Document:

exv4w1

Exhibit 4.1

EXECUTION VERSION

 

 

LIZ CLAIBORNE, INC.

10.50% SENIOR SECURED NOTES DUE 2019

INDENTURE

Dated as of April 7, 2011

U.S. BANK, NATIONAL ASSOCIATION

as

Trustee

and

Collateral Agent

 

 

 

 

CROSS-REFERENCE TABLE

	 	 	 	 
	Trust Indenture Act	 	Indenture
	       Section	 	Section
	310	(a)(1) 	 	7.10
	 	(a)(2) 	 	7.10
	 	(a)(3) 	 	N.A.
	 	(a)(4) 	 	N.A.
	 	(a)(5) 	 	7.10
	 	(b) 	 	7.03; 7.10
	 	(c) 	 	N.A.
	311	(a) 	 	7.03; 7.11
	 	(b) 	 	7.03; 7.11
	312	(a) 	 	2.05
	 	(b) 	 	14.03
	 	(c) 	 	14.03
	313	(a) 	 	7.06
	 	(b)(1) 	 	7.06
	 	(b)(2) 	 	7.06
	 	(c) 	 	7.06; 14.02
	 	(d) 	 	7.06
	314	(a) 	 	4.03; 14.02
	 	(b) 	 	13.04
	 	(c)(1) 	 	7.02; 13.04; 14.04; 14.05
	 	(c)(2) 	 	7.02; 13.04; 14.04; 14.05
	 	(c)(3) 	 	N.A.
	 	(d) 	 	13.05
	 	(e) 	 	14.05
	 	(f) 	 	N.A.
	315	(a) 	 	7.01(b)
	 	(b) 	 	7.05; 14.02
	 	(c) 	 	7.01
	 	(d) 	 	7.01(c)
	 	(e) 	 	6.11
	316	(a)(last sentence) 	 	2.09
	 	(a)(1)(A) 	 	6.05
	 	(a)(1)(B) 	 	6.04
	 	(a)(2) 	 	N.A.
	 	(b) 	 	6.07
	 	(c) 	 	9.04
	317	(a)(1) 	 	6.08
	 	(a)(2) 	 	6.09
	 	(b) 	 	2.04
	318	(a) 	 	N.A.
	 	(c) 	 	N.A.

 

			
	N.A. 	 	means Not Applicable
	 
	Note: 	 	This Cross-Reference Table shall not, for any purpose, be deemed to be a part of this
Indenture.

 

 

TABLE OF CONTENTS

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

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	 	 	Page	 
	Section 4.05. Taxes
	 	 	53	 
	Section 4.06. Stay, Extension and Usury Laws
	 	 	53	 
	Section 4.07. Restricted Payments
	 	 	53	 
	Section 4.08. Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries
	 	 	57	 
	Section 4.09. Incurrence of Indebtedness and Issuance of Preferred Stock
	 	 	59	 
	Section 4.10. Asset Sales
	 	 	64	 
	Section 4.11. Transactions with Affiliates
	 	 	69	 
	Section 4.12. Liens
	 	 	71	 
	Section 4.13. Business Activities
	 	 	71	 
	Section 4.14. Corporate Existence
	 	 	71	 
	Section 4.15. Offer to Repurchase upon Change of Control
	 	 	71	 
	Section 4.16. [Reserved]
	 	 	73	 
	Section 4.17. Payments for Consent
	 	 	73	 
	Section 4.18. Additional Note Guarantees
	 	 	73	 
	Section 4.19. Designation of Restricted and Unrestricted Subsidiaries
	 	 	73	 
	Section 4.20. Suspension of Covenants
	 	 	74	 
	 
	 	 	 	 
	ARTICLE 5
	 
	 	 	 	 
	SUCCESSORS
	 
	 	 	 	 
	Section 5.01. Merger, Consolidation, or Sale of Assets
	 	 	75	 
	Section 5.02. Successor Corporation Substituted
	 	 	76	 
	 
	 	 	 	 
	ARTICLE 6
	 
	 	 	 	 
	DEFAULTS AND REMEDIES
	 
	 	 	 	 
	Section 6.01. Events of Default
	 	 	76	 
	Section 6.02. Acceleration
	 	 	79	 
	Section 6.03. Other Remedies
	 	 	79	 
	Section 6.04. Waiver of Past Defaults
	 	 	79	 
	Section 6.05. Control by Majority
	 	 	79	 
	Section 6.06. Limitation on Suits
	 	 	80	 
	Section 6.07. Rights of Holders of Notes to Receive Payment
	 	 	80	 
	Section 6.08. Collection Suit by Trustee
	 	 	80	 
	Section 6.09. Trustee May File Proofs of Claim
	 	 	80	 
	Section 6.10. Priorities
	 	 	81	 
	Section 6.11. Undertaking for Costs
	 	 	81	 
	 
	 	 	 	 
	ARTICLE 7
	 
	 	 	 	 
	TRUSTEE
	 
	 	 	 	 
	Section 7.01. Duties of Trustee
	 	 	82	 
	Section 7.02. Rights of Trustee
	 	 	83	 
	Section 7.03. Individual Rights of Trustee
	 	 	85	 
	Section 7.04. Trustee’s Disclaimer
	 	 	85	 
	Section 7.05. Notice of Defaults
	 	 	85	 
	Section 7.06. Reports by Trustee to Holders of the Notes
	 	 	85	 

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	 	 	Page	 
	Section 7.07. Compensation and Indemnity
	 	 	86	 
	Section 7.08. Replacement of Trustee
	 	 	87	 
	Section 7.09. Successor Trustee by Merger, etc.
	 	 	87	 
	Section 7.10. Eligibility; Disqualification
	 	 	88	 
	Section 7.11. Preferential Collection of Claims Against the Issuer
	 	 	88	 
	 
	 	 	 	 
	ARTICLE 8
	 
	 	 	 	 
	LEGAL DEFEASANCE AND COVENANT DEFEASANCE
	 
	 	 	 	 
	Section 8.01. Option to Effect Legal Defeasance or Covenant Defeasance
	 	 	88	 
	Section 8.02. Legal Defeasance and Discharge
	 	 	88	 
	Section 8.03. Covenant Defeasance
	 	 	89	 
	Section 8.04. Conditions to Legal or Covenant Defeasance
	 	 	89	 
	Section 8.05. Deposited Money and Government Obligations to Be Held in Trust;
Other Miscellaneous Provisions
	 	 	90	 
	Section 8.06. Repayment to Issuer
	 	 	91	 
	Section 8.07. Reinstatement
	 	 	91	 
	 
	 	 	 	 
	ARTICLE 9
	 
	 	 	 	 
	AMENDMENT, SUPPLEMENT AND WAIVER
	 
	 	 	 	 
	Section 9.01. Without Consent of Holders of Notes
	 	 	91	 
	Section 9.02. With Consent of Holders of Notes
	 	 	92	 
	Section 9.03. [Reserved]
	 	 	94	 
	Section 9.04. Revocation and Effect of Consents
	 	 	94	 
	Section 9.05. Notation on or Exchange of Notes
	 	 	94	 
	Section 9.06. Trustee to Sign Amendments, etc.
	 	 	94	 
	 
	 	 	 	 
	ARTICLE 10
	 
	 	 	 	 
	NOTE GUARANTEES
	 
	 	 	 	 
	Section 10.01. Guarantee
	 	 	94	 
	Section 10.02. Limitation on Guarantor Liability
	 	 	96	 
	Section 10.03. Execution and Delivery of Note Guarantee
	 	 	96	 
	Section 10.04. Guarantors May Consolidate, etc., on Certain Terms
	 	 	97	 
	Section 10.05. Releases
	 	 	97	 
	 
	 	 	 	 
	ARTICLE 11
	 
	 	 	 	 
	SATISFACTION AND DISCHARGE
	 
	 	 	 	 
	Section 11.01. Satisfaction and Discharge
	 	 	98	 
	Section 11.02. Application of Trust Money
	 	 	99	 

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	 	 	Page	 
	ARTICLE 12
	 
	 	 	 	 
	INTERCREDITOR AGREEMENT
	 
	 	 	 	 
	ARTICLE 13
	 
	 	 	 	 
	COLLATERAL
	 
	 	 	 	 
	Section 13.01. Security Documents
	 	 	100	 
	Section 13.02. Collateral Agent
	 	 	100	 
	Section 13.03. Authorization of Actions to Be Taken
	 	 	100	 
	Section 13.04. Release of Collateral
	 	 	101	 
	Section 13.05. Use of Collateral; Compliance with Section 314(d) of the TIA
	 	 	103	 
	Section 13.06. Powers Exercisable by Receiver or Trustee
	 	 	103	 
	Section 13.07. Voting
	 	 	103	 
	Section 13.08. Collateral Proceeds Account
	 	 	104	 
	Section 13.09. Appointment and Authorization of U.S. Bank as Collateral Agent
	 	 	105	 
	Section 13.10. Post Closing Collateral
	 	 	106	 
	 
	 	 	 	 
	ARTICLE 14
	 
	 	 	 	 
	MISCELLANEOUS
	 
	 	 	 	 
	Section 14.01. Conflict with Other Documents
	 	 	108	 
	Section 14.02. Notices
	 	 	108	 
	Section 14.03. Communication by Holders of Notes with Other Holders of Notes
	 	 	109	 
	Section 14.04. Certificate and Opinion as to Conditions Precedent
	 	 	109	 
	Section 14.05. Statements Required in Certificate or Opinion
	 	 	109	 
	Section 14.06. Rules by Trustee and Agents
	 	 	110	 
	Section 14.07. No Personal Liability of Directors, Officers, Employees and Stockholders
	 	 	110	 
	Section 14.08. Governing Law
	 	 	110	 
	Section 14.09. No Adverse Interpretation of Other Agreements
	 	 	110	 
	Section 14.10. Successors
	 	 	110	 
	Section 14.11. Severability
	 	 	110	 
	Section 14.12. Counterpart Originals
	 	 	110	 
	Section 14.13. Table of Contents, Headings, etc.
	 	 	111	 
	Section 14.14. Jurisdiction; Consent to Service of Process
	 	 	111	 
	Section 14.15. Force Majeure
	 	 	111	 
	 
	 	 	 	 
	EXHIBITS
	 
	 	 	 	 
	Exhibit A FORM OF NOTE
	 	 	 	 
	Exhibit B FORM OF CERTIFICATE OF TRANSFER
	 	 	 	 
	Exhibit C FORM OF CERTIFICATE OF EXCHANGE
	 	 	 	 
	Exhibit D FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR
	 	 	 	 
	Exhibit E FORM OF NOTATION OF GUARANTEE
	 	 	 	 

-iv-

 

     INDENTURE dated as of April 7, 2011 among LIZ CLAIBORNE, INC., a Delaware corporation (the
“Issuer”), each of the Guarantors from time to time party hereto, as guarantors, and U.S. BANK,
NATIONAL ASSOCIATION, as trustee (the “Trustee”) and as Collateral Agent.

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

     The Issuer, the Guarantors and the Trustee agree as follows for the benefit of each other and
for the equal and ratable benefit of the Holders (as defined) of the 10.50% Senior Secured Notes
due 2019 (the “Notes”):

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.01. Definitions.

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

     “ABL Facility” means the Second Amended and Restated Credit Agreement, dated May 6, 2010, as
amended, among the Issuer and the other Subsidiaries of the Issuer party thereto, the various
lenders and agents party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, together
with any amendments, supplements, modifications, extensions, renewals, restatements or refundings
thereof and any indentures or credit facilities, receivables securitization facilities or
commercial paper facilities with banks or other institutional lenders or investors that replace,
refund or refinance any part of the loans, notes, other credit facilities or commitments
thereunder, including any such replacement, refunding or refinancing facility or indenture that
increases the amount borrowable thereunder, alters the maturity thereof or adds Restricted
Subsidiaries as additional borrowers or guarantors thereunder and whether by the same or any other
agent, lender, group of lenders or investors. Any agreement or instrument other than the ABL
Facility in effect on the Issue Date must be designated in an officer’s certificate as an “ABL
Facility” for purposes of this Indenture in order to be an ABL Facility.

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

     “ABL Liens” means all Liens in favor of the ABL Facility Collateral Agent on Collateral
securing the ABL Obligations.

     “ABL Obligations” means (x) the Indebtedness and other obligations which are secured by a Lien
on the Collateral permitted by clause (2) of the definition of “Permitted Liens” and (y) Banking
Services Obligations, Synthetic Lease Obligations, Acceptance Obligations and Secured Swap
Obligations (which terms are defined in the Intercreditor Agreement) that are permitted to be
secured pursuant to the definition of “Permitted Liens.”

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

     (1) Indebtedness of any other Person existing at the time such other Person is merged
with or into or became a Subsidiary of such specified Person, whether or not such
Indebtedness is

 

 

incurred in connection with, or in contemplation of, such other Person merging with or
into, or becoming a Restricted Subsidiary of, such specified Person; and

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

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

     “Additional Notes” means additional Notes (other than the Initial Notes) issued under this
Indenture in accordance with Section 2.02.

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

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

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

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

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

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

	 	(b)	 	the then outstanding principal amount of such Note, minus
	 
	 	(c)	 	accrued interest paid on the date of redemption.

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

-2-

 

     “Asset Sale” means:

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

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

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

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

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

     (3) a transfer of assets that are not Notes Priority Collateral between or among the
Issuer and its Restricted Subsidiaries;

     (4) an issuance of Equity Interests by a Restricted Subsidiary of the Issuer to the
Issuer or to a Restricted Subsidiary of the Issuer;

     (5) the sale or lease of products, services or accounts receivable in the ordinary
course of business and any sale or other disposition of damaged, worn-out or obsolete assets
or assets otherwise unsuitable or no longer required for use in the ordinary course of the
business of Issuer and its Restricted Subsidiaries that do not constitute Notes Priority
Collateral;

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

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

     (8) the licensing or sublicensing of intellectual property or other general intangibles
on customary terms in the ordinary course of business and the abandonment of intellectual
property which is no longer used or useful in or material to the Issuer’s and the Restricted
Subsidiaries’ businesses;

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

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

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

-3-

 

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

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

     (14) (a) any exchange of assets (including a combination of assets and Cash
Equivalents) for assets related to a Permitted Business of comparable or greater market
value or usefulness to the business of the Issuer and the Restricted Subsidiaries as a
whole, as determined in good faith by the Issuer, and (b) in the ordinary course of
business, any swap of assets, or lease, assignment or sublease of any real or personal
property, in exchange for services (including in connection with any outsourcing
arrangements) of comparable or greater value or usefulness to the business of the Issuer and
the Restricted Subsidiaries as a whole, as determined in good faith by the Issuer; provided
that if the assets transferred pursuant to this clause (14) are Notes Priority Collateral
the assets received in exchange therefor shall be Notes Priority Collateral;

     (15) any sale, conveyance or other disposition of assets of any Restricted Subsidiary
that is not a Wholly-Owned Restricted Subsidiary, except to the extent that the proceeds
thereof are distributed in cash or Cash Equivalents to the Issuer or a Wholly-Owned
Restricted Subsidiary;

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

     (17) the sublease or assignment to third parties of leased facilities;

     (18) the grant of buy-out options to licensees of trademarks and other intellectual
property pursuant to license agreements entered into in the ordinary course of business and
the sale of such trademarks and other intellectual property to such licensees, provided that
the proceeds from any such sale are applied as Net Proceeds as required under Section 4.10;

     (19) the sale of interests in a joint venture pursuant to customary put-call or
buy-sell arrangements; and

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

     Notwithstanding the foregoing, the Issuer may voluntarily treat any transaction otherwise
exempt from the definition of “Asset Sale” pursuant to clauses (1) through (20) above as an “Asset
Sale” by designating such transaction as an Asset Sale for purposes of this Indenture in an
officer’s certificate delivered to the Trustee.

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

-4-

 

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

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

     “Board of Directors” means:

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

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

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

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

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

     (1) 85% of the face amount of all accounts receivable owned by the Issuer and its
Restricted Subsidiaries (excluding accounts receivable and related assets sold, conveyed or
otherwise transferred to a Receivables Entity in connection with a Qualified Receivables
Transaction) as of the end of the most recent fiscal month for which consolidated financial
statements are available; plus

     (2) 70% of the inventory owned by the Issuer and its Restricted Subsidiaries as of the
end of the most recent fiscal month for which consolidated financial statements are
available.

     Notwithstanding the foregoing, the borrowing base shall be adjusted to give pro forma effect
to any acquisitions or Asset Sales by the Issuer and/or any Restricted Subsidiary (including,
without limitation, any acquisition proposed to be made at or about the same time as the incurrence
of the Indebtedness that is proposed to be incurred) since the end of the most recent fiscal month
for which consolidated financial statements are available, as if such acquisition or Asset Sale had
occurred on the last day of the end of the most recent fiscal month.

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

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

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

-5-

 

     “Capital Stock” means:

     (1) in the case of a corporation, corporate stock or American Depository Shares (or
receipts issued in evidence thereof) representing interests in such corporate stock;

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

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

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

     “Cash Equivalents” means

     (1) any evidence of Indebtedness issued or directly and fully guaranteed or insured by
the United States or any agency or instrumentality thereof;

     (2) deposits, certificates of deposit or acceptances of any financial institution that
is a member of the Federal Reserve System and whose senior unsecured debt is rated at least
“A-2” by Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.
(“S&P”), or at least “P-2” by Moody’s Investors Service, Inc. (“Moody’s”) or any respective
successor agency;

     (3) commercial paper with a maturity of 365 days or less issued by a corporation (other
than an Affiliate of the Issuer) organized and existing under the laws of the United States
of America, any state thereof or the District of Columbia and rated at least “A-1” by S&P
and at least “P-1” by Moody’s or any respective successor agency;

     (4) repurchase agreements and reverse repurchase agreements relating to marketable
direct obligations issued or unconditionally guaranteed by the United States or issued by
any agency thereof and backed by the full faith and credit of the United States maturing
within 365 days from the date of acquisition;

     (5) demand and time deposits with a domestic commercial bank that is a member of the
Federal Reserve System that are FDIC insured;

     (6) money market funds which invest substantially all of their assets in securities
described in the preceding clauses (1) through (5); and

     (7) in the case of a Foreign Subsidiary, substantially similar investments, of
comparable credit quality, denominated in local currency held by such Foreign Subsidiary
from time to time in the ordinary course of business.

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

-6-

 

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

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

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

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

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

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

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

     “Clearstream” means Clearstream Banking, S.A.

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

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

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

-7-

 

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

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

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

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

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

     (5) business optimization expenses, streamlining costs, exit or disposal costs,
facilities closure costs and other restructuring charges, reserves or expenses (which, for
the avoidance of doubt, shall include, without limitation, the effect of inventory
optimization programs, facility consolidations, retention, headcount reductions, systems
establishment costs, payroll, relocation and contract termination charges) and other
adjustments of the type reflected in footnote (1) to the “Summary Historical Consolidated
Financial Data of Liz Claiborne, Inc.” in the Offering Memorandum (to the extent not already
realized), provided that the amount of cash charges added back under this clause (5) with
respect to any actions initiated following the Issue Date, shall not exceed, in the
aggregate, 10% of Consolidated Cash Flow (after giving effect to the addition of such
amount) for such period; plus

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

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

     (8) non-cash items increasing such Consolidated Net Income for such period, other than
the accrual of revenue in the ordinary course of business, in each case, on a consolidated
basis and determined in accordance with Applicable Accounting Standards.

-8-

 

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

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

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

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

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

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

     (6) any charges or credits relating to any purchase accounting adjustments will be
excluded;

     (7) any (a) one-time non-cash compensation charges, (b) non-cash costs or expenses
resulting from stock option plans, employee benefit plans, compensation charges or
post-employment benefit plans, or grants or awards of stock, stock appreciation or similar
rights, stock options, restricted stock, preferred stock or other rights and (c) write-offs
or write-downs of goodwill will be excluded;

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

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

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

-9-

 

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

     (12) all net after-tax nonrecurring or unusual gains and losses, including, without
limitation, any expenses or charges related to streamlining and restructuring activities
(including related payroll, relocation and contract termination charges or expenses),
streamlining initiatives, brand-exiting or facilities closure or repurposing activities,
asset write-downs or write-offs, reductions in force, furloughs, severance, retention
bonuses and professional fees related to any of the foregoing, will be excluded;

     (13) all net after-tax charges or expenses with respect to curtailments,
discontinuations or modifications to pension and post-retirement employee benefit plans will
be excluded; and

     (14) whether or not positive (a) “straight-line” rent expense less (b) cash rent
expense will be excluded.

     “Consolidated Total Debt” means, as of any date of determination, an amount, without
duplication, equal to the aggregate principal amount of all outstanding Indebtedness of the Issuer
and its Restricted Subsidiaries on a consolidated basis.

     “Consolidated Total Secured Debt Ratio” means, as of any date of determination, the ratio of
(a) the aggregate principal amount of Consolidated Total Debt secured by one or more Permitted
Liens pursuant to clauses (1), (2), (4), (5), (7), (8), (13) (to the extent representing a
replacement of Liens otherwise described in this clause (a)), (28) or (38) of the definition of
Permitted Liens on the date of determination to (b) Consolidated Cash Flow of the Issuer and its
Restricted Subsidiaries for the most recently ended four full fiscal quarters for which internal
financial statements are available, in each case with such pro forma adjustments to Consolidated
Cash Flow as are consistent with the pro forma adjustment provisions set forth in the definition of
“Fixed Charge Coverage Ratio.”

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

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

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

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

     “Credit Facilities” means one or more debt facilities or commercial paper facilities
(including without limitation the credit facilities provided under the ABL Facility), in each case,
with banks or other lenders or credit providers or a trustee providing for revolving credit loans,
term loans, receivables financing (including through the sale of receivables to such lenders or to
special purpose entities formed to borrow from such lenders against such receivables), bankers’
acceptances, letters of credit or issuances of

-10-

 

senior secured notes, including any related notes,
guarantees, collateral documents, instruments, documents and agreements executed in connection
therewith and in each case, as amended, restated, modified, renewed, extended, supplemented,
restructured, refunded, replaced in any manner (whether upon or after termination or otherwise) or
refinanced (including, in each case, by means of sales of debt securities to institutional
investors) in whole or in part from time to time, in one or more instances and including any
amendment increasing the amount of Indebtedness incurred or available to be borrowed thereunder,
extending the maturity of any Indebtedness incurred thereunder or contemplated thereby or deleting,
adding or substituting one or more parties thereto (whether or not such added or substituted
parties are banks or other institutional lenders), including into one or more separate instruments
or facilities, in each case, whether any such amendment, restatement, modification, renewal,
extension, supplement, restructuring, refunding, replacement or refinancing occurs simultaneously
or not with the termination or repayment of a prior Credit Facility. Any agreement or instrument
other than the ABL Facility in effect on the Issue Date must be designated in an Officer’s
Certificate as a “Credit Facility” for purposes of this Indenture in order to be a Credit Facility.

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

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

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

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

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

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

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     “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).

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

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

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

     “Exchange Note Guarantees” shall mean a Guarantee of an Exchange Note.

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

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

     “Excluded Assets” (which, for purposes of this Description of the Notes, includes both assets
which will be affirmatively excluded from the Liens of the Security Documents and assets which the
Holders of Notes are not likely to have a perfected security interest in under applicable law) will
include, among other things, the following assets of the Issuer and the Guarantors:

     (1) any property or assets owned by any Subsidiary of the Issuer which is not a
Guarantor,

     (2) any assets other than Notes Priority Collateral which do not secure ABL Obligations
(including, without limitation, certain assets subject to existing synthetic leases and
assets of employee benefit plans);

     (3) Excluded Contracts;

     (4) Excluded Equipment;

     (5) any voting security that is issued by a Foreign Subsidiary (that is a corporation
for United States federal income tax purposes) and owned by the Issuer or any Guarantor, if
and to the extent that the inclusion of such voting security in the Collateral would cause
the Collateral pledged by the Issuer or such Guarantor, as the case may be, to include in
the aggregate more
than 65% of the total combined voting power of all classes of voting securities of such
Foreign Subsidiary;

     (6) any Capital Stock and other securities of each Subsidiary of the Issuer to the
extent that and for so long as the pledge of such Capital Stock or other securities to
secure the Notes or the Note Guarantees would cause such Subsidiary to be required to file
separate financial statements with the SEC pursuant to Rule 3-16 of Regulation S-X (as in
effect from time to time);

     (7) proceeds and products from any and all of the foregoing excluded collateral
described in clauses (1) through (6), unless such proceeds or products would otherwise
constitute Collateral securing Note Obligations; and

     (8) any property or asset only to the extent and for so long as the grant of a security
interest in such property or asset (including the perfection of such property or asset) (i)
is prohibited by, or would constitute a breach or default under or require any consent not
obtained under,

-12-

 

any applicable law or contract, license or other document evidencing or
giving rise to such property (except to the extent such prohibition, breach or default is
ineffective under applicable law) or (ii) requires a consent not obtained of any
governmental authority pursuant to applicable law.

     “Excluded Contract” means at any date any rights or interest of the Issuer or any Guarantor
in, to or under any agreement, contract, license, instrument, document or other general intangible
(referred to solely for purposes of this definition as a “Contract”) (a) to the extent that such
Contract by the express terms of a valid and enforceable restriction in favor of a Person who is
not the Issuer or any Subsidiary, or any requirement of law, prohibits, or requires any consent or
establishes any other condition for, an assignment thereof or a grant of a security interest
therein by the Issuer or a Subsidiary and (b) which, if in existence or the subject of rights in
favor of the Issuer or any Guarantor as of the Issue Date and with respect to which a contravention
or other violation caused or arising by its inclusion as Collateral could reasonably be expected to
have a Material Adverse Effect (as defined in the ABL Facility as in effect on the Issue Date), is
listed and designated as such to the Notes Collateral Agent in an officers’ certificate of the
Issuer; provided that: (x) rights to payment under any such Contract otherwise constituting an
Excluded Contract by virtue of this definition shall be included in the Collateral to the extent
permitted thereby or by Section 9-406 or Section 9-408 of the Uniform Commercial Code and (y) all
proceeds paid or payable to any of the Issuer or any Guarantor from any sale, transfer or
assignment of such Contract and all rights to receive such proceeds shall be included in the
Collateral.

     “Excluded Equipment” means at any date any equipment or other assets of the Issuer or any
Guarantor which is subject to, or secured by a Lien permitted by clause (4), (5), (7) or (37) or,
to the extent relating thereto, (13) of the definition of Permitted Liens if and to the extent that
(a) the express terms of a valid and enforceable restriction in favor of a Person who is not the
Issuer or a Restricted Subsidiary contained in the agreements or documents granting or governing
such Lien prohibits, or requires any consent or establishes any other conditions for, an assignment
thereof, or a grant of a security interest therein, by the Issuer or any Guarantor and (b) such
restriction relates only to the asset or assets acquired by the Issuer or any Guarantor with the
proceeds of the Indebtedness secured by such Lien and attachments thereto or substitutions
therefor; provided that all proceeds paid or payable to any of the Issuer or any Guarantor from any
sale, transfer or assignment or other voluntary or involuntary disposition of such equipment or
other assets and all rights to receive such proceeds shall be included in the Collateral to the
extent not otherwise required to be paid to the holder of the Indebtedness secured by such
equipment or other assets.

     “Existing Convertible Notes” means the 6.0% Convertible Senior Notes due 2014 of the Issuer.

     “Existing Euro Notes” means the 5% Notes due 2013 of the Issuer.

     “Existing Indebtedness” means all Indebtedness of the Issuer and its Subsidiaries (other than
Indebtedness under the ABL Facility) in existence on the date of this Indenture, until such amounts
are repaid and the Existing Synthetic Lease Obligations.

     “Existing Synthetic Lease Obligation” means obligations with respect to the existing synthetic
lease of the Issuer and it’s Subsidiaries in respect of the Issuer’s and its subsidiaries Ohio and
Rhode Island distribution center and warehouse operations as described in this offering memorandum.

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

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

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

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

     (1) acquisitions, dispositions, discontinued operations or other operational changes
that have been made by the specified Person or any of its Restricted Subsidiaries, including
through Investments, mergers or consolidations, or any Person or any of its Restricted
Subsidiaries acquired by the specified Person or any of its Restricted Subsidiaries, and
including all related financing transactions and including increases in ownership of
Restricted Subsidiaries, during the four-quarter reference period or subsequent to such
reference period and on or prior to the Calculation Date, or that are to be made on the
Calculation Date, will be given pro forma effect, in the good-faith judgment of the Chief
Financial Officer of the Issuer, as if they had occurred on the first day of the
four-quarter reference period, and such pro forma calculations may reflect operating expense
reductions and other operating improvements or synergies expected to result from the
applicable event based on actions to be taken within 12 months after the relevant event (to
the extent set forth in an Officer’s Certificate in reasonable detail, including the cost
and timing of such expense reductions or other operating improvements or synergies), in each
case, net of all costs required to achieve such expense reduction or other operating
improvement or synergy;

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

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

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

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

     (6) if any Indebtedness bears a floating rate of interest, the interest expense on such
Indebtedness will be calculated as if the rate in effect on the Calculation Date had been
the applicable

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rate for the entire period (taking into account any Hedging Obligation
applicable to such Indebtedness if such Hedging Obligation has a remaining term as at the
Calculation Date in excess of 12 months).

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

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

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

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

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

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

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

     “Government Obligations” means securities that are:

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

-15-

 

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

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

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

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

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

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

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

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

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

     “IFRS” means the International Financial Reporting Standards, as promulgated by the
International Accounting Standards Board (or any successor board or agency), as in effect on the
date of the election, if any, by the Issuer to change Applicable Accounting Standards to IFRS;
provided that IFRS shall not include any provisions of such standards that would require a lease
that would be classified as an operating lease under U.S. GAAP to be classified as indebtedness or
a finance or capital lease.

-16-

 

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

     (1) in respect of borrowed money;

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

     (3) in respect of banker’s acceptances;

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

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

     (6) representing any Hedging Obligations,

if and to the extent any of the preceding items would appear as a liability upon a balance sheet
(excluding the footnotes) of the specified Person prepared in accordance with Applicable Accounting
Standards; provided that for the avoidance of doubt, (i) any Guarantee by the Issuer or any
Restricted Subsidiary of obligations of another Person that do not constitute Indebtedness of such
Person and (ii) the Existing Synthetic Lease Obligations shall, in each case, not constitute
Indebtedness of the Issuer or a Restricted Subsidiary. In addition, the term “Indebtedness”
includes all Indebtedness of others secured by a Lien on any asset of the specified Person (whether
or not such Indebtedness is assumed by the specified Person), except for any pledge of the Equity
Interests of an Unrestricted Subsidiary as permitted by clause (20) of the definition of Permitted
Liens, and, to the extent not otherwise included, the Guarantee by the specified Person of any
Indebtedness of any other Person as shall equal the lesser of (x) the Fair Market Value of
such asset as of the date of determination or (y) the amount of such Indebtedness and, to the
extent not otherwise included, the guarantee by the specified Person of any Indebtedness of any
other Person.

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

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

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

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     “Initial Notes” means the first $220.0 million aggregate principal amount of Notes issued
under this Indenture on the Issue Date.

     “Initial Purchasers” means Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan
Securities LLC, SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities LLC.

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

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

     “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by
Moody’s or BBB- (or the equivalent) by S&P.

     “Investments” means, with respect to any Person, all direct or indirect investments by such
Person in other Persons (including Affiliates) in the forms of loans (including Guarantees of
Indebtedness or other obligations), advances or capital contributions (excluding (i) commission,
travel and similar advances to officers and employees made in the ordinary course of business and
(ii) extensions of credit to customers or advances, deposits or payment to or with suppliers,
lessors or utilities or for workers’ compensation, in each case, that are incurred in the ordinary
course of business and recorded as accounts receivable, prepaid expenses or deposits on the balance
sheet of such Person prepared in accordance with Applicable Accounting Standards), purchases or
other acquisitions for consideration of Indebtedness, Equity Interests or other securities,
together with all items that are or would be classified as investments on a balance sheet prepared
in accordance with Applicable Accounting Standards. If the Issuer or any Restricted Subsidiary of
the Issuer sells or otherwise disposes of any Equity Interests of any direct or indirect Restricted
Subsidiary of the Issuer such that, after giving effect to any such sale or disposition, such
Person is no longer a Restricted Subsidiary of the Issuer, the Issuer will be deemed to have
made an Investment on the date of any such sale or disposition equal to the Fair Market Value of
the Issuer’s Investments in such Restricted Subsidiary that were not sold or disposed of in an
amount determined as provided in Section 4.07(c). The acquisition by the Issuer or any Restricted
Subsidiary of the Issuer of a Person that holds an Investment in a third Person will be deemed to
be an Investment by the Issuer or such Restricted Subsidiary in such third Person in an amount
equal to the Fair Market Value of the Investments held by the acquired Person in such third Person
in an amount determined as provided in 4.07(c). Except as otherwise provided in this Indenture,
the amount of an Investment will be determined at the time the Investment is made and without
giving effect to subsequent changes in value but giving effect (without duplication) to all
subsequent reductions in the amount of such Investment as a result of (x) the repayment or
disposition thereof for cash or (y) the redesignation of an Unrestricted Subsidiary as a Restricted
Subsidiary (valued proportionately to the equity interest in such Unrestricted Subsidiary of the
Issuer or such Restricted Subsidiary owning such Unrestricted Subsidiary at the time of such
redesignation) at the Fair Market Value of the net assets of such Unrestricted Subsidiary at the
time of such redesignation, in the case of clauses (x) and (y), not to exceed the original amount,
or Fair Market Value, of such Investment.

