Document:

CHARLES G. BURKETT

RETIREMENT AGREEMENT

 

This Agreement is made by and between Charles G. Burkett ("Burkett" or "you") and First Horizon National Corporation, its predecessors, successors, assigns, subsidiaries, parents, affiliates, and their respective directors, officers, employees and agents, attorneys and representatives, past, present, and future ("the Company"). This arrangement is offered in recognition of your years of service with the Company and is accompanied with the Company's hope that it will assist you during the transition period that follows.

 

You acknowledge that you have had up to 21 days to evaluate this Agreement. After signing this Agreement, you have seven days during which you may revoke your decision. The evaluation period will end on the earlier of the date you sign this agreement or on April 27, 2011.

 

The Company and you agree as follows: 

 

	
            1.
 	
            Agreement:
 

 

Your signature at the conclusion of this document represents your knowing and voluntary acceptance of this Agreement. You acknowledge that you have not been pressured in any way to sign this Agreement and that you have executed it of your own free will. This Agreement should be returned to Salomon Mizrahi, 300 Court Avenue, Sixth Floor, Memphis, Tennessee 38103, after you have fully executed it.  By its execution of this Agreement, the Company acknowledges and confirms that the appropriate committee of its Board of Directors or other administrative body has approved of your early retirement as of December 31, 2011 for purposes of applying the benefits you are otherwise entitled to under applicable plans (including those referenced in Sections 2 and 8 of this Agreement) and that nothing herein  shall be considered in a manner which adversely affects any benefits, or the amount thereof, to
which you are or may otherwise be entitled under applicable plans.

 

	
            2.
 	
            Consideration by the Company:
 

 

In consideration of your agreement to retire, your release, and your other agreements as set forth in this Agreement, the Company will provide you with the benefits specified in this Section. You acknowledge that you are not otherwise entitled to the consideration provided in this Section.  In the event of your death prior to the payment of any of the amounts set forth in this Section, your entitlement to such consideration will not be adversely affected and any payments for which a beneficiary has not already been duly designated will be paid to your estate.

 

	
            (i)
 	
            Additional pension benefit payment
 

 

The Company’s Amended and Restated Pension Restoration Plan (as amended, the “Restoration Plan”) entitles you, as an early retiree, to a retirement benefit as defined in Section 4.1 of the Restoration Plan (herein, the “Basic Benefit”); and, 

 

additionally, permits the Company to pay you an additional benefit (herein, the “Additional Benefit”).  By this Agreement, the Company agrees to pay you, in addition to the Basic Benefit and your benefits provided for in the Company’s Pension Plan, an Additional Benefit in the form of a non-qualified pension benefit which waives the age discount for the purpose of calculating your total pension benefit.  This Additional Benefit will be paid in the same form (i.e., lump sum) as elected for your Basic Benefit and provides you a total pension benefit as if you had retired at age 65 except you will not receive any additional service credit beyond your actual years worked as a full-time employee of the Company.  To comply with Internal Revenue Code Section 409A, the payment of the Basic Benefit and the Additional Benefit will be delayed six (6) months after your retirement date (i.e., they will be
made on the first pay date after June 30, 2012).   The first payment of your benefits under the Company’s Pension Plan will be made in accordance with the provisions of the Company’s Pension Plan, based upon your election with respect to the receipt of benefits thereunder.  All payments will be subject to applicable tax withholding.

 

EQUITY AWARDS:  

Paragraphs (ii), (iii), (iv), and (v) below provide for the vesting and/or payment of certain awards at certain future times.  In each case, the benefit provided by this Agreement is limited to the Company’s waiver of the condition provided in such awards that your employment continue through the vesting or payment date, as applicable.  Other conditions to payment or vesting that may be provided in the terms of such awards, such as unfulfilled performance conditions or non-competition conditions, remain unchanged by this Agreement and continue in effect unless otherwise expressly provided in this Agreement. In particular, the change in control provisions of outstanding equity awards and related plans are not affected by this Agreement except as expressly provided below. As a result, you will not satisfy the “double trigger” requirement for acceleration of vesting or payment in many of those
awards since your employment will not be terminated as a result of a change in control event.  In all cases any gross amount of cash or shares payable to you will be reduced by applicable withholding taxes. Also, you will no longer be eligible for future equity award grants of any sort except in connection with mandatory deferral of 2011 bonus. 

 

	
            (ii)
 	
            Service-Vested Restricted Stock  
 

 

A total of 131,140 shares of unvested service-vested restricted stock will vest on your final retirement date of December 31, 2011.  This represents 100% of your currently outstanding unvested restricted shares.    

 

	
             
 	
            (iii)
 	
            Performance Stock Units (PSUs)        
 

 

 

The performance condition for your 2008 PSU award has not been met.  If it is met in 2011, you will receive payment of the award in accordance with its normal schedule provided in the award (i.e. the award will be paid in March 2012). If the performance condition is not met in 2011, this award will forfeit.

 

 

 

The amount of your 2009 PSU award is 81,181 units.  The performance condition for your 2009 PSU award has been met. Your 2009 PSU award, in that amount, will be paid in accordance with its normal schedule (i.e. 50% of the award will be paid in March 2012 and the second 50% of the award will be paid in March 2013). 

 

The maximum amount of your 2010 PSU award is reset to be 24,195 units.  The performance condition for your 2010 PSU award has been  modified for the Company’s 2010 stock offering, but, as modified, has not been met. The remaining performance period years are 2011, 2012, and 2013. If the applicable minimum performance condition is not met during those years, your 2010 PSU award will forfeit. If the applicable performance condition is met at least minimally as provided in the award, you will receive all or a portion of the award in accordance with the award’s modified performance grid, except that the payout percentage indicated by the grid will be applied to the reset amount rather than the original amount of the award. Any payment will be made in accordance with the normal payment schedule provided in the award (approximately three and four years after grant). 

 

The maximum amount of your 2011 PSU award is reset to be 13,770 units; the reset target amount therefore is two-thirds of that maximum amount, or 9,180 units.  The performance condition for your 2011 PSU award has not been met.  The performance period consists of the three years 2011 through 2013. If the applicable minimum performance condition is not met during the performance period, your 2011 PSU award will forfeit. If the applicable performance condition is met at least minimally as provided in the award, you will receive all or a portion of the award in accordance with the award’s performance grid, except that the payout percentage indicated by the grid will be applied to the reset target amount rather than the original target amount of the award. Any payment will be made in accordance with the normal payment schedule provided in that award (approximately three years after grant). 

 

If a change in control event (as defined in the applicable awards or related plan) occurs and the related transaction is consummated while the foregoing PSU awards remain outstanding and unpaid:  the 2008 PSUs will be forfeited; and, the remaining PSU awards, at the maximum amounts provided above, will be paid upon consummation of the change in control transaction. As to those post-2008 PSUs, the requirement for vesting and payment that you be discharged as a result of the change in control event will be waived. If the change in control transaction fails to be consummated for any reason, the PSUs will not be vested or paid under this paragraph even if a change in control event technically has occurred. 

 

	
             
 	
            (iv)
 	
            Cash Salary and Salary Stock Units (SSUs)
 

 

 

Your 2010 SSUs will be paid in accordance with their normal schedule (i.e., you will receive the balance of these in September 2011). These SSUs were not subject to forfeiture due to your departure and are not affected by this Agreement.

 

You will continue to be paid your current cash salary, and will be credited SSUs at your current crediting rate, for the remainder of 2011 through retirement at year-end. Your 2011 SSUs will be paid in accordance with their normal schedule  (i.e., SSUs 

 

credited in the first half of 2011 will be paid in July 2012 and the balance will be paid in December 2012).  

 

If a change in control event (as defined in the Company’s 2002 Management Incentive Plan) occurs and the transaction is consummated, payment of SSUs will not be accelerated except at the Company’s election. If they are not accelerated, they will be converted from units based on Company shares into units based on the consideration (cash and/or securities) for which Company shares are exchanged, or into which they are converted, in such transaction; any such conversion of the SSUs will be done by the Company so as to avoid, to the extent practicable, any enlargement or dilution of value measured at the consummation date.

 

	
             
 	
            (v)
 	
            2011 MIP Bonus
 

 

 

Your eligibility for an annual bonus for the 2011 plan year as provided under your bonus opportunity established in February 2011 under the 2002 Management Incentive Plan will not be cancelled or pro-rated. The amount (if any), form, and timing of payment of any such bonus will be determined in accordance with that Plan. The applicable terms and conditions include, among other things:  achievement of pre-established goals for 2011, including achievement under your personal plan; partial mandatory deferral of payment in the form of equity-based awards; application of the Company’s compensation recovery policy and other clawback policies and practices; and the possible exercise of negative discretion by the Compensation Committee.  Pursuant to this Agreement, the condition that you remain employed through the bonus payment date, and any further conditions that you remain employed through
the vesting or payment dates of any such equity awards, will be waived.  If a change in control event (as defined in the Company’s 2002 Management Incentive Plan or the plan under which any related equity awards are made) occurs and the transaction is consummated, the requirement in that Plan or plan that you be discharged as a result of the change in control event will be waived. 

 

	
             
 	
            (vi)
 	
            Severance Payment
 

 

 

You will receive a one-time cash payment in the gross amount of $742,650 on the last payday in 2011. This will be subject to ordinary payroll treatment and applicable tax withholding.

 

	
            3.
 	
            Retirement:
 

 

Effective the close of business June 30, 2011, you agree to retire from your positions:  as President-Banking of the Company and of First Tennessee Bank National Association (the “Bank”);  as a director and officer of any of their subsidiaries at which you are serving as director and/or officer; and as an executive officer within the meaning of the bylaws of the Company and its subsidiaries. After June 30, 2011 you will remain an employee and officer of the Company and of the Bank, having that title and those duties assigned by the Company’s and Bank’s Chief Executive Officer. You agree to retire from all employment with the Company and its subsidiaries effective December 31, 2011.  You agree to actively fulfill the duties of President-Banking through 

 

June 30, 2011, and to actively fulfill those duties assigned to you by the Chief Executive Officer through December 31, 2011.

 

	
            4.
 	
            Confidentiality and Non-Disclosure:
 

 

In order to protect the legitimate interests of the Company and its subsidiaries, you agree that you will not disclose to others at any time in the future, whether directly or indirectly, any information relating to the Company's business operations, plans or other confidential business information and/or trade secrets of the Company which you received or to which you were given access during your employment with the Company; provided, however, the obligations set forth in this sentence will expire on December 31, 2013 except as may be required by customer protection or other applicable laws and regulations.  If such information is required to be produced by law, court order or governmental authority, you must promptly notify the Company of that obligation.  You may not produce or disclose any such information until the Company has (a)
requested protection from the court or other legal or governmental authority issuing the process and the request has been denied or pending action on the request you subsequently have been ordered to produce or disclose such information, (b) consented in writing to such production or disclosure, or (c) taken no action to protect its interest within ten (10) business days (or such shorter period required by order of a court or other legal or governmental authority) after receipt of your notice. 

	
            5.
 	
            Release and Waiver:
 

 

In consideration for the payments and benefits described in Section 2 above and elsewhere in this Agreement, and for other good and valuable consideration, the receipt of which you acknowledge by your signature in the space provided below, but subject to the provisions of Section 7 of this Agreement, you do, for yourself, your heirs, personal representatives, agents and assigns, fully, absolutely, and unconditionally release, acquit and forever discharge the Company, and any and all of its predecessors, successors, assigns, subsidiaries, parents, affiliates, and their respective directors, officers, employees and agents, attorneys and representatives, past, present, and future, from any and all claims, losses, demands, liabilities, causes of action, fees (including attorney's fees), compensation, back pay and/or front pay, employment or re-employment and any other benefits, obligation or
liability of any kind, known or unknown, whether heretofore asserted or unasserted, including but not limited to all causes of action arising out of or in any way related to your employment by the Company, or your separation, whether arising out of or related to Title VII of the Civil Rights Act of 1964, as amended ("Title VII"); the Civil Rights Act of 1991; the Sarbanes-Oxley Act; the Americans with Disabilities Act of 1990; the Age Discrimination in Employment Act of 1967, as amended, (the "ADEA"), the Family and Medical Leave Act ("FMLA"), the Fair Labor Standards Act ("FLSA"), the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the Tennessee Human Rights Act, Tennessee Code Annotated section 4-21-101 et seq, and Tennessee Code Annotated 8-50-103 (Employment of the Handicapped), and any other federal or state, local, or city statute, code, ordinance, rule, regulation, or common law governing, controlling or otherwise dealing with employment, employment
discrimination or equal employment opportunity, unemployment compensation, employment termination, or otherwise all 

 

causes of action occurring from the beginning of time to the date of this Agreement; provided, however, that notwithstanding the foregoing, you do not release, discharge or waive any claims arising under or related to any obligation owed to you by the Company under this Agreement or any claims for compensation, benefits or entitlements that you have earned as an employee of the Company pursuant to any Company plan, policy, program, arrangement or other agreement not affected by this Agreement, including those benefits identified in the first two paragraphs of Section 8 of this Agreement.

 

Notwithstanding the foregoing or anything to the contrary contained in this Agreement, nothing herein is intended to or shall adversely affect any obligation the Company may have to indemnify you, hold you harmless or advance to you or pay expenses to the fullest extent permitted in accordance with the Company’s Bylaws or any individual indemnity agreement in place at the time of this Agreement, and it is agreed that nothing in this Agreement will be construed as a waiver by you of any such rights.

 

	
            6.
 	
            Non-Disparagement and Non-Competition
 

 

Non-Disparagement

 

The Company and  you jointly agree that neither will participate in, assist in, nor encourage any activity or efforts to damage the business or personal reputations of the other, and that neither will attempt to adversely affect the other’s relationships with employees, customers, business partners, or other individuals or entities.

 

Non-Competition / Non-Solicitation.

 

In return for the consideration provided herein by the Company, you agree that for a period of two (2) years following your retirement from the Company, you will not in any manner, directly or indirectly, compete with the Company or any and all of its subsidiaries, parents or affiliates by accepting employment from or having any other relationship with (including, without limitation, through owning, managing, operating, controlling or consulting) a competitor of the Company.    

 

You further agree that for a period of two (2) years following your retirement from the Company, you will not, either on your  own behalf or on behalf of any other person or entity, in any manner directly or indirectly solicit, hire or encourage any person who is then an employee of the Company to leave the employment of the Company.

You further agree that for a period of two (2) years following your retirement from the Company, you will not, either on your own behalf or on behalf of any other person or entity, in any manner directly or indirectly solicit or contact any person or entity who is a Customer of the Company at the time of such solicitation or contact, with the intent of providing one or more services to that Customer of a nature similar to services provided by the Company to Customers generally.  “Customer” refers to any person or entity with whom you had actual contact while employed by the Company, and also 

 

refers to any person or entity about whom you had knowledge by virtue of your employment with the Company beyond any such knowledge available to the general public.                  

 

You acknowledge and agree that the restrictions set forth in this Agreement are reasonable and necessary for the protection of the Company’s business and goodwill, and that you are being compensated under this Agreement for agreeing to such restrictions. 

 

	
            7.
 	
            Acknowledgment of OWBPA Compliance:
 

 

Because this Agreement includes a release and waiver as to claims under the Age Discrimination in Employment Act, your signature below acknowledges that it complies with the Older Workers Benefit Protection Act ("OWBPA") of 1990 and further acknowledges that you confirm, understand and agree to the terms and conditions of this Agreement; that these terms are written in lay persons terms, and that you have been fully advised of your right to seek the advice of an attorney, as well as tax advisors to review this Agreement. You acknowledge receiving not less than twenty one (21) calendar days in which to consider this Agreement to ensure that your execution of this Agreement is knowing and voluntary. In signing below, you expressly acknowledge that you have been afforded at least twenty-one (21) days to consider this Agreement and that your execution of same is with full knowledge of the
consequences thereof and is of your own free will. By signing on the date below, if less than twenty-one (21) days, you voluntarily elect to forgo waiting twenty-one (21) full days. You agree that any change, material or immaterial, to the terms of this Agreement does not restart the running of the twenty-one (21) day period.

 

	
            8.
 	
            Other Benefits; Stock Options; Change in Control Agreement:
 

 

Other than as provided below or elsewhere expressly in this Agreement, your right to benefits under all other plans of the Company is not affected by your signature to this Agreement.  This includes your qualifed pension benefit, Pension Restoration Plan benefit (before considering the Additional Benefit provided in paragraph 2(i) above), 401(k) benefit, executive survivor benefit, normal post-retirement medical benefits for executives, and any deferred compensation accounts. 

 

Your  stock options will not be altered by this Agreement. Your retirement qualifies as a “retirement” under the option awards prior to age 65. Accordingly, to the extent your outstanding options are not exercisable on your retirement date of December 31, 2011, they will be forfeited immediately at that time. To the extent your options are exercisable on or before your retirement date, they will not immediately forfeit but will expire, unless exercised, upon the earlier of the original expiration date or the third anniversary of your retirement date.  Your deferral stock options will expire the earlier of the original expiration date or the fifth anniversary of your retirement date.  As a consequence of the foregoing, your options granted before 2008 will avoid immediate forfeiture upon retirement, while your options granted in 2011 all will be forfeited upon your retirement.

 

 

 

You and the Company agree that your change in control severance agreement with the Company, including all amendments thereto, is cancelled and terminated effective immediately.  Moreover, you agree that effective immediately you will not be eligible to receive benefits, and will not be paid any benefits, under the Company’s Severance Pay Plan or any similar severance plan or program through which the Company or its subsidiaries offer or pay severance benefits to officers or employees in connection with a change in control event. 

 

	
            9.
 	
            Right of Revocation:
 

 

Your signature also acknowledges that, in compliance  with the OWBPA mentioned above, you have been fully advised by the Company of your right to revoke and nullify this release and Agreement, which right must be exercised if at all, within seven (7) days of the date of your signature. Any revocation of this agreement must be in writing, addressed to First Tennessee Bank, attention Salomon Mizrahi, Human Resources Division, 300 Court Avenue, Sixth Floor, Memphis, Tennessee 38103. The Company must be notified within the foregoing seven day period. This agreement will not become effective or enforceable until the expiration of the seven day period.  In the event the company enters a merger or other change-in-control agreement after you sign this release and Agreement, you will not be eligible for change-in-control severance benefits under your current change-in-control agreement.

 

	
            10
 	
            Remedies:
 

 

If you fail to comply with any covenant, agreement, or other obligation of this Agreement in any material respect and if such failure continues for thirty (30) days after the Company sends you notice which expressly states that you shall forfeit the consideration provided to you under Section 2(i), (ii), (iii), (iv), (v) and (vi) of this Agreement if such failure is not corrected, then the consideration provided to you under Section 2(i), (ii), (iii), (iv), (v) and (vi) of this Agreement shall be cancelled and forfeited, and you will be responsible for repayment of all cash, shares, and other amounts previously paid to you pursuant to Section 2(i), (ii), (iii), (iv), (v) and (vi) of this Agreement; notwithstanding the foregoing, the consideration provided under Section 2(iv) shall not be forfeited, cancelled, or subject to repayment if such failure occurs after December 31, 2011.  If,
however, such failure occurs and during such 30 days you halt the failure and within ten (10) days thereafter send notice to the Company of your actions taken to accomplish the halt, then the Company’s sole remedy for your breach shall be its actual damages, including costs as provided below if the Company brings an action and prevails. For this purpose:  notice to you will be deemed sent to you if the Company provides actual notice to you by any means or if the Company mails notice to you at your last known address used for pension, compensation, or other employment-related communications; and, notice to the Company will be deemed sent to the Company if actually provided to the Company’s Chief Executive Officer by any means or if mailed to that officer at the Company’s headquarters mailing address, which currently is 165 Madison Avenue, 23rd Floor, Memphis, TN 38103.

 

If you breach or threaten to breach any obligation in this Agreement, the Company may obtain specific performance and/or injunctive relief against you to 

 

prevent such continued or threatened breach, in addition to any other remedies available to it under the law.  This remedy shall not be available in the situation provided above in which this Agreement expressly provides that the Company’s sole remedy is to seek actual damages.

 

If a court of competent jurisdiction determines a prevailing party in any litigation or other court proceeding related to this Agreement, the non-prevailing party agrees to pay all court costs and reasonable attorneys’ fees and costs of the prevailing party related to such litigation or other court proceeding.

 

	
            11
 	
            Return of Documents:
 

 

By your signature, you acknowledge and confirm that you will return to the Company any and all documents belonging to it, as well as any other property which belongs to it, and that no such documents or materials or property will be retained by you after your retirement.

 

	
            12.
 	
            Binding Effect:
 

 

Upon your signing this Agreement, and after the expiration of seven (7) days, it will become effective and is binding upon you and the Company and their respective successors, assigns, heirs and personal representatives, as is discussed in Section 4 above.

 

	
            13.
 	
            Severability:
 

 

A finding that any provision of this Agreement is void or unenforceable shall not affect the validity or enforceability of any other provisions of this Agreement.

 

	
            14.
 	
            Drafting:
 

 

This Agreement is a product of negotiations between the parties and in construing the provisions of this Agreement, no inference or presumption shall be drawn against either party on the basis of which party or their attorneys drafted this Agreement.

 

	
            15.
 	
            Captions:
 

 

The captions to the various Sections of this Agreement are for convenience only and are not part of this Agreement.

 

	
            16.
 	
            Sole Agreement:
 

 

By your signature, you also confirm that the only consideration for your signing this Agreement are the terms set forth within it, and that no other promise or agreement of any kind has been made to you by the Company or anyone acting by, for, or on its behalf.

 

 

 

YOU ALSO AFFIRM THAT YOU HAVE BEEN FREE TO DISCUSS THIS MATTER PRIVATELY AND THOROUGHLY WITH A FINANCIAL COUNSELOR AND AN ATTORNEY OF YOUR CHOICE AND THAT YOU FULLY UNDERSTAND THE MEANING AND INTENT OF THIS AGREEMENT, INCLUDING, BUT NOT LIMITED TO, ITS FINAL AND BINDING EFFECT.

 

This Agreement covers in detail each and every element of the retirement agreement agreed upon between you and the Company. Your signature in the space provided below will confirm that you have had an unhurried opportunity to carefully read and review this Agreement and seek advice with respect to its content, and that you fully understand its meaning in all respects.

 

This Agreement may be enforced by the parties in any state or federal court of competent jurisdiction.

 

I HAVE READ THE FOREGOING AGREEMENT, HAVE HAD A REASONABLE AND ADEQUATE OPPORTUNITY TO REVIEW IT, AND FULLY UNDERSTAND AND VOLUNTARILY SIGN THE SAME.

 

 

	
            /s/ Charles G. Burkett
 	
            April 27, 2011
 

 

	
            Charles G. Burkett
 	
            Date
 

 

 

Witnessed by:

	
            [NOTARY SEAL
 
	
             
	
            STAMP]
 	
             

			

/s/ Jeanette Jones

	
             
	
            Subscribed and sworn to before me in my
 
	
            Notary of the State of Tennessee
 	
            Presence, this 27th day of April
 	
             

	
             
	
            2011, a Notary Public in and for the
 	
             

	
             
	
            County of Shelby State of TN
 	
             

	
             
	
            /s/ Jeanette Jones
 	
             

	
             
	
            (signature)
 	
            Notary Public
 	
             

	
             
	
            My commission expires _______, _____
 	
             

	
             
	
            My Commission Expires:
 	
             

	
             
	
            October 10, 2012
 	
             

														

First Horizon National Corporation

 

 

	
            /s/ John Daniel
 	
            April 27, 2011
 

By:                 

	
            John Daniel
 	
            Date
 
	
            Executive Vice President and
 	
             

			

Chief Human Resources Officerexv4w1

 

Exhibit 4.1

EXECUTION VERSION

 

AVIV HEALTHCARE PROPERTIES LIMITED PARTNERSHIP

and

AVIV HEALTHCARE CAPITAL CORPORATION,

as Issuers,

AVIV REIT, INC.,

as Parent and a Guarantor,

the other GUARANTORS named herein,

as Guarantors,

and

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

as Trustee

 

INDENTURE

 

Dated as of February 4, 2011

73/4% Senior Notes due 2019

 

 

 

CROSS-REFERENCE TABLE

	 	 	 	 	 
	Trust Indenture Act	 	 	 	Indenture
	Section	 	 	 	Section
	310(a)(1)

	 	 	 	7.10 
	(a)(2)

	 	 	 	7.10 
	(a)(3)

	 	 	 	N.A.
	(a)(4)

	 	 	 	N.A.
	(a)(5)

	 	 	 	7.10 
	(b)

	 	 	 	7.08; 7.10; 12.02 
	311(a)

	 	 	 	7.11 
	(b)

	 	 	 	7.11 
	312(a)

	 	 	 	2.05 
	(b)

	 	 	 	12.03 
	(c)

	 	 	 	12.03 
	313(a)

	 	 	 	7.06 
	(b)(1)

	 	 	 	7.06 
	(b)(2)

	 	 	 	7.06 
	(c)

	 	 	 	7.06; 12.02
	(d)

	 	 	 	7.06 
	314(a)

	 	 	 	4.05; 4.15; 12.02 
	(b)

	 	 	 	N.A.
	(c)(1)

	 	 	 	7.02; 12.04; 12.05 
	(c)(2)

	 	 	 	7.02; 12.04; 12.05 
	(c)(3)

	 	 	 	N.A.
	(d)

	 	 	 	N.A.
	(e)

	 	 	 	12.05 
	(f)

	 	 	 	N.A.
	315(a)

	 	 	 	7.01(b); 7.02(a) 
	(b)

	 	 	 	7.05; 12.02 
	(c)

	 	 	 	7.01 
	(d)

	 	 	 	6.05; 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)

	 	 	 	12.01 
	(c)

	 	 	 	12.01 

 

			
	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

	 	 	 	 	 
	 	 	Page
	ARTICLE ONE
	 	 	 	 
	 
	 	 	 	 
	DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01. Definitions
	 	 	1	 
	SECTION 1.02. Other Definitions
	 	 	33	 
	SECTION 1.03. Incorporation by Reference of Trust Indenture Act
	 	 	33	 
	SECTION 1.04. Rules of Construction
	 	 	33	 
	 
	 	 	 	 
	ARTICLE TWO
	 	 	 	 
	 
	 	 	 	 
	THE NOTES
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01. Form and Dating
	 	 	34	 
	SECTION 2.02. Execution, Authentication and Denomination; Additional Notes; Exchange
Securities
	 	 	36	 
	SECTION 2.03. Registrar and Paying Agent
	 	 	37	 
	SECTION 2.04. Paying Agent To Hold Assets in Trust
	 	 	37	 
	SECTION 2.05. Holder Lists
	 	 	38	 
	SECTION 2.06. Transfer and Exchange
	 	 	38	 
	SECTION 2.07. Replacement Notes
	 	 	38	 
	SECTION 2.08. Outstanding Notes
	 	 	39	 
	SECTION 2.09. Treasury Notes
	 	 	39	 
	SECTION 2.10. Temporary Notes
	 	 	39	 
	SECTION 2.11. Cancellation
	 	 	40	 
	SECTION 2.12. Defaulted Interest
	 	 	40	 
	SECTION 2.13. CUSIP and ISIN Numbers
	 	 	40	 
	SECTION 2.14. [Reserved]
	 	 	40	 
	SECTION 2.15. Book-Entry Provisions for Global Notes
	 	 	40	 
	SECTION 2.16. Special Transfer and Exchange Provisions
	 	 	42	 
	 
	 	 	 	 
	ARTICLE THREE
	 	 	 	 
	 
	 	 	 	 
	REDEMPTION
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01. Notices to Trustee
	 	 	45	 
	SECTION 3.02. Selection of Notes To Be Redeemed
	 	 	45	 
	SECTION 3.03. Notice of Redemption
	 	 	46	 
	SECTION 3.04. Effect of Notice of Redemption
	 	 	47	 
	SECTION 3.05. Deposit of Redemption Price
	 	 	47	 
	SECTION 3.06. Notes Redeemed in Part
	 	 	48	 
	SECTION 3.07. Mandatory Redemption
	 	 	48	 
	SECTION 3.08. Issuers Shall Be Entitled to Acquire Notes
	 	 	48	 

i

 

 

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	ARTICLE FOUR
	 	 	 	 
	 
	 	 	 	 
	COVENANTS
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01. Payment of Notes
	 	 	48	 
	SECTION 4.02. Maintenance of Office or Agency
	 	 	48	 
	SECTION 4.03. Corporate Existence
	 	 	49	 
	SECTION 4.04. [Reserved]
	 	 	49	 
	SECTION 4.05. Compliance Certificate; Notice of Default
	 	 	49	 
	SECTION 4.06. Waiver of Stay, Extension or Usury Laws
	 	 	50	 
	SECTION 4.07. Change of Control
	 	 	50	 
	SECTION 4.08. Limitation on Indebtedness
	 	 	50	 
	SECTION 4.09. Limitation on Restricted Payments
	 	 	55	 
	SECTION 4.10. Maintenance of Total Unencumbered Assets
	 	 	60	 
	SECTION 4.11. Limitation on Asset Sales
	 	 	60	 
	SECTION 4.12. Limitation on Transactions with Affiliates
	 	 	62	 
	SECTION 4.13. Limitation on Dividend and Other Payment Restrictions Affecting Restricted
Subsidiaries
	 	 	64	 
	SECTION 4.14. Future Guaranties by Restricted Subsidiaries
	 	 	66	 
	SECTION 4.15. Reports to Holders
	 	 	68	 
	SECTION 4.16. Prohibition on Incurrence of Senior Debt by the Subordinated Subsidiary
Guarantors
	 	 	69	 
	SECTION 4.17. Suspension of Covenants
	 	 	69	 
	 
	 	 	 	 
	ARTICLE FIVE
	 	 	 	 
	 
	 	 	 	 
	SUCCESSOR CORPORATION
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.01. Consolidation, Merger and Sale of Assets
	 	 	70	 
	 
	 	 	 	 
	ARTICLE SIX
	 	 	 	 
	 
	 	 	 	 
	DEFAULT AND REMEDIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.01. Events of Default
	 	 	73	 
	SECTION 6.02. Acceleration
	 	 	74	 
	SECTION 6.03. Other Remedies
	 	 	75	 
	SECTION 6.04. Waiver of Past Defaults
	 	 	75	 
	SECTION 6.05. Control by Majority
	 	 	76	 
	SECTION 6.06. Limitation on Suits
	 	 	76	 
	SECTION 6.07. Rights of Holders To Receive Payment
	 	 	76	 
	SECTION 6.08. Collection Suit by Trustee
	 	 	77	 
	SECTION 6.09. Trustee May File Proofs of Claim
	 	 	77	 
	SECTION 6.10. Priorities
	 	 	77	 
	SECTION 6.11. Undertaking for Costs
	 	 	78	 
	SECTION 6.12. Restoration of Rights and Remedies
	 	 	78	 

 

 

	 	 	 	 	 
	 	 	Page
	ARTICLE SEVEN
	 	 	 	 
	 
	 	 	 	 
	TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	SECTION 7.01. Duties of Trustee
	 	 	78	 
	SECTION 7.02. Rights of Trustee
	 	 	79	 
	SECTION 7.03. Individual Rights of Trustee
	 	 	81	 
	SECTION 7.04. Trustee’s Disclaimer
	 	 	81	 
	SECTION 7.05. Notice of Default
	 	 	81	 
	SECTION 7.06. Reports by Trustee to Holders
	 	 	81	 
	SECTION 7.07. Compensation and Indemnity
	 	 	82	 
	SECTION 7.08. Replacement of Trustee
	 	 	83	 
	SECTION 7.09. Successor Trustee by Merger, Etc.
	 	 	84	 
	SECTION 7.10. Eligibility; Disqualification
	 	 	84	 
	SECTION 7.11. Preferential Collection of Claims Against the Issuers
	 	 	84	 
	 
	 	 	 	 
	ARTICLE EIGHT
	 	 	 	 
	 
	 	 	 	 
	DISCHARGE OF INDENTURE; DEFEASANCE
	 	 	 	 
	 
	 	 	 	 
	SECTION 8.01. Termination of the Issuers’ Obligations
	 	 	84	 
	SECTION 8.02. Legal Defeasance and Covenant Defeasance
	 	 	85	 
	SECTION 8.03. Conditions to Legal Defeasance or Covenant Defeasance
	 	 	87	 
	SECTION 8.04. Application of Trust Money
	 	 	88	 
	SECTION 8.05. Repayment to the Issuers
	 	 	88	 
	SECTION 8.06. Reinstatement
	 	 	89	 
	 
	 	 	 	 
	ARTICLE NINE
	 	 	 	 
	 
	 	 	 	 
	AMENDMENTS, SUPPLEMENTS AND WAIVERS
	 	 	 	 
	 
	 	 	 	 
	SECTION 9.01. Without Consent of Holders
	 	 	89	 
	SECTION 9.02. With Consent of Holders
	 	 	90	 
	SECTION 9.03. Compliance with the Trust Indenture Act
	 	 	92	 
	SECTION 9.04. Revocation and Effect of Consents
	 	 	92	 
	SECTION 9.05. Notation on or Exchange of Notes
	 	 	92	 
	SECTION 9.06. Trustee To Sign Amendments, Etc.
	 	 	93	 
	 
	 	 	 	 
	ARTICLE TEN
	 	 	 	 
	 
	 	 	 	 
	GUARANTIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 10.01. Guaranties
	 	 	93	 
	SECTION 10.02. Limitation on Liability
	 	 	95	 
	SECTION 10.03. Successors and Assigns
	 	 	95	 
	SECTION 10.04. No Waiver
	 	 	95	 
	SECTION 10.05. Modification
	 	 	95	 

 

 

	 	 	 	 	 
	 	 	Page
	SECTION 10.06. Release of Subsidiary Guarantor
	 	 	95	 
	SECTION 10.07. Contribution
	 	 	96	 
	 
	 	 	 	 
	ARTICLE ELEVEN
	 	 	 	 
	 
	 	 	 	 
	SUBORDINATION OF CERTAIN SUBSIDIARY GUARANTIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 11.01. Definitions
	 	 	96	 
	SECTION 11.02. General
	 	 	99	 
	SECTION 11.03. Permitted Payments
	 	 	99	 
	SECTION 11.04. No Agency
	 	 	99	 
	SECTION 11.05. Suspension of Remedies of Subordinated Creditors
	 	 	99	 
	SECTION 11.06. Matters Relating to Liens
	 	 	100	 
	SECTION 11.07. Payments Notwithstanding
	 	 	101	 
	SECTION 11.08. No Prejudice or Impairment
	 	 	101	 
	SECTION 11.09. Turnover of Payments
	 	 	102	 
	SECTION 11.10. Waivers and Agreements of the Subordinated Creditor
	 	 	102	 
	SECTION 11.11. Separate Classes of Obligations
	 	 	102	 
	SECTION 11.12. Bankruptcy
	 	 	103	 
	SECTION 11.13. Sale of Assets
	 	 	104	 
	SECTION 11.14. Benefit of Article Eleven
	 	 	105	 
	SECTION 11.15. Acknowledgment Regarding Senior Creditor
	 	 	105	 
	SECTION 11.16. Amendment; Amendment to Subordinated Loan Documents; Amendments to Senior Loan
Documents
	 	 	105	 
	SECTION 11.17. Rights of Trustee and Paying Agent
	 	 	106	 
	SECTION 11.18. Distribution or Notice to Senior Agent
	 	 	106	 
	SECTION 11.19. Article Eleven Not To Prevent Events of Default
	 	 	106	 
	SECTION 11.20. Trustee Entitled To Rely
	 	 	106	 
	SECTION 11.21. Trustee To Effectuate Subordination
	 	 	106	 
	SECTION 11.22. Trustee Not Fiduciary for Holders of Designated Senior Debt of Subsidiary
Guarantor
	 	 	107	 
	SECTION 11.23. Reliance by Holders of Designated Senior Debt of Subordinated Subsidiary
Guarantors on Subordination Provisions
	 	 	107	 
	 
	 	 	 	 
	ARTICLE TWELVE
	 	 	 	 
	 
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	SECTION 12.01. Trust Indenture Act Controls
	 	 	107	 
	SECTION 12.02. Notices
	 	 	107	 
	SECTION 12.03. Communications by Holders with Other Holders
	 	 	109	 
	SECTION 12.04. Certificate and Opinion as to Conditions Precedent
	 	 	109	 
	SECTION 12.05. Statements Required in Certificate or Opinion
	 	 	109	 
	SECTION 12.06. Rules by Paying Agent or Registrar
	 	 	110	 
	SECTION 12.07. Legal Holidays
	 	 	110	 
	SECTION 12.08. Governing Law; Waiver of Jury Trial
	 	 	110	 
	SECTION 12.09. No Adverse Interpretation of Other Agreements
	 	 	110	 

 

 

	 	 	 	 	 
	 	 	Page
	SECTION 12.10. No Recourse Against Others
	 	 	110	 
	SECTION 12.11. Successors
	 	 	111	 
	SECTION 12.12. Duplicate Originals
	 	 	111	 
	SECTION 12.13. Severability
	 	 	111	 
	SECTION 12.14. U.S.A. Patriot Act
	 	 	111	 
	SECTION 12.15. Force Majeure
	 	 	111	 
	 
	 	 	 	 
	SIGNATURES
	 	 	S-1	 
	 
	 	 	 	 
	Exhibit A  —  Form of Note
	 	 	A-1	 
	Exhibit B  —  Form of Legends
	 	 	B-1	 
	Exhibit C  —  Form of Certificate To Be Delivered in Connection with Transfers Pursuant
to Regulation S
	 	 	C-1	 

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

 

 

     INDENTURE dated as of February 4, 2011, among Aviv Healthcare
Properties Limited Partnership, a Delaware limited partnership, and Aviv
Healthcare Capital Corporation, a Delaware corporation (each, an
“Issuer”, and together, the “Issuers”), Aviv REIT, Inc., a
Maryland corporation (the “Parent”), as Guarantor, each of the
other Guarantors named herein, as Guarantors, and The Bank of New York
Mellon Trust Company, N.A., a national banking association organized and
existing under the laws of the United States of America, as Trustee (the
“Trustee”).

          The Issuers have duly authorized the creation of an issue of 73/4% Senior Notes due 2019 and, to
provide therefor, the Issuers, the Parent and the other Guarantors have duly authorized the
execution and delivery of this Indenture. All things necessary to make the Notes, when duly issued
and executed by the Issuers and authenticated and delivered hereunder, the valid and binding
obligations of the Issuers and to make this Indenture a valid and binding agreement of the Issuers
and the Guarantors have been done.

THIS INDENTURE WITNESSETH

          For and in consideration of the premises and the purchase of the Notes by the Holders thereof,
the parties hereto covenant and agree, for the equal and proportionate benefit of all Holders, as
follows:

ARTICLE ONE

Definitions and Incorporation by Reference

          SECTION 1.01. Definitions. Set forth below are certain defined terms used in this Indenture.

          “Acquired Indebtedness” means Indebtedness of a Person existing at the time such
Person becomes a Restricted Subsidiary or that is assumed in connection with an Asset Acquisition
from such Person by a Restricted Subsidiary and not incurred by such Person in connection with, or
in anticipation of, such Person becoming a Restricted Subsidiary or such Asset Acquisition;
provided, however, that Indebtedness of such Person that is redeemed, defeased, retired or
otherwise repaid at the time of or immediately upon consummation of the transactions by which such
Person becomes a Restricted Subsidiary or such Asset Acquisition shall not be Acquired
Indebtedness.

          “Acquisition Line” means the $100 million revolving credit line under a credit
agreement dated as of September 17, 2010, among Aviv Financing I, L.L.C., as the parent borrower,
the other borrowers named therein, General Electric Capital Corporation, as administrative agent
and a lender, and the other lenders named therein.

          “Adjusted Consolidated EBITDA” means, for any period, Adjusted Consolidated Net Income
for such period plus, to the extent such amount was deducted in

 

2

calculating such Adjusted Consolidated Net Income (without duplication):

     (1) Consolidated Interest Expense;

     (2) provision for taxes based on income or profits or capital gains, including
federal, state, provincial, franchise, excise and similar taxes and foreign withholding
taxes;

     (3) depreciation and amortization (including amortization or impairment write-offs of
goodwill and other intangibles but excluding amortization of prepaid cash expenses that
were paid in a prior period);

     (4) the amount of integration costs deducted (and not added back) in such period in
computing Adjusted Consolidated Net Income, including any one-time direct transaction or
restructuring costs incurred in connection with acquisitions, not to exceed for any period
10% of Adjusted Consolidated EBITDA (calculated on a pro forma basis for any relevant
transaction giving rise to the calculation of Adjusted Consolidated EBITDA but before
giving effect to the costs described in this clause (4));

     (5) proceeds from any business interruption insurance;

     (6) any non-cash compensation expense attributable to grants of stock options,
restricted stock or similar rights to officers, directors and employees of the Parent and
any of its Subsidiaries;

     (7) all extraordinary or non-recurring non-cash gain or loss or expense, together with
any related provision for taxes; and

     (8) all other non-cash items (other than deferred rental loss) reducing Adjusted
Consolidated Net Income (other than items that will require cash payments and for which an
accrual or reserve is, or is required by GAAP to be, made), including any impairment charge
or asset write-offs or write-downs related to intangible assets (including goodwill) and
long-lived assets pursuant to GAAP, less all non-cash items (other than deferred rental
income) increasing Adjusted Consolidated Net Income, all as determined on a consolidated
basis for the Parent and its Restricted Subsidiaries in conformity with GAAP.

Notwithstanding the preceding, the income taxes of, and the depreciation and amortization and other
non-cash items of, a Subsidiary shall be added (or subtracted) to Adjusted Consolidated Net Income
to compute Adjusted Consolidated EBITDA only to the extent (and in the same proportion) that net
income of such Subsidiary was included in calculating Adjusted Consolidated Net Income.

