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Exhibit 10.13    
    

September 9,
2004 

Vistula
Communications Services, Inc.

40 Portman Square, 4th Floor

London W1H 6LT

United Kingdom 

Gentlemen:

        Reference
is made to the Distribution and Marketing Agreement (the "Agreement"), dated as of August 11, 2004, by and among NetYantra Inc. ("NetYantra US"), NetYantra India
Pvt. Ltd (collectively with NetYantra US, "NetYantra") and Vistula Communications Services, Inc. (the "Company"). Pursuant to Section 13.2 of the Agreement and for good and
valuable consideration, including the agreement by the Company to pay NetYantra the amount of $25,000 in addition to the Initial Payment (defined below) and to issue 50,000 shares of the Company's
common stock to NetYantra US, NetYantra hereby agrees (a) to waive the obligations of the Company under Section 6.2.1 of the Agreement for a period of thirty-five
(35) days with the effect that the Company will instead now be required to pay to NetYantra the sum of $150,000 (the "Initial Payment") in one or more payments on or before October 15,
2004 (the "New Payment Date"); and (b) that the Agreement shall not terminate pursuant to the last sentence of Section 9.2 of the Agreement except in the event that the Company fails to
pay the Initial Payment to NetYantra in one or more payments on or before the New Payment Date. NetYantra acknowledges and agrees that it has already received the sum of $50,000 from the Company as
partial payment of the Initial Payment. 

        This
letter agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which together constitute one and the same document. Faxed signatures
shall have the same binding effect as original signatures. 

	 	 	Very truly yours,
	

 	
 	
NetYantra Inc.
	

 	
 	

By:	

/s/  VINOD SANKAR      
 Name: Vinod Sankar

Title: Director

	

 	
 	
NetYantra India Pvt. Ltd
	

 	
 	

By:	

/s/  VINOD SANKAR      
 Name: Vinod Sankar

Title: Director

Agreed
to and accepted: 

Vistula Communications Services, Inc.  

	

By:	
 	

/s/  RUPERT GALLIERS-PRATT      
 Name: Rupert Galliers-Pratt

Title: Chairman	
 	

/s/  CHRISTOPHER S. BURKE      
 Christopher S. Burke

Chief Executive Officer and President

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Exhibit 10.13Exhibit
4.1

 

OTELCO INC.

and the Guarantors from time to time party hereto,

as Guarantors

 

 

Wells Fargo Bank, National Association

Trustee

 

 

FORM OF INDENTURE

 

Dated as of
           , 2004

 

 

 

[    ]%
Senior  Subordinated Notes Due 2019

 

 

Table of Contents

 

	
   

  	
   

  	
  Page

  
	
   

  	
  ARTICLE 1 Definitions And Incorporation By
  Reference

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  Definitions

  	
  1

  
	
  SECTION 1.02.

  	
  Other Definitions

  	
  26

  
	
  SECTION 1.03.

  	
  Incorporation by Reference of Trust
  Indenture Act

  	
  27

  
	
  SECTION 1.04.

  	
  Rules of Construction

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2 The Notes

  
	
   

  
	
  SECTION 2.01.

  	
  The Notes; Amount Unlimited

  	
  28

  
	
  SECTION
  2.02.

  	
  Form
  and Dating

  	
  29

  
	
  SECTION 2.03.

  	
  Execution and Authentication

  	
  31

  
	
  SECTION 2.04.

  	
  Registrar and Paying Agent

  	
  32

  
	
  SECTION 2.05.

  	
  Paying Agent To Hold Money in Trust

  	
  32

  
	
  SECTION 2.06.

  	
  Holders Lists

  	
  33

  
	
  SECTION 2.07.

  	
  Transfer and Exchange

  	
  33

  
	
  SECTION 2.08.

  	
  Physical Notes

  	
  35

  
	
  SECTION 2.09.

  	
  Replacement Notes

  	
  36

  
	
  SECTION 2.10.

  	
  Outstanding Notes

  	
  37

  
	
  SECTION 2.11.

  	
  Temporary Notes

  	
  37

  
	
  SECTION 2.12.

  	
  Cancellation

  	
  37

  
	
  SECTION 2.13.

  	
  CUSIP Numbers

  	
  37

  
	
  SECTION 2.14.

  	
  Tax Treatment

  	
  37

  
	
  SECTION 2.15.

  	
  Maturity

  	
  38

  
	
   

  	
   

  	
  38

  
	
  ARTICLE 3 Redemption

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Notices to Trustee

  	
  38

  
	
  SECTION 3.02.

  	
  Selection of Notes to be Redeemed

  	
  38

  
	
  SECTION 3.03.

  	
  Notice of Redemption

  	
  38

  
	
  SECTION 3.04.

  	
  Effect of Notice of Redemption

  	
  39

  
	
  SECTION 3.05.

  	
  Deposit of Redemption Price

  	
  39

  
	
  SECTION 3.06.

  	
  Notes Redeemed in Part

  	
  40

  
	
  SECTION 3.07.

  	
  Redemption of Notes

  	
  40

  
	
  SECTION 3.08.

  	
  Automatic Separation of IDSs

  	
  40

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4 Covenants

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  Payment of Notes; Interest Deferral

  	
  41

  
	
  SECTION 4.02.

  	
  Reports and Other Information

  	
  41

  
	
  SECTION 4.03.

  	
  Limitations on Incurrence of Indebtedness
  and Issuance of Disqualified Stock and Preferred Stock

  	
  42

  
	
  SECTION 4.04.

  	
  Limitation on Restricted Payments

  	
  46

  
	
  SECTION 4.05.

  	
  Dividend and Other Payment Restrictions
  Affecting Subsidiaries

  	
  49

  

 

 

	
  SECTION 4.06.

  	
  Asset Sales

  	
  51

  
	
  SECTION 4.07.

  	
  Transactions with Affiliates

  	
  53

  
	
  SECTION 4.08.

  	
  Liens

  	
  55

  
	
  SECTION 4.09.

  	
  Change of Control

  	
  56

  
	
  SECTION 4.10.

  	
  Compliance Certificate

  	
  57

  
	
  SECTION 4.11.

  	
  Further Instruments and Acts

  	
  57

  
	
  SECTION 4.12.

  	
  Future Guarantors

  	
  57

  
	
  SECTION 4.13.

  	
  Limitation on Layering

  	
  57

  
	
  SECTION 4.14.

  	
  Subsequent Issuance

  	
  58

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5 Successor Company

  
	
   

  
	
  SECTION
  5.01.

  	
  Merger,
  Consolidation or Sale of All or Substantially All Assets

  	
  59

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6 Defaults And Remedies

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  Events of Default

  	
  61

  
	
  SECTION 6.02.

  	
  Acceleration.

  	
  63

  
	
  SECTION 6.03.

  	
  Other Remedies

  	
  63

  
	
  SECTION 6.04.

  	
  Waiver of Past Defaults

  	
  64

  
	
  SECTION 6.05.

  	
  Control by Majority

  	
  64

  
	
  SECTION 6.06.

  	
  Limitation on Suits

  	
  64

  
	
  SECTION 6.07.

  	
  Rights of Holders to Receive Payment

  	
  65

  
	
  SECTION 6.08.

  	
  Collection Suit by Trustee

  	
  65

  
	
  SECTION 6.09.

  	
  Trustee May File Proofs of Claim

  	
  65

  
	
  SECTION 6.10.

  	
  Trustee May Enforce Claims Without
  Possession of Notes

  	
  65

  
	
  SECTION 6.11.

  	
  Priorities

  	
  66

  
	
  SECTION 6.12.

  	
  Undertaking for Costs

  	
  66

  
	
  SECTION 6.13.

  	
  Waiver of Stay or Extension Law

  	
  66

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7 Trustee

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
  Duties of Trustee

  	
  66

  
	
  SECTION 7.02.

  	
  Rights of Trustee

  	
  68

  
	
  SECTION 7.03.

  	
  Individual Right of Trustee

  	
  69

  
	
  SECTION 7.04.

  	
  Trustee’s Disclaimer

  	
  69

  
	
  SECTION 7.05.

  	
  Notice of Defaults

  	
  69

  
	
  SECTION 7.06.

  	
  Reports by Trustee to Holders

  	
  69

  
	
  SECTION 7.07.

  	
  Compensation and Indemnity

  	
  69

  
	
  SECTION 7.08.

  	
  Replacement of Trustee

  	
  70

  
	
  SECTION 7.09.

  	
  Successor Trustee by Merger

  	
  71

  
	
  SECTION 7.10.

  	
  Eligibility; Disqualification

  	
  71

  
	
  SECTION 7.11.

  	
  Conflicting Interests

  	
  71

  
	
  SECTION 7.12.

  	
  Preferential Collection of Claims Against
  Company

  	
  72

  

 

ii

 

	
  ARTICLE 8 Discharge Of Indenture;
  Defeasance

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01.

  	
  Satisfaction and Discharge of Indenture

  	
  72

  
	
  SECTION 8.02.

  	
  Legal and Covenant Defeasance; Conditions
  to Defeasance

  	
  73

  
	
  SECTION
  8.03.

  	
  Repayment
  to Company.

  	
  74

  
	
  SECTION 8.04.

  	
  Indemnity for Government Obligations.

  	
  74

  
	
  SECTION 8.05.

  	
  Reinstatement.

  	
  74

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9 Amendments

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
  Without Consent of Holders

  	
  75

  
	
  SECTION 9.02.

  	
  With Consent of Holders

  	
  76

  
	
  SECTION 9.03.

  	
  Notice to Holders

  	
  77

  
	
  SECTION 9.04.

  	
  Compliance with Trust Indenture Act

  	
  77

  
	
  SECTION 9.05.

  	
  Revocation and Effect of Consent and
  Waivers

  	
  78

  
	
  SECTION 9.06.

  	
  Notation on or Exchange of Notes

  	
  78

  
	
  SECTION 9.07.

  	
  Trustee To Sign Amendments

  	
  78

  
	
  SECTION 9.08.

  	
  Payment for Consent.

  	
  78

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  
	
  Subordination

  
	
   

  
	
  SECTION
  10.01.

  	
  Agreement
  To Subordinate

  	
  79

  
	
  SECTION
  10.02.

  	
  Liquidation,
  Dissolution or Bankruptcy

  	
  79

  
	
  SECTION 10.03.

  	
  Default on Designated Senior Indebtedness

  	
  79

  
	
  SECTION
  10.04.

  	
  When
  Distribution Must Be Paid Over

  	
  80

  
	
  SECTION
  10.05.

  	
  Subrogation

  	
  80

  
	
  SECTION
  10.06.

  	
  Relative
  Rights

  	
  81

  
	
  SECTION
  10.07.

  	
  Subordination
  May Not Be Impaired by the Company

  	
  81

  
	
  SECTION
  10.08.

  	
  Right
  of Trustee and Paying Agent

  	
  81

  
	
  SECTION
  10.09.

  	
  Distribution
  or Notice to Representative

  	
  81

  
	
  SECTION
  10.10.

  	
  Article
  10 Not To Prevent Events of Default or Limit Right To Accelerate

  	
  82

  
	
  SECTION
  10.11.

  	
  Trust
  Moneys Not Subordinated.

  	
  82

  
	
  SECTION
  10.12.

  	
  Trustee
  Entitled To Rely

  	
  82

  
	
  SECTION
  10.13.

  	
  Trustee
  To Effectuate Subordination

  	
  82

  
	
  SECTION
  10.14.

  	
  Trustee
  Not Fiduciary for Holders of Senior Indebtedness

  	
  82

  
	
  SECTION
  10.15.

  	
  Reliance
  by Holders of Senior Indebtedness on Subordination Provisions

  	
  82

  
	
  SECTION
  10.16.

  	
  Defeasance

  	
  83

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11 Guarantees

  
	
   

  	
   

  	
   

  
	
  SECTION 11.01.

  	
  Guarantee

  	
  83

  
	
  SECTION 11.02.

  	
  Limitation on Liability

  	
  86

  
	
  SECTION 11.03.

  	
  Successors and Assigns

  	
  86

  
	
  SECTION 11.04.

  	
  No Waiver

  	
  86

  
	
  SECTION 11.05.

  	
  Modification

  	
  87

  

 

iii

 

	
  SECTION 11.06.

  	
  Execution of Supplemental Indenture for
  Future Guarantors

  	
  87

  
	
  SECTION 11.07.

  	
  Notation Not Required

  	
  87

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12 Subordination Of The Guarantees

  
	
   

  	
   

  	
   

  
	
  SECTION
  12.01.

  	
  Agreement
  To Subordinate

  	
  87

  
	
  SECTION
  12.02.

  	
  Liquidation,
  Dissolution or Bankruptcy

  	
  87

  
	
  SECTION
  12.03.

  	
  Default
  on Designated Senior Indebtedness of a Guarantor

  	
  88

  
	
  SECTION
  12.04.

  	
  Demand
  for Payment.

  	
  89

  
	
  SECTION
  12.05.

  	
  When
  Distribution Must Be Paid Over

  	
  89

  
	
  SECTION
  12.06.

  	
  Subrogation

  	
  89

  
	
  SECTION
  12.07.

  	
  Relative
  Rights

  	
  89

  
	
  SECTION
  12.08.

  	
  Subordination
  May Not Be Impaired by a Guarantor

  	
  89

  
	
  SECTION
  12.09.

  	
  Right
  of Trustee and Paying Agent

  	
  89

  
	
  SECTION
  12.10.

  	
  Distribution
  or Notice to Representative

  	
  90

  
	
  SECTION
  12.11.

  	
  Article
  12 Not To Prevent Events of Default or Limit Right To Accelerate

  	
  90

  
	
  SECTION
  12.12.

  	
  Trustee
  Entitled To Rely

  	
  90

  
	
  SECTION
  12.13.

  	
  Trustee
  To Effectuate Subordination

  	
  91

  
	
  SECTION
  12.14.

  	
  Trustee
  Not Fiduciary for Holders of Senior Indebtedness of Guarantor

  	
  91

  
	
  SECTION
  12.15.

  	
  Reliance
  by Holders of Senior Indebtedness of a Guarantor on Subordination Provisions

  	
  91

  
	
  SECTION
  12.16.

  	
  Defeasance

  	
  91

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13 Miscellaneous

  
	
   

  	
   

  	
   

  
	
  SECTION
  13.01.

  	
  Trust
  Indenture Act Controls

  	
  91

  
	
  SECTION
  13.02.

  	
  Notices

  	
  91

  
	
  SECTION
  13.03.

  	
  Communication
  by Holders with Other Holders

  	
  92

  
	
  SECTION
  13.04.

  	
  Certificate
  and Opinion as to Conditions Precedent

  	
  92

  
	
  SECTION
  13.05.

  	
  Statements
  Required in Certificate or Opinion

  	
  93

  
	
  SECTION
  13.06.

  	
  When
  Notes Disregarded

  	
  93

  
	
  SECTION
  13.07.

  	
  Rules
  by Trustee, Paying Agent and Registrar

  	
  93

  
	
  SECTION
  13.08.

  	
  Legal
  Holidays

  	
  93

  
	
  SECTION 13.09.

  	
  Governing
  Law

  	
  93

  
	
  SECTION
  13.10.

  	
  No
  Recourse Against Others

  	
  94

  
	
  SECTION
  13.11.

  	
  Successors

  	
  94

  
	
  SECTION
  13.12.

  	
  Multiple
  Originals

  	
  94

  
	
  SECTION
  13.13.

  	
  Table
  of Contents; Headings

  	
  94

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
  Form of Global Note

  	
   

  
	
  Exhibit B

  	
  -

  	
  Form of Supplemental Indenture for
  Guarantors

  	
   

  
	
  Exhibit C

  	
  -

  	
  Form of Solvency Certificate

  	
   

  

 

iv

 

Certain
Sections of this Indenture relating to Sections 310 through 318

inclusive of the Trust Indenture Act of 1939:

 

	
  Trust Indenture Act Section

  	
   

  	
  Indenture Section

  
	
   

  	
   

  	
   

  
	
  § 310(a)(1)

  	
   

  	
  7.10

  
	
  (a)(2)

  	
   

  	
  7.10

  
	
  (a)(3)

  	
   

  	
  Not Applicable

  
	
  (a)(4)

  	
   

  	
  Not Applicable

  
	
  (b)

  	
   

  	
  7.11

  
	
  § 311(a)

  	
   

  	
  7.12

  
	
  (b)

  	
   

  	
  7.12

  
	
  § 312(a)

  	
   

  	
  2.06

  
	
  (b)

  	
   

  	
  13.03

  
	
  (c)

  	
   

  	
  13.03

  
	
  § 313(a)

  	
   

  	
  7.06

  
	
  (b)

  	
   

  	
  7.06

  
	
  (c)

  	
   

  	
  7.06

  
	
  (d)

  	
   

  	
  7.06

  
	
  § 314(a)

  	
   

  	
  4.02

  
	
  (a)(4)

  	
   

  	
  13.04

  
	
   

  	
   

  	
  7.05

  
	
  (b)

  	
   

  	
  Not Applicable

  
	
  (c)(1)

  	
   

  	
  13.05

  
	
  (c)(2)

  	
   

  	
  13.05

  
	
  (c)(3)

  	
   

  	
  Not Applicable

  
	
  (d)

  	
   

  	
  Not Applicable

  
	
  (e)

  	
   

  	
  13.05

  
	
  § 315(a)

  	
   

  	
  7.01

  
	
  (b)

  	
   

  	
  7.05

  
	
  (c)

  	
   

  	
  7.01

  
	
  (d)

  	
   

  	
  7.01

  
	
  (d)(1)

  	
   

  	
  7.01

  
	
  (d)(2)

  	
   

  	
  7.01

  
	
  (d)(3)

  	
   

  	
  6.05

  
	
  (e)

  	
   

  	
  6.12

  

 

v

 

	
  Trust Indenture Act Section

  	
   

  	
  Indenture Section

  
	
  § 316(a)

  	
   

  	
  6.05

  
	
   

  	
   

  	
  6.04

  
	
  (a)(1)(A)

  	
   

  	
  13.06

  
	
   

  	
   

  	
  6.05

  
	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
  (a)(2)

  	
   

  	
  Not Applicable

  
	
  (b)

  	
   

  	
  6.07

  
	
  (c)

  	
   

  	
  9.05

  
	
   

  	
   

  	
   

  
	
  § 317(a)(1)

  	
   

  	
  6.03

  
	
  (a)(2)

  	
   

  	
  6.09

  
	
  (b)

  	
   

  	
  2.05

  
	
  § 318(a)

  	
   

  	
  13.01

  

 

This
cross-reference table shall not for any purpose be deemed to be part of this
Indenture.

 

vi

 

INDENTURE, dated as of              , 2004 (as amended, supplemented or otherwise
modified from time to time, this “Indenture”), among OTELCO INC., a Delaware
corporation (the “Company”), each subsidiary of the Company listed on the
signature pages hereto (the “Guarantors”), and Wells Fargo Bank, National
Association, as trustee (the “Trustee”).

 

The Company has duly authorized the execution
and delivery of this Indenture to provide for the issuance of the Notes.  Each Guarantor party hereto as of the date
hereof has duly authorized the execution and delivery of this Indenture to
provide for its guarantee of the Notes, as provided in this Indenture.  Each Guarantor party hereto as of the date
hereof has received good and valuable consideration for its execution and
delivery of this Indenture and its guarantee of the Notes.

 

NOW,
THEREFORE, THIS INDENTURE WITNESSETH:

 

For and in consideration of the premises and
the purchase of (i) the Company’s ____% senior subordinated notes issued on
the date hereof (the “Original Notes”), and (ii) any Additional Notes (as
defined herein) that may be issued on any date after the Issue Date, it is
mutually agreed, for the benefit of all Holders of the Notes, as follows:

 

ARTICLE 1

 

DEFINITIONS
AND INCORPORATION BY REFERENCE

 

SECTION 1.01. Definitions.

 

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

 

(i)    Indebtedness
of any other Person existing at the time such other Person is merged with or
into or became a Restricted Subsidiary of such specified Person; and 

 

(ii)   Indebtedness
secured by a Lien encumbering any asset acquired by such specified Person,

 

in each case,
other than Indebtedness Incurred as consideration in, in contemplation of, or
to provide all or any portion of the funds or credit support utilized to
consummate, the transaction or series of related transactions pursuant to which
such Restricted Subsidiary became a Restricted Subsidiary or was otherwise
acquired by such Person, or such asset was acquired by such Person, as
applicable. 

 

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

 

(i)   
   taxes paid and provision for taxes
based on income or profits of such Person for such period to the extent such
taxes or provision for taxes were deducted in computing Consolidated Net
Income, plus 

 

(ii)  
   Consolidated Interest Expense of such
Person for such period to the extent the same was deducted in computing
Consolidated Net Income, plus

 

 

(iii) 
   Consolidated Depreciation and
Amortization Expense of such Person for such period to the extent such
Consolidated Depreciation and Amortization Expense was deducted in computing
Consolidated Net Income, plus

 

(iv)     any
non-recurring fees, expenses or charges related to any Securities Offering,
Permitted Investment, acquisition, or Indebtedness permitted to be Incurred by
this Indenture (in each case, whether or not successful), deducted in such
period in computing Consolidated Net Income, plus 

 

(v)      the
amount of annual management and advisory fees and related expenses paid to
Seaport Capital, deducted in such period in computing Consolidated Net Income
during any period prior to the Issue Date, plus

 

(vi)     any
other non-cash charges reducing Consolidated Net Income for such period
(excluding any such charge which requires an accrual of, or cash reserve for,
anticipated cash charges for any future period).

 

Notwithstanding the foregoing, the provision
for taxes based on the income or profits of, and the depreciation and
amortization of, a Subsidiary of the Company shall be added to Consolidated Net
Income to compute Adjusted EBITDA only to the extent (and in the same
proportion) that the Net Income of such Subsidiary was included in calculating
Consolidated Net Income and only if a corresponding amount would be permitted
at the date of determination to be paid as a dividend to the Company by such
Subsidiary without prior approval (that has not been obtained), pursuant to the
terms of its charter and all agreements, instruments, judgments, decrees,
orders, statutes, rules and governmental regulations applicable to such
Subsidiary or its stockholders.

 

“Affiliate” of
any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified
Person.  For purposes of this
definition, “control” (including, with correlative meanings, the terms
“controlling,” “controlled by” and “under common control with”), as used with
respect to any Person, means the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of such
Person, whether through the ownership of voting securities, by agreement or
otherwise.  For purposes of Sections
4.06 and 4.07 only, “Affiliate” shall also mean any beneficial owner of shares
representing 10% or more of the total voting power of the Voting Stock (on a
fully diluted basis) of the Company or of rights or warrants to purchase such
Voting Stock (whether or not currently exercisable) and any Person who would be
an Affiliate of any such beneficial owner pursuant to the first sentence
hereof.

 

“Asset Sale”
means: 

 

(i)    the
sale, conveyance, transfer or other disposition (whether in a single
transaction or a series of related transactions) of property or assets
(including by way of a Sale/Leaseback Transaction) of the Company or any
Restricted Subsidiary (each referred to in this definition as a “disposition”);
or 

 

2

 

(ii)   the
issuance or sale of Equity Interests of any Restricted Subsidiary (other than
to the Company or another Restricted Subsidiary) (whether in a single
transaction or a series of related transactions), 

 

in each case other than: 

 

(a)           a
disposition of Cash Equivalents or Investment Grade Securities in the ordinary
course of business; 

 

(b)           the
disposition of all or substantially all of the assets of the Company in a
manner permitted pursuant to Section 5.01 or any disposition that constitutes a
Change of Control; 

 

(c)           any
Restricted Payment or Permitted Investment that is permitted to be made, and is
made, under Section 4.04; 

 

(d)           any
disposition of assets with an aggregate Fair Market Value of less than $5.0
million; 

 

(e)           any
disposition of property or assets by a Restricted Subsidiary to the Company or
by the Company or a Restricted Subsidiary to a Restricted Subsidiary; 

 

(f)            any
exchange of like-kind property pursuant to Section 1031 of the Internal Revenue
Code for use in a Similar Business; 

 

(g)           sales
of assets received by the Company upon the foreclosure on a Lien; 

 

(h)           any
sale of Equity Interests in, or Indebtedness or other securities of, an
Unrestricted Subsidiary;

 

(i)            contemporaneous
exchanges by the Company or any Restricted Subsidiary of Communication Assets
for other Communications Assets in the ordinary course of business so long as
the applicable Communication Assets received by the Company or such Restricted
Subsidiary have at least substantially equal Fair Market Value as determined by
a majority of the Board of Directors in good faith;

 

(j)            the
grant of Liens not prohibited by this Indenture;

 

(k)           any
disposition of obsolete, worn out, uneconomical or surplus property or
equipment in the ordinary course of business;

 

(l)             licenses
of intellectual property;

 

(m)          any
disposition of Designated Noncash Consideration; and

 

(n)           sales
of inventory in the ordinary course of business consistent with past practices
and sales of equipment upon termination of a contract with a client entered
into in the ordinary course of business pursuant to the terms of such contract.

 

3

 

“Bankruptcy Law”
means Title 11, United States Code, or any similar federal or state or foreign
law for the relief of debtors.

 

“Board of Directors” means
the Board of Directors of the Company or any committee thereof duly authorized
to act on behalf of such Board.

 

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

 

“Capital
Expenditures” means any expenditure required to be
classified as a capital expenditure in accordance with GAAP.

 

“Capital Stock”
means: 

 

(i)    in
the case of a corporation, corporate stock, including, without limitation,
corporate stock represented by IDSs and corporate stock outstanding upon the
separation of IDSs into the securities represented thereby; 

 

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

 

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

 

(iv)     any
other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing
Person. 

 

“Capitalized Lease
Obligation” means, at the time any determination
thereof is to be made, the amount of the liability in respect of a capital
lease that would at such time be required to be capitalized and reflected as a
liability on a balance sheet (excluding the footnotes thereto) in accordance
with GAAP. 

 

“Cash Equivalents”
means: 

 

(i)    U.S.
dollars and foreign currency exchanged into U.S. dollars within 180 days; 

 

(ii)   securities
issued or directly and fully guaranteed or insured by the United States
government or any agency or instrumentality thereof; 

 

(iii)     certificates
of deposit, time deposits and Eurodollar time deposits with maturities of one
year or less from the date of acquisition, bankers’ acceptances with maturities
not exceeding one year and overnight bank deposits, in each case with any
commercial bank having capital and surplus in excess of $500.0 million and
whose long-term debt is rated at least “A” or the equivalent thereof by Moody’s
or S&P; 

 

(iv)     repurchase
obligations for underlying securities of the types specified in clauses (ii)
and (iii) above entered into with any financial institution meeting the
qualifications specified in clause (iii) above; 

 

4

 

(v)      commercial
paper issued by a corporation (other than an Affiliate of the Company) rated at
least “A-2” or the equivalent thereof by Moody’s or S&P and in each case
maturing within one year after the date of acquisition; 

 

(vi)     investment
funds investing at least 95% of their assets in securities of the types
specified in clauses (i) through (v) above; 

 

(vii)    readily
marketable direct obligations issued by any state of the United States of
America or any political subdivision thereof having one of the two highest
rating categories obtainable from either Moody’s or S&P; and

 

(viii)   Indebtedness
or preferred stock issued by Persons with a rating of “A” or higher from
S&P or “A-2” or higher from Moody’s.

 

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

 

(i)    the
sale, lease or transfer, in one or a series of related transactions, of all or
substantially all of the Company’s assets on a consolidated basis to any person
or group (as such term is used in Section 13(d)(3) of the Exchange Act) other
than the Permitted Holders;

 

(ii)   the
adoption of a plan relating to the liquidation or dissolution of the Company;

 

(iii) 
   the consummation of any transaction
the result of which is that any Person or group (as such term is used in
Section 13 (d) (3) of the Exchange Act) other than the Permitted Holders is or
becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act, except that for purposes of this clause such Person or group
shall be deemed to have ‘‘beneficial ownership’’ of all shares that any such
Person or group has the right to acquire, whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of more
than 50% of the voting power of the voting stock of the Company, by way of
purchase, merger or consolidation or otherwise (other than a creation of a
holding company that does not involve a change in the beneficial ownership of
the Company as a result of such transaction);

 

(iv)     the
merger or consolidation of the Company with or into another Person or the
merger of another Person into the Company with the effect that immediately
after such transaction the stockholders of the Company immediately prior to
such transaction hold, directly or indirectly, less than 50% of the total
voting power of all securities generally entitled to vote in the election of
directors, managers, or trustees of the Person surviving such merger or
consolidation, in each case other than creation of a holding company that does
not involve a change in the beneficial ownership of the Company as a result of
such transaction; or

 

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

 

“Class A Common
Stock” means the Company’s Class A common stock
represented by the IDSs, par value $0.01 per share.

 

5

 

“Class B Common
Stock” means the Company’s Class B common stock, par
value $0.01 per share. 

 

“Communication
Assets” means any property or assets, whether real,
personal or mixed, tangible, including Capital Stock in, and other securities
of, any other Person, including licenses and applications, bids and agreements
to acquire licenses, or other authority to provide telecommunication services,
previously granted, or to be granted, by the Federal Communications Commission,
used or intended for use primarily in connection with a Similar Business.

 

“Company”
means Otelco Inc. until a successor replaces it and, thereafter, means the
successor and, for purposes of any provision contained in this Indenture and
required by the Trust Indenture Act, each other obligor on the Notes.

 

“consolidated”
with respect to any Person shall mean such Person consolidated with its
Restricted Subsidiaries, and shall not include any Unrestricted Subsidiary, but
the interest of such Person in an Unrestricted Subsidiary will be accounted for
as an Investment.

 

“Consolidated
Depreciation and Amortization Expense” means with
respect to any Person for any period, the total amount of depreciation and
amortization expense of such Person and its Restricted Subsidiaries for such
period on a consolidated basis and otherwise determined in accordance with
GAAP.

 

“Consolidated
Interest Expense” means, with respect to any Person
for any period, consolidated interest expense of such Person and its Restricted
Subsidiaries for such period, to the extent such expense was deducted in
computing Consolidated Net Income, determined on a consolidated basis and
otherwise determined in accordance with GAAP, plus, to the extent not included
in such consolidated interest expense, and to the extent Incurred by the
Company or its Restricted Subsidiaries, without duplication:

 

(i)    
  interest expense attributable to leases
constituting part of a Sale/Leaseback Transaction and/or Capitalized Lease
Obligations;

 

(ii)   
  amortization of debt discount and debt
issuance cost;

 

(iii)  
  capitalized interest;

 

(iv)  
  non-cash interest expense;

 

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

 

(vi)   
 net costs associated with Hedging
Obligations (including amortization of fees);

 

(vii)  
 interest Incurred in connection with
Investments in discontinued operations;

 

6

 

(viii)   interest
in respect of Indebtedness of any other Person to the extent such Indebtedness
is guaranteed by the Company or any Restricted Subsidiary, but only to the
extent that such interest is actually paid by the Company or any Restricted
Subsidiary; and

 

(ix)  the
earned discount or yield with respect to the sale of receivables.

 

“Consolidated Net
Income” means, with respect to any Person for any
period, the aggregate of the Net Income of such Person and its Restricted
Subsidiaries for such period, on a consolidated basis; provided, however,
that:

 

(i)   
   any net after-tax extraordinary gains
or losses (less all fees and expenses relating thereto) shall be excluded; 

 

(ii)  
   any increase in amortization or
depreciation resulting from purchase accounting in relation to any acquisition
that is consummated after the Issue Date, net of taxes, shall be excluded;

 

(iii) 
   the Net Income for such period shall
not include the cumulative effect of a change in accounting principles during
such period;

 

(iv)     any
net after-tax income or loss from discontinued operations and any net after-tax
gains or losses on disposal of discontinued operations shall be excluded;

 

(v)      any
net after-tax gains or losses (less all fees and expenses relating thereto)
attributable to asset dispositions other than in the ordinary course of
business (as determined in good faith by the Board of Directors) shall be
excluded;

 

(vi)   
 the Net Income for such period of any
Person that is not a Subsidiary of such Person, or is an Unrestricted Subsidiary,
or that is accounted for by the equity method of accounting, shall be included
only to the extent of the amount of dividends or distributions or other
payments paid in cash (or to the extent converted into cash) to the referent
Person or a Restricted Subsidiary thereof in respect of such period;

 

(vii)  
 the Net Income for such period of any
Restricted Subsidiary shall be excluded to the extent that the declaration or
payment of dividends or similar distributions by such Restricted Subsidiary of
its Net Income is not at the date of determination permitted without any prior
governmental approval (which has not been obtained) or, directly or indirectly,
by the operation of the terms of its charter or any agreement, instrument,
judgment, decree, order, statute, rule or governmental regulation applicable to
that Restricted Subsidiary or its stockholders, unless such restrictions with
respect to the payment of dividends or in similar distributions have been
legally waived; provided that the net loss of any such Restricted Subsidiary
shall be included;

 

(viii)   any
non-cash compensation expense realized for grants of performance shares, stock
options or other stock awards to officers, directors and employees of the
Company or any Restricted Subsidiary shall be excluded; and

 

(ix)     any
non-cash impairment charges resulting from the application of Statement of
Financial Accounting Standards No. 142 shall be excluded. 

 

7

 

Notwithstanding the foregoing, for the purpose
of Section 4.04 only, there shall be excluded from Consolidated Net Income any
dividends, repayments of loans or advances or other transfers of assets from
Unrestricted Subsidiaries to the Company or a Restricted Subsidiary to the
extent such dividends, repayments or transfers increase the amount of
Restricted Payments permitted under Section 4.04(c)(iv).

 

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

 

(i)    was
a member of the Company’s Board of Directors on the date of this Indenture; or 

 

(ii)   was
nominated for election or elected to the Board of Directors with the
affirmative vote of at least a majority of the Continuing Directors who were
members of the Company’s Board of Directors at the time of the nomination or
election. 

