Document:

Exhibit
4.1

 

Execution Version

	
   

  

 

INDENTURE

 

Dated as of October 9, 2009

 

Among

 

TOPS HOLDING CORPORATION

 

TOPS MARKETS, LLC,

 

THE GUARANTORS PARTY HERETO

 

and

 

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

 

and

 

U.S. BANK NATIONAL ASSOCIATION,

as Collateral Agent

 

10.125% SENIOR SECURED NOTES DUE 2015

	
   

  

 

 

CROSS-REFERENCE TABLE*

 

	
  Trust
  Indenture Act Section

  	
   

  	
  Indenture Section

  
	
   

  	
   

  	
   

  
	
  310(a)(1)

  	
   

  	
  7.10

  
	
  (a)(2)

  	
   

  	
  7.10

  
	
  (a)(3)

  	
   

  	
  N.A.

  
	
  (a)(4)

  	
   

  	
  N.A.

  
	
  (a)(5)

  	
   

  	
  7.10

  
	
  (b)

  	
   

  	
  7.10

  
	
  (c)

  	
   

  	
  N.A.

  
	
  311(a)

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
  N.A.

  
	
  312(a)

  	
   

  	
  2.05

  
	
  (b)

  	
   

  	
  15.03

  
	
  (c)

  	
   

  	
  15.03

  
	
  313(a)

  	
   

  	
  7.06

  
	
  (b)(1)

  	
   

  	
  N.A.

  
	
  (b)(2)

  	
   

  	
  7.06; 7.07

  
	
  (c)

  	
   

  	
  7.06; 15.02

  
	
  (d)

  	
   

  	
  7.06

  
	
  314(a)

  	
   

  	
  15.02; 15.05

  
	
  (b)

  	
   

  	
  11.05

  
	
  (c)(1)

  	
   

  	
  15.04

  
	
  (c)(2)

  	
   

  	
  15.04

  
	
  (c)(3)

  	
   

  	
  N.A.

  
	
  (d)

  	
   

  	
  11.05

  
	
  (e)

  	
   

  	
  15.05

  
	
  (f)

  	
   

  	
  N.A.

  
	
  315(a)

  	
   

  	
  7.01

  
	
  (b)

  	
   

  	
  7.05; 15.02

  
	
  (c)

  	
   

  	
  7.01

  
	
  (d)

  	
   

  	
  7.01

  
	
  (e)

  	
   

  	
  6.14

  
	
  316(a)(last
  sentence)

  	
   

  	
  2.09

  
	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
  (a)(2)

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
  6.07

  
	
  (c)

  	
   

  	
  2.12; 9.04

  
	
  317(a)(1)

  	
   

  	
  6.08

  
	
  (a)(2)

  	
   

  	
  6.12

  
	
  (b)

  	
   

  	
  2.04

  
	
  318(a)

  	
   

  	
  15.01

  
	
  (b)

  	
   

  	
  N.A.

  
	
  (c)

  	
   

  	
  15.01

  

 

N.A.
means not applicable.

*
 This Cross-Reference Table is not part
of the Indenture.

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  
	
  ARTICLE 1

  
	
   

  
	
  DEFINITIONS AND
  INCORPORATION BY REFERENCE

  
	
   

  	
   

  	
   

  
	
  Section 1.01

  	
  Definitions

  	
  1

  
	
  Section 1.02

  	
  Other
  Definitions

  	
  30

  
	
  Section 1.03

  	
  Incorporation
  by Reference of Trust Indenture Act

  	
  30

  
	
  Section 1.04

  	
  Rules of
  Construction

  	
  31

  
	
  Section 1.05

  	
  Acts
  of Holders

  	
  31

  
	
   

  
	
  ARTICLE 2

  
	
   

  
	
  THE NOTES

  
	
   

  	
   

  	
   

  
	
  Section 2.01

  	
  Form and
  Dating; Terms

  	
  33

  
	
  Section 2.02

  	
  Execution
  and Authentication

  	
  34

  
	
  Section 2.03

  	
  Registrar
  and Paying Agent

  	
  34

  
	
  Section 2.04

  	
  Paying
  Agent to Hold Money in Trust

  	
  35

  
	
  Section 2.05

  	
  Holder
  Lists

  	
  35

  
	
  Section 2.06

  	
  Transfer
  and Exchange

  	
  35

  
	
  Section 2.07

  	
  Replacement
  Notes

  	
  48

  
	
  Section 2.08

  	
  Outstanding
  Notes

  	
  49

  
	
  Section 2.09

  	
  Treasury
  Notes

  	
  49

  
	
  Section 2.10

  	
  Temporary
  Notes

  	
  49

  
	
  Section 2.11

  	
  Cancellation

  	
  49

  
	
  Section 2.12

  	
  Defaulted
  Interest

  	
  50

  
	
  Section 2.13

  	
  CUSIP
  and ISIN Numbers

  	
  50

  
	
   

  
	
  ARTICLE 3

  
	
   

  
	
  REDEMPTION

  
	
   

  	
   

  	
   

  
	
  Section 3.01

  	
  Notices
  to Trustee

  	
  50

  
	
  Section 3.02

  	
  Selection
  of Notes to Be Redeemed or Purchased

  	
  51

  
	
  Section 3.03

  	
  Notice
  of Redemption

  	
  51

  
	
  Section 3.04

  	
  Effect
  of Notice of Redemption

  	
  52

  
	
  Section 3.05

  	
  Deposit
  of Redemption or Purchase Price

  	
  52

  
	
  Section 3.06

  	
  Notes
  Redeemed or Purchased in Part

  	
  52

  
	
  Section 3.07

  	
  Optional
  Redemption

  	
  53

  
	
  Section 3.08

  	
  Mandatory
  Redemption

  	
  53

  
	
   

  
	
  ARTICLE 4

  
	
   

  
	
  COVENANTS

  
	
   

  	
   

  	
   

  
	
  Section 4.01

  	
  Payment
  of Principal, Premium and Interest

  	
  53

  

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 4.02

  	
  Corporate
  Existence

  	
  54

  
	
  Section 4.03

  	
  Limitation
  on Indebtedness

  	
  54

  
	
  Section 4.04

  	
  Limitation
  on Restricted Payments

  	
  57

  
	
  Section 4.05

  	
  Limitation
  on Transactions with Affiliates

  	
  62

  
	
  Section 4.06

  	
  Limitation
  on Liens

  	
  64

  
	
  Section 4.07

  	
  Limitation
  on Sale of Assets

  	
  65

  
	
  Section 4.08

  	
  Additional
  Guarantees

  	
  67

  
	
  Section 4.09

  	
  Purchase
  of Notes upon a Change of Control

  	
  67

  
	
  Section 4.10

  	
  Reserved

  	
  69

  
	
  Section 4.11

  	
  Limitation
  on Dividend and Other Payment Restrictions Affecting Subsidiaries

  	
  69

  
	
  Section 4.12

  	
  Limitation
  on Unrestricted Subsidiaries

  	
  71

  
	
  Section 4.13

  	
  Provision
  of Financial Information

  	
  72

  
	