     “Issue Date” means April 7, 2011.

     “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in the City
of New York or at a place of payment are authorized by law, regulation or executive order to remain
closed. If a payment date is a Legal Holiday at a place of payment, payment may be made at that
place on the

-18-

 

next succeeding day that is not a Legal Holiday, and no interest shall accrue on such
payment for the intervening period.

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

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

     “Net Proceeds” means the aggregate cash proceeds and Cash Equivalents received by the Issuer
or any of its Restricted Subsidiaries in respect of any Asset Sale or Casualty or Condemnation
Event (including, without limitation, any cash or Cash Equivalents received upon the sale or other
disposition of any non-cash consideration received in any Asset Sale), net of the direct costs
relating to such Asset Sale or Casualty or Condemnation Event, including, without limitation,
legal, accounting and investment banking fees, and sales commissions, any relocation expenses
incurred as a result of the Asset Sale or Casualty or Condemnation Event and taxes paid or payable
as a result of the Asset Sale or Casualty or Condemnation Event, in each case, after taking into
account, without duplication, (1) any available tax credits or deductions and any tax sharing
arrangements, and amounts required to be applied to the repayment of Indebtedness secured by a
Permitted Lien on the asset or assets that were the subject of such Asset Sale or Casualty or
Condemnation Event (other than ABL Obligations, Note Obligations and Permitted Additional Pari
Passu Obligations) and any reserve for adjustment in respect of the sale price of such asset or
assets established in accordance with Applicable Accounting Standards, (2) any reserve or payment
with respect to liabilities associated with such asset or assets and retained by the Issuer or any
of its Restricted Subsidiaries after such sale or other disposition thereof, including, without
limitation, severance costs, pension and other post-employment benefit liabilities and liabilities
related to environmental
matters or against any indemnification obligations associated with such transaction, and (3)
any cash escrows in connection with purchase price adjustments, reserves or indemnities (until
released).

     “Non-Recourse Debt” means Indebtedness:

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

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

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

in each case, except to the extent permitted by Section 4.07; provided, however, that Indebtedness
shall not cease to be Non-Recourse Debt solely by reason of pledge by the Issuer or any of its
Restricted

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Subsidiaries of Equity Interests of an Unrestricted Subsidiary of the Issuer or of a
Person that is not a Subsidiary of the Issuer or such Restricted Subsidiary if recourse is limited
to such Equity Interests.

     “Non-Triggering Indebtedness” means Indebtedness of a Restricted Subsidiary incurred under
clause (4), (6), (8), (20) or (25) of the definition of “Permitted Debt”, together with any
Indebtedness incurred under clause (5) of the definition of “Permitted Debt” in respect thereof.

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

     “Note Documents” means the Indenture, the Notes, the Note Guarantees, the Security Documents
and each of the other agreements, documents and instruments executed pursuant thereto, and
delivered to the Trustee by or on behalf of the Issuer or any Guarantor, including any
intercreditor or joinder agreement among holders of Notes Obligations to the extent such are
effective at the relevant time, as each may be amended, restated, supplemented, modified, renewed,
extended or refinanced from time to time in accordance with the provisions of the Intercreditor
Agreement.

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

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

     “Note Obligations” means all Obligations (including, without limitation, principal, premium,
interest (including, without limitation, all interest and fees that accrue after the commencement
of any case, proceeding or other action relating to the bankruptcy, insolvency, reorganization or
similar proceeding of the Issuer or any Guarantor at the rate provided for in the respective
documentation, whether or not such claim for post-petition interest or fees is allowed in any such
proceeding)) owing to the Collateral Agent,
the Trustee and the Holders, in each case, under the Notes, the Note Guarantees, the
Indenture, the Security Documents and the other Notes Documents and the due performance and
compliance by the Issuer and the Guarantors with all of the Obligations arising under the Notes,
the Note Guarantees, the Indenture, the Security Documents and the other Notes Documents.

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

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

     “Obligations” means any principal, interest, penalties, fees, indemnifications,
reimbursements, damages and other liabilities payable under the documentation governing any
Indebtedness.

     “Offering Memorandum” means the Confidential Offering Memorandum, dated as of April 1, 2011,
relating to the Initial Notes.

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

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

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

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

     “Permitted Additional Pari Passu Obligations” means Obligations under any Additional Notes or
any other Indebtedness (whether or not consisting of Additional Notes) secured by the Note Liens;
provided that, except in the case of (x) Permitted Refinancing Indebtedness in respect of either
the Notes or Permitted Additional Pari Passu Obligations previously incurred, (y) Indebtedness
secured by Liens permitted by clause (38) of the definition of “Permitted Liens” and (z) other
Permitted Additional Pari Passu Obligations not issued in reliance on either clause (x) or clause
(y) above issued following the date of this Indenture in an aggregate principal amount not to
exceed the U.S. dollar equivalent of €224.4 million (less the amount of Net Proceeds from Asset
Sales used to repay Existing Euro Notes pursuant to Section 4.10(c)(1)(B)(ii)), immediately after
giving effect to the incurrence of such Permitted Additional Pari Passu Obligations, the
Consolidated Total Secured Debt Ratio of the Issuer and its Restricted Subsidiaries would be less
than or equal to 3.0:1.0; provided that, except in the case of Additional Notes, (i) the trustee or
agent under such Permitted Additional Pari Passu Obligation executes a joinder agreement to the
Security Agreement in the form attached thereto agreeing to be bound thereby and (ii) the Issuer
has designated such Indebtedness as “Permitted Additional Pari Passu Obligations” under the Security
Agreement. For purposes of this definition, if any Indebtedness initially was incurred as
unsecured Indebtedness and is later secured by a Lien pursuant to this definition, such
Indebtedness shall be deemed to have been incurred at the time it becomes secured by such Lien.

     “Permitted Business” means any business relating to the design, sourcing, licensing selling
and marketing (including, but not limited to, operating specialty retail and outlet stores) of
fashion apparel and accessories, including but not limited to, handbags, jewelry, small leather
goods, shoes, fragrances, cosmetics and home products and any business or other activities that are
reasonably similar, ancillary, complementary or related to, or a reasonable extension, development
or expansion of, any such business.

     “Permitted Hedging Obligations” means any Hedging Obligations that would constitute Permitted
Debt pursuant to clause (8) of the definition of “Permitted Debt.”

     “Permitted Investments” means:

     (1) any Investment in the Issuer or a Restricted Subsidiary; provided that such
Investment shall not consist of a transfer of Notes Priority Collateral (other than Equity
Interests of a Restricted Subsidiary) unless such transfer is to the Issuer or a Guarantor;

     (2) any Investment in Cash Equivalents;

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

-21-

 

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

     (b) such Person is merged, consolidated or amalgamated with or into, or
transfers or conveys substantially all of its assets to, or is liquidated into, the
Issuer or a Restricted Subsidiary of the Issuer;

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

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

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

     (7) Investments represented by Permitted Hedging Obligations;

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

     (9) repurchases of the Notes;

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

     (11) Guarantees otherwise permitted by this Indenture;

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

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

     (14) Investments consisting of purchases and acquisitions of inventory, supplies,
material or equipment pursuant to joint marketing, joint development or similar arrangements
with other Persons;

-22-

 

     (15) advances, loans, rebates and extensions of credit (including the creation of
receivables) to suppliers, customers and vendors, and performance guarantees, in each case
in the ordinary course of business;

     (16) Investments in joint ventures having an aggregate fair market value, taken
together with all other Investments made during any fiscal year pursuant to this clause that
are at that time outstanding not to exceed $20.0 million, net of any return of or on any
Investments made pursuant to this clause received by the Issuer or any Restricted Subsidiary
during such fiscal year (provided that (i) up to $20.0 million able to be invested pursuant
to this clause in any fiscal year and not so invested may be carried over to the next fiscal
year; and (ii) any amount able to be invested in the next succeeding fiscal year may be
carried backward to the current fiscal year, which amount carried backward may no longer be
used in such future fiscal year);

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

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

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

     (20) other Investments in any Person having an aggregate Fair Market Value (measured on
the date each such Investment was made and without giving effect to subsequent changes in
value), when taken together with all other Investments made pursuant to this clause (20)
that are at the time outstanding, not to exceed the greater of (x) $30.0 million and (y)
2.5% of Total Assets, in each case, net of any return of or on such Investments received by
the Issuer or any Restricted Subsidiary;

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

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

     (23) the licensing for value or contribution for equity or other consideration to a
joint venture engaged in a Permitted Business in jurisdictions other than the United States
of intellectual property rights relating to the jurisdictions in which such joint venture
operates or proposes to operate; and

     (24) guarantees by the Issuer or any of its Restricted Subsidiaries of leases (other
than Capital Lease Obligations) or of other obligations that do not constitute Indebtedness,
in each case entered into in the ordinary course of business or in connection with
facilities closure activities.

-23-

 

     “Permitted Liens” means:

     (1) any Liens (whose priority shall be governed by the Intercreditor Agreement) held by
the Collateral Agent securing the Notes and the related Note Guarantees outstanding on the
date of this Indenture (and any related Exchange Notes and Exchange Note Guarantees);

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

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

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

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

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

     (7) Liens to secure Indebtedness (including Capital Lease Obligations) or Attributable
Debt permitted by clause (4) of the definition of “Permitted Debt” covering only the assets
acquired with or financed by such Indebtedness (plus improvements and accessions to such
property or proceeds or distributions thereof);

     (8) Liens existing on the date of this Indenture (other than Liens securing the Notes
or Liens securing the ABL Facility);

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

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

     (11) any state of facts an accurate survey would disclose, prescriptive easements or
adverse possession claims, minor encumbrances, easements or reservations of, or rights of
others

-24-

 

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

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

     (13) Liens to secure any Permitted Refinancing Indebtedness incurred to refinance
secured Indebtedness permitted to be incurred under this Indenture (other than the ABL
Facility or the Notes) or the Existing Synthetic Lease Obligations; provided, however, that
the new Lien is limited to all or part of the same property and assets that secured or,
under the written agreements pursuant to which the original Lien arose, could secure the
original Lien (plus improvements and accessions to, such property or proceeds or
distributions thereof) or in the case of Permitted Refinancing Indebtedness incurred to
refinance the Existing Synthetic Lease Obligations, property or assets that were subject to
the synthetic lease creating such obligations;

     (14) Liens or leases or licenses or sublicenses or subleases as licensor, lessor,
sublicensor or sublessor of any of its property, including intellectual property, in the
ordinary course of business;

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

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

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

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

     (19) any interest or title of a lessor, licensor or sublicensor under any lease,
license or sublicense of the property of the Issuer and its subsidiaries, including
intellectual property, as applicable;

-25-

 

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

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

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

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

     (24) restrictions on dispositions of assets to be disposed of pursuant to merger
agreements, stock or asset purchase agreements and similar agreements;

     (25) options, put and call arrangements, rights of first refusal and similar rights
relating to Investments in joint ventures, partnerships and the like;

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

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

     (28) (i) prior to a Covenant Suspension Event, Liens securing Permitted Additional Pari
Passu Obligations and (ii) from and after a Covenant Suspension Event, any other Liens so
long as the Notes are equally and ratably secured with the obligations secured by such Liens
for so long as such other obligations are so secured;

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

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

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

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

-26-

 

Issuer or any Restricted Subsidiary of the Issuer, including pursuant to any cash
management agreement;

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

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

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

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

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

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

     (39) the grant of buy-out options to licensees of trademarks and other intellectual
property pursuant to license agreements entered into in the ordinary course of business;
provided that the exercise of such option is permitted by Section 4.10.

     “Permitted Refinancing Indebtedness” means any Indebtedness of the Issuer or any of its
Restricted Subsidiaries issued in exchange for, or the net proceeds of which are used to
renew, refund, refinance, replace, defease or discharge other Indebtedness of the Issuer or
any of its Restricted Subsidiaries (other than intercompany Indebtedness) or, in the case of
the Existing Synthetic Lease Obligations, which is incurred to finance the acquisition or
lease of the assets subject to the synthetic lease creating such obligations; provided that:

     (1) the principal amount (or accreted value, if applicable) of such Permitted
Refinancing Indebtedness does not exceed the principal amount (or accreted value, if
applicable) of the Indebtedness renewed, refunded, refinanced, replaced, defeased or
discharged (plus all accrued interest on the Indebtedness and the amount of all fees and
expenses, including premiums, incurred in connection therewith) or, in the case of Permitted
Refinancing Indebtedness in respect of the Existing Synthetic Lease Obligations, does not
exceed the fair market value of the assets subject to the synthetic lease acquired with the
proceeds of such Permitted Refinancing Indebtedness;

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

-27-

 

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

     (4) Permitted Refinancing Indebtedness may not be incurred by a Person other than the
Issuer and any of the Guarantors to renew refund, refinance, replace, defease or discharge
any Indebtedness of the Issuer or a Guarantor (and, for the avoidance of doubt, in
connection with Permitted Refinancing Indebtedness incurred to renew, refund, refinance,
replace, defease or discharge Indebtedness under the Existing Euro Notes or the Existing
Convertible Notes, the Guarantors may also guarantee such Permitted Refinancing
Indebtedness).

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

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

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

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

     “Qualified Proceeds” means any of the following or any combination of the following:

     (1) Cash Equivalents; and

     (2) the Fair Market Value of the Capital Stock of any Person engaged primarily in a
Permitted Business if, in connection with the receipt by the Issuer or any of its Restricted
Subsidiaries of such Capital Stock, such Person becomes a Restricted Subsidiary of the
Issuer or such Person is merged or consolidated into the Issuer or any of its Restricted
Subsidiaries.

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

-28-

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     “SEC” means the Securities and Exchange Commission.

-29-

 

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

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

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

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

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

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

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

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

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

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

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

     “Total Assets” means the total assets of the Issuer and its Restricted Subsidiaries, as shown
on the most recent internal balance sheet of the Issuer, prepared on a consolidated basis
(excluding Unrestricted Subsidiaries) in accordance with Applicable Accounting Standards, with such
pro forma adjustments as are appropriate and consistent with the pro forma adjustment provisions
set forth in the definition of Fixed Charge Coverage Ratio.

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     “Treasury Rate” means the rate per annum equal to the yield to maturity at the time of
computation of United States Treasury securities with a constant maturity most nearly equal to the
period from such date of redemption or, in the case of a defeasance or discharge, the date of
deposit, to April 15, 2014; provided that if the period from such date of redemption or deposit to
April 15, 2014 is not equal to the constant maturity of a United States Treasury security for which
a weekly average yield is given, the Treasury Rate shall be obtained by linear interpolation
(calculated to the nearest one-twelfth of a year) from the weekly average yields of United States
Treasury securities for which such yields are given, except that if the period from such date of
redemption or deposit to April 15, 2014 is less than one year, the weekly average yield on actually
traded United States Treasury securities adjusted to a constant maturity of one year shall be used.
The Treasury Rate with respect to any Notes to be redeemed, shall be determined as of a date
selected by the Issuer that is on or after the date the notice of redemption with respect to such
Notes is provided to the Trustee and specified in the applicable notice of redemption.

     “Triggering Indebtedness” means any Indebtedness for borrowed money in excess of $10.0 million
aggregate principal amount (other than Non-Triggering Indebtedness).

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

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

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

     “Unrestricted Subsidiary” means any Subsidiary of the Issuer that is designated by the Board
of Directors of the Issuer as an Unrestricted Subsidiary pursuant to a resolution of the Board of
Directors, but only to the extent that such Subsidiary:

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

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

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

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

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

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

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

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

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

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

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

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

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

     Section 1.02. Other Definitions.

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

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     Section 1.03. Incorporation by Reference of Trust Indenture Act.

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

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

     “indenture securities” means the Notes;

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

     “indenture to be qualified” means this Indenture;

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

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

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

     Section 1.04. Rules of Construction.

     Unless the context otherwise requires:

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

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

     (3) “or” is not exclusive;

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

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

     (6) provisions apply to successive events and transactions;

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

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

     (9) the term “all or substantially all,” when applied to the Collateral or the assets
of the Issuer and its Restricted Subsidiaries shall not be read to mean “any” of the
Collateral or such assets as a result of the Issuer or the relevant Restricted Subsidiaries
being in the “zone of insolvency.”

ARTICLE 2

THE NOTES

     Section 2.01. Form and Dating.

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

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

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

     Section 2.02. Execution and Authentication.

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

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

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

     The Trustee will, upon receipt of a written order of the Issuer signed by an Officer (an
“Authentication Order”), authenticate Notes for original issue that may be validly issued under
this Indenture, including any Additional Notes. The aggregate principal amount of Notes
outstanding at any time may not

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exceed the aggregate principal amount of Notes authorized for
issuance by the Issuer pursuant to one or more Authentication Orders, except as provided in Section
2.07.

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

     Section 2.03. Registrar and Paying Agent.

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

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

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

     Section 2.04. Paying Agent to Hold Money in Trust.

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

     Section 2.05. Holder Lists.

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

     Section 2.06. Transfer and Exchange.

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

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

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

     Upon the occurrence of the preceding event in (1) above, Definitive Notes shall be issued in
such names as the Depositary shall instruct the Trustee in writing. Global Notes also may be
exchanged or replaced, in whole or in part, as provided in Sections 2.07 and 2.10. Every Note
authenticated and delivered in exchange for, or in lieu of, a Global Note or any portion thereof,
pursuant to this Section 2.06 or Section 2.07 or 2.10, shall be authenticated and delivered in the
form of, and shall be, a Global Note. A Global Note may not be exchanged for another Note other
than as provided in this Section 2.06(a), however, beneficial interests in a Global Note may be
transferred and exchanged as provided in Section 2.06(b), (c) or (f).

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

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

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

     (A) both:

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

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

     (B) both:

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

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

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

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

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

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

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

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

     (A) such exchange or transfer is effected pursuant to the Exchange Offer in
accordance with the Registration Rights Agreement and the holder of the beneficial
interest to be transferred, in the case of an exchange, or the transferee, in the
case of a transfer,

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certifies in the applicable Letter of Transmittal that it is not
(i) a Broker-Dealer, (ii) a Person participating in the distribution of the Exchange
Notes or (iii) a Person who is an Affiliate of the Issuer;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     (D) the Registrar receives the following:

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

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

and, in each such case set forth in this subparagraph (D), if the Registrar so requests or
if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable
to the Registrar to the effect that such exchange or transfer is in compliance with the
Securities Act and that

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the restrictions on transfer contained herein and in the Private
Placement Legend are no longer required in order to maintain compliance with the Securities
Act.

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

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

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

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

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

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

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

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

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

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     (G) if such Restricted Definitive Note is being transferred pursuant to an effective
registration statement under the Securities Act, a certificate to the effect set forth in
Exhibit B

hereto, including the certifications in item (3)(c) thereof, the Trustee will cancel
the Restricted Definitive Note, increase or cause to be increased the aggregate principal
amount of, in the case of clause (A) above, the appropriate Restricted Global Note, in the
case of clause (B) above, the 144A Global Note, in the case of clause (C) above, the
Regulation S Global Note, and in all other cases, the IAI Global Note.

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

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

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

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

     (D) the Registrar receives the following:

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

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

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

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

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

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

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

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

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

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

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

     (C) if the transfer will be made pursuant to any other exemption from the
registration requirements of the Securities Act, then the transferor must deliver a
certificate in the form of Exhibit B hereto, including the certifications,
certificates and Opinion of Counsel required by item (3) thereof, if applicable.

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

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

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

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

     (D) the Registrar receives the following:

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

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

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

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

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

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

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

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

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

     (1) Private Placement Legend.

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

“THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN
A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THE SECURITY
EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE
ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE
SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF
THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF THE
SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE ISSUER THAT (A) SUCH
SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (i) (a) TO A
PERSON WHO IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER
THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A,
(b) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE
SECURITIES ACT, (c) OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 UNDER THE SECURITIES ACT,
OR (d) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF
THE ISSUER SO REQUESTS), (ii) TO THE ISSUER, OR (iii) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER
APPLICABLE JURISDICTION, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER
IS REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE SECURITY EVIDENCED
HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN CLAUSE (A) ABOVE. NO
REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED
BY RULE 144 FOR RESALE OF THE SECURITY EVIDENCED HEREBY.

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

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

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

     UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN
DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY
TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY
OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK,
NEW YORK) (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER
ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN.”

     (3) OID Legend. To the extent required by Section 1275(c)(1)(A) of the Internal
Revenue Code of 1986, as amended, and Treasury Regulation Section 1.1275-3(b)(1), each Note
issued at a discount to its stated redemption price at maturity shall bear a legend (the
“OID Legend”) in substantially the following form (with any necessary amendments thereto to
reflect any amendments occurring after the Issue Date to the applicable sections):

“FOR THE PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED, THIS NOTE IS BEING ISSUED WITH ORIGINAL ISSUE
DISCOUNT. YOU MAY CONTACT THE ISSUER AT LIZ CLAIBORNE, INC., 1441 BROADWAY,
21ST FLOOR, NEW YORK, NY, 10018, ATTENTION: [TREASURER], AND THE ISSUER
WILL PROVIDE YOU WITH THE ISSUE PRICE, THE AMOUNT OF ORIGINAL

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ISSUE DISCOUNT, THE ISSUE DATE AND THE YIELD TO MATURITY OF THIS NOTE.”

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

     (i) General Provisions Relating to Transfers and Exchanges.

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

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

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

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

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

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

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

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

     (6) Prior to due presentment for the registration of a transfer of any Note, the Trustee, any
Agent and the Issuer may deem and treat the Person in whose name any Note is registered as the
absolute

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owner of such Note for the purpose of receiving payment of principal of and interest on
such Notes and for all other purposes, and none of the Trustee, any Agent or the Issuer shall be
affected by notice to the contrary.

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

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

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

     Section 2.07. Replacement Notes.

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

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

     Section 2.08. Outstanding Notes.

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

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

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

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

     Section 2.09. Treasury Notes.

     In determining whether the Holders of the required principal amount of Notes have concurred in
any direction, waiver or consent, Notes owned by the Issuer or any Guarantor, or by any Person
directly

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

     Section 2.10. Temporary Notes.

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

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

     Section 2.11. Cancellation.

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

     Section 2.12. Defaulted Interest.

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

ARTICLE 3

REDEMPTION

     Section 3.01. Optional Redemption.

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

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     Section 3.02. Mandatory Redemption.

     The Issuer will not be required to make any mandatory redemption or sinking fund payments with
respect to the Notes. The Issuer may at any time and from time to time purchase Notes in the open
market, in privately negotiated transactions or otherwise.

     Section 3.03. Notices to Trustee.

     If the Issuer elects to redeem Notes pursuant to Section 3.01, it shall notify the Trustee,
Registrar and each Paying Agent in writing of (i) the Section of this Indenture and the Notes
pursuant to which the redemption shall occur (including the relevant provision of the Notes), (ii)
the redemption date, (iii) the principal amount of Notes to be redeemed and (iv) the redemption
price. The Issuer shall give notice to the Trustee provided for in this paragraph at least 30 days
but not more than 60 days before a redemption date if the redemption is pursuant to Section 5 of
the Note, unless a shorter or longer period is acceptable to the Trustee. If fewer than all the
Notes are to be redeemed, the record date relating to such redemption shall be selected by the
Issuer and given to the Trustee. Any such notice pursuant to Section 3.01 may be cancelled at any
time prior to notice of such redemption being mailed to any Holder and shall thereby be void and of
no effect.

     Section 3.04. Selection of Notes to Be Redeemed.

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

     Notwithstanding anything else contained in this Section 3.04, the parties acknowledge and
agree that any partial redemption of a Global Note will be made by the Depository among the
Beneficial Owners in accordance with the rules and regulations of the Depository and that the
Trustee shall have no liability in connection with the selection of Beneficial Owners whose
interest in the Global Security will be redeemed or any other actions taken by the Depository in
connection therewith, and by accepting the Notes, the Holders shall waive and release any and all
such liability.

     Section 3.05. Notice of Redemption.

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

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

     (A) the redemption date;

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

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

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

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

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

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

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

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

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

     Section 3.06. Effect of Notice of Redemption.

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

     Section 3.07. Deposit of Redemption Price.

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

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

     Section 3.08. Notes Redeemed in Part.

     Upon surrender of a Note that is redeemed or purchased in part, the Issuer shall issue and,
upon receipt of an Authentication Order, the Trustee shall authenticate for the Holder at the
expense of the

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Issuer a new Note in principal amount equal to the unredeemed portion of the Note being redeemed
or purchased in part in the name of the Holder thereof.

ARTICLE 4

COVENANTS

     Section 4.01. Payment of Notes.

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

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

     Section 4.02. Maintenance of Office or Agency.

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

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

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

     Section 4.03. Reports.

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

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

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

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

     The Issuer will not take any action for the purpose of causing the SEC not to accept any such
filings. If, notwithstanding the foregoing, the SEC will not accept the Issuer’s filings for any
reason, the Issuer will post the reports required by this Section 4.03(a) on its website within the
time periods described above.

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

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

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

     Section 4.04. Compliance Certificate.

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

     (b) So long as any of the Notes are outstanding, the Issuer will deliver to the Trustee,
within five Business Days after any Officer becoming aware of any Default or Event of Default, an
Officer’s

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Certificate specifying such Default or Event of Default and what action the Issuer is
taking or proposes to take with respect thereto.

     Section 4.05. Taxes.

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

     Section 4.06. Stay, Extension and Usury Laws.

     The Issuer and each of the Guarantors covenants (to the extent that it may lawfully do so)
that it will not at any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this Indenture; and the
Issuer and each of the Guarantors (to the extent that it may lawfully do so) hereby expressly
waives all benefit or advantage of any such law, and covenants that it will not, by resort to any
such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law has been enacted.

     Section 4.07. Restricted Payments.

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

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

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

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

     (4) make any Restricted Investment

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

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

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

     (iii) such Restricted Payment, together with the aggregate amount of all other
Restricted Payments made by the Issuer and its Restricted Subsidiaries since the Issue Date
(excluding Restricted Payments permitted by clauses (2) through (12) of Section 4.07(b)), is
less than the sum, without duplication of:

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

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

     (C) to the extent that any Restricted Investment (other than a
Restricted Investment made in reliance on Section 4.07(b)(12) that was made after
the Issue Date is sold or otherwise liquidated or repaid, the amount of the cash
return of or on capital (or the Fair Market Value of any property or assets) with
respect to such Restricted Investment (less the cost of disposition, if any); plus

     (D) to the extent that any Unrestricted Subsidiary of the Issuer
designated as such after the Issue Date is redesignated as a Restricted Subsidiary
after the Issue Date, the Fair Market Value of the Issuer’s Restricted Investment
(without duplication of amounts that increase the amount available pursuant to
Section 4.07(b)(12) or clause (16) or (20) of the definition of Permitted
Investments) in such Restricted Subsidiary as of the date of such redesignation;
plus

     (E) without duplication of any increase pursuant to Section 4.07(a)(iii)(A) or
that increase the amount available pursuant to Section 4.07(b)(12) or clause (16) or
(20) of the definition of Permitted Investments, cash dividends received by the
Issuer or a Restricted Subsidiary of the Issuer after the Issue Date from an Unrestricted
Subsidiary of the Issuer, to the extent that such dividends were not otherwise
included in the Consolidated Net Income of the Issuer for such period.

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

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

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

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

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

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

     (b) the cash proceeds of key man life insurance policies received by the Issuer
or its Restricted Subsidiaries after the Issue Date; and in addition, cancellation
of Indebtedness owing to the Issuer or any Guarantor from any current or former
officer, director or employee (or any permitted transferees thereof) of the Issuer
or any of its Restricted Subsidiaries in connection with a repurchase of Equity
Interests of the Issuer or
any of its Restricted Subsidiaries from such Persons will not be deemed to
constitute a Restricted Payment for purposes of this Section 4.07 or any other
provisions of this Indenture;

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

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

     (7) so long as no Default or Event of Default has occurred and is continuing or would
be caused thereby, upon the occurrence of a Change of Control after completion of the offer
to repurchase Notes pursuant to Section 4.15, any purchase or redemption of Indebtedness of
the Issuer that is contractually subordinated to the Notes or any Note Guarantee that is
required to be repurchased or redeemed pursuant to the terms thereof as a result of such
Change of Control, at a purchase price not greater than 101% of the outstanding principal
amount thereof (plus accrued and unpaid interest); provided that, prior to such repayment or
repurchase, the Issuer shall have made the Change of Control Offer with respect to the Notes
as required by Section 4.15, and the Issuer shall have repurchased all Notes validly
tendered for payment and not withdrawn in connection with such Change of Control Offer;

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

     (9) Restricted Payments made from the net proceeds of the issuance of unsecured
convertible Indebtedness of the Issuer pursuant to customary bond hedge/warrant or similar
derivatives transactions entered into in connection with the issuance of such convertible
securities, to the extent the issuance of such convertible Indebtedness is permitted by
Section 4.09 and (b) Restricted Payments made in connection with customary cash settlement
features upon conversion of any unsecured convertible Indebtedness of the Issuer;

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

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

     (12) so long as no Default or Event of Default has occurred and is continuing after
giving effect thereto, other Restricted Payments in an aggregate amount not to exceed

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$25.0
million, net of any return on any Restricted Investments, made pursuant to this Section
4.07(b)(12) received by the Issuer or any Restricted Subsidiary.

     (c) The amount of all Restricted Payments (other than cash) will be the Fair Market Value on
the date of the Restricted Payment of the asset(s) or securities proposed to be transferred or
issued by the Issuer or such Restricted Subsidiary, as the case may be, pursuant to the Restricted
Payment. The Fair Market Value of any assets or securities that are required to be valued by this
Section 4.07(c) will be determined by the Issuer or, if such Fair Market Value is in excess of
$20.0 million, by the Board of Directors of the Issuer whose resolution with respect thereto shall
be delivered to the Trustee.

     (d) For purposes of determining compliance with this Section 4.07, in the event that a
proposed Restricted Payment (or portion thereof) meets the criteria of more than one of the
categories of Restricted Payments described in Sections 4.07(b)(1) through 4.07(b)(12) above, or is
entitled to be incurred pursuant to Section 4.07(a), the Issuer will be entitled to classify or
reclassify (based on circumstances existing at the time of such reclassification) such Restricted
Payment or portion thereof in any manner that complies with this Section 4.07 and such Restricted
Payment will be treated as having been made pursuant to only such clause or clauses or Section
4.07(a).

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

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

     (1) pay dividends or make any other distributions on its Capital Stock to the Issuer or
any of its Restricted Subsidiaries or with respect to any other interest or participation
in, or measured by, its profits, or pay any indebtedness owed to the Issuer (it being
understood that the priority of any preferred stock in receiving dividends or liquidating
distributions prior to dividends or liquidating distributions being paid on common stock
shall not be deemed a restriction on the ability to make distributions on Capital Stock);

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

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

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

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

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

     (3) applicable law, rule, regulation, order, approval, license, permit or similar
restriction (whether or not existing on the Issue Date);

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

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

     (6) purchase money obligations for property acquired in the ordinary course of business
and Capital Lease Obligations that impose restrictions on the property purchased or leased
(plus improvements and accessions to such property, or assets or proceeds or distributions
thereof) of the nature described in Section 4.08(a)(3);

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

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

     (9) Liens permitted to be incurred under Section 4.12 that limit the right of the
debtor to dispose of the assets subject to such Liens(plus improvements and accessions to
such property, or assets or proceeds or distributions thereof);

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

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

     (12) customary provisions in Permitted Hedging Obligations;

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

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

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

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

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

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

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

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

     (21) restrictions or conditions contained in any trading, netting, operating,
construction, service, supply, purchase or other agreement to which the Issuer or any of its
Restricted Subsidiaries is a party entered into in the ordinary course of business; provided
that such agreement prohibits the encumbrance of solely the property or assets of the Issuer
or such Restricted Subsidiary that are the subject of such agreement, the payment rights
arising thereunder or the proceeds thereof and does not extend to any other asset or
property of the Issuer or such Restricted Subsidiary or the assets or property of any other
Restricted Subsidiary.