 

“Credit Agreement”
means the credit agreement dated as of [    
] 2004, among the Company, the Subsidiaries of the Company named
therein, the financial institutions from time to time a party thereto and General
Electric Capital Corporation, as Administrative Agent, as amended, restated,
supplemented, waived, replaced, restructured, repaid, increased, refunded,
refinanced or otherwise modified from time to time (whether or not terminated
and whether with the original lenders or otherwise), including any successor or
replacement facility extending the maturity thereof or otherwise restructuring
all or any portion of the Indebtedness under such agreement or increasing the
amount of available borrowings thereunder (except to the extent that any such
amendment, restatement, supplement, waiver, replacement, refunding, refinancing
or other modification thereto relating to increases in Indebtedness would be
prohibited by the terms of this Indenture, unless otherwise agreed to by the
Holders of at least a majority in aggregate principal amount of Notes at the
time outstanding).

 

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

 

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

 

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

 

“Designated Capital
Expenditures” means the positive result, if any, of
(A) Capital Expenditures for the relevant period minus (B) Net Available Cash
(except to the extent such Net Available Cash is included in Adjusted EBITDA)
of any asset sale (net of repayments of Indebtedness therewith) applied
pursuant to the Asset Sales provisions of the Credit Agreement to finance such
Capital Expenditures and pursuant to Section 4.06.

 

“Designated Noncash
Consideration” means the Fair Market Value of noncash
consideration received by the Company or one of its Restricted Subsidiaries in
connection with an Asset Sale that is so designated as Designated Noncash
Consideration pursuant to an Officers’

 

8

 

Certificate,
setting forth the basis of such valuation, less the amount of Cash Equivalents
received in connection with a subsequent sale of such Designated Noncash
Consideration. 

 

“Designated Preferred
Stock” means Preferred Stock of the Company (other
than Disqualified Stock) that is issued for cash (other than to a Subsidiary of
the Company or an employee stock ownership plan or trust established by the
Company or any of its Subsidiaries) and is so designated as Designated
Preferred Stock, pursuant to an Officers’ Certificate, on the issuance date
thereof, the cash proceeds of which are excluded from the calculation set forth
in Section 4.04(c).

 

“Designated Senior
Indebtedness” means (i) the Senior Lender Indebtedness
and (ii) any other Senior Indebtedness of the Company with a principal amount
in excess of $25.0 million and designated by the Company as Designated Senior
Indebtedness.

 

“Disqualified Stock”
means, with respect to any Person, any Capital Stock of such Person which, by
its terms (or by the terms of any security into which it is convertible or for
which it is redeemable or exchangeable), or upon the happening of any event: 

 

(i)    matures
or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise; 

 

(ii)   is
convertible or exchangeable for Indebtedness or Disqualified Stock; or 

 

(iii)     is
redeemable at the option of the holder thereof, in whole or in part, in each
case prior to the first anniversary of the maturity date of the Notes;

 

provided, however,
that only the portion of Capital Stock which so matures or is mandatorily
redeemable, is so convertible or exchangeable or is so redeemable at the option
of the holder thereof prior to such first anniversary shall be deemed to be
Disqualified Stock; provided  further, however, that if
such Capital Stock is issued to any employee or to any plan for the benefit of
employees of the Company or its Subsidiaries or by any such plan to such
employees, such Capital Stock shall not constitute Disqualified Stock solely
because it may be required to be repurchased by the Company in order to satisfy
applicable statutory or regulatory obligations or as a result of such
employee’s termination, death or disability. Notwithstanding any provision to
the contrary herein, the Company’s Class B common stock that is exchangeable
for Additional Notes shall not be Disqualified Stock. In addition,
notwithstanding clause (iii) of this definition, any Capital Stock that would
constitute Disqualified Stock solely because the holders thereof have the right
to require the Company to repurchase such Capital Stock upon the occurrence of
a change of control or an asset sale shall not constitute Disqualified Stock if
the terms of such Capital Stock provide that the Company may not repurchase or
redeem any such Capital Stock pursuant to such provisions unless such
repurchase or redemption complies with Section 4.04.

 

“Dividend Suspension
Period” means any period for which the Interest
Coverage Ratio of the Company for the twelve-month period ended on the last day
of the most recently ended fiscal quarter for which internal financial statements
are available is less than 1.40 to 1.00.

 

9

 

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

 

“Excess Cash”
shall mean, with respect to any period, Adjusted EBITDA of the Company for such
period, minus the sum (without duplication) of the following,  each determined for such period on a
consolidated basis:

 

(i)    cash interest expense;

 

(ii)   deferred interest, if any, not otherwise included in clause
(i);

 

(iii)  cash income tax expense;

 

(iv) Designated Capital Expenditures (except to the extent
financed with an incurrence of indebtedness, until such indebtedness is
repaid);

 

(v)  any item included under the definition of Adjusted EBITDA
that reflects a cash payment, and

 

(vi) any mandatory prepayment that results in a permanent
reduction to the principal amount (or commitments under a revolving facility)
of Designated Senior Indebtedness prior to its scheduled maturity (to the
extent not included in the clauses contained in clauses (i) and (ii) above); provided
that if Senior Indebtedness is Incurred in any such period that replaces
Designated Senior Indebtedness previously prepaid or commitments under a
revolving facility are increased to previous levels, which prepayment (or
reduction in commitments under a revolving credit facility) resulted in a
reduction to Excess Cash pursuant to this clause, Excess Cash shall be
increased by an amount up to such previous reduction. 

 

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

 

“Exchange Conditions”
mean the conditions set forth in Section 4.14(d) and
the following conditions, all of which must be satisfied at the time that Class
B common stock is exchanged in accordance with its terms into IDSs of the
Company (the ‘‘Exchange’’):

 

(i)    the
Exchange must comply with all applicable laws, including, without limitation,
securities laws;

 

(ii)   the
Exchange must occur pursuant to an effective registration statement in the
United States;

 

(iii)  the
Exchange will not conflict with or cause a default under any material financing
agreement;

 

(iv) the
Exchange will not cause a mandatory suspension of dividends or deferral of
interest under any material financing agreement as of the measurement date
immediately following the proposed exchange date; and

 

10

 

(v)  no
Default or Event of Default has occurred and is continuing or will occur as a
result of the Exchange under this Indenture.

 

“Fair Market Value”
means, with respect to any asset or property, the price which could be
negotiated in an arm’s-length, free market transaction, for cash, between a
willing seller and a willing and able buyer, neither of whom is under undue
pressure or compulsion to complete the transaction. 

 

“GAAP”
means generally accepted accounting principles 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
have been approved by a significant segment of the accounting profession, which
are in effect on the Issue Date.

 

“guarantee”
means a guarantee (other than by endorsement of negotiable instruments for
collection in the ordinary course of business), direct or indirect, in any
manner (including, without limitation, letters of credit and reimbursement
agreements in respect thereof), of all or any part of any Indebtedness or other
obligations. 

 

“Guarantee” means
any guarantee of the Company’s obligations under this Indenture and on the
Notes by any Person in accordance with provisions of this Indenture.

 

“Guarantor”
means any Person that Incurs a Guarantee; provided that upon the release
or discharge of such Person from its Guarantee in accordance with this
Indenture, such Person ceases to be a Guarantor.

 

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

 

(i)    currency
exchange, interest rate or commodity swap agreements, currency exchange,
interest rate or commodity cap agreements and currency exchange, interest rate
or commodity collar agreements, and 

 

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

 

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

 

“IDSs”
means the Company’s Income Deposit Securities, whether currently outstanding or
as may be issued from time to time. 

 

“Incur”
means issue, assume, guarantee, incur or otherwise become liable for; provided,
however, that any Indebtedness or Capital Stock of a Person existing at
the time such person becomes a Subsidiary (whether by merger, consolidation,
acquisition or otherwise) shall be deemed to be Incurred by such Person at the
time it becomes a Subsidiary.

 

“Indebtedness”
means, with respect to any Person: 

 

11

 

(i)  the principal and premium (if
any) of any indebtedness of such Person, whether or not contingent: 

 

(a)           in
respect of borrowed money; 

 

(b)            evidenced
by bonds, notes, debentures or similar instruments or letters of credit or
bankers’ acceptances (or, without duplication, reimbursement agreements in
respect thereof); 

 

(c)           representing
the deferred and unpaid purchase price of any property, which purchase price is
due more than six months after the date of placing the property in service or
taking delivery and title thereto;

 

(d)           in
respect of Capitalized Lease Obligations; or 

 

(e)           representing
any Hedging Obligations, 

 

if and to the extent that any of the
foregoing Indebtedness (other than letters of credit and Hedging Obligations)
would appear as a liability on a balance sheet 
(excluding the footnotes thereto) of such Person prepared in accordance
with GAAP; 

 

(ii)  to the extent not otherwise
included, any obligation of such Person to be liable for, or to pay, as
obligor, guarantor or otherwise, on the Indebtedness of another Person (other
than by endorsement of negotiable instruments for collection in the ordinary
course of business); and 

 

(iii)  to the extent not otherwise
included, Indebtedness of another Person secured by a Lien on any asset owned
by such Person (whether or not such Indebtedness is assumed by such Person); provided,
however, that the amount of such Indebtedness will be the lesser of (a)
the Fair Market Value of such asset at such date of determination and (b) the
amount of such Indebtedness of such other Person; 

 

provided, further,
that any obligation of the Company or any Restricted Subsidiary in respect of
(i) minimum guaranteed commissions, or other similar payments, to clients,
minimum returns to clients or stop loss limits in favor of clients or
indemnification obligations to clients, in each case pursuant to contracts to
provide services to clients entered into in the ordinary course of business,
and (ii) account credits to participants under the LTIP or any successor or
similar compensation plan, shall be deemed not to constitute Indebtedness. 

 

“Independent
Financial Advisor” means an accounting, appraisal or
investment banking firm or consultant to Persons engaged in a similar business
of nationally recognized standing that is, in the good faith determination of
the Company, qualified to perform the task for which it has been engaged. 

 

“Interest Coverage
Ratio” for any period, means the ratio of Adjusted
EBITDA to Consolidated Interest Expense for the twelve-month period ended on
the last day of any fiscal quarter.

 

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

 

12

 

“Investment Grade
Securities” means: 

 

(i)  securities issued or directly
and fully guaranteed or insured by the United States government or any agency
or instrumentality thereof (other than Cash Equivalents); 

 

(ii)  debt securities or debt
instruments with a rating of BBB- or higher by S&P or Baa3 or higher by
Moody’s or the equivalent of such rating by such rating organization, or if no
rating of S&P or Moody’s then exists, the equivalent of such rating by any
other nationally recognized securities rating agency, but excluding any debt
securities or instruments constituting loans or advances among the Company and
its Subsidiaries; and 

 

(iii)  investments in any fund that
invests exclusively in investments of the type specified in clauses (i) and (ii)
which fund may also hold immaterial amounts of cash pending investment and/or
distribution. 

 

“Investments”
means, with respect to any Person, all investments by such Person in other
Persons (including Affiliates) in the form of loans (including guarantees),
advances or capital contributions (excluding accounts receivable, trade credit
and advances to customers and commission, travel and similar advances to
officers, employees and consultants made in the ordinary course of business),
purchases or other acquisitions for consideration (including agreements
providing for the adjustment of purchase price) of Indebtedness, Equity
Interests or other securities issued by any other Person and investments that
are required by GAAP to be classified on the balance sheet of the Company in
the same manner as the other investments included in this definition to the
extent such transactions involve the transfer of cash or other property. 

 

For purposes of the definition of
“Unrestricted Subsidiary” and Section 4.04:

 

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

 

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

 

“Issue Date”
means the first date on which any Notes are authenticated.

 

“Leverage Ratio”
means, with respect to any Person on any date, the ratio of:

 

(i) 
total Indebtedness of such Person and its Restricted Subsidiaries on a
consolidated basis as of such date (which shall include the average daily
balance of Indebtedness under any

 

13

 

revolving
credit facility during the twelve-month period ended on the last day of the
most recently ended fiscal quarter) to

 

(ii) the Adjusted EBITDA of such Person for
the most recently ended twelve-month period ended on the last day of any fiscal
quarter.

 

In the event that the Company or any of its
Restricted Subsidiaries Incurs or redeems any Indebtedness or issues or redeems
Preferred Stock subsequent to the commencement of the period for which the
Leverage Ratio is being calculated but prior to the event for which the
calculation of the Leverage Ratio is made (the ‘‘Calculation Date’’), then the
Leverage Ratio shall be calculated giving pro forma effect to such Incurrence
or redemption of Indebtedness, or such issuance or redemption of Preferred
Stock, as if the same had occurred at the beginning of the applicable
four-quarter period.

 

For purposes of making the computation
referred to above, Investments, acquisitions, dispositions, mergers,
consolidations and discontinued operations (as determined in accordance with
GAAP), in each case with respect to an operating unit of a business, that have
been made by the Company or any of its Restricted Subsidiaries during the
four-quarter reference period or subsequent to such reference period and on or
prior to or simultaneously with the Calculation Date shall be calculated on a
pro forma basis assuming that all such Investments, acquisitions, dispositions,
discontinued operations, mergers and consolidations (and the reduction of any
associated interest coverage obligations and the change in Adjusted EBITDA
resulting therefrom) had occurred on the first day of the four-quarter
reference period. If since the beginning of such period any Person (that
subsequently became a Restricted Subsidiary or was merged with or into the
Company or any Restricted Subsidiary since the beginning of such period) shall
have made any Investment, acquisition or disposition, have discontinued any
operation, or have engaged in merger or consolidation, in each case with
respect to an operating unit of a business, that would have required adjustment
pursuant to this definition, then the Leverage Ratio shall be calculated giving
pro forma effect thereto for such period as if such Investment, acquisition,
disposition, discontinued operation, merger or consolidation had occurred at
the beginning of the applicable four-quarter period.

 

For purposes of this definition, whenever pro
forma effect is to be given to any transaction, the pro forma calculations
shall be made in good faith by a responsible financial or accounting officer of
the Company. Any such pro forma calculation may include adjustments
appropriate, in the reasonable determination of the Company as set forth in an
Officers’ Certificate, to reflect operating expense reductions reasonably
expected to result from any acquisition or merger.

 

“Lien”
means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind in respect of such asset, whether or not
filed, recorded or otherwise perfected under applicable law (including any
conditional sale or other title retention agreement, any lease in the nature
thereof, any option or other agreement to sell or give a security interest in
and any filing of or agreement to give any financing statement under the
Uniform Commercial Code (or equivalent statutes) of any jurisdiction); provided
that in no event shall an operating lease be deemed to constitute a Lien. 

 

14

 

“LTIP”
means any long-term incentive or similar compensation plan maintained by the
Company or its Restricted Subsidiaries.

 

“Management Group”
means the group consisting of the directors, executive officers and other
personnel of the Company on the Issue Date.

 

“Moody’s”
means Moody’s Investors Service, Inc. 

 

“Net Available Cash”
from any Asset Sale means cash payments received therefrom (including any cash
payments received by way of deferred payment of principal pursuant to a note or
installment receivable or otherwise, but only as and when received, but
excluding any other consideration received in the form of assumption by the
acquiring Person of Indebtedness or other obligations relating to the property
that is the subject of such Asset Sale or received in any other non-cash form),
in each case net of:

 

(i) all legal, title and recording tax
expenses, commissions and other fees and expenses incurred, and all federal,
state, provincial, foreign and local taxes required to be accrued as a
liability under GAAP, as a consequence of such Asset Sale;

 

(ii) all payments made on any Indebtedness
that is secured by any property subject to such Asset Sale, in accordance with
the terms of any Lien upon or other security agreement of any kind with respect
to such property, or which must by its terms, or in order to obtain a necessary
consent to such Asset Sale, or by applicable law, be repaid out of the proceeds
from such Asset Sale;

 

(iii) all distributions and other payments
required to be made to minority interest holders in Subsidiaries or joint
ventures as a result of such Asset Sale; and

 

(iv) the deduction of appropriate amounts
provided by the seller as a reserve, in accordance with GAAP, against any liabilities
associated with the property disposed in such Asset Sale and retained by the
Company or any Restricted Subsidiary after such Asset Sale.

 

“Net Income”
means, with respect to any Person, the net income (loss) of such Person,
determined in accordance with GAAP and before any reduction in respect of
Preferred Stock dividends. 

 

“Net Proceeds”
means the aggregate cash proceeds received by the Company or any of its
Restricted Subsidiaries in respect of any Asset Sale (including, without
limitation, any cash received in respect of or upon the sale or other
disposition of any Designated Noncash Consideration received in any Asset Sale
and any cash payments received by way of deferred payment of principal pursuant
to a note or installment receivable or otherwise, but only as and when
received, but excluding the assumption by the acquiring person of Indebtedness
relating to the disposed assets or other considerations received in any other
noncash form), net of the direct costs relating to such Asset Sale and the sale
or disposition of such Designated Noncash Consideration (including, without
limitation, legal, accounting and investment banking fees, and brokerage and
sales commissions), and any relocation expenses Incurred as a result thereof,
taxes paid or payable as a result thereof (after taking into account any
available tax credits or deductions and any tax sharing arrangements related
thereto), amounts required to be applied to

 

15

 

the repayment
of principal, premium (if any) and interest on Indebtedness required (other
than pursuant to Section 4.06(b)(i)) to be paid as a result of such transaction
(including in order to obtain any required consent therefor), and any deduction
of appropriate amounts to be provided by the Company as a reserve in accordance
with GAAP against any liabilities associated with the asset disposed of in such
transaction and retained by the Company after such sale or other disposition
thereof, including, without limitation, pension and other post-employment
benefit liabilities and liabilities related to environmental matters or against
any indemnification obligations associated with such transaction.

 

“Notes”
means the Original Notes and any Additional Notes unless expressly provided otherwise.

 

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

 

“Obligations”
means any principal, interest, penalties, fees, indemnifications,
reimbursements (including, without limitation, reimbursement obligations with
respect to letters of credit and bankers’ acceptances), damages and other
liabilities payable under the documentation governing any Indebtedness; provided
that Obligations with respect to the Notes shall not include fees or indemnifications
in favor of the Trustee and other third parties other than the Holders of the
Notes. 

 

“Officer”
means the Chairman of the Board, the President, any Executive Vice President,
Senior Vice President or Vice President, the Treasurer or the Secretary of the
Company. 

 

“Officers’
Certificate” means a certificate signed on behalf of
the Company by two Officers of the Company, one of whom must be the principal
executive officer, the principal financial officer, the treasurer or the
principal accounting officer of the Company that meets the requirements set
forth in this Indenture. 

 

“Opinion of Counsel”
means a written opinion from legal counsel. 
The counsel may be an employee of or counsel to the Company.

 

“Option” means
the right given to the underwriters to purchase up to 865,940 additional IDSs,
representing 865,940 shares of the Class A Common Stock and $[            ] aggregate principal amount of
Notes for the purpose of covering over-allotments in connection with the sale
of IDSs pursuant to the underwriting agreement, dated as of [            ], 2004, among the Company, the
guarantors named therein and CIBC World Markets Corp., RBC Capital Markets
Corporation and UBS Securities LLC, as representatives of the underwriters
named therein (the “Underwriting Agreement”).

 

“Pari Passu
Indebtedness” means 

 

(i) with respect to the Company, the Notes
and any other Indebtedness of the Company, other than Senior Indebtedness,
Secured Indebtedness or Subordinated Indebtedness of the Company; and 

 

16

 

(ii) with respect to any Guarantor, its
Guarantee and any other Indebtedness of such Guarantor, other than Senior
Indebtedness,  Secured Indebtedness or
Subordinated Indebtedness of such Guarantor.

 

“Permitted Asset
Swap” means any one or more transactions in which the
Company or any Restricted Subsidiary exchanges assets for consideration
consisting of: 

 

(i) assets used or useful in a Similar
Business; and 

 

(ii) any cash or Cash Equivalents, provided
that such cash or Cash Equivalents shall be considered Net Proceeds from an
Asset Sale.

 

“Permitted Holders”
means Seaport Capital and the Management Group.

 

“Permitted
Investments” means: 

 

(i)  any Investment in the Company
or any Restricted Subsidiary; 

 

(ii)  any Investment in Cash
Equivalents or Investment Grade Securities; 

 

(iii)  any Investment by the
Company or any Restricted Subsidiary of the Company in a Person that is
primarily engaged in a Similar Business if as a result of such Investment (a)
such Person becomes a Restricted Subsidiary or (b) such Person, in one
transaction or a series of related transactions, is merged, consolidated or
amalgamated with or into, or transfers or conveys substantially all of its
assets to, or is liquidated into, the Company or a Restricted Subsidiary; 

 

(iv)  any Investment in securities
or other assets not constituting Cash Equivalents and received in connection
with an Asset Sale made pursuant to the provisions of Section 4.06 or any other
disposition of assets not constituting an Asset Sale; 

 

(v)  any Investment existing on the
Issue Date; 

 

(vi)  advances to employees not in
excess of $1.0 million outstanding at any one time in the aggregate; 

 

(vii)  any Investment acquired by
the Company or any of its Restricted Subsidiaries (a) in exchange for any other
Investment or accounts receivable held by the Company or any such Restricted
Subsidiary in connection with or as a result of a bankruptcy, workout,
reorganization or recapitalization of the Company of such other Investment or
accounts receivable or (b) as a result of a foreclosure by the Company 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; 

 

(viii)  Hedging Obligations
permitted under Section 4.03(j); 

 

(ix)  additional Investments having
an aggregate Fair Market Value, taken together with all other Investments made
pursuant to this clause (ix) that are at that time outstanding, not to exceed
the greater of 7.5% of Tangible Assets or $5.0 million at the time of such
Investment

 

17

 

(with the Fair
Market Value of each Investment being measured at the time made and without
giving effect to subsequent changes in value); 

 

(x)  loans and advances to
officers, directors and employees for business-related travel expenses, moving
expenses and other similar expenses, in each case Incurred in the ordinary
course of business, and account credits and payments to participants under the
LTIP or any successor or similar compensation plan; 

 

(xi)  Investments the payment for
which consists of Equity Interests of the Company (other than Disqualified
Stock); provided, however, that such Equity Interests shall not
increase the amount available for Restricted Payments under Section 4.04(c); 

 

(xii)  any transaction to the
extent it constitutes an Investment that is permitted by and made in accordance
with the provisions of Section 4.07(2) (except transactions specified in
clauses (ii), (iii), and (iv) of such paragraph); 

 

(xiii)  Investments consisting of
the licensing or contribution of intellectual property pursuant to joint
marketing arrangements with other Persons; 

 

(xiv)  Guarantees issued in
accordance with Section 4.03; 

 

(xv)  any Investment by Restricted
Subsidiaries in other Restricted Subsidiaries and Investments by Subsidiaries
that are not Restricted Subsidiaries in other Subsidiaries that are not
Restricted Subsidiaries; 

 

(xvi)  Investments consisting of
purchases and acquisitions of inventory, supplies, materials and equipment or
purchases of contract rights or licenses or leases of intellectual property, in
each case in the ordinary course of business; and

 

(xvii) loans to unaffiliated clients made in
connection with entering into, renegotiating, renewing or amending contracts to
provide products or services not to exceed $1.0 million in any fiscal year or
$3.0 million in aggregate amount at any time outstanding. 

 

“Permitted Junior
Securities” shall mean debt or equity securities of
the Company or any successor corporation issued pursuant to a plan of
reorganization or readjustment of the Company or such Guarantor that are
subordinated to the payment of all then-outstanding Senior Indebtedness of the
Guarantors at least to the same extent that the Notes are subordinated to the
payment of all Senior Indebtedness of the Guarantors on the Issue Date, so long
as (a) to the extent that any Senior Indebtedness of the Company outstanding on
the date of consummation of any such plan of reorganization or readjustment is
not paid in full in cash on such date, either (x) the holders of any such
Senior Indebtedness not so paid in full in cash have consented to the terms of
such plan of reorganization or readjustment or (y) such holders receive
securities which constitute Senior Indebtedness and which have been determined
by the relevant court to constitute satisfaction in full in cash of any Senior
Indebtedness not paid in full in cash, and (b) in the case of debt securities,
such debt securities: 

 

(1)           are
unsecured; 

 

18

 

(2)           have
no maturity, amortization, sinking fund, repayment or similar payment earlier
than one year after the final maturity of all Senior Indebtedness of the
Company then outstanding (as such Senior Indebtedness may be modified pursuant
to any such reorganization or readjustment); 

 

(3)           do
not require the cash payment of principal, interest or other cash amounts until
such time as all Senior Indebtedness of the Company then outstanding (as such
Senior Indebtedness may be modified pursuant to any such reorganization or
readjustment) has been paid in full in cash or cash equivalents acceptable to
holders of such Senior Indebtedness; 

 

(4)           shall
not be entitled to the benefits of covenants or defaults materially more
beneficial to the holders of such debt securities than those in effect with
respect to the Notes on the Issue Date (or the Senior Indebtedness, after
giving effect to such reorganization or readjustment); and 

 

(5)           to
the extent that the same are to be guaranteed, shall only be guaranteed by
subsidiaries of the Company that have guaranteed the Senior Indebtedness of the
Company (as such Senior Indebtedness may be modified pursuant to any such
reorganization or readjustment) and such guarantees shall be subordinated at
least to the same extent as the Note Guarantees are subordinated to the payment
of all Senior Indebtedness of the Subsidiary Guarantors.

 

“Permitted Liens”
means, with respect to any Person: 

 

(i)  pledges or deposits by such
Person under workmen’s compensation laws, unemployment insurance laws or
similar legislation, or good faith 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 to secure public or statutory obligations of
such Person or deposits of cash or United States government bonds to secure
surety or appeal bonds 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; 

 

(ii)  Liens imposed by law, such as
carriers’, warehousemen’s and mechanics’ Liens, in each case for sums not yet
due or being contested in good faith by appropriate proceedings or other Liens
arising out of judgments or awards against such Person with respect to which
such Person shall then be proceeding with an appeal or other proceedings for
review; 

 

(iii)  Liens for taxes, assessments
or other governmental charges not yet due or payable or subject to penalties
for nonpayment or which are being contested in good faith by appropriate
proceedings; 

 

(iv)  Liens in favor of issuers of
performance and surety bonds or bid bonds or completion guarantees or with
respect to other regulatory requirements or letters of credit issued pursuant
to the request of and for the account of such Person in the ordinary course of
its business; 

 

19

 

(v)  minor survey exceptions, minor
encumbrances, easements or reservations of, or rights of others for, licenses,
rights-of-way, sewers, electric lines, telegraph and telephone lines and other
similar purposes, or zoning or other restrictions as to the use of real
properties or Liens incidental to the conduct of the business of such Person or
to the ownership of its properties which were not Incurred in connection with
Indebtedness and which do not in the aggregate materially adversely affect the
value of said properties or materially impair their use in the operation of the
business of such Person; 

 

(vi)  Liens securing Indebtedness
permitted to be incurred pursuant to Section 4.03(d); 

 

(vii)  Liens to secure Indebtedness
permitted pursuant to Section 4.03(a); 

 

(viii)  Liens existing on the Issue
Date; 

 

(ix)  Liens on property or shares
of stock of a Person at the time such Person becomes a Subsidiary; provided,
however, such Liens are not created or Incurred in connection with, or
in contemplation of, such other Person becoming such a Subsidiary; provided
further, however, that such Liens may not extend to any other property
owned by the Company or any Restricted Subsidiary; 

 

(x)  Liens on property at the time
the Company or a Restricted Subsidiary acquired the property, including any
acquisition by means of a merger or consolidation with or into the Company or
any Restricted Subsidiary; provided, however, that such Liens are
not created or Incurred in connection with, or in contemplation of, such
acquisition; provided  further, however, that the Liens may not
extend to any other property owned by the Company or any Restricted Subsidiary;

 

(xi)  Liens securing Indebtedness
or other obligations of a Restricted Subsidiary owing to the Company or another
Restricted Subsidiary permitted to be incurred in accordance with Section 4.03;

 

(xii)  Liens securing Hedging
Obligations so long as the related Indebtedness is, and is permitted to be
under this Indenture secured by a Lien on the same property securing such
Hedging Obligations; 

 

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

 

(xiv)  leases and subleases of real
property which do not materially interfere with the ordinary conduct of the
business of the Company or any of its Restricted Subsidiaries; 

 

(xv)  Liens arising from Uniform
Commercial Code financing statement filings regarding operating leases entered
into by the Company and its Restricted Subsidiaries in the ordinary course of
business; 

 

(xvi)  Liens in favor of the
Company; 

 

20

 

(xvii)  Liens on equipment of the
Company granted in the ordinary course of business to the Company’s client at
which such equipment is located; 

 

(xviii)  Liens encumbering deposits
made in the ordinary course of business to secure obligations arising from statutory,
regulatory, contractual or warranty requirements, including rights of offset
and set-off; 

 

(xix)  Liens on the Equity
Interests of Unrestricted Subsidiaries securing obligations of Unrestricted
Subsidiaries not otherwise prohibited by this Indenture; 

 

(xx)  Liens to secure Indebtedness
permitted by Section 4.03(l); and

 

(xxi)  Liens to secure any
refinancing, refunding, extension, renewal or replacement (or successive
refinancings, refundings, extensions, renewals or replacements) as a whole, or
in part, of any Indebtedness secured by any Lien referred to in the foregoing
clauses (vi), (vii), (viii), (ix), (x), (xi), (xii) and (xx); provided, however,
that (y) such new Lien shall be limited to all or part of the same property
that secured the original Lien (plus improvements on such property) and (z) the
Indebtedness secured by such Lien at such time is not increased to any amount
greater than the sum of (A) the outstanding principal amount or, if greater,
committed amount of the Indebtedness specified under clauses (vi), (vii),
(viii), (ix), (x), (xi), (xii) or (xx) at the time the original Lien became a
Permitted Lien under this Indenture and (B) an amount necessary to pay any fees
and expenses, including premiums, related to such refinancing, refunding,
extension, renewal or replacement. 

 

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

 

“Preferred Stock”
means any Equity Interest with preferential right of payment of dividends or
upon liquidation, dissolution, or winding up. 

 

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

 

“Representative”
means the trustee, agent or representative (if any) for an issue of Senior
Indebtedness. 

 

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

 

“Restricted
Subsidiary” means any Subsidiary of the Company other
than an Unrestricted Subsidiary. 

 

“Sale/Leaseback
Transaction” means an arrangement relating to property
now owned or hereafter acquired by the Company or a Restricted Subsidiary
whereby the Company or a Restricted Subsidiary transfers such property to a
Person and the Company or such Restricted Subsidiary leases it from such
Person, other than leases between the Company and a Wholly Owned Subsidiary or
between Wholly Owned Subsidiaries. 

 

21

 

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

 

“SEC”
means the Securities and Exchange Commission.

 

“Seaport Capital”
means Seaport Capital Partners II, L.P. and its affiliates.

 

“Secured
Indebtedness” means any Indebtedness of the Company or
any Subsidiary secured by a Lien.

 

“Securities Offering”
means any public or private sale of IDSs or common stock or Preferred Stock of
the Company (other than Disqualified Stock), other than public offerings with
respect to IDSs or the Company’s Common Stock registered on Form S-8.

 

“Senior Credit
Documents” means the collective reference to the
Credit Agreement, the notes issued pursuant thereto and the guarantees thereof,
and the collateral documents relating thereto. 

 

“Senior Indebtedness”
with respect to the Company or any Guarantor means the Senior Lender
Indebtedness and all other Indebtedness of the Company or such Guarantor,
including principal and interest thereon (including interest accruing on or
after the filing of any petition in bankruptcy or for reorganization relating
to the Company or any Subsidiary of the Company at a rate specified in the
applicable Senior Indebtedness, whether or not a claim for post-filing interest
is allowed in such proceeding) and other amounts (including make-whole
payments, fees, expenses, reimbursement obligations under letters of credit and
indemnities) owing in respect thereof, whether outstanding on the Issue Date or
thereafter Incurred, unless in the instrument creating or evidencing the same
or pursuant to which the same is outstanding it is provided that such
obligations are not superior, or are subordinated, in right of payment to the
Notes or such Guarantor’s Guarantee, as applicable; provided, however,
that Senior Indebtedness shall not include, as applicable:

 

(i) any obligation of the Company to any
Subsidiary of the Company or of such Guarantor to the Company or any other
Subsidiary of the Company;

 

(ii) any liability for federal, state, local
or other taxes owed or owing by the Company or such Guarantor;

 

(iii) any accounts payable or other liability
to trade creditors arising in the ordinary course of business (including
guarantees thereof or instruments evidencing such liabilities);

 

(iv) any Indebtedness or obligation of the
Company or such Guarantor which is Pari Passu Indebtedness;

 

(v) any obligations with respect to any
Capital Stock; and

 

(vi) any Indebtedness Incurred in violation
of this Indenture, provided that as to any such Indebtedness, no such violation
shall be deemed to exist for purposes of this clause if the holder(s) of such
Indebtedness or their representative shall have received an Officers’
Certificate (or representation and warranty) from the Company to the effect
that the incurrence of such

 

22

 

Indebtedness
does not (or in the case of revolving credit Indebtedness, that the incurrence
of the entire committed amount thereof at the date on which the initial
borrowing thereunder is made would not) violate this Indenture.

 

“Senior Lender
Indebtedness” means any and all amounts payable under
or in respect of the Credit Agreement, the other Senior Credit Documents and
any Refinancing Indebtedness with respect thereto, as amended from time to
time, including principal, premium (if any), interest (including interest
accruing on or after the filing of any petition in bankruptcy or for
reorganization relating to the Company or any Guarantor, as applicable, whether
or not a claim for post-filing interest is allowed in such proceedings), fees,
charges, expenses, reimbursement obligations, guarantees and all other amounts
payable thereunder or in respect thereof.

 

“Significant
Subsidiary” means any Restricted Subsidiary that would
be a “Significant Subsidiary” of the Company within the meaning of Rule 1-02
under Regulation S-X promulgated by the SEC. 

