Document:

Exhibit 4.1

 

 

 

 

ENERGYSOLUTIONS, INC.

ENERGYSOLUTIONS,
LLC

as Issuers

 

and the Guarantors party hereto

 

 

10.75% Senior Notes due 2018

 

INDENTURE

 

Dated as of August 13, 2010

 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

as Trustee

 

 

 

 

 

CROSS-REFERENCE TABLE

 

	
  TIA

  Section

  	
   

  	
  Indenture

  Section

  
	
   

  	
   

  	
   

  
	
  310(a)(1)

  	
   

  	
  7.10

  
	
  (a)(2)

  	
   

  	
  7.10

  
	
  (a)(3)

  	
   

  	
  N.A.

  
	
  (a)(4)

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
  7.08;
  7.10

  
	
  (c)

  	
   

  	
  N.A.

  
	
  311(a)

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
  N.A.

  
	
  312(a)

  	
   

  	
  2.05

  
	
  (b)

  	
   

  	
  11.03

  
	
  (c)

  	
   

  	
  11.03

  
	
  313(a)

  	
   

  	
  7.06

  
	
  (b)(1)

  	
   

  	
  N.A.

  
	
  (b)(2)

  	
   

  	
  7.06

  
	
  (c)

  	
   

  	
  11.02

  
	
  (d)

  	
   

  	
  7.06

  
	
  314(a)

  	
   

  	
  4.02;
  4.14; 11.02

  
	
  (b)

  	
   

  	
  N.A.

  
	
  (c)(1)

  	
   

  	
  11.04

  
	
  (c)(2)

  	
   

  	
  11.04

  
	
  (c)(3)

  	
   

  	
  N.A.

  
	
  (d)

  	
   

  	
  N.A.

  
	
  (e)

  	
   

  	
  11.05

  
	
  (f)

  	
   

  	
  4.14

  
	
  315(a)

  	
   

  	
  7.01

  
	
  (b)

  	
   

  	
  7.05;
  11.02

  
	
  (c)

  	
   

  	
  7.01

  
	
  (d)

  	
   

  	
  7.01

  
	
  (e)

  	
   

  	
  6.11

  
	
  316(a)(last
  sentence)

  	
   

  	
  11.0

  
	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
  (a)(2)

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
  6.07

  
	
  317(a)(1)

  	
   

  	
  6.08

  
	
  (a)(2)

  	
   

  	
  6.09

  
	
  (b)

  	
   

  	
  2.04

  
	
  318(a)

  	
   

  	
  11.01

  

 

N.A. means Not Applicable.

 

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

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Article 1

  	
   

  
	
   

  	
   

  
	
  Definitions
  and Incorporation by Reference

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  Definitions

  	
  1

  
	
  SECTION 1.02.

  	
  Other Definitions

  	
  32

  
	
  SECTION 1.03.

  	
  Incorporation by Reference of Trust Indenture Act

  	
  32

  
	
  SECTION 1.04.

  	
  Rules of Construction

  	
  32

  
	
   

  	
   

  	
   

  
	
  Article 2

  	
   

  
	
   

  	
   

  
	
  The Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  Form and Dating

  	
  33

  
	
  SECTION 2.02.

  	
  Execution and Authentication

  	
  34

  
	
  SECTION 2.03.

  	
  Registrar and Paying Agent

  	
  34

  
	
  SECTION 2.04.

  	
  Paying Agent To Hold Money in Trust

  	
  35

  
	
  SECTION 2.05.

  	
  Securityholder Lists

  	
  35

  
	
  SECTION 2.06.

  	
  Transfer and Exchange

  	
  35

  
	
  SECTION 2.07.

  	
  Replacement Securities

  	
  36

  
	
  SECTION 2.08.

  	
  Outstanding Securities

  	
  36

  
	
  SECTION 2.09.

  	
  Temporary Securities

  	
  36

  
	
  SECTION 2.10.

  	
  Cancellation

  	
  36

  
	
  SECTION 2.11.

  	
  Defaulted Interest

  	
  37

  
	
  SECTION 2.12.

  	
  CUSIP Numbers, ISINs, etc

  	
  37

  
	
  SECTION 2.13.

  	
  Issuance of Additional Securities

  	
  37

  
	
   

  	
   

  	
   

  
	
  Article 3

  	
   

  
	
   

  	
   

  
	
  Redemption

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Notices to Trustee

  	
  38

  
	
  SECTION 3.02.

  	
  Selection of Securities 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.

  	
  Securities Redeemed in Part

  	
  39

  
	
   

  	
   

  	
   

  
	
  Article 4

  	
   

  
	
   

  	
   

  
	
  Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  Payment of Securities

  	
  40

  
	
  SECTION 4.02.

  	
  Reports

  	
  40

  

 

i

 

	
  SECTION 4.03.

  	
  Limitation on Indebtedness

  	
  41

  
	
  SECTION 4.04.

  	
  Limitation on Restricted Payments

  	
  45

  
	
  SECTION 4.05.

  	
  Limitation on Restrictions on Distributions from Restricted
  Subsidiaries

  	
  47

  
	
  SECTION 4.06.

  	
  Limitation on Sales of Assets and Subsidiary Stock

  	
  50

  
	
  SECTION 4.07.

  	
  Limitation on Affiliate Transactions

  	
  52

  
	
  SECTION 4.08.

  	
  Limitation on Line of Business

  	
  54

  
	
  SECTION 4.09.

  	
  Reserved

  	
  54

  
	
  SECTION 4.10.

  	
  Change of Control

  	
  54

  
	
  SECTION 4.11.

  	
  Limitation on Liens

  	
  55

  
	
  SECTION 4.12.

  	
  Limitation on Sale/Leaseback Transactions

  	
  55

  
	
  SECTION 4.13.

  	
  Future Subsidiary Guarantors

  	
  55

  
	
  SECTION 4.14.

  	
  Compliance Certificate

  	
  56

  
	
   

  	
   

  	
   

  
	
  Article 5

  	
   

  
	
   

  	
   

  
	
  Successor
  Company

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
  When Company May Merge or Transfer Assets

  	
  56

  
	
   

  	
   

  	
   

  
	
  Article 6

  	
   

  
	
   

  	
   

  
	
  Defaults
  and Remedies

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  Events of Default

  	
  59

  
	
  SECTION 6.02.

  	
  Acceleration

  	
  60

  
	
  SECTION 6.03.

  	
  Other Remedies

  	
  61

  
	
  SECTION 6.04.

  	
  Waiver of Past Defaults

  	
  61

  
	
  SECTION 6.05.

  	
  Control by Majority

  	
  61

  
	
  SECTION 6.06.

  	
  Limitation on Suits

  	
  61

  
	
  SECTION 6.07.

  	
  Rights of Holders to Receive Payment

  	
  62

  
	
  SECTION 6.08.

  	
  Collection Suit by Trustee

  	
  62

  
	
  SECTION 6.09.

  	
  Trustee May File Proofs of Claim

  	
  62

  
	
  SECTION 6.10.

  	
  Priorities

  	
  63

  
	
  SECTION 6.11.

  	
  Undertaking for Costs

  	
  63

  
	
  SECTION 6.12.

  	
  Waiver of Stay or Extension Laws

  	
  63

  
	
   

  	
   

  	
   

  
	
  Article 7

  	
   

  
	
   

  	
   

  
	
  Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
  Duties of Trustee

  	
  63

  
	
  SECTION 7.02.

  	
  Rights of Trustee

  	
  65

  
	
  SECTION 7.03.

  	
  Individual Rights of Trustee

  	
  65

  
	
  SECTION 7.04.

  	
  Trustee’s Disclaimer

  	
  65

  
	
  SECTION 7.05.

  	
  Notice of Defaults

  	
  66

  
	
  SECTION 7.06.

  	
  Reports by Trustee to Holders

  	
  66

  

 

ii

 

	
  SECTION 7.07.

  	
  Compensation and Indemnity

  	
  66

  
	
  SECTION 7.08.

  	
  Replacement of Trustee

  	
  67

  
	
  SECTION 7.09.

  	
  Successor Trustee by Merger

  	
  68

  
	
  SECTION 7.10.

  	
  Eligibility; Disqualification

  	
  68

  
	
  SECTION 7.11.

  	
  Preferential Collection of Claims Against the Issuers

  	
  68

  
	
   

  	
   

  	
   

  
	
  Article 8

  	
   

  
	
   

  	
   

  
	
  Discharge
  of Indenture; Defeasance

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01.

  	
  Discharge of Liability on Securities; Defeasance

  	
  68

  
	
  SECTION 8.02.

  	
  Conditions to Defeasance

  	
  69

  
	
  SECTION 8.03.

  	
  Application of Trust Money

  	
  71

  
	
  SECTION 8.04.

  	
  Repayment to Issuers

  	
  71

  
	
  SECTION 8.05.

  	
  Indemnity for Government Obligations

  	
  71

  
	
  SECTION 8.06.

  	
  Reinstatement

  	
  71

  
	
   

  	
   

  	
   

  
	
  Article 9

  	
   

  
	
   

  	
   

  
	
  Amendments

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
  Without Consent of Holders

  	
  72

  
	
  SECTION 9.02.

  	
  With Consent of Holders

  	
  73

  
	
  SECTION 9.03.

  	
  Compliance with Trust Indenture Act

  	
  74

  
	
  SECTION 9.04.

  	
  Revocation and Effect of Consents and Waivers

  	
  74

  
	
  SECTION 9.05.

  	
  Notation on or Exchange of Securities

  	
  74

  
	
  SECTION 9.06.

  	
  Trustee to Sign Amendments

  	
  74

  
	
  SECTION 9.07.

  	
  Payment for Consent

  	
  75

  
	
   

  	
   

  	
   

  
	
  Article 10

  	
   

  
	
   

  	
   

  
	
  Subsidiary
  Guarantees

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01.

  	
  Guarantees

  	
  75

  
	
  SECTION 10.02.

  	
  Limitation on Liability

  	
  77

  
	
  SECTION 10.03.

  	
  Successors and Assigns

  	
  77

  
	
  SECTION 10.04.

  	
  No Waiver

  	
  77

  
	
  SECTION 10.05.

  	
  Modification

  	
  77

  
	
  SECTION 10.06.

  	
  Release of Subsidiary Guarantor

  	
  77

  
	
  SECTION 10.07.

  	
  Contribution

  	
  78

  
	
   

  	
   

  	
   

  
	
  Article 11

  	
   

  
	
   

  	
   

  
	
  Miscellaneous

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11.01.

  	
  Trust Indenture Act Controls

  	
  78

  
	
  SECTION 11.02.

  	
  Notices

  	
  78

  
	
  SECTION 11.03.

  	
  Communication by Holders with Other Holders

  	
  79

  

 

iii

 

	
  SECTION 11.04.

  	
  Certificate and Opinion as to Conditions Precedent

  	
  79

  
	
  SECTION 11.05.

  	
  Statements Required in Certificate or Opinion

  	
  79

  
	
  SECTION 11.06.

  	
  When Securities Disregarded

  	
  80

  
	
  SECTION 11.07.

  	
  Rules by Trustee, Paying Agent and Registrar

  	
  80

  
	
  SECTION 11.08.

  	
  Legal Holidays

  	
  80

  
	
  SECTION 11.09.

  	
  Governing Law

  	
  80

  
	
  SECTION 11.10.

  	
  No Recourse Against Others

  	
  80

  
	
  SECTION 11.11.

  	
  Successors

  	
  80

  
	
  SECTION 11.12.

  	
  Multiple Originals

  	
  81

  
	
  SECTION 11.13.

  	
  Table of Contents; Headings

  	
  81

  
	
   

  	
   

  	
   

  
	
  Rule 144A/Regulation S Appendix

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A
  –

  	
  Form of
  Initial Security

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit B
  –

  	
  Form of
  Exchange Security

  	
   

  
				

 

iv

 

INDENTURE
dated as of August 13, 2010, among ENERGYSOLUTIONS, INC.,
a Delaware corporation (the “Company”), ENERGYSOLUTIONS,
LLC, a Utah limited liability company (the “Co-Issuer”, together with the
Company, the “Issuers”), each of the Guarantors named herein, as Guarantors, and WELLS FARGO BANK, NATIONAL
ASSOCIATION (the “Trustee”).

 

Each
party agrees as follows for the benefit of the other parties and for the equal
and ratable benefit of the Holders (as defined below) of the Issuers’ Initial Securities and Exchange Securities
(in each case, as defined in the Rule 144A/Regulation S Appendix attached
hereto, collectively, the “Securities”):

 

Article 1

 

Definitions
and Incorporation by Reference

 

SECTION 1.01.      Definitions.

 

“Additional Assets” means (1) any property, plant or
equipment used in a Related Business; (2) the Equity Interests of a Person
that becomes a Restricted Subsidiary as a result of the acquisition of such
Equity Interests by the Company or another Restricted Subsidiary; or
(3) Equity Interests constituting a minority interest in any Person that
at such time is a Restricted Subsidiary; provided, however, that
any such Restricted Subsidiary described in clause (2) or (3) above
is primarily engaged in a Related Business.

 

“Additional Securities”
means any Securities issued under this Indenture after the Issue Date and in
compliance with Sections 2.13 and 4.03, it being understood that any Securities
issued in exchange for or replacement of any Initial Security issued on the
Issue Date shall not be an Additional Security, including any such Securities
issued pursuant to a Registration Rights Agreement.

 

“Adjusted Treasury Rate”
means, with respect to any redemption date, (i) the yield, under the
heading which represents the average for the immediately preceding week,
appearing in the most recently published statistical release designated “H.15(519)”
or any successor publication which is published weekly by the Board of
Governors of the Federal Reserve System and which establishes yields on
actively traded United States Treasury securities adjusted to constant maturity
under the caption “Treasury Constant Maturities”, for the maturity
corresponding to the Comparable Treasury Issue (if no maturity is within three
months before or after August 15, 2014, yields for the two published
maturities most closely corresponding to the Comparable Treasury Issue shall be
determined and the Adjusted Treasury Rate shall be interpolated or extrapolated
from such yields on a straight-line basis, rounding to the nearest month) or
(ii) if such release (or any successor release) is not published during
the week 

 

 

preceding the calculation date or does not
contain such yields, the rate per year equal to the semi-annual equivalent
yield to maturity of the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the Comparable Treasury Price for such
redemption date, in each case calculated on the third Business Day immediately
preceding the redemption date, plus 0.50%.

 

“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 the purposes of this definition, “control”
when used with respect to any Person means the power to direct the management
and policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

 

“Applicable Premium”  means with respect to a Security at any redemption date,
the greater of (i) 1.00% of the principal amount of such Security at such
time and (ii) the excess of (A) the present value at such
redemption date of (1) the redemption price of such Security on August 15,
2014 (such redemption price being described in the second paragraph of section
5 of the Securities exclusive of any accrued interest) plus (2) all
required remaining scheduled interest payments due on such Security through August 15,
2014 (but excluding accrued and unpaid interest to the redemption date),
computed using a discount rate equal to the Adjusted Treasury Rate, over
(B) the principal amount of such Security on such redemption date.

 

“Asset Disposition” means any sale, lease, transfer or other disposition (or
series of related sales, leases, transfers or dispositions) by the Company or
any Restricted Subsidiary, including any disposition by means of a merger,
consolidation or similar transaction (each referred to for the purposes of this
definition as a “disposition”), of:

 

(1)           any Equity
Interests of a Restricted Subsidiary (other than directors’ (or similar
persons) qualifying shares or shares required by applicable law to be held by a
Person other than the Company or a Restricted Subsidiary); or

 

(2)           all or
substantially all the assets of any division or line of business of the Company
or any Restricted Subsidiary; or

 

(3)           any other
assets of the Company or any Restricted Subsidiary outside of the ordinary
course of business of the Company or such Restricted Subsidiary

 

other
than, in the case of clauses (1), (2) and (3) above, (A) a
disposition by a Restricted Subsidiary to the Company or by the Company or a
Restricted Subsidiary to a Restricted Subsidiary (other than to a Special
Purpose Subsidiary); (B) for purposes of Section 4.06
only, (x) a disposition that constitutes a Restricted Payment (or
would constitute a Restricted Payment but for the exclusions from the
definition thereof) and that is not prohibited by Section 4.04, and
(y) a disposition of all or substantially all the assets of the Company in
accordance with Section 5.01; (C) a disposition of assets with a Fair
Market 

 

2

 

Value
of less than $5.0 million; (D) a disposition of cash or Cash
Equivalents; (E) the disposition of equipment, inventory (including raw
materials, work-in-progress and finished goods), accounts receivable or other
assets or rights in the ordinary course of business, including any excess,
obsolete, damaged, worn-out or surplus assets no longer used or useful in the
conduct of business as then being conducted; (F) the creation of a Lien
(but not the sale or other disposition of the property subject to such Lien); (G) the
unwinding of any Hedging Obligations; (H) to the extent allowable under Section 1031
of the Code, any exchange of like property (excluding any boot thereon) for use
in a Related Business; (I) any issuance or sale of Equity Interests in, or
Indebtedness or other securities of, an Unrestricted Subsidiary; and (J) dispositions
of assets of a Special Purpose Subsidiary pursuant to the Zion Agreements or
other SPS Project Documentation with a Fair Market Value not exceeding the Fair
Market Value of any assets required to be disposed of or transferred pursuant
to the Zion Agreements or other SPS Project Documentation, as applicable.

 

“Attributable Debt” in respect of a Sale/Leaseback Transaction means, as at the
time of determination, the present value of the total obligations of the lessee
for rental payments during the remaining term of the lease included in such
Sale/Leaseback Transaction (including any period for which such lease has been
extended); provided, however, that if such Sale/Leaseback
Transaction results in a Capital Lease Obligation, the amount of Indebtedness
represented thereby will be determined in accordance with the definition of “Capital
Lease Obligation.”  Such present value
shall be calculated using a discount rate equal to the rate of interest
implicit in such transaction determined in accordance with GAAP (or, in the
absence thereof, the original yield to maturity of the Securities issued on the
Issue Date).

 

“Average Life” means, as of the date of determination, with respect to any
Indebtedness, the quotient obtained by dividing:

 

(1)           the sum of the
products of the numbers of years from the date of determination to the dates of
each successive scheduled principal payment of or redemption or similar payment
with respect to such Indebtedness multiplied by the amount of such payment by

 

(2)           the sum of all such
payments.

 

“Board of Directors” means, as to any Person, the board of directors, board of
managers or other similar body or Person performing a similar function or any
duly authorized committee thereof.

 

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

 

“Capital Lease Obligation” means an obligation that is
required to be classified and accounted for as a capital lease for financial
reporting purposes in accordance with GAAP, and the amount of Indebtedness
represented by such obligation shall be the capitalized amount of such
obligation determined in accordance with GAAP; and the Stated Maturity thereof
shall be the date of the last payment of rent or any other 

 

3

 

amount
due under such lease prior to the first date upon which such lease may be
terminated by the lessee without payment of a penalty.  For purposes of Section 4.11, a Capital
Lease Obligation will be deemed to be secured by a Lien on the property being
leased.

 

“Capital Stock” means:

 

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

 

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

 

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

 

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

 

“Cash Equivalent” means any of the following:

 

(1)           any investment
in direct obligations of the United States of America or any agency thereof or
obligations guaranteed by the United States of America or any agency thereof;

 

(2)           investments in
demand and time deposit accounts, certificates of deposit and money market
deposits maturing within six months of the date of acquisition thereof issued
by a bank or trust company which is organized under the laws of the United
States of America, any State thereof or any foreign country recognized by the
United States of America, and which bank or trust company has capital, surplus
and undivided profits aggregating in excess of $500 million (or the foreign
currency equivalent thereof) and has outstanding debt which is rated “A” (or
such similar equivalent rating) or higher by at least one nationally recognized
statistical rating organization (as defined in Rule 436 under the
Securities Act) or any money-market fund sponsored by a registered broker
dealer or mutual fund distributor;

 

(3)           repurchase
obligations with a term of not more than 30 days for underlying securities
of the types described in clause (1) above entered into with a bank
meeting the qualifications described in clause (2) above;

 

(4)           investments in
commercial paper, maturing not more than one year after the date of
acquisition, issued by a corporation (other than an Affiliate of the Company)
organized and in existence under the laws of the United States of America or
any foreign country recognized by the United States of America with a rating at
the time as of which any investment therein is made of “P-1” (or

 

4

 

higher)
according to Moody’s Investors Service, Inc. or “A-1” (or higher)
according to Standard & Poor’s Ratings Group;

 

(5)           investments in
securities with maturity of one year or less from the date of acquisition
issued or fully guaranteed by any state, commonwealth or territory of the
United States of America, or by any political subdivision or taxing authority
thereof, and rated at least “A” by Standard & Poor’s Ratings Group or “A”
by Moody’s Investors Service, Inc.;

 

(6)           investments in
money market funds that invest substantially all their assets in securities of
the types described in clauses (1) through (5) above; and

 

(7)           to the extent
held by a Foreign Subsidiary, other short-term Investments utilized by such
Foreign Subsidiary in accordance with normal investment practices for cash
management in Investments of a type analogous to those described in clauses (1) through
(6) above.

 

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

 

(1)           the Company becomes aware that any “person” or “group” (as such terms are
used in Sections 13(d) and 14(d) of the Exchange Act) is or
becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under
the Exchange Act), directly or indirectly, of more than 50% of the total voting
power of the Voting Stock of the Company; provided, however, that
for purposes of this clause (1) such other Person shall be deemed to
have “beneficial ownership” of any Voting Stock of a Person held by any other
Person (the “parent entity”), if such other Person is the beneficial owner (as
defined above in this clause (1)), directly or indirectly, of more than
50% of the voting power of the Voting Stock of such parent entity;

 

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

 

(3)           the sale of all or substantially all the assets of the Company
(determined on a consolidated basis) to another Person other than a transaction
following which each transferee becomes an obligor in respect of the Securities
and a Subsidiary of the transferor of such assets.

 

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

 

“Co-Issuer” means the party named as such in this Indenture
until a successor replaces it and, thereafter, means the successor.

 

“Company” means the party named as such in this Indenture
until a successor replaces it and, thereafter, means the successor and, for
purposes of any provision contained herein and required by the TIA, each other
obligor on the indenture securities.

 

5

 

“Comparable Treasury Issue”
means the United States Treasury security selected by the Quotation Agent as
having a maturity comparable to the remaining term of the Securities from the
redemption date to August 15, 2014, that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of a maturity most nearly equal to August 15,
2014.

 

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

 

“Consolidated Coverage Ratio” as of any date of determination for
any period means the ratio of (x) the aggregate amount of EBITDA for such
period to (y) Consolidated Interest Expense for such period; provided,
however, that:

 

(1)           if the Company
or any Restricted Subsidiary has Incurred any Indebtedness (other than ordinary
working capital borrowings) subsequent to the commencement of the period for
which the Consolidated Coverage Ratio is being calculated and on or prior to
the date as of which the Consolidated Coverage Ratio is being determined (the “Calculation
Date”) that remains outstanding or if the transaction giving rise to the
need to calculate the Consolidated Coverage Ratio is an Incurrence of
Indebtedness, or both, EBITDA and Consolidated Interest Expense for such period
shall be calculated after giving effect on a pro forma
basis to such Indebtedness as if such Indebtedness had been Incurred on the
first day of such period;

 

(2)           if the Company
or any Restricted Subsidiary has repaid, repurchased, defeased or otherwise
discharged any Indebtedness since the beginning of such period or if any
Indebtedness is to be repaid, repurchased, defeased or otherwise discharged (in
each case other than Indebtedness Incurred under any revolving credit facility
unless such Indebtedness has been permanently repaid and has not been replaced)
on the date of the transaction giving rise to the need to calculate the
Consolidated Coverage Ratio, EBITDA and Consolidated Interest Expense for such
period shall be calculated on a pro forma basis
as if such discharge had occurred on the first day of such period and as if the
Company or such Restricted Subsidiary had not earned the interest income
actually earned during such period in respect of cash or Cash Equivalents used
to repay, repurchase, defease or otherwise discharge such Indebtedness;

 

(3)           if since the
beginning of such period the Company or any Restricted Subsidiary shall have
made any Asset Disposition, EBITDA for such period shall be reduced by an
amount equal to EBITDA (if positive) directly attributable to the assets which
are the subject of such Asset Disposition for such period, or increased by an
amount equal to EBITDA (if negative), directly attributable thereto for such
period and Consolidated Interest Expense for such period shall be reduced by an
amount equal to the Consolidated Interest Expense directly attributable to any
Indebtedness of the Company or any Restricted 

 

6

 

Subsidiary
repaid, repurchased, defeased or otherwise discharged with respect to the
Company and its continuing Restricted Subsidiaries in connection with such
Asset Disposition for such period (or, if the Equity Interests of any
Restricted Subsidiary is sold, the Consolidated Interest Expense for such
period directly attributable to the Indebtedness of such Restricted Subsidiary
to the extent the Company and its continuing Restricted Subsidiaries are no
longer liable for such Indebtedness after such sale);

 

(4)           if since the
beginning of such period the Company or any Restricted Subsidiary (by merger or
otherwise) shall have made an Investment in any Restricted Subsidiary (or any
Person which becomes a Restricted Subsidiary) or an acquisition of assets,
including any acquisition of assets occurring in connection with a transaction
requiring a calculation to be made hereunder, which constitutes all or
substantially all of an operating unit of a business, EBITDA and Consolidated
Interest Expense for such period shall be calculated after giving pro forma effect thereto (including the Incurrence of any
Indebtedness) as if such Investment or acquisition had occurred on the first
day of such period; and

 

(5)           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 Asset Disposition, any
Investment or acquisition of assets that would have required an adjustment
pursuant to clause (3) or (4) above if made by the Company or a
Restricted Subsidiary during such period, EBITDA and Consolidated Interest
Expense for such period shall be calculated after giving pro forma
effect thereto as if such Asset Disposition, Investment or acquisition had
occurred on the first day of such period.

 

For
purposes of this definition, whenever pro forma
effect is to be given to an acquisition of assets, the amount of income or
earnings relating thereto and the amount of Consolidated Interest Expense
associated with any Indebtedness Incurred in connection therewith, the pro forma calculations shall be determined in good faith by
a responsible financial or accounting Officer of the Company.  If any Indebtedness bears a floating rate of
interest and is being given pro forma
effect, the interest on such Indebtedness shall be calculated as if the rate in
effect on the date of determination had been the applicable rate for the entire
period (taking into account any Interest Rate Agreement applicable to such
Indebtedness if such Interest Rate Agreement has a remaining term in excess of
12 months).  If any Indebtedness is
incurred under a revolving credit facility and is being given pro forma effect, the interest on such Indebtedness shall be
calculated based on the average daily balance of such Indebtedness for the four
fiscal quarters (taking into account any interest rate option, swap, cap or
similar agreement applicable to such Indebtedness), provided such Indebtedness
was not Incurred to make an Investment.

 

“Consolidated Interest Expense” means, for any period, the
consolidated interest expense of the Company and its consolidated Restricted
Subsidiaries for such period, on a consolidated basis determined in accordance
with GAAP, plus, to the extent 

 

7

 

not
included in consolidated interest expense, and to the extent incurred by the
Company or its Restricted Subsidiaries, without duplication:

 

(1)           interest
expense attributable to Capital Lease Obligations, the interest portion of rent
expense associated with Attributable Debt in respect of the relevant lease
giving rise thereto, determined as if such lease were a capitalized lease in
accordance with GAAP, and the interest component of any deferred payment
obligations;

 

(2)           amortization of
debt discount (including the amortization of original issue discount resulting
from the issuance of Indebtedness at less than par) and debt issuance cost;
provided, however, that any amortization of bond premium will be credited to
reduce Consolidated Interest Expense unless, pursuant to GAAP, such amortization
of bond premium has otherwise reduced Consolidated Interest Expense;

 

(3)           capitalized
interest;

 

(4)           non-cash
interest expense; provided, however, that any non-cash interest expense or
income attributable to the movement in the mark to market valuation of Hedging
Obligations or other derivative instruments pursuant to GAAP shall be excluded
from the calculation of Consolidated Interest Expense;

 

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

 

(6)           net payments
pursuant to Hedging Obligations;

 

(7)           dividends
accrued in respect of all Disqualified Stock of the Company and all Preferred
Stock of any Restricted Subsidiary, in each case, held by Persons other than
the Company or a Wholly Owned Subsidiary (other than dividends payable solely
in Equity Interests (other than Disqualified Stock) of the Company); provided,
however, that such dividends will be multiplied by a fraction, the
numerator of which is one and the denominator of which is one minus the
effective combined tax rate of the issuer of such Preferred Stock (expressed as
a decimal) for such period (as estimated by the chief financial officer of the
Company in good faith);

 

(8)           interest
incurred in connection with Investments in discontinued operations;

 

(9)           interest
accruing on any Indebtedness of any other Person to the extent such
Indebtedness is Guaranteed by (or secured by the assets of) the Company or any
Restricted Subsidiary; and

 

(10)         the cash
contributions to any employee stock ownership plan or similar trust to the
extent such contributions are used by such plan or trust to pay 

 

8

 

interest
or fees to any Person (other than the Company) in connection with Indebtedness
Incurred by such plan or trust.

 

For
purposes of this definition, interest on Capital Lease Obligations shall be
deemed to accrue at an interest rate reasonably determined by such Person to be
the interest implicit in such Capital Lease Obligations in accordance with
GAAP.

 

“Consolidated
Net Income” means,
with respect to the Company and its Subsidiaries, the aggregate of the Net
Income of the Company and its Subsidiaries for such period, on a consolidated
basis, determined in accordance with GAAP; provided, however,
that there shall not be included in such Consolidated Net Income:

 

(1)           any Net Income
of any Person (other than the Company) if such Person is not a Restricted
Subsidiary, except that subject to the exclusion contained in clause (4) below,
the Company’s equity in the Net Income of any such Person for such period shall
be included in such Consolidated Net Income up to the aggregate amount of cash
actually distributed by such Person during such period to the Company or a
Restricted Subsidiary as a dividend, distribution, other payment or return on
Investment (subject, in the case of any amount paid to a Restricted Subsidiary,
to the limitations contained in clause (3) below);

 

(2)           any Net Income
of any Person acquired by the Company or a Subsidiary in a pooling of interests
transaction (or any transaction accounted for in a manner similar to a pooling
of interests) for any period prior to the date of such acquisition;

 

(3)           any Net Income
of any Restricted Subsidiary if such Restricted Subsidiary is subject to
restrictions, directly or indirectly, on the payment of dividends or the making
of distributions by such Restricted Subsidiary, directly or indirectly, to the
Company (but in the case of any Foreign Subsidiary, only to the extent cash
equal to such Net Income is not readily procurable to the Company by such
Foreign Subsidiary pursuant to intercompany loans, repurchases of Capital Stock
or otherwise), except that:

 

(A)          subject to the exclusion contained in clause (4) below,
the Company’s equity in the Net Income of any such Restricted Subsidiary for
such period shall be included in such Consolidated Net Income up to the
aggregate amount of cash actually distributed by such Restricted Subsidiary
during such period to the Company or another Restricted Subsidiary as a
dividend or other distribution (subject, in the case of a dividend or other
distribution paid to another Restricted Subsidiary, to the limitation contained
in this clause); and

 

(B)           the Company’s equity in a net loss of any such
Restricted Subsidiary for such period shall be included in determining such
Consolidated Net Income;

 

9

 

(4)           any gain (or
loss) realized upon the sale or other disposition of any assets of the Company,
its consolidated Subsidiaries or any other Person (including pursuant to any
sale-and-leaseback arrangement) which are not sold or otherwise disposed of in
the ordinary course of business and any gain (or loss) realized upon the sale
or other disposition of any Capital Stock of any Person;

 

(5)                                  extraordinary gains, losses
or charges;

 

(6)                                  the cumulative effect of any
change in accounting principles during such period;

 

(7)                                  any net after-tax gain (or
loss) attributable to the early retirement or conversion of Indebtedness or
Hedging Obligations;

 

(8)                                  the write-off of any debt
issuance costs;

 

(9)                                  any non-cash impairment
charges or write-off or write-down relating to goodwill or intangible assets;

 

(10)                            any non-cash SFAS 133
income (or loss) relating to hedging activities; and

 

(11)                            any non-cash expense or gain
related to recording of the fair market value of Hedging Obligations;

 

in each case, for such period.  Notwithstanding the foregoing, for the
purposes of Section 4.04 only, there shall be excluded from Consolidated
Net Income any repurchases, repayments or redemptions of Investments, proceeds
realized on the sale of Investments or return of capital to the Company or a
Restricted Subsidiary to the extent such repurchases, repayments, redemptions,
proceeds or returns increase the amount of Restricted Payments permitted under Section 4.04(a)(3)(D).

 

“Credit Agreement” means the Credit Agreement dated as of the
Issue Date, among the Company, the Co-Issuer, JPMorgan Chase Bank, N.A., as
administrative agent and collateral agent, J.P. Morgan Securities Inc., Credit
Suisse Securities (USA) LLC and Citigroup Global Markets Inc., as joint lead
arrangers and joint bookrunners, Credit Suisse AG and Citigroup Global Markets
Inc., as syndication agents, and the lenders party thereto, including any
related notes, guarantees, collateral documents, instruments and agreements
executed in connection therewith, as amended from time to time.

 

“Credit Facilities” means one or more debt facilities or agreements (including the
Credit Agreement), commercial paper facilities, securities purchase agreements,
indentures or similar agreements, in each case, with banks or other
institutional lenders or investors providing for, or acting as initial
purchasers of, revolving loans, term loans, receivables financing (including
through the sale of receivables to such lenders or to special purpose entities
formed to borrow from such lenders against such receivables), letters of credit
or the issuance and sale of securities 

 

10

 

including
any related notes, guarantees, collateral documents, instruments and agreements
executed in connection therewith, and, in each case, as amended, restated,
replaced (whether upon or after termination or otherwise), Refinanced, supplemented,
modified or otherwise changed (in whole or in part, and without limitation as
to amount, terms, conditions, covenants and other provisions) from time to
time.

 

“Currency Agreement” means any foreign exchange contract, currency swap agreement or
other agreements or arrangements with respect to currency values or currency
exchange rates.

 

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

 

“Designated Non-cash Consideration” means the Fair Market
Value of non-cash consideration received by the Company or one of its
Restricted Subsidiaries in connection with an Asset Disposition that is so
designated as Designated Non-cash Consideration pursuant to an Officers’
Certificate setting forth the basis of such valuation, less the amount of Cash
Equivalents received in connection with a subsequent sale of such Designated
Non-cash Consideration.

 

“Disqualified Stock” means, with respect to any Person, any Equity Interests which
by its terms (or by the terms of any security into which it is convertible or
for which it is exchangeable at the option of the holder) or upon the happening
of any event:

 

(1)           matures or is
mandatorily redeemable (other than redeemable only for Equity Interests of such
Person which is not itself Disqualified Stock) pursuant to a sinking fund
obligation or otherwise;

 

(2)           is convertible
or exchangeable at the option of the holder for Indebtedness or Disqualified
Stock; or

 

(3)           is mandatorily
redeemable or must be purchased upon the occurrence of certain events or
otherwise, in whole or in part;

 

in
each case on or prior to a date that is 91 days after the Stated Maturity
of the Securities.  Notwithstanding the
preceding sentence, any Capital Stock that would constitute Disqualified Stock
solely because the holders of the Capital Stock have the right to require the
Issuers to repurchase such Capital Stock upon the occurrence of a Change of
Control or an Asset Disposition will not constitute Disqualified Stock if the
terms of such Capital Stock provide that the Issuers may not repurchase or
redeem any such Capital Stock pursuant to such provisions unless such
repurchase or redemption complies with Section 4.04.

 

“Domestic Subsidiary” means any Subsidiary of the Company
that is organized under the laws of the United States of America, any state
thereof or the District of Columbia.