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

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

     (a) The Issuer will not, and will not permit any of its Restricted Subsidiaries to, directly
or indirectly, create, incur, issue, assume, guarantee or otherwise become directly or indirectly
liable, contingently or otherwise, with respect to (collectively, “incur”) any Indebtedness
(including Acquired Debt), and the Issuer will not issue any Disqualified Stock and will not permit
any of its Restricted Subsidiaries to issue any shares of preferred stock; provided, however, that
the Issuer may incur Indebtedness (including Acquired Debt) or issue Disqualified Stock, and the
Guarantors may incur Indebtedness (including Acquired Debt) or issue preferred stock, if the Fixed
Charge Coverage Ratio for the Issuer’s most recently ended four full fiscal quarters for which
internal financial statements are available immediately preceding the date on which such additional
Indebtedness is incurred or such Disqualified Stock or preferred stock is

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issued, as the case may
be, would have been at least 2.0 to 1.0, determined on a pro forma basis (including a pro forma
application of the net proceeds therefrom), as if the additional Indebtedness had been incurred or
the Disqualified Stock or the preferred stock had been issued, as the case may be, at the beginning
of such four-quarter period.

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

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

     (a) $450.0 million less the amount applied to permanently repay Indebtedness
pursuant to Section 4.10(c)(1)(B)(i); and

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

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

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

     (4) the incurrence by the Issuer or any of its Restricted Subsidiaries of Attributable
Debt in connection with a sale and leaseback transaction or Indebtedness represented by
Capital Lease Obligations, mortgage financings or purchase money obligations, in each case,
incurred for the purpose of financing or reimbursing all or any part of the purchase price
or cost of design, development, construction, installation, expansion, repair or improvement
of property (either real or personal), plant or equipment or other fixed or capital assets
used or useful in the business of the Issuer or any of its Restricted Subsidiaries (in each
case, whether through the direct purchase of such assets or the purchase of Equity Interests
of any Person owning such assets), which incurrence occurs within 365 days of such purchase,
design, development, construction, installation, expansion, repair or improvement in an
aggregate principal amount, including all Permitted Refinancing Indebtedness incurred to renew, refund, refinance, replace, defease or
discharge any Indebtedness incurred pursuant to this clause (d), not to exceed, outstanding
as of any date of incurrence of Indebtedness pursuant to this clause (d), the greater of (x)
$30.0 million and (y) 2.0% of Total Assets;

     (5) the incurrence by the Issuer or any of its Restricted Subsidiaries of Permitted
Refinancing Indebtedness in exchange for, or the net proceeds of which are used to extend,
renew, refund, refinance, replace, defease or discharge Indebtedness (other than
intercompany Indebtedness) that was permitted to be incurred under Section 4.09(a) or clause
(2), (3), (5) or (20) of this Section 4.09(b);

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

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

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

will be deemed, in each case, to constitute an incurrence of such Indebtedness by the Issuer
or such Restricted Subsidiary, as the case may be, that was not permitted by this clause
(6);

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

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

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

will be deemed, in each case, to constitute an issuance of such preferred stock by such
Restricted Subsidiary that was not permitted by this clause (7);

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

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

     (10) the incurrence by the Issuer or any of its Restricted Subsidiaries of Indebtedness
in respect of workers’ compensation claims, unemployment or other insurance or
self-insurance obligations, health, disability or other benefits to employees or former
employees and their families, bankers’ acceptances, performance, completion and surety
bonds, completion guarantees and similar obligations in the ordinary course of business;

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

     (12) the incurrence by the Issuer or any of its Restricted Subsidiaries of Indebtedness
arising from customary agreements of the Issuer or such Restricted Subsidiary providing for
indemnification, adjustment of purchase price or similar obligations, in each case, incurred
or assumed in connection with the acquisition or sale or other disposition of any business,
assets or Capital Stock of the Issuer or any of its Restricted Subsidiaries, other than
guarantees of Indebtedness incurred by any Person acquiring all or any portion of such
business, assets or Capital Stock;

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

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

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

     (16) (a) the incurrence by a Foreign Subsidiary of the Issuer of additional
Indebtedness in an aggregate principal amount not to exceed the greater of (x) $25.0 million
and (y) 2.0% of Total Assets at any time outstanding;

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

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

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

     (20) Indebtedness, Disqualified Stock or preferred stock of Persons that are acquired
by the Issuer or any Restricted Subsidiary or merged into the Issuer or a Restricted
Subsidiary in accordance with the terms of this Indenture; provided that such Indebtedness,
Disqualified Stock

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or preferred stock is not incurred in contemplation of such acquisition
or merger; provided further that after giving pro forma effect to such acquisition or
merger, either:

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

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

     (21) the incurrence by a Restricted Subsidiary organized under the laws of Germany of
indebtedness under (i) direct pension commitments or (ii) old-age part-time arrangements, to
the extent such Restricted Subsidiary is required by applicable law to enter into such
old-age part-time arrangements; provided that statutory insolvency protection measures for
liabilities under (i) and (ii) are fulfilled;

     (22) the incurrence of any joint and several liability by a Restricted Subsidiary
arising under any fiscal unity (fiscale eenheid) among Subsidiaries of the Issuer organized
under the laws of the Netherlands and (ii) the incurrence of any Guarantee granted pursuant
to a declaration of joint and several liability used for the purpose of Section 2:403 of the
Dutch Civil Code (Burgerlijk Wetboek) (and any residual liability under such declaration
arising pursuant to section 2:404(2) of the Dutch Civil Code) by Restricted Subsidiaries of
the Issuer organized under the laws of the Netherlands;

     (23) Indebtedness of Mexx Europe incurred pursuant to the Unitex Agreement, in an
aggregate principal amount not to exceed $2.5 million at any time outstanding;

     (24) Any unsecured guarantee by the Issuer or any Restricted Subsidiary in respect of a
purchase of the Equity Interests of Kate Spade Japan Co., Ltd; and

     (25) the incurrence by the Issuer or any of its Restricted Subsidiaries of additional
Indebtedness or Disqualified Stock in an aggregate principal amount (or accreted value, as
applicable) at any time outstanding, including all Permitted Refinancing Indebtedness
incurred to renew, refund, refinance, replace, defease or discharge any Indebtedness
incurred pursuant to this clause (25), not to exceed $25.0 million.

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

     (d) For purposes of determining compliance with this Section 4.09, in the event that an item
of proposed Indebtedness or Disqualified Stock meets the criteria of more than one of the
categories of Permitted Debt described in clauses (1) through (25) above or is entitled to be
incurred pursuant to Section 4.09(a), the Issuer will be permitted to classify all or a portion of
such item of Indebtedness or Disqualified Stock on the date of its incurrence, or later reclassify
all or a portion of such item of Indebtedness or Disqualified Stock (based on circumstances
existing on the date of such reclassification), in any manner that complies with this Section 4.09,
except that Indebtedness outstanding under the ABL Facility on the Issue Date will at all times be
deemed to have been incurred on such date in reliance on the exception provided by Section
4.09(b)(1). The accrual of interest, the accretion or amortization of original issue discount, the
payment of interest on any Indebtedness in the form of additional Indebtedness with the

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same terms,
the reclassification of preferred stock as Indebtedness due to a change in accounting principles,
and the payment of dividends on Disqualified Stock in the form of additional shares of the same
class of Disqualified Stock will not be deemed to be an incurrence of Indebtedness or an issuance
of Disqualified Stock for purposes of this Section 4.09; provided, in each such case, that the
amount of any such accrual, accretion, or payment is included in Fixed Charges of the Issuer as
accrued. Notwithstanding any other provision of this Section 4.09, the maximum amount of
Indebtedness that the Issuer or any Restricted Subsidiary may incur pursuant to this Section 4.09
shall not be deemed to be exceeded solely as a result of fluctuations in exchange rates or currency
values.

     (e) The amount of any Indebtedness outstanding as of any date will be:

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

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

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

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

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

     Section 4.10. Asset Sales.

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

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

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

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

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

     (c) any Designated Non-cash Consideration received by the Issuer or any
Restricted Subsidiary thereof in such Asset Sale having a Fair Market Value, taken
together with all other Designated Non-cash Consideration received pursuant to this
clause

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(c) that is at that time outstanding, not to exceed the greater of (x) $15.0
million and (y) 1.0% of Total Assets at the time of receipt of such Designated
Non-cash Consideration, with the Fair Market Value of each item of Designated
Non-cash Consideration being measured at the time received without giving effect to
subsequent changes in value; and

     (d) any stock or assets of the kind referred to in clause (1) or (3) of Section
4.10(b) (in the case of a Sale of Notes Priority Collateral) or clause (2) or (4) of
Section 4.10(c) (in any other case); provided that, to the extent any property or
assets are received pursuant to clause (b), (c) or (d) of this Section 4.10(a)(2) in
respect of a Sale of Notes Priority Collateral, such property or assets are pledged
to secure the Notes to the extent required in the Security Documents.

     (b) Within 360 days after the receipt of any Net Proceeds from any Sale of Notes Priority
Collateral or a Casualty or Condemnation Event in which Net Proceeds are received in respect of the
condemnation, destruction, damage or loss of any Notes Priority Collateral, the Issuer (or the
applicable Restricted Subsidiary, as the case may be) may apply those Net Proceeds at its option:

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

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

     (3) to acquire other assets that are pledged as Notes Priority Collateral and
designated to the Trustee as such, and that are used or useful in a Permitted Business;
and/or

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

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

     (1) (A) in the case of Net Proceeds from any Asset Sale of assets of any non-Guarantor,
to repay Indebtedness of such non-Guarantor or (B) in the case of any other Net Proceeds, to
repay (i) ABL Obligations, (ii) Existing Euro Notes or (iii) Permitted Additional Pari Passu
Obligations; provided that, in the case of this clause (iii), the Issuer shall equally and
ratably reduce Obligations under the Notes (based on the respective amount of outstanding
Permitted Additional Pari Passu Obligations and Notes) as provided under Article 3, through
open market purchases or otherwise by making an offer (in accordance with the procedures set
forth below for a Net Proceeds Offer except that such offer shall be solely to the Holders
of Notes) to all Holders to purchase their Notes at 100% of the principal amount thereof,
plus the amount of accrued but unpaid interest, if any, on the amount of the Notes that
would otherwise be prepaid;

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

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

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

     (d) Pending the final application of any Net Proceeds (other than Net Proceeds from any Sale
of Notes Priority Collateral or a Casualty or Condemnation Event directly attributable to any Notes
Priority Collateral), the Issuer or the applicable Restricted Subsidiary, as the case may be, may
temporarily reduce revolving credit borrowings or otherwise invest the Net Proceeds in any manner
that is not prohibited by this Indenture. Any binding commitment to apply Net Proceeds to invest
in accordance with clause (1), (2) or (3) of Section 4.10(b) (in the case of Net Proceeds of Notes
Priority Collateral) or clause (2), (3) or (4) of Section 4.10(c) (in the case of any other Net
Proceeds) shall be treated as a permitted final application of Net Proceeds from the date of such
commitment so long as the Issuer or such Restricted Subsidiary enters into such commitment with the
good faith expectation that such Net Proceeds will be applied to satisfy such commitment within 180
days of such commitment; provided that if such commitment is later cancelled, terminated or
otherwise not consummated after the 360-day period for any reason, then such Net Proceeds shall
constitute “Excess Proceeds”.

     (e) Any Net Proceeds from Asset Sales (including Sales of Notes Priority Collateral, but
excluding Excluded Proceeds) or Casualty or Condemnation Events related to Notes Priority
Collateral that are not applied or invested as provided in Section 4.10(b) (in the case of Sales of
Notes Priority Collateral and Casualty or Condemnation Events in respect of Notes Priority
Collateral) or Section 4.10(c) (in the case of Asset Sales other than Sales of Notes Priority
Collateral and Casualty or Condemnation Events in respect of assets other than Notes Priority
Collateral) will constitute “Excess Proceeds.” When the aggregate amount of Excess Proceeds exceeds
$15.0 million, within 30 days thereafter, the Issuer will make an offer (a “Net Proceeds Offer”) to
all Holders of Notes and to the holders of any Permitted Additional Pari Passu Obligations
containing provisions similar to those set forth in this Section 4.10 with respect to asset sales
to purchase the maximum principal amount of Notes and such other Permitted Additional Pari Passu
Obligations (plus all accrued interest and the amount of all fees and expenses, including premiums,
incurred in connection therewith) that may be purchased out of the Excess Proceeds. The offer
price in any Net Proceeds Offer will be equal to 100% of the principal amount, plus accrued and
unpaid interest, if any, to, but not including the date of purchase, and will be payable in cash.

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

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Net Proceeds Offer. Payment for any Notes so purchased will be made in the same manner as interest
payments are made.

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

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

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

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

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

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

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

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

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

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

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

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

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

     (k) The Issuer will comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent such laws and regulations are
applicable in connection with each repurchase of Notes pursuant to a Change of Control or a Net
Proceeds Offer. To
the extent that the provisions of any securities laws or regulations conflict with the
provisions of this Section 4.10, the Issuer will comply with the applicable securities laws and
regulations and will not be deemed to have breached its obligations under this Section 4.10 by
virtue of such compliance.

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

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     Section 4.11. Transactions with Affiliates.

     (a) The Issuer will not, and will not permit any of its Restricted Subsidiaries to, make any
payment to, or sell, lease, transfer or otherwise dispose of any of its properties or assets to, or
purchase any property or assets from, or enter into or make or amend any transaction, contract,
agreement, understanding, loan, advance or guarantee with, or for the benefit of, any Affiliate of
the Issuer (each an “Affiliate Transaction”) involving aggregate payments in excess of $5.0
million, unless:

     (1) the Affiliate Transaction is on terms that are no less favorable to the Issuer or
the relevant Restricted Subsidiary, taken as a whole, than those that would have been
obtained in a comparable transaction by the Issuer or such Restricted Subsidiary with a
Person that is not an Affiliate of the Issuer; and

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

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

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

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

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

     (4) payment of reasonable fees and reimbursements of expenses of directors, experts and
consultants;

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

     (6) Restricted Payments and Permitted Investments that do not violate the provisions of
Section 4.07 of this Indenture;

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

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

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

     (10) purchase or sale of goods and/or services in the ordinary course of business on
terms that are no less favorable to the Issuer or the relevant Restricted Subsidiary than
those that would have been obtained in a comparable transaction by the Issuer or such
Restricted Subsidiary with a Person that is not an Affiliate of the Issuer;

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

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

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

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

     (15) transactions between a Receivables Entity and any Person in which the Receivables
Entity has an Investment in connection with a Qualified Receivables Transaction;

     (16) pledges of Equity Interests of Unrestricted Subsidiaries;

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

     (18) transactions in which the Issuer or any Restricted Subsidiary, as the case may be,
delivers to the trustee a letter from an accounting, appraisal or investment banking firm of
national standing stating that such transaction is fair to the Issuer or such Restricted
Subsidiary, as applicable, from a financial point of view or meets the requirements of
Section 4.11(a)(1);

     (19) any merger, consolidation or reorganization of the Issuer with an Affiliate of the
Issuer solely for the purpose of (a) forming or collapsing a holding company structure or
(b) reincorporating the Issuer in a new jurisdiction; and

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     (20) entering into an agreement that provides registration rights to the equityholders
of the Issuer or any parent of the Issuer or amending such agreement with shareholders of
the Issuer or any parent of the Issuer and the performance of such agreements.

     Section 4.12. Liens.

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

     Section 4.13. Business Activities.

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

     Section 4.14. Corporate Existence.

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

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

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

     Section 4.15. Offer to Repurchase upon Change of Control.

     (a) Upon the occurrence of a Change of Control, the Issuer will make an offer (a “Change of
Control Offer”) to each Holder to repurchase all or any part (equal to $2,000 or an integral
multiple of $1,000 in excess thereof) of that Holder’s Notes at a purchase price in cash equal to
101% of the aggregate principal amount of Notes repurchased, plus accrued and unpaid interest and
Additional Interest, if any, on the Notes repurchased to (but not including) the date of purchase,
subject to the rights of Holders on the relevant Record Date to receive interest due on the
relevant Interest Payment Date (the “Change of Control Payment”). Within 30 days following any
Change of Control, the Issuer will send a notice to each Holder with a copy to the Trustee
describing the transaction or transactions that constitute the Change of Control and stating:

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

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

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

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

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

     (6) that Holders will be entitled to withdraw their election if the Paying Agent
receives, not later than the close of business on the second Business Day preceding the
Change of Control Payment Date, a facsimile transmission or letter setting forth the name of
the Holder, the principal amount of Notes delivered for purchase, and a statement that such
Holder is withdrawing his election to have the Notes purchased; and

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

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

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

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

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

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

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

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

     Section 4.16. [Reserved].

     Section 4.17. Payments for Consent.

     The Issuer will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, pay or cause to be paid any consideration to or for the benefit of any Holder of Notes
for or as an inducement to any consent, waiver or amendment of any of the terms or provisions of
this Indenture, the Security Documents or the Notes unless such consideration is offered to be paid
and is paid to all Holders of the Notes that consent, waive or agree to amend in the time frame set
forth in the solicitation documents relating to such consent, waiver or agreement.

     Section 4.18. Additional Note Guarantees.

     If any of the Issuer’s Restricted Subsidiaries (other than a Foreign Subsidiary or a
Receivables Entity) that is not a Guarantor incurs (including by way of Guarantee) any Triggering
Indebtedness, then that Restricted Subsidiary will become a Guarantor of the Notes and execute a
supplemental indenture and Security Documents, if applicable, deliver an Opinion of Counsel and an
Officers’ Certificate as to the authorization, execution, delivery and enforceability of such
supplemental indenture and Security Documents satisfactory to the Trustee (and, if applicable, the
Collateral Agent) within 20 Business Days after the date on which it incurs such Triggering
Indebtedness and take all action required by the Security Documents to perfect the liens created
thereunder.

     Section 4.19. Designation of Restricted and Unrestricted Subsidiaries.

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

     Any designation of a Subsidiary of the Issuer as an Unrestricted Subsidiary will be evidenced
to the Trustee by filing with the Trustee a certified copy of a resolution of the Board of
Directors giving effect to such designation and an Officer’s Certificate certifying that such
designation complied with the preceding conditions and was permitted by Section 4.07. If, at any
time, any Unrestricted Subsidiary would fail to meet the preceding requirements as an Unrestricted
Subsidiary, it will thereafter cease to be

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an Unrestricted Subsidiary for purposes of this
Indenture and any Indebtedness of such Unrestricted Subsidiary will be deemed to be incurred by a
Restricted Subsidiary of the Issuer as of such date and, if such Indebtedness is not permitted to
be incurred as of such date under Section 4.09, the Issuer will be in default of such covenant.
The Board of Directors of the Issuer may at any time designate any Unrestricted Subsidiary to be a
Restricted Subsidiary of the Issuer; provided that such designation will be deemed to be an
incurrence of Indebtedness by a Restricted Subsidiary of the Issuer of any outstanding Indebtedness
of such Unrestricted Subsidiary, and such designation will only be permitted if (1) such
Indebtedness is permitted under Section 4.09, calculated on a pro forma basis as if such
designation had occurred at the beginning of the four-quarter reference period; and (2) no Default
or Event of Default would be in existence following such designation.

     Section 4.20. Suspension of Covenants

     (a) During any period of time after the Issue Date that (i) the corporate family rating of the
Issuer by both Moody’s and S&P is an Investment Grade Rating and (ii) no Default has occurred and
is continuing (the occurrence of the events described in the foregoing clauses (i) and (ii) being
collectively referred to as a “Covenant Suspension Event”), the Issuer and its Restricted
Subsidiaries will not be subject to the provisions of Sections 4.07, 4.08, 4.09, 4.10 and 4.11
(collectively, the “Suspended Covenants”). Additionally, at such time as the above
referenced covenants are suspended (a “Suspension Period”), the Liens securing the Note
Obligations will permanently terminate (and the Issuer and its Restricted Subsidiaries will not be
required to reinstate such Liens even if a Reversion Date occurs) so long as all Liens securing
Permitted Additional Pari Passu Lien Obligations are concurrently terminated.

     (b) Upon the occurrence of a Covenant Suspension Event, any Guarantees of the Subsidiary
Guarantors, if any, will also be suspended as of such date.

     (c) In the event that the Issuer and the Restricted Subsidiaries are not subject to the
Suspended Covenants for any period of time as a result of the foregoing, and on any subsequent date
(the “Reversion Date”) one or both of the Rating Agencies withdraws its Investment Grade
Rating or downgrades the rating assigned to the Notes below an Investment Grade Rating, then the
Issuer and the Re
stricted Subsidiaries will thereafter again be subject to the Suspended Covenants with respect
to future events and the Guarantees, if any, of any Subsidiary Guarantors will be reinstated if
such guarantees are then required by the terms of this Indenture. The period of time between the
Suspension Date and the Reversion Date is referred to in this Indenture as the “Suspension
Period.”

     (d) Notwithstanding that the Suspended Covenants may be reinstated, no Default or Event of
Default will be deemed to have occurred as a result of a failure to comply with the Suspended
Covenants during the Suspension Period (or upon termination of the Suspension Period or after that
time based solely on events that occurred during the Suspension Period).

     (e) On each Reversion Date, all Indebtedness incurred during the Suspension Period prior to
such Reversion Date will be deemed to be Indebtedness in existence on the Issue Date, except that
Indebtedness under the ABL Facility shall be deemed incurred under Section 4.09(b)(a), to the
extent permitted thereby. For purposes of calculating the amount available to be made as Restricted
Payments under Section 4.07(a)(iii) after any Reversion Date, calculations under such covenant
shall be made as though such covenant had been in effect during the entire period of time after the
Issue Date (including the Suspension Period); provided, that the amount available to be made as
Restricted Payments on the Reversion Date shall not be reduced to below zero solely as a result of
such Restricted Payments. In addition, events during the Suspension Period that, if not for the
suspension of such covenants, would have increased the amount available to be made as Restricted
Payments will increase the amount available to be made as Restricted Payments under Section
4.07(a)(iii). No Default or Event of Default shall be deemed to have

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occurred on the Reversion
Date as a result of any actions taken by the Issuer or its Restricted Subsidiaries during the
Suspension Period.

     (f) The Issuer shall deliver promptly to the Trustee an Officer’s Certificate notifying the
Trustee of any Covenant Suspension Event or Reversion Date, as the case may be, pursuant to this
Section.

ARTICLE 5

SUCCESSORS

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

     The Issuer shall not, directly or indirectly: (i) consolidate, merge or amalgamate with or
into another Person (whether or not the Issuer is the surviving corporation); or (2) sell, assign,
transfer, convey or otherwise dispose of all or substantially all of the properties or assets of
the Issuer and its Restricted Subsidiaries taken as a whole, in one or more related transactions,
to another Person, unless:

     (1) either:

     (A) the Issuer is the surviving corporation; or

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

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

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

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

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

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     Section 5.01(c) and (d) will not apply to: a merger, amalgamation or consolidation of the
Issuer with an Affiliate solely for the purpose of (a) reorganizing the Issuer as a different type
of entity; provided that in the case where the surviving entity in such merger, amalgamation or
consolidation is not a corporation, a corporation becomes (or has previously become) a co-issuer of
the Notes, or (b) reincorporating or reorganizing the Issuer in another jurisdiction.

     This Section 5.01 will not apply to any consolidation, amalgamation or merger, or any sale,
assignment, transfer, conveyance, lease or other disposition of assets between or among the Issuer
and its Restricted Subsidiaries.

     Section 5.02. Successor Corporation Substituted.

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

ARTICLE 6

DEFAULTS AND REMEDIES

     Section 6.01. Events of Default.

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

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

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

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

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

     (5) default under any mortgage, indenture or instrument under which there may be issued
or by which there may be secured or evidenced any Indebtedness (other than intercompany
Indebtedness) for money borrowed by the Issuer or any of its Restricted Subsidiaries (or the

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payment of which is guaranteed by the Issuer or any of its Restricted Subsidiaries), whether
such Indebtedness or Guarantee now exists, or is created after Issue Date, if that default:

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

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

and, in each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a Payment Default
or the maturity of which has been so accelerated, aggregates $20.0 million or more;

     (6) failure by the Issuer, any Restricted Subsidiary that is a Significant Subsidiary
or any group of Restricted Subsidiaries of the Issuer that together would constitute a
Significant Subsidiary to pay final and non-appealable judgments entered by a court or
courts of competent jurisdiction aggregating in excess of $20.0 million (net of any amounts
covered by insurance or pursuant to which the Issuer is indemnified to the extent that the
third party under such agreement acknowledges its obligations thereunder), which judgments
are not paid, discharged or stayed for a period of 60 days and, in the event such judgment
is covered by insurance, an enforcement proceeding has been commenced by any creditor upon
such judgment or decree that is not promptly stayed;

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

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

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

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

     (D) makes a general assignment for the benefit of its creditors or a moratorium
or similar arrangement is declared or instituted with its creditors,

     (E) generally is not paying its debts as they become due; or admits in writing
its inability to pay its debts as such debts become due or its directors or other
officers request the appointment of, or give notice of their intention to appoint, a
receiver, receiver manager, administrative receiver, administrator, liquidator or
other officer having similar powers over its property, or

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

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     (8) a court of competent jurisdiction enters an order or decree (which oorder or
decree remains unstayed and in effect for more than 60 consecutive days) under any
Bankruptcy Law that:

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

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

     (C) orders the liquidation, administration or receivership of the Issuer or
any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of
Restricted Subsidiaries of the Issuer that, taken together, would constitute a
Significant Subsidiary; or

     (9) except as permitted by Section 10.05, this Indenture, any Note Guarantee of any
Restricted Subsidiary of the Issuer that is a Significant Subsidiary or any group of
Restricted Subsidiaries of the Issuer that together would constitute a Significant
Subsidiary is held in any judicial proceeding to be unenforceable or invalid or ceases for
any reason to be in full force and effect, or any Guarantor, or any Person acting on behalf
of any Guarantor, denies or disaffirms its obligations under its Note Guarantee; or

     (10) unless all of the Collateral has been released from the Note Liens in
accordance with the provisions of the Security Documents, the default, repudiation or
disaffirmation by the Issuer or any of the Guarantors of any of their obligations under the
Security Documents (other than by reason of (a) a release of such obligation or Lien related
thereto in accordance with this Indenture or the Security Documents or (b) the failure of
the trustee to maintain possession of certificates, instruments or other documents actually
delivered to it representing securities or other possessory collateral pledged under the
Security Documents), which default, repudiation or disaffirmation results in Collateral
having an aggregate Fair Market Value in excess of $15.0 million not being subject to a
valid, perfected security interest in favor of the Collateral Agent under any applicable law
(other than the law of any foreign jurisdiction) (to the extent required under the Security
Documents), or a determination in a judicial proceeding that the Security Documents are
unenforceable or invalid against the Issuer or any of the Guarantors for any reason with
respect to Collateral having an aggregate Fair Market Value of $15.0 million or more;
provided that such default, repudiation, disaffirmation or determination is not rescinded,
stayed, or waived by the Persons having such authority pursuant to the Security Documents or
otherwise cured within 60 days after the Issuer receives written notice thereof specifying
such occurrence from the Trustee or the Holders of at least 25% of the outstanding principal
amount of the Notes demanding that such default be remedied.

For the avoidance of doubt, no Default or Event of Default shall be deemed to have occurred as a
result of any action or event that occurred prior to a restatement of the financial statements of
the Issuer or its Subsidiaries, to the extent (i) such financial statements were prepared in
accordance in accordance with

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GAAP or IFRS, as the case may be, at the time such action or event
occurred and (ii) such action or event was permitted at the time such action or event occurred
based on the financial statements of the Issuer and its Subsidiaries in existence at such time.

     Section 6.02. Acceleration.

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

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

     Section 6.03. Other Remedies.

     If an Event of Default occurs and is continuing, subject to the Intercreditor Agreement, the
Trustee may pursue any available remedy to collect the payment of principal, premium and Additional
Interest, if any, and interest on the Notes or to enforce the performance of any provision of the
Note Documents.

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

     Section 6.04. Waiver of Past Defaults.

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

     Section 6.05. Control by Majority.

     Subject to the Intercreditor Agreement, Holders of a majority in aggregate principal amount of
the then outstanding Notes may direct the time, method and place of conducting any proceeding for
exercising any remedy available to the Trustee or exercising any trust or power conferred on it.
However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture
that the Trustee determines may be unduly prejudicial to the rights of other Holders of Notes or
that may subject the Trustee to personal liability or expense. Notwithstanding the foregoing, the
Trustee shall have the right to select and retain counsel of its choosing to represent of in any
such proceedings.

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     Section 6.06. Limitation on Suits.

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

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

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

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

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

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

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

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

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

     Section 6.08. Collection Suit by Trustee.

     If an Event of Default specified in Section 6.01 (1) or (2) occurs and is continuing, subject
to the Intercreditor Agreement, without the possession of any of the Notes or the production
thereof in any proceeding related thereto, the Trustee is authorized to recover judgment in its own
name and as trustee of an express trust against the Issuer and Guarantors for the whole amount of
principal of, premium and Additional Interest, if any, and interest remaining unpaid on, the Notes
and interest on overdue principal and, to the extent lawful, interest and such further amount as
shall be sufficient to cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Trustee (including without limitation any
amounts due to the Trustee pursuant to Section 7.7 hereof), its agents and counsel.

     Section 6.09. Trustee May File Proofs of Claim.

     Subject to the Intercreditor Agreement, the Trustee is authorized to file such proofs of claim
and other papers or documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel) and the Holders of the Notes allowed in any judicial
proceedings relative to the Issuer or the Issuer (or any other obligor upon the Notes), its
creditors or its property and shall be entitled and empowered to collect, receive and distribute
any money or other property payable or deliverable

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

     Section 6.10. Priorities.

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

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

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

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

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

     Section 6.11. Undertaking for Costs.

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

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ARTICLE 7

TRUSTEE

     Section 7.01. Duties of Trustee.

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

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

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

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

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

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

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

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

     (d) Whether or not therein expressly so provided, every provision of this Indenture that
in any way relates to the Trustee is subject to Sections 7.01 and 7.02 hereof.

     (e) No provision of this Indenture will require the Trustee to expend or risk its own
funds or incur any liability. The Trustee and the Collateral Agent will be under no obligation to
exercise any of their respective rights and powers under this Indenture or the Security Documents
at the request of any Holders, unless such Holder has offered to the Trustee and/or the Collateral
Agent security and indemnity satisfactory to it, in its sole discretion, against any loss,
liability or expense.

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

     Section 7.02. Rights of Trustee.

     (a) The Trustee may conclusively rely upon and shall be fully protected in acting or
refraining from acting 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 takes, suffers or omits to take any action hereunder, it may
require an Officer’s Certificate or an Opinion of Counsel or both. The Trustee will not be liable
for any action it takes or omits to take in good faith in reliance on such Officer’s Certificate or
Opinion of Counsel. The Trustee may consult with counsel of the Trustee’s own choosing and the
written advice of such counsel or any Opinion of Counsel will be full and complete authorization
and protection from liability in respect of any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon.

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

     (d) The Trustee will not be liable for any action it takes or omits to take in good faith
that it believes to be authorized or within the rights or powers conferred upon it by this
Indenture. Any request or direction of the Issuer mentioned herein shall be sufficiently evidenced
by an Officer’s Certificate and any resolution of the Board of Directors may be sufficiently
evidenced by a board resolution. Whenever in the administration of this Indenture the Trustee
shall deem it desirable that a matter be proved or established prior to taking, suffering or
omitting any action hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, conclusively rely upon an Officer’s
Certificate.

     (e) Unless otherwise specifically provided in this Indenture, any demand, request,
direction or notice from the Issuer will be sufficient if signed by an Officer of the Issuer.

     (f) The Trustee will be under no obligation to exercise any of the rights or powers vested
in it by this Indenture at the request or direction of any of the Holders unless such Holders have
offered to the Trustee indemnity or security satisfactory to the Trustee, in its sole discretion,
against the losses, liabilities and expenses that might be incurred by it in compliance with such
request or direction.