 

3

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

          “Adjusted Consolidated Net Income” means, for any period, the aggregate net income (or
loss) (before giving effect to cash dividends on preferred stock of the Parent or charges resulting
from the redemption of preferred stock of the Parent) of the Parent and its Restricted Subsidiaries
for such period determined on a consolidated basis in conformity with GAAP; provided, however, that
the following items shall be excluded in computing Adjusted Consolidated Net Income, without
duplication:

     (1) the net income of any Person, other than the Parent or a Restricted Subsidiary,
except to the extent of the amount of dividends or other distributions actually paid in
cash (or to the extent converted into cash) or Temporary Cash Investments to the Parent or
any of its Restricted Subsidiaries by such Person during such period;

     (2) the net income of any Restricted Subsidiary to the extent that the declaration or
payment of dividends or similar distributions by such Restricted Subsidiary of such net
income is not at the time permitted by the operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or governmental regulation
applicable to such Restricted Subsidiary, unless such restrictions with respect to the
declaration and payment of dividends or distributions have been properly waived for such
entire period; provided, however, that Adjusted Consolidated Net Income will be increased
by the amount of dividends or other distributions or other payments made in cash (or to the
extent converted into cash) or Temporary Cash Investments to the Parent or a Restricted
Subsidiary thereof in respect of such period, to the extent not already included therein;

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

     (4) costs associated with initiating public company reporting, including compliance
with the Sarbanes-Oxley Act of 2002, not to exceed an aggregate of $5,000,000;

     (5) any after-tax gains or losses attributable to Asset Sales; and

     (6) all extraordinary gains and extraordinary losses.

 

4

          “Adjusted Funds From Operations” for any period means Adjusted Consolidated Net Income
for such period, plus depreciation and amortization of real property (including furniture and
equipment) and other real estate assets and excluding (to the extent such amount was added or
deducted, as applicable, in calculating such Adjusted Consolidated Net Income):

     (1) gains or losses from (a) the restructuring or refinancing of Indebtedness or (b)
sales of properties;

     (2) non-cash asset impairment charges;

     (3) non-cash charges related to redemptions of Preferred Stock of the Parent;

     (4) any non-cash compensation expense attributable to grants of stock options,
restricted stock or similar rights to officers, directors and employees of the Parent and
any of its Subsidiaries;

     (5) the amortization of financing fees and the write-off of financing costs;

     (6) deferred rental income (loss); and

     (7) any other non-cash charges associated with the sale or settlement of any Interest
Rate Agreement or other hedging or derivative instruments.

          “Adjusted Total Assets” means, for any Person, the sum of:

     (1) Total Assets for such Person as of the end of the fiscal quarter preceding the
Transaction Date; and

     (2) any increase in Total Assets following the end of such quarter determined on a pro
forma basis, including any pro forma increase in Total Assets resulting from the
application of the proceeds of any additional Indebtedness.

          “Adjusted Treasury Rate” means, with respect to any redemption date, (1) the yield,
under the heading which represents the average for the immediately preceding week, appearing in the
most recently published statistical release designated “H.15(519)” or any successor publication
which is published weekly by the Board of Governors of the Federal Reserve System and which
establishes yields on actively traded United States Treasury securities adjusted to constant
maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the
Comparable Treasury Issue (if no maturity is within three months before or after February 15, 2015,
yields for the two published maturities most closely corresponding to the Comparable Treasury Issue
shall be determined and the Adjusted Treasury Rate shall be interpolated or extrapolated from

 

5

such yields on a straight line basis, rounding to the nearest month) or (2) if such release
(or any successor release) is not published during the week preceding the calculation date or does
not contain such yields, the rate per year equal to the semi-annual equivalent yield to maturity of
the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date, in each case calculated by the Issuers on the
third Business Day immediately preceding the redemption date, in each case, plus 0.50%.

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

          “Agent” means any Registrar or Paying Agent.

          “Applicable Premium” means with respect to a Note at any redemption date, the greater
of (1) 1.00% of the principal amount of such Note and (2) the excess of (A) the present value at
such redemption date of (i) the redemption price of such Note on February 15, 2015 plus (ii) all
required remaining scheduled interest payments due on such Note through February 15, 2015 (but
excluding accrued and unpaid interest to the redemption date), computed using a discount rate equal
to the Adjusted Treasury Rate, over (B) the principal amount of such Note on such redemption date.

          “Asset Acquisition” means:

     (1) an investment by the Parent or any of its Restricted Subsidiaries in any other
Person pursuant to which such Person shall become a Restricted Subsidiary or shall be
merged into or consolidated with the Parent or any of its Restricted Subsidiaries;
provided, however, that such Person’s primary business is related, ancillary, incidental or
complementary to the businesses of the Issuers or any of their Restricted Subsidiaries on
the date of such investment; or

     (2) an acquisition by the Parent or any of its Restricted Subsidiaries from any other
Person of assets that constitute all or substantially all of a division or line of
business, or one or more properties, of such Person; provided, however, that the assets and
properties acquired are related, ancillary, incidental or complementary to the businesses
of the Issuers or any of their Restricted Subsidiaries on the date of such acquisition.

          “Asset Disposition” means the sale or other disposition by the Parent or any of its
Restricted Subsidiaries, other than to the Parent, the Issuers or another Restricted Subsidiary,
of:

 

6

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

     (2) all or substantially all of the assets that constitute a division or line of
business, or one or more properties, of the Parent or any of its Restricted Subsidiaries.

          “Asset Sale” means any sale, transfer or other disposition, including by way of
merger, consolidation or Sale and Leaseback Transaction, in one transaction or a series of related
transactions by the Parent or any of its Restricted Subsidiaries to any Person other than the
Parent, the Issuers or any of their Restricted Subsidiaries of:

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

     (2) all or substantially all of the assets that constitute a division or line of
business of the Parent or any of its Restricted Subsidiaries; or

     (3) any property and assets of the Parent or any of its Restricted Subsidiaries
outside the ordinary course of business of the Parent or such Restricted Subsidiary and, in
each case, that is not governed by the provisions of Section 5.01;

provided, however, that “Asset Sale” shall not include:

     (1) the lease or sublease of any Real Estate Asset;

     (2) sales, leases, assignments, licenses, sublicenses, subleases or other dispositions
of inventory, receivables and other current assets;

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

     (4) the license or sublicense of intellectual property or other general intangibles;

     (5) the issuance of Capital Stock by a Restricted Subsidiary in which the percentage
interest (direct and indirect) in the Capital Stock of such Restricted Subsidiary owned by
the Parent after giving effect to such issuance is at least equal to the percentage
interest prior to such issuance;

     (6) any issuance of Capital Stock (other than Disqualified Stock) by the Parent or the
Issuers in order to acquire assets used or useful in a Permitted Business;

 

7

     (7) the surrender or waiver of contract rights or the settlement, release or surrender
of a contract, tort or other litigation claim in the ordinary course of business;

     (8) any Restricted Payment permitted by Section 4.09 or that constitutes a Permitted
Investment;

     (9) sales, transfers or other dispositions of assets with a fair market value not in
excess of $5,000,000 in any transaction or series of related transactions;

     (10) sales or other dispositions of assets for consideration at least equal to the
fair market value of the assets sold or disposed of, to the extent that the consideration
received would satisfy Section 4.11(c)(2);

     (11) sales or other dispositions of cash or Temporary Cash Investments;

     (12) the creation, granting, perfection or realization of any Lien permitted under
this Indenture;

     (13) the lease, assignment or sublease of property in the ordinary course of business
so long as the same does not materially interfere with the business of the Parent and its
Restricted Subsidiaries, taken as a whole;

     (14) any transfer or other disposition constituting a taking, seizure, condemnation or
other eminent domain proceedings; and

     (15) sales, exchanges, transfers or other dispositions of damaged, worn-out or
obsolete or otherwise unsuitable or unnecessary equipment or assets that, in the Parent’s
reasonable judgment, are no longer used or useful in the business of the Parent or its
Restricted Subsidiaries and any sale or disposition of property in connection with
scheduled turnarounds, maintenance and equipment and facility updates.

          “Attributable Debt” in respect of a Sale and Leaseback Transaction means, at the time
of determination, the present value of the total obligations of the lessee for net rental payments
during the remaining term of the lease included in such Sale and Leaseback Transaction. For
purposes hereof such present value shall be calculated using a discount rate equal to the rate of
interest implicit in such Sale and Leaseback Transaction, determined by the lessee in good faith on
a basis consistent with comparable determinations of Capitalized Lease Obligations under GAAP;
provided, however, that if such sale and leaseback transaction results in a Capitalized Lease
Obligation, the amount of Indebtedness represented thereby will be determined in accordance with
the definition of “Capitalized Lease Obligations.”

 

8

          “Average Life” means at any date of determination with respect to any debt security,
the quotient obtained by dividing:

     (1) the sum of the products of:

	 	(x)	 	the number of years from such date of
determination to the dates of each successive scheduled principal
payment of such debt security, and
	 
	 	(y)	 	the amount of such principal payment; by

     (2) the sum of all such principal payments.

     “Bankruptcy Law” means Title 11 of the United States Code, as amended, or any
insolvency or other similar Federal or state law for the relief of debtors.

     “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, and
delivered to the Trustee.

     “Business Day” means a day other than a Saturday, Sunday or any other day on which
banking institutions in New York City are authorized or required by law, regulation or executive
order to close.

     “Capital Stock” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated, whether voting or non-voting), including
partnership or limited liability company interests, whether general or limited, and including
options, warrants and other rights to purchase such shares, interests, participations or other
equivalents, in the equity of such Person, whether outstanding on the Issue Date or issued
thereafter, including all Common Stock and Preferred Stock.

     “Capitalized Lease” means, as applied to any Person, any lease of any property,
whether real, personal or mixed, of which the discounted present value of the rental obligations of
such Person as lessee, in conformity with GAAP, is required to be capitalized on the balance sheet
of such Person. For clarity purposes, GAAP for purposes of this definition shall be deemed GAAP as
in effect on the date of this Indenture.

     “Capitalized Lease Obligations” means, at the time any determination is to be made,
the amount of the liability in respect of a Capitalized Lease that would at that time be required
to be capitalized on a balance sheet in accordance with GAAP.

     “Change of Control” means the occurrence of one or more of the

 

9

following events:

     (1) any sale, exchange or other transfer (in one transaction or a series of related
transactions) of all or substantially all of the assets of the Parent and its Subsidiaries
taken as a whole to any “person” or “group” (as such terms are defined in Sections 13(d)
and 14(d)(2) of the Exchange Act), together with any Affiliates thereof (whether or not
otherwise in compliance with the provisions of this Indenture) (other than to a Permitted
Holder, the Parent or its Restricted Subsidiaries); provided, however, that for the
avoidance of doubt, the lease of all or substantially all of the assets of the Parent and
its Subsidiaries taken as a whole shall not constitute a Change of Control;

     (2) a “person” or “group” (as such terms are defined in Sections 13(d) and 14(d)(2) of
the Exchange Act), other than a Permitted Holder, becomes the ultimate “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act) of more than 50% of the total voting
power of the Voting Stock of the Parent on a fully diluted basis;

     (3) the approval by the holders of Capital Stock of the Parent of any plan or proposal
for the liquidation or dissolution of the Parent (whether or not otherwise in compliance
with the provisions of this Indenture); or

     (4) individuals who on the Issue Date constitute the Board of Directors of the Parent
(together with any new or replacement directors whose election by the Board of Directors of
the Parent or whose nomination by the Board of Directors of the Parent for election by the
Parent’s shareholders was (a) approved by a vote of at least a majority of the members of
the Board of Directors of the Parent then still in office who either were members of the
Board of Directors of the Parent on the Issue Date or whose election or nomination for
election was so approved or (b) made in accordance with any voting agreement to which the
Parent is then a party and which was in effect on the Issue Date) cease for any reason to
constitute a majority of the members of the Board of Directors of the Parent then in
office.

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

          “Common Stock” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated, whether voting or non-voting) that have no
preference on liquidation or with respect to distributions over any other class of Capital Stock,
including partnership interests, whether general or limited, of such Person’s equity, whether
outstanding on the Issue Date or issued thereafter, including all series and classes of common
stock.

          “Comparable Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining term of the Notes from the
redemption date to February 15, 2015, that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new

 

10

issues of corporate debt securities of a maturity most nearly equal to February 15, 2015.

          “Comparable Treasury Price” means, with respect to any redemption date, if clause (2)
of the Adjusted Treasury Rate definition is applicable, the average of three, or such lesser number
as is obtained by the Issuers, Reference Treasury Dealer Quotations for such redemption date.

          “Common Units” means the common units of the Partnership, each having the rights and
obligations set forth in the Partnership’s limited partnership agreement, as such agreement may be
amended from time to time.

          “Consolidated Interest Expense” means, for any period, the aggregate amount of
interest expense, less the aggregate amount of interest income for such period, in respect of
Indebtedness of the Parent and the Restricted Subsidiaries during such period, all as determined on
a consolidated basis in conformity with GAAP including (without duplication):

     (1) the interest portion of any deferred payment obligations;

     (2) all commissions, discounts and other fees and expenses owed with respect to
letters of credit and bankers’ acceptance financing;

     (3) the net cash costs associated with Interest Rate Agreements and Indebtedness that
is Guaranteed or secured by assets of the Parent or any of its Restricted Subsidiaries; and

     (4) all but the principal component of rentals in respect of Capitalized Lease
Obligations paid, accrued or scheduled to be paid or to be accrued by the Parent and its
Restricted Subsidiaries;

excluding, to the extent included in interest expense above, (A) the amount of such interest
expense of any Restricted Subsidiary if the net income of such Restricted Subsidiary is excluded in
the calculation of Adjusted Consolidated Net Income pursuant to clause (2) of the definition
thereof (but only in the same proportion as the net income of such Restricted Subsidiary is
excluded from the calculation of Adjusted Consolidated Net Income pursuant to clause (2) of the
definition thereof), as determined on a consolidated basis (without taking into account
Unrestricted Subsidiaries) in conformity with GAAP and (B) (i) accretion of accrual of discounted
liabilities not constituting Indebtedness, (ii) any expense resulting from the discounting of any
outstanding Indebtedness in connection with the application of purchase accounting in connection
with any acquisition, (iii) amortization of deferred financing fees, debt issuance costs,
commissions, fees and expenses, (iv) any expensing of bridge, commitment or other financing fees
(but not revolving loan commitment fees) and (v) non-cash costs associated with Interest Rate
Agreements and Currency Agreements.

          “Corporate Trust Office” means a principal office of the Trustee at which

 

11

at any time its corporate trust business shall be administered, which office at the date
hereof is located at 2 N. LaSalle Street, Suite 1020, Chicago, IL 60602, Attention: Corporate
Trust Administration, or such other address as the Trustee may designate from time to time by
notice to the Holders and the Issuers, or the principal corporate trust office of any successor
Trustee (or such other address as such successor Trustee may designate from time to time by notice
to the Holders and the Issuers), and for place of payment and where the Notes may be presented or
surrendered for registration of transfer pursuant to Section 2.03 hereof means The Bank of New York
Mellon located at 111 Sanders Creek Parkway, East Syracuse, NY 13057, or such other office,
designated by the Trustee by written notice to the Issuers, at which at any particular time its
corporate trust business shall be administered.

          “Credit Agreement” means the Credit Agreement to be dated on or about the Issue Date,
by and among the Restricted Subsidiaries of the Parent now or hereafter party thereto as borrowers
or guarantors, the Parent as guarantor, the lenders party thereto in their capacities as lenders
thereunder and Bank of America, N.A., as administrative agent, together with the related documents
thereto (including any guarantee agreements and security documents).

          “Credit Facility” means one or more credit or debt facilities (including any credit or
debt facilities provided under the Credit Agreement, Term Loan or Acquisition Line), financings,
commercial paper facilities, note purchase agreements or other debt instruments, indentures or
agreements, providing for revolving credit loans, term loans, notes, securities, letters of credit
or other debt obligations, in each case, as amended, restated, modified, renewed, refunded,
restructured, supplemented, replaced or refinanced in whole or in part from time to time, including
any amendment increasing the amount of Indebtedness incurred or available to be borrowed
thereunder, extending the maturity of any Indebtedness incurred thereunder or contemplated thereby
or deleting, adding or substituting one or more parties thereto (whether or not such added or
substituted parties are banks or other lenders or investors).

          “Currency Agreement” means any foreign exchange contract, currency swap agreement or
other similar agreement or arrangement.

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

          “Depository” means The Depository Trust Company, New York, New York, or a successor
thereto registered under the Exchange Act or other applicable statute or regulation.

          “Designated Non-cash Consideration” means the fair market value of non-cash
consideration received by the Parent or any of its Restricted Subsidiaries in connection with an
Asset Sale that is so designated as Designated Non-cash Consideration pursuant to an Officer’s
Certificate, setting forth the basis of such valuation, executed by the principal financial officer
of the Parent, less the amount of cash or Temporary Cash Investments received in connection with a
subsequent sale of or

 

12

collection on such Designated Non-cash Consideration.

          “Disqualified Stock” means any class or series of Capital Stock of any Person that by
its terms or otherwise is:

     (1) required to be redeemed on or prior to the date that is 91 days after the Stated
Maturity of the Notes;

     (2) redeemable at the option of the holder of such class or series of Capital Stock,
at any time on or prior to the date that is 91 days after the Stated Maturity of the Notes
(other than into shares of Capital Stock that is not Disqualified Stock), or

     (3) convertible into or exchangeable for Capital Stock referred to in clause (1) or
(2) above or Indebtedness having a scheduled maturity on or prior to the date that is 91
days after the Stated Maturity of the Notes;

provided, however, that any Capital Stock that would not constitute Disqualified Stock but for
provisions thereof giving holders thereof the right to require such Person to repurchase or redeem
such Capital Stock upon the occurrence of an “asset sale” or “change of control” occurring prior to
the Stated Maturity of the Notes shall not constitute Disqualified Stock if the “asset sale” or
“change of control” provisions applicable to such Capital Stock are no more favorable to the
holders of such Capital Stock than the provisions contained in Sections 4.07 and 4.11 and such
Capital Stock specifically provides that such Person shall not repurchase or redeem any such stock
pursuant to such provisions unless such repurchase or redemption complies with Section 4.09.
Disqualified Stock shall not include Capital Stock which is issued to any plan for the benefit of
employees of the Parent or its Subsidiaries or by any such plan to such employees solely because it
may be required to be repurchased by the Parent or its Subsidiaries in order to satisfy applicable
statutory or regulatory obligations. Disqualified Stock shall not include Common Units.

          “Equity Offering” means a public or private offering of Capital Stock (other than
Disqualified Stock) of the Parent or any successor entity of the Parent permitted pursuant to this
Indenture.

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

          “Exchange Offer” means the offer that may be made by the Issuers pursuant to the
Registration Rights Agreement to exchange Notes bearing the Private Placement Legend for the
Exchange Securities.

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

 

13

          “Existing Indebtedness” means the aggregate principal amount of Indebtedness of the
Parent and its Subsidiaries in existence on the date of this Indenture until such amounts are
repaid.

          “fair market value” means the price that would be paid in an arm’s-length transaction
between an informed and willing seller under no compulsion to sell and an informed and willing
buyer under no compulsion to buy. For purposes of determining compliance with Article Four of this
Indenture, any determination that the fair market value of assets other than cash or Temporary Cash
Investments is equal to or greater than $20,000,000 shall be as determined in good faith by the
Board of Directors of the Parent, whose determination shall be conclusive if evidenced by a Board
Resolution, and otherwise by the principal financial officer of the Parent acting in good faith,
each of whose determination shall be conclusive.

          “Four Quarter Period” means, for purposes of calculating the Interest Coverage Ratio
with respect to any Transaction Date, the then most recent four fiscal quarters prior to such
Transaction Date for which reports have been filed with the SEC or provided to the Trustee pursuant
to Section 4.15 (or if no such reports have yet been required to be filed with the SEC, for which
internal financial statements are available).

          “GAAP” means generally accepted accounting principles in the United States of America
as in effect as of the Issue Date, including those set forth in the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as approved by a significant segment of the accounting profession.
Except as otherwise specifically provided in this Indenture, all ratios and computations contained
or referred to in this Indenture shall be computed in conformity with GAAP applied on a consistent
basis. For clarity purposes, in determining whether a lease is a Capitalized Lease or an operating
lease and whether interest expense exists, such determination shall be made in accordance with GAAP
as in effect on the date of this Indenture.

          “Guarantee” means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Indebtedness of any other Person and, without limiting the generality
of the foregoing, any obligation of such Person:

     (1) to purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness of such other Person (whether arising by virtue of partnership
arrangements, or by agreements to keep-well or to maintain financial statement conditions
or otherwise); or

     (2) entered into for purposes of assuring in any other manner the obligee of such
Indebtedness of the payment thereof or to protect such obligee against loss in respect
thereof (in whole or in part);

 

14

provided, however, that the term “Guarantee” shall not include endorsements for collection or
deposit in the ordinary course of business. The term “Guarantee” used as a verb has a
corresponding meaning.

          “Guarantor” means the Parent and each Subsidiary Guarantor.

          “Guaranty” or “Guaranties” means a Guaranty by each Guarantor for payment of
the Notes by such Guarantor.

          “Holder” means any registered holder on the books of the Registrar, from time to time,
of the Notes.

          “Incur” means, with respect to any Indebtedness, to incur, create, issue, assume,
Guarantee or otherwise become liable for or with respect to, or become responsible for, the payment
of, contingently or otherwise, such Indebtedness, including an “Incurrence” of Acquired
Indebtedness; provided, however, that neither the accrual of interest, the payment of interest on
any Indebtedness in the form of additional Indebtedness with the same terms, nor the accretion of
original issue discount shall be considered an Incurrence of Indebtedness.

          “Indebtedness” means, with respect to any Person at any date of determination (without
duplication):

     (1) all indebtedness of such Person for borrowed money;

     (2) all obligations of such Person evidenced by bonds, debentures, notes or other
similar instruments;

     (3) the face amount of letters of credit or other similar instruments (excluding
obligations with respect to letters of credit (including trade letters of credit) securing
obligations (other than obligations described in (1) or (2) above or (5), (6) or (7) below)
entered into in the ordinary course of business of such Person to the extent such letters
of credit are not drawn upon or, if drawn upon, to the extent such drawing is reimbursed no
later than the fifth Business Day following receipt by such Person of a demand for
reimbursement);

     (4) all unconditional obligations of such Person to pay the deferred and unpaid
purchase price of property or services, which purchase price is due more than six months
after the date of placing such property in service or taking delivery and title thereto or
the completion of such services, except Trade Payables;

     (5) all Capitalized Lease Obligations and Attributable Debt;

 

15

     (6) all Indebtedness of other Persons secured by a Lien on any asset of such Person,
whether or not such Indebtedness is assumed by such Person; provided, however, that the
amount of such Indebtedness shall be the lesser of (A) the fair market value of such asset
at that date of determination and (B) the amount of such Indebtedness;

     (7) all Indebtedness of other Persons Guaranteed by such Person to the extent such
Indebtedness is Guaranteed by such Person; and

     (8) to the extent not otherwise included in this definition or the definition of
Consolidated Interest Expense, obligations under Currency Agreements and Interest Rate
Agreements.

          The amount of Indebtedness of any Person at any date shall be the outstanding balance at such
date of all unconditional obligations of the type described above and, with respect to obligations
under any Guarantee, the maximum liability upon the occurrence of the contingency giving rise to
the obligation; provided, however, that:

     (1) the amount outstanding at any time of any Indebtedness issued with original issue
discount shall be deemed to be the face amount with respect to such Indebtedness less the
remaining unamortized portion of the original issue discount of such Indebtedness at the
date of determination in conformity with GAAP;

     (2) Indebtedness shall not include any liability for foreign, Federal, state, local or
other taxes;

     (3) Indebtedness shall not include any indemnification, earnouts, adjustment or
holdback of purchase price or similar obligations, in each case, incurred or assumed in
connection with the acquisition or disposition of any business, assets or a 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; and

     (4) Indebtedness shall not include contingent obligations under performance bonds,
performance guarantees, surety bonds, appeal bonds or similar obligations incurred in the
ordinary course of business and consistent with past practices.

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

          “interest” means, unless the context otherwise requires, with respect to the Notes,
interest and Additional Interest, if any, on the Notes.

 

16

          “Interest Coverage Ratio” means, on any Transaction Date, the ratio of:

	 	(x)	 	the aggregate amount of Adjusted
Consolidated EBITDA for the then applicable Four Quarter Period to
	 
	 	(y)	 	the aggregate Consolidated Interest Expense
during such Four Quarter Period.

          In making the foregoing calculation,

     (1) pro forma effect shall be given to any Indebtedness Incurred or repaid (other than
in connection with an Asset Acquisition or Asset Disposition) during the period
(“Reference Period”) commencing on the first day of the Four Quarter Period and
ending on the Transaction Date (other than Indebtedness Incurred or repaid under a
revolving credit or similar arrangement), in each case as if such Indebtedness had been
Incurred or repaid on the first day of such Reference Period;

     (2) Consolidated Interest Expense attributable to interest on any Indebtedness
(whether existing or being Incurred) computed on a pro forma basis and bearing a floating
interest rate shall be computed as if the rate in effect on the Transaction Date (taking
into account any Interest Rate Agreement applicable to such Indebtedness if such Interest
Rate Agreement has a remaining term in excess of 12 months or, if shorter, at least equal
to the remaining term of such Indebtedness) had been the applicable rate for the entire
period;

     (3) pro forma effect shall be given to Asset Dispositions, Asset Acquisitions and
Permitted Mortgage Investments (including giving pro forma effect to the application of
proceeds of any Asset Disposition and any Indebtedness Incurred or repaid in connection
with any such Asset Acquisitions or Asset Dispositions) that occur during such Reference
Period or subsequent to the end of the related Four Quarter Period as if they had occurred
and such proceeds had been applied on the first day of such Reference Period and after
giving effect to Pro Forma Cost Savings;

     (4) pro forma effect shall be given to asset dispositions and asset acquisitions
(including giving pro forma effect to (i) the application of proceeds of any asset
disposition and any Indebtedness Incurred or repaid in connection with any such asset
acquisitions or asset dispositions, (ii) expense and cost reductions calculated on a basis
consistent with Regulation S-X under the Exchange Act and (iii) Pro Forma Cost Savings)
that have been made by any Person that has become a Restricted Subsidiary or has been
merged with or into the Parent or any of its Restricted Subsidiaries during such Reference
Period but subsequent to the end of the related Four Quarter Period and that would have
constituted Asset Dispositions or Asset Acquisitions during such Reference Period but
subsequent to the end of the related Four Quarter Period had such

 

17

transactions occurred when such Person was a Restricted Subsidiary as if such asset
dispositions or asset acquisitions were Asset Dispositions or Asset Acquisitions and had
occurred on the first day of such Reference Period;

     (5) the Consolidated Interest Expense attributable to discontinued operations, as
determined in accordance with GAAP, shall be excluded, but only to the extent that the
obligations giving rise to such Consolidated Interest Expense shall not be obligations of
the specified Person or any of its Restricted Subsidiaries following the Transaction Date;
and

     (6) consolidated interest expense attributable to interest on any Indebtedness
(whether existing or being incurred) computed on a pro forma basis and bearing a floating
interest rate shall be computed as if the rate in effect on the Transaction Date (taking
into account any Interest Rate Agreement applicable to such Indebtedness if such Interest
Rate Agreement has a remaining term in excess of 12 months or, if shorter, at least equal
to the remaining term of such Indebtedness) had been the applicable rate for the entire
period. Interest on Indebtedness that may optionally be determined at an interest rate
based on a factor of a prime or similar rate, a Eurocurrency interbank offered rate, or
other rate, shall be deemed to have been based upon the rate actually chosen, or, if not,
then based upon such operational rate chosen as the Parent may designate. Interest on any
Indebtedness under a revolving credit facility computed on a pro forma basis shall be
computed based on the average daily balance of such Indebtedness during the applicable
period except as set forth in clause (1) of this definition. Interest on a Capitalized
Lease Obligation shall be deemed to accrue at an interest rate reasonably determined by a
responsible financial or accounting officer of the Parent to be the rate of interest
implicit in such Capitalized Lease Obligation in accordance with GAAP;

provided, however, that to the extent that clause (3) or (4) of this paragraph requires that pro
forma effect be given to an Asset Acquisition, Asset Disposition, Permitted Mortgage Investment,
asset acquisition or asset disposition, as the case may be, such pro forma calculation shall be
based upon the four full fiscal quarters immediately preceding the Transaction Date of the Person,
or division or line of business, or one or more properties, of the Person that is acquired or
disposed of to the extent that such financial information is available or otherwise a reasonable
estimate thereof is available.

          “Interest Payment Date” means the Stated Maturity of an installment of interest on the
Notes.

          “Interest Rate Agreement” means any interest rate protection agreement, interest rate
future agreement, interest rate option agreement, interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement, interest rate hedge agreement, option or future contract
or other similar agreement or arrangement with respect to interest rates.

 

18

          “Investment” in any Person means any direct or indirect advance, loan or other
extension of credit (including by way of Guarantee or similar arrangement, but excluding advances
to customers in the ordinary course of business that are, in conformity with GAAP, recorded as
accounts receivable on the consolidated balance sheet of the Parent and its Restricted Subsidiaries
and commission, travel and similar advances to employees, directors, officers, managers and
consultants in each case made in the ordinary course of business) or capital contribution to (by
means of any transfer of cash or other property (tangible or intangible) to others or any payment
for property or services solely for the account or use of others, or otherwise), or any purchase or
acquisition of Capital Stock, bonds, notes, debentures or other similar instruments issued by, such
Person and shall include:

     (1) the designation of a Restricted Subsidiary as an Unrestricted Subsidiary; and

     (2) the fair market value of the Capital Stock (or any other Investment), held by the
Parent or any of its Restricted Subsidiaries of (or in) any Person that has ceased to be a
Restricted Subsidiary;

provided, however, that the fair market value of the Investment remaining in any Person that has
ceased to be a Restricted Subsidiary shall be deemed not to exceed the aggregate amount of
Investments previously made in such Person valued at the time such Investments were made, less the
net reduction of such Investments. For purposes of the definition of “Unrestricted Subsidiary” and
Section 4.09:

     (i) “Investment” shall include the fair market value of the assets (net of
liabilities (other than liabilities to the Parent or any of its Restricted
Subsidiaries)) of any Restricted Subsidiary at the time such Restricted Subsidiary
is designated an Unrestricted Subsidiary;

     (ii) the fair market value of the assets (net of liabilities (other than
liabilities to the Parent or any of its Restricted Subsidiaries)) of any
Unrestricted Subsidiary at the time that such Unrestricted Subsidiary is designated
a Restricted Subsidiary shall be considered a reduction in outstanding Investments;
and

     (iii) any property transferred to or from an Unrestricted Subsidiary shall be
valued at its fair market value at the time of such transfer.

          “Investment Grade Status” means, with respect to the Parent or the Issuers, when the
Notes have both (1) a rating of “Baa3” or higher from Moody’s and (2) a rating of “BBB-” or higher
from S&P (or, if either such agency ceases to rate the Notes for reasons outside the control of the
Parent, the equivalent investment grade credit rating from any other “nationally recognized
statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange
Act selected by the Parent as a replacement agency), in each case published by the applicable
agency.

 

19

          “Issue Date” means February 4, 2011.

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

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

          “Net Cash Proceeds” means:

     (1) with respect to any Asset Sale, the proceeds of such Asset Sale in the form of
cash or Temporary Cash Investments, including payments in respect of deferred payment
obligations (to the extent corresponding to the principal, but not interest, component
thereof) when received in the form of cash or Temporary Cash Investments (except to the
extent such obligations are financed or sold with recourse to the Parent or any of its
Restricted Subsidiaries) and proceeds from the conversion or sale of other property
received when converted to or sold for cash or cash equivalents, net of:

     (i) brokerage commissions and other fees and expenses (including fees and
expenses of counsel and investment bankers) related to such Asset Sale;

     (ii) provisions for all taxes actually paid or payable as a result of such
Asset Sale by the Parent and its Restricted Subsidiaries, taken as a whole, after
taking into account any available tax credits or deductions and any tax sharing
arrangements;

     (iii) payments made to repay Indebtedness or any other obligation outstanding
at the time of such Asset Sale that either (A) is secured by a Lien on the property
or assets sold or (B) is required to be paid as a result of such sale;

     (iv) so long as after giving pro forma effect to any such distribution (A) the
aggregate principal amount of all outstanding Indebtedness of the Parent and its
Restricted Subsidiaries on a consolidated basis at such time is less than 60% of
Adjusted Total Assets and (B) no Default or Event of Default shall have occurred
and be continuing, the amount required to be distributed to the holders of Parent’s
Capital Stock as a result of such Asset Sale in order for Parent to maintain its
status as a REIT and any related pro rata distributions to holders of the
Partnership’s Capital Stock; and

     (v) amounts reserved by the Parent and its Restricted Subsidiaries against any
liabilities associated with such Asset Sale, including pension and other
post-employment benefit liabilities, liabilities related to environmental matters
and liabilities under any indemnification

 

20

obligations associated with such Asset Sale, all as determined on a
consolidated basis in conformity with GAAP; and

     (2) with respect to any issuance or sale of Capital Stock, the proceeds of such
issuance or sale in the form of cash or Temporary Cash Investments, including payments in
respect of deferred payment obligations (to the extent corresponding to the principal, but
not interest, component thereof) when received in the form of cash or Temporary Cash
Investments (except to the extent such obligations are financed or sold with recourse to
the Parent or any of its Restricted Subsidiaries) and proceeds from the conversion of other
property received when converted to cash or Temporary Cash Investments, net of attorney’s
fees, accountants’ fees, underwriters’ or placement agents’ fees, discounts or commissions
and brokerage, consultant and other fees actually incurred in connection with such issuance
or sale and net of tax paid or payable as a result thereof.

          “Non-U.S. Person” means any Person that is not a “U.S. Person,” as such term defined
in Regulation S.

          “Notes” means, collectively, the Issuers’ 73/4% Senior Notes due 2019 issued in
accordance with Section 2.02 (whether issued on the Issue Date, issued as Additional Notes, issued
as Exchange Securities, or otherwise issued after the Issue Date) treated as a single class of
securities under this Indenture.

          “Offer to Purchase” means an offer to purchase Notes by the Issuers from the Holders
commenced by sending a notice to the Trustee and each Holder electronically or by first class mail
at its registered address or otherwise in accordance with the procedures of the Depository stating:

     (1) the covenant pursuant to which the offer is being made and that all Notes validly
tendered shall be accepted for payment on a pro rata basis;

     (2) the purchase price and the date of purchase (which shall be a Business Day no
earlier than 30 days nor later than 60 days from the date such notice is mailed) (the
“Payment Date”);

     (3) that any Note not tendered shall continue to accrue interest pursuant to its
terms;

     (4) that, unless the Issuers default in the payment of the purchase price, any Note
accepted for payment pursuant to the Offer to Purchase shall cease to accrue interest on
and after the Payment Date;

     (5) that Holders electing to have a Note purchased pursuant to the Offer to Purchase
shall be required to surrender the Note, together with the form entitled

 

21

“Option of the Holder to Elect Purchase” on the reverse side of the Note completed, to
the Paying Agent at the address specified in the notice or otherwise in accordance with the
Depository’s applicable procedures prior to the close of business on the Business Day
immediately preceding the Payment Date;

     (6) that Holders shall be entitled to withdraw their election by using the ATOP system
(or any successor or equivalent system) in accordance with the Depository’s applicable
procedures or if the Paying Agent receives, not later than the close of business on the
third Business Day immediately preceding the Payment Date, a telegram, facsimile
transmission or letter or instruction to the Depository, as applicable, setting forth the
name of such Holder, the principal amount of Notes delivered for purchase and, if
applicable, a statement that such Holder is withdrawing his election to have such Notes
purchased; and

     (7) that Holders whose Notes are being purchased only in part shall be issued new
Notes equal in principal amount to the unpurchased portion of the Notes surrendered;
provided, however, that each Note purchased and each new Note issued shall be in a
principal amount of $2,000 or integral multiples of $1,000 in excess thereof.

          On the Payment Date, the Issuers shall:

     (i) accept for payment on a pro rata basis Notes or portions thereof tendered
pursuant to an Offer to Purchase;

     (ii) deposit with the Paying Agent no later than 11:00 a.m. New York City time
money sufficient to pay the purchase price of all Notes or portions thereof so
accepted; and

     (iii) promptly thereafter deliver, or cause to be delivered, to the Trustee
all Notes or portions thereof so accepted together with an Officer’s Certificate
specifying the Notes or portions thereof accepted for payment by the Issuers.

          The Paying Agent shall promptly wire to the Holders of Notes so accepted payment in an amount
equal to the purchase price, and the Trustee shall promptly authenticate and mail to such Holders a
new Note equal in principal amount to any unpurchased portion of any Note surrendered (and in the
case of Notes held in book entry form, the Trustee shall hold such Global Notes as custodian for
the Depository); provided, however, that each Note purchased and each new Note issued shall be in a
principal amount of $2,000 or integral multiples of $1,000 in excess thereof. The Issuers shall
publicly announce the results of an Offer to Purchase as soon as practicable after the Payment
Date. The Issuers shall comply with Rule 14e-1 under the Exchange Act and any other securities
laws and regulations thereunder to the extent such laws and regulations are applicable, in the
event that the Issuers are required to repurchase Notes pursuant to an Offer to Purchase.

 

22

          “Offering Memorandum” means the Final Offering Memorandum dated January 27, 2011
pursuant to which the Notes issued on the Issue Date were offered to investors.

          “Officer” means any of the following with respect to any Person: the Chairman of the
Board of Directors, the Chief Executive Officer, the Chief Financial Officer, the Chief Accounting
Officer, the Chief Operating Officer, the President, any Vice President, the Treasurer, any
Assistant Treasurer, the Controller, the General Counsel, the Secretary or any Assistant Secretary
of such Person.

          “Officer’s Certificate” means a certificate signed by an Officer of the Parent, each
of the Issuers or a Subsidiary Guarantor, as applicable.

          “Opinion of Counsel” means a written opinion reasonably acceptable to the Trustee from
legal counsel. The counsel may be an employee of, or counsel to, the Parent, the Issuers or a
Guarantor.

          “Pari Passu Indebtedness” means any Indebtedness of the Issuers or any Guarantor that
ranks pari passu in right of payment with, or senior in right of payment to, the Notes or the
Guaranty thereof by such Guarantor, as applicable, including Indebtedness outstanding under the
Credit Agreement, the Acquisition Line and the Term Loan.

          “Partnership” means Aviv Healthcare Properties Limited Partnership.

          “Permitted Business” means any business activity (including Permitted Mortgage
Investments) in which the Parent and its Restricted Subsidiaries are engaged or propose to be
engaged in (as described in the Offering Memorandum) on the Issue Date, any business activity
related to properties customarily constituting assets of a healthcare REIT, or any business
reasonably related, ancillary or complementary thereto, or reasonable expansions or extensions
thereof.

          “Permitted Holders” means LG Aviv L.P. (and any other investment fund that is an
Affiliate of Lindsey Goldberg LLC) and Craig Bernfield.

          “Permitted Investment” means:

     (1) (a) an Investment in the Parent or any of its Restricted Subsidiaries or (b) a
Person that will, upon the making of such Investment, become a Restricted Subsidiary or be
merged or consolidated with or into or transfer or convey all or substantially all its
assets to, the Parent or any of its Restricted Subsidiaries and, in each case, any
Investment held by such Person; provided that such Investment was not acquired by such
Person in contemplation of such acquisition, merger, consolidation or transfer, and
provided further that such Investment was not an Investment in any Subordinated Subsidiary
Guarantor consisting of any Real Estate Assets in existence on the Issue Date of any of the
Issuers or the Senior Guaranty Subsidiaries;

 

23

     (2) investments in cash and Temporary Cash Investments;

     (3) Investments made by the Parent or its Restricted Subsidiaries as a result of
consideration received in connection with an Asset Sale made in compliance with Section
4.11 or from any other disposition or transfer of assets not constituting an Asset Sale;

     (4) Investments represented by Guarantees that are otherwise permitted under this
Indenture;

     (5) payroll, travel and similar advances to cover matters that are expected at the
time of such advances ultimately to be treated as expenses in accordance with GAAP;

     (6) Investments received in satisfaction of judgments or in settlements of debt or
compromises of obligations incurred in the ordinary course of business;

     (7) any Investment acquired solely in exchange for Capital Stock (other than
Disqualified Stock) of the Parent or the Partnership, which the Parent or the Partnership
did not receive in exchange for a cash payment, Indebtedness or Disqualified Stock, but
excluding any new cash Investments made thereafter;

     (8) any Investment existing on the Issue Date;

     (9) Investments in Unrestricted Subsidiaries and joint ventures in an aggregate
amount, taken together with all other Investments made in reliance on this clause and all
Indebtedness then outstanding pursuant to Section 4.08(d)(15), not to exceed the greater of
$20,000,000 and 2.0% of Adjusted Total Assets (net of, with respect to the Investment in
any particular Person, the cash return thereon received after the Issue Date as a result of
any sale for cash, repayment, redemption, liquidating distribution or other cash
realization (not included in Adjusted Consolidated Net Income), not to exceed the amount of
Investments in such Person made after the Issue Date in reliance on this clause);

     (10) obligations under Currency Agreements and Interest Rate Agreements otherwise
permitted under this Indenture;

     (11) Permitted Mortgage Investments;

     (12) any transaction which constitutes an Investment to the extent permitted and made
in accordance with Section 4.12(b) (except transactions pursuant to Sections 4.12(b)(1),
(5), (9) and (10));

 

24

     (13) any Investment consisting of prepaid expenses, negotiable instruments held for
collection and lease, endorsements for deposit or collection in the ordinary course of
business, utility or workers’ compensation, performance and similar deposits entered into
as a result of the operations of the business in the ordinary course of business;

     (14) pledges or deposits by a Person under workers’ compensation laws, unemployment
insurance laws or similar legislation, or deposits in connection with bids, tenders,
contracts (other than for the payment of Indebtedness) or leases to which such Person is a
party, or deposits as security for contested taxes or import duties or for the payment of
rent, in each case incurred in the ordinary course of business;

     (15) any Investment acquired by the Parent or any of its Restricted Subsidiaries (a)
in exchange for any other Investment or accounts receivable held by the Parent or any such
Restricted Subsidiary in connection with or as a result of a bankruptcy, workout,
reorganization or recapitalization of the issuer of such other Investment or accounts
receivable or (b) as a result of a foreclosure by the Parent or any of its Restricted
Subsidiaries with respect to any secured Investment or other transfer of title with respect
to any secured Investment in default;

     (16) any Investment consisting of a loan or advance to officers, directors or
employees of the Parent or any of its Restricted Subsidiaries (a) in connection with the
purchase by such Persons of Capital Stock of the Parent or (b) made in the ordinary course
of business not to exceed $2,500,000 at any one time outstanding;

     (17) any Investment made in connection with the funding of contributions under any
non-qualified employee retirement plan or similar employee compensation plan in an amount
not to exceed the amount of compensation expenses recognized by the Parent and any of its
Restricted Subsidiaries in connection with such plans; and

     (18) additional Investments not to exceed the greater of $25,000,000 and 2.5% of
Adjusted Total Assets at any time outstanding.