 

11

 

“EBITDA” for any period means the sum of Consolidated Net Income, plus
the following to the extent deducted in calculating such Consolidated Net
Income (without duplication):

 

(1)           all income tax
expense of the Company and its consolidated Restricted Subsidiaries; plus

 

(2)           Consolidated
Interest Expense; plus

 

(3)           depreciation,
amortization (including amortization of goodwill, financing costs and other
intangibles but excluding amortization of prepaid expenses that were paid in
cash in a prior period) of the Company and its Restricted Subsidiaries; plus

 

(4)           all other
non-cash charges of the Company and its consolidated Restricted Subsidiaries
(including accretion charges and compensation expenses for equity grants
issued), but excluding, in each case, any such non-cash charge to the extent
that it represents an accrual of or reserve for cash expenditures in any future
period; plus

 

(5)          any net loss from disposed or discontinued
operations;

 

less (without duplication):

 

(1)           all non-cash
items increasing Consolidated Net Income other than accruals of revenue by the
Company and its consolidated Restricted Subsidiaries in the ordinary course of
business; plus

 

(2)           any net income
from disposed or discontinued operations;

 

in
each case determined on a consolidated basis in accordance with GAAP for such
period.  Notwithstanding the foregoing,
the provision for taxes based on the income or profits of, and the depreciation
and amortization and non-cash charges of, a Restricted Subsidiary shall be
added to Consolidated Net Income to compute EBITDA only to the extent (and in
the same proportion, including by reason of minority interests) that the Net
Income of such Restricted Subsidiary was included in calculating Consolidated
Net Income.

 

“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.

 

“Equity Offering” means a public or private sale of Capital Stock (other than
Disqualified Stock and any other Preferred Stock) of the Company.

 

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

 

12

 

“Exelon” means
Exelon Generation Company, LLC, a Pennsylvania limited liability company.

 

“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 buyer, neither of whom is under undue pressure or
compulsion to complete the transaction. 
Fair Market Value will be determined (x) for amounts exceeding $15.0 million in good faith by the Board of Directors of the
Company and (y) for amounts less than $15.0 million in good faith by the Company;  provided, however, that for
purposes of Section 4.04 (a)(3)(B), if the Fair Market Value of the
property or assets in question is so determined to be in excess of $15.0
million and is received from an Affiliate of the Company, such determination
must be confirmed by an Independent Qualified Party.  For purposes of determining the Fair Market
Value of Capital Stock, the value of the Capital Stock of a Person shall be
based upon such Person’s property and assets, exclusive of goodwill or any
similar intangible asset.

 

“Foreign Subsidiary”
means any Restricted Subsidiary of the Company that is not organized under the
laws of the United States of America or any State thereof or the District of
Columbia.

 

“GAAP”
means generally accepted accounting principles in the United States of America
as in effect as of the Issue Date.

 

“Guarantee” means any obligation, contingent
or otherwise, of any Person directly or indirectly guaranteeing any
Indebtedness of any Person and any obligation, direct or indirect, contingent
or otherwise, of such Person:

 

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

 

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

 

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

 

“Guarantee Agreement” means a supplemental indenture, in a form satisfactory to the
Trustee, pursuant to which a Subsidiary Guarantor guarantees the Issuers’
obligations with respect to the Securities on the terms provided for in this
Indenture.

 

13

 

“Hedging Obligations” of any Person means the obligations of such Person pursuant to
any Interest Rate Agreement or Currency Agreement.

 

“Holder” or “Securityholder”
means the Person in whose name a Security is registered on the Registrar’s
books.

 

“Incur” means issue, assume, Guarantee, incur or otherwise become
liable for; provided, however, that any Indebtedness of a Person
existing at the time such Person becomes a Restricted Subsidiary (whether by
merger, consolidation, acquisition or otherwise) shall be deemed to be Incurred
by such Person at the time it becomes a Restricted Subsidiary.  The term “Incurrence” when used as a noun
shall have a correlative meaning.  Solely
for purposes of determining compliance with Section 4.03:

 

(1)           amortization of
debt discount or the accretion of principal with respect to a non-interest
bearing or other discount security;

 

(2)           the payment of
regularly scheduled interest in the form of additional Indebtedness of the same
instrument or the payment of regularly scheduled dividends on Equity Interests
in the form of additional Equity Interests of the same class and with the same
terms; and

 

(3)           the obligation
to pay a premium in respect of Indebtedness arising in connection with the
issuance of a notice of redemption or the making of a mandatory offer to
purchase such Indebtedness

 

will
not be deemed to be the Incurrence of Indebtedness.

 

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

 

(1)           the principal in respect of (A) indebtedness of
such Person for money borrowed and (B) indebtedness evidenced by notes,
debentures, bonds or other similar instruments for the payment of which such
Person is responsible or liable, including, in each case, any premium on such
indebtedness to the extent such premium has become due and payable;

 

(2)           all Capital Lease Obligations of such Person and all
Attributable Debt in respect of Sale/Leaseback Transactions entered into by
such Person;

 

(3)           all obligations of such Person issued or assumed as
the deferred purchase price of property, all conditional sale obligations of
such Person and all obligations of such Person under any title retention
agreement (but excluding any accounts payable or other liability to trade
creditors arising in the ordinary course of business);

 

(4)           all obligations of such Person for the reimbursement
of any obligor on any letter of credit, bankers’ acceptance or similar credit
transaction (other than obligations with respect to letters of credit securing
obligations (but

 

14

 

excluding obligations described in clauses (1) through (3) above)
entered into in the ordinary course of business of such Person to the extent
such letters of credit are not drawn upon or, if and to the extent drawn upon,
such drawing is reimbursed no later than the tenth Business Day following
payment on the letter of credit);

 

(5)           the amount of all obligations of such Person with
respect to the redemption, repayment or other repurchase of any Disqualified
Stock of such Person or, with respect to any Preferred Stock of any Subsidiary
of such Person, the amount of such Preferred Stock to be determined in
accordance with this Indenture (but excluding, in each case, any accrued
dividends);

 

(6)           all Guarantees of such Person of obligations of the
type referred to in clauses (1) through (5) above or dividends
of other Persons;

 

(7)           all obligations of the type referred to in
clauses (1) through (6) above of other Persons secured by any
Lien on any property or asset of such Person (whether or not such obligation is
assumed by such Person), the amount of such obligation being deemed to be the
lesser of the Fair Market Value of such property or assets and the amount of
the obligation so secured; and

 

(8)           to the extent not otherwise included in this
definition, Hedging Obligations of such Person.

 

Notwithstanding
the foregoing, in connection with the purchase by the Company or any Restricted
Subsidiary of any business, the term “Indebtedness” will exclude post-closing
payment adjustments to which the seller may become entitled to the extent such
payment is determined by a final closing balance sheet or such payment depends
on the performance of such business after the closing; provided, however,
that, at the time of closing, the amount of any such payment is not determinable
and, to the extent such payment thereafter becomes fixed and determined, the
amount is paid within 30 days thereafter.

 

The
amount of Indebtedness of any Person at any date shall be the outstanding
balance at such date of all unconditional obligations as described above; provided,
however, that in the case of Indebtedness sold at a discount, the amount
of such Indebtedness at any time will be the accreted value thereof at such
time.

 

The
amount of any Disqualified Stock or Preferred Stock that has a fixed
redemption, repayment or repurchase price will be calculated in accordance with
the terms of such Disqualified Stock or Preferred Stock as if such Disqualified
Stock or Preferred Stock were redeemed, repaid or repurchased on any date on
which the amount of such Disqualified Stock is to be determined pursuant to
this Indenture; provided, however, that if such Disqualified
Stock or Preferred Stock could not be required to be redeemed, repaid or
repurchased at the time of such determination, the redemption, repayment or
repurchase price will be the book value of such Disqualified Stock or Preferred
Stock as reflected in the most recent financial statements of such Person.

 

15

 

“Indenture”
means this Indenture as amended or supplemented from time to time.

 

“Independent Qualified Party” means an investment banking firm,
accounting firm or appraisal firm of national standing; provided, however,
that such firm is not an Affiliate of the Company.

 

“Interest Rate Agreement” means (1) any interest rate
swap agreement (whether from fixed to floating or from floating to fixed),
interest rate cap agreement and interest rate collar agreements; and
(2) other agreements meant to manage interest rate risk.

 

“Investment” in any Person means any direct or indirect advance, loan
(other than advances to customers in the ordinary course of business that are
recorded as accounts receivable on the balance sheet of the lender) or other
extensions of credit (including by way of Guarantee or similar arrangement) or
capital contribution to (by means of any transfer of cash or other property to
others or any payment for property or services for the account or use of
others), or any purchase or acquisition of Equity Interests, Indebtedness
or other similar instruments issued by such Person.  If the Company or any Restricted Subsidiary
issues, sells or otherwise disposes of any Equity Interests of a Person that is
a Restricted Subsidiary such that, after giving effect thereto, such Person is
no longer a Restricted Subsidiary, any Investment by the Company or any
Restricted Subsidiary in such Person remaining after giving effect thereto will
be deemed to be a new Investment at such time. 
The acquisition by the Company or any Restricted Subsidiary of a Person
that holds an Investment in a third Person will be deemed to be an Investment
by the Company or such Restricted Subsidiary in such third Person at such
time.  Except as otherwise provided for
herein, the amount of an Investment shall be its Fair Market Value at the time
the Investment is made and without giving effect to subsequent changes in
value.

 

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

 

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

 

16

 

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

 

“Issue Date” means August 13, 2010.

 

“Legal Holiday” means a Saturday, a Sunday or a day on which
banking institutions are not required to be open in the State of New York.  If a payment date is a Legal Holiday at a
place of payment, payment may be made at that place on the next succeeding day
that is not a Legal Holiday.

 

“Lien” means any mortgage,
pledge, security interest, encumbrance, lien or charge of any kind (including
any conditional sale or other title retention agreement or lease in the nature
thereof); provided, however, that in no event shall an operating
lease be deemed to constitute a lien.

 

“Net Available Cash” from an Asset Disposition means cash payments and the Fair
Market Value of any Cash Equivalents received therefrom (including any cash
payments received by way of deferred payment of principal pursuant to a note or
installment receivable or otherwise and proceeds from the sale or other
disposition of any securities (other than Cash Equivalents) received as
consideration, 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 such properties or assets or
received in any other non-cash form), in each case net of:

 

(1)           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
Disposition;

 

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

 

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

 

(4)           the deduction
of appropriate amounts provided by the seller as a reserve, in accordance with
GAAP, against any liabilities associated with the property or other assets
disposed in such Asset Disposition and retained by the Company or any
Restricted Subsidiary after such Asset Disposition,
including pension and other post-retirement liabilities and liabilities related
to environmental matters or against any indemnification obligations associated
with such transaction;

 

17

 

(5)           investment
banking, consultant, legal and accounting fees and commissions;

 

(6)           any
relocation, restructuring or severance expenses incurred in connection with
(before or after) such Asset Disposition and identified by the Company in
advance of such Asset Disposition; and

 

(7)           any portion of
the purchase price from an Asset Disposition placed in escrow, whether as a
reserve for adjustment of the purchase price, for satisfaction of indemnities
in respect of such Asset Disposition or otherwise in connection with that Asset
Disposition; provided, however, that, upon the termination of
that escrow, Net Available Cash will be increased by any portion of funds in
the escrow that are released to the Company or any Restricted Subsidiary.

 

“Net Cash Proceeds”, with respect to any issuance or sale of
Equity Interests or Indebtedness, means the aggregate cash proceeds of such
issuance or sale net of attorneys’ fees, accountants’ fees, underwriters’ or
placement agents’ fees, discounts or commissions and brokerage, consultant and
other fees actually incurred in connection with such issuance or sale and net
of taxes paid or payable as a result thereof.

 

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

 

“Obligations” means, with respect to any Indebtedness, all obligations for
principal, premium, interest, penalties, fees, indemnifications, reimbursements
and other amounts payable pursuant to the documentation governing such
Indebtedness.

 

“Offering Memorandum” means the Final Offering
Memorandum dated August 5, 2010 pursuant to which the Securities issued on
the Issue Date were offered to investors.

 

“Officer” means the Chief Executive Officer, Chief Financial Officer,
Chief Operating Officer, the President, any Executive Vice President, Senior
Vice President or Vice President, the Treasurer, the General Counsel or the
Secretary of the Company.

 

“Officers’ Certificate” means a certificate signed by two
Officers of the Company.

 

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

 

18

 

“Permitted Investment” means an Investment by the Company
or any Restricted Subsidiary in:

 

(1)           the Company, a
Restricted Subsidiary or a Person that will, upon the making of such
Investment, become a Restricted Subsidiary (other than a Special Purpose
Subsidiary); provided, however, that the primary business of such
Restricted Subsidiary is a Related Business;

 

(2)           another Person
if, as a result of such Investment, such other Person, in one transaction or a
series of transactions, is merged, consolidated or amalgamated with or into, or
transfers or conveys all or substantially all its assets to, the Company or a
Restricted Subsidiary; provided, however, that such Person’s primary
business is a Related Business;

 

(3)           cash and Cash
Equivalents;

 

(4)           receivables
owing to the Company or any Restricted Subsidiary if created or acquired in the
ordinary course of business; provided, however, that such trade
terms may include such concessionary trade terms as the Company or any such
Restricted Subsidiary deems reasonable under the circumstances;

 

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

 

(6)           loans or
advances to employees made in the ordinary course of business for bona fide
business purposes and consistent with past practices;

 

(7)           stock,
obligations or securities received in settlement of debts created in the
ordinary course of business and owing to the Company or any Restricted
Subsidiary or in satisfaction of judgments;

 

(8)           any Person to
the extent such Investment represents the non-cash portion of the consideration
received for (i) an Asset Disposition as permitted pursuant to
Section 4.06 or (ii) a disposition of assets not constituting an
Asset Disposition;

 

(9)           any Person
where such Investment was acquired by the Company or any of its Restricted Subsidiaries
(i) in compromise of obligations of trade creditors or customers that were
Incurred in the ordinary course of business, the Company or any Restricted
Subsidiary, including pursuant to any plan of reorganization or similar
arrangement upon the bankruptcy or insolvency or other reorganization of any
trade creditor or customer, (ii) in resolution of litigation, arbitration
or other disputes or (iii) as a result of foreclosure, perfection or
enforcement of any Lien;

 

(10)         any Person to
the extent such Investments consist of prepaid expenses, negotiable instruments
held for collection and lease, utility and 

 

19

 

workers’
compensation, performance and other similar deposits made in the ordinary
course of business by the Company or any Restricted Subsidiary;

 

(11)         any Person to
the extent such Investments consist of Hedging Obligations otherwise permitted
under Section 4.03;

 

(12)         any Person to
the extent such Investment exists on the Issue Date, and any extension,
modification or renewal of any such Investments existing on the Issue Date, but
only to the extent not involving additional advances, contributions or other
Investments of cash or other assets or other increases thereof (other than as a
result of the accrual or accretion of interest or original issue discount or
the issuance of pay-in-kind securities, in each case, pursuant to the terms of
such Investment as in effect on the Issue Date);

 

(13)         repurchases of
Securities;

 

(14)         guarantees of
Indebtedness of the Company or any Restricted Subsidiary permitted under
Section 4.03;

 

(15)         Investments
in Unrestricted Subsidiaries not to exceed $5.0 million in the aggregate
outstanding at any time (with the amount of each Investment being measured at
the time made and without giving effect to subsequent changes in value or the
sale, divestiture or other disposition of any such Unrestricted Subsidiary);

 

(16)         Investments
in joint ventures formed solely for the purpose of bidding on U.S. government
contracts not to exceed $10.0 million in the aggregate outstanding at any time
(with the amount of each Investment being measured at the time made and without
giving effect to subsequent changes in value or the sale, divestiture or other
disposition of any such joint venture);

 

(17)         Investments
in ZionSolutions in an aggregate amount not greater than the aggregate amount
of Investments required to be made pursuant to the Zion Agreements;

 

(18)         Investments
in Special Purpose Subsidiaries (other than ZionSolutions) not to exceed $10.0
million per Special Purpose Subsidiary or $50.0 million in the aggregate
outstanding at any time (with the amount of each Investment being measured at
the time made and without giving effect to subsequent changes in value or the
sale, divestiture or other disposition of any such Special Purpose Subsidiary);
and

 

(19)         additional
Investments, when taken together with all other Investments made pursuant to
this clause (19) and outstanding on the date such Investment is made, do
not exceed the greater of (i) $50.0 million and (ii) 3.0% of
Total Assets.

 

20

 

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

 

(1)           pledges or
deposits by such Person under workers’ compensation laws, social security laws,
unemployment insurance laws or similar legislation or regulations, or deposits
in connection with bids, tenders, contracts (other than for the payment of
Indebtedness) or leases to which such Person is a party, or deposits to secure
public or statutory obligations of such Person or deposits of cash or United
States government bonds to secure bid, 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;

 

(2)           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 and Liens arising solely by virtue of
any statutory or common law provision relating to banker’s Liens, rights of set-off
or similar rights and remedies as to deposit accounts or other funds maintained
with a creditor depository institution;

 

(3)           Liens for
taxes, assessments, or other governmental charges or claims, in each case not
yet subject to penalties for non-payment or which are being contested in good
faith by appropriate proceedings;

 

(4)           Liens or
deposits to secure the performance of statutory or regulatory obligations or in
favor of issuers of surety, appeal, indemnity or performance bonds, warranty
and contractual requirements, other obligations of a like nature or letters of
credit issued pursuant to the request of and for the account of such Persons in
the ordinary course of its business; provided, however, that such
letters of credit do not constitute Indebtedness;

 

(5)           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 property 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;

 

(6)           Liens
securing Indebtedness Incurred to finance the construction, purchase or lease
of, or repairs, improvements or additions to, property, plant or equipment of
such Person; provided, however,
that the Lien may not extend to any other property owned by such Person or any
of its Restricted Subsidiaries at the time the Lien is Incurred (other than
assets and property affixed or appurtenant thereto), and the Indebtedness
(other than any interest thereon) 

 

21

 

secured by the Lien may not be Incurred
more than 180 days after the later of the acquisition, completion of
construction, repair, improvement, addition or commencement of full operation
of the property subject to the Lien;

 

(7)           Liens to secure
Permitted Indebtedness Incurred under Sections 4.03(b)(1) and
(b)(10);

 

(8)           Liens existing
on the Issue Date;

 

(9)           Liens on
assets, property or Equity Interests of another Person at the time such other
Person becomes a Subsidiary of such Person; provided, however,
that the Liens may not extend to any other property owned by such Person or any
of its Restricted Subsidiaries (other than assets and property affixed or
appurtenant thereto);

 

(10)         Liens on
property or assets at the time such Person or any of its Subsidiaries acquires
the property or assets, including any acquisition by means of a merger or
consolidation with or into such Person or a Subsidiary of such Person; provided,
however, that the Liens may not extend to any other property or assets
owned by such Person or any of its Restricted Subsidiaries (other than assets
and property affixed or appurtenant thereto);

 

(11)         Liens securing
Indebtedness or other obligations of a Subsidiary of such Person owing to such
Person or a Restricted Subsidiary of such Person;

 

(12)         Liens securing
Hedging Obligations so long as such Hedging Obligations are permitted to be
Incurred under this Indenture;

 

(13)         Liens to secure
any Refinancing (or successive Refinancings) as a whole, or in part, of any
Indebtedness secured by any Lien referred to in the foregoing clause (6),
(8), (9) or (10); provided, however, that:

 

(A)                              such new Lien shall be limited to all or part of the same
property and assets that secured or, under the written agreements pursuant to
which the original Lien arose, could secure the original Lien (plus
improvements and accessions to such property or proceeds or distributions
thereof); and

 

(B)                                the Indebtedness secured by such Lien at such time is not
increased to any amount greater than the sum of (x) the outstanding
principal amount or, if greater, committed amount of the Indebtedness described
under clause (6), (8), (9) or (10) at the time the original Lien
became a Permitted Lien and (y) an amount necessary to pay any fees and
expenses, including premiums, related to such Refinancing, refunding,
extension, renewal or replacement;

 

22

 

(14)         Liens on
equipment of the Company or any Restricted Subsidiary granted in the ordinary
course of business to clients on or about the premises of which such equipment
is located;

 

(15)         Liens in favor
of the Company, the Co-Issuer or the Subsidiary Guarantors;

 

(16)         Liens
to secure Indebtedness of Foreign Subsidiaries on assets of such Foreign
Subsidiaries;

 

(17)         other
Liens securing Indebtedness which does not exceed $75.0 million at any one time
outstanding;

 

(18)         Liens
(i) of a collection bank arising under Section 4-208 of the Uniform
Commercial Code on items in the course of collection and (ii) in favor of
a banking institution arising as a matter of law encumbering deposits
(including the right of setoff) and which are within the general parameters
customary in the banking industry;

 

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

 

(20)         leases,
licenses, subleases or sublicenses granted to other Persons in the ordinary
course of business and not interfering in any material respect with the
business of Parent or its Subsidiaries;

 

(21)         Liens
on the assets or properties of, or on any general or limited partnership
interest, limited liability, membership interest in, or ownership of any shares
of capital stock, or other securities of, ZionSolutions to secure obligations
of the Company or the Co-Issuer to Exelon and its permitted assigns in
connection with the Zion Agreements;

 

(22)         Liens
on the assets or properties of, or on any general or limited partnership
interest, limited liability, membership interest in, or ownership of any shares
of capital stock, or other securities of, any Special Purpose Subsidiary (other
than ZionSolutions) incurred (i) as a result of the formation or
acquisition of such Special Purpose Subsidiary pursuant to the SPS Project
Documentation and (ii) in an aggregate amount not to exceed $10.0 million
per Special Purpose Subsidiary and $50.0 million in the aggregate;

 

(23)         (i) easements
granted pursuant to the Zion Agreements and (ii) easements granted solely
for the purpose of securing the availability of capacity at the Company’s
Class A low level radioactive disposal site in Clive, Utah for the
disposal of Class A low level radioactive waste in connection with
contracts entered into by Special Purpose Subsidiaries to

 

23

 

decommission non-operating nuclear power
generation facilities or to secure performance thereof; provided,
however, that  the aggregate
area of any easement granted pursuant to this clause (23) shall not exceed
10% of the availability at such Clive, Utah disposal site for the disposal of
Class A low level radioactive waste as of the Issue Date; and

 

(24)         Liens
arising out of conditional sale, title retention, consignment or similar
arrangements for sale of goods in the ordinary course of business.

 

Notwithstanding
the foregoing, “Permitted Liens” will not include any Lien described in
clause (6), (9) or (10) above to the extent such Lien applies to
any Additional Assets acquired directly or indirectly from Net Available Cash
pursuant to Section 4.06.  For
purposes of this definition, the term “Indebtedness” shall be deemed to include
interest on such Indebtedness.

 

“Person” means any individual, corporation, partnership, 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”, as applied to the Equity Interests of any Person, means
Equity Interests of any class or classes (however designated) which is
preferred as to the payment of dividends or distributions, or as to the distribution
of assets upon any voluntary or involuntary liquidation or dissolution of such
Person, over Equity Interests of any other class of such Person.

 

“principal” of a Security means the principal of the Security plus the
premium, if any, payable on the Security which is due or overdue or is to
become due at the relevant time.

 

“Purchase Money Indebtedness” means Indebtedness
(1) consisting of the deferred purchase price of property, conditional
sale obligations, obligations under any title retention agreement, other
purchase money obligations and obligations in respect of industrial revenue
bonds or similar Indebtedness, in each case where the maturity of such
Indebtedness does not exceed the anticipated useful life of the asset being
financed, and (2) Incurred to finance the acquisition by the Company or a
Restricted Subsidiary of such asset, including additions and improvements, in
the ordinary course of business; provided, however, that any Lien
arising in connection with any such Indebtedness shall be limited to the
specific asset being financed or, in the case of real property or fixtures,
including additions and improvements, the real property on which such asset is
attached; provided further, however, that such Indebtedness is
Incurred within 180 days after such acquisition of such assets.

 

“Quotation Agent”
means the Reference Treasury Dealer selected by the Trustee after consultation
with the Company.

 

24

 

“Qualified Equity Interests”
of a Person means Capital Stock of such Person other than Disqualified Capital
Stock; provided, however, that such Capital
Stock shall not be deemed Qualified Equity Interests to the extent sold to a
Subsidiary of such Person or financed, directly or indirectly, using funds
(1) borrowed from such Person or any Subsidiary of such Person or
(2) contributed, extended, guaranteed or advanced by such Person or any
Subsidiary of such Person (including, in respect of any employee stock
ownership or benefit plan).  Unless
otherwise specified, Qualified Equity Interests refers to Qualified Equity
Interests of the Company.

 

“Reference Treasury Dealer” means initially J.P. Morgan Securities Inc., Credit Suisse
Securities (USA) LLC and Citigroup Global Markets Inc., and their successors
and assigns; provided, however,
if any such Person ceases to be a primary United States government
securities dealer, the Company will select another nationally recognized
investment banking firm that is a primary United States government
securities dealer to replace such Person.

 

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

 

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

 

“Refinancing Indebtedness” means Indebtedness that Refinances
any Indebtedness of the Issuers or any Restricted Subsidiary existing on the
Issue Date or Incurred in compliance with this Indenture, including
Indebtedness that Refinances Refinancing Indebtedness; provided, however,
that:

 

(1)           such
Refinancing Indebtedness has a Stated Maturity no earlier than the Stated
Maturity of the Indebtedness being Refinanced;

 

(2)           such
Refinancing Indebtedness has an Average Life at the time such Refinancing
Indebtedness is Incurred that is equal to or greater than the Average Life of
the Indebtedness being Refinanced;

 

(3)           such
Refinancing Indebtedness has an aggregate principal amount (or if Incurred with
original issue discount, an aggregate issue price) that is equal to or less
than the aggregate principal amount (or if Incurred with original issue
discount, the aggregate accreted value) then outstanding (plus fees and
expenses, including any premium and defeasance costs) under the Indebtedness
being Refinanced; and

 

25

 

(4)           if the
Indebtedness being Refinanced is subordinated in right of payment to the
Securities or a Subsidiary Guarantee, such Refinancing Indebtedness is
subordinated in right of payment to the Securities or such Subsidiary
Guarantee, as the case may be, on terms at least as favorable to Holders of the
Securities as those contained in the documentation governing the Indebtedness
being Refinanced;

 

provided
further, however, that Refinancing Indebtedness shall not include
(A) Indebtedness of a Subsidiary that Refinances Indebtedness of the
Company or (B) Indebtedness of the Company or a Restricted Subsidiary that
Refinances Indebtedness of an Unrestricted Subsidiary.

 

“Registration Rights Agreement” means the registration rights
agreement dated the Issue Date, among the Issuers, the Subsidiary Guarantors
and the Initial Purchasers.

 

“Related Business”  means any
business in which the Company or any of its Restricted Subsidiaries was engaged
on the Issue Date and any business related, ancillary or complementary to such
business.

 

“Replacement Assets”  means any
properties or assets used or useful in a Related Business.

 

“Restricted Payment” with respect to any Person means:

 

(1)           the declaration
or payment of any dividends or any other distributions of any sort in respect
of its Equity Interests (including any payment in connection with any merger or
consolidation involving such Person) or similar payment to the direct or
indirect holders of its Equity Interests (other than (A) dividends or
distributions payable solely in its Equity Interests (other than Disqualified
Stock), (B) dividends or distributions payable solely to the Company or a
Restricted Subsidiary and (C) pro  rata dividends or other
distributions made by a Subsidiary that is not a Wholly Owned Subsidiary to
minority stockholders (or owners of an equivalent interest in the case of a
Subsidiary that is an entity other than a corporation));

 

(2)           the purchase,
repurchase, redemption, defeasance or other acquisition or retirement for value
of any Equity Interests of the Company held by any Person (other than by a
Restricted Subsidiary) or of any Equity Interests of a Restricted Subsidiary held
by any Affiliate of the Company (other than by a Restricted Subsidiary),
including in connection with any merger or consolidation and including the
exercise of any option to exchange any Equity Interests (other than into Equity
Interests of the Company that is not Disqualified Stock);

 

(3)           the purchase,
repurchase, redemption, defeasance or other acquisition or retirement for
value, prior to scheduled maturity, scheduled repayment or scheduled sinking
fund payment of any Subordinated Obligations of the Company or any Subsidiary
Guarantor (other than (A) from the Company or a 

 

26

 

Restricted
Subsidiary or (B) the purchase, repurchase, redemption, defeasance or
other acquisition or retirement of Subordinated Obligations purchased in
anticipation of satisfying a sinking fund obligation, principal installment or
final maturity, in each case due within one year of the date of such purchase,
repurchase, redemption, defeasance or other acquisition or retirement); or

 

(4)           the making of
any Investment (other than a Permitted Investment) in any Person.

 

“Restricted Subsidiary” means any Subsidiary of the Company
that is not an Unrestricted Subsidiary.

 

“Sale/Leaseback Transaction” means any transaction or series of
related transactions pursuant to which the Company or any Restricted Subsidiary
(a) sells, transfers or otherwise disposes of any property, real or
personal, whether now owned or hereinafter acquired and (b) thereafter,
leases such property.

 

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

 

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

 

“Senior Indebtedness” means with respect to any Person:

 

(1)           Indebtedness of such Person, whether outstanding on
the Issue Date or thereafter Incurred; and

 

(2)           all other Obligations of such Person (including
interest accruing on or after the filing of any petition in bankruptcy or for
reorganization relating to such Person whether or not post-filing interest is
allowed in such proceeding) in respect of Indebtedness described in
clause (1) above

 

unless,
in the case of clauses (1) and (2), in the instrument creating or
evidencing the same or pursuant to which the same is outstanding, it is
provided that such Indebtedness or other Obligations are subordinate in right
of payment to the Securities or the Subsidiary Guarantee of such Person, as the
case may be; provided, however, that Senior Indebtedness shall
not include:

 

(1)           any obligation
of such Person to the Company or any Subsidiary of the Company;

 

(2)           any liability
for Federal, state, local or other taxes owed or owing by such Person;

 

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

 

27

 

(4)           any
Indebtedness or other Obligation of such Person which is subordinate or junior
in any respect to any other Indebtedness or other Obligation of such Person
(other than Indebtedness that is subordinate with respect to payment of
proceeds of secured assets);

 

(5)           that portion of
any Indebtedness which at the time of Incurrence is Incurred in violation of
this Indenture;

 

(6)           any
Indebtedness, which, when Incurred and without respect to any election under
Section 1111(b) of Title 11, United States Code, is without
recourse to such Person;

 

(7)           any
Indebtedness of or amounts owed by such Person for compensation to employees or
for services rendered to another Person; and

 

(8)           Indebtedness of
such Person to a Subsidiary or any other Affiliate or any of such Affiliate’s
Subsidiaries.

 

“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 and, for
purposes of an Event of Default, any group of Restricted Subsidiaries that
combined would be such a Significant Subsidiary.

 

“Special Purpose Subsidiary”
shall mean (i) ZionSolutions and (ii) no more than five other
Subsidiaries, each of which Subsidiary referred to in this clause
(ii) shall (x) other than with respect to directors’ qualifying
shares or de minimis non-economic interests held by the transferor of the
assets to such Subsidiary pursuant to the applicable SPS Project Documentation
(as defined below), be a Person whose Equity Interests are wholly-owned by the
Company, the Co-Issuer or a Subsidiary Guarantor, (y) have been designated
by the Company to the Trustee as a Special Purpose Subsidiary and (z) have
been formed for the purpose of entering into one or more contracts (such
contracts and all related documentation referred to in this clause (ii), the “SPS Project Documentation”) to decommission nuclear or other
types of power facilities whereby any such Subsidiary purchases and/or leases
all or part of the assets of such facilities in part to succeed to licenses or
permits granted in respect of such facilities by the U.S. Nuclear Regulatory
Commission or any other Federal or state governmental entity.

 

“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 unless such contingency has occurred).

 

“Subordinated Obligation” means, with respect to a Person,
any Indebtedness of such Person (whether outstanding on the Issue Date or
thereafter Incurred) which is subordinate or junior in right of payment to the
Securities or a Subsidiary Guarantee of
such Person, as the case may be, pursuant to a written 

 

28

 

agreement,
executed by such Person (or a trustee acting on such Person’s behalf) to whom
such Indebtedness is owed to that effect.

 

“Subsidiary” means, with respect to any Person, any corporation,
association, partnership or other business entity of which more than 50% of the
total voting power of shares of Voting Stock is at the time owned or
controlled, directly or indirectly, by:

 

(1)                                  such Person;

 

(2)                                  such Person and one or more
Subsidiaries of such Person; or

 

(3)                                  one or more Subsidiaries of
such Person.

 

“Subsidiary Guarantee”
means a Guarantee by a Subsidiary Guarantor of the Company’s obligations with
respect to the Securities pursuant to this Indenture, including any Guarantee
Agreement.

 

“Subsidiary Guarantor”  means each Subsidiary of the Company that
executes this Indenture as a guarantor on the Issue Date and each other
Subsidiary of the Company that thereafter guarantees the Securities pursuant to
the terms of this Indenture.

 

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

 

“Total Assets”
means, as of any date of determination, the total assets reflected on the
consolidated balance sheet of the Company and its Restricted Subsidiaries as of
the end of the most recently ended fiscal quarter of the Company for which an
internal balance sheet is available, on a consolidated basis determined in
accordance with GAAP (and, in the case of any determination relating to any
Incurrence of Indebtedness, on a pro forma basis including any property or
assets being acquired in connection therewith); provided,
however, that “Total Assets” of Foreign
Subsidiaries means, as of any date of determination, the total combined assets
of all of the Foreign Subsidiaries as of the end of the most recently ended
fiscal quarter of the Company for which an internal balance sheet is available,
on a combined basis without duplication and determined in accordance with GAAP
(and, in the case of any determination relating to any Incurrence of Indebtedness,
on a pro forma basis including any property or assets being acquired in
connection therewith).

 

“Trustee” means Wells Fargo Bank, National Association until
a successor replaces it and, thereafter, means the successor.

 

“Trust Officer” means the Chairman of the Board, the
President or any other officer or assistant officer of the Trustee assigned by
the Trustee to administer its corporate trust matters.

 

“Uniform Commercial Code” means the New York Uniform
Commercial Code as in effect from time to time.

 

29

 

“Unrestricted Subsidiary” means:

 

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

 

(2)           any Subsidiary
of an Unrestricted Subsidiary.

 

The
Board of Directors of the Company may designate any Subsidiary of the Company
(including any newly acquired or newly formed Subsidiary) to be an Unrestricted
Subsidiary unless such Subsidiary or any of its Subsidiaries owns any Equity
Interests or Indebtedness of, 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 either
(A) the Subsidiary to be so designated has total assets of $1,000 or less
or (B) if such Subsidiary has assets greater than $1,000, such designation
would be permitted under Section 4.04.

 

The
Board of Directors of the Company may designate any Unrestricted Subsidiary to
be a Restricted Subsidiary; provided, however, that immediately
after giving effect to such designation (A) the Company could Incur $1.00
of additional Coverage Indebtedness under Section 4.03(a) and
(B) no Default shall have occurred and be continuing.  Any such designation by the Board of
Directors of the Company shall be evidenced to the Trustee by promptly filing
with the Trustee a copy of the resolution of the Board of Directors of the
Company giving effect to such designation and an Officers’ Certificate
certifying that such designation complied with the foregoing provisions.

 

“U.S. Dollar Equivalent” means, with respect to any monetary
amount in a currency other than U.S. dollars, at any time for determination
thereof, the amount of U.S. dollars obtained by converting such foreign
currency involved in such computation into U.S. dollars at the spot rate for
the purchase of U.S. dollars with the applicable foreign currency as published
in The  Wall Street Journal in the “Exchange Rates” column under the
heading “Currency Trading” on the date two Business Days prior to such
determination.