 

“Similar Business”
means a business, the majority of whose revenues are derived from

 

 (i)
transmitting, or providing services relating to the transmission of, voice,
video or data through owned or leased wireline, wireless, digital subscriber
line or cable television facilities,

 

 (ii)
the sale or provision of phone cards, ‘‘800’’ services, voice mail, switching,
enhanced communications services, telephone directory or telephone number
information services or communications network intelligence, or

 

 (iii)
any business ancillary or directly related to the businesses referred to in
clause (i) or (ii); 

 

provided that the
determination of what constitutes a Similar Business shall be made in good
faith by the Board of Directors.

 

“Stated Maturity”
means, with respect to any security, the date specified in such security as the
fixed date on which the final payment of principal of such security is due and
payable, including pursuant to any mandatory redemption provision (but
excluding any provision providing for the repurchase of such security at the
option of the holder thereof upon the happening of any contingency beyond the
control of the issuer unless such contingency has occurred). 

 

“Subordinated
Indebtedness” means, any Indebtedness of the Company
or any Guarantor, the instrument under which such Indebtedness is incurred
expressly provides that it is subordinated in right of payment to the Notes or
any Guarantee.

 

“Subsidiary”
means, with respect to any Person: 

 

(i)  any corporation, association
or other business entity (other than a partnership, joint venture or limited
liability company) of which more than 50% of the total voting power of shares
of Capital Stock entitled (without regard to the occurrence of any contingency)
to vote in the election of directors, managers or trustees thereof is at the
time of determination owned or

 

23

 

controlled,
directly or indirectly, by such Person or one or more of the other Subsidiaries
of that Person or a combination thereof; and 

 

(ii)  any partnership, joint
venture or limited liability company of which (x) more than 50% of the capital
accounts, distribution rights, total equity and voting interests or general and
limited partnership interests, as applicable, are owned or controlled, directly
or indirectly, by such Person or one or more of the other Subsidiaries of that
Person or a combination thereof, whether in the form of membership, general,
special or limited partnership interests or otherwise and (y) such Person or
any Wholly Owned Restricted Subsidiary of such Person is a controlling general
partner or otherwise controls such entity. 

 

“TIA”
and “Trust Indenture Act” means
the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the
Issue Date, except as provided in Section 9.04.

 

“Tangible Assets”
means the total consolidated assets of the Company and its Restricted
Subsidiaries (less applicable reserves and other properly deductible items)
after deducting therefrom all goodwill, trade names, trademarks, patents,
purchased technology, unamortized debt discount and other like intangible
assets, as shown on the most recent balance sheet of the Company.

 

“Tax event” means
the receipt by the Company of an opinion of counsel, rendered by a nationally
recognized law firm experienced in such matters, to the effect that, within 90
days of receipt of the opinion, the Company is not or would not be, permitted
to deduct all or a substantial portion of the interest payable on the Notes for
U.S. federal income tax purposes as a result of 

 

(i) any amendment to, change in or announced
proposed change in the laws (or any regulations thereunder) of the United
States or any political subdivision or taxing authority thereof or therein, or 

 

(ii) any official administrative
pronouncement (including, without limitation, Notice, Announcement or Revenue
Ruling) or judicial decision interpreting or applying such laws or regulations,
in each case, which is announced on or after the date on which the IDSs were
initially issued and sold.

 

“Transactions “ means
the transactions occurring in connection with the consummation of  the sale of IDSs pursuant to the
Underwriting Agreement (the “Offering”), including without limitation repayment
of existing indebtedness, the incurrence of Indebtedness under the Notes, the
Credit Agreement, distribution of proceeds and the Company’s concurrent
acquisition of Mid-Missouri Holding Corp.

 

“Trust Officer”
means 

 

(i) any officer within the corporate trust
department of the Trustee, including any vice president, assistant vice
president, assistant secretary, assistant treasurer, trust officer or any other
officer of the Trustee who customarily performs functions similar to those
performed by the Persons who at the time shall be such officers, respectively,
or to whom any corporate trust

 

24

 

matter is referred
because of such person’s knowledge of and familiarity with the particular
subject, and 

 

(ii) who shall have direct responsibility for
the administration of this Indenture. 

 

“Trustee”
means the party named as such in this Indenture until a successor replaces it
and, thereafter, means the successor and if at any time there is more than one
such party, “Trustee” as used with respect to the securities of any series
shall mean the trustee with respect to securities of that series. 

 

“Unrestricted Subsidiary”
means: 

 

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

 

(ii)  any Subsidiary of an
Unrestricted Subsidiary. 

 

The Board of Directors may designate any
Subsidiary of the Company (including any newly acquired or newly formed
Subsidiary of the Company) to be an Unrestricted Subsidiary unless such
Subsidiary or any of its Subsidiaries owns any Equity Interests or Indebtedness
of, or owns or holds any Lien on any property of, the Company or any other
Subsidiary of the Company that is not a Subsidiary of the Subsidiary to be so
designated; provided, however, that the Subsidiary to be so
designated and its Subsidiaries do not at the time of designation have and do
not thereafter Incur any Indebtedness pursuant to which the lender has recourse
to any of the assets of the Company or any of its Restricted Subsidiaries; provided
further, however, that either (a) the Subsidiary to be so designated has
total consolidated assets of $1,000 or less or (b) if such Subsidiary has
consolidated assets greater than $1,000, then such designation would be
permitted under Section 4.04. 

 

The Board of Directors may designate any
Unrestricted Subsidiary to be a Restricted Subsidiary; provided, however,
that immediately after giving effect to such designation (x)(1) the Company
could Incur $1.00 of additional Indebtedness pursuant to the Leverage Ratio
test set forth in Section 4.03 or (2) the Leverage Ratio for the Company and
its Restricted Subsidiaries would be less than such ratio for the Company and
its Restricted Subsidiaries immediately prior to such designation, in each case
on a pro forma basis taking into account such designation, and (y) no Default
shall have occurred and be continuing. Any such designation by the Board of
Directors shall be evidenced to the Trustee by promptly filing with the Trustee
a copy of the resolution of the Board of Directors giving effect to such
designation and an Officers’ Certificate certifying that such designation
complied with the foregoing provisions. 

 

“U.S. Government
Obligations” means direct obligations (or certificates
representing an ownership interest in such obligations) of the United States of
America (including any agency or instrumentality thereof) for the payment of
which the full faith and credit of the United States of America is pledged and
which are not callable or redeemable at the Company’s option. 

 

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

 

25

 

“Weighted Average
Life to Maturity” means, when applied to any Indebtedness
or Disqualified Stock, as the case may be, at any date, the quotient obtained
by dividing (i) the sum of the products of the number of years from the date of
determination to the date of each successive scheduled principal payment of
such Indebtedness or redemption or similar payment with respect to such
Disqualified Stock multiplied by the amount of such payment, by (ii) the sum of
all such payments. 

 

“Wholly Owned
Restricted Subsidiary” is any Wholly Owned Subsidiary
that is a Restricted Subsidiary. 

 

“Wholly Owned
Subsidiary” of any Person means a Subsidiary of such
Person 100% of the outstanding Capital Stock or other ownership interests of
which (other than directors’ qualifying shares) shall at the time be owned by
such Person and/or by one or more Wholly Owned Subsidiaries of such Person.

 

SECTION 1.02. Other Definitions.

 

	
  Term

  	
   

  	
  Defined in

  Section

  
	
   

  	
   

  	
   

  
	
  “Additional Notes”

  	
   

  	
  2.01

  
	
  “Affiliate Transaction”

  	
   

  	
  4.07

  
	
  “Agent Members”

  	
   

  	
  2.02

  
	
  “Asset Sale Offer”

  	
   

  	
  4.06

  
	
  “Automatic Exchange”

  	
   

  	
  4.14

  
	
  “Bankruptcy Law”

  	
   

  	
  6.01

  
	
  “Blockage Notice”

  	
   

  	
  10.03

  
	
  “Calculation Date”

  	
   

  	
  1.01 in “Leverage Coverage Ratio”

  
	
  “Change of Control Offer”

  	
   

  	
  4.09

  
	
  “covenant defeasance option”

  	
   

  	
  8.02

  
	
  “Custodian”

  	
   

  	
  6.01

  
	
  “Deferred Interest”

  	
   

  	
  4.01

  
	
  “Event of Default”

  	
   

  	
  6.01

  
	
  “Excess Proceeds”

  	
   

  	
  4.06

  
	
  “Global Note”

  	
   

  	
  2.02(a)

  
	
  “Guarantee Blockage Notice”

  	
   

  	
  12.03

  
	
  “Guarantee Payment Blockage Period”

  	
   

  	
  12.03

  
	
  “Guaranteed Obligations”

  	
   

  	
  11.01

  
	
  “Initial Lien”

  	
   

  	
  4.08

  
	
  “judgment default provision”

  	
   

  	
  6.01

  
	
  “legal defeasance option”

  	
   

  	
  8.02

  
	
  “Legal Holiday”

  	
   

  	
  13.08

  
	
  “Notice of Default”

  	
   

  	
  6.01

  
	
  “Offer Period”

  	
   

  	
  4.06

  
	
  “Offering “

  	
   

  	
  1.01 in “Transactions”

  
	
  “Original Notes”

  	
   

  	
  Preamble

  
	
  “pay its Guarantee”

  	
   

  	
  12.03

  

 

26

 

	
  “pay the Notes”

  	
   

  	
  10.03

  
	
  “Paying Agent”

  	
   

  	
  2.04

  
	
  “Payment Blockage Period”

  	
   

  	
  10.03

  
	
  “Physical Notes”

  	
   

  	
  2.02

  
	
  “Redemption Date”

  	
   

  	
  3.07

  
	
  “Refinancing Indebtedness”

  	
   

  	
  4.03

  
	
  “Refunding Capital Stock”

  	
   

  	
  4.04

  
	
  “Registrar”

  	
   

  	
  2.04

  
	
  “Restricted Payments”

  	
   

  	
  4.04

  
	
  “Retired Capital Stock”

  	
   

  	
  4.04

  
	
  “SEC Reports”

  	
   

  	
  4.02

  
	
  “Successor Guarantor”

  	
   

  	
  5.01

  
	
  “Successor Company”

  	
   

  	
  5.01

  
	
  “Trustee Reports”

  	
   

  	
  4.02

  

 

SECTION 1.03. Incorporation by Reference of Trust
Indenture Act. 
This Indenture is subject to the mandatory provisions of the TIA, which
are incorporated by reference in and made a part of this Indenture. The
following TIA terms have the following meanings:

 

“Commission” means the SEC.

 

“indenture securities” means the Notes and
the Guarantees.

 

“indenture security holder” means a Holder.

 

“indenture to be qualified” means this
Indenture.

 

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

 

“obligor” on the indenture securities means
the Company, the Guarantors and any other obligor on the indenture securities.

 

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

 

If any provision hereof limits, qualifies or
conflicts with a provision of the TIA that is required under the TIA to be a
part of and govern this Indenture, the latter provision shall control.  If any provision of this Indenture modifies
or excludes any provision of the TIA that may be so modified or excluded, the
latter provision shall be deemed (i) to apply to this Indenture as so modified
or (ii) to be excluded, as the case may be.

 

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

 

(1)   all
“dollars” are in U.S. dollars, unless otherwise stated;

 

(2)   a
term defined in this Indenture has the meaning assigned to it in this
Indenture;

 

27

 

(3)   an
accounting term not otherwise defined herein has the meaning assigned to it in
accordance with GAAP;

 

(4)   “or”
is not exclusive;

 

(5)   “including”
means including without limitation;

 

(6)   words
in the singular include the plural and words in the plural include the
singular;

 

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

 

(8)   any
reference to a Section or Article refers to such Section or Article of this
Indenture.

 

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

 

(10) 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 Company thereof dated such date prepared in accordance with GAAP;

 

(11) the
principal amount of any Preferred Stock shall be (i) the maximum liquidation
value of such Preferred Stock or (ii) the maximum mandatory redemption or
mandatory repurchase price with respect to such Preferred Stock, whichever is
greater.

 

ARTICLE 2

 

THE
NOTES

 

SECTION 2.01. The Notes; Amount Unlimited. 
There is hereby established a series of Notes to be issued under this
Indenture, which are designated as the Company’s “[       ]% Secured Notes due 2019.” 

 

The aggregate principal amount of Notes which
may be authenticated and delivered under this Indenture is unlimited.  The Original Notes shall be issued in an
aggregate principal amount of $73,615,680
(or $80,127,549,    if the Option is exercised within 30 days of the Issue Date).  Any additional          % senior subordinated notes of the Company issued after
the date of this Indenture (“Additional Notes”) shall be part of the same
series as the Original Notes, and shall have substantially identical terms and
conditions as the Original Notes and will be guaranteed by the Guarantors on
the same basis as the Original Notes.

 

28

 

With respect to any Additional Notes issued
after the Issue Date, they shall be (i) established in or pursuant to a
resolution of the Board of Directors and (ii) (A) set forth or determined in
the manner provided in an Officers’ Certificate or (B) established in one or
more supplemental indentures hereto, prior to the issuance of such Additional
Notes.

 

Additional Notes shall be issued with
identical terms as the Original Notes set forth in this Indenture except for
any variation in issuance date and, upon the issuance of Additional Notes with
original issue discount (and any issuance of Additional Notes thereafter),
CUSIP number. If any of the terms of any Additional Notes are established by
action taken pursuant to a resolution of the Board of Directors, a copy of an
appropriate record of such action shall be certified by the Secretary or any
Assistant Secretary of the Company and delivered to the Trustee at or prior to
the delivery of the Officers’ Certificate or the indenture supplemental hereto
setting forth the terms of the Additional Notes.

 

The Company shall only be entitled to issue
Additional Notes in compliance with Section 4.14.

 

As long as any Notes are outstanding, any
Holder of Notes and shares of Class A common stock may, at any time and from
time to time, combine these securities to form IDSs unless the IDSs have
previously been automatically separated as a result of the continuance of a
payment default on the Notes for 90 days, or the redemption or maturity of any
Notes.

 

SECTION 2.02. Form and Dating.  (a)  General.  The Notes and the Trustee’s certificate of
authentication shall be substantially in the form of Exhibit A hereto,
which is hereby incorporated in and expressly made a part of this Indenture; provided
that any Additional Notes may have such applicable revisions to the form set
forth in Exhibit A hereto as are necessary to reflect the terms of such
Additional Notes established pursuant to Section 2.01.  In addition, the Notes may have notations,
legends or endorsements required by law, stock exchange rule, agreements to
which the Company or any Guarantor is subject, if any, or usage (provided that
any such notation, legend or endorsement is in a form acceptable to the
Company).  Each Note shall be dated the
date of its authentication.  The Notes
shall be issuable only in registered form without interest coupons.

 

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

 

(b)  Global
Notes.  Notes offered and sold
pursuant to this Indenture shall, unless (in the case of Additional Notes) the
Company otherwise notifies the Trustee in writing, be issued in the form of one
or more permanent  global Notes in
definitive, fully registered form in substantially the form set forth in Exhibit
A (each, a “Global Note”).  The
aggregate principal amount of a Global Note may from time to time be increased
or decreased by adjustments made on the records of the Registrar or the
Depository, as hereinafter provided.

 

29

 

(c)  Book-Entry
Provisions.  This Section 2.02(c)
shall apply only to a Global Note deposited with or on behalf of the
Depository.

 

The Company shall execute and the Trustee
shall, in accordance with this Section 2.02(c) and pursuant to a written order
of the Company signed by one or more Officers, authenticate and deliver
initially one or more Global Notes that (a) shall be registered in the name of
the Depository for such Global Note or Global Notes or the nominee of such
Depository and (b) shall be delivered by the Trustee to such Depository or
pursuant to such Depository’s instructions or held by the Trustee as Notes
Custodian.

 

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

 

(d)  Global
Note Legend.  Each Global Note shall
bear the following legend or such other legend as may be required by the
Depository from time to time:

 

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

 

TRANSFERS OF THIS GLOBAL NOTE SHALL BE
LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC 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 THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

 

THE COMPANY MAY SUBSEQUENTLY ISSUE NOTES THAT
ARE IDENTICAL IN ALL MATERIAL RESPECTS TO THIS NOTE BUT HAVE ORIGINAL ISSUE
DISCOUNT.  IN SUCH CASE, THE HOLDER OF
THIS NOTE WILL EXCHANGE A PORTION OF HIS NOTES FOR SUCH NEWLY ISSUED NOTES WITH
ORIGINAL ISSUE

 

30

 

DISCOUNT.  THE AGGREGATE PRINCIPAL AMOUNT OF NOTES
OWNED BY SUCH HOLDER, HOWEVER, WILL NOT CHANGE AS A RESULT OF SUCH
EXCHANGE.  WITH RESPECT TO SUCH NEWLY
ISSUED NOTES WITH ORIGINAL DISCOUNT, A HOLDER MAY OBTAIN THE AMOUNT OF ORIGINAL
ISSUE DISCOUNT, THE ISSUE DATE, THE ISSUE PRICE AND THE YIELD TO MATURITY BY
SUBMITTING A WRITTEN REQUEST TO THE COMPANY.

 

In addition, the Notes may have notations,
legends or endorsements required by law, stock exchange rule, agreements to
which the Company or any Guarantor is subject, if any, or usage (provided
that any such notation, legend or endorsement is in a form acceptable to the
Company).

 

(e)  Physical
Notes; Legend.  Except as provided
in Section 2.07 or 2.08, owners of beneficial interests in Global Notes will
not be entitled to receive physical delivery of certificated Notes (“Physical
Notes”). Each Physical Note shall bear the following legend:

 

THE COMPANY MAY SUBSEQUENTLY ISSUE NOTES THAT
ARE IDENTICAL IN ALL MATERIAL RESPECTS TO THIS NOTE BUT HAVE ORIGINAL ISSUE
DISCOUNT.  IN SUCH CASE, THE HOLDER OF
THIS NOTE WILL EXCHANGE A PORTION OF HIS NOTES FOR SUCH NEWLY ISSUED NOTES WITH
ORIGINAL ISSUE DISCOUNT.  THE AGGREGATE
PRINCIPAL AMOUNT OF NOTES OWNED BY SUCH HOLDER, HOWEVER, WILL NOT CHANGE AS A
RESULT OF SUCH EXCHANGE.  WITH RESPECT
TO SUCH NEWLY ISSUED NOTES WITH ORIGINAL DISCOUNT, A HOLDER MAY OBTAIN THE
AMOUNT OF ORIGINAL ISSUE DISCOUNT, THE ISSUE DATE, THE ISSUE PRICE AND THE
YIELD TO MATURITY BY SUBMITTING A WRITTEN REQUEST TO THE COMPANY.

 

In addition, the Notes may have notations,
legends or endorsements required by law, stock exchange rule, agreements to
which the Company or any Guarantor is subject, if any, or usage (provided
that any such notation, legend or endorsement is in a form acceptable to the
Company).

 

SECTION 2.03. Execution and Authentication.  One or more Officers shall sign the Notes
for the Company by manual or facsimile signature.  If an Officer whose signature is on a Note no longer holds that
office at the time the Trustee authenticates the Note, the Note shall be valid
nevertheless.

 

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.  All Notes shall be dated the date of their
authentication.

 

The Trustee shall authenticate and make
available for delivery upon a written order of the Company signed by one
Officer, (1) Original Notes for original issue on the date hereof in an
aggregate principal amount of up to $73,615,680 (or $80,127,549, if the Option
is exercised within 30 days of the Issue Date), and (2) subject to the terms of
this Indenture, Additional Notes in an unlimited aggregate principal
amount.  Such order shall specify the
amount of Notes to be

 

31

 

authenticated,
the date on which the original issue of Notes is to be authenticated and
whether the Notes are to be Original Notes or Additional Notes.

 

The Trustee may appoint an authenticating
agent reasonably acceptable to the Company to authenticate the Notes.  Any such appointment shall be evidenced by
an instrument signed by a Trust Officer, a copy of which shall be furnished to
the Company.  Unless limited by the
terms of such 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 any Registrar, Paying Agent or
agent for service of notices and demands.

 

SECTION 2.04. Registrar and Paying Agent.  The Company shall maintain an office or
agency where Notes may be presented for registration of transfer or for
exchange (the “Registrar”) and an office or agency where Notes may be presented
for payment (the “Paying Agent”).  The
Registrar shall keep a register of the Notes and of their transfer and
exchange.  The Company may appoint one
or more co-registrars and one or more additional paying agents.  The term “Paying Agent” includes any
additional paying agent, and the term “Registrar” includes any
co-registrars.  The Company initially
appoints the Trustee as (i) Registrar and Paying Agent in connection with the
Notes and (ii) the Notes Custodian with respect to the Global Notes.

 

The Company shall notify the Trustee of the
name and address of any such agent.  If
the Company fails to maintain a Registrar or Paying Agent, the Trustee shall
act as such and shall be entitled to appropriate compensation therefor pursuant
to Section 7.07.  The Company or any of
its Subsidiaries may act as Paying Agent or Registrar.

 

The Company may remove any Registrar or
Paying Agent upon written notice to such Registrar or Paying Agent and to the
Trustee; provided, however, that no such removal shall become
effective until (1) acceptance of an appointment by a successor agent as
evidenced by an appropriate agreement entered into by the Company and such
successor Registrar or Paying Agent, as the case may be, and delivered to the
Trustee or (2) notification to the Trustee that the Trustee shall serve as
Registrar or Paying Agent until the appointment of a successor in accordance
with clause (1) above.  The Registrar or
Paying Agent may resign at any time upon written notice; provided, however,
that the Trustee may resign as Paying Agent or Registrar only if the Trustee
also resigns as Trustee in accordance with Section 7.08.

 

SECTION 2.05. Paying Agent To Hold Money in Trust.  On or prior to each due date of the
principal and interest on any Note, the Company shall deposit with the Paying
Agent (or if the Company or a Subsidiary is acting as Paying Agent, segregate
and hold in trust for the benefit of the Persons entitled thereto) a sum (in
U.S. dollars only) sufficient to pay such principal and interest when due.  The Company shall require each Paying Agent
(other than the Trustee and except as set forth in the next sentence) to agree
in writing that the Paying Agent shall hold in trust for the benefit of Holders
or the Trustee all money held by the Paying Agent for the payment of principal
of or interest on the Notes and shall notify the Trustee of any default by the
Company in making any such payment.  If
the Company or a Subsidiary of the Company acts as Paying Agent, it shall
segregate the money held by it as Paying Agent and hold it as a separate trust
fund.  The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee and to
account for any funds disbursed by the Paying Agent.  Upon

 

32

 

complying with this Section, the Paying Agent shall have no further
liability for the money delivered to the Trustee.  Upon any bankruptcy or reorganization proceedings relating to the
Company, the Trustee shall serve as Paying Agent for the Notes.

 

SECTION 2.06. Holders 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 Company shall furnish, or cause the Registrar
to furnish, to the Trustee, in writing at least seven Business Days before each
interest payment date and at such other times as the Trustee may request in
writing, a list in such form and as of such date as the Trustee may reasonably
require of the names and addresses of Holders.

 

SECTION 2.07. Transfer and Exchange.  The Notes shall be issued in registered form
and shall be transferable only upon the surrender of a Note for registration of
transfer and in compliance with this Section 2.07.  When a Note is presented to the Registrar
with a request to register a transfer, the Registrar shall register the
transfer as requested if the requirements of Section 8-401(a)(1) of the Uniform
Commercial Code are met.  When Notes are
presented to the Registrar with a request to exchange them for an equal
principal amount of Notes of other denominations, the Registrar shall make the
exchange as requested if the same requirements are met.  To permit registration of transfers and exchanges,
the Company shall execute and the Trustee shall authenticate Notes upon the
Company’s order or at the Registrar’s request. 
The Company shall not be required to make and the Registrar need not
register transfers or exchanges of Notes (i) selected for redemption (except,
in the case of a Note to be redeemed in part, the portion of the Note not to be
redeemed), (ii) during a period beginning at the opening of business 15 days
prior to a selection of Notes to be redeemed and ending on the relevant
Redemption Date,  (iii) tendered in a
Change of Control Offer or Asset Sale Offer or (iv) during a period beginning
on the opening of business 15 days before a record date for the payment of
interest and ending on the applicable succeeding interest payment date.

 

(a)  Transfer and Exchange of Physical Notes.  When Physical Notes are presented to the
Registrar with a request to register the transfer of such Physical Notes or to
exchange such Physical Notes for an equal principal amount of Physical Notes of
other authorized denominations, the Registrar shall register the transfer or
make the exchange as requested if its reasonable requirements for such
transaction are met; provided, however, that the Physical Notes surrendered for
transfer or exchange:

 

(i) shall
be duly endorsed or accompanied by a written instrument of transfer in form
reasonably satisfactory to the Company and the Registrar, duly executed by the
Holder thereof or such Holder’s attorney duly authorized in writing; and

 

(ii)   are
accompanied by the following additional information and documents, as
applicable:

 

(A)   if
such Physical Notes are being delivered to the Registrar by a Holder for
registration in the name of such Holder, without transfer, a certification from
such Holder to that effect (in the form set forth on the reverse side of the
Note); or

 

33

 

(B)   if
such Physical Notes are being transferred to the Company, a certification to
that effect (in the form set forth on the reverse side of the Note). 

 

(b)  Restrictions on Transfer of a Physical
Note for a Beneficial Interest in a Global Note. Other than pursuant to an
Automatic Exchange in compliance with Section 4.14, a Physical Note may not be
exchanged for a beneficial interest in a Global Note except upon satisfaction
of the requirements set forth below. Upon receipt by the Trustee of a Physical
Note, duly endorsed or accompanied by a written instrument of transfer in form
reasonably satisfactory to the Company and the Registrar, together with written
instructions directing the Trustee to make, or to direct the Notes Custodian to
make, an adjustment on its books and records with respect to such Global Note
to reflect an increase in the aggregate principal amount of the Notes
represented by the Global Note, such instructions to contain information
regarding the Depository account to be credited with such increase, then the
Trustee shall cancel such Physical Note and cause, or direct the Notes
Custodian to cause, in accordance with the standing instructions and procedures
existing between the Depository and the Notes Custodian, the aggregate
principal amount of Notes represented by the Global Note to be increased by the
aggregate principal amount of the Physical Note to be exchanged and shall
credit or cause to be credited to the account of the Person specified in such
instructions a beneficial interest in the Global Note equal to the principal
amount of the Physical Note so canceled. 
If no Global Notes are then outstanding and the Global Note has not been
previously exchanged for Physical Notes pursuant to Section 2.08, the Company
shall issue and the Trustee shall authenticate, upon written order of one or
more officers of the Company, a new Global Note in the appropriate principal
amount.

 

(c)  Transfer and Exchange of Global Notes.  

 

(i)  Any Holder of a Global Note shall, by
acceptance of such Global Note, agree that transfers of beneficial interest in
such Global Note may be effected only through a book-entry system maintained by
(i) the Holder of such Global Note (or
its agent) or (ii) any Holder of a beneficial interest in such Global
Note, and that ownership of a beneficial interest in such Global Note shall be
required to be reflected in a book entry.

 

(ii)  The transfer and exchange of Global Notes or
beneficial interests therein shall be effected through the Depository, in
accordance with this Indenture (including applicable restrictions on transfer
set forth herein, if any) and the procedures of the Depository therefor. A
transferor of a beneficial interest in a Global Note shall deliver a written
order given in accordance with the Depository’s procedures containing
information regarding the participant account of the Depository to be credited
with a beneficial interest in such Global Note or another Global Note and such
account shall be credited in accordance with such order with a beneficial
interest in the applicable Global Note and the account of the Person making the
transfer shall be debited by an amount equal to the beneficial interest in the
Global Note being transferred.

 

(iii)  Notwithstanding
any other provisions of this Article 2 (other than the provisions set forth in
Section 2.08), 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

 

34

 

or any such nominee to a successor Depository or a nominee of such
successor Depository.

 

(d)  Cancellation or Adjustment of Global
Notes.  At such time as all
beneficial interests in a Global Note have either been exchanged for Physical
Notes (other than pursuant to an Automatic Exchange in compliance with Section
4.14), transferred, redeemed, repurchased or canceled, such Global Note shall
be returned by the Depository to the Trustee for cancellation or retained and
canceled by the Trustee. At any time prior to such cancellation, if any
beneficial interest in a Global Note is exchanged for Physical Notes (other
than pursuant to an Automatic Exchange in compliance with Section 4.14),
transferred in exchange for an interest in another Global Note, redeemed,
repurchased or canceled, the principal amount of Notes represented by such
Global Note shall be reduced and an adjustment shall be made on the books and
records of the Trustee (if it is then the Notes Custodian for such Global Note)
with respect to such Global Note, by the Trustee or the Notes Custodian, to
reflect such reduction.

 

(e)  Obligations with Respect to Transfers and
Exchanges of Notes.  (i)  To permit registrations of transfers and
exchanges, the Company shall execute and the Trustee shall authenticate,
Physical Notes and Global Notes at the Registrar’s request.

 

(ii)   No
service charge shall be made for any registration of transfer or exchange, but
the Company may require payment of a sum sufficient to cover any transfer tax,
assessments, or similar governmental charge payable in connection therewith
(other than any such transfer taxes, assessments or similar governmental charge
payable upon exchange or transfer pursuant to Sections 3.06, 4.06, 4.08 and
9.05 of this Indenture).

 

(iii)  The
Company, the Trustee, the Paying Agent or the Registrar may deem and treat the
person in whose name a Note is registered as the absolute owner of such Note
for the purpose of receiving payment of principal of and interest, if any, on
such Note and for all other purposes whatsoever, whether or not such Note is
overdue, and none of the Company, the Trustee, the Paying Agent or the Registrar
shall be affected by notice to the contrary. All such payments so made to any
such Person, or upon such Person’s order, shall be valid, and, to the extent of
the sum or sums so paid, effectual to satisfy and discharge the liability for
moneys payable upon any Note.

 

(iv)  All
Notes issued upon any transfer or exchange pursuant to the terms of this
Indenture shall evidence the same debt and shall be entitled to the same
benefits under this Indenture as the Notes surrendered upon such transfer or
exchange.

 

SECTION 2.08. Physical
Notes.

 

(a)   A
Global Note deposited with the Depository or with the Trustee as Notes
Custodian pursuant to Section 2.02 shall be transferred to the beneficial
owners thereof in the form of Physical Notes in an aggregate principal amount
equal to the principal amount of such Global Note, in exchange for such Global
Note, only if such transfer complies with Section 2.07 and (i) the Depository
notifies the Company that it is unwilling or unable to continue as a Depository
for such Global Note or if at any time the Depository ceases to be a “clearing
agency” registered under the Exchange Act, and the Company is unable to find a
successor depositary or

 

35

 

(ii) the Company, in its sole discretion, notifies the Trustee in
writing that it elects to cause the issuance of Physical Notes under this
Indenture.

 

(b)   Any
Global Note that is transferable to the beneficial owners thereof pursuant to
this Section 2.08 shall be surrendered by the Depository to the Trustee, to be
so transferred, in whole or from time to time in part, without charge, and the
Trustee shall authenticate and deliver, upon such transfer of each portion of
such Global Note, an equal aggregate principal amount of Physical Notes of authorized
denominations. Any portion of a Global Note transferred pursuant to this
Section shall be registered in such names as the Depository shall direct.

 

(c)   Subject
to the provisions of Section 2.08(b), the registered Holder of a Global Note
may grant proxies and otherwise authorize any Person, including Agent Members
and Persons that may hold interests through Agent Members, to take any action
which a Holder is entitled to take under this Indenture or the Notes.

 

(d)   In
the event of the occurrence of any of the events specified in Section
2.08(a)(i), (ii) or (iii), the Company will promptly make available to the
Trustee a reasonable supply of Physical Notes in fully registered form without
interest coupons.

 

SECTION 2.09. Replacement Notes.  If a mutilated Note is surrendered to the
Registrar or if the Holder of a Note claims that the Note has been lost,
destroyed or wrongfully taken, the Company shall issue and the Trustee shall
authenticate a replacement Note if the requirements of Section 8-405 of the
Uniform Commercial Code are met, including that the Holder (i) satisfies the
Company or the Trustee within a reasonable time after such Holder has notice of
such loss, destruction or wrongful taking and the Registrar does not register a
transfer prior to receiving such notification, (ii) makes such request to the
Company or the Trustee prior to the Note being acquired by a protected
purchaser as defined in Section 8-303 of the Uniform Commercial Code,
(iii) if required by the Trustee or the Company, furnish an indemnity bond
sufficient in the judgment of the Trustee to protect the Company, the Trustee,
the Paying Agent and the Registrar from any loss that any of them may suffer if
a Note is replaced and (iv) satisfies any other reasonable requirements of
the Trustee.  In the event any such
mutilated, lost, destroyed or wrongfully taken Note has become or is about to
become due and payable, the Company in its discretion may pay such Note instead
of issuing a new Note in replacement thereof.

 

Upon the issuance of any new Note under this
Section 2.09, the Company may require the payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee)
connected therewith.

 

Every replacement Note is an additional
obligation of the Company.

 

The provisions of this Section 2.09 are
exclusive and shall preclude (to the extent lawful) all other rights and
remedies with respect to the replacement or payment of mutilated, lost,
destroyed or wrongfully taken Notes.

 

36

 

SECTION 2.10. Outstanding Notes.  Notes outstanding at any time are all Notes
authenticated by the Trustee except for those canceled by it, those delivered
to it for cancellation and those specified in this Section as not
outstanding.  Subject to Section 13.06,
a Note does not cease to be outstanding because the Company or an Affiliate of
the Company holds the Note.

 

If a Note is replaced pursuant to Section
2.09, it ceases to be outstanding.

 

If the Paying Agent segregates and holds in
trust, in accordance with this Indenture, on a Redemption Date or maturity
date, money sufficient to pay all principal and interest payable on that date
with respect to the Notes (or portions thereof) to be redeemed or maturing, as
the case may be, and the Paying Agent is not prohibited from paying such money
to the Holders on that date pursuant to the terms of this Indenture, then on
and after that date such Notes (or portions thereof) cease to be outstanding
and interest on them ceases to accrue.