          “Permitted Mortgage Investment” means any Investment in secured notes, mortgages,
deeds of trust, collateralized mortgage obligations, commercial mortgage-backed securities, other
secured debt securities, secured debt derivatives or other secured debt instruments, so long as
such investment relates directly or indirectly to real property that constitutes or is used as a
skilled nursing home center, hospital, assisted living facility, independent living facility,
medical office or other property customarily constituting an asset of a real estate investment
trust specializing in healthcare or senior housing property.

 

25

          “Permitted Refinancing Indebtedness” means:

     (A) any Indebtedness of the Parent or any of its Restricted Subsidiaries issued in
exchange for, or the net proceeds of which are used to extend, refinance, renew, replace,
defease or refund other Indebtedness (including Acquired Indebtedness) of the Parent or any
of its Restricted Subsidiaries (other than intercompany Indebtedness); provided that:

     (1) the principal amount (or accreted value, if applicable) of such Permitted
Refinancing Indebtedness does not exceed the principal amount (or accreted value, if
applicable) of the Indebtedness so extended, refinanced, renewed, replaced, defeased or
refunded (plus all accrued interest thereon and the amount of any reasonably determined
premium necessary to accomplish such refinancing and such reasonable fees and expenses
incurred in connection therewith);

     (2) such Permitted Refinancing Indebtedness has:

          (a) a final maturity date later than (x) the final maturity date of the Indebtedness being
extended, refinanced, renewed, replaced, defeased or refunded or (y) the date that is 91 days after
the maturity of the Notes, and

          (b) an Average Life equal to or greater than the Average Life of the Indebtedness being
extended, refinanced, renewed, replaced, defeased or refunded or 91 days more than the Average Life
of the Notes;

     (3) if the Indebtedness being extended, refinanced, renewed, replaced, defeased or
refunded is contractually subordinated in right of payment to the Notes or any Guaranty,
such Permitted Refinancing Indebtedness is contractually subordinated in right of payment
to the Notes or such Guaranty on terms at least as favorable to Holders as those contained
in the documentation governing the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded;

     (4) if the Indebtedness being extended, refinanced, renewed, replaced,
defeased or refunded is pari passu in right of payment with the Notes or any Guaranty, such
Permitted Refinancing Indebtedness is pari passu in right of payment with, or subordinated
in right of payment to, the Notes or such Guaranty; and

     (5) such Indebtedness is incurred either (a) by the Parent, an Issuer or any
Subsidiary Guarantor or (b) by the Restricted Subsidiary who is the obligor on the
Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded.

          “Person” means any individual, corporation, partnership, limited liability company,
joint venture, association, joint-stock company, trust, unincorporated

 

26

organization, government or any agency or political subdivision thereof or any other entity.

          “Preferred Stock” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated, whether voting or non-voting) that have a
preference on liquidation or with respect to distributions over any other class of Capital Stock,
including preferred partnership interests, whether general or limited, or such Person’s preferred
or preference stock, whether outstanding on the Issue Date or issued thereafter, including all
series and classes of such preferred or preference stock.

          “principal” means, with respect to the Notes, the principal of and premium, if any, on
the Notes.

          “Private Placement Legend” means the legends initially set forth on the Notes in the
form set forth in Exhibit B.

          “Pro Forma Cost Savings” means, with respect to any period, the reductions in costs
(including such reductions resulting from employee terminations, facilities consolidations and
closings, standardization of employee benefits and compensation policies, consolidation of
property, casualty and other insurance coverage and policies, standardization of sales and
distribution methods, reductions in taxes other than income taxes) that occurred during such period
that are (1) directly attributable to an asset acquisition or (2) implemented and that are
supportable and quantifiable by the underlying records of such business, as if, in the case of each
of clauses (1) and (2), all such reductions in costs had been effected as of the beginning of such
period, decreased by any incremental expenses incurred or to be incurred during such period in
order to achieve such reduction in costs, all such costs to be determined in good faith by the
chief financial officer of the Parent.

          “Qualified Institutional Buyer” or “QIB” shall have the meaning specified in
Rule 144A.

          “Quotation Agent” means the Reference Treasury Dealer selected by the Issuers.

          “Real Estate Assets” of a Person means, as of any date, the real estate assets of such
Person and its Restricted Subsidiaries on such date, on a consolidated basis determined in
accordance with GAAP.

          “Real Estate Revenues” means, with respect to any Real Estate Asset of Parent and its
Restricted Subsidiaries owned as of December 31, 2010, the annualized rental revenues for such Real
Estate Asset, calculated based on the monthly rental revenue for such Real Estate Asset as of
December 31, 2010 and assuming such Real Estate Asset had been held by the Parent and its
Restricted Subsidiaries during the four-quarter period ended December 31, 2010, all as set forth on
Schedule A attached hereto.

          “Real Property Non-Guarantor Subsidiary” means any Restricted

 

27

Subsidiary that holds a real estate asset that is subject to a mortgage the terms of which
prohibit such Restricted Subsidiary from entering into Guarantees of other Indebtedness.

          “Record Date” means the applicable Record Date specified in the Notes.

          “Redeemable Cumulative Preferred Stock” means the 12.5% Series A Redeemable Cumulative
Preferred Stock of the Parent existing on the Issue Date having a maximum liquidation preference of
$125,000.

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

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

          “Reference Treasury Dealer” means each of Banc of America Securities LLC and its
successors and assigns, Morgan Stanley & Co. Incorporated and its successors and assigns and RBC
Capital Markets, LLC and its successors and assigns.

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

          “Registration Rights Agreement” means the Registration Rights Agreement dated as of
February 4, 2011, among the Parent, the Issuers, the Guarantors and Merrill Lynch, Pierce, Fenner &
Smith Incorporated (as representative of the several initial purchasers party thereto), as amended,
supplemented or modified from time to time, and any similar agreement entered into in connection
with the issuance of any Additional Notes.

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

          “Replacement Assets” means (1) tangible non-current assets that will be used or useful
in a Permitted Business or (2) substantially all the assets of a Permitted Business or a majority
of the Voting Stock of any Person engaged in a Permitted Business that will become on the date of
acquisition thereof a Restricted Subsidiary.

          “Responsible Officer” means, when used with respect to the Trustee, any officer in the
Corporate Trust Office of the Trustee to whom any corporate trust matter is referred because of
such officer’s knowledge of and familiarity with the particular subject and shall also mean any
officer who shall have direct responsibility for the administration of this Indenture.

          “Restricted Period” means the 40-day distribution compliance period as

 

28

defined in Regulation S.

          “Restricted Security” means a Note that constitutes a “Restricted Security” within the
meaning of Rule 144(a)(3) under the Securities Act; provided, however, that the Trustee shall be
entitled to request and conclusively rely on an Opinion of Counsel with respect to whether any Note
constitutes a Restricted Security.

          “Restricted Subsidiary” means, with respect to a Person, any Subsidiary of such Person
other than an Unrestricted Subsidiary. Unless the context otherwise requires, any reference herein
to a “Restricted Subsidiary” shall be to a Restricted Subsidiary of the Issuers. For the avoidance
of doubt, the Issuers are considered Restricted Subsidiaries of the Parent for purposes of this
Indenture.

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

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

          “Sale and Leaseback Transaction” means any direct or indirect arrangement with any
Person or to which any such Person is a party, providing for the leasing to the Parent or any
Restricted Subsidiary of any property, whether owned by the Parent or any such Restricted
Subsidiary at the Issue Date or later acquired, which has been or is to be sold or transferred by
the Parent or any such Restricted Subsidiary to such Person or any other Person from whom funds
have been or are to be advanced by such Person on the security of such property.

          “SEC” means the U.S. Securities and Exchange Commission.

          “Secured Indebtedness” means any Indebtedness secured by a Lien upon the property of
the Parent or any of its Restricted Subsidiaries.

          “Senior Guaranty Subsidiaries” means all Subsidiary Guarantors other than the
Subordinated Subsidiary Guarantors.

          “Securities Act” means the U.S. Securities Act of 1933, as amended, or any successor
statute or statutes thereto.

          “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.

          “Stated Maturity” means:

     (1) with respect to any debt security, the date specified in such debt security as the
fixed date on which the final installment of principal of such debt security is due and
payable; and

 

29

     (2) with respect to any scheduled installment of principal of or interest on any debt
security, the date specified in such debt security as the fixed date on which such
installment is due and payable;

provided, that Stated Maturity shall not include any contingent obligations to repay, redeem or
repurchase any such interest or principal prior to the date originally scheduled for the payment
thereof.

          “Subordinated Subsidiary Guarantors” means (i) the Subsidiary Guarantors that are
borrowers or guarantors in respect of the Acquisition Line or the Term Loan on the Issue Date plus
(ii) any Subsidiary Guarantors that become borrowers or guarantors in respect of the Acquisition
Line or the Term Loan (or any Permitted Refinancing Indebtedness incurred in exchange for, or the
net proceeds of which are used to refund, refinance or replace, the Acquisition Line or Term Loan
and that was otherwise permitted by the indenture) in the future in connection with acquisitions or
other investments but, in case of this clause (ii), excluding any Restricted Subsidiaries of the
Issuers in existence on the Issue Date that are not party to the credit agreement governing the
Acquisition Line or the Term Loan on the Issue Date.

          “Subsidiary” means, with respect to any Person, any corporation, association or other
business entity of which more than 50% of the voting power of the outstanding Voting Stock is
owned, directly or indirectly, by such Person and one or more other Subsidiaries of such Person and
the accounts of which would be consolidated with those of such Person in its consolidated financial
statements in accordance with GAAP, if such statements were prepared as of such date.

          “Subsidiary Guarantors” means (i) each Subsidiary of the Issuers on the Issue Date,
including the Senior Guaranty Subsidiaries and the Subordinated Subsidiary Guarantors, but
excluding the Real Property Non-Guarantor Subsidiaries, and (ii) each other Person that is required
to become a Guarantor by the terms of the indenture after the Issue Date, in each case, until such
Person is released from its Subsidiary Guaranty.

          “Subsidiary Guaranty” means a Guaranty by a Subsidiary Guarantor.

          “Temporary Cash Investment” means any of the following:

     (1) United States dollars;

     (2) direct obligations of the United States of America or any agency thereof or
obligations fully and unconditionally guaranteed by the United States of America or any
agency thereof;

     (3) time deposit accounts, term deposit accounts, time deposits, bankers’ acceptances,
certificates of deposit, Eurodollar time deposits and money market deposits maturing within
twelve months or less of the date of acquisition thereof issued by a bank or trust company
which is organized under the laws of the

 

30

United States of America or any state or jurisdiction thereof, and which bank or trust
company has capital, surplus and undivided profits aggregating in excess of $500,000,000
and has outstanding debt which is rated “A” (or such similar equivalent rating) or
higher by at least one “nationally recognized statistical rating organization” (within the
meaning of Rule 15c3-l(c)(2)(vi)(F) under the Exchange Act) or any money-market fund
sponsored by a registered broker dealer or mutual fund distributor;

     (4) repurchase obligations with a term of not more than 30 days for underlying
securities of the types described in clauses (2) and (3) above entered into with a bank
meeting the qualifications described in clause (3) above;

     (5) commercial paper, maturing not more than six months after the date of acquisition,
issued by a corporation (other than an Affiliate of the Parent) organized and in existence
under the laws of the United States of America or any state or jurisdiction thereof with a
rating at the time as of which any investment therein is made of “P-2” (or higher)
according to Moody’s or “A-2” (or higher) according to S&P;

     (6) securities with maturities of six months or less from the date of acquisition
issued or fully and unconditionally guaranteed by any state, commonwealth or territory of
the United States of America, or by any political subdivision or taxing authority thereof,
and rated at least “A” by S&P or Moody’s; and

     (7) any fund investing substantially all of its assets in investments that constitute
Temporary Cash Investments of the kinds described in clauses (1) through (6) of this
definition.

          “Term Loan” means the $405 million term loan under a credit agreement dated as of
September 17, 2010, among Aviv Financing I, L.L.C., as the parent borrower, the other borrowers
named therein, General Electric Capital Corporation, as administrative agent and a lender, and the
other lenders named therein.

          “Total Assets” means, for any Person as of any date, the sum of (i) in the case of any
Real Estate Assets that were owned as of December 31, 2010, the Real Estate Revenues specified for
such Real Estate Assets, divided by 0.0975, plus (ii) the cost (original cost plus capital
improvements before depreciation and amortization) of all Real Estate Assets acquired after
December 31, 2010 that are then owned by such Person or any of its Restricted Subsidiaries, plus
(iii) the book value of all assets (excluding Real Estate Assets, intangibles and deferred rent
receivable) of such Person and its Restricted Subsidiaries on a consolidated basis determined in
accordance with GAAP.

          “Total Unencumbered Assets” means, for any Person as of any date, the Total Assets of
such Person and its Restricted Subsidiaries as of such date, that do not secure any portion of
Secured Indebtedness, on a consolidated basis determined in

 

31

accordance with GAAP.

          “Trade Payables” means, with respect to any Person, any accounts payable or any other
indebtedness or monetary obligation to trade creditors created, assumed or Guaranteed by such
Person or any of its Subsidiaries arising in the ordinary course of business in connection with the
acquisition of goods or services.

          “Transaction Date” means, with respect to the Incurrence of any Indebtedness by the
Parent or any of its Restricted Subsidiaries, the date such Indebtedness is to be Incurred and,
with respect to any Restricted Payment, the date such Restricted Payment is to be made.

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

          “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” means

     (1) any Subsidiary of the Issuers that at the time of determination shall be
designated an Unrestricted Subsidiary by the Board of Directors of the Parent in the manner
provided below; and

     (2) any Subsidiary of an Unrestricted Subsidiary.

          Except during a Suspension Period, the Board of Directors of the Parent may designate any
Subsidiary (including any newly acquired or newly formed Subsidiary of the Issuers) to be an
Unrestricted Subsidiary unless such Subsidiary owns any Capital Stock of, or owns or holds any Lien
on any property of, the Parent or any of its Restricted Subsidiaries; provided, however, that:

     (i) any Guarantee by the Parent or any of its Restricted Subsidiaries of any
Indebtedness of the Subsidiary being so designated shall be deemed an
“Incurrence” of such Indebtedness and an “Investment” by the Parent
or such Restricted Subsidiary (or all, if applicable) at the time of such
designation;

     (ii) either (i) the Subsidiary to be so designated has total assets of $1,000
or less or (ii) if such Subsidiary has assets greater than $1,000, such designation
would be permitted under Section 4.09; and

     (iii) if applicable, the Incurrence of Indebtedness and the Investment
referred to in clause (i) of this proviso would be permitted under Section 4.08 and
Section 4.09.

 

32

The Board of Directors of the Parent may designate any Unrestricted Subsidiary to be a Restricted
Subsidiary; provided, however, that:

	 	(x)	 	no Default or Event of Default shall have
occurred and be continuing at the time of or after giving effect to
such designation; and
	 
	 	(y)	 	all Liens and Indebtedness of such
Unrestricted Subsidiary outstanding immediately after such
designation would, if Incurred at such time, have been permitted to
be Incurred (and shall be deemed to have been Incurred) for all
purposes of this Indenture.

          Any such designation by the Board of Directors of the Parent 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 Officer’s Certificate certifying that such designation complied with the
foregoing provisions.

          “Unsecured Indebtedness” means any Indebtedness of the Parent or any of its Restricted
Subsidiaries that is not Secured Indebtedness.

          “U.S. Government Obligations” means direct obligations of, obligations guaranteed by,
or participations in pools consisting solely of obligations of or obligations guaranteed by, the
United States of America for the payment of which obligations or guarantee the full faith and
credit of the United States of America is pledged and that are not callable or redeemable at the
option of the issuer thereof.

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

          “U.S. Person” has the meaning assigned to such term in Regulation S.

          “U.S.A. Patriot Act” means the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56, as
amended and signed into law October 26, 2001.

          “Voting Stock” means with respect to any Person, Capital Stock of any class or kind
ordinarily having the power to vote for the election of directors, managers or other voting members
of the governing body of such Person.

          “Wholly Owned” means, with respect to any Subsidiary of any Person, the ownership of
all of the outstanding Capital Stock of such Subsidiary (other than any director’s qualifying
shares or Investments by individuals mandated by applicable law) by such Person or one or more
Wholly Owned Subsidiaries of such Person.

 

33

          SECTION 1.02. Other Definitions.

	 	 	 	 	 
	Term	 	Defined in Section
	“144A Global Note”
	 	 	2.01	 
	“Additional Notes”
	 	 	2.02	 
	“Authentication Order”
	 	 	2.02	 
	“Covenant Defeasance”
	 	 	8.02	 
	“Event of Default”
	 	 	6.01	 
	“Excess Proceeds”
	 	 	4.11	 
	“Global Note”
	 	 	2.01	 
	“Guaranteed Indebtedness”
	 	 	4.14	 
	“Initial Global Notes”
	 	 	2.01	 
	“Initial Notes”
	 	 	2.02	 
	“Issuer” or “Issuers”
	 	Preamble
	“Legal Defeasance”
	 	 	8.02	 
	“Participants”
	 	 	2.15	 
	“Paying Agent”
	 	 	2.03	 
	“Physical Notes”
	 	 	2.01	 
	“purchase”
	 	 	4.09	(a)(3)
	“Refunding Capital Stock”
	 	 	4.09	(c)(3)
	“Registrar”
	 	 	2.03	 
	“Regulation S Global Note”
	 	 	2.01	 
	“Restricted Payments”
	 	 	4.09	 
	“Reversion Date”
	 	 	4.16	 
	“Suspension Period”
	 	 	4.16	 

          SECTION 1.03. Incorporation by Reference of Trust Indenture Act. Whenever this
Indenture refers to a provision of the Trust Indenture Act, such provision is incorporated by
reference in, and made a part of, this Indenture. The following Trust Indenture Act terms used in
this Indenture have the following meanings:

          “indenture securities” means the Notes.

          “obligor” on the indenture securities means the Issuers, any Guarantor or any other
obligor on the Notes.

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

          SECTION 1.04. Rules of Construction. Unless the context otherwise requires:

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

     (2) an accounting term not otherwise defined has the meaning assigned to

 

34

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) the words “including,” “includes” and similar words shall be deemed to be followed
by “without limitation”;

     (7) unsecured Indebtedness shall not be deemed to be subordinate or junior to secured
Indebtedness merely by virtue of its nature as unsecured Indebtedness;

     (8) secured Indebtedness shall not be deemed to be subordinate or junior to any other
secured Indebtedness merely because it has a junior priority with respect to the same
collateral;

     (9) the principal amount of any noninterest bearing or other discount security at any
date shall be the principal amount thereof that would be shown on a balance sheet of the
issuer dated such date prepared in accordance with GAAP;

     (10) the amount of any Preferred Stock that does not have a fixed redemption,
repayment or repurchase price shall be the maximum liquidation value of such Preferred
Stock;

     (11) all references to the date the Notes were originally issued shall refer to the
Issue Date, except as otherwise specified;

     (12) references to the Issuers mean either the Issuers or the applicable Issuer, as
the context requires, and references to an Issuer mean either such Issuer or the Issuers,
as the context requires; and

     (13) whenever in this Indenture there is mentioned, in any context, principal,
interest or any other amount payable under or with respect to any Notes, such mention shall
be deemed to include mention of the payment of Additional Interest, to the extent that, in
such context, Additional Interest is, was or would be payable in respect thereof pursuant
to Section 1 of the Notes.

ARTICLE TWO

The Notes

          SECTION 2.01. Form and Dating. The Notes and the Trustee’s

 

35

certificate of authentication shall be substantially in the form of Exhibit A hereto.
The Notes may have notations, legends or endorsements required by law, stock exchange rule or
usage. The Issuers 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 and show the date of its
authentication.

          The terms and provisions contained in the Notes shall constitute, and are hereby expressly
made, a part of this Indenture and, to the extent applicable, the Issuers, 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 offered and sold in reliance on Rule 144A shall be issued initially in the form of a
single permanent global Note in registered form, substantially in the form set forth in Exhibit
A (the “144A Global Note”), deposited with the Trustee, as custodian for the
Depository, duly executed by the Issuers and authenticated by the Trustee as hereinafter provided
and shall bear the legends set forth in Exhibit B.

          Notes offered and sold in offshore transactions in reliance on Regulation S shall be issued
initially in the form of a single permanent global Note in registered form, substantially in the
form of Exhibit A (the “Regulation S Global Note” and, together with the 144A
Global Note, the “Initial Global Notes”), deposited with the Trustee, as custodian for the
Depository, duly executed by the Issuers and authenticated by the Trustee as hereinafter provided
and shall bear the legends set forth in Exhibit B.

          Notes issued after the Issue Date shall be issued initially in the form of one or more global
Notes in registered form, substantially in the form set forth in Exhibit A, deposited with
the Trustee, as custodian for the Depository, duly executed by the Issuers and authenticated by the
Trustee as hereinafter provided and shall bear any legends required by applicable law (together
with the Initial Global Notes, the “Global Notes”) or as Physical Notes.

          The aggregate principal amount of the Global Notes may from time to time be increased or
decreased by adjustments made on the records of the Trustee, as custodian for the Depository, as
hereinafter provided. Notes issued in exchange for interests in a Global Note pursuant to Section
2.16 may be issued in the form of permanent certificated Notes in registered form in substantially
the form set forth in Exhibit A and bearing the applicable legends, if any (the
“Physical Notes”).

          Additional Notes ranking pari passu with the Initial Notes (as defined in Section 2.02) may be
created and issued from time to time by the Issuers without notice to or consent of the Holders and
shall be consolidated with and form a single class with the Initial Notes and shall have the same
terms as to status, redemption or otherwise (other than with respect to the purchase price thereof
and the date from which the interest accrues) as the Initial Notes; provided that the Issuers’
ability to issue Additional Notes shall be subject to the Issuers’ compliance with Section 4.08.
Except as described under Article Nine, the Initial Notes and any Additional Notes subsequently
issued under this Indenture will be treated as a single class for all purposes under this
Indenture, including

 

36

waivers, amendments, redemptions and offers to purchase, and shall vote together as one class
on all matters with respect to the Notes; provided further that if the Additional Notes are not
fungible with the Notes for U.S. Federal income tax purposes the Additional Notes will have a
separate CUSIP number, if applicable. Unless the context requires otherwise, references to “Notes”
for all purposes of this Indenture include any Additional Notes that are actually issued. With
respect to any Additional Notes issued subsequent to the date of this Indenture notwithstanding
anything else herein, (1) all references in Exhibit A herein and elsewhere in this
Indenture to a Registration Rights Agreement shall be to the registration rights agreement entered
into with respect to such Additional Notes, (2) any references in Exhibit A and elsewhere
in this Indenture to the Exchange Offer and Exchange Securities, and any other term related
thereto, shall be to such terms as they are defined in such registration rights agreement entered
into with respect to such Additional Notes, (3) all time periods described in the Notes with
respect to the registration of such Additional Notes shall be as provided in such Registration
Rights Agreement entered into with respect to such Additional Notes and (4) any Additional Interest
may, if set forth in the Registration Rights Agreement, be paid to the holders of the Additional
Notes immediately prior to the making or the consummation of the Exchange Offer regardless of any
other provisions regarding record dates herein.

          SECTION 2.02. Execution, Authentication and Denomination; Additional Notes; Exchange
Securities. One Officer of each of the Issuers (who shall have been duly authorized by all
requisite corporate or other entity actions) shall sign the Notes for each Issuer by manual,
facsimile, .pdf attachment or other electronically transmitted 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 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 Trustee shall authenticate (i) on the Issue Date, Notes for original issue in the
aggregate principal amount not to exceed $200,000,000 (the “Initial Notes”), (ii)
additional Notes (the “Additional Notes”) in an unlimited amount (so long as not otherwise
prohibited by the terms of this Indenture, including Section 4.08) and (iii) Exchange Securities
(x) in exchange for a like principal amount of Initial Notes or (y) in exchange for a like
principal amount of Additional Notes in each case upon a written order of the Issuers in the form
of a certificate of an Officer of each Issuer (an “Authentication Order”). Each such
Authentication Order 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 Securities
or Additional Notes and whether the Notes are to be issued as certificated Notes or Global Notes or
such other information as the Trustee may reasonably request.

 

37

          All Notes issued under this Indenture shall be treated as a single class for all purposes
under this Indenture. The Additional Notes shall bear any legend required by applicable law.

          The Trustee may appoint an authenticating agent reasonably acceptable to the Issuers 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 agent. An authenticating agent has
the same rights as an Agent to deal with the Issuers and Affiliates of the Issuers.

          The Notes shall be issuable only in registered form without coupons in denominations of $2,000
and integral multiples of $1,000 in excess thereof.

          SECTION 2.03. Registrar and Paying Agent. The Issuers shall maintain or cause to be
maintained an office or agency in the United States of America where (a) Notes may be presented or
surrendered for registration of transfer or for exchange (“Registrar”), (b) Notes may,
subject to Section 2 of the Notes, be presented or surrendered for payment (“Paying Agent”)
and (c) notices and demands to or upon the Issuers in respect of the Notes and this Indenture may
be served. The Issuers may also from time to time designate one or more other offices or agencies
where the Notes may be presented or surrendered for any or all such purposes and may from time to
time rescind such designations; provided, however, that no such designation or rescission shall in
any manner relieve the Issuers of their obligation to maintain or cause to be maintained an office
or agency in the United States of America, for such purposes. The Issuers may act as Registrar or
Paying Agent, except that for the purposes of Articles Three and Eight and Sections 4.07 and 4.11,
neither the Issuers nor any Affiliate of the Issuers shall act as Paying Agent. The Registrar, as
an agent of the Issuers, shall keep a register, including ownership, of the Notes and of their
transfer and exchange. The Issuers, upon 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
“Registrar” includes any co-registrar and the term “Paying Agent” includes any additional
paying agent. The Issuers initially appoint the Trustee as Registrar and Paying Agent until such
time as the Trustee has resigned or a successor has been appointed.

          The Issuers shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture, which agreement shall implement the provisions of this Indenture that relate to
such Agent. The Issuers shall notify the Trustee, in advance, of the name and address of any such
Agent. If the Issuers fail to maintain a Registrar or Paying Agent, the Trustee shall act as such.

          SECTION 2.04. Paying Agent To Hold Assets in Trust. The Issuers shall require each
Paying Agent other than the Trustee or the Issuers or any Subsidiary of the Issuers to agree in
writing that each Paying Agent shall hold in trust for the benefit of Holders or the Trustee all
assets held by the Paying Agent for the payment of principal of, or interest on, the Notes (whether
such assets have been distributed to it by the Issuers or any other obligor on the Notes), and
shall notify the Trustee of any Default by the

 

38

Issuers (or any other obligor on the Notes) in making any such payment. The Issuers 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 distribution to the Trustee of
all assets that shall have been delivered by the Issuers 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 Holders.
If the Trustee is not the Registrar, the Issuers shall furnish to the Trustee at least two Business
Days prior to each Interest Payment Date and at such other times as the Trustee may request in
writing a list, in such form and as of such date as the Trustee may reasonably require, of the
names and addresses of Holders, which list may be conclusively relied upon by the Trustee.

          SECTION 2.06. Transfer and Exchange. Subject to Sections 2.15 and 2.16, 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
shall register the transfer or make the exchange as requested if its requirements for such
transaction are met; provided, however, that the Notes surrendered for transfer or exchange shall
be duly endorsed or accompanied by a written instrument of transfer in form satisfactory to the
Issuers and the Registrar, duly executed by the Holder thereof or his or her attorney duly
authorized in writing. To permit registrations of transfers and exchanges, the Issuers shall
execute and the Trustee shall authenticate Notes at the Registrar’s request. No service charge
shall be made for any registration of transfer or exchange, but the Issuers may require payment of
a sum sufficient to cover any transfer tax or similar governmental charge payable in connection
therewith.

          Without the prior written consent of the Issuers, the Registrar shall not be required to
register the transfer of or exchange of any Note (i) during a period beginning at the opening of
business 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, (ii) selected for redemption in whole or in part pursuant to
Article Three, except the unredeemed portion of any Note being redeemed in part and (iii) beginning
at the opening of business on any Record Date and ending on the close of business on the related
Interest Payment Date.

          Any Holder of a beneficial interest in a Global Note shall, by acceptance of such beneficial
interest, agree that transfers of beneficial interests in such Global Notes may be effected only
through a book-entry system maintained by the Holder of such Global Note (or its agent) in
accordance with the applicable legends thereon, and that ownership of a beneficial interest in the
Note shall be required to be reflected in a book-entry system.

          SECTION 2.07. Replacement Notes. If a mutilated Note is

 

39

surrendered to the Trustee or if the Holder of a Note claims that the Note has been lost,
destroyed or wrongfully taken, the Issuers shall issue and the Trustee shall authenticate, upon
receipt of an Authentication Order, a replacement Note if the Trustee’s requirements are met. Such
Holder shall provide an indemnity bond or other indemnity, sufficient in the judgment of both the
Issuers and the Trustee, to protect the Issuers, the Trustee or any Agent from any loss that any of
them may suffer if a Note is replaced. The Issuers may charge such Holder for their out-of-pocket
expenses in replacing a Note pursuant to this Section 2.07, including fees and expenses of counsel
and of the Trustee. Every replacement Note is an additional obligation of the Issuers.

          The provisions of this Section 2.07 are exclusive and shall preclude (to the extent lawful)
all other rights and remedies with respect to the replacement or payment of lost, destroyed or
wrongfully taken Notes.

          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. A Note does not cease to
be outstanding because the Issuers, the Guarantors or any of their respective Affiliates hold the
Note (subject to the provisions of Section 2.09).

          If a Note is replaced pursuant to Section 2.07 (other than a mutilated Note surrendered for
replacement), it ceases to be outstanding unless a Responsible Officer of 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 the principal amount of any Note is considered paid under Section 4.01, it ceases to be
outstanding and interest ceases to accrue. If on a Redemption Date or the Stated Maturity the
Trustee or Paying Agent (other than the Issuers or an Affiliate thereof) holds U.S. Legal Tender or
U.S. Government Obligations sufficient to pay all of the principal and interest due on the Notes
payable on that date, then on and after that date such Notes cease to be outstanding and interest
on them ceases to accrue.

          SECTION 2.09. Treasury Notes. In determining whether the Holders of the required
principal amount of Notes have concurred in any direction, waiver or consent, Notes owned by the
Issuers or any of their Affiliates shall be disregarded as required by the Trust Indenture Act,
except that, for the purposes of determining whether the Trustee shall be protected in relying on
any such direction, waiver or consent, only Notes that a Responsible Officer of the Trustee
actually knows are so owned shall be disregarded. Notes so owned which have been pledged in good
faith shall not be disregarded if the pledgee establishes to the satisfaction of the Trustee the
pledgee’s right to deliver any such direction, waiver or consent with respect to the Notes and that
the pledgee is not the Issuers or any obligor upon the Notes or any Affiliate of the Issuers or of
such other obligor.

          SECTION 2.10. Temporary Notes. Until definitive Notes are ready

 

40

for delivery, the Issuers may prepare and the Trustee shall authenticate temporary Notes.
Temporary Notes shall be substantially in the form of definitive Notes but may have variations that
the Issuers consider appropriate for temporary Notes. Without unreasonable delay, the Issuers
shall prepare and the Trustee shall authenticate definitive Notes in exchange for temporary Notes.
Until such exchange, temporary Notes shall be entitled to the same rights, benefits and privileges
as definitive Notes. Notwithstanding the foregoing, so long as the Notes are represented by a
Global Note, such Global Note may be in typewritten form.

          SECTION 2.11. Cancellation. The Issuers at any time may deliver Notes 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 payment. The Trustee, or at the direction of the
Trustee, the Registrar or the Paying Agent (other than the Issuers or a Subsidiary of the Issuers),
and no one else, shall cancel and, at the written direction of the Issuers, shall dispose of all
Notes surrendered for transfer, exchange, payment or cancellation in accordance with its customary
procedures. Subject to Section 2.07, the Issuers may not issue new Notes to replace Notes that
they have paid or delivered to the Trustee for cancellation. If the Issuers or any Guarantor 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.

          SECTION 2.12. Defaulted Interest. If the Issuers default in a payment of interest on
the Notes, they shall pay the defaulted interest, plus (to the extent lawful) any interest payable
on the defaulted interest, in any lawful manner. The Issuers may pay the defaulted interest to the
persons who are Holders on a subsequent special record date, which date shall be the
15th day next preceding the date fixed by the Issuers for the payment of defaulted
interest or the next succeeding Business Day if such date is not a Business Day. At least 15 days
before any such subsequent special record date, the Issuers shall mail to each Holder, with a copy
to the Trustee, a notice that states the subsequent special record date, the payment date and the
amount of defaulted interest, and interest payable on such defaulted interest, if any, to be paid.

          SECTION 2.13. CUSIP and ISIN Numbers. The Issuers in issuing the Notes may use
“CUSIP” or “ISIN” numbers, and if so, the Trustee shall use the “CUSIP” or “ISIN” numbers in
notices of redemption or exchange as a convenience to Holders; provided, however, that any such
notice may state that no representation is made as to the correctness or accuracy of the “CUSIP” or
“ISIN” numbers 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 Issuers shall promptly notify the Trustee
of any change in the “CUSIP” or “ISIN” numbers.

          SECTION 2.14. [Reserved].

          SECTION 2.15. Book-Entry Provisions for Global Notes. (a) The Global Notes initially
shall (i) be registered in the name of the Depository or the nominee of such Depository, (ii) be
delivered to the Trustee as custodian for such Depository and

 

41

(iii) bear legends as set forth in Exhibit B, as applicable.

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

          (b) Transfers of Global Notes shall be limited to transfers in whole, but not in part, to the
Depository, its successors or their respective nominees. Interests of beneficial owners in the
Global Notes may be transferred or exchanged for Physical Notes in accordance with the rules and
procedures of the Depository and the provisions of Section 2.16; provided, however, that prior to
the expiration of the Restricted Period, transfers of beneficial interests in the Regulation S
Global Note may not be made to a U.S. Person or for the account or benefit of a U.S. Person. In
addition, Physical Notes shall be transferred to all beneficial owners in exchange for their
beneficial interests in Global Notes if (i) the Depository notifies the Issuers that it is
unwilling or unable to act as Depository for any Global Note, the Issuers so notify the Trustee in
writing and a successor Depository is not appointed by the Issuers within 90 days of such notice or
(ii) a Default or Event of Default has occurred and is continuing and the Registrar has received a
written request from any owner of a beneficial interest in a Global Note to issue Physical Notes.
Upon any issuance of a Physical Note in accordance with this Section 2.15(b) the Trustee is
required to register such Physical Note in the name of, and cause the same to be delivered to, such
person or persons (or the nominee of any thereof). All such Physical Notes shall bear the
applicable legends, if any.

          Notwithstanding the foregoing, a beneficial interest in the Regulation S Global Note may not
be exchanged for a Physical Note or transferred to a Person who takes delivery thereof in the form
of a Physical Note prior to (A) the expiration of the Restricted Period and (B) the receipt by the
Registrar of a certification, pursuant to Rule 903(b)(3)(ii)(B) under the Securities Act (except in
the case of a “Distributor” as defined in Rule 902(d) under the Securities Act) and substantially
in the form of Exhibit C hereto, of beneficial ownership of the Notes by a non-U.S. Person
or a U.S. Person who purchased the Notes in a transaction that did not require registration 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) In connection with any transfer or exchange of a portion of the beneficial interest in a
Global Note to beneficial owners pursuant to paragraph (b) of this Section 2.15, 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 such Global Note in an amount equal to the principal
amount of the beneficial interest in the Global

 

42

Note to be transferred, and the Issuers shall execute, and the Trustee shall authenticate and
deliver, one or more Physical Notes of authorized denominations in an aggregate principal amount
equal to the principal amount of the beneficial interest in the Global Note so transferred.

          (d) In connection with the transfer of a Global Note as an entirety to beneficial owners
pursuant to paragraph (b) of this Section 2.15, such Global Note shall be deemed to be surrendered
to the Trustee for cancellation, and (i) the Issuers shall execute and (ii) the Trustee shall upon
written instructions from the Issuers authenticate and deliver, to each beneficial owner identified
by the Depository in exchange for its beneficial interest in such Global Note, an equal aggregate
principal amount of Physical Notes of authorized denominations.

          (e) Any Physical Note constituting a Restricted Security delivered in exchange for an
interest in a Global Note pursuant to paragraph (b) or (c) of this Section 2.15 shall, except as
otherwise provided by Section 2.16, bear the Private Placement Legend.

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

          SECTION 2.16. Special Transfer and Exchange Provisions. (a) Transfers to
QIBs. The following provisions shall apply with respect to the registration of any proposed
transfer of a Restricted Security to a QIB:

     (i) the Registrar shall register the transfer of any Restricted Security,
whether or not such Note bears the Private Placement Legend, if such transfer is
being made by a proposed transferor who has checked the box provided for on the
applicable Note stating 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 applicable Note stating 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 Issuers 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;

     (ii) subject to compliance with paragraph (i) above, if the proposed
transferee is a Participant and the Notes to be transferred consist of Physical
Notes which after transfer are to be evidenced by an interest in the 144A Global
Note, upon receipt by the Registrar of the Physical Note

 

43

and written instructions given in accordance with the Depository’s and the
Registrar’s procedures, the Registrar shall register the transfer and reflect on
its book and records the date and an increase in the principal amount of the 144A
Global Note in an amount equal to the principal amount of Physical Notes to be
transferred, and the Registrar shall cancel the Physical Notes so transferred; and

     (iii) subject to compliance with paragraph (i) above, if the proposed
transferor is a Participant seeking to transfer an interest in the Regulation S
Global Note which after transfer are to be evidenced by an interest in the 144A
Global Note, upon receipt by the Registrar of written instructions given in
accordance with the Depository’s and the Registrar’s procedures, the Registrar
shall register the transfer and reflect on its books and records the date and (A) a
decrease in the principal amount of the Regulation S Global Note in an amount equal
to the principal amount of the Notes to be transferred and (B) an increase in the
principal amount of the 144A Global Note in an amount equal to the principal amount
of the Notes to be transferred.

          (b) Transfers to Non-U.S. Persons. The following provisions shall apply with respect
to any transfer of a Restricted Security to a Non-U.S. Person under Regulation S:

     (i) the Registrar shall register any proposed transfer of a Restricted
Security to a Non-U.S. Person upon receipt of a certificate substantially in the
form of Exhibit C from the proposed transferor and such certifications,
legal opinions and other information as the Trustee or the Issuers may reasonably
request; and

     (ii) (a) if the proposed transferor is a Participant holding a beneficial
interest in the 144A Global Note or the Note to be transferred consists of Physical
Notes, upon receipt by the Registrar of (x) the documents required by paragraph (i)
and (y) instructions in accordance with the Depository’s and the Registrar’s
procedures, the Registrar shall reflect on its books and records the date and a
decrease in the principal amount of the 144A Global Note in an amount equal to the
principal amount of the beneficial interest in the 144A Global Note to be
transferred or cancel the Physical Notes to be transferred and (b) if the proposed
transferee is a Participant, upon receipt by the Registrar of instructions given in
accordance with the Depository’s 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 Regulation S Global Note in an amount equal to the principal amount
of the 144A Global Note or the Physical Notes, as the case may be, to be
transferred.

          (c) Exchange Offer. Upon the occurrence of the Exchange Offer in accordance with the
Registration Rights Agreement, the Issuers shall issue and, upon

 

44

receipt of an Authentication Order in accordance with Section 2.02, the Trustee shall
authenticate one or more Global Notes and/or Physical Notes not bearing the Private Placement
Legend in an aggregate principal amount equal to the aggregate principal amount of the beneficial
interests in the Initial Global Notes or Physical Notes, as the case may be, tendered for
acceptance in accordance with the Exchange Offer and accepted for exchange in the Exchange Offer.

          (d) Restrictions on Transfer and Exchange of Global Notes. Notwithstanding any other
provisions of this Indenture, a Global Note may not be transferred as a whole except 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 or by the Depository or any such nominee to a successor
Depository or a nominee of such successor Depository.

          (e) Private Placement Legend. Upon the transfer, exchange or replacement of Notes
not bearing the Private Placement Legend, unless otherwise required by applicable law, 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) there is delivered to the Trustee an
Opinion of Counsel reasonably satisfactory to the Issuers 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 or (ii) such Note has been offered and sold
(including pursuant to the Exchange Offer) pursuant to an effective registration statement under
the Securities Act.

          (f) 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 2.15 or Section 2.16. The Issuers 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 Participants
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.

 

45

          The Trustee shall have no responsibility for the actions or omissions of the Depository, or
the accuracy of the books and records of the Depository.

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

ARTICLE THREE

Redemption

          SECTION 3.01. Notices to Trustee. The Notes may be redeemed, in whole, or from time
to time in part, subject to the conditions and at the redemption prices set forth in Section 5 and
Section 6 of the form of Notes set forth in Exhibit A hereto, which is hereby incorporated
by reference and made a part of this Indenture, together with accrued and unpaid interest to the
Redemption Date. If the Issuers elect to redeem Notes pursuant to Section 5 or Section 6 of the
Notes, they shall notify the Trustee in writing of the Redemption Date, the Redemption Price and
the principal amount of Notes to be redeemed. The Issuers shall give notice of redemption to the
Trustee at least 5 days prior to the requested giving of notice pursuant to Section 3.03 (unless a
shorter notice shall be agreed to by the Trustee in writing), together with such documentation and
records as shall enable the Trustee to select the Notes to be redeemed.