  Section 4.14

  	
  Statement
  by Officers as to Default

  	
  73

  
	
   

  
	
  ARTICLE 5

  
	
   

  
	
  SUCCESSORS

  
	
   

  	
   

  	
   

  
	
  Section 5.01

  	
  Consolidation,
  Merger or Sale of Assets

  	
  74

  
	
  Section 5.02

  	
  Successor
  Substituted

  	
  76

  
	
   

  
	
  ARTICLE 6

  
	
   

  
	
  DEFAULTS AND REMEDIES

  
	
   

  	
   

  	
   

  
	
  Section 6.01

  	
  Events
  of Default

  	
  76

  
	
  Section 6.02

  	
  Acceleration

  	
  78

  
	
  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

  	
  Restoration
  of Rights and Remedies

  	
  80

  
	
  Section 6.10

  	
  Rights
  and Remedies Cumulative

  	
  80

  
	
  Section 6.11

  	
  Delay
  or Omission Not Waiver

  	
  81

  
	
  Section 6.12

  	
  Trustee
  May File Proofs of Claim

  	
  81

  
	
  Section 6.13

  	
  Priorities

  	
  81

  
	
  Section 6.14

  	
  Undertaking
  for Costs

  	
  82

  
	
   

  
	
  ARTICLE 7

  
	
   

  
	
  TRUSTEE

  
	
   

  	
   

  	
   

  
	
  Section 7.01

  	
  Duties
  of Trustee

  	
  82

  
	
  Section 7.02

  	
  Rights
  of Trustee

  	
  83

  
	
  Section 7.03

  	
  Individual
  Rights of Trustee

  	
  84

  
	
  Section 7.04

  	
  Trustee’s
  Disclaimer

  	
  84

  
	
  Section 7.05

  	
  Notice
  of Defaults

  	
  84

  

 

ii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 7.06

  	
  Reports
  by Trustee to Holders of the Notes

  	
  85

  
	
  Section 7.07

  	
  Compensation
  and Indemnity

  	
  85

  
	
  Section 7.08

  	
  Replacement
  of Trustee

  	
  86

  
	
  Section 7.09

  	
  Successor
  Trustee by Merger, Etc.

  	
  87

  
	
  Section 7.10

  	
  Eligibility;
  Disqualification

  	
  87

  
	
  Section 7.11

  	
  Preferential
  Collection of Claims Against Issuers

  	
  87

  
	
   

  
	
  ARTICLE 8

  
	
   

  
	
  LEGAL DEFEASANCE AND
  COVENANT DEFEASANCE

  
	
   

  	
   

  	
   

  
	
  Section 8.01

  	
  Option
  to Effect Legal Defeasance or Covenant Defeasance

  	
  87

  
	
  Section 8.02

  	
  Legal
  Defeasance and Discharge

  	
  87

  
	
  Section 8.03

  	
  Covenant
  Defeasance

  	
  88

  
	
  Section 8.04

  	
  Conditions
  to Legal or Covenant Defeasance

  	
  88

  
	
  Section 8.05

  	
  Deposited
  Money and Government Securities to Be Held in Trust; Other Miscellaneous
  Provisions

  	
  89

  
	
  Section 8.06

  	
  Repayment
  to Issuers

  	
  90

  
	
  Section 8.07

  	
  Reinstatement

  	
  90

  
	
   

  
	
  ARTICLE 9

  
	
   

  
	
  AMENDMENT, SUPPLEMENT AND
  WAIVER

  
	
   

  	
   

  	
   

  
	
  Section 9.01

  	
  Without
  Consent of Holders of Notes

  	
  90

  
	
  Section 9.02

  	
  With
  Consent of Holders of Notes

  	
  91

  
	
  Section 9.03

  	
  Compliance
  with Trust Indenture Act

  	
  92

  
	
  Section 9.04

  	
  Effect
  of Consents

  	
  93

  
	
  Section 9.05

  	
  Notation
  on or Exchange of Notes

  	
  93

  
	
  Section 9.06

  	
  Trustee
  to Sign Amendments, Etc.

  	
  93

  
	
   

  
	
  ARTICLE 10

  
	
   

  
	
  INTERCREDITOR AGREEMENT

  
	
   

  	
   

  	
   

  
	
  Section 10.01

  	
  Intercreditor
  Agreement

  	
  94

  
	
   

  
	
  ARTICLE 11

  
	
   

  
	
  COLLATERAL

  
	
   

  	
   

  	
   

  
	
  Section 11.01

  	
  Security
  Documents

  	
  94

  
	
  Section 11.02

  	
  Collateral
  Agent

  	
  94

  
	
  Section 11.03

  	
  Authorization
  of Actions to Be Taken

  	
  95

  
	
  Section 11.04

  	
  Release
  of Collateral

  	
  96

  
	
  Section 11.05

  	
  Filing,
  Recording and Opinions

  	
  96

  
	
  Section 11.06

  	
  Powers
  Exercisable by Receiver or Trustee

  	
  97

  
	
  Section 11.07

  	
  Voting

  	
  97

  

 

iii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12

  
	
   

  
	
  APPLICATION OF TRUST
  MONIES

  
	
   

  	
   

  	
   

  
	
  Section 12.01

  	
  Collateral
  Account

  	
  97

  
	
  Section 12.02

  	
  Withdrawal
  of Net Cash Proceeds in Connection with Reinvestments

  	
  97

  
	
  Section 12.03

  	
  Withdrawal
  of Net Cash Proceeds to Fund an Offer or Release Following an Offer

  	
  98

  
	
  Section 12.04

  	
  Investment
  of Trust Monies

  	
  99

  
	
  Section 12.05

  	
  Application
  of Other Trust Monies

  	
  99

  
	
   

  
	
  ARTICLE 13

  
	
   

  
	
  GUARANTEES

  
	
   

  	
   

  	
   

  
	
  Section 13.01

  	
  Guarantee

  	
  99

  
	
  Section 13.02

  	
  Limitation
  on Guarantor Liability

  	
  101

  
	
  Section 13.03

  	
  Execution
  and Delivery

  	
  101

  
	
  Section 13.04

  	
  Subrogation

  	
  101

  
	
  Section 13.05

  	
  Benefits
  Acknowledged

  	
  102

  
	
  Section 13.06

  	
  Release
  of Guarantees

  	
  102

  
	
   

  
	
  ARTICLE 14

  
	
   

  
	
  SATISFACTION AND DISCHARGE

  
	
   

  	
   

  	
   

  
	
  Section 14.01

  	
  Satisfaction
  and Discharge

  	
  102

  
	
  Section 14.02

  	
  Application
  of Trust Money

  	
  103

  
	
   

  
	
  ARTICLE 15

  
	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  Section 15.01

  	
  Trust
  Indenture Act Controls

  	
  104

  
	
  Section 15.02

  	
  Notices

  	
  104

  
	
  Section 15.03

  	
  Communication
  by Holders of Notes with Other Holders of Notes

  	
  105

  
	
  Section 15.04

  	
  Certificate
  and Opinion as to Conditions Precedent

  	
  105

  
	
  Section 15.05

  	
  Statements
  Required in Certificate or Opinion

  	
  105

  
	
  Section 15.06

  	
  Rules by
  Trustee and Agents

  	
  106

  
	
  Section 15.07

  	
  No
  Personal Liability of Directors, Officers, Employees and Stockholders

  	
  106

  
	
  Section 15.08

  	
  Governing
  Law; Waiver of Jury Trial

  	
  106

  
	
  Section 15.09

  	
  Force
  Majeure

  	
  106

  
	
  Section 15.10

  	
  Successors

  	
  106

  
	
  Section 15.11

  	
  Severability

  	
  106

  
	
  Section 15.12

  	
  Counterpart
  Originals

  	
  106

  
	
  Section 15.13

  	
  Table
  of Contents, Headings, Etc.