 

SECTION 2.11. Temporary Notes.  In the event that Physical Notes are to be
issued under the terms of this Indenture, until such Physical Notes are ready
for delivery, the Company may prepare and the Trustee shall authenticate
temporary Notes.  Temporary Notes shall
be substantially in the form of Physical Notes but may have variations that the
Company considers appropriate for temporary Notes.  Without unreasonable delay, the Company shall prepare and the
Trustee shall authenticate Physical Notes and deliver them in exchange for
temporary Notes upon surrender of such temporary Notes at the office or agency
of the Company, without charge to the Holder.

 

SECTION 2.12. Cancellation.  The Company 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 registration of transfer, exchange or payment.  The Trustee and no one else shall cancel all
Notes surrendered for registration of transfer, exchange, payment or
cancellation and deliver proof of canceled Notes to the Company pursuant to
written direction by an Officer.  The
Company may not issue new Notes to replace Notes it has redeemed or paid.  The Trustee shall not authenticate Notes in
place of cancelled Notes other than pursuant to the terms of this Indenture.

 

SECTION 2.13. CUSIP Numbers.  The Company in issuing the Notes may use
“CUSIP” numbers (if then generally in use) and, if so, the Trustee shall use
“CUSIP” numbers in notices of redemption as a convenience to Holders; provided,
however, that any such notice may state that no representation is made
as to the correctness of such numbers either as printed on the Notes or as
contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Notes, and any such redemption
shall not be affected by any defect in or omission of such numbers.  Additional Notes may have a different CUSIP
number than the Original Notes (which will occur in connection with an issuance
of Additional Notes with original issue discount and any issuance of Additional
Notes thereafter) and be part of the same series as the Original Notes having
identical terms, conditions and entitlements. 
The Company, upon becoming aware, through written notice, of any change
in such “CUSIP” numbers, shall promptly notify the Trustee of such change.  

 

SECTION 2.14. Tax Treatment.  The Company agrees, and by acceptance of
beneficial ownership interest in the Notes each beneficial owner of Notes shall
be deemed to

 

37

 

have agreed, (1) to treat itself as owner of the Notes for all
purposes, including the preparation and filing of any United States federal,
state, local or foreign tax return, report, or other information; (2) to treat
the Notes as indebtedness for all tax purposes and (3) to treat the acquisition
of an IDS as the acquisition of the Notes and Class A Common Stock which are
represented by the IDS and to allocate the purchase price of the IDS between
the Notes and the Class A Common Stock in the proportions set forth in
paragraph 23 of the Notes.

 

SECTION 2.15. Maturity.  The Notes shall mature on [  ], 2019 unless redeemed earlier pursuant to
Article 3 of this Indenture.

 

ARTICLE 3

 

REDEMPTION

 

SECTION 3.01. Notices to Trustee.  If the Company elects to redeem Notes
pursuant to Section 3.07, it shall notify the Trustee in writing of the
Redemption Date and the principal amount of Notes to be redeemed.

 

The Company shall give each notice to the
Trustee provided for in this Section at least 30 days before the Redemption
Date unless the Trustee consents to a shorter period.  Such notice shall be accompanied by an Officers’ Certificate from
the Company to the effect that such redemption shall comply with the conditions
herein.  Any such notice may be canceled
at any time prior to notice of such redemption being mailed to any Holder and
shall thereby be void and of no effect.

 

SECTION 3.02. Selection of Notes to be Redeemed.  In the case of any partial redemption,
selection of Notes for redemption shall be made by the Trustee not more than 60
days prior to the Redemption Date in compliance with the requirements of the
principal national securities exchange, if any, on which such Notes of any
series are listed, or if such Notes of such series are not so listed, on a pro rata basis, by lot or by such other
method as the Trustee shall deem fair and appropriate.  If any Note is to be redeemed in part only,
the notice of redemption relating to such Note shall state the portion of the
principal amount thereof to be redeemed. A new Note in principal amount equal
to the unredeemed portion thereof shall be issued in the name of the Holder
thereof upon cancellation of the original Note.

 

SECTION 3.03. Notice of Redemption.  At least 30 days but not more than 60 days
before the Redemption Date, the Company, or the Trustee at the Company’s
direction, shall mail a notice of redemption by first-class mail to each Holder
of Notes to be redeemed at such Holder’s registered address; provided that in
the event the Trustee is to mail such notice, the Company shall deliver to the
Trustee, at least 30 days prior to the Redemption Date (unless the Trustee
consents to a shorter period), an Officer’s Certificate requesting that the
Trustee give such notice and setting forth the information to be stated in such
notice as provided below.

 

The notice shall identify the Notes to be
redeemed and shall state:

 

(1)   the
Redemption Date;

 

38

 

(2)   the
redemption price and the amount of accrued and unpaid interest to the
Redemption Date

 

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

 

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

 

(5)   that
on the Redemption Date, the redemption price will become due and payable upon
each such Note, and, unless the Company defaults in making such redemption payment
or the Paying Agent is prohibited from making such payment pursuant to the
terms of this Indenture, interest on Notes (or portion thereof) called for
redemption ceases to accrue on and after the Redemption Date;

 

(6)   the
CUSIP number, if any, printed on the Notes being redeemed; and

 

(7)   that
no representation is made as to the correctness or accuracy of the CUSIP
number, if any, listed in such notice or printed on the Notes.

 

The Company may provide in such notice that
payment of the redemption price and the performance of the Company’s
obligations with respect to such redemption may be performed by another Person.

 

The notice if mailed in the 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 as a whole or in part shall not
affect the validity of the proceedings for the redemption of any other Note.

 

At the Company’s request, the Trustee shall
give the notice of redemption in the Company’s name and at the Company’s
expense.  In such event, the Company
shall provide the Trustee with the information, along with a form of the
notice, required by this Section.

 

SECTION 3.04. Effect of Notice of Redemption.  Once notice of redemption is mailed, Notes
called for redemption become due and payable on the Redemption Date and at the
redemption price stated in the notice. 
Upon surrender to the Paying Agent, such Notes shall be paid at the
redemption price stated in the notice, plus accrued and unpaid interest, if
any, to the Redemption Date; provided, however, that if the
Redemption Date is after a regular record date and on or prior to the interest
payment date, the accrued interest shall be payable to the Holder of the
redeemed Notes registered on the relevant record date.

 

SECTION 3.05. Deposit of Redemption Price.  Prior to 10:00 a.m., New York City time, on
the Redemption Date, the Company shall deposit with the Paying Agent (or, if
the Company or a Subsidiary is acting as the Paying Agent, the Company or such
Subsidiary shall segregate and hold in trust) money (in U.S. dollars)
sufficient to pay the redemption price of and accrued and unpaid interest, if
any, on all Notes to be redeemed on that date other than Notes or portions of
Notes called for redemption that have been delivered by the Company to the
Trustee for cancellation.

 

39

 

On and after
the Redemption Date, unless the Company defaults in payment of the redemption
price, interest shall cease to accrue on Notes or portions thereof called for
redemption so long as the Company has deposited with the Paying Agent funds (in
U.S. dollars) sufficient to pay the principal of, plus accrued and unpaid
interest (if any) on, the Notes to be redeemed, whether or not such Notes are
presented for payment, and the only right of the Holders of such Notes (or
portions thereof) will be to receive payment of the redemption price and
subject to the next succeeding sentence, any accrued and unpaid interest on
such Notes (or portions thereof) to the Redemption Date.  If any Note (or portion thereof) called for
redemption shall not be so paid upon surrender thereof for redemption, the
principal (and premium, if any) shall, until paid, bear interest from the
Redemption Date at the rate borne by the Note (or portion thereof).

 

SECTION 3.06. Notes Redeemed in Part.  Upon surrender and cancellation of a Note
that is redeemed in part, the Company shall execute and the Trustee shall
authenticate for the Holder (at the Company’s expense) a new Note equal in
principal amount to the unredeemed portion of the Note surrendered.

 

SECTION 3.07. Redemption of Notes

 

    The Company may, at its option, redeem
all, but not less than all, of the Notes at any time upon not less than 30 nor
more than 60 days’ prior notice, at a redemption price equal to 100% of the
principal amount of the Notes plus accrued and unpaid interest to the
redemption date, upon the occurrence of a Tax event.

 

Except as set forth in the preceding
paragraph, the Company may not redeem Notes at its option prior to [                  ], 2011.

 

At any time and from time to time on or after
[                  ], 2011, the Notes
shall be redeemable, at the Company’s option, in whole or in part for cash at
the following redemption prices (expressed as a percentage of principal
amount), plus accrued and unpaid interest on the Notes redeemed, to the
relevant Redemption Date, if redeemed during the 12-month period commencing on
[                ] of the years set
forth below:

 

	
  Period

  	
   

  	
  Redemption
  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2011%

  	
   

  	
   

  	
   

  
	
  2012%

  	
   

  	
   

  	
   

  
	
  2013%

  	
   

  	
   

  	
   

  
	
  2014%

  	
   

  	
   

  	
   

  
	
  2015%

  	
   

  	
   

  	
   

  
	
  2016 and thereafter

  	
   

  	
  100.00

  	
  %

  

 

SECTION 3.08. Automatic Separation of IDSs.  A full or partial redemption of the Notes
will result in an automatic separation of the IDSs.

 

40

 

ARTICLE 4

 

COVENANTS

 

SECTION 4.01. Payment of Notes; Interest Deferral.  The Company shall pay the principal of and
interest on the Notes on the dates and in the manner provided in the Notes and
in this Indenture.  Principal and
interest shall be considered paid on the date due if on such date the Trustee
or the Paying Agent holds in accordance with this Indenture money sufficient to
pay all principal and interest then due and the Trustee or the Paying Agent, as
the case may be, is not prohibited from paying such money to the Holders on
that date pursuant to the terms of this Indenture.  Prior to                ,
2009, the Company may, at its election, defer interest payments on the Notes on
one or more occasions for not more than eight quarters in the aggregate; provided
that (1) at the end of each occasion, the Company will be obligated to resume
quarterly payments of interest on the Notes including interest on deferred
interest; and (2) no later than                
, 2009, the Company must pay in full all deferred interest, together
with accrued interest thereon.

 

After               , 2009 the Company may, at its election,
defer interest payments on the Notes on up to four occasions with respect to up
to two quarters per occasion; provided that (1) the Company may not
defer interest on any occasion after               , 2009 unless and until all interest deferred on any
prior occasion, together with accrued interest thereon, has been paid in full;
(2) at the end of each occasion, the Company will be obligated to resume
quarterly payments of interest on the Notes including interest on deferred
interest; and (3) no later than              
, 2019, the Company must pay all deferred interest, together with
accrued interest thereon.

 

On each
occasion that the Company elects to defer interest, it will be required to
deliver to the Trustee a copy of a resolution of the Company’s Board of
Directors to the effect that, based upon a good-faith determination of the
Company’s Board of Directors, (x) such interest deferral is reasonably
necessary for bona-fide cash management purposes, whether indicated by
cumulative distributable cash shortfall or otherwise, or to reduce the
likelihood of or avoid a payment default under any Designated Senior
Indebtedness or (y) as long as the Credit Agreement remains in effect, the
Company has failed to maintain a fixed charge coverage ratio of at least
1.15:1:00 or a senior leverage ratio of not more than 3.20 to 1.00, in each
case, as calculated in accordance with the provisions contained in the Credit
Agreement as of the closing date hereof, irrespective of any subsequent changes
to the Credit Agreement. However, no interest deferral may be commenced, and
any on-going deferral shall cease, if (1) default in payment of interest,
principal or premium, if any, on the Notes has occurred and is continuing; or
(2) another Event of Default with respect to the Notes has occurred and is
continuing and the Notes have been accelerated as a result of the occurrence of
such Event of Default.

 

Deferred
interest on the Notes will bear interest at the same rate as the stated rate of
interest applicable to the Notes, compounded quarterly, until paid in full.

 

SECTION 4.02. Reports and Other Information  The Company shall file with the Trustee,
within 15 days after it files such annual and quarterly reports, information,
documents and other reports with the Commission, copies of its annual report
and of the information, documents and other reports (or copies of such portions
of any of the foregoing as the Commission may by rules and regulations
prescribe) which the Company is required to file with

 

41

 

the Commission pursuant to Section 13 or 15(d) of the Exchange Act (the
‘‘SEC Reports’’). If at any time the Company is not subject to Section 13 or
15(d) of the Exchange Act, the Company shall provide reports containing substantially
the same information as that contained in the SEC Reports (the ‘‘Trustee
Reports’’), such Trustee Reports to be provided at the same times the Company
would have been required to provide the SEC Reports to the Trustee pursuant to
the immediately preceding sentence had it then been subject to Section 13 or
15(d) of the Exchange Act, provided that the Trustee Reports need not include
any certifications from officers of the Company.  

 

SECTION 4.03. Limitations on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock  .  The Company (i) shall not, and shall not
permit any of its Restricted Subsidiaries to, directly or indirectly, Incur any
Indebtedness (including Acquired Indebtedness) or issue any shares of
Disqualified Stock, and (ii) shall not permit any of its Restricted
Subsidiaries to issue any shares of Preferred Stock; provided, however,
that the Company and any Restricted Subsidiary may Incur Indebtedness
(including Acquired Indebtedness) or issue shares of Disqualified Stock and any
Restricted Subsidiary may issue shares of Preferred Stock if the Leverage Ratio
of the Company for the most recently ended four full fiscal quarters for which
internal financial statements are available immediately preceding the date on
which such additional Indebtedness is Incurred or such Disqualified Stock or
Preferred Stock is issued would have been no greater than 6.25 to 1.00
determined on a pro forma basis (including a pro forma application of the net
proceeds therefrom), as if the additional Indebtedness had been Incurred, or
the Disqualified Stock or Preferred Stock had been issued, as the case may be,
and the application of proceeds therefrom had occurred at the beginning of such
four-quarter period.

 

The foregoing
limitations shall not apply to:

 

(a)   the Incurrence by the Company or its
Restricted Subsidiaries of Indebtedness under the Senior Credit Documents and
any related guarantees and the issuance and creation of letters of credit and
bankers’ acceptances thereunder (with letters of credit and bankers’
acceptances being deemed to have a principal amount equal to the face amount
thereof) up to an aggregate principal amount of $100.0 million outstanding at
any one time;

 

(b)   the Incurrence by the Company and the
Guarantors of Indebtedness represented by the Notes (excluding Additional
Notes), and the Guarantees, as applicable; 

 

(c)   Indebtedness existing on the date of
this Indenture (other than Indebtedness specified in clauses (a) and (b));

 

(d)   Indebtedness (including Capitalized
Lease Obligations) Incurred by the Company or any of its Restricted
Subsidiaries to finance the purchase, lease or improvement of property (real or
personal) or equipment (whether through the direct purchase of assets or the
Capital Stock of any Person owning such assets) in an aggregate principal
amount which, when aggregated with the principal amount of all other
Indebtedness then outstanding and Incurred pursuant to this clause (d) and all
Refinancing Indebtedness (as defined below) Incurred to refund, refinance or
replace any Indebtedness Incurred pursuant to this clause (d), does not exceed
the greater of 15% of Tangible Assets at the time of Incurrence or $10.0
million;

 

42

 

(e)   Indebtedness Incurred by the Company
or any of its Restricted Subsidiaries constituting reimbursement obligations
with respect to letters of credit issued in the ordinary course of business,
including without limitation letters of credit in respect of workers’
compensation claims, health, disability or other employee benefits or property,
casualty or liability insurance or self-insurance, or with respect to
agreements to provide services, or other Indebtedness with respect to
reimbursement type obligations regarding workers’ compensation claims; provided,
however, that upon the drawing of such letters of credit, such
obligations are reimbursed within 30 days following such drawing;

 

(f) Indebtedness arising from agreements of
the Company or a Restricted Subsidiary providing for indemnification,
adjustment of purchase price or similar obligations, in each case, Incurred in
connection with the disposition of any business, assets or a Subsidiary of the
Company in accordance with the terms of this Indenture, 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;

 

(g)   Indebtedness of the Company to a
Restricted Subsidiary of the Company; provided that any such Indebtedness
is subordinated in right of payment to the Notes; provided  further
that any subsequent issuance or transfer of any Capital Stock or any other
event which results in any such Restricted Subsidiary ceasing to be a
Restricted Subsidiary of the Company or any other subsequent transfer of any
such Indebtedness (except to the Company or another Restricted Subsidiary)
shall be deemed, in each case to be an Incurrence of such Indebtedness;

 

(h)   shares of Preferred Stock of a
Restricted Subsidiary issued to the Company or another Restricted Subsidiary of
the Company; provided that any subsequent issuance or transfer of any
Capital Stock or any other event which results in any such Restricted
Subsidiary holding such shares of Preferred Stock ceasing to be a Restricted
Subsidiary or any other subsequent transfer of any such shares of Preferred
Stock (except to the Company or another Restricted Subsidiary of the Company)
shall be deemed, in each case, to be an issuance of shares of Preferred Stock;

 

(i) Indebtedness of a Restricted Subsidiary
to the Company or another Restricted Subsidiary of the Company; provided
that if a Guarantor Incurs such Indebtedness to a Restricted Subsidiary that is
not a Guarantor such Indebtedness is subordinated in right of payment to the
Guarantee of such Guarantor; provided  further that any subsequent
issuance or transfer of any Capital Stock or any other event which results in
any Restricted Subsidiary lending such Indebtedness ceasing to be a Restricted
Subsidiary or any other subsequent transfer of any such Indebtedness (except to
the Company or another Restricted Subsidiary of the Company) shall be deemed,
in each case, to be an Incurrence of such Indebtedness;

 

(j) Hedging Obligations that are incurred in
the ordinary course of business (1) for the purpose of fixing or hedging
interest rate risk with respect to any Indebtedness that is permitted by the
terms of this Indenture to be outstanding, (2) for the purpose of fixing or
hedging currency exchange rate risk with respect to any currency exchanges or
(3) for the purpose of fixing or hedging commodity price risk with respect to
any commodity purchases;

 

43

 

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

 

(l) Indebtedness or Disqualified Stock of the Company and
any Restricted Subsidiary not otherwise permitted hereunder in an aggregate
principal amount, which when aggregated with the principal amount or
liquidation preference of all other Indebtedness and Disqualified Stock then
outstanding and Incurred pursuant to this clause (1), does not exceed $12.5
million at any one time outstanding;

 

(m)   any guarantee by the Company or a Guarantor of
Indebtedness or other obligations of the Company or any of its Restricted
Subsidiaries so long as the Incurrence of such Indebtedness Incurred by the
Company or such Restricted Subsidiary is permitted under the terms of this
Indenture; provided that if such Indebtedness is by its express terms
subordinated in right of payment to the Notes or the Guarantee of such
Restricted Subsidiary, as applicable, any such guarantee of such Guarantor with
respect to such Indebtedness shall be subordinated in right of payment to such
Guarantor’s Guarantee with respect to the Notes substantially to the same
extent as such Indebtedness is subordinated to the Notes or the Guarantee of
such Restricted Subsidiary, as applicable;

 

(n)   the Incurrence by the Company or any of its Restricted
Subsidiaries of Indebtedness which serves to refund or refinance any
Indebtedness Incurred as permitted under the first paragraph of this covenant
and clauses (b) and (c) of this paragraph, or any Indebtedness issued to so
refund or refinance such Indebtedness (subject to the following proviso,
“Refinancing Indebtedness”); provided, however, that such
Refinancing Indebtedness:

 

(i)   has a Weighted Average Life to Maturity at the time
such Refinancing Indebtedness is Incurred which is not less than the remaining
Weighted Average Life to Maturity of the Indebtedness being refunded or
refinanced;

 

(ii)  has a Stated Maturity which is no earlier than the
Stated Maturity of the Indebtedness being refunded or refinanced;

 

(iii) to the extent such Refinancing Indebtedness refinances
Indebtedness pari passu with, or subordinate to, the Notes or the Guarantees,
is pari passu with, or subordinate to, the Notes or the Guarantees, as
applicable;

 

(iv) is Incurred in an aggregate principal amount (or if
issued with original issue discount, an aggregate issue price) that is equal to
or less than the aggregate principal amount (or if issued with original issue
discount, the aggregate accreted value) then outstanding of the Indebtedness
being refinanced plus premium and fees Incurred in connection with such
refinancing; and

 

(v)  shall not include (x) Indebtedness of a Restricted
Subsidiary that is not a Guarantor that refinances Indebtedness of the Company
or (y)

 

44

 

Indebtedness
of the Company or a Restricted Subsidiary that refinances Indebtedness of an
Unrestricted Subsidiary;

 

and provided  further that
subclauses (i) and (ii) of this clause (n) shall not apply to any refunding or
refinancing of any Senior Indebtedness;

 

(o)   Indebtedness or Disqualified Stock of Persons that are
acquired by the Company or any of its Restricted Subsidiaries or merged into a
Restricted Subsidiary in accordance with the terms of this Indenture; provided,
however, that such Indebtedness or Disqualified Stock is not Incurred in
contemplation of such acquisition or merger or to provide all or a portion of
the funds or credit support required to consummate such acquisition or merger;
provided, further, however, that after giving effect to such acquisition and
the Incurrence of such Indebtedness or Disqualified Stock either (i) the
Company would be permitted to Incur at least $1.00 of additional Indebtedness
pursuant to the Leverage Ratio test set forth in the first sentence of this
covenant or (ii) the Leverage Ratio would be less than immediately prior to
such acquisition;

 

(p)   The Incurrence by the Company or any Restricted
Subsidiary of Indebtedness to finance, in whole or in part, an acquisition of a
business or assets consummated within 60 days of such Incurrence; provided
that after giving effect to such acquisition and the Incurrence of such
Indebtedness the Leverage Ratio would be less than immediately prior to such
acquisition;

 

(q)   Indebtedness of the Company and any Restricted
Subsidiary arising from the honoring by a bank or other financial institution
of a check, draft or similar instrument inadvertently drawn against
insufficient funds, so long as such Indebtedness is covered within five business
days;

 

(r) the incurrence by the Company or any Restricted
Subsidiary of Indebtedness, the net proceeds of which are used to defease the
Notes as provided in Article 8 of this Indenture; and

 

(s)   Indebtedness represented by the issuance of Additional
Notes and related Guarantees in connection with the exchange of Class B common
stock of the Company outstanding on the Issue Date (or Class B common stock
issued or distributed in respect of, or in substitution for, Class B common
stock outstanding on the Issue Date, in connection with any stock split or
combination) for IDSs provided that all the Exchange Conditions are satisfied
at the time of such exchange and issuance.

 

For purposes of determining compliance with
this Section 4.03, in the event that an item of Indebtedness meets the criteria
of more than one of the categories of permitted Indebtedness specified in
clauses (a) through (s) above or is entitled to be Incurred pursuant to the
first paragraph of this covenant, the Company may, in its sole discretion,
classify or reclassify such item of Indebtedness or any portion thereof in any
manner that complies with this covenant and such item or such portion of such
item of Indebtedness will be treated as having been Incurred pursuant to only
one of such clauses or pursuant to the first paragraph hereof; provided,
however, that a change in GAAP that results in an obligation of such
Person that exists at such time, and is not theretofore classified as
Indebtedness, becoming Indebtedness shall not be deemed an

 

45

 

Incurrence of Indebtedness. Accrual of
interest, the accretion of accreted value and the payment of interest in the
form of additional Indebtedness will not be deemed to be an Incurrence of
Indebtedness for purposes of this covenant.

 

SECTION 4.04. Limitation on Restricted Payments.  The Company 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 or payment on account of the
Company’s or any of its Restricted Subsidiaries’ Equity Interests, including
any payment made in connection with any merger or consolidation involving the
Company (other than (A) dividends or distributions by the Company payable solely
in Equity Interests (other than Disqualified Stock) of the Company, (B)
dividends or distributions or payments by a Restricted Subsidiary that is a
Wholly Owned Restricted Subsidiary or (C) dividends or distributions or
payments by a Restricted Subsidiary that is not a Wholly Owned Restricted
Subsidiary so long as, in the case of any dividend or distribution payable on
or in respect of any class or series of securities issued by a Restricted
Subsidiary that is not a Wholly Owned Restricted Subsidiary, the Company or a
Restricted Subsidiary receives at least its pro rata share of such dividend or
distribution in accordance with its Equity Interests in such class or series of
securities);

 

(2)   purchase
or otherwise acquire or retire for value any Equity Interests of the Company or
any Restricted Subsidiary;

 

(3)   make
any principal payment on, cause a defeasance of, or purchase, repurchase,
redeem or otherwise acquire or retire for value, prior to any scheduled
maturity, scheduled repayment or scheduled sinking fund payment, any
Subordinated Indebtedness;

 

(4)   make
any Restricted Investment (all such payments and other actions set forth in
this clause (4) and clauses (1), (2) and (3) above being collectively referred
to as “Restricted Payments”), unless, at the time of such Restricted Payment,

 

(a)   no Default or Event of Default shall have occurred and
be continuing or would occur as a consequence thereof;

 

(b)   (x) no Dividend Suspension Period shall have occurred
and be continuing, (y) no Interest Deferral Period shall have occurred and be
continuing, and (z) no interest deferred during a prior Interest Deferral
Period (including interest thereon) remains unpaid; and

 

(c)   such Restricted Payment, together with the aggregate
amount of all other Restricted Payments made by the Company and its Restricted
Subsidiaries after the Issue Date (including, without duplication, Restricted
Payments permitted by clauses (1), (4) and (6) of the next succeeding
paragraph, but excluding all other Restricted Payments permitted by the next
succeeding paragraph), is less than the sum of, without duplication:

 

46

 

(i)   100% of Excess Cash of the Company for the period
(taken as one accounting period) from the fiscal quarter that first begins
after the Issue Date to the end of the Company’s most recently ended fiscal
quarter for which internal financial statements are available at the time of
such Restricted Payments, plus

 

(ii)  100% of the aggregate net cash proceeds or property,
other than cash, but only when and to the extent that such property is
converted to cash, in each case received by the Company  and its Restricted Subsidiaries since the
Issue Date from the issue or sale of Equity Interests of the Company (excluding
Refunding Capital Stock (as defined below), Designated Preferred Stock and
Disqualified Stock), including Equity Interests issued upon conversion of
Indebtedness, Disqualified Stock and Designated Preferred Stock or upon
exercise of warrants or options (other than an issuance or sale to a Subsidiary
of the Company or an employee stock ownership plan or trust established by the
Company or any of its Subsidiaries) plus

 

(iii) 100% of the aggregate amount of contributions to the
capital of the Company since the Issue Date received in cash or in property
other than cash, but only when and to the extent that such property is
converted to cash (other than Refunding Capital Stock, Designated Preferred
Stock and Disqualified Stock), plus

 

(iv) 100% of the aggregate amount of cash or property other
than cash, but only when and to the extent that such property is converted to
cash, in each case received from (A) the sale or other disposition (other than
to the Company or a Restricted Subsidiary) of Restricted Investments made by the
Company and its Restricted Subsidiaries and from repurchases and redemptions of
such Restricted Investments from the Company and its Restricted Subsidiaries by
any Person (other than the Company or any of its Subsidiaries) and from
repayments of loans or advances which constituted Restricted Investments, (B)
the sale (other than to the Company or a Restricted Subsidiary) of the Capital
Stock of an Unrestricted Subsidiary or (C) a distribution or dividend from an
Unrestricted Subsidiary, plus

 

(v)  in the event any Unrestricted Subsidiary has been
redesignated as a Restricted Subsidiary or has been merged, consolidated or
amalgamated with or into, or transfers or conveys its assets to, or is
liquidated into, the Company or a Restricted Subsidiary, (A) 100% of the amount
of Cash Equivalents on the balance sheet of such Unrestricted Subsidiary at the
time of such redesignation, combination or transfer (except to the extent such
Cash Equivalents were financed with an incurrence of indebtedness) and (B) 100%
of the aggregate net cash proceeds received by the Company (i) at the time of
such redesignation, combination or transfer, or (ii) with respect to assets
other than cash, but only when and to the extent that such property is
converted to cash.

 

The foregoing provisions shall not prohibit:

 

47

 

(1)   the
payment of any dividend or distribution within 60 days after the date of
declaration thereof, if at the date of declaration such payment would have
complied with the provisions of this Indenture;

 

(2)   (a)
the repurchase, retirement or other acquisition of any Equity Interests
(“Retired Capital Stock”) or Subordinated Indebtedness of the Company in
exchange for, or out of the proceeds of the substantially concurrent sale of,
Equity Interests of the Company or contributions to the equity capital of the
Company (other than any Disqualified Stock or any Equity Interests sold to a
Subsidiary of the Company or to an employee stock ownership plan or any trust
established by the Company or any of its Subsidiaries) (collectively, including
any such contributions, “Refunding Capital Stock”) and (b) the declaration and
payment of accrued dividends on the Retired Capital Stock out of the proceeds
of the substantially concurrent sale (other than to a Subsidiary of the Company
or to an employee stock ownership plan or any trust established by the Company
or any of its Subsidiaries) of Refunding Capital Stock or the sale of
Subordinated Indebtedness;

 

(3)   the
declaration and payment of dividends or distributions to holders of any class
or series of Disqualified Stock of the Company or any of its Restricted
Subsidiaries issued or incurred in accordance with Section 4.03 hereof;

 

(4)   the
declaration and payment of dividends or distributions to holders of any class
or series of Designated Preferred Stock issued after the Issue Date; provided,
however, that (A) for the most recently ended four full fiscal quarters
for which internal financial statements are available immediately preceding the
date of issuance of such Designated Preferred Stock, after giving effect to
such issuance (and the payment of dividends or distributions) on a pro forma
basis, the Company would have had a Leverage Ratio of no more than 6.25 to 1.00
and (B) the aggregate amount of dividends declared and paid pursuant to this
clause (4) does not exceed the net cash proceeds received by the Company from
the sale of Designated Preferred Stock issued after the Issue Date;

 

(5)   the
redemption, repurchase or other acquisition or retirement of Subordinated
Indebtedness of the Company made by exchange for, or out of the proceeds of the
substantially concurrent sale of, new Indebtedness of the Company so long as
(A) the principal amount of such new Subordinated Indebtedness does not exceed
the principal amount of the Subordinated Indebtedness being so redeemed,
repurchased, acquired or retired for value (plus the amount of any premium
required to be paid under the terms of the instrument governing the
Subordinated Indebtedness being so redeemed, repurchased, acquired or retired),
(B) such Indebtedness is subordinated to the Senior Indebtedness and the Notes
and the Guarantees at least to the same extent as such Subordinated
Indebtedness so purchased, exchanged, redeemed, repurchased, acquired or
retired for value, (C) such Indebtedness has a final scheduled maturity date
equal to or later than the final scheduled maturity date of the Subordinated
Indebtedness being so redeemed, repurchased, acquired or retired and (D) such

 

48

 

Indebtedness has a Weighted Average Life to
Maturity equal to or greater than the remaining Weighted Average Life to
Maturity of the Subordinated Indebtedness being so redeemed, repurchased,
acquired or retired;

 

(6)   Investments
in Unrestricted Subsidiaries having an aggregate Fair Market Value, taken
together with all other Investments made pursuant to this clause (6) that are
at that time outstanding, not to exceed $5.0 million (with the Fair Market
Value of each Investment being measured at the time made and without giving
effect to subsequent changes in value);

 

(7)   other
Restricted Payments in an aggregate amount not to exceed $5.0 million;

 

(8)   repurchases
of Equity Interests deemed to occur upon exercise of stock options if such
Equity Interests represent a portion of the exercise price of such options;

 

(9)   the
acquisition of Class B common stock outstanding on the Issue Date (or Class B
common stock issued or distributed in respect of, or in substitution for, Class
B common stock outstanding on the Issue Date, in connection with any stock
split or combination) in connection with the issuance of IDSs upon exchange of
the Class B common stock; provided that all the Exchange Conditions are
satisfied at the time of such exchange and acquisition; provided further that
such exchange and acquisition will not increase the amount available for
Restricted Payments under clause (c)(ii) of the preceding paragraph; and

 

(10) repurchases
of           shares of  Class B Common Stock and [   ] 
IDSs on the Issue Date.

 

provided,
however, that at the time of, and after giving effect to, any Restricted
Payment permitted under clauses (3), (4), (6), (7) and (9), no Default or Event
of Default shall have occurred and be continuing or would occur as a
consequence thereof.

 

SECTION 4.05. Dividend and Other Payment Restrictions
Affecting Subsidiaries.  The
Company shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, create or otherwise cause or suffer to exist or become
effective any consensual encumbrance or consensual restriction on the ability
of any Restricted Subsidiary to:

 

(a)   (i) pay dividends or make any other distributions to
the Company or any of its Restricted Subsidiaries (1) on its Capital Stock or
(2) with respect to any other interest or participation in, or measured by, its
profits, or (ii) pay any Indebtedness owed to the Company or any of its
Restricted Subsidiaries;

 

(b)   make loans or advances to the Company or any of its Restricted
Subsidiaries; or

 

(c)   sell, lease or transfer any of its properties or
assets to the Company or any of its Restricted Subsidiaries;

 

49

 

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

 

(1)   contractual
encumbrances or restrictions in effect on the Issue Date, including pursuant to
the Credit Agreement and the other Senior Credit Documents;

 

(2)   this
Indenture, the Notes and the Guarantees;

 

(3)   applicable
law or any applicable rule, regulation or order;

 

(4)   any
agreement or other instrument relating to Indebtedness of a Person acquired by
the Company or any Restricted Subsidiary which was in existence at the time of
such acquisition (but not created in contemplation thereof or to provide all or
any portion of the funds or credit support utilized to consummate such
acquisition), which encumbrance or restriction is not applicable to any Person,
or the properties or assets of any Person, other than the Person, or the
property or assets of the Person, so acquired;

 

(5)   any
restriction with respect to a Restricted Subsidiary imposed pursuant to an
agreement entered into for the sale or disposition of all or substantially all
the Capital Stock or assets of such Restricted Subsidiary pending the closing
of such sale or disposition;

 

(6)   Secured
Indebtedness otherwise permitted to be Incurred pursuant to Sections 4.03 and
Section 4.08 that limit the right of the debtor to dispose of the assets
securing such Indebtedness;

 

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

 

(8)   customary
provisions in joint venture agreements and other similar agreements entered
into in the ordinary course of business;

 

(9)   customary
provisions contained in leases, licenses, agreements to provide services and
other similar agreements entered into in the ordinary course of business that
impose restrictions of the type specified in clause (c) above, including but
not limited to, customary non-assignment provisions;

 

(10) other
Indebtedness of Restricted Subsidiaries permitted to be Incurred subsequent to
the Issue Date pursuant to Section 4.03(l); or

 

(11) any
encumbrances or restrictions of the type referred to in clauses (a), (b) and
(c) above imposed by any amendments, modifications, restatements, renewals,
increases, supplements, refundings, replacements or refinancings of the
contracts, instruments or obligations referred to in clauses (1) through (10)
above; provided that such amendments, modifications, restatements, renewals,
increases, supplements, refundings, replacements or refinancings are, in the
good faith

 

50

 

judgment of the Board of Directors, no more
restrictive with respect to such dividend and other payment restrictions than
those contained in the dividend or other payment restrictions prior to such
amendment, modification, restatement, renewal, increase, supplement, refunding,
replacement or refinancing.

