Default or noncompliance with any provision of the
Indenture, the Notes or the Guarantees may be waived with the written consent
of the Holders of a majority in aggregate principal amount of the Notes then
outstanding.  Without consent of any
Holder, the parties thereto may amend or supplement the Indenture, the Notes or
the Guarantees to, among other things, cure any ambiguity, defect or
inconsistency, provide for uncertificated Notes or Guarantees in addition to or
in place of certificated Notes or Guarantees, comply with the TIA, or comply
with Article Five of the Indenture or make any other change that does not
adversely affect the rights of any Holder of a Note.

 

13.                                 Restrictive
Covenants.  The Indenture imposes
certain limitations on the ability of the Company and the Restricted
Subsidiaries to, among other things, incur additional Indebtedness or grant
Liens, make payments in respect of their Capital Stock or certain Indebtedness,
enter into transactions with Affiliates, create dividend or other payment
restrictions affecting Subsidiaries, merge or consolidate with any other
Person, sell, assign, transfer, lease, convey or otherwise dispose of all or
substantially all of its assets or adopt a plan of liquidation.  Such limitations are subject to a number of
important qualifications and exceptions. 
The Company must annually report to the Trustee on compliance with such
limitations.

 

14.                                 Successors.  When a successor assumes, in accordance with
the Indenture, all the obligations of its predecessor under the Notes, the
Guarantees and the Indenture, the predecessor will be released from those
obligations.

 

15.                                 Defaults
and Remedies.  If an Event of Default
occurs and is continuing, the Trustee or the Holders of at least 25% in
aggregate principal amount of the Notes then outstanding may declare all the
Notes to be due and payable in the manner, at the time and with the effect
provided in the Indenture.  Holders of
Notes may not enforce the Indenture except as provided in the Indenture.  The Trustee is not obligated to enforce the
Indenture or the Notes unless it has received indemnity satisfactory to
it.  The Indenture permits, subject to certain
limitations therein provided, Holders of a majority in aggregate principal
amount of the Notes then outstanding to direct the Trustee in its exercise of
any trust or power.  The Trustee may
withhold from Holders of Notes notice of any continuing Default or Event of
Default (except a Default in payment of principal or interest and except in
case of a failure to comply with Article Five of the Indenture) if it
determines that withholding notice is in their interest.

 

A-9

 

16.                                 Trustee
Dealings with Company.  Subject to
the terms of the TIA and the Indenture, the Trustee under the Indenture, in its
individual or any other capacity, may become the owner or pledgee of Notes and
may otherwise deal with the Company, the Subsidiaries or their respective
Affiliates as if it were not the Trustee. 

 

17.                                 No
Recourse Against Others.  No past, present or future director, officer,
employee, incorporator, agent, stockholder or Affiliate of the Company or a
Guarantor, as such, shall have any liability for any obligations of the Company
or the Guarantors under the Notes, the Guarantees, the Indenture or the
Collateral Agreements or for any claim based on, in respect of, such
obligations or their creation. Each Holder by accepting a Note waives and
releases all such liability. The waiver and release are part of the
consideration for the issuance of the Notes.

 

18.                                 Notation
of Guarantee.  Subject to the terms
and conditions of Article Ten of the Indenture, payment of principal,
interest and Additional Interest, if any (including interest on overdue
principal and overdue interest, if lawful), is unconditionally guaranteed,
jointly and severally, by each of the Guarantors.

 

19.                                 Intercreditor
Agreement.  Each Holder, by its
acceptance of its Note, agrees to be bound by the terms of the Intercreditor
Agreements and all such replacement Intercreditor Agreements and each of the
Guarantors, if any, and the Holders hereby authorize the Trustee and the
Collateral Agent to bind the Holders to the extent provided in the
Intercreditor Agreement.

 

20.                                 Authentication.  This Note shall not be valid until the
Trustee or Authenticating Agent manually signs the certificate of
authentication on this Note.

 

21.                                 Governing
Law.  THIS NOTE, THE GUARANTEES, THE
COLLATERAL AGREEMENTS AND THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE
AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF
CONFLICT OF LAWS.  EACH OF THE PARTIES
HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW
YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE.

 

22.                                 Waiver
of Jury Trial.  Each of the parties
hereto and the Holders (by their acceptance of the Note) hereby irrevocably
waives, to the fullest extent permitted by law, any and all right to trial by
jury in any action or proceeding arising out of or in connection with the
Indenture, this Note, the Guarantees, the Collateral Agreements or the
transactions contemplated by the Indenture.

 

23.                                 Security.  The Company’ and Guarantors’ obligations
under the Notes are secured by Liens on the Collateral pursuant to the terms of
the Collateral Agreements.  The actions
of the Trustee and the Holders of the Notes secured by such Liens and the
application of proceeds from the enforcement of any remedies with respect to
such Collateral are limited pursuant to the terms of the Collateral Agreements.

 

A-10

 

24.                                 Abbreviations
and Defined Terms.  Customary
abbreviations may be used in the name of a Holder of a Note or an assignee,
such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties),
JT TEN (= joint tenants with right of survivorship and not as tenants in
common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

25.                                 CUSIP
Numbers.  Pursuant to a
recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP numbers to be printed on the Notes and
the Trustee may use CUSIP 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, and any such redemption shall not be
affected by any defect in or omission of such numbers.

 

The Company will furnish to any Holder of a Note upon
written request and without charge a copy of the Indenture.  Requests may be made to: Edgen Corporation,
18444 Highland Road, Baton Rouge, Louisiana 70809

 

A-11

 

ASSIGNMENT FORM

 

If you the
Holder want to assign this Note, fill in the form below and have your signature
guaranteed:

 

I or we assign and transfer this Note to:

 

	
   

  	
   

  
	
   

  
	
   

  	
   

  
	
  (Print or type name, address and zip code and

  social security or tax ID number of assignee)

  

 

and irrevocably appoint                                                                                                                              
agent to transfer this Note on the books of the Company.  The agent may substitute another to act for
him.

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Sign exactly as your name appears on

  the other side of this Note)

  	
   

  
	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  	
   

  
										

 

In connection
with any transfer of this Note occurring prior to the date which is the earlier
of (i) the date of the declaration by the SEC of the effectiveness of a
registration statement under the Securities Act of 1933, as amended (the “Securities
Act”), covering resales of this Note (which effectiveness shall not have
been suspended or terminated at the date of the transfer) and (ii) February 1,
2007, the undersigned confirms that it has not utilized any general
solicitation or general advertising in connection with the transfer and that
this Note is being transferred:

 

[Check One]

 

	
  (1)

  	
  o

  	
  to the Company or a
  subsidiary thereof; or

  
	
   

  	
   

  	
   

  
	
  (2)

  	
  o

  	
  pursuant to and in
  compliance with Rule 144A under the Securities Act; or

  
	
   

  	
   

  	
   

  
	
  (3)

  	
  o

  	
  to an institutional
  “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
  (7) under the Securities Act) that has furnished to the Trustee a signed
  letter containing certain representations and agreements (the form of which
  letter can be obtained from the Trustee); or

  
	
   

  	
   

  	
   

  
	
  (4)

  	
  o

  	
  outside the United
  States to a person other than a “U.S. person” in compliance with
  Rule 904 of Regulation S under the Securities Act; or

  
	
   

  	
   

  	
   

  
	
  (5)

  	
  o

  	
  pursuant to the
  exemption from registration provided by Rule 144 under the Securities
  Act; or

  

 

A-12

 

	
  (6)

  	
  o

  	
  pursuant to an
  effective registration statement under the Securities Act.