  	
  107

  
	
  Section 15.14

  	
  Qualification
  of Indenture

  	
  107

  
	
  Section 15.15

  	
  USA
  Patriot Act

  	
  107

  

 

iv

 

	
  SCHEDULES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule I

  	
   

  	
  Guarantors

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Form of Note

  
	
  Exhibit B

  	
   

  	
  Form of Certificate of Transfer

  
	
  Exhibit B-1

  	
   

  	
  Form of Certificate for Acquiring Institutional Accredited
  Investor

  
	
  Exhibit C

  	
   

  	
  Form of Certificate of Exchange

  
	
  Exhibit D

  	
   

  	
  Form of
  Supplemental Indenture to Be Delivered by Subsequent Guarantors

  

 

i

 

INDENTURE,
dated as of October 9, 2009, among Tops Holding Corporation, a Delaware
corporation (the “Company”), Tops Markets, LLC, a New York limited
liability company (“Tops Markets” and, together with the Company, the “Issuers”),
the Guarantors (as defined herein) listed on the signature pages hereto,
U.S. Bank National Association, a national banking association duly organized
and existing under the laws of the United States of America, as Trustee and
U.S. Bank National Association, a national banking association duly organized
and existing under the laws of the United States of America, as Collateral
Agent.

 

W  I  T  N  E  S  S
E  T  H

 

WHEREAS,
the Issuers have duly authorized the creation of an issue of $275,000,000
aggregate principal amount of 10.125% Senior Secured Notes due 2015 (the “Initial
Notes”);

 

WHEREAS,
the Issuers and the Guarantors have duly authorized the execution and delivery
of this Indenture;

 

WHEREAS,
all things necessary (i) to make the Notes, when executed by the Issuers
and authenticated and delivered hereunder and duly issued by the Issuers, the
valid obligations of the Issuers, and (ii) to make this Indenture a valid
agreement of the Issuers, all in accordance with their respective terms, have
been done; and

 

NOW,
THEREFORE, the Issuers, the Guarantors, the Trustee and the Collateral Agent
agree as follows for the benefit of each other and for the equal and ratable
benefit of the Holders of 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
attached hereto, bearing the Global Note Legend, the OID 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 Collateral Agent” means Bank of America, N.A., as collateral agent
under the Credit Agreement, 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 (b) of the
definition of “Permitted Liens” and (y) obligations in respect of “Bank
Products” (as defined in the Intercreditor Agreement) that are permitted to be
secured pursuant to the definition of “Permitted Liens.”

 

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

 

“Acquired
Indebtedness” means, with respect to any specified Person, Indebtedness of
any other Person (1) existing at the time such other Person is consolidated
or 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
consolidating or merging with or into, or becoming a Subsidiary of, such
specified Person, or (2) assumed in connection with the acquisition of
assets from such other Person, whether or not such Indebtedness is incurred in
connection with, or in contemplation of such acquisition, as the case may
be.  Notwithstanding the foregoing,
Acquired Indebtedness shall not include Indebtedness of such other Person that
is extinguished, retired or repaid substantially concurrently with such other
Person becoming a Restricted Subsidiary of, or at the time it is consolidated
or merged with or into, such specified Person.

 

“Additional
Interest” means all “Additional Interest” then owing pursuant to the
Registration Rights Agreement.

 

“Additional
Notes” means additional Notes (other than the Initial Notes and other than
Exchange Notes issued in exchange for such Initial Notes) issued from time to
time under this Indenture in accordance with Sections 2.01, 4.03 and 4.06, it
being understood that any Notes issued in exchange for or replacement of any
Initial Notes shall not be Additional Notes.

 

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

 

“Agent”
means any Registrar or Paying Agent.

 

“Applicable Premium”
means, with respect to any Note on any date of redemption, the greater of:

 

(1)           1.0% of the principal amount
of the Note, or

 

(2)           the excess of:

 

(a)           the present
value at such Redemption Date of (i) the redemption price of the Note at October 15,
2012 (such redemption price being set forth in the table appearing in Section 3.07(b)),
plus (ii) all required interest payments due on the Note through October 15,
2012 (excluding accrued but unpaid interest to the date of redemption),
computed using a discount rate equal to the Treasury Rate as of such date of
redemption plus 50 basis points; over

 

(b)           the principal
amount of the Note.

 

“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/or Clearstream that apply to such transfer or
exchange.

 

“Asset
Sale” means any sale, issuance, conveyance, transfer, lease or other
disposition (including, without limitation, by way of merger, consolidation or
sale and leaseback transaction) (collectively, a “transfer”), directly
or indirectly, in one or a series of related transactions, of:

 

(1)           any Capital Stock of any
Restricted Subsidiary;

 

2

 

(2)           all or substantially all of
the properties and assets of any division or line of business of an Issuer or
any Restricted Subsidiary; or

 

(3)           any other properties or
assets (including any transfer by written contract by an Issuer or any
Restricted Subsidiary to any other Person of any of their rights to receive all
or a portion of the proceeds from the sale by the Company or any Restricted
Subsidiary of any such asset or properties) of an Issuer or any Restricted
Subsidiary other than in the ordinary course of business.

 

For
the purposes of this definition, the term “Asset Sale” shall not include any
transfer of properties and assets:

 

(A)          that is governed by the
provisions of Section 5.01;

 

(B)          that is by an Issuer to any
Restricted Subsidiary or by any Restricted Subsidiary to an Issuer or any
Restricted Subsidiary or that is the issuance of Capital Stock by a Restricted
Subsidiary to an Issuer or to another Restricted Subsidiary (other than a
Securitization Entity);

 

(C)          that would be a Restricted
Payment permitted to be made pursuant to Section 4.04 or a Permitted
Investment;

 

(D)          that is a disposition of
Receivables and Related Assets in a Qualified Securitization Transaction;

 

(E)           that are obsolete, damaged
or worn out equipment or otherwise unsuitable for use in the ordinary course of
business;

 

(F)           that is the disposition of
Capital Stock of, or other Investments in, an Unrestricted Subsidiary;

 

(G)          that is the sale or other
disposition of cash or Cash Equivalents or the voluntary termination of Hedging
Obligations;

 

(H)          that is the sale, transfer
or disposition deemed to occur in connection with creating or granting any
Liens permitted by Section 4.06;