     (g) Except with respect to Section 4.01 hereof, the Trustee shall have no duty to inquire
as to the performance by the Issuer with respect to the covenants contained in Article 4 hereof.
The Trustee is not required to take notice or deemed to have notice of any Default or Event of
Default hereunder or under any of the Note Documents with respect to a series of Notes (other than
an Event of Default described in subsections (1) or (2) of Section 6.01 with respect to such Notes
during any period the Trustee is also serving as a Paying Agent for such Notes), unless a
Responsible Officer has received notice in writing of such Event of Default from the Issuer or from
the Holders of at least 25% in aggregate principal amount of the outstanding Notes so affected, and
in absence of any such notice, the Trustee may conclusively assume that no Default or Event of
Default exists.

     (h) The Trustee is not required to give any bond or surety with respect to the performance
of its duties or the exercise of its powers under this Indenture.

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     (i) The Trustee’s rights, powers, indemnities, immunities and protections from liability
and its rights to compensation and indemnification in connection with the performance of its duties
under this Indenture shall extend to (1) the Trustee, whether serving in any other capacity
hereunder, including without limitation, in the capacity of Registrar, Paying Agent or Collateral
Agent, and (2) the Trustee’s officers, directors, agents and employees. Such immunities and
protections and rights to indemnification, together with the Trustee’s right to compensation, shall
survive the Trustee’s resignation or removal, the discharge of this Indenture and final payment of
the Notes.

     (j) The Trustee shall have no responsibility for any information in any offering document
or other disclosure material distributed with respect to any series of Notes, and the Trustee shall
have no responsibility for compliance with any state or federal securities laws in connection with
the Notes, other than the filing of any documents required to be filed by an indenture trustee
pursuant to the Trust Indenture Act.

     (k) Notwithstanding anything else herein contained, whenever any provision of this
Indenture indicates that any confirmation of a condition or event is qualified by the words “to the
knowledge of” or “known to” the Trustee or other words of similar meaning, said words shall mean
and refer to the current awareness of one or more Responsible Officers who are located at the
Corporate Trust Office of the Trustee.

     (l) The Trustee shall have no responsibility for any registration, filing, recording,
reregistration, refiling or rerecording of this Indenture, any of the Security Documents or any
other document or instrument executed in connection with this Indenture and the issuance and sale
of the Notes, including without limitation, any financing statements or continuation statements
with respect thereto, or otherwise perfecting or maintaining the perfection of any security
interest in the Collateral.

     (m) The Trustee shall not be under any obligation to effect or maintain insurance or to
renew any policies of insurance or to inquire as to the sufficiency of any policies of insurance
carried by the Issuer or any other party, or to report, or make or file claims or proof of loss
for, any loss or damage insured against or which may occur, or to keep itself informed or advised
as to the payment of any taxes or assessments, or to require any such payment to be made.

     (n) The Trustee shall not be personally liable for any debts, contractual obligations or
other claims by or on behalf of any Person (including, without limitation, any damages to Persons
or property or salaries or other employee benefits) arising from the conduct or management of, or
from any work or thing done on, any property that is subject to the Security Documents, whether
such might arise prior to, during or after any period in which the Trustee may be in the possession
of or managing any property subject to the Security Documents; and shall have no affirmative duty
with respect to compliance of such properties under state or federal laws pertaining to the
transport, storage, treatment or disposal of pollutants, contaminants, waste or hazardous
materials, or regulations, permits or licenses issued under such laws.

     (o) Notwithstanding anything else contained herein or in any of the Security Documents,
prior to exercising any rights or remedies under the Security Documents, including, without
limitation, foreclosing on any property, the Trustee shall have the right to obtain any and all
environmental and other reports and studies and undertake such additional investigation as it deems
prudent, and to require that it be furnished with, security or indemnitees against any and all
risks and liabilities in connection therewith, which shall have such coverage and be in form and
substance satisfactory to the Trustee.

     (p) The Trustee shall have no responsibility or obligation to any Participant or Indirect
Participant or to the Persons for whom they act as nominees with respect to the Notes, or to any
Beneficial

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Owner of Notes in respect of the accuracy of any records maintained by the Depositary or its
nominee or any Participant or Indirect Participant, the payment by the Depositary, or any
Participant or Indirect Participant of any amount in respect of the principal or redemption price
of or interest on the Notes, any notice which is permitted or required to be given under this
Indenture, the selection by the Depositary or any Participant or Indirect Participant of any Person
to receive payment in the event of a partial redemption of the Notes, or any consent given or other
action taken by the Depositary or its nominee as Holder.

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

     Section 7.03. Individual Rights of Trustee.

     The Trustee in its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Issuer or any Affiliate of the Issuer with the same rights it would
have if it were not Trustee. However, in the event that the Trustee acquires any conflicting
interest it must eliminate such conflict within 90 days, apply to the SEC for permission to
continue as trustee (if this Indenture has been qualified under the TIA) or resign. Any Agent may
do the same with like rights and duties. The Trustee is also subject to Sections 7.10 and 7.11.

     Section 7.04. Trustee’s Disclaimer.

     The Trustee will not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Notes, or the value, condition or sufficiency of the Collateral
or any other assets pledged or assigned as security for the Notes, the right, title or interest of
the Issuer, the Guarantor or any other Person therein, or the security provided thereby or by the
Note Documents. The Trustee shall not be accountable for the Issuer’s use of the proceeds from the
Notes or any money paid to the Issuer or upon the Issuer’s direction under any provision of this
Indenture, it will not be responsible for the use or application of any money received by any
Paying Agent other than the Trustee, and it will not be responsible for any statement or recital
herein or any statement in the Notes or any other document in connection with the sale of the Notes
or pursuant to this Indenture other than its certificate of authentication.

     Section 7.05. Notice of Defaults.

     If a Default or Event of Default occurs and is continuing and if it is known to a Responsible
Officer of the Trustee, the Trustee will send to Holders of Notes a notice of the Default or Event
of Default within 90 days after receipt of notice of the occurrence of the Event of Default.
Except in the case of a Default or Event of Default in payment of principal of, premium or
Additional Interest, if any, or interest on, any Note, the Trustee may withhold the notice if and
so long as a committee of its Responsible Officers in good faith determines that withholding the
notice is in the interests of the Holders of the Notes.

     Section 7.06. Reports by Trustee to Holders of the Notes.

     Within 60 days after each May 15 beginning with the May 15 following the date of this
Indenture, and for so long as Notes remain outstanding, the Trustee will send to the Holders of the
Notes a brief report dated as of such reporting date that complies with TIA § 313(a) (but if no
event described in TIA § 313(a) has occurred within the twelve months preceding the reporting date,
no report need be transmitted). The Trustee also will comply with TIA § 313(b)(2). The Trustee
will also transmit by mail all reports as required by TIA § 313(c). Notwithstanding the foregoing,
the requirements of this Section 7.06 shall not apply until such time as this Indenture has been
qualified under the TIA.

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     Section 7.07. Compensation and Indemnity.

     (a) The Issuer will pay to the Trustee from time to time reasonable compensation for its
acceptance of this Indenture and services hereunder and under the other Note Documents. The
Trustee’s compensation will not be limited by any law on compensation of a trustee of an express
trust. The Issuer will reimburse each of the Trustee and the Collateral Agent promptly upon
request for all reasonable and documented disbursements, advances, expenses, claims or damages
incurred or made by it in addition to the compensation for its services. Such expenses will
include the reasonable compensation, disbursements and expenses of the Trustee’s and the Collateral
Agent’s respective agents and counsel, as applicable.

     (b) The Issuer and the Guarantors will, jointly and severally, indemnify, defend and hold
each of the Trustee and the Collateral Agent and their respective officers, directors, employees
and agents harmless against any and all losses, liabilities, claims or expenses (including without
limitation taxes other than taxes based on the income of the Trustee or the Collateral Agent)
incurred by it arising out of or in connection with the acceptance or administration of its duties,
or the exercise or failure to exercise any of its rights or remedies, under this Indenture or the
other Note Documents, including the costs and expenses of enforcing this Indenture against the
Issuer and the Guarantors (including this Section 7.07) and defending itself against any claim
(whether asserted by the Issuer, the Guarantors, any Holder or any other Person) or liability in
connection with the exercise or performance of any of its powers or duties hereunder and under the
other Note Documents (or its failure to do so), except to the extent any such loss, liability or
expense may be attributable to its negligence or bad faith. Each of the Trustee and the Collateral
Agent will notify the Issuer promptly of any claim for which it may seek indemnity. Failure by the
Trustee or the Collateral Agent, as applicable, to so notify the Issuer will not relieve the Issuer
or any of the Guarantors of its/their obligations hereunder. The Issuer or such Guarantor will
defend the claim and the Trustee or the Collateral Agent, as applicable, will cooperate in the
defense. The Trustee or the Collateral Agent, as applicable, may have separate counsel and the
Issuer will pay the reasonable fees and expenses of such counsel. Neither the Issuer nor any
Guarantor need pay for any settlement made without its consent, which consent will not be
unreasonably withheld.

     (c) The obligations of the Issuer and the Guarantors under this Section 7.07 will survive
the satisfaction and discharge or termination of this Indenture for any reason, including any
termination or rejection hereof under any Bankruptcy Law, or the resignation or removal of the
Trustee or the Collateral Agent.

     (d) To secure the Issuer’s and the Guarantors’ payment obligations in this Section 7.07,
the Trustee will have a Lien prior to the Lien (if any) securing the Notes on all money or property
held or collected by the Trustee under the Note Documents or otherwise, except that held in trust
to pay principal and interest on particular Notes. Such Lien will survive the satisfaction and
discharge of this Indenture and the resignation or removal of the Trustee.

     (e) In addition, and without prejudice to the rights provided to the Trustee under any of
the provisions of this Indenture, when the Trustee or the Collateral Agent incurs expenses or
renders services after an Event of Default specified in Section 6.01 (7) or (8) occurs, the
expenses and the compensation for the services (including the fees and expenses of its agents and
counsel) are intended to constitute expenses of administration under any Bankruptcy Law.

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     Section 7.08. Replacement of Trustee.

     (a) A resignation or removal of the Trustee and appointment of a successor Trustee will
become effective only upon the successor Trustee’s acceptance of appointment as provided in this
Section 7.08.

     (b) The Trustee may resign in writing at any time and be discharged from the trust hereby
created by so notifying the Issuer. The Holders of a majority in aggregate principal amount of the
then outstanding Notes may remove the Trustee by so notifying the Trustee and the Issuer in
writing. The Issuer may remove the Trustee if:

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

     (2) the Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under any Bankruptcy Law;

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

     (4) the Trustee becomes incapable of acting.

     (c) If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee
for any reason, the Issuer will promptly appoint a successor Trustee. Within one year after the
successor Trustee takes office, the Holders of a majority in aggregate principal amount of the then
outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed by the
Issuer.

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

     (e) If the Trustee, after written request by any Holder who has been a Holder for at least
six months, fails to comply with Section 7.10, such Holder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

     (f) A successor Trustee will deliver a written acceptance of its appointment to the
retiring Trustee and to the Issuer. Thereupon, the resignation or removal of the retiring Trustee
will become effective, and the successor Trustee will have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee will mail a notice of its succession to
Holders. The retiring Trustee will promptly transfer all property held by it as Trustee to the
successor Trustee; provided all sums owing to the Trustee hereunder have been paid and subject to
the Lien provided for in Section 7.07. Notwithstanding replacement of the Trustee pursuant to this
Section 7.08, the Issuer’s obligations under Section 7.07 will continue for the benefit of a
retiring Trustee or Collateral Agent.

     Section 7.09. Successor Trustee by Merger, etc.

     If the Trustee consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust business to, another corporation, the successor corporation without any further
act will be the successor Trustee.

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     Section 7.10. Eligibility; Disqualification.

     There will at all times be a Trustee hereunder that is a corporation organized and doing
business under the laws of the United States of America or of any state thereof that is authorized
under such laws to exercise corporate trustee power, that is subject to supervision or examination
by federal or state authorities and that has a combined capital and surplus of at least $100.0
million as set forth in its most recent filed annual or quarterly report of condition.

     This Indenture will always have a Trustee who satisfies the requirements of TIA § 310(a)(1),
(2) and (5). The Trustee is subject to TIA § 310(b).

     Section 7.11. Preferential Collection of Claims Against the Issuer.

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

ARTICLE 8

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

     Section 8.01. Option to Effect Legal Defeasance or Covenant Defeasance.

     The Issuer may at any time, at the option of its Board of Directors evidenced by a resolution
set forth in an Officer’s Certificate, elect to have either Section 8.02 or 8.03 be applied to all
outstanding Notes upon compliance with the conditions set forth below in this Article 8.

     Section 8.02. Legal Defeasance and Discharge.

     Upon the Issuer’s exercise under Section 8.01 of the option applicable to this Section 8.02,
the Issuer and each of the Guarantors will, subject to the satisfaction of the conditions set forth
in Section 8.04, be deemed to have been discharged from its/their obligations with respect to all
outstanding Notes (including the Note Guarantees) on the date the conditions set forth below are
satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means that the
Issuer and the Guarantors will be deemed to have paid and discharged the entire Indebtedness
represented by the outstanding Notes (including the Note Guarantees), which will thereafter be
deemed to be “outstanding” only for the purposes of Section 8.05 and the other Sections of this
Indenture referred to in clauses (1) and (2) below, and to have satisfied all its/their other
obligations under such Notes, the Note Guarantees and this Indenture (and the Trustee, on demand of
and at the expense of the Issuer, shall execute proper instruments acknowledging the same) and all
of the Liens on Collateral securing the Notes shall be released, except for the following
provisions of this Indenture which will survive until otherwise terminated or discharged hereunder:

     (1) the rights of Holders of outstanding Notes to receive payments in respect of
the principal of, or interest or premium, if any, on, such Notes when such payments are due
from the trust referred to in Section 8.04;

     (2) the Issuer’s obligations with respect to such Notes under Article 2 and Section
4.02;

     (3) the rights, powers, trusts, duties and immunities of the Trustee hereunder and
the Issuer’s and the Guarantors’ obligations in connection therewith; and

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     (4) this Article 8.

     Subject to compliance with this Article 8, the Issuer may exercise its option under this
Section 8.02 notwithstanding the prior exercise of its option under Section 8.03.

     Section 8.03. Covenant Defeasance.

     Upon the Issuer’s exercise under Section 8.01 of the option applicable to this Section 8.03,
the Issuer and each of the Guarantors will, subject to the satisfaction of the conditions set forth
in Section 8.04, be released from each of their/its obligations under the covenants contained in
Sections 4.03, 4.04, 4.05, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.15, 4.18 and 4.19 and
clauses (3) and (4) of the first paragraph of Section 5.01 with respect to the outstanding Notes on
and after the date the conditions set forth in Section 8.04 are satisfied (hereinafter, “Covenant
Defeasance”), and the Notes will thereafter be deemed not “outstanding” for the purposes of any
direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof)
in connection with such covenants, but will continue to be deemed “outstanding” for all other
purposes hereunder (it being understood that such Notes will not be deemed outstanding for
accounting purposes). For this purpose, Covenant Defeasance means that, all Liens on the
Collateral securing the Notes will be released and with respect to the outstanding Notes and Note
Guarantees, the Issuer and the Guarantors may omit to comply with and will have no liability in
respect of any term, condition or limitation set forth in any such covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any
reference in any such covenant to any other provision herein or in any other document and such
omission to comply will not constitute a Default or an Event of Default under Section 6.01, but,
except as specified above, the remainder of this Indenture and such Notes and Note Guarantees will
be unaffected thereby. In addition, upon the Issuer’s exercise under Section 8.01 of the option
applicable to this Section 8.03, subject to the satisfaction of the conditions set forth in Section
8.04, Sections 6.01(3) through 6.01(6) and Sections 6.01(9) and (10) will not constitute Events of
Default.

     Section 8.04. Conditions to Legal or Covenant Defeasance.

     In order to exercise either Legal Defeasance or Covenant Defeasance under either Section 8.02
or 8.03:

     (1) the Issuer must irrevocably deposit with the Trustee, in trust, for the benefit
of the Holders, cash in U.S. dollars, non-callable Government Obligations, or a combination
thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized
investment bank, appraisal firm, or firm of independent public accountants, to pay the
principal of, premium and Additional Interest, if any, and interest on, the outstanding
Notes on the stated date for payment thereof or on the applicable redemption date, as the
case may be, and the Issuer must specify whether the Notes are being defeased to such stated
date for payment or to a particular redemption date;

     (2) in the case of an election under Section 8.02, the Issuer must deliver to the
Trustee an Opinion of Counsel confirming that:

     (A) the Issuer has received from, or there has been published by, the
Internal Revenue Service a ruling; or

     (B) since the Issue Date, there has been a change in the applicable federal
income tax law,

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

     (3) in the case of an election under Section 8.03, the Issuer must deliver to the
Trustee an Opinion of Counsel confirming that the Holders of the outstanding Notes will not
recognize income, gain or loss for federal income tax purposes as a result of such Covenant
Defeasance and will be subject to federal income tax on the same amounts, in the same manner
and at the same times as would have been the case if such Covenant Defeasance had not
occurred;

     (4) no Default or Event of Default shall have occurred and be continuing on the
date of such deposit (other than a Default or Event of Default resulting from the borrowing
of funds to be applied to such deposit and any related deposit of funds);

     (5) such Legal Defeasance or Covenant Defeasance will not result in a breach or
violation of, or constitute a default under, any material agreement or instrument (other
than this Indenture and the agreements governing any other Indebtedness being defeased) to
which the Issuer or any of its Subsidiaries is a party or by which the Issuer or any of its
Subsidiaries is bound;

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

     (7) the Issuer must deliver to the Trustee an Officer’s Certificate and an Opinion
of Counsel, each stating that all conditions precedent relating to the Legal Defeasance or
the Covenant Defeasance have been complied with.

	 	 	Section 8.05. Deposited Money and Government Obligations to Be Held in Trust; Other Miscellaneous Provisions.

     Subject to Section 8.06, all money and non-callable Government Obligations (including the
proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for
purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04 in respect of the
outstanding Notes will be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Indenture, to the payment, either directly or through any Paying
Agent (including the Issuer acting as Paying Agent) as the Trustee may determine, to the Holders of
such Notes of all sums due and to become due thereon in respect of principal, premium and
Additional Interest, if any, and interest, but such money need not be segregated from other funds
except to the extent required by law.

     The Issuer will pay and indemnify the Trustee against any tax, fee or other charge imposed on
or assessed against the cash or non-callable Government Obligations deposited pursuant to Section
8.04 or the principal and interest received in respect thereof other than any such tax, fee or
other charge which by law is for the account of the Holders of the outstanding Notes.

     Notwithstanding anything in this Article 8 to the contrary, the Trustee will deliver or pay to
the Issuer from time to time upon the request of the Issuer any money or non-callable Government
Obligations held by it as provided in Section 8.04 which, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification thereof delivered to
the Trustee (which

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may be the opinion delivered under Section 8.04(1)), are in excess of the amount thereof that
would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant
Defeasance.

     Section 8.06. Repayment to Issuer.

     Subject to applicable law, any money deposited with the Trustee or any Paying Agent, or then
held by the Issuer, in trust for the payment of the principal of, premium or Additional Interest,
if any, or interest on, any Note and remaining unclaimed for two years after such principal,
premium or Additional Interest, if any, or interest has become due and payable shall be paid to the
Issuer on its request or (if then held by the Issuer) will be discharged from such trust; and the
Holder of such Note will thereafter be permitted to look only to the Issuer for payment thereof,
and all liability and other obligations of the Trustee or such Paying Agent with respect to such
trust money, and all liability of the Issuer as trustee thereof, will thereupon cease.

     Section 8.07. Reinstatement.

     If the Trustee or Paying Agent is unable to apply any U.S. dollars or non-callable Government
Obligations in accordance with Section 8.02 or 8.03, as the case may be, by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, then the Issuer’s and the Guarantors’ obligations under this Indenture and the
Notes and the Note Guarantees will be revived and reinstated as though no deposit had occurred
pursuant to Section 8.02 or 8.03 until such time as the Trustee or Paying Agent is permitted to
apply all such money in accordance with Section 8.02 or 8.03, as the case may be; provided,
however, that, if the Issuer makes any payment of principal of, premium or Additional Interest, if
any, or interest on, any Note following the reinstatement of its obligations, the Issuer will be
subrogated to the rights of the Holders of such Notes to receive such payment from the money held
by the Trustee or Paying Agent.

ARTICLE 9

AMENDMENT, SUPPLEMENT AND WAIVER

     Section 9.01. Without Consent of Holders of Notes.

     Notwithstanding Section 9.02 of this Indenture, the Issuer, the Guarantors and the Trustee may
amend or supplement this Indenture, the Security Documents, the Notes or the Note Guarantees
without the consent of any Holder of Note:

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

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

     (3) to provide for the assumption of the Issuer’s or a Guarantor’s obligations to
the Holders of the Notes and Note Guarantees by a successor to the Issuer or such Guarantor
pursuant to Article 5 or Article 10;

     (4) to make any change that would provide any additional rights or benefits to the
Holders of the Notes or that does not adversely affect the legal rights hereunder of any
Holder;

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

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     (6) to conform the text of this Indenture, the Notes, the Registration Rights
Agreement or the Security Documents to any provision of the “Description of Notes” section
of the Offering Memorandum, to the extent that such provision in that “Description of Notes”
was intended to be a verbatim recitation of a provision of this Indenture, the Note
Guarantees, the Notes or the Security Documents, which intent shall be evidenced by an
Officer’s Certificate of the Issuer to that effect;

     (7) to provide for the issuance of Additional Notes in accordance with the
limitations set forth in this Indenture as of the Issue Date;

     (8) to allow any Guarantor to execute a supplemental indenture and/or a Note
Guarantee with respect to the Notes or to release a Guarantor;

     (9) to make, complete or confirm any grant of Collateral permitted or required by
this Indenture or any of the Security Documents or any release of Collateral that becomes
effective as set forth in this Indenture or any of the Security Documents; or

     (10) to comply with the rules of the Depository.

     In addition, the Issuer, the Guarantors, the Trustee and the Collateral Agent may amend the
Intercreditor Agreement or the Security Documents to add additional secured parties holding
Permitted Additional Pari Passu Obligations or ABL Obligations permitted by this Indenture with the
same Lien priorities and rights as provided in the Intercreditor Agreement or to enter into
intercreditor arrangements with the holders of any such Indebtedness so long as the terms of such
intercreditor arrangements are not less favorable to the Holders of Notes than the intercreditor
provisions contained in the Security Agreement and the Intercreditor Agreement.

     The consent of the Holders of Notes is not necessary to approve the particular form of any
proposed amendment. It is sufficient if such consent approves the substance of the proposed
amendment.

     Upon the request of the Issuer accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and upon receipt by the
Trustee of the documents described in Section 7.02, the Trustee will join with the Issuer and the
Guarantors in the execution of any amended or supplemental indenture authorized or permitted by the
terms of this Indenture and to make any further appropriate agreements and stipulations that may be
therein contained, but the Trustee will not be obligated to enter into such amended or supplemental
indenture that affects its own rights, duties, privileges, protections, indemnities, liabilities or
immunities under this Indenture or otherwise.

     Section 9.02. With Consent of Holders of Notes.

     Except as provided below in this Section 9.02, the Issuer and the Trustee may amend or
supplement this Indenture (including, without limitation, Section 4.10 and Section 4.15) and the
Notes and the Note Guarantees with the consent of the Holders of at least a majority in aggregate
principal amount of the then outstanding Notes (including, without limitation, Additional Notes, if
any) voting as a single class (including, without limitation, consents obtained in connection with
a tender offer or exchange offer for, or purchase of, the Notes), and, subject to Sections 6.04 and
6.07, any existing Default or Event of Default (other than a Default or Event of Default in the
payment of the principal of, premium or Additional Interest, if any, or interest on, the Notes,
except a payment default resulting from an acceleration that has been rescinded) or compliance with
any provision of this Indenture, the Security Documents, the Notes or the Note Guarantees may be
waived with the consent of the Holders of a majority in aggregate

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principal amount of the then outstanding Notes (including, without limitation, Additional
Notes, if any) voting as a single class (including, without limitation, consents obtained in
connection with a tender offer or exchange offer for, or purchase of, the Notes).

     Upon the request of the Issuer accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture or other amendments, and
upon the filing with the Trustee of evidence satisfactory to the Trustee of the consent of the
Holders of Notes as aforesaid, and upon receipt by the Trustee of the documents described in
Section 7.02, the Trustee will join with the Issuer and the Guarantors in the execution of such
amended or supplemental indenture unless such amended or supplemental indenture directly affects
the Trustee’s own rights, duties, privileges, protections, indemnities, liabilities or immunities
under this Indenture or otherwise, in which case the Trustee may in its discretion, but will not be
obligated to, enter into such amended or supplemental Indenture.

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

     After an amendment, supplement or waiver under this Section 9.02 becomes effective, the Issuer
will mail to the Holders of Notes affected thereby a notice briefly describing the amendment,
supplement or waiver. Any failure of the Issuer to mail such notice, or any defect therein, will
not, however, in any way impair or affect the validity of any such amended or supplemental
indenture or waiver. Subject to Sections 6.04 and 6.07, the Holders of a majority in aggregate
principal amount of the Notes then outstanding voting as a single class may waive compliance in a
particular instance by the Issuer with any provision of this Indenture or the Notes or the Note
Guarantees. However, without the consent of each Holder affected, an amendment, supplement or
waiver under this Section 9.02 may not (with respect to any Notes held by a non-consenting Holder):

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

     (2) reduce the principal of or change the fixed maturity of any Note or alter the
provisions with respect to the redemption of the Notes (except for provisions relating to
(i) the timing for notices that must be given by the Issuer in connection with a redemption
of the Notes and (ii) as provided above with respect to Sections 4.10 and 4.15);

     (3) reduce the rate of or change the time for payment of interest, including
default interest, on any Note;

     (4) waive a Default or Event of Default in the payment of principal of, or premium,
if any, or interest on, the Notes (except a rescission of acceleration of the Notes by the
Holders of at least a majority in aggregate principal amount of the then outstanding Notes
and a waiver of the payment default that resulted from such acceleration);

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

     (6) make any change in the provisions of this Indenture relating to waivers of past
Defaults or the rights of Holders of Notes to receive payments of principal of, or interest
or premium, if any, on, the Notes;

     (7) waive a redemption payment with respect to any Note (other than a payment
required by Section 4.10 or 4.15);

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

     (9) make any change in the preceding amendment and waiver provisions.

     In addition, without the consent of the Holders of at least 66 2/3% in aggregate principal
amount of Notes then outstanding, no amendment or waiver may release all or substantially all of
the Collateral from the Lien of this Indenture and the Security Documents with respect to the Notes
Obligations.

     Section 9.03. [Reserved].

     Section 9.04. Revocation and Effect of Consents.

     Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a
Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note or
portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of
the consent is not made on any Note. However, any such Holder of a Note or subsequent Holder of a
Note may revoke the consent as to its Note if the Trustee receives written notice of revocation
before the date the amendment, supplement or waiver becomes effective. An amendment, supplement or
waiver becomes effective in accordance with its terms and thereafter binds every Holder.

     Section 9.05. Notation on or Exchange of Notes.

     The Trustee may place an appropriate notation about an amendment, supplement or waiver on any
Note thereafter authenticated. The Issuer in exchange for all Notes may issue and the Trustee
shall, upon receipt of an Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

     Failure to make the appropriate notation or issue a new Note will not affect the validity and
effect of such amendment, supplement or waiver.

     Section 9.06. Trustee to Sign Amendments, etc.

     The Trustee will sign any amended or supplemental indenture or other amendment authorized
pursuant to this Article 9 if the amendment or supplement does not, in the opinion of the Trustee,
adversely affect the rights, duties, liabilities, privileges, protections, indemnities or
immunities of the Trustee. The Issuer may not sign an amended or supplemental indenture until the
Board of Directors of the Issuer approves it. In executing any amended or supplemental indenture,
the Trustee will be entitled to receive and (subject to Section 7.01) will be fully protected in
relying upon, in addition to the documents required by Section 14.04, an Officer’s Certificate and
an Opinion of Counsel stating that the execution of such amended or supplemental indenture is
authorized or permitted by this Indenture.

ARTICLE 10

NOTE GUARANTEES

     Section 10.01. Guarantee.

     (a) Subject to this Article 10, each of the Guarantors hereby, jointly and severally,
unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee and
to the Trustee

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and its successors and assigns, irrespective of the validity and enforceability of this
Indenture, the Notes, the other Notes Documents or the obligations of the Issuer hereunder or
thereunder, that:

     (1) the principal of, premium and Additional Interest, if any, and interest on, the
Notes will be promptly paid in full when due, whether at maturity, by acceleration,
redemption or otherwise, and interest on the overdue principal of and interest on the Notes,
if any, if lawful, and all other obligations of the Issuer to the Holders or the Trustee
hereunder or thereunder will be promptly paid in full or performed, all in accordance with
the terms hereof and thereof, and

     (2) in case of any extension of time of payment or renewal of any Notes or any of
such other obligations, that same will be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise.

     Failing payment when due of any amount so guaranteed or any performance so guaranteed for
whatever reason, the Guarantors will be jointly and severally obligated to pay the same
immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee of
collection.

     (b) The Guarantors hereby agree that their obligations hereunder are unconditional,
irrespective of the validity, regularity or enforceability of the Notes or this Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with
respect to any provisions hereof or thereof, the recovery of any judgment against the Issuer, any
action to enforce the same or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a Guarantor. Each Guarantor hereby waives diligence,
presentment, demand of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Issuer, any right to require a proceeding first against the Issuer, protest,
notice and all demands whatsoever and covenant that this Note Guarantee will not be discharged
except by complete performance of the obligations contained in the Notes and this Indenture.

     (c) If any Holder or the Trustee is required by any court or otherwise to return to the
Issuer, the Guarantors or any custodian, trustee, liquidator or other similar official acting in
relation to either the Issuer or the Guarantors, any amount paid by either to the Trustee or such
Holder, this Note Guarantee, to the extent theretofore discharged, will be reinstated in full force
and effect.

     (d) Each Guarantor agrees that it will not be entitled to any right of subrogation in
relation to the Holders in respect of any obligations guaranteed hereby until payment in full of
all obligations guaranteed hereby. Each Guarantor further agrees that, as between the Guarantors,
on the one hand, and the Holders and the Trustee, on the other hand, (1) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article 6 for the purposes of this
Note Guarantee, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby, and (2) in the event of any
declaration of acceleration of such obligations as provided in Article 6, such obligations (whether
or not due and payable) will forthwith become due and payable by the Guarantors for the purpose of
this Note Guarantee.

     (e) All Guarantors desire to allocate among themselves (collectively, the “Contributing
Guarantors”), in a fair and equitable manner, their obligations arising under this Indenture.
Accordingly, in the event any payment or distribution is made on any date by a Guarantor (a
“Funding Guarantor”) under its Guarantee of the Notes such that its Aggregate Payments exceed its
Fair Share as of such date, such Funding Guarantor shall be entitled to a contribution from each of
the other Contributing Guarantors in an amount sufficient to cause each Contributing Guarantor’s
Aggregate Payments to equal its Fair Share as of such date. “Fair Share” means, with respect to a
Contributing Guarantor as of any date of determination, an amount equal to (a) the ratio of (i) the
Fair Share Contribution Amount with respect to such

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Contributing Guarantor, to (ii) the aggregate of the Fair Share Contribution Amounts with respect
to all Contributing Guarantors, multiplied by (b) the aggregate amount paid or distributed on or
before such date by all Funding Guarantors under its Guarantee of the Notes in respect of the
obligations guaranteed. “Fair Share Contribution Amount” means, with respect to a Contributing
Guarantor as of any date of determination, the maximum aggregate amount of the obligations of such
Contributing Guarantor under its Guarantee of the Notes that would not render its obligations
hereunder or thereunder subject to avoidance as a fraudulent transfer or conveyance under Section
548 of the Bankruptcy Code or any comparable applicable provisions of state law; provided that
solely for purposes of calculating the Fair Share Contribution Amount with respect to any
Contributing Guarantor for purposes of this Section 10.01, any assets or liabilities of such
Contributing Guarantor arising by virtue of any rights to subrogation, reimbursement or
indemnification or any rights to or obligations of contribution hereunder shall not be considered
as assets or liabilities of such Contributing Guarantor. “Aggregate Payments” means, with respect
to a Contributing Guarantor as of any date of determination, an amount equal to (1) the aggregate
amount of all payments and distributions made on or before such date by such Contributing Guarantor
in respect of its Guarantee of the Notes (including in respect of this Section 10.01), minus (2)
the aggregate amount of all payments received on or before such date by such Contributing Guarantor
from the other Contributing Guarantors as contributions under this Section 10.01. The amounts
payable as contributions hereunder shall be determined as of the date on which the related payment
or distribution is made by the applicable Funding Guarantor. Each Guarantor is a third party
beneficiary to the contribution agreement set forth in this Section 10.01.