  

 

Unless one of the boxes is checked, the Trustee will refuse
to register any of the Notes evidenced by this certificate in the name of any
person other than the registered Holder thereof; provided that if box
(3), (4) or (5) is checked, the Company or the Trustee may require,
prior to registering any such transfer of the Notes, in its sole discretion,
such legal opinions, certifications (including an investment letter in the case
of box (3) or (4)) and other information as the Trustee or the Company has
reasonably requested to confirm that such transfer is being made pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act.

 

If none of the
foregoing boxes is checked, the Trustee or Registrar shall not be obligated to
register this Note in the name of any person other than the Holder hereof
unless and until the conditions to any such transfer of registration set forth
herein and in Section 2.15 of the Indenture shall have been satisfied.

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Sign exactly as your name appears on

  the other side of this Note)

  	
   

  
	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  	
   

  
										

 

TO BE COMPLETED BY PURCHASER IF (2) ABOVE
IS CHECKED

 

The
undersigned represents and warrants that it is purchasing this Note for its own
account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a “qualified institutional buyer”
within the meaning of Rule 144A under the Securities Act and is aware that
the sale to it is being made in reliance on Rule 144A and acknowledges
that it has received such information regarding the Company as the undersigned
has requested pursuant to Rule 144A or has determined not to request such
information and that it is aware that the transferor is relying upon the
undersigned’s foregoing representations in order to claim the exemption from
registration provided by Rule 144A.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE: To be executed by an executive officer

  

 

A-13

 

OPTION OF HOLDER TO ELECT
PURCHASE

 

If you want to
elect to have this Note purchased by the Company pursuant to Section 4.10
or 4.11 of the Indenture, check the appropriate box:

 

Section 4.10  o

 

Section 4.11  o

 

If you want to
elect to have only part of this Note purchased by the Company pursuant to Section 4.10
or 4.11 of the Indenture, state the amount you elect to have purchased (in
denominations of $1,000 only, except if you have elected to have all of your
Notes purchased):

 

$                              

 

	
  Dated:

  	
   

  	
   

  	
  Signature:

  	
   

  	
   

  
	
   

  	
  NOTICE:  The signature on this assignment must
  correspond with the name as it appears upon the face of the within Note in
  every particular without alteration or enlargement or any change whatsoever
  and be guaranteed by the endorser’s bank or broker.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Social Security or

  
	
   

  	
  Tax ID No               :

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee: 

  	
   

  	
   

  
								

 

A-14

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

 

The following
exchanges of an interest in this Global Note for an interest in another Global
Note or for a Physical Note, or exchanges of an interest in another Global Note
or a Physical Note for an interest in this Global Note, have been made:

 

	
   

  	
   

  	
  Amount of

  Decrease in

  Principal Amount

  of this Global

  Note

  	
   

  	
  Amount of

  Increase in

  Principal Amount

  of this Global

  Note

  	
   

  	
  Principal Amount of

  this Global Note

  Following Such

  Decrease or

  Increase

  	
   

  	
  Signature of

  Authorized

  Officer of

  Trustee or Note

  Custodian

  
	
  Date of
  Exchange

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

I-1

 

GUARANTEE

 

Each Guarantor
listed below (which term “Guarantor” includes any successors or assigns under
the Indenture, dated the date hereof, among Edgen Acquisition Corporation, a
Nevada corporation, or any successor company thereto (the “Issuer”) and The
Bank of New York, as trustee (the “Indenture”), as supplemented by any
supplemental indentures thereto), has executed a supplemental indenture in
substantially the form attached as Exhibit F to the Indenture and each
Guarantor hereby fully, irrevocably and unconditionally, jointly and severally,
unconditionally and irrevocably guarantees (such guarantee, as amended or
supplemented from time to time, to be referred to herein as the “Guarantee”),
to each of the Holders, the Trustee and the Collateral Agent and their
respective successors and assigns that (i) the principal of, premium, if
any and interest and Additional Interest, if any, on the Notes shall be
promptly paid in full when due, subject to any applicable grace period, whether
upon redemption pursuant to the terms of the Notes, by acceleration or
otherwise, and interest on the overdue principal (including interest accruing
at the then applicable rate provided in the Indenture Documents after the
occurrence of any Event of Default set forth in Section 6.01(8) of
the Indenture, whether or not a claim for post-filing or post-petition interest
is allowed under applicable law following the institution of a proceeding under
bankruptcy, insolvency or similar laws), if any, and interest on any interest
and Additional Interest, if any, to the extent lawful, of the Notes and all
other obligations of the Company to the Holders, the Trustee and the Collateral
Agent hereunder, thereunder or under any Collateral Agreement shall be promptly
paid in full or performed, all in accordance with the terms hereof, thereof and
of the Collateral Agreements; and (ii) in case of any extension of time of
payment or renewal of any of the Notes or of any such other obligations, the
same shall be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal, subject to any applicable grace period,
whether at stated maturity, by acceleration or otherwise, subject, however, in
the case of clauses (i) and (ii) above, to the
limitations set forth in Section 10.03 of the Indenture.

 

The
obligations of each Guarantor to the Holders and to the Trustee pursuant to
this Guarantee and the Indenture are expressly set forth in Article Ten of
the Indenture and reference is hereby made to such Indenture for the precise
terms of this Guarantee.

 

No direct or
indirect stockholder, incorporator, controlling Person, employee, officer or
director, as such, past, present or future of the Issuer, the Guarantors or any
successor entity shall have any personal liability in respect of the Issuer’s obligations
or the obligations of the Guarantors under this Indenture, the Notes, the
Guarantees, the Registration Rights Agreement, the collateral Agreements or the
Intercreditor Agreement solely by reason of his, her or its status as such
stockholder, incorporator, controlling Person, employee, officer or director,
except that this provision shall in no way limit the obligation of any
Guarantor pursuant to any Guarantee of the Notes.  This is a continuing Guarantee and shall
remain in full force and effect and shall be binding upon each Guarantor and
its successors and assigns until full and final payment of all of the Issuer’s
obligations under the Notes and Indenture or until released or legally defeased
in accordance with the Indenture and shall inure to the benefit of the
successors and assigns of the Trustee and the Holders, and, in the event of any
transfer or assignment of rights by any Holder or the Trustee, the rights and
privileges herein conferred upon that party shall automatically extend to and
be vested in such transferee or assignee, all subject to the terms and
conditions

 

I-2

 

hereof. This
is a Guarantee of payment and performance and not of collectibility.   This Guarantee shall not be valid or
obligatory for any purpose until the certificate of authentication on the Note
upon which this Guarantee is noted shall have been executed by the Trustee
under the Indenture by the manual signature of one of its authorized officers.

 

The
obligations of each Guarantor under this Guarantee shall be limited to the
extent necessary to insure that it does not constitute a fraudulent conveyance
under applicable law.

 

THE TERMS OF ARTICLE TEN
OF THE INDENTURE ARE INCORPORATED HEREIN BY REFERENCE.

 

Capitalized terms
used herein have the same meanings given in the Indenture unless otherwise
indicated.

 

 

[signature page follows]

 

I-3

 

IN WITNESS
WHEREOF, each Guarantor has caused this instrument to be duly executed.

 

 

	
  Dated: February 1, 2005

  	
  EDGEN LOUISIANA
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EDGEN
  CARBON PRODUCTS GROUP, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EDGEN
  ALLOY PRODUCTS GROUP, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

I-4

 

EXHIBIT B

 

[FORM OF EXCHANGE NOTE]

 

EDGEN CORPORATION

 

97/8% SENIOR SECURED NOTES DUE 2011

 

	
  CUSIP No.

  	
   

  	
   

  
	
  No.