 

(I)            the Fair Market Value of
which in the aggregate does not exceed $2.5 million in any transaction or
series of related transactions;

 

(J)            consisting of the licensing
of any intellectual property in the ordinary course of business of the Company and
its Restricted Subsidiaries;

 

(K)          to the extent allowable
under Section 1031 of the Internal Revenue Code of 1986, any exchange of
like property (excluding any boot thereon) for use in a Permitted Business; provided
that to the extent the property exchanged was Notes Priority Collateral,
substantially all of the property received in exchange therefor constitutes
Notes Priority Collateral;

 

(L)           that is a transfer of
property subject to casualty or condemnation proceedings (including in lieu
thereof) upon the receipt of the net cash proceeds therefor; provided
such net cash proceeds are deemed to be Net Cash Proceeds and are applied in
accordance with Section 4.07;

 

3

 

(M)         that is a foreclosure on
assets or a disposition of Investments or receivables in connection with the
compromise, settlement or collection thereof or in bankruptcy or similar
proceedings; or

 

(N)          that is a surrender or
waiver of contract rights or the settlement, release or surrender of contract,
tort or other claims of any kind.

 

“Average
Life to Stated Maturity” means, as of the date of determination with
respect to any Indebtedness, the quotient obtained by dividing (1) the sum
of the product of (a) the number of years from the date of determination
to the date or dates of each successive scheduled principal payment of such
Indebtedness multiplied by (b) the amount of each such principal payment
by (2) the sum of all such principal payments.

 

“Bankruptcy
Law” means Title 11, United States Bankruptcy Code of 1978, as amended, or
any similar United States federal or state law or foreign law relating to
bankruptcy, insolvency, receivership, winding up, liquidation, reorganization
or relief of debtors or any amendment to, succession to or change in any such
law.

 

“Board
of Directors” means the Board of Directors or comparable governing body of
an Issuer or any Guarantor, as the case may be, or any duly authorized
committee of such board or comparable governing body.

 

“Business
Day” means each day which is not a Saturday, a Sunday or a day on which
banking institutions in The City of New York, the city in which the principal
corporate trust office of the Trustee is located or at a place of payment are
authorized or required by law, regulation or executive order to remain closed.

 

“Capital
Lease Obligation” of any Person means any obligation of such Person and its
Restricted Subsidiaries on a consolidated basis under any capital lease of (or
other agreement conveying the right to use) real or personal property which, in
accordance with GAAP, is required to be recorded as a capitalized lease
obligation.

 

“Capital
Stock” of any Person means any and all shares, interests, participations,
rights in or other equivalents (however designated) of such Person’s capital
stock, other equity interests whether now outstanding or issued after the Issue
Date, partnership interests (whether general or limited), limited liability
company interests, 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, including any Preferred Stock, and any rights,
warrants or options exchangeable for or convertible into such Capital Stock
(other than debt securities convertible into Capital Stock).

 

“Cash Equivalents”
means:

 

(1)           securities issued or
directly and fully and unconditionally guaranteed or insured by the U.S.
government or any agency or instrumentality thereof the securities of which are
unconditionally guaranteed as a full faith and credit obligation of such
government with maturities of 24 months or less from the date of acquisition;

 

(2)           certificates of deposit,
time deposits and Eurodollar time deposits with maturities of one year or less
from the date of acquisition, bankers’ acceptances with maturities not
exceeding one year and overnight bank deposits, in each case with any
commercial bank having capital and surplus of not less than $500.0 million;

 

4

 

(3)           repurchase obligations for
underlying securities of the types described in clauses (1) and (2) entered
into with any financial institution meeting the qualifications specified in
clause (2) above;

 

(4)           securities with maturities
of 24 months or less from the date of acquisition backed by standby letters of
credit issued by any commercial bank satisfying the requirements of clause (2) above;

 

(5)           commercial paper rated at
least P-2 by Moody’s Investors Service, Inc. (“Moody’s”) or at
least A-2 by Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc. (“S&P”) (or, if at any time neither
Moody’s nor S&P shall be rating such obligations, an equivalent rating from
another rating agency) and in each case maturing within one year after the date
of creation thereof;

 

(6)           marketable short-term money
market and similar securities having a rating of least P-2 or A-2 from either
Moody’s or S&P, respectively (or, if at any time neither Moody’s nor
S&P shall be rating such obligations, an equivalent rating from another
rating agency) and in each case maturing within 24 months after the date of
creation thereof;

 

(7)           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;

 

(8)           Investments with average
maturities of 12 months or less from the date of acquisition in money market
funds rated AAA- (or the equivalent thereof) or better by S&P or Aaa3 (or
the equivalent thereof) or better by Moody’s (or, if at any time neither Moody’s
nor S&P shall be rating such obligations, an equivalent rating from another
rating agency); and

 

(9)           investment funds investing
95% of their assets in cash and securities of the types described in clauses (1) through
(8) above.

 

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

 

(1)           any “person” or “group” (as
such terms are used in Sections 13(d) and 14(d) of the Exchange Act),
other than a Permitted Holder, becomes the “beneficial owner” (as defined in Rules 13d-3
and 13d-5 under the Exchange Act, except that a Person shall be deemed to have
beneficial ownership of all shares that such Person has the right to acquire,
whether such right is exercisable immediately or only after the passage of
time), directly or indirectly, of more than 50% of the total outstanding Voting
Stock of the Company;

 

(2)           during any period of two
consecutive years, individuals who at the beginning of such period constituted
the Board of Directors of the Company (together with any new directors whose
election to such board or whose nomination for election by the stockholders of
the Company was approved by a vote of a majority of the directors then still in
office who were either directors at the beginning of such period or whose
election or nomination for election was previously so approved), cease for any
reason to constitute a majority of such Board of Directors then in office;

 

(3)           the Company consolidates
with or merges with or into any Person or sells, assigns, conveys, transfers,
leases or otherwise disposes of all or substantially all of its and its 

 

5

 

Restricted
Subsidiaries’ assets to any Person, other than a Permitted Holder, or any
Person consolidates with or merges into or with the Company, in any such event
pursuant to a transaction in which the outstanding Voting Stock of the Company
is converted into or exchanged for cash, securities or other property, other
than any such transaction where:

 

(A)          the outstanding
Voting Stock of the Company is converted into or exchanged for (1) Voting
Stock of the surviving corporation which is not Redeemable Capital Stock or (2) cash,
securities and other property (other than Capital Stock of the surviving
corporation) in an amount which could be paid by the Company as a Restricted
Payment under Section 4.04 (and such amount shall be treated as a Restricted
Payment for purposes of Section 4.04); and

 

(B)          immediately
after such transaction, no “person” or “group,” other than a Permitted Holder,
is the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act, except that a Person shall be deemed to have beneficial ownership
of all securities that such Person has the right to acquire, whether such right
is exercisable immediately or only after the passage of time), directly or
indirectly, of more than 50% of the total outstanding Voting Stock of the
surviving corporation; or

 

(4)           Tops Markets ceases to be a
Subsidiary of the Company other than in a transaction which complies with Section 5.01.