 

Except
as described in Section 4.03, whenever it is necessary to determine
whether the Company has complied with any covenant in this Indenture or a
Default has occurred and an amount is expressed in a currency other than U.S.
dollars, such amount will be treated as the U.S. Dollar Equivalent determined
as of the date such amount is initially determined in such currency.

 

“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 at the issuer’s option.

 

30

 

“Voting Stock” of a Person means all classes of Equity Interests of such
Person then outstanding and normally entitled (without regard to the occurrence
of any contingency) to vote in the election of directors, managers or trustees
thereof.

 

“Wholly Owned Subsidiary” means a Restricted Subsidiary all
the Equity Interests of which (other than directors’ qualifying shares) is owned
by the Company or one or more other Wholly Owned Subsidiaries.

 

“Zion Acquisition”
means the purchase by the Company or its Affiliates from Exelon of certain
assets relating to the Zion Energy Center, Units 1 and 2, located in Zion, Illinois
and to consummate the related transactions, as described in the Zion
Agreements.

 

“Zion Agreements”
means, collectively, the following documents: (a) the ZionSolutions
Limited Liability Company Agreement entered into by members of ZionSolutions,
(b) the Asset Sale Agreement (and the amendment thereto dated as of
August 17, 2009), (c) an Assignment and Assumption Agreement to be
entered into by and between Exelon and ZionSolutions, (d) a Bill of Sale
to be entered into by and between Exelon and ZionSolutions, (e) a Lease
Agreement to be entered into by and between Exelon and ZionSolutions,
(f) a Put Option Agreement to be entered into by and between Exelon and
ZionSolutions, (g) a Pledge Agreement made by the Co-Issuer in favor of
Exelon, (h) the Guaranty made as of December 11, 2007 by the Company
in favor of Exelon, (i) an Irrevocable Easement for Disposal Capacity to
be made by the Co-Issuer to a certain trustee named thereto, (j) a
Disposal Services Agreement to be entered into by and between the Co-Issuer and
a certain trustee named thereto, (k) a Leased Personnel Agreement to be
entered into by Exelon and ZionSolutions, (l) the Performance Guaranty
made as of December 11, 2007 by the Co-Issuer in favor of Exelon,
(m) a Trust Agreement by and among the Co-Issuer, a trustee named thereto
and other parties party thereto in connection with a backup non-qualified
decommissioning, (n) a Credit Support Agreement among Exelon, the Company
and the Co-Issuer and (o) all amendments or modifications to any of the agreements
listed in the foregoing clauses (a) through (n).  All capitalized
terms in this paragraph not otherwise defined herein shall have the meanings
ascribed to such terms in that certain Asset Sale Agreement, dated
December 11, 2007, by and among Exelon, ZionSolutions, the Company and the
Co-Issuer.

 

“ZionSolutions”
means ZionSolutions, LLC, a Delaware limited liability company, organized for
the purpose of consummating the Zion Acquisition and whose Equity Interests
shall be (other than with respect to directors’ qualifying shares or de minimis
non-economic interests held by Exelon or its Affiliates) wholly-owned by the
Company, the Co-Issuer or a Subsidiary Guarantor.

 

31

 

SECTION 1.02.      Other Definitions.

 

	
  Term

  	
   

  	
  Defined in

  Section

  
	
  “Affiliate
  Transaction”

  	
   

  	
  4.07(a)

  
	
  “Alternate
  Offer”

  	
   

  	
  4.10

  
	
  “Appendix”

  	
   

  	
  2.01

  
	
  “Bankruptcy
  Law”

  	
   

  	
  6.01

  
	
  “Change
  of Control Offer”

  	
   

  	
  4.10

  
	
  “covenant
  defeasance option”

  	
   

  	
  8.01(b)

  
	
  “Coverage
  Indebtedness”

  	
   

  	
  4.03(a)

  
	
  “Credit
  Facility Indebtedness”

  	
   

  	
  4.03(b)(1)

  
	
  “cross
  acceleration provision”

  	
   

  	
  6.01(5)

  
	
  “Custodian”

  	
   

  	
  6.01

  
	
  “Event
  of Default”

  	
   

  	
  6.01

  
	
  “Excess
  Proceeds”

  	
   

  	
  4.06(b)

  
	
  “Guaranteed
  Obligations”

  	
   

  	
  10.01

  
	
  “Initial
  Lien”

  	
   

  	
  4.11

  
	
  “Issuers”

  	
   

  	
  Preamble

  
	
  “legal
  defeasance option”

  	
   

  	
  8.01(b)

  
	
  “Paying
  Agent”

  	
   

  	
  2.03

  
	
  “Permitted
  Indebtedness”

  	
   

  	
  4.03(b)

  
	
  “Registrar”

  	
   

  	
  2.03

  
	
  “Securities”

  	
   

  	
  Preamble

  
	
  “Successor
  Co-Issuer”

  	
   

  	
  5.01(b)(1)

  
	
  “Successor
  Company”

  	
   

  	
  5.01(a)(1)

  

 

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 Securities and the Subsidiary Guarantees;

 

“indenture
security holder” means a Securityholder or Holder;

 

“indenture
to be qualified” means this Indenture;

 

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

 

“obligor”
on the indenture securities means the Issuers, each Subsidiary Guarantor 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.

 

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

 

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

 

32

 

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

 

(3)           “or” is not exclusive;

 

(4)           “including” means including without limitation;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Article 2

 

The
Securities

 

SECTION 2.01.      Form and Dating. 
Provisions relating to the Initial Securities and the Exchange
Securities are set forth in the Rule 144A/Regulation S Appendix
attached hereto (the “Appendix”) which is hereby incorporated in, and expressly
made part of, this Indenture. The Initial Securities and the Trustee’s
certificate of authentication shall be substantially in the form of Exhibit A
to the Appendix which is

 

33

 

hereby
incorporated in, and expressly made a part of, this Indenture.  The Exchange Securities and the Trustee’s
certificate of authentication shall be substantially in the form of Exhibit B,
which is hereby incorporated in and expressly made a part of this
Indenture.  The Securities may have
notations, legends or endorsements required by law, stock exchange rule,
agreements to which the Issuers are subject, if any, or usage (provided
that any such notation, legend or endorsement is in a form acceptable to the
Issuers).  Each Security shall be dated
the date of its authentication.  The
terms of the Securities set forth in the Appendix and Exhibit B are
part of the terms of this Indenture.

 

SECTION 2.02.      Execution and Authentication.  One
Officer of each Issuer shall sign the Securities by manual or facsimile
signature.

 

If
an Officer whose signature is on a Security no longer holds that office at the
time the Trustee authenticates the Security, the Security shall be valid
nevertheless.

 

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

 

On
the Issue Date, the Trustee shall authenticate and deliver $300,000,000 of
10.75% Senior Notes due 2018 and, at any time and from time to time thereafter,
the Trustee shall authenticate and deliver Securities for original issue, in
each case upon a written order of the Issuers signed by one Officer of each
Issuer.  Such written order shall specify
the aggregate principal amount of the Securities to be authenticated and the
date on which the original issue of Securities is to be authenticated and, in the case of an issuance of Additional
Securities pursuant to Section 2.13 after the Issue Date, shall certify
that such issuance is in compliance with Section 4.03.

 

The
Trustee may appoint an authenticating agent reasonably acceptable to the
Issuers to authenticate the Securities. 
Unless limited by the terms of such appointment, an authenticating agent
may authenticate Securities 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 2.03.      Registrar and Paying Agent.  The
Issuers shall maintain an office or agency (which may be the office of the
Trustee or an affiliate of the Trustee, Registrar or co-registrar) where
Securities may be presented for registration of transfer or for exchange (the “Registrar”)
and an office or agency (which may be the office of the Trustee or an affiliate
of the Trustee, Registrar or co-registrar) where Securities may be presented
for payment (the “Paying Agent”).  The
Registrar shall keep a register of the Securities and of their transfer and
exchange.  The Issuers may have one or
more co-registrars and one or more additional paying agents.  The term “Paying Agent” includes any
additional paying agent.

 

The
Issuers shall enter into an appropriate agency agreement with any Registrar, Paying
Agent or co-registrar not a party to this Indenture, which shall

 

34

 

incorporate
the terms of the TIA.  The agreement
shall implement the provisions of this Indenture that relate to such
agent.  The Issuers shall notify the
Trustee of the name and address of any such agent.  If the Issuers fail to maintain a Registrar
or Paying Agent, the Trustee shall act as such and shall be entitled to
appropriate compensation therefor pursuant to Section 7.07.  Either Issuer or any Wholly Owned Subsidiary
incorporated or organized within the United States of America may act as Paying
Agent, Registrar, co-registrar or transfer agent.

 

The
Issuers initially appoint the Trustee as Registrar and Paying Agent in
connection with the Securities.

 

SECTION 2.04.      Paying Agent To Hold Money in Trust.  The
Issuers shall deposit with the Paying Agent a sum sufficient to pay such
principal and interest when so becoming due on the dates and in the manner
provided in the Securities.  Principal,
premium, if any, and interest will be considered paid on the date due if the
Paying Agent holds (as of 1:00 p.m., New York City time, on the due date)
money deposited by the Issuers in immediately available funds and designated
for and sufficient to pay all principal and premium, if any, and interest, if
any, then due.  The Issuers shall require
each Paying Agent (other than the Trustee) to agree in writing that the Paying
Agent shall hold in trust for the benefit of Securityholders or the Trustee all
money held by the Paying Agent for the payment of principal of or interest on
the Securities and shall notify the Trustee of any default by the Issuers in
making any such payment.  If one of the
Issuers or a Subsidiary of one of the Issuers acts as Paying Agent, it shall
segregate the money held by it as Paying Agent and hold it as a separate trust
fund.  The Issuers 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 complying with this Section 2.04,
the Paying Agent shall have no further liability for the money delivered to the
Trustee.

 

SECTION 2.05.      Securityholder 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
Securityholders.  If the Trustee is not
the Registrar, the Issuers shall furnish to the Trustee, in writing at least
five 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
Securityholders.

 

SECTION 2.06.      Transfer and Exchange.  The
Securities shall be issued in registered form and shall be transferable only
upon the surrender of a Security for registration of transfer.  When a Security is presented to the Registrar
or a co-registrar with a request to register a transfer, the Registrar shall
register the transfer as requested if the requirements of this Indenture and
Section 8-401(a) of the Uniform Commercial Code are met.  When Securities are presented to the
Registrar or a co-registrar with a request to exchange them for an equal
principal amount of Securities of other denominations, the Registrar shall make
the exchange as requested if the same requirements are met.

 

35

 

SECTION 2.07.      Replacement Securities.  If a
mutilated Security is surrendered to the Registrar or if the Holder of a
Security claims that the Security has been lost, destroyed or wrongfully taken,
the Issuers shall issue and the Trustee shall authenticate a replacement
Security if the requirements of Section 8-405 of the Uniform Commercial
Code are met and the Holder satisfies any other reasonable requirements of the
Trustee.  If required by the Trustee or
the Issuers, such Holder shall furnish an indemnity bond that is sufficient in
the judgment of the Issuers and the Trustee to protect the Issuers, the
Trustee, the Paying Agent, the Registrar and any co-registrar from any loss
which any of them may suffer if a Security is replaced.  The Issuers and the Trustee may charge the
Holder for their expenses in replacing a Security.

 

Every
replacement Security is an additional Obligation of the Issuers.

 

SECTION 2.08.      Outstanding Securities. 
Securities outstanding at any time are all Securities authenticated by
the Trustee except for those canceled by it, those delivered to it for
cancellation and those described in this Section as not outstanding.  A Security does not cease to be outstanding
because the Issuers or an Affiliate of the Issuers holds the Security.

 

If
a Security is replaced pursuant to Section 2.07, it ceases to be
outstanding unless the Trustee and the Issuers receive proof satisfactory to
them that the replaced Security is held by a protected purchaser (as defined in
Section 8-303 of the Uniform Commercial Code).

 

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 Securities (or
portions thereof) to be redeemed or maturing, as the case may be, then on and
after that date such Securities (or portions thereof) cease to be outstanding
and interest on them ceases to accrue.

 

SECTION 2.09.      Temporary Securities.  Until
definitive Securities are ready for delivery, the Issuers may prepare and the
Trustee shall authenticate temporary Securities.  Temporary Securities shall be substantially
in the form of definitive Securities but may have variations that the Issuers
consider appropriate for temporary Securities. 
Without unreasonable delay, the Issuers shall prepare and the Trustee
shall authenticate definitive Securities and deliver them in exchange for
temporary Securities.

 

SECTION 2.10.      Cancellation.  The Issuers
at any time may deliver Securities to the Trustee for cancellation.  The Registrar and the Paying Agent shall
forward to the Trustee any Securities surrendered to them for registration of
transfer, exchange or payment.  The
Trustee and no one else shall cancel and destroy (subject to the record
retention requirements of the Exchange Act) all Securities surrendered for
registration of transfer, exchange, payment or cancellation and deliver a
certificate of such destruction to the Issuers upon written request.  The Issuers may not issue new Securities to
replace Securities it has redeemed, paid or delivered to the Trustee for
cancellation.

 

36

 

SECTION 2.11.      Defaulted Interest.  If the
Issuers default in a payment of interest on the Securities, the Issuers shall
pay defaulted interest (plus interest on such defaulted interest to the extent
lawful) in any lawful manner at the rate provided in the Securities and
Section 4.01.  The Issuers may pay
the defaulted interest at the rate provided in the Securities and
Section 4.01 to the persons who are Securityholders on a subsequent
special record date.  The Issuers shall
fix or cause to be fixed any such special record date and payment date to the
reasonable satisfaction of the Trustee and shall promptly mail to each
Securityholder a notice that states the special record date, the payment date
and the amount of defaulted interest to be paid.

 

SECTION 2.12.      CUSIP Numbers, ISINs, etc.  The Issuers in issuing the
Securities may use “CUSIP” numbers, ISINs and “Common Code” numbers (in
each case if then generally in use) and, if so, the Trustee shall use “CUSIP”
numbers, ISINs and “Common Code” 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 Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers.  The Issuers shall advise the Trustee in
writing of any change in any “CUSIP” numbers, ISINs or “Common Code”
numbers applicable to the Securities.

 

SECTION 2.13.      Issuance of Additional Securities.   After the
Issue Date, the Issuers shall be entitled, subject to their compliance with
Section 4.03, to issue Additional Securities under this Indenture, which
Securities shall have identical terms as the Initial Securities issued on the
Issue Date, other than with respect to the date of issuance and issue
price.  All the Securities issued under
this Indenture shall be treated as a single class for all purposes of this Indenture
including waivers, amendments, redemptions and offers to purchase.

 

With
respect to any Additional Securities, each Issuer shall set forth in a
resolution of the Board of Directors and an Officers’ Certificate, a copy of
each which shall be delivered to the Trustee, the following information:

 

(1)           the aggregate principal amount of such Additional Securities to be
authenticated and delivered pursuant to this Indenture and the provision of
Section 4.03 that the Issuers are relying on to issue such Additional
Securities;

 

(2)           the issue price and the issue date, and the CUSIP number of such
Additional Securities, if any; provided, however, that no
Additional Securities may be issued at a price that would cause such Additional
Securities to not be fungible for U.S. Federal income tax purposes with any
other Securities issued under this Indenture; and

 

(3)           whether such Additional Securities shall be issued in the form of Initial
Securities as set forth in Exhibit A or shall be issued in the form of
Exchange Securities as set forth in Exhibit B.

 

37

 

Article 3

 

Redemption

 

SECTION 3.01.      Notices to Trustee.  If the
Issuers elect to redeem Securities pursuant to paragraph 5 of the
Securities, it shall notify the Trustee in writing of the redemption date, the
principal amount of Securities to be redeemed and the paragraph of the
Securities pursuant to which the redemption will occur.

 

The
Issuers shall give each notice to the Trustee provided for in this Section at
least 35 days before the redemption date unless the Trustee consents to a
shorter period.  Such notice shall be
accompanied by an Officers’ Certificate and an Opinion of Counsel from the
Issuers to the effect that such redemption will comply with the conditions
herein.

 

SECTION 3.02.      Selection of Securities to Be Redeemed.  If
fewer than all the Securities are to be redeemed, the Trustee shall select the
Securities to be redeemed pro rata to the extent practicable, or to the extent
not so practicable, by lot or such other method as the Trustee in its sole
discretion shall deem to be fair and appropriate, unless another method is
required by law or applicable exchange or depositary requirements.  The Trustee shall make the selection from
outstanding Securities not previously called for redemption.  The Trustee may select for redemption portions
of the principal of Securities that have denominations larger than $2,000.  Securities and portions of them the Trustee
selects shall be in principal amounts of $2,000 or a whole multiple of
$1,000.  Provisions of this Indenture
that apply to Securities called for redemption also apply to portions of
Securities called for redemption.  The
Trustee shall notify the Issuers promptly of the Securities or portions of
Securities to be redeemed.

 

SECTION 3.03.      Notice of Redemption.  At
least 30 days but not more than 60 days before a date for redemption of
Securities, the Issuers shall mail a notice of redemption by first-class mail
to each Holder of Securities to be redeemed at such Holder’s registered
address, except that redemption notices may be mailed more than 60 days prior
to the redemption date if the notice is issued in connection with a defeasance
of the Securities or a satisfaction and discharge of this Indenture pursuant to
Article 8.

 

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

 

(1)           the redemption date;

 

(2)           the redemption price;

 

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

 

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

 

38

 

(5)           if fewer than all the outstanding Securities are to be redeemed, the
identification and principal amounts of the particular Securities to be
redeemed;

 

(6)           that, unless the Issuers default in making such redemption payment,
interest on Securities (or portion thereof) called for redemption ceases to
accrue on and after the redemption date;

 

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

 

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

 

At
the Issuers’ request, the Trustee shall give the notice of redemption in the
Issuers’ names and at the Issuers’ expense. 
In such event, the Issuers shall provide the Trustee with the
information required by this Section 3.03, at least 40 days (unless a
shorter time shall also be acceptable to the Trustee) prior to the redemption
date.

 

SECTION 3.04.      Effect of Notice of Redemption.  Once
notice of redemption is mailed, Securities called for redemption become due and
payable on the redemption date and at the redemption price stated in the
notice, and from and after such redemption date (unless the Company defaults in
the payment of the redemption price and accrued and unpaid interest), such
Securities will cease to bear interest. 
Upon surrender to the Paying Agent, such Securities shall be paid at the
redemption price stated in the notice, plus accrued interest to the redemption
date (subject to the right of Holders of record on the relevant record date to
receive interest due on the related interest payment date), and such Securities
shall be canceled by the Trustee.  Failure to give notice or any defect in the
notice to any Holder shall not impair or affect the validity of the notice to
any other Holder.

 

SECTION 3.05.      Deposit of Redemption Price.  Prior
to the redemption date, the Issuers shall deposit with the Paying Agent (or, if
one of the Issuers or a Subsidiary of one of the Issuers is the Paying Agent,
shall segregate and hold in trust) money sufficient to pay the redemption price
of and accrued interest on all Securities to be redeemed on that date other
than Securities or portions of Securities called for redemption which have been
delivered by the Issuers to the Trustee for cancellation.

 

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

 

39

 

Article 4

 

Covenants

 

SECTION 4.01.      Payment of Securities.  The
Issuers shall promptly pay the principal of and interest on the Securities on
the dates and in the manner provided in the Securities 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 (as of 1:00 p.m., New York
City time, on the due date) money sufficient to pay all principal and interest
then due.

 

The Issuers shall pay interest on overdue
principal at the rate specified therefor in the Securities, and they shall pay
interest on overdue installments of interest at the same rate to the extent
lawful.

 

SECTION 4.02.      Reports.  Whether or
not the Company continues to be subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act, the Company shall provide or
cause to be provided to the Trustee and Holders (and file with the SEC for
public availability) such annual and other reports as are specified in
Sections 13 and 15(d) of the Exchange Act and applicable to a U.S.
corporation subject to such Sections, such reports to be provided at the times
specified for the filings of such reports under such Sections.

 

The availability of the foregoing reports
on the SEC’s EDGAR service (or successor thereto) shall be deemed to satisfy
the Company’s delivery obligations to the Trustee and the Holders.  At any time during which the SEC will not
accept filing of reports for inclusion in the EDGAR system, the posting of the
reports referred to above on the Company’s primary web site shall be deemed to
satisfy the Company’s delivery obligation; provided, however,
that the Company shall use reasonable efforts to inform Holders of the
availability of such reports, which may be satisfied by, among other things, a
press release on any national business press release wire service.  The Company agrees that it shall not take any
action for the purpose of causing the SEC not to accept such filings.

 

At any time that any of the Company’s
Subsidiaries are Unrestricted Subsidiaries, then the quarterly and annual
financial information required by the preceding paragraph shall include a
reasonably detailed presentation, either on the face of the financial
statements or in the footnotes thereto of the financial condition and results
of operations of the Company and its Restricted Subsidiaries separate from the
financial condition and results of operations of the Unrestricted Subsidiaries
of the Company.

 

In addition, at any time when the Company
is not subject to the reporting requirements of Section 13 or 15(d) of
the Exchange Act, the Company shall furnish to the Holders and to prospective
investors, upon the requests of such Holders, any information required to be
delivered pursuant to Rule 144A(d)(4) under the Securities Act so
long as the Securities are not freely transferable under the Securities Act.

 

40

 

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

 

SECTION 4.03.      Limitation on Indebtedness. 
(a)  The Company shall not, and shall not permit any
Restricted Subsidiary to, Incur, directly or indirectly, any Indebtedness;
provided, however, that the Company and the Subsidiary Guarantors
shall be entitled to Incur Indebtedness if the Consolidated Coverage Ratio for
the Company’s most recently ended four full fiscal quarters for which internal
financial statements are available immediately preceding the date on which such
additional Indebtedness is Incurred would have been at least 2.0 to 1.0, as if
the additional Indebtedness had been Incurred at the beginning of such
four-quarter period (any such Indebtedness Incurred pursuant to this
Section 4.03(a) being herein referred to as “Coverage Indebtedness”).

 

(b)           Notwithstanding
the foregoing Section 4.03(a), the Company and the Restricted Subsidiaries
shall be entitled to Incur any or all of the following Indebtedness (any such
Indebtedness Incurred pursuant to this Section 4.03(b) being herein
referred to as “Permitted Indebtedness”):

 

(1)           Indebtedness
Incurred pursuant to any Credit Facility, including the Credit Agreement, in an
aggregate amount outstanding at any time not to exceed $685.0 million less the
sum of all principal payments with respect to such Indebtedness pursuant to Section 4.06 (b)(1) (any
such Indebtedness Incurred pursuant to this clause (1) being herein
referred to as “Credit Facility Indebtedness”);

 

(2)           Indebtedness
owed to and held by the Company or a Restricted Subsidiary; provided, however,
that (A) any subsequent issuance or transfer of any Equity Interests which
results in any such Restricted Subsidiary ceasing to be a Restricted Subsidiary
or any subsequent transfer of such Indebtedness (other than to the Company or a
Restricted Subsidiary) shall be deemed, in each case, to constitute the
Incurrence of such Indebtedness by the obligor thereon and (B) if the
Company is the obligor on any such Indebtedness owing to a Restricted Subsidiary
that is not the Co-Issuer or a Subsidiary Guarantor, such Indebtedness is
expressly subordinated to the prior payment in full in cash of all its
obligations with respect to the Securities and (C) if a Subsidiary
Guarantor is the obligor on any such Indebtedness owing to a Restricted
Subsidiary that is not the Co-Issuer or a Subsidiary Guarantor, such
Indebtedness is expressly subordinated to the prior payment in full in cash of
all obligations of such Subsidiary Guarantor with respect to its Subsidiary Guarantee;

 

41

 

(3)           Indebtedness
represented by the Securities to be issued on the Issue Date and the Subsidiary
Guarantees thereof (and any Exchange Securities (other than any Additional
Securities));

 

(4)           Indebtedness of
the Company and its Restricted Subsidiaries outstanding on the Issue Date
(other than Indebtedness described in clause (1), (2) or (3) of
this Section 4.03(b));

 

(5)           Indebtedness of
a Restricted Subsidiary Incurred and outstanding on or prior to the date on
which such Subsidiary was acquired by the Company or Restricted Subsidiary
(other than Indebtedness Incurred in connection with, 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 Subsidiary became a
Subsidiary or was acquired by the Company or a Restricted Subsidiary); provided,
however, that on the date such Restricted Subsidiary was acquired by the
Company or by a Restricted Subsidiary or otherwise became a Restricted
Subsidiary and after giving effect to the Incurrence of such Indebtedness,
either (x) the Company would have been able to Incur an additional $1.00
of Coverage Indebtedness pursuant to Section 4.03(a) or (y) the
Consolidated Coverage Ratio after giving effect to such acquisition is no less
than immediately prior to such acquisition;

 

(6)           Reserved;

 

(7)           Refinancing
Indebtedness in respect of Coverage Indebtedness or of Permitted Indebtedness
Incurred pursuant to clause (3), (4) or (5) of this Section 4.03(b) or
this clause (7);

 

(8)           Hedging
Obligations entered into in the normal course of business and so long as such
obligations and transactions are not entered for speculative purposes;

 

(9)           obligations in
respect of workers’ compensation claims, payment obligations in connection with
health or other types of social security benefits, unemployment or other
insurance or self-insurance obligations, insurance premium finance agreements,
reclamation, statutory obligations, bankers’ acceptances, performance, bid,
surety or similar bonds and letters of credit or completion and performance
guarantees or equipment leases or other similar obligations provided by the
Company or any Restricted Subsidiary in the ordinary course of business;

 

(10)         Indebtedness
arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument drawn against insufficient funds in the ordinary
course of business; provided, however, that such Indebtedness is
extinguished within five Business Days of its Incurrence;

 

(11)         Indebtedness consisting of the Subsidiary
Guarantee of a Subsidiary Guarantor and any Guarantee by a Subsidiary Guarantor
of

 

42

 

Indebtedness Incurred pursuant to clause (7) to
the extent the Refinancing Indebtedness Incurred thereunder directly or
indirectly Refinances Indebtedness Incurred pursuant to clause (3) or
(4); provided, however, that if the Indebtedness being Guaranteed
is subordinated to or pari  passu with the Securities, then the
Guarantee thereof shall be subordinated or pari  passu, as
applicable, to the same extent as the Indebtedness being Guaranteed;

 

(12)         Purchase Money Indebtedness or Capital Lease
Obligations Incurred to finance all or any part of the purchase price or cost
of design, development, construction, installation or improvement (including at
any point subsequent to the purchase) of property (real or personal and
including acquisitions of Equity Interests), plant or equipment used in the
business of the Company or any of its Restricted Subsidiaries (in each case,
whether through the direct purchase of such assets or the Equity Interests of
any Person owning such assets), or repairs, additions or improvements to such
assets, and any Refinancing Indebtedness Incurred to Refinance such
Indebtedness, in an aggregate principal amount which, when added together with
the amount of Indebtedness Incurred pursuant to this clause (12) and then
outstanding, does not exceed the greater of (x) $40.0 million and
(y) 2.0% of Total Assets at the time Incurred;

 

(13)         Indebtedness arising from agreements of the
Company or a Restricted Subsidiary providing for indemnification, adjustment of
purchase price, earn outs, Guarantees or similar obligations, in each case, Incurred
or assumed in connection with the disposition or acquisition of any business,
assets or a Subsidiary, other than Guarantees of Indebtedness Incurred or
assumed by any Person acquiring all or any portion of such business, assets or
Subsidiary;

 

(14)         Indebtedness Incurred by Foreign Subsidiaries
in an aggregate amount at any time outstanding not to exceed the greater of (x) $22.5
million or (y) 5.0% of the Total Assets of the Foreign Subsidiaries as of
the date of such Incurrence;

 

(15)         Indebtedness
of any Special Purpose Subsidiary (other than ZionSolutions) not to exceed
$10.0 million per such Special Purpose Subsidiary or $50.0 million in the
aggregate outstanding at any one time;

 

(16)         unsecured
Indebtedness of the Company or the Co-Issuer pursuant to any SPS Project
Documentation, including any guarantee bond; provided,
however, that the amount of such
Obligations shall not exceed $30.0 million per Special Purpose Subsidiary or
$90.0 million in the aggregate outstanding at any one time;

 

(17)         Guarantees
in respect of any Indebtedness Incurred pursuant to clause (15) or (16) above;

 

43

 

(18)         Indebtedness
Incurred by a Foreign Subsidiary for working capital purposes in the United
Kingdom in an aggregate amount at any time outstanding not to exceed $30.0
million; and

 

(19)         Indebtedness of the Company or the Subsidiary
Guarantors in an aggregate amount which, when taken together with all other
Indebtedness of the Company and the Subsidiary Guarantors outstanding on the
date of such Incurrence (other than Coverage Indebtedness and Permitted
Indebtedness Incurred pursuant to clauses (1) through (18) above)
does not exceed $30.0 million.

 

(c)           Notwithstanding
the foregoing, neither the Company, the Co-Issuer nor any Subsidiary Guarantor
shall Incur any Permitted Indebtedness if the proceeds thereof are used,
directly or indirectly, to Refinance any Subordinated Obligations of the
Company, the Co-Issuer or any Subsidiary Guarantor unless such Indebtedness
shall be subordinated to the Securities or the applicable Subsidiary Guarantee
to at least the same extent as such Subordinated Obligations.

 

(d)           For
purposes of determining compliance with this Section 4.03:

 

(1)           any
Indebtedness outstanding under the Credit Agreement on the Issue Date shall be
treated as Credit Facility Indebtedness Incurred on the Issue Date under Section 4.03(b)(1);

 

(2)           in the event
that an item of Indebtedness (or any portion thereof) meets the criteria of
more than one of the types of Indebtedness described in clauses (1) through
(19) of Section 4.03(b), or is entitled to be Incurred pursuant to Section 4.03(a),
the Company, in its sole discretion, shall classify (and may later reclassify)
such item of Indebtedness (or any portion thereof) at the time of Incurrence
(and in the case of a reclassification, only to the extent the reclassified
item could be Incurred pursuant to the criteria at the time of such
reclassification) and shall only be required to include the amount and type of
such Indebtedness in one of the above clauses; provided, however,
that any Credit Facility Indebtedness may not be reclassified;

 

(3)           any
Indebtedness classified as Incurred pursuant to clause (12), (16) or (19) of Section 4.03(b) will
automatically be reclassified as having been Incurred pursuant to Section 4.03(a) at
any time that such Indebtedness could be Incurred pursuant to Section 4.03(a);
and

 

(4)           the Company
shall be entitled to divide and classify an item of Indebtedness in more than
one of the types of Indebtedness described above.

 

(e)           For purposes of determining compliance with any U.S. dollar
restriction on the Incurrence of Indebtedness where the Indebtedness Incurred
is denominated in a different currency, the amount of such Indebtedness shall
be the U.S. Dollar Equivalent, determined on the date of the Incurrence of such
Indebtedness; provided, however, that if any such Indebtedness
denominated in a different currency is

 

44

 

subject
to a Currency Agreement with respect to U.S. dollars, covering all principal,
premium, if any, and interest payable on such Indebtedness, the amount of such
Indebtedness expressed in U.S. dollars shall be as provided in such Currency
Agreement.  The principal amount of any
Refinancing Indebtedness Incurred in the same currency as the Indebtedness
being Refinanced shall be the U.S. Dollar Equivalent of the Indebtedness
Refinanced, except to the extent that (1) such U.S. Dollar Equivalent was determined
based on a Currency Agreement, in which case the Refinancing Indebtedness shall
be determined in accordance with the preceding sentence, and (2) the
principal amount of the Refinancing Indebtedness exceeds the principal amount
of the Indebtedness being Refinanced, in which case the U.S. Dollar Equivalent
of such excess shall be determined on the date such Refinancing Indebtedness is
Incurred.

 

SECTION 4.04.      Limitation on Restricted Payments. 
(a)  The Company shall not, and shall not permit any Restricted
Subsidiary, directly or indirectly, to make a Restricted Payment if at the time
the Company or such Restricted Subsidiary makes such Restricted Payment:

 

(1)           a Default shall
have occurred and be continuing (or would result therefrom);

 

(2)           immediately after
giving effect to such Restricted Payment on a pro forma basis, the Company
would not be entitled to Incur an additional $1.00 of Coverage Indebtedness
under Section 4.03(a); or

 

(3)           the aggregate
amount of such Restricted Payment and all other Restricted Payments since the
Issue Date (excluding Restricted Payments permitted by clauses (b)(1),
(2), (4), (5), (6), (8) and (10)) would exceed the sum of (without
duplication):

 

(A)          50% of the Consolidated Net Income accrued during the period
(treated as one accounting period) from the beginning of the fiscal quarter
during which the Issue Date occurs to the end of the most recent fiscal quarter
for which internal financial statements are available at the time of such
Restricted Payment prior to the date of such Restricted Payment (or, in case
such Consolidated Net Income shall be a deficit, minus 100% of such deficit); plus

 

(B)           100% of the aggregate Net Cash Proceeds and the Fair Market
Value of marketable securities, assets or other property received by the
Company from the issuance or sale of its Qualified Equity Interests subsequent
to the Issue Date and 100% of any cash (or the Fair Market Value of any Cash
Equivalents) consisting of a capital contribution received by the Company from
its stockholders subsequent to the Issue Date; plus

 

(C)           the amount by which Indebtedness of the Company is reduced
upon the conversion or exchange subsequent to the Issue Date of

 

45

 

any Indebtedness of the Company
convertible or exchangeable for Qualified Equity Interests of the Company (less
the amount of any cash, or the Fair Market Value of any other property,
distributed by the Company upon such conversion or exchange); provided, however,
that the foregoing amount shall not exceed the Net Cash Proceeds received by
the Company or any Restricted Subsidiary from the sale of such Indebtedness
(excluding Net Cash Proceeds from sales to a Subsidiary of the Company or to an
employee stock ownership plan or a trust established by the Company or any of
its Subsidiaries for the benefit of their employees); plus

 

(D)          an amount equal to the sum of (x) the net reduction in
the Investments (other than Permitted Investments) made by the Company or any
Restricted Subsidiary in any Person resulting from repurchases, repayments or
redemptions of such Investments by such Person, proceeds realized on the sale
of such Investment and proceeds representing the return of capital (excluding
dividends and distributions), in each case received by the Company or any
Restricted Subsidiary, and (y) to the extent such Person is an
Unrestricted Subsidiary, the portion (proportionate to the Company’s equity
interest in such Subsidiary) of the Fair Market Value of the net assets of such
Unrestricted Subsidiary at the time such Unrestricted Subsidiary is designated
a Restricted Subsidiary.