  	
   

  	
  $

  

 

Edgen Corporation, a Nevada corporation (the “Company”, which
term includes any successors under the Indenture hereinafter referred to), for
value received promise to pay to Cede & Co., or registered
assigns, the principal sum of                         
DOLLARS ($[       ]) on February 1,
2011.

 

Interest
Rate:  97/8%

 

Interest
Payment Dates:  February 1 and August 1,
commencing August 1, 2005.

 

Record
Dates:  January 15 and July 15.

 

Reference is
made to the further provisions of this Note contained on the reverse side of
this Note, which will for all purposes have the same effect as if set forth at
this place.

 

IN WITNESS
WHEREOF, the Company has caused this Note to be signed manually or by facsimile
by its duly authorized officer.

 

	
   

  	
  EDGEN CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:              ,
  2005

  	
   

  	
   

  

 

B-1

 

TRUSTEE CERTIFICATE OF
AUTHENTICATION

 

This is one of
the 97/8% Senior Secured Notes due 2011 referred to in the
within-mentioned Indenture.

 

	
   

  	
  THE BANK OF NEW YORK,
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated: February 1, 2005

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

B-2

 

(REVERSE OF NOTE)

 

97/8%
Senior Secured Note due 2011

 

1.                                       Interest.  Edgen Corporation, a Nevada corporation
(the ”Company”, which term includes any successor entity), promises
to pay interest on the principal amount of this Note at the rate per annum
shown above.  Interest on the Note will
accrue from the most recent date on which interest has been paid or, if no
interest has been paid, from and including the date of issuance.  The Company will pay interest in cash
semi-annually in arrears on each Interest Payment Date, commencing August 1,
2005.  Interest will be computed on the
basis of a 360-day year comprised of twelve 30-day months.

 

[FOR
REGULATION S TEMPORARY GLOBAL NOTES INSERT: Until this Regulation S Temporary
Global Note is exchanged for one or more Regulation S Permanent Global Notes,
the Holder hereof shall not be entitled to receive payments of interest hereon;
until so exchanged in full, this Regulation S Temporary Global Note shall in
all other respects be entitled to the same benefits as other Notes under the
Indenture.]

 

2.                                       Method
of Payment.  The Company shall pay
interest on the Notes (except defaulted interest) to the Persons who are the
registered Holders at the close of business on the Record Date immediately
preceding the Interest Payment Date even if the Notes are cancelled on
registration of transfer or registration of exchange after such Record Date,
and on or before such Interest Payment Date. 
Holders must surrender Notes to a Paying Agent to collect principal
payments.  The Company shall pay
principal and interest in money of the United States that at the time of
payment is legal tender for payment of public and private debts (“U.S. Legal
Tender”).  However, the Company may
pay principal and interest by check payable in such U.S. Legal Tender.  The Company may deliver any such interest
payment to the Paying Agent or to a Holder at the Holder’s registered address.

 

3.                                       Paying
Agent and Registrar.  Initially, The
Bank of New York (the “Trustee”) will act as Paying Agent and
Registrar.  The Company may change any
Paying Agent, Registrar or co-Registrar without notice to the Holders.  Neither the Company nor any Affiliate of the
Company may act as Paying Agent.

 

4.                                       Indenture.  The Notes were issued under an Indenture,
dated as of February 1, 2005 (the “Indenture”), by and between the
Company and the Trustee.  The terms of the Notes include those stated in
the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) (the “TIA”),
as in effect on the date of the Indenture until such time as the Indenture is
qualified under the TIA, and thereafter as in effect on the date on which the
Indenture is qualified under the TIA. 
Notwithstanding anything to the contrary herein, the Notes are subject
to all such terms, and Holders of Notes are referred to in the Indenture and
the TIA for a statement of such terms. 
The Notes are senior secured obligations of the Company.  Each Holder, by accepting a Note, agrees to
be bound by all of the terms and provisions of the Indenture, as the same may
be amended from time to time. 
Capitalized terms herein are used as defined in the Indenture unless
otherwise defined herein.

 

B-3

 

5.                                       Redemption.

 

(a)                                  Optional
Redemption on or after February 1, 2008.  Except as described in Sections 5(b) and
5(c), the Notes are not redeemable before February 1, 2008.  At any time on or after February 1,
2008, the Company may redeem the Notes, at its option, in whole or in part, at
any time or from time to time, upon not less than 30 nor more than 60 days’
notice, at the following redemption prices (expressed as percentages of the
principal amount thereof) if redeemed during the twelve-month period commencing
on February 1, of each of the years set forth below, plus, in each case,
accrued and unpaid interest and Additional Interest, if any, thereon to the
Redemption Date:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  104.938

  	
  %

  
	
  2009

  	
   

  	
  102.469

  	
  %

  
	
  2010 and each year thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b)                                 Optional
Redemption Upon Equity Offerings.  At
any time, or from time to time, on or prior to February 1, 2007, the
Company may, at its option, use an amount not to exceed the net cash proceeds
of one or more Equity Offerings to redeem up to 35% of the aggregate principal
amount of the Notes (which includes Additional Notes, if any) originally issued
under the Indenture at a redemption
price of 109.875% of the aggregate principal amount thereof, plus accrued and
unpaid interest and Additional Interest, thereon, if any, to the Redemption
Date.  In order to effect the foregoing
redemption with the proceeds of any Equity Offering,

 

(1)                                  at least 65% of the aggregate principal
amount of the Notes (which includes Additional Notes, if any) originally issued
under the Indenture shall remain outstanding immediately after such Redemption
Date; and

 

(2)                                  the Redemption Date must be as of a date not
more than 120 days after the consummation of any such Equity Offering.

 

(c)                                  Optional
Redemption Prior to February 1, 2008. 
At any time prior to February 1, 2008, the Company may, at its
option, redeem the Notes for cash, in whole or in part, at any time or from
time to time, upon not less than 30 days nor more than 60 days notice to each
Holder of Notes, at a redemption price equal to the greater of:

 

(1)                                  100%
of the principal amount of the Notes being redeemed; or

 

(2)                                  the
sum of the present values of 104.938% of the principal amount of the Notes
being redeemed and scheduled payments of interest on such Notes to and
including February 1, 2008 discounted to the date of redemption on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Treasury Rate plus 50 basis points, together in either case with
accrued and unpaid interest, if any, to the date of redemption.

 

B-4

 

“Comparable Treasury Issue” means the United States
Treasury security selected by a Reference Treasury Dealer appointed by the
Company as having a maturity comparable to the remaining term of the Notes (as
if the final maturity of the Notes was February 1, 2008) that
would be utilized at the time of the selection and in accordance with customary
financial practice in pricing new issues of corporate debt securities of
comparable maturity to the remaining term of the Notes (as if the final
maturity of the Notes was February 1, 2008).

 

“Comparable Treasury Price” means, with respect to any
Redemption Date, (1) the average of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) on the third Business Day preceding such Redemption Date, as
set forth in the daily statistical release (or any successor release) published
by the Federal Reserve Bank of New York and designated “Composite 3:30 pm.
Quotations for U.S. Government Securities” or (2) if such release (or any
successor release is not published or does not contain such prices on such
Business Day), (A) the average of the Reference Treasury Dealer Quotations
(as defined below) for such redemption date, after excluding the highest and
lowest such Reference Treasury Dealer Quotation or (B) if the Company
obtains fewer than three such Reference Treasury Dealer Quotations, the average
of all such Reference Treasury Dealer Quotations.

 

“Reference Treasury Dealer” means any primary U.S.
government securities dealer in the City of New York selected by the Company.

 

“Reference Treasury Dealer Quotation” means, with respect
to each Reference Treasury Dealer and any Redemption Date, the average, as
determined by the Company, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m.
on the third Business Day preceding such Redemption Date.