 

“Clearstream”
means Clearstream Banking, Société Anonyme.

 

“Collateral”
means, collectively, all of the property and assets that are from time to time
subject to the Lien of (i) the Security Documents (other than the
Intercreditor Agreement) or (ii) clause (y) of the last sentence of Section 5.4(a) of
the Intercreditor Agreement, including the Liens, if any, required pursuant to
the provisions of this Indenture.

 

“Collateral
Account” means the collateral account established pursuant to Section 12.01.

 

“Collateral
Agent” means U.S. Bank National Association, in its capacity as Collateral
Agent for the holders of Notes and Permitted Additional Pari Passu Obligations,
together with its successors in such capacity.

 

“Commodity
Price Protection Agreement” means any forward contract, commodity swap,
commodity option or other similar agreement or arrangement relating to, or the
value of which is dependent upon, fluctuations in commodity prices.

 

“Consolidated
EBITDA” means for any period, the sum, without duplication, of (A) Consolidated
Net Income (Loss), (B) in each case to the extent deducted in computing
Consolidated Net Income (Loss) for such period, (i) Consolidated Interest
Expense, (ii) Consolidated Income Tax Expense, (iii) Consolidated
Non-cash Charges, (iv) any unusual or non-recurring items and any
restructuring charges or reserves, including, without limitation, in connection
with an acquisition made after the Issue Date (which, for the avoidance of
doubt, shall include retention, severance, systems establishment costs, excess
pension charges, contract and lease termination costs and costs to consolidate
facilities and relocate employees), (v) the amount of management fees and
expense reimbursement accrued by such Person to the Permitted Holders pursuant
to the Sponsor Management Agreement, (vi) the amount of any expenses in
connection with any actual or proposed Investment, incurrence or repayment of
Indebtedness, issuance of Capital Stock or acquisition or disposition outside
the ordinary course of business, (vii) expenses incurred to the extent
covered by indemnification provisions in any agreement in connection with 

 

6

 

an
acquisition (including the acquisition of the Company) to the extent reimbursed
in cash and such indemnification payments are not otherwise included in
Consolidated EBITDA, and (viii) commissions, discounts, yield and other
fees and expenses (including interest expense) related to any Qualified
Securitization Transaction, in each case, for such period, of such Person and
its Restricted Subsidiaries all determined in accordance with GAAP, and (C) proceeds
from any business interruption insurance to the extent not otherwise included
in Consolidated Net Income, and less (D) all non-cash items increasing
Consolidated Net Income for such period (other than the accrual of revenue and
other than non cash items to the extent they represent the reversal of an
accrual of, or cash reserve for, anticipated charges made in any prior period
or which will result in the receipt of cash in a future period); provided,
that with respect to any period ending prior to the Issue Date, Consolidated
EBITDA shall be calculated after giving effect, without duplication, to the
adjustments set forth in the calculation of “Adjusted EBITDA” in the Offering
Memorandum.

 

“Consolidated
Fixed Charge Coverage Ratio” of any Person means, for any period of the
most recent four fiscal quarters for which internal consolidated financial
statements of the Company are available (the “Four Quarter Period”), the
ratio of:

 

(a)           Consolidated EBITDA for such
Four Quarter Period to

 

(b)           Consolidated Interest
Expense for such Four Quarter Period (but excluding from Consolidated Interest
Expense for this purpose the accretion of original issue discount on the Notes
issued on the Issue Date),

 

in
the case of each of clauses (a) and (b) after giving pro forma effect to:

 

(1)           the incurrence of the
Indebtedness giving rise to the need to make such calculation and (if
applicable) the application of the net proceeds therefrom, including to
refinance other Indebtedness, as if such Indebtedness was incurred, and the
application of such proceeds occurred, on the first day of such Four Quarter
Period;

 

(2)           the incurrence, repayment or
retirement of any other Indebtedness by the Company and its Restricted
Subsidiaries since the first day of such Four Quarter Period as if such
Indebtedness was incurred, repaid or retired at the beginning of such Four
Quarter Period (except that, in making such computation, the amount of
Indebtedness under any revolving credit facility shall be computed based upon
the average daily balance of such Indebtedness during such Four Quarter
Period);

 

(3)           in the case of Acquired
Indebtedness or any acquisition occurring at the time of the incurrence of such
Indebtedness, the related acquisition, assuming such acquisition had been
consummated on the first day of such Four Quarter Period;

 

(4)           any acquisition or
disposition by the Company and its Restricted Subsidiaries of any company or
any business or any assets out of the ordinary course of business, whether by
merger, stock purchase or sale or asset purchase or sale, or any related
repayment of Indebtedness, in each case since the first day of such Four
Quarter Period, and prior to the date of determination, assuming such
acquisition or disposition had been consummated on the first day of such Four
Quarter Period; and

 

(5)           if since the beginning of
such Four Quarter Period, any Person that subsequently became a Restricted
Subsidiary or was merged with or into the Company or any of its Restricted
Subsidiaries since the beginning of such Four Quarter Period shall have made
any acquisition, 

 

7

 

disposition,
merger or consolidation that would have required adjustment pursuant to this
definition, such acquisition, disposition, merger or consolidation assuming
such acquisition, disposition, merger or consolidation had occurred on the
first day of such Four Quarter Period;

 

provided that

 

(1)           in making such computation,
the Consolidated EBITDA and Consolidated Interest Expense attributable to
discontinued operations will be excluded;

 

(2)           in making such computation,
the Consolidated Interest Expense attributable to interest on any Indebtedness
computed on a pro forma basis and (A) bearing
a floating interest rate shall be computed as if the rate in effect on the date
of computation had been the applicable rate for the entire Four Quarter Period
and (B) which was not outstanding during the Four Quarter Period which
bears, at the option of such Person, a fixed or floating rate of interest,
shall be computed by applying at the option of such Person either the fixed or
floating rate, in each case taking into account any Interest Rate Agreements;

 

(3)           in making such computation,
the Consolidated Interest Expense of such Person attributable to interest on
any Indebtedness under a revolving credit facility computed on a pro forma
basis shall be computed based upon the average daily balance of such
Indebtedness during the applicable Four Quarter Period; and

 

(4)           whenever pro forma effect is to be given to an
acquisition or disposition, such pro forma calculation shall be made in good
faith by a responsible financial or accounting officer of the Company.  Any such pro
forma calculation may include adjustments appropriate, in the reasonable
determination of the Company, as set forth in an Officer’s Certificate, to
reflect (A) operating expense reductions and other operating improvements
or synergies reasonably expected to result from any acquisition or disposition
and (B) all adjustments of the nature used in connection with the
calculation of “Adjusted EBITDA” as set forth in footnote (9) to the “Summary
Historical Consolidated Financial and Operating Data” under “Summary” in the
Offering Memorandum to the extent such adjustments, without duplication,
continue to be applicable to such Four Quarter Period; provided that (x) such
operating expense reductions and other operating improvements or synergies are
reasonably identifiable and factually supportable and (y) such actions are
reasonably expected to be taken no later than six months after such
transaction.