 

(b)           The
provisions of Section 4.04(a) shall not prohibit:

 

(1)           any Restricted
Payment made out of the Net Cash Proceeds of the substantially concurrent sale
of, or made by exchange for, Qualified Equity Interests of the Company or a
substantially concurrent cash capital contribution received by the Company from
its stockholders; provided, however, that the Net Cash Proceeds
from such sale or such cash capital contribution (to the extent so used for
such Restricted Payment) shall be excluded from the calculation of amounts
under Section 4.04(a)(3)(B);

 

(2)           any purchase,
repurchase, redemption, defeasance or other acquisition or retirement of
Subordinated Obligations of the Issuers or a Subsidiary Guarantor made by
exchange for, or out of the proceeds of the substantially concurrent Incurrence
of, Indebtedness of such Person which is permitted to be Incurred pursuant
to Section 4.03;

 

(3)           the payment of
any dividend or redemption of any Capital Stock or Subordinated Indebtedness
within 60 days after the date of declaration thereof or call for
redemption, if at such date of declaration or call for redemption such payment
or redemption was permitted by the provisions of Section 4.04(a) (the
declaration of such payment shall be deemed a Restricted Payment under Section 4.04(a) as
of the date of declaration, and the payment itself shall be deemed to have been
paid on such date of declaration and will not also be deemed a Restricted Payment
under Section 4.04(a) (it being understood that any Restricted

 

46

 

Payment
made in reliance on this clause (3) shall reduce the amount available
for Restricted Payments pursuant to Section 4.04(a)(3) only once);

 

(4)           the declaration
and payments of dividends or distributions on Disqualified Stock issued
pursuant to Section 4.03; provided, however, that, at the
time of payment of such dividend or distribution, no Default shall have
occurred and be continuing (or result therefrom);

 

(5)           repurchases of
Equity Interests deemed to occur upon exercise of stock options if such Equity
Interests represents a portion of the exercise price of such options and
repurchases of Equity Interests deemed to occur upon the withholding of a
portion of the Equity Interests granted or awarded to an employee to pay for
taxes payable by such employee upon such grant or award or vesting thereof;

 

(6)           cash payments
in lieu of the issuance of fractional shares in connection with the exercise of
warrants, options or other securities convertible into or exchangeable for
Equity Interests of the Company; provided, however, that any such
cash payment shall not be for the purpose of evading the limitation of this Section 4.04
(as determined in good faith by the Board of Directors of the Company);

 

(7)           in the event of
a Change of Control, and if no Default shall have occurred and be continuing,
the payment, purchase, redemption, defeasance or other acquisition or
retirement of Subordinated Obligations of the Issuers or any Subsidiary
Guarantor, in each case, at a purchase price not greater than 101% of the
principal amount of such Subordinated Obligations, plus any accrued and unpaid
interest thereon; provided, however, that prior to such payment,
purchase, redemption, defeasance or other acquisition or retirement, the
Issuers (or a third party to the extent permitted by this Indenture) have made
a Change of Control Offer with respect to the Securities as a result of such
Change of Control and have repurchased all Securities validly tendered and not
withdrawn in connection with such Change of Control Offer;

 

(8)           payments of
intercompany subordinated Indebtedness, the Incurrence of which was permitted
under Section 4.03(b)(2); provided, however, that no Default
has occurred and is continuing or would otherwise result therefrom;

 

(9)           the
payment of any cash dividends on or in respect of Capital Stock of the Company
in an aggregate amount not to exceed $10.0 million in any calendar year; provided, however, that
no Default has occurred and is continuing or would otherwise result therefrom;
and

 

(10)                        other Restricted Payments
not to exceed $25.0 million.

 

SECTION 4.05.      Limitation on Restrictions on Distributions
from Restricted Subsidiaries.  The Company
shall not, and shall not permit any Restricted

 

47

 

Subsidiary
to, create or otherwise cause or permit to exist or become effective any
consensual encumbrance or 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 on its Capital Stock or with
respect to any other interest or participation in, or measured by, its profits
or (ii) pay any Indebtedness owed to the Company, (b) make any loans
or advances to the Company or (c) sell, lease or transfer any of its
properties or assets to the Company, except:

 

(1)           with respect to clauses (a), (b) and (c),

 

(A)          any encumbrance or restriction pursuant to an
agreement in effect at or entered into on the Issue Date, including the Credit
Agreement in effect on the Issue Date;

 

(B)           any encumbrance or restriction with respect to
a Restricted Subsidiary pursuant to an agreement relating to any Indebtedness
Incurred by such Restricted Subsidiary on or prior to the date on which such
Restricted Subsidiary was acquired by the Company (other than Indebtedness
Incurred as consideration in, 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 acquired by the Company) and outstanding on such date;

 

(C)           any encumbrance or restriction pursuant to an
agreement effecting a Refinancing of Indebtedness Incurred pursuant to an
agreement referred to in Section 4.05(1)(A) or (B) or this
clause (C) or contained in any amendment, modification, restatement,
renewal, increase, supplement, refunding, replacement or Refinancing to an
agreement referred to in Section 4.05(1)(A) or (B) or this
clause (C); provided, however, that the encumbrances and
restrictions with respect to such Restricted Subsidiary contained in any such
refinancing agreement or amendment are not materially more restrictive taken as
a whole, than those contained in the agreements governing the Indebtedness
being Refinanced;

 

(D)          any encumbrance or 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 Equity Interests or assets
of such Restricted Subsidiary pending the closing of such sale or disposition;

 

(E)           provisions in joint venture agreements, asset
sale agreements, stock sale agreements, sale/leaseback agreements, limited
liability company organizational documents and other similar agreements entered
into in the ordinary course of business;

 

(F)           restrictions on cash, cash equivalents,
marketable securities, investment grade securities or other deposits or net
worth

 

48

 

imposed by customers or lessors (including
governmental entities) under contracts or leases entered into in the ordinary
course of business;

 

(G)           this Indenture, the Securities, any Exchange
Securities and the Subsidiary Guarantees;

 

(H)          applicable laws, rules, regulations and
orders;

 

(I)            any encumbrance or restriction pursuant to an
agreement governing Indebtedness of a Foreign Subsidiary permitted to be
Incurred pursuant to Section 4.03 that imposes restrictions solely on such
Foreign Subsidiary; provided, however, that (1) at the time such
encumbrances and restrictions become effective the Company could Incur $1.00 of
additional Coverage Indebtedness under Section 4.03(a) and (2) in
the good faith judgment of the Board of Directors of the Company, such
encumbrances and restrictions will not materially affect the Company’s or the
Co-Issuer’s ability to make required principal or interest payments on the
Securities;

 

(J)            any encumbrance or restriction pursuant to an
agreement governing Indebtedness of a Special Purpose Subsidiary permitted to
be Incurred pursuant to Section 4.03 that imposes restrictions solely on
such Special Purpose Subsidiary; provided,
however, that in the good faith judgment
of the Board of Directors of the Company, such encumbrances and restrictions
will not materially affect the Company’s or the Co-Issuer’s ability to make
required principal or interest payments on the Securities; and

 

(2)           with respect to clause (c),

 

(A)          any encumbrance or restriction consisting of
customary nonassignment provisions in leases, licenses and contracts entered
into in the ordinary course of business;

 

(B)           any encumbrance or restriction contained in
security agreements or mortgages securing Indebtedness of a Restricted
Subsidiary to the extent such encumbrance or restriction restricts the transfer
of the property subject to such security agreements or mortgages;

 

(C)           purchase money obligations for property
acquired in the ordinary course of business and Capital Lease Obligations that
impose restrictions on the property purchased or leased;

 

(D)          customary provisions contained in leases or
licenses of intellectual property and other agreements, in each case entered
into in the ordinary course of business; and

 

49

 

(E)           any encumbrance or restriction on the Company’s
ability, or the ability of any Restricted Subsidiary, to transfer its interest
in a joint venture in favor of the other parties to the joint venture.

 

SECTION 4.06.      Limitation on Sales of Assets and Subsidiary
Stock.  (a)  The Company shall not, and shall
not permit any Restricted Subsidiary to, directly or indirectly, consummate any
Asset Disposition unless:

 

(1)           the Company or such Restricted Subsidiary receives consideration at the
time of such Asset Disposition at least equal to the Fair Market Value
(including as to the value of all non-cash consideration), of the shares and
assets subject to such Asset Disposition; and

 

(2)           at least 75% of the consideration thereof received by the Company or such
Restricted Subsidiary is in the form of cash, Cash Equivalents or Replacement
Assets.

 

(b)  Within 365 days after
the receipt of Net Available Cash, the Company or such Restricted Subsidiary
may, at its option, apply such Net Available Cash:

 

(1)           to repay (w) Credit Facility Indebtedness, (x) any Indebtedness
secured by a Lien on the assets sold, (y) any Indebtedness of a Restricted
Subsidiary that is not a Subsidiary Guarantor but only to the extent the
aggregate amount of Net Available Cash so applied is received from Asset
Dispositions by such Restricted Subsidiary or (z) any other Senior
Indebtedness of the Company or a Subsidiary Guarantor; provided, however,
that to the extent the Company or such Restricted Subsidiary repays any such
other Senior Indebtedness, the Company shall equally and ratably reduce the
principal amount of Securities outstanding, through open-market purchases or
through redemption, or shall offer (in accordance with the procedures set forth
in Section 4.06(b)) to all Holders to purchase their Securities at 100% of
the principal amount thereof, plus accrued but unpaid interest, if any, thereon
up to a principal amount which, if the offer were accepted, would result in
such reduction;

 

(2)           to acquire all or substantially all of the assets of, or a majority of
the Voting Stock of, another Related Business; or

 

(3)           to acquire other long-term assets that are used or useful in a Related
Business (and current assets incidental thereto) or to make capital
expenditures with respect to long-term assets;

 

provided, however,
that in connection with any repayment of Indebtedness pursuant to clause (1) above,
the Company or such Restricted Subsidiary shall permanently retire such Indebtedness
and shall cause the related loan commitment (if any) to be permanently reduced
in an amount equal to the principal amount so repaid.

 

In
Section 4.06(b)(2) and (b)(3), a binding commitment shall be treated
as a permitted application of Net Available Cash from the date of such
commitment;

 

50

 

provided, however,
that the Company or such other Restricted Subsidiary enters into such
commitment with the good faith expectation that such Net Available Cash shall
be applied to satisfy such commitment within 180 days of such binding
commitment and such Net Available Cash is actually so applied within such
180-day period.

 

Any
Net Available Cash from Asset Dispositions that are not applied or invested as
provided in Sections 4.06(b)(1)-(b)(3) shall constitute “Excess
Proceeds.”  When the aggregate amount of
Excess Proceeds exceeds $15.0 million, the Company shall make an offer to
Holders (and all holders of other Senior Indebtedness of the Company, the Co-Issuer
or of a Subsidiary Guarantor designated by the Company) containing provisions
similar to those set forth in this Indenture with respect to offers to purchase
with the proceeds of sales of assets to purchase the maximum principal amount
of Securities and such other pari passu
Indebtedness that may be purchased out of the Excess Proceeds.

 

Pending
application of Net Available Cash pursuant to this Section 4.06, such Net
Available Cash shall be held in cash, invested in Cash Equivalents or applied
to temporarily reduce revolving credit indebtedness.

 

For
the purposes of this Section 4.06, the following are deemed to be cash or
Cash Equivalents:

 

(1)           the assumption or discharge of Indebtedness of the Company (other than
obligations in respect of Disqualified Stock of the Company) or any Restricted
Subsidiary (other than obligations in respect of Disqualified Stock or
Preferred Stock of a Subsidiary Guarantor) and the release of the Company or
such Restricted Subsidiary from all liability on such Indebtedness in
connection with such Asset Disposition;

 

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

 

(3)           any Designated Non-cash Consideration received by the Company or any of
its Restricted Subsidiaries in such Asset Disposition having an aggregate Fair
Market Value, taken together with all other Designated Non-cash Consideration
received pursuant to this clause (3) that is at that time
outstanding, not to exceed an amount equal to $10.0 million at the time of
the receipt of such Designated Non-cash Consideration (with the Fair Market
Value of each item of Designated Non-cash Consideration being measured at the
time received and without giving effect to subsequent changes in value).

 

(c)           In the event of an Asset Disposition that requires the Company to make an
offer to Holders of Securities pursuant to Section 4.06(b), the Company
shall purchase Securities tendered pursuant to an offer by the Company for the
Securities (and such other Senior Indebtedness of the Company or of a
Subsidiary Guarantor permitted to

 

51

 

be included in such offer)
at a purchase price of 100% of their principal amount (or, in the event such
other Senior Indebtedness was issued with significant original issue discount,
100% of the accreted value thereof), without premium, plus accrued but unpaid
interest (or, in respect of such other Senior Indebtedness, such lesser price,
if any, as may be provided for by the terms of such other Senior Indebtedness)
in accordance with the procedures (including prorating in the event of
oversubscription) set forth in this Indenture. 
If the aggregate purchase price of the securities tendered exceeds the
Net Available Cash allotted to their purchase, the Company shall select the
securities to be purchased on a pro  rata basis but in round
denominations, which in the case of the Securities shall be minimum
denominations of $2,000 principal amount or any greater integral multiple of
$1,000.  The Company shall not be
required to make such an offer to purchase Securities (and other Senior
Indebtedness of the Company or of a
Subsidiary Guarantor) pursuant to this Section 4.06 if the Net
Available Cash available therefor is less than $10.0 million (which lesser
amount shall be carried forward for purposes of determining whether such an
offer is required with respect to the Net Available Cash from any subsequent
Asset Disposition).  Upon completion of
such an offer to purchase, Net Available Cash shall be deemed to be reduced by
the aggregate amount of such offer.

 

(d)           The Company shall comply, to the extent applicable, with the requirements
of Section 14(e) of the Exchange Act and any other securities laws or
regulations in connection with the repurchase of Securities pursuant to this
Section 4.06.  To the extent that
the provisions of any securities laws or regulations conflict with provisions
of this Section 4.06, the Company shall comply with the applicable
securities laws and regulations and shall not be deemed to have breached its
obligations under this Section 4.06 by virtue of its compliance with such
securities laws or regulations.

 

SECTION 4.07.      Limitation on Affiliate Transactions. 
(a)  The Company shall not, and shall not permit any
Restricted Subsidiary to, enter into or permit to exist any transaction (including
the purchase, sale, lease or exchange of any property, or the rendering of any
service) with, or for the benefit of, any Affiliate of the Company (an “Affiliate
Transaction”) if such Affiliate Transaction or series of related Affiliate
Transactions involves aggregate consideration in excess of $2.5 million,
unless:

 

(1)           the terms of the Affiliate Transaction are no less favorable to the
Company or such Restricted Subsidiary than those that could be obtained at the
time of the Affiliate Transaction in arm’s-length dealings with a Person who is
not an Affiliate;

 

(2)           if such Affiliate Transaction involves an amount in excess of
$15.0 million, the Board of Directors of the Company has determined in
good faith that the criteria set forth in Section 4.07(a)(1) are
satisfied and have approved the relevant Affiliate Transaction as evidenced by
a resolution of the Board of Directors of the Company; and

 

(3)           if such Affiliate Transaction involves an amount in excess of
$50.0 million, the Board of Directors of the Company shall also have
received a written opinion from an Independent Qualified Party to the effect
that such

 

52

 

Affiliate
Transaction is fair, from a financial standpoint, to the Company and its Restricted
Subsidiaries or is not less favorable to the Company and its Restricted
Subsidiaries than could reasonably be expected to be obtained at the time in an
arm’s-length transaction with a Person who was not an Affiliate.

 

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

 

(1)           any Investment (other than a Permitted Investment) or other Restricted
Payment, in each case permitted to be made pursuant to Section 4.04;

 

(2)           any issuance of securities, or other payments, awards or grants in cash,
securities or otherwise pursuant to, or the funding of, employment
arrangements, severance agreements, indemnification agreements, employee
benefit plans, stock options, stock ownership plans or any similar arrangement
approved by the Board of Directors of the Company;

 

(3)           loans or advances to employees made in the ordinary course of business
for bona fide business purposes and consistent with past practices;

 

(4)           the payment of reasonable fees and compensation to, and indemnities
provided for the benefit of, former, current or future officers, directors or
managers, employees or consultants of the Company or any of its Restricted
Subsidiaries;

 

(5)           any transaction with the Company, a Restricted Subsidiary or joint
venture or similar entity which would constitute an Affiliate Transaction
solely because the Company or a Restricted Subsidiary owns an equity interest
in or otherwise controls such Restricted Subsidiary, joint venture or similar
entity;

 

(6)           the issuance or sale of any Qualified Equity Interests of the Company;

 

(7)           any agreement as in effect on the Issue Date and described in the
Offering Memorandum or any amendments, renewals or extensions of any such
agreement (so long as such renewals or extensions are not disadvantageous to
the Company in any material respect when taken as a whole as compared to the
applicable agreement as in effect on the Issue Date) and the transactions
evidenced thereby; or

 

(8)           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 of the Company or the senior management thereof, or are on
terms at least as favorable as might be reasonably obtained at such time from
an unaffiliated party.

 

53

 

SECTION 4.08.      Limitation on Line of Business.  The
Company shall not, and shall not permit any Restricted Subsidiary, to engage in
any business other than a Related Business.

 

SECTION 4.09.      Reserved.

 

SECTION 4.10.      Change of Control.  Upon
the occurrence of a Change of Control, each Holder shall have the right to
require that the Issuers repurchase such Holder’s Securities at a purchase
price in cash equal to 101% of the principal amount thereof on the date of
purchase plus accrued and unpaid interest, if any, to the date of purchase
(subject to the right of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date).

 

Subject to compliance with the provisions
of the succeeding paragraph, within 30 days following any Change of
Control, the Issuers shall mail a notice to each Holder with a copy to the
Trustee (the “Change of Control Offer”) stating:

 

(1)           that a Change of Control has occurred and that such Holder has the right
to require the Issuers to purchase such Holder’s Securities at a purchase price
in cash equal to 101% of the principal amount thereof on the date of purchase,
plus accrued and unpaid interest, if any, to the date of purchase (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 regarding such Change of Control;

 

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

 

(4)           the instructions, as determined by the Issuers, consistent with this
Section, that a Holder must follow in order to have its Securities purchased.

 

The
Issuers shall not be required to make a Change of Control Offer following a
Change of Control if (1) a third party makes the Change of Control Offer
in the manner, at the times and otherwise in compliance with the requirements
set forth in this Indenture applicable to a Change of Control Offer made by the
Issuers and purchases all Securities validly tendered and not withdrawn under
such Change of Control Offer, (2) notice of redemption has been given
pursuant to this Indenture as described above under Section 3.01 unless
and until there is a default in the payment of the applicable redemption price
or (3) in connection with or in contemplation of any Change of Control for
which a definitive agreement is in place the Company or a third party has made
an offer to purchase (an “Alternate
Offer”) any and all Securities validly and properly tendered at a cash price
equal to or higher than the Change of Control payment (as described above) and
has purchased all Securities validly and properly tendered and not withdrawn in
accordance with the terms of the Alternate Offer; provided, however,
that the terms of such Alternate Offer shall not require the Holders to
irrevocably tender the

 

54

 

Securities
and such Alternate Offer shall not close until the Change of Control is
actually consummated.

 

The Issuers shall comply, to the extent
applicable, with the requirements of Section 14(e) of the Exchange
Act and any other securities laws or regulations in connection with the
repurchase of Securities as a result of a Change of Control.  To the extent that the provisions of any
securities laws or regulations conflict with the provisions of this Section,
the Issuers shall comply with the applicable securities laws and regulations
and shall not be deemed to have breached their obligations under this Section by
virtue of their compliance with such securities laws or regulations.

 

SECTION 4.11.      Limitation on Liens.  The Company shall not, and shall
not permit any Restricted Subsidiary to, directly or indirectly, Incur or
permit to exist any Lien (other than Permitted Liens) of any nature whatsoever
on any of its property or assets (including Equity Interests of a Restricted
Subsidiary), whether now owned or hereafter acquired, securing any Indebtedness
(the “Initial Lien”) without effectively providing that the Securities, or in
the case of an Initial Lien on any property or assets of any Subsidiary
Guarantor, the Subsidiary Guarantee of such Subsidiary Guarantor, shall be
secured equally and ratably with (or prior to) the obligations so secured for
so long as such obligations are so secured.

 

Any such Lien thereby created in favor of
the Securities or any such Subsidiary Guarantee shall be automatically and
unconditionally released and discharged upon (i) the release and discharge
of each Initial Lien to which it relates, (ii) in the case of any such
Lien in favor of any such Subsidiary Guarantee, upon the termination and
discharge of such Subsidiary Guarantee in accordance with the terms of this
Indenture or (iii) any sale, exchange or transfer to any Person not an
Affiliate of the Company of the property or assets secured by such Initial
Lien.

 

SECTION 4.12.      Limitation on Sale/Leaseback Transactions.  The Company
shall not, and shall not permit any Restricted Subsidiary to, enter into any
Sale/Leaseback Transaction with respect to any property unless:

 

(1)           the Company or such Restricted Subsidiary would be entitled to
(A) Incur Indebtedness in an amount equal to the Attributable Debt with
respect to such Sale/Leaseback Transaction pursuant to Section 4.03 and
(B) create a Lien on such property securing such Attributable Debt without
equally and ratably securing the Securities pursuant to Section 4.11;

 

(2)           the Net Cash
Proceeds received by the Company or any Restricted Subsidiary in connection
with such Sale/Leaseback Transaction are at least equal to the Fair Market
Value of such property; and

 

(3)           the Company
applies the proceeds of such transaction in compliance with Section 4.06.

 

SECTION 4.13.      Future Subsidiary Guarantors.  The
Company shall not cause or permit (a) any of its Restricted Subsidiaries
(other than a Foreign

 

55

 

Subsidiary),
directly or indirectly, to Guarantee any Indebtedness of the Company or any
other Restricted Subsidiary, (b) any Foreign Subsidiary, directly or
indirectly, to Guarantee any Indebtedness of the Company or any Subsidiary
Guarantor or (c) any of its Restricted Subsidiaries (other than a Foreign
Subsidiary) to Incur any Coverage Indebtedness or Credit Facility Indebtedness
unless such Restricted Subsidiary is a Subsidiary Guarantor or
contemporaneously executes and delivers to the Trustee a Guarantee Agreement
pursuant to which such Restricted Subsidiary shall Guarantee payment of the
Securities on the same terms and conditions as those set forth in this
Indenture and applicable to the other Subsidiary Guarantors and delivers to the
Trustee an Opinion of Counsel (which may contain customary exceptions) that
such Guarantee Agreement has been duly authorized, executed and delivered by
such Restricted Subsidiary and constitutes a legal, valid, binding and
enforceable obligation of such Restricted Subsidiary.

 

SECTION 4.14.      Compliance Certificate.  The
Company shall deliver to the Trustee within 120 days after the end of each
fiscal year of the Company an Officers’ Certificate stating whether or not to
the best of the knowledge of the signers thereof a Default occurred during such
period.  If a Default shall have occurred
during such period, 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 TIA
§ 314(a)(4).

 

Article 5

 

Successor
Company

 

SECTION 5.01.      When Company May Merge or Transfer
Assets.  (a)  The Company shall not
consolidate with or merge with or into, or convey, transfer or lease, in one
transaction or a series of transactions, directly or indirectly, all or
substantially all its assets to, any Person, unless:

 

(1)           (x) the Company shall be the surviving corporation or (y) the
resulting, surviving or transferee Person (the “Successor Company”) shall be a
corporation organized and existing under the  laws of the United States of America, any State thereof
or the District of Columbia, and the Successor Company (if not the Company)
shall expressly assume, by an indenture supplemental thereto, executed and
delivered to the Trustee, in a form reasonably satisfactory to the Trustee, all
the obligations of the Company under the Securities and this Indenture;

 

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

 

56

 

(3)           immediately after giving pro  forma effect to such
transaction, either (a) the Successor Company would have been able to
Incur an additional $1.00 of Coverage Indebtedness pursuant to
Section 4.03(a), or (b) the Consolidated Coverage Ratio after giving
effect to such transaction is no less than immediately prior to such
transaction; and

 

(4)           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;

 

provided,
however, that clause (3) shall not be applicable to (A) a
Restricted Subsidiary consolidating with, merging into or transferring all or
part of its properties and assets to the Company (so long as no Equity
Interests of the Company are distributed to any Person) or (B) the Company
merging with an Affiliate of the Company solely for the purpose and with the
sole effect of reincorporating the Company in another jurisdiction.

 

For purposes of this Section 5.01, the
sale, lease, conveyance, assignment, transfer or other disposition of all or
substantially all of the properties and assets of one or more Subsidiaries of
the Company, which properties and assets, if held by the Company instead of such
Subsidiaries, would constitute all or substantially all of the properties and
assets of the Company on a consolidated basis, shall be deemed to be the
transfer of all or substantially all of the properties and assets of the
Company.

 

The Successor Company (if not the Company)
shall be the successor to the Company and shall succeed to, and be substituted
for, and may exercise every right and power of, the Company under this
Indenture, and the predecessor Company, except in the case of a lease, shall be
released from the obligation to pay the principal of and interest on the
Securities.

 

(b)           The Co-Issuer shall not consolidate with or merge with or into, or
convey, transfer or lease, in one transaction or a series of transactions,
directly or indirectly, all or substantially all its assets to, any Person,
unless:

 

(1)           (x) the Co-Issuer shall be the surviving limited liability company,
(y) the resulting, surviving or transferee Person (the “Successor
Co-Issuer”) is the Company or a Subsidiary Guarantor or (z) the Successor
Co-Issuer shall be a limited liability company or corporation organized and
existing under the  laws
of the United States of America, any State thereof or the District of Columbia,
and the Successor Co-Issuer (if not the Co-Issuer) shall expressly assume, by
an indenture supplemental thereto, executed and delivered to the Trustee, in a
form reasonably satisfactory to the Trustee, all the obligations of the
Co-Issuer under the Securities and this Indenture;

 

(2)           immediately after giving pro  forma effect to such
transaction (and treating any Indebtedness which becomes an obligation of the
Successor Co-Issuer as a result of such transaction as having been Incurred by
such Successor

 

57

 

Co-Issuer
at the time of such transaction), no Default shall have occurred and be
continuing with respect to the Co-Issuer; and

 

(3)           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 Co-Issuer (if not the
Co-Issuer) shall be the successor to the Co-Issuer and shall succeed to, and be
substituted for, and may exercise every right and power of, the Co-Issuer under
this Indenture, and the Co-Issuer, except in the case of a lease, shall be
released from the obligation to pay the principal of and interest on the
Securities.

 

(c)           The Company shall not permit any Subsidiary Guarantor to consolidate with
or merge with or into, or convey, transfer or lease, in one transaction or a
series of transactions, all or substantially all of its assets to any Person
unless:

 

(1)           (x) the Subsidiary Guarantor shall be the surviving corporation or
limited liability company, (y) another Subsidiary Guarantor or the Company
is the resulting, surviving or transferee Person or (z) the resulting,
surviving or transferee Person (if not such Subsidiary) shall be a Person
organized and existing under the laws of the jurisdiction under which such
Subsidiary was organized or under the laws of the United States of America, or
any State thereof or the District of Columbia, and such Person shall expressly
assume, by a Guarantee Agreement, in a form satisfactory to the Trustee, all
the obligations of such Subsidiary, if any, under its Subsidiary Guarantee; provided,
however, that the foregoing shall not apply in the case of a Subsidiary
Guarantor (i) that has been disposed of in its entirety to another Person
(other than to the Company or an Affiliate of the Company), whether through a
merger, consolidation or sale of Equity Interests or assets or (ii) that,
as a result of the disposition of all or a portion of its Equity Interests,
ceases to be a Subsidiary, in both cases, if in connection therewith the
Company provides an Officers’ Certificate to the Trustee substantially to the
effect that the Company shall comply with its obligations under
Section 4.06 in respect of such disposition;

 

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

 

(3)           the Company delivers to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger or transfer
and such Guarantee Agreement, if any, complies with this Indenture.

 

58

 

Article 6

 

Defaults
and Remedies

 

SECTION 6.01.      Events of Default.  An “Event
of Default” occurs if:

 

(1)           the Issuers default in the payment of interest on the Securities when
due, continued for 30 consecutive days;

 

(2)           the Issuers default in the payment of principal of any Security when due
at its Stated Maturity, upon optional redemption, upon required purchase, upon
declaration of acceleration or otherwise;

 

(3)           the Issuers fail to comply with Section 5.01;

 

(4)           the Issuers or any Subsidiary Guarantor fails to comply with any of the
other agreements in this Indenture;

 

(5)           Indebtedness of the Company or any Restricted Subsidiary is not paid
within any applicable grace period after final maturity or is accelerated by
the holders thereof because of a default and the total amount of such
Indebtedness unpaid or accelerated exceeds $25.0 million (the “cross
acceleration provision”);

 

(6)           an Issuer or any Significant Subsidiary pursuant to or within the meaning
of any Bankruptcy Law:

 

(A)          commences a voluntary case;

 

(B)           consents to the entry of an order for relief
against it in an involuntary case;

 

(C)           consents to the appointment of a Custodian of
it or for any substantial part of its property; or

 

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

 

or
takes any comparable action under any foreign laws relating to insolvency;

 

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

 

(A)          is for relief against an Issuer or any
Significant Subsidiary in an involuntary case;

 

(B)           appoints a Custodian of an Issuer or any
Significant Subsidiary or for any substantial part of its property; or

 

59

 

(C)           orders the winding up or liquidation of an
Issuer or any Significant Subsidiary;

 

or
any similar relief is granted under any foreign laws and the order or decree
remains unstayed and in effect for 60 consecutive days;

 

(8)           the Company or any of the Restricted Subsidiaries fails to pay any final
non-appealable judgments entered by a court or courts of competent jurisdiction
aggregating in excess of $25.0 million, which judgments are not paid,
discharged or stayed, for a period of 60 consecutive days; or

 

(9)           any Subsidiary Guarantee ceases to be in full force and effect (other
than in accordance with the terms of such Subsidiary Guarantee) or any
Subsidiary Guarantor that is a Significant Subsidiary denies or disaffirms its
obligations under its Subsidiary Guarantee.

 

The foregoing will 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.

 

The term “Bankruptcy Law” means
Title 11, United States Code, or any similar Federal or state law for the
relief of debtors.  The term “Custodian”
means any receiver, trustee, assignee, liquidator, custodian or similar
official under any Bankruptcy Law.

 

A Default under clauses (4) and (5) will
not constitute an Event of Default until the Trustee or the Holders of at least
25% in principal amount of the outstanding Securities notify the Company of the
Default and the Company does not cure such Default within 60 days 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”.

 

If a Default occurs, is continuing and is
known to the Trustee, the Trustee must mail to each Holder of the Securities
notice of the Default within 90 days after it occurs.  Except in the case of a Default in the
payment of principal of or interest on any Security, the Trustee may withhold
notice if and so long as a committee of its Trust Officers in good faith
determines that withholding notice is not opposed to the interest of the
Holders.  In addition, the Company is
required to deliver to the Trustee, within 120 days after the end of each
fiscal year, a statement regarding compliance with this Indenture.  Within 30 days of becoming aware of any
Default, the Company is required to deliver to the Trustee a written statement
specifying such Default.

 

SECTION 6.02.      Acceleration.  If an Event
of Default (other than an Event of Default specified in Section 6.01(6) or
(7) with respect to an Issuer) occurs and is continuing, the Trustee by
notice to the Issuers, or the Holders of at least 25% in principal amount of
the outstanding Securities by notice to the Issuers and the Trustee, may
declare the principal of and accrued but unpaid interest on all the Securities
to be due and payable.  Upon such a
declaration, such principal and interest shall be due and

 

60

 

payable
immediately.  If an Event of Default
specified in Section 6.01(6) or (7) with respect to an Issuer
occurs, the principal of and interest on all the Securities shall ipso  facto
become and be immediately due and payable without any declaration or other act
on the part of the Trustee or any Securityholders.  The Holders of a majority in principal amount
of the Securities by notice to the Trustee may rescind an acceleration and its
consequences if the rescission would not conflict with any judgment or decree
and if all existing Events of Default have been cured or waived except
nonpayment of principal or interest that has become due solely because of such
declaration of acceleration.  No such rescission
shall affect any subsequent Default or impair any right consequent thereto.

 

SECTION 6.03.      Other Remedies.  If an Event
of Default occurs and is continuing, the Trustee may pursue any available
remedy to collect the payment of principal of or interest on the Securities or
to enforce the performance of any provision of the Securities or this
Indenture.

 

The
Trustee may maintain a proceeding even if it does not possess any of the
Securities or does not produce any of them in the proceeding.  A delay or omission by the Trustee or any
Securityholder 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.

 

SECTION 6.04.      Waiver of Past Defaults.  The
Holders of a majority in principal amount of the Securities by notice to the
Trustee may waive an existing Default and its consequences except a Default
(a) in the payment of the principal of or interest on a Security, (b) arising
from the failure to redeem or purchase any Security when required pursuant to
this Indenture or (c) in respect of a provision that under Section 9.02
cannot be amended without the consent of each Securityholder affected.  When a Default is waived, it is deemed cured,
but no such waiver shall extend to any subsequent or other Default or impair
any consequent right.

 

SECTION 6.05.      Control by Majority.  The
Holders of a majority in principal amount of the Securities 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
Securityholders 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.  Except
to enforce the right to receive payment of principal, premium (if any) or
interest when due, no Securityholder may pursue any remedy with respect to this
Indenture or the Securities unless:

 

61

 

(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 Securities make a
written request to the Trustee to pursue the remedy;

 

(3)           such Holder or Holders offer to the Trustee reasonable security or
indemnity 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 Securities do not
give the Trustee a direction inconsistent with the request during such 60-day
period.

 

A
Securityholder may not use this Indenture to prejudice the rights of another
Securityholder or to obtain a preference or priority over another
Securityholder.  In the event that the
Definitive Securities are not issued to any beneficial owner promptly after the
Registrar has received a request from the Holder of a Global Security to issue
such Definitive Securities to such beneficial owner of its nominee, the Issuers
expressly agree and acknowledge, with respect to the right of any Holder to
pursue a remedy pursuant to this Indenture, the right of such beneficial holder
of Securities to pursue such remedy with respect to the portion of the Global
Security that represents such beneficial holder’s Securities as if such
Definitive Securities had been issued.

 

SECTION 6.07.      Rights of Holders to Receive Payment. 
Notwithstanding any other provision of this Indenture, the right of any
Holder to receive payment of principal of and interest on the Securities held
by such Holder, on or after the respective due dates expressed in the
Securities, or to bring suit for the enforcement of any such payment on or
after such respective dates, shall not be impaired or affected without the
consent of such Holder.

 

SECTION 6.08.      Collection Suit by Trustee.  If an
Event of Default specified in Section 6.01(1) or (2) occurs and
is continuing, the Trustee may recover judgment in its own name and as trustee
of an express trust against the Issuers 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
Securityholders allowed in any judicial proceedings relative to the Issuers,
their creditors or their property and, unless prohibited by law or applicable
regulations 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,

 

62

 

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.      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 Securityholders for
amounts due and unpaid on the Securities for principal and interest, ratably,
without preference or priority of any kind, according to the amounts due and
payable on the Securities for principal and interest, respectively; and

 

Third:     to the Company.

 

The
Trustee may fix a record date and payment date for any payment to
Securityholders pursuant to this Section 6.10.  At least 15 days before such record
date, the Issuers shall mail to each Securityholder and the Trustee a notice
that states the record date, the payment date and amount to be paid.

 

SECTION 6.11.      Undertaking for Costs.  In any
suit for the enforcement of any right or remedy under this Indenture or in any
suit against the Trustee for any action taken or omitted by it as Trustee, a
court of competent jurisdiction in its discretion may require the filing by any
party litigant in the suit of an undertaking to pay the costs of the suit, and
the court in its discretion may assess reasonable costs, including reasonable
attorneys’ fees, against any party litigant in the suit, having due regard to
the merits and good faith of the claims or defenses made by the party
litigant.  This Section 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 aggregate principal amount of the
Securities.

 

SECTION 6.12.      Waiver of Stay or Extension Laws.  The
Issuers (to the extent they may lawfully do so) shall not 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 Issuers (to the extent that they 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

 

63

 

Person
would exercise or use under the circumstances in the conduct of such Person’s
own affairs.

 

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

 

(1)           the 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, 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 wilful misconduct, except
that:

 

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

 

(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 7.01.

 

(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 Issuers.

 

(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.

 

64

 

SECTION 7.02.                 Rights of Trustee. 
(a)  The Trustee may 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
Officers’ 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.

 

(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
Securities 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)                                    Unless
otherwise specifically identified in this Indenture, any demand, request,
direction or notice from an Issuer will be sufficient if signed by an Issuer.