 

 “Treasury Rate”
means, with respect to any redemption date, the rate per annum equal to the
semi-annual equivalent yield to maturity of the Comparable Treasury Issue,
assuming a price for the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the Comparable Treasury Price for such
redemption period.

 

(d)                                 Notice
of Redemption.  Notice of redemption
will be mailed by first-class mail at least 30 days but not more than 60 days
before the Redemption Date to each Holder to be redeemed at its registered
address.  If fewer than all of the Notes
are to be redeemed, at any time, selection of the Notes for redemption will be
made by the Trustee in compliance with the requirements of the principal
national securities exchange, if any, on which the Notes are listed, or, if the
Notes are not then listed on a national securities exchange, on a pro rata
basis, by lot or by such method as the Trustee may reasonably determine is fair
and appropriate, provided that no
Notes of a principal amount of $1,000 or less shall be redeemed in part;
and provided, further, that any such partial redemption made with the proceeds of an Equity Offering will be
made only on a pro rata basis or on as nearly a pro rata basis as is practicable (subject to DTC
procedures), unless such method is otherwise prohibited.  Notes
in denominations of $1,000 or more may redeemed in part.

 

Except as set forth in the Indenture, if monies for
the redemption of the Notes called for redemption shall have been deposited
with the Paying Agent for redemption on such Redemption Date sufficient to pay
such Redemption Price plus accrued and unpaid interest and Additional Interest,
if any, the Notes called for redemption will cease to bear interest from and
after such Redemption Date, and the only remaining right of the Holders of such
Notes will be to

 

B-5

 

receive payment of the Redemption Price plus accrued
and unpaid interest and Additional Interest, if any, as of the Redemption Date
upon surrender to the Paying Agent of the Notes redeemed.

 

(e)                                  Mandatory
Redemption.  The Company shall not be
required to make mandatory redemption or sinking fund payments with respect to
the Notes.

 

6.                                       Offers
to Purchase.  Sections 4.10 and 4.11
of the Indenture provide that upon the occurrence of a Change of Control and
after certain Asset Sales and subject to further limitations contained therein,
the Company will make an offer to purchase certain amounts of the Notes in
accordance with the procedures set forth in the Indenture.

 

7.                                       Denominations;
Transfer; Exchange.  The Notes are in
registered form, without coupons, in denominations of $1,000 and integral
multiples thereof.  A Holder shall
register the transfer of 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 any taxes, fees or similar governmental charges payable in
connection therewith as permitted by the Indenture.  The
Registrar shall not be required to register the transfer or exchange of any
Note (i) during a period beginning at the opening of business fifteen
(15) days before the mailing of a notice of redemption of Notes and ending at
the close of business on the day of such mailing and (ii) selected for
redemption in whole or in part pursuant to Article Three of the Indenture,
except the unredeemed portion of any Note being redeemed in part.

 

8.                                       Persons
Deemed Owners.  The registered Holder
of a Note shall be treated as the owner of it and the Notes of which it is
composed for all purposes.

 

9.                                       Unclaimed
Money.  If money for the payment of
principal or interest remains unclaimed for two years, the Trustee and the
Paying Agent may pay the money without interest thereon back to the
Company.  After that, all liability of
the Trustee and such Paying Agent with respect to such money shall cease.

 

10.                                 Discharge
Prior to Redemption or Maturity.  If
the Company at any time deposits with the Trustee U.S. Legal Tender or U.S.
Government Obligations sufficient to pay the principal of and interest on the
Notes to redemption or stated maturity and complies with the other provisions
of the Indenture relating thereto, the Company shall be deemed to have paid and
discharged the entire Indebtedness represented by the outstanding Notes, except
for the rights of Holders to receive payments in respect of the principal of,
and premium, if any, interest and Additional Interest, if any, on the Notes
when such payments are due from the deposits referred to above.

 

B-6

 

11.                                 Amendment;
Supplement; Waiver.  Subject to
certain exceptions, the Indenture, the Notes or the Guarantees may be amended
or supplemented with the written consent of the Holders of at least a majority
in aggregate principal amount of the Notes then outstanding, and any existing
Default or Event of Default or noncompliance with any provision of the
Indenture, the Notes or the Guarantees may be waived with the written consent
of the Holders of a majority in aggregate principal amount of the Notes then
outstanding.  Without consent of any
Holder, the parties thereto may amend or supplement the Indenture, the Notes or
the Guarantees to, among other things, cure any ambiguity, defect or
inconsistency, provide for uncertificated Notes or Guarantees in addition to or
in place of certificated Notes or Guarantees, comply with the TIA, or comply
with Article Five of the Indenture or make any other change that does not
adversely affect the rights of any Holder of a Note.

 

12.                                 Restrictive
Covenants.  The Indenture imposes
certain limitations on the ability of the Company and the Restricted
Subsidiaries to, among other things, incur additional Indebtedness or grant
Liens, make payments in respect of their Capital Stock or certain Indebtedness,
enter into transactions with Affiliates, create dividend or other payment
restrictions affecting Subsidiaries, merge or consolidate with any other
Person, sell, assign, transfer, lease, convey or otherwise dispose of all or
substantially all of its assets or adopt a plan of liquidation.  Such limitations are subject to a number of
important qualifications and exceptions. 
The Company must annually report to the Trustee on compliance with such
limitations.

 

13.                                 Successors.  When a successor assumes, in accordance with
the Indenture, all the obligations of its predecessor under the Notes, the
Guarantees and the Indenture, the predecessor will be released from those
obligations.

 

14.                                 Defaults
and Remedies.  If an Event of Default
occurs and is continuing, the Trustee or the Holders of at least 25% in
aggregate principal amount of the Notes then outstanding may declare all the
Notes to be due and payable in the manner, at the time and with the effect
provided in the Indenture.  Holders of
Notes may not enforce the Indenture except as provided in the Indenture.  The Trustee is not obligated to enforce the
Indenture or the Notes unless it has received indemnity satisfactory to
it.  The Indenture permits, subject to
certain limitations therein provided, Holders of a majority in aggregate
principal amount of the Notes then outstanding to direct the Trustee in its
exercise of any trust or power.  The
Trustee may withhold from Holders of Notes notice of any continuing Default or
Event of Default (except a Default in payment of principal or interest) if it
determines that withholding notice is in their interest.

 

15.                                 Trustee
Dealings with Company.  Subject to
the terms of the TIA and the Indenture, the Trustee under the Indenture, in its
individual or any other capacity, may become the owner or pledgee of Notes and
may otherwise deal with the Company, the Subsidiaries or their respective
Affiliates as if it were not the Trustee.

 

B-7

 

16.                                 No
Recourse Against Others.  No past, present or future director, officer,
employee, incorporator, agent, stockholder or Affiliate of the Company or a
Guarantor, as such, shall have any liability for any obligations of the Company
or the Guarantors under the Notes, the Guarantees, this Indenture or the
Collateral Agreements or for any claim based on, in respect of, such obligations
or their creation. Each Holder by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for issuance of
the Notes.

 

17.                                 Notation
of Guarantee.  Subject to the terms
and conditions of Article Ten of the Indenture, payment of principal,
interest and Additional Interest, if any (including interest on overdue
principal and overdue interest, if lawful), is unconditionally guaranteed,
jointly and severally, by each of the Guarantors.

 

18.                                 Intercreditor
Agreement.  Each Holder, by its
acceptance of its Note, agrees to be bound by the terms of the Intercreditor
Agreements and all such replacement Intercreditor Agreements and each of the
Guarantors, if any, and the Holders hereby authorize the Trustee and the
Collateral Agent to bind the Holders to the extent provided in the
Intercreditor Agreement.

 

19.                                 Authentication.  This Note shall not be valid until the
Trustee or Authenticating Agent manually signs the certificate of
authentication on this Note.