 

SECTION 4.06. Asset
Sales.  (a) The Company shall
not, and shall not permit any of its Restricted Subsidiaries to cause or make
an Asset Sale, unless (x) the Company, or its Restricted Subsidiaries, as the
case may be, receives consideration at the time of such Asset Sale at least
equal to the Fair Market Value (as determined in good faith by the Company) of
the assets sold or otherwise disposed of and (y) except in the case of a
Permitted Asset Swap, at least 75% of the consideration therefor received by
the Company, or such Restricted Subsidiary, as the case may be, is in the form
of Cash Equivalents; provided that the amount of the following shall be deemed
to be Cash Equivalents for the purposes of this provision:

 

(i)   any liabilities (as shown on the Company’s or such
Restricted Subsidiary’s most recent balance sheet or in the notes thereto) of
the Company or any Restricted Subsidiary (other than liabilities that are by
their terms subordinated to the Notes) that are assumed by the transferee of
any such assets;

 

(ii)  any notes or other obligations or other securities
received by the Company or such Restricted Subsidiary from such transferee that
are converted by the Company or such Restricted Subsidiary into Cash
Equivalents within 180 days of the receipt thereof (to the extent of the Cash
Equivalents received); and

 

(iii) any Designated Noncash Consideration received by the
Company or any of its Restricted Subsidiaries in such Asset Sale having an
aggregate Fair Market Value, taken together with all other Designated Noncash
Consideration received pursuant to this clause that is at that time
outstanding, not to exceed the greater of 7.5% of Tangible Assets or $5.0
million (with the Fair Market Value of each item of Designated Noncash Consideration
being measured at the time received and without giving effect to subsequent
changes in value).

 

(b)   Within 365 days after the Company’s or any Restricted
Subsidiary’s receipt of the Net Proceeds of any Asset Sale, the Company or such
Restricted Subsidiary may apply the Net Proceeds from such Asset Sale, at its
option to:

 

(i)   permanently reduce Obligations under the Credit
Agreement (and, in the case of revolving Obligations, to temporarily reduce
such Obligations) or other Senior Indebtedness or Pari Passu Indebtedness
(provided that if the Company shall so reduce Obligations under Pari Passu
Indebtedness, it will equally and ratably reduce Obligations under the Notes by
making an offer (in accordance with the procedures set forth below for an Asset
Sale Offer) to all Holders to purchase at a purchase price equal to 100% of the
principal amount thereof, plus accrued and unpaid interest, if any, the pro
rata principal amount of Notes) or Indebtedness of a Restricted Subsidiary, in
each case other than Indebtedness owed to the Company or an Affiliate of the
Company;

 

51

 

(ii)  make an investment in any one or more businesses,
capital expenditures or acquisitions of other assets in each case used or
useful in a Similar Business, or set aside in respect of a project in
connection therewith that has been commenced or for which a binding contractual
commitment has been entered into; and/or

 

(iii) make an investment in properties or assets that
replace the properties and assets that are the subject of such Asset Sale, or
set aside in respect of a project in connection therewith that has been
commenced or for which a binding contractual commitment has been entered into.

 

Pending the final application of any such Net
Proceeds, the Company or such Restricted Subsidiary may temporarily reduce
Indebtedness under a revolving credit facility, if any, or otherwise invest
such Net Proceeds in Cash Equivalents or Investment Grade Securities. Any Net
Proceeds from any Asset Sale that are not applied as provided and within the
time period set forth in the first sentence of this paragraph will be deemed to
constitute “Excess Proceeds.”

 

When the aggregate amount of  Excess Proceeds exceeds $10.0 million, the
Company shall make an offer to all Holders of Notes (an “Asset Sale Offer”) to
purchase the maximum principal amount of Notes that may be purchased out of the
Excess Proceeds at an offer price in cash in an amount equal to 100% of the
principal amount thereof, plus accrued and unpaid interest, if any, to but not
including the date fixed for the closing of such offer, in accordance with the
procedures set forth in this Indenture. The Company will commence an Asset Sale
Offer with respect to Excess Proceeds within ten Business Days after the date
that Excess Proceeds exceed $10.0 million by mailing the notice required
pursuant to the terms of this Indenture, with a copy to the Trustee. To the
extent that the aggregate amount of Notes tendered pursuant to an Asset Sale
Offer is less than the Excess Proceeds, the Company may use any remaining
Excess Proceeds for general corporate purposes. If the aggregate principal
amount of Notes surrendered by Holders thereof exceeds the amount of Excess
Proceeds, the Trustee shall select the Notes to be purchased pursuant to
Section 4.06(c)(3). Upon completion of any such Asset Sale Offer, the amount of
Excess Proceeds shall be reset at zero.

 

(c)   (1)  Promptly,
and in any event within ten Business Days after the Company becomes obligated
to make an Asset Sale Offer, the Company shall deliver to the Trustee and send,
by first-class mail, postage prepaid, to each Holder at such Holder’s
registered address, a written notice stating that the Holder may elect to have
such Holder’s Notes purchased by the Company either in whole or in part
(subject to prorating pursuant to Section 4.06(c)(3)), at the applicable
purchase price.  The notice shall be
mailed at least 30 but not more than 60 days before the purchase date.  If any Note is to be purchased in part only,
any notice of purchase that relates to such Note shall state the portion of the
principal amount thereof that has been or is to be purchased.

 

(2)   Not
later than the date upon which written notice of an Asset Sale Offer is
delivered to the Trustee as provided above, the Company shall deliver to the
Trustee an Officers’ Certificate as to (i) the amount of the Excess Proceeds,
(ii) the allocation of the Net Proceeds from the Asset Sales pursuant to which
such Asset Sale Offer is being made and (iii) the compliance of such allocation
with

 

52

 

the provisions of Section 4.06(b).  On such date, the Company shall also
irrevocably deposit with the Trustee or with a paying agent (or, if the Company
is acting as its own paying agent, segregate and hold in trust) an amount equal
to the Excess Proceeds to be invested in Cash Equivalents selected by the
Company and to be held for payment in accordance with the provisions of this
Section 4.06.  Upon the expiration of
the period for which the Offer remains open (the “Offer Period”), the Company
shall deliver to the Trustee for cancellation the Notes or portions thereof
that have been properly tendered to and are to be accepted by the Company.  The Trustee (or the Paying Agent, if not the
Trustee) shall, on the date of purchase, mail or deliver payment to each
tendering Holder in the amount of the purchase price.  In the event that the Excess Proceeds delivered by the Company to
the Trustee is greater than the purchase price of the Notes tendered, the
Trustee shall deliver the excess to the Company immediately after the
expiration of the Offer Period for application in accordance with Section
4.06(b) above.

 

(3)   Holders
electing to have a Note purchased shall be required to surrender the Note, with
an appropriate form duly completed, to the Company at the address specified in
the notice at least three Business Days prior to the purchase date.  Holders shall be entitled to withdraw their
election if the Trustee or the Company receives not later than one Business Day
prior to the purchase date, a telegram, telex, facsimile transmission or letter
setting forth the name of the Holder, the principal amount of the Note which
was delivered by the Holder for purchase and a statement that such Holder is
withdrawing his election to have such Note purchased.  If at the expiration of the Offer Period more Notes are tendered
pursuant to an Asset Sale Offer than the Company is required to purchase,
selection of such Notes for purchase shall be made by the Trustee in compliance
with the requirements of the principal national securities exchange, if any, on
which such Notes are listed, or if such Notes are not so listed, on a pro rata
basis, by lot or by such other method as the Trustee shall deem fair and
appropriate (and in such manner as complies with applicable legal
requirements).  A new Note in principal
amount equal to the unpurchased portion of any Note purchased in part will be
issued in the name of the Holder thereof upon cancellation of the original
Note.  On and after the purchase date,
unless the Company defaults in payment of the purchase price, interest shall
cease to accrue on Notes or portions thereof purchased.

 

(d)   The Company shall comply with the requirements of Rule
14e-1 under the Exchange Act and any other securities laws and regulations to
the extent such laws or regulations are applicable in connection with the
repurchase of the Notes pursuant to an Asset Sale Offer. To the extent that the
provisions of any securities laws or regulations conflict with the provisions
of this Indenture, the Company shall comply with the applicable securities laws
and regulations and shall not be deemed to have breached its obligations
described in this Indenture by virtue thereof.

 

SECTION 4.07. Transactions with Affiliates.  The Company shall not, and shall not permit
any of its Restricted Subsidiaries to, directly or indirectly, make any payment
to, or sell, lease, transfer or otherwise dispose of any of its properties or
assets to, or purchase any property

 

53

 

or assets from, or enter into or make or amend any transaction or
series of transactions, contract, agreement, understanding, loan, advance or
guarantee with, or for the benefit of, any Affiliate of the Company (each of
the foregoing, an “Affiliate Transaction”) involving aggregate consideration in
excess of $1.0 million, unless:

 

(1)  such Affiliate Transaction is on terms that
are not materially less favorable to the Company or the relevant Restricted
Subsidiary than those that could have been obtained in a comparable transaction
by the Company or such Restricted Subsidiary with an unrelated Person; and

 

(2)  with respect to any Affiliate Transaction or
series of related Affiliate Transactions involving aggregate consideration in
excess of $5.0 million, the Company delivers to the Trustee a resolution
adopted by the majority of the Board of Directors of the Company, approving
such Affiliate Transaction and set forth in an Officers’ Certificate certifying
that such Affiliate Transaction complies with clause (1) above.

 

The foregoing provisions shall not apply to
the following:

 

(i)   transactions between or among the Company and/or any
of its Restricted Subsidiaries;

 

(ii)  Permitted Investments and Restricted Payments
permitted by Section 4.04;

 

(iii) the payment of compensation (including amounts paid
pursuant to employee benefit plans) or the provision of indemnity to officers,
directors and/or employees of the Company or any of the Restricted Subsidiaries
so long as such payments are pursuant to a policy (i) established by the Board
of Directors in good faith and (ii) evidenced by a resolution of the Board of
Directors;

 

(iv) maintenance in the ordinary course of business of
customary benefit plans or arrangements for employees, officers and/or
directors, including vacation plans, health and life insurance plans, deferred
compensation plans, retirement or savings plans and similar plans or
arrangements;

 

(v)  issuance of securities or other payments, awards or
grants in cash, securities or otherwise, or the grant of options, pursuant to
any employment arrangements or employee benefit plans or arrangements which are
approved by a majority of the Board of Directors in good faith;

 

(vi) the payment of all fees and expenses relating to the
Transactions;

 

(vii)   transactions in which the Company or any of its
Restricted Subsidiaries, as the case may be, delivers to the Trustee a letter
from an Independent Financial Advisor stating that such transaction is fair to
the Company or such Restricted Subsidiary from a financial point of view or
meets the requirements of clause (1) of the preceding paragraph;

 

54

 

(viii)  payments or loans to employees or consultants in the
ordinary course of business which are approved by a majority of the Board of
Directors in good faith;

 

(ix) any agreement as in effect as of the Issue Date or any
amendment thereto (so long as any such amendment is not disadvantageous to the
holders of the Notes in any material respect) or any transaction contemplated
thereby;

 

(x)  the existence of, or the performance by the Company or
any of its Restricted Subsidiaries of its obligations under the terms of, any
stockholders agreement (including any registration rights agreement or purchase
agreement related thereto) to which it is a party as of the Issue Date and any
similar agreements which it may enter into thereafter, provided, however,
that the existence of, or the performance by the Company or any of its
Restricted Subsidiaries of its obligations under any future amendment to any
such existing agreement or under any similar agreement entered into after the
Issue Date shall only be permitted by this clause to the extent that the terms
of any such amendment or new agreement are not otherwise disadvantageous to the
Holders of the Notes in any material respect;

 

(xi) transactions with customers, clients, suppliers or
purchasers or sellers of goods or services, in each case in the ordinary course
of business and otherwise in compliance with the terms of this Indenture, which
are fair to the Company and its Restricted Subsidiaries in the reasonable
determination of the Board of Directors or the senior management of the
Company, or are on terms at least as favorable as might reasonably have been
obtained at such time from an unaffiliated party;

 

(xii)    the issuance of Capital Stock (other than Disqualified
Stock) of the Company or IDSs in respect of the Company’s securities (including
such securities represented thereby) or Additional Notes or other Pari Passu
Indebtedness evidenced by a different series of notes or shares of the
Company’s Capital Stock to any Permitted Holder.

 

SECTION 4.08. Liens.  The Company will not, and will not permit
any of its Restricted Subsidiaries to, directly or indirectly, create, Incur or
suffer to exist any Lien on any asset or property of the Company or such
Restricted Subsidiary, or any income or profits therefrom, or assign or convey
any right to receive income therefrom, that secures any Indebtedness of the
Company or any of its Subsidiaries (other than Senior Indebtedness) unless the
Notes are equally and ratably secured with (or on a senior basis to, in the
case of Indebtedness subordinated in right of payment to the Notes) the
Indebtedness so secured or until such time as such obligations are no longer
secured by a Lien.  The preceding
sentence will not require the Company or any Restricted Subsidiary to secure
the Notes if the Lien consists of a Permitted Lien.

 

55

 

No Guarantor shall directly or indirectly
create, Incur or suffer to exist any Lien on any asset or property of such
Guarantor or any income or profits therefrom, or assign or convey any right to
receive income therefrom, that secures any Indebtedness of such Guarantor
(other than Senior Indebtedness of such Guarantor) unless the Guarantee of such
Guarantor is equally and ratably secured with (or on a senior basis to, in the
case of Indebtedness subordinated in right of payment to such Guarantor’s
Guarantee) the Indebtedness so secured or until such time as such obligations
are no longer secured by a Lien.  The
preceding sentence will not require any Guarantor to secure its Guarantee if
the Lien consists of a Permitted Lien.

 

SECTION 4.09. Change
of Control.  (a)  Upon the occurrence of a Change of Control,
each Holder shall have the right to require that the Company repurchase all or
any part of such Holder’s Notes at a purchase price in cash equal to 101% of
the principal amount thereof, plus accrued and unpaid interest, if any, to but
not including the date of repurchase (subject to the right of Holders of record
on the relevant record date to receive interest due on the relevant interest
payment date that is on or prior to the date of purchase), in accordance with
the terms contemplated in Section 4.09(b) ; provided, however,
that notwithstanding the occurrence of a Change of Control, the Company shall
not be obligated to purchase the Notes pursuant to this Section 4.09 in the
event that it has exercised its right to redeem all the Notes pursuant to
Section 3.07.  In the event that at the
time of such Change of Control the terms of any Senior Lender Indebtedness restrict
or prohibit the repurchase of Notes pursuant to this Section 4.09, then prior
to the mailing of the notice to Holders provided for in Section 4.09(b) below
but in any event within 30 days following any Change of Control, the Company
shall (i) repay in full all Senior Lender Indebtedness or offer to repay in
full all Senior Lender Indebtedness and repay the Senior Lender Indebtedness of
each lender who has accepted such offer or (ii) obtain the requisite consent
under the agreements governing the Senior Lender Indebtedness to permit the repurchase
of the Notes as provided for in Section 4.09(b).

 

(b)   Within 30 days following any Change of Control, unless
the Company has exercised its right to redeem the Notes pursuant to Section
3.07, the Company shall mail a notice (the “Change of Control Offer”) to each
Holder with a copy to the Trustee stating:

 

(1)   that
a Change of Control has occurred and that such Holder has the right to require
the Company to purchase such Holder’s Notes of such series at a purchase price
in cash equal to 101% of the principal amount thereof, plus accrued and unpaid
interest, if any, to but not including the date of repurchase (subject to the
right of Holders of record on the relevant record date to receive interest on
the relevant interest payment date);

 

(2)   the
circumstances and relevant facts and financial information regarding such
Change of Control;

 

(3)   whether
the agreements then governing the Senior Lender Indebtedness will permit the
repurchase of the Notes;

 

(4)   the
repurchase date (which shall be no earlier than 30 days nor later than 60 days
from the date such notice is mailed); and

 

56

 

(5)   the
instructions determined by the Company, consistent with this Section 4.09, that
a Holder must follow in order to have its Notes purchased.

 

(c)   In order to exercise the right to require the Company
to repurchase the Notes, a Holder must separate its IDSs into the shares of
Class A Common Stock and Notes represented thereby.

 

(d)   Notwithstanding the foregoing provisions of this
Section 4.09, the Company shall not be required to make a Change of Control
Offer upon a Change of Control if a third party makes the Change of Control
Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Section 4.09(b) applicable to a Change of
Control Offer made by the Company and purchases all Notes validly tendered and
not withdrawn under such Change of Control Offer.

 

(e)   The Company shall comply, to the extent applicable,
with the requirements of Section 14(e) of the Exchange Act and any other U.S.
securities laws or regulations in connection with the repurchase of Notes
pursuant to this Section 4.09.  To the
extent that the provisions of any securities laws or regulations conflict with
provisions of this Section 4.09, the Company shall comply with the applicable
securities laws and regulations and shall not be deemed to have breached its
obligations under this Section 4.09 by virtue thereof.

 

SECTION 4.10. Compliance Certificate.  The Company shall deliver to the Trustee
within 120 days after the end of each fiscal year of the Company commencing
with the fiscal year ending on December 31, 2004, an Officers’ Certificate
stating that in the course of the performance by the signers of their duties as
officers of the Company they would normally have knowledge of any Default and
whether or not the signers know of any Default that occurred during such
period.  If they do, the certificate
shall describe the Default, its status and what action the Company is taking or
proposes to take with respect thereto. 
The Company also shall comply with Section 314(a)(4) of the TIA.

 

SECTION 4.11. Further Instruments and Acts.  Upon request of the Trustee or as otherwise
necessary, the Company shall execute and deliver such further instruments and
do such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

 

SECTION 4.12. Future Guarantors.  The Company shall cause each Restricted
Subsidiary organized under the laws of the United States of America or any
state or territory thereof that Incurs Indebtedness or issues shares of
Disqualified Stock or Preferred Stock (other than Mid-Missouri Telephone
Company or any other Restricted Subsidiary that cannot guarantee Indebtedness
without obtaining the consent or waiver of any U.S. federal or state regulatory
or governmental agency or body) to execute and deliver to the Trustee a
supplemental indenture in the form of Exhibit B hereto pursuant to which
such Subsidiary shall guarantee payment of the Notes.

 

SECTION 4.13. Limitation on Layering. The
Company shall not incur, create, issue, assume, guarantee or otherwise become
liable for any Indebtedness that is contractually subordinate or junior in
right of payment to any Senior Indebtedness of the Company and senior

 

57

 

in right of payment to the Notes. No Guarantor shall incur, create,
issue, assume, guarantee or otherwise become liable for any Indebtedness that
is contractually subordinate or junior in right of payment to the Senior
Indebtedness of such Guarantor and senior in right of payment to such
Guarantor’s Guarantee, provided, however, that this Section 4.13
shall not apply to distinctions between categories of Indebtedness that exist
by reason of any Liens or Guarantees securing or in favor of some but not all
of such Indebtedness or securing such Indebtedness with greater or lesser
priority or with different collateral.

 

SECTION 4.14. Subsequent Issuance.

 

(a)   The Company may issue Additional Notes:

 

(i)   in connection with the exchange of shares of Class B
Common Stock of the Company outstanding on the Issue Date (or Class B common
stock issued or distributed in respect of, or in substitution for, Class B
common stock outstanding on the Issue Date, in connection with any stock split
or combination); or

 

(ii)  for other purposes so long as the Incurrence of
Indebtedness evidenced by such Additional Notes is permitted under Section 4.03
hereof.

 

(b)   Any Additional Notes will vote on all matters with the
Notes issued in the Offering. The Additional Notes will be deemed to have the
same accrued current period interest, deferred interest and defaults as the
Notes issued in the Offering and will be deemed to have expended Payment
Blockage Periods and interest deferral periods to the same extent as the Notes
issued in the Offering.

 

(c)   The Company agrees, and by purchasing the Notes each
Holder shall be deemed to have agreed, that in the event there is an issuance
of Additional Notes with original issue discount (and any issuance of
Additional Notes thereafter), each Holder of the Notes agrees that a portion of
such Holder’s Notes (whether held directly in book-entry form or held as part
of IDSs) will be exchanged, without any further action of such Holder, for a
portion of the Additional Notes purchased by the Holders of such Additional
Notes, such that, following any such additional issuance and exchange, each
Holder of the Notes or the IDSs (as the case may be) owns an indivisible unit
composed of the Notes and Additional Notes of each issuance in the same
proportion as each other Holder, and the records of DTC and the Trustee will be
revised to reflect each such exchange without any further action of such Holder
(each such exchange, an “Automatic Exchange”). The aggregate principal amount
of the Notes owned by each Holder will not change as a result of an Automatic
Exchange. Any Additional Notes will be guaranteed by the Guarantors on the same
basis as the Original Notes.

 

(d)   The Company may issue Additional Notes only if it
delivers to the Trustee prior to or simultaneously with such issuance (i) an
opinion of tax counsel to the effect that the Additional Notes should be
treated as debt for U.S. federal income tax purposes and (ii) an Opinion of
Counsel to the effect that the Additional Notes and the related Guarantees
constitute valid and binding obligations of the Company and the respective
Guarantors

 

58

 

entitled to the benefits of the Indenture and
are enforceable against the Company and the respective Guarantors in accordance
with their terms. In addition, if an issuance of Additional Notes would trigger
the automatic exchange provisions of this Indenture, the Company may not issue
such Additional Notes unless it delivers to the Trustee on the date of such
issuance a certificate of the Company’s principal financial officer in the form
of Exhibit C hereto.

 

ARTICLE 5

 

SUCCESSOR
COMPANY

 

SECTION 5.01. Merger,
Consolidation or Sale of All or Substantially All Assets.  (a) 
The Company may not consolidate or merge with or into or wind up into
(whether or not the Company is the surviving corporation), or sell, assign,
transfer, lease, convey or otherwise dispose of all or substantially all of its
properties or assets in one or more related transactions, to any Person unless:

 

(i)   the Company is the surviving corporation or the Person
formed by or surviving any such consolidation or merger (if other than the
Company) or to which such sale, assignment, transfer, lease, conveyance or
other disposition will have been made is a corporation, partnership or limited
liability company organized or existing under the laws of the United States,
any state thereof, the District of Columbia, or any territory thereof (the
Company or such Person, as the case may be, being herein called the “Successor
Company”);

 

(ii)  the Successor Company (if other than the Company)
expressly assumes all the obligations of the Company under this Indenture and
the Notes pursuant to a supplemental indenture or other documents or
instruments in form reasonably satisfactory to the Trustee;

 

(iii) immediately after giving effect to such transaction
(and treating any Indebtedness which becomes an obligation of the Successor Company
or any of its Restricted Subsidiaries as a result of such transaction, as
having been Incurred by the Successor Company or such Restricted Subsidiary at
the time of such transaction) no Default or Event of Default shall have
occurred and be continuing;

 

(iv) immediately after giving pro forma effect to such
transaction, as if such transaction had occurred at the beginning of the
applicable four-quarter period, either (A) the Successor Company would be
permitted to Incur at least $1.00 of additional Indebtedness pursuant to the
Leverage Ratio test set forth in the first sentence of Section 4.03 or (B) the
Leverage Ratio for the Successor Company and its Restricted Subsidiaries would
be less than or equal to such ratio for the Company and its Restricted
Subsidiaries immediately prior to such transaction;

 

(v)  each Guarantor, unless it is the other party to the
transactions described above, shall have by supplemental indenture confirmed
that its

 

59

 

Guarantee
shall apply to the Successor Company’s obligations under this Indenture and the
Notes; and

 

(vi) the Company shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger or transfer and such supplemental indenture (if any)
comply with this Indenture.

 

The Successor Company will succeed to, and be
substituted for, the Company under this Indenture and the Notes.  Notwithstanding clauses (iii) and (iv)
above, (a) any Restricted Subsidiary may consolidate with, merge into or
transfer all or part of its properties and assets to the Company or to another
Restricted Subsidiary; and (b) the Company may merge with an Affiliate
incorporated solely for the purpose of reincorporating the Company in another
state of the United States so long as the amount of Indebtedness of the Company
and its Restricted Subsidiaries is not increased thereby.

 

(b)   Subject to Section 11.02(b) hereof, each Guarantor
shall not, and the Company shall not permit a Guarantor to, consolidate or
merge with or into or wind up into (whether or not such Guarantor is the
surviving corporation), or sell, assign, transfer, lease, convey or otherwise
dispose of all or substantially all of its properties or assets in one or more related
transactions to, any Person unless:

 

(i)   such Guarantor is the surviving corporation or the
Person formed by or surviving any such consolidation or merger (if other than
such Guarantor) or to which such sale, assignment, transfer, lease, conveyance
or other disposition will have been made is a corporation, partnership or
limited liability company organized or existing under the laws of the United
States, any state thereof, the District of Columbia, or any territory thereof
(such Guarantor or such Person, as the case may be, being herein called the
“Successor Guarantor”);

 

(ii)  the Successor Guarantor (if other than such Guarantor)
expressly assumes all the obligations of such Guarantor under this Indenture
and such Guarantor’s Guarantee pursuant to a supplemental indenture or other
documents or instruments in form reasonably satisfactory to the Trustee;

 

(iii) immediately after giving effect to such transaction
(and treating any Indebtedness which becomes an obligation of the Successor
Guarantor or any of its Subsidiaries as a result of such transaction as having
been Incurred by the Successor Guarantor or such Subsidiary at the time of such
transaction) no Default or Event of Default shall have occurred and be
continuing; and

 

(iv) the Guarantor shall have delivered or caused to be
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel,
each stating that such consolidation, merger or transfer and such supplemental
indenture (if any) comply with this Indenture.

 

60

 

Subject to the limitations set forth in this
Indenture, the Successor Guarantor shall succeed to, and be substituted for,
such Guarantor under this Indenture and such Guarantor’s Guarantee.  Notwithstanding clause (iii) of this Section
5.01(b), a Guarantor may merge with an Affiliate incorporated solely for the
purpose of reincorporating such Guarantor in another jurisdiction so long as
the amount of Indebtedness of the Guarantor is not increased thereby.

 

ARTICLE 6

 

DEFAULTS
AND REMEDIES

 

SECTION 6.01. Events
of Default.  An “Event of
Default” means:

 

(a)   a default in any payment of interest on any Note when
due, whether or not such payment shall be prohibited by the provisions of
Article 10, continued for 30 days, subject to the interest deferral provisions
contained in Section 4.01 hereof; provided, however, that a
default in any payment of interest on the Note required to be made on [       ], 2009 shall immediately constitute an
Event of Default (without regard to the length of time for which such default
continues);

 

(b)   a default in the payment of principal or premium, if
any, of any Note when due at its Stated Maturity, upon optional redemption,
upon required repurchase, upon declaration or otherwise, whether or not such payment
shall be prohibited by Article 10;

 

(c)   the failure by the Company to comply with Section 5.01
of this Indenture;

 

(d)   the failure by the Company to comply for 30 days,
after notice to it, with Sections 4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08,
4.09, 4.12 or 4.13 (in each case, other than a failure to purchase Notes);

 

(e)   the failure by the Company to comply for 60 days after
notice with its other agreements contained in the Notes or this Indenture;

 

(f) the failure by the Company or any Significant
Subsidiary to pay any Indebtedness (other than Indebtedness owing to the
Company or a Restricted Subsidiary) within any applicable grace period after
final maturity or the acceleration of any such Indebtedness by the holders
thereof because of a default if the total amount of such Indebtedness unpaid or
accelerated exceeds $7.5 million or its foreign currency equivalent;

 

(g)   the Company or any Significant Subsidiary, pursuant to
or within the meaning of Bankruptcy Law:

 

(i)   commences a voluntary case under Bankruptcy Law;

 

(ii)  consents to the entry of an order for relief against
it in an involuntary case under Bankruptcy Law;

 

(iii) consents to the appointment of a Custodian of it or
for all or substantially all of its property; or

 

61

 

(iv) makes a general assignment for the benefit of its
creditors;

 

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

 

(i)   is for relief against the Company or any of its
Significant Subsidiaries in an involuntary case;

 

(ii)  appoints a Custodian of the Company or any of its
Significant Subsidiaries or for all or substantially all of the property of the
Company or any of its Significant Subsidiaries; or

 

(iii) orders the winding up or liquidation of the Company or
any Significant Subsidiary;

 

and the order
or decree remains unstayed and in effect for 60 days;

 

(i) the rendering of any judgment or decree for the
payment of money (other than judgments which are covered by enforceable insurance
policies issued by solvent carriers) in excess of $7.5 million or its foreign
currency equivalent against the Company or a Significant Subsidiary if (A) an
enforcement proceeding thereon is commenced and not discharged or stayed within
60 days thereafter or (B) such judgment or decree remains outstanding for a
period of 60 days following such judgment and is not discharged, waived or
stayed (the “judgment default provision”);

 

(j) any Guarantee ceases to be in full force and effect,
except as contemplated by the terms thereof, or any Guarantor denies or
disaffirms its obligations under this Indenture or any Guarantee and the
Default continues for 10 days; or

 

(k)   except as permitted by clause (1) of Section 4.04, the
Company pays any dividend on shares of the Common Stock (A) during the period
that any interest is being deferred, so long as any deferred interest and
accrued interest thereon has not been paid in full or (B) during a Dividend
Suspension Period or the continuance of an Event of Default.

 

The foregoing shall constitute Events of
Default whatever the reason for any such Event of Default and whether it is
voluntary or involuntary or is effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body.

 

However, a Default under clause (d) or (e)
shall not constitute an Event of Default until the Holders of 25% in principal
amount of the outstanding Notes notify the Company of the Default and the Company
does not cure such Default within the time specified in clause (d) or (e), as
the case may be, after receipt of such notice. 
Such notice must specify the Default, demand that it be remedied and
state that such notice is a “Notice of Default.”  When a Default or Event of Default is cured, it ceases.

 

The Company shall deliver to the Trustee,
within 30 days after the occurrence thereof, written notice in the form of an
Officers’ Certificate of any Event of Default and any event

 

62

 

which with the
giving of notice or the lapse of time would become an Event of Default under,
its status and what action the Company is taking or proposes to take with
respect thereto.

 

SECTION 6.02. Acceleration.

 

(a)   If an Event of Default (other than an Event of Default
specified in Section 6.01(g) or (h)) occurs and is continuing, the Trustee by
notice to the Company, or the Holders of at least 25% in principal amount of
the outstanding Notes, by notice in writing to the Company and the
Representative under the Credit Agreement, may declare the principal of,
premium, if any, and accrued but unpaid interest on all the Notes to be due and
payable, subject to the provisio in the next sentence and to clause (b) of this
Section 6.02.  Upon such a declaration,
such principal and interest shall be due and payable immediately; provided
that so long as there are any amounts outstanding under the Credit Agreement,
such declaration of acceleration shall not be effective until the earlier of
(1) the acceleration of any Indebtedness under the Credit Agreement or (2) five
business days after receipt by the Company and the Representative under the
Credit Agreement of written notice of declaration of acceleration of
Indebtedness hereunder.  If an Event of
Default specified in Section 6.01(g) or (h) occurs, the principal of, premium,
if any, and interest on all the Notes shall become and be immediately due and
payable without any declaration or other act on the part of the Trustee or any
Holders.

 

(b)   After a declaration of acceleration has been made, but
before a judgment or decree for payment of the money due has been obtained by
the Trustee, the holders of a majority in aggregate principal amount of Notes
outstanding, by written notice to the Trustee, may annul such declaration and
its consequences if all Events of Default, other than the non-payment of
principal of the Notes which have become due solely by such declaration of
acceleration, have been cured or waived.

 

(c)   In the event of a declaration of acceleration of the
Notes because an Event of Default has occurred and is continuing as a result of
the acceleration of any Indebtedness described in Section 6.01(f) above, the
declaration of acceleration of the Notes shall be automatically annulled if the
Holders of all Indebtedness described in Section 6.01(f) have rescinded the
declaration of acceleration in respect of such Indebtedness within 30 Business
Days of the date of such declaration, and if the annulment of the acceleration
of the Notes would not conflict with any judgment or decree of a court of
competent jurisdiction, and all existing Events of Default, except non-payment
of principal or interest on the Notes that became due solely because of the
acceleration of the Notes, have been cured or waived.

 

SECTION 6.03. Other
Remedies.  If an Event of
Default occurs and is continuing, the Trustee may pursue any available remedy
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 an Event
of Default shall not impair the right or remedy or constitute a waiver of or
acquiescence in the Event of Default. 
No remedy is exclusive of any other remedy.  All available remedies are cumulative.

 

63

 

SECTION 6.04. Waiver of Past Defaults.