          SECTION 3.02. Selection of Notes To Be Redeemed. If less than all of the Notes are to
be redeemed at any time pursuant to Section 5 or Section 6 of the Notes, the Trustee shall select
Notes for redemption as follows:

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

     (y) on a pro rata basis, by lot or by such method as the Trustee shall deem fair and
appropriate;

provided, however, that, in the case of such redemption pursuant to Section 6 of the Notes, the
Trustee shall select the Notes on a pro rata basis to the extent practicable, by

 

46

lot or such other method as the Trustee in its sole discretion shall deem to be fair and
appropriate, unless another method is required by law or applicable exchange or depositary
requirements (subject to the procedures of the Depository).

          No Notes in a principal amount of $2,000 or less shall be redeemed in part.

          SECTION 3.03. Notice of Redemption. At least 30 days but not more than 60 days before
a Redemption Date, the Issuers shall mail a notice of redemption by first class mail, postage
prepaid, or as otherwise provided in accordance with the procedures of the Depository, to each
Holder whose Notes are to be redeemed at its registered address, except that redemption notices may
be mailed more than 60 days prior to a Redemption Date if the notice is issued in connection with a
defeasance of the Notes or a satisfaction and discharge of this Indenture pursuant to Article Eight
hereof. Notices of redemption may be given prior to the completion of an Equity Offering, and any
redemption or notice may, at the Issuers’ discretion, be subject to the completion of an Equity
Offering. At the Issuers’ request, the Trustee shall forward the notice of redemption in the
Issuers’ name and at the Issuers’ expense. Each notice for redemption shall identify the Notes
(including the CUSIP or ISIN number) to be redeemed and shall state:

     (1) the Redemption Date;

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

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

     (4) that Notes called for redemption shall be surrendered to the Paying Agent to
collect the Redemption Price plus accrued interest, if any;

     (5) that, unless the Issuers default in making the redemption payment, interest on
Notes called for redemption ceases to accrue on and after the Redemption Date, and the only
remaining right of the Holders of such Notes is to receive payment of the Redemption Price
upon surrender to the Paying Agent of the Notes redeemed;

     (6) 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 and
cancellation of such Note, a new Note or Notes in aggregate principal amount equal to the
unredeemed portion thereof will be issued;

     (7) 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; and

     (8) the Section of the Notes or this Indenture, as applicable, pursuant to

 

47

which the Notes are to be redeemed.

          The notice, if mailed in a manner herein provided, shall be conclusively presumed to have been
given, whether or not the Holder receives such notice. In any case, failure to give such notice by
mail or any defect in the notice to the Holder of any Note designated for redemption in whole or in
part shall not affect the validity of the proceedings for the redemption of any other Note. Except
as otherwise provided in this Article Three, notices of redemption may not be conditional.

          At the Issuers’ request, the Trustee shall give the notice of redemption in the name of the
Issuers and at their expense; provided that the Issuers shall have delivered to the Trustee, at
least five Business Days before notice of redemption is required to be mailed or caused to be
mailed to Holders pursuant to this Section 3.03 (unless a shorter notice shall be agreed to by the
Trustee), an Officer’s Certificate requesting that the Trustee give such notice and setting forth
the information to be stated in such notice as provided in the first paragraph of this Section
3.03.

          SECTION 3.04. Effect of Notice of Redemption. Once notice of redemption is mailed in
accordance with Section 3.03, Notes called for redemption become due and payable on the Redemption
Date and at the Redemption Price plus accrued interest, if any. Upon surrender to the Trustee or
Paying Agent, such Notes called for redemption shall be paid at the Redemption Price (which shall
include accrued interest thereon to, but not including, the Redemption Date), but installments of
interest, 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. On and after the Redemption Date
interest shall cease to accrue on Notes or portions thereof called for redemption unless the
Issuers shall have not complied with their obligations pursuant to Section 3.05.

          SECTION 3.05. Deposit of Redemption Price. On or before 11:00 a.m. New York City time
(or such later time as has been agreed to by the Paying Agent) on the Redemption Date, the Issuers
shall deposit with the Paying Agent U.S. Legal Tender sufficient to pay the Redemption Price of,
plus accrued and unpaid interest, if any, on, all Notes to be redeemed on that date. The Paying
Agent shall promptly return to the Issuers any money deposited with the Paying Agent by the Issuers
in excess of the amounts necessary to pay the Redemption Price of, and accrued and unpaid interest
on, all Notes to be redeemed.

          If the Issuers comply with the preceding paragraph, then, unless the Issuers default in the
payment of such Redemption Price plus accrued interest, if any, interest on the Notes to be
redeemed will cease to accrue on and after the applicable Redemption Date, whether or not such
Notes are presented for payment, and the only remaining right of the Holders of such Notes after
such Redemption Date shall be to receive payment of such Redemption Price plus accrued interest, if
any, upon surrender to the Paying Agent of the Notes to be redeemed. If any Note called for
redemption shall not be so paid upon surrender for redemption because of the failure of the Issuers
to comply with the preceding paragraph, interest shall be paid on the unpaid principal, from

 

48

the Redemption Date until such principal is paid, and to the extent lawful, on any interest
not paid on such unpaid principal, in each case at the rate provided in the Notes and in Section
4.01.

          SECTION 3.06. Notes Redeemed in Part. If any Note is to be redeemed in part only, the
notice of redemption that relates to such Note shall state the portion of the principal amount
thereof to be redeemed. A new Note or Notes in principal amount equal to the unredeemed portion of
the original Note or Notes shall be issued in the name of the Holder thereof upon surrender and
cancellation of the original Note or Notes. It is understood that, notwithstanding anything in
this Indenture to the contrary, only an Authentication Order and not an Opinion of Counsel or
Officer’s Certificate is required for the Trustee to authenticate such new Note.

          SECTION 3.07. Mandatory Redemption. The Issuers shall not be required to make any
mandatory redemption or sinking fund payments with respect to the Notes.

          SECTION 3.08. Issuers Shall Be Entitled to Acquire Notes. The Issuers or any of their
Affiliates (or any Person acting on behalf of the Issuers or any of their Affiliates) shall be
entitled at any time and from time to time to acquire the Notes by means other than redemption,
including by tender offer, open market purchases, negotiated transactions or otherwise, so long as
such acquisition is not prohibited by applicable securities laws or regulations or the terms of
this Indenture. In accordance with, and subject to, Section 2.11, the Issuers shall be entitled to
deliver such acquired Notes to the Trustee for cancellation.

ARTICLE FOUR

Covenants

          SECTION 4.01. Payment of Notes. The Issuers shall pay the principal of, premium, if
any, and interest on the Notes in the manner provided in the Notes, the Registration Rights
Agreement and this Indenture. An installment of principal of, or interest on, the Notes shall be
considered paid on the date it is due if the Trustee or Paying Agent (other than the Issuers or an
Affiliate thereof) holds on that date U.S. Legal Tender designated for and sufficient to pay the
installment. Interest on the Notes will be computed on the basis of a 360-day year comprised of
twelve 30-day months.

          The Issuers shall pay interest on overdue principal (including post petition interest in a
proceeding under any Bankruptcy Law), and overdue interest, to the extent lawful, at the same rate
per annum borne by the Notes.

          SECTION 4.02. Maintenance of Office or Agency. The Issuers shall maintain in the
United States of America, the office or agency required under Section 2.03 (which may be an office
of the Trustee or an affiliate of the Trustee or Registrar). The Issuers shall give prompt written
notice to the Trustee of the location, and any change in the location, of such office or agency.
If at any time the Issuers shall

 

49

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
address of the Corporate Trust Office.

          The Issuers may also, from time to time, designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may from time to time
rescind such designations. The Issuers shall give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other office or agency.

          The Issuers hereby initially designate The Bank of New York Mellon Trust Company, N.A.,
located at 2 N. LaSalle, Suite 1020, Chicago, IL 60602 Attention: Corporate Trust
Administration, as such office of the Issuers in accordance with Section 2.03.

          SECTION 4.03. Corporate Existence. Except as otherwise permitted by Articles Five and
Ten, the Parent and the Issuers shall do or cause to be done all things necessary to preserve and
keep in full force and effect their corporate, partnership, limited liability company or other
existence, as applicable, and the corporate, partnership, limited liability company or other
existence, as applicable, of each of the Restricted Subsidiaries of the Parent in accordance with
the respective organizational documents of each such Restricted Subsidiary and the related material
rights (charter and statutory) and material franchises of the Parent, the Issuers and each
Restricted Subsidiary of the Parent; provided, however, that the Parent and the Issuers shall not
be required to preserve any such right, franchise or corporate or other existence with respect to
themselves or any Restricted Subsidiary if the Board of Directors of the Parent or any officer of
the Parent shall determine that the preservation thereof is no longer necessary or desirable in the
conduct of the business of the Parent, the Issuers and their Restricted Subsidiaries, taken as a
whole, and that the loss thereof could not reasonably be expected to have a material adverse effect
on the ability of the Issuers to perform their obligations hereunder; and provided, further,
however, that the foregoing shall not prohibit a sale, transfer, conveyance, lease or disposal of a
Restricted Subsidiary or any of the Parent’s or any Restricted Subsidiary’s assets in compliance
with the terms of this Indenture.

          SECTION 4.04. [Reserved].

          SECTION 4.05. Compliance Certificate; Notice of Default. (a) The Parent and the
Issuers shall each deliver to the Trustee, within 120 days after each December 31, commencing with
December 31, 2011, an Officer’s Certificate signed by the principal executive officer, principal
financial officer or principal accounting officer of the Parent stating that a review of the
activities of the Parent and its Restricted Subsidiaries has been made under the supervision of the
signing Officer with a view to determining whether the Parent and its Restricted Subsidiaries have
kept, observed, performed and fulfilled their obligations under this Indenture and further stating,
as to each such Officer signing such certificate, that, to the best of such Officer’s knowledge,
the Parent and its Restricted Subsidiaries during such preceding fiscal year have kept, observed,
performed and fulfilled each and every such covenant and no Default occurred

 

50

during such year and at the date of such certificate there is no Default that has occurred and
is continuing or, if such signing Officer does know of such Default, the certificate shall specify
such Default and what action, if any, the Issuers are taking or propose to take with respect
thereto.

          (b) The Issuers shall deliver to the Trustee within 30 days after the Issuers become aware
(unless such Default has been cured before the end of the 30-day period) of the occurrence of any
Default an Officer’s Certificate specifying the Default and what action, if any, the Issuers are
taking or propose to take with respect thereto.

          SECTION 4.06. Waiver of Stay, Extension or Usury Laws. Each of the Issuers and each
Guarantor covenants (to the extent permitted by applicable 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 Issuer or such
Guarantor from paying all or any portion of the principal of and/or interest on the Notes or the
Guaranty of any such Guarantor as contemplated herein, wherever enacted, now or at any time
hereafter in force, or which may affect the covenants or the performance of this Indenture, and (to
the extent permitted by applicable law) each hereby expressly waives 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 Trustee, but will suffer and permit the execution of every such power as
though no such law had been enacted.

          SECTION 4.07. Change of Control. (a) The Issuers shall commence, no later than 30
days after the occurrence of a Change of Control, and consummate an Offer to Purchase for all Notes
then outstanding, at a purchase price equal to 101% of the principal amount of the Notes, plus
accrued and unpaid interest, if any, to the Payment Date. To the extent that the provisions of any
securities laws or regulations conflict with the Change of Control provisions of this Indenture,
the Issuers shall comply with the applicable securities laws and regulations and shall not be
deemed to have breached their obligations under the Change of Control provisions of this Indenture
by virtue of such compliance.

          (b) The Issuers shall not be required to make an Offer to Purchase upon a Change of Control
if a third party makes the Offer to Purchase in the manner, at the times and otherwise in
compliance with the requirements set forth in this Indenture applicable to a Offer to Purchase made
by the Issuers and purchases all Notes validly tendered and not withdrawn under such Offer to
Purchase or if notice of redemption has been given pursuant to Section 5 or 6 of the Notes.
Notwithstanding anything to the contrary contained herein, an Offer to Purchase may be made in
advance of a Change of Control, subject to one or more conditions precedent, including, but not
limited to, the consummation of such Change of Control, if a definitive agreement is in place for
the Change of Control at the time the Offer to Purchase is made.

          SECTION 4.08. Limitation on Indebtedness. (a) The Parent shall not Incur any
Indebtedness (including Acquired Indebtedness) other than the guarantees issued on the Issue Date,
other Indebtedness existing on the Issue Date, and guarantees of

 

51

Indebtedness of the Issuers or any other Restricted Subsidiary of the Parent; provided such
Indebtedness is permitted by and Incurred in accordance with this Section 4.08. The Parent shall
not permit any of its Restricted Subsidiaries (including the Issuers) to Incur any Indebtedness
(including Acquired Indebtedness) if, immediately after giving effect to the Incurrence of such
additional Indebtedness and the receipt and application of the proceeds therefrom, the aggregate
principal amount of all outstanding Indebtedness of the Parent and its Restricted Subsidiaries on a
consolidated basis is greater than 60% of Adjusted Total Assets.

          (b) The Issuers shall not, and shall not permit any of their Restricted Subsidiaries to,
Incur any Secured Indebtedness (including Acquired Indebtedness) if, immediately after giving
effect to the Incurrence of such additional Secured Indebtedness and the receipt and application of
the proceeds therefrom, the aggregate principal amount of all outstanding Secured Indebtedness of
the Issuers and their Restricted Subsidiaries on a consolidated basis is greater than 40% of
Adjusted Total Assets.

          (c) The Parent shall not permit any of its Restricted Subsidiaries (including the Issuers) to
Incur any Indebtedness (including Acquired Indebtedness); provided, however, that the Issuers or
any of the Subsidiary Guarantors may Incur Indebtedness (including Acquired Indebtedness) if, after
giving effect to the Incurrence of such Indebtedness and the receipt and application of the
proceeds therefrom, the Interest Coverage Ratio of the Issuers and their Restricted Subsidiaries on
a consolidated basis would be at least 2.0 to 1.0.

          (d) Notwithstanding paragraph (a), (b) or (c) above, the Parent or any of its Restricted
Subsidiaries (except as specified below) may Incur each and all of the following:

     (1) Indebtedness of the Parent, the Issuers or any of the Subsidiary Guarantors
outstanding under any Credit Facility at any time in an aggregate principal amount not to
exceed $400,000,000;

     (2) Indebtedness of the Issuers or any of their Restricted Subsidiaries owed to:

     (i) the Issuers evidenced by an unsubordinated promissory note, or

     (ii) any Restricted Subsidiary;

provided, however, that any event that results in any such Restricted Subsidiary ceasing to be a
Restricted Subsidiary of the Issuers or any subsequent transfer of such Indebtedness (other than to
the Issuers or any other Restricted Subsidiary of the Issuers) shall be deemed, in each case, to
constitute an Incurrence of such Indebtedness not permitted by this clause (2);

     (3) Indebtedness of the Issuers or any of their Restricted Subsidiaries under Currency
Agreements and Interest Rate Agreements; provided that such agreements (x) are designed
primarily to protect the Issuers or any of their

 

52

Restricted Subsidiaries against fluctuations in foreign currency exchange rates or
interest rates (whether fluctuations of fixed to floating rate interest or floating to
fixed rate interest) and (y) do not increase the Indebtedness of the obligor outstanding at
any time other than as a result of fluctuations in foreign currency exchange rates or
interest rates or by reason of fees, indemnities and compensation payable thereunder;

     (4) Indebtedness of the Issuers or any of the Subsidiary Guarantors, to the extent the
net proceeds thereof are promptly:

     (i) used to purchase Notes tendered in an Offer to Purchase made as a result
of a Change of Control,

     (ii) used to redeem all the Notes pursuant to Section 5 of the Notes,

     (iii) deposited to defease the Notes as described in Sections 8.02 and 8.03,
or

     (iv) deposited to discharge the obligations under the Notes and this Indenture
as described in Section 8.01;

     (5) (i) Guarantees by the Parent of Indebtedness of the Issuers or any of the
Subsidiary Guarantors, (ii) Guarantees by any Restricted Subsidiaries of the Issuers of
Indebtedness of the Issuers; provided the guarantee of such Indebtedness is permitted by
and made in accordance with Section 4.14, and (iii) any Guarantees by a Subsidiary
Guarantor of any Indebtedness of any other Subsidiary Guarantor;

     (6) Existing Indebtedness;

     (7) Indebtedness represented by the Notes and the Guaranties issued on the Issue Date
and the exchange notes and related exchange guarantees to be issued in exchange for such
Notes and Guaranties pursuant to the Registration Rights Agreement;

     (8) Indebtedness consisting of obligations to pay insurance premiums incurred in the
ordinary course of business;

     (9) Indebtedness in respect of any bankers’ acceptance, bank guarantees, letter of
credit, warehouse receipt or similar facilities, and reinvestment obligations related
thereto, entered into in the ordinary course of business;

     (10) Indebtedness in respect of workers’ compensation claims, self-insurance
obligations, indemnities, bankers’ acceptances, performance, completion and surety bonds or
guarantees and similar types of obligations in the ordinary course of business;

     (11) Indebtedness represented by cash management obligations and other

 

53

obligations in respect of netting services, automatic clearinghouse arrangements,
overdraft protections and similar arrangements in each case in connection with deposit
accounts;

     (12) Indebtedness supported by a letter of credit procured by the Issuers or their
Restricted Subsidiaries in a principal amount not in excess of the stated amount of such
letter of credit and where the underlying Indebtedness would otherwise be permitted;

     (13) Guarantees (a) incurred in the ordinary course of business or (b) constituting
Investments that are (i) included in the calculation of the amount available to be made as
Restricted Payments under Section 4.09(a)(4)(C), (ii) made pursuant to Section 4.09(c)(11)
or (iii) made in reliance on clause (9) or (18) of the definition of “Permitted
Investments”;

     (14) Permitted Refinancing Indebtedness incurred in exchange for, or the net proceeds
of which are used to refund, refinance or replace, Indebtedness (other than intercompany
Indebtedness) that was permitted by this Indenture to be incurred under the provisions of
Sections 4.08(a), (b) or (c) or clauses (6), (7), (14), (15) or (16) of this Section
4.08(d);

     (15) Indebtedness of Restricted Subsidiaries that are not Subsidiary Guarantors in an
aggregate principal amount at any time outstanding not to exceed, when taken together with
all then outstanding net Investments in Unrestricted Subsidiaries and joint ventures made
in reliance on clause (9) of the definition of “Permitted Investments,” the greater of
$20,000,000 and 2.0% of the Adjusted Total Assets of such Restricted Subsidiaries;
provided, however, that any Permitted Refinancing Indebtedness incurred under clause (14)
above in respect of Indebtedness incurred under this clause (15) shall be deemed to have
been incurred under this clause (15) for purposes of determining the amount of Indebtedness
that may at any time be incurred under this clause (15); or

     (16) additional Indebtedness of the Issuers and Restricted Subsidiaries in an
aggregate principal amount at any time outstanding not to exceed the greater of $20,000,000
and 2.0% of the Parent’s Adjusted Total Assets; provided, however, that any Permitted
Refinancing Indebtedness incurred under clause (14) above in respect of Indebtedness
incurred under this clause (16) shall be deemed to have been incurred under this clause
(16) for purposes of determining the amount of Indebtedness that may at any time be
incurred under this clause (16).

          (e) Notwithstanding any other provision of this Section 4.08, the maximum amount of
Indebtedness that the Parent or any of its Restricted Subsidiaries may Incur pursuant to this
Section 4.08 shall not be deemed to be exceeded, with respect to any outstanding Indebtedness, due
solely to the result of fluctuations in the exchange rates of currencies. Further, notwithstanding
any other provision of this Section 4.08, the maximum principal amount of Indebtedness, other than
obligations under Currency Agreements and Interest Rate Agreements, that the Subordinated
Subsidiary Guarantors

 

54

may Incur pursuant to this Section 4.08 shall not exceed $340,000,000, which amount shall be
permanently reduced by any scheduled amortization or mandatory repayments (other than out of the
net proceeds of any Permitted Refinancing Indebtedness incurred which are used to refund, refinance
or replace such Indebtedness) of such Indebtedness of such Subordinated Subsidiary Guarantors.

          (f) For purposes of determining any particular amount of Indebtedness under this Section
4.08,

     (1) Indebtedness Incurred and outstanding under the Credit Agreement, the Acquisition
Line or the Term Loan on or prior to the Issue Date shall be treated as Incurred pursuant
to clause (1) of paragraph (d) of this Section 4.08, and

     (2) Guarantees, Liens or obligations with respect to letters of credit supporting
Indebtedness otherwise included in the determination of such particular amount shall not be
included.

          For purposes of determining compliance with this Section 4.08, 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 (16) of paragraph (d) above or is entitled to be incurred pursuant
to paragraphs (a), (b) and (c) above, the Issuers shall, in their sole discretion, be entitled to
classify all or a portion of such item of Indebtedness on the date of its incurrence or issuance
and determine the order of such incurrence or issuance (and may later reclassify such item of
Indebtedness) and may divide and classify such Indebtedness in more than one of the types of
Indebtedness described. At any time that the Issuers would be entitled to have incurred any then
outstanding Indebtedness under paragraphs (a), (b) and (c) of this Section 4.08, such Indebtedness
shall be automatically reclassified into Indebtedness incurred pursuant to those paragraphs.
Indebtedness permitted by this Section 4.08 need not be permitted solely by reference to one
provision permitting such Indebtedness, but may be permitted in part by one such provision and in
part by one or more other provisions of this Section 4.08 permitting such Indebtedness. For the
avoidance of doubt, the outstanding principal amount of any particular Indebtedness shall be
counted only once and any obligations arising under any guarantee, Lien, letter of credit or
similar instrument supporting such Indebtedness shall not be double-counted.

          For purposes of determining compliance with any U.S. dollar-denominated restriction on the
incurrence of Indebtedness, the U.S. dollar-equivalent principal amount of Indebtedness denominated
in a foreign currency shall be calculated based on the relevant currency exchange rate in effect on
the date such Indebtedness was incurred, in the case of term debt, or first committed, in the case
of revolving credit debt; provided, however, that if such Indebtedness is incurred to refinance
other Indebtedness denominated in a foreign currency, and such refinancing would cause the
applicable U.S. dollar denominated restriction to be exceeded if calculated at the relevant
currency exchange rate in effect on the date of such refinancing, such U.S. dollar-denominated
restriction shall be deemed not to have been exceeded so long as the principal amount of

 

55

such refinancing Indebtedness does not exceed the principal amount of such Indebtedness being
refinanced, plus the amount of any reasonable premium (including reasonable tender premiums),
defeasance costs and any reasonable fees and expenses incurred in connection with the issuance of
such new Indebtedness. The principal amount of any Indebtedness incurred to refinance other
Indebtedness, if incurred in a different currency from the Indebtedness being refinanced, shall be
calculated based on the currency exchange rate applicable to the currencies in which such
respective Indebtedness is denominated that is in effect on the date of such refinancing.

          SECTION 4.09. Limitation on Restricted Payments. (a) The Parent shall not, and
shall not permit any of its Restricted Subsidiaries to, directly or indirectly:

     (1) declare or pay any dividend or make any distribution on or with respect to Capital
Stock of the Parent or of any Restricted Subsidiary of the Parent held by Persons other
than the Parent or any of its Restricted Subsidiaries, other than (i) dividends or
distributions payable solely in shares of its Capital Stock (other than Disqualified Stock)
and (ii) pro rata dividends or other distributions made by a Subsidiary that is not Wholly
Owned to minority stockholders (or owners of equivalent interests in the event the
Subsidiary is not a corporation);

     (2) purchase, redeem, retire or otherwise acquire for value any shares of Capital
Stock of the Parent held by any Person (other than a Restricted Subsidiary of the Parent);

     (3) make any voluntary or optional principal payment, or voluntary or optional
redemption, repurchase, defeasance, or other acquisition or retirement for value, of
Indebtedness of the Issuers that is subordinated in right of payment to the Notes or
Indebtedness of a Subsidiary Guarantor that is subordinated in right of payment to the
Subsidiary Guaranty of such Subsidiary Guarantor, in each case excluding (i) any
intercompany Indebtedness between or among the Parent, the Issuers or any of the Subsidiary
Guarantors and (ii) the payment, purchase, redemption, defeasance, acquisition or
retirement (collectively, a “purchase”) of such subordinated Indebtedness purchased
in anticipation of satisfying a sinking fund obligation, principal installment or final
maturity, in each case due within one year of the date of such purchase; or

     (4) make an Investment, other than a Permitted Investment, in any Person,

(such payments or any other actions described in clauses (1) through (4) above being
collectively “Restricted Payments”) if, at the time of, and after giving effect to,
the proposed Restricted Payment:

     (A) a Default or Event of Default shall have occurred and be continuing,

     (B) the Issuers could not Incur at least $1.00 of Indebtedness in compliance with both
paragraphs (a) and (c) of Section 4.08, or

 

56

     (C) the aggregate amount of all Restricted Payments (the amount, if other than in
cash, to be determined in good faith by the Board of Directors of the Parent, whose
determination shall be conclusive and evidenced by a Board Resolution) made after the Issue
Date shall exceed the sum of, without duplication:

     (i) 95% of the aggregate amount of the Adjusted Funds From Operations (or, if
the Adjusted Funds From Operations is a loss, minus 100% of the amount of such
loss) accrued on a cumulative basis during the period (taken as one accounting
period) beginning on the first day of the fiscal quarter during which the Issue
Date occurs and ending on the last day of the last fiscal quarter preceding the
Transaction Date for which reports have been filed with the SEC or provided to the
Trustee pursuant to Section 4.15 (or if no such reports have yet been required to
be filed with the SEC pursuant to Section 4.15, for which internal financial
statements are available), plus

     (ii) 100% of the aggregate Net Cash Proceeds received by the Parent after the
Issue Date from the issuance and sale of its Capital Stock (other than Disqualified
Stock) to a Person who is not a Subsidiary of the Parent, including from an
issuance or sale permitted by this Indenture of Indebtedness of the Parent or any
of its Restricted Subsidiaries for cash subsequent to the Issue Date upon the
conversion of such Indebtedness into Capital Stock (other than Disqualified Stock)
of the Parent but excluding any options, warrants or other rights that are
redeemable at the option of the holder for cash or Indebtedness, or are required to
be redeemed, prior to the Stated Maturity of the Notes, plus

     (iii) an amount equal to the net reduction in Investments (other than
reductions in Permitted Investments) in any Person after the Issue Date resulting
from payments of interest on Indebtedness, dividends, repayments of loans or
advances, or other transfers of assets, in each case to the Parent or any of its
Restricted Subsidiaries or from the Net Cash Proceeds from the sale of any such
Investment (except, in each case, to the extent any such payment or proceeds are
included in the calculation of Adjusted Funds From Operations) or from
redesignations of Unrestricted Subsidiaries as Restricted Subsidiaries (valued, in
each case, as provided in the definition of “Investments”) not to exceed, in each
case, the amount of Investments previously made by the Parent and its Restricted
Subsidiaries in such Person or Unrestricted Subsidiary, and treated as a Restricted
Payment, plus

     (iv) the fair market value of non-cash tangible assets or Capital Stock
acquired in exchange for an issuance of Capital Stock (other than Disqualified
Stock or Capital Stock issued in exchange for Capital Stock of the Parent utilized
pursuant to clauses (3) or (4) of Section 4.09(c)) of the Parent subsequent to the
Issue Date (including upon conversion or

 

57

exchange of the Common Units for Capital Stock of the Parent, in which case
the fair market value shall equal the fair market value received upon issuance of
such Common Units), plus

     (v) without duplication, in the event the Parent or any Restricted Subsidiary
of the Parent makes any Investment in a Person that, as a result of or in
connection with such Investment, becomes a Restricted Subsidiary of the Parent, an
amount not to exceed the amount of Investments previously made by the Parent and
its Restricted Subsidiaries in such Person and treated as a Restricted Payment.

          (b) Notwithstanding Section 4.09(a), the Parent and any of its Restricted Subsidiaries may
declare or pay any dividend or make any distribution or take other action (that would have
otherwise been a Restricted Payment) that is necessary to maintain the Parent’s status as a REIT
under the Code if:

     (1) the aggregate principal amount of all outstanding Indebtedness of the Parent and
its Restricted Subsidiaries on a consolidated basis at such time is less than 60% of
Adjusted Total Assets; and

     (2) no Default or Event of Default shall have occurred and be continuing.

          (c) Section 4.09(a) shall not be violated by reason of:

     (1) the payment of any dividend or distribution or the consummation of any redemption
within 60 days after the date of declaration thereof or the giving of a redemption notice
related thereto, as the case may be, if, at said date of declaration or notice, such
payment would comply with Section 4.09(a);

     (2) the payment, redemption, repurchase, defeasance or other acquisition or retirement
for value of Indebtedness that is subordinated in right of payment to the Notes or to a
Subsidiary Guaranty, including premium, if any, and accrued and unpaid interest, with the
proceeds of, or in exchange for, Indebtedness Incurred in compliance with Sections 4.08(a),
(b) or (c) or Section 4.08(d)(14);

     (3) (a) the making of any Restricted Payment in exchange for, or out of the proceeds
of the substantially concurrent sale of, Capital Stock of the Parent (other than any
Disqualified Stock or any Capital Stock sold to a Restricted Subsidiary of the Parent or to
an employee stock ownership plan or any trust established by the Parent) or from
substantially concurrent contributions to the equity capital of the Parent (collectively,
including any such contributions, “Refunding Capital Stock”) (with any offering
within 90 days deemed as substantially concurrent); and (b) the declaration and payment of
accrued dividends on any Capital Stock redeemed, repurchased, retired, defeased or acquired
out of the proceeds of the sale of Refunding Capital Stock within 90 days of such sale;
provided that the amount of any such proceeds or contributions that are utilized for any
Restricted Payment pursuant to this clause (3) shall be excluded from the amount described
in Section 4.09(a)(4)(C)(ii);

 

58

     (4) the making of any principal payment on, or the repurchase, redemption, retirement,
defeasance or other acquisition for value of, Indebtedness of the Issuers that is
subordinated in right of payment to the Notes or Indebtedness of a Subsidiary Guarantor
that is subordinated in right of payment to the Subsidiary Guaranty of such Subsidiary
Guarantor in exchange for, or out of the proceeds of an issuance of, shares of the Capital
Stock (other than Disqualified Stock) of the Parent within 90 days of such principal
payment, repurchase, redemption, retirement, defeasance or other acquisition;

     (5) payments or distributions to dissenting stockholders 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 Parent;

     (6) the payment of regularly scheduled cash dividends on shares of Redeemable
Cumulative Preferred Stock in an amount not to exceed $15,625 per calendar year;

     (7) the repurchase, redemption or other acquisition or retirement for value of any
shares of Capital Stock of the Parent held by any current or former officer, director,
consultant or employee of the Parent or any of its Restricted Subsidiaries (or any
permitted transferees, assigns, estates or heirs of any of the foregoing); provided,
however, the aggregate amount paid by the Parent and its Restricted Subsidiaries pursuant
to this clause (7) shall not exceed $5,000,000 in any calendar year (excluding for purposes
of calculating such amount the amount paid for Capital Stock repurchased, redeemed,
acquired or retired with the cash proceeds from the repayment of outstanding loans
previously made by the Parent or a Restricted Subsidiary thereof for the purpose of
financing the acquisition of such Capital Stock), with unused amounts in any calendar year
being carried over for one additional calendar year; provided further, that such amount in
any calendar year may be increased by an amount not to exceed: (A) the net cash proceeds
from the sale of Capital Stock (other than Disqualified Stock) of the Parent, in each case,
to officers, directors, consultants or employees of the Parent or any of its Subsidiaries
that occurs after the Issue Date, to the extent such cash proceeds (i) have not otherwise
been and are not thereafter applied to permit the payment of any other Restricted Payment
or (ii) are not attributable to loans made by the Parent or a Restricted Subsidiary thereof
for the purpose of financing the acquisition of such Capital Stock, plus (B) the cash
proceeds of key man life insurance policies received by the Parent and its Restricted
Subsidiaries after the Issue Date, less (C) the amount of any Restricted Payments
previously made pursuant to clauses (A) and (B) of this clause (7); provided further,
however, that cancellation of Indebtedness owing to the Parent from members of management
of the Parent or any Restricted Subsidiary thereof in connection with a repurchase of
Capital Stock of the Parent shall not be deemed to constitute a Restricted Payment for
purposes of this Indenture;

 

59

     (8) the repurchase of Capital Stock deemed to occur (i) upon the exercise of options
or warrants if such Capital Stock represents all or a portion of the exercise price thereof
and (ii) in connection with the withholding of a portion of the Capital Stock granted or
awarded to a director or an employee to pay for the taxes payable by such director or
employee upon such grant or award;

     (9) upon the occurrence of a Change of Control (or similarly defined term in other
Indebtedness) and within 90 days after completion of the Offer to Purchase (including the
purchase of all Notes tendered), any repayment, repurchase, redemption, defeasance or other
acquisition or retirement for value of any Indebtedness of the Issuers or any Subsidiary
Guarantor that is contractually subordinated to the Notes or to any Subsidiary Guaranty
that is required to be repurchased or redeemed pursuant to the terms thereof as a result of
such Change of Control (or similarly defined term in other Indebtedness), at a purchase
price not greater than 101% of the outstanding principal amount or liquidation preference
thereof (plus accrued and unpaid interest and liquidated damages, if any);

     (10) within 90 days after completion of any offer to repurchase Notes pursuant to
Section 4.11 (including the purchase of all Notes tendered), any repayment, repurchase,
redemption, defeasance or other acquisition or retirement for value of any Indebtedness of
the Issuers or any Subsidiary Guarantor that is contractually subordinated to the Notes or
to any Subsidiary Guaranty that is required to be repurchased or redeemed pursuant to the
terms thereof as a result of such Asset Sale (or similarly defined term in such other
Indebtedness), at a purchase price not greater than 100% of the outstanding principal
amount or liquidation preference thereof (plus accrued and unpaid interest and liquidated
damages, if any);

     (11) the payment of cash in lieu of the issuance of fractional shares of Capital Stock
upon exercise or conversion of securities exercisable or convertible into Capital Stock of
the Parent; or

     (12) additional Restricted Payments in an aggregate amount not to exceed $20,000,000;

provided, however, that, except in the case of clauses (1) and (3), no Default or Event of Default
shall have occurred and be continuing or occur as a direct consequence of the actions or payments
set forth therein.

          (d) The net amount of any Restricted Payment permitted pursuant to Section 4.09(b) and
Section 4.09(c)(1) shall be included in calculating whether the conditions of Section 4.09(a)(4)(C)
have been met with respect to any subsequent Restricted Payments. The net amount of any Restricted
Payment permitted pursuant to clauses (2) through (12) of Section 4.09(c) shall be excluded in
calculating whether the conditions of Section 4.09(a)(4)(C) have been met with respect to any
subsequent Restricted Payments. The amount of all Restricted Payments (other than cash) shall be

 

60

the fair market value on the date of the Restricted Payment of the asset(s) or securities
proposed to be transferred or issued to or by the Parent or such Restricted Subsidiary, as the case
may be, pursuant to the Restricted Payment. In determining whether any Restricted Payment is
permitted by this Section 4.09, the Parent and its Restricted Subsidiaries may allocate all or any
portion of such Restricted Payment among the categories described in clauses (1) through (12) of
Section 4.09(c) or among such categories and the types of Restricted Payments described in Section
4.09(a) (including categorization in whole or in part as a Permitted Investment); provided that, at
the time of such allocation, all such Restricted Payments, or allocated portions thereof, would be
permitted under the various provisions of this Section 4.09.

          SECTION 4.10. Maintenance of Total Unencumbered Assets. The Issuers and their
Restricted Subsidiaries shall maintain Total Unencumbered Assets of not less than 150% of the
aggregate outstanding principal amount of the Unsecured Indebtedness of the Issuers and their
Restricted Subsidiaries on a consolidated basis.

          SECTION 4.11. Limitation on Asset Sales. (a) The Parent shall not, and shall not
permit any of its Restricted Subsidiaries to, consummate any Asset Sale, unless:

     (1) the consideration received by the Parent or such Restricted Subsidiary is at least
equal to the fair market value of the assets sold or disposed of; and

     (2) at least 75% of the consideration received consists of cash, Temporary Cash
Investments or Replacement Assets, or a combination of cash, Temporary Cash Investments or
Replacement Assets; provided, however, that, with respect to the sale of one or more
properties up to 75% of the consideration may consist of Indebtedness of the purchaser of
such properties so long as such Indebtedness is secured by a first priority Lien on the
property or properties sold.

          (b) For purposes of this Section 4.11, each of the following shall be deemed to be cash:

     (1) any liabilities of the Parent or any Restricted Subsidiary (as shown on the most
recent consolidated balance sheet of the Parent and its Restricted Subsidiaries other than
contingent liabilities and liabilities that are by their terms subordinated to the Notes or
any Guaranty) that are assumed by the transferee of any such assets pursuant to an
agreement that releases the Parent or any such Restricted Subsidiary from further liability
with respect to such liabilities or that are assumed by contract or operation of law;

     (2) any securities, notes or other obligations received by the Issuers or any such
Restricted Subsidiary from such transferee that are converted by the Issuers or such
Restricted Subsidiary into cash or Temporary Cash Investments within 180 days (to the
extent of the cash or Temporary Cash Investments received in that conversion); and

     (3) any Designated Non-cash Consideration received by the Issuers or any

 

61

such Restricted Subsidiary in such Asset Sale having an aggregate fair market value,
taken together with all other Designated Non-cash Consideration received pursuant to this
clause (3) that is at the time outstanding, not to exceed the greater of (x) $20,000,000
and (y) 2.0% of the Parent’s Adjusted Total Assets at the time of the receipt of such
Designated Non-cash Consideration, with the fair market value of each item of Designated
Non-cash Consideration being measured at the time received and without giving effect to
subsequent changes in value.

          (c) Within 365 days after the receipt of any Net Cash Proceeds from an Asset Sale, the Parent
or any such Restricted Subsidiary may apply such Net Cash Proceeds to:

     (1) prepay, repay, redeem or purchase Pari Passu Indebtedness of the Issuer or a
Subsidiary Guarantor that is Secured Indebtedness (in each case other than Indebtedness
owed to the Parent or an Affiliate of the Parent);

     (2) make an Investment in (provided such Investment is in the form of Capital Stock),
or to acquire all or substantially all of the assets of, a Person engaged in a Permitted
Business if, in the case of an Investment, such Person is, or will become as a result
thereof, a Restricted Subsidiary;

     (3) prepay, repay, redeem or purchase Pari Passu Indebtedness of the Issuer or of any
Subsidiary Guarantor or any Indebtedness of a Restricted Subsidiary that is not a
Subsidiary Guarantor; provided, however, that if the Parent, the Issuers or a Subsidiary
Guarantor shall so prepay, repay, redeem or purchase any such Pari Passu Indebtedness, the
Issuers shall equally and ratably reduce obligations under the Notes if the Notes are then
prepayable or, if the Notes may not then be prepaid, the Issuers shall make an offer (in
accordance with the procedures set forth below) with the ratable proceeds to all Holders to
purchase their Notes at 100% of the principal amount thereof, plus accrued but unpaid
interest, if any, thereon, up to the principal amount of Notes that would otherwise be
prepaid;

     (4) fund all or a portion of an optional redemption of the Notes pursuant to Section 5
of the Notes;

     (5) make one or more capital expenditures;

     (6) acquire Replacement Assets to be used or that are useful in a Permitted Business;
or

     (7) undertake any combination of the foregoing;

provided that the Parent shall be deemed to have complied with the provisions described in clauses
(2), (5) and (6) of this Section 4.11(c) if and to the extent that, within 365 days after the Asset
Sale that generated the Net Cash Proceeds, the Parent or any of its Restricted Subsidiaries has
entered into and not abandoned or rejected a binding agreement to acquire the assets or Capital
Stock of a Permitted Business, make a capital

 

62

expenditure or acquire Replacement Assets in compliance with the provisions described in clauses
(2), (5) and (6) of this Section 4.11(c), and that acquisition, purchase or capital expenditure is
thereafter completed within 180 days after the end of such 365-day period. Pending the final
application of any such excess Net Cash Proceeds, the Parent may temporarily reduce the revolving
Indebtedness under any Credit Facility or otherwise invest such excess Net Cash Proceeds in any
manner that is not prohibited by this Indenture. The amount of such excess Net Cash Proceeds
required to be applied (or to be committed to be applied) during such 365-day period as set forth
in this Section 4.11(c) and not so applied by the end of such period shall constitute “Excess
Proceeds.”

          (d) If, as of the first day of any calendar month, the aggregate amount of Excess Proceeds
not previously subject to an Offer to Purchase pursuant to this Section 4.11 totals at least
$15,000,000, the Issuers shall commence, not later than the fifteenth Business Day of such month,
and consummate an Offer to Purchase from the Holders and, to the extent required by the terms of
any Pari Passu Indebtedness, to all holders of such Pari Passu Indebtedness on a pro rata basis an
aggregate principal amount of Notes (and Pari Passu Indebtedness) equal to the Excess Proceeds on
such date, at a purchase price equal to 100% of the principal amount of the Notes (and Pari Passu
Indebtedness), plus, in each case, accrued and unpaid interest (if any) to the Payment Date. If any
Excess Proceeds remain after consummation of an Offer to Purchase, the Parent may use such Excess
Proceeds for any purpose not prohibited by this Indenture. If the aggregate purchase price of the
Notes and the other Pari Passu Indebtedness tendered into such Offer to Purchase exceeds the amount
of Excess Proceeds, the Parent shall select the Notes to be purchased on a pro rata basis but in
round denominations, which in the case of the Notes shall be denominations of $2,000 initial
principal amount and multiples of $1,000 thereafter. Upon completion of each Offer to Purchase, the
amount of Excess Proceeds shall be reset at zero. The Parent may satisfy the foregoing obligation
with respect to any Net Cash Proceeds prior to the expiration of the relevant 365 day period (as
such period may be extended in accordance with this Indenture). Nothing in this Section 4.11(d)
shall preclude the Issuers from making an Offer to Purchase even if the amount of Excess Proceeds
not previously subject to an Offer to Purchase pursuant to this Section 4.11 totals less than
$15,000,000.