 

20.                                 Governing
Law.  THIS NOTE, THE GUARANTEES, THE
COLLATERAL AGREEMENTS AND THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE
AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF
CONFLICT OF LAWS.  EACH OF THE PARTIES
HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW
YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE.

 

21.                                 Waiver
of Jury Trial.  Each of the parties
hereto and the Holders (by their acceptance of the Note) hereby irrevocably
waives, to the fullest extent permitted by law, any and all right to trial by
jury in any action or proceeding arising out of or in connection with the
Indenture, this Note, the Guarantees, the Collateral Agreements or the
transactions contemplated by the Indenture.

 

22.                                 Security.  The Company’ and Guarantors’ obligations
under the Notes are secured by Liens on the Collateral pursuant to the terms of
the Collateral Agreements.  The actions
of the Trustee and the Holders of the Notes secured by such Liens and the
application of proceeds from the enforcement of any remedies with respect to
such Collateral are limited pursuant to the terms of the Collateral Agreements.

 

23.                                 Abbreviations
and Defined Terms.  Customary
abbreviations may be used in the name of a Holder of a Note or an assignee,
such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties),
JT TEN (= joint tenants with right of survivorship and not as tenants in
common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

B-8

 

24.                                 CUSIP Numbers. 
Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Issuer has caused CUSIP numbers to be
printed on the Notes and the Trustee may use CUSIP 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, and any
such redemption shall not be affected by any defect in or omission of such
numbers.

 

The Company will furnish to any Holder of a Note upon
written request and without charge a copy of the Indenture.  Requests may be made to: Edgen Corporation,
18444 Highland Road, Baton Rouge, Louisiana 70809

 

B-9

 

ASSIGNMENT FORM

 

If you the
Holder want to assign this Note, fill in the form below and have your signature
guaranteed:

 

I or we assign and transfer this Note to:

 

	
   

  	
   

  
	
   

  
	
   

  	
   

  
	
  (Print or type name, address and zip code and

  social security or tax ID number of assignee)

  

 

 

and irrevocably appoint                                                                                                                              
agent to transfer this Note on the books of the Company.  The agent may substitute another to act for
him.

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Sign exactly as your name appears on

  the other side of this Note)

  	
   

  
	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  	
   

  
										

 

In connection
with any transfer of this Note occurring prior to the date which is the earlier
of (i) the date of the declaration by the SEC of the effectiveness of a
registration statement under the Securities Act of 1933, as amended (the “Securities
Act”), covering resales of this Note (which effectiveness shall not have
been suspended or terminated at the date of the transfer) and (ii) [                   ], 2007, the undersigned confirms
that it has not utilized any general solicitation or general advertising in
connection with the transfer and that this Note is being transferred:

 

[Check One]

 

	
  (1)

  	
  o

  	
  to the Company or a
  subsidiary thereof; or

  
	
   

  	
   

  	
   

  
	
  (2)

  	
  o

  	
  pursuant to and in
  compliance with Rule 144A under the Securities Act; or

  
	
   

  	
   

  	
   

  
	
  (3)

  	
  o

  	
  to an institutional
  “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
  (7) under the Securities Act) that has furnished to the Trustee a signed
  letter containing certain representations and agreements (the form of which
  letter can be obtained from the Trustee); or

  
	
   

  	
   

  	
   

  
	
  (4)

  	
  o

  	
  outside the United
  States to a person other than a “U.S. person” in compliance with
  Rule 904 of Regulation S under the Securities Act; or

  
	
   

  	
   

  	
   

  
	
  (5)

  	
  o

  	
  pursuant to the
  exemption from registration provided by Rule 144 under the Securities
  Act; or

  

 

B-10

 

	
  (6)

  	
  o

  	
  pursuant to an
  effective registration statement under the Securities Act.

  

 

Unless one of the boxes is checked, the Trustee will
refuse to register any of the Notes evidenced by this certificate in the name
of any person other than the registered Holder thereof; provided that if
box (3), (4) or (5) is checked, the Company or the Trustee may
require, prior to registering any such transfer of the Notes, in its sole
discretion, such legal opinions, certifications (including an investment letter
in the case of box (3) or (4)) and other information as the Trustee or the
Company has reasonably requested to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act.

 

If none of the
foregoing boxes is checked, the Trustee or Registrar shall not be obligated to
register this Note in the name of any person other than the Holder hereof
unless and until the conditions to any such transfer of registration set forth
herein and in Section 2.15 of the Indenture shall have been satisfied.

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Sign exactly as your name appears on

  the other side of this Note)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  	
   

  
										

 

TO BE COMPLETED BY PURCHASER IF (2) ABOVE
IS CHECKED

 

The
undersigned represents and warrants that it is purchasing this Note for its own
account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a “qualified institutional buyer”
within the meaning of Rule 144A under the Securities Act and is aware that
the sale to it is being made in reliance on Rule 144A and acknowledges
that it has received such information regarding the Company as the undersigned
has requested pursuant to Rule 144A or has determined not to request such
information and that it is aware that the transferor is relying upon the
undersigned’s foregoing representations in order to claim the exemption from
registration provided by Rule 144A.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE: To be executed by an executive officer

  

 

B-11

 

OPTION OF HOLDER TO ELECT
PURCHASE

 

If you want to
elect to have this Note purchased by the Company pursuant to Section 4.10
or 4.11 of the Indenture, check the appropriate box:

 

Section 4.10  o

 

Section 4.11  o

 

If you want to
elect to have only part of this Note purchased by the Company pursuant to Section 4.10
or 4.11 of the Indenture, state the amount you elect to have purchased (in
denominations of $1,000 only, except if you have elected to have all of your
Notes purchased):

 

$                            

 

 

	
  Dated:

  	
   

  	
   

  	
  Signature:

  	
   

  	
   

  
	
   

  	
  NOTICE: The signature on this assignment
  must correspond with the name as it appears upon the face of the within Note
  in every particular without alteration or enlargement or any change
  whatsoever and be guaranteed by the endorser’s bank or broker.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Social Security or

  
	
   

  	
  Tax ID No               :

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee: 

  	
   

  	
   

  
								

 

B-12

 

EXHIBIT C

 

[FORM OF LEGEND FOR
GLOBAL NOTES]

 

Any Global
Note authenticated and delivered hereunder shall bear a legend (which would be
in addition to any other legends required in the case of a Restricted Security)
in substantially the following form:

 

[If a Regulation S Temporary Global Note,
insert: THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL NOTE, AND
THE CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR CERTIFICATED NOTES,
ARE AS SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN).  NEITHER THE HOLDER NOR THE BENEFICIAL OWNERS
OF THIS REGULATION S TEMPORARY GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT
OF INTEREST HEREON.]

 

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING
OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A
DEPOSITORY OR A NOMINEE OF A DEPOSITORY OR A SUCCESSOR DEPOSITORY.  THIS NOTE IS NOT EXCHANGEABLE FOR NOTES
REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER
OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE DEPOSITORY
TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE
DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED EXCEPT
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

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

 

C-1

 

EXHIBIT D

 

Form of Certificate To Be

Delivered in Connection with

Transfers to Non-QIB Accredited Investors

 

                      ,
        

 

The Bank of New York

101 Barclay Street

Floor 8W

New York, New York  10286

Attn:  Corporate Trust Administration

 

Re:                               97/8%
Senior Secured Notes due 2011 (the “Notes”) of Edgen Acquisition
Corporation, a Nevada corporation (the “Company,” which term includes
any successor entity)

 

Ladies and Gentlemen:

 

In connection
with our proposed purchase of $                          
aggregate principal amount of the Notes, we confirm that:

 

1.                                       We
have received a copy of the Offering Circular (the “Offering Circular”),
dated January 25, 2005, relating to the Notes and such other information
as we deem necessary in order to make our investment decision.  We acknowledge that we have read and agreed
to the matters stated in the section entitled “Notice to Investors” of the
Offering Circular.