 

(g)                                 The Trustee
shall not be deemed to have notice of any Default or Event of Default, except a
Default under Sections 6.01(i) or 6.01(ii), unless written notice of any
event which is in fact such a Default or Event of Default is received by a
Trust Officer at its office described in Section 11.02 herein from either
of the Issuers or the Holders of 25% in aggregate principal amount of the
outstanding Securities, and such notice references the specific Default or
Event of Default, the Securities and this Indenture and, in the absence of any
such notice, the Trustee may conclusively assume that no such Default or Event
of Default exists.

 

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

 

65

 

SECTION 7.05.                 Notice of Defaults.  If a
Default occurs, is continuing and is known to the Trustee, the Trustee shall
mail to each Securityholder notice of the Default within 90 days after it
occurs unless such Default shall have been cured or waived.  Except in the case of a Default in the
payment of principal of or interest on any Security (including payments pursuant
to the mandatory redemption provisions of such Security, if any), the Trustee
may withhold the notice if and so long as a committee of its Trust Officers in
good faith determines that withholding the notice is not opposed to the
interests of the Securityholders.

 

SECTION 7.06.                 Reports by Trustee to Holders.  As
promptly as practicable after each August 1 beginning with the August 1
following the Issue Date, and in any event prior to February 1 in each
year, the Trustee shall mail to each Securityholder a brief report dated as of August 1
that complies with TIA § 313(a). 
The Trustee also shall comply with TIA § 313(b).

 

A
copy of each report at the time of its mailing to Securityholders shall be
filed with the SEC and each stock exchange (if any) on which the Securities are
listed.  The Issuers agree to notify
promptly the Trustee whenever the Securities become listed on any stock
exchange and of any delisting thereof.

 

As
promptly as practicable, upon the Company’s request, the Trustee shall mail to
each Securityholder any report received by the Trustee from the Company
pursuant to Section 4.02.

 

SECTION 7.07.                 Compensation and Indemnity.  The
Issuers 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 Issuers shall reimburse the
Trustee upon request for all reasonable out-of-pocket expenses incurred or made
by it, including costs of collection, in addition to the compensation for its
services.  Such expenses shall include
the reasonable compensation and expenses, disbursements and advances of the
Trustee’s agents, counsel, accountants and experts.  The Issuers shall indemnify the Trustee
against any and all loss, liability or expense (including attorneys’ fees)
incurred by it in connection with the administration of this trust and the
performance of its duties hereunder.  The
Trustee shall notify the Issuers promptly of any claim for which it may seek
indemnity.  Failure by the Trustee to so
notify the Issuers shall not relieve the Issuers of their obligations
hereunder.  The Issuers shall defend the
claim and the Trustee may have separate counsel and the Issuers shall pay the
fees and expenses of such counsel.  The
Issuers need not reimburse any expense or indemnify against any loss, liability
or expense incurred by the Trustee through the Trustee’s own wilful misconduct,
negligence or bad faith.

 

To
secure the Issuers’ payment obligations in this Section 7.07, the Trustee
shall have a lien prior to the Securities 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 Securities.

 

66

 

The
Issuers’ payment obligations pursuant to this Section 7.07 shall survive
the discharge of this Indenture.  When
the Trustee incurs expenses after the occurrence of a Default specified in
Section 6.01(6) or (7) with respect to the Issuers, 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 Issuers.  The Holders of a majority in principal amount
of the Securities may remove the Trustee by so notifying the Trustee and may
appoint a successor Trustee.  The Issuers
shall remove the Trustee if:

 

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

 

(2)                                  the Trustee is adjudged bankrupt or insolvent;

 

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

 

(4)                                  the Trustee otherwise becomes incapable of acting.

 

If
the Trustee resigns, is removed by the Issuers or by the Holders of a majority
in principal amount of the Securities 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 Issuers shall promptly appoint a successor Trustee.

 

A
successor Trustee shall deliver a written acceptance of its appointment to the
retiring Trustee and to the Issuers. 
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
Securityholders.  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 Securities may petition any court of competent
jurisdiction for the appointment of a successor Trustee.

 

If
the Trustee fails to comply with Section 7.10, any Securityholder 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 Issuers’
obligations under Section 7.07 shall continue for the benefit of the
retiring Trustee.

 

67

 

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 Securities 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 Securities so
authenticated; and in case at that time any of the Securities shall not have
been authenticated, any successor to the Trustee may authenticate such
Securities 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 which it is anywhere in the Securities or in this Indenture
provided that the certificate of the Trustee shall have.

 

SECTION 7.10.                 Eligibility; Disqualification.  The
Trustee shall at all times satisfy the requirements of TIA § 310(a).  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 TIA § 310(b); provided, however, that
there shall be excluded from the operation of TIA § 310(b)(1) any
indenture or indentures under which other securities or certificates of
interest or participation in other securities of an Issuer are outstanding if
the requirements for such exclusion set forth in TIA § 310(b)(1) are
met.

 

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

 

Article 8

 

Discharge
of Indenture; Defeasance

 

SECTION 8.01.                 Discharge of Liability on
Securities; Defeasance. 
(a)  When (1) the Issuers deliver to the Trustee all
outstanding Securities that have been authenticated (other than
(i) Securities replaced pursuant to Section 2.07 and
(ii) Securities for whose payment has been deposited in trust and
thereafter repaid to the Issuers) for cancellation or (2) all outstanding
Securities that have not been delivered to the Trustee for cancellation have
become due and payable by reason of the mailing of a notice of redemption
pursuant to Article 3 hereof or otherwise will become due and payable
within one year or are to be called for redemption within one year and the
Company irrevocably deposits or causes to be deposited with the Trustee as
trust funds in trust solely for the benefit of the Securityholders, cash in
U.S. dollars, U.S. Government Obligations, or a combination thereof, in amounts
as will be sufficient, without consideration of any reinvestment of interest to
pay and discharge the entire Indebtedness

 

68

 

on
the Securities not previously delivered to the Trustee for cancellation (other
than Securities replaced pursuant to Section 2.07) (including principal
of, premium and interest, if any, on, the Securities to the date of maturity or
redemption), and if in either case the Issuers pay all other sums payable
hereunder by the Issuers, then this Indenture shall, subject to
Section 8.01(c), cease to be of further effect.  The Trustee shall acknowledge satisfaction
and discharge of this Indenture on demand of the Issuers accompanied by an
Officers’ Certificate and an Opinion of Counsel and at the cost and expense of
the Issuers.

 

(b)                                 Subject to Sections 8.01(c) and 8.02, the Issuers at any time may
terminate (1) all of the Issuers’ and each Subsidiary Guarantor’s
obligations under the Securities and this Indenture (“legal defeasance option”)
or (2) their obligations under Sections 4.02, 4.03, 4.04, 4.05, 4.06,
4.07, 4.08, 4.10, 4.11, 4.12 and 4.13 and the operation of
Sections 6.01(4), 6.01(5), 6.01(6), 6.01(7) or 6.01(8) (but, in
the case of Sections 6.01(6) and (7), with respect only to
Significant Subsidiaries) and the limitations contained in Section 5.01(a)(3) (“covenant
defeasance option”).  The Issuers may
exercise their legal defeasance option notwithstanding their prior exercise of
their covenant defeasance option.

 

If
the Issuers exercise their legal defeasance option, payment of the Securities
may not be accelerated because of an Event of Default with respect
thereto.  If the Issuers exercise their
covenant defeasance option, payment of the Securities may not be accelerated
because of an Event of Default specified in Sections 6.01(4), 6.01(5),
6.01(6), 6.01(7) or 6.01(8) (but, in the case of Sections 6.01(6) and
(7), with respect only to Significant Subsidiaries) or because of the failure
of the Issuers to comply with Section 5.01(a)(3).  If the Issuers exercise their legal defeasance
option or their covenant defeasance option, each Subsidiary Guarantor, if any,
shall be released from all its obligations with respect to its Subsidiary
Guarantee.

 

Upon
satisfaction of the conditions set forth herein and upon request of the
Issuers, the Trustee shall acknowledge in writing the discharge of those
obligations that the Issuers terminate.

 

(c)                                  Notwithstanding clauses (a) and (b) above, the Issuers’
obligations in Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 7.07 and 7.08 and
in this Article 8 shall survive until the Securities have been paid in
full.  Thereafter, the Issuers’
obligations in Sections 7.07, 8.04 and 8.05 shall survive.

 

SECTION 8.02.                 Conditions to Defeasance.  The
Issuers shall be entitled to exercise their legal defeasance option or their
covenant defeasance option only if:

 

(1)                                  the Issuers irrevocably deposit in trust with the Trustee money
or U.S. Government Obligations for the payment of principal of and
interest on the Securities to maturity or redemption, as the case may be;

 

69

 

(2)                                  the Company delivers to the Trustee a certificate from a nationally
recognized investment bank, appraisal firm or firm of independent public
accountants expressing their opinion that the payments of principal and
interest when due, plus any deposited money will provide cash at such times and
in such amounts as will be sufficient to pay principal and interest when due on
all the Securities to maturity or redemption, as the case may be;

 

(3)                                  the Company delivers to the Trustee an Opinion of Counsel (which opinion
may be subject to customary assumptions and exceptions) to the effect that
after the 91st day following the deposit, the trust funds will not be subject
to the effect of any applicable bankruptcy, insolvency, reorganization or
similar laws affecting creditors’ rights generally;

 

(4)                                  no Default or Event of Default shall have occurred and be continuing on
the date of such deposit (other than a Default or Event of Default resulting
from the borrowing of funds to be applied to such deposit (and any similar
concurrent deposit relating to other Indebtedness), and the granting of Liens
to secure such borrowings);

 

(5)                                  the deposit does not constitute a default under any other material
agreement (other than this Indenture and the agreements governing any other
Indebtedness being defeased, discharged or replaced) binding on an Issuer;

 

(6)                                  the Company delivers to the Trustee an Opinion of Counsel to the effect
that the trust resulting from the deposit does not constitute, nor is qualified
as, a regulated investment company under the Investment Company Act of 1940;

 

(7)                                  in the case of the legal defeasance option, the Company shall have
delivered to the Trustee an Opinion of Counsel stating that (A) the
Issuers have received from, or there has been published by, the Internal
Revenue Service a ruling or (B) since the Issue Date there has been a
change in the applicable Federal income tax law, in either case to the effect
that, and based thereon such Opinion of Counsel shall confirm that, the Securityholders
will not recognize income, gain or loss for Federal income tax purposes as a
result of such defeasance and will be subject to Federal income tax on the same
amounts, in the same manner and at the same times as would have been the case
if such defeasance had not occurred;

 

(8)                                  in the case of the covenant defeasance option, the Company shall have
delivered to the Trustee an Opinion of Counsel to the effect that the
Securityholders will not recognize income, gain or loss for Federal income tax
purposes as a result of such covenant defeasance and will be subject to Federal
income tax on the same amounts, in the same manner and at the same times as
would have been the case if such covenant defeasance had not occurred; and

 

(9)                                  the Company delivers to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent to the
defeasance

 

70

 

and
discharge of the Securities as contemplated by this Article 8 have been
complied with.

 

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

 

SECTION 8.03.                 Application of Trust Money.  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 Securities.

 

SECTION 8.04.                 Repayment to Issuers.  The
Trustee and the Paying Agent shall promptly turn over to the Issuers 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 Issuers upon 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 Issuers for payment as
general creditors.

 

SECTION 8.05.                 Indemnity for Government Obligations.  The
Issuers 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 8.06.                 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 of competent
jurisdiction or governmental authority enjoining, restraining or otherwise
prohibiting such application, the Issuers’ and each Subsidiary Guarantor’s
obligations under this Indenture, each Subsidiary Guarantee and the Securities
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 Issuers have
made any payment of interest on or principal of any Securities because of the
reinstatement of their obligations, the Issuers shall be subrogated to the
rights of the Holders of such Securities to receive such payment from the money
or U.S. Government Obligations held by the Trustee or Paying Agent.

 

71

 

Article 9

 

Amendments

 

SECTION 9.01.                 Without Consent of Holders.  The
Issuers, the Subsidiary Guarantors and the Trustee may amend this Indenture or
the Securities without notice to or consent of any Securityholder:

 

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

 

(2)                                  to provide for the assumption by a successor corporation of the
obligations of the Issuers or any Subsidiary Guarantor under the Securities,
this Indenture or a Subsidiary Guarantee, as applicable;

 

(3)                                  to provide for uncertificated Securities in addition to or in place of
certificated Securities; provided, however, that the
uncertificated Securities are issued in registered form for purposes of
Section 163(f) of the Code or in a manner such that the
uncertificated Securities are described in Section 163(f)(2)(B) of
the Code;

 

(4)                                  to add Guarantees with respect to the Securities, including any
Subsidiary Guarantees, or to secure the Securities;

 

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

 

(6)                                  to make any change that would provide additional rights or benefits to
the Holders or that does not adversely affect the rights under this Indenture
of any Securityholders;

 

(7)                                  to comply with any requirement of the SEC in connection with the
qualification of this Indenture under the TIA;

 

(8)                                  to conform the text of this Indenture, the Securities and the Subsidiary
Guaranties to any provision of the “Description of notes” contained in the
Offering Memorandum to the extent that such provision was intended to be a verbatim
recitation of a provision of this Indenture, the Securities and the Subsidiary
Guarantees;

 

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

 

72

 

(10)                            to provide for a successor Trustee in accordance with the terms of this
Indenture or to otherwise comply with any requirement of this Indenture; or

 

(11)                            to comply with the rules of any applicable securities depository.

 

After
an amendment under this Section 9.01 becomes effective, the Issuers shall
mail to Securityholders a notice briefly describing such amendment.  The failure to give such notice to all
Securityholders, or any defect therein, shall not impair or affect the validity
of an amendment under this Section 9.01.

 

SECTION 9.02.                 With Consent of Holders.  The
Issuers, the Subsidiary Guarantors and the Trustee may amend this Indenture or
the Securities with the written consent of the Holders of at least a majority
in principal amount of the Securities then outstanding (including consents
obtained in connection with a tender offer or exchange for the Securities) and
any past default or compliance with any provisions may also be waived with the
consent of the Holders of at least a majority in principal amount of the
Securities then outstanding.  However,
without the consent of each Securityholder affected thereby, an amendment or
waiver may not:

 

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

 

(2)                                  reduce the rate of or extend the time for payment of interest on any
Security;

 

(3)                                  reduce the principal of or change the Stated Maturity of any Security;

 

(4)                                  change the provisions applicable to the redemption of any Security
contained in Article 3 hereto or paragraph 5 of the Securities;

 

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

 

(6)                                  impair the right of any Securityholder to receive payment of principal of
and interest on such Securityholder’s Securities on or after the due dates
therefore or to institute suit for the enforcement of any payment on or with
respect to such Securityholder’s Securities;

 

(7)                                  make any change in the amendment provisions that require each Securityholder’s
consent or in the waiver provision;

 

(8)                                  make any change in the ranking or priority of any Security that would
adversely affect the Securityholders; or

 

(9)                                  make any change in any Subsidiary Guarantee that would adversely affect
the Securityholders or release any Subsidiary Guarantee (other than in
accordance with the terms of this Indenture).

 

73

 

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

 

After
an amendment under this Section 9.02 becomes effective, the Issuers shall
mail to Securityholders a notice briefly describing such amendment.  The failure to give such notice to all
Securityholders, or any defect therein, shall not impair or affect the validity
of an amendment under this Section 9.02.

 

SECTION 9.03.                 Compliance with Trust Indenture Act.  Every
amendment to this Indenture or the Securities shall comply with the TIA as then
in effect.

 

SECTION 9.04.                 Revocation and Effect of Consents and Waivers.  A
consent to an amendment or a waiver by a Holder of a Security shall bind the
Holder and every subsequent Holder of that Security or portion of the Security
that evidences the same debt as the consenting Holder’s Security, even if
notation of the consent or waiver is not made on the Security.  However, any such Holder or subsequent Holder
may revoke the consent or waiver as to such Holder’s Security or portion of the
Security if the Trustee receives the notice of revocation before the date the
amendment or waiver becomes effective. 
After an amendment or waiver becomes effective, it shall bind every Securityholder.  An amendment or waiver becomes effective upon
the execution of such amendment or waiver by the Trustee.

 

The
Issuers may, but shall not be obligated to, fix a record date for the purpose
of determining the Securityholders 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 Securityholders 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.  No such consent shall be valid or effective for
more than 120 days after such record date.

 

SECTION 9.05.                 Notation on or Exchange of Securities.  If an
amendment changes the terms of a Security, the Issuers may require the Holder
of the Security to deliver it to the Trustee. 
The Trustee may place an appropriate notation as provided by the Issuer
on the Security regarding the changed terms and return it to the Holder.  Alternatively, if the Issuers or the Trustee
so determines, the Issuers in exchange for the Security shall issue and the
Trustee shall authenticate a new Security that reflects the changed terms.  Failure to make the appropriate notation or
to issue a new Security shall not affect the validity of such amendment.

 

SECTION 9.06.                 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
satisfactory to it and to receive, and (subject to Section 7.01)

 

74

 

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.

 

SECTION 9.07.                 Payment for Consent.  Neither the
Issuers nor any Affiliate of the Issuers 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 of this Indenture or the Securities
unless such consideration is offered to all Holders and is paid to all Holders
that so consent, waive or agree to amend in the time frame set forth in
solicitation documents relating to such consent, waiver or agreement.

 

Article 10

 

Subsidiary
Guarantees

 

SECTION 10.01.           Guarantees.  Each
Subsidiary Guarantor hereby unconditionally and irrevocably guarantees, jointly
and severally on a senior unsecured basis, to each Holder and to the Trustee
and its successors and assigns (a) the full and punctual payment of
principal of and interest on the Securities when due, whether at maturity, by
acceleration, by redemption or otherwise, and all other monetary obligations of
the Issuers under this Indenture and the Securities and (b) the full and
punctual performance within applicable grace periods of all other obligations
of the Issuers under this Indenture and the Securities (all the foregoing being
hereinafter collectively called the “Guaranteed Obligations”).  Each Subsidiary Guarantor further agrees that
the Guaranteed Obligations may be extended or renewed, in whole or in part,
without notice or further assent from such Subsidiary Guarantor and that such
Subsidiary Guarantor will remain bound under this Article 10
notwithstanding any extension or renewal of any Obligation.

 

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

 

Each
Subsidiary Guarantor further
agrees that its Subsidiary
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 

 

75

 

any
Holder or the Trustee to any security held for payment of the Guaranteed
Obligations.

 

Except
as expressly set forth in Sections 8.01(b), 10.02 and 10.06, the
obligations of each Subsidiary 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 Subsidiary 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 such Subsidiary Guarantor or would otherwise operate as a discharge of
such Subsidiary Guarantor as a
matter of law or equity.

 

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

 

In
furtherance of the foregoing and not in limitation of any other right which any
Holder or the Trustee has at law or in equity against any Subsidiary Guarantor
by virtue hereof, upon the failure of the Issuers to pay the principal of or
interest on any 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 Obligation, each Subsidiary
Guarantor hereby promises to and shall, upon receipt of written demand by the
Trustee, forthwith pay, or cause to be paid, in cash, to the Holders or the
Trustee an amount equal to the sum of (A) the unpaid amount of such
Guaranteed Obligations, (B) accrued and unpaid interest on such Guaranteed
Obligations (but only to the extent not prohibited by law) and (C) all
other monetary Guaranteed Obligations of the Issuers to the Holders and the
Trustee.

 

Each
Subsidiary Guarantor agrees
that, as between it, on the one hand, and the Holders and the Trustee, on the
other hand, (i) the maturity of the Guaranteed Obligations hereby may be
accelerated as provided in Article 6 for the purposes of such Subsidiary Guarantor’s Subsidiary Guarantee herein,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Guaranteed Obligations guaranteed hereby and
(ii) in the event of any declaration of acceleration of such Guaranteed
Obligations as provided in Article 6, such Guaranteed Obligations (whether
or not due and payable) shall forthwith become due and payable by such
Subsidiary Guarantor for the purposes of this Section 10.01.

 

76

 

Each
Subsidiary Guarantor also agrees to pay any and all costs and expenses
(including reasonable attorneys’ fees) incurred by the Trustee or any Holder in
enforcing any rights under this Section 10.01.

 

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

 

SECTION 10.03.           Successors and Assigns.  This
Article 10 shall be binding upon each Subsidiary Guarantor and its successors and assigns and
shall enure 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 Securities shall automatically extend to and be vested in
such transferee or assignee, all subject to the terms and conditions of this
Indenture.

 

SECTION 10.04.           No Waiver.  Neither a
failure nor a delay on the part of either the Trustee or the Holders in
exercising any right, power or privilege under this Article 10 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 10 at law, in equity, by statute or otherwise.

 

SECTION 10.05.           Modification.  No
modification, amendment or waiver of any provision of this Article 10, nor
the consent to any departure by any Subsidiary 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 Subsidiary Guarantor in any case shall entitle such Subsidiary Guarantor to any other or further notice or
demand in the same, similar or other circumstances.

 

SECTION 10.06.           Release of Subsidiary Guarantor.  A Subsidiary Guarantor will be
released from its obligations under this Article 10 (other than any
obligation that may have arisen under Section 10.07).

 

(1)                                  upon the sale (including any sale pursuant to any exercise of remedies by
a holder of Indebtedness of an Issuer or of such Subsidiary Guarantor) or other
disposition (including by way of consolidation or merger) of a Subsidiary Guarantor (including the sale or disposition
of Equity Interests of a Subsidiary Guarantor) following which such Subsidiary
Guarantor is no longer a Subsidiary of the Company;

 

77

 

(2)                                  upon the sale or disposition of all or substantially all the assets of a Subsidiary Guarantor;

 

(3)                                  upon the designation of such Subsidiary Guarantor as an Unrestricted Subsidiary to
the extent permitted by this Indenture;

 

(4)                                  at such time as such Subsidiary Guarantor does not have any Indebtedness outstanding that would have
required such Subsidiary
Guarantor to enter into a Guarantee Agreement pursuant to Section 4.13 and
the Issuers provides an Officers’ Certificate to the Trustee certifying that no
such Indebtedness is outstanding and that the Issuers elect to have such Subsidiary Guarantor released from this
Article 10;

 

(5)                                  upon defeasance of the Securities pursuant to Article 8; or

 

(6)                                  upon the full satisfaction of the Issuers’ obligations under this
Indenture;

 

provided, however,
that in the case of clauses (1) and (2) above, (i) such
sale or other disposition is made to a Person other than an Issuer or an
Affiliate of either Issuer, (ii) such sale or disposition is otherwise
permitted by this Indenture and (iii) the Issuers provides an Officers’
Certificate to the Trustee to the effect that the Issuers will comply with
their obligations under Section 4.06.

 

At
the request of the Issuers, the Trustee shall execute and deliver an
appropriate instrument evidencing such release.

 

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

 

Article 11

 

Miscellaneous

 

SECTION 11.01.           Trust Indenture Act Controls.  If any
provision of this Indenture limits, qualifies or conflicts with another
provision which is required to be included in this Indenture by the TIA, the
required provision shall control.

 

SECTION 11.02.           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 Issuers:

 

EnergySolutions, Inc.

 

78

 

423 West Street South, Suite 200

Salt Lake City, Utah 84101

Attention:  Corporate Secretary

 

if
to the Trustee:

 

Wells Fargo Bank, National Association

201 Main Street, Suite 301

Ft. Worth, Texas 76102

Attention:  Corporate Trust Services

 

The
Issuers, any Subsidiary Guarantor
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 Securityholder shall be mailed to the
Securityholder at the Securityholder’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 Securityholder or any defect in it shall
not affect its sufficiency with respect to other Securityholders.  If a notice or communication is mailed in the
manner provided above, it is duly given, whether or not the addressee receives
it.

 

SECTION 11.03.           Communication by Holders with Other Holders.  Securityholders
may communicate pursuant to TIA § 312(b) with other Securityholders with
respect to their rights under this Indenture or the Securities.  The Issuers, any Subsidiary Guarantor, the
Trustee, the Registrar and anyone else shall have the protection of TIA §
312(c).

 

SECTION 11.04.           Certificate and Opinion as to Conditions Precedent.  Upon
any request or application by the Issuers to the Trustee to take or refrain
from taking any action under this Indenture, the Issuers shall furnish to the
Trustee:

 

(1)                                  an Officers’ Certificate in form and substance 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 satisfactory to the Trustee
stating that, in the opinion of such counsel, all such conditions precedent
have been complied with.

 

SECTION 11.05.           Statements Required in Certificate or Opinion.  Each
certificate or opinion with respect to compliance with a covenant or condition
provided for in this Indenture shall include:

 

79

 

(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

 

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

 

SECTION 11.06.           When Securities Disregarded.  In
determining whether the Holders of the required principal amount of Securities
have concurred in any direction, waiver or consent, Securities owned by an Issuer
or by any Person directly or indirectly controlling or controlled by or under
direct or indirect common control with an Issuer 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 Securities which the Trustee knows are so owned shall be so
disregarded.  Also, subject to the
foregoing, only Securities outstanding at the time shall be considered in any
such determination.

 

SECTION 11.07.           Rules by Trustee, Paying Agent and Registrar.  The
Trustee may make reasonable rules for action by or a meeting of
Securityholders.  The Registrar and the
Paying Agent may make reasonable rules for their functions.

 

SECTION 11.08.           Legal Holidays.  If a
payment date is a Legal Holiday, payment shall be made on the next succeeding
day that is not a Legal Holiday.  If a
regular record date is a Legal Holiday, the record date shall not be affected.

 

SECTION 11.09.           Governing Law.  This Indenture
and the Securities shall be governed by, and construed in accordance with, the
laws of the State of New York.

 

SECTION 11.10.           No Recourse Against Others.  A
director, officer, employee or stockholder, as such, of an Issuer or any
Subsidiary Guarantor shall not have any liability for any obligations of such
Issuer under the Securities or this Indenture or of such Subsidiary Guarantor
under its Subsidiary Guarantee or this Indenture  or for any claim based on, in respect of or by reason of such
obligations or their creation.  By
accepting a Security, each Securityholder shall waive and release all such
liability.  The waiver and release shall
be part of the consideration for the issue of the Securities.

 

SECTION 11.11.           Successors.  All
agreements of the Issuers or any Subsidiary Guarantor in this Indenture and the
Securities shall bind its successors. 
All agreements of the Trustee in this Indenture shall bind their
successors.

 

80

 

SECTION 11.12.           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 11.13.           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.

 

[Remainder of Page Intentionally Left Blank]

 

81

 

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

 

	
   

  	
  ENERGYSOLUTIONS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ENERGYSOLUTIONS,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Executive
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BNG AMERICA, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BNG AMERICA SAVANNAH RIVER CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CHEM-NUCLEAR SYSTEMS L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  

 

[Signature Page to Indenture]

 

82

 

	
   

  	
  DURATEK SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DURATEK, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ENERGYSOLUTION
  COMPANY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ENERGYSOLUTIONS DIVERSIFIED SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ENERGYSOLUTIONS FEDERAL EPC, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  

 

[Signature Page to Indenture]

 

83

 

	
   

  	
  ENERGYSOLUTIONS FEDERAL SERVICES OF HANFORD, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ENERGYSOLUTIONS FEDERAL SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ENERGYSOLUTIONS FUEL SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ENERGYSOLUTIONS WATER SYSTEM, LLC 

  
	
   

  	
   

  
	
   

  	
  by EnergySolutions,
  LLC, its sole member

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  	
   

  	
  /s/ Mark C. McBride

  
	
   

  	
   

  	
  Name:

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ENERGYSOLUTIONS,
  SPENT FUEL DIVISION, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer

  

 

[Signature Page to Indenture]

 

84

 

	
  GTSD SUB IV, INC.

  
	
   

  
	
  By:

  
	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
  Name:

  	
  Mark
  C. McBride

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  HITTMAN TRANSPORT SERVICES, INC.

  
	
   

  
	
  By:

  
	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
  Name:

  	
  Mark
  C. McBride

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  MANUFACTURING SCIENCES CORPORATION

  
	
   

  
	
  By:

  
	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
  Name:

  	
  Mark
  C. McBride

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  ENERGYSOLUTIONS PERFORMANCE STRATEGIES, INC.

  
	
   

  
	
  By:

  
	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
  Name:

  	
  Mark
  C. McBride

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  PROPERTY VALUE RESTORATION, LLC

  
	
   

  
	
  By:

  
	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
  Name:

  	
  Mark
  C. McBride

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer

  

 

[Signature Page to Indenture]

 

85

 

	
  ENERGYSOLUTIONS OF
  OHIO, LLC

  
	
   

  
	
  By:

  
	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
  Name:

  	
  Mark
  C. McBride

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  ENERGYSOLUTIONS MIDWEST, LLC

  
	
   

  
	
  By:

  
	
   

  	
   

  	
  /s/
  Mark C. McBride

  
	
   

  	
  Name:

  	
  Mark
  C. McBride

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer

  

 

[Signature Page to Indenture]

 

86

 

	
  WELLS FARGO BANK, NATIONAL ASSOCIATION

  
	
   

  
	
  By:

  
	
   

  	
   

  	
  /s/
  John C. Stohlmann

  
	
   

  	
  Name:

  	
  John
  C. Stohlmann

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

[Signature Page to Indenture]

 

87

 

RULE 144A/REGULATION S
APPENDIX

 

PROVISIONS RELATING TO INITIAL SECURITIES

AND EXCHANGE SECURITIES

 

1.                                       Definitions

 

For the purposes of this Appendix
the following terms shall have the meanings indicated below:

 

“Additional
Securities” means Securities (other than the Initial Securities issued on the
Issue Date) issued under the Indenture, as part of the same series as the
Initial Securities issued on the Issue Date.

 

“Applicable
Procedures” means, with respect to any transfer or transaction prior to the expiration
of the Distribution Compliance Period and involving a Regulation S Global
Security or beneficial interest therein, the rules and procedures of the
Depository for such a transfer or transaction, to the extent applicable and as
in effect from time to time.

 

“Definitive
Security” means a certificated Initial Security or Exchange Security bearing,
if required, the appropriate restricted securities legend set forth in Section 2.3(e).

 

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

 

“Distribution
Compliance Period”, with respect to any Securities, means the period of 40
consecutive days beginning on and including the later of (i) the day on
which such Securities are first offered to Persons other than distributors (as
defined in Regulation S under the Securities Act) in reliance on Regulation S
and (ii) the issue date with respect to such Securities.

 

“Exchange
Securities” means (1) the
10.75% Senior Notes due 2018 issued pursuant to the Indenture in connection
with a Registered Exchange Offer
pursuant to a Registration
Rights Agreement and
(2) Additional Securities, if any, issued pursuant to a registration
statement filed with the SEC under the Securities Act.

 

“Initial
Purchasers” means (1) with respect to the Initial
Securities issued on the Issue Date, J.P. Morgan Securities Inc., Credit
Suisse Securities (USA) LLC and Citigroup Global Markets Inc. and (2) with respect to each issuance of
Additional Securities, the Persons purchasing such Additional Securities under
the related Purchase Agreement.

 

“Initial
Securities” means (1) $300,000,000
aggregate principal amount of 10.75% Senior Notes due 2018 issued on the
Issue Date and (2) Additional
Securities, if any, issued in a transaction exempt from the registration
requirements of the Securities Act.

 

 

“Purchase
Agreement” means (1) with respect
to the Initial Securities issued on the Issue Date, the Purchase
Agreement dated August 5, 2010, among the Issuers, the Guarantors and the
Initial Purchasers and (2) with
respect to each issuance of Additional Securities, the purchase agreement or
underwriting agreement among the Issuers, the Guarantors and the Persons
purchasing such Additional Securities.

 

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

 

“Registered
Exchange Offer” means the offer by the Issuers, pursuant to a Registration Rights Agreement, to
certain Holders of Initial Securities, to issue and deliver to such Holders, in
exchange for the Initial Securities, a like aggregate principal amount of
Exchange Securities registered under the Securities Act.

 

“Registration
Rights Agreement” means (1) with
respect to the Initial Securities issued on the Issue Date, the
Registration Rights Agreement dated August 13, 2010, among the Issuers,
the Guarantors and the Initial Purchasers and (2) with respect to each issuance of Additional Securities
issued in a transaction exempt from the registration requirements of the
Securities Act, the registration rights agreement, if any, among the Issuers
and the Persons purchasing such Additional Securities under the related
Purchase Agreement.

 

“Rule 144A Securities” means all Securities
offered and sold to QIBs in reliance on Rule 144A.

 

“Securities”
means the Initial Securities and the Exchange Securities, treated as a single
class.

 

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

 

“Securities
Custodian” means the custodian with respect to a Global Security (as appointed
by the Depository), or any successor Person thereto and shall initially be the
Trustee.

 

“Shelf
Registration Statement” means the registration statement issued by the Issuers
in connection with the offer and sale of Initial Securities pursuant to a
Registration Rights Agreement.

 

“Transfer
Restricted Securities” means Securities that bear or are required to bear the
legend relating to restrictions on transfer relating to the Securities Act set
forth in Section 2.3(e) hereto.

 

2

 

1.2                                 Other
Definitions

 

	
  Term

  	
   

  	
  Defined in

  Section:

  
	
  “Agent
  Members”

  	
   

  	
  2.1(b)

  
	
  “Global
  Securities”

  	
   

  	
  2.1(a)

  
	
  “Regulation
  S”

  	
   

  	
  2.1(a)

  
	
  “Regulation
  S Global Security”

  	
   

  	
  2.1(a)

  
	
  “Rule 144A”

  	
   

  	
  2.1(a)

  
	
  “Rule 144A
  Global Security”

  	
   

  	
  2.1(a)

  

 

2.                                       The Securities.

 

2.1                                 (a)  Form and
Dating.  The Initial Securities will
be offered and sold by the Issuers pursuant to a Purchase Agreement.  The Initial Securities will be resold
initially only to (i) QIBs in reliance on Rule 144A under the
Securities Act (“Rule 144A”) and (ii) Persons other than U.S. Persons
(as defined in Regulation S) in reliance on Regulation S under the Securities
Act (“Regulation S”).  Initial Securities
may thereafter be transferred to, among others, QIBs and purchasers in reliance
on Regulation S, subject to the restrictions on transfer set forth herein.  Initial Securities initially resold pursuant
to Rule 144A shall be issued initially in the form of one or more
permanent global Securities in definitive, fully registered form (collectively,
the “Rule 144A Global Security”) and Initial Securities initially resold
pursuant to Regulation S shall be issued initially in the form of one or more
global securities in definitive, fully registered form (collectively, the “Regulation
S Global Security”), in each case without interest coupons and with the global
securities legend and the applicable restricted securities legend set forth in
Exhibit A hereto, which shall be deposited on behalf of the purchasers of
the Initial Securities represented thereby with the Securities Custodian and
registered in the name of the Depository or a nominee of the Depository, duly
executed by the Issuers and authenticated by the Trustee as provided in this
Indenture.  The Rule 144A Global
Security and the Regulation S Global Security are collectively referred to
herein as “Global Securities”.  The
aggregate principal amount of the Global Securities may from time to time be
increased or decreased by adjustments made on the records of the Trustee and
the Depository or its nominee as hereinafter provided.

 

(b)                                 Book-Entry
Provisions.  This
Section 2.1(b) shall apply only to a Global Security deposited with
or on behalf of the Depository.

 

The
Issuers shall execute and the Trustee shall, in accordance with this
Section 2.1(b), authenticate and deliver initially one or more Global
Securities that (a) shall be registered in the name of the Depository for
such Global Security or Global Securities 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 custodian for the
Depository.

 

3

 

Members
of, or participants in, the Depository (“Agent Members”) shall have no rights
under this Indenture with respect to any Global Security held on their behalf
by the Depository or by the Trustee as the custodian of the Depository or under
such Global Security, and the Issuers, the Trustee and any agent of the Issuers
or the Trustee shall be entitled to treat the Depository as the absolute owner
of such Global Security for all purposes whatsoever.  Notwithstanding the foregoing, nothing herein
shall prevent the Issuers, the Trustee or any agent of the Issuers or the
Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Depository or impair, as between the Depository
and 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 Security.