          SECTION 4.12. Limitation on Transactions with Affiliates. (a) The Parent shall not,
and shall not permit any of its Restricted Subsidiaries to, directly or indirectly, enter into,
renew or extend any transaction (including the purchase, sale, lease or exchange of property or
assets, or the rendering of any service) with any Holder (or any Affiliate of such Holder) of 10%
or more of any class of Capital Stock of the Parent or with any Affiliate of the Parent or any of
its Restricted Subsidiaries, in each case involving consideration in excess of $2,500,000, except
upon terms that are not materially less favorable, taken as a whole, to the Parent or such
Restricted Subsidiary than could be obtained, at the time of such transaction or, if such
transaction is pursuant to a written agreement, at the time of the execution of the agreement
providing therefor, in a comparable arm’s-length transaction with a Person that is not such a
Holder or an Affiliate.

 

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          (b) The limitation set forth in Section 4.12(a) does not limit, and shall not apply to:

     (1) transactions (A) approved by a majority of the disinterested directors of the
Board of Directors of the Parent or (B) for which the Parent or any Restricted Subsidiary
delivers to the Trustee a written opinion of a nationally recognized investment banking,
appraisal or accounting firm stating that the transaction is fair to the Parent or such
Restricted Subsidiary from a financial point of view;

     (2) any transaction solely between the Parent and any of its Restricted Subsidiaries
or solely between Restricted Subsidiaries;

     (3) the payment of reasonable fees and compensation to, and indemnification and
similar arrangements on behalf of, current, former or future directors of the Parent or any
Restricted Subsidiary;

     (4) the issuance or sale of Capital Stock (other than Disqualified Stock) of the
Parent;

     (5) any Restricted Payments not prohibited by Section 4.09;

     (6) any contracts, instruments or other agreements or arrangements in each case as in
effect on the date of this Indenture, and any transactions pursuant thereto or contemplated
thereby, or any amendment, modification or supplemental thereto or any replacement thereof
entered into from time to time, as long as such agreement or arrangements as so amended,
modified, supplemented or replaced, taken as a whole, is not materially more
disadvantageous to the Parent and the Restricted Subsidiaries, taken as a whole, at the
time executed than the original agreement or arrangements as in effect on the date of this
Indenture;

     (7) any employment, consulting, service or termination agreement, or customary
indemnification arrangements, entered into by the Parent or any Restricted Subsidiary with
current, former or future officers and employees of the Parent or such Restricted
Subsidiary and the payment of compensation to officers and employees of the Parent or any
Restricted Subsidiary (including amounts paid pursuant to employee benefit plans, employee
stock option or similar plans), in each case in the ordinary course of business;

     (8) loans and advances to officers and employees of the Parent or any Restricted
Subsidiary or guarantees in respect thereof (or cancellation of such loans, advances or
guarantees), for bona fide business purposes, including for reasonable moving and
relocation, entertainment and travel expenses and similar expenses, made in the ordinary
course of business and consistent with past practice;

     (9) transactions with a Person that is an Affiliate of the Parent solely because the
Parent, directly or indirectly, owns Capital Stock of or controls such

 

64

Person; or

     (10) any transaction with a Person who is not an Affiliate immediately before the
consummation of such transaction that becomes an Affiliate as a result of such transaction.

          (c) Notwithstanding Section 4.12(a) and 4.12(b), any transaction or series of related
transactions covered by Section 4.12(a) and not covered by clauses (2) through (10) of Section
4.12(b):

     (i) the aggregate amount of which exceeds $10,000,000 in value shall be
approved or determined to be fair in the manner provided for in Section
4.12(b)(1)(A) or (B); and

     (ii) the aggregate amount of which exceeds $25,000,000 in value shall be
determined to be fair in the manner provided for in Section 4.12(b)(1)(B).

          SECTION 4.13. Limitation on Dividend and Other Payment Restrictions Affecting Restricted
Subsidiaries. (a) The Parent shall not, and shall not permit any of its Restricted
Subsidiaries to, create or otherwise cause or suffer to exist or become effective any consensual
encumbrance or restriction of any kind on the ability of any Restricted Subsidiary to:

     (1) pay dividends or make any other distributions permitted by applicable law on any
Capital Stock of such Restricted Subsidiary owned by the Parent or any of its Restricted
Subsidiaries;

     (2) pay any Indebtedness owed to the Parent or any other Restricted Subsidiary;

     (3) make loans or advances to the Parent or any other Restricted Subsidiary; or

     (4) transfer its property or assets to the Parent or any other Restricted Subsidiary.

          (b) Section 4.13(a) shall not restrict any encumbrances or restrictions:

     (1) existing under, by reason of or with respect to this Indenture, the Notes, the
Guaranties, the Credit Agreement, the Acquisition Line, the Term Loan and any other
agreement in effect on the Issue Date as in effect on the Issue Date, and any amendments,
modifications, restatements, extensions, increases, supplements, refundings, refinancing,
renewals or replacements of such agreements; provided, however, that the encumbrances and
restrictions in any such amendments, modifications, restatements, extensions, increases,
supplements, refundings, refinancing, renewals or replacements are not materially less
favorable, taken as a whole, to the Holders of the Notes than those in effect

 

65

on the Issue Date;

     (2) existing under, by reason of or with respect to any other Credit Facility of the
Issuers permitted under this Indenture; provided, however, that the encumbrances and
restrictions contained in the agreement or agreements governing the other Credit Facility
are not materially less favorable, taken as a whole, to the Holders of the Notes than those
contained in any of the Credit Agreement, the Acquisition Line or the Term Loan (with
respect to other credit agreements) or this Indenture (with respect to other indentures),
in each case as in effect on the Issue Date;

     (3) existing under, by reason of or with respect to applicable law, rule, regulation
or administrative or court order;

     (4) existing with respect to any Person or the property or assets of such Person
acquired by the Parent or any Restricted Subsidiary, existing at the time of such
acquisition and not Incurred in contemplation thereof, which encumbrances or restrictions
are not applicable to any Person or the property or assets of any Person other than such
Person or the property or assets of such Person so acquired and any amendments,
modifications, restatements, extensions, increases, supplements, refundings, refinancing,
renewals or replacements thereof; provided, however, that the encumbrances and restrictions
in any such amendments, modifications, restatements, extensions, increases, supplements,
refundings, refinancing, renewals or replacements are entered into in the ordinary course
of business or not materially less favorable, taken as a whole, to the Holders of the Notes
than those contained in the instruments or agreements with respect to such Person or its
property or assets as in effect on the date of such acquisition;

     (5) existing under, by reason of or with respect to provisions in joint venture,
operating or similar agreements to the extent they are limited in application to the
Restricted Subsidiary party to such agreement;

     (6) in the case of Section 4.13(a)(4):

     (i) that restrict in a customary manner the subletting, assignment or transfer
of any property or asset that is a lease, license, conveyance or contract or
similar property or asset,

     (ii) existing by virtue of any transfer of, agreement to transfer, option or
right with respect to, or Lien on, any property or assets of the Parent or any
Restricted Subsidiary not otherwise prohibited by this Indenture,

     (iii) existing under, by reason of or with respect to (1) purchase money
obligations for property acquired in the ordinary course of business or (2) capital
leases or operating leases that impose encumbrances or restrictions on the property
so acquired or covered thereby, or

 

66

     (iv) arising or agreed to in the ordinary course of business, not relating to
any Indebtedness, and that do not, individually or in the aggregate, detract from
the value of property or assets of the Parent or any Restricted Subsidiary in any
manner material to the Parent and its Restricted Subsidiaries taken as a whole;

     (7) with respect to a Restricted Subsidiary and imposed pursuant to an agreement that
has been entered into for the sale or disposition of the Capital Stock of, or property and
assets of, such Restricted Subsidiary that restricts distributions by that Restricted
Subsidiary pending the closing of such sale or other disposition;

     (8) existing under, by reason of or with respect to Indebtedness permitted to be
incurred pursuant to Section 4.08(d)(14); provided that the encumbrances and restrictions
contained in the agreements governing such Indebtedness are not materially less favorable,
taken as a whole, to the Holders of the Notes than those contained in the agreements
governing the Indebtedness being refinanced; and

     (9) contained in the terms of any Indebtedness or any agreement pursuant to which such
Indebtedness was issued if:

     (i) the encumbrance or restriction applies only in the event of a payment
default or a default with respect to a financial covenant contained in such
Indebtedness or agreement,

     (ii) the encumbrance or restriction is not materially less favorable, taken as
a whole, to the Holders of the Notes than is customary in comparable financings (as
determined by the good faith judgment of the Parent) and

     (iii) the Parent, in its good faith, determines that such an encumbrance or
restriction will not materially affect the Issuers’ ability to make principal or
interest payments on the Notes.

          (c) Nothing contained in this Section 4.13 shall prevent the Parent or any Restricted
Subsidiary from restricting the sale or other disposition of property or assets of the Parent or
any of its Restricted Subsidiaries that secure Indebtedness of the Issuers or any of their
Restricted Subsidiaries. For purposes of determining compliance with this Section 4.13, (1) the
priority of any Preferred Stock in receiving dividends or liquidating distributions prior to
distributions being paid on common stock shall not be deemed a restriction on the ability to make
distributions on Capital Stock and (2) the subordination of loans or advances made to a Restricted
Subsidiary to other Indebtedness incurred by such Restricted Subsidiary shall not be deemed a
restriction on the ability to make loans or advances.

          SECTION 4.14. Future Guaranties by Restricted Subsidiaries. (a) The Parent shall not
permit any Restricted Subsidiary of the Issuers, directly or indirectly, to Guarantee any
Indebtedness of the Issuers or of a Subsidiary Guarantor (“Guaranteed

 

67

Indebtedness”), unless in either case such Restricted Subsidiary within 30 calendar
days executes and delivers a supplemental indenture to this Indenture providing for a Subsidiary
Guaranty by such Restricted Subsidiary; provided, however, that this Section 4.14(a) shall not be
applicable to any Guarantee of any Restricted Subsidiary that existed at the time such Person
became a Restricted Subsidiary and was not Incurred in connection with, or in contemplation of,
such person becoming a Restricted Subsidiary. The Parent may elect, in its sole discretion, to
cause any Subsidiary that is not otherwise required to be a Guarantor to become a Guarantor, in
which case such Subsidiary shall not be required to comply with the 30-calendar day period
described above.

          (b) If the Guaranteed Indebtedness:

     (i) ranks equally with the Notes (or the applicable Subsidiary Guaranty) in
right of payment, then the Guarantee of such Guaranteed Indebtedness shall rank
equally with, or subordinate to, the Subsidiary Guaranty issued pursuant to this
Section 4.14 in right of payment; or

     (ii) is subordinate in right of payment to the Notes (or the applicable
Subsidiary Guaranty), then the Guarantee of such Guaranteed Indebtedness shall be
subordinated in right of payment to the Subsidiary Guaranty issued pursuant to this
Section 4.14 at least to the extent that the Guaranteed Indebtedness is
subordinated to the Notes (or the applicable Subsidiary Guaranty).

          (c) Any such Subsidiary Guaranty by a Restricted Subsidiary issued pursuant to this Section
4.14 shall provide by its terms that it shall be automatically and unconditionally released and
discharged:

     (1) upon any sale, exchange or transfer (including by way of merger or consolidation),
to any Person not a Subsidiary of the Parent, of Capital Stock held by the Parent and its
Restricted Subsidiaries in, or all or substantially all the assets of, such Restricted
Subsidiary (which sale, exchange or transfer is not prohibited by this Indenture), such
that, immediately after giving effect to such transaction, such Restricted Subsidiary would
no longer constitute a Subsidiary of the Parent,

     (2) in connection with the merger or consolidation of such Restricted Subsidiary with
(a) an Issuer or (b) any other Guarantor (provided that the surviving entity remains a
Guarantor),

     (3) if the Parent properly designates such Restricted Subsidiary as an Unrestricted
Subsidiary pursuant to the terms of this Indenture,

     (4) upon the Legal Defeasance or Covenant Defeasance or satisfaction and discharge of
this Indenture,

     (5) upon a liquidation or dissolution of such Restricted Subsidiary permitted under
this Indenture, or

 

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     (6) upon the release or discharge of the Guarantee that resulted in the creation of
such Subsidiary Guaranty, except a discharge or release by or as a result of payment under
such Guarantee.

          SECTION 4.15. Reports to Holders. (a) Whether or not the Parent is then required to
file reports with the SEC, the Parent shall file with the SEC all such reports and other
information as it would be required to file with the SEC by Section 13(a) or 15(d) under the
Exchange Act if it was subject thereto; provided, however, that, if filing such documents by the
Parent with the SEC is not permitted under the Exchange Act, the Parent shall, within 15 days after
the time the Parent would be required to file such information with the SEC if it were subject to
Section 13 or 15(d) under the Exchange Act, provide such documents and reports to the Trustee and
upon written request supply copies of such documents and reports to any Holder and shall post such
documents and reports on the Parent’s public website. The Parent shall supply the Trustee and each
Holder or shall supply to the Trustee for forwarding to each such Holder, without cost to such
Holder, copies of such reports and other information. 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 Issuers’ compliance with any of their covenants
hereunder (as to which the Trustee is entitled to rely exclusively on Officer’s Certificates).

          Notwithstanding the foregoing, such requirements to file such reports shall be deemed
satisfied either (1) prior to the report required for the fiscal quarter ending June 30, 2011, by
providing the financial information (including a “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” section) that would be required by such reports to the trustee
and upon written request supplying copies of such information to any holder and posting such
information on the Parent’s public website or (2) prior to and including the report required for
the fiscal quarter ending June 30, 2011, to the extent the information required by such reports is
contained in the exchange offer registration statement or shelf registration statement required by
the Registration Rights Agreement then on file with the SEC, including any amendments thereto.

          (b) So long as permitted by the SEC, at any time that either (x) one or more Subsidiaries of
the Parent is an Unrestricted Subsidiary or (y) the Parent holds directly any material assets
(including Capital Stock) other than the Capital Stock of the Issuers and, in either case, such
Unrestricted Subsidiary or other assets taken together would represent 5% or more of the Total
Assets of the Parent and its Subsidiaries as of the latest quarterly financial statements, then the
quarterly and annual financial information required by this Section 4.15 will include a reasonably
detailed presentation, either in “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” or any other comparable section, of the financial condition and results of
operations of the Issuers and their Restricted Subsidiaries separate from the financial condition
and results of operations of such Unrestricted Subsidiaries and other material assets of the
Parent.

 

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          (c) Beginning with the results and information for the fiscal quarter ending June 30, 2011,
the Parent shall also, within a reasonably prompt period of time following the disclosure of the
annual and quarterly information required above, conduct a conference call with respect to such
information and results of operations for the relevant reporting period. No fewer than three
Business Days prior to (i) the disclosure of the annual, quarterly and periodic information
required above and (ii) the date of the conference call required to be held in accordance with the
preceding sentence, the Parent shall issue a press release to the appropriate internationally
recognized wire services announcing the date that such information will be available and the time
and date of such conference call.

          (d) Notwithstanding anything herein to the contrary, the Parent shall not be deemed to have
failed to comply with any of its obligations under this Section 4.15 for purposes of Section
6.01(4) until 30 days after the date any report hereunder is due.

          SECTION 4.16. Prohibition on Incurrence of Senior Debt by the Subordinated Subsidiary
Guarantors. The Subordinated Subsidiary Guarantors shall not incur or suffer to exist any
Indebtedness that is senior in right of payment to the applicable Subordinated Subsidiary
Guarantor’s guarantee other than the Acquisition Line and the Term Loan (or any Permitted
Refinancing Indebtedness incurred in exchange for, or the net proceeds of which are used to refund,
refinance or replace, the Acquisition Line or Term Loan and that was otherwise permitted by the
indenture) and any secured Currency Agreements and Interest Rate Agreements provided to the lenders
under the Acquisition Line and the Term Loan.

          SECTION 4.17. Suspension of Covenants. During a Suspension Period, the Parent and its
Restricted Subsidiaries shall not be subject to Sections 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14,
4.16 and 5.01(a)(3). All other provisions of this Indenture shall apply at all times during any
Suspension Period so long as any Notes remain outstanding hereunder.

          “Suspension Period” means any period (1) beginning on the date that:

     (A) the Notes have Investment Grade Status;

     (B) no Default or Event of Default has occurred and is continuing; and

     (C) the Issuers have delivered an Officer’s Certificate to the Trustee certifying that
the conditions set forth in clauses (A) and (B) above are satisfied;

and (2) ending on the date (the “Reversion Date”) that the Notes cease to have Investment
Grade Status.

          On each Reversion Date, all Indebtedness, liens thereon and dividend blockages incurred during
the Suspension Period prior to such Reversion Date shall be deemed to have been outstanding on the
Issue Date.

 

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          For purposes of calculating the amount available to be made as Restricted Payments under
Section 4.09(a)(C), calculations under that clause shall be made with reference to the Transaction
Date, as set forth in that clause. Accordingly, (x) Restricted Payments made during the Suspension
Period not otherwise permitted pursuant to any of clauses (1) through (12) of Section 4.09(c),
shall reduce the amount available to be made as Restricted Payments under Section 4.09(a)(C);
provided, however, that the amount available to be made as a Restricted Payment on the Transaction
Date shall not be reduced to below zero solely as a result of such Restricted Payments, but may be
reduced to below zero as a result of negative cumulative Adjusted Funds From Operations during the
Suspension Period for the purpose of Section 4.09(a)(C)(i), and (y) the items specified in Section
4.09(a)(C)(i), (ii), (iii), (iv) and (v) that occur during the Suspension Period shall increase the
amount available to be made as Restricted Payment under Section 4.09(a)(C). Any Restricted Payment
made during the Suspension Period that is of the type described in Section 4.09(c) (other than the
Restricted Payment referred to in clause (2) of Section 4.09(c) or an exchange of Capital Stock for
Capital Stock or Indebtedness referred to in clause (3) or (4) of Section 4.09(c)), and the Net
Cash Proceeds from any issuance of Capital Stock referred to in clauses (3) and (4) of Section
4.09(c), shall be included in calculating the amounts permitted to be incurred under Section
4.09(a)(C) on each Reversion Date.

          For purposes of Section 4.11, on each Reversion Date, the unutilized Excess Proceeds shall be
reset to zero.

          No Default or Event of Default shall be deemed to have occurred on the Reversion Date (or
thereafter) under any Suspended Covenant solely as a result of any actions taken by the Parent, the
Issuers or any Restricted Subsidiaries thereof, or events occurring, during the Suspension Period.
For purposes of Section 4.10, if the Issuers and their Restricted Subsidiaries are not in
compliance with Section 4.10 as of a Reversion Date, no Default or Event of Default shall be deemed
to have occurred for up to 120 days following the Reversion Date; provided that neither the Issuers
nor any of their Restricted Subsidiaries shall incur any Secured Indebtedness until such time that
the requirements of Section 4.10 have been satisfied.

ARTICLE FIVE

Successor Corporation

          SECTION 5.01. Consolidation, Merger and Sale of Assets. (a) The Parent shall not
consolidate with or merge with or into, or sell, convey, transfer or otherwise dispose of all or
substantially all of its and its Restricted Subsidiaries’ (taken as a whole) property and assets
(as an entirety or substantially an entirety in one transaction or a series of related
transactions) to, any Person or permit any Person to merge with or into the Parent unless:

     (1) the Parent shall be the continuing Person, or the Person (if other than the
Parent) formed by such consolidation or into which the Parent is merged or that acquired
such property and assets of the Parent shall be a corporation, limited

 

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liability company, partnership (including a limited partnership) or trust organized
and validly existing under the laws of the United States of America or any state or
jurisdiction thereof and shall expressly assume, by a supplemental indenture, executed and
delivered to the Trustee, all of the obligations of the Parent on its Guaranty and under
this Indenture (provided that in the case of a limited liability company, partnership
(including a limited partnership) or trust, there shall also be a corporation organized and
validly existing under the laws of the United States of America or any state or
jurisdiction thereof which shall expressly jointly with such limited liability company,
partnership (including a limited partnership) or trust, assume, by a supplemental
indenture, executed and delivered to the Trustee, all of the obligations of the Parent on
its Guaranty and under this Indenture);

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

     (3) immediately after giving effect to such transaction and any related financing
transactions as if the same had occurred at the beginning of the applicable Four Quarter
Period, on a pro forma basis the Issuers, or any Person becoming the successor obligor of
the Notes, as the case may be, could Incur at least $1.00 of Indebtedness in compliance
with both paragraphs (a) and (c) of Section 4.08; provided, however, that this clause (3)
shall not apply to a consolidation or merger with or into a Wholly Owned Restricted
Subsidiary; and

     (4) the Parent delivers to the Trustee an Officer’s Certificate (attaching the
arithmetic computations to demonstrate compliance with clause (3) above) and an Opinion of
Counsel, in each case stating that such consolidation, merger or transfer and such
supplemental indenture complies with this Section 5.01 and that all conditions precedent
provided for herein relating to such transaction have been complied with and, with respect
to the Opinion of Counsel, that the supplemental indenture constitutes a valid and binding
obligation enforceable against the Parent, or the Person (if other than the Parent) formed
by such consolidation or into which the Parent is merged or that acquired all or
substantially all of the Parent’s and its Restricted Subsidiaries’ property and assets;

provided, however, that clause (3) above does not apply if, in the good faith determination
of the Board of Directors of the Parent, whose determination shall be evidenced by a Board
Resolution, the principal purpose of such transaction is to change the state of domicile of
the Parent; provided further, however, that any such transaction shall not have as one of
its purposes the evasion of the foregoing limitations.

          (b) Except as provided in Section 10.06, the Parent shall not permit the Issuers or any
Subsidiary Guarantor to consolidate with or merge with or into, or convey or transfer, in one
transaction or a series of transactions, all or substantially all of its assets to any Person,
unless:

     (1) (i) the resulting, surviving or transferee Person (if not such Issuer or

 

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such Subsidiary) shall be a Person organized and existing under the laws of the
jurisdiction under which such Issuer or Subsidiary was organized or under the laws of the
United States of America or any state or jurisdiction thereof and (ii) such Person shall
expressly assume, by a supplemental indenture, all the obligations of such Issuer or
Subsidiary Guarantor, as applicable, under the Notes or its Subsidiary Guaranty, as
applicable; provided, however, that the foregoing requirements shall not apply in the case
of a Subsidiary Guarantor or all or substantially all of its assets (x) that has been
disposed of in its entirety to another Person (other than to the Parent or an Affiliate of
the Parent), whether through a merger, consolidation or sale of Capital Stock or assets or
(y) that, as a result of the disposition of all or a portion of its Capital Stock, ceases
to be a Subsidiary, so long as, in both cases, in connection therewith the Parent provides
an Officer’s Certificate to the Trustee to the effect that the Parent shall comply with its
obligations under Section 4.11;

     (2) immediately after giving effect to such transaction or transactions on a pro forma
basis (and treating any Indebtedness which becomes an obligation of the resulting,
surviving or transferee Person as a result of such transaction as having been issued by
such Person at the time of such transaction), no Default shall have occurred and be
continuing; and

     (3) the Parent delivers to the Trustee an Officer’s Certificate and an Opinion of
Counsel, each stating that such consolidation, merger or transfer and such supplemental
indenture, if any, complies with this Indenture and, with respect to the Opinion of
Counsel, that the supplemental indenture constitutes a valid and binding obligation
enforceable against the Issuers, the Subsidiary Guarantors, the Parent and the surviving
Persons.

          (c) Notwithstanding the foregoing, any Subsidiary Guarantor may (i) merge with an Affiliate
of the Parent or a Restricted Subsidiary of the Parent or another Subsidiary Guarantor solely for
the purpose of changing the state of domicile of the Subsidiary Guarantor, (ii) merge with or into
or transfer all or part of its properties and assets to another Subsidiary Guarantor, the Issuers
or the Parent (provided that this clause (ii) shall not permit a Senior Guaranty Subsidiary to
merge with or into or transfer all or part of its properties and assets to any Subordinated
Subsidiary Guarantor), or (iii) convert into a corporation, partnership, limited partnership,
limited liability company or trust organized under the laws of the jurisdiction of organization of
such Subsidiary Guarantor.

          (d) Upon any such consolidation or merger of an Issuer or a Guarantor, or any such conveyance
or transfer of all or substantially all of the assets of an Issuer in accordance with this Section
5.01, in which such Issuer or such Guarantor is not the continuing obligor under the Notes or its
Guaranty, the surviving entity formed by such consolidation or into which such Issuer or such
Guarantor is merged or the entity to which the conveyance or transfer is made shall succeed to, and
be substituted for, and may exercise every right and power of, such Issuer or such Guarantor under
this Indenture, the Notes and the Guaranties with the same effect as if such surviving entity or

 

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other entity had been named herein or therein as such Issuer or such Guarantor and such Issuer
or such Guarantor, as the case may be, shall be released from the obligation to pay the principal
of and interest on the Notes or in respect of its Guaranty, as the case may be, and all of such
Issuer’s or such Guarantor’s other obligations and covenants under the Notes, this Indenture and
its Guaranty, if applicable. The Trustee shall enter into a supplemental indenture to evidence the
succession and substitution of such surviving entity or other entity and such discharge and release
of such Issuer or such Guarantor.

ARTICLE SIX

Default and Remedies

          SECTION 6.01. Events of Default. Each of the following is an “Event of
Default”:

     (1) default in the payment of principal of, or premium, if any, on any Note when they
are due and payable at maturity, upon acceleration, redemption or otherwise;

     (2) default in the payment of interest on any Note when they are due and payable, and
such default continues for a period of 30 days;

     (3) default in the performance or breach of the provisions of this Indenture
applicable to mergers, consolidations and transfers of all or substantially all of the
assets of the Parent or the failure by the Issuers to consummate an Offer to Purchase in
accordance with Section 4.07 or Section 4.11;

     (4) the Parent defaults in the performance of or breaches any other covenant or
agreement of the Parent in this Indenture or under the Notes (other than a default
specified in clause (1), (2) or (3) above) and such default or breach continues for 60
consecutive days after written notice by the Trustee or the Holders of 25% or more in
aggregate principal amount of the Notes;

     (5) there occurs with respect to any issue or issues of Indebtedness of the Parent or
any Significant Subsidiary having an outstanding principal amount of $20,000,000 or more in
the aggregate for all such issues of all such Persons, whether such Indebtedness now exists
or shall hereafter be created,

     (i) an event of default that has caused the holder thereof to declare such
Indebtedness to be due and payable prior to its Stated Maturity and such
Indebtedness has not been discharged in full or such acceleration has not been
rescinded or annulled within 30 days of such acceleration and/or

     (ii) the failure to make a principal payment at the final (but not any
interim) fixed maturity and such defaulted payment shall not have been made, waived
or extended within 30 days of such payment default;

     (6) any final and non-appealable judgment or order (not covered by

 

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insurance) for the payment of money in excess of $20,000,000 in the aggregate for all
such final judgments or orders against all such Persons (treating any deductibles,
self-insurance or retention as not covered by insurance):

     (i) shall be rendered against the Parent or any Significant Subsidiary and
shall not be paid or discharged and

     (ii) there shall be any period of 60 consecutive days following entry of the
final judgment or order that causes the aggregate amount for all such final
judgments or orders outstanding and not paid or discharged against all such Persons
to exceed $20,000,000 during which a stay of enforcement of such final judgment or
order, by reason of a pending appeal or otherwise, shall not be in effect;

     (7) a court of competent jurisdiction enters a decree or order for:

     (i) relief in respect of the Parent or any Significant Subsidiary in an
involuntary case under any applicable Bankruptcy Law now or hereafter in effect,

     (ii) appointment of a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of the Parent or any Significant Subsidiary or for
all or substantially all of the property and assets of the Parent or any
Significant Subsidiary or

     (iii) the winding up or liquidation of the affairs of the Parent or any
Significant Subsidiary and, in each case, such decree or order shall remain
unstayed and in effect for a period of 60 consecutive days; or

     (8) the Parent or any Significant Subsidiary:

     (i) commences a voluntary case under any applicable Bankruptcy Law now or
hereafter in effect, or consents to the entry of an order for relief in an
involuntary case under such law,

     (ii) consents to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official of the
Parent or such Significant Subsidiary or for all or substantially all of the
property and assets of the Parent or such Significant Subsidiary or

     (iii) effects any general assignment for the benefit of its creditors.

          SECTION 6.02. Acceleration. If an Event of Default (other than an Event of Default
specified in clause (7) or (8) of Section 6.01 that occurs with respect to the Parent or the
Issuers) occurs and is continuing under this Indenture, the Trustee or the Holders of at least 25%
in aggregate principal amount of the Notes then outstanding, by written notice to the Issuers (and
to the Trustee if such notice is given by the Holders), may, and the Trustee at the request of the
Holders of at least 25% in aggregate principal

 

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amount of the Notes then outstanding shall, declare the principal of, premium, if any, and
accrued interest on the Notes to be immediately due and payable. Upon a declaration of
acceleration, such principal of, premium, if any, and accrued interest shall be immediately due and
payable. In the event of a declaration of acceleration because an Event of Default set forth in
clause (5) of Section 6.01 has occurred and is continuing, such declaration of acceleration shall
be automatically rescinded and annulled if the event of default triggering such Event of Default
pursuant to clause (5) of Section 6.01 shall be remedied or cured by the Parent or the relevant
Significant Subsidiary or waived by the holders of the relevant Indebtedness within 60 days after
the declaration of acceleration with respect thereto.

          If an Event of Default specified in clause (7) or (8) of Section 6.01 occurs with respect to
the Parent or the Issuers, the principal of, premium, if any, and accrued interest on the Notes
then outstanding shall automatically become and be immediately due and payable without any
declaration or other act on the part of the Trustee or any Holder. The Holders of at least a
majority in principal amount of the outstanding Notes by written notice to the Issuers and to the
Trustee may waive all past defaults and rescind and annul a declaration of acceleration and its
consequences if:

     (x) all existing Events of Default, other than the nonpayment of the principal of,
premium, if any, and interest on the Notes that have become due solely by such declaration
of acceleration, have been cured or waived; and

     (y) the rescission would not conflict with any judgment or decree of a court of
competent jurisdiction.

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

          SECTION 6.03. Other Remedies. If a Default occurs and is continuing, the Trustee may
pursue any available remedy by proceeding at law or in equity to collect the payment of principal
of, or interest on, the Notes or to enforce the performance of any provision of the Notes or this
Indenture.

          The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not
produce any of them in the proceeding. A delay or omission by the Trustee or any Holder in
exercising any right or remedy accruing upon a Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Default. No remedy is exclusive of any other remedy.
All available remedies are cumulative to the extent permitted by law.

          SECTION 6.04. Waiver of Past Defaults. Subject to Sections 2.09, 6.07 and 9.02, the
Holders of a majority in principal amount of the outstanding Notes (which may include consents
obtained in connection with a tender offer or exchange offer of Notes) by notice to the Trustee
may, on behalf of the Holders of all the Notes, waive an existing Default or Event of Default and
its consequences, except a Default in the payment of principal of, or interest on, any Note as
specified in Section 6.01(1) or (2).

 

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The Issuers shall deliver to the Trustee an Officer’s Certificate stating that the requisite
percentage of Holders have consented to such waiver and attaching copies of such consents. When a
Default is waived, it is cured and ceases to exist, and any Event of Default arising therefrom
shall be deemed to have been cured and not to have occurred for every purpose of this Indenture;
but no such waiver shall extend to any subsequent or other Default or impair any right consequent
thereon.

          SECTION 6.05. Control by Majority. The Holders of at least a majority in aggregate
principal amount of the outstanding Notes may direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or power conferred on
the Trustee. Subject to Section 7.01, however, the Trustee may refuse to follow any direction that
conflicts with any law or this Indenture, that may involve the Trustee in personal liability, or
that the Trustee determines in good faith may be unduly prejudicial to the rights of Holders of
Notes not joining in the giving of such direction received from the Holders of Notes; provided,
however, that the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

          SECTION 6.06. Limitation on Suits. No Holder shall have any right to institute any
proceeding with respect to this Indenture or for any remedy thereunder, unless:

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

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

     (3) such Holder or Holders offer the Trustee indemnity satisfactory to the Trustee
against any costs, liability or expense;

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

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

          However, such limitations do not apply to the right of any Holder of a Note to receive payment
of the principal of, premium, if any, or interest on, such Note or to bring suit for the
enforcement of any such payment on or after the due date expressed in the Notes, which right shall
not be impaired or affected without the consent of the Holder.

          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.

          SECTION 6.07. Rights of Holders To Receive Payment.

 

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Notwithstanding any other provision of this Indenture, the right of any Holder to receive
payment of principal of and premium, if any, and interest on, a Note, on or after the respective
due dates therefor, 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 the Holder.

          SECTION 6.08. Collection Suit by Trustee. If a Default in payment of principal or
interest specified in Section 6.01(1) or (2) occurs and is continuing, the Trustee may recover
judgment in its own name and as trustee of an express trust against the Issuers or any other
obligor on the Notes for the whole amount of principal and accrued interest and fees remaining
unpaid, together with interest on overdue principal and, to the extent that payment of such
interest is lawful, interest on overdue installments of interest, in each case at the rate per
annum borne by the Notes and such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel.

          SECTION 6.09. Trustee May File Proofs of Claim. The Trustee may file such proofs of
claim and other papers or documents as may be necessary or advisable in order to have the claims of
the Trustee (including any claim for the compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and the Holders allowed in any judicial proceedings relating to
the Issuers, their creditors or their property and 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 and, in the event that the Trustee shall consent to the making of
such payments directly to the Holders, to pay to the Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agent and
counsel, and any other amounts due the Trustee under Section 7.07. Nothing herein contained shall
be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or
the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of
any Holder in any such proceeding. The Trustee shall be entitled to participate as a member of any
official committee of creditors in the matters as it deems necessary or advisable.

          SECTION 6.10. Priorities. If the Trustee collects any money or property pursuant to
this Article Six, it shall pay out the money or property in the following order:

          First: to the Trustee for amounts due under Section 7.07;

          Second: to Holders for interest accrued on the Notes, ratably, without preference or priority
of any kind, according to the amounts due and payable on the Notes for interest;

 

78

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

          Fourth: to the Issuers.

          The Trustee 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. In any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by
it as Trustee, a court in its discretion may require the filing by any party litigant in the suit
of an undertaking to pay the costs of the suit, and the court in its discretion may assess
reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in
the suit, having due regard to the merits and good faith of the claims or defenses made by the
party litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by a Holder
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 or any Holder has
instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding
has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee
or to such Holder, then and in every such case, subject to any determination in such proceedings or
any other proceedings, the Issuers, the Trustee and the Holders shall be restored severally and
respectively to their former positions hereunder and thereafter all rights and remedies hereunder
of the Trustee and the Holders shall continue as though no such proceeding has been instituted.

ARTICLE SEVEN

Trustee

          SECTION 7.01. Duties of Trustee. (a) If a Default has occurred and is continuing,
the Trustee shall exercise such of the rights and powers vested in it by this Indenture and use the
same degree of care and skill in their exercise as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.

          (b) Except during the continuance of a Default:

     (1) The Trustee need perform only those duties as are specifically set forth herein or
in the Trust Indenture Act and no duties, covenants, responsibilities or obligations shall
be implied in this Indenture against the Trustee.

     (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 (including Officer’s Certificates) or opinions (including Opinions of Counsel)
furnished to the Trustee and conforming to the requirements

 

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of this Indenture. However, in the case of any such certificates or opinions which by
any provision hereof are specifically required to be 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 (but need not confirm or investigate the accuracy of
mathematical calculations or other facts stated therein).

          (c) Notwithstanding anything to the contrary herein, 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:

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

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

     (3) the Trustee 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 financial liability in the performance of any of its duties hereunder or to
take or omit to take any action under this Indenture or take any action at the request or direction
of Holders if it shall have reasonable grounds for believing that repayment of such funds is not
assured to it.

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

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

          (g) In the absence of bad faith, negligence or willful misconduct on the part of the Trustee,
the Trustee shall not be responsible for the application of any money by any Paying Agent other
than the Trustee.

          SECTION 7.02. Rights of Trustee. Subject to Section 7.01:

          (a) The Trustee may rely conclusively on any resolution, certificate (including any Officer’s
Certificate), statement, instrument, opinion (including any Opinion of Counsel), notice, request,
direction, consent, order, bond, debenture 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.

 

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          (b) Before the Trustee acts or refrains from acting, it may require an Officer’s Certificate
and an Opinion of Counsel, which shall conform to the provisions of Section 12.05. The Trustee
shall not be liable for any action it takes or omits to take in good faith in reliance on such
Officer’s Certificate or Opinion of Counsel.

          (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 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 may consult with counsel of its selection and the advice or opinion of such
counsel as to matters of law shall be full and complete authorization and protection from liability
in respect of any action taken, omitted or suffered by it hereunder in good faith and in accordance
with the advice or opinion of such counsel.

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

          (g) The Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate (including any Officer’s Certificate), statement, instrument,
opinion (including any Opinion of Counsel), 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 Issuers, to examine the books, records, and premises of the Issuers, personally or by
agent or attorney at the sole cost of the Issuers and shall incur no liability of any kind by
reason of such inquiry or investigation.

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

          (i) The permissive rights of the Trustee to do things enumerated in this Indenture shall not
be construed as duties.

          (j) Except with respect to Sections 4.01 and 4.05, the Trustee shall have no duty to inquire
as to the performance of the Issuers with respect to the covenants contained in Article Four. In
addition, the Trustee shall not be deemed to have knowledge of an Event of Default except (i) any
Default or Event of Default occurring pursuant to Section 4.01, 6.01(1) or 6.01(2) or (ii) any
Default or Event of Default actually known to a Responsible Officer.

          (k) The rights, privileges, protections, immunities and benefits given to

 

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the Trustee, including its right to be indemnified, are extended to, and shall be enforceable
by, the Trustee in each of its capacities hereunder, and to each agent, custodian and other Person
employed to act hereunder.

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

          (m) The Trustee may request that the Issuers deliver a certificate setting forth the names of
individuals and/or titles of officers authorized at such time to take specified actions pursuant to
this Indenture.

          (n) Any request or direction of the Issuers mentioned herein shall be sufficiently evidenced
by an Issuer request or Issuer order and any resolution of the Board of Directors may be
sufficiently evidenced by a Board Resolution.

          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 Issuers,
their Subsidiaries 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 shall comply with
Sections 7.10 and 7.11.

          SECTION 7.04. Trustee’s Disclaimer. The Trustee shall not be responsible for and
makes no representation as to the validity or adequacy of this Indenture or the Notes, it shall not
be accountable for the Issuers’ use of the proceeds from the Notes, and it shall not be responsible
for any statement of the Issuers in this Indenture or any document issued in connection with the
sale of Notes or any statement in the Notes other than the Trustee’s certificate of authentication.
The Trustee makes no representations with respect to the effectiveness or adequacy of this
Indenture.

          SECTION 7.05. Notice of Default. If a Default occurs and is continuing and is deemed
to be known to the Trustee pursuant to Section 7.02(j), the Trustee shall mail to each Holder
notice of the uncured Default within 60 days after such Default occurs. Except in the case of a
Default in payment of principal of, or interest on, any Note, including an accelerated payment and
the failure to make a payment on a Payment Date pursuant to an Offer to Purchase or a Default in
complying with the provisions of Article Five, the Trustee may withhold the notice if and so long
as a Responsible Officer of the Trustee in good faith determines that withholding the notice is in
the interest of the Holders.

          SECTION 7.06. Reports by Trustee to Holders. Within 60 days after each May 15,
beginning with May 15, 2012, the Trustee shall, to the extent that any of the events described in
Trust Indenture Act § 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 Trust Indenture Act § 313(a).
The Trustee also shall comply with Trust Indenture Act §§ 313(b), 313(c) and 313(d).

 

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          A copy of each report at the time of its mailing to Holders shall be mailed to the Issuers and
filed with the SEC and each securities exchange, if any, on which the Notes are listed.

          The Issuers shall notify the Trustee if the Notes become listed on any securities exchange or
of any delisting thereof and the Trustee shall comply with Trust Indenture Act § 313(d).

          SECTION 7.07. Compensation and Indemnity. The Issuers and Guarantors, jointly and
severally, shall pay to the Trustee from time to time such compensation as the Issuers, Guarantors
and the Trustee shall from time to time agree in writing for its services hereunder. The Trustee’s
compensation shall not be limited by any law on compensation of a trustee of an express trust. The
Issuers shall reimburse the Trustee upon request for all disbursements, reasonable expenses and
advances (including reasonable fees and expenses of counsel) incurred or made by it in addition to
the compensation for its services, except any such disbursements, expenses and advances as shall be
determined to have been caused by the Trustee’s own negligence, bad faith or willful misconduct.
Such expenses shall include the reasonable fees and expenses of the Trustee’s agents and counsel.