 

2.                                       We
understand that any subsequent transfer of the Notes is subject to certain
restrictions and conditions set forth in the Indenture dated as of February 1,
2005 relating to the Notes (the “Indenture”) and the undersigned agrees
to be bound by, and not to resell, pledge or otherwise transfer the Notes
except in compliance with, such restrictions and conditions and the Securities
Act of 1933, as amended (the “Securities Act”).

 

3.                                       We
understand that the offer and sale of the Notes have not been registered under
the Securities Act, and that the Notes 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 or otherwise transfer any Notes
prior to the date which is within two years after the original issuance of the
Notes or the last date on which the Note is owned by the Company or any
affiliate of the Company, we will do so only (i) to the Company or any of
its subsidiaries, (ii) inside the United States in accordance with Rule 144A
under the Securities Act to a “qualified institutional buyer” (as defined in Rule 144A
under the Securities Act), (iii) inside the United States to an institutional
“accredited investor” (as defined below) provided that, prior to such transfer,
the transferee furnishes (or has furnished on its behalf by a U.S.
broker-dealer) to you a signed letter containing certain representations and
agreements relating to the restrictions on transfer of the Notes,

 

D-1

 

substantially in
the form of this letter, (iv) outside the United States in accordance with
Rule 904 of Regulation S under the Securities Act, (v) pursuant to
the exemption from registration provided by Rule 144 under the Securities
Act (if available) or (vi) pursuant to an effective registration statement
under the Securities Act, and we further agree to provide to any person
purchasing any of the Notes from us a notice advising such purchaser that
resales of the Notes are restricted as stated herein.

 

4.                                       We
are not acquiring the Notes for or on behalf of, and will not transfer the
Notes to, any pension or welfare plan (as defined in Section 3 of the
Employee Retirement Income Security Act of 1974), except as permitted in the section entitled
“Notice to Investors” of the Offering Circular.

 

5.                                       We
understand that, on any proposed resale of any Notes, we will be required to
furnish to you and the Company such certification, legal opinions and other
information as you and the Company 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.

 

6.                                       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 their investment, as the case may be.

 

7.                                       We
are acquiring the Notes 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.

 

8.                                       We
are not acquiring Notes with a view to any distribution thereof in a
transaction that would violate the Securities Act or the securities laws of any
state of the United States or any other applicable jurisdiction; provided that
the disposition of our property and the property of any accounts for which we
are acting as fiduciary shall remain at all times within our and their control.

 

You and the
Company 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, and we agree to notify you promptly if any of our
representations or warranties herein cease to be accurate and complete.

 

D-2

 

This letter
shall be governed by, and construed in accordance with, the laws of the State
of New York without regard to principles of conflicts of laws.

 

	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Name of Transferee]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signature

  

 

D-3

 

EXHIBIT E

 

Form of Certificate To Be

Delivered in Connection with

Transfers Pursuant to Regulation S

 

The Bank of New York

101 Barclay Street

Floor 8W

New York, New York  10286

Attn:  Corporate Trust Administration

 

Re:                               97/8%
Senior Secured Notes due 2011 (the “Notes”) of Edgen Acquisition
Corporation, a Nevada corporation (the “Company,” which term includes
any successor entity)

 

Ladies and Gentlemen:

 

In connection with our proposed sale of $                                
aggregate principal amount of the Notes, we confirm that such sale has been
effected pursuant to and in accordance with Regulation S under the U.S.
Securities Act of 1933, as amended (the “Securities Act”), and,
accordingly, we represent that:

 

1.                                       the
offer of the Notes was not made to a person in the United States;

 

2.                                       either
(a) at the time the buy offer was originated, the transferee was outside
the United States or we and any person acting on our behalf reasonably believed
that the transferee was outside the United States, or (b) the transaction
was executed in, on or through the facilities of a designated off-shore
securities market and neither we nor any person acting on our behalf knows that
the transaction has been pre-arranged with a buyer in the United States;

 

3.                                       no
directed selling efforts have been made in the United States in contravention
of the requirements of Rule 903(b) or Rule 904(b) of
Regulation S, as applicable;

 

4.                                       the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act; and

 

5.                                       we
have advised the transferee of the transfer restrictions applicable to the
Notes.

 

E-1

 

You and the
Company 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.  Terms used in
this certificate have the meanings set forth in Regulation S.

 

	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Name of Transferee]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signature

  

 

E-2

 

EXHIBIT F

 

FORM OF SUPPLEMENTAL INDENTURE

 

TO BE DELIVERED BY GUARANTORS

 

Supplemental Indenture (this “Supplemental Indenture”), dated as
of February 1, 2005, among the parties identified in the signature page of
this Supplemental Indenture as a Guaranteeing Subsidiary (each a “Guaranteeing
Subsidiary”) of the Company, and The Bank of New York, as trustee under the
Indenture referred to below (the “Trustee”).

 

W I T N E S S E T H

 

WHEREAS, Edgen Acquisition Corporation, a Nevada corporation (the “Issuer”)
has heretofore executed and delivered to the Trustee an indenture (the “Indenture”),
dated as of February 1, 2005, providing for the issuance of 97/8%
Senior Secured Notes due 2011 (the “Notes”);

 

WHEREAS, on February 1, 2005 the Issuer merged (the “Merger”) with
and into Edgen Corporation, a Nevada corporation (the “Company”) and
upon effectiveness of the Merger, the Company assumed the Issuer’s obligations
under the Indenture;

 

WHEREAS, Section 4.16 of the Indenture provides that under
certain circumstances each Guaranteeing Subsidiary shall execute and deliver to
the Trustee a supplemental indenture and a Guarantee pursuant to which any
newly-acquired or created Guarantor shall unconditionally guarantee all of the
Company’s obligations under the Notes and the Indenture on the terms and
conditions set forth therein and herein and in such Guarantee; and

 

WHEREAS, pursuant to Section 9.1 of the Indenture, the Trustee is
authorized to execute and delivery this Supplemental Indenture.

 

NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt of which is hereby acknowledged, each
Guaranteeing Subsidiary and the Trustee mutually covenant and agree for the
equal and ratable benefit of the Holders of the Notes as follows:

 

1.                                       Capitalized
Terms.  Capitalized terms used herein
without definition shall have the meanings assigned to them in the Indenture.

 

2.                                       Joinder
to Indenture.  Each of the
Guaranteeing Subsidiaries hereby agree to become bound by the terms, conditions
and other provisions of the Indenture with all attendant rights, duties and
obligations stated therein, with the same force and effect as if originally
named as a Guarantor therein and as if such Guaranteeing Subsidiary executed
the Indenture on the date thereof.