    Section 10.02. Limitation on Guarantor Liability.

     Each Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is the
intention of all such parties that the Note Guarantee of such Guarantor not constitute a fraudulent
transfer or conveyance for purposes of applicable Bankruptcy Law, the Uniform Fraudulent Conveyance
Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent
applicable to any Note Guarantee. To effectuate the foregoing intention, the Trustee, the Holders
and the Guarantors hereby irrevocably agree that the obligations of such Guarantor will be limited
to the maximum amount that will, after giving effect to such maximum amount and all other
contingent and fixed liabilities of such Guarantor that are relevant under such laws, and after
giving effect to any collections from, rights to receive contribution from or payments made by or
on behalf of any other Guarantor in respect of the obligations of such other Guarantor under this
Article 10, result in the obligations of such Guarantor under its Note Guarantee not constituting a
fraudulent transfer or conveyance.

     Section 10.03. Execution and Delivery of Note Guarantee.

     To evidence its Note Guarantee set forth in Section 10.01, each Guarantor hereby agrees that a
notation of such Note Guarantee substantially in the form attached as Exhibit E hereto will be
endorsed by an Officer of such Guarantor on each Note authenticated and delivered by the Trustee
and that this Indenture will be executed on behalf of such Guarantor by one of its Officers (but
the failure to execute such notation shall not affect the validity of any Note Guarantee).

     Each Guarantor hereby agrees that its Note Guarantee set forth in Section 10.01 will remain in
full force and effect notwithstanding any failure to endorse on each Note a notation of such Note
Guarantee.

     If an Officer whose signature is on this Indenture or on the Note Guarantee no longer holds
that office at the time the Trustee authenticates the Note on which a Note Guarantee is endorsed,
the Note Guarantee will be valid nevertheless.

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     The delivery of any Note by the Trustee, after the authentication thereof hereunder, will be
deemed to constitute due delivery of the Note Guarantee set forth in this Indenture on behalf of
the Guarantors.

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

     A Guarantor may not sell or otherwise dispose of all or substantially all of its assets to, or
consolidate with or merge with or into (whether or not such Guarantor is the surviving Person),
another Person, other than the Issuer or another Guarantor, unless:

     (1) immediately after giving effect to that transaction, no Default or Event of
Default exists; and

     (2) either:

     (a) the Person acquiring the property in any such sale or disposition or
the Person formed by or surviving any such consolidation or merger (if other than a
Guarantor) assumes all the obligations of that Guarantor under this Indenture, its
Note Guarantee, all appropriate Security Documents and the Registration Rights
Agreement pursuant to a supplemental indenture satisfactory to the Trustee and the
Collateral Agent; or

     (b) such transaction is permitted by Section 4.10.

     In case of any such consolidation, amalgamation, merger, sale or conveyance and upon the
assumption by the successor Person, by supplemental indenture, executed and delivered to the
Trustee and satisfactory in form to the Trustee, of the Note Guarantee endorsed upon the Notes and
the due and punctual performance of all of the covenants and conditions of this Indenture to be
performed by the Guarantor, such successor Person will succeed to and be substituted for the
Guarantor with the same effect as if it had been named herein as a Guarantor. Such successor
Person thereupon may cause to be signed any or all of the Note Guarantees to be endorsed upon all
of the Notes issuable hereunder which theretofore shall not have been signed by the Issuer and
delivered to the Trustee. All the Note Guarantees so issued will in all respects have the same
legal rank and benefit under this Indenture as the Note Guarantees theretofore and thereafter
issued in accordance with the terms of this Indenture as though all of such Note Guarantees had
been issued at the date of the execution.

     Except as set forth in Articles 4 and 5, and notwithstanding clauses (1) and (2)(a) and (b)
above, nothing contained in this Indenture or in any of the Notes will prevent any consolidation,
amalgamation or merger of a Guarantor with or into the Issuer or another Guarantor, or will prevent
any sale or conveyance of the property of a Guarantor as an entirety or substantially as an
entirety to the Issuer or another Guarantor.

     Section 10.05. Releases.

     The Note Guarantee of any Guarantor, and the Collateral Agent’s Lien on the Collateral of such
Guarantor, will be released:

     (1) in connection with any sale or other disposition of all of the assets of that
Guarantor (including by way of merger or consolidation) to a Person that is not (either
before or after giving effect to such transaction) the Issuer or a Guarantor if the sale or
other disposition does not violate Section 4.10;

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     (2) in connection with any sale or other disposition of Capital Stock of that
Guarantor to a Person that is not (either before or after giving effect to such transaction)
the Issuer or Guarantor, if the sale or other disposition does not violate Section 4.10 and
the Guarantor ceases to be a Restricted Subsidiary of the Issuer as a result of the sale or
other disposition;

     (3) in the case of any Guarantor that does not own Notes Priority Collateral (as
defined below), if such Guarantor shall not have outstanding any Triggering Indebtedness
(other than as a result of payments under any guarantee of any such Triggering
Indebtedness); or

     (4) if the Issuer designates any Restricted Subsidiary that is a Guarantor to be an
Unrestricted Subsidiary in accordance with the applicable provisions of this Indenture; or

     (5) upon Legal Defeasance or Covenant Defeasance in accordance with Article 8 or
satisfaction and discharge of this Indenture as provided under Articles 8 and 11.

     Any Guarantor not released from its obligations under its Note Guarantee as provided in this
Section 10.05 will remain liable for the full amount of principal of and interest and premium and
Additional Interest, if any, on the Notes and for the other obligations of any Guarantor under this
Indenture as provided in this Article 10.

ARTICLE 11

SATISFACTION AND DISCHARGE

     Section 11.01. Satisfaction and Discharge.

     This Indenture and Notes will be discharged (and all Liens on the Collateral will be released)
and this Indenture will cease to be of further effect as to all Notes issued hereunder, when:

     (1) either:

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

     (b) all Notes that have not been delivered to the Trustee for cancellation
have become due and payable by reason of the mailing of a notice of redemption or
otherwise or will become due and payable within one year and the Issuer or any
Guarantor has irrevocably deposited or caused to be deposited with the Trustee as
trust funds in trust solely for the benefit of the Holders, cash in U.S. dollars,
non-callable Government Obligations, or a combination thereof, in such amounts as
will be sufficient, without consideration of any reinvestment of interest, to pay
and discharge the entire Indebtedness on the Notes not delivered to the Trustee for
cancellation for principal, premium and Additional Interest, if any, and accrued
interest to the date of maturity or redemption;

     (2) in respect of clause (1)(b), no Default or Event of Default has occurred and is
continuing on the date of such deposit (other than a Default or Event of Default resulting
from the borrowing of funds to be applied to such deposit and similar deposits relating to
other indebtedness) and the deposit will not result in a breach or violation of, or
constitute a default under, any other instrument to which the Issuer or any Guarantor is a
party or by which the Issuer or any

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Guarantor is bound (other than any such material instrument that is concurrently being
terminated and repaid in full or otherwise discharged in accordance with its terms(other
than any such material instrument that is concurrently being terminated and repaid in full
or otherwise discharged in accordance with its terms);

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

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

In addition, the Issuer must deliver an Officer’s Certificate and an Opinion of Counsel to the
Trustee stating that all conditions precedent to satisfaction and discharge have been satisfied.

     Notwithstanding the satisfaction and discharge of this Indenture, if money has been deposited
with the Trustee pursuant to subclause (b) of clause (1) of this Section 11.01, the provisions of
Sections 11.02 and 8.06 will survive. In addition, nothing in this Section 11.01 will be deemed to
discharge those provisions of Section 7.07, that, by their terms, survive the satisfaction and
discharge of this Indenture.

     Section 11.02. Application of Trust Money.

     Subject to the provisions of Section 8.06, all money deposited with the Trustee pursuant to
Section 11.01 shall be held in trust and applied by it, in accordance with the provisions of the
Notes and this Indenture, to the payment, either directly or through any Paying Agent (including
the Issuer acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled
thereto, of the principal (and premium and Additional Interest, if any) and interest for whose
payment such money has been deposited with the Trustee; but such money need not be segregated from
other funds except to the extent required by law.

     If the Trustee or Paying Agent is unable to apply any money or Government Obligations in
accordance with Section 11.01 by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Issuer’s and any Guarantor’s obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to Section 11.01,
provided that if the Issuer has made any payment of principal of, premium or Additional Interest,
if any, or interest on, any Notes because of the reinstatement of its obligations, the Issuer shall
be subrogated to the rights of the Holders of such Notes to receive such payment from the money or
Government Obligations held by the Trustee or Paying Agent.

ARTICLE 12

INTERCREDITOR AGREEMENT

     Each Holder, by accepting a Note, agrees that the Note Liens and the ABL Liens are subject to
the terms of the Intercreditor Agreement. The Holders, by accepting a Note, hereby authorize and
direct the Trustee and the Collateral Agent to enter into the Intercreditor Agreement on behalf of
the Holders and agree that the Holders shall comply with the provisions of the Intercreditor
Agreement applicable to them in their capacities as such to the same extent as if the Holders were
parties thereto. In the event of a conflict or inconsistency between (a) the terms and provisions
of this Indenture, the Notes or the Note

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Guarantees (on the one hand) and (b) the terms and provisions of the Intercreditor Agreement
(on the other hand), the terms and provisions of the Intercreditor Agreement shall govern.

ARTICLE 13

COLLATERAL

     Section 13.01. Security Documents.

     The Note Obligations are secured as provided in the Security Documents and the Intercreditor
Agreement. The Issuer shall, and shall cause each Guarantor to, and each Guarantor shall, make all
filings (including filings of continuation statements and amendments to UCC financing statements
that may be necessary to continue the effectiveness of such UCC financing statements) necessary to
maintain (at the sole cost and expense of the Issuer and the Guarantors) the security interest
created by the Security Documents in the Collateral as a perfected security interest to the extent
perfection is required by the Security Documents, subject only to Permitted Liens and terms,
conditions and provisions of the Intercreditor Agreement.

     Section 13.02. Collateral Agent.

     (a) The Collateral Agent shall have all the rights and protections provided in the
Security Documents and, additionally, shall have all the rights and protections in its dealings
under the Security Documents as are provided to the “Trustee” under Article 7.

     (b) Subject to Section 7.01, none of the Collateral Agent, Trustee, Paying Agent,
Registrar or Transfer Agent nor any of their respective officers, directors, employees, attorneys
or agents will be responsible or liable for the existence, genuineness, value or protection of any
Collateral, for the legality, enforceability, effectiveness or sufficiency of the Security
Documents, for the creation, validity, perfection, priority, sufficiency, protection or enforcement
of any Note Liens or any other security interest in the Collateral, or any defect or deficiency as
to any such matters.

     (c) Except as required or permitted by the Security Documents, the Holders, by accepting a
Note, acknowledge that the Collateral Agent will not be obligated:

     (1) to act upon directions purported to be delivered to it by any Person, except in
accordance with the Security Documents;

     (2) to foreclose upon or otherwise enforce any Note Lien; or

     (3) to take any other action whatsoever with regard to any or all of the Note
Liens, Security Documents or Collateral.

    Section 13.03. Authorization of Actions to Be Taken.

     (a) Each Holder of Notes, by its acceptance thereof, consents and agrees to the terms of
each Security Document, as originally in effect and as amended, supplemented or replaced from time
to time in accordance with its terms or the terms of this Indenture, authorizes and directs the
Collateral Agent to enter into the Security Documents to which it is a party, authorizes and
empowers the Collateral Agent to execute and deliver the Intercreditor Agreement and authorizes and
empowers the Collateral Agent to bind the Holders of Notes as set forth in the Security Documents
to which the Collateral Agent is a party

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and the Intercreditor Agreement and to perform its obligations and exercise its rights and
powers thereunder.

     (b) The Trustee is authorized and empowered to receive for the benefit of the Holders of
Notes any funds collected or distributed to the Collateral Agent under the Security Documents to
which the Trustee is a party and, subject to the terms of the Security Documents, to make further
distributions of such funds to the Holders of Notes according to the provisions of this Indenture.

     (c) Subject to the provisions of Section 7.01, Section 7.02, and the Security Documents,
the Trustee may (but shall not be obligated to), in its sole discretion and without the consent of
the Holders, direct, on behalf of the Holders, the Collateral Agent to take all actions it deems
necessary or appropriate in order to:

     (1) foreclose upon or otherwise enforce any or all of the Note Liens;

     (2) enforce any of the terms of the Security Documents to which the Collateral
Agent is a party; or

     (3) collect and receive payment of any and all Obligations.

     Subject to the Intercreditor Agreement and at the Issuer’s sole cost and expense, the Trustee
is hereby authorized and empowered by each Holder of Notes (by its acceptance thereof) to institute
and maintain, or direct the Collateral Agent to institute and maintain, such suits and proceedings
as it may deem reasonably expedient to protect or enforce the Note Liens or the Security Documents
to which the Collateral Agent or Trustee is a party or to prevent any impairment of Collateral by
any acts that may be unlawful or in violation of the Security Documents or this Indenture, and such
suits and proceedings as the Trustee may deem reasonably expedient, at the Issuer’s sole cost and
expense, to preserve or protect its interests and the interests of the Holders of Notes in the
Collateral, including power to institute and maintain suits or proceedings to restrain the
enforcement of or compliance with any legislative or other governmental enactment, rule or order
that may be unconstitutional or otherwise invalid if the enforcement of, or compliance with, such
enactment, rule or order would impair the Note Liens or be prejudicial to the interests of Holders
or the Trustee.

     Section 13.04. Release of Collateral.

     Collateral may be released from the Lien and security interest created by the Security
Documents at any time or from time to time in accordance with the provisions of the Security
Documents and the Intercreditor Agreement and in accordance with Article 9. In addition, the
Issuer and the Guarantors will be entitled to the release of assets included in the Collateral from
the Liens securing the Notes, and the Trustee shall (or, if the Trustee is not then the Collateral
Agent, shall direct the Collateral Agent to) release the same from such Liens at the Issuer’s sole
cost and expense, under any one or more of the following circumstances without the need for any
further action by any Person:

     (a) in whole or in part, as applicable, as to all or any portion of property
subject to such Note Liens which has been taken by eminent domain, condemnation or other
similar circumstances;

     (b) in whole upon (a) satisfaction and discharge of this Indenture in accordance
with Article 11 or (b) a Legal Defeasance or Covenant Defeasance under Article 8;

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     (c) in part, as to any property that (a) is sold, transferred or otherwise disposed
of by the Issuer or any Guarantor (other than to the Issuer or another Guarantor) in a
transaction not prohibited by this Indenture at the time of such sale, transfer or
disposition, (b) is owned or at any time acquired by a Guarantor that has been released from
its Guarantee pursuant to Section 10.05, concurrently with the release of such Guarantee or
(c) is or becomes Excluded Assets;

     (d) in part, in accordance with the applicable provisions of the Security Documents
and in accordance with applicable provisions of the Intercreditor Agreement;

     (e) as to property that constitutes all or substantially all of the Collateral
securing the notes, with the consent of Holders of at least 66 2/3% in aggregate principal
amount of the Notes then outstanding voting as a single class (which consent may be obtained
in connection with an exchange offer or tender offer and associated consent solicitation);

     (f) as to property that constitutes less than all or substantially all of the
Collateral securing the Notes, with the consent of the Holders of at least a majority in
aggregate principal amount of the Notes then outstanding voting as a single class (which
consent may be obtained in connection with an exchange offer or tender offer and associated
consent solicitation);

     (g) on any or all of the ABL Priority Collateral, upon any release of all ABL Liens
thereon; provided, however, that if there is instated or reinstated a Lien securing ABL
Obligations on any or all of the ABL Priority Collateral upon which the Lien securing the
Note Obligations has been released pursuant to this clause (g) then, the Lien securing the
Note Obligations on such ABL Priority Collateral will also be deemed reinstated on a second
priority basis; and

     (h) in whole, upon a Covenant Suspension Event and the prior or concurrent release
of the Liens securing any Permitted Additional Pari Passu Obligations.

     In connection with any release of Collateral under this Indenture, the Issuer shall not be
required to comply with Sections 314(b) or 314(c) of the TIA.

     Each of the Issuer and the Guarantors may, among other things, without any release or consent
by the Trustee, but otherwise in compliance with the covenants of this Indenture and the Security
Documents, conduct ordinary course activities with respect to the Collateral, including (i) selling
or otherwise disposing of, in any transaction or series of related transactions, any property
subject to the Lien of the Security Documents which has become worn out, defective or obsolete or
not used or useful in the business; (ii) abandoning, terminating, canceling, releasing or making
alterations in or substitutions of any leases or contracts subject to the Lien of the Security
Documents; (iii) surrendering or modifying any franchise, license or permit subject to the Lien of
the Security Documents which it may own or under which it may be operating; (iv) altering,
repairing, replacing, changing the location or position of and adding to its structures, machinery,
systems, equipment, fixtures and appurtenances; (v) granting a license of any intellectual
property; (vi) selling, transferring or otherwise disposing of inventory in the ordinary course of
business; (vii) collecting accounts receivable in the ordinary course of business or selling,
liquidating, factoring or otherwise disposing of accounts receivable in the ordinary course of
business; (viii) making cash payments (including for the repayment of Indebtedness or interest and
in connection with the Issuer’s cash management activities) from cash that is at any time part of
the Collateral in the ordinary course of business that are not otherwise prohibited by this
Indenture and the Security Documents; and (ix) abandoning any intellectual property which is no
longer used or useful in the Issuer’s or the Guarantor’s business.

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     The Issuer shall deliver to the Trustee within 30 calendar days following the end of each
fiscal year (or such later date as the Trustee shall agree), an Officer’s Certificate to the effect
that all releases and withdrawals during the preceding fiscal year (or since the date of this
Indenture, in the case of the first such certificate) in which no release or consent of the Trustee
was obtained in the ordinary course of the Issuer’s and Guarantors’ business were not prohibited by
this Indenture.

     Section 13.05. Use of Collateral; Compliance with Section 314(d) of the TIA.

     (a) Unless an Event of Default shall have occurred and be continuing and the Collateral
Agent shall have commenced enforcement of remedies under the Security Documents, except to the
extent otherwise provided in the Security Documents, this Indenture or the ABL Facility or other
documentation governing the ABL Obligations, the Security Documents or this Indenture, the Issuer
and the Guarantors will have the right to remain in possession and retain exclusive control of the
Collateral to alter or repair the Collateral, to freely operate the Collateral and to collect,
invest and dispose of any income thereon.

     (b) After qualification of this Indenture pursuant to the TIA, the Issuer and the
Guarantors shall comply with TIA § 314(d). Any certificate or opinion required by TIA § 314(d) may
be made by an officer of the Issuer except in cases where TIA § 314(d) requires that such
certificate or opinion be made by an independent Person, which Person will be an independent
appraiser or other expert selected by the Issuer and reasonably satisfactory to the Trustee.

     (c) Notwithstanding anything to the contrary in Section 13.05(b), each of the Issuer and
the Guarantors will not be required to comply with all or any portion of TIA § 314(d) if it
determines, in good faith based on advice of counsel, that under the terms of TIA § 314(d) and/or
any interpretation or guidance as to the meaning thereof of the SEC and its staff, including “no
action” letters or exemptive orders, all or any portion of TIA § 314(d) is inapplicable to released
Collateral (including, without limitation, certain no-action letters issued by the SEC have
permitted an indenture qualified under the TIA to contain provisions permitting the release of
collateral from Liens under an indenture in the ordinary course of an issuer’s business without
requiring the issuer to provide certificates and other documents under TIA § 314(d)).

     Section 13.06. Powers Exercisable by Receiver or Trustee.

     In case the Collateral shall be in the possession of a receiver or trustee, lawfully
appointed, the powers conferred in this Article 13 upon the Issuer or a Guarantor with respect to
the release, sale or other disposition of such property may be exercised by such receiver or
trustee, and an instrument signed by such receiver or trustee shall be deemed the equivalent of any
similar instrument of the Issuer or a Guarantor or of any officer or officers thereof required by
the provisions of this Article 13; and if the Trustee or the Collateral Agent shall be in the
possession of the Collateral under any provision of this Indenture, then such powers may be
exercised by the Trustee or the Collateral Agent, as the case may be.

     Section 13.07. Voting.

     In connection with any matter under the Security Agreement requiring a vote of holders of
Secured Obligations (as defined in the Security Agreement), the holders of such Secured Obligations
shall be treated as a single class and the Holders shall cast their votes in accordance with this
Indenture. The amount of the Notes to be voted by the Holders will equal the aggregate outstanding
principal amount of the Notes. Following and in accordance with the outcome of the applicable vote
under this Indenture, the Trustee shall vote the total amount of the Notes as a block in respect of
any vote under the Security Agreement.

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     Section 13.08. Collateral Proceeds Account.

     (a) Establishment of Collateral Proceeds Account. No later than the first date following
the Issue Date on which the Issuer or any Guarantor receives any Net Proceeds that are expressly
required pursuant to the provisions of Section 4.10 to be deposited into the Collateral Proceeds
Account, there shall be established and, at all times thereafter until this Indenture shall have
terminated, there shall be maintained with the Collateral Agent the Collateral Proceeds Account.
The Collateral Proceeds Account shall be established and maintained by the Collateral Agent at the
office of the Collateral Agent. For the avoidance of doubt, no other deposit account or securities
account shall be, or shall be deemed to be, the Collateral Proceeds Account, and for purposes of
this Indenture, “Trust Monies” shall include only Net Proceeds required to be deposited into the
Collateral Proceeds Account pursuant to the terms of Section 4.10, amounts deposited in the
Collateral Proceeds Account in accordance with the Security Agreement and any investment return in
respect thereof received by the Collateral Agent. The Issuer shall cause all Net Proceeds
expressly required by Section 4.10 to be deposited into the Collateral Proceeds Account to be so
deposited in the Collateral Proceeds Account and any such Trust Monies shall be held by and under
the dominion and control of the Collateral Agent for its benefit and for the benefit of the Secured
Parties (as defined in the Security Agreement) as a part of the Collateral until released in
accordance with this Article 12.

     (b) Withdrawal of Net Proceeds in Connection with Permitted Applications. To the extent
that any Trust Monies consist of Net Proceeds of an Asset Sale or Casualty or Condemnation Event,
such Trust Monies may be withdrawn by the Issuer and shall be paid by the Collateral Agent (upon
the direction of the Trustee) to reimburse the Issuer or any Guarantor for expenditures made, or to
pay costs to be incurred, by the Issuer or such Guarantor in connection with any application of
such Net Proceeds permitted by Section 4.10, upon receipt by the Trustee and the Collateral Agent
of an Officer’s Certificate, to the effect that:

     (i) such Trust Monies have been (or will be within 60 days of the requested date of
release) applied as permitted by Section 4.10; and

     (ii) to the extent required by Section 4.10 the Issuer has taken (or will take not
later than 60 days following the application of such Net Proceeds) all steps, if any,
required by the Security Documents in order to grant and/or perfect the security interest of
the Collateral Agent in any assets in which such Net Proceeds have been reinvested (which
Officer’s Certificate shall attach copies of (or forms of) any additional Security Documents
or amendments thereto or filings thereunder, if any, required to comply with the Security
Documents and Section 4.10).

     Upon compliance with the foregoing provisions of this Section 13.08, the Collateral Agent
shall, upon receipt of a written request by the Issuer (which may be contained in the Officer’s
Certificate), pay an amount of Trust Monies equal to the amount specified in the Officer’s
Certificate required by this Section 13.08(b) as directed by the Issuer.

     (c) Withdrawal of Net Cash Proceeds to Fund a Net Proceeds Offer or Release Following a
Net Proceeds Offer. To the extent that any Trust Monies consist of Net Proceeds received by the
Collateral Agent pursuant to the provisions of Section 4.10 and a Net Proceeds Offer has been made
in accordance therewith, such Trust Monies may be withdrawn by the Issuer and shall be paid by the
Collateral Agent to the Paying Agent for application in accordance with Section 4.10 upon receipt
by the Trustee and the Collateral Agent of an Officer’s Certificate, dated not more than ten (10)
days prior to the Purchase Date, setting forth the amount of Excess Proceeds, as applicable,
subject to the Net Proceeds Offer and the date on which Notes and Permitted Additional Pari Passu
Obligations are to be purchased, and to the effect that:

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     (i) (x) such Trust Monies constitute Net Proceeds and (y) pursuant to and in
accordance with Section 4.10, the Issuer has made a Net Proceeds Offer; and

     (ii) all conditions precedent and covenants herein provided for such application of
Trust Monies have been satisfied.

     Upon compliance with the foregoing provisions of this Section 13.08(c), the Collateral Agent
shall apply the Trust Monies as directed and specified by the Issuer, subject to Section 4.10
(including to return to the Issuer any such amount of Excess Proceeds that are subject to the Net
Proceeds Offer and that are not required to be applied to the purchase of Notes or Permitted
Additional Pari Passu Obligations pursuant to Section 4.10).

     (d) Investment of Trust Monies. So long as no Default or Event of Default shall have
occurred and be continuing, all or any part of any Trust Monies held by (or held in an account
subject to the sole control of) the Collateral Agent shall from time to time be invested or
reinvested by the Collateral Agent in any Cash Equivalents pursuant to a written request by the
Issuer in the form of an Officer’s Certificate, which shall specify the Cash Equivalents in which
such Trust Monies shall be invested and shall certify that such investments constitute Cash
Equivalents; and the Collateral Agent shall sell any such Cash Equivalent only upon receipt of such
a written request by the Issuer specifying the particular Cash Equivalent to be sold, unless
otherwise required under the Security Agreement. So long as no Default or Event of Default occurs
and is continuing, any interest or dividends accrued, earned or paid on such Cash Equivalents (in
excess of any accrued interest or dividends paid at the time of purchase) that may be received by
the Collateral Agent shall be forthwith paid to the Issuer. Such Cash Equivalents shall be held by
the Collateral Agent as a part of the Collateral, subject to the same provisions hereof as the cash
used by it to purchase such Cash Equivalents.

     The Trustee and Collateral Agent shall not be liable or responsible for any loss, fee, tax or
other charge resulting from such investments, reinvestments or sales except only for their own
negligent action, their own negligent failure to act or their own willful misconduct in complying
with this Section 13.08.

     (e) Application of Other Trust Monies. The Collateral Agent shall return all Trust Monies
to the Issuer upon any Legal Defeasance or Covenant Defeasance under Article 8 or satisfaction and
discharge of this Indenture under Article 11. The Collateral Agent shall have all rights and
remedies with respect to the Collateral Proceeds Account and any Trust Monies as provided in the
Security Documents.

     Section 13.09. Appointment and Authorization of U.S. Bank as Collateral Agent.

     (1) U.S. Bank, National Association is hereby designated and appointed as the Collateral
Agent of the Holders under the Security Documents, and is authorized as the Collateral Agent for
such Holders to execute and enter into each of the Security Documents and all other instruments
relating to the Security Documents and (i) to take action and exercise such powers and remedies as
are expressly required or permitted hereunder and under the Security Documents and all instruments
relating hereto and thereto and (ii) to exercise such powers and perform such duties as are, in
each case, expressly delegated to the Collateral Agent by the terms hereof and thereof, together
with such other powers as are reasonably incidental hereto and thereto.

     (2) Notwithstanding any provision to the contrary elsewhere in this Indenture or the
Security Documents, the Collateral Agent shall not have (i) any duties or responsibilities except
those expressly set forth herein or therein or (ii) any fiduciary relationship with any Holder, and
no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read
into this Indenture or any Security Document or otherwise exist against the Collateral Agent.

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

     Section 13.10. Post Closing Collateral.

     (1) Real Property Collateral Documents. Within 30 days after the Closing Date, the
Initial Purchasers shall have received a mortgage, deed of trust, assignment of leases and rents,
security agreement, fixture filing and financing statement from the owner or holder of each
interest in real property that is part of the Collateral, in form and substance reasonably
acceptable to the Initial Purchasers (each a “Mortgage”) encumbering each real property that is
part of the Collateral (each a “Mortgaged Property”) in favor of the Collateral Agent for its
benefit and for the benefit of the other Secured Parties (as defined in the Security Agreement).

     (2) Mortgages. Within 30 days after the Closing Date, the Initial Purchasers shall have
received fully executed counterparts of the Mortgages, which Mortgages shall cover the Mortgaged
Property, together with evidence that counterparts of the Mortgages have been delivered to the
title insurance company insuring the lien of such Mortgages for recording in all places to the
extent necessary or, in the reasonable opinion of the Initial Purchasers, desirable to effectively
create a valid and enforceable mortgage lien on each Mortgaged Property in favor of the Collateral
Agent for its benefit and for the benefit of the other Secured Parties (as defined in the Security
Agreement), securing the Note Obligations (provided that in jurisdictions that impose
mortgage recording taxes, such Mortgages shall not secure indebtedness in an amount exceeding 115%
of the fair market value of such Mortgaged Property, as reasonably determined, in good faith, by
the Issuer and reasonably acceptable to the Initial Purchasers), subject to (i) those liens,
encumbrances, hypothecations and other matters affecting title to such Mortgaged Property and found
reasonably acceptable by the Initial Purchasers, (ii) Permitted Liens and (iii) such other similar
items as the Initial Purchasers may consent to (such consent not to be unreasonably withheld) (the
liens described in clauses (i) through (iii) of this sentence, collectively, the “Permitted
Encumbrances”).

     (3) Title Insurance. Within 30 days after the Closing Date, the Initial Purchasers shall
have received, with respect to each Mortgage intended to encumber a Mortgaged Property, a policy of
title insurance (or commitment to issue such a policy) having the effect of a policy of title
insurance insuring (or committing to insure) the lien of such Mortgage as a valid and enforceable
mortgage lien on the Mortgaged Properties described therein, in an amount not less than 115% of the
fair market value of such Mortgaged Property as reasonably determined, in good faith, by the Issuer
and reasonably acceptable to the Initial Purchasers, (such policies collectively, the “Mortgage
Policies”) issued by such title insurer as shall be reasonably acceptable to Initial Purchasers
(the “Title Company”), which reasonably assures the Collateral Agent that the Mortgages on such
Mortgaged Properties are valid and enforceable mortgage liens on the respective Mortgaged
Properties, free and clear of all defects and encumbrances except Permitted Encumbrances and such
Mortgage Policies shall otherwise be in form and substance reasonably satisfactory to the Initial
Purchasers and shall have been supplemented by such endorsements as shall be reasonably requested
by the Collateral Agent, including, to the extent included in the title insurance policy issued to
the ABL Facility Collateral Agent with respect to the applicable Mortgaged Property, to the extent
currently available and, if only one Mortgage is granted on a single Mortgaged Property, to the
extent appropriate where only one Mortgage is granted on a single Mortgaged Property, endorsements
on matters relating to usury, first loss, last dollar, zoning, contiguity, revolving credit, doing
business, non-imputation, public road access, survey, variable rate, environmental lien,
subdivision, separate tax lot, revolving credit, so-called comprehensive coverage over covenants
and restrictions and, to the extent included in the title insurance policy issued to the ABL
Facility Collateral Agent with respect to the

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applicable Mortgaged Property, to the extent currently available and, if only one Mortgage is
granted on a single Mortgaged Property, to the extent appropriate where only one Mortgage is
granted on a single Mortgaged Property, for any and all other matters that the Collateral Agent may
request, shall not include an exception for mechanics’ liens to the extent one was not included in
the title insurance policy issued to the ABL Facility Collateral Agent with respect to the
applicable Mortgaged Property, and shall provide for affirmative insurance and such reinsurance
(including direct access agreements) as the Initial Purchasers may reasonably request, to the
extent such affirmative insurance and/or reinsurance was included in the title insurance policy
issued to the ABL Facility Collateral Agent with respect to the applicable Mortgaged Property.

     (4) Survey. Within 30 days after the Closing Date, with respect to any Mortgaged Property
for which a survey was delivered to the ABL Facility Collateral Agent and the ABL Facility
Collateral Agent received a “comprehensive” endorsement or other survey-related endorsement, the
Initial Purchasers shall have received either (i) a survey update or (ii) an existing survey and
affidavit of no change addressed to the Title Company, the Trustee and the Collateral Agent in such
form and substance as shall be sufficient to enable the Title Company to issue a “comprehensive”
endorsement and other survey-related endorsements reasonably requested by the Collateral Agent and
to remove the standard survey exception from the Mortgage Policy with respect to such Mortgaged
Property (provided that Collateral Agent shall not have the option to require such endorsements or
standard survey exception removal unless such endorsements were issued or such standard survey
exception was removed in connection with the title insurance policy issued in favor of the ABL
Facility Collateral Agent with respect to such Mortgaged Property).