          The Issuers and the Guarantors, jointly and severally, shall indemnify each of the Trustee or
any predecessor Trustee and its agents for, and hold them harmless against, any and all loss,
damage, claims including taxes (other than taxes based upon, measured by or determined by the
income of the Trustee), liability or expense incurred by them arising out of or in connection with
the acceptance or administration of this trust including the reasonable costs and expenses of
defending themselves against or investigating any claim or liability in connection with the
exercise or performance of any of the Trustee’s rights, powers or duties hereunder, except for such
loss, damage, liability, claims or expenses determined to have been caused by any negligence, bad
faith or willful misconduct on the part of the Trustee. The Trustee shall notify the Issuers
promptly of any claim asserted against the Trustee or any of its agents for which it may seek
indemnity of which a Corporate Trust Office has received written notice. The Issuers may, subject
to the approval of the Trustee (which approval shall not be unreasonably withheld), defend the
claim and the Trustee shall cooperate in the defense. The Trustee and its agents subject to the
claim may have separate counsel and the Issuers shall pay the reasonable fees and expenses of such
counsel; provided, however, that the Issuers shall not be required to pay such fees and expenses
if, subject to the approval of the Trustee (which approval shall not be unreasonably withheld), the
Issuers assume the Trustee’s defense and there is no conflict of interest between the Issuers and
the Trustee and its agents subject to the claim in connection with such defense as reasonably
determined by the Trustee. The Issuers need not pay for any settlement made without their written
consent (which consent shall not be unreasonably withheld). Notwithstanding the foregoing, the
Issuers need not reimburse any expense or indemnify against any loss or liability determined to
have been caused by the Trustee through its own negligence, bad faith or willful misconduct.

 

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          Notwithstanding anything to the contrary in this Indenture, to secure the Issuers’ and the
Guarantors’ payment obligations in this Section 7.07, the Trustee shall have a Lien prior to the
Notes against all money or property held or collected by the Trustee, in its capacity as Trustee,
except money or property held in trust to pay principal and interest on particular Notes.

          When the Trustee incurs expenses or renders services after a Default specified in Section
6.01(7) or 6.01(8) occurs, such expenses and the compensation for such services shall be paid to
the extent allowed under any Bankruptcy Law.

          Notwithstanding any other provision in this Indenture, the foregoing provisions of this
Section 7.07 shall survive the satisfaction and discharge of this Indenture or the appointment of a
successor Trustee.

          The Trustee shall comply with the provisions of Trust Indenture Act § 313(b)(2) to the extent
applicable.

          SECTION 7.08. Replacement of Trustee. A resignation or removal of the Trustee and
appointment of a successor Trustee shall become effective only upon the successor Trustee’s
acceptance of appointment as provided in this Section 7.08. The Trustee may resign with 60 days
prior written notice by so notifying the Issuers in writing. The Holders of a majority in
principal amount of the outstanding Notes may remove the Trustee by so notifying the Issuers and
the Trustee and may appoint a successor Trustee. The Issuers may remove the Trustee if:

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

     (2) the Trustee is adjudged a bankrupt or an insolvent;

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

     (4) the Trustee becomes incapable of acting.

          If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Issuers shall notify each Holder 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
principal amount of the Notes may appoint a successor Trustee to replace the successor Trustee
appointed by the Issuers.

          A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Issuers. Immediately after that, the retiring Trustee shall transfer, after
payment of all sums then owing to the Trustee pursuant to Section 7.07, all property held by it as
Trustee to the successor Trustee, subject to the Lien provided in Section 7.07, the resignation or
removal of the retiring Trustee shall become effective, and the successor Trustee shall have all
the rights, powers and duties of the Trustee under this Indenture. A successor Trustee shall mail
notice of its succession to each Holder.

 

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          If a successor Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee (at the expense of the Issuers), the Issuers 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 at the expense of the Issuers.

          If the Trustee fails to comply with Section 7.10, any Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

          Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Issuers’
obligations under Section 7.07 shall continue for the benefit of the retiring Trustee.

          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 corporation, the resulting, surviving or transferee corporation without any further act
shall, if such resulting, surviving or transferee corporation is otherwise eligible hereunder, be
the successor Trustee; provided that such corporation shall be otherwise qualified and eligible
under this Article Seven.

          SECTION 7.10. Eligibility; Disqualification. This Indenture shall always have a
Trustee who satisfies the requirement of Trust Indenture Act §§ 310(a)(1), 310(a)(2) and 310(a)(5).
The Trustee shall have a combined capital and surplus of at least $100,000,000 as set forth in its
most recent published annual report of condition. The Trustee shall comply with Trust Indenture
Act § 310(b); provided, however, that there shall be excluded from the operation of Trust Indenture
Act § 310(b)(1) any indenture or indentures under which other securities, or certificates of
interest or participation in other securities, of the Issuers are outstanding, if the requirements
for such exclusion set forth in Trust Indenture Act § 310(b)(1) are met. The provisions of Trust
Indenture Act § 310 shall apply to the Issuers and any other obligor of the Notes.

          SECTION 7.11. Preferential Collection of Claims Against the Issuers. The Trustee, in
its capacity as Trustee hereunder, shall comply with Trust Indenture Act § 311(a), excluding any
creditor relationship listed in Trust Indenture Act § 311(b). A Trustee who has resigned or been
removed shall be subject to Trust Indenture Act § 311(a) to the extent indicated.

ARTICLE EIGHT

Discharge of Indenture; Defeasance

          SECTION 8.01. Termination of the Issuers’ Obligations. The Issuers may terminate
their obligations under the Notes and this Indenture and the obligations of the Guarantors under
the Guaranties and this Indenture, and this Indenture shall cease to be of further effect, except
those obligations referred to in the penultimate paragraph of this Section 8.01, if:

 

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     (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 Issuers and thereafter repaid to the Issuers 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 (1)
have become due and payable or (2) will become due and payable within one year, or
are to be called for redemption within one year, under arrangements reasonably
satisfactory to the Trustee for the giving of notice of redemption by the Trustee
in the name, and at the expense, of the Issuers, and the Issuers have 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, and interest on
the Notes to the date of maturity or redemption, as the case may be, together with
irrevocable instructions from the Issuers directing the Trustee to apply such funds
to the payment thereof at maturity or redemption, as the case may be;

     (2) the Issuers have paid all other sums payable under this Indenture by the Parent or
the Issuers, and

     (3) the Issuers have delivered to the Trustee an Officer’s 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.

          In the case of clause (B) of this Section 8.01, and subject to the next sentence and
notwithstanding the foregoing paragraph, the Issuers’ obligations in Sections 2.05, 2.06, 2.07,
2.08, 4.01, 4.02, 4.03 (as to legal existence of the Issuers only), 7.07, 8.05 and 8.06 shall
survive until the Notes are no longer outstanding pursuant to the last paragraph of Section 2.08.
After the Notes are no longer outstanding, the Issuers’ obligations in Sections 7.07, 8.05 and 8.06
shall survive such satisfaction and discharge.

          After such delivery or irrevocable deposit, the Trustee upon request shall acknowledge in
writing the discharge of the Issuers’ obligations under the Notes and this Indenture except for
those surviving obligations specified above.

          SECTION 8.02. Legal Defeasance and Covenant Defeasance. (a) The Issuers may, at
their option and at any time, elect to have either paragraph (b) or (c) below be applied to all
outstanding Notes upon compliance with the conditions set forth in Section 8.03.

          (b) Upon the Issuers’ exercise under Section 8.02(a) hereof of the option

 

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applicable to this Section 8.02(b), the Issuers and the Guarantors shall, subject to the
satisfaction of the conditions set forth in Section 8.03, be deemed to have been discharged from
their obligations with respect to all outstanding Notes on the date the conditions set forth below
are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means
that the Issuers and the Guarantors shall be deemed to have paid and discharged the entire
Indebtedness represented by the outstanding Notes and Guaranties, which shall thereafter be deemed
to be “outstanding” only for the purposes of Section 8.04 hereof and the other Sections of this
Indenture referred to in clauses (i) and (ii) below, and to have satisfied all of their other
obligations under such Notes and this Indenture and the Guarantors shall be deemed to have
satisfied all of their obligations under the Guaranties and this Indenture (and the Trustee, on
demand of and at the expense of the Issuers, shall execute proper instruments acknowledging the
same), except for the following provisions 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 Section 8.04, and as more fully set forth in such Section
8.04, payments in respect of the principal of, premium, if any, and interest on
such Notes when such payments are due;

     (ii) the Issuers’ obligations with respect to such Notes concerning issuing
temporary Notes, registration of Notes, mutilated, destroyed, lost or stolen Notes
and Section 4.02 hereof;

     (iii) the rights, powers, trusts, duties and immunities of the Trustee, and
the Issuers’ obligations in connection therewith; and

     (iv) the provisions of this Article Eight applicable to Legal Defeasance.

          Subject to compliance with this Article Eight, the Issuers may exercise their option under
this Section 8.02(b) notwithstanding the prior exercise of their option under Section 8.02(c).

          (c) Upon the Issuers’ exercise under Section 8.02(a) hereof of the option applicable to this
Section 8.02(c), the Issuers and the Guarantors shall, subject to the satisfaction of the
conditions set forth in Section 8.03, be released from their respective obligations under the
covenants contained in Sections 4.03 (other than with respect to the legal existence of the
Issuers), 4.04, 4.07 through 4.17 and clause (3) of Section 5.01(a) with respect to the outstanding
Notes on and after the date the conditions set forth in Section 8.03 are satisfied (hereinafter,
“Covenant Defeasance”), and the Notes shall thereafter be deemed not “outstanding” for the
purposes of any direction, waiver, consent or declaration or act of Holders (and the consequences
of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding”
for all other purposes hereunder (it being understood that such Notes shall not be deemed
outstanding for accounting purposes). For this purpose, Covenant Defeasance means that, with
respect to the outstanding Notes, the Issuers and the Guarantors may omit to comply with and shall

 

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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 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 Issuers’ exercise under Section 8.02(a) hereof of the
option applicable to this paragraph (c), subject to the satisfaction of the conditions set forth in
Section 8.03, clauses (3), (4), (5) and (6) of Section 6.01 shall not constitute Events of Default.

          SECTION 8.03. Conditions to Legal Defeasance or Covenant Defeasance. The following
shall be the conditions to the application of either Section 8.02(b) or 8.02(c) hereof to the
outstanding Notes:

     (1) the Issuers shall irrevocably deposit with the Trustee, in trust, for the benefit
of the Holders, U.S. Legal Tender, U.S. Government Obligations or a combination thereof, in
such amounts as will be sufficient (without reinvestment), in the opinion of a nationally
recognized firm of independent public accountants selected by the Issuers, to pay the
principal of and interest and premium, if any, on the Notes on the stated date for payment
or on the redemption date of the Notes;

     (2) in the case of Legal Defeasance, the Issuers shall have delivered to the Trustee
an Opinion of Counsel in the United States confirming that:

	 	(a)	 	the Issuers have received from, or there has been
published by the Internal Revenue Service, a ruling, or
	 
	 	(b)	 	since the date of this Indenture, there has been a
change in the applicable U.S. Federal income tax law,

in either case to the effect that, and based thereon this Opinion of Counsel shall confirm that the
Holders and beneficial owners will not recognize income, gain or loss for U.S. Federal income tax
purposes as a result of such Legal Defeasance and will be subject to U.S. Federal income tax on the
same amounts, in the same manner and at the same times as would have been the case if such Legal
Defeasance had not occurred;

     (3) in the case of Covenant Defeasance, the Issuers shall have delivered to the
Trustee an Opinion of Counsel in the United States reasonably acceptable to the Trustee
confirming that the Holders and beneficial owners will not recognize income, gain or loss
for U.S. Federal income tax purposes as a result of such Covenant Defeasance and will be
subject to U.S. Federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Covenant Defeasance had not occurred;

     (4) no Default shall have occurred and be continuing on the date of such deposit
(other than a Default resulting from the borrowing of funds to be applied to such deposit
and any similar and simultaneous deposit relating to other

 

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Indebtedness and, in each case, the granting of Liens on the funds deposited in
connection therewith);

     (5) the Legal Defeasance or Covenant Defeasance shall not result in a breach or
violation of, or constitute a default under any other material agreement or instrument
(other than this Indenture) to which the Parent or any of its Subsidiaries is a party or by
which the Parent or any of its Subsidiaries is bound (other than any such Default or
default relating to any Indebtedness being defeased from any borrowing of funds to be
applied to such deposit and any similar and simultaneous deposit relating to such
Indebtedness, and the granting of Liens on the funds deposited in connection therewith);

     (6) the Issuers shall have delivered to the Trustee an Officer’s Certificate stating
that the deposit was not made by them with the intent of preferring the Holders over any
other creditors of the Issuers or with the intent of defeating, hindering, delaying or
defrauding any other creditors of the Issuers or others; and

     (7) the Issuers shall have delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each stating that the conditions provided for in, in the case of the
Officer’s Certificate, clauses (1) through (6), as applicable, and, in the case of the
Opinion of Counsel, clauses (2), if applicable, and/or (3) and (5) of this Section 8.03
have been complied with.

          SECTION 8.04. Application of Trust Money. Subject to Section 8.05, the Trustee or
Paying Agent shall hold in trust all U.S. Legal Tender and U.S. Government Obligations deposited
with it pursuant to this Article Eight, and shall apply the deposited U.S. Legal Tender and the
money from U.S. Government Obligations in accordance with this Indenture to the payment of the
principal of and the interest on the Notes. The Trustee shall be under no obligation to invest
said U.S. Legal Tender and U.S. Government Obligations, except as it may agree with the Issuers.

          The Issuers shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the U.S. Legal Tender and U.S. Government Obligations deposited pursuant to
Section 8.03 or the principal and interest received in respect thereof, other than any such tax,
fee or other charge which by law is for the account of the Holders of the outstanding Notes.

          Anything in this Article Eight to the contrary notwithstanding, the Trustee shall deliver or
pay to the Issuers from time to time upon the Issuers’ request any U.S. Legal Tender and U.S.
Government Obligations held by it as provided in Section 8.03 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.

          SECTION 8.05. Repayment to the Issuers. The Trustee and the Paying Agent shall pay to
the Issuers upon request any money held by them for the

 

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payment of principal or interest that remains unclaimed for two years. After payment to the
Issuers, Holders entitled to such money shall look to the Issuers for payment as general creditors
unless an applicable law designates another Person.

          SECTION 8.06. Reinstatement. If the Trustee or Paying Agent is unable to apply any
U.S. Legal Tender and U.S. Government Obligations in accordance with this Article Eight 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 Issuers’
obligations under this Indenture, and the Notes and the Guaranties shall be revived and reinstated
as though no deposit had occurred pursuant to this Article Eight until such time as the Trustee or
Paying Agent is permitted to apply all such U.S. Legal Tender and U.S. Government Obligations in
accordance with this Article Eight; provided that if the Issuers have made any payment of interest
on, or principal of, any Notes because of the reinstatement of its obligations, the Issuers shall
be subrogated to the rights of the Holders of such Notes to receive such payment from the U.S.
Legal Tender and U.S. Government Obligations held by the Trustee or Paying Agent.

ARTICLE NINE

Amendments, Supplements and Waivers

          SECTION 9.01. Without Consent of Holders. (a) The Parent, the Issuers, the
Guarantors and the Trustee, together, may amend or supplement this Indenture, the Notes or the
Guaranties without notice to or consent of any Holder:

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

     (2) to provide for the assumption by a successor corporation or other entity of the
obligations of the Parent, the Issuers or any Subsidiary Guarantor under this Indenture;

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

     (4) to add guaranties with respect to the Notes, including any Subsidiary Guaranties,
or to secure the Notes;

     (5) to add to the covenants of the Parent, the Issuers or a Subsidiary Guarantor for
the benefit of the Holders or to surrender any right or power conferred upon the Parent,
the Issuers or a Subsidiary Guarantor;

     (6) to make any change that does not adversely affect the rights of any Holder in any
material respect;

     (7) to comply with any requirement of the SEC in order to effect or maintain the
qualification of this Indenture under the Trust Indenture Act;

 

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     (8) to make any amendment to the provisions of this Indenture relating to the transfer
and legending of Notes; provided, however, that (a) compliance with this Indenture as so
amended would not result in Notes being transferred in violation of the Securities Act or
any other applicable securities law and (b) such amendment does not materially and
adversely affect the rights of Holders to transfer Notes;

     (9) to conform the text of this Indenture or the Guaranties or the Notes to any
provision of the “Description of Notes” section of the Offering Memorandum to the extent
that such provision in the “Description of Notes” section of the Offering Memorandum was
intended to be a substantially verbatim recitation of a provision of this Indenture, the
Guaranties or the Notes;

     (10) to evidence and provide for the acceptance of appointment by a successor trustee,
provided that the successor trustee is otherwise qualified and eligible to act as such
under the terms of this Indenture;

     (11) to release a Subsidiary Guarantor from its Subsidiary Guaranty as permitted by
and in accordance with this Indenture;

     (12) to provide for a reduction in the minimum denominations of the Notes;

     (13) to comply with the rules of any applicable securities depositary; or

     (14) to provide for the issuance of Additional Notes and related guarantees in
accordance with the limitations set forth in this Indenture.

          SECTION 9.02. With Consent of Holders. (a) Subject to Section 6.07, the Issuers, the
Guarantors and the Trustee, together, with the consent of the Holder or Holders of not less than a
majority in aggregate principal amount of the outstanding Notes may amend or supplement this
Indenture, the Notes or the Guaranties, without notice to any other Holders. Subject to Section
6.07, the Holder or Holders of not less than a majority in aggregate principal amount of the
outstanding Notes may waive compliance with any provision of this Indenture, the Notes or the
Guaranties without notice to any other Holders.

          (b) Notwithstanding Section 9.02(a), without the consent of each Holder affected, no
amendment or waiver may:

     (1) change the Stated Maturity of the principal of, or any installment of interest on,
any Note;

     (2) reduce the principal amount of, or premium, if any, or interest on, any Note;

     (3) change the place of payment of principal of, or premium, if any, or interest on,
any Note;

 

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     (4) impair the right to institute suit for the enforcement of any payment on or after
the Stated Maturity (or, in the case of a redemption, on or after the Redemption Date) of
any Note;

     (5) reduce the above-stated percentage of outstanding Notes the consent of whose
Holders is necessary to modify or amend this Indenture;

     (6) waive a default in the payment of principal of, premium, if any, or interest on
the Notes (except a rescission of the declaration of acceleration of the Notes by the
Holders of at least a majority in aggregate principal amount of the Notes then outstanding
and a waiver of the payment default that resulted from such acceleration, so long as all
other existing Events of Default, other than the nonpayment of the principal of, premium,
if any, and interest on the Notes that have become due solely by such declaration of
acceleration, have been cured or waived);

     (7) voluntarily release a Guarantor of the Notes, except as permitted by this
Indenture;

     (8) reduce the percentage or aggregate principal amount of outstanding Notes the
consent of whose Holders is necessary for waiver of compliance with Sections 6.02 and 6.04;
or

     (9) modify or change any provisions of this Indenture affecting the ranking of the
Notes or the Guaranties as to right of payment or in any manner adverse to the Holders of
the Notes in any material respect.

          (c) 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.

          (d) A consent to any amendment, supplement or waiver under this Indenture by any Holder given
in connection with an exchange (in the case of an exchange offer) or a tender (in the case of a
tender offer) of such Holder’s Notes shall not be rendered invalid by such tender or exchange.

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

          (f) Neither the Parent nor any Affiliate of the Parent may, directly or indirectly, pay or
cause to be paid any consideration, whether by way of interest, fee or otherwise, to any Holder for
or as an inducement to any consent, waiver or amendment of any of the terms or provisions of this
Indenture or the Notes unless such consideration is offered to all Holders and is paid to all
Holders that so consent, waive or agree to amend in the time frame set forth in solicitation
documents relating to such consent, waiver or

 

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agreement.

          SECTION 9.03. Compliance with the Trust Indenture Act. From the date on which this
Indenture is qualified under the Trust Indenture Act, every amendment, waiver or supplement of this
Indenture, the Notes or the Guaranties shall comply with the Trust Indenture Act as then in effect.

          SECTION 9.04. Revocation and Effect of Consents. Until an amendment, waiver or
supplement becomes effective, 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. However, any
such Holder or subsequent Holder may revoke the consent as to his Note or portion of his Note by
notice to the Trustee or the Issuers received before the date on which the Trustee receives an
Officer’s 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.

          The Issuers 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, which record
date shall be at least 30 days prior to the first solicitation of such consent. 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 90 days after such record date. The Issuers shall inform the Trustee in writing of the
fixed record date if applicable.

          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 (9) of Section 9.02(b), 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, however, that any such waiver shall not impair or affect the
right of any Holder to receive payment of principal of, and interest on, a Note, on or after the
respective due dates therefor, 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 Issuers may require the Holder of the Note to deliver it to the
Trustee. The Issuers shall provide the Trustee with an appropriate notation on the Note about the
changed terms and cause the Trustee to return it to the Holder at the Issuers’ expense.
Alternatively, if the Issuers or the Trustee so determines, the Issuers in exchange for the Note
shall issue, and the Trustee shall authenticate, a new Note that reflects the changed terms.
Failure to make the appropriate notation or issue a new Note shall not affect the validity and
effect of such amendment, supplement or waiver.

 

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          SECTION 9.06. Trustee To Sign Amendments, Etc.. The Trustee shall execute any
amendment, supplement or waiver authorized pursuant to this Article Nine; provided, however, that
the Trustee may, but shall not be obligated to, execute any such amendment, supplement or waiver
which affects the Trustee’s own rights, duties or immunities under this Indenture. The Trustee
shall be provided with, and shall be fully protected in relying upon, an Opinion of Counsel and an
Officer’s 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 and
constitutes legal, valid and binding obligations of the Issuers enforceable in accordance with its
terms, subject to customary exceptions. Such Opinion of Counsel shall be at the expense of the
Issuers.

ARTICLE TEN

Guaranties

          SECTION 10.01. Guaranties. Subject to this Article Ten, each Guarantor hereby
unconditionally and irrevocably guarantees, jointly and severally, to each Holder and to the
Trustee and its successors and assigns (a) the full and punctual payment of principal of and
interest on the Notes when due, whether at maturity, by acceleration, by redemption or otherwise,
and all other monetary obligations of the Issuers under this Indenture and the Notes and (b) the
full and punctual performance within applicable grace periods of all other obligations of the
Issuers under this Indenture and the Notes (all the foregoing being hereinafter collectively called
the “Guaranteed Obligations”). Each Guarantor further agrees that the Guaranteed
Obligations may be extended or renewed, in whole or in part, without notice or further assent from
such Guarantor and that such Guarantor will remain bound under this Article Ten notwithstanding any
extension or renewal of any Guaranteed Obligation.

          Subject to Section 6.06 hereof, each Guarantor waives, to the extent permitted by applicable
law, (i) presentation to, demand of, payment from and protest to the Issuers of any of the
Guaranteed Obligations, (ii) notice of protest for nonpayment and (iii) notice of any default under
the Notes or the Guaranteed Obligations. The obligations of each Guarantor hereunder shall not be
affected by (1) the failure of any Holder or the Trustee to assert any claim or demand or to
enforce any right or remedy against the Issuers or any other Person (including any Guarantor) under
this Indenture, the Notes or any other agreement or otherwise; (2) any extension or renewal of any
thereof; (3) any rescission, waiver, amendment or modification of any of the terms or provisions of
this Indenture, the Notes or any other agreement; (4) the release of any security held by any
Holder or the Trustee for the Guaranteed Obligations or any of them; (5) the failure of any Holder
or the Trustee to exercise any right or remedy against any other guarantor of the Guaranteed
Obligations; or (6) except as set forth in Section 10.06, any change in the ownership of such
Guarantor.

          Each Guarantor further agrees that its Guaranty herein constitutes a guarantee of payment,
performance and compliance when due (and not a guarantee of collection) and waives any right to
require that any resort be had by any Holder or the Trustee to any security held for payment of the
Guaranteed Obligations.

 

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          Each Subordinated Subsidiary Guaranty is, to the extent and in the manner set forth in Article
Eleven, subordinated and subject in right of payment to the prior payment in full of the principal
of and premium, if any, and interest on all Designated Senior Debt of the Subordinated Subsidiary
Guarantor giving such Subordinated Subsidiary Guaranty and each Subordinated Subsidiary Guaranty is
made subject to such provisions of this Indenture.

          Except as expressly set forth in Sections 8.01(B), 10.02 and 10.06, the obligations of each
Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination
for any reason, including any claim of waiver, release, surrender, alteration or compromise, and
shall not be subject to any defense of setoff, counterclaim, recoupment or termination whatsoever
or by reason of the invalidity, illegality or unenforceability of the Guaranteed Obligations or
otherwise. Without limiting the generality of the foregoing, the obligations of each Guarantor
herein shall not be discharged or impaired or otherwise affected by the failure of any Holder or
the Trustee to assert any claim or demand or to enforce any remedy under this Indenture, the Notes
or any other agreement, by any waiver or modification of any thereof, by any default, failure or
delay, willful or otherwise, in the performance of the obligations, or by any other act or thing or
omission or delay to do any other act or thing which may or might in any manner or to any extent
vary the risk of such Guarantor or would otherwise operate as a discharge of such Guarantor as a
matter of law or equity.

          Each Guarantor further agrees that its Guarantee herein shall continue to be effective or be
reinstated, as the case may be, if at any time payment, or any part thereof, of principal of or
interest on any Obligation is rescinded or must otherwise be restored by any Holder or the Trustee
upon the bankruptcy or reorganization of the Issuers or otherwise.

          In furtherance of the foregoing and not in limitation of any other right which any Holder or
the Trustee has at law or in equity against any Guarantor by virtue hereof, upon the failure of the
Issuers to pay the principal of or interest on any Guaranteed Obligation when and as the same shall
become due, whether at maturity, by acceleration, by redemption or otherwise, or to perform or
comply with any other Guaranteed Obligation, each Guarantor hereby promises to and shall, upon
receipt of written demand by the Trustee, forthwith pay, or cause to be paid, in cash, to the
Holders or the Trustee an amount equal to the sum of (A) the unpaid amount of such Guaranteed
Obligations, and (B) accrued and unpaid interest on such Guaranteed Obligations (but only to the
extent not prohibited by law).

          Each Guarantor agrees that it shall not be entitled to any right of subrogation in respect of
any Guaranteed Obligations guaranteed hereby until payment in full in cash or Cash Equivalents of
all Guaranteed Obligations and all obligations to which the Guaranteed Obligations are subordinated
as provided in Article Eleven. Each Guarantor further agrees that, as between it, on the one hand,
and the Holders and the Trustee, on the other hand, (i) the maturity of the Guaranteed Obligations
hereby may be accelerated as provided in Article Six for the purposes of such Guarantor’s Guaranty
herein, notwithstanding any stay, injunction or other prohibition preventing such

 

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acceleration in respect of the Guaranteed Obligations guaranteed hereby, and (ii) in the event
of any declaration of acceleration of such Guaranteed Obligations as provided in Article Six, such
Guaranteed Obligations (whether or not due and payable) shall forthwith become due and payable by
such Guarantor for the purposes of this Section.

          Each Guarantor shall pay any and all costs and expenses (including reasonable attorneys’ fees)
incurred by the Trustee or any Holder in enforcing any rights under this Section.

          SECTION 10.02. Limitation on Liability. Any term or provision of this Indenture to
the contrary notwithstanding, the maximum aggregate amount of the Guaranteed Obligations guaranteed
hereunder by any Subsidiary Guarantor shall not exceed the maximum amount that can be hereby
guaranteed without rendering this Indenture, as it relates to such Subsidiary Guarantor, voidable
under applicable law relating to fraudulent conveyance or fraudulent transfer or similar laws
affecting the rights of creditors generally.

          SECTION 10.03. Successors and Assigns. This Article Ten shall be binding upon each
Guarantor and its successors and assigns 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 conferred upon that party in this Indenture
and in the Notes shall automatically extend to and be vested in such transferee or assignee, all
subject to the terms and conditions of this Indenture.

          SECTION 10.04. No Waiver. Neither a failure nor a delay on the part of either the
Trustee or the Holders in exercising any right, power or privilege under this Article Ten shall
operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or
further exercise of any right, power or privilege. The rights, remedies and benefits of the
Trustee and the Holders herein expressly specified are cumulative and not exclusive of any other
rights, remedies or benefits which either may have under this Article Ten at law, in equity, by
statute or otherwise.

          SECTION 10.05. Modification. No modification, amendment or waiver of any provision of
this Article Ten, nor the consent to any departure by any Guarantor therefrom, shall in any event
be effective unless the same shall be in writing and signed by the Trustee, and then such waiver or
consent shall be effective only in the specific instance and for the purpose for which given. No
notice to or demand on any Guarantor in any case shall entitle such Guarantor to any other or
further notice or demand in the same, similar or other circumstances.

          SECTION 10.06. Release of Subsidiary Guarantor. A Subsidiary Guarantor will be
released from its obligations under this Article Ten (other than any obligation that may have
arisen under Section 10.07):

     (1) upon the sale (including any sale pursuant to any exercise of remedies by a holder
of Indebtedness of the the Parent, the Issuers or of such Subsidiary

 

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Guarantor) or other disposition (including by way of consolidation or merger) of a
Subsidiary Guarantor, including the sale or disposition of the Capital Stock of a
Subsidiary Guarantor, following which such Subsidiary Guarantor is no longer a Subsidiary
of the Parent,

     (2) upon the sale or disposition of all or substantially all the assets of such
Subsidiary Guarantor,

     (3) in connection with the merger or consolidation of a Subsidiary Guarantor with (a)
an Issuer or (b) any other Guarantor (provided that the surviving entity remains a
Guarantor),

     (4) upon the Parent properly designating such Subsidiary Guarantor as an Unrestricted
Subsidiary under this Indenture,

     (5) upon a liquidation or dissolution of such Subsidiary Guarantor permitted under
this Indenture,

     (6) upon the release or discharge of the Guaranty that resulted in the creation of
such Subsidiary Guaranty, except a discharge or release by or as a result of payment under
such Guaranty, or

     (7) upon the Legal Defeasance or Covenant Defeasance or satisfaction and discharge of
this Indenture,

provided, however, that in the case of clauses (1) and (2) above, (i) such sale or
other disposition is made to a Person other than the Parent or a Subsidiary of the Parent, (ii)
such sale or disposition is otherwise permitted by this Indenture and (iii) the Parent provides an
Officers’ Certificate to the Trustee to the effect that the Parent will comply with its obligations
under Section 4.11. At the request of the Parent, the Trustee shall execute and deliver an
appropriate instrument evidencing such release.

          SECTION 10.07. Contribution. Each Subsidiary Guarantor that makes a payment under its
Subsidiary Guaranty shall be entitled upon payment in full of all Guaranteed Obligations under this
Indenture to a contribution from each other Subsidiary Guarantor in an amount equal to such other
Subsidiary Guarantor’s pro rata portion of such payment based on the respective net
assets of all the Subsidiary Guarantors at the time of such payment determined in accordance with
GAAP.

ARTICLE ELEVEN

Subordination of Certain Subsidiary Guaranties

          SECTION 11.01. Definitions. For purpose of this Article Eleven, the following terms
used herein shall have the following meanings:

          “Bankruptcy Code” shall mean Title 11 of the United States Code.

 

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          “Borrowers” shall mean the “Borrowers” as defined in the Senior Loan Agreement.

          “Collateral” shall mean any and all property which now constitutes or hereafter will
constitute collateral or other security for payment of the Designated Senior Debt.

          “Credit Documents” shall mean the “Credit Documents” as defined in the Senior Loan
Agreement.

          “Debt” shall mean the Designated Senior Debt and Subordinated Subsidiary Guaranty,
collectively.

          “Designated Senior Debt” shall mean and include (a) all of the Obligations and all
other indebtedness and liabilities of any Subordinated Subsidiary Guarantor under the Senior Loan
Documents described in clause (1) of the definition thereof, (b) to the extent so designated by the
Issuers as “Designated Senior Debt” for purposes of this Article Eleven, any Permitted Refinancing
Indebtedness incurred in exchange for, or the net proceeds of which are used to refund, refinance
or replace, the indebtedness and liabilities of any Subordinated Subsidiary Guarantor described in
clause (a) of this definition and that was otherwise permitted by this Indenture, including,
without limitation, in the case of (a) and (b), all principal and interest thereon (including
interest accrued subsequent to, and interest that would have accrued but for, the filing of any
petition under any bankruptcy, insolvency or similar law or the commencement of any Proceeding),
fees, expenses, reimbursements and other amounts payable thereunder or in connection therewith, and
(c) any indebtedness or liabilities of any Subordinated Subsidiary Guarantor to Senior Creditors
under any Currency Agreement or Interest Rate Agreement that is secured by assets of any
Subordinated Subsidiary Guarantor.

          “Liens” shall mean any mortgage, deed of trust, deed to secured debt, pledge,
hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or
preference, priority or other security interest or preferential arrangement of any kind or nature
whatsoever (including any conditional sale or other title retention agreement, and any financing
lease having substantially the same economic effect as any of the foregoing).

          “Obligations” shall mean the “Obligations” as defined in the Senior Loan Agreement.

          “Proceeding” shall mean any (a) insolvency, bankruptcy, receivership, custodianship,
liquidation, reorganization, readjustment, composition or other similar proceeding relating to any
Subordinated Subsidiary Guarantor or any of its properties, whether under any bankruptcy,
reorganization or insolvency law or laws, federal or state, or any law, federal or state, relating
to relief of debtors, readjustment of indebtedness, reorganization, composition or extension, (b)
proceeding for any liquidation, liquidating distribution, dissolution or other winding up of any
Subordinated Subsidiary Guarantor, voluntary or involuntary, whether or not involving insolvency or
bankruptcy proceedings,

 

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(c) assignment for the benefit of creditors of any Subordinated Subsidiary Guarantor, or (d)
other marshalling of the assets of any Subordinated Subsidiary Guarantor.

          “Proceeds” shall have the meaning assigned to it under the UCC, shall also include
“products” (as defined in the UCC), and, in any event, shall include, but not be limited to (a) any
and all proceeds of any insurance, indemnity, warranty, letter of credit or guaranty or collateral
security payable to any debtor or grantor from time to time with respect to any of the Collateral,
(b) any and all payments (in any form whatsoever) made or due and payable to the owner of the
Collateral from time to time in connection with any requisition, confiscation, condemnation,
seizure or forfeiture or all of any part of the Collateral by an government body, authority, bureau
or agency (or any Person acting under color of governmental authority), and (c) any and all other
amounts from time to time paid or payable under or in connection with any of the Collateral.

          “Senior Agent” shall mean (1) General Electric Capital Corporation, a Delaware
corporation, in its capacity as Administrative Agent for the Senior Creditors or (2) to the extent
so designated by the Issuers and notified to the Trustee, the agent or representative under any
Designated Senior Debt described in clause (b) of the definition of Designated Senior Debt.

          “Senior Creditors” shall mean the Lenders under the Senior Loan Agreement and shall
include all other present or future holders of all or part of the Designated Senior Debt, and their
respective successors and assigns.

          “Senior Loan Agreement” shall mean that certain Credit Agreement dated as of September
17, 2010 by and among the Lenders party thereto and the Senior Agent.

          “Senior Loan Documents” means (1) the Senior Loan Agreement and each and every
document executed or delivered in connection with the Senior Loan Agreement, including the Credit
Documents and all other security agreements, pledge agreements, stock pledges, mortgages, deeds,
certificates and instruments, as each may be amended, restated, supplemented, or otherwise modified
from time to time and (2) any other loan agreement or other related agreement executed or delivered
in connection with any Designated Senior Debt described in clause (b) of the definition of
Designated Senior Debt.

          “Subordinated Creditors” shall mean the Holders of the Notes.

          “Subordinated Debt” shall mean and include all indebtedness, obligations, and
liabilities of any Subordinated Subsidiary Guarantor under this Indenture, including all principal
and interest, fees, expenses, reimbursements, indemnities and rights to indemnification, and other
amounts payable by or chargeable to any Subordinated Subsidiary Guarantor thereunder.

          “Subordinated Loan Documents” means this Indenture and each and every document
executed or delivered by any Subordinated Subsidiary Guarantor in connection with the Subordinated
Subsidiary Guaranty (whether now existing or hereafter arising),

 

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as the same may be amended, restated, supplemented, or otherwise modified from time to time in
accordance with the terms of this Article Eleven.

          “UCC” shall mean the Uniform Commercial Code as in effect from time to time in the
State of Illinois.

          SECTION 11.02. General. Notwithstanding any provision of the Senior Loan Documents or
the Subordinated Loan Documents, (a) the Subordinated Debt shall be subordinate, junior and
inferior in right of payment to all Designated Senior Debt, to the extent and in the manner
provided for in this Article Eleven and (b) no payments shall be permitted to be made, accepted, or
retained on the Subordinated Debt other than as expressly permitted in Section 11.03 hereof. The
Trustee, by the execution and delivery hereof, agrees on behalf of Subordinated Creditors to be
bound by the provisions of this Article Eleven. As further provided in Section 11.05, neither the
Trustee nor any Subordinated Creditor shall contest the validity, perfection, priority, or
enforceability of any Lien granted or ostensibly granted by any Subordinated Subsidiary Guarantor
to, or arising in favor of, Senior Agent or any Senior Creditor, any payment on the Designated
Senior Debt, or the allowance of the Designated Senior Debt as a senior secured claim, and Trustee,
for itself and on behalf of the Subordinated Creditors, agrees to cooperate in the defense of any
action contesting the validity, perfection, priority, or enforceability of such Liens or such
payment or allowance. The Trustee, for itself and on behalf of the Subordinated Creditors, agrees
that, as between Senior Lenders and Subordinated Creditors, the terms of this Article Eleven shall
govern even if part or all of the Designated Senior Debt or the Liens securing payment and
performance thereof are avoided, disallowed, set aside, or otherwise invalidated in any judicial
proceeding or otherwise.

          SECTION 11.03. Permitted Payments. No direct payments (whether principal, interest,
indemnities or otherwise) shall be made by the Subordinated Subsidiary Guarantors, or accepted or
retained by the Subordinated Creditors or the Trustee on account of the Subordinated Debt until the
full and final payment in cash and performance of the Obligations under the Senior Loan Documents
(excluding any contingent indemnification obligations not yet due and payable and as to which no
claim or demand for payment has occurred) and the termination of Senior Creditors’ obligations to
make loans or other extensions of credit to all Subordinated Subsidiary Guarantors under the Senior
Loan Agreement; provided that neither this Section 11.03 nor any other Section of this Article
Eleven shall prohibit or restrict the payment of dividends or other distributions by any
Subordinated Subsidiary Guarantor to the holders of its Capital Stock to the extent made in
compliance with the terms of the Senior Loan Agreement.

          SECTION 11.04. No Agency. This Article Eleven shall not create any agency
relationship between Senior Creditors and the Senior Agent, on the one hand, and Subordinated
Creditors and the Trustee, on the other hand.

          SECTION 11.05. Suspension of Remedies of Subordinated Creditors. Neither Trustee, nor
any Subordinated Creditor shall:

 

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          (a) commence, prosecute or participate in any Proceeding against any Subordinated Subsidiary
Guarantor or any of its assets, provided that, as more fully set forth in Section 11.12 hereof, the
Subordinated Creditors and the Trustee may file a proof of claim in a Proceeding involving any
Subordinated Subsidiary Guarantor, which proof of claim shall indicate such Subordinated Creditor’s
subordination hereunder;

          (b) have any right to, possess or attempt to possess any of the assets of any Subordinated
Subsidiary Guarantor, enforce any Lien in, foreclose, levy or execute upon, or collect or attach
any such assets, whether by private or judicial action or otherwise;

          (c) seek, be party to, or accept any Lien granted by any Subordinated Subsidiary Guarantor
to, or arising in favor of, the Trustee (or any Subordinated Creditor) on any assets or properties
of any Subordinated Subsidiary Guarantor;

          (d) take nor consent to, or acquiesce in the taking of, any action hereafter to set aside,
challenge or otherwise dispute the existence or priority of any Designated Senior Debt or the
creation, attachment, perfection or continuation of any Lien grant to or arising in favor of Senior
Agent or any Senior Creditor in any assets of any Subordinated Subsidiary Guarantor; or

          (e) declare or join in the declaration of any Subordinated Debt to be due and payable or
otherwise accelerate the maturity of the principal of the Subordinated Debt, accrued interest
thereon or prepayment premium or other amounts due with respect thereto; provided that this clause
(e) shall cease to apply with respect to the Subordinated Debt of any Subordinated Subsidiary
Guarantor in the event and during the continuance of any Proceeding relating to such Subordinated
Subsidiary Guarantor;

provided, however, that the foregoing limitations shall terminate upon the full and
final payment in cash and performance of the Obligations under the Senior Loan Documents (excluding
any contingent indemnification obligations not yet due and payable and as to which no claim or
demand for payment has occurred) and the termination of Senior Creditors’ obligations to make
extensions of credit to the Subordinated Subsidiary Guarantors under the Senior Loan Agreement.

          SECTION 11.06. Matters Relating to Liens. The Trustee acknowledges and agrees on
behalf of the Subordinated Creditors that no Liens on any of the assets or properties of any
Subordinated Subsidiary Guarantor now or in the future shall secure any Subordinated Subsidiary
Guarantor’s obligations under the Subordinated Subsidiary Guaranty or otherwise with respect to the
Subordinated Debt until the full and final payment in cash and performance of the Obligations under
the Senior Loan Documents (excluding any contingent indemnification obligations not yet due and
payable and as to which no claim or demand for payment has occurred) and the termination of Senior
Creditors’ obligations to make extensions of credit to the Borrowers under the Senior Loan
Agreement. The Trustee acknowledges and agrees on behalf of the Subordinated Creditors that
notwithstanding the foregoing, any and all Liens affecting any of the real or personal property of
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Guarantor, now, heretofore, or hereafter granted by any Subordinated Subsidiary Guarantor to,
or arising in favor of, any Subordinated Creditor or the Trustee are hereby, and shall at all times
hereafter continue to be, subordinated in Lien and priority to all Liens now, heretofore, or
hereafter granted by such Subordinated Subsidiary Guarantor to, or arising in favor of, the Senior
Creditors or Senior Agent, notwithstanding the date, time, manner or order of perfection or
attachment of such Liens or the recording of the instruments and financing statements creating or
perfecting such Liens, and notwithstanding the usual application of the priority provisions of the
Uniform Commercial Code as in effect in any jurisdiction or any other applicable law or judicial
decision of any jurisdiction. The Lien priorities provided in this Section shall not be altered or
otherwise affected by any amendment, modification, supplement, extension, renewal, restatement or
refinancing of either the Designated Senior Debt or the Subordinated Debt nor by any action or
inaction which the Trustee or any Subordinated Creditor or Senior Agent or any Senior Creditor may
take or fail to take in respect of any of the collateral securing any of the Debt.