 

F-1

 

3.                                       Agreement
to Guarantee.  Each Guarantor hereby
fully, irrevocably and unconditionally, jointly and severally, unconditionally
and irrevocably guarantees (such guarantee, as amended or supplemented from
time to time, to be referred to herein as the “Guarantee”), to each of
the Holders, the Trustee and the Collateral Agent and their respective
successors and assigns that (i) the principal of, premium, if any and
interest and Additional Interest, if any, on the Notes shall be promptly paid
in full when due, subject to any applicable grace period, whether upon
redemption pursuant to the terms of the Notes, by acceleration or otherwise,
and interest on the overdue principal (including interest accruing at the then
applicable rate provided in the Indenture Documents after the occurrence of any
Event of Default set forth in Section 6.01(8) of the
Indenture, whether or not a claim for post-filing or post-petition interest is
allowed under applicable law following the institution of a proceeding under
bankruptcy, insolvency or similar laws), if any, and interest on any interest
and Additional Interest, if any, to the extent lawful, of the Notes and all
other obligations of the Company to the Holders, the Trustee and the Collateral
Agent hereunder, thereunder or under any Collateral Agreement shall be promptly
paid in full or performed, all in accordance with the terms hereof, thereof and
of the Collateral Agreements; and (ii) in case of any extension of time of
payment or renewal of any of the Notes or of any such other obligations, the
same shall be promptly paid in full when due or performed in accordance with
the terms of the extension or renewal, subject to any applicable grace period,
whether at stated maturity, by acceleration or otherwise, subject, however, in
the case of clauses (i) and (ii) above, to the
limitations set forth in Section 10.03 of the Indenture.

 

The obligations of each Guaranteeing Subsidiary to the Holders and to
the Trustee pursuant to this Supplemental Indenture and the Indenture are
expressly set forth in Article Ten of the Indenture and reference is hereby
made to such Indenture for the precise terms of the Guarantee.

 

No past, present or future director, officer, employee, incorporator,
agent, stockholder or Affiliate of the Company or a Guarantor, as such, shall
have any liability for any obligations of the Company or the Guarantors under
the Notes, the Guarantees, the Indenture or the Collateral Agreements or for
any claim based on, in respect of, such obligations or their creation.

 

The Guarantee executed and delivered hereby is a continuing Guarantee and
shall remain in full force and effect and shall be binding upon each Guarantor
and its successors and assigns until full and final payment of all of the
Company’s obligations under the Notes and Indenture or until released or
legally defeased in accordance with the Indenture and shall inure to the
benefit of the successors and assigns of the Trustee and the Holders, and, in
the event of any transfer or assignment of rights by any Holder or the Trustee,
the rights and privileges herein conferred upon that party shall automatically
extend to and be vested in such transferee or assignee, all subject to the
terms and conditions hereof.  This is a
Guarantee of payment and performance and not of collectibility.

 

The obligations of each Guaranteeing Subsidiary under its Subsidiary
Guarantee shall be limited to the extent necessary to insure that it does not
constitute a fraudulent conveyance under applicable law.

 

THE TERMS OF ARTICLE TEN OF THE INDENTURE ARE INCORPORATED HEREIN
BY REFERENCE.

 

F-2

 

4.                                       GOVERNING
LAW.  THIS SUPPLEMENTAL INDENTURE
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK, AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW
YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.  EACH OF THE PARTIES HERETO AGREES TO SUBMIT
TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE.

 

5.                                       Counterparts.  The parties may sign any number of copies of
this Supplemental Indenture.  Each signed
copy shall be an original, but all of them together represent the same
agreement.

 

6.                                       Effect
of Headings.  The Section headings
herein are for convenience only and shall not affect the construction hereof.

 

 

[signature page follows]

 

F-3

 

IN WITNESS WHEREOF, the parties hereto have caused
this Supplemental Indenture to be duly executed and attested, all as of the
date written below.

 

 

	
  Dated: [               ]

  	
  GUARANTEEING SUBSIDIARIES:

  
	
   

  	
   

  
	
   

  	
  [                                                         
  ]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE TRUSTEE:

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

F-4

 

EXHIBIT G

 

FORM OF INTERCREDITOR AND SUBORDINATION
AGREEMENT

 

[TO BE PROVIDED]

 

G-1

 

EXHIBIT H-1

 

Form of Landlord Waiver

 

1.                                       A
true and correct copy of the Lease is attached hereto as Exhibit A.  The Lease is in full force and effect and
Landlord is not aware of any existing default under the Lease.

 

2.                                       The
Collateral may be stored, utilized and/or installed at the Premises and shall
not be deemed a fixture or part of the real estate but shall at all times be
considered personal property, whether or not any of the Collateral becomes so
related to the real estate that an interest therein arises under real estate
law.

 

3.                                       Until
such time as the obligations of Company to the Holders are paid in full,
Landlord disclaims any interest in the Collateral, unless secured by an IMC
purchase order, and agrees not to distrain or levy upon any of the Collateral
or to assert any claim against the Collateral for any reason.

 

4.                                       The
Collateral Agent may enter upon the Premises at any time to inspect or remove
the Collateral, unless secured by an IMC purchase order, and may advertise and
conduct public auctions or private sales of the Collateral at the Premises, in
each case without liability of the Collateral Agent to Landlord; provided
however, that the Collateral Agent shall promptly repair, at its expense, any
physical damage to the Premises actually caused by said removal by the
Collateral Agent.  The Collateral Agent
shall not be liable for any diminution in value of the Premises caused by the
absence of Collateral actually removed or by any necessity of replacing the
Collateral.

 

5.                                       Landlord
shall not interfere with any sale of the Collateral, conducted by or on behalf
of the Collateral Agent on the premises in accordance with the approved terms
of this agreement or if agreed to in writing by the Landlord.

 

6.                                       Landlord
agrees to provide the Collateral Agent with written notice of any default or
claimed default by the Company under the Lease, and prior to the termination of
the Lease, to permit the Collateral Agent the same opportunity to cure or cause
to be cured such default as is granted the Company under the Lease, provided,
however that the Collateral Agent shall have at least ten (10) days
following receipt of said notice to cure such default.  Landlord will permit the Collateral Agent to
remain on the Premises for a period of up to thirty (30) days following receipt
by Agent of written notice from Landlord that Landlord is in possession and
control of the Premises, has terminated the Lease and is directing removal of
the Collateral, unless secured by an IMC purchase order for said materials,
subject, however, to the payment to Landlord by the Collateral Agent, prorated
on per diem basis determined on a 30 day month. 
The Collateral Agent’s right to occupy the Premises under the preceding
sentence shall be extended for the time period the Collateral Agent is
prohibited from selling the Collateral due to the imposition of the automatic
stay by the filing of bankruptcy proceedings by or against the Company.  The Collateral Agent shall not assume nor be
liable for any unperformed or unpaid obligations of the Company under the
Lease.

 

H-1-1

 

7.                                       This
waiver shall inure to the benefit of the Collateral Agent, the Holders, their
successors and assigns and shall be binding upon Landlord, its heirs, assigns,
representatives and successors.  Landlord
agrees and consents to the filing of this document for recording on the Land
Records.

 

 

[Remainder of page intentionally left
blank]

 

H-1-2

 

	
  Dated this          day of
                            ,
  20    .

  	
   

  
	
   

  	
   

  
	
   

  	
  LANDLORD:

  
	
   

  	
  [Landlord]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  LANDLORD’S ADDRESS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
					

 

H-1-3

 

EXHIBIT A

 

Lease

 

H-1-4

 

EXHIBIT H-2

 

Form of
Bailee and Consignee Waiver

 

This letter
constitutes notice to you of the security interest of Collateral Agent in the
Collateral now or hereafter in your possession and that with respect to all
such Collateral you are acting as bailee for Collateral Agent’s benefit.  Until you are notified to the contrary,
however, you may continue to accept instructions from the Company regarding
work to be performed and delivery of goods processed, finished and/or stored by
you.

 

 

[Remainder of page intentionally left
blank]

 

E-1

 

	
  Dated this          day of
                            ,
  20    .

  	
   

  
	
   

  	
   

  
	
   

  	
  BAILEE:

  
	
   

  	
  [Bailee]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  BAILEE’S ADDRESS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
				

 

I-2Exhibit 4.2

 

SUPPLEMENTAL
INDENTURE

 

Supplemental Indenture (this “Supplemental
Indenture”), dated as of February 1, 2005, among the Edgen
Corporation, a Nevada corporation (the “Company”), the parties
identified in the signature page of this Supplemental Indenture as a
Guaranteeing Subsidiary (each a “Guaranteeing Subsidiary”) of the
Company, and The Bank of New York, as trustee under the Indenture referred to
below (the “Trustee”).