     (5) Fixture filings. Within 30 days after the Closing Date, the Initial Purchasers shall
have received proper fixture filings and as-extracted collateral under the UCC on Form UCC-1 fully
executed for filing under the UCC in the appropriate jurisdiction in which the Mortgaged Properties
are located, desirable to perfect the security interests purported to be created by the Mortgages
in favor of the Collateral Agent for its benefit and for the benefit of the other Secured Parties
(as defined in the Security Agreement).

     (6) Mortgage Opinions. Within 30 days after the Closing Date, the Initial Purchasers
shall have received the opinions, addressed to the Initial Purchasers, the Collateral Agent, the
Trustee and the other Secured Parties (as defined in the Security Agreement), of local counsel in
each jurisdiction where Mortgage Property is located, each in form and substance reasonably
satisfactory to the Initial Purchasers.

     (7) Insurance. Within 30 days after the Closing Date, the Initial Purchasers shall have
received policies or certificates of insurance covering the property and assets of the Issuer and
the Guarantors, which policies or certificates shall be in form and substance reasonably acceptable
to the Initial Purchasers and reflect the Collateral Agent, for its benefit and the benefit of the
other Secured Parties (as defined in the Security Agreement), as additional insured and loss payee
and mortgagee and shall otherwise bear endorsements of the character reasonably acceptable to the
Initial Purchasers.

     (8) Mortgaged Property Indemnification. Within 30 days after the Closing Date, the
Initial Purchasers shall have received, with respect to each Mortgaged Property, such affidavits,
certificates, information (including financial data) and instruments of indemnification (including
a so-called “gap” indemnification) as shall be required to induce the Title Company to issue the
Mortgage Policies and endorsements contemplated above.

     (9) Collateral Fees and Expenses. Within 30 days after the Closing Date, the Initial
Purchasers shall have received evidence reasonably acceptable to the Initial Purchasers of payment
by the Issuer of all Mortgage Policy premiums, search and examination charges, escrow charges and
related

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charges, mortgage recording taxes, fees, charges, costs and expenses required for the recording of the
Mortgages and issuance of the Mortgage Policies referred to above.

ARTICLE 14

MISCELLANEOUS

     Section 14.01. Conflict with Other Documents

     In the event of a conflict between (a) this Indenture and (b) the Notes or the Note
Guarantees, the terms and provisions of this Indenture shall control. In the event of a conflict
between (x) this Indenture and (y) any Security Documents (other than the Intercreditor Agreement),
the terms and provisions of this Indenture shall control.

     Section 14.02. Notices.

     Any notice or communication by the Issuer, any Guarantor, the Trustee or the Collateral Agent
to the others is duly given if in writing and delivered in person or by first class mail
(registered or certified, return receipt requested), facsimile transmission or overnight courier
guaranteeing next day delivery, to the others’ address:

     If to the Issuer and/or any Guarantor:

Liz Claiborne, Inc.

1441 Broadway

New York, New York 10018

Facsimile: (201) 295-6118

Attention: General Counsel

With a copy to:

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, New York 10019-6064

Facsimile: (212) 373-7550

Attention: Lawrence G. Wee

     If to the Trustee or the Collateral Agent:

U.S. Bank, National Association

Corporate Trust Services

150 Fourth Avenue North, 2nd Floor

Nashville, TN 37219

Facsimile No.: (615) 251-0737

Attention: Wally Jones

     The Issuer, any Guarantor, the Trustee or the Collateral Agent, by notice to the others, may
designate additional or different addresses for subsequent notices or communications.

     All notices and communications (other than those sent to Holders) will be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five Business Days after being

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deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if transmitted by
facsimile; and the next Business Day after timely delivery to the courier, if sent by overnight
courier guaranteeing next day delivery.

     Any notice or communication to a Holder will be mailed by first class mail, certified or
registered, return receipt requested, or by overnight courier guaranteeing next day delivery or by
electronic means to its address shown on the register kept by the Registrar. Failure to send a
notice or communication to a Holder or any defect in it will not affect its sufficiency with
respect to other Holders.

     If a notice or communication is sent in the manner provided above within the time prescribed,
it is duly given, whether or not the addressee receives it.

     If the Issuer sends a notice or communication to Holders, it will mail a copy to the Trustee
and each Agent at the same time.

     Section 14.03. Communication by Holders of Notes with Other Holders of Notes.

     Holders may communicate pursuant to TIA § 312(b) with other Holders with respect to their
rights under this Indenture or the Notes. The Issuer, the Trustee, the Registrar and anyone else
shall have the protection of TIA § 312(c).

     Section 14.04. Certificate and Opinion as to Conditions Precedent.

     Upon any request or application by the Issuer to the Trustee to take any action under this
Indenture, the Issuer shall furnish to the Trustee:

     (1) an Officer’s Certificate in form and substance reasonably satisfactory to the
Trustee (which must include the statements set forth in Section 14.05) stating that, in the
opinion of the signers, all conditions precedent and covenants, if any, provided for in this
Indenture relating to the proposed action have been satisfied; and

     (2) an Opinion of Counsel in form and substance reasonably satisfactory to the
Trustee (which must include the statements set forth in Section 14.05) stating that, in the
opinion of such counsel, all such conditions precedent and covenants have been satisfied.

     Section 14.05. Statements Required in Certificate or Opinion.

     Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture must include:

     (1) a statement that the Person making such certificate or opinion has read such
covenant or condition;

     (2) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such certificate or opinion
are based;

     (3) a statement that, in the opinion of such Person, he or she has made such
examination or investigation as is necessary to enable him or her to express an informed
opinion as to whether or not such covenant or condition has been satisfied; and

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

     Section 14.06. Rules by Trustee and Agents.

     The Trustee may make reasonable rules for action by or at a meeting of Holders. The Registrar
or Paying Agent may make reasonable rules and set reasonable requirements for its functions.

     Section 14.07. No Personal Liability of Directors, Officers, Employees and Stockholders.

     No past, present or future director, officer, employee, incorporator or stockholder of the
Issuer or any Guarantor, as such, will have any liability for any obligations of the Issuer or the
Guarantors under the Notes, this Indenture, the Note Guarantees, the Security Documents or for any
claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of
Notes by accepting a Note waives and releases all such liability. The waiver and release are part
of the consideration for issuance of the Notes. The waiver may not be effective to waive
liabilities under the federal securities laws.

     Section 14.08. Governing Law.

     THIS INDENTURE, THE NOTE, AND THE NOTE GUARANTEES AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS CONFLICTS OF LAW
PRINCIPLES INSOFAR AS SUCH PRINCIPLES WOULD DEFER TO THE SUBSTANTIVE LAWS OF SOME OTHER
JURISDICTION.

     Section 14.09. No Adverse Interpretation of Other Agreements.

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

     Section 14.10. Successors.

     All agreements of the Issuer in this Indenture and the Notes will bind its successors. All
agreements of the Trustee in this Indenture will bind its successors. All agreements of each
Guarantor in this Indenture will bind its successors, except as otherwise provided in Section
10.05.

     Section 14.11. Severability.

     In case any provision in this Indenture or in the Notes is invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions will not in any way be
affected or impaired thereby.

     Section 14.12. Counterpart Originals.

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

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     Section 14.13. Table of Contents, Headings, etc.

     The Table of Contents, Cross-Reference Table and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be considered a part of
this Indenture and will in no way modify or restrict any of the terms or provisions hereof.

     Section 14.14. Jurisdiction; Consent to Service of Process; Waiver of Jury Trial.

     (a) Each party hereto irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of any U.S. Federal or New York State court sitting in the Borough of
Manhattan, New York, New York in any action or proceeding arising out of or relating to this
Indenture, or for recognition or enforcement of any judgment, and each of the parties hereto hereby
irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding
may be heard and determined in such New York State or, to the extent permitted by law, in such
Federal court. Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Indenture shall affect any right that the
Issuer, the Trustee or any Holder of Notes may otherwise have to bring any action or proceeding
relating to this Indenture against any party hereto or its properties in the courts of any
jurisdiction.

     (b) Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection which it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this Indenture in any
court referred to in paragraph (a) of this Section. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

     (c) EACH OF THE ISSUER, THE GUARANTORS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THE INDENTURE, THE NOTES, THE NOTE GUARANTEES, THE
SECURITY DOCUMENTS OR THE TRANSACTION CONTEMPLATED HEREBY.

	 	 	Section 14.15. Force Majeure.

     In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, acts of war or terrorism, civil or
military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or
malfunctions of utilities or communications services; it being understood that the Trustee shall
use reasonable efforts which are consistent with accepted practices in the banking industry to
resume performance as soon as practicable under the circumstances.

[Signatures on following page]

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

	 	 	 	 	 
	 	LIZ CLAIBORNE, INC. as the Issuer

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	Senior Vice President — Chief Legal Officer,

General Counsel and Corporate Secretary 	 
	 
	 	BOODLE, INC. (F/K/A LCI LAUNDRY)

DB NEWCO CORP.

HAVANA, LLC

JERG, INC. (formerly known as C&C California, Inc.)

JUICY COUTURE, INC.

KATE SPADE LLC

L.C. AUGUSTA, INC.

L.C. CARIBBEAN HOLDINGS, INC.

L.C. LIBRA, LLC

L.C. LICENSING, INC.

L.C. SERVICE COMPANY, INC.

L.C. SPECIAL MARKETS, INC.

LCI ACQUISITION U.S., INC.

LCI HOLDINGS, INC.

LCI INVESTMENTS, INC.

LIZ CLAIBORNE ACCESSORIES, INC.

LIZ CLAIBORNE ACCESSORIES-SALES, INC.

LIZ CLAIBORNE COSMETICS, INC.

LIZ CLAIBORNE EXPORT, INC.

LIZ CLAIBORNE FOREIGN HOLDINGS, INC.

LIZ CLAIBORNE JAPAN, INC.

LIZ CLAIBORNE PUERTO RICO, INC.

LIZ CLAIBORNE SALES, INC.

LIZ CLAIBORNE SHOES, INC.

LUCKY BRAND DUNGAREES, INC.

LUCKY BRAND DUNGAREES STORES, INC.

MONET INTERNATIONAL, INC.

MONET PUERTO RICO, INC.

NONEE I, LLC (F/K/A ENYCE LLC)

NONEE I HOLDING, LLC (F/K/A ENYCE HOLDING, LLC)

SEGRETS, INC.

SKYLARK SPORT MARKETING CORPORATION

WESTCOAST CONTEMPO PROMENADE, INC.

WESTCOAST CONTEMPO RETAIL, INC.

WESTCOAST CONTEMPO USA, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	Senior Vice President — Chief Legal Officer,

General Counsel and Corporate Secretary 	 

S-1

 

	 	 	 	 	 

	 	 	 	 	 
	 	U.S. BANK, NATIONAL ASSOCIATION, as Trustee and
Collateral Agent 

 	 
	 	By:  	/s/ Wally Jones
 	 
	 	 	Name:  	Wally Jones 	 
	 	 	Title:  	Vice President 	 

S-2

 

	 	 	 	 	 

EXHIBIT A-1

FORM OF NOTE

[Face of Note]

     [Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture]

     [Insert the Private Placement Legend, if applicable pursuant to the provisions of the
Indenture]

     [Insert the Regulation S Temporary Global Note Legend, if applicable pursuant to the
provisions of the Indenture]

     [Insert the OID Legend, if applicable pursuant to the provisions of the Indenture]

A-1

 

CUSIP: [      ]

ISIN: [      ]

$____________

10.50% Senior Secured Note due 2019

			
	No. ___
	 	[$______________]

     LIZ CLAIBORNE, INC., a Delaware corporation, promises to pay to Cede & Co., or registered
assigns, the principal sum set forth on the Schedule of Increases or Decreases in Global Note
attached hereto on April 15, 2019.

     Interest Payment Dates: April 15 and October 15

     Record Dates: April 1 and October 1

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

A-2

 

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

	 	 	 	 	 
	 	LIZ CLAIBORNE, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated: ___________

A-3

 

     This is one of the Notes referred to in the within-mentioned Indenture:

	 	 	 	 	 
	 	U.S. Bank, National Association, as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

A-4

 

	 	 	 	 	 

[Back of Note]

10.50% Senior Secured Note Due 2019

     Capitalized terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

     1. LIZ CLAIBORNE, INC., a Delaware corporation (the “Issuer”), promises to pay interest on the
principal amount of this Note at 10.50% per annum from the date of issuance until maturity and
shall pay the Additional Interest, if any, payable pursuant to the Registration Rights Agreement
referred to below. The Issuer will pay interest and Additional Interest, if any, semi-annually in
arrears on April 15 and October 15 of each year, or if any such day is not a Business Day, on the
next succeeding Business Day (each, an “Interest Payment Date”). Interest on the Notes will accrue
from the most recent date to which interest has been paid or, if no interest has been paid, from
the Issue Date; provided that the first Interest Payment Date for Notes issued prior to October 15,
2011 shall be October 15, 2011. The Issuer will pay interest (including post-petition interest in
any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to
time on demand at the rate then in effect to the extent lawful; it will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest and Additional Interest, if any (without regard to any applicable grace periods), from
time to time on demand at the same rate to the extent lawful. Interest will be computed on the
basis of a 360-day year comprised of twelve 30-day months.

     2. METHOD OF PAYMENT. The Issuer will pay interest on the Notes (except defaulted interest)
and Additional Interest, if any, to the Persons who are registered Holders of Notes at the close of
business on the April 1 and October 1 (whether or not a Business Day), as the case may be, next
preceding the Interest Payment Date, even if such Notes are cancelled after such Record Date and on
or before such Interest Payment Date, except as provided in Section 2.12 of the Indenture with
respect to defaulted interest. The Notes will be payable as to principal, premium and Additional
Interest, if any, and interest at the office or agency of the Issuer of the Issuer maintained for
such purpose, or, at the option of the Issuer, payment of interest and Additional Interest, if any,
may be made by check mailed to the Holders at their addresses set forth in the register of Holders,
provided that payment by wire transfer of immediately available funds will be required with respect
to principal of and interest, premium and Additional Interest, if any, on all Global Notes and all
other Notes the Holders of which shall have provided wire transfer instructions to the Issuer or
the Paying Agent. Such payment shall be in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private debts.

     3. TRUSTEE; PAYING AGENT AND REGISTRAR. U.S. Bank, National Association, the Trustee under
the Indenture, will act as Paying Agent and Registrar. The Issuer may change any Paying Agent or
Registrar without notice to any Holder. None of the Issuer or any of its Affiliates may act in any
such capacity.

     4. INDENTURE AND SECURITY DOCUMENTS. The Issuer issued the Notes under an Indenture, dated as
of April 7, 2011 (the “Indenture”), among the Issuer, the Guarantors party thereto and the Trustee.
This Note is one of a duly authorized issue of Notes of the Issuer. The terms of the Notes
include those stated in the Indenture. The Notes are subject to all such terms, and Holders are
referred to the Indenture for a statement of such terms. To the extent any provision of this Note
conflicts with the express provisions of the Indenture, the provisions of the Indenture shall
govern and be controlling. Following the Issue Date, the Notes and the related Note Guarantees are
secured obligations of the Issuer and the relevant Guarantors. The Notes and the related Note
Guarantees are secured by a pledge of the Collateral pursuant to the Security Documents referred to
in the Indenture. The Note Liens, which secure the

A-5

 

Notes and the related Note Guarantees, and the ABL Liens are subject to the terms of the
Intercreditor Agreement. Each Holder, by accepting a Note agrees that the Note Liens and the ABL
Liens are subject to the terms of the Intercreditor Agreement. The Holders, by accepting a Note,
hereby authorize and direct the Trustee and the Collateral Agent to enter into the Intercreditor
Agreement on behalf of the Holders and agree that the Holders shall comply with the provisions of
the Intercreditor Agreement applicable to them in their capacities as such to the same extent as if
the Holders were parties thereto. The Indenture does not limit the aggregate principal amount of
Notes that may be issued thereunder.

     5. OPTIONAL REDEMPTION.

     (a) The Notes are subject to redemption, at the option of the Issuer, in whole or in part, at
any time on or after April 15, 2014 upon not less than 30 nor more than 60 days’ notice at the
Redemption Prices (expressed as percentages of the principal amount to be redeemed) set forth
below, plus accrued and unpaid interest, if any, to, but not including, the redemption date
(subject to the right of Holders of record on the relevant Record Date to receive interest due on
an Interest Payment Date that is on or prior to the redemption date), if redeemed during the
12-month period beginning on April 15 of the years indicated below:

	 	 	 	 	 
	 	 	Redemption	 
	Year	 	Price	 
	2014
	 	 	105.250	%
	2015
	 	 	103.500	%
	2016
	 	 	102.625	%
	2017 and thereafter
	 	 	100.000	%

     (b) Prior to April 15, 2014, the Issuer may redeem during each 12-month period commencing with
the Issue Date up to 10% of the aggregate principal amount of the Notes issued under the Indenture,
including any Additional Notes (but without duplication for Exchange Notes) at its option, from
time to time, upon not less than 30 nor more than 60 days’ prior notice mailed by first-class mail
to each Holder’s registered address, at a redemption price equal to 103% of the principal amount of
the Notes redeemed, plus accrued and unpaid interest, if any, to (but not including) the redemption
date (subject to the right of Holders of record on the relevant Record Date to receive interest due
on the relevant Interest Payment Date that is on or prior to the redemption date).

     (c) In addition, at any time (a “Make-Whole Redemption Date”) prior to April 15, 2015, the
Issuer may redeem the Notes, in whole or in part, at a Redemption Price equal to the principal
amount of the Notes plus the Applicable Premium plus accrued and unpaid interest, if any, to but
not including the date of redemption (subject to the right of Holders of record on the relevant
Record Date to receive interest due on the relevant Interest Payment Date that is on or prior to
the Make-Whole Redemption Date).

     (d) In addition to the optional redemption provisions in clauses (a) through (c) above, prior
to April 15, 2014, the Issuer may, from time to time, with the net proceeds of one or more
Qualified Equity Offerings, redeem up to an aggregate of 35% of the aggregate principal amount of
the outstanding Notes (including any Additional Notes, but without duplication for Exchange Notes),
at a Redemption Price equal to 110.50% of the principal amount thereof, plus accrued and unpaid
interest thereon, if any, to, but not including, the date of redemption; provided that at least 65%
of the principal amount of Notes (including any Additional Notes, but without duplication for
Exchange Notes) that have been issued under the Indenture remains outstanding immediately after the
occurrence of any such redemption (excluding Notes held by the Issuer or its Subsidiaries) and that
any such redemption occurs within 90 days following the closing of any such Qualified Equity
Offering.

A-6

 

     (e) Any notice of any redemption may be given prior to the redemption of any Notes, and any
such redemption or notice may, at the Issuer’s discretion, be subject to one or more conditions
precedent, including, but not limited to, completion of a Qualified Equity Offering or other
corporate transaction.

     6. MANDATORY REDEMPTION. The Issuer will not be required to make any mandatory redemption or
sinking fund payments with respect to the Notes. The Issuer may at any time and from time to time
purchase Notes in the open market, in privately negotiated transactions or otherwise.

     7. OFFERS TO REPURCHASE.

     (a) Upon the occurrence of a Change of Control, the Issuer shall be required to make a Change
of Control Offer in accordance with Section 4.15 of the Indenture.

     (b) In accordance with Section 4.10 of the Indenture, the Issuer will be required to offer to
purchase Notes upon the occurrence of certain events.

     8. DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in fully registered form only, without
coupons, in denominations of $2,000 and integral multiples of $1,000 in excess thereof. A Holder
shall register the transfer or exchange of Notes in accordance with the Indenture. The Registrar
may require a holder, among other things, to furnish appropriate endorsements and transfer
documents and to pay certain transfer taxes or similar governmental charges payable in connection
therewith as permitted by the Indenture. The Registrar need not register the transfer or exchange
of any Notes during a period beginning 15 days before the mailing of a redemption notice for any
Notes or portions thereof selected for redemption.

     9. PERSONS DEEMED OWNERS. The registered Holder of a Note may be treated as its owner for all
purposes.

     10. AMENDMENT, SUPPLEMENT AND WAIVER. The Indenture, the Guarantees or the Notes may be
amended or supplemented as provided in Article 9 of the Indenture and Events of Default may be
waived as provided in Article 6 of the Indenture.

     11. DEFAULTS AND REMEDIES. If an Event of Default occurs (other than an Event of Default
relating to certain events of bankruptcy, insolvency or reorganization of the Issuer) and is
continuing, the Trustee or the Holders of at least 25% in principal amount of the outstanding
Notes, in each case, by notice to the Issuer, may declare the principal of, premium, if any, and
accrued but unpaid interest on all the Notes to be due and payable. If an Event of Default
relating to certain events of bankruptcy, insolvency or reorganization of the Issuer or certain
Restricted Subsidiaries occurs, the principal of, premium, if any, and interest on all the Notes
shall become immediately due and payable without any declaration or other act on the part of the
Trustee or any Holders. Under certain circumstances, the Holders of a majority in principal amount
of the outstanding Notes may rescind any such acceleration with respect to the Notes and its
consequences.

     14. AUTHENTICATION. This Note shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose until authenticated by the manual signature of the Trustee or
an authenticating agent.

     15. ADDITIONAL RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND RESTRICTED DEFINITIVE NOTES.
In addition to the rights provided to Holders of Notes under the Indenture, Holders of Restricted
Global Notes and Restricted Definitive Notes shall have all the rights set

A-7

 

forth in the Registration Rights Agreement, including the right to receive Additional Interest
(as defined in the Registration Rights Agreement).

     16. GOVERNING LAW. THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THE
INDENTURE, THE NOTES AND THE GUARANTEES.

     17. CUSIP AND ISIN NUMBERS. Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Issuer has caused CUSIP and ISIN numbers to be
printed on the Notes and the Trustee may use CUSIP and ISIN numbers in notices of redemption as a
convenience to Holders. No representation is made as to the accuracy of such numbers either as
printed on the Notes or as contained in any notice of redemption and reliance may be placed only on
the other identification numbers placed thereon.

     18. REFERENCE TO INDENTURE AND OTHER RELATED DOCUMENTS. Reference is hereby made to the
Indenture, the Security Agreement, the Intercreditor Agreement and other Note Documents (copies of
which are on file at the Corporate Trust Office of the Trustee) and all indentures and agreements
supplemental thereto for a description of the rights thereunder of the Holders of the Notes, the
nature and extent of the security therefor, the rights, duties, protections and immunities of the
Trustee and the rights and obligations of the Issuer and the Note Guarantors thereunder, to all the
provisions of which the Holder, by acceptance hereof, assents and agrees.

     The Issuer will furnish to any Holder upon written request and without charge a copy of the
Indenture and/or the Registration Rights Agreement. Requests may be made to the Issuer at the
following address:

Liz Claiborne, Inc.

1441 Broadway

New York, New York 10018

Facsimile: (201) 295-6118

Attention: General Counsel

A-8

 

ASSIGNMENT FORM

     To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to:

(Insert assignee’s legal name)

 

(Insert assignee’s Soc. Sec. or tax I.D. no.)

 

 

 

 

(Print or type assignee’s name, address and zip code)

and irrevocably appoint

to transfer this Note on the books of the Issuer. The agent may substitute another to act for him.

Date: _____________________

	 	 	 	 	 

	 

	 	Your Signature:	 	 
	 

	 	 	 	 

(Sign exactly as your name appears on
the face of this Note)

Signature Guarantee*: ________________________

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

A-9

 

OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Note purchased by the Issuer pursuant to Section 4.10 or
4.15 of the Indenture, check the appropriate box below:

o Section 4.10             o Section 4.15

     If you want to elect to have only part of this Note purchased by the Issuer pursuant to
Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have purchased:

$_______________

Date: _____________________

	 	 	 	 	 	 	 

	 

	 	Your Signature: 	 	 	 	 
	 

	 	 	 

(Sign exactly as your name appears on
the face of this Note)
	 	 
	 

	 	Tax Identification No.:	 	 	 
	 

	 	 	 	 

	 	 

Signature Guarantee*: ________________________

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

A-10

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE*

     The initial outstanding principal amount of this Global Note is $_______. The following
exchanges of a part of this Global Note for an interest in another Global Note or for a Definitive
Note, or exchanges of a part of another Global or Definitive Note for an interest in this Global
Note, have been made:

	 	 	 	 	 	 	 	 	 
	 
	 	Amount of	 	 	 	 	 	 
	 
	 	decrease
	 	Amount of increase
	 	Principal Amount of
	 	Signature of
	 
	 	in Principal
	 	in Principal
	 	this Global Note
	 	authorized officer
	Date of
	 	Amount of
	 	Amount of this
	 	following such
	 	of Trustee or
	Exchange
	 	this Global Note
	 	Global Note
	 	decrease or increase
	 	Custodian
	 	 	 	 	 	 	 	 	 

 

			
	*	 	This schedule should be included only if the Note is issued in global form.

A-11

 

EXHIBIT B

FORM OF CERTIFICATE OF TRANSFER

Liz Claiborne, Inc.

1441 Broadway

New York, New York 10018

Attention: General Counsel

U.S. Bank, National Association

Corporate Trust Services

150 Fourth Avenue North, 2nd Floor

Nashville, TN 37219

Re: 10.50% Senior Secured Notes due 2019

     Reference is hereby made to the Indenture, dated as of April 7, 2011 (the “Indenture”), among
Liz Claiborne, Inc., as issuer (the “Issuer”), the Guarantors party thereto and U.S. Bank, National
Association, as trustee. Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

     __________________________ (the “Transferor”) owns and proposes to transfer the Note[s] or
interest in such Note[s] specified in Annex A hereto, in the principal amount of $______________ in
such Note[s] or interests (the “Transfer”), to ________________________ (the “Transferee”), as
further specified in Annex A hereto. In connection with the transfer, the Transferor hereby
certifies that:

[CHECK ALL THAT APPLY]

     1. o Check if Transferee will take delivery of a beneficial interest in the 144A Global Note
or a Restricted Definitive Note pursuant to Rule 144A. The Transfer is being effected pursuant
to and in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities
Act”), and, accordingly, the Transferor hereby further certifies that the beneficial interest or
Definitive Note is being transferred to a Person that the Transferor reasonably believes is
purchasing the beneficial interest or Definitive Note for its own account, or for one or more
accounts with respect to which such Person exercises sole investment discretion, and such Person
and each such account is a “qualified institutional buyer” within the meaning of Rule 144A in a
transaction meeting the requirements of Rule 144A, and such Transfer is in compliance with any
applicable blue sky securities laws of any state of the United States. Upon consummation of the
proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the 144A Global Note and/or the Restricted Definitive Note and
in the Indenture and the Securities Act.

     2. o Check if Transferee will take delivery of a beneficial interest in the Regulation S
Global Note or a Restricted Definitive Note pursuant to Regulation S. The Transfer is being
effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and,
accordingly, the Transferor hereby further certifies that (i) the Transfer is not being made to a
Person in the United States and (x) at the time the buy order was originated, the Transferee was
outside the United States or such Transferor and any Person acting on its behalf reasonably
believed and believes that the Transferee was outside the United States or (y) the transaction was
executed in, on or through the facilities of a designated offshore securities market and neither such Transferor nor any Person acting on its
behalf knows that

B-1

 

the transaction was prearranged with a buyer in the United States, (ii) no directed
selling efforts have been made in contravention of the requirements of Rule 903(b) or Rule 904(b)
of Regulation S under the Securities Act and, (iii) the transaction is not part of a plan or scheme
to evade the registration requirements of the Securities Act. Upon consummation of the proposed
transfer in accordance with the terms of the Indenture, the transferred beneficial interest or
Definitive Note will be subject to the restrictions on Transfer enumerated in the Private Placement
Legend printed on the Regulation S Global Note and/or the Restricted Definitive Note and in the
Indenture and the Securities Act.

     3. o Check and complete if Transferee will take delivery of a beneficial interest in the IAI
Global Note or a Restricted Definitive Note pursuant to any provision of the Securities Act other
than Rule 144A or Regulation S. The Transfer is being effected in compliance with the transfer
restrictions applicable to beneficial interests in Restricted Global Notes and Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act and any applicable blue
sky securities laws of any state of the United States, and accordingly the Transferor hereby
further certifies that (check one):

     (a) o such Transfer is being effected pursuant to and in accordance with Rule 144 under
the Securities Act;

or

     (b) o such Transfer is being effected to the Issuer, Issuer or a subsidiary thereof;

or

     (c) o such Transfer is being effected pursuant to an effective registration statement
under the Securities Act and in compliance with the prospectus delivery requirements of the
Securities Act;

or

     (d) o such Transfer is being effected to an Institutional Accredited Investor and
pursuant to an exemption from the registration requirements of the Securities Act other than
Rule 144A, Rule 144, Rule 903 or Rule 904, and the Transferor hereby further certifies that
it has not engaged in any general solicitation within the meaning of Regulation D under the
Securities Act and the Transfer complies with the transfer restrictions applicable to
beneficial interests in a Restricted Global Note or Restricted Definitive Notes and the
requirements of the exemption claimed, which certification is supported by (1) a certificate
executed by the Transferee in the form of Exhibit D to the Indenture and (2) if such
Transfer is in respect of a principal amount of Notes at the time of transfer of less than
$250,000, an Opinion of Counsel provided by the Transferor or the Transferee (a copy of
which the Transferor has attached to this certification), to the effect that such Transfer
is in compliance with the Securities Act. Upon consummation of the proposed transfer in
accordance with the terms of the Indenture, the transferred beneficial interest or
Definitive Note will be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the IAI Global Note and/or the Restricted Definitive Notes and
in the Indenture and the Securities Act.

     4. o Check if Transferee will take delivery of a beneficial interest in an Unrestricted
Global Note or of an Unrestricted Definitive Note.

     (a) o Check if Transfer is pursuant to Rule 144. (i) The Transfer is being effected pursuant to
and in accordance with Rule 144 under the Securities Act and in compliance with the transfer

B-2

 

restrictions contained in the Indenture and any applicable blue sky securities laws of any
state of the United States and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with the Securities Act.
Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on
Restricted Definitive Notes and in the Indenture.

     (b) o Check if Transfer is Pursuant to Regulation S. (i) The Transfer is being effected pursuant
to and in accordance with Rule 903 or Rule 904 under the Securities Act and in compliance with the
transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any
state of the United States and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with the Securities Act.
Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on
Restricted Definitive Notes and in the Indenture.

     (c) o Check if Transfer is Pursuant to Other Exemption. (i) The Transfer is being effected
pursuant to and in compliance with an exemption from the registration requirements of the
Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance with the transfer
restrictions contained in the Indenture and any applicable blue sky securities laws of any State of
the United States and (ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the Securities Act. Upon
consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will not be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes or
Restricted Definitive Notes and in the Indenture.

     (d) o Check if Transfer is Pursuant to Registration Statement. Such Transfer is being effected
pursuant to an effective registration statement under the Securities Act and in compliance with the
prospectus delivery requirements of the Securities Act.

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Issuer.

	 	 	 	 	 
	 	 	 
	 	 	 
	 	[Insert Name of Transferor] 	 
	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated: _____________________

B-3

 

ANNEX A TO CERTIFICATE OF TRANSFER

	 	 	 	 	 	 	 

	1.	 	The Transferor owns and proposes to transfer the following:
	 
	 	 	 	 	 	 
	[CHECK ONE OF (a) OR (b)]
	 
	 	 	 	 	 	 
	 	 	(a)	 	o a beneficial interest in the:
	 
	 	 	 	 	 	 
	 

	 	 	 	(i)
	 	o 144A Global Note (CUSIP ________), or
	 
	 	 	 	 	 	 
	 

	 	 	 	(ii)
	 	o Regulation S Global Note (CUSIP ______), or
	 
	 	 	 	 	 	 
	 

	 	 	 	(iii)
	 	o IAI Global Note (CUSIP _________); or
	 
	 	 	 	 	 	 
	 	 	(b)	 	o a Restricted Definitive Note.
	 