 

(a)   The Holders of a majority in principal amount of the
Notes Outstanding of all series affected by such waiver by notice to the
Trustee may on behalf of the Holders of all such Notes waive any existing Default
or Event of Default and its consequences except (i) a continuing Default or an
Event of Default in the payment of the principal of or premium, if any, or
interest on a Note or (ii) any Default or Event of Default in respect of a
provision that under Section 9.02 cannot be amended without the consent of each
Holder affected.  Upon any such waiver,
such Default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured, for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other Default or Event of Default
or impair any right consequent thereon. 
In case of any such waiver, the Company, any other obligor upon the
Notes, the Trustee and the Holders shall be restored to their former positions
and rights hereunder and under the Notes, respectively.  This paragraph of this Section 6.04(a) shall
be in lieu of § 316(a)(1)(B) of the TIA and such § 316(a)(1)(B) of the TIA is
hereby expressly excluded from this Indenture and the Notes, as permitted by
the TIA.

 

(b)   In the event of any Event of Default specified in
Section 6.01(d), such Event of Default and all consequences thereof (including
without limitation any acceleration or resulting payment default) shall be
annulled, waived and rescinded, automatically and without any action by the
Trustee or the Holders, if within 20 days after such Event of Default arose
(x) the Indebtedness or guarantee that is the basis for such Event of
Default has been discharged, or (y) the Holders thereof have rescinded or
waived the acceleration, notice or action (as the case may be) giving rise to
such Event of Default, or (z) if the default that is the basis for such Event
of Default has been cured.

 

SECTION 6.05. Control by Majority.  The Holders of a majority in principal
amount of the Notes may direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or of exercising any trust
or power conferred on the Trustee. 
However, the Trustee may refuse to follow any direction that conflicts
with law or this Indenture or, subject to Section 7.01, that the Trustee
determines is unduly prejudicial to the rights of other Holders or would
involve the Trustee in personal liability; provided, however,
that the Trustee may take any other action deemed proper by the Trustee that is
not inconsistent with such direction. 
Prior to taking any action hereunder, the Trustee shall be entitled to
indemnification satisfactory to it in its sole discretion against all losses
and expenses caused by taking or not taking such action.

 

SECTION 6.06. Limitation on Suits.  Subject to the provisions of Article 9
relating to the duties of the Trustee, in case an Event of Default occurs and
is continuing, except to enforce the right to receive payment of principal,
premium (if any) or interest when due, no Holder may pursue any remedy with
respect to this Indenture or the Notes unless:

 

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

 

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

 

64

 

(3)   such
Holder or Holders offer to the Trustee security or indemnity reasonably
satisfactory to it against any loss, liability or expense;

 

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

 

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

 

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

 

SECTION 6.07. Rights of Holders to Receive Payment.  Subject to Sections 10.15 and 12.15 hereof,
the right of any Holder to receive payment of principal of and interest on the
Notes held by such Holder, on or after the respective due dates expressed in
the Notes, or to bring suit for the enforcement of any such payment on or after
such respective dates, shall not be impaired or affected without the consent of
such Holder.

 

SECTION 6.08. Collection Suit by Trustee.  If an Event of Default specified in Section
6.01(a) or (b) occurs and is continuing, the Trustee may recover judgment in
its own name and as trustee of an express trust against the Company for the
whole amount then due and owing (together with interest on any unpaid interest
to the extent lawful) and the amounts provided for in Section 7.07.

 

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 and the Holders allowed in any judicial proceedings
relative to the Company, any Subsidiary or Guarantor, their creditors or their
property and, unless prohibited by law or applicable regulations, may vote on
behalf of the Holders in any election of a trustee in bankruptcy or other
Person performing similar functions, and any Custodian in any such judicial
proceeding is hereby authorized by each Holder to make 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 it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and its counsel, and any other amounts due the Trustee under Section
7.07.

 

SECTION 6.10. Trustee
May Enforce Claims Without Possession of Notes.  All rights of action and claims under this
Indenture or the Notes may be prosecuted and enforced by the Trustee without
the possession of any of the Notes or the production thereof in any proceeding
relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of
judgment shall, after provision for the payment of the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, be
for the ratable benefit of the Holders of the Notes in respect of which such
judgment has been recovered.

 

65

 

SECTION 6.11. Priorities.  If the Trustee collects any money or
property pursuant to this Article 6, it shall pay out the money or property in
the following order:

 

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

 

SECOND: 
to holders of Senior Indebtedness of the Company to the extent required
by Article 10;

 

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

 

FOURTH: to the Company or any other obligor
on the Notes or as a court of competent jurisdiction shall direct in writing.

 

The Trustee may fix a record date and payment
date for any payment to Holders pursuant to this Section 6.11.  At least 15 days before such record date,
the Trustee shall mail to each Holder and the Company a notice that states the
record date, the payment date and amount to be paid.

 

SECTION 6.12. 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 6.12 does not apply to a suit by the Trustee, a suit by a
Holder pursuant to Section 6.07 or a suit by Holders of more than 10% in
principal amount of the Notes.

 

SECTION 6.13. Waiver of Stay or Extension Law.  Neither the Company nor any Guarantor (to
the extent it may lawfully do so) shall at any time insist upon, or plead, or
in any manner whatsoever claim or take the benefit or advantage of, any stay or
extension law wherever enacted, now or at any time hereafter in force, which
may affect the covenants or the performance of this Indenture; and the Company
and each Guarantor (to the extent that it may lawfully do so) hereby expressly
waive all benefit or advantage of any such law, and shall not hinder, delay or
impede the execution of any power herein granted to the Trustee, but shall
suffer and permit the execution of every such power as though no such law had
been enacted.

 

ARTICLE 7

 

TRUSTEE

 

SECTION 7.01. Duties
of Trustee.  (a)  If an Event of Default has occurred and is
continuing, the Trustee shall exercise 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
such Person’s own affairs.

 

66

 

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

 

(1)   the
Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and

 

(2)   in
the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Trustee and conforming
to the requirements of this Indenture. 
However, in the case of certificates or opinions specifically required
by any provision hereof to be furnished to it, the Trustee shall examine the
certificates and opinions to determine whether or not they conform to the
requirements of this Indenture.

 

(c)   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 paragraph (b) of this Section;

 

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

 

(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)   Every provision of this Indenture that in any way
relates to the Trustee is subject to paragraphs (a), (b) and (c) of this
Section.

 

(e)   The Trustee shall not be liable for interest on any
money received by it except as the Trustee may agree in writing with the
Company.

 

(f) Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

 

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

 

(h)   Every provision of this Indenture relating to the
conduct or affecting the liability of or affording protection to the Trustee
shall be subject to the provisions of this Section 7.01 and to the provisions
of the TIA.

 

67

 

SECTION 7.02. Rights
of Trustee.

 

(a)   The Trustee may conclusively rely on any document
believed by it to be genuine and to have been signed or presented by the proper
person.  The Trustee need not
investigate any fact or matter stated in the document.

 

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

 

(c)   The Trustee may act through 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 believes to be authorized or
within its rights or powers; provided, however, that the
Trustee’s conduct does not constitute willful misconduct or negligence.

 

(e)   The Trustee may consult with counsel, and the advice
or opinion of counsel with respect to legal matters relating to this Indenture
and the Notes shall be full and complete authorization and protection from
liability in respect to 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 not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval, bond,
debenture, note or other paper or document unless requested in writing to do so
by the Holders of not less than a majority in principal amount of the Notes at
the time outstanding, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit, and, if
the Trustee shall determine to make such further inquiry or investigation, it
shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney at the expense of the Company and shall
incur no liability of any kind by reason of such inquiry or investigation.

 

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

 

(h)   The Trustee shall not be deemed to have notice of any
Default or Event of Default unless an officer of the Trustee has actual
knowledge thereof or unless written notice of any event which is in fact such a
default is received by the Trustee at the Corporate Trust Office of the
Trustee, and such notice references the Notes and this Indenture.

 

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

 

68

 

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

 

SECTION 7.03. Individual Right of Trustee.  The Trustee in its individual or any other
capacity may become the owner or pledgee of Notes and may otherwise deal with
the Company or its Affiliates with the same rights it would have if it were not
Trustee.  Any Paying Agent, Registrar or
co-paying agent may do the same with like rights.  However, the Trustee must 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 Company’s use of the proceeds from
the Notes, and it shall not be responsible for any statement of the Company in
this Indenture or in any document issued in connection with the sale of the
Notes or in the Notes other than the Trustee’s certificate of authentication.

 

SECTION 7.05. Notice of Defaults.  If a Default occurs and is continuing and is
known to the Trustee, the Trustee shall mail to each Holder notice of the
Default within the earlier of 90 days after it occurs or 30 days after it is
actually known to a Trust Officer or written notice of it is received by the
Trustee.  Except in the case of a Default
in payment of principal of, premium (if any) or interest (including deferred
interest) on any Note, the Trustee may withhold notice if and so long as a
committee of its Trust Officers in good faith determines that withholding
notice is in the interests of Holders.

 

SECTION 7.06. Reports by Trustee to Holders.  As promptly as practicable after each May 15
beginning with the May 15 following the date of this Indenture, and in any
event prior to July 15 in each year, the Trustee shall mail to each Holder a
brief report dated as of July 15 that complies with Section 313(a) of the
TIA.  The Trustee shall also comply with
Section 313(b) of the TIA.

 

SECTION 7.07. Compensation and Indemnity. The
Company shall pay to the Trustee from time to time reasonable compensation for
its services.  The Trustee’s
compensation shall not be limited by any law on compensation of a trustee of an
express trust.  The Company shall
reimburse the Trustee upon request for all reasonable out-of-pocket expenses
incurred or made by it in accordance with the provisions of this Indenture,
including costs of collection, in addition to the compensation for its
services, except for any such expenses as may be attributable to its
negligence, bad faith or willful misconduct. 
Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Trustee’s agents, counsel, accountants and
experts.  The Company and each
Guarantor, jointly and severally, shall indemnify the Trustee against any and
all loss, liability, claim, damage or expense (including reasonable attorneys’
fees and expenses) incurred by or in connection with the administration of this
trust and the performance of its duties hereunder without negligence, bad faith
or willful misconduct.  The Trustee
shall notify the Company of any claim for which it may seek indemnity promptly
upon obtaining actual knowledge thereof; provided, however, that
any failure so to notify the

 

69

 

Company shall not relieve the Company or any Guarantor of its indemnity
obligations hereunder.  The Company
shall defend the claim and the indemnified party shall provide reasonable
cooperation at the Company’s expense in the defense of such claim.  Such indemnified parties may together have
one counsel at any time and the Company and the Guarantors, as applicable shall
pay the fees and expenses of such counsel; provided, however,
that the Company shall not be required to pay such fees and expenses if it
assumes such indemnified parties’ defense and, in such indemnified parties’
reasonable judgment, there is no conflict of interest between the Company and
the Guarantors, as applicable, and such parties in connection with such
defense.  The Company need not reimburse
any expense or indemnify against any loss, liability, claim, damage or expense
incurred by an indemnified party through such party’s own negligence, bad faith
or willful misconduct.

 

To secure the Company’s payment obligations
in this Section, the Trustee shall have a lien prior to the Notes on all money
or property held or collected by the Trustee other than money or property held
in trust to pay principal of and interest on particular Notes.

 

The Company’s payment obligations pursuant to
this Section shall survive the satisfaction or discharge of this Indenture, any
rejection or termination of this Indenture under any Bankruptcy Law or the
resignation or removal of the Trustee. 
When the Trustee incurs expenses after the occurrence of a Default
specified in Section 6.01(i) or (j) with respect to the Company, the expenses
are intended to constitute expenses of administration under the Bankruptcy Law.

 

SECTION 7.08. Replacement of Trustee.  The Trustee may resign at any time by so
notifying the Company in writing.  The
Holders of a majority in principal amount of the Notes may remove the Trustee
by so notifying the Trustee and may appoint a successor Trustee.  The Company shall remove the Trustee if:

 

(1)   the
Trustee fails to comply with Section 7.10 or 7.11;

 

(2)   the
Trustee is adjudged bankrupt or insolvent;

 

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

 

(4)   the
Trustee otherwise becomes incapable of acting.

 

If the Trustee resigns, is removed by the
Company or by the Holders of a majority in principal amount of the Notes and
such Holders do not reasonably promptly appoint a successor Trustee, or if a
vacancy exists in the office of Trustee for any reason (the Trustee in such
event being referred to herein as the retiring Trustee), the Company shall
promptly appoint a successor Trustee.

 

No resignation or removal of the Trustee and
no appointment of a successor Trustee pursuant to this Article shall become
effective until the acceptance of appointment by the successor Trustee in accordance
with the applicable requirements of this Section 7.08.

 

70

 

A successor Trustee shall deliver a written
acceptance of its appointment to the retiring Trustee and to the Company.  Thereupon 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.  The successor Trustee shall mail a notice of
its succession to Holders.  The retiring
Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee, subject to the lien provided for in Section 7.07.

 

If a successor Trustee does not take office
within 60 days after the retiring Trustee resigns or is removed, the retiring
Trustee or the Holders of 10% in principal amount of the Notes may petition, at
the expense of the Company, any court of competent jurisdiction for the
appointment of a successor Trustee.

 

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 the replacement of the
Trustee pursuant to this Section, the Company’s obligations under Section 7.07
shall continue for the benefit of the retiring Trustee.

 

SECTION 7.09. Successor Trustee by Merger.  If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all its corporate trust
business or assets to, another corporation or banking association, the
resulting, surviving or transferee corporation without any further act shall be
the successor Trustee.

 

In case at the time such successor or
successors by merger, conversion or consolidation to the Trustee shall succeed
to the trusts created by this Indenture any of the Notes shall have been
authenticated but not delivered, any such successor to the Trustee may adopt
the certificate of authentication of any predecessor trustee, and deliver such
Notes so authenticated with the same effect as if such successor Trustee had
itself authenticated the Notes, and in case at that time any of the Notes shall
not have been authenticated, any successor to the Trustee may authenticate such
Notes either in the name of any predecessor hereunder or in the name of the
successor to the Trustee; and in all such cases such certificates shall have
the full force as provided anywhere in the Notes or in this Indenture that the
certificate of the Trustee shall have.

 

SECTION 7.10. Eligibility; Disqualification.  The Trustee shall at all times satisfy the
requirements of Section 310(a) of the TIA. 
The Trustee shall have a combined capital and surplus of at least
$50,000,000 as set forth in its most recent published annual report of
condition.  The Trustee shall comply
with Section 310(b) of the TIA; provided, however, that there
shall be excluded from the operation of Section 310(b)(1) of the TIA any
indenture or indentures under which other securities or certificates of
interest or participation in other securities of the Company are outstanding if
the requirements for such exclusion set forth in Section 310(b)(1) of the TIA
are met.

 

SECTION 7.11. Conflicting Interests.  If the Trustee has or shall acquire a
conflicting interest within the meaning of the TIA, the Trustee shall eliminate
such interest, apply to the SEC for permission to continue as Trustee with such
conflict or resign, to the extent and in the manner provided by, and subject to
the provisions of, the TIA and this Indenture. 
To the extent permitted by the TIA, the Trustee shall not be deemed to
have a conflicting interest by

 

71

 

virtue of being a trustee under this Indenture with respect to Original
Notes and Additional Notes, or a trustee under any other indenture between the
Company and the Trustee.

 

SECTION 7.12. Preferential Collection of Claims Against
Company .  The Trustee shall
comply with Section 311(a) of the TIA, excluding any creditor relationship
listed in Section 311(b) of the TIA.  A
Trustee who has resigned or been removed shall be subject to Section
311(a) of the TIA to the extent indicated. 
The Trustee herby waives any right to set-off any claim that it may have
against the Company in any capacity (other than as Trustee and Paying Agent)
against any of the assets of the Company held by the Trustee; provided, however,
that if the Trustee is or becomes a lender of any other Indebtedness permitted
hereunder to be Pari Passu with the notes, then such waiver shall not apply to
the extent of such Indebtedness.

 

ARTICLE 8

 

DISCHARGE
OF INDENTURE; DEFEASANCE

 

SECTION 8.01. Satisfaction and Discharge of Indenture.  (a) 
This Indenture shall, subject to Section 8.01(c), cease to be of further
effect as to all Notes issued hereunder and the Trustee, on demand of and at
the expense of the Company, accompanied by an Officers’ Certificate and an
Opinion of Counsel, shall execute proper instruments acknowledging satisfaction
and discharge of this Indenture, when either

 

(i) all Notes that have been authenticated
(except lost, stolen or destroyed Notes that have been replaced or paid and
Notes for whose payment money has theretofore been deposited in trust and
thereafter repaid to the Company) have been delivered to the Trustee for
cancellation; or

 

(ii) (A) all Notes that have not been
delivered to the Trustee for cancellation have become due and payable by reason
of the making of a notice of redemption or otherwise or will become due and
payable within one year and the Company or any Guarantor has irrevocably
deposited or caused to be deposited with the Trustee as trust funds in trust
solely for the benefit of the Holders, Cash Equivalents, Investment Grade
Securities, or a combination thereof, in such amounts as will be sufficient
without consideration of any reinvestment of interest, to pay and discharge the
entire indebtedness on the Notes not delivered to the Trustee for cancellation
for principal, premium and additional interest, if any, and accrued interest to
the date of maturity or redemption;

 

(B) no Event of Default (other than one
resulting solely from the borrowing of funds or the granting of any Liens to
provide such deposit) shall have occurred and be continuing on the date of such
deposit or shall occur as a result of such deposit and such deposit will not
result in a breach or violation of, or constitute a default under, any other
instrument to which the Company or any Guarantor is a party or by which the
Company or any Guarantor is bound;

 

(C) the Company or any Guarantor has paid or
caused to be paid all sums payable by it under this Indenture; and

 

72

 

(D) the Company has delivered irrevocable
instructions to the Trustee under this Indenture to apply the deposited money
toward the payment of the Notes at maturity or the redemption date, as the case
may be.

 

(b)   Upon satisfaction of the conditions set forth herein
and upon request of the Company, the Trustee shall acknowledge in writing the
satisfaction and discharge of this Indenture.

 

(c)   Notwithstanding clauses (a) and (b) above, the
Company’s obligations under Sections 2.04, 2.05, 2.06, 2.07, 2.08, 2.09, 2.10,
7.07, 7.08 and this Article 8 shall survive until the Notes have been paid in
full.  Thereafter, the Company’s
obligations in Sections 7.07, 8.04 and 8.05 shall survive such satisfaction and
discharge.

 

SECTION 8.02. Legal and Covenant Defeasance; Conditions to
Defeasance.

 

(a)   Subject to Section 8.01(c), the Company at any time
may terminate (i) all of its obligations under the Notes and this Indenture
(“legal defeasance option”) or (ii) its obligations under Sections 4.02, 4.03,
4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.12 and 4.13, the operation of 6.01(f),
6.01(g) and 6.01(h) (with respect to Subsidiaries of the Company only), and the
judgment default provision specified in Section 6.01(i) and the limitations
specified in Section 5.01(a)(iv) 
(“covenant defeasance option”). 
The Company may exercise its legal defeasance option notwithstanding its
prior exercise of its covenant defeasance option.  In the event that the Company exercises either its legal
defeasance option or its covenant defeasance option, each Guarantor will be
released from all its obligations with respect to its Guarantee.

 

The Company may exercise its legal defeasance option notwithstanding
its prior exercise of its covenant defeasance option. If the Company exercises
its legal defeasance option, payment of the Notes may not be accelerated
because of an Event of Default with respect thereto. If the Company exercises its
covenant defeasance option, payment of the Notes may not be accelerated because
of an Event of Default specified in Section 6.01(d), (f), (g) with respect only
to Significant Subsidiaries or (h) with respect only to Significant
Subsidiaries or because of the failure of the Company to comply with Section
5.01(a)(iv).

 

 

 

(b)   The Company may exercise its legal defeasance option
or its covenant defeasance option only if:

 

(1)   the
Company irrevocably deposits or causes to be deposited in trust with the Trustee
money or U.S. Government Obligations for the payment of principal, premium (if
any) and interest on the Notes to redemption or maturity, as the case may be;

 

(2)   the
Company delivers to the Trustee an Opinion of Counsel to the effect that
holders of the Notes will not recognize income, gain or loss for U.S. federal
income tax purposes as a result of such deposit and defeasance and will be
subject to U.S. federal income tax on the same amount and in the same manner
and at the same times as would have been the case if such deposit and
defeasance had not occurred (and, in the case of legal defeasance only, such
Opinion of

 

73

 

Counsel must be based on a ruling of the IRS
or other change in applicable U.S. federal income tax law);

 

(3)   on
the date or dates the respective amounts were paid into the trust, such
payments were made with respect to the Notes without violating the
subordination provisions of this Indenture or any other material agreement
binding on the Company, including the Credit Agreement; and

 

(4)   the
deposit does not constitute a default under any other material agreement
binding on the Company and is not prohibited by Article 10.

 

Before or
after a deposit, the Company may make arrangements satisfactory to the Trustee
for the redemption of Notes at a future date in accordance with Article 3.

 

The Trustee shall
hold in trust money or U.S. Government Obligations deposited with it pursuant
to this Article 8.  It shall apply the
deposited money and the money from U.S. Government Obligations through the
Paying Agent and in accordance with this Indenture to the payment of principal
of and interest on the Notes. 
Subjection to Sections 10.03 and 10.04, money and securities so held in
trust are not subject to Article 10.

 

SECTION 8.03.  Repayment to Company.  The Trustee and the Paying Agent shall
promptly turn over to the Company upon request any excess money or securities
held by them at any time.

 

Subject to any applicable abandoned property
law, the Trustee and the Paying Agent shall pay to the Company upon written
request any money held by them for the payment of principal or interest that
remains unclaimed for two years, and, thereafter, Securityholders entitled to
the money must look to the Company for payment as general creditors.

 

SECTION 8.04.  Indemnity
for Government Obligations. 
The Company shall pay and shall indemnify the Trustee against any tax,
fee or other charge imposed on or assessed against deposited U.S. Government
Obligations or the principal and interest received on such U.S. Government
Obligations.

 

SECTION 8.05.  Reinstatement.  If the Trustee or Paying Agent is unable to
apply any money or U.S. Government Obligations in accordance with this Article
8 by reason of any legal proceeding or by reason of any order or judgment of
any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, the Company’s obligations under this Indenture
and the Notes shall be revived and reinstated as though no deposit had occurred
pursuant to this Article 8 until such time as the Trustee or Paying Agent is
permitted to apply all such money or U.S. Government Obligations in accordance
with this Article 8; provided, however, that,
if the Company has made any payment of interest on or principal of any Notes
because of the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders of such Notes to receive such payment
from the money or U.S. Government Obligations held by the Trustee or Paying
Agent.

 

74

 

ARTICLE 9

 

AMENDMENTS

 

SECTION 9.01. Without Consent of Holders.  The Company and the Trustee may amend this
Indenture or the Notes without consent of any Holder to:

 

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

 

(2)   provide
for the assumption by a successor corporation, partnership, limited liability
company or other entity of the obligations of the Company under this Indenture;

 

(3)   provide
for uncertificated Notes in addition to or in place of Physical Notes; provided
that the uncertificated Notes are issued in registered form for purposes of
Section 163(f) of the Internal Revenue Code or in a manner such that the
uncertificated Notes are described in Section 163(f)(2)(B) of the Internal
Revenue Code;

 

(4)   to
make any change in Article 10 or Article 12 that would limit or terminate the
benefits available to any holder of Senior Indebtedness (or Representatives
therefor) under Article 10 or Article 12;

 

(5)   add
Guarantees with respect to the Notes;

 

(6)   secure
the Notes;

 

(7)   add
to the covenants of the Company for the benefit of the Holders or to surrender
any right or power herein conferred upon the Company;

 

(8)   
make any change that does not adversely affect the legal rights under this
Indenture of any Holder to comply with any requirement of the SEC or in
connection with the qualification of this Indenture under the TIA; or

 

(9)   enter
into one or more supplemental indentures to effect any of the amendments set
forth herein or to set forth the terms of and issue any Additional Notes in
accordance with the provisions of this Indenture.

 

Notwithstanding the foregoing, an amendment
under this Section 9.01 may not make any change that adversely affects the
rights under Article 10 or Article 12 of any holder of Senior Indebtedness then
outstanding unless the holders of such Senior Indebtedness (or any group or
representative thereof authorized to give a consent) consent to such change.

 

75

 

SECTION 9.02. With Consent of Holders.  The Company, the Guarantors and the Trustee
may amend this Indenture or the Notes with the written consent of the Holders
of at least a majority in aggregate principal amount of the Notes of all series
affected by such amendment then outstanding.

 

(a)   Without the consent of each Holder affected, an
amendment or waiver may not:

 

(1)   reduce
the amount of Notes whose Holders must consent to an amendment;

 

(2)   reduce
the rate of or extend the time for payment of interest on any Note, or amend
the Company’s right to defer interest on the Notes in a manner adverse to the
Holders;

 

(3)   reduce
the principal of or extend the Stated Maturity of any Note;

 

(4)   reduce
the premium payable upon the redemption of any Note or change the time at which
any Note may be redeemed in accordance with Article 3;

 

(5)   make
any Note payable in money other than that stated in the Note;

 

(6)   make
any change in Article 10 or Article 12 that adversely affects the rights of any
Holder under Article 10 or Article 12;

 

(7)   impair
the right of any Holder to receive payment of principal of, premium, if any,
and interest on such Holder’s Notes on or after the due dates therefor or to
institute suit for the enforcement of any payment on or with respect to such
Holder’s Notes;

 

(8)   except
in connection with an offer by the Company to purchase all of the Notes (in
which case a majority in principal amount of Notes will be sufficient)

 

(A)   make any change to the provisions of Section 4.05 of
this Indenture that eliminate the prohibition on paying dividends while
interest is being deferred, while any previously Deferred Interest remains
unpaid or during a Dividend Suspension Period, or during the continuance of any
Event of Default;

 

(B)   make a change to lower the Interest Coverage Ratio
threshold for a Dividend Suspension Period or make a change to paragraph (c) of
Section 4.04 that would have the effect of increasing the amounts permitted to
be distributed in respect of the Company’s Capital Stock;

 

(C)   waive an Event of Default under Section 6.01(k); or

 

76

 

(9)   make
any change in the amendment provisions which require each Holder’s consent or
in the waiver provisions; or

 

(10) modify
the Guarantees in any manner adverse to the Holders.

 

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 or waiver, but it shall be sufficient if such consent
approves the substance thereof.

 

Notwithstanding the foregoing, an amendment
or waiver under this Section 9.02 may not make any change that adversely
affects the rights under Article 10 or Article 12 of any holder of Senior
Indebtedness then outstanding unless the holders of such Senior Indebtedness
(or any group or representative thereof authorized to give a consent) consent
in writing to such change.

 

(b)   Under the terms of the Credit Agreement, the Company
will not be permitted to effect any amendment or modification of this Indenture
if the effect would be to:

 

(i)   increase the interest rate applicable to the Notes or
any deferred interest on the Notes;

 

(ii)  change to an earlier date the scheduled dates of
payment on any component of principal, interest or other amounts on the Notes;

 

(iii) increase principal repayments or amortization payments
on the Notes;

 

(iv) alter the redemption, prepayment or subordination
provisions of the Notes;

 

(v)  change the subordination provisions of the Notes;

 

(vi) grant any security or collateral to secure payment of
the Notes or provide any additional guaranty (other than a subordinated
guaranty);

 

(vii)   add to or alter the covenants, defaults and Events of
Defaults set forth in this Indenture in a manner that would make such
provisions more onerous or restrictive to the Company; or

 

(viii)  otherwise increase the obligations of the Company or
any Guarantor in respect of the Notes, the deferred interest on the Notes or
confer additional rights upon the Holders thereof which individually or in the
aggregate would be adverse to the Company, any Guarantor or the lenders of the
Senior Lender Indebtedness.

 

SECTION 9.03. Notice
to Holders.  After an
amendment or waiver under this Section becomes effective, the Company shall
mail to Holders, a notice briefly describing such amendment or waiver.  The failure to give such notice to all
Holders, or any defect therein, shall not in any way impair or affect the
validity or effectiveness of an amendment or waiver under this Article 9.

 

SECTION 9.04. Compliance with Trust Indenture Act.  Every amendment to this Indenture or the
Notes shall comply with the TIA as then in effect.

 

77

 

SECTION 9.05. Revocation and Effect of Consent and Waivers.  A consent to an amendment or a waiver by a
Holder of a Note shall bind the Holder and every subsequent Holder of that Note
or portion of the Note that evidences the same debt as the consenting Holder’s
Note, even if notation of the consent or waiver is not made on the Note.  However, any such Holder or subsequent
Holder may revoke the consent or waiver as to such Holder’s Note or portion of
the Note if the Trustee receives the notice of revocation before the date on
which the Trustee receives an Officers’ Certificate from the Company certifying
that the requisite number of consents has been received.  After an amendment or waiver becomes
effective, it shall bind every Holder. 
An amendment or waiver becomes effective upon the (i) receipt by the
Company or the Trustee of the requisite number of consents, (ii) satisfaction
of conditions to effectiveness as set forth in this Indenture and an indenture
supplemental hereto containing such amendment or waiver, (iii) execution of
such amendment or waiver (or supplemental indenture) by the Company and the
Trustee and (iv) any other conditions thereto specified in the notice thereto.

 

The Company may, but shall not be obligated
to, fix a record date for the purpose of determining the Holders entitled to
give their consent or take any other action described above or required or
permitted to be taken pursuant to this Indenture.  If a record date is fixed, then notwithstanding 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 give
such consent or to revoke any consent previously given or to take any such
action, whether or not such Persons continue to be Holders after such record
date.

 

SECTION 9.06. Notation on or Exchange of Notes.  If an amendment changes the terms of a Note,
the Trustee may (if required by the Company and in accordance with specific
directions of the Company) require the Holder of the Note to deliver it to the
Trustee.  The Trustee may  place an appropriate notation on the Note
regarding the changed terms and return it to the Holder.  Alternatively, if the Company or the Trustee
so determines, the Company in exchange for the Note shall issue and the Trustee
shall authenticate a new Note that reflects the changed terms.  Failure to make the appropriate notation or
to issue a new Note shall not affect the validity of such amendment.

 

SECTION 9.07. Trustee To Sign Amendments.  The Trustee shall sign any amendment
authorized pursuant to this Article 9 if the amendment does not adversely
affect the rights, duties, liabilities or immunities of the Trustee.  If it does, the Trustee may but need not
sign it.  In signing such amendment the
Trustee shall be entitled to receive indemnity reasonably satisfactory to it,
shall be provided with, and (subject to Section 7.01) shall be fully protected
in relying upon, an Officers’ Certificate and an Opinion of Counsel stating
that such amendment is authorized or permitted by this Indenture and that such
amendment is the legal, valid and binding obligation of the Company and the
Guarantors enforceable against them in accordance with its terms, subject to
customary exceptions, and complies with the provisions hereof (including
Section 9.03).

 

SECTION 9.08. Payment
for Consent.

 

Neither the
Company nor any Affiliate of the Company shall, 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

 

78

 

of this Indenture or the Notes unless such consideration is offered to
be 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
agreement.

 

ARTICLE 10

 

SUBORDINATION

 

SECTION 10.01.  Agreement To
Subordinate.  The Company agrees,
and each Holder by accepting a Note agrees, that the Indebtedness evidenced by
the Notes and all other amounts payable under the Notes or this Indenture are
subordinated in right of payment, to the extent and in the manner provided in
this Indenture, to the prior payment in full in cash of all existing and future
Senior Indebtedness of the Company, and that the subordination is for the
benefit of and enforceable by the holders of Senior Indebtedness.

 

SECTION 10.02.  Liquidation, Dissolution or Bankruptcy.  Upon any payment or distribution of the
assets of the Company upon a total or partial liquidation or dissolution,
bankruptcy, reorganization, insolvency, receivership or similar proceeding
relating to the Company or its property, or an assignment for the benefit of
its creditors or any marshalling of the Company’s assets or liabilities, the
holders of Senior Indebtedness shall be entitled to receive payment in full in
cash of all the Senior Indebtedness before Holders are entitled to receive any
payment, and until the Senior Indebtedness of the Company is paid in full in
cash, any payment or distribution to which Holders would be entitled but for
this Article 10 shall be made to holders of the Senior Indebtedness as their
interests may appear.

 

SECTION 10.03.  Default on Designated Senior
Indebtedness.  (a) The Company may
not pay principal of, premium (if any) or interest on, the Notes or any other
payment on or relating to the Notes or under this Indenture, or make any
deposit pursuant to Section 8.01 and may not otherwise purchase, redeem or
otherwise retire any Notes (except that Holders may receive and retain (a)
Permitted Junior Securities and (b) payments made from the trust described in
Section 8.01 so long as, on the date or dates the respective amounts were paid
into the trust, such payments were made with respect to the Notes without
violating this Article 10 or any other material agreement binding on the
Company, including the Credit Agreement) (collectively, “pay the Notes”) if (i)
a default in the payment of the principal of, premium, if any, or interest on
any Designated Senior Indebtedness of the Company occurs and is continuing or
any other amount owing in respect of any Designated Senior Indebtedness is not
paid when due, or (ii) any other default on Designated Senior Indebtedness of
the Company occurs and the maturity of such Designated Senior Indebtedness is
accelerated in accordance with its terms unless, in either case, (x) the
default has been cured or waived and any such acceleration has been rescinded
or (y) such Designated Senior Indebtedness has been paid in full in cash.  However, the Company may pay the Notes
without regard to the foregoing if the Company and the Trustee receive written
notice approving such payment from the Representative of each series of the
Designated Senior Indebtedness with respect to which either of the events in
clause (i) or (ii) of the immediately preceding sentence has occurred and is
continuing. In addition to the foregoing, during the continuance of any default
(other than a default described in clause (i) or (ii) of the second preceding
sentence) with respect to any Designated Senior Indebtedness pursuant to which
the maturity thereof may be accelerated (x) immediately without further notice

 

79

 

(except such notice as may be required to
effect such acceleration) or (y) upon the expiration of any applicable grace
periods, the Company may not pay the Notes for a period (a “Payment Blockage
Period”) commencing upon the receipt by the Trustee (with a copy to the
Company) of written notice (a “Blockage Notice”) of such default from the Representative
of such Designated Senior Indebtedness specifying an election to effect a
Payment Blockage Period and ending on the earliest to occur of the following
events: (1) 179 days shall have elapsed since the receipt of such Blockage
Notice; (2) such Payment Blockage Period is terminated by written notice to the
Trustee and the Company from the Person or Persons who gave such Blockage
Notice; (3) the repayment in full in cash of such defaulted Designated Senior
Indebtedness; or (4) the default giving rise to such Blockage Notice is no
longer continuing.  Notwithstanding the
provisions described in the immediately preceding sentence (but subject to the
provisions contained in the first sentence of this Section 10.03 and in Section
10.02), unless the holders of such Designated Senior Indebtedness or the
Representative of such holders shall have accelerated the maturity of such
Designated Senior Indebtedness, the Company may resume payments on the Notes,
after the end of such Payment Blockage Period. 
In no event may the total number of days during which any Payment
Blockage Period or Periods is in effect exceed 179 days in the aggregate during
any 360 consecutive day period. For purposes of this provision, no default or
event of default that existed or was continuing on the date of the commencement
of any Payment Blockage Period with respect to the Designated Senior
Indebtedness initiating such Payment Blockage Period shall be, or be made, the
basis of the commencement of a subsequent Payment Blockage Period by the
Representative of such Designated Senior Indebtedness, unless such default or
event of default shall have been cured or waived for a period of not less than
90 consecutive days.