 

W I T N E S S E T H

 

WHEREAS, Edgen Acquisition Corporation, a
Nevada corporation (the “Issuer,” except that upon effectiveness of the
Merger, “Issuer” shall mean the Company) has heretofore executed and
delivered to the Trustee an indenture (the “Indenture”), dated as of February 1,
2005, providing for the issuance of 97/8% Senior Secured
Notes due 2011 (the “Notes”);

 

WHEREAS, upon effectiveness of the Merger,
the Company assumed the Issuer’s obligations under the Indenture;

 

WHEREAS, Section 4.16 of the
Indenture provides that under certain circumstances each Guaranteeing Subsidiary
shall execute and deliver to the Trustee a supplemental indenture and a
Guarantee pursuant to which any newly-acquired or created Guarantor shall
unconditionally guarantee all of the Issuer’s obligations under the Notes and
the Indenture on the terms and conditions set forth therein and herein and in
such Guarantee; and

 

WHEREAS, pursuant to Section 9.1 of the
Indenture, the Trustee is authorized to execute and delivery this Supplemental
Indenture.

 

NOW THEREFORE, in consideration of the
foregoing and for other good and valuable consideration, the receipt of which
is hereby acknowledged, the Company, each Guaranteeing Subsidiary and the
Trustee mutually covenant and agree for the equal and ratable benefit of the
Holders of the Notes as follows:

 

1.                                       Capitalized
Terms.  Capitalized terms used herein
without definition shall have the meanings assigned to them in the Indenture.

 

2.                                       Joinder
to Indenture.  (a) The Company
hereby agrees to become bound by the terms, conditions and other provisions of
the Indenture with all attendant rights, duties and obligations of the Issuer
stated therein, with the same force and effect as if the Company had been the
initial issuer of the Notes, and in connection therewith expressly assumes the
due and punctual payment of the principal of, and premium, if any, interest and
Additional Interest, if any, on all of the Notes and the performance of every
covenant of the Notes, the Indenture and the Registration Rights Agreement on
the part of the Issuer to be performed or observed thereunder (other than the
second paragraph of the covenant regarding Conduct of Business set forth in Section 4.19
of the Indenture).

 

 

(b) Each of the Guaranteeing Subsidiaries hereby agrees to become
bound by the terms, conditions and other provisions of the Indenture with all
attendant rights, duties and obligations stated therein, with the same force
and effect as if originally named as a Guarantor therein and as if such
Guaranteeing Subsidiary executed the Indenture on the date thereof.

 

3.                                       Agreement
to Guarantee.  Each Guarantor hereby
fully, irrevocably and unconditionally, jointly and severally, unconditionally
and irrevocably guarantees (such guarantee, as amended or supplemented from
time to time, to be referred to herein as the “Guarantee”), to each of
the Holders, the Trustee and the Collateral Agent and their respective
successors and assigns that (i) the principal of, premium, if any and
interest and Additional Interest, if any, on the Notes shall be promptly paid
in full when due, subject to any applicable grace period, whether upon
redemption pursuant to the terms of the Notes, by acceleration or otherwise,
and interest on the overdue principal (including interest accruing at the then
applicable rate provided in the Indenture Documents after the occurrence of any
Event of Default set forth in Section 6.01(8) of the
Indenture, whether or not a claim for post-filing or post-petition interest is
allowed under applicable law following the institution of a proceeding under
bankruptcy, insolvency or similar laws), if any, and interest on any interest
and Additional Interest, if any, to the extent lawful, of the Notes and all
other obligations of the Company to the Holders, the Trustee and the Collateral
Agent hereunder, thereunder or under any Collateral Agreement shall be promptly
paid in full or performed, all in accordance with the terms hereof, thereof and
of the Collateral Agreements; and (ii) in case of any extension of time of
payment or renewal of any of the Notes or of any such other obligations, the
same shall be promptly paid in full when due or performed in accordance with
the terms of the extension or renewal, subject to any applicable grace period,
whether at stated maturity, by acceleration or otherwise, subject, however, in
the case of clauses (i) and (ii) above, to the
limitations set forth in Section 10.03 of the Indenture.

 

The obligations of each Guaranteeing Subsidiary to the Holders and to
the Trustee pursuant to this Supplemental Indenture and the Indenture are
expressly set forth in Article X of the Indenture and reference is hereby
made to such Indenture for the precise terms of the Guarantee.

 

No past, present or future director, officer, employee, incorporator,
agent, stockholder or Affiliate of the Company or a Guarantor, as such, shall
have any liability for any obligations of the Company or the Guarantors under
the Notes, the Guarantees, the Indenture or the Collateral Agreements or for
any claim based on, in respect of, such obligations or their creation.

 

The Guarantee executed and delivered hereby is a continuing Guarantee
and shall remain in full force and effect and shall be binding upon each
Guarantor and its successors and assigns until full and final payment of all of
the Company’s obligations under the Notes and Indenture or until released or
legally defeased in accordance with the Indenture and shall inure to the
benefit of the successors and assigns of the Trustee and the Holders, and, in
the event of any transfer or assignment of rights by any Holder or the Trustee,
the rights and privileges herein conferred upon that party shall automatically
extend to and be vested in such transferee or assignee, all subject to the
terms and conditions hereof.  This is a
Guarantee of payment and performance and not of collectibility.

 

 

The obligations of each Guaranteeing Subsidiary under its Subsidiary
Guarantee shall be limited to the extent necessary to insure that it does not
constitute a fraudulent conveyance under applicable law.

 

THE TERMS OF ARTICLE X OF THE INDENTURE ARE INCORPORATED HEREIN BY
REFERENCE.

 

4.                                       GOVERNING
LAW.  THIS SUPPLEMENTAL INDENTURE
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK, AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW
YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.  EACH OF THE PARTIES HERETO AGREES TO SUBMIT
TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE.

 

5.                                       Counterparts.  The parties may sign any number of copies of
this Supplemental Indenture.  Each signed
copy shall be an original, but all of them together represent the same
agreement.

 

6.                                       Effect
of Headings.  The Section headings
herein are for convenience only and shall not affect the construction hereof.

 

[signature page follows]

 

 

IN WITNESS WHEREOF, the parties hereto have
caused this Supplemental Indenture to be duly executed and attested, all as of
the date written below.

 

 

	
  Dated: February 1, 2005

  	
  EDGEN CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/
  David L. Laxton, III

  	
   

  
	
   

  	
   

  	
  Name: David L. Laxton, III

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President, Chief Financial
  Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GUARANTEEING SUBSIDIARIES:

  
	
   

  	
   

  
	
   

  	
  EDGEN LOUISIANA CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L. Laxton, III

  	
   

  
	
   

  	
   

  	
  Name: David L. Laxton, III

  
	
   

  	
   

  	
  Title: Treasurer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EDGEN CARBON PRODUCTS GROUP,
  L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  David L. Laxton, III

  	
   

  
	
   

  	
   

  	
  Name: David L. Laxton, III

  
	
   

  	
   

  	
  Title: Treasurer and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EDGEN ALLOY PRODUCTS GROUP,
  L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  David L. Laxton, III

  	
   

  
	
   

  	
   

  	
  Name: David L. Laxton, III

  
	
   

  	
   

  	
  Title: Treasurer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE TRUSTEE:

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Geovanni Barris

  	
   

  
	
   

  	
   

  	
  Name: Geovanni Barris

  
	
   

  	
   

  	
  Title: Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]