	 	 	 	 	 	 
	2.	 	After the Transfer the Transferee will hold:
	 
	 	 	 	 	 	 
	[CHECK ONE]
	 
	 	 	 	 	 	 
	 	 	(a)	 	o a beneficial interest in the:
	 
	 	 	 	 	 	 
	 

	 	 	 	(i)
	 	o 144A Global Note (CUSIP ________), or
	 
	 	 	 	 	 	 
	 

	 	 	 	(ii)
	 	o Regulation S Global Note (CUSIP ______), or
	 
	 	 	 	 	 	 
	 

	 	 	 	(iii)
	 	o IAI Global Note (CUSIP _________); or
	 
	 	 	 	 	 	 
	 

	 	 	 	(iv)
	 	o Unrestricted Global Note (CUSIP ________); or
	 
	 	 	 	 	 	 
	 	 	(b)	 	o a Restricted Definitive Note; or
	 
	 	 	 	 	 	 
	 	 	(c)	 	o an Unrestricted Definitive Note,
	 
	 	 	 	 	 	 
	 	 	in accordance with the terms of the Indenture.

B-4

 

EXHIBIT C

FORM OF CERTIFICATE OF EXCHANGE

Liz Claiborne, Inc.

1441 Broadway

New York, New York 10018

Attention: General Counsel

U.S. Bank, National Association

Corporate Trust Services

150 Fourth Avenue North, 2nd Floor

Nashville, TN 37219

Re: 10.50% Senior Secured Notes due 2019

(CUSIP _____)

     Reference is hereby made to the Indenture, dated as of April 7, 2011 (the “Indenture”), among
Liz Claiborne, Inc., as issuer (the “Issuer”), the Guarantors party thereto and U.S. Bank, National
Association, as trustee. Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

     _________________________ (the “Owner”) owns and proposes to exchange the Note[s] or interest
in such Note[s] specified herein, in the principal amount of $___________________ in such Note[s]
or interests (the “Exchange”). In connection with the Exchange, the Owner hereby certifies that:

     1. o Exchange of Restricted Definitive Notes or Beneficial Interests in a Restricted Global
Note for Unrestricted Definitive Notes or Beneficial Interests in an Unrestricted Global Note

     (a) o Check if Exchange is from beneficial interest in a Restricted Global Note to beneficial
interest in an Unrestricted Global Note. In connection with the Exchange of the Owner’s beneficial
interest in a Restricted Global Note for a beneficial interest in an Unrestricted Global Note in an
equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired
for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to the Global Notes and pursuant to and in accordance
with the Securities Act of 1933, as amended (the “Securities Act”), (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the beneficial interest in an Unrestricted
Global Note is being acquired in compliance with any applicable blue sky securities laws of any
state of the United States.

     (b) o Check if Exchange is from beneficial interest in a Restricted Global Note to Unrestricted
Definitive Note. In connection with the Exchange of the Owner’s beneficial interest in a Restricted
Global Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the Definitive Note
is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to the Restricted Global Notes and
pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained
in the Indenture and the Private Placement Legend are not required in order to maintain compliance
with the Securities

C-1

 

Act and (iv) the Definitive Note is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

     (c) o Check if Exchange is from Restricted Definitive Note to beneficial interest in an
Unrestricted Global Note. In connection with the Owner’s Exchange of a Restricted Definitive Note
for a beneficial interest in an Unrestricted Global Note, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions applicable to Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions
on transfer contained in the Indenture and the Private Placement Legend are not required in order
to maintain compliance with the Securities Act and (iv) the beneficial interest is being acquired
in compliance with any applicable blue sky securities laws of any state of the United States.

     (d) o Check if Exchange is from Restricted Definitive Note to Unrestricted Definitive Note. In
connection with the Owner’s Exchange of a Restricted Definitive Note for an Unrestricted Definitive
Note, the Owner hereby certifies (i) the Unrestricted Definitive Note is being acquired for the
Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in accordance
with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with the Securities Act
and (iv) the Unrestricted Definitive Note is being acquired in compliance with any applicable blue
sky securities laws of any state of the United States.

     2. Exchange of Restricted Definitive Notes or Beneficial Interests in Restricted Global
Notes for Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes

     (a) o Check if Exchange is from beneficial interest in a Restricted Global Note to Restricted
Definitive Note. In connection with the Exchange of the Owner’s beneficial interest in a Restricted
Global Note for a Restricted Definitive Note with an equal principal amount, the Owner hereby
certifies that the Restricted Definitive Note is being acquired for the Owner’s own account without
transfer. Upon consummation of the proposed Exchange in accordance with the terms of the Indenture,
the Restricted Definitive Note issued will continue to be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Definitive Note and in the
Indenture and the Securities Act.

     (b) o Check if Exchange is from Restricted Definitive Note to beneficial interest in a
Restricted Global Note. In connection with the Exchange of the Owner’s Restricted Definitive Note
for a beneficial interest in the [CHECK ONE] o 144A Global Note, o
Regulation S Global Note, o IAI
Global Note with an equal principal amount, the Owner hereby certifies (i) the beneficial interest
is being acquired for the Owner’s own account without transfer and (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to the Restricted Global Notes and
pursuant to and in accordance with the Securities Act, and in compliance with any applicable blue
sky securities laws of any state of the United States. Upon consummation of the proposed Exchange
in accordance with the terms of the Indenture, the beneficial interest issued will be subject to
the restrictions on transfer enumerated in the Private Placement Legend printed on the relevant
Restricted Global Note and in the Indenture and the Securities Act.

C-2

 

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Issuer.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	[Insert Name of Transferor] 	 
	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated: _____________________

C-3

 

EXHIBIT D

FORM OF CERTIFICATE FROM

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

Liz Claiborne, Inc.

1441 Broadway

New York, New York 10018

Facsimile: (201) 295-6118

Attention: General Counsel

U.S. Bank, National Association

Corporate Trust Services

150 Fourth Avenue North, 2nd Floor

Nashville, TN 37219

Re: 10.50% Senior Secured Notes due 2019

     Reference is hereby made to the Indenture, dated as of April 7, 2011 (the “Indenture”), among
Liz Claiborne, Inc., as issuer (the “Issuer”), the Guarantors party thereto and U.S. Bank, National
Association, as trustee. Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

     In connection with our proposed purchase of $______________ aggregate principal amount of:

     (a) o a beneficial interest in a Global Note, or

     (b) o a Definitive Note,

     we confirm that:

     1. We understand that any subsequent transfer of the Notes or any interest therein is subject
to certain restrictions and conditions set forth in the Indenture and the undersigned agrees to be
bound by, and not to resell, pledge or otherwise transfer the Notes or any interest therein except
in compliance with, such restrictions and conditions and the Securities Act of 1933, as amended
(the “Securities Act”).

     2. We understand that the offer and sale of the Notes have not been registered under the
Securities Act, and that the Notes and any interest therein may not be offered or sold except as
permitted in the following sentence. We agree, on our own behalf and on behalf of any accounts for
which we are acting as hereinafter stated, that if we should sell the Notes or any interest
therein, we will do so only (A) to the Issuer or any subsidiary thereof, (B) in accordance with
Rule 144A under the Securities Act to a “qualified institutional buyer” (as defined therein), (C)
to an institutional “accredited investor” (as defined below) that, prior to such transfer,
furnishes (or has furnished on its behalf by a U.S. broker-dealer) to you and to the Issuer a
signed letter substantially in the form of this letter and, if such transfer is in respect of a
principal amount of Notes, at the time of transfer of less than $250,000, an Opinion of Counsel in
form reasonably acceptable to the Issuer to the effect that such transfer is in compliance with the
Securities Act, (D) outside the United States in accordance with Rule 904 of Regulation S under the
Securities Act, (E) pursuant to the provisions of Rule 144(k) under the Securities Act or (F)
pursuant to an effective registration statement under the Securities Act, and we further agree to
provide to any Person purchasing the

D-1

 

Definitive Note or beneficial interest in a Global Note from us in a transaction meeting the
requirements of clauses (A) through (E) of this paragraph a notice advising such purchaser that
resales thereof are restricted as stated herein.

     3. We understand that, on any proposed resale of the Notes or beneficial interest therein, we
will be required to furnish to you and the Issuer such certifications, legal opinions and other
information as you and the Issuer may reasonably require to confirm that the proposed sale complies
with the foregoing restrictions. We further understand that the Notes purchased by us will bear a
legend to the foregoing effect.

     4. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) of Regulation D under the Securities Act) and have such knowledge and experience in financial
and business matters as to be capable of evaluating the merits and risks of our investment in the
Notes, and we and any accounts for which we are acting are each able to bear the economic risk of
our or its investment.

     5. We are acquiring the Notes or beneficial interest therein purchased by us for our own
account or for one or more accounts (each of which is an institutional “accredited investor”) as to
each of which we exercise sole investment discretion.

     You and the Issuer are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	[Insert Name of Accredited Investor] 	 
	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated: ________________

D-2

 

EXHIBIT E

FORM OF NOTATION OF GUARANTEE

     For value received, each Guarantor (which term includes any successor Person under the
Indenture) has, jointly and severally, unconditionally guaranteed, to the extent set forth in the
Indenture and subject to the provisions in the Indenture dated as of April 7, 2011 (the
“Indenture”) among Liz Claiborne, Inc. (the “Issuer”), the Guarantors party thereto and U.S. Bank,
National Association, as trustee (the “Trustee”), (a) the due and punctual payment of the principal
of, premium and Additional Interest, if any, and interest on, the Notes, whether at maturity, by
acceleration, redemption or otherwise, the due and punctual payment of interest on overdue
principal of and interest on the Notes, if any, if lawful, and the due and punctual performance of
all other obligations of the Issuer to the Holders or the Trustee or Collateral Agent all in
accordance with the terms of the Indenture and other Note Documents and (b) in case of any
extension of time of payment or renewal of any Notes or any of such other obligations, that the
same will be promptly paid in full when due or performed in accordance with the terms of the
extension or renewal, whether at stated maturity, by acceleration or otherwise. The obligations of
the Guarantors to the Holders of Notes and to the Trustee and Collateral Agent pursuant to the Note
Guarantee, the Indenture and other Note Documents are expressly set forth in Article 10 of the
Indenture and reference is hereby made to the Indenture for the precise terms of the Note
Guarantee.

     Capitalized terms used but not defined herein have the meanings given to them in the
Indenture.

	 	 	 	 	 
	 	BOODLE, INC. (F/K/A LCI LAUNDRY)

DB NEWCO CORP.

HAVANA, LLC

JERG, INC. (F/K/A C&C California, Inc.)

JUICY COUTURE, INC.

KATE SPADE LLC

L.C. AUGUSTA, INC.

L.C. CARIBBEAN HOLDINGS, INC.

L.C. LIBRA, LLC

L.C. LICENSING, INC.

L.C. SERVICE COMPANY, INC.

L.C. SPECIAL MARKETS, INC.

LCI ACQUISITION U.S., INC.

LCI HOLDINGS, INC.

LCI INVESTMENTS, INC.

LIZ CLAIBORNE ACCESSORIES, INC.

LIZ CLAIBORNE ACCESSORIES-SALES, INC.

LIZ CLAIBORNE COSMETICS, INC.

LIZ CLAIBORNE EXPORT, INC.

LIZ CLAIBORNE FOREIGN HOLDINGS, INC.

LIZ CLAIBORNE JAPAN, INC.

LIZ CLAIBORNE PUERTO RICO, INC.

LIZ CLAIBORNE SALES, INC.

LIZ CLAIBORNE SHOES, INC.

LUCKY BRAND DUNGAREES, INC.

LUCKY BRAND DUNGAREES STORES, INC.

MONET INTERNATIONAL, INC.

 	 

E-1

 

	 	 	 	 	 

	 	 	 	 	 
	 	MONET PUERTO RICO, INC.

NONEE I, LLC (F/K/A ENYCE LLC)

NONEE I HOLDING, LLC (F/K/A ENYCE HOLDING, LLC)

SEGRETS, INC.

SKYLARK SPORT MARKETING CORPORATION

WESTCOAST CONTEMPO PROMENADE, INC.

WESTCOAST CONTEMPO RETAIL, INC.

WESTCOAST CONTEMPO USA, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

E-2exv4w2

Exhibit 4.2

REGISTRATION RIGHTS AGREEMENT

by and among

Liz Claiborne, Inc.

the Guarantors Listed on Schedule I hereto

and

Merrill Lynch, Pierce, Fenner & Smith Incorporated

as representative of the several Initial Purchasers

Dated as of April 7, 2011

 

 

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (this “Agreement”) is made and entered into as of April 7,
2011, by and among Liz Claiborne, Inc., a Delaware corporation (the “Company”), the guarantors
listed on Schedule I hereto (collectively, the “Guarantors”) and Merrill Lynch, Pierce, Fenner &
Smith Incorporated, as representative of the several initial purchasers (collectively, the “Initial
Purchasers”), each of whom has agreed to purchase the Company’s 10.50% Senior Secured Notes due
2019 (the “Initial Notes”) fully and unconditionally guaranteed by the Guarantors (the
“Guarantees”) pursuant to the Purchase Agreements (as defined below). The Initial Notes and the
Guarantees attached thereto are herein collectively referred to as the “Initial Securities.”

     This Agreement is made pursuant to the Purchase Agreement, dated April 1, 2011 and the
Purchase Agreement dated April 5, 2011 (collectively, the “Purchase Agreements”), by and among the
Company, the Guarantors and the Initial Purchasers (i) for the benefit of the Initial Purchasers
and (ii) for the benefit of the holders from time to time of Initial Securities, including the
Initial Purchasers. In order to induce the Initial Purchasers to purchase the Initial Securities,
the Company has agreed to provide the registration rights set forth in this Agreement. The
execution and delivery of this Agreement is a condition to the obligations of the Initial
Purchasers set forth in Section 5(f) of each Purchase Agreement. Capitalized terms used herein and
not otherwise defined shall have the meaning assigned to them in the Indenture, dated as of April
7, 2011 (as amended or supplemented from time to time, the “Indenture”), by and among the Company,
the Guarantors and U.S. Bank National Association, as trustee (the “Trustee”), relating to the
Initial Notes and the Exchange Notes (as defined below).

     The parties hereby agree as follows:

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

     Additional Interest: As defined in Section 5 hereof.

     Advice: As defined in Section 6(d) hereof.

     Affiliate: As defined in Rule 144.

     Broker-Dealer: Any broker or dealer registered under the Exchange Act.

     Business Day: Any day other than a Saturday, Sunday or U.S. federal holiday or a day on which
banking institutions or trust companies located in New York, New York are authorized or obligated
to be closed. If the time to perform any action hereunder falls on a day that is not a Business
Day, such time will be extended to the next Business Day and no Additional Interest shall accrue
for the intervening period.

     Closing Date: The date of this Agreement.

     Commission: The Securities and Exchange Commission.

 

 

     Consummate: An Exchange Offer shall be deemed “Consummated” for purposes of this Agreement
upon the occurrence of (i) the filing and effectiveness under the Securities Act of the Exchange
Offer Registration Statement relating to the Exchange Securities to be issued in the Exchange
Offer, (ii) the maintenance of such Exchange Offer Registration Statement continuously effective
and the keeping of the Exchange Offer open for a period not less than the minimum period required
pursuant to Section 3(b) hereof, and (iii) the delivery by the Company to the Registrar under the
Indenture of Exchange Securities in the same aggregate principal amount as the aggregate principal
amount of Initial Securities that were validly tendered (and not withdrawn) by Holders thereof
pursuant to the Exchange Offer.

     Exchange Act: The Securities Exchange Act of 1934, as amended.

     Exchange Date: As defined in Section 3(a) hereto.

     Exchange Offer: The registration by the Company under the Securities Act of the issuance of
the Exchange Securities pursuant to a Registration Statement pursuant to which the Company offers
the Holders of all outstanding Transfer Restricted Securities the opportunity to exchange all such
outstanding Transfer Restricted Securities held by such Holders for Exchange Securities in an
aggregate principal amount equal to the aggregate principal amount of the Transfer Restricted
Securities tendered in such exchange offer by such Holders.

     Exchange Offer Registration Statement: The Registration Statement relating to the Exchange
Offer, including the related Prospectus.

     Exchange Securities or Exchange Notes: The 10.50% Senior Secured Notes due 2019, of the same
series under the Indenture as the Initial Notes and the Guarantees attached thereto, to be issued
to Holders in exchange for Transfer Restricted Securities pursuant to this Agreement.

     FINRA: Financial Industry Regulatory Authority, Inc.

     Holders: As defined in Section 2(b) hereof.

     Indemnified Holder: As defined in Section 8(a) hereof.

     Indenture: As defined in the preamble hereto.

     Initial Notes: As defined in the preamble hereto.

     Initial Placement: The issuance and sale by the Company of the Initial Securities to the
Initial Purchasers pursuant to the Purchase Agreements.

     Initial Purchasers: As defined in the preamble hereto.

     Initial Securities: As defined in the preamble hereto.

     Interest Payment Date: As defined in the Indenture and the Securities.

-2-

 

     Person: An individual, partnership, corporation, trust or unincorporated organization, or a
government or agency or political subdivision thereof.

     Prospectus: The prospectus included in a Registration Statement, as amended or supplemented
by any prospectus supplement and by all other amendments thereto, including post-effective
amendments, and all material incorporated by reference into such Prospectus.

     Registration Default: As defined in Section 5 hereof.

     Registration Statement: Any registration statement of the Company and the Guarantors relating
to (a) an offering of Exchange Securities pursuant to an Exchange Offer or (b) the registration for
resale of Transfer Restricted Securities pursuant to the Shelf Registration Statement, in each
case, (i) that is filed pursuant to the provisions of this Agreement, (ii) including the Prospectus
included therein, and (iii) including all amendments and supplements thereto (including
post-effective amendments) and all exhibits and material incorporated by reference therein.

     Rule 144: Rule 144 promulgated under the Securities Act.

     Securities: The Initial Securities and/or the Exchange Securities, as applicable.

     Securities Act: The Securities Act of 1933, as amended.

     Shelf Effectiveness Deadline: As defined in Section 4(a) hereof.

     Shelf Registration Statement: As defined in Section 4(a) hereof.

     Transfer Restricted Securities: The Initial Securities; provided that the Initial Securities
shall cease to be Transfer Restricted Securities on the earliest to occur of (i) the date on which
a Registration Statement with respect to such Initial Securities has become effective under the
Securities Act and such Initial Securities have been exchanged or disposed of pursuant to such
Registration Statement or (ii) the date on which such Initial Securities cease to be outstanding.

     Trust Indenture Act: The Trust Indenture Act of 1939, as amended.

     Underwritten Registration or Underwritten Offering: A registration in which securities of the
Company are sold to an underwriter for reoffering to the public.

     SECTION 2. Securities Subject to this Agreement.

     (a) Transfer Restricted Securities. The securities entitled to the benefits of this Agreement
are the Transfer Restricted Securities.

     (b) Holders of Transfer Restricted Securities. A Person is deemed to be a holder of Transfer
Restricted Securities (each, a “Holder”) whenever such Person owns Transfer Restricted Securities.

-3-

 

     SECTION 3. Registered Exchange Offer.

     (a) Unless the Exchange Offer shall not be permissible under applicable law or Commission
policy (after the procedures set forth in Section 6(a)(i) hereof have been complied with), or there
are no Transfer Restricted Securities outstanding, the Company and the Guarantors shall (i) cause
the Exchange Offer Registration Statement to be filed with the Commission, (ii) use their
reasonable best efforts to cause such Exchange Offer Registration Statement to become effective,
(iii) in connection with the foregoing, use reasonable best efforts to (A) file all pre-effective
amendments to such Exchange Offer Registration Statement as may be necessary in order to cause it
to become effective, (B) file, if applicable, a post-effective amendment to such Exchange Offer
Registration Statement pursuant to Rule 430A under the Securities Act and (C) cause all necessary
filings, if any, in connection with the registration and qualification of the Exchange Securities
to be made under the state securities or blue sky laws of such jurisdictions as are necessary to
permit Consummation of the Exchange Offer, provided, however, that neither the Company nor any
Guarantor shall be required to take any action that would subject them to general service of
process or taxation in any jurisdiction where they are not already subject, and (iv) upon the
effectiveness of such Exchange Offer Registration Statement, commence the Exchange Offer. Each of
the Company and the Guarantors shall use their reasonable best efforts to Consummate the Exchange
Offer not later than 366 days following the Closing Date (such 366th day being the “Exchange
Date”). The Exchange Offer, if required pursuant to this Section 3(a), shall be on the appropriate
form permitting registration of the Exchange Securities to be offered in exchange for the Transfer
Restricted Securities and to permit resales of Initial Securities held by Broker-Dealers as
contemplated by Section 3(c) hereof.

     (b) If an Exchange Offer Registration Statement is required to be filed and declared effective
pursuant to Section 3(a) above, the Company and the Guarantors shall use reasonable best efforts to
cause the Exchange Offer Registration Statement to be effective continuously, and shall keep the
Exchange Offer open for a period of not less than the minimum period required under applicable
federal and state securities laws to Consummate the Exchange Offer; provided, however, that in no
event shall such period be less than 20 Business Days after the date notice of the Exchange Offer
is mailed to the Holders. The Company shall cause the Exchange Offer to comply with all applicable
federal and state securities laws. No securities other than the Exchange Securities shall be
included in the Exchange Offer Registration Statement.

     (c) The Company shall indicate in a “Plan of Distribution” section contained in the Prospectus
forming a part of the Exchange Offer Registration Statement that any Broker-Dealer who holds
Transfer Restricted Securities that were acquired for its own account as a result of market-making
activities or other trading activities (other than Initial Securities acquired directly from the
Company), may exchange such Transfer Restricted Securities pursuant to the Exchange Offer. Such
“Plan of Distribution” section shall also contain all other information with respect to such
resales by Broker-Dealers that the Commission may require in order to permit such resales pursuant
thereto, but such “Plan of Distribution” shall not name any such Broker-Dealer or disclose the
amount of Transfer Restricted Securities held by any such Broker-Dealer except to the extent
required by the Commission as a result of a change in policy after the date of this Agreement.

-4-

 

     Because such Broker-Dealer may be deemed to be an “underwriter” within the meaning of the
Securities Act and must, therefore, deliver a prospectus meeting the requirements of the Securities
Act in connection with resales of any Exchange Securities received by such Broker-Dealer in the
Exchange Offer, the Company and the Guarantors shall permit the use of the Prospectus contained in
the Exchange Offer Registration Statement by such Broker-Dealer to satisfy such prospectus delivery
requirement. The Company and the Guarantors shall use their reasonable best efforts to keep the
Exchange Offer Registration Statement continuously effective, supplemented and amended as required
by the provisions of Section 6(c) hereof to the extent necessary to ensure that it is available for
resales of Transfer Restricted Securities acquired by Broker-Dealers for their own accounts as a
result of market-making activities or other trading activities, and to ensure that it conforms with
the requirements of this Agreement, the Securities Act and the policies, rules and regulations of
the Commission as announced from time to time, for a period ending on the earlier of (i) 180 days
from the date on which the Exchange Offer Registration Statement is declared effective and (ii) the
date on which a Broker-Dealer is no longer required to deliver a prospectus in connection with
market-making or other trading activities.

     Upon request, the Company shall provide sufficient copies of the latest version of such
Prospectus to such Broker-Dealers within five Business Days after such request at any time during
such 180-day (or shorter, as provided in the foregoing sentence) period in order to facilitate such
resales.

     SECTION 4. Shelf Registration.

     (a) Shelf Registration. If (i) the Company and the Guarantors are not required to file an
Exchange Offer Registration Statement or to Consummate the Exchange Offer solely because the
Exchange Offer is not permitted by applicable law or Commission policy (after the procedures set
forth in Section 6(a)(i) hereof have been complied with), (ii) for any reason the Exchange Offer is
not Consummated by the Exchange Date, or (iii) prior to the Exchange Date, (A) the Initial
Purchasers request from the Company with respect to Transfer Restricted Securities not eligible to
be exchanged for Exchange Securities in the Exchange Offer or (B) any Holder of Transfer Restricted
Securities notifies the Company that (1) such Holder is prohibited by applicable law or Commission
policy from participating in the Exchange Offer, (2) such Holder may not resell the Exchange
Securities acquired by it in the Exchange Offer to the public without delivering a prospectus and
that the Prospectus contained in the Exchange Offer Registration Statement is not appropriate or
available for such resales by such Holder, or (3) such Holder is a Broker-Dealer and holds Transfer
Restricted Securities acquired directly from the Company or one of its Affiliates, then the Company
and the Guarantors shall use their reasonable best efforts to cause to be filed and declared
effective a shelf registration statement pursuant to Rule 415 under the Securities Act, which may
be an amendment to the Exchange Offer Registration Statement (in either event, the “Shelf
Registration Statement”) on or prior to the earlier of (i) the 90th day after the date such
obligation arises pursuant to this clause and (ii) the 90th day after the Closing Date (such later
date being the “Shelf Effectiveness Deadline”), which Shelf Registration Statement shall provide
for resales of all Transfer Restricted Securities the Holders of which shall have provided the
information required pursuant to Section 4(b) hereof.

-5-

 

     Each of the Company and the Guarantors shall use their reasonable best efforts to keep such
Shelf Registration Statement continuously effective, supplemented and amended as required by the
provisions of Sections 6(b) and (c) hereof to the extent necessary to ensure that it is available
for resales of Transfer Restricted Securities by the Holders of such Securities entitled to the
benefit of this Section 4(a), and to ensure that it conforms with the requirements of this
Agreement in all material respect, the Securities Act and the policies, rules and regulations of
the Commission as announced from time to time, from the date on which the Shelf Registration
Statement is declared effective by the Commission until the expiration of the one-year period
referred to in Rule 144 applicable to securities held by non-affiliates under the Securities Act
(or shorter period that will terminate when all the Transfer Restricted Securities covered by such
Shelf Registration Statement have been sold pursuant to such Shelf Registration Statement).

     (b) Provision by Holders of Certain Information in Connection with the Shelf Registration
Statement. No Holder of Transfer Restricted Securities may include any of its Transfer Restricted
Securities in any Shelf Registration Statement pursuant to this Agreement unless and until such
Holder furnishes to the Company in writing, within 20 Business Days after receipt of a request
therefor, such information as required by Regulation S-K of the Securities Act or, reasonably
requested by the Company for use in connection with any Shelf Registration Statement or Prospectus
or preliminary Prospectus included therein. No Holder shall be entitled to Additional Interest
pursuant to Section 5 hereof unless and until (and from and after such time) such Holder shall have
provided all such information. Each Holder as to which any Shelf Registration Statement is being
effected agrees to furnish promptly to the Company all information required to be disclosed in
order to make the information previously furnished to the Company by such Holder not materially
misleading and shall promptly supply such other information as the Company may from time to time
reasonably request.

     SECTION 5. Additional Interest. If (i) the Exchange Offer has not been Consummated by the
Exchange Date, (ii) any Shelf Registration Statement, if required hereby, has not been declared
effective by the Commission by the Shelf Effectiveness Deadline or (iii) any Registration Statement
required by this Agreement has been declared effective but ceases to be effective or otherwise
available at any time for more than 60 calendar days in a twelve month period during which it is
required to be effective under this Agreement (each such event referred to in clauses (i) through
(iii), a “Registration Default”), the Company hereby agrees that the interest rate borne by the
Transfer Restricted Securities shall be increased by 0.25% per annum during the 90-day period
immediately following the occurrence of any Registration Default and shall increase by 0.25% per
annum at the end of each subsequent 90-day period (such increase, “Additional Interest”), but in no
event shall such increase exceed 1.00% per annum on the principal amount of Transfer Restricted
Securities; provided that the Company and the Guarantors shall in no event be required to pay
Additional Interest for more than one Registration Default at any given time. At the cure of all
Registration Defaults relating to the particular Transfer Restricted Securities, the interest rate
borne by the relevant Transfer Restricted Securities will be reduced to the original interest rate
borne by such Transfer Restricted Securities.

     All accrued Additional Interest shall be paid by the Company and the Guarantors (or the
Company and the Guarantors will cause the Paying Agent to make such payment on their behalf) to the
Holders entitled thereto, in the manner provided for the payment of interest in the Indenture,

-6-

 

on each Interest Payment Date, as more fully set forth in the Indenture, the Initial
Notes and the Exchange Notes. All obligations of the Company and the Guarantors set forth in the
preceding paragraph that are outstanding with respect to any Transfer Restricted Security at the
time such security ceases to be a Transfer Restricted Security shall survive until such time as all
such obligations with respect to such security shall have been satisfied in full.

     SECTION 6. Registration Procedures.

     (a) Exchange Offer Registration Statement. In connection with the Exchange Offer, if required
pursuant to Section 3(a) hereof, the Company and the Guarantors shall comply with all of the
provisions of Section 6(c) hereof, shall use their reasonable best efforts to effect such exchange
to permit the sale of Transfer Restricted Securities being sold in accordance with the intended
method or methods of distribution thereof, and shall comply with all of the following provisions:

     (i) If in the reasonable opinion of counsel to the Company there is a question as to
whether the Exchange Offer is permitted by applicable law, each of the Company and the
Guarantors hereby agrees to use their reasonable best efforts to seek a no-action letter or
other favorable decision from the Commission allowing the Company and the Guarantors to
Consummate an Exchange Offer for such Transfer Restricted Securities. Each of the Company
and the Guarantors hereby agrees to pursue the issuance of such a decision to the Commission
staff level but shall not be required to take commercially unreasonable action to effect a
change of Commission policy. In connection with the foregoing, each of the Company and the
Guarantors hereby agrees, however, to (A) participate in telephonic conferences with the
Commission, (B) deliver to the Commission staff an analysis prepared by counsel to the
Company setting forth the legal bases, if any, upon which such counsel has concluded that
such an Exchange Offer should be permitted and (C) diligently pursue a resolution (which
need not be favorable and which need not be a written resolution) by the Commission staff of
such submission.

     (ii) As a condition to its participation in the Exchange Offer pursuant to the terms of
this Agreement, each Holder of Transfer Restricted Securities (including, without
limitation, any Holder who is a Broker-Dealer) shall furnish, upon the request of the
Company, prior to the Consummation of the Exchange Offer, a written representation to the
Company and the Guarantors (which may be contained in the letter of transmittal contemplated
by the Exchange Offer Registration Statement) to the effect that (A) it is not an Affiliate
of the Company, (B) it is not engaged in, and does not intend to engage in, and has no
arrangement or understanding with any Person to participate in, a distribution of the
Exchange Securities to be issued in the Exchange Offer, (C) it is acquiring the Exchange
Securities in its ordinary course of business, and (D) only if such Holder is a
Broker-Dealer that will receive Exchange Securities in exchange for Initial Securities that
such Broker-Dealer acquired for its own private account as a result of market making or
other trading activities, it will deliver a Prospectus, as required by law, in connection
with any sale of such Exchange Securities. In addition, all such Holders of Transfer
Restricted Securities shall otherwise cooperate in the Company’s preparations for the
Exchange Offer. As a condition to its participation in the Exchange Offer, each Holder
hereby

-7-

 

acknowledges and agrees that any Broker-Dealer and any such Holder using the Exchange
Offer to participate in a distribution of the securities to be acquired in the Exchange
Offer (1) could not, under Commission policy as in effect on the date of this Agreement,
rely on the position of the Commission enunciated in Morgan Stanley and Co., Inc.
(available June 5, 1991) and Exxon Capital Holdings Corporation (available May 13,
1988), as interpreted in the Commission’s letter to Shearman & Sterling dated July
2, 1993, and similar no-action letters (which may include any no-action letter obtained
pursuant to clause (i) above), and (2) must comply with the registration and prospectus
delivery requirements of the Securities Act in connection with a secondary resale
transaction and that such a secondary resale transaction should be covered by an effective
registration statement containing the selling security holder information required by Item
507 or 508, as applicable, of Regulation S-K if the resales are of Exchange Securities
obtained by such Holder in exchange for Transfer Restricted Securities acquired by such
Holder directly from the Company.

     (b) Shelf Registration Statement. If required pursuant to Section 4, in connection with the
Shelf Registration Statement, each of the Company and the Guarantors shall comply with all the
provisions of Section 6(c) hereof and shall use their reasonable best efforts to effect such
registration to permit the sale of the Transfer Restricted Securities being sold in accordance with
the intended method or methods of distribution thereof, and pursuant thereto each of the Company
and the Guarantors will as expeditiously as possible prepare and file with the Commission a
Registration Statement relating to the registration on any appropriate form under the Securities
Act, which form shall be available for the sale of the Transfer Restricted Securities in accordance
with the intended method or methods of distribution thereof.