 

“Consolidated
Income Tax Expense” of any Person means, for any period, the provision for
federal, state, local and foreign income taxes of such Person and its
consolidated Restricted Subsidiaries for such period as determined in
accordance with GAAP.

 

“Consolidated
Interest Expense” of any Person means, without duplication, for any period,
the sum of:

 

(a)           the interest expense of such
Person and its Restricted Subsidiaries for such period, on a consolidated
basis, including, without limitation,

 

(1)           amortization of
debt discount,

 

(2)           the net cost
(benefit) associated with Interest Rate Agreements (including amortization of
discounts),

 

(3)           the interest
portion of any deferred payment obligation,

 

8

 

(4)           all
commissions, discounts and other fees and charges owed with respect to letters
of credit and bankers acceptance and

 

(5)           accrued
interest,

 

and
excluding (i) accretion or accrual of discounted liabilities not
constituting Indebtedness, (ii) any expense resulting from the discounting
of Indebtedness in connection with the application of recapitalization
accounting or, if applicable, purchase accounting, (iii) any additional
interest payable pursuant to the Registration Rights Agreement and any
comparable “additional interest” with respect to other securities and (iv) amortization
of deferred financing fees, debt issuance costs, commissions, fees and
expenses; plus

 

(b)           (1) the interest
component of the Capital Lease Obligations paid, accrued and/or scheduled to be
paid or accrued by such Person and its Restricted Subsidiaries during such
period and

 

(2)           all capitalized
interest of such Person and its Restricted Subsidiaries, plus

 

(c)           the interest expense under
any Guaranteed Debt of such Person and any Restricted Subsidiary to the extent
not included under clause (a) above, whether or not paid by such Person or
its Restricted Subsidiaries, plus

 

(d)           dividend requirements of the
Company with respect to Redeemable Capital Stock and of any Restricted
Subsidiary with respect to Preferred Stock (except, in either case, dividends
payable solely in shares of Qualified Capital Stock of the Company or such
Restricted Subsidiary, as the case may be), less

 

(e)           interest income of such
Person and its Restricted Subsidiaries.

 

“Consolidated
Net Income (Loss)” of any Person means, for any period, the consolidated
net income (or loss) of such Person and its Restricted Subsidiaries for such
period on a consolidated basis as determined in accordance with GAAP, adjusted,
to the extent included in calculating such net income (or loss), by excluding,
without duplication:

 

(1)           all extraordinary gains or
losses net of taxes (less all fees and expenses relating thereto);

 

(2)           the portion of net income
(or loss) of such Person and its Restricted Subsidiaries on a consolidated
basis allocable to minority interests in unconsolidated Persons or Unrestricted
Subsidiaries to the extent that cash dividends or distributions have not actually
been received by such Person or one of its consolidated Restricted
Subsidiaries;

 

(3)           any gain or loss, net of
taxes, realized upon the termination of any employee pension benefit plan and
any non-cash charges incurred relating to the underfunded portion of any
pension plan;

 

(4)           gains or losses, net of
taxes (less all fees and expenses relating thereto), in respect of dispositions
of assets other than in the ordinary course of business;

 

(5)           solely for purposes of
determining the amount available for Restricted Payments pursuant to Section 4.04(a)(3)(A),
the net income of any Restricted Subsidiary that is not a 

 

9

 

Guarantor
to the extent that the declaration of dividends or similar distributions by that
Restricted Subsidiary of that income is not at the time permitted, directly or
indirectly, by operation of the terms of its charter, any agreement, or
applicable law, except to the extent of the amount of dividends or other
distributions actually paid to the Company or any Restricted Subsidiary;

 

(6)           any net gain or loss arising
from the acquisition of any securities or extinguishment or conversion of any
Indebtedness or Hedging Obligations of such Person;

 

(7)           any non-cash goodwill or
asset impairment charges, any non-cash write downs attributable to joint
ventures held by the Issuers or any of their Restricted Subsidiaries and the
amortization of intangibles, in each case pursuant to GAAP;

 

(8)           any non-cash charges
resulting from the application of SFAS No. 123 and any other non-cash
compensation charges or other non-cash expenses or charges arising from the
grant of or issuance or repricing of stock, stock options or other equity based
awards or any amendment, modification, substitution or change of any such
stock, stock options or other equity based awards;

 

(9)           all deferred financing costs
written off, and premiums paid, in connection with any early extinguishment of
Indebtedness;

 

(10)         the cumulative effect of a
change in accounting principles during such period and any amounts attributable
to LIFO (“last in-first out”) inventory adjustments;

 

(11)         unrealized gains and losses
from Hedging Obligations or “embedded derivatives” that require the same
accounting treatment as Hedging Obligations; and

 

(12)         any purchase accounting
adjustments (including, without limitation, the impact of writing up inventory,
deferred marketing and deferred financing costs or deferred revenue at fair
value), amortizations, impairments, write-offs, or non-cash charges with respect
to purchase accounting with respect to any acquisitions, disposition, merger,
consolidation, amalgamation or similar transactions.

 

Notwithstanding
the foregoing, for the purposes of Section 4.04 only, there shall be
excluded from Consolidated Net Income any income arising from any sale or other
disposition of Restricted Investments made by the Company and its Restricted
Subsidiaries, any repurchases and redemptions of Restricted Investments from
the Company and its Restricted Subsidiaries, any repayments of loans and
advances which constitute Restricted Investments by the Company or any of its
Restricted Subsidiaries, any sale of the stock of an Unrestricted Subsidiary or
any distribution or dividend from an Unrestricted Subsidiary, in each case only
to the extent such amounts increase the amount of Restricted Payments permitted
under such covenant pursuant to Section 4.04(a)(3)(E).

 

“Consolidated
Net Tangible Assets” of any Person means, for any period, the total amount
of assets (less applicable reserves and other properly deductible items) after
deducting (1) all current liabilities and (2) all goodwill, trade
names, trademarks, patents, unamortized debt discount and expense and other
intangibles, all as set forth on the Company’s most recent consolidated balance
sheet and computed in accordance with GAAP on a pro forma basis to give effect
to any acquisition or disposition of assets outside the ordinary course of
business made after such balance sheet date and on or prior to the date of
determination.

 

10

 

 

“Consolidated Non-cash Charges” of any Person means, for any
period, the aggregate depreciation, amortization and other non-cash charges of
such Person and its Restricted Subsidiaries on a consolidated basis for such
period, as determined in accordance with GAAP (excluding any non-cash charge
which requires an accrual or reserve for cash charges for any future period).

 

“Consolidated
Total Debt” means, as of any date of determination, an amount equal to the
aggregate principal amount of all outstanding Indebtedness of the Company and
its Restricted Subsidiaries that would be required to be reflected on a
consolidated balance sheet (excluding the notes thereto) of the Company as of
such date.

 

“Consolidated
Total Debt Ratio” means, as of any date of determination, the ratio of (a) Consolidated
Total Debt on the date of determination to (b) Consolidated EBITDA of the
Company and its Restricted Subsidiaries for the most recent four fiscal quarter
period ending prior to such date for which the Company has internal
consolidated financial statements available, in each case with such pro forma
adjustments to Consolidated EBITDA as are consistent with the pro forma
adjustment provisions set forth in the definition of “Consolidated Fixed Charge
Coverage Ratio.”