 

(b)   After the occurrence of an Event of Default, the
Company or the Trustee shall promptly notify the holders of the Designated
Senior Indebtedness (or their Representative) of such occurrence.  If any Designated Senior Indebtedness is
outstanding, the Company may not make any payments then due on the Notes until
five Business Days after the holders or the Representative of such Designated
Senior Indebtedness receives notice of such occurrence and, thereafter, may pay
the Notes only if the provisions of this Article 10 otherwise permit payment at
that time.

 

SECTION 10.04.  When Distribution Must Be Paid Over.  If a payment or distribution is made to
Holders that due to this Article 10 should not have been made to them, such
Holders shall hold it in trust for the holders of Senior Indebtedness and pay
it over to them as their interests may appear (except that Holders may receive
and retain (i) Permitted Junior Securities and (ii) payments made from the
trust pursuant to Section 8.01 so long as, on the date or dates the respective
amounts were paid into the trust, such payments were made with respect to the
Notes without violating this Article 10 or any other material agreement binding
on the Company, including the Credit Agreement).

 

SECTION 10.05.  Subrogation.  After all Senior Indebtedness of the Company is paid in full in
cash and until the Notes are paid in full in cash, Holders shall be subrogated
to the rights of holders of Senior Indebtedness of the Company to receive
distributions applicable to Senior Indebtedness.  A distribution made under this Article 10 to holders of Senior
Indebtedness of the Company which otherwise would have been made to Holders is
not, as between the Company and Holders, a payment by the Company on its Senior
Indebtedness.

 

80

 

SECTION 10.06.  Relative Rights.  This Article 10 defines the relative rights
of Holders and holders of Senior Indebtedness of the Company. Nothing in this
Indenture shall:

 

(1)   impair,
as between the Company and Holders, the obligation of  the Company which is absolute and unconditional, to make payments
with respect to principal of and interest on the Notes; or

 

(2)   prevent
the Trustee or any Holder from exercising its available remedies upon a
Default, subject to the rights of holders of 
Designated Senior Indebtedness of the Company to receive distributions
otherwise payable to Holders.

 

SECTION 10.07.  Subordination May Not Be Impaired by the
Company.  No right of any holder
of  Senior Indebtedness of the
Company  to enforce the subordination of
the Indebtedness evidenced by the Notes shall be impaired by any act or failure
to act by the Company or by its failure to comply with this Indenture.

 

SECTION 10.08.  Right of Trustee and Paying Agent.  Notwithstanding Section 10.03, the Trustee
or the Paying Agent may continue to make payments on the Notes and shall not be
charged with knowledge of the existence of facts that would prohibit the making
of any such payments unless, not less than two Business Days prior to the date
of such payment, a Trust Officer of the Trustee receives notice satisfactory to
it that such payments may not be made under this Article 10.  The Company, the Registrar or co-registrar,
the Paying Agent, a Representative or a holder of  Senior Indebtedness of the Company may give the notice; provided,
however, that if an issue of Senior Indebtedness of the Company has a
Representative, only the Representative may give the notice.

 

Notwithstanding
the other provisions of this Indenture, if the Trustee or the Paying Agent
holds or receives any payment or distribution in respect of any Obligations
with respect to the Notes at a time when the Trustee or the Paying Agent, as
applicable, has actual knowledge that such payment or distribution is
prohibited by this Article 10, the Trustee or the Paying Agent, as applicable, shall
hold it in trust for the holders of Senior Indebtedness and pay it over to them
as their interest may appear.

 

The Trustee,
in its individual or any other capacity, may hold Senior Indebtedness of the
Company with the same rights it would have if it were not Trustee. The
Registrar and co-registrar and the Paying Agent may do the same with like
rights.  The Trustee shall be entitled
to all the rights set forth in this Article 10 with respect to any Designated
Senior Indebtedness of the Company which may at any time be held by it, to the
same extent as any other holder of Designated Senior Indebtedness of the
Company; and nothing in Article 7 shall deprive the Trustee of any of its
rights as such holder. Nothing in this Article 10 shall apply to claims of, or
payments to, the Trustee under or pursuant to Section 7.07.

 

SECTION 10.09.  Distribution or Notice to Representative.  Whenever a distribution is to be made or a
notice given to holders of Senior Indebtedness of the Company, the distribution
may be made and the notice given to their Representative (if any).

 

81

 

SECTION 10.10.  Article 10 Not To Prevent Events of Default
or Limit Right To Accelerate.  The
failure to make a payment pursuant to the Notes by reason of any provision in
this Article 10 shall not be construed as preventing the occurrence of a
Default.  Except as otherwise provided
in Section 10.04, nothing in this Article 10 shall have any effect on the right
of the Holders or the Trustee to accelerate the maturity of the Notes.

 

SECTION 10.11.  Trust Moneys Not Subordinated.  Subject to Sections 10.03 and 10.04,
payments from money or the proceeds of U.S. Government Obligations held in
trust under Article 8 by the Trustee for the payment of principal of and
interest on the Notes shall not be subordinated to the prior payment of any
Senior Indebtedness of the Company or subject to the restrictions set forth in
this Article 10, and none of the Securityholders shall be obligated to pay over
any such amount to the Company or any holder of Senior Indebtedness of the
Company or any other creditor of the Company. 

 

SECTION 10.12   Trustee Entitled To Rely.  Upon any payment or distribution pursuant to
this Article 10, the Trustee and the Holders shall be entitled to rely (i) upon
any order or decree of a court of competent jurisdiction in which any
proceedings of the nature referred to in Section 10.02 are pending, (ii) upon a
certificate of the liquidating trustee or agent or other Person making such payment
or distribution to the Trustee or to the Holders or (iii) upon the
Representatives for the holders of Senior Indebtedness of the Company for the
purpose of ascertaining the Persons entitled to participate in such payment or
distribution, the holders of such Senior Indebtedness and other Indebtedness of
the Company, the amount thereof or payable thereon, the amount or amounts paid
or distributed thereon and all other facts pertinent thereto or to this Article
10.  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 Senior Indebtedness of  the Company to participate in any payment or distribution
pursuant to this Article 10, the Trustee may request such Person to furnish evidence
to the reasonable satisfaction of the Trustee as to the amount of such Senior
Indebtedness 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 10, and, if such evidence is not
furnished, the Trustee may 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 7.02
shall be applicable to all actions or omissions of actions by the Trustee
pursuant to this Article 10.

 

SECTION 10.13.  Trustee To Effectuate Subordination.  Each Holder by accepting a Note authorizes
and directs the Trustee on such Holder’s behalf to take such action as may be
necessary or appropriate to acknowledge or effectuate the subordination between
the Holders and the holders of Senior Indebtedness of the Company as provided
in this Article 10 and appoints the Trustee as attorney-in-fact for any and all
such purposes.

 

SECTION 10.14.  Trustee Not Fiduciary for Holders of Senior
Indebtedness .  The Trustee shall
not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness
of the Company and shall not be liable to any such holders if it shall
mistakenly pay over or distribute to Holders or the Company or any other
Person, money or assets to which any holders of Senior Indebtedness of the
Company shall be entitled by virtue of this Article 10 or otherwise.

 

SECTION 10.15.  Reliance by Holders of Senior Indebtedness
on Subordination Provisions.  Each
Holder, 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

 

82

holder of any Senior
Indebtedness of the Company, whether such Senior Indebtedness was created or
acquired before or after the issuance of the Notes, to acquire and continue to
hold, or to continue to hold, such Senior Indebtedness and such holder of such Senior
Indebtedness shall be deemed conclusively to have relied on such subordination
provisions in acquiring and continuing to hold, or in continuing to hold, such
Senior Indebtedness.

 

SECTION 10.16.       Defeasance.  The terms of this Article 10 shall not apply
to payments from money or the proceeds of U.S. Government Obligations held in
trust by the Trustee pursuant to Article 8 for the payment of principal of and
interest on the Notes pursuant to the provisions described in Section 8.02.

 

ARTICLE 11

GUARANTEES

 

SECTION 11.01.       Guarantee.  (a) 
Each Guarantor hereby jointly and severally fully and unconditionally
guarantees to each Holder and to the Trustee and its successors and assigns the
performance and punctual payment when due, whether at Stated Maturity, by
acceleration or otherwise, of all obligations of the Company under this
Indenture and the Notes, whether for payment of principal of, premium, if any,
or interest on, the Notes, expenses, indemnification or otherwise (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 each such Guarantor, and that
each such Guarantor shall remain bound under this Article 11 notwithstanding
any extension or renewal of any Guaranteed Obligation.

 

Each Guarantor
waives presentation to, demand of, payment from and protest to the Company of
any of the Guaranteed Obligations and also waives notice of protest for
nonpayment.  Each Guarantor waives
notice of any default under the Securities or the Guaranteed Obligations.  The obligations of each Guarantor hereunder
shall not be affected by (a) the failure of any Holder or the Trustee to assert
any claim or demand or to enforce any right or remedy against the Company or
any other Person under this Indenture, the Securities or any other agreement or
otherwise; (b) any extension or renewal of any thereof; (c) any rescission,
waiver, amendment or modification of any of the terms or provisions of this
Indenture, the Securities or any other agreement; (d) the release of any
security held by any Holder or the Trustee for the Guaranteed Obligations or
any of them; (e) the failure of any Holder or Trustee to exercise any right or
remedy against any other guarantor of the Guaranteed Obligations; or (f) any
change in the ownership of such Guarantor, except as provided in Section
11.02(b).

 

Each Guarantor
hereby waives any right to which it may be entitled to have its obligations
hereunder divided among the Guarantors, such that such Guarantor’s obligations
would be less than the full amount claimed. 
Each Guarantor hereby waives any right to which it may be entitled to have
the assets of the Company first be used and depleted as payment of the
Company’s or such Guarantor’s obligations hereunder prior to any amounts being
claimed from or paid by such Guarantor hereunder.  Each Guarantor hereby waives any right to which it may be
entitled to require that the Company be sued prior to an action being initiated
against such Guarantor.

 

83

 

Each Guarantor further
agrees that its Guarantee 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.

 

The Guarantee of each
Guarantor is, to the extent and in the manner set forth in Article 12,
subordinated and subject in right of payment to the prior payment in full in
cash of all Senior Indebtedness of the relevant Guarantor and is made subject
to such provisions of this Indenture.

 

Except as expressly set
forth in Sections 8.01(b), 11.02 and 11.06, 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 Securities 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 any Guarantor or would
otherwise operate as a discharge of any Guarantor as a matter of law or equity.

 

Each Guarantee is a
continuing guarantee and shall until released in accordance with the next
succeeding paragraph:

 

(1)           remain in full force and effect until payment in full of
all the Guaranteed Obligations;

 

(2)           be binding upon each such Guarantor and its successors;
and

 

(3)           inure to the benefit of and be enforceable by the Trustee,
the Holders and their successors, transferees and assigns.

 

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 Guaranteed Obligation is rescinded or must
otherwise be restored by any Holder or the Trustee upon the bankruptcy or
reorganization of the Company or otherwise.

 

(b)           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 Company 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 (i) the 

 

84

 

unpaid
principal amount of such Guarantee then due and owing, (ii) accrued and unpaid
interest on such Guarantee (but only to the extent not prohibited by law) and
(iii) all other monetary obligations of the Company to the Holders and the
Trustee.

 

(c)           Each
Guarantor agrees that it shall not be entitled to any right of subrogation in
relation to the Holders in respect of any Guaranteed Obligations guaranteed
hereby until payment in full of its Guaranteed Obligations and the payment in
full in cash of all obligations to which the Guaranteed Obligations are
subordinated as provided in Article 12. 
Each Guarantor further agrees that, as between it, on the one hand, and
the Holders and the Trustee, on the other hand, (x) the maturity of the
Guaranteed Obligations guaranteed hereby may be accelerated as provided in
Article 6 for the purposes of any Guarantee herein, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
Guaranteed Obligations guaranteed hereby, and (y) in the event of any
declaration of acceleration of such Guaranteed Obligations as provided in
Article 6, such Guaranteed Obligations (whether or not due and payable) shall
forthwith become due and payable by such Guarantor for the purposes of this
Section 11.01.

 

(d)           Each
Guarantor also agrees to pay any and all reasonable costs and expenses
(including reasonable attorneys’ fees and expenses) incurred by the Trustee or
any Holder in enforcing any rights under this Section 11.01.

 

(e)           Each
Guarantor that makes a payment or distribution under its Guarantee shall have
the right to seek contribution from the Company or any non-paying Guarantor
that has also Guaranteed the relevant Guaranteed Obligations in respect of
which such payment or distribution is made, so long as the exercise of such
right does not impair the rights of the Holders under the Guarantees.

 

(f)            Each
Guarantor acknowledges that it will receive direct and indirect benefits from
the financing arrangements contemplated by this Indenture and that its
Guarantee is knowingly made in contemplation of such benefits.

 

Upon request of the
Trustee, each Guarantor shall execute and deliver such further instruments and
do such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

 

85

 

SECTION 11.02.       Limitation on Liability.
     (a)  Any term or provision
of this Indenture to the contrary notwithstanding, the maximum, aggregate
amount of the Guaranteed Obligations guaranteed hereunder by any Guarantor
shall not exceed the maximum amount that, after giving effect to all other
contingent and fixed liabilities of such Guarantor (including, without limitation,
all of its obligations with respect to the Credit Agreement) and after giving
effect to any collections from or payments made by or on behalf of any other
Guarantor in respect of the obligations of such other Guarantor under its
Guarantee or pursuant to its contribution obligations under this Indenture, can
be hereby guaranteed without rendering this Indenture or the Guarantee, as it
relates to such Guarantor, voidable or unenforceable under applicable law
relating to fraudulent conveyance or fraudulent transfer or similar laws
affecting the rights of creditors generally. After the Issue Date, the Company
will cause each Restricted Subsidiary that guarantees any Indebtedness under
any Senior Credit Document and each Restricted Subsidiary that the Company
shall otherwise cause to become a Guarantor pursuant to the terms of this
Indenture, to execute and deliver to the Trustee a supplemental indenture
pursuant to which such Restricted Subsidiary will guarantee payment of the
Notes on an unsecured senior subordinated basis.

 

(b)              A Guarantee as to any Guarantor
that is a Subsidiary of the Company shall terminate and be of no further force
or effect and such Guarantor shall be deemed to be released from all
obligations under this Article 11; provided that at the time of such
release, no Default or Event of Default has occurred and is continuing, upon:
(i) the sale or disposition (by merger or otherwise) of such Guarantor,
following which such Guarantor is no longer a Restricted Subsidiary of the
Company; provided, however, that each such sale or disposition
shall comply with this Indenture (including Section 4.06 and Section 5.01(b));
(ii) the merger or consolidation of such Guarantor with and into the Company or
another Guarantor that is the surviving Person of such merger or consolidation;
or (iii) upon legal defeasance of the Company’s and all Guarantors’ obligations
under this Indenture or satisfaction and discharge of this Indenture, in each
case, in accordance with the provisions of this Indenture. Upon any such
occurrence specified in this Section 11.02, the Trustee shall execute and
deliver an appropriate instrument evidencing such release.

 

SECTION 11.03.         Successors and Assigns.  This Article 11 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
11.04.         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 11 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 11 at law, in
equity, by statute or otherwise.

 

86

 

SECTION
11.05.         Modification.  No modification, amendment or waiver of any
provision of this Article 11, 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
11.06.         Execution
of Supplemental Indenture for Future Guarantors.  Each Subsidiary which is required to become
a Guarantor pursuant to Section 4.12 hereof shall execute and deliver to the
Trustee a supplemental indenture substantially in the form of Exhibit B
hereto pursuant to which such Subsidiary shall become a Guarantor under this
Article 11 and shall guarantee the Guaranteed Obligations.  Concurrently with the execution and delivery
of such supplemental indenture, the Company shall deliver to the Trustee an
Opinion of Counsel and an Officers’ Certificate to the effect that such
supplemental indenture has been duly authorized, executed and delivered by such
Subsidiary and that, subject to the application of bankruptcy, insolvency,
moratorium, fraudulent conveyance or transfer and other similar laws relating
to creditors’ rights generally and to the principles of equity, whether
considered in a proceeding at law or in equity, the Guarantee of such Guarantor
is a legal, valid and binding obligation of such Guarantor, enforceable against
such Guarantor in accordance with its terms.

 

SECTION 11.07.         Notation Not Required.  Neither the Company nor any Guarantor shall
be required to make a notation on the Notes to reflect any Guarantee or any
such release, termination or discharge thereof.

 

ARTICLE 12

SUBORDINATION OF THE GUARANTEES

 

SECTION 12.01.         Agreement To Subordinate. 
Each Guarantor agrees, and each Holder by accepting a Note agrees, that the
Indebtedness evidenced by each Guarantee and all other amounts payable under
each Guarantee are subordinated in right of payment, to the extent and in the
manner provided in this Indenture, to the prior payment in full in cash of all
existing and future Senior Indebtedness of such Guarantor (including, without
limitation, the Senior Indebtedness of each Guarantor represented by such
Guarantor’s guarantee of Obligations under the Credit Agreement), and that the
subordination is for the benefit of and enforceable by the holders of Senior
Indebtedness.

 

SECTION 12.02.         Liquidation, Dissolution or Bankruptcy. 
Upon any payment or distribution of the assets of a Guarantor upon a
total or partial liquidation or dissolution, bankruptcy, reorganization,
insolvency, receivership or similar proceeding relating to such Guarantor or
its property, or an assignment for the benefit of its creditors or any
marshalling of the Guarantor’s assets or liabilities, the holders of Senior
Indebtedness of such Guarantor shall be entitled to receive payment in full in
cash of all such Senior Indebtedness of such Guarantor before Holders are
entitled to receive any payment under any Guarantee, and until the Senior
Indebtedness of such Guarantor is paid in full in cash, any payment or
distribution to which Holders would be entitled but for this Article 12 shall
be made to holders of such Senior Indebtedness of such Guarantor as their
interests may appear.

 

87

 

SECTION 12.03.         Default
on Designated Senior Indebtedness of a Guarantor. (a)  A Guarantor may not make any payment
pursuant to any of the Guaranteed Obligations and may not otherwise purchase,
redeem or otherwise retire any Notes (collectively, “pay its Guarantee”) if (i)
a default in the payment of the principal of, premium, if any, or interest on
any Designated Senior Indebtedness of such Guarantor occurs and is continuing
or any other amount owing in respect of any Designated Senior Indebtedness of
such Guarantor is not paid when due, or (ii) any other default on Designated
Senior Indebtedness of such Guarantor occurs and the maturity of such
Designated Senior Indebtedness is accelerated in accordance with its terms
unless, in either case, (x) the default has been cured or waived and any such
acceleration has been rescinded or (y) such Designated Senior Indebtedness has
been paid in full in cash.  However,
such Guarantor may pay its Guarantee without regard to the foregoing if such
Guarantor and the Trustee receive written notice approving such payment from
the Representative of each series of the Designated Senior Indebtedness with
respect to which either of the events in clause (i) or (ii) of the immediately
preceding sentence has occurred and is continuing. In addition to the foregoing,
during the continuance of any default (other than a default described in clause
(i) or (ii) of the second preceding sentence) with respect to any Designated
Senior Indebtedness of a Guarantor pursuant to which the maturity thereof may
be accelerated (x) immediately without further notice (except such notice as
may be required to effect such acceleration) or (y) upon the expiration of any
applicable grace periods, no Guarantor may pay its Guarantee for a period (a
“Guarantee Payment Blockage Period”) commencing upon the receipt by the Trustee
(with a copy to the Company) of written notice (a “Guarantee Blockage Notice”)
of such default from the Representative of such Designated Senior Indebtedness
specifying an election to effect a Guarantee Payment Blockage Period and ending
on the earliest to occur of the following events: (1)  179 days shall have elapsed since the receipt of such Guarantee
Blockage Notice; (2) such Guarantee Payment Blockage Period is terminated by
written notice to the Trustee and the Company from the Person or Persons who
gave such Guarantee Blockage Notice; (3) the repayment in full in cash of such
defaulted Designated Senior Indebtedness; or (4) the default giving rise to
such Guarantee Blockage Notice is no longer continuing. Notwithstanding the
provisions described in the immediately preceding sentence (but subject to the
provisions contained in the first sentence of this Section 12.03 and in Section
12.02), unless the holders of such Designated Senior Indebtedness or the Representative
of such holders shall have accelerated the maturity of such Designated Senior
Indebtedness, such Guarantor may resume payment on its Guarantee, after the end
of such Guarantee Payment Blockage Period. 
In no event may the total number of days during which any Guarantee
Payment Blockage Period or Periods is in effect exceed 179 days in the
aggregate during any 360 consecutive day period. For purposes of this
provision, no default or event of default that existed or was continuing on the
date of the commencement of any Guarantee Payment Blockage Period with respect
to the Designated Senior Indebtedness initiating such Guarantee Payment
Blockage Period shall be, or be made, the basis of the commencement of a
subsequent Guarantee Payment Blockage Period by the Representative of such
Designated Senior Indebtedness, unless such default or event of default shall
have been cured or waived for a period of not less than 90 consecutive days.

 

(b)           After
the occurrence of an Event of Default, the Company or the Trustee shall
promptly notify the holders of the Designated Senior Indebtedness (or their
Representative) of such occurrence.  If
any Designated Senior Indebtedness is outstanding, a Guarantor may not make any
payments pursuant to any of the Guaranteed Obligations until five Business Days
after 

 

88

 

the holders
or the Representative of such Designated Senior Indebtedness receives notice of
such occurrence and, thereafter, may pay the Notes only if the provisions of
this Article 12 otherwise permit payment at that time.

 

SECTION 12.04.         Demand for Payment. 
After the occurrence of an Event of Default and a demand for payment is
made on a Guarantor pursuant to Article 11, the Trustee shall promptly notify
the holders of the Designated Senior Indebtedness (or the Representative of
such holders) of such occurrence.

 

SECTION 12.05.         When Distribution Must Be Paid Over.  If a payment or distribution
is made to Holders that due to this Article 12 should not have been made to
them, such Holders shall hold it in trust for the holders of Senior
Indebtedness of such Guarantor and pay it over to them as their interests may
appear (except that Holders may receive and retain (i) Permitted Junior
Securities and (ii) payments made from the trust pursuant to Section 8.01 so
long as, on the date or dates the respective amounts were paid into the trust,
such payments were made with respect to the Notes without violating this
Article 12 or any other material agreement binding on the Company, including
the Credit Agreement).

 

SECTION 12.06.         Subrogation.  After all Designated Senior
Indebtedness of a Guarantor is paid in full in cash and until the Notes are
paid in full in cash, Holders shall be subrogated to the rights of holders of
Senior Indebtedness of such Guarantor to receive distributions applicable to
Senior Indebtedness of such Guarantor. 
A distribution made under this Article 12 to holders of Senior
Indebtedness of such Guarantor which otherwise would have been made to Holders
is not, as between such Guarantor and Holders, a payment by such Guarantor its
Guarantee.

 

SECTION 12.07.         Relative Rights. 
This Article 12 defines the relative rights of Holders and holders of
Senior Indebtedness of a Guarantor. Nothing in this Indenture shall:

 

(1)           impair, as between a Guarantor and Holders, the obligation
of a Guarantor which is absolute and unconditional, to make payments with
respect to the Guaranteed Obligations to the extent set forth in Article 11; or

 

(2)           prevent the Trustee or any Holder from exercising its
available remedies upon a default by a Guarantor under its obligations with
respect to the Guaranteed Obligations, subject to the rights of holders of
Senior Indebtedness of such Guarantor to receive distributions otherwise payable
to Holders.

 

SECTION 12.08.         Subordination May Not Be Impaired by a
Guarantor.  No right of any holder of Senior
Indebtedness of a Guarantor to enforce the subordination of the obligations of
such Guarantor hereunder shall be impaired by any act or failure to act by such
Guarantor or by its failure to comply with this Indenture.

 

SECTION 12.09.         Right of Trustee and Paying Agent. 
Notwithstanding Section 12.03, the Trustee or the Paying Agent may
continue to make payments on the Notes and shall not be charged with knowledge
of the existence of facts that would prohibit the making of any such payments
unless, not less than two Business Days prior to the date of such payment, a
Trust Officer of the Trustee receives notice satisfactory to it that such
payments may not be made under this Article 12.  A Guarantor, the Registrar or co-registrar, the Paying Agent, a 

 

89

 

Representative or a holder
of Senior Indebtedness of a Guarantor may give the notice; provided, however,
that if an issue of Senior Indebtedness of a Guarantor has a Representative,
only the Representative may give the notice.

 

Notwithstanding the other
provisions of this Indenture, if the Trustee or the Paying Agent holds or
receives any payment or distribution in respect of any Obligations with respect
to the Notes at a time when the Trustee or the Paying Agent, as applicable, has
actual knowledge that such payment or distribution is prohibited by this
Article 12, the Trustee or the Paying Agent, as applicable, shall hold it in
trust for the holders of Senior Indebtedness and pay it over to them as their
interest may appear.

 

The Trustee, in its
individual or any other capacity, may hold Senior Indebtedness of a Guarantor
with the same rights it would have if it were not Trustee. The Registrar and
co-registrar and the Paying Agent may do the same with like rights.  The Trustee shall be entitled to all the
rights set forth in this Article 12 with respect to any Senior Indebtedness of
a Guarantor which may at any time be held by it, to the same extent as any
other holder of Senior Indebtedness of such Guarantor; and nothing in Article 7
shall deprive the Trustee of any of its rights as such holder. Nothing in this
Article 12 shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 7.07.

 

SECTION 12.10.         Distribution or Notice to Representative. 
Whenever a distribution is to be made or a notice given to holders of
Senior Indebtedness of a Guarantor, the distribution may be made and the notice
given to their Representative (if any).

 

SECTION 12.11.         Article 12 Not To Prevent Events of Default
or Limit Right To Accelerate.  The failure of a Guarantor to make a payment
on any of its obligations by reason of any provision in this Article 12 shall
not be construed as preventing the occurrence of a default by such Guarantor
under such obligations.  Nothing in this
Article 12 shall have any effect on the right of the Holders or the Trustee to
make a demand for payment on a Guarantor pursuant to Article 11.

 

SECTION 12.12.         Trustee Entitled To Rely. 
Upon any payment or distribution pursuant to this Article 12, the
Trustee and the Holders shall be entitled to rely (i) upon any order or decree
of a court of competent jurisdiction in which any proceedings of the nature
referred to in Section 12.02 are pending, (ii) upon a certificate of the
liquidating trustee or agent or other Person making such payment or
distribution to the Trustee or to the Holders or (iii) upon the Representatives
for the holders of Senior Indebtedness of a Guarantor for the purpose of
ascertaining the Persons entitled to participate in such payment or
distribution, the holders of the Senior Indebtedness of a Guarantor and other
Indebtedness of a 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 12.  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 Senior Indebtedness of a Guarantor to
participate in any payment or distribution pursuant to this Article 12, the
Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of Senior Indebtedness of such
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 12, and, if such evidence is not
furnished, the Trustee

 

90

 

may 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 7.02 shall be applicable to all actions or omissions of
actions by the Trustee pursuant to this Article 12.

 

SECTION 12.13.         Trustee To Effectuate Subordination. 
Each Holder by accepting a Note authorizes and directs the Trustee on
such Holder’s behalf to take such action as may be necessary or appropriate to
acknowledge or effectuate the subordination between the Holders and the holders
of Senior Indebtedness of each of the Guarantors as provided in this Article 12
and appoints the Trustee as attorney-in-fact for any and all such purposes.

 

SECTION 12.14.         Trustee Not Fiduciary for Holders of Senior
Indebtedness of Guarantor.  The Trustee shall not be deemed to owe any
fiduciary duty to the holders of Senior Indebtedness of any Guarantor and shall
not be liable to any such holders if it shall mistakenly pay over or distribute
to Holders or the relevant Guarantor or any other Person, money or assets to
which any holders of Senior Indebtedness of such Guarantor shall be entitled by
virtue of this Article 12 or otherwise.

 

SECTION 12.15.         Reliance by Holders of Senior Indebtedness of
a Guarantor on Subordination Provisions.  Each Holder, 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
Senior Indebtedness of each Guarantor, whether such Senior Indebtedness of such
Guarantor was created or acquired before or after the issuance of the Notes, to
acquire and continue to hold, or to continue to hold, such Senior Indebtedness
of such Guarantor and such holder of Senior Indebtedness of such Guarantor
shall be deemed conclusively to have relied on such subordination provisions in
acquiring and continuing to hold, or in continuing to hold, such Senior
Indebtedness of such Guarantor

 

SECTION 12.16.    Defeasance.  The terms of this Article 12
shall not apply to payments from money or the proceeds of U.S. Government
Obligations held in trust by the Trustee pursuant to Article 8 for the payment
of principal of and interest on the Notes pursuant to Section 8.02.

 

ARTICLE 13

MISCELLANEOUS

 

 

SECTION 13.01.         Trust Indenture Act Controls.  If any provision of this Indenture limits,
qualifies or conflicts with another provision which is required to be included
in this Indenture by the TIA, the required provision shall control.

 

SECTION 13.02.         Notices.  Any notice or communication shall be in writing and delivered in
person or mailed by first-class mail addressed as follows:

 

if to
the Company or any Guarantor c/o:

 

Otelco
Inc.

505
Third Avenue East

Oneonta,
Alabama 35121

 

91

 

Attention:
Michael D. Weaver

 

With a
copy to:

 

Richard
A Boehmer, Esq.

O'Melveny
& Myers LLP

400
South Hope Street

Los
Angeles, California 90071

 

if to
the Trustee:

Wells
Fargo Bank, National Association

Corporate
Trust Services

Sixth
Street & Marquette Avenue

Minneapolis,
MN 55479

 

Attention:  Otelco Administrator

 

The
Company or the Trustee by notice to the other may designate additional or
different addresses for subsequent notices or communications.

 

Any
notice or communication mailed to a Holder shall be mailed to the Holder at the
Holder’s address as it appears on the registration books of the Registrar and
shall be sufficiently given 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 13.03.         Communication by Holders with Other Holders.  Holders may communicate pursuant to Section
312(b) of the TIA with other Holders with respect to their rights under this
Indenture or the Notes. The Company , the Trustee, the Registrar and anyone
else shall have the protection of Section 312(c) of the TIA.

 

SECTION 13.04.         Certificate and Opinion as to Conditions
Precedent.  After the date of
this Indenture, upon any request or application by the Company to the Trustee
to take or refrain from taking any action under this Indenture, the Company
shall furnish to the Trustee:

 

(1)           an
Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee stating that, in the opinion of the signers, all conditions precedent,
if any, provided for in this Indenture relating to the proposed action have
been complied with; and

 

(2)           an
Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
stating that, in the opinion of such counsel, all such conditions precedent
have been complied with.

 

92

 

SECTION 13.05.         Statements Required in Certificate or Opinion.  Each certificate or opinion with respect to
compliance with a covenant or condition provided for in this Indenture, except
for certificates provided for in Section 4.10, shall include:

 

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

 

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

 

SECTION 13.06.         When Notes Disregarded.  In determining whether the Holders of the
required principal amount of Notes have concurred in any direction, waiver or
consent, Notes owned by the Company, any Guarantor or by any Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with the Company or any Guarantor shall be disregarded and deemed not
to be outstanding, except that, for the purpose of determining whether the
Trustee shall be protected in relying on any such direction, waiver or consent,
only Notes which the Trustee knows are so owned shall be so disregarded.
Subject to the foregoing, only Notes outstanding at the time shall be
considered in any such determination.  

 

SECTION 13.07.         Rules by Trustee, Paying Agent and Registrar.  The Trustee may make reasonable rules for
action by or a meeting of Holders. The Registrar and the Paying Agent may make
reasonable rules for their functions.

 

SECTION 13.08.         Legal Holidays.  A "Legal Holiday" is a Saturday, a
Sunday or a day on which banking institutions are not required to be open in
Minnesota or the State of New York. If a payment date is a Legal Holiday,
payment shall be made on the next succeeding day that is not a Legal Holiday,
and no interest shall accrue for the intervening period.  If a regular record date is a Legal Holiday,
the record date shall not be affected.

 

SECTION 13.09.         Governing Law.  THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.  THE TRUSTEE, THE COMPANY, ANY OTHER OBLIGOR
IN RESPECT OF THE NOTES AND (BY THEIR ACCEPTANCE OF THE NOTES) THE HOLDERS
AGREE TO SUBMIT TO THE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT
LOCATED IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE OR THE NOTES.