     (c) General Provisions. In connection with any Registration Statement and any Prospectus
required by this Agreement to permit the sale or resale of Transfer Restricted Securities
(including, without limitation, any Registration Statement and the related Prospectus required to
permit resales of Transfer Restricted Securities by Broker-Dealers), each of the Company and the
Guarantors shall:

     (i) use their reasonable best efforts to keep such Registration Statement continuously
effective and provide all requisite financial statements (including, if required by the
Securities Act or any regulation thereunder, financial statements of the Guarantors) for the
period specified in Section 3 or 4 hereof, as applicable; upon the occurrence of any event
that would cause any such Registration Statement or the Prospectus contained therein (A) to
contain a material misstatement or omission or (B) not to be effective and usable for resale
of Transfer Restricted Securities during the period required by this Agreement, the Company
shall file promptly an appropriate amendment to such Registration Statement, in the case of
clause (A), correcting any such misstatement or omission, and, if Commission review is
required, use their reasonable best efforts to cause such amendment to be declared effective
and such Registration Statement and the related Prospectus to become usable for their
intended purpose(s) as soon as practicable thereafter;

-8-

 

     (ii) use their reasonable best efforts to prepare and file with the Commission such
amendments and post-effective amendments to the applicable Registration Statement
as may be necessary to keep the Registration Statement effective for the
applicable period set forth in Section 3 or 4 hereof, as applicable, or such shorter period
as will terminate when all Transfer Restricted Securities covered by such Registration
Statement have been sold; cause the 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 to comply fully with the applicable provisions of Rules 424 and 430A under the
Securities Act in a timely manner; and comply with the provisions of the Securities Act with
respect to the disposition of all securities covered by such Registration Statement during
the applicable period in accordance with the intended method or methods of distribution by
the sellers thereof set forth in such Registration Statement or supplement to the
Prospectus;

     (iii) advise each Holder whose Transfer Restricted Securities have been included in a
Shelf Registration Statement, (A) when the Prospectus or any Prospectus supplement or
post-effective amendment has been filed, and, with respect to any Registration Statement or
any post-effective amendment thereto, when the same has become effective, (B) of any request
by the Commission for amendments to the Registration Statement or amendments or supplements
to the Prospectus or for additional information relating thereto, (C) of the issuance by the
Commission of any stop order suspending the effectiveness of the Registration Statement
under the Securities Act or of the suspension by any state securities commission of the
qualification of the Transfer Restricted Securities for offering or sale in any
jurisdiction, or the initiation of any proceeding for any of the preceding purposes, (D) of
the happening of any event that makes any statement of a material fact made in the
Registration Statement, the Prospectus, any amendment or supplement thereto, or any document
incorporated by reference therein untrue, or that requires the making of any additions to or
changes in the Registration Statement or the Prospectus in order to make the statements
therein not misleading. If at any time the Commission shall issue any stop order suspending
the effectiveness of the Registration Statement, or any state securities commission or other
regulatory authority shall issue an order suspending the qualification or exemption from
qualification of the Transfer Restricted Securities under state securities or blue sky laws,
each of the Company and the Guarantors shall use their reasonable best efforts to obtain the
withdrawal or lifting of such order at the earliest possible time;

     (iv) in the case of a Shelf Registration Statement, furnish without charge, upon
request, to each selling Holder named in any Registration Statement, and each of the
underwriter(s), if any, before filing with the Commission, copies of any Registration
Statement or any Prospectus included therein or any amendments or supplements to any such
Registration Statement or Prospectus (including all documents incorporated by reference
after the initial filing of such Registration Statement), which documents will be subject to
the review and comment of such Holders and underwriter(s) in connection with such sale, if
any, for a period of at least three Business Days, and the Company will not file any such
Registration Statement or Prospectus or any amendment or supplement to any such Registration
Statement or Prospectus (including all such documents incorporated by

-9-

 

reference) to which a
Holder of Transfer Restricted Securities covered by such Registration Statement or the
underwriter(s), if any, shall reasonably object in writing within three
Business Days after the receipt thereof (such objection to be deemed timely made upon
confirmation of telecopy transmission within such period). The objection of an Initial
Purchaser or underwriter, if any, shall be deemed to be reasonable if such Registration
Statement, amendment, Prospectus or supplement, as applicable, as proposed to be filed,
contains a material misstatement or omission. Notwithstanding the foregoing, the Company
shall not be required to take any actions under this Section 6(c)(iv) that are not, in the
reasonable opinion of counsel for the Company, in compliance with applicable law;

     (v) in the case of a Shelf Registration Statement, promptly prior to the filing of any
document that is to be incorporated by reference into a Registration Statement or Prospectus
in connection with such registration or sale, if any, provide copies of such document to
each selling Holder named in the Registration Statement in connection with such exchange,
registration or sale, if any, and to the underwriter(s), if any, make the Company’s and the
Guarantors’ representatives available for discussion of such document and other customary
due diligence matters subject to execution and delivery of customary confidentiality
agreements, and include such information in such document prior to the filing thereof as
such selling Holders or underwriter(s), if any, reasonably may request;

     (vi) in the case of a Shelf Registration Statement, make available at reasonable times
for inspection by the selling Holders, the managing underwriter(s), if any, participating in
any disposition pursuant to such Registration Statement and any attorney or accountant
retained by such selling Holder or any of the underwriter(s), all financial and other
records, pertinent corporate documents and properties of each of the Company and the
Guarantors and cause the Company’s and the Guarantors’ officers, directors and employees to
supply all information reasonably requested by any such Holder, underwriter, attorney or
accountant in connection with such Registration Statement or any post-effective amendment
thereto subsequent to the filing thereof and prior to its effectiveness and to participate
in meetings with investors to the extent requested by the managing underwriter(s), if any;
provided that any Holder or representative thereof requesting or receiving such information
shall agree to be bound by reasonable confidentiality agreements and procedures with respect
thereto;

     (vii) in the case of a Shelf Registration Statement, if requested by any selling
Holders or the underwriter(s), if any, promptly incorporate in any Registration Statement or
Prospectus, pursuant to a supplement or post-effective amendment if necessary, such
information as such selling Holders and underwriter(s), if any, may reasonably request to
have included therein, including, without limitation, information relating to the “Plan of
Distribution” of the Transfer Restricted Securities, information with respect to the
principal amount of Transfer Restricted Securities being sold to such underwriter(s), the
purchase price being paid therefor and any other terms of the offering of the Transfer
Restricted Securities to be sold in such offering; and make all required filings of such
Prospectus supplement or post-effective amendment as soon as practicable after the Company

-10-

 

is notified of the matters to be incorporated in such Prospectus supplement or
post-effective amendment;

     (viii) in the case of a Shelf Registration Statement, upon request, furnish to each
selling Holder and each of the underwriter(s), if any, without charge, at least one copy of
the Registration Statement, as first filed with the Commission, and of each amendment
thereto, including financial statements and schedules (without all documents incorporated by
reference therein or exhibits thereto, unless requested);

     (ix) in the case of a Shelf Registration Statement, upon request, deliver to each
selling Holder and each of the underwriter(s), if any, without charge, as many copies of the
Prospectus (including each preliminary prospectus) and any amendment or supplement thereto
as such Persons reasonably may request; provided, that if no Registration Statement is
effective or no Prospectus is usable in accordance with the provisions of Section 6(b)
hereof, the Company shall deliver to each selling Holder a notice to that effect in response
to such request; each of the Company and the Guarantors hereby consents to the use (in
accordance with law) of the Prospectus and any amendment or supplement thereto by each of
the selling Holders and each of the underwriter(s), if any, in connection with the offering
and the sale of the Transfer Restricted Securities covered by the Prospectus or any
amendment or supplement thereto;

     (x) in the case of a Shelf Registration Statement, upon the reasonable request of such
Holder, enter into such agreements (including an underwriting agreement containing customary
terms), and make such representations and warranties, and take all such other actions in
connection therewith in order to expedite or facilitate the disposition of the Transfer
Restricted Securities pursuant to any Registration Statement contemplated by this Agreement,
all to such extent as may be customarily and reasonably requested by any Holder or Holders
of Transfer Restricted Securities or underwriter in connection with any sale or resale
pursuant to any Registration Statement contemplated by this Agreement; and whether or not an
underwriting agreement is entered into and whether or not the registration is an
Underwritten Registration, each of the Company and the Guarantors shall:

     (A) upon the request of any Holder, furnish to each selling Holder and each
underwriter, if any, in such substance and scope as they may reasonably request and
as are customarily made by issuers to underwriters in primary underwritten
offerings, upon the date of the effectiveness of the Shelf Registration Statement:

     (1) a certificate in customary form, dated the date of effectiveness of
the Shelf Registration Statement, as the case may be, signed by (y) the
Chief Executive Officer or any Vice President and (z) a principal financial
or accounting officer of the Company and such Guarantor, confirming, as of
the date thereof, the matters set forth in paragraphs (i) and (ii) of
Section 5(e) of the Purchase Agreements and such other matters as such
parties may reasonably request;

-11-

 

     (2) an opinion in customary form, dated the date of the effectiveness
of the Shelf Registration Statement of counsel for the Company and the
Guarantors, covering the matters customarily covered in opinions
request in similar underwritten offerings and such other matters as
such parties may reasonably request; and

     (3) use reasonable best efforts to obtain a customary comfort letter,
dated the date of effectiveness of the Shelf Registration Statement, from
the Company’s independent accountants, in the customary form and covering
matters of the type customarily requested to be covered in comfort letters
by underwriters in connection with primary underwritten offerings, and
covering or affirming the matters set forth in the comfort letters delivered
pursuant to Section 5(a) of the Purchase Agreements, without exception;

     (B) deliver such other documents and certificates as may be reasonably
requested by such parties to evidence compliance with Section 6(c)(x)(A) hereof and
with any customary conditions contained in the underwriting agreement or other
agreement entered into by the Company or any of the Guarantors pursuant to this
Section 6(c)(x), if any.

     (xi) prior to any public offering of Transfer Restricted Securities, cooperate with the
selling Holders, the underwriter(s), if any, and their respective counsel in connection with
the registration and qualification of the Transfer Restricted Securities under the state
securities or blue sky laws of such jurisdictions as the selling Holders or underwriter(s),
if any, may request and do any and all other acts or things necessary or advisable to enable
the disposition in such jurisdictions of the Transfer Restricted Securities covered by the
Shelf Registration Statement; provided, however, that none of the Company nor the Guarantors
shall be required to register or qualify as a foreign corporation where it is not then so
qualified or to take any action that would subject it to the service of process in suits or
to taxation, other than as to matters and transactions relating to the Registration
Statement, in any jurisdiction where it is not then so subject;

     (xii) shall issue, upon the request of any Holder of Transfer Restricted Securities
covered by the Shelf Registration Statement, Exchange Securities having an aggregate
principal amount equal to the aggregate principal amount of Transfer Restricted Securities
surrendered to the Company by such Holder in exchange therefor or being sold by such Holder,
such Exchange Securities to be registered in the name of such Holder or in the name of the
purchaser(s) of such Securities, as the case may be, and in return, the Transfer Restricted
Securities held by such Holder shall be surrendered to the Company for cancellation;

     (xiii) cooperate with the selling Holders and the underwriter(s), if any, to facilitate
the timely preparation and delivery of certificates representing Transfer Restricted
Securities to be sold and not bearing any restrictive legends; and enable such Transfer
Restricted Securities to be in such denominations and registered in such names as the

-12-

 

Holders or the underwriter(s), if any, may request at least three Business Days prior to any
sale of Transfer Restricted Securities made by such Holders or underwriter(s);

     (xiv) use their reasonable best efforts to cause the Transfer Restricted Securities
covered by the Registration Statement to be registered with or approved by such other
governmental agencies or authorities as may be necessary to enable the seller or sellers
thereof or the underwriter(s), if any, to consummate the disposition of such Transfer
Restricted Securities, subject to the proviso contained in Section 6(c)(xii) hereof;

     (xv) if any fact or event contemplated by Section 6(c)(iii)(D) hereof shall exist or
have occurred, prepare a supplement or post-effective amendment to the Registration
Statement or related Prospectus or any document incorporated therein by reference or file
any other required document so that, as thereafter delivered to the purchasers of Transfer
Restricted Securities, the Prospectus will not contain an untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein
not misleading;

     (xvi) provide a CUSIP number for all Securities not later than the effective date of
the Registration Statement covering such Securities and provide the Trustee under the
Indenture with printed certificates for such Securities which are in a form eligible for
deposit with the Depository Trust Company and take all other action necessary to ensure that
all such Securities are eligible for deposit with the Depository Trust Company;

     (xvii) cooperate and assist in any filings required to be made with FINRA and in the
performance of any due diligence investigation by any underwriter (including any “qualified
independent underwriter”) that is required to be retained in accordance with the rules and
regulations of FINRA;

     (xviii) otherwise use their reasonable best efforts to comply with all applicable rules
and regulations of the Commission, and make generally available to its security holders, as
soon as practicable, a consolidated earnings statement meeting the requirements of Rule 158
under the Securities Act (which need not be audited) for the twelve-month period commencing
after the effective date of the Registration Statement;

     (xix) cause the Indenture to be qualified under the Trust Indenture Act not later than
the effective date of the first Registration Statement required by this Agreement, and, in
connection therewith, cooperate with the Trustee and the Holders of Securities to effect
such changes to the Indenture as may be required for such Indenture to be so qualified in
accordance with the terms of the Trust Indenture Act; and to execute and use its reasonable
best efforts to cause the Trustee to execute, all documents that may be required to effect
such changes and all other forms and documents required to be filed with the Commission to
enable such Indenture to be so qualified in a timely manner; and

     (xx) provide promptly to each Holder upon request each document filed with the
Commission pursuant to the requirements of Section 13 and Section 15 of the Exchange Act.

-13-

 

     (d) Restrictions on Holders. Each Holder agrees by acquisition of a Transfer Restricted
Security that, upon receipt of the notice referred to in Section 6(c)(iii)(C) or any notice from
the Company of the existence of any fact of the kind described in Section 6(c)(iii)(D) hereof (in
each case, a “Suspension Notice”), such Holder will forthwith discontinue disposition of Transfer
Restricted Securities pursuant to the applicable Registration Statement until (i) such Holder’s
receipt of the copies of the supplemented or amended Prospectus contemplated by Section 6(c)(xv)
hereof, or (ii) it is advised in writing (the “Advice”) by the Company that the use of the
Prospectus may be resumed, and has received copies of any additional or supplemental filings that
are incorporated by reference in the Prospectus. Each Holder receiving a Suspension Notice hereby
agrees that it will either (i) destroy any Prospectuses, other than permanent file copies, then in
such Holder’s possession which have been replaced by the Company with more recently dated
Prospectuses, or (ii) deliver to the Company (at the Company’s expense) all copies, other than
permanent file copies then in such Holder’s possession, of the Prospectus covering such Transfer
Restricted Securities that was current at the time of receipt of such notice. In the event the
Company shall give any such notice, the time period regarding the effectiveness of such
Registration Statement set forth in Section 3 or 4 hereof, as applicable, shall be extended by the
number of days during the period from and including the date of the giving of such notice pursuant
to Section 6(c)(iii)(D) hereof to and including the date when each selling Holder covered by such
Registration Statement shall have received the copies of the supplemented or amended Prospectus
contemplated by Section 6(c)(xv) hereof or shall have received the Advice; provided, however, that
no such extension shall be taken into account in determining whether Additional Interest is due
pursuant to Section 5 hereof or the amount of such Additional Interest, it being agreed that the
Company’s option to suspend use of a Registration Statement pursuant to this paragraph shall be
treated as a Registration Default for purposes of Section 5 hereof.

     SECTION 7. Registration Expenses.

     (a) All expenses incident to the Company’s and the Guarantors’ performance of or compliance
with this Agreement will be borne by the Company and the Guarantors, jointly and severally,
regardless of whether a Registration Statement becomes effective, including, without limitation:
(i) all registration and filing fees and expenses (including filings made by any Initial Purchaser
or Holder with FINRA (and, if applicable, the fees and expenses of any “qualified independent
underwriter” and its counsel that may be required by the rules and regulations of FINRA)); (ii) all
fees and expenses of compliance with federal securities and state securities or blue sky laws;
(iii) all expenses of printing (including printing certificates for the Exchange Securities to be
issued in the Exchange Offer and printing of Prospectuses), messenger and delivery services and
telephone; (iv) all fees and disbursements of counsel for the Company and the Guarantors and,
subject to Section 7(b) hereof, reasonable and documented fees and disbursements for one counsel
for all of the Holders of Transfer Restricted Securities; (v) all application and filing fees in
connection with listing the Exchange Securities on a securities exchange or automated quotation
system pursuant to the requirements thereof; and (vi) all fees and disbursements of independent
certified public accountants of the Company and the Guarantors (including the expenses of any
special audit and comfort letters required by or incident to such performance).

     Each of the Company and the Guarantors will, in any event, bear its internal expenses
(including, without limitation, all salaries and expenses of its officers and employees performing

-14-

 

legal or accounting duties), the expenses of any annual audit and the fees and expenses of any
Person, including special experts, retained by the Company or the Guarantors.

     (b) In connection with any Registration Statement required by this Agreement (including,
without limitation, the Exchange Offer Registration Statement and the Shelf Registration
Statement), the Company and the Guarantors, jointly and severally, will reimburse the Initial
Purchasers and the Holders of Transfer Restricted Securities being tendered in the Exchange Offer
and/or resold pursuant to the “Plan of Distribution” contained in the Exchange Offer Registration
Statement or registered pursuant to the Shelf Registration Statement, as applicable, for the
reasonable and documented fees and disbursements of not more than one counsel, who shall be Cahill
Gordon & Reindel llp or such other counsel as may be chosen by the Holders of a majority
in principal amount of the Transfer Restricted Securities for whose benefit such Registration
Statement is being prepared.

     SECTION 8. Indemnification.

     (a) The Company and the Guarantors agree, jointly and severally, to indemnify and hold
harmless (i) each Initial Purchaser and each Holder and (ii) each Person, if any, who controls
(within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) any
Initial Purchaser or any Holder (any of the Persons referred to in this clause (ii) being
hereinafter referred to as a “controlling person”) and (iii) the respective officers, directors,
partners, employees, representatives and agents of any Holder or any controlling person (any Person
referred to in clause (i), (ii) or (iii) may hereinafter be referred to as an “Indemnified
Holder”), to the fullest extent lawful, from and against any and all losses, claims, damages,
liabilities, judgments, actions and expenses (including, without limitation, and as incurred,
reimbursement of all reasonable out-of-pocket costs of investigating, preparing, pursuing,
settling, compromising, paying or defending any claim or action, or any investigation or proceeding
by any governmental agency or body, commenced or threatened, including the reasonable fees and
expenses of counsel to any Indemnified Holder), joint or several, directly or indirectly caused by,
related to, based upon, arising out of or in connection with any untrue statement or alleged untrue
statement of a material fact contained in any Registration Statement or Prospectus (or any
amendment or supplement thereto), or any omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein not misleading,
except insofar as such losses, claims, damages, liabilities or expenses are caused by an untrue
statement or omission or alleged untrue statement or omission that is based upon information
relating to any of the Initial Purchasers or any of the Holders furnished in writing to the Company
by or on behalf of the Initial Purchasers or any of the Holders expressly for use therein. This
indemnity agreement shall be in addition to any liability which the Company or any of the
Guarantors may otherwise have.

     In case any action or proceeding (including any governmental or regulatory investigation or
proceeding) shall be brought or asserted against any of the Indemnified Holders with respect to
which indemnity may be sought against the Company or the Guarantors, such Indemnified Holder (or
the Indemnified Holder controlled by such controlling person) shall promptly notify the Company and
the Guarantors in writing; provided, however, that the failure to give such notice shall not
relieve any of the Company or the Guarantors of its obligations pursuant to this

-15-

 

Agreement except to the extent that it had been materially prejudiced by such failure (through
forfeiture of substantive rights). Such Indemnified Holder shall have the right to employ its own
counsel in any such action and the fees and expenses of such counsel shall be paid, as incurred, by
the Company and the Guarantors. The Company and the Guarantors shall not, in connection with any
one such action or proceeding or separate but substantially similar or related actions or
proceedings in the same jurisdiction arising out of the same general allegations or circumstances,
be liable for the reasonable fees and expenses of more than one separate firm of attorneys (in
addition to any local counsel) at any time for such Indemnified Holders, which firm shall be
designated by the Holders. The Company and the Guarantors shall be liable for any settlement of
any such action or proceeding effected with the Company’s and the Guarantors’ prior written
consent, which consent shall not be withheld unreasonably, and each of the Company and the
Guarantors agrees to indemnify and hold harmless any Indemnified Holder from and against any loss,
claim, damage, liability or reasonable out-of-pocket expense by reason of any settlement of any
action effected with the written consent of the Company and the Guarantors. The Company and the
Guarantors shall not, without the prior written consent of each Indemnified Holder, settle or
compromise or consent to the entry of judgment in or otherwise seek to terminate any pending or
threatened action, claim, litigation or proceeding in respect of which indemnification or
contribution may be sought hereunder (whether or not any Indemnified Holder is a party thereto),
unless such settlement, compromise, consent or termination (i) includes an unconditional release of
each Indemnified Holder from all liability arising out of such action, claim, litigation or
proceeding and (ii) does not include a statement as to an admission of fault, culpability or a
failure to act, by or on behalf of the Indemnified Holder.

     (b) By its acquisition of Transfer Restricted Securities each Holder of Transfer Restricted
Securities agrees, severally and not jointly, to indemnify and hold harmless the Company, the
Guarantors and their respective directors and officers of the Company and the Guarantors who sign a
Registration Statement, and any Person controlling (within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act) the Company or any of the Guarantors, and the
respective officers, directors, partners, employees, representatives and agents of each such
Person, to the same extent as the foregoing indemnity from the Company and the Guarantors to each
of the Indemnified Holders, but only with respect to claims and actions based on information
relating to such Holder furnished in writing by such Holder expressly for use in any Registration
Statement. In case any action or proceeding shall be brought against the Company, the Guarantors
or their respective directors or officers or any such controlling person in respect of which
indemnity may be sought against a Holder of Transfer Restricted Securities, such Holder shall have
the rights and duties given the Company and the Guarantors, and the Company, the Guarantors, their
respective directors and officers and such controlling person shall have the rights and duties
given to each Holder by the preceding paragraph.

     (c) If the indemnification provided for in this Section 8 is unavailable to an indemnified
party under Section 8(a) or (b) hereof (other than by reason of exceptions provided in those
Sections) in respect of any losses, claims, damages, liabilities, judgments, actions or expenses
referred to therein, then each applicable indemnifying party, in lieu of indemnifying such
indemnified party, shall contribute to the amount paid or payable by such indemnified party as a
result of such losses, claims, damages, liabilities or expenses in such proportion as is
appropriate to reflect the relative benefits received by the Company and the Guarantors, on the one
hand, and the

-16-

 

Holders, on the other hand, from the Initial Placement (which in the case of the Company and
the Guarantors shall be deemed to be equal to the total gross proceeds to the Company and the
Guarantors from the Initial Placement), the amount of Additional Interest which did not become
payable as a result of the filing of the Registration Statement resulting in such losses, claims,
damages, liabilities, judgments actions or expenses, and such Registration Statement, or if such
allocation is not permitted by applicable law, the relative fault of the Company and the
Guarantors, on the one hand, and the Holders, on the other hand, in connection with the statements
or omissions which resulted in such losses, claims, damages, liabilities or expenses, as well as
any other relevant equitable considerations. The relative fault of the Company, on the one hand,
and of the Indemnified Holder, 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 Company or any of
the Guarantors, on the one hand, or the Indemnified Holders, on the other hand, and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission. The amount paid or payable by a party as a result of the losses, claims,
damages, liabilities and expenses referred to above shall be deemed to include, subject to the
limitations set forth in the second paragraph of Section 8(a) hereof, any legal or other fees or
expenses reasonably incurred by such party in connection with investigating or defending any action
or claim.

     The Company, the Guarantors and each Holder of Transfer Restricted Securities agree that it
would not be just and equitable if contribution pursuant to this Section 8(c) 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 which does not take account of the equitable considerations referred to
in the immediately preceding paragraph. The amount paid or payable by an indemnified party as a
result of the losses, claims, damages, liabilities or expenses referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set forth above, any
legal or other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the provisions of this
Section 8, none of the Holders (and its related Indemnified Holders) shall be required to
contribute, in the aggregate, any amount in excess of the amount by which the total discount
received by such Holder with respect to the Initial Securities exceeds the amount of any damages
which 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 8(c) are several in proportion to the respective principal
amount of Initial Securities held by each of the Holders hereunder and not joint.

     SECTION 9. Participation in Underwritten Registrations. No Holder may participate in any
Underwritten Registration hereunder unless such Holder (a) agrees to sell such Holder’s Transfer
Restricted Securities on the basis provided in any underwriting arrangements approved by the
Persons entitled hereunder to approve such arrangements and (b) completes and executes all
reasonable questionnaires, powers of attorney, indemnities, underwriting agreements, lock-up
letters and other documents required under the terms of such underwriting arrangements.

-17-

 

     SECTION 10. Selection of Underwriters. The Holders of Transfer Restricted Securities covered
by the Shelf Registration Statement who desire to do so may sell such Transfer Restricted
Securities in an Underwritten Offering. In any such Underwritten Offering, the investment
banker(s) and managing underwriter(s) that will administer such offering will be selected by the
Holders of a majority in aggregate principal amount of the Transfer Restricted Securities included
in such offering; provided, however, that such investment banker(s) and managing underwriter(s)
must be reasonably satisfactory to the Company.

     SECTION 11. Miscellaneous.

     (a) Remedies. Each of the Company and the Guarantors hereby agrees that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach by it of the
provisions of this Agreement and hereby agree to waive the defense in any action for specific
performance that a remedy at law would be adequate.

     (b) No Inconsistent Agreements. Each of the Company and the Guarantors will not on or after
the date of this Agreement enter into any agreement with respect to its securities that is
inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with
the provisions hereof. Neither the Company nor any of the Guarantors has previously entered into
any agreement granting any registration rights with respect to its securities to any Person. The
rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent
with the rights granted to the holders of the Company’s or any of the Guarantors’ securities under
any agreement in effect on the date hereof.

     (c) Amendments and Waivers. The provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to or departures from the provisions hereof may not be given
unless the Company has (i) in the case of Section 5 hereof and this Section 11(c)(i), obtained the
written consent of Holders of all outstanding Transfer Restricted Securities and (ii) in the case
of all other provisions hereof, obtained the written consent of Holders of a majority of the
outstanding principal amount of Transfer Restricted Securities (excluding any Transfer Restricted
Securities held by the Company or its Affiliates). Notwithstanding the foregoing, a waiver or
consent to departure from the provisions hereof that relates exclusively to the rights of Holders
whose securities are being tendered pursuant to the Exchange Offer and that does not affect
directly or indirectly the rights of other Holders whose securities are not being tendered pursuant
to such Exchange Offer may be given by the Holders of a majority of the outstanding principal
amount of Transfer Restricted Securities being tendered or registered; provided, however, that,
with respect to any matter that directly or indirectly affects the rights of any Initial Purchaser
hereunder, the Company shall obtain the written consent of each such Initial Purchaser with respect
to which such amendment, qualification, supplement, waiver, consent or departure is to be
effective.

     (d) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand-delivery, first-class mail (registered or certified, return receipt
requested), telex, telecopier, or air courier guaranteeing overnight delivery:

     (i) if to a Holder, at the address set forth on the records of the Registrar under the
Indenture, with a copy to the Registrar under the Indenture; and

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     (ii) if to the Company:

Liz Claiborne, Inc.

1441 Broadway

New York, New York 10018

Fax: (201) 295-6118

Attention: Nicholas Rubino

With a copy to:

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, NY 10019-6064

Fax: (212) 373-7550

Attention: Lawrence G. Wee

     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 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.

     (e) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors and assigns of each of the parties, including, without limitation, and without the
need for an express assignment, subsequent Holders of Transfer Restricted Securities; provided,
however, that this Agreement shall not inure to the benefit of or be binding upon a successor or
assign of a Holder unless and to the extent such successor or assign acquired Transfer Restricted
Securities from such Holder.

     (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 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, WITHOUT REGARD TO THE CONFLICTS OF LAW RULES THEREOF.

     (i) Severability. In the event that any one or more of the provisions contained herein, or
the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity,

-19-

 

legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.

     (j) Entire Agreement. This Agreement is intended by the parties as a final expression of
their agreement and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein. There are
no restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted by the Company with respect to the Transfer
Restricted Securities. This Agreement supersedes all prior agreements and understandings between
the parties with respect to such subject matter.

-20-

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 
	 	LIZ CLAIBORNE, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	Senior Vice President — Chief Legal Officer,

General Counsel and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	BOODLE, INC. (F/K/A LCI LAUNDRY)

DB NEWCO CORP.

HAVANA, LLC

JERG, INC. (F/K/A C&C California, Inc.)

JUICY COUTURE, INC.

KATE SPADE LLC

L.C. AUGUSTA, INC.

L.C. CARIBBEAN HOLDINGS, INC.

L.C. LIBRA, LLC

L.C. LICENSING, INC.

L.C. SERVICE COMPANY, INC.

L.C. SPECIAL MARKETS, INC.

LCI ACQUISITION U.S., INC.

LCI HOLDINGS, INC.

LCI INVESTMENTS, INC.

LIZ CLAIBORNE ACCESSORIES, INC.

LIZ CLAIBORNE ACCESSORIES-SALES, INC.

LIZ CLAIBORNE COSMETICS, INC.

LIZ CLAIBORNE EXPORT, INC.

LIZ CLAIBORNE FOREIGN HOLDINGS, INC.

LIZ CLAIBORNE JAPAN, INC.

LIZ CLAIBORNE PUERTO RICO, INC.

LIZ CLAIBORNE SALES, INC.

LIZ CLAIBORNE SHOES, INC.

LUCKY BRAND DUNGAREES, INC.

LUCKY BRAND DUNGAREES STORES, INC.

MONET INTERNATIONAL, INC.

MONET PUERTO RICO, INC.

NONEE I, LLC (F/K/A ENYCE LLC)

NONEE I HOLDING, LLC (F/K/A ENYCE HOLDING, LLC)

SEGRETS, INC.

SKYLARK SPORT MARKETING CORPORATION

WESTCOAST CONTEMPO PROMENADE, INC.

WESTCOAST CONTEMPO RETAIL, INC.

WESTCOAST CONTEMPO USA, INC.

 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	Senior Vice President — Chief Legal Officer,

General Counsel and Corporate Secretary 	 

 

     The foregoing Registration Rights Agreement is hereby confirmed and accepted as of the date
first above written:

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

			
	By:	 	Merrill Lynch, Pierce, Fenner & Smith Incorporated

	 	 	 	 	 
	 	 
	By:  	                           /s/ Lisa G Clyde
 	 
	 	Managing Director 	 

 

Schedule I

LIST OF GUARANTORS

	 	 	 

	Boodle, Inc. (f/k/a LCI Laundry)

	 	Delaware
	DB Newco Corp.

	 	Delaware
	Havana, LLC

	 	Delaware
	Jerg, Inc.

	 	California
	Juicy Couture, Inc.

	 	California
	Kate Spade LLC

	 	Delaware
	L.C. Augusta, Inc.

	 	Delaware
	L.C. Caribbean Holdings, Inc.

	 	Delaware
	L.C. Libra, LLC

	 	Delaware
	L.C. Licensing, Inc.

	 	Delaware
	L.C. Service Company, Inc.

	 	Delaware
	L.C. Special Markets, Inc.

	 	Delaware
	LCI Acquisition U.S., Inc.

	 	Delaware
	LCI Holdings, Inc.

	 	Delaware
	LCI Investments, Inc.

	 	Delaware
	Liz Claiborne Accessories, Inc.

	 	Delaware
	Liz Claiborne Accessories-Sales, Inc.

	 	Delaware
	Liz Claiborne Cosmetics, Inc.

	 	Delaware
	Liz Claiborne Export, Inc.

	 	Delaware
	Liz Claiborne Foreign Holdings, Inc.

	 	Delaware
	Liz Claiborne Japan, Inc.

	 	Delaware
	Liz Claiborne Puerto Rico, Inc.

	 	Delaware
	Liz Claiborne Sales, Inc.

	 	Delaware
	Liz Claiborne Shoes, Inc.

	 	Delaware
	Lucky Brand Dungarees, Inc.

	 	Delaware
	Lucky Brand Dungarees Stores, Inc.

	 	Delaware
	Monet International, Inc.

	 	Delaware
	Monet Puerto Rico, Inc.

	 	Delaware
	Nonee I, LLC (f/k/a Enyce LLC)

	 	Delaware
	Nonee I Holding, LLC (f/k/a Enyce Holding, LLC)

	 	Delaware
	Segrets, Inc.

	 	Delaware
	Skylark Sport Marketing Corporation

	 	California
	Westcoast Contempo Promenade, Inc.

	 	Washington
	Westcoast Contempo Retail, Inc.

	 	Washington
	Westcoast Contempo USA, Inc.

	 	Washington

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