 

“Corporate
Trust Office of the Trustee” shall be at the address of the Trustee
specified in Section 15.02 or such other address as to which the Trustee
may give notice to the Holders and the Issuers.

 

“Credit
Agreement” means the Credit Agreement dated as of the Issue Date among Tops
Markets, the Company, the Guarantors, the various lenders and agents party
thereto and Bank of America, N.A. as Administrative Agent, together with any
amendments, supplements, modifications, extensions, renewals, restatements or refundings
thereof and any indentures or credit 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.

 

“Credit
Facility” means one or more credit or debt facilities (including, without
limitation, any credit or debt facilities provided under the Credit Agreement),
commercial paper facilities or other debt instruments, indentures or
agreements, providing for revolving credit loans, term loans, notes,
securities, letters of credit or other debt obligations, in each case, as
amended, restated, modified, renewed, refunded, restructured, supplemented,
replaced or refinanced in whole or in part from time to time, including without
limitation any amendment increasing the amount of Indebtedness incurred or
available to be borrowed thereunder, extending the maturity of any Indebtedness
incurred thereunder or contemplated thereby or deleting, adding or substituting
one or more parties thereto (whether or not such added or substituted parties
are banks or other lenders).

 

“Currency
Agreements” means foreign exchange contracts, currency swap agreements or other
similar agreements or arrangements designed to protect against the fluctuations
in currency values.

 

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

 

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

 

11

 

“Definitive
Note” means a certificated Note registered in the name of the Holder
thereof and issued in accordance with Section 2.06(c), (e) or (f),
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, as set forth in an
Officer’s Certificate, of non-cash consideration received by the Company or any
of its Restricted Subsidiaries in connection with an Asset Sale.

 

“Discharge
of ABL Obligations” has the meaning provided in the Intercreditor
Agreement.

 

“Disinterested
Director” means, with respect to any transaction or series of related
transactions, a member of the Board of Directors of the Company who does not
have any material direct or indirect financial interest in or with respect to
such transaction or series of related transactions.

 

“EDS”
means Electronic Data Services Corporation.

 

“Equity
Offering” means any public offering or private sale for cash of common
stock or Preferred Stock (other than Redeemable Capital Stock) of the Company
or, to the extent the proceeds are contributed to the Company, a direct or
indirect parent company of the Company (other than public offerings with
respect to a registration statement on Form S-4 (or any successor form
covering substantially the same transactions), Form S-8 (or any successor
form covering substantially the same transactions) or otherwise relating to
equity securities issuable under any employee benefit plan of the Company).

 

“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, or any
successor statute, and the rules and regulations promulgated by the SEC
thereunder.

 

“Exchange
Notes” means any notes issued in exchange for the Notes pursuant to Section 2.06(f).

 

“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
Property” has the meaning set forth in the Security Agreement.

 

“Fair
Market Value” means, with respect to any asset or property, the sale value
that would be obtained in an arm’s-length transaction between an informed and
willing seller under no compulsion to sell and an informed and willing buyer
under no compulsion to buy.  Fair Market
Value shall be determined by the Board of Directors of the Company acting in
good faith if the Fair Market Value exceeds $15.0 million, otherwise, by the
principal financial officer of the Company acting in good faith.

 

12

 

“Foreign
Subsidiary” means any Restricted Subsidiary of an Issuer that (x) is
not organized under the laws of the United States of America or any State
thereof or the District of Columbia, or (y) was organized under the laws
of the United States of America or any State thereof or the District of
Columbia that has no material assets other than Capital Stock of one or more
foreign entities of the type described in clause (x) above and is not a
guarantor of Indebtedness under the Credit Agreement.

 

“Franchise
Deposits” means the net balances paid by the franchisees of the Company or
its Restricted Subsidiaries under the terms of their respective franchise
agreements.

 

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

 

“Global
Note Legend” means the legend set forth in Section 2.06(g)(ii), 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, substantially in the form of Exhibit A
hereto, issued in accordance with Section 2.01, 2.06(b), 2.06(d), 2.06(f) or
2.06(j).

 

“Government
Securities” 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

 

(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 either case, are not callable or redeemable at the option of the Issuers
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 Government Securities or a specific payment of principal of
or interest on any such Government Securities held by such custodian for the
account of the holder of such depository receipt; provided 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 Government Securities or the
specific payment of principal of or interest on the Government Securities
evidenced by such depository receipt.

 

“Guarantee”
means the guarantee by any Guarantor of the Issuers’ Indenture Obligations.

 

“Guaranteed
Debt” of any Person means, without duplication, all Indebtedness of any
other Person referred to in the definition of “Indebtedness” below guaranteed
directly or indirectly in any manner by such Person, or in effect guaranteed
directly or indirectly by such Person through an agreement:

 

(1)           to
pay or purchase such Indebtedness or to advance or supply funds for the payment
or purchase of such Indebtedness;

 

13

 

(2)           to
purchase, sell or lease (as lessee or lessor) property, or to purchase or sell
services, primarily for the purpose of enabling the debtor to make payment of
such Indebtedness or to assure the holder of such Indebtedness against loss;

 

(3)           to
supply funds to, or in any other manner invest in, the debtor (including any
agreement to pay for property or services without requiring that such property
be received or such services be rendered);

 

(4)           to
maintain working capital or equity capital of the debtor, or otherwise to
maintain the net worth, solvency or other financial condition of the debtor or
to cause such debtor to achieve certain levels of financial performance; or

 

(5)           otherwise
to assure a creditor against loss;

 

provided that the term “Guaranteed Debt” shall not
include (i) endorsements for collection or deposit, in either case in the
ordinary course of business or (ii) any guarantee by the Company or any of
its Restricted Subsidiaries of obligations in respect of customers for check cashing
and short term lending products in the ordinary course of business consistent
with industry standards.

 

“Guarantor”
means any Subsidiary of the Company (other than Tops Markets) which is a
guarantor of the Notes, including any Person that is required after the Issue
Date to execute a Guarantee of the Notes pursuant to Section 4.08 until
such Person’s Guarantee is released in accordance with this Indenture or until
a successor replaces such Person pursuant to Section 5.01 and, thereafter,
shall mean such successor.

 

“Hedging
Obligations” means the obligations under Currency Agreements, Commodity
Price Protection Agreements and Interest Rate Agreements.