 

(c)                                  Definitive
Securities.  Except as
provided in Section 2.3 or 2.4, owners of beneficial interests in Global
Securities shall not be entitled to receive physical delivery of Definitive
Securities.

 

2.2                                 Authentication.  The
Trustee shall authenticate and deliver: 
(1) on the Issue Date, an aggregate principal amount of
$300,000,000 10.75% Senior Notes due 2018, (2) any Additional Securities for an original issue in an
aggregate principal amount specified in the written order of the Issuers
pursuant to Section 2.02 of the Indenture and (3) Exchange Securities for issue
only in a Registered Exchange Offer pursuant to a Registration Rights Agreement
for a like principal amount of Initial Securities, in each case upon a written
order of the Issuers signed by one Officer of each Issuer.  Such order shall specify the amount of the
Securities to be authenticated and the date on which the original issue of
Securities is to be authenticated and,
in the case of any issuance of Additional Securities pursuant to
Section 2.13 of the Indenture, shall certify that such issuance is in
compliance with Section 4.03 of the Indenture.

 

2.3                                 Transfer and
Exchange. 
(a)  Transfer and Exchange of Definitive Securities.  When Definitive Securities are presented to
the Registrar with a request:

 

(x)                                   to register the
transfer of such Definitive Securities; or

 

(y)                                 to exchange
such Definitive Securities for an equal principal amount of Definitive
Securities 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 Definitive Securities surrendered for transfer or exchange:

 

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

 

(ii)                             if such
Definitive Securities are required to bear a restricted securities legend, they
are being transferred or exchanged pursuant to an effective registration
statement under the Securities Act, pursuant to

 

4

 

Section 2.3(b) or
pursuant to clause (A), (B) or (C) below, and are accompanied by the
following additional information and documents, as applicable:

 

(A)                              if such Definitive Securities 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; or

 

(B)                                if such Definitive Securities are being
transferred to the Issuers, a certification to that effect; or

 

(C)                                if such Definitive Securities are being
transferred (x) pursuant to an exemption from registration in accordance
with Rule 144A, Regulation S or Rule 144 under the Securities Act; or
(y) in reliance upon another exemption from the requirements of the
Securities Act: (i) a certification to that effect (in the form set forth
on the reverse of the Security) and (ii) if the Issuers so request, an
opinion of counsel or other evidence reasonably satisfactory to it as to the
compliance with the restrictions set forth in the legend set forth in Section 2.3(e)(i).

 

(b)                                 Restrictions on Transfer of a Definitive Security for a Beneficial
Interest in a Global Security.  A Definitive Security may not be
exchanged for a beneficial interest in a Rule 144A Global Security or a
Regulation S Global Security except upon satisfaction of the requirements set
forth below.  Upon receipt by the Trustee
of a Definitive Security, duly endorsed or accompanied by appropriate
instruments of transfer, in form satisfactory to the Trustee, together with:

 

(i)                                certification,
in the form set forth on the reverse of the Security, that such Definitive
Security is either (A) being transferred to a QIB in accordance with
Rule 144A or (B) being transferred after expiration of the
Distribution Compliance Period by a Person who initially purchased such
Security in reliance on Regulation S to a buyer who elects to hold its interest
in such Security in the form of a beneficial interest in the Regulation S
Global Security; and

 

(ii)                             written
instructions directing the Trustee to make, or to direct the Securities
Custodian to make, an adjustment on its books and records with respect to such
Rule 144A Global Security (in the case of a transfer pursuant to clause
(b)(i)(A)) or Regulation S Global Security (in the case of a transfer pursuant
to clause (b)(i)(B)) to reflect an increase in the aggregate principal amount
of the Securities represented by the Rule 144A Global Security or
Regulation S Global Security, as applicable, such instructions to contain
information regarding the Depository account to be credited with such increase,

 

then
the Trustee shall cancel such Definitive Security and cause, or direct the Securities
Custodian to cause, in accordance with the standing instructions and procedures
existing

 

5

 

between
the Depository and the Securities Custodian, the aggregate principal amount of
Securities represented by the Rule 144A Global Security or Regulation S
Global Security, as applicable, to be increased by the aggregate principal
amount of the Definitive Security 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 Rule 144A Global Security or Regulation S
Global Security, as applicable, equal to the principal amount of the Definitive
Security so canceled.  If no Rule 144A
Global Securities or Regulation S Global Securities, as applicable, are then
outstanding, the Issuers shall issue and the Trustee shall authenticate, upon
written order of the Issuers in the form of an Officers’ Certificate of the
Issuers, a new Rule 144A Global Security or Regulation S Global Security,
as applicable, in the appropriate principal amount.

 

(c)                                  Transfer and Exchange of Global Securities.

 

(i)                                The transfer
and exchange of Global Securities or beneficial interests therein shall be
effected through the Depository, in accordance with the 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 Security shall deliver to the
Registrar 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 the Global Security.  The Registrar shall, in accordance with such
instructions, cause the Depository to credit to the account of the Person
specified in such instructions a beneficial interest in the Global Security and
to debit the account of the Person making the transfer the beneficial interest
in the Global Security being transferred.

 

(ii)                             If the proposed
transfer is a transfer of a beneficial interest in one Global Security to a
beneficial interest in another Global Security, the Registrar shall reflect on
its books and records the date and an increase in the principal amount of the
Global Security to which such interest is being transferred in an amount equal
to the principal amount of the interest to be so transferred, and the Registrar
shall reflect on its books and records the date and a corresponding decrease in
the principal amount of the Global Security from which such interest is being
transferred.

 

(iii)                          Notwithstanding
any other provisions of this Appendix (other than the provisions set forth in
Section 2.4), a Global Security may not be transferred as a whole except
by the Depository to a nominee of the Depository or by a nominee of the
Depository to the Depository or another nominee of the Depository or by the
Depository or any such nominee to a successor Depository or a nominee of such
successor Depository.

 

(iv)                         In the event
that Global Security is exchanged for Definitive Securities pursuant to Section 2.4
of this Appendix, prior to the consummation of a Registered Exchange Offer or
the effectiveness of a

 

6

 

Shelf Registration Statement
with respect to such Securities, such Securities may be exchanged only in
accordance with such procedures as are substantially consistent with the
provisions of this Section 2.3 (including the certification requirements
set forth on the reverse of the Initial Securities intended to ensure that such
transfers comply with Rule 144A, Regulation S or another applicable
exemption under the Securities Act, as the case may be) and such other
procedures as may from time to time be adopted by the Issuers.

 

(d)                                 Restrictions on Transfer of Regulation S Global Securities.  During the Distribution
Compliance Period, beneficial ownership interests in Regulation S Global
Securities may only be sold, pledged or transferred in accordance with the
Applicable Procedures and only (i) to the Issuers, (ii) in an
offshore transaction in accordance with Regulation S and (iii) pursuant to
an effective registration statement under the Securities Act, in each case in
accordance with any applicable securities laws of any State of the United
States.

 

(e)                                  Legend.

 

(i)                                Except as
permitted by the following paragraphs (ii), (iii) and (iv), each
Security certificate evidencing the Global Securities (and all Securities
issued in exchange therefor or in substitution thereof) shall bear a legend in
substantially the following form:

 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE ‘‘SECURITIES ACT’’), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION.  NEITHER THIS SECURITY NOR
ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF,
AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS
PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR
TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS [IN THE CASE OF
RULE 144A NOTES: ONE YEAR (OR SUCH OTHER PERIOD THEN REQUIRED UNDER RULE 144 OR
ITS SUCCESSOR RULE)] [IN THE CASE OF REGULATION S NOTES: 40 DAYS] AFTER THE
LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUERS
OR ANY AFFILIATE OF THE ISSUERS WAS THE OWNER

 

7

 

OF
THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE
ISSUERS, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED
EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE
ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON
IT REASONABLY BELIEVES IS A ‘‘QUALIFIED INSTITUTIONAL BUYER’’ AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR
THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS
AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION
S UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE
ISSUERS’ AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION
OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF
THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE
RESALE RESTRICTION TERMINATION DATE.

 

Each Definitive Security shall also bear the following additional
legend:

 

IN
CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND
TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY
REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

 

(ii)                                  Upon any sale
or transfer of a Transfer Restricted Security (including any Transfer
Restricted Security represented by a Global Security) pursuant to Rule 144
under the Securities Act, the Registrar shall permit the transferee thereof to
exchange such Transfer Restricted Security for a certificated Security that
does not bear the legend set forth above and rescind any restriction on the
transfer of such Transfer Restricted Security, if the transferor thereof
certifies in writing to the Registrar that such sale or transfer was made in
reliance on Rule 144 (such certification to be in the form set forth on
the reverse of the Security).

 

8

 

(iii)                               After a
transfer of any Initial Securities pursuant to and during the period of the
effectiveness of a Shelf Registration Statement with respect to such Initial
Securities, all requirements pertaining to legends on such Initial Security
will cease to apply, the requirements requiring any such Initial Security
issued to certain Holders be issued in global form will cease to apply, and a
certificated Initial Security or an Initial Security in global form, in each
case without restrictive transfer legends, will be available to the transferee
of the Holder of such Initial Securities upon exchange of such transferring
Holder’s certificated Initial Security or directions to transfer such Holder’s
interest in the Global Security, as applicable.

 

(iv)                              Upon the
consummation of a Registered Exchange Offer with respect to the Initial
Securities, all requirements pertaining to such Initial Securities that Initial
Securities issued to certain Holders be issued in global form will still apply
with respect to Holders of such Initial Securities that do not exchange their
Initial Securities, and Exchange Securities in certificated or global form, in
each case without the restricted securities legend set forth in Exhibit A
hereto will be available to Holders that exchange such Initial Securities in such
Registered Exchange Offer.

 

(f)                                    Cancellation or Adjustment of Global Security.  At such time as all beneficial
interests in a Global Security have either been exchanged for Definitive
Securities, redeemed, purchased or canceled, such Global Security shall be returned
to the Depository for cancellation or retained and canceled by the
Trustee.  At any time prior to such
cancellation, if any beneficial interest in a Global Security is exchanged for
certificated Securities, redeemed, purchased or canceled, the principal amount
of Securities represented by such Global Security shall be reduced and an
adjustment shall be made on the books and records of the Trustee (if it is then
the Securities Custodian for such Global Security) with respect to such Global
Security, by the Trustee or the Securities Custodian, to reflect such
reduction.

 

(g)                                 No Obligation of the Trustee

 

(i)                                The Trustee
shall have no responsibility or obligation to any beneficial owner of a Global
Security, a member of, or a participant in the Depository or other Person with
respect to the accuracy of the records of the Depository or its nominee or of
any participant or member thereof, with respect to any ownership interest in
the Securities or with respect to the delivery to any participant, member, beneficial
owner or other Person (other than the Depository) of any notice (including any
notice of redemption) or the payment of any amount, under or with respect to
such Securities.  All notices and
communications to be given to the Holders and all payments to be made to
Holders under the Securities shall be given or made only to or upon the order
of the registered Holders (which shall be the Depository or its nominee in the
case of a Global Security).  The rights
of beneficial owners in any Global Security shall be exercised only

 

9

 

through the Depository
subject to the applicable rules and procedures of the Depository.  The Trustee may rely and shall be fully
protected in relying upon information furnished by the Depository with respect
to its members, participants and any beneficial owners.

 

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

 

2.4                                 Definitive
Securities.  (a)  A
Global Security deposited with the Depository or with the Trustee as Securities
Custodian for the Depository pursuant to Section 2.1 shall be transferred
to the beneficial owners thereof in the form of Definitive Securities in an
aggregate principal amount equal to the principal amount of such Global
Security, in exchange for such Global Security, only if such transfer complies
with Section 2.3 hereof and (i) the Depository notifies the Issuers
that it is unwilling or unable to continue as Depository for such Global
Security and the Depository fails to appoint a successor depository or if at
any time such Depository ceases to be a “clearing agency” registered under the
Exchange Act, in either case, and a successor depository is not appointed by
the Issuers within 90 days of such notice, (ii) an Event of Default
has occurred and is continuing or (iii) the Issuers, in their sole
discretion, notify the Trustee in writing that they elect to cause the issuance
of Definitive Securities under this Indenture.

 

(b)                                 Any Global
Security that is transferable to the beneficial owners thereof pursuant to this
Section 2.4 shall be surrendered by the Depository to the Trustee located
at its principal corporate trust office 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 Security, an equal
aggregate principal amount of Definitive Securities of authorized
denominations.  Any portion of a Global
Security transferred pursuant to this Section 2.4 shall be executed,
authenticated and delivered only in denominations of $2,000 principal amount
and any integral multiple of $1,000 in excess thereof and registered in such
names as the Depository shall direct. 
Any Definitive Security delivered in exchange for an interest in the
Transfer Restricted Security shall, except as otherwise provided by
Section 2.3(e) hereof, bear the applicable restricted securities
legend and definitive securities legend set forth in Exhibit A hereto.

 

(c)                                  Subject to the
provisions of Section 2.4(b) hereof, the registered Holder of a
Global Security shall be entitled to grant proxies and otherwise authorize any
Person, including Agent Members and Persons that may hold interests through
Agent

 

10

 

Members,
to take any action which a Holder is entitled to take under this Indenture or
the Securities.

 

(d)           In the event of the occurrence of one
of the events specified in Section 2.4(a) hereof, the Issuers shall
promptly make available to the Trustee a reasonable supply of Definitive
Securities in definitive, fully registered form without interest coupons.  In the event that such Definitive Securities
are not issued, the Issuers expressly acknowledge, with respect to the right of
any Holder to pursue a remedy pursuant to Section 6.06 of this Indenture,
the right of any beneficial owner of Securities to pursue such remedy with
respect to the portion of the Global Security that represents such beneficial
owner’s Securities as if such Definitive Securities had been issued. 

 

11

 

EXHIBIT A

to

RULE 144A/REGULATION S APPENDIX

 

[FORM OF FACE OF INITIAL
SECURITY]

 

[Global Securities 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
ISSUERS OR THEIR 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 SECURITY 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 SECURITY SHALL BE LIMITED TO TRANSFERS
MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO
ON THE REVERSE HEREOF.

 

[[FOR
REGULATION S GLOBAL SECURITY ONLY] UNTIL 40 DAYS AFTER THE LATER OF COMMENCEMENT
OR COMPLETION OF THE OFFERING, AN OFFER OR SALE OF SECURITIES WITHIN THE UNITED
STATES BY A DEALER (AS DEFINED IN THE SECURITIES ACT) MAY VIOLATE THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IF SUCH OFFER OR SALE IS MADE
OTHERWISE THAN IN ACCORDANCE WITH RULE 144A THEREUNDER.]

 

[Restricted Securities Legend for Securities]

 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE ‘‘SECURITIES ACT’’), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION.  NEITHER THIS SECURITY NOR
ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF,
AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR

 

 

ACCOUNT
FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER
SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”)
THAT IS [IN THE CASE OF RULE 144A NOTES: ONE YEAR (OR SUCH OTHER PERIOD THEN
REQUIRED UNDER RULE 144 OR ITS SUCCESSOR RULE)] [IN THE CASE OF REGULATION S
NOTES: 40 DAYS] AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST
DATE ON WHICH THE ISSUERS OR ANY AFFILIATE OF THE ISSUERS WAS THE OWNER OF THIS
SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE ISSUERS, (B) PURSUANT
TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO
RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A ‘‘QUALIFIED
INSTITUTIONAL BUYER’’ AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED
STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT
TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT TO THE ISSUERS’ AND THE TRUSTEE’S RIGHT PRIOR TO ANY
SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE
THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION
SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF
THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

 

[Definitive Securities Legend]

 

IN
CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND
TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY
REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

 

2

 

	
  No.

  	
   

  	
  $

  

 

10.75% Senior Notes due 2018

 

EnergySolutions, Inc., a Delaware corporation, and EnergySolutions, LLC, a Utah limited liability company, promise to
pay to                               ,
or registered assigns, the principal sum of                               Dollars
or such other amount as stated in the Schedule of Increases or Decreases in
Global Security on August 15, 2018.

 

Interest
Payment Dates:  February 15 and August 15.

 

Record
Dates:  February 1 and August 1.

 

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

 

3

 

Dated:

 

	
  ENERGYSOLUTIONS, INC.,

  
	
   

  
	
  By:

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  ENERGYSOLUTIONS,
  LLC,

  
	
   

  
	
  By:

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

4

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

	
  WELLS FARGO BANK,
  NATIONAL ASSOCIATION

  	
   

  
	
  as Trustee, certifies  

  that this is one of 

  the Securities referred 

  to in the Indenture. 

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  

 

5

 

[FORM OF REVERSE SIDE OF INITIAL SECURITY]

 

10.75% Senior Note due 2018

 

1.                                  Interest

 

EnergySolutions, Inc.,
a Delaware corporation, and EnergySolutions, LLC, a Utah
limited liability company (such corporation and company, and their successors
and assigns under the Indenture hereinafter referred to, being herein called
the “Issuers”), promise to pay interest on the principal amount of this
Security at the rate per annum shown above. 
The Holder of this Security is entitled to the benefits of a
Registration Rights Agreement, dated as of August 13, 2010, among the
Issuers, the Guarantors and the Initial Purchasers.  As more fully set forth therein, the
Registration Rights Agreement provides that the Issuers will pay additional
interest to each Holder under certain circumstances.  All accrued additional interest shall be paid
to Holders in the same manner as interest payments on the Securities on
semi-annual payment dates that correspond to interest payment dates for the
Securities.  All references in this
Security to interest shall be deemed to include any additional interest payable
pursuant to the Registration Rights Agreement. 
Within a reasonable amount of time following the occurrence of any event
giving rise to an obligation to pay additional interest, the Issuers will
provide notice to the Trustee.  The
Trustee shall have no responsibility with respect to the determination of the
amount of any such additional interest. 
The Issuers will pay interest semiannually on February 15 and August 15
of each year, commencing February 15, 2011.  Interest on the Securities will accrue from
the most recent date to which interest has been paid or, if no interest has
been paid, from August 13, 2010. 
Interest will be computed on the basis of a 360-day year of twelve
30-day months.  The Issuers will pay
interest on overdue principal at the rate borne by this Security plus 1.00% per
annum, and it will pay interest on overdue installments of interest at the same
rate to the extent lawful.

 

2.                                       Method of
Payment

 

The
Issuers will pay interest on the Securities (except defaulted interest) to the
Persons who are registered holders of Securities at the close of business on
the February 1 or August 1 next preceding the interest
payment date even if Securities are canceled after the record date and on or
before the interest payment date. 
Holders must surrender Securities to a Paying Agent to collect principal
payments.  The Issuers will pay principal
and interest in money of the United States that at the time of payment is legal
tender for payment of public and private debts. 
Payments in respect of the Securities represented by a Global Security
(including principal, premium and interest) will be made by wire transfer of
immediately available funds to the accounts specified by the Depository.  The Issuers will make all payments in respect
of a certificated Security (including principal, premium and interest) by mailing
a check to the registered address of each Holder thereof; provided, however,
that payments on a certificated Security will be made by wire transfer to a
U.S. dollar account maintained by the payee with a bank in the United States if
such Holder elects payment by wire transfer by giving written notice to the
Trustee or the Paying Agent to such effect designating such account no later
than 

 

6

 

30 days
immediately preceding the relevant due date for payment (or such other date as
the Trustee may accept in its discretion).

 

3.                                       Paying Agent
and Registrar

 

Initially,
Wells Fargo Bank, National Association (the “Trustee”), will act as Paying
Agent and Registrar.  The Issuers may
appoint and change any Paying Agent, Registrar or co-registrar without notice.  The Issuers or any of their domestically
incorporated Wholly Owned Subsidiaries may act as Paying Agent, Registrar or
co-registrar.

 

4.                                       Indenture

 

The
Issuers issued the Securities under an Indenture dated as of August 13,
2010 (“Indenture”),  among the Issuers, the Subsidiary Guarantors and the
Trustee.  The terms of the Securities
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)
(the “Act”).  Terms defined in the
Indenture and not defined herein have the meanings ascribed thereto in the
Indenture.  The Securities are subject to
all such terms, and Securityholders are referred to the Indenture and the Act
for a statement of those terms.

 

The
Securities are general  unsecured senior obligations of the
Issuers. 
The Issuers shall be
entitled, subject to its compliance with Section 4.03 of the Indenture, to
issue Additional Securities pursuant to Section 2.13 of the Indenture.  The Initial Securities issued on the Issue
Date, any Additional Securities
and all Exchange Securities issued in exchange therefor will be treated as a
single class for all purposes under the Indenture.  The Indenture contains covenants that limit
the ability of the Issuers and their subsidiaries to incur additional
indebtedness; pay dividends or distributions on, or redeem or repurchase
capital stock; make investments; issue or sell capital stock of subsidiaries;
engage in transactions with affiliates; create
liens on assets; transfer or sell assets; guarantee indebtedness;
restrict dividends or other payments of subsidiaries; consolidate, merge or
transfer all or substantially all of their assets and the assets of their
subsidiaries;  and engage in sale/leaseback transactions.  These covenants are subject to important
exceptions and qualifications.

 

5.                                       Optional
Redemption

 

Except
as set forth below, the Issuers shall not be entitled to redeem the Securities.

 

On
and after August 15, 2014, the Issuers shall be entitled at their option
to redeem all or a portion of the Securities upon not less than 30 nor more
than 60 days’ notice, at the redemption prices (expressed in percentages
of principal amount on the redemption date), plus accrued and unpaid interest
to the redemption date (subject to the right of Holders of record on the
relevant record date to receive interest due on the relevant interest payment
date), if redeemed during the 12-month period commencing on August 15 of
the years set forth below:

 

7

 

	
  Period

  	
   

  	
  Redemption

  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2014

  	
   

  	
  105.375

  	
  %

  
	
  2015

  	
   

  	
  102.688

  	
  %

  
	
  2016 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

Unless
the Issuers default in payment of the redemption price, interest will cease to
accrue on the Securities or portions thereof called for redemption on the
applicable redemption date.

 

In
addition, prior to August 15, 2013, the Issuers shall be entitled at their
option on one or more occasions to redeem Securities (which includes Additional Securities, if any) in an aggregate
principal amount not to exceed 35% of the aggregate principal amount  of the Securities (which includes Additional Securities, if any) originally issued
at a redemption price (expressed as a percentage of principal amount) of
110.75%, plus accrued and unpaid interest to the redemption date (subject to
the right of Holders of record on the relevant record date to receive interest
due on the relevant interest payment date), with the Net Cash Proceeds from one
or more Equity Offerings; provided, however, that (1) at
least 65% of such aggregate principal amount of Securities (which includes Additional Securities and
Exchange Securities, if any) remains outstanding immediately after the
occurrence of each such redemption (other than Securities held, directly or
indirectly, by the Issuers or Affiliates of the Issuers); and (2) each
such redemption occurs within 90 days after the date of the related Equity
Offering.

 

Prior
to August 15, 2014, the Issuers shall be entitled at their option to
redeem all or a portion of the Securities at a redemption price equal to 100%
of the principal amount of the Securities plus the Applicable Premium as of,
and accrued and unpaid interest to, the redemption date (subject to the right
of Holders on the relevant record date to receive interest due on the relevant
interest payment date).  The Issuers
shall cause notice of such redemption to be mailed by first-class mail to each
Holder’s registered address, not less than 30 nor more than 60 days
prior to the redemption date.

 

6.                                       Notice of
Redemption

 

The
Issuers shall cause notices of redemption to be mailed by first-class mail at
least 30 days but not more than 60 days before the redemption date to
each Holder of Securities to be redeemed at his registered address, except that
redemption notices may be mailed more than 60 days prior to the redemption
date if the notice is issued in connection with a defeasance of the Securities
or a satisfaction and discharge of the Indenture.  Any defect in the notice of redemption,
including a failure to give notice, to any Holder selected for redemption will
not impair or affect the validity of the redemption of any other Security
redeemed in accordance with provisions of the Indenture.  The Issuers will redeem Securities in denominations
of $2,000 or less in whole and not in part. 
If money sufficient to pay the redemption price of and accrued interest
on all Securities (or portions thereof) to be redeemed on the redemption date
is

 

8

 

deposited
with the Paying Agent by 1:00 P.M., New York City time, on the redemption
date and certain other conditions are satisfied, unless the Issuers default in
payment of the redemption price, on and after such date interest ceases to
accrue on such Securities (or such portions thereof) called for redemption.

 

7.                                       Put Provisions

 

Upon
a Change of Control, any Holder of Securities will have the right to cause the
Issuers to repurchase all or any part of the Securities of such Holder at a
repurchase price equal to 101% of the principal amount of the Securities to be
repurchased plus accrued and unpaid interest, if any, to the date of repurchase
(subject to the right of Holders of record on the relevant record date to
receive interest due on the related interest payment date) as provided in, and
subject to the terms of, the Indenture.

 

8.                                       Guarantee

 

The
payment by the Issuers of the principal of, and premium and interest on, the
Securities is fully and unconditionally guaranteed on a joint and several
senior unsecured basis by each of the Subsidiary
Guarantors to the extent set forth in the Indenture.

 

9.                                       Denominations;
Transfer; Exchange

 

The
Securities are in registered form without coupons in denominations of $2,000
principal amount and whole multiples of $1,000. 
A Holder may transfer or exchange Securities in accordance with the
Indenture.  The Registrar may require a
Holder, among other things, to furnish appropriate endorsements or transfer
documents and to pay any taxes and fees required by law or permitted by the
Indenture.  The Registrar need not
register the transfer of or exchange any Securities selected for redemption
(except, in the case of a Security to be redeemed in part, the portion of the
Security not to be redeemed) or any Securities for a period of 15 days
before a selection of Securities to be redeemed or 15 days before an
interest payment date.

 

10.                                 Persons Deemed
Owners

 

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

 

11.                                 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 Issuers at their
request unless an abandoned property law designates another Person.  After any such payment, Holders entitled to
the money must look only to the Issuers and not to the Trustee for payment.

 

9

 

12.                            Discharge and
Defeasance

 

Subject
to certain conditions, the Issuers at any time shall be entitled to terminate
some or all of the Issuers’ and Subsidiary Guarantors’ obligations under the
Securities, the Subsidiary Guarantees and the Indenture if the Issuers deposit
with the Trustee money or U.S. Government Obligations for the payment of
principal and interest on the Securities to redemption or maturity, as the case
may be.

 

13.                            Amendment;
Waiver

 

Subject
to certain exceptions set forth in the Indenture, (a) the Indenture and
the Securities may be amended with the written consent of the Holders of at
least a majority in principal amount outstanding of the Securities and
(b) any default or noncompliance with any provision may be waived with the
written consent of the Holders of a majority in principal amount outstanding of
the Securities.  Subject to certain
exceptions set forth in the Indenture, without the consent of any
Securityholder, the Issuers, the
Subsidiary Guarantors and the Trustee shall be entitled to amend the
Indenture or the Securities to cure any ambiguity, omission, defect or
inconsistency, or to comply with Article 5 of the Indenture, or to provide
for uncertificated Securities in addition to or in place of certificated
Securities, or to add Guarantees with respect to the Securities, including Subsidiary Guarantees, or
to secure the Securities, or to add additional covenants or surrender rights
and powers conferred on the Issuers or
the Subsidiary Guarantors, or to make any change that would provide
additional rights or benefits to the Securityholder or that does not adversely
affect the rights of any Securityholder, or to comply with any requirement of
the SEC in connection with qualifying the Indenture under the Act, or to make
amendments to provisions of the Indenture relating to the form, authentication,
transfer and legending of the Securities.

 

14.                            Defaults and
Remedies

 

Under
the Indenture and subject to the terms of the Indenture, Events of Default
include (a) default for 30 consecutive days in payment of interest on
the Securities when due; (b) default in payment of principal on the
Securities at maturity, upon redemption pursuant to paragraph 5 of the
Securities, upon acceleration or otherwise, or failure by the Issuers to redeem
or purchase Securities when required; (c) failure by the Issuers or any
Subsidiary Guarantor to comply with other agreements in the Indenture or the
Securities, in certain cases subject to notice and lapse of time;
(d) certain accelerations (including failure to pay within any grace
period after final maturity) of other Indebtedness of the Issuers if the amount
accelerated (or so unpaid) exceeds $25.0 million; (e) certain events
of bankruptcy or insolvency with respect to the Issuers and the Significant
Subsidiaries; (f) certain judgments or decrees for the payment of money in
excess of $25.0 million; and
(g) certain defaults with respect to Subsidiary Guarantees.  If an Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the Securities may declare all the Securities to be due and payable
immediately.  Certain events of
bankruptcy or insolvency are Events of Default which will result in the
Securities being due and payable immediately upon the occurrence of such Events
of Default.

 

10

 

Securityholders
may not enforce the Indenture or the Securities except as provided in the
Indenture.  The Trustee may refuse to
enforce the Indenture or the Securities unless it receives indemnity or
security satisfactory to it.  Subject to
certain limitations, Holders of a majority in principal amount of the
Securities may direct the Trustee in its exercise of any trust or power.  The Trustee may withhold from Securityholders
notice of any continuing Default (except a Default in payment of principal or
interest) if it determines that withholding notice is in the interest of the
Holders.

 

15.                            Trustee
Dealings with the Issuers

 

Subject
to certain limitations imposed by the Act, 
the Trustee under the Indenture, in its individual or any other
capacity, may become the owner or pledgee of Securities and may otherwise deal
with and collect obligations owed to it by the Issuers or their Affiliates and
may otherwise deal with the Issuers or their Affiliates with the same rights it
would have if it were not Trustee.

 

16.                            No Recourse
Against Others

 

A
director, officer, employee or stockholder, as such, of the Issuers or the
Trustee shall not have any liability for any obligations of the Issuers under
the Securities or the Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation. 
By accepting a Security, each Securityholder waives and releases all
such liability.  The waiver and release
are part of the consideration for the issue of the Securities.

 

17.                            Authentication

 

This
Security 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 Security.

 

18.                            Abbreviations

 

Customary
abbreviations may be used in the name of a Securityholder 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/G/M/A (=Uniform Gift to Minors Act).

 

19.                            CUSIP Numbers

 

Pursuant
to a recommendation promulgated by the Committee on Uniform Security
Identification Procedures, the Issuers have caused CUSIP numbers to be printed
on the Securities and have directed the Trustee to use CUSIP numbers in notices
of redemption as a convenience to Securityholders.  No representation is made as to the accuracy
of such numbers either as printed on the Securities or as contained in any
notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

 

11

 

20.                            Holders’
Compliance with Registration Rights Agreement

 

Each
Holder of a Security, by acceptance hereof, acknowledges and agrees to the
provisions of the Registration Rights Agreement, including the obligations of
the Holders with respect to a registration and the indemnification of the
Issuers to the extent provided therein.

 

21.                            Governing Law

 

THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK.

 

The
Issuers will furnish to any Securityholder upon written request and without
charge to the Securityholder a copy of the Indenture which has in it the text
of this Security in larger type. 
Requests may be made to:

 

EnergySolutions, Inc.

423
West Street South, Suite 200

Salt
Lake City, Utah 84101

 

Attention:  Corporate Secretary

 

12

 

 

ASSIGNMENT FORM

 

To
assign this Security, fill in the form below:

 

I
or we assign and transfer this Security 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 Security on the books of the Issuers.  The agent may substitute another to act for
him.

 

	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
					

 

Sign
exactly as your name appears on the other side of this Security.

 

In
connection with any transfer of any of the Securities evidenced by this
certificate occurring prior to the expiration of the period referred to in
Rule 144 under the Securities Act after the later of the date of
original issuance of such Securities and the last date, if any, on which such
Securities were owned by an Issuer or any Affiliate of an Issuer, the
undersigned confirms that such Securities are being transferred in accordance
with its terms:

 

CHECK
ONE BOX BELOW

 

	
  (1)

  	
  o

  	
  to
  an Issuer; or

  
	
   

  	
   

  	
   

  
	
  (2)

  	
  o

  	
  inside
  the United States to a “qualified institutional buyer” (as defined in
  Rule 144A under the Securities Act of 1933, as amended) that purchases
  for its own account or for the account of a qualified institutional buyer to
  whom notice is given that such transfer is being made in reliance on
  Rule 144A, in each case pursuant to and in compliance with
  Rule 144A under the Securities Act of 1933, as amended; or

  
	
   

  	
   

  	
   

  
	
  (3)

  	
  o

  	
  outside
  the United States in an offshore transaction within the meaning of Regulation
  S under the Securities Act in compliance with Rule 904 under the
  Securities Act of 1933, as amended; or

  

 

13

 

	
   

  	
   

  	
  pursuant
  to an effective registration statement under the Securities Act of 1933, as
  amended; or

  
	
   

  	
   

  	
   

  
	
  (4)

  	
  £

  	
  pursuant
  to the exemption from registration provided by Rule 144 under the
  Securities Act of 1933, as amended.

  

 

Unless
one of the boxes is checked, the Trustee will refuse to register any of the
Securities evidenced by this certificate in the name of any person other than
the registered holder thereof; provided, however, that if box (3) or
(4) is checked, the Trustee shall be entitled to require, prior to
registering any such transfer of the Securities, such legal opinions,
certifications and other information as the Issuers have reasonably requested
to confirm that such transfer is being made pursuant to an exemption from, or
in a transaction not subject to, the registration requirements of the
Securities Act of 1933, as amended, such as the exemption provided by
Rule 144 under such Act.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  
	
  Signature
  Guarantee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature
  must be guaranteed

  	
   

  	
  Signature

  

 

Signatures
must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program (“STAMP”) or
such other “signature guarantee program” as may be determined by the Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

 

 

14

 

TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED.

 

The
undersigned represents and warrants that it is purchasing this Security for its
own account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a “qualified institutional buyer”
within the meaning of Rule 144A under the Securities Act of 1933, as
amended, and is aware that the sale to it is being made in reliance on
Rule 144A and acknowledges that it has received such information regarding
the Issuers as the undersigned has requested pursuant to Rule 144A or has
determined not to request such information and that it is aware that the
transferor is relying upon the undersigned’s foregoing representations in order
to claim the exemption from registration provided by Rule 144A.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notice:

  	
  To be executed by 

  
	
   

  	
   

  	
   

  	
  an executive officer

  

 

15

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

 

The following increases or decreases in this Global Security have been
made:

 

	
  Date
  of

  Exchange

  	
   

  	
  Amount of decrease in

  Principal amount of this

  Global Security

  	
   

  	
  Amount of increase in

  Principal amount of this

  Global Security

  	
   

  	
  Principal amount  of
  this

  Global Security following

  such decrease or increase

  	
   

  	
  Signature of authorized

  officer of Trustee or

  Securities Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

16

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If
you want to elect to have this Security purchased by the Issuers pursuant to
Section 4.06 or 4.10 of the Indenture, check the box: o

 

If
you want to elect to have only part of this Security purchased by the Issuers
pursuant to Section 4.06 or
4.10 of the Indenture, state the
amount in principal amount:  $                            

 

	
  Dated:

  	
   

  	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears 

  
	
   

  	
   

  	
  on
  the other side of this Security.)

  
	
   

  
	
  Signature
  Guarantee:

  	
   

  
	
   

  	
  (Signature must be guaranteed)

  
							

 

Signatures must be guaranteed by an “eligible guarantor institution”
meeting the requirements of the Registrar, which requirements include
membership or participation in the Security Transfer Agent Medallion Program (“STAMP”)
or such other “signature guarantee program” as may be determined by the
Registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended.