          SECTION 11.07. Payments Notwithstanding. No payment or distribution of any character,
whether in cash, securities or other property, to which Subordinated Creditors would have been
entitled except for the provisions of this Article Eleven and that shall have been made to or for
the account of any Senior Creditor shall, as between any Subordinated Subsidiary Guarantor and its
creditors (other than Senior Creditors), be deemed to be a payment or distribution by such
Subordinated Subsidiary Guarantor to or for the account of any Senior Creditor, and from and after
the full and final payment in cash and performance of the Obligations under the Senior Loan
Documents (excluding any contingent indemnification obligations not yet due and payable and as to
which no claim or demand for payment has occurred) and the termination of Senior Creditors’
obligations to make extensions of credit to the Borrowers under the Senior Loan Agreement,
Subordinated Creditors shall be subrogated to all rights of Senior Creditors to receive any further
payments or distribution applicable to the Designated Senior Debt until the principal of and
interest on the Subordinated Debt shall be paid in full, and no such payment or distribution made
pursuant to such rights of subrogation to Subordinated Creditors that otherwise would be payable or
distributable to or for the account of Senior Creditors shall, as between any Subordinated
Subsidiary Guarantor and its creditors (other than Subordinated Creditors), be deemed to be a
payment or distribution by such Subordinated Subsidiary Guarantor to Subordinated Creditors or on
account of the Subordinated Debt.

          SECTION 11.08. No Prejudice or Impairment. The provisions of this Article Eleven are
solely for the purposes of defining the relative rights of Senior Creditors, on the one hand, and
Subordinated Creditors, on the other hand. Nothing herein shall impair or prevent any Senior
Creditor from exercising all rights and remedies otherwise permitted by applicable law upon default
under the Senior Loan Documents subject, however, to the provisions of this Article Eleven. Senior
Creditors shall not be prejudiced in the right to enforce subordination of the Subordinated Debt by
any act or failure to act by any Subordinated Subsidiary Guarantor or anyone in custody of its
assets or property. Nothing herein shall impair, as between any Subordinated Subsidiary Guarantor
and the Subordinated Creditors, the obligations of any Subordinated

 

102

Subsidiary Guarantor, which are unconditional and absolute, to pay to the Subordinated
Creditors the principal of and interest on the Subordinated Debt as and when the same shall become
due in accordance with their terms, nor shall anything herein prevent Subordinated Creditors from
exercising all rights and remedies otherwise permitted by applicable law upon default under the
Subordinated Loan Documents, subject in each case, however, to the provisions of this Article
Eleven.

          SECTION 11.09. Turnover of Payments. If any payment, distribution or security, or the
proceeds of any thereof, shall be collected or received by Trustee or any Subordinated Creditor in
contravention of any of the terms of this Article Eleven and prior to the full and final payment in
cash and performance of the Obligations under the Senior Loan Documents (excluding any contingent
indemnification obligations not yet due and payable and as to which no claim or demand for payment
has occurred) and the termination of Senior Creditors’ obligations to make loans or other
extensions of credit to the Borrowers under the Senior Loan Agreement, then, subject to this
Article Eleven, the holder thereof will forthwith deliver such payment, distribution, security or
proceeds to Senior Agent (together with any necessary indorsement), to the extent necessary to pay
all such Designated Senior Debt in full in cash, and, until so delivered, the same shall be held in
trust by such holder as the property of Senior Agent and Senior Creditors. Upon the full and final
payment in cash and performance of the Obligations under the Senior Loan Documents (excluding any
contingent indemnification obligations not yet due and payable and as to which no claim or demand
for payment has occurred) and the termination of Senior Creditors’ obligations to make loans or
other extensions of credit to the Borrowers under the Senior Loan Agreement, Senior Agent and
Senior Creditors shall pay to the Trustee (or such other person or entity who might be lawfully
entitled thereto) any amount in excess thereof that Subordinated Creditors would have been entitled
to but for the application of the immediately preceding sentence, but solely to the extent any such
amount was actually received by Senior Creditors or Senior Agent.

          SECTION 11.10. Waivers and Agreements of the Subordinated Creditor. The Trustee, for
itself and on behalf of the Subordinated Creditors, hereby waives any defense based on the adequacy
of a remedy at law or equity which might be asserted as a bar to the remedy of specific performance
of the terms of this Article Eleven in any action brought therefor by the Senior Agent or any
Senior Creditor. To the fullest extent permitted by applicable law, and except as expressly set
forth herein, the Trustee, for itself and on behalf of the Subordinated Creditors, hereby further
waives any claim it may now or hereafter have against the Senior Agent or any Senior Creditor
arising out of: (i) presentment, demand, protest, notice of protest, notice of default or
dishonor, notice of payment or nonpayment, and any and all other notices and demands of any kind in
connection the Senior Loan Documents and the Designated Senior Debt; and (ii) the right to require
the Senior Agent or any Senior Creditor to marshal any assets or Collateral, or to enforce any Lien
the Senior Agent or any Senior Creditor may now or hereafter have in any assets or Collateral
securing the Designated Senior Debt, or to pursue any claim the Senior Agent or any Senior Creditor
may have against any guarantor of the Designated Senior Debt.

          SECTION 11.11. Separate Classes of Obligations. Notwithstanding

 

103

any provision of the Senior Loan Documents or this Article Eleven, each of Senior Agent,
Trustee, and Subordinated Subsidiary Guarantors hereby agree that the Designated Senior Debt, on
the one hand, and the Subordinated Debt, on the other hand, are and shall be treated for all
purposes as separate and distinct classes of debt obligations of each Subordinated Subsidiary
Guarantor.

          SECTION 11.12. Bankruptcy.

          In connection with any Proceeding, the agreements contained in this Article Eleven shall
remain in full force and effect and enforceable pursuant to their terms in accordance with Section
510(a) of the Bankruptcy Code, and all references herein to any Subordinated Subsidiary Guarantor
shall be deemed to apply to such Subordinated Subsidiary Guarantor as debtor in possession and to
any trustee or receiver for the estate of such Subordinated Subsidiary Guarantor.

          In the event and during the continuance of any Proceeding, all Designated Senior Debt shall
first be fully and finally paid in cash and performed and all of Senior Creditors’ obligations to
extend credit to the Borrowers under the Senior Loan Agreement shall be terminated before any
payment or distribution of any character, whether in cash, securities or other property (except
securities that are subordinate and junior in right of payment to the payment of Designated Senior
Debt in accordance with this Article Eleven at least to the extent provided in this Article Eleven)
shall be made, received, accepted, or retained for or on account of any Subordinated Debt. In the
event of any Proceeding any payment or distribution in any such Proceeding of any kind or
character, whether in cash, securities, or other property that would otherwise (but for this
Article Eleven) be payable or deliverable in respect of any Subordinated Debt shall be paid or
delivered by the person making such distribution or payment, whether a trustee in bankruptcy,
receiver, assignee for the benefit of creditors, liquidating trustee or agent, or otherwise,
directly to Senior Agent for application in payment of the Designated Senior Debt in accordance
with the priorities then existing among such holders to the extent necessary to pay in full all
Designated Senior Debt then remaining unpaid, after giving effect to any concurrent payment or
distribution to the holders of Designated Senior Debt.

          Without limiting the generality of the foregoing, until the full and final payment in cash and
performance of the Obligations under the Senior Loan Documents (excluding any contingent
indemnification obligations not yet due and payable and as to which no claim or demand for payment
has occurred) and the termination of Senior Creditors’ obligations to make loans or other
extensions of credit to the Borrowers under the Senior Loan Agreement, the Trustee agrees that, if
a Proceeding occurs, (i) all or any Senior Creditors may provide financing to the applicable
Subordinated Subsidiary Guarantor or any of its affiliates and subsidiaries pursuant to Section 364
of the Bankruptcy Code or other applicable law on such terms and conditions and in such amounts as
such Senior Creditors, in their sole discretion, may decide, without seeking or obtaining the
consent of the Trustee or any Subordinated Creditor and (ii) the Trustee and Subordinated Creditors
shall not oppose or object to the payment of interest as provided under Section 506(b) and (c) of
the Bankruptcy Code to any holders of the Designated Senior Debt.

 

104

          In connection with any Proceeding, the Trustee agrees that neither the Trustee nor any
Subordinated Creditor will initiate, prosecute, encourage, or assist with any other person or
entity to initiate or prosecute any claim, action, or other proceeding (i) contesting or
challenging the validity or enforceability of this Article Eleven, (ii) contesting or challenging
the validity, perfection, priority, or enforceability of any Liens of Senior Agent or any Senior
Creditor, (iii) contesting or challenging any collection, enforcement, disposition, or acceptance
or retaining of, or other remedial action with respect to, Collateral by Senior Agent or any Senior
Creditor, to the extent related to satisfying Designated Senior Debt, or (iv) asserting any claims,
if any, which any Subordinated Subsidiary Guarantor may hold with respect to any Senior Creditor or
the Designated Senior Debt.

          If in or as a result of any Proceeding Senior Agent or any Senior Creditor returns, refunds,
or repays to any Subordinated Subsidiary Guarantor or any trustee, receiver, or committee appointed
in such Proceeding any payment or Proceeds of any Collateral (the foregoing, a “Recovery”)
in connection with any action, suit, or proceeding alleging that Senior Agent’s or such Senior
Creditor’s receipt of such payment or Proceeds was a transfer voidable or avoidable under state or
federal law, then Senior Agent or such Senior Creditor shall be deemed not to have ever received
such payment or Proceeds for purposes of this Article Eleven in determining whether and when the
payment in full in cash of the Designated Senior Debt has occurred. If this Article Eleven shall
have been terminated prior to such Recovery (except as the result of the effectiveness of a plan of
reorganization adopted in a Proceeding), this Article Eleven shall be reinstated in full force and
effect, and such prior termination shall not diminish, release, discharge, impair, or otherwise
affect the obligations of the parties hereto from such date of reinstatement.

          Notwithstanding any other provision of this Article Eleven, Subordinated Creditors and the
Trustee (1) may file a proof of claim in a Proceeding involving any Subordinated Subsidiary
Guarantor, which proof of claim shall indicate such Subordinated Creditor’s subordination hereunder
and (2) shall be entitled to file any necessary responsive or defensive pleadings in opposition to
any motion, claim, adversary proceeding or other pleading made by any Person objecting to or
otherwise seeking the disallowance of the claims of Subordinated Creditors.

          SECTION 11.13. Sale of Assets. In the event of a sale of some or all of any
Subordinated Subsidiary Guarantor’s assets, whether initiated by Senior Agent and Senior Creditors
(i.e., as part of a liquidation of its Liens) or by such Subordinated Subsidiary Guarantor with
Senior Creditors’ consent, the Trustee agrees to release any Lien in such assets, or any of them,
upon the request of Senior Agent, whether or not the Trustee (or any Subordinated Creditor) will
receive any proceeds from such sale. Should the Trustee fail to do so within five (5) business
days after its receipt of Senior Agent’s request, Senior Agent may, acting as the Trustee’s
attorney-in-fact, do so itself in Trustee’s name. Nothing in this section shall be construed as
any express or implied consent to the Trustee’s or the Subordinated Creditors’ taking, or having
the benefit of, a Lien on any of any Subordinated Subsidiary Guarantor’s assets, and the Trustee
hereby expressly acknowledges and agrees on behalf of the Subordinated Creditors that no Liens

 

105

shall be permitted to secure any of the Subordinated Debt.

          SECTION 11.14. Benefit of Article Eleven. This Article Eleven shall constitute a
continuing offer to all persons and entities who, in reliance upon such provisions, become Senior
Creditors, and such provisions are made for the benefit of Senior Creditors and they may enforce
such provisions. The subordination provisions of this Article Eleven are solely for the purpose of
establishing the priorities of each of the Senior Creditors and the Subordinated Creditors and
shall not inure to the benefit of any other person or entity except for their respective successors
and assigns.

          SECTION 11.15. Acknowledgment Regarding Senior Creditor. The Trustee on behalf of the
Subordinated Creditors hereby acknowledges and agrees that Senior Creditors refers to the “Lenders”
and other secured parties under the Senior Loan Agreement from time to time.

          SECTION 11.16. Amendment; Amendment to Subordinated Loan Documents; Amendments to Senior
Loan Documents. Neither this Article Eleven nor any of the terms hereof may be amended,
waived, discharged, or terminated, unless such amendment, waiver, discharge, or termination is
consented to in a writing signed by Senior Agent and the Trustee, and the parties hereto agree
that, so long as any amendment, restatement, waiver, supplement, or other modification of this
Article Eleven does not modify or alter any Subordinated Subsidiary Guarantor’s obligations to any
Person, (a) neither any Subordinated Subsidiary Guarantors’ consent to nor execution and delivery
of any such amendment, restatement, waiver, supplement, or other modification of this Article
Eleven shall be required and (b) failure to provide any notice to any Subordinated Subsidiary
Guarantor of any amendment, restatement, waiver, supplement, or other modification of this Article
Eleven shall not affect the validity or enforceability thereof; provided, that if any amendment,
restatement, waiver, supplement or other modification of this Article Eleven modifies or alters any
Subordinated Subsidiary Guarantor’s obligations to any Person, then such amendment, restatement,
waiver, supplement or other modification shall not be effective as against such Subordinated
Subsidiary Guarantor unless agreed or acknowledged in writing by such Subordinated Subsidiary
Guarantor. The Senior Creditors and Senior Agent shall have the right, without notice to the
Trustee or any Subordinated Creditor, to amend, restate, supplement, or otherwise modify the Senior
Loan Documents, in accordance with the terms thereof, including any extensions or shortening of
time of payments (even if such shortening causes any Designated Senior Debt to be due on demand or
otherwise), any revision of any amortization schedule with respect thereto, any increase in the
amount of the Designated Senior Debt, any increase in any commitment to lend under the Senior Loan
Agreement, any release of any collateral securing the Designated Senior Debt or the release of any
guarantor guaranteeing the Designated Senior Debt, and any change to the conditions that must be
satisfied before any Subordinated Subsidiary Guarantor may make any payment on any of the
Subordinated Debt, and the Subordinated Creditors consent and agree to each and every such
amendment, restatement, supplement, modification, or release without notice thereof, provided,
however, that no such consent or agreement shall constitute any consent or agreement to any
amendment, restatement, supplement, modification, or release of this Indenture.

 

106

          SECTION 11.17. Rights of Trustee and Paying Agent. The Trustee in its individual or
any other capacity shall be entitled to hold Designated Senior Debt of any Subordinated Subsidiary
Guarantor with the same rights it would have if it were not the Trustee. The Registrar and
co-registrar and the Paying Agent shall be entitled to do the same with like rights. The Trustee
shall be entitled to all the rights set forth in this Article Eleven with respect to any Designated
Senior Debt of any Subordinated Subsidiary Guarantor which may at any time be held by it, to the
same extent as any other holder of such Designated Senior Debt; and nothing in Article Seven shall
deprive the Trustee of any of its rights as such holder. Nothing in this Article Eleven shall
apply to claims of, or payments to, the Trustee under or pursuant to Section 7.08.

          SECTION 11.18. Distribution or Notice to Senior Agent. Whenever any Person is to make
a distribution or give a notice to holders of Designated Senior Debt of any Subordinated Subsidiary
Guarantor, such Person shall be entitled to make such distribution or give such notice to the
Senior Agent.

          SECTION 11.19. Article Eleven Not To Prevent Events of Default. The failure to make a
payment pursuant to a Subordinated Subsidiary Guaranty by reason of any provision in this Article
Eleven shall not be construed as preventing the occurrence of a Default.

          SECTION 11.20. Trustee Entitled To Rely. Upon any payment or distribution pursuant to
this Article Eleven, the Trustee and the Subordinated Creditors shall be entitled to rely (a) upon
any order or decree of a court of competent jurisdiction in which any proceedings of the nature
referred to in Section 11.02 are pending, (b) upon a certificate of the liquidating trustee or
agent or other Person making such payment or distribution to the Trustee or to the Subordinated
Creditors or (c) upon the Senior Agent for the holders of Designated Senior Debt of any Subsidiary
Guarantor for the purpose of ascertaining the Persons entitled to participate in such payment or
distribution, the holders of such Designated Senior Debt and other indebtedness of such
Subordinated Subsidiary Guarantor, the amount thereof or payable thereon, the amount or amounts
paid or distributed thereon and all other facts pertinent thereto or to this Article Eleven. In
the event that the Trustee determines, in good faith, that evidence is required with respect to the
right of any Person as a holder of Designated Senior Debt of any Subordinated Subsidiary Guarantor
to participate in any payment or distribution pursuant to this Article Eleven, the Trustee shall be
entitled to request such Person to furnish evidence to the reasonable satisfaction of the Trustee
as to the amount of Designated Senior Debt of such Subordinated Subsidiary Guarantor held by such
Person, the extent to which such Person is entitled to participate in such payment or distribution
and other facts pertinent to the rights of such Person under this Article Eleven, and, if such
evidence is not furnished, the Trustee shall be entitled to defer any payment to such Person
pending judicial determination as to the right of such Person to receive such payment. The
provisions of Sections 7.01 and 7.03 shall be applicable to all actions or omissions of actions by
the Trustee pursuant to this Article Eleven.

          SECTION 11.21. Trustee To Effectuate Subordination. Each Subordinated Creditor by
accepting a Note authorizes and directs the Trustee on his

 

107

behalf to take such action as may be necessary or appropriate to acknowledge or effectuate the
subordination between the Noteholders and the holders of Designated Senior Debt of any Subordinated
Subsidiary Guarantor as provided in this Article Eleven and appoints the Trustee as
attorney-in-fact for any and all such purposes.

          SECTION 11.22. Trustee Not Fiduciary for Holders of Designated Senior Debt of Subsidiary
Guarantor. The Trustee shall not be deemed to owe any fiduciary duty to the holders of
Designated Senior Debt of any Subsidiary Guarantor and shall not be liable to any such holders if
it shall mistakenly pay over or distribute to Noteholders or the Issuers or any other Person, money
or assets to which any holders of such Designated Senior Debt shall be entitled by virtue of this
Article Eleven or otherwise.

          SECTION 11.23. Reliance by Holders of Designated Senior Debt of Subordinated Subsidiary
Guarantors on Subordination Provisions. Each Noteholder by accepting a Note acknowledges and
agrees that the foregoing subordination provisions are, and are intended to be, an inducement and a
consideration to each holder of any Designated Senior Debt of any Subordinated Subsidiary
Guarantor, whether such Designated Senior Debt was created or acquired before or after the issuance
of the Notes, to acquire and continue to hold, or to continue to hold, such Designated Senior Debt
and such holder of Designated Senior Debt shall be deemed conclusively to have relied on such
subordination provisions in acquiring and continuing to hold, or in continuing to hold, such
Designated Senior Debt.

ARTICLE TWELVE

Miscellaneous

          SECTION 12.01. Trust Indenture Act Controls. If any provision of this Indenture
limits, qualifies, or conflicts with another provision which is required or deemed to be included
in this Indenture by the Trust Indenture Act, such required or deemed provision shall control.

          SECTION 12.02. 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 telex,
by nationally recognized overnight courier service, by telecopier or registered or certified mail,
postage prepaid, return receipt requested, addressed as follows:

     If to the Issuers, the Parent or any other Guarantor:

Aviv Healthcare Properties Limited Partnership

Aviv Healthcare Capital Corporation

c/o Aviv REIT, Inc.

303 West Madison Street, Suite 2400

Chicago, IL 60606

 

108

Facsimile: (312) 855-1684

Attention: Craig M. Bernfield, President and Chief Executive Officer

with a copy to:

Sidley Austin LLP

One South Dearborn Street

Chicago, IL 60603

Facsimile: (312) 853-7036

Attention: Robert L. Verigan

if to the Trustee:

The Bank of New York Mellon Trust Company, N.A.

2 N. LaSalle, Suite 1020

Chicago, IL 60602

Attention: Corporate Trust Department

Telephone: 312-827-8500

Facsimile: 312-827-8542

          Each of the Issuers and the Trustee by written notice to each other such Person may designate
additional or different addresses for notices to such Person. Any notice or communication to the
Issuers and the Trustee, shall be deemed to have been given or made as of the date so delivered if
personally delivered; when replied to; when receipt is acknowledged, if telecopied; five (5)
calendar days after mailing if sent by registered or certified mail, postage prepaid (except that a
notice of change of address shall not be deemed to have been given until actually received by the
addressee); and next Business Day if by nationally recognized overnight courier service.

          The Trustee agrees to accept and act upon instructions or directions of the Issuers pursuant
to this Indenture sent by unsecured e-mail, pdf, facsimile transmission or other similar unsecured
electronic methods, provided, however, that the Trustee shall have received prior to or in
connection with such instructions an incumbency certificate listing persons designated to give such
instructions or directions and containing specimen signatures of such designated persons, which
such incumbency certificate shall be amended and replaced whenever a person is to be added or
deleted from the listing. If the Issuers elect to give the Trustee e-mail or facsimile
instructions (or instructions by a similar electronic method) and the Trustee in its discretion
elects to act upon such instructions, the Trustee’s understanding of such instructions shall be
deemed controlling. The Trustee shall not be liable for any losses, costs or expenses arising
directly or indirectly from the Trustee’s reliance upon and compliance with such instructions
notwithstanding such instructions conflict or are inconsistent with a subsequent written
instruction. The Issuers agree to assume all risks arising out of the use of such electronic
methods to submit instructions and directions to the Trustee, including without limitation the risk
of the Trustee acting on unauthorized instructions, and the risk or interception and misuse by
third parties.

 

109

          Any notice or communication mailed to a Holder shall be mailed to him by first class mail or
other equivalent means at his address as it appears on the registration books of the Registrar and
shall be sufficiently given to him 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 12.03. Communications by Holders with Other Holders. Holders may communicate
pursuant to Trust Indenture Act § 312(b) with other Holders with respect to their rights under this
Indenture, the Notes or the Guaranties. The Issuers, the Trustee, the Registrar and any other
Person shall have the protection of Trust Indenture Act § 312(c).

          SECTION 12.04. Certificate and Opinion as to Conditions Precedent. Upon any request
or application by the Issuers to the Trustee to take any action under this Indenture, the Issuers
shall furnish to the Trustee:

     (1) an Officer’s Certificate, in form and substance reasonably satisfactory to the
Trustee, stating that, in the opinion of the signers, all conditions precedent to be
performed or effected by the Issuers, if any, provided for in this Indenture 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 have been complied with.

          SECTION 12.05. Statements Required in Certificate or Opinion. Each certificate or
opinion with respect to compliance with a condition or covenant provided for in this Indenture,
other than the Officer’s Certificate required by Section 4.05, 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 necessary to enable him to express an informed opinion as to whether or
not such covenant or condition has been complied with or satisfied; and

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

 

110

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

          Any certificate or opinion of an officer of any Person may be based, insofar as it relates to
legal matters, upon a certificate or opinion of, or representations by, counsel, unless such
officer knows, or in the exercise of reasonable care should know, that the certificate or opinion
or representations with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or opinion of, or representation by, counsel or any Opinion of
Counsel may be based, insofar as it relates to factual matters, upon certificates of public
officials or upon a certificate or opinion of, or representations by, an officer or officers of
either Issuer or any Guarantor (including an Officer’s Certificate) stating that the information
with respect to such factual matters is in the possession of such Issuer or such Guarantor unless
such counsel knows, or in the exercise of reasonable care should know, that the certificate or
opinion or representations with respect to such matters are erroneous.

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

          SECTION 12.06. Rules by Paying Agent or Registrar. The Paying Agent or Registrar may
make reasonable rules and set reasonable requirements for their functions.

          SECTION 12.07. Legal Holidays. If a Payment Date is not a Business Day, payment may
be made on the next succeeding day that is a Business Day.

          SECTION 12.08. Governing Law; Waiver of Jury Trial. This Indenture, the Notes and the
Guaranties will be governed by and construed in accordance with the laws of the State of New York.
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
INDENTURE, THE NOTES, THE GUARANTIES OR THE TRANSACTION CONTEMPLATED HEREBY.

          SECTION 12.09. No Adverse Interpretation of Other Agreements. This Indenture may not
be used to interpret another indenture, loan or debt agreement of any of the Parent, the Issuers or
any of their Subsidiaries. Any such indenture, loan or debt agreement may not be used to interpret
this Indenture.

          SECTION 12.10. No Recourse Against Others. No recourse for the

 

111

payment of the principal of, premium, if any, or interest on any of the Notes or for any claim
based thereon or otherwise in respect thereof, and no recourse under or upon any obligation,
covenant or agreement of the Parent, the Issuers or the Guarantors in this Indenture, or in any of
the Notes or Guaranties or because of the creation of any Indebtedness represented hereby, shall be
had against any incorporator, stockholder, officer, director, employee or controlling person of the
Parent, the Issuers or the Guarantors or of any successor Person thereof. Each Holder, by accepting
the Notes, waives and releases all such liability. Such waiver and release are part of the
consideration for issuance of the Notes.

          SECTION 12.11. Successors. All agreements of the Issuers and the Guarantors in this
Indenture, the Notes and the Guaranties shall bind their respective successors. All agreements of
the Trustee in this Indenture shall bind its successor.

          SECTION 12.12. Duplicate Originals. All parties may sign any number of copies of this
Indenture. Each signed copy or counterpart shall be an original, but all of them together shall
represent the same agreement. Delivery of an executed counterpart of a signature page to this
Indenture by facsimile, .pdf transmission, email or other electronic means shall be effective as
delivery of a manually executed counterpart of this Indenture.

          SECTION 12.13. Severability. To the extent permitted by applicable law, in case any
one or more of the provisions in this Indenture, in the Notes or in the Guaranties 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 12.14. U.S.A. Patriot Act. The parties hereto acknowledge that in accordance
with Section 326 of the U.S.A. Patriot Act, the Trustee, like all financial institutions and in
order to help fight the funding of terrorism and money laundering, is required to obtain, verify,
and record information that identifies each person or legal entity that establishes a relationship
or opens an account with the Trustee. The parties to this Indenture agree that they will provide
the Trustee with such information as it may request in order for the Trustee to satisfy the
requirements of the U.S.A. Patriot Act.

          SECTION 12.15. Force Majeure. In no event shall the Trustee be responsible or liable
for any failure or delay in the performance of its obligations hereunder arising out of or caused
by, directly or indirectly, forces beyond its control, including without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions or utilities, communications
or computer (software and hardware) services; it being understood that the Trustee shall use
reasonable efforts which are consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances.

 

 

SIGNATURES

          IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed all as
of the date first written above.

	 	 	 	 	 	 	 

	 	 	AVIV HEALTHCARE PROPERTIES LIMITED PARTNERSHIP, as
Issuer	 	 
	 
	 	 	 	 	 	 
	 	 	By: Aviv REIT, Inc., its general partner	 	 
	 
	 

	 	By:
	 	/s/ Craig M. Bernfield	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Craig M. Bernfield	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	AVIV HEALTHCARE CAPITAL CORPORATION, as Issuer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Craig M. Bernfield	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Craig M. Bernfield	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	AVIV REIT, INC., as Parent and a Guarantor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Craig M. Bernfield	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Craig M. Bernfield	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	AVIV OP LIMITED PARTNER, L.L.C. and	 	 
	 	 	AVIV ASSET MANAGEMENT, L.L.C.,	 	 
	 	 	as Subsidiary Guarantors	 	 
	 
	 	 	 	 	 	 
	 	 	By: Aviv Healthcare Properties Limited Partnership,

their sole member	 	 
	 
	 	 	 	 	 	 
	 	 	By: Aviv REIT, Inc., its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Craig M. Bernfield	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Craig M. Bernfield	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 

Indenture

 

 

	 	 	 	 	 	 	 

	 	 	AVIV HEALTHCARE PROPERTIES OPERATING PARTNERSHIP I,
L.P.,
as a Subsidiary Guarantor	 	 
	 
	 	 	 	 	 	 
	 	 	By: Aviv Healthcare Properties Limited Partnership,

its general partner	 	 
	 
	 	 	 	 	 	 
	 	 	By: Aviv REIT, Inc., its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Craig M. Bernfield	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Craig M. Bernfield	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	AVIV FINANCING I, L.L.C.,	 	 
	 	 	AVIV FINANCING II, L.L.C.,	 	 
	 	 	AVIV FINANCING III, L.L.C.,	 	 
	 	 	AVIV FINANCING IV, L.L.C. and

AVIV FINANCING V, L.L.C.,

as Subsidiary Guarantors	 	 
	 
	 	 	 	 	 	 
	 	 	By: Aviv Healthcare Properties Operating Partnership
I, L.P., their sole member	 	 
	 
	 	 	 	 	 	 
	 	 	By: Aviv Healthcare Properties Limited Partnership,

its general partner	 	 
	 
	 	 	 	 	 	 
	 	 	By: Aviv REIT, Inc., its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Craig M. Bernfield	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Craig M. Bernfield	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 

Indenture

 

 

	 	 	 	 	 	 	 

	 	 	SKAGIT AVIV, L.L.C., as a Subsidiary Guarantor	 	 
	 
	 	 	 	 	 	 
	 	 	By: Aviv Financing II, L.L.C., its sole member	 	 
	 
	 	 	 	 	 	 
	 	 	By: Aviv Healthcare Properties Operating Partnership
I, L.P., its sole member	 	 
	 
	 	 	 	 	 	 
	 	 	By: Aviv Healthcare Properties Limited Partnership,

its general partner	 	 
	 
	 	 	 	 	 	 
	 	 	By: Aviv REIT, Inc., its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Craig M. Bernfield	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Craig M. Bernfield	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	The entities listed on Schedule B hereto,

as Subsidiary Guarantors	 	 
	 
	 	 	 	 	 	 
	 	 	By: Aviv Financing I, L.L.C., their sole member	 	 
	 
	 	 	 	 	 	 
	 	 	By: Aviv Healthcare Properties Operating Partnership
I, L.P., its sole member	 	 
	 
	 	 	 	 	 	 
	 	 	By: Aviv Healthcare Properties Limited Partnership,

its general partner	 	 
	 
	 	 	 	 	 	 
	 	 	By: Aviv REIT, Inc., its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Craig M. Bernfield	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Craig M. Bernfield	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 

Indenture

 

 

	 	 	 	 	 	 	 

	 	 	The entities listed on Schedule C hereto,

as Subsidiary Guarantors	 	 
	 
	 	 	 	 	 	 
	 	 	By: Aviv Financing III, L.L.C., their sole member	 	 
	 
	 	 	 	 	 	 
	 	 	By: Aviv Healthcare Properties Operating Partnership
I, L.P., its sole member	 	 
	 
	 	 	 	 	 	 
	 	 	By: Aviv Healthcare Properties Limited Partnership,

its general partner	 	 
	 
	 	 	 	 	 	 
	 	 	By: Aviv REIT, Inc., its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Craig M. Bernfield	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Craig M. Bernfield	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 

Indenture

 

 

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

as Trustee,

 	 
	 	By:  	/s/ Mary Callahan
 	 
	 	 	Name:  	Mary Callahan 	 
	 	 	Title:  	Vice President 	 
	 

Indenture

 

Schedule A

Annualized Rents — 12/31/2010

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G/L Entity	 	 	 	Facility Name	 	Operator	 	State	 	12/10 Rent	 	 	Annualized	 	 	 	 	Notes
	 	 	 	 	 
	COG111
	 	1	 	Ogden (aka Lomond Peak)	 	24/7	 	UT	 	$	44,808.87	 	 	$	537,706.44	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CBI159
	 	2	 	Helia of Belleville (fka Willow Creek)	 	Bridgemark	 	IL	 	$	49,172.71	 	 	$	590,072.52	 	 	 	 	 
	CEY100
	 	3	 	Hillside	 	Bridgemark	 	IL	 	$	29,656.50	 	 	$	355,878.00	 	 	 	 	 
	CFF170
	 	4	 	Four Fountains	 	Bridgemark	 	IL	 	$	61,988.63	 	 	$	743,863.56	 	 	 	 	 
	CXI096
	 	5	 	Helia of Zion (fka Arbor View)	 	Bridgemark	 	IL	 	 	 	 	 	$	—	 	 	 	 	 
	CCR019
	 	6	 	Helia of Olney (fka Richland)	 	Bridgemark	 	IL	 	 	 	 	 	$	—	 	 	 	 	 
	CCR015
	 	7	 	Helia of Rolla (fka Heritage Park)	 	Bridgemark	 	MO	 	$	131,493.50	 	 	$	1,577,922.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CBH001
	 	8	 	Brighten at Ambler	 	Brighten	 	PA	 	$	292,171.86	 	 	$	3,506,062.32	 	 	 	 	 
	CBH003
	 	9	 	Brighten at Bryn Mawr	 	Brighten	 	PA	 	 	 	 	 	$	—	 	 	 	 	 
	CBH004
	 	10	 	Brighten at Julia Ribaudo	 	Brighten	 	PA	 	 	 	 	 	$	—	 	 	 	 	 
	CBH005
	 	11	 	Brighten at Medford	 	Brighten	 	MA	 	 	 	 	 	$	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CAS009
	 	12	 	Casa Real	 	Cathedral Rock	 	NM	 	$	73,110.94	 	 	$	877,331.28	 	 	 	 	 
	CCY011
	 	13	 	Clayton	 	Cathedral Rock	 	NM	 	$	20,184.18	 	 	$	242,210.16	 	 	 	 	 
	CHO012
	 	14	 	Country Cottage	 	Cathedral Rock	 	NM	 	$	30,442.03	 	 	$	365,304.36	 	 	 	 	 
	CKA006
	 	15	 	Austin (aka South Congress)	 	Cathedral Rock	 	TX	 	$	61,537.55	 	 	$	738,450.60	 	 	 	 	 
	CKA013
	 	16	 	Dove Hill (fka Forrest Ridge)	 	Cathedral Rock	 	TX	 	$	58,986.29	 	 	$	707,835.48	 	 	 	 	 
	CNB008
	 	17	 	Bloomfield	 	Cathedral Rock	 	NM	 	$	44,849.15	 	 	$	538,189.80	 	 	 	 	 
	CNE014
	 	18	 	Espanola Valley	 	Cathedral Rock	 	NM	 	$	62,232.21	 	 	$	746,786.52	 	 	 	 	 
	CNL021
	 	19	 	Sunshine Haven at Lordsburg	 	Cathedral Rock	 	NM	 	$	36,477.39	 	 	$	437,728.68	 	 	 	 	 
	CNS020
	 	20	 	Silver City	 	Cathedral Rock	 	NM	 	$	51,860.17	 	 	$	622,322.04	 	 	 	 	 
	CRA017
	 	21	 	Raton	 	Cathedral Rock	 	NM	 	$	32,071.73	 	 	$	384,860.76	 	 	 	 	 
	CRR018
	 	22	 	Red Rocks	 	Cathedral Rock	 	NM	 	$	37,893.22	 	 	$	454,718.64	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CPR023
	 	23	 	Prescott Manor	 	Concepts	 	AR	 	$	17,408.00	 	 	$	208,896.00	 	 	 	 	 
	CST024
	 	24	 	Star City	 	Concepts	 	AR	 	$	9,210.47	 	 	$	110,525.64	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CAR171
	 	25	 	Brookside	 	ConvaCare	 	AR	 	$	201,244.53	 	 	$	2,414,934.36	 	 	 	 	 
	CAR172
	 	26	 	Skilcare	 	ConvaCare	 	AR	 	 	 	 	 	$	—	 	 	 	 	 
	CAR173
	 	27	 	Stoneybrook	 	ConvaCare	 	AR	 	 	 	 	 	$	—	 	 	 	 	 
	CAR174
	 	28	 	Trumann	 	ConvaCare	 	AR	 	 	 	 	 	$	—	 	 	 	 	 
	CCH025
	 	29	 	Chenal Heights	 	ConvaCare	 	AR	 	$	99,812.83	 	 	$	1,197,753.96	 	 	 	 	 
	CHS160
	 	30	 	Fountain Lake	 	ConvaCare	 	AR	 	$	105,376.92	 	 	$	—	 	 	A	 	 
	CLR177
	 	31	 	Little Rock	 	ConvaCare	 	AR	 	 	 	 	 	$	—	 	 	 	 	 
	CNA026
	 	32	 	Northridge	 	ConvaCare	 	AR	 	$	37,141.79	 	 	$	445,701.48	 	 	 	 	 
	CSE161-162
	 	33-34	 	Byrd Haven	 	ConvaCare	 	AR	 	$	13,191.21	 	 	$	158,294.52	 	 	 	 	 
	CWA027
	 	35	 	Woodland Hills	 	ConvaCare	 	AR	 	$	44,738.97	 	 	$	536,867.64	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CHI028
	 	36	 	Highland	 	Covenant Care	 	IL	 	$	35,373.75	 	 	$	424,485.00	 	 	 	 	 
	COM029
	 	37	 	Nebraska	 	Covenant Care	 	NE	 	$	59,385.60	 	 	$	712,627.20	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CAL040
	 	38	 	Heritage Villa	 	Daybreak	 	TX	 	$	15,775.23	 	 	$	189,302.76	 	 	 	 	 
	CAL054
	 	39	 	Wellington Oaks	 	Daybreak	 	TX	 	$	27,080.80	 	 	$	324,969.60	 	 	 	 	 
	CBO032
	 	40	 	Bonham	 	Daybreak	 	TX	 	$	9,524.43	 	 	$	114,293.16	 	 	 	 	 
	CBS049
	 	41	 	Seven Oaks	 	Daybreak	 	TX	 	$	20,233.00	 	 	$	242,796.00	 	 	 	 	 
	CCM030
	 	42	 	Birchwood	 	Daybreak	 	TX	 	$	25,598.89	 	 	$	307,186.68	 	 	 	 	 
	CCM050
	 	43	 	Smith	 	Daybreak	 	TX	 	$	14,627.93	 	 	$	175,535.16	 	 	 	 	 
	CCT035
	 	44	 	Columbus	 	Daybreak	 	TX	 	$	19,009.31	 	 	$	228,111.72	 	 	 	 	 
	CDT036
	 	45	 	Denison	 	Daybreak	 	TX	 	$	22,333.26	 	 	$	267,999.12	 	 	 	 	 
	CFA037
	 	46	 	Falfurrias	 	Daybreak	 	TX	 	$	11,555.08	 	 	$	138,660.96	 	 	 	 	 
	CHU042
	 	47	 	Houston	 	Daybreak	 	TX	 	$	28,728.94	 	 	$	344,747.28	 	 	 	 	 
	CKA031
	 	48	 	Blanco Villa	 	Daybreak	 	TX	 	$	48,739.50	 	 	$	584,874.00	 	 	 	 	 
	CKA038
	 	B	 	 	 	 	 	 	 	$	9,248.64	 	 	$	110,983.68	 	 	B	 	 
	CKA039
	 	49	 	Garland	 	Daybreak	 	TX	 	$	22,166.87	 	 	$	266,002.44	 	 	 	 	 
	CKA041
	 	50	 	Hillcrest	 	Daybreak	 	TX	 	$	21,572.31	 	 	$	258,867.72	 	 	 	 	 
	CKA045
	 	51	 	Mansfield	 	Daybreak	 	TX	 	$	31,873.13	 	 	$	382,477.56	 	 	 	 	 
	CKA055
	 	52	 	Westridge	 	Daybreak	 	TX	 	$	30,116.35	 	 	$	361,396.20	 	 	 	 	 
	CKT044
	 	53	 	Kleburg County	 	Daybreak	 	TX	 	$	39,739.56	 	 	$	476,874.72	 	 	 	 	 
	CMA034
	 	54	 	Clifton	 	Daybreak	 	TX	 	$	41,250.81	 	 	$	495,009.72	 	 	 	 	 
	CMN033
	 	55	 	Brownwood	 	Daybreak	 	TX	 	$	31,740.07	 	 	$	380,880.84	 	 	 	 	 
	CMN043
	 	56	 	Irving	 	Daybreak	 	TX	 	$	23,202.05	 	 	$	278,424.60	 	 	 	 	 
	CMV052
	 	57	 	Terry Haven	 	Daybreak	 	TX	 	$	22,692.65	 	 	$	272,311.80	 	 	 	 	 
	COC051
	 	58	 	Stanton	 	Daybreak	 	TX	 	$	18,166.05	 	 	$	217,992.60	 	 	 	 	 
	COC053
	 	59	 	Valley Mills	 	Daybreak	 	TX	 	$	17,048.14	 	 	$	204,577.68	 	 	 	 	 
	COR047
	 	60	 	Orange Villa	 	Daybreak	 	TX	 	$	31,033.12	 	 	$	372,397.44	 	 	 	 	 
	COR048
	 	61	 	Pinehurst	 	Daybreak	 	TX	 	$	30,756.06	 	 	$	369,072.72	 	 	 	 	 
	CWH056
	 	62	 	Wheeler	 	Daybreak	 	TX	 	$	35,748.29	 	 	$	428,979.48	 	 	 	 	 
	CWN046
	 	63	 	North Pointe	 	Daybreak	 	TX	 	$	49,924.81	 	 	$	599,097.72	 	 	 	 	 
	CWT057
	 	64	 	Willis	 	Daybreak	 	TX	 	$	26,706.20	 	 	$	320,474.40	 	 	 	 	 
	COC108
	 	65	 	Carrizo Springs	 	Daybreak	 	TX	 	$	19,349.54	 	 	$	232,194.48	 	 	 	 	 

A-1

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G/L Entity	 	 	 	Facility Name	 	Operator	 	State	 	12/10 Rent	 	 	Annualized	 	 	 	 	Notes
	 	 	 	 	 