 

93

 

SECTION 13.10.         No Recourse Against Others.  A director, officer, employee or stockholder
of the Company or any Guarantor shall not have any liability for any
obligations of the Company or any Guarantor under the Notes, the Guarantees or
this Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation.  By
accepting a Note, each Holder shall waive and release all such liability. The
waiver and release shall be part of the consideration for the issue of the
Notes.

 

SECTION 13.11.         Successors.  All agreements of the Company and each
Guarantor in this Indenture and the Notes shall bind its successors. All agreements
of the Trustee in this Indenture shall bind its successors.

 

SECTION 13.12.         Multiple Originals.  The parties may sign any number of copies of
this Indenture.  Each signed copy shall
be an original, but all of them together represent the same agreement.  One signed copy is enough to prove this
Indenture.

 

SECTION 13.13.         Table of Contents; Headings.  The table of contents, cross-reference sheet
and headings of the Articles and Sections of this Indenture have been inserted
for convenience of reference only, are not intended to be considered a part
hereof and shall not modify or restrict any of the terms or provisions hereof.

 

94

 

IN WITNESS WHEREOF, the parties have caused
this Indenture to be duly executed as of the date first written above.

 

	
   

  	
  OTELCO INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OTELCO
  TELECOMMUNICATIONS LLC (as Guarantor)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OTELCO TELEPHONE LLC

  	
   

  
	
   

  	
  (as Guarantor)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HOPPER HOLDING COMPANY,
  INC.

  	
   

  
	
   

  	
  (as Guarantor)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HOPPER
  TELECOMMUNICATIONS

  COMPANY, INC. (as Guarantor)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
						

 

[Indenture Signature
Page]

 

 

	
   

  	
  BRINDLEE HOLDINGS LLC

  	
   

  
	
   

  	
  (as Guarantor)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BRINDLEE MOUNTAIN
  TELEPHONE COMPANY (as Guarantor)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PAGE & KISER
  COMMUNICATIONS, INC. (as Guarantor)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BLOUNTSVILLE TELEPHONE
  COMPANY INC. (as Guarantor)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MID-MISSOURI HOLDING
  CORP. (as Guarantor)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
						

 

[Indenture Signature
Page]

 

 

	
   

  	
  WELLS FARGO BANK,
  NATIONAL ASSOCIATION,

  	
   

  
	
   

  	
  as Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

[Indenture Signature
Page]

 

 

EXHIBIT A

 

[FORM OF NOTE]

 

[Global
Note Legend]

 

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

 

TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE,
BUT NOT IN PART, TO NOMINEES OF DTC 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 THE
INDENTURE REFERRED TO ON THE REVERSE HEREOF.

 

THE COMPANY MAY SUBSEQUENTLY ISSUE NOTES THAT ARE IDENTICAL IN ALL
MATERIAL RESPECTS TO THIS NOTE BUT HAVE ORIGINAL ISSUE DISCOUNT.  IN SUCH CASE, THE HOLDER OF THIS NOTE WILL
EXCHANGE A PORTION OF HIS NOTES FOR SUCH NEWLY ISSUED NOTES WITH ORIGINAL ISSUE
DISCOUNT.  THE AGGREGATE PRINCIPAL
AMOUNT OF NOTES OWNED BY SUCH HOLDER, HOWEVER, WILL NOT CHANGE AS A RESULT OF
SUCH EXCHANGE.  WITH RESPECT TO SUCH
NEWLY ISSUED NOTES WITH ORIGINAL DISCOUNT, A HOLDER MAY OBTAIN THE AMOUNT OF
ORIGINAL ISSUE DISCOUNT, THE ISSUE DATE, THE ISSUE PRICE AND THE YIELD TO
MATURITY BY SUBMITTING A WRITTEN REQUEST TO THE COMPANY.]

 

[Physical Note
Legend]

 

[THE COMPANY MAY SUBSEQUENTLY ISSUE NOTES
THAT ARE IDENTICAL IN ALL MATERIAL RESPECTS TO THIS NOTE BUT HAVE ORIGINAL
ISSUE DISCOUNT.  IN SUCH CASE, THE
HOLDER OF THIS NOTE WILL EXCHANGE A PORTION OF HIS NOTES FOR SUCH NEWLY ISSUED
NOTES WITH ORIGINAL ISSUE DISCOUNT.  THE
AGGREGATE PRINCIPAL AMOUNT OF NOTES OWNED BY SUCH HOLDER, HOWEVER, WILL NOT
CHANGE AS A RESULT OF SUCH EXCHANGE. 
WITH RESPECT TO SUCH NEWLY ISSUED NOTES WITH ORIGINAL DISCOUNT, A HOLDER
MAY OBTAIN THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, THE ISSUE DATE, THE ISSUE
PRICE AND THE YIELD TO MATURITY BY SUBMITTING A WRITTEN REQUEST TO THE
COMPANY.]

 

 

 

	
  No.

  	
   

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  % Note due 2019

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  CUSIP No. 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
						

 

OTELCO
INC., a Delaware corporation, promises to pay to Cede & Co., or registered
assigns, the principal sum [of      
Dollars] [listed on the Schedule of Increases or Decreases in Global
Note attached hereto]  on      , 2019.

 

Interest
Payment Dates: 

 

Record
Dates:                    .

 

(1)           Use the Schedule of Increases and
Decreases language for a Global Note.

 

 

Additional
provisions of this Note are set forth on the other side of this Note.

 

IN
WITNESS WHEREOF, the parties have caused this instrument to be duly executed.

 

OTELCO
INC.

 

	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

Dated:

TRUSTEE’S CERTIFICATE OF 

AUTHENTICATION

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee, certifies that this is one of

the Notes referred to in the Indenture.

 

	
   

  	
   

  
	
  By: 

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  
	
   

  	
   

  

 

 

[FORM OF REVERSE SIDE OF NOTE]

 

% Note due 2019

 

Capitalized terms used but not defined herein
shall have the meanings given to such terms in the Indenture (as defined).

 

1.                                       Interest; Extension of Maturity

 

Otelco Inc., a Delaware corporation (such
corporation, and its successors and assigns under the Indenture hereinafter
referred to, being herein called the "Company"), promises to pay
interest on the principal amount of this Note (the "Note") at the
rate per annum shown above.  The Company
shall pay interest from           ,       or from the most recent date to which
interest has been paid or provided for, payable quarterly in arrears on March
30, June 30, September 30 and December 30, to Holders of record at the close of
business on the 15th day of such month, commencing December 30, 2004, provided
that if any such day is not a Business Day, such day shall be the next Business
Day. 

 

Prior to          , 2009, the Company may, at its
election, defer interest payments on the Notes on one or more occasions for not
more than eight quarters in the aggregate (any such period, an "Initial
Interest Deferral Period"); provided that (1) at the end of each occasion,
the Company will be obligated to resume quarterly payments of interest on the
Notes including interest on deferred interest; and (2) no later than          , 2009, the Company must pay in full
all deferred interest, together with accrued interest thereon.

 

In addition, after         , 2009 the Company may, at its
election, defer interest payments on the Notes on up to four occasions with
respect to up to two quarters per occasion (each, a "Secondary Interest
Deferral Period" and, together with the Initial Interest Deferral Period,
an "Interest Deferral Period") ; provided that (1) the Company may
not defer interest on any occasion after , 2009 unless and until all interest
deferred on any prior occasion, together with accrued interest thereon, has
been paid in full; (2) at the end of each occasion, the Company will be
obligated to resume quarterly payments of interest on the Notes including
interest on deferred interest; and (3) no later than , 2019, the Company must
pay all deferred interest, together with accrued interest thereon.

 

On each occasion that the
Company elects to defer interest, it will be required to deliver to the Trustee
a copy of a resolution of the Company’s Board of Directors to the effect that,
based upon a good-faith determination of the Company’s Board of Directors, (x)
such interest deferral is reasonably necessary for bona-fide cash management
purposes, whether indicated by cumulative distributable cash shortfall or
otherwise, or to reduce the likelihood of or avoid a payment default under any
Designated Senior Indebtedness or (y) as long as the Credit Agreement remains
in effect, the Company has failed to maintain a fixed charge coverage ratio of at
least 1.15:1:00 or a senior leverage ratio of not more than 3.20 to 1.00, in
each case, as calculated in accordance with the provisions contained in the
Credit Agreement as of the closing date hereof, irrespective of any subsequent
changes to the Credit Agreement; provided no such deferral may be commenced,
and any ongoing deferral shall cease, if a default in payment of interest,
principal or premium, if any, on the Notes

 

95

 

has occurred and is continuing, or any other Event of Default with
respect to the Notes has occurred and is continuing and the Notes have been
accelerated as a result of the occurrence of such Event of Default. 

 

Deferred interest on the Notes shall bear
interest at the same rate as the stated rate on the Notes, compounded
quarterly, until paid in full. 
Following the end of any Interest Deferral Period, the Company shall be
obligated to resume quarterly payments of interest on the Notes, including
interest on deferred interest. All interest deferred prior to _________, 2009,
shall be repaid no later than 
_________, 2009. All interest deferred after _________, 2009 shall be
repaid on or before maturity. The Company may prepay all or part of the deferred
interest, at any time other than during an Interest Deferral Period.

 

The
Notes will mature on                 ,
2019.  

 

2.             Method of Payment

 

The Company shall pay interest on the Notes
(except defaulted interest) to the Persons who are registered holders of Notes
at the close of business on the 15th day of the month of the interest payment
date even if Notes are canceled after the record date and on or before the
interest payment date. Holders must surrender Notes to a Paying Agent to
collect principal payments. The Company shall pay principal, premium, if any,
and interest in money of the United States. 
Payments in respect of the Notes represented by a Global Note (including
principal, premium, if any, and interest) shall be made by wire transfer of
immediately available funds to the accounts specified by The Depository Trust
Company. The Company will make all payments in respect of a Physical Note
(including principal, premium, if any, and interest), and the Notes may be
exchanged or transferred, at office or agency of the Company in the Borough of
Manhattan, The City of New York [(which initially shall be the office of the
Trustee maintained for such purpose at The Depository Trust Company, 55 Water
Street, New York, NY 10041)], except that, at the option of the Company,
payment of interest may be made by check mailed to the Holders at their
registered addresses.

 

3.             Paying Agent and Registrar

 

Initially, the Trustee will act as Paying
Agent and as Registrar. The Company may appoint and change any Paying Agent,
Registrar or co-registrar upon written notice to such Paying Agent or Registrar
and the Trustee. The Company or any of its domestically incorporated Wholly
Owned Subsidiaries may act as Paying Agent, Registrar or co-registrar.

 

4.             Indenture

 

The Company issued the Notes under an Indenture
dated as of               , 2004 (the
"Indenture"), among the Company, the Guarantors and the Trustee. The
terms of the Notes include those stated in the Indenture and those made part of
the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in
effect on the date of the Indenture (the "TIA"). Terms defined in the
Indenture and not defined herein have the meanings ascribed thereto in the
Indenture. The Notes are subject to all terms and provisions of the Indenture,
and Holders are referred to the Indenture and the TIA for a statement of such
terms and provisions.

 

 

This Note is one of the Notes referred to in
the Indenture. The Notes include the Original Notes and any Additional Notes.
The Original Notes and any Additional Notes shall be part of the same series
issued and will vote together on all matters subject to the conditions set
forth in the Indenture.  The Company
shall only be entitled to issue Additional Notes in accordance with Section
4.14 of the Indenture.  Additional Notes
shall be issued with terms substantially identical to the Original Notes,
except for any variation in issuance date and, upon the issuance of Additional
Notes with original issue discount (and any issuance of Additional Notes thereafter),
CUSIP number.  The Indenture imposes
certain limitations on the ability of the Company and its Restricted
Subsidiaries to, among other things, incur Indebtedness and issue Disqualified
Stock and Preferred Stock; pay dividends on, and redeem, capital stock and
redeem Indebtedness that is subordinate in right of payment to the Notes; make
certain other Restricted Payments, including Investments; enter into consensual
restrictions on the payment of certain dividends and distributions by
Restricted Subsidiaries; enter into or permit certain transactions with
Affiliates; create or incur Liens; and make Asset Sales. The Indenture also
imposes limitations on the ability of the Company to consolidate or merge with
or into or wind up into any other Person or sell, assign, transfer, lease,
convey or otherwise dispose of all or substantially all of their property or
assets in one or more related transactions to any Person.

 

To guarantee the due and punctual payment of
the principal and interest on the Notes and all other amounts payable by the
Company under the Indenture and the Notes when and as the same shall be due and
payable, whether at maturity, by acceleration or otherwise, according to the
terms of the Notes and the Indenture, the Guarantors have jointly and
severally, fully and unconditionally guaranteed the Guaranteed Obligations on a
subordinated basis pursuant to the terms of the Indenture.

 

5.             Optional Redemption

 

The Company may, at its option, redeem all,
but not less than all, of the Notes at any time upon not less than 30 nor more
than 60 days’ prior notice, at a redemption price equal to 100% of the
principal amount of the Notes plus accrued and unpaid interest to the
redemption date, upon the occurrence of a Tax event.

 

Except as set forth in the preceding
paragraph, the Company may not redeem Notes at its option prior to [                  ], 2011.

 

At any time and from time to time on or after
[                  ], 2011, the Notes
shall be redeemable, at the Company’s option, in whole or in part for cash at
the following redemption prices (expressed as a percentage of principal
amount), plus accrued and unpaid interest on the Notes redeemed, to the
relevant Redemption Date, if redeemed during the 12-month period commencing on
[                ] of the years set
forth below:

 

	
  Period

  	
   

  	
  Redemption

  Price

  	
   

  
	
  2011
  ...............................

  	
   

  	
   

  	
  %

  
	
  2012
  ...............................

  	
   

  	
   

  	
  %

  
	
  2013
  ...............................

  	
   

  	
   

  	
  %

  
	
  2014
  ...............................

  	
   

  	
   

  	
  %

  
	
  2015
  ...............................

  	
   

  	
   

  	
  %

  
	
  2016 and
  thereafter ........

  	
   

  	
  100.00

  	
  %

  

 

 

On and
after the redemption date, interest will cease to accrue on Notes or portions
thereof called for redemption, so long as the Company has deposited with the
paying agent funds (in US Dollars) sufficient to pay the principal of, plus
accrued and unpaid interest (including any deferred interest and accrued
interest thereon) on, the Notes to be redeemed.

 

A full
or partial redemption of the Notes will result in an automatic separation of
the IDSs.

 

6.             Sinking Fund

 

The Notes are not subject to any sinking
fund.

 

7.             Notice of Redemption

 

Notice of redemption will be mailed by
first-class mail at least 30 days but not more than 60 days before the
Redemption Date to each Holder of Notes to be redeemed at his or her registered
address. Notes may be redeemed in part. 
If money sufficient to pay the redemption price of and accrued and
unpaid interest on all Notes (or portions thereof) to be redeemed on the
Redemption Date is deposited with the Paying Agent on or before 10:00 am, New
York City time on the Redemption Date and certain other conditions are
satisfied, on and after such date interest ceases to accrue on such Notes (or
such portions thereof) called for redemption.

 

8.             Repurchase of Notes at the Option of Holders
upon Change of Control

 

Upon a
Change of Control, any Holder of Notes will have the right, subject to certain
conditions specified in the Indenture, to cause the Company to repurchase all
or any part of the Notes of such Holder at a purchase price equal to 101% of
the principal amount of the Notes to be repurchased plus accrued and unpaid
interest to the date of repurchase (subject to the right of Holders of record
on the relevant record date to receive interest due on the relevant interest payment
date that is on or prior to the date of purchase) as provided in, and subject
to the terms of, the Indenture.

 

9.             Subordination

 

The
Notes and each Guarantee is subordinated to Senior Indebtedness of the Company
and the applicable Guarantor, as defined in the Indenture, respectively. To the
extent provided in the Indenture, Senior Indebtedness of the Company and the
applicable Guarantor must be paid in full in cash before the Notes may be paid
by the Company and the Guarantee of such Guarantor may be paid by such
Guarantor.  The Company and each
Guarantor agrees, and each Holder by accepting a Note agrees, to the
subordination provisions contained in the Indenture and 

 

 

authorizes the Trustee to give it effect and appoints the Trustee as
attorney-in-fact for such purpose.

 

10.           Transfer; Exchange

 

The
Notes are in registered form without coupons. A Holder may transfer or exchange
Notes in accordance with the Indenture. Upon any transfer or exchange, the
Registrar and the Trustee may require a Holder, among other things, to furnish
appropriate endorsements or transfer documents and to pay any taxes required by
law or permitted by the Indenture. The Registrar need not register the transfer
of or exchange any Notes (i) selected for redemption (except, in the case of a
Note to be redeemed in part, the portion of the Note not to be redeemed), (ii)
during a period beginning at the opening of business 15 days prior to a
selection of Notes to be redeemed and ending on the relevant Redemption Date,
(iii) tendered in a Change of Control Offer or Asset Sale Offer or (iv) during
a period beginning on the opening of business 15 days before a record date for
the payment of interest and ending on the applicable succeeding interest
payment date.

 

11.           Persons Deemed Owners

 

The
registered Holder of this Note may be treated as the owner of it for all
purposes.

 

12.           Unclaimed Money

 

If
money for the payment of principal or interest remains unclaimed for two years,
the Trustee or Paying Agent shall pay the money back to the Company at its
written request unless an abandoned property law designates another Person.
After any such payment, Holders entitled to the money must look only to the
Company and not to the Trustee for payment.

 

13.           Discharge and Defeasance

 

Subject
to certain conditions, the Company at any time may terminate some of or all its
obligations under the Notes and the Indenture if the Company deposits or causes
to be deposited with the Trustee money or U.S. Government Obligations for the
payment of principal and interest on the Notes to redemption or maturity, as
the case may be. In the event that the Company exercises its right to terminate
some of or all its obligations under the Notes and the Indenture in accordance
with the preceding sentence, each Guarantor will be released from its related
obligations with respect to its Guarantee.

 

14.           Amendment, Waiver

 

Without
the consent of each Holder affected, an amendment or waiver may not: (1) reduce
the amount of Notes whose Holders must consent to an amendment; (2) reduce the
rate of or extend the time for payment of interest on any Note, or amend the
Company's right to defer interest on the Notes in a manner adverse to the
Holders; (3) reduce the principal of or extend the Stated Maturity of any Note;
(4) reduce the premium payable upon the redemption of any Note or change the
time at which any Note may be redeemed in accordance with Article 3 of the
Indenture; (5) make any Note payable in money other than that stated in the
Note; (6) make any change in Article 10 or Article 12 of the Indenture that
adversely affects the rights of any Holder

 

 

under Article 10 or Article 12 of the Indenture; (7) impair the right
of any Holder to receive payment of principal of, premium, if any, and interest
on such Holder’s Notes on or after the due dates therefor or to institute suit
for the enforcement of any payment on or with respect to such Holder’s Notes;
(8) except in connection with an offer by the Company to purchase all of the
Notes (in which case a majority in principal amount of Notes will be
sufficient), (A) make any change to the provisions of Section 4.05 of the
Indenture that eliminate the prohibition on paying dividends while interest is
being deferred, while any previously Deferred Interest remains unpaid or during
a Dividend Suspension Period, or during the continuance of any Event of
Default, (B) make a change to lower the Interest Coverage Ratio threshold for a
Dividend Suspension Period or make a change to paragraph (c) of Section 4.04 of
the Indenture that would have the effect of increasing the amounts permitted to
be distributed in respect of the Company’s Capital Stock, (C) waive an Event of
Default under Section 6.01(k) of the Indenture; (9) make any change in the
amendment provisions which require each Holder’s consent or in the waiver
provisions; or (10) modify the Guarantees in any manner adverse to the Holders.

 

In
addition, under the terms of the Credit Agreement, the Company will not be
permitted to effect any amendment or modification under the Indenture if the
effect would be to: (i) increase the interest rate applicable to the Notes or
any deferred interest on the Notes; (ii) change to an earlier date the
scheduled dates of payment on any component of principal, interest or other
amounts on the Notes; (iii) increase principal repayments or amortization
payments on the Notes; (iv) alter the redemption, prepayment or subordination
provisions of the Notes; (v) change the subordination provisions of the Notes;
(vi) grant any security or collateral to secure payment of the Notes or provide
any additional guaranty (other than a subordinated guaranty); (vii) add to or
alter the covenants, defaults and Events of Defaults set forth in the Indenture
in a manner that would make such provisions more onerous or restrictive to the
Company; or (viii) otherwise increase the obligations of the Company or any
Guarantor in respect of the Notes, the deferred interest on the Notes or confer
additional rights upon the Holders thereof which individually or in the
aggregate would be adverse to the Company, any Guarantor or the lenders of the
Senior Lender Indebtedness.

 

Without
the consent of any Holder of Notes, the Company and the Trustee may amend the
Indenture or the Notes to (1) cure any ambiguity, omission, defect or inconsistency;
(2) provide for the assumption by a successor corporation, partnership, limited
liability company or other entity of the obligations of the Company under this
Indenture; (3) provide for uncertificated Notes in addition to or in place of
Physical Notes; provided that the uncertificated Notes are issued in registered
form for purposes of Section 163(f) of the Internal Revenue Code or in a manner
such that the uncertificated Notes are described in Section 163(f)(2)(B) of the
Internal Revenue Code; (4) to make any change in Article 10 or Article 12 of
the Indenture that would limit or terminate the benefits available to any
holder of Senior Indebtedness (or Representatives therefor) under Article 10 or
Article 12 of the Indenture; (5) add additional Guarantees with respect to the
Notes; (6) secure the Notes; (7) add to the covenants of the Company for the
benefit of the Holders or to surrender any right or power herein conferred upon
the Company; (8)  make any change that
does not adversely affect the legal rights or entitlements under this Indenture
of any Holder to comply with any requirement of the SEC or in connection with
the qualification of this Indenture under the TIA; or (9) enter into one or
more supplemental indentures to effect any of the amendments set forth herein
or to set forth the terms of and issue any Additional Notes in accordance with
the provisions of this Indenture.

 

 

Notwithstanding
the foregoing, an amendment under this paragraph 14 may not make any change
that adversely affects the rights under Article 10 or Article 12 of any holder
of Senior Indebtedness then outstanding unless the holders of such Senior
Indebtedness (or any group or representative thereof authorized to give a
consent) consent to such change.

 

15.           Defaults and Remedies

 

If an
Event of Default occurs (other than an Event of Default pursuant to Section
6.01(g) or (h)) and is continuing, the Trustee or the Holders of at least 25%
in principal amount of the outstanding Notes may declare the principal of,
premium if any, and accrued but unpaid interest on all the Notes to be due and
payable. Upon such a declaration, such principal and interest shall be due and
payable. If an Event of Default relating to certain events of bankruptcy,
insolvency or reorganization of the Company occurs, the principal of, premium,
if any, and interest on all the Notes shall become and be immediately due and
payable without any declaration or other act on the part of the Trustee or any
Holders. 

 

If an
Event of Default occurs and is continuing, the Trustee shall be under no
obligation to exercise any of the rights or powers under the Indenture at the
request or direction of any of the Holders unless such Holders have offered to
the Trustee reasonable indemnity or security against any loss, liability or
expense. Except to enforce the right to receive payment of principal, premium
(if any) or interest when due, no Holder may pursue any remedy with respect to
the Indenture or the Notes unless (i) such Holder has previously given the
Trustee notice that an Event of Default is continuing, (ii) Holders of at least
25% in principal amount of the outstanding Notes have requested the Trustee in
writing to pursue the remedy, (iii) such Holders have offered the Trustee
reasonable security or indemnity against any loss, liability or expense, (iv)
the Trustee has not complied with such request within 60 days after the receipt
of the request and the offer of security or indemnity and (v) the Holders of a
majority in principal amount of the outstanding Notes have not given the
Trustee a direction inconsistent with such request within such 60-day period.
Subject to certain restrictions, the Holders of a majority in principal amount
of the outstanding Notes are given the right to direct the time, method and place
of conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on the Trustee. The Trustee, however,
may refuse to follow any direction that conflicts with law or the Indenture or
that the Trustee determines is unduly prejudicial to the rights of any other
Holder or that would involve the Trustee in personal liability. Prior to taking
any action under the Indenture, the Trustee will be entitled to indemnification
satisfactory to it in its sole discretion against all losses and expenses
caused by taking or not taking such action.

 

If a
Default occurs and is continuing and is actually known to the Trustee, the
Trustee must mail to each Holder notice of the Default within the earlier of 90
days after it occurs or 30 days after it is actually known to a Trust Officer
or written notice of it is received by the Trustee. Except in the case of a
Default in the payment of principal of, premium, if any, or interest on any
Note, the Trustee may withhold notice if and so long as a committee of its
Trust Officers in good faith determines that withholding notice is in the
interests of the Noteholders. In addition, the Company is required to deliver,
to the Trustee, within 120 days after the end of each fiscal year, a certificate
indicating whether the signers thereof know of any Event of Default that
occurred during the previous year. The Company also is required to deliver to
the Trustee, within 30 days

 

 

after the occurrence thereof, written notice of any
event which would constitute certain Defaults, their status and what action the
Company is taking or proposes to take in respect thereof. 

 

16.           Subsequent Issuance

 

The
Company may only issue Additional Notes in accordance with Section 4.14 of the
Indenture.

 

The
Company agrees, and by purchasing the Notes each Holder shall be deemed to have
agreed, that upon the issuance by the Company of any Additional Notes, if the
Company determines that such Additional Notes should be issued with original
issue discount, immediately following such issuance (and any issuance of
Additional Notes thereafter), a portion of each Holder's Original Notes and/or
Additional Notes, as applicable, will automatically, without any action by such
Holder, be exchanged (the "Automatic Exchange") for a portion of each
other Holder's Notes, such that immediately after the Automatic Exchange, each
Holder will hold Notes issued prior to the date of issuance of such Additional
Notes and such Additional Notes in the same proportion as the ratio of the then
outstanding aggregate principal amount of Notes such to the then outstanding
aggregate principal amount of such Additional Notes.  The aggregate stated principal amount of Notes owned by each
Holder will not change as a result of the Automatic Exchange.  Immediately following the Automatic Exchange,
the Company and the Trustee will instruct DTC to facilitate the combination of
the Notes issued prior to the date of issuance of such Additional Notes and
such Additional Notes into indivisible units.

 

At
least [ten (10)] business days prior to the closing of the issuance of
Additional Notes that will result in an Automatic Exchange, the Company shall
notify the Trustee, in writing of its intention to consummate such subsequent
issuance and shall instruct the Trustee and DTC to take any action necessary to
effect the Automatic Exchange.  Such
notice may be revoked at any time prior to the date fixed for such Automatic
Exchange.

 

The
Company agrees, and by acceptance of beneficial ownership in the Notes each
beneficial owner of the Notes shall be deemed to have agreed, that (1) the
Company will report any "original issue discount" (as determined for
U.S. federal income tax purposes) associated with the Original Notes and
Additional Notes among all beneficial owners in proportion to their ownership
of the aggregate principal amount of Notes and (2) each beneficial owner of the
Notes shall report such original issue discount in this manner and shall not
take an inconsistent position for any applicable tax purpose.

 

17.           Trustee Dealings with the Company

 

Subject
to certain limitations imposed by the TIA, the Trustee under the Indenture, in
its individual or any other capacity, may become the owner or pledgee of Notes
and may otherwise deal with and collect obligations owed to it by the Company
or its Affiliates and may otherwise deal with the Company or its Affiliates
with the same rights it would have if it were not Trustee.

 

18.           No Recourse Against Others

 

A
director, officer, employee or stockholder of the Company or any Guarantor
shall not have any liability for any obligations of the Company or any
Guarantor under the Notes, the 

 

 

Guarantees or the Indenture or for any claim based on, in respect of or
by reason of such obligations or their creation. By accepting a Note, each
Holder waives and releases all such liability. The waiver and release are part
of the consideration for the issue of the Notes.

 

19.           Authentication

 

This
Note shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent) manually signs the certificate of authentication on the
other side of this Note.

 

20.           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 entireties), JT TEN (=joint
tenants with rights of survivorship and not as tenants in common), CUST
(=custodian), and U/GIMIA (=Uniform Gift to Minors Act).

 

21.           Governing Law

 

THIS
NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK.  THE HOLDERS AGREE TO
SUBMIT TO THE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT LOCATED
IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THE INDENTURE OR THIS NOTE.

 

22.           CUSIP Numbers

 

Pursuant
to a recommendation promulgated by the Committee on Uniform Note Identification
Procedures, the Company has caused CUSIP numbers to be printed on the Notes and
has directed the Trustee to use CUSIP numbers in notices of redemption as a
convenience to Holders. No representation is made as to the accuracy of such
numbers either as printed on the Notes or as contained in any notice of
redemption and reliance may be placed only on the other identification numbers
placed thereon.

 

23.           Tax Treatment.

 

By
acceptance of beneficial ownership interest in this Note each beneficial Owner
of Notes will be deemed to have agreed, (1) to treat itself as owner of the
Notes for all purposes, including the preparation and filing of any United
States federal, state, local or foreign tax return, report, or other
information; (2) to treat the Notes as indebtedness for all tax purposes and
(3) to treat the acquisition of an IDS as the acquisition of the Notes and
Common Stock which are represented by the IDS and to allocate the purchase
price of the IDS between the Notes and the Common Stock in the proportions as
$__________ and $ _________ respectively.

 

The
Company will furnish to any Holder of Notes upon written request and without
charge to the Holder a copy of the Indenture which has in it the text of this
Note.

 

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below:

 

I or we assign and transfer this Note to

 

(Print or type assignee’s name, address and
zip code)

 

(Insert assignee’s soc. sec. or tax I.D. No.)

 

and
irrevocably appoint                           
agent to transfer this Note on the books of the Company. The agent may
substitute another to act for him.

 

 

	
   

  
	
  Date: 

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
  Sign exactly as your
  name appears on the other side of this Note.

  	
   

  

 

 

 

[TO BE ATTACHED TO GLOBAL NOTES]

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL
NOTE

 

The initial principal amount of this Global
Note is $[           ].
The following increases or decreases in this Global Note have been made:

 

	
  Date of

  Exchange

  	
  Amount of decrease

  in Principal Amount

  of this Global Note

  	
  Amount of increase

  in Principal

  Amount of this

  Global Note

  	
  Principal amount of

  this Global Note

  following such

  decrease or increase

  	
  Signature of authorized

  signatory of Trustee or

  Notes Custodian

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have this Note
purchased by the Company pursuant to Section 4.06 (Asset Sale) or 4.09 (Change
of Control) of the Indenture, check the box:

 

Asset Sale  o       Change of Control  o

 

If you want to elect to have only part of
this Note purchased by the Company pursuant to Section 4.06 or 4.09 of the
Indenture, state the amount:

 

 

	
  Date: 

  	
   

  	
  Your Signature:

  	
   

  
	
  (Sign exactly as your
  name appears on the other side of the Note)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  
	
   

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

  
					

 

 

EXHIBIT B

 

FORM OF SUPPLEMENTAL INDENTURE FOR NEW
GUARANTORS

 

SUPPLEMENTAL INDENTURE (this
"Supplemental Indenture") dated as of    , among [GUARANTOR] (the "New Guarantor"), an
indirect subsidiary of OTELCO INC. (or its successor), a Delaware corporation
(the "Company "), [EXISTING GUARANTORS] and Wells Fargo Bank, National
Association, a national banking association, as trustee under the Indenture
referred to below (the "Trustee").

 

W I T N E S S E T H :

 

WHEREAS the Company and [OLD GUARANTORS] (the
"Existing Guarantors") have heretofore executed and delivered to the
Trustee an Indenture (the "Indenture") dated as of              , 2004, providing for the
issuance of an unlimited aggregate principal amount of notes (the
"Notes") and [Original Notes have been issued and our outstanding
under the Indenture];

 

WHEREAS
Section 4.12 of the Indenture provides that under certain circumstances the
Company is required to cause the New Guarantor to execute and deliver to the
Trustee a supplemental indenture pursuant to which the New Guarantor shall
unconditionally guarantee all the Company’s obligations under the Notes
pursuant to a Guarantee on the terms and conditions set forth herein; and

 

WHEREAS
pursuant to Section 9.01 of the Indenture, the Trustee, the Company and the
Existing Guarantors are authorized to execute and deliver this Supplemental
Indenture;

 

NOW
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the New Guarantor,
the Company, the Existing Guarantors and the Trustee mutually covenant and
agree for the equal and ratable benefit of the holders of the Notes as follows:

 

1.             Agreement to Guarantee.  The New Guarantor hereby agrees, jointly and
severally with all the Existing Guarantors, to unconditionally guarantee the
Company’s obligations under the Notes on the terms and subject to the
conditions set forth in Article 11 of the Indenture and to be bound by all
other applicable provisions of the Indenture and the Notes.

 

2.             Ratification of Indenture; Supplemental
Indentures Part of Indenture. 
Except as expressly amended hereby, the Indenture is in all respects
ratified and confirmed and all the terms, conditions and provisions thereof
shall remain in full force and effect. This Supplemental Indenture shall form a
part of the Indenture for all purposes, and every holder of Notes heretofore or
hereafter authenticated and delivered shall be bound hereby.

 

3.             Governing Law.  THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.  THE TRUSTEE, THE COMPANY, ANY OTHER OBLIGOR
IN RESPECT OF THE NOTES AND (BY THEIR ACCEPTANCE OF THE NOTES) THE HOLDERS
AGREE TO SUBMIT TO THE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT
LOCATED IN THE BOROUGH OF

 

 

MANHATTAN, IN THE CITY OF NEW YORK, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE OR THE NOTES.

 

4.             Trustee Makes No Representation.  The Trustee makes no representation as to
the validity or sufficiency of this Supplemental Indenture.

 

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

 

6.             Effect of Headings.  The Section headings herein are for
convenience only and shall not effect the construction thereof.

 

7.             Definitions.  Capitalized terms used but not defined
herein shall have the meanings given to them in the Indenture.

 

 

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

 

	
   

  	
  [NEW GUARANTOR]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OTELCO INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [EXISTING GUARANTORS]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL
  ASSOCIATION, as Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

EXHIBIT C

 

FORM OF SOLVENCY CERTIFICATE

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]