 

17

 

EXHIBIT B

 

[FORM OF FACE OF EXCHANGE SECURITY]*

 

*/ [If the
Security is to be issued in global form, add the Global Securities Legend from Exhibit A
to Appendix A and the attachment from such Exhibit A captioned “[TO BE
ATTACHED TO GLOBAL SECURITIES] - SCHEDULE OF INCREASES OR DECREASES IN GLOBAL
SECURITY”.]

 

 

	
  No.

  	
   

  	
  $

  

 

10.75% Senior Notes due 2018

 

EnergySolutions, Inc., a Delaware corporation, and EnergySolutions, LLC, a Utah limited liability company, promise to
pay to                               ,
or registered assigns, the principal sum of                               Dollars
or such other amount as stated in the Schedule of Increases or Decreases in
Global Security on August 15, 2018.

 

Interest
Payment Dates:  February 15 and August 15.

 

Record
Dates:  February 1 and August 1.

 

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

 

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
  ENERGYSOLUTIONS,
  INC.,

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ENERGYSOLUTIONS,
  LLC,

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

3

 

	
  TRUSTEE’S
  CERTIFICATE OF AUTHENTICATION 

  	
   

  
	
   

  	
   

  
	
  WELLS FARGO BANK,
  NATIONAL ASSOCIATION

  	
   

  
	
  as Trustee, certifies 

  	
   

  
	
  that this is one of

  	
   

  
	
  the Securities referred

  	
   

  
	
  to in the Indenture.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  

 

4

 

[FORM OF REVERSE SIDE OF EXCHANGE SECURITY]

 

10.75% Senior Note due 2018

 

1.                                  Interest

 

EnergySolutions,
Inc., a Delaware corporation, and EnergySolutions, LLC, a Utah
limited liability company (such corporation and company, and their successors
and assigns under the Indenture hereinafter referred to, being herein called
the “Issuers”), promise to pay interest on the principal amount of this
Security at the rate per annum shown above. 
[As more fully set forth therein, the Registration Rights Agreement
provides that the Issuers will pay additional interest to each Holder under
certain circumstances.  All accrued
additional interest shall be paid to Holders in the same manner as interest
payments on the Securities on semi-annual payment dates that correspond to
interest payment dates for the Securities. 
All references in this Security to interest shall be deemed to include
any additional interest payable pursuant to the Registration Rights
Agreement.](1)  The Issuers will pay
interest semiannually on February 15 and August 15 of each year,
commencing February 15, 2011.  Interest
on the Securities will accrue from the most recent date to which interest has
been paid or, if no interest has been paid, from August 13, 2010.  Interest will be computed on the basis of a
360-day year of twelve 30-day months. 
The Issuers will pay interest on overdue principal at the rate borne by
this Security plus 1.00% per annum, and it will pay interest on overdue
installments of interest at the same rate to the extent lawful.

 

2.                                  Method of
Payment

 

The
Issuers will pay interest on the Securities (except defaulted interest) to the
Persons who are registered holders of Securities at the close of business on
the February 1 or August 1 next preceding the interest payment date
even if Securities are canceled after the record date and on or before the
interest payment date.  Holders must
surrender Securities to a Paying Agent to collect principal payments.  The Issuers will pay principal and interest
in money of the United States that at the time of payment is legal tender for
payment of public and private debts. 
Payments in respect of the Securities represented by a Global Security
(including principal, premium and interest) will be made by wire transfer of
immediately available funds to the accounts specified by the Depository.  The Issuers will make all payments in respect
of a certificated Security (including principal, premium and interest) by
mailing a check to the registered address of each Holder thereof; provided,
however, that payments on a certificated Security will be made by wire
transfer to a U.S. dollar account maintained by the payee with a bank in the
United States if such Holder elects payment by wire transfer by giving written
notice to the Trustee or the Paying Agent to such effect designating such
account no later than 30 days immediately preceding the relevant due date
for payment (or such other date as the Trustee may accept in its discretion).

 

(1)   To be included if additional interest is due
and payable pursuant to the Registration Rights Agreement.

 

5

 

3.                                  Paying Agent
and Registrar

 

Initially,
Wells Fargo Bank, National Association (the “Trustee”), will act as Paying
Agent and Registrar.  The Issuers may
appoint and change any Paying Agent, Registrar or co-registrar without
notice.  The Issuers or any of their
domestically incorporated Wholly Owned Subsidiaries may act as Paying Agent,
Registrar or co-registrar.

 

4.                                  Indenture

 

The
Issuers issued the Securities under an Indenture dated as of August 13, 2010 (“Indenture”),  among
the Issuers, the Subsidiary Guarantors
and the Trustee.  The terms of the
Securities 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) (the “Act”).  Terms
defined in the Indenture and not defined herein have the meanings ascribed
thereto in the Indenture.  The Securities
are subject to all such terms, and Securityholders are referred to the
Indenture and the Act for a statement of those terms.

 

The
Securities are general  unsecured senior obligations of the
Issuers. 
The Issuers shall be
entitled, subject to its compliance with Section 4.03 of the Indenture, to
issue Additional Securities pursuant to Section 2.13 of the Indenture.  The Initial Securities issued on the Issue
Date, any Additional Securities
and all Exchange Securities issued in exchange therefor will be treated as a
single class for all purposes under the Indenture.  The Indenture contains covenants that limit
the ability of the Issuers and their subsidiaries to incur additional
indebtedness; pay dividends or distributions on, or redeem or repurchase
capital stock; make investments; issue or sell capital stock of subsidiaries;
engage in transactions with affiliates; create
liens on assets; transfer or sell assets; guarantee indebtedness;
restrict dividends or other payments of subsidiaries; consolidate, merge or
transfer all or substantially all of their assets and the assets of their
subsidiaries;  and engage in sale/leaseback transactions.  These covenants are subject to important
exceptions and qualifications.

 

5.                                  Optional
Redemption

 

Except
as set forth below, the Issuers shall not be entitled to redeem the Securities.

 

On
and after August 15, 2014, the Issuers shall be entitled at their option to
redeem all or a portion of the Securities upon not less than 30 nor more than
60 days’ notice, at the redemption prices (expressed in percentages of
principal amount on the redemption date), plus accrued and unpaid interest to
the redemption date (subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date), if
redeemed during the 12-month period commencing on August 15 of the years set
forth below:

 

6

 

	
  Period

  	
   

  	
  Redemption

  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2014

  	
   

  	
  105.375

  	
  %

  
	
  2015

  	
   

  	
  102.688

  	
  %

  
	
  2016 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

Unless
the Issuers default in payment of the redemption price, interest will cease to
accrue on the Securities or portions thereof called for redemption on the
applicable redemption date.

 

In
addition, prior to August 15, 2013, the Issuers shall be entitled at their
option on one or more occasions to redeem Securities (which includes Additional Securities, if any) in an aggregate
principal amount not to exceed 35% of the aggregate principal amount  of the Securities (which includes Additional Securities, if any) originally issued
at a redemption price (expressed as a percentage of principal amount) of
110.75%, plus accrued and unpaid interest to the redemption date(subject to the
right of Holders of record on the relevant record date to receive interest due
on the relevant interest payment date), with the Net Cash Proceeds from one or
more Equity Offerings; provided, however, that (1) at least
65% of such aggregate principal amount of Securities (which includes Additional Securities and Exchange Securities, if any)
remains outstanding immediately after the occurrence of each such redemption
(other than Securities held, directly or indirectly, by the Issuers or
Affiliates of the Issuers); and (2) each such redemption occurs within
90 days after the date of the related Equity Offering.

 

Prior
to August 15, 2014, the Issuers shall be entitled at their option to redeem all
or a portion of the Securities at a redemption price equal to 100% of the
principal amount of the Securities plus the Applicable Premium as of, and
accrued and unpaid interest to, the redemption date (subject to the right of
Holders on the relevant record date to receive interest due on the relevant
interest payment date).  The Issuers
shall cause notice of such redemption to be mailed by first-class mail to each
Holder’s registered address, not less than 30 nor more than 60 days
prior to the redemption date.

 

6.                                  Notice of
Redemption

 

The
Issuers shall cause notices of redemption to be mailed by first-class mail at
least 30 days but not more than 60 days before the redemption date to
each Holder of Securities to be redeemed at his registered address, except that
redemption notices may be mailed more than 60 days prior to the redemption
date if the notice is issued in connection with a defeasance of the Securities
or a satisfaction and discharge of the Indenture.  Any defect in the notice of redemption,
including a failure to give notice, to any Holder selected for redemption will
not impair or affect the validity of the redemption of any other Security
redeemed in accordance with provisions of the Indenture.  The Issuers will redeem Securities in
denominations of $2,000 or less in whole and not in part.  If money sufficient to pay the redemption
price of and accrued interest on all Securities (or portions thereof) to be
redeemed on the redemption date is

 

7

 

deposited
with the Paying Agent by 1:00 P.M., New York City time, on the redemption date
and certain other conditions are satisfied, unless the Issuers default in
payment of the redemption price, on and after such date interest ceases to
accrue on such Securities (or such portions thereof) called for redemption.

 

7.                                  Put Provisions

 

Upon
a Change of Control, any Holder of Securities will have the right to cause the
Issuers to repurchase all or any part of the Securities of such Holder at a
repurchase price equal to 101% of the principal amount of the Securities to be
repurchased plus accrued and unpaid interest, if any, to the date of repurchase
(subject to the right of Holders of record on the relevant record date to
receive interest due on the related interest payment date) as provided in, and
subject to the terms of, the Indenture.

 

8.                                  Guarantee

 

The
payment by the Issuers of the principal of, and premium and interest on, the
Securities is fully and unconditionally guaranteed on a joint and several
senior unsecured basis by each of the Subsidiary
Guarantors to the extent set forth in the Indenture.

 

9.                                  Denominations;
Transfer; Exchange

 

The
Securities are in registered form without coupons in denominations of $2,000
principal amount and whole multiples of $1,000. 
A Holder may transfer or exchange Securities in accordance with the
Indenture.  The Registrar may require a
Holder, among other things, to furnish appropriate endorsements or transfer
documents and to pay any taxes and fees required by law or permitted by the
Indenture.  The Registrar need not
register the transfer of or exchange any Securities selected for redemption
(except, in the case of a Security to be redeemed in part, the portion of the
Security not to be redeemed) or any Securities for a period of 15 days
before a selection of Securities to be redeemed or 15 days before an
interest payment date.

 

10.                            Persons Deemed
Owners

 

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

 

11.                            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 Issuers at their
request unless an abandoned property law designates another Person.  After any such payment, Holders entitled to
the money must look only to the Issuers and not to the Trustee for payment.

 

8

 

12.                            Discharge and
Defeasance

 

Subject
to certain conditions, the Issuers at any time shall be entitled to terminate
some or all of the Issuers’ and Subsidiary Guarantors’ obligations under the
Securities, the Subsidiary Guarantees and the Indenture if the Issuers deposit
with the Trustee money or U.S. Government Obligations for the payment of
principal and interest on the Securities to redemption or maturity, as the case
may be.

 

13.                            Amendment;
Waiver

 

Subject
to certain exceptions set forth in the Indenture, (a) the Indenture  and the Securities may be amended with the
written consent of the Holders of at least a majority in principal amount
outstanding of the Securities and (b) any default or noncompliance with
any provision may be waived with the written consent of the Holders of a
majority in principal amount outstanding of the Securities.  Subject to certain exceptions set forth in
the Indenture, without the consent of any Securityholder, the Issuers, the Subsidiary Guarantors and the
Trustee shall be entitled to amend the Indenture  or the Securities to cure any ambiguity,
omission, defect or inconsistency, or to comply with Article 5 of the
Indenture, or to provide for uncertificated Securities in addition to or in
place of certificated Securities, or to add Guarantees with respect to the
Securities, including Subsidiary
Guarantees, or to secure the Securities, or to add additional covenants
or surrender rights and powers conferred on the Issuers or the Subsidiary Guarantors, or to make any change that would
provide additional rights or benefits to the Securityholder or that does not
adversely affect the rights of any Securityholder, or to comply with any
requirement of the SEC in connection with qualifying the Indenture under the
Act, or to make amendments to provisions of the Indenture relating to the form,
authentication, transfer and legending of the Securities.

 

14.                            Defaults and
Remedies

 

Under
the Indenture and subject to the terms of the Indenture, Events of Default
include (a) default for 30 consecutive days in payment of interest on
the Securities when due; (b) default in payment of principal on the
Securities at maturity, upon redemption pursuant to paragraph 5 of the
Securities, upon acceleration or otherwise, or failure by the Issuers to redeem
or purchase Securities when required; (c) failure by the Issuers or any
Subsidiary Guarantor to comply with other agreements in the Indenture or the Securities,
in certain cases subject to notice and lapse of time; (d) certain
accelerations (including failure to pay within any grace period after final
maturity) of other Indebtedness of the Issuers if the amount accelerated (or so
unpaid) exceeds $25.0 million; (e) certain events of bankruptcy or
insolvency with respect to the Issuers and the Significant Subsidiaries;
(f) certain judgments or decrees for the payment of money in excess of
$25.0 million; and
(g) certain defaults with respect to Subsidiary Guarantees.  If an Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the Securities may declare all the Securities to be due and payable
immediately.  Certain events of
bankruptcy or insolvency are Events of Default which will result in the
Securities being due and payable immediately upon the occurrence of such Events
of Default.

 

9

 

Securityholders
may not enforce the Indenture or the Securities except as provided in the
Indenture.  The Trustee may refuse to
enforce the Indenture or the Securities unless it receives indemnity or
security satisfactory to it.  Subject to
certain limitations, Holders of a majority in principal amount of the
Securities may direct the Trustee in its exercise of any trust or power.  The Trustee may withhold from Securityholders
notice of any continuing Default (except a Default in payment of principal or
interest) if it determines that withholding notice is in the interest of the
Holders.

 

15.                            Trustee
Dealings with the Issuers

 

Subject
to certain limitations imposed by the Act, 
the Trustee under the Indenture, in its individual or any other
capacity, may become the owner or pledgee of Securities and may otherwise deal
with and collect obligations owed to it by the Issuers or their Affiliates and
may otherwise deal with the Issuers or their Affiliates with the same rights it
would have if it were not Trustee.

 

16.                            No Recourse
Against Others

 

A
director, officer, employee or stockholder, as such, of the Issuers or the
Trustee shall not have any liability for any obligations of the Issuers under
the Securities or the Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation. 
By accepting a Security, each Securityholder waives and releases all
such liability.  The waiver and release
are part of the consideration for the issue of the Securities.

 

17.                            Authentication

 

This
Security 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 Security.

 

18.                            Abbreviations

 

Customary
abbreviations may be used in the name of a Securityholder 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/G/M/A (=Uniform Gift to Minors Act).

 

19.                            CUSIP Numbers

 

Pursuant
to a recommendation promulgated by the Committee on Uniform Security
Identification Procedures, the Issuers have caused CUSIP numbers to be printed
on the Securities and have directed the Trustee to use CUSIP numbers in notices
of redemption as a convenience to Securityholders.  No representation is made as to the accuracy
of such numbers either as printed on the Securities or as contained in any
notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

 

10

 

20.                            Governing Law

 

THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK.

 

The Issuers will furnish to any Securityholder upon
written request and without charge to the Securityholder a copy of the Indenture
which has in it the text of this Security in larger type.  Requests may be made to:

 

EnergySolutions, Inc.

423
West Street South, Suite 200

Salt
Lake City, Utah 84101

 

Attention:  Corporate Secretary

 

11

 

 

 

ASSIGNMENT FORM

 

To
assign this Security, fill in the form below:

 

I
or we assign and transfer this Security 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 Security on the books of the Issuers.  The agent may substitute another to act for
him.

 

	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
					

 

Sign exactly as your name appears on the other side of this Security.

 

12

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If
you want to elect to have this Security purchased by the Issuers pursuant to
Section 4.06 or 4.10 of the Indenture, check the
box:  £

 

If
you want to elect to have only part of this Security purchased by the Issuers
pursuant to Section 4.06 or
4.10 of the Indenture, state the
amount in principal amount:  $           

 

	
  Dated:

  	
   

  	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears 

  
	
   

  	
   

  	
  on
  the other side of this Security.)

  
	
   

  
	
  Signature
  Guarantee:

  	
   

  
	
   

  	
  (Signature must be guaranteed)

  
							

 

Signatures
must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program (“STAMP”) or
such other “signature guarantee program” as may be determined by the Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.Exhibit 4.2

 

REGISTRATION RIGHTS AGREEMENT

 

This
REGISTRATION RIGHTS AGREEMENT dated August 13, 2010 (the “Agreement”) is
entered into by and among EnergySolutions, Inc.,
a Delaware corporation (the “Company”), EnergySolutions,
LLC, a limited liability company organized under the laws of Utah (the “Co-Issuer”
and, together with the Company, the “Issuers”), the guarantors  listed in Schedule 1 hereto (the “Guarantors”), and J.P.
Morgan Securities Inc. (“J.P. Morgan”), as representative of the several
initial purchasers listed in Schedule 1 to the Purchase Agreement (as defined
below) (collectively, the “Initial Purchasers”).

 

The
Issuers, the Guarantors and the Initial Purchasers are parties to the Purchase
Agreement dated August 5, 2010 (the “Purchase Agreement”), which provides
for the sale by the Issuers to the Initial Purchasers of $300,000,000 aggregate
principal amount of the Issuers’ 10.75% Senior Notes due 2018 (the “Securities”)
which will be guaranteed on an unsecured senior basis by each of the Guarantors.  As an inducement to the Initial Purchasers to
enter into the Purchase Agreement, the Issuers and the Guarantors have agreed
to provide to the Initial Purchasers and their direct and indirect transferees
the registration rights set forth in this Agreement.  The execution and delivery of this Agreement
is a condition to the closing under the Purchase Agreement.

 

In
consideration of the foregoing, the parties hereto agree as follows:

 

1.                                       Definitions.  As used in this Agreement, the following
terms shall have the following meanings:

 

“Additional Guarantor” shall mean any subsidiary of the
Company that executes a Subsidiary Guarantee under the Indenture after the date
of this Agreement.

 

“Business Day” shall mean any day that is not a
Saturday, Sunday or other day on which commercial banks in New York City are
authorized or required by law to remain closed.

 

“Company”
shall have the meaning set forth in the preamble and shall also include the
Company’s successors.

 

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

 

“Exchange
Dates” shall have the meaning set forth in Section 2(a)(ii) hereof.

 

“Exchange
Offer” shall mean the exchange offer by the Issuers and the Guarantors of
Exchange Securities for Registrable Securities pursuant to Section 2(a) hereof.

 

“Exchange
Offer Registration” shall mean a registration under the Securities Act effected
pursuant to Section 2(a) hereof.

 

 

“Exchange
Offer Registration Statement” shall mean an exchange offer registration statement
on Form S-4 (or, if applicable, on another appropriate form) and all
amendments and supplements to such registration statement, in each case
including the Prospectus contained therein or deemed a part thereof, all
exhibits thereto and any document incorporated by reference therein.

 

“Exchange
Securities” shall mean senior notes issued by the Issuers and guaranteed by the
Guarantors under the Indenture containing terms identical to the Securities
(except that the Exchange Securities will not be subject to restrictions on
transfer or to any increase in annual interest rate for failure to comply with
this Agreement) and to be offered to Holders of Registrable Securities in
exchange for Registrable Securities pursuant to the Exchange Offer.

 

“FINRA”
shall mean the Financial Industry Regulatory Authority, Inc.

 

“Free
Writing Prospectus” means each free writing prospectus (as defined in Rule 405
under the Securities Act) prepared by or on behalf of the Issuers or used or
referred to by the Issuers in connection with the sale of the Securities or the
Exchange Securities.

 

“Guarantors”
shall have the meaning set forth in the preamble and shall also include any
Guarantor’s successors and any Additional Guarantors.

 

“Holders”
shall mean the Initial Purchasers, for so long as they own any Registrable
Securities, and each of their successors, assigns and direct and indirect
transferees who become owners of Registrable Securities under the Indenture; provided
that for purposes of Sections 4 and 5 of this Agreement, the term “Holders”
shall include Participating Broker-Dealers.

 

“Indemnified
Person” shall have the meaning set forth in Section 5(c) hereof.

 

“Indemnifying
Person” shall have the meaning set forth in Section 5(c) hereof.

 

“Indenture”
shall mean the Indenture relating to the Securities dated as of the Issue Date
among the Issuers, the Guarantors and Wells Fargo Bank, National Association,
as trustee, and as the same may be amended from time to time in accordance with
the terms thereof.

 

“Initial
Purchasers” shall have the meaning set forth in the preamble.

 

“Inspector”
shall have the meaning set forth in Section 3(a)(xiii) hereof.

 

“Issue
Date” shall mean the date on which the Securities are initially issued.

 

“Issuer
Information” shall have the meaning set forth in Section 5(a) hereof.

 

“Issuers”
shall have the meaning set forth in the preamble and shall also include the
successors to any Issuer.

 

2

 

“J.P.
Morgan” shall have the meaning set forth in the preamble.

 

“Majority
Holders” shall mean the Holders of a majority of the aggregate principal amount
of the outstanding Registrable Securities; provided that whenever the
consent or approval of Holders of a specified percentage of Registrable
Securities is required hereunder, any Registrable Securities owned directly or
indirectly by the Issuers or any of their affiliates shall not be counted in
determining whether such consent or approval was given by the Holders of such
required percentage or amount; and provided, further, that if the
Issuers shall issue any additional Securities under the Indenture prior to
consummation of the Exchange Offer or, if applicable, the effectiveness of any
Shelf Registration Statement, such additional Securities and the Registrable Securities
to which this Agreement relates shall be treated together as one class for
purposes of determining whether the consent or approval of Holders of a
specified percentage of Registrable Securities has been obtained.

 

“Participating
Broker-Dealers” shall have the meaning set forth in Section 4(a) hereof.

 

“Person”
shall mean an individual, partnership, limited liability company, corporation,
trust or unincorporated organization, or a government or agency or political
subdivision thereof.

 

“Prospectus”
shall mean the prospectus included in, or, pursuant to the rules and
regulations of the Securities Act, deemed a part of, a Registration Statement,
including any preliminary prospectus, and any such prospectus as amended or
supplemented by any prospectus supplement, including a prospectus supplement
with respect to the terms of the offering of any portion of the Registrable
Securities covered by a Shelf Registration Statement, and by all other
amendments and supplements to such prospectus, and in each case including any
document incorporated by reference therein.

 

“Purchase
Agreement” shall have the meaning set forth in the preamble.

 

“Registrable
Securities” shall mean the Securities; provided that the Securities
shall cease to be Registrable Securities on the earliest to occur of (i) when
a Registration Statement with respect to such Securities has become effective
under the Securities Act and such Securities have been exchanged or disposed of
pursuant to such Registration Statement, (ii) when such Securities are
sold pursuant to Rule 144 under the Securities Act or (iii) when such
Securities cease to be outstanding.

 

“Registration
Expenses” shall mean any and all expenses incident to performance of or
compliance by the Issuers and the Guarantors with this Agreement, including
without limitation: (i) all SEC, stock exchange or FINRA registration and
filing fees, (ii) all fees and expenses incurred in connection with
compliance with state securities or blue sky laws (including reasonable fees
and disbursements of counsel for any Underwriters or Holders in connection with
blue sky qualification of any Exchange Securities or Registrable Securities), (iii) all
expenses of any Persons in preparing or assisting in preparing, word
processing, printing and distributing any Registration Statement, any 

 

3

 

Prospectus
and any amendments or supplements thereto, any underwriting agreements,
securities sales agreements or other similar agreements and any other documents
relating to the performance of and compliance with this Agreement, (iv) all
rating agency fees, (v) all fees and disbursements relating to the
qualification of the Indenture under applicable securities laws, (vi) the
fees and disbursements of the Trustee and its counsel, (vii) the fees and
disbursements of counsel for the Issuers and the Guarantors and, in the case of
a Shelf Registration Statement, the fees and disbursements of one counsel for
the Holders (which counsel shall be selected by the Majority Holders and which
counsel may also be counsel for the Initial Purchasers) and (viii) the
fees and disbursements of the independent public accounting firm of the Issuers
and the Guarantors, including the expenses of any special audits or “comfort”
letters required by or incident to the performance of and compliance with this
Agreement, but excluding fees and expenses of counsel to the Underwriters
(other than fees and expenses set forth in clause (ii) above) or the
Holders and underwriting discounts and commissions, brokerage commissions and
transfer taxes, if any, relating to the sale or disposition of Registrable
Securities by a Holder.

 

“Registration
Statement” shall mean any registration statement of the Issuers and the
Guarantors that covers any of the Exchange Securities or Registrable Securities
pursuant to the provisions of this Agreement and all amendments and supplements
to any such registration statement, including post-effective amendments, in
each case including the Prospectus contained therein or deemed a part thereof,
all exhibits thereto and any document incorporated by reference therein.

 

“SEC”
shall mean the United States Securities and Exchange Commission.

 

“Securities”
shall have the meaning set forth in the preamble.

 

“Securities
Act” shall mean the Securities Act of 1933, as amended from time to time.

 

“Shelf
Additional Interest Date” shall have the meaning set forth in Section 2(d) hereof.

 

“Shelf
Effectiveness Period” shall have the meaning set forth in Section 2(b) hereof.

 

“Shelf
Registration” shall mean a registration effected pursuant to Section 2(b) hereof.

 

“Shelf
Registration Statement” shall mean a “shelf” registration statement of the
Issuers and the Guarantors that covers all or a portion of the Registrable
Securities (but no other securities unless approved by a majority of the
Holders whose Registrable Securities are to be covered by such Shelf
Registration Statement) on an appropriate form under Rule 415 under the
Securities Act, or any similar rule that may be adopted by the SEC, and all
amendments and supplements to such registration statement, including
post-effective amendments, in each case including the Prospectus contained
therein or deemed a part thereof, all exhibits thereto and any document
incorporated by reference therein.

 

4

 

“Shelf
Request” shall have the meaning set forth in Section 2(b) hereof.

 

“Subsidiary
Guarantees” shall mean the guarantees of the Securities and Exchange Securities
by the Guarantors under the Indenture.

 

“Staff”
shall mean the staff of the SEC.

 

“Target
Registration Date” shall have the meaning set forth in Section 2(d) hereof.

 

“Trust
Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time
to time.

 

“Trustee”
shall mean the trustee with respect to the Securities under the Indenture.

 

“Underwriter”
shall have the meaning set forth in Section 3(e) hereof.

 

“Underwritten
Offering” shall mean an offering in which Registrable Securities are sold to an
Underwriter for reoffering to the public.

 

2.                                       Registration Under the Securities Act.  (a)  To the extent not prohibited by any
applicable law or applicable interpretations of the Staff, the Issuers and the
Guarantors shall use their commercially reasonable efforts to (i) cause to
be filed an Exchange Offer Registration Statement covering an offer to the
Holders to exchange all the Registrable Securities for Exchange Securities and (ii) have
such Exchange Offer Registration Statement remain effective until 180 days
after the last Exchange Date for use by one or more Participating
Broker-Dealers.  The Issuers and the
Guarantors shall commence the Exchange Offer promptly after the Exchange Offer
Registration Statement is declared effective by the SEC and use their
commercially reasonable efforts to complete the Exchange Offer not later than
60 days after such effective date.

 

The
Issuers and the Guarantors shall commence the Exchange Offer by mailing the
related Prospectus, appropriate letters of transmittal and other accompanying
documents to each Holder stating, in addition to such other disclosures as are
required by applicable law, substantially the following:

 

(i)                                     that the Exchange Offer is being made pursuant to this Agreement and that
all Registrable Securities validly tendered and not properly withdrawn will be
accepted for exchange;

 

(ii)                                  the dates of acceptance for exchange (which shall be a period of at least
20 Business Days from the date such notice is mailed) (the “Exchange Dates”);

 

(iii)                               that any Registrable Security not tendered will remain outstanding and
continue to accrue interest but will not retain any rights under this
Agreement, except as otherwise specified herein;

 

5

 

(iv)                              that any Holder electing to have a Registrable Security exchanged
pursuant to the Exchange Offer will be required to (A) surrender such
Registrable Security, together with the appropriate letters of transmittal, to
the institution and at the address (located in the Borough of Manhattan, The
City of New York) and in the manner specified in the notice, or (B) effect
such exchange otherwise in compliance with the applicable procedures of the
depositary for such Registrable Security, in each case prior to the close of
business on the last Exchange Date; and

 

(v)                                 that any Holder will be entitled to withdraw its election, not later than
the close of business on the last Exchange Date, by (A) sending to the
institution and at the address (located in the Borough of Manhattan, The City
of New York) specified in the notice, a telegram, telex, facsimile transmission
or letter setting forth the name of such Holder, the principal amount of
Registrable Securities delivered for exchange and a statement that such Holder
is withdrawing its election to have such Securities exchanged or (B) effecting
such withdrawal in compliance with the applicable procedures of the depositary
for the Registrable Securities.

 

As a condition to participating in the Exchange Offer, a
Holder will be required to represent to the Issuers and the Guarantors that (i) any
Exchange Securities to be received by it will be acquired in the ordinary
course of its business, (ii) at the time of the commencement of the
Exchange Offer it has no arrangement or understanding with any Person to
participate in the distribution (within the meaning of the Securities Act) of
the Exchange Securities in violation of the provisions of the Securities Act, (iii) it
is not an “affiliate” (within the meaning of Rule 405 under the Securities
Act) of any Issuer or any Guarantor and (iv) if such Holder is a
broker-dealer that will receive Exchange Securities for its own account in
exchange for Registrable Securities that were acquired as a result of
market-making or other trading activities, then such Holder will deliver a
Prospectus (or, to the extent permitted by law, make available a Prospectus to
purchasers) in connection with any resale of such Exchange Securities.

 

As
soon as practicable after the last Exchange Date, the Issuers and the
Guarantors shall:

 

(i)                                     accept for exchange Registrable Securities or portions thereof validly
tendered and not properly withdrawn pursuant to the Exchange Offer; and

 

(ii)                                  deliver, or cause to be delivered, to the Trustee for cancellation all
Registrable Securities or portions thereof so accepted for exchange by the
Issuers and issue, and cause the Trustee to promptly authenticate and deliver
to each Holder, Exchange Securities equal in principal amount to the principal
amount of the Registrable Securities tendered by such Holder.

 

The
Issuers and the Guarantors shall use their commercially reasonable efforts to
complete the Exchange Offer as provided above and shall comply with the
applicable requirements of the Securities Act, the Exchange Act and other
applicable laws and regulations in connection with the Exchange Offer.  The Exchange Offer shall not be 

 

6

 

subject
to any conditions, other than that the Exchange Offer does not violate any
applicable law or applicable interpretations of the Staff.

 

(b)                                 In the event that (i) the Issuers and the
Guarantors determine that the Exchange Offer Registration provided for in Section 2(a) above
is not available or may not be completed as soon as practicable after the last
Exchange Date because it would violate any applicable law or applicable
interpretations of the Staff, (ii) the Exchange Offer is not for any other
reason completed by the date that is 180 days after the date hereof or (iii) upon
receipt of a written request (a “Shelf Request”) from any Initial Purchaser
representing that it holds Registrable Securities that are or were ineligible
to be exchanged in the Exchange Offer, the Issuers and the Guarantors shall use
their commercially reasonable efforts to cause to be filed as soon as
practicable after such determination, date or Shelf Request, as the case may
be, a Shelf Registration Statement providing for the sale of all the
Registrable Securities by the Holders thereof and to have such Shelf
Registration Statement become effective.

 

In
the event that the Issuers and the Guarantors are required to file a Shelf
Registration Statement pursuant to clause (iii) of the preceding sentence,
the Issuers and the Guarantors shall use their commercially reasonable efforts
to file and have become effective both an Exchange Offer Registration Statement
pursuant to Section 2(a) with respect to all Registrable Securities
and a Shelf Registration Statement (which may be a combined Registration
Statement with the Exchange Offer Registration Statement) with respect to offers
and sales of Registrable Securities held by the Initial Purchasers after
completion of the Exchange Offer.

 

The
Issuers and the Guarantors agree to use their commercially reasonable efforts
to keep the Shelf Registration Statement continuously effective until the date
that is one year after the Issue Date or such shorter period that will
terminate when all the Registrable Securities covered by the Shelf Registration
Statement cease to be outstanding (the “Shelf Effectiveness Period”).  The Issuers and the Guarantors further agree
to supplement or amend the Shelf Registration Statement and the related
Prospectus if required by the rules, regulations or instructions applicable to
the registration form used by the Issuers and the Guarantors for such Shelf
Registration Statement, by the Securities Act or any other rules and
regulations thereunder or, if reasonably requested, by a Holder of Registrable
Securities with respect to information relating to such Holder, and to use
their commercially reasonable efforts to cause any such supplement or amendment
to become effective, if required, and such Shelf Registration Statement and
Prospectus to become usable as soon as thereafter practicable.  The Issuers and the Guarantors agree to
furnish to the Holders of Registrable Securities (or file on EDGAR) copies of
any such supplement or amendment promptly after its being used or filed with
the SEC.

 

(c)                                  The Issuers and the Guarantors shall pay all
Registration Expenses in connection with any registration pursuant to Section 2(a) or
Section 2(b) hereof.  Each
Holder shall pay all underwriting discounts and commissions, brokerage
commissions and transfer taxes, if any, relating to the sale or disposition of
such Holder’s Registrable Securities pursuant to the Shelf Registration
Statement.

 

7

 

(d)                                 An Exchange Offer Registration Statement
pursuant to Section 2(a) hereof will not be deemed to have become
effective unless it has been declared effective by the SEC.  A Shelf Registration Statement pursuant to Section 2(b) hereof
will not be deemed to have become effective unless it has been declared
effective by the SEC or is automatically effective upon filing with the SEC as
provided by Rule 462 under the Securities Act.

 

In
the event that either the Exchange Offer is not completed or the Shelf
Registration Statement, if required pursuant to Section 2(b)(i) or
2(b)(ii) hereof, has not become effective on or prior to the date that is
180 days after the date hereof (the “Target Registration Date”), the interest
rate on the Registrable Securities will be increased by (i) 0.25% per
annum for the first 90-day period immediately following the Target Registration
Date and (ii) an additional 0.25% per annum with respect to each
subsequent 90-day period, in each case until the Exchange Offer is completed or
the Shelf Registration Statement, if required hereby, becomes effective or the
Securities cease to be Registrable Securities, up to a maximum increase of
1.00% per annum.  In the event that the
Issuers receive a Shelf Request pursuant to Section 2(b)(iii), and the
Shelf Registration Statement required to be filed thereby has not become
effective by the later of the date that is 150 days after the date hereof or (y) 90
days after delivery of such Shelf Request (such later date, the “Shelf
Additional Interest Date”), then the interest rate on the Registrable
Securities will be increased by (i) 0.25% per annum for the first 90-day
period commencing from one day after the Shelf Additional Interest Date and (ii) an
additional 0.25% per annum with respect to each subsequent 90-day period, in
each case until the Shelf Registration Statement becomes effective or the
Securities cease to be Registrable Securities, up to a maximum increase of
1.00% per annum.

 

If
the Shelf Registration Statement, if required hereby, has become effective and
thereafter either ceases to be effective or the Prospectus contained therein
ceases to be usable, in each case whether or not permitted by this Agreement,
at any time during the Shelf Effectiveness Period, and such failure to remain
effective or usable exists for more than 30 days (whether or not consecutive)
in any 12-month period, then the interest rate on the Registrable Securities
will be increased by 0.25% per annum for the first 90-day period commencing on
the 31st day in such 12-month period, and will increase
by an additional 0.25% per annum with respect to each subsequent 90-day period,
and ending on the date that the Shelf Registration Statement has again been
declared effective or the Prospectus again becomes usable, up to a maximum of
1.00% per annum.

 

Each
such event resulting in an increase in the interest rate pursuant to either of
the two preceding paragraphs shall be referred to as a “Registration Default.”