	CMR058
	 	66	 	Harrisonville Healthcare (fka ABC)	 	Benchmark	 	MO	 	$	153,021.00	 	 	$	1,836,252.00	 	 	 	 	 
	CMR059
	 	67	 	BHC Harrisonville (fka Camden)	 	Benchmark	 	MO	 	 	 	 	 	$	—	 	 	 	 	 
	CMR060
	 	68	 	BHC Raytown (fka Cedar Valley)	 	Benchmark	 	MO	 	 	 	 	 	$	—	 	 	 	 	 
	CMR061
	 	69	 	Monett	 	Benchmark	 	MO	 	 	 	 	 	$	—	 	 	 	 	 
	CMR062
	 	70	 	Lee's Summit (fka White Ridge)	 	Benchmark	 	MO	 	 	 	 	 	$	—	 	 	 	 	 
	CSO102
	 	71	 	Greenville	 	Benchmark	 	MO	 	 	 	 	 	$	—	 	 	 	 	 
	CSO101
	 	72	 	Portageville	 	Benchmark	 	MO	 	$	100,722.91	 	 	$	1,208,674.92	 	 	 	 	 
	CSO103
	 	73	 	Senath	 	Benchmark	 	MO	 	 	 	 	 	$	—	 	 	 	 	 
	CSO104
	 	74	 	Senth South	 	Benchmark	 	MO	 	 	 	 	 	$	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CHK063
	 	75	 	Hutchinson	 	Deseret	 	KS	 	 	 	 	 	$	—	 	 	 	 	 
	CHK176
	 	76	 	McPherson	 	Deseret	 	KS	 	$	68,164.02	 	 	$	817,968.24	 	 	 	 	 
	CAY101
	 	77	 	Arma	 	Deseret	 	KS	 	$	60,000.00	 	 	$	720,000.00	 	 	 	 	 
	CAY102
	 	78	 	Yates	 	Deseret	 	KS	 	 	 	 	 	$	—	 	 	 	 	 
	CWE101
	 	79	 	Wellington	 	Deseret	 	KS	 	 	 	 	 	$	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CBU065
	 	80	 	Burton	 	Eagle	 	WA	 	$	15,667.43	 	 	$	188,009.16	 	 	 	 	 
	CSG059
	 	 	 	Skagit Aviv	 	 	 	 	 	 	 	 	 	$	—	 	 	 	 	 
	CCL066
	 	81	 	Clarkston	 	Eagle	 	WA	 	$	76,978.18	 	 	$	923,738.16	 	 	 	 	 
	CCM070
	 	82	 	Highland Terrace	 	Eagle	 	WA	 	$	43,428.31	 	 	$	521,139.72	 	 	 	 	 
	CCV067
	 	83	 	Columbia View	 	Eagle	 	WA	 	$	16,117.31	 	 	$	193,407.72	 	 	 	 	 
	CID073
	 	84	 	The Orchards	 	Eagle	 	ID	 	$	41,986.45	 	 	$	503,837.40	 	 	 	 	 
	CKN069
	 	85	 	Grandview	 	Eagle	 	WA	 	$	34,595.41	 	 	$	415,144.92	 	 	 	 	 
	CKN071
	 	86	 	Hillcrest Manor	 	Eagle	 	WA	 	$	35,012.30	 	 	$	420,147.60	 	 	 	 	 
	COI072
	 	87	 	Menlo Park	 	Eagle	 	OR	 	$	25,191.32	 	 	$	302,295.84	 	 	 	 	 
	CRW068 & 76
	 	89-90	 	Richland & Eagle Ass. Liv.	 	Eagle	 	WA	 	$	91,232.30	 	 	$	1,094,787.60	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CCA162
	 	91	 	Arvin	 	Evergreen	 	CA	 	$	612,127.72	 	 	$	7,345,532.64	 	 	 	 	 
	CCA163
	 	92	 	Bakersfield	 	Evergreen	 	CA	 	 	 	 	 	$	—	 	 	 	 	 
	CCA164
	 	93	 	Lakeport	 	Evergreen	 	CA	 	 	 	 	 	$	—	 	 	 	 	 
	CCA165
	 	94	 	New Hope	 	Evergreen	 	CA	 	 	 	 	 	$	—	 	 	 	 	 
	CCA166
	 	95	 	Olive Ridge	 	Evergreen	 	CA	 	 	 	 	 	$	—	 	 	 	 	 
	CCA167
	 	96	 	Twin Oaks	 	Evergreen	 	CA	 	 	 	 	 	$	—	 	 	 	 	 
	CCA168
	 	97	 	Health & Rehab	 	Evergreen	 	OR	 	 	 	 	 	$	—	 	 	 	 	 
	CCA169
	 	98	 	Kitsap (fka Bremerton)	 	Evergreen	 	WA	 	 	 	 	 	$	—	 	 	 	 	 
	CCA170
	 	99	 	Petaluma	 	Evergreen	 	CA	 	$	110,379.21	 	 	$	1,324,550.52	 	 	 	 	 
	CCA171
	 	100	 	Mountain View	 	Evergreen	 	NV	 	 	 	 	 	$	—	 	 	 	 	 
	CFR082 - 83
	 	101-102	 	Milton-Freewater & Oregon Ret.	 	Evergreen	 	OR	 	$	60,526.00	 	 	$	726,312.00	 	 	 	 	 
	CMT081
	 	103	 	Hot Springs	 	Evergreen	 	MT	 	$	12,895.53	 	 	$	154,746.36	 	 	 	 	 
	CMT084-85
	 	104	 	Polson	 	Evergreen	 	MT	 	$	5,423.43	 	 	$	65,081.16	 	 	 	 	 
	CWO086
	 	105	 	The Dalles	 	Evergreen	 	OR	 	$	27,569.78	 	 	$	330,837.36	 	 	 	 	 
	CWO087
	 	106	 	Vista	 	Evergreen	 	OR	 	$	28,723.96	 	 	$	344,687.52	 	 	 	 	 
	CWO088
	 	107	 	Whitman	 	Evergreen	 	WA	 	$	45,395.81	 	 	$	544,749.72	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CFO090
	 	108	 	Fountain Ret. Hotel	 	Fountain	 	AZ	 	$	19,000.00	 	 	$	228,000.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CCM093
	 	109	 	Belmont	 	Health Dimensions	 	WI	 	$	20,259.16	 	 	$	243,109.92	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CCP095
	 	110	 	Pepin Manor	 	Heyde	 	WI	 	$	21,492.94	 	 	$	257,915.28	 	 	 	 	 
	CCW094
	 	111	 	Columbus	 	Heyde	 	WI	 	$	30,746.85	 	 	$	368,962.20	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CEF099
	 	112	 	Evergreen	 	HI Care	 	IL	 	$	41,872.16	 	 	$	502,465.92	 	 	 	 	 
	CEM098
	 	113	 	Douglas	 	HI Care	 	IL	 	$	32,500.02	 	 	$	390,000.24	 	 	 	 	 
	CSA097
	 	114	 	Doctors	 	HI Care	 	IL	 	$	55,294.02	 	 	$	663,528.24	 	 	 	 	 
	CCR007
	 	115	 	Grand River (fka Blanchette Place)	 	HI Care	 	MO	 	$	119,515.17	 	 	$	1,434,182.04	 	 	 	 	 
	CCR010
	 	116	 	Willowbrooke (fka Cathedral Gardens)	 	HI Care	 	MO	 	$	79,676.98	 	 	$	956,123.76	 	 	 	 	 
	CCR016
	 	117	 	Wildwood (fka Oak Forest)	 	HI Care	 	MO	 	$	43,822.60	 	 	$	525,871.20	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CHH102
	 	118	 	Canterbury Villa of Cisco	 	Homestead	 	TX	 	 	 	 	 	$	—	 	 	 	 	 
	CHH101
	 	119	 	Canterbury Villa of Baird	 	Homestead	 	TX	 	$	54,063.84	 	 	$	648,766.08	 	 	 	 	 
	CHH103
	 	120	 	Canterbury Villa of Hillsboro	 	Homestead	 	TX	 	 	 	 	 	$	—	 	 	 	 	 
	CHH104
	 	121	 	Collinsville	 	Homestead	 	TX	 	 	 	 	 	$	—	 	 	 	 	 
	CHH105
	 	122	 	Heritage Manor of Gorman	 	Homestead	 	TX	 	 	 	 	 	$	—	 	 	 	 	 
	CHH106
	 	123	 	Itasca	 	Homestead	 	TX	 	 	 	 	 	$	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CBE109
	 	124	 	Shuksan	 	JK&L (fka Hope Care)	 	WA	 	$	42,484.39	 	 	$	509,812.68	 	 	 	 	 
	CSJ108
	 	125	 	San Juan	 	JK&L (fka Hope Care)	 	WA	 	$	34,783.94	 	 	$	417,407.28	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CK2116
	 	126	 	Ashford Hall	 	Lion	 	TX	 	$	72,167.00	 	 	$	866,004.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	COL150
	 	127	 	Oakhill Springs (fka High Street)	 	LTP Generations	 	CA	 	$	12,855.26	 	 	$	154,263.12	 	 	 	 	 
	COL151
	 	128	 	Oakgrove Springs (fka MacArthur)	 	LTP Generations	 	CA	 	$	15,484.74	 	 	$	185,816.88	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CNW101
	 	129	 	Norwalk	 	Maplewood	 	CT	 	$	151,713.54	 	 	$	—	 	 	C	 	 
	COF101
	 	130	 	Orange	 	Maplewood	 	CT	 	$	126,855.84	 	 	$	1,522,270.08	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CFL112
	 	131	 	Hidden Hills (fka Florence Hghts)	 	Markleysburg	 	NE	 	$	33,575.00	 	 	$	402,900.00	 	 	 	 	 

A-2

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G/L Entity	 	 	 	Facility Name	 	Operator	 	State	 	12/10 Rent	 	 	Annualized	 	 	 	 	Notes
	 	 	 	 	 
	CPE117
	 	132	 	Westview Manor of Peabody	 	Markleysburg	 	KS	 	$	10,723.70	 	 	$	128,684.40	 	 	 	 	 
	CHA101
	 	133	 	Hidden Acres	 	Markleysburg	 	TN	 	$	31,251.89	 	 	$	375,022.68	 	 	 	 	 
	CYU122
	 	134	 	Carrington	 	Markleysburg	 	VA	 	$	45,833.33	 	 	$	549,999.96	 	 	 	 	 
	CGB101
	 	135	 	Great Bend	 	Markleysburg	 	KS	 	$	45,833.00	 	 	$	549,996.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CCP022
	 	136	 	Countryside	 	Orion	 	MI	 	$	25,000.00	 	 	$	300,000.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CAF080
	 	137	 	La Estancia	 	Preferred Care	 	AZ	 	$	75,765.55	 	 	$	909,186.60	 	 	 	 	 
	CSM077
	 	138	 	Sun City	 	Preferred Care	 	AZ	 	$	60,337.73	 	 	$	724,052.76	 	 	 	 	 
	CSM078
	 	139	 	Mesa Christian Res.	 	Preferred Care	 	AZ	 	$	5,525.45	 	 	$	66,305.40	 	 	 	 	 
	CSM079
	 	140	 	Mesa Christian	 	Preferred Care	 	AZ	 	$	87,066.09	 	 	$	1,044,793.08	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CBN118
	 	141	 	Orchard Grove Ext. Care	 	Prestige	 	MI	 	$	39,247.65	 	 	$	470,971.80	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	—	 	 	 	 	 
	CGI091
	 	142	 	Gilmer	 	RAMM	 	TX	 	$	45,360.42	 	 	$	544,325.04	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CAV092
	 	143	 	Good Samaritan	 	Ridgecrest	 	OH	 	$	99,612.65	 	 	$	1,195,351.80	 	 	 	 	 
	CMI110
	 	144	 	Faribault Commons	 	Ridgecrest	 	MN	 	$	78,601.41	 	 	$	943,216.92	 	 	D	 	 
	CMI113
	 	145	 	Owatonna Commons	 	Ridgecrest	 	MN	 	 	 	 	 	$	—	 	 	 	 	 
	CMI114
	 	146	 	Willmar Commons	 	Ridgecrest	 	MN	 	 	 	 	 	$	—	 	 	 	 	 
	CMO064
	 	147	 	Ontario Commons	 	Ridgecrest	 	OH	 	$	16,615.21	 	 	$	199,382.52	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CBH002
	 	148	 	Broomall Manor	 	Saber	 	PA	 	$	72,512.72	 	 	$	870,152.64	 	 	 	 	 
	COA122
	 	149	 	Blue Ash	 	Saber	 	OH	 	$	219,303.21	 	 	$	2,631,638.52	 	 	 	 	 
	COA124
	 	150	 	West Chester	 	Saber	 	OH	 	 	 	 	 	$	—	 	 	 	 	 
	COA126
	 	151	 	Wilmington	 	Saber	 	OH	 	 	 	 	 	$	—	 	 	 	 	 
	CSF123
	 	152	 	Lexington	 	Saber	 	MO	 	$	34,041.12	 	 	$	408,493.44	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CID119
	 	153	 	Magic Valley Manor	 	Safe Haven / Carefix	 	ID	 	$	16,058.33	 	 	$	192,699.96	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CID134
	 	154	 	Payette	 	Sun	 	ID	 	$	29,419.45	 	 	$	353,033.40	 	 	 	 	 
	CMA128
	 	155	 	Broadway	 	Sun	 	MA	 	$	9,198.81	 	 	$	110,385.72	 	 	 	 	 
	CMA129
	 	156	 	Colonial Heights	 	Sun	 	MA	 	$	21,835.63	 	 	$	262,027.56	 	 	 	 	 
	CMA130
	 	157	 	Fall River	 	Sun	 	MA	 	$	21,902.19	 	 	$	262,826.28	 	 	 	 	 
	CMA131
	 	158	 	Glenwood	 	Sun	 	MA	 	$	23,462.43	 	 	$	281,549.16	 	 	 	 	 
	CMA132
	 	159	 	Hammond House	 	Sun	 	MA	 	$	12,302.70	 	 	$	147,632.40	 	 	 	 	 
	CMA133
	 	160	 	North Reading (aka Meadow View)	 	Sun	 	MA	 	$	26,819.66	 	 	$	321,835.92	 	 	 	 	 
	CMA135
	 	161	 	Quincy (aka Robbin House)	 	Sun	 	MA	 	$	19,034.13	 	 	$	228,409.56	 	 	 	 	 
	CMA136
	 	162	 	Rosewood	 	Sun	 	MA	 	$	6,707.70	 	 	$	80,492.40	 	 	 	 	 
	CMA137
	 	163	 	Sandalwood	 	Sun	 	MA	 	$	22,025.27	 	 	$	264,303.24	 	 	 	 	 
	CMA138
	 	164	 	Spring Valley	 	Sun	 	MA	 	$	20,113.87	 	 	$	241,366.44	 	 	 	 	 
	CMA139
	 	165	 	Town Manor	 	Sun	 	MA	 	$	28,844.65	 	 	$	346,135.80	 	 	 	 	 
	CMA141
	 	166	 	Wood Mill	 	Sun	 	MA	 	$	16,125.75	 	 	$	193,509.00	 	 	 	 	 
	CMA142
	 	167	 	Worcester	 	Sun	 	MA	 	$	22,832.78	 	 	$	273,993.36	 	 	 	 	 
	CSV140
	 	168	 	River Ridge (fka Twin Falls)	 	Sun	 	ID	 	$	55,529.51	 	 	$	666,354.12	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CCS155
	 	169	 	Sierra View	 	Sun Mar	 	CA	 	$	29,441.42	 	 	$	353,297.04	 	 	 	 	 
	CFU145
	 	170	 	Gordon Lane	 	Sun Mar	 	CA	 	$	76,006.20	 	 	$	912,074.40	 	 	 	 	 
	CHE146
	 	171	 	Heritage Manor	 	Sun Mar	 	CA	 	$	58,183.00	 	 	$	698,196.00	 	 	 	 	 
	CCS175
	 	172	 	Mission	 	Sun Mar	 	CA	 	$	17,023.46	 	 	$	204,281.52	 	 	 	 	 
	CPV153
	 	173	 	Pomona Vista	 	Sun Mar	 	CA	 	$	25,785.75	 	 	$	309,429.00	 	 	 	 	 
	CRB154
	 	174	 	Victoria (fka Rose)	 	Sun Mar	 	CA	 	$	25,718.44	 	 	$	308,621.28	 	 	 	 	 
	CRI143
	 	175	 	Ext. Care of Riverside	 	Sun Mar	 	CA	 	$	67,500.99	 	 	$	810,011.88	 	 	 	 	 
	CSB144
	 	176	 	French Park	 	Sun Mar	 	CA	 	$	79,654.48	 	 	$	955,853.76	 	 	 	 	 
	CTU147
	 	177	 	North Valley	 	Sun Mar	 	CA	 	$	67,561.07	 	 	$	810,732.84	 	 	 	 	 
	CVR148
	 	178	 	Villa Rancho Bernardo	 	Sun Mar	 	CA	 	$	145,026.53	 	 	$	1,740,318.36	 	 	 	 	 
	CWP149
	 	179	 	Country Oaks	 	Sun Mar	 	CA	 	$	21,907.93	 	 	$	262,895.16	 	 	 	 	 
	CR2001
	 	180	 	Community Care	 	Sun Mar	 	CA	 	$	105,416.67	 	 	$	1,265,000.04	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CID115
	 	181	 	McCall	 	TanaBell	 	ID	 	$	14,772.01	 	 	$	177,264.12	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CAAM
	 	 	 	 	 	 	 	 	 	$	772.00	 	 	$	9,264.00	 	 	E	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	TOTALS:	 	 	 	$	7,240,297.79	 	 	$	83,260,781.52	 	 	F	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	Notes:
	 
	A	 	Hot Springs is included in the building count. Revenue is recognized as a capital lease and is
therefore included in Interest Income for reporting purposes.
	 
	B	 	The Forest Hill building was closed; however, per the lease agreement, the tenant is still
required to pay rent.
	 
	C	 	Norwalk building was purchased on 12/30/10, but is under renovation. No rent until June 2012.
	 
	D	 	Reflects annualized rent of operator as of 12/31/10 (Prentice Thompson). Property was
transititioned on 1/1/11 to Deseret
	 
	E	 	Aviv Asset Management receives minimal rent on office space rented within our offices.
	 
	F	 	Total annualized rents as of 12/31/10 reflects certain lease escalators that became effective in
the fourth quarter of 2010.

A-3

 

SCHEDULE B

Alamogordo Aviv, L.L.C.

Arkansas Aviv, L.L.C.

Arma Yates, L.L.C.

Aviv Foothills, L.L.C.

Aviv Liberty, L.L.C.

Avon Ohio, L.L.C.

Belleville Illinois, L.L.C.

Bellingham II Associates, L.L.C.

Benton Harbor, L.L.C.

BHG Aviv, L.L.C.

Bonham Texas, L.L.C.

Burton NH Property, L.L.C.

California Aviv Two, L.L.C.

California Aviv, L.L.C.

Camas Associates, L.L.C.

Casa/Sierra California Associates, L.L.C.

Chenal Arkansas, L.L.C.

Chippewa Valley, L.L.C.

Clarkston Care, L.L.C.

Clayton Associates, L.L.C.

Colonial Madison Associates, L.L.C.

Columbia View Associates, L.L.C.

Columbus Texas Aviv, L.L.C.

Columbus Western Avenue, L.L.C.

Commerce Nursing Homes, L.L.C.

CR Aviv, L.L.C.

Denison Texas, L.L.C.

Effingham Associates, L.L.C.

Elite Mattoon, L.L.C.

Elite Yorkville, L.L.C.

Falfurrias Texas, L.L.C.

Florence Heights Associates, L.L.C.

Fountain Associates, L.L.C.

Four Fountains Aviv, L.L.C.

Freewater Oregon, L.L.C.

Fullerton California, L.L.C.

Giltex Care, L.L.C.

Great Bend Property, L.L.C.

B-1

 

Heritage Monterey Associates, L.L.C.

HHM Aviv, L.L.C.

Highland Leasehold, L.L.C.

Hobbs Associates, L.L.C.

Hot Springs Aviv, L.L.C.

Houston Texas Aviv, L.L.C.

Hutchinson Kansas, L.L.C.

Idaho Associates, L.L.C.

Karan Associates Two, L.L.C.

Karan Associates, L.L.C.

KB Northwest Associates, L.L.C.

Kingsville Texas, L.L.C.

Manor Associates, L.L.C.

Mansfield Aviv, L.L.C.

Massachusetts Nursing Homes, L.L.C.

Minnesota Associates, L.L.C.

Missouri Associates, L.L.C.

Missouri Regency Associates, L.L.C.

Montana Associates, L.L.C.

Mt. Vernon Texas, L.L.C.

Newtown ALF Property, L.L.C.

N.M. Bloomfield Three Plus One Limited Company

N.M. Espanola Three Plus One Limited Company

N.M. Lordsburg Three Plus One Limited Company

N.M. Silver City Three Plus One Limited Company

Northridge Arkansas, L.L.C.

Oakland Nursing Homes, L.L.C.

October Associates, L.L.C.

Ogden Associates, L.L.C.

Ohio Aviv, L.L.C.

Omaha Associates, L.L.C.

Orange ALF Property, L.L.C

Orange, L.L.C.

Oregon Associates, L.L.C.

Peabody Associates, L.L.C.

Pomona Vista L.L.C.

Prescott Arkansas, L.L.C.

Raton Property Limited Company

B-2

 

Red Rocks, L.L.C.

Richland Washington, L.L.C.

Riverside Nursing Home Associates, L.L.C.

Rose Baldwin Park Property L.L.C.

Salem Associates, L.L.C.

San Juan NH Property, L.L.C.

Santa Ana-Bartlett, L.L.C.

Santa Fe Missouri Associates, L.L.C.

Savoy/Bonham Venture, L.L.C.

Searcy Aviv, L.L.C.

Skyview Associates, L.L.C.

Southeast Missouri Property, L.L.C.

Star City Arkansas, L.L.C.

Sun-Mesa Properties, L.L.C.

Tujunga, L.L.C.

VRB Aviv, L.L.C.

Washington-Oregon Associates, L.L.C.

Watauga Associates, L.L.C.

West Pearl Street, L.L.C.

Wheeler Healthcare Associates, L.L.C.

Willis Texas Aviv, L.L.C.

Woodland Arkansas, L.L.C.

Xion, L.L.C.

Yuba Aviv, L.L.C.

B-3

 

SCHEDULE C

Chatham Aviv, L.L.C.

Hidden Acres Property, L.L.C.

Monterey Park Leasehold Mortgage, L.L.C.

Norwalk ALF Property, L.L.C.

Wellington Leasehold, L.L.C.

C-1

 

EXHIBIT A

[Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture]

[Insert the Private Placement Legend, if applicable pursuant to the provisions of the Indenture]

AVIV HEALTHCARE PROPERTIES LIMITED PARTNERSHIP

AVIV HEALTHCARE CAPITAL CORPORATION

73/4% Senior Notes due 2019

CUSIP No.

No. [          ] $[                    ]

          AVIV HEALTHCARE PROPERTIES LIMITED PARTNERSHIP, a Delaware limited partnership, and AVIV
HEALTHCARE CAPITAL CORPORATION, a Delaware corporation (the “Issuers”), for value received
promise to pay to Cede & Co., or its registered assigns, the principal sum of [                    ]
DOLLARS [or such other amount as is provided in a schedule
attached hereto]a on February
15, 2019.

          Interest Payment Dates: February 15 and August 15, commencing August 15, 2011.

          Record Dates: February 1 and August 1.

          Reference is made to the further provisions of this Note contained herein, which will for all
purposes have the same effect as if set forth at this place.

          IN WITNESS WHEREOF, the Issuers have caused this Note to be signed manually or by facsimile by
its duly authorized officer.

Dated:

	 	 	 	 	 	 	 

	 	 	AVIV HEALTHCARE PROPERTIES LIMITED PARTNERSHIP,

AVIV HEALTHCARE CAPITAL CORPORATION,

as Issuers,	 	 
	 
	 	 	 	 	 	 
	 

	 	     by	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

			
	a	 	This language should be included only if the
Note is issued in global form.

A-1

 

FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the 73⁄4% Senior Notes due 2019 described in the within-mentioned Indenture.

Dated:

	 	 	 	 	 	 	 

	 

	 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

as Trustee,
	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	     By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Signatory	 	 

A-2

 

(Reverse of Note)

73⁄4% Senior Notes due 2019

          Capitalized terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

          SECTION 1. Interest. Aviv Healthcare Properties Limited Partnership, a Delaware
limited partnership, and Aviv Healthcare Capital Corporation, a Delaware corporation (the
“Issuers”), promise to pay interest on the principal amount of this Note at 7.750% per annum from
February 4, 2011, until maturity. The Issuers will pay interest semi-annually on February 15 and
August 15 of each year, or if any such day is not a Business Day, on the next succeeding Business
Day (each an “Interest Payment Date”), commencing August 15, 2011. Interest on the Notes will
accrue from the most recent date to which interest has been paid or, if no interest has been paid,
from February 4, 2011. The Issuers shall pay interest on overdue principal and premium, if any,
from time to time on demand to the extent lawful at the interest rate applicable to the Notes; the
Issuers shall pay interest on overdue installments of interest (without regard to any applicable
grace periods) from time to time on demand at the same rate to the extent lawful. Interest will be
computed on the basis of a 360-day year of twelve 30-day months. [As more fully set forth therein,
the Registration Rights Agreement provides that the Issuers will pay Additional Interest to each
Holder under certain circumstances. All accrued Additional Interest shall be paid to Holders in
the same manner as interest payments on the Notes on semi-annual payment dates that correspond to
Interest Payment Dates for the Notes. All references in this Note to interest shall be deemed to
include any Additional Interest payable pursuant to the Registration Rights Agreement.]a

          SECTION 2. Method of Payment. The Issuers will pay interest on the Notes to the
Persons who are registered Holders at the close of business on the February 1 or August 1 next
preceding the Interest Payment Date, even if such Notes are canceled after such record date and on
or before such Interest Payment Date, except as provided in Section 2.12 of the Indenture with
respect to defaulted interest. The Notes will be issued in denominations of $2,000 and integral
multiples of $1,000 in excess thereof. The Issuers shall pay principal, premium, if any, and
interest on the Notes in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts (“U.S. Legal Tender”). Principal,
premium, if any, and interest on the Notes will be payable at the office or agency of the Issuers
maintained for such purpose except that, at the option of the Issuers, the payment of interest may
be made by check mailed to the Holders at their respective addresses set forth in the register of
Holders of Notes. Until otherwise designated by the Issuers, the Issuers’ office or agency in New
York will be the office of the Trustee maintained for such purpose.

 

			
	a	 	To be removed from the Exchange Note.

A-3

 

          SECTION 3. Paying Agent and Registrar. Initially, The Bank of New York Mellon Trust
Company, N.A., the Trustee under the Indenture, will act as Paying Agent and Registrar. The
Issuers may change any Paying Agent or Registrar without notice to any Holder. Except as provided
in the Indenture, the Issuers or any of their Subsidiaries may act in any such capacity.

          SECTION 4. Indenture. The Issuers issued the Notes under an Indenture dated as of
February 4, 2011 (“Indenture”) by and among the Issuers, Aviv REIT, Inc., a Maryland corporation,
the other Guarantors and the Trustee. Subject to the terms of the Indenture, the Issuers shall be
entitled to issue Additional Notes pursuant to Section 2.01 of the Indenture. 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, as amended (15 U.S. Code §§ 77aaa-77bbbb) (the “Trust Indenture
Act”). The Notes are subject to all such terms, and Holders are referred to the Indenture and the
Trust Indenture Act for a statement of such terms. To the extent any provision of this Note
conflicts with the express provisions of the Indenture, the provisions of the Indenture shall
govern and be controlling.

          SECTION 5. Optional Redemption. Except as set forth in Section 6 hereof, the Issuers
are not entitled to redeem any Notes prior to February 15, 2015. The Notes will be redeemable at
the option of the Issuers, in whole or in part, at any time, and from time to time, on and after
February 15, 2015, upon not less than 30 days’ 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 15 of the years indicated below, in each case together
with accrued and unpaid interest thereon to the redemption date:

	 	 	 	 	 
	Year	 	Percentage
	2015
	 	 	103.875	%
	2016
	 	 	101.938	%
	2017 and thereafter
	 	 	100.000	%

          Prior to February 15, 2015, the Issuers will be entitled, at their option, to redeem all or a
portion of the Notes at a redemption price equal to 100% of the principal amount of the Notes plus
the Applicable Premium as of, and accrued and unpaid interest to, the redemption date (subject to
the right of Holders on the relevant record date to receive interest due on the relevant Interest
Payment Date).

          SECTION 6. Optional Redemption upon Equity Offerings. At any time, or from time to
time, on or prior to February 15, 2014, the Issuers are entitled, at their option, to use an amount
equal to all or a portion of the Net Cash Proceeds of one or more Equity Offerings to redeem up to
35% of the principal amount of the Notes (together with any Additional Notes) issued under the
Indenture at a redemption price of 107.750% of

A-4

 

the principal amount thereof plus accrued and unpaid interest thereon, if any, to the date of
redemption; provided, however, that:

     (1) at least 65% of the principal amount of Notes originally issued under the
Indenture remains outstanding immediately after such redemption; and

     (2) the Issuers make such redemption not more than 120 days after the consummation of
any such Equity Offering.

          SECTION 7. Notice of Redemption. Subject to Section 3.03 of the Indenture, notice of
redemption will be mailed by first class mail or as otherwise provided in accordance with the
procedures of the Depository at least 30 days but not more than 60 days before the Redemption Date
to each Holder of Notes to be redeemed at its registered address, except that redemption notices
may be mailed more than 60 days prior to a Redemption Date if the notice is issued in connection
with a defeasance of the Notes or a satisfaction or discharge of the Indenture. No Notes of $2,000
or less shall be redeemed in part. On and after the Redemption Date interest ceases to accrue on
Notes or portions thereof called for redemption subject to Section 3.04 of the Indenture.

          SECTION 8. Mandatory Redemption. For the avoidance of doubt, an offer to purchase
pursaunt to Section 9 hereof shall not be deemed a redemption. The Issuers shall not be required
to make mandatory redemption or sinking fund payments with respect to the Notes.

          SECTION 9. Repurchase at Option of Holder. Upon the occurrence of a Change of
Control, and subject to certain conditions set forth in the Indenture, the Issuers will be required
to offer to purchase all of the outstanding Notes at a purchase price equal to 101% of the
principal amount thereof, plus accrued and unpaid interest, if any, thereon to the date of
repurchase.

          The Issuers are, subject to certain conditions and exceptions set forth in the Indenture,
obligated to make an offer to purchase Notes at 100% of their principal amount, plus accrued and
unpaid interest, if any, thereon to the date of repurchase, with certain Net Cash Proceeds of
certain sales or other dispositions of assets in accordance with the Indenture.

          SECTION 10. Denominations, Transfer, Exchange. The Notes are in registered form
without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. The
transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The
Registrar and the Trustee may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and the Issuers may require a Holder to pay any taxes and fees
required by law or permitted by the Indenture. The Issuers and the Registrar are not required to
transfer or exchange any Note selected for redemption. Also, the Issuers and the Registrar are not
required to transfer or exchange any Notes for a period of 15 days before a selection of Notes to
be redeemed.

A-5

 

          SECTION 11. Persons Deemed Owners. The registered Holder of a Note may be treated as
its owner for all purposes.

          SECTION 12. Amendment, Supplement and Waiver. Subject to certain exceptions, the
Indenture and the Notes 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 compliance with any provision may be waived with the consent of the Holders of a
majority in aggregate principal amount of the Notes then outstanding. Without notice to or consent
of any Holder, the parties thereto may amend or supplement the Indenture, the Notes and the
Guaranties as provided in the Indenture.

          SECTION 13. Defaults and Remedies. If an Event of Default occurs and is continuing
(other than as specified in clauses (7) and (8) of Section 6.01 of the Indenture that occurs with
respect to the Parent or the Issuers), the Trustee or the Holders of at least 25% in principal
amount of the then outstanding Notes may declare the principal of, premium, if any, and accrued
interest on the Notes to be due and payable immediately in accordance with the provisions of
Section 6.02 of the Indenture. Notwithstanding the foregoing, in the case of an Event of Default
arising from clause (7) or (8) of Section 6.01 of the Indenture, with respect to the Parent or the
Issuers, all outstanding Notes will become due and payable without further action or notice.
Holders of the Notes may not enforce the Indenture or the Notes except as provided in the
Indenture. Subject to certain limitations, Holders of a majority in principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from Holders of the Notes notice of any continuing Default if it determines that
withholding notice is in their interest in accordance with Section 7.05 of the Indenture. The
Holders of a majority in aggregate principal amount of the Notes then outstanding by notice to the
Trustee may on behalf of the Holders of all of the Notes waive any existing Default and its
consequences under the Indenture except a Default in the payment of principal of, or interest on,
any Note as specified in Section 6.01(1) and (2) of the Indenture.

          SECTION 14. Restrictive Covenants. The Indenture contains certain covenants as set
forth in Article Four of the Indenture.

          SECTION 15. No Recourse Against Others. No recourse for the payment of the principal
of, premium, if any, or interest on any of the Notes or for any claim based thereon or otherwise in
respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Parent,
the Issuers or the Guarantors in the Indenture, or in any of the Notes or Guaranties or because of
the creation of any Indebtedness represented thereby, shall be had against any incorporator,
stockholder, officer, director, employee or controlling person of the Parent, the Issuers or the
Guarantors or of any successor Person thereof. Each Holder, by accepting the Notes, waives and
releases all such liability. Such waiver and release are part of the consideration for issuance of
the Notes.

          SECTION 16. Guaranties. This Note will be entitled to the benefits of certain
Guaranties made for the benefit of the Holders. Reference is hereby made to the

A-6

 

Indenture for a statement of the respective rights, limitations of rights, duties and
obligations thereunder of the Guarantors, the Trustee and the Holders.

          SECTION 17. Authentication. This Note shall not be valid until authenticated by the
manual signature of the Trustee or an authenticating agent.

          SECTION 18. Abbreviations. Customary abbreviations may be used in the name of a
Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the
entirety), 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).

          SECTION 19. Additional Rights of Holders of Restricted Global Notes and Restricted
Definitive Notes. In addition to the rights provided to Holders of Notes under the Indenture,
Holders will have the rights set forth in the Registration Rights Agreement dated as of February 4,
2011, among the Issuers, the Guarantors and the other parties named on the signature pages thereof
[or, in the case of Additional Notes (if applicable), Holders of such Additional Notes will have
the rights set forth in one or more registration rights agreements, if any, among the Issuers, the
Guarantors and the other parties thereto, relating to rights given by the Issuers and the
Guarantors to the purchasers of such Additional Notes]. The Holders shall be entitled to receive
certain Additional Interest in the event such exchange offer is not consummated or the Notes are
not offered for resale and upon certain other conditions, all pursuant to and in accordance with
the terms of the Registration Rights Agreement.a

          SECTION 20. CUSIP and ISIN Numbers. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Issuers have caused CUSIP and ISIN
numbers to be printed on the Notes and the Trustee may use CUSIP or ISIN numbers in notices of
redemption as a convenience to Holders. No representation is made as to the accuracy of such
numbers either as printed on the Notes or as contained in any notice of redemption and reliance may
be placed only on the other identification numbers placed thereon.

          SECTION 21. Governing Law. This Note shall be governed by, and construed in
accordance with, the laws of the State of New York.

          The Issuers will furnish to any Holder upon written request and without charge a copy of the
Indenture.

 

			
	a	 	This Section not to appear on Exchange Notes
or Additional Notes unless required by the terms of such Additional Notes.

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ASSIGNMENT FORM

I or we assign and transfer this Note to

 

 

(Print or type name, address and zip code of assignee or transferee)

 

(Insert Social Security or other identifying number of assignee or transferee)

and irrevocably appoint _____________________________ agent to transfer this Note on the books of
the Issuers. The agent may substitute another to act for him.

	 	 	 	 	 

	Dated:

	 	Signed:	 	 
	 

	 	 	 	 
	 

	 	 	 	(Sign exactly as name appears on the
other side of this Note)
	 
	 	 	 	 
	Signature Guarantee:
	 	 	 	 
	 	 	 
	 	 	Participant in a recognized Signature Guarantee
Medallion Program (or other signature guarantor
program reasonably acceptable to the Trustee)

          In connection with any transfer of this Note occurring prior to the date which is the date
following the second anniversary of the original issuance of this Note, the undersigned confirms
that it has not utilized any general solicitation or general advertising in connection with the
transfer and is making the transfer pursuant to one of the following:

[Check One]

	(1) ______	 	 to the Issuers or a subsidiary thereof; or
	 
	(2) ______	 	 to a person who the transferor reasonably believes is a “qualified institutional buyer”
pursuant to and in compliance with Rule 144A under the Securities Act of 1933, as amended (the
“Securities Act”); or
	 
	(3) ______	 	 outside the United States to a non-“U.S. person” as defined in Rule 902 of Regulation S
under the Securities Act in compliance with Rule 904 of Regulation S under the Securities Act;
or
	 
	(4) ______	 	 pursuant to the exemption from registration provided by Rule 144 under the Securities
Act; or
	 
	(5) ______	 	 pursuant to an effective registration statement under the Securities Act.

A-8

 

and unless the box below is checked, the undersigned confirms that such Note is not being
transferred to an “affiliate” of the Issuers as defined in Rule 144 under the Securities Act (an
“Affiliate”):

          o The transferee is an Affiliate of the Issuers.

          Unless one of the foregoing items (1) through (6) is checked, the Trustee will refuse to
register any of the Notes evidenced by this certificate in the name of any person other than the
registered Holder thereof; provided, however, that if item (3) or (4) is checked, the Issuers or
the Trustee may require, prior to registering any such transfer of the Notes, in their sole
discretion, such written legal opinions, certifications (including an investment letter in the case
of box (3)) and other information as the Trustee or the Issuers 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 items (1) through (5) are 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 2.16
of the Indenture shall have been satisfied.

	 	 	 	 	 

	Dated:

	 	Signed:	 	 
	 

	 	 	 	 
	 

	 	 	 	(Sign exactly as name appears on the
other side of this Note)
	 
	 	 	 	 
	Signature Guarantee:
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	Participant in a recognized Signature Guarantee
Medallion Program (or other signature guarantor
program reasonably acceptable to the Trustee)

A-9

 

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 Issuers 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-10

 

OPTION OF HOLDER TO ELECT PURCHASE

          If you want to elect to have this Note purchased by the Issuers pursuant to Section 4.07 or
Section 4.11 of the Indenture, check the appropriate box:

          Section 4.07 [          ]                    Section 4.11 [          ]

          If you want to elect to have only part of this Note purchased by the Issuers pursuant to
Section 4.07 or Section 4.11 of the Indenture, state the amount (in denominations of $2,000 and
integral multiples of $1,000 in excess thereof):

$___________

	 	 	 	 	 

	Dated:

	 	Signed:	 	 
	 

	 	 	 	 
	 

	 	 	 	(Sign exactly as name appears on the
other side of this Note)
	 
	 	 	 	 
	 

	 	Signature Guarantee:	 	 
	 

	 	 	 	 
	 

	 	 	 	Participant in a recognized Signature
Guarantee Medallion Program (or other
signature guarantor program reasonably
acceptable to the Trustee)

A-11

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTEa

     The following exchanges of a part of this Global Note for an interest in another Global Note
or for a Physical Note, or exchanges of a part of another Global Note or Physical Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal Amount of	 	Signature of
	 	 	Amount of decrease in	 	Amount of increase in	 	this Global Note	 	authorized officer of
	 	 	Principal Amount of	 	Principal Amount of	 	following such decrease	 	Trustee of Note
	Date of Exchange	 	The Global Note	 	this Global Note	 	(or increase)	 	custodian
	 	 	 	 	 	 	 	 	 

 

			
	a	 	This schedule should be included only if the
Note is issued in global form.

A-12

 

EXHIBIT B

FORM OF LEGENDS

          Each Global Note and Physical Note that constitutes a Restricted Security shall bear the
following legend (the “Private Placement Legend”) on the face thereof until after the second
anniversary of the Issue Date, unless otherwise agreed by the Issuers and the Holder thereof or if
such legend is no longer required by Section 2.16(e) of the Indenture:

          THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE
EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.
THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE ISSUERS THAT (A) SUCH
SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (1)(a) INSIDE THE UNITED STATES TO A
PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT) PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES
ACT, (b) OUTSIDE THE UNITED STATES TO A FOREIGN PERSON IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (c) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF APPLICABLE) OR (d) IN
ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND
BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE ISSUERS IF THE ISSUERS SO REQUEST), (2) TO THE
ISSUERS OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE
WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE
JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY
PURCHASER OF THE SECURITY EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN CLAUSE (A)
ABOVE. NO REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144
FOR RESALE OF THE SECURITY EVIDENCED HEREBY.

          Each Global Note authenticated and delivered hereunder shall also bear the following legend:

B-1

 

          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 CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUERS OR THEIR AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE 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.

          TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS
SET FORTH IN SECTION 2.16 OF THE INDENTURE.

          [[FOR REGULATION S GLOBAL SECURITY ONLY] UNTIL 40 DAYS AFTER THE LATER OF COMMENCEMENT OR
COMPLETION OF THE OFFERING, AN OFFER OR SALE OF SECURITIES WITHIN THE UNITED STATES BY A DEALER (AS
DEFINED IN THE SECURITIES ACT) MAY VIOLATE THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IF
SUCH OFFER OR SALE IS MADE OTHERWISE THAN IN ACCORDANCE WITH RULE 144A THEREUNDER.]

B-2

 

EXHIBIT C

Form of Certificate To Be Delivered

in Connection with Transfers

Pursuant to Regulation S

[          ], [     ]

The Bank of New York Mellon Trust Company, N.A.

2 N. LaSalle, Suite 1020

Chicago, IL 60602

Attention: Corporate Trust Department

Facsimile: 312-827-8542

			
	          Re:	 	Aviv Healthcare Properties Limited Partnership, and

Aviv Healthcare Capital Corporation (the “Issuers”)

73/4% Senior Notes due 2019 (the “Notes”)

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 the transaction was executed in, on or through
the facilities of a designated offshore securities market and neither we nor any person
acting on our behalf knows that the transaction has been prearranged 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.

          You, as Trustee, the Issuers, counsel for the Issuers and others 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

C-1

 

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 Transferor]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

C-2

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