 

(e)                                  Without limiting the remedies available to the
Initial Purchasers and the Holders, the Issuers and the Guarantors acknowledge
that any failure by the Issuers or the Guarantors to comply with their
obligations under Section 2(a) and Section 2(b) hereof may
result in material irreparable injury to the Initial Purchasers or the Holders
for which there is no adequate remedy at law, that it will not be possible to
measure damages for such injuries precisely and that, in the event of any such
failure, the Initial Purchasers or 

 

8

 

any
Holder may obtain such relief as may be required to specifically enforce the
Issuers’ and the Guarantors’ obligations under Section 2(a) and Section 2(b) hereof.

 

(f)                                    The Issuers and the Guarantors represent,
warrant and covenant that they (including their agents and representatives)
will not prepare, make, use, authorize, approve or refer to any Free Writing
Prospectus.

 

3.                                       Registration Procedures.  (a) In connection with their obligations
pursuant to Section 2(a) and Section 2(b) hereof, the
Issuers and the Guarantors shall as expeditiously as reasonably possible:

 

(i)                                     prepare and file with the SEC a Registration Statement on the appropriate
form under the Securities Act, which form (x) shall be selected by the
Issuers and the Guarantors, (y) shall, in the case of a Shelf
Registration, be available for the sale of the Registrable Securities by the
Holders thereof and (z) shall comply as to form in all material respects
with the requirements of the applicable form and include all financial
statements required by the SEC to be filed therewith; and use their
commercially reasonable efforts to cause such Registration Statement to become
effective and remain effective for the applicable period in accordance with Section 2
hereof;

 

(ii)                                  prepare and file with the SEC such amendments and post-effective
amendments to each Registration Statement as may be necessary to keep such
Registration Statement effective for the applicable period in accordance with Section 2
hereof and cause each Prospectus to be supplemented by any required prospectus
supplement and, as so supplemented, to be filed pursuant to Rule 424 under
the Securities Act; and keep each Prospectus current during the period described
in Section 4(3) of and Rule 174 under the Securities Act that is
applicable to transactions by brokers or dealers with respect to the
Registrable Securities or Exchange Securities;

 

(iii)                               in the case of a Shelf Registration, furnish to each Holder of
Registrable Securities, to counsel for the Initial Purchasers, to counsel for
such Holders and to each Underwriter of an Underwritten Offering of Registrable
Securities, if any, without charge, upon request, as many copies of each
Prospectus or preliminary prospectus, and any amendment or supplement thereto,
as such Holder, counsel or Underwriter may reasonably request in order to
facilitate the sale or other disposition of the Registrable Securities
thereunder; and the Issuers and the Guarantors consent to the use of such
Prospectus, preliminary prospectus and any amendment or supplement thereto in
accordance with applicable law by each of the Holders of Registrable Securities
and any such Underwriters in connection with the offering and sale of the Registrable
Securities covered by and in the manner described in such Prospectus,
preliminary prospectus or any amendment or supplement thereto in accordance
with applicable law;

 

9

 

(iv)                              use their commercially reasonable efforts to register or qualify the
Registrable Securities under all applicable state securities or blue sky laws
of such jurisdictions as any Holder of Registrable Securities covered by a
Registration Statement shall reasonably request in writing by the time the
applicable Registration Statement becomes effective; cooperate with such
Holders in connection with any filings required to be made with FINRA; and do
any and all other acts and things that may be reasonably necessary or advisable
to enable each Holder to complete the disposition in each such jurisdiction of
the Registrable Securities owned by such Holder; provided that none of
the Issuers or any Guarantor shall be required to (1) qualify as a foreign
corporation or other entity or as a dealer in securities in any such
jurisdiction where it would not otherwise be required to so qualify, (2) file
any general consent to service of process in any such jurisdiction or (3) subject
itself to taxation in any such jurisdiction if it is not so subject;

 

(v)                                 notify counsel for the Initial Purchasers and, in the case of a Shelf
Registration, notify each Holder of Registrable Securities and counsel for such
Holders promptly (1) when a Registration Statement has become effective,
when any post-effective amendment thereto has been filed and becomes effective
and when any amendment or supplement to the Prospectus has been filed, (2) of
any request by the SEC or any state securities authority for amendments and
supplements to a Registration Statement or Prospectus or for additional
information after the Registration Statement has become effective, (3) of
the issuance by the SEC or any state securities authority of any stop order
suspending the effectiveness of a Registration Statement or the initiation of
any proceedings for that purpose, including the receipt by the Issuers of any
notice of objection of the SEC to the use of a Shelf Registration Statement or
any post-effective amendment thereto pursuant to Rule 401(g)(2) under
the Securities Act, (4) if, between the applicable effective date of a
Shelf Registration Statement and the closing of any sale of Registrable
Securities covered thereby, any representation and warranty of any Issuer or
any Guarantor contained in any underwriting agreement, securities sales
agreement or other similar agreement, if any, relating to an offering of such
Registrable Securities ceases to be true and correct in all material respects
or if any Issuer or any Guarantor receives any notification with respect to the
suspension of the qualification of the Registrable Securities for sale in any
jurisdiction or the initiation of any proceeding for such purpose, (5) of
the happening of any event during the period a Registration Statement is
effective that makes any statement made in such Registration Statement or the
related Prospectus untrue in any material respect or that requires the making
of any changes in such Registration Statement or Prospectus in order to make
the statements therein not misleading and (6) of any determination by any
Issuer or any Guarantor that a post-effective amendment to a Registration
Statement or any amendment or supplement to the Prospectus would be
appropriate;

 

(vi)                              use their commercially reasonable efforts to obtain the withdrawal of any
order suspending the effectiveness of a Registration Statement or, in the case
of a Shelf Registration, the resolution of any objection of the SEC pursuant

 

10

 

to Rule 401(g)(2),
including by filing an amendment to such Shelf Registration Statement on the
proper form, as soon as practicable and provide prompt notice to each Holder of
the withdrawal of any such order or such resolution;

 

(vii)                           in the case of a Shelf Registration, furnish to each Holder of
Registrable Securities, without charge, at least one conformed copy of each
Registration Statement and any post-effective amendment thereto (without any
documents incorporated therein by reference or exhibits thereto, unless
requested);

 

(viii)                        in the case of a Shelf Registration, cooperate with the Holders of
Registrable Securities to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be sold and not bearing any
restrictive legends and enable such Registrable Securities to be issued in such
denominations and registered in such names (consistent with the provisions of
the Indenture) as such Holders may reasonably request at least one Business Day
prior to the closing of any sale of Registrable Securities;

 

(ix)                                in the case of a Shelf Registration, upon the occurrence of any event
contemplated by Section 3(a)(v)(5) hereof, use their commercially
reasonable efforts to prepare and file with the SEC a supplement or post-effective
amendment to such Shelf Registration Statement or the related Prospectus or any
document incorporated therein by reference or file any other required document
so that, as thereafter delivered (or, to the extent permitted by law, made
available) to purchasers of the Registrable Securities, such Shelf Registration
Statement or Prospectus will not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading;
and the Issuers and the Guarantors shall notify the Holders of Registrable
Securities to suspend use of the Shelf Registration Statement or Prospectus as
promptly as practicable after the occurrence of such an event, and such Holders
hereby agree to suspend use of the Shelf Registration Statement or Prospectus
until the Issuers and the Guarantors have amended or supplemented the Shelf
Registration Statement or Prospectus to correct such misstatement or omission;

 

(x)                                   a reasonable time prior to the filing of any Registration Statement, any
Prospectus, any amendment to a Registration Statement or amendment or
supplement to a Prospectus or of any document that is to be incorporated by
reference into a Registration Statement or a Prospectus after initial filing of
a Registration Statement, provide copies of such document to the Initial
Purchasers and their counsel (and, in the case of a Shelf Registration
Statement, to the Holders of Registrable Securities and their counsel) and make
such of the representatives of the Issuers and the Guarantors as shall be
reasonably requested by the Initial Purchasers or their counsel (and, in the
case of a Shelf Registration Statement, the Holders of Registrable Securities
or their counsel) available for discussion of such document; and the Issuers
and the Guarantors shall not, at any time after the initial filing of a
Registration Statement, use or file any Prospectus, 

 

11

 

any amendment of or
supplement to a Registration Statement or a Prospectus, or any document that is
to be incorporated by reference into a Registration Statement or a Prospectus,
of which the Initial Purchasers and their counsel (and, in the case of a Shelf
Registration Statement, the Holders of Registrable Securities and their
counsel) shall not have previously been advised and furnished a copy or to
which the Initial Purchasers or their counsel (and, in the case of a Shelf
Registration Statement, the Holders of Registrable Securities or their counsel)
shall object in a reasonably timely manner;

 

(xi)                                obtain a CUSIP number for all Exchange Securities or Registrable
Securities, as the case may be, not later than the initial effective date of a
Registration Statement;

 

(xii)                             cause the Indenture to be qualified under the Trust Indenture Act in
connection with the registration of the Exchange Securities or Registrable
Securities, as the case may be; cooperate with the Trustee and the Holders to
effect such changes to the Indenture as may be required for the Indenture to be
so qualified in accordance with the terms of the Trust Indenture Act; and
execute, and use their commercially reasonable efforts to cause the Trustee to
execute, all documents as may be required to effect such changes and all other
forms and documents required to be filed with the SEC to enable the Indenture
to be so qualified in a timely manner;

 

(xiii)                          in the case of a Shelf Registration, make available for inspection by a
representative of the Holders of the Registrable Securities (an “Inspector”),
any Underwriter participating in any disposition pursuant to such Shelf
Registration, any attorneys and accountants designated by a majority of the
Holders of Registrable Securities to be included in such Shelf Registration and
any attorneys and accountants designated by such Underwriter, at reasonable
times and in a reasonable manner, all pertinent financial and other records,
documents and properties of the Issuers and their subsidiaries, and cause the respective
officers, directors and employees of the Issuers and the Guarantors to supply
all information reasonably requested by any such Inspector, Underwriter,
attorney or accountant in connection with a Shelf Registration Statement; provided that if any such information is identified by any Issuer or any
Guarantor as being confidential or proprietary, each Person receiving such
information shall take such actions as are reasonably necessary to protect the
confidentiality of such information to the extent such action is otherwise not
inconsistent with, an impairment of or in derogation of the rights and
interests of any Inspector, Holder or Underwriter;

 

(xiv)                         in the case of a Shelf Registration, use their commercially reasonable
efforts to cause all Registrable Securities to be listed on any securities
exchange or any automated quotation system on which similar securities issued
or guaranteed by any Issuer or any Guarantor are then listed if requested by
the Majority Holders, to the extent such Registrable Securities satisfy
applicable listing requirements;

 

12

 

(xv)                            if reasonably requested by any Holder of Registrable Securities covered
by a Shelf Registration Statement, promptly include in a Prospectus supplement
or post-effective amendment such information with respect to such Holder as
such Holder reasonably requests to be included therein and make all required
filings of such Prospectus supplement or such post-effective amendment as soon
as reasonably practicable after the Issuers have received notification of the
matters to be so included in such filing;

 

(xvi)                         in the case of a Shelf Registration, enter into such customary agreements
and take all such other actions in connection therewith (including those requested
by the Holders of a majority in principal amount of the Registrable Securities
covered by the Shelf Registration Statement) in order to expedite or facilitate
the disposition of such Registrable Securities including, but not limited to,
an Underwritten Offering and in such connection, (1) to the extent
possible, make such representations and warranties to the Holders and any
Underwriters of such Registrable Securities with respect to the business of the
Company and its subsidiaries and the Registration Statement, Prospectus and
documents incorporated by reference or deemed incorporated by reference, if
any, in each case, in form, substance and scope as are customarily made by
issuers to underwriters in underwritten offerings and confirm the same if and
when requested, (2) obtain opinions of counsel to the Issuers and the
Guarantors (which counsel and opinions, in form, scope and substance similar to
that provided in the Purchase Agreement, as modified for a registered offering,
shall be reasonably satisfactory to the Holders and such Underwriters and their
respective counsel) addressed to each selling Holder and Underwriter of
Registrable Securities, covering the matters customarily covered in opinions
requested in underwritten offerings, (3) obtain “comfort” letters from the
independent certified public accounting firm of the Issuers and the Guarantors
(and, if necessary, any other certified public accounting firm of any
subsidiary of any Issuer or any Guarantor, or of any business acquired by any
Issuer or any Guarantor for which financial statements and financial data are
or are required to be included in the Registration Statement) addressed to each
selling Holder (to the extent permitted by applicable professional standards)
and Underwriter of Registrable Securities, such letters to be in customary form
and covering matters of the type customarily covered in “comfort” letters in
connection with underwritten offerings, including but not limited to financial
information contained in any preliminary prospectus or Prospectus and (4) deliver
such documents and certificates as may be reasonably requested by the Holders
of a majority in principal amount of the Registrable Securities being sold or
the Underwriters, and which are customarily delivered in underwritten
offerings, to evidence the continued validity of the representations and
warranties of the Issuers and the Guarantors made pursuant to clause (1) above
and to evidence compliance with any customary conditions contained in an
underwriting agreement; and

 

(xvii)                      so long as any Registrable Securities remain outstanding, cause each
Additional Guarantor upon the creation or acquisition by any Issuer of such
Additional Guarantor, to execute a counterpart to this Agreement in the form 

 

13

 

attached hereto as
Annex A and to deliver such counterpart, together with an opinion of counsel as
to the enforceability thereof against such entity, to the Initial Purchasers no
later than five Business Days following the execution thereof.

 

(b)                                 In the case of a Shelf Registration Statement,
the Issuers may require each Holder of Registrable Securities to furnish to the
Issuers such information regarding such Holder and the proposed disposition by
such Holder of such Registrable Securities as the Issuers and the Guarantors
may from time to time reasonably request in writing.

 

(c)                                  In the case of a Shelf Registration Statement,
each Holder of Registrable Securities covered in such Shelf Registration
Statement agrees that, upon receipt of any notice from the Issuers and the
Guarantors of the happening of any event of the kind described in Section 3(a)(v)(3) or
3(a)(v)(5) hereof, such Holder will forthwith discontinue disposition of
Registrable Securities pursuant to the Shelf Registration Statement or use of
the Prospectus until such Holder’s receipt of the copies of the supplemented or
amended Prospectus contemplated by Section 3(a)(ix) hereof and, if so
directed by the Issuers and the Guarantors, such Holder will deliver to the
Issuers and the Guarantors all copies in its possession, other than permanent
file copies then in such Holder’s possession, of the Prospectus covering such
Registrable Securities that is current at the time of receipt of such notice.

 

(d)                                 If the Issuers and the Guarantors shall give
any notice to suspend the disposition of Registrable Securities pursuant to a
Registration Statement, the Issuers and the Guarantors shall extend the period
during which such Registration Statement shall be maintained effective pursuant
to this Agreement by the number of days during the period from and including
the date of the giving of such notice to and including the date when the
Holders of such Registrable Securities shall have received copies of the
supplemented or amended Prospectus necessary to resume such dispositions. The
Issuers and the Guarantors may give any such notice only twice during any
365-day period and any such suspensions shall not exceed 30 days for each
suspension and there shall not be more than two suspensions in effect during
any 365-day period.

 

(e)                                  The Holders of Registrable Securities covered
by a Shelf Registration Statement who desire to do so may sell such Registrable
Securities in an Underwritten Offering. 
In any such Underwritten Offering, the investment bank or investment
banks and manager or managers (each an “Underwriter”) that will administer the
offering will be selected by the Holders of a majority in principal amount of
the Registrable Securities included in such offering.

 

14

 

4.                                       Participation of Broker-Dealers in Exchange Offer.  (a)  The Staff has taken
the position that any broker-dealer that receives Exchange Securities for its
own account in the Exchange Offer in exchange for Securities that were acquired
by such broker-dealer as a result of market-making or other trading activities
(a “Participating Broker-Dealer”) may be deemed to be an “underwriter” within
the meaning of the Securities Act and must deliver a prospectus  meeting the requirements of the
Securities Act in connection with any resale of such Exchange Securities.

 

The
Issuers and the Guarantors understand that it is the Staff’s position that if
the Prospectus contained in the Exchange Offer Registration Statement includes
a plan of distribution containing a statement to the above effect and the means
by which Participating Broker-Dealers may resell the Exchange Securities,
without naming the Participating Broker-Dealers or specifying the amount of
Exchange Securities owned by them, such Prospectus may be delivered by
Participating Broker-Dealers (or, to the
extent permitted by law, made available to purchasers) to satisfy their
prospectus delivery obligation under the Securities Act in connection with
resales of Exchange Securities for their own accounts, so long as the
Prospectus otherwise meets the requirements of the Securities Act.

 

(b)                                 In light of the above, and notwithstanding the
other provisions of this Agreement, the Issuers and the Guarantors agree to
amend or supplement the Prospectus contained in the Exchange Offer Registration
Statement for a period of up to 180 days after the last Exchange Date (as such
period may be extended pursuant to Section 3(d) of this Agreement),
in order to expedite or facilitate the disposition of any Exchange Securities
by Participating Broker-Dealers consistent with the positions of the Staff
recited in Section 4(a) above. 
The Issuers and the Guarantors further agree that Participating
Broker-Dealers shall be authorized to deliver such Prospectus (or, to the
extent permitted by law, make available) during such period in connection with
the resales contemplated by this Section 4.

 

(c)                                  The Initial Purchasers shall have no liability
to any Issuer, any Guarantor or any Holder with respect to any request that
they may make pursuant to Section 4(b) above.

 

5.                                       Indemnification
and Contribution.  (a) 
Each Issuer and each Guarantor, jointly and severally, agree to indemnify and
hold harmless each Initial Purchaser and each Holder, their respective affiliates,
directors and officers and each Person, if any, who controls any Initial
Purchaser or any Holder within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act, from and against any and all
losses, claims, damages and liabilities (including, without limitation, legal
fees and other expenses incurred in connection with any suit, action or
proceeding or any claim asserted, as such fees and expenses are incurred),
joint or several, that arise out of, or are based upon, (1) any untrue
statement or alleged untrue statement of a material fact contained in any
Registration Statement or any omission or alleged omission to state therein a
material fact required to be stated therein or necessary in order to make the
statements therein not misleading, or (2) any untrue statement or alleged
untrue statement of a material fact contained in any Prospectus, any Free
Writing Prospectus used in violation of this 

 

15

 

Agreement
or any “issuer information” (“Issuer Information”) filed or required to be
filed pursuant to Rule 433(d) under the Securities Act, or any
omission or alleged omission to state therein a material fact necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading, in each case except insofar as such
losses, claims, damages or liabilities arise out of, or are based upon, any
untrue statement or omission or alleged untrue statement or omission made in
reliance upon and in conformity with any information relating to any Initial
Purchaser or information relating to any Holder furnished to the Issuers in
writing through J.P. Morgan or any selling Holder, respectively, expressly for
use therein.  In connection with any
Underwritten Offering permitted by Section 3, the Issuers and the
Guarantors, jointly and severally, will also indemnify the Underwriters, if
any, selling brokers, dealers and similar securities industry professionals
participating in the distribution, their respective affiliates and each Person
who controls such Persons (within the meaning of the Securities Act and the
Exchange Act) to the same extent as provided above with respect to the
indemnification of the Holders, if requested in connection with any
Registration Statement, any Prospectus, any Free Writing Prospectus or any
Issuer Information.

 

(b)                                 Each Holder agrees, severally and not jointly,
to indemnify and hold harmless the Issuers, the Guarantors, the Initial
Purchasers and the other selling Holders, the directors of the Issuers and the
Guarantors, each officer of the Issuers and the Guarantors who signed the
Registration Statement and each Person, if any, who controls the Issuers, the
Guarantors, any Initial Purchaser and any other selling Holder within the
meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act to the same extent as the indemnity set forth in paragraph (a) above,
but only with respect to any losses, claims, damages or liabilities that arise
out of, or are based upon, any untrue statement or omission or alleged untrue
statement or omission made in reliance upon and in conformity with any
information relating to such Holder furnished to the Issuers in writing by such
Holder expressly for use in any Registration Statement and any Prospectus.

 

(c)                                  If any suit,
action, proceeding (including any governmental or regulatory investigation),
claim or demand shall be brought or asserted against any Person in respect of
which indemnification may be sought pursuant to either paragraph (a) or (b) above,
such Person (the “Indemnified Person”) shall promptly notify the Person against
whom such indemnification may be sought (the “Indemnifying Person”) in writing;
provided that the failure to notify the Indemnifying Person shall not
relieve it from any liability that it may have under paragraph (a) or (b) above
except to the extent that it has been materially prejudiced (through the
forfeiture of substantive rights or defenses) by such failure; and provided,
further, that the failure to notify the Indemnifying Person shall not
relieve it from any liability that it may have to an Indemnified Person
otherwise than under paragraph (a) or (b) above.  If any such proceeding shall be brought or
asserted against an Indemnified Person and it shall have notified the
Indemnifying Person thereof, the Indemnifying Person shall retain counsel
reasonably satisfactory to the Indemnified Person to represent the Indemnified
Person and any others entitled to indemnification pursuant to this Section 5
that the Indemnifying Person may designate in such proceeding and shall pay the
fees and expenses of such proceeding and shall pay the fees and expenses of
such counsel related to such proceeding, as incurred.  In any such proceeding, any Indemnified
Person shall 

 

16

 

have
the right to retain its own counsel, but the fees and expenses of such counsel
shall be at the expense of such Indemnified Person unless (i) the
Indemnifying Person and the Indemnified Person shall have mutually agreed to
the contrary; (ii) the Indemnifying Person has failed within a reasonable
time to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the
Indemnified Person shall have reasonably concluded that there may be legal
defenses available to it that are different from or in addition to those
available to the Indemnifying Person; or (iv) the named parties in any
such proceeding (including any impleaded parties) include both the Indemnifying
Person and the Indemnified Person and representation of both parties by the
same counsel would be inappropriate due to actual or potential differing
interests between them.  It is understood
and agreed that the Indemnifying Person shall not, in connection with any
proceeding or related proceeding in the same jurisdiction, be liable for the
fees and expenses of more than one separate firm (in addition to any local
counsel) for all Indemnified Persons, and that all such fees and expenses shall
be reimbursed as they are incurred.  Any
such separate firm (x) for any Initial Purchaser, its affiliates,
directors and officers and any control Persons of such Initial Purchaser shall
be designated in writing by J.P. Morgan, (y) for any Holder, its directors
and officers and any control Persons of such Holder shall be designated in
writing by the Majority Holders and (z) in all other cases shall be
designated in writing by the Issuers. 
The Indemnifying Person shall not be liable for any settlement of any
proceeding effected without its written consent, but if settled with such
consent or if there be a final judgment for the plaintiff, the Indemnifying
Person agrees to indemnify each Indemnified Person from and against any loss or
liability by reason of such settlement or judgment.  Notwithstanding the foregoing sentence, if at
any time an Indemnified Person shall have requested that an Indemnifying Person
reimburse the Indemnified Person for fees and expenses of counsel as
contemplated by this paragraph, the Indemnifying Person shall be liable for any
settlement of any proceeding effected without its written consent if (i) such
settlement is entered into more than 30 days after receipt by the Indemnifying
Person of such request and (ii) the Indemnifying Person shall not have
reimbursed the Indemnified Person in accordance with such request prior to the
date of such settlement.  No Indemnifying
Person shall, without the written consent of the Indemnified Person, effect any
settlement of any pending or threatened proceeding in respect of which any
Indemnified Person is or could have been a party and indemnification could have
been sought hereunder by such Indemnified Person, unless such settlement (A) includes
an unconditional release of such Indemnified Person, in form and substance
reasonably satisfactory to such Indemnified Person, from all liability on
claims that are the subject matter of such proceeding and (B) does not
include any statement as to or any admission of fault, culpability or a failure
to act by or on behalf of any Indemnified Person.

 

(d)                                 If the
indemnification provided for in paragraphs (a) and (b) above is
unavailable to an Indemnified Person or insufficient in respect of any losses,
claims, damages or liabilities referred to therein, then each Indemnifying
Person under such paragraph, in lieu of indemnifying such Indemnified Person
thereunder, shall contribute to the amount paid or payable by such Indemnified
Person as a result of such losses, claims, damages or liabilities (i) in
such proportion as is appropriate to reflect the relative benefits received by
the Issuers and the Guarantors from the offering of the Securities and the
Exchange Securities, on the one hand, and by the Holders from receiving
Securities or 

 

17

 

Exchange
Securities registered under the Securities Act, on the other hand, or (ii) if
the allocation provided by clause (i) is not permitted by applicable law,
in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) but also the relative fault of the Issuers and
the Guarantors, on the one hand, and the Holders, on the other hand, in
connection with the statements or omissions that resulted in such losses,
claims, damages or liabilities, as well as any other relevant equitable
considerations.  The relative fault of
the Issuers and the Guarantors, on the one hand, and the Holders, on the other
hand, shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
the Issuers and the Guarantors or by the Holders and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

 

(e)                                  The Issuers,
the Guarantors and the Holders agree that it would not be just and equitable if
contribution pursuant to this Section 5 were determined by pro  rata
allocation (even if the Holders were treated as one entity for such purpose) or
by any other method of allocation that does not take account of the equitable
considerations referred to in paragraph (d) above.  The amount paid or payable by an Indemnified
Person as a result of the losses, claims, damages and liabilities referred to
in paragraph (d) above shall be deemed to include, subject to the
limitations set forth above, any legal or other expenses incurred by such
Indemnified Person in connection with any such action or claim.  Notwithstanding the provisions of this Section 5,
in no event shall a Holder be required to contribute any amount in excess of
the amount by which the total price at which the Securities or Exchange
Securities sold by such Holder exceeds the amount of any damages that such
Holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission.  No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation. 
The Holders’ obligations to contribute pursuant to this Section 5
are several and not joint.

 

(f)                                    The remedies
provided for in this Section 5 are not exclusive and shall not limit any
rights or remedies that may otherwise be available to any Indemnified Person at
law or in equity.

 

(g)                                 The indemnity
and contribution provisions contained in this Section 5 shall remain
operative and in full force and effect regardless of (i) any termination
of this Agreement, (ii) any investigation made by or on behalf of the
Initial Purchasers or any Holder or any Person controlling any Initial
Purchaser or any Holder, or by or on behalf of the Issuers or the Guarantors or
the officers or directors of or any Person controlling the Issuers or the
Guarantors, (iii) acceptance of any of the Exchange Securities and (iv) any
sale of Registrable Securities pursuant to a Shelf Registration Statement.

 

6.                                       General.

 

(a)                                  No Inconsistent Agreements.   The
Issuers and the Guarantors represent, warrant and agree that (i) the
rights granted to the Holders hereunder do not in any way 

 

18

 

conflict
with and are not inconsistent with the rights granted to the holders of any
other outstanding securities issued or guaranteed by any Issuer or any
Guarantor under any other agreement and (ii) none of the Issuers or any
Guarantor has entered into, or on or after the date of this Agreement will
enter into, any agreement that is inconsistent with the rights granted to the
Holders of Registrable Securities in this Agreement or otherwise conflicts with
the provisions hereof.

 

(b)                                 Amendments and Waivers.   The
provisions of this Agreement, including the provisions of this sentence, may not
be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given unless the Issuers and the
Guarantors have obtained the written consent of Holders of at least a majority
in aggregate principal amount of the outstanding Registrable Securities
affected by such amendment, modification, supplement, waiver or consent; provided
that no amendment, modification, supplement, waiver or consent to any departure
from the provisions of Section 5 hereof shall be effective as against any
Holder of Registrable Securities unless consented to in writing by such
Holder.  Any amendments, modifications,
supplements, waivers or consents pursuant to this Section 6(b) shall
be by a writing executed by each of the parties hereto.

 

(c)                                  Notices.  All notices
and other communications provided for or permitted hereunder shall be made in
writing by hand-delivery, registered first-class mail, telex, telecopier, or
any courier guaranteeing overnight delivery (i) if to a Holder, at the
most current address given by such Holder to the Company by means of a notice
given in accordance with the provisions of this Section 6(c), which
address initially is, with respect to the Initial Purchasers, the address set
forth in the Purchase Agreement; (ii) if to the Issuers and the
Guarantors, initially at the Issuers’ address set forth in the Purchase
Agreement and thereafter at such other address, notice of which is given in
accordance with the provisions of this Section 6(c); and (iii) to
such other persons at their respective addresses as provided in the Purchase
Agreement and thereafter at such other address, notice of which is given in
accordance with the provisions of this Section 6(c).  All such notices and communications shall be
deemed to have been duly given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when answered back, if telexed; when receipt is
acknowledged, if telecopied; and on the next Business Day if timely delivered
to an air courier guaranteeing overnight delivery.  Copies of all such notices, demands or other
communications shall be concurrently delivered by the Person giving the same to
the Trustee, at the address specified in the Indenture.

 

(d)                                 Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the
successors, assigns and transferees of each of the parties hereto, including,
without limitation and without the need for an express assignment, subsequent
Holders; provided that nothing herein shall be deemed to permit any
assignment, transfer or other disposition of Registrable Securities in
violation of the terms of the Purchase Agreement or the Indenture.  If any transferee of any Holder shall acquire
Registrable Securities in any manner, whether by operation of law or otherwise,
such Registrable Securities shall be held subject to all the terms of this
Agreement, and by taking and holding such Registrable Securities such Person
shall be conclusively deemed to have 

 

19

 

agreed
to be bound by and to perform all of the terms and provisions of this Agreement
and such Person shall be entitled to receive the benefits hereof.  The Initial Purchasers (in their capacity as
Initial Purchasers) shall have no liability or obligation to the Issuers or the
Guarantors with respect to any failure by any Holder to comply with, or any
breach by any Holder of, any of the obligations of such Holder under this
Agreement.

 

(e)                                  Third Party Beneficiaries.  Each
Holder shall be a third party beneficiary to the agreements made hereunder
between the Issuers and the Guarantors, on the one hand, and the Initial
Purchasers, on the other hand, and shall have the right to enforce such agreements
directly to the extent it deems such enforcement necessary or advisable to
protect its rights or the rights of other Holders hereunder.

 

(f)                                    Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

 

(g)                                 Headings.  The headings in this Agreement are for
convenience of reference only, are not a part of this Agreement and shall not
limit or otherwise affect the meaning hereof.

 

(h)                                 Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York.

 

(i)                                     Entire Agreement; Severability.  This Agreement contains the entire agreement
between the parties hereto relating to the subject matter hereof and supersedes
all oral statements and prior writings with respect thereto.  If any term, provision, covenant or
restriction contained in this Agreement is held by a court of competent
jurisdiction to be invalid, void or unenforceable or against public policy, the
remainder of the terms, provisions, covenants and restrictions contained herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated.  The Issuers, the
Guarantors and the Initial Purchasers shall endeavor in good faith negotiations
to replace the invalid, void or unenforceable provisions with valid provisions
the economic effect of which comes as close as possible to that of the
invalid, void or unenforceable provisions.

 

[Signature pages follow]

 

20

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first written above.

 

	
   

  	
  ENERGYSOLUTIONS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ENERGYSOLUTIONS,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Executive
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BNG AMERICA, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BNG AMERICA SAVANNAH RIVER CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CHEM-NUCLEAR SYSTEMS L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
					

 

[Signature Page to Registration Rights
Agreement]

 

21

 

	
   

  	
  DURATEK SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DURATEK, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ENERGYSOLUTION
  COMPANY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ENERGYSOLUTIONS DIVERSIFIED SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ENERGYSOLUTIONS FEDERAL EPC, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
					

 

[Signature Page to Registration Rights
Agreement]

 

22

 

	
   

  	
  ENERGYSOLUTIONS FEDERAL SERVICES OF HANFORD, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ENERGYSOLUTIONS FEDERAL SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ENERGYSOLUTIONS FUEL SERVICES, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ENERGYSOLUTIONS WATER SYSTEM, LLC  

   

  by EnergySolutions,
  LLC, its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ENERGYSOLUTIONS,
  SPENT FUEL DIVISION, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
					

 

[Signature Page to Registration Rights
Agreement]

 

23

 

	
   

  	
  GTSD SUB IV, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HITTMAN TRANSPORT SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MANUFACTURING SCIENCES CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ENERGYSOLUTIONS PERFORMANCE STRATEGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PROPERTY VALUE RESTORATION, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
					

 

[Signature Page to Registration Rights
Agreement]

 

24

 

	
   

  	
  ENERGYSOLUTIONS OF
  OHIO, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ENERGYSOLUTIONS MIDWEST, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mark C. McBride

  
	
   

  	
   

  	
  Name:
  

  	
  Mark
  C. McBride

  
	
   

  	
   

  	
  Title:
  

  	
  Chief
  Financial Officer

  
					

 

[Signature Page to Registration Rights
Agreement]

 

25

 

Confirmed
and accepted as of the date first above written:

 

J.P.
MORGAN SECURITIES INC.

 

For
itself and on behalf of the

several
Initial Purchasers

 

 

	
  By:

  	
   

  	
  /s/
  Jack D. Smith

  	
   

  
	
   

  	
  Name:

  	
  Jack
  D. Smith

  	
   

  
	
   

  	
  Title:

  	
  Executive
  Director

  	
   

  

 

[Signature Page to Registration Rights
Agreement]

 

26

 

Schedule 1

 

Guarantors

 

	
  Guarantor

  	
   

  	
  Jurisdiction of

  Organization

  
	
  BNG
  America, LLC

  	
   

  	
  Delaware

  
	
  BNG
  America Savannah River Corporation

  	
   

  	
  Delaware

  
	
  Chem-Nuclear
  Systems L.L.C.

  	
   

  	
  Delaware

  
	
  Duratek
  Services, Inc.

  	
   

  	
  Tennessee

  
	
  Duratek, Inc.

  	
   

  	
  Delaware

  
	
  EnergySolution Company, Inc.

  	
   

  	
  Delaware

  
	
  EnergySolutions
  Diversified Services, Inc.

  	
   

  	
  Delaware

  
	
  EnergySolutions
  Federal EPC, Inc.

  	
   

  	
  Delaware

  
	
  EnergySolutions
  Federal Services of Hanford, Inc.

  	
   

  	
  Delaware

  
	
  EnergySolutions
  Federal Services, Inc.

  	
   

  	
  Delaware

  
	
  EnergySolutions
  Fuel Services, LLC

  	
   

  	
  Delaware

  
	
  EnergySolutions
  Water System, LLC

  	
   

  	
  Utah

  
	
  EnergySolutions, Spent Fuel Division, Inc.

  	
   

  	
  Delaware

  
	
  GTSD
  Sub IV, Inc.

  	
   

  	
  Delaware

  
	
  Hittman
  Transport Services, Inc.

  	
   

  	
  Delaware

  
	
  Manufacturing
  Sciences Corporation

  	
   

  	
  Colorado

  
	
  EnergySolutions
  Performance Strategies, Inc.

  	
   

  	
  Georgia

  
	
  Property
  Value Restoration, LLC

  	
   

  	
  Delaware

  
	
  EnergySolutions of Ohio, LLC

  	
   

  	
  Delaware

  
	
  EnergySolutions
  Midwest, LLC

  	
   

  	
  Delaware

  

 

27

 

Annex A

 

Counterpart to Registration Rights Agreement

 

The
undersigned hereby absolutely, unconditionally and irrevocably agrees as a
Guarantor (as defined in the Registration Rights Agreement, dated as of August 13,
2010 by and among EnergySolutions, Inc.,
a Delaware corporation, EnergySolutions, LLC,
a Delaware limited liability company, the guarantors party thereto and J.P.
Morgan Securities Inc., on behalf of themselves and the other Initial
Purchasers) to be bound by the terms and provisions of such Registration Rights
Agreement.

 

IN
WITNESS WHEREOF, the undersigned has executed this counterpart as of
                              .

 

	
   

  	
  [NAME]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

28

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