 

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

 

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

 

(1)           all
indebtedness of such Person for borrowed money or for the deferred purchase
price of property or services, excluding any trade payables and other accrued
current liabilities arising in the ordinary course of business, but including,
without limitation, all obligations, contingent or otherwise, of such Person in
connection with any letters of credit issued under letter of credit facilities,
acceptance facilities or other similar facilities;

 

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

 

(3)           all
indebtedness created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such Person (even if
the rights and remedies of the seller or lender under such agreement in the
event of default are limited to repossession or sale of such property), but
excluding trade payables arising in the ordinary course of business;

 

(4)           all
obligations under Interest Rate Agreements, Currency Agreements or Commodity
Price Protection Agreements of such Person (the amount of any such obligations
to be equal at any time to the termination value of such agreement or
arrangement giving rise to such obligation that would be payable by such Person
at such time);

 

14

 

(5)           all
Capital Lease Obligations of such Person;

 

(6)           all
Indebtedness referred to in clauses (1) through (5) above of other
Persons, the payment of which is secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by)
any Lien, upon or with respect to property (including, without limitation,
accounts and contract rights) owned by such Person, other than a pledge of
Capital Stock of an Unrestricted Subsidiary to secure Indebtedness of such
Unrestricted Subsidiary, even though such Person has not assumed or become
liable for the payment of such Indebtedness; provided the amount of
Indebtedness will be the lesser of the Fair Market Value of such property on
the date of determination and the amount of Indebtedness of such other Person;

 

(7)           all
Guaranteed Debt of such Person;

 

(8)           all
Redeemable Capital Stock issued by such Person or Preferred Stock of a
Restricted Subsidiary (other than an Issuer) of such Person that is not a
Guarantor valued at the greater of its voluntary or involuntary maximum fixed
repurchase price plus accrued and unpaid dividends;

 

(9)           all
amounts outstanding and other obligations of such Person in respect of a
Qualified Securitization Transaction; and

 

(10)         attributable
debt with respect to sale and leaseback transactions.

 

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

 

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

 

“Indenture
Obligations” means the obligations of the Issuers and any other obligor
under this Indenture or under the Notes, including any Guarantor, to pay
principal of, premium, if any, and interest when due and payable, and all other
amounts due or to become due under or in connection with this Indenture, the
Notes and the performance of all other obligations to the Trustee and the
holders under this Indenture and the Notes, according to the respective terms
thereof.

 

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

 

“Initial
Notes” has the meaning set forth in the recitals hereto.

 

“Initial
Purchasers” means Morgan Stanley & Co. Incorporated, Banc of
America Securities LLC and HSBC Securities (USA) Inc.

 

“Insolvency
or Liquidation Proceeding” means:

 

(1)           any
case commenced by or against the Issuers or any Guarantor under any Bankruptcy
Law for the relief of debtors, any other proceeding for the reorganization,
recapitalization or adjustment or marshalling of the assets or liabilities of
the Issuers or any Guarantor, any receivership

 

15

 

or
assignment for the benefit of creditors relating to the Issuers or any
Guarantor or any similar case or proceeding relative to the Issuers or any
Guarantor or its creditors, as such, in each case whether or not voluntary;

 

(2)           any
liquidation, dissolution, marshalling of assets or liabilities or other winding
up of or relating to the Issuers or any Guarantor, in each case whether or not
voluntary and whether or not involving bankruptcy or insolvency; or

 

(3)           any
other proceeding of any type or nature in which substantially all claims of
creditors of the Issuers or any Guarantor are determined and any payment or
distribution is or may be made on account of such claims.

 

“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, who is not also a QIB.

 

“Intercreditor
Agreement” means the Intercreditor Agreement dated as of the Issue Date by
and among Bank of America, N.A., as agent under the Credit Agreement, and the
Trustee, the Collateral Agent, as acknowledged by the Issuers and the
Guarantors, as amended, modified, restated, supplemented or replaced from time
to time.

 

“Interest
Payment Date” means April 15 and October 15 of each year to
Maturity.

 

“Interest
Rate Agreements” means interest rate protection agreements (including,
without limitation, interest rate swaps, caps, floors, collars and similar
agreements) and/or other types of interest rate hedging agreements or
arrangements designed to protect against or manage exposure to fluctuations in
interest rates in respect of Indebtedness of the Company or any Restricted
Subsidiary.

 

“Investment”
means, with respect to any Person, directly or indirectly, any advance, loan
(including guarantees), or other extension of credit or capital contribution to
(by means of any transfer of cash or other property to others or any payment
for property or services for the account or use of others), or any purchase,
acquisition or ownership by such Person of any Capital Stock, bonds, notes,
debentures or other securities issued by any other Person and all other items
that would be classified as investments on a balance sheet (excluding the
footnotes) prepared in accordance with GAAP. 
“Investment” shall exclude direct or indirect advances to customers or
suppliers in the ordinary course of business that are, in conformity with GAAP,
recorded as accounts receivable, prepaid expenses or deposits on the Company’s
or any Restricted Subsidiary’s balance sheet, endorsements for collection or
deposit arising in the ordinary course of business and extensions of trade
credit on commercially reasonable terms in accordance with normal trade
practices.  If the Company or any
Restricted Subsidiary of an Issuer sells or otherwise disposes of any Capital
Stock of any direct or indirect Restricted Subsidiary of an Issuer such that,
after giving effect to any such sale or disposition, such Person is no longer a
Restricted Subsidiary of an Issuer (other than the sale of all of the
outstanding Capital Stock of such Subsidiary), the Company will be deemed to
have made an Investment on the date of such sale or disposition equal to the
Fair Market Value of the Company’s Investments in such Subsidiary that were not
sold or disposed of in an amount determined as provided in Section 4.04.

 

“Issue
Date” means the original issue date of the Notes under this Indenture.

 

“Issuers”
means Tops Holding Corporation, a corporation incorporated under the laws of
the State of Delaware, until a successor Person shall have become such pursuant
to the applicable provisions of this Indenture and Tops Markets, LLC, a limited
liability company formed under the laws of the 

 

16

 

State
of New York, until a successor Person shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter “Issuers” shall mean
each such successor Person.

 

“Letter
of Transmittal” means the letter of transmittal to be prepared by the
Issuers and sent to all Holders of the Notes for use by such Holders in
connection with the Exchange Offer.

 

“Lien”
means any mortgage or deed of trust, charge, pledge, lien (statutory or
otherwise), privilege, security interest, assignment, easement, hypothecation,
claim, preference, priority or other encumbrance upon or with respect to any property
of any kind (including any conditional sale, capital lease or other title
retention agreement, any leases in the nature thereof, and any agreement to
give any security interest), real or personal, movable or immovable, now owned
or hereafter acquired; provided that in no event shall an operating
lease be deemed to constitute a Lien.  A
Person will be deemed to own subject to a Lien any property which it has
acquired or holds subject to the interest of a vendor or lessor under any
conditional sale agreement, Capital Lease Obligation or other title retention
agreement.

 

“Maturity”
means, when used with respect to the Notes, the date on which the principal of
the Notes becomes due and payable as therein provided or as provided in this
Indenture, whether at Stated Maturity, the offer date or the Redemption Date
and whether by declaration of acceleration, Offer in respect of Excess
Proceeds, Change of Control Offer in respect of a Change of Control, call for
redemption or otherwise.

 

“Moody’s”
means Moody’s Investors Service, Inc. and any successor to its rating
agency business.

 

“Net
Cash Proceeds” means:

 

(a)           with
respect to any Asset Sale by any Person, the proceeds thereof (without
duplication in respect of all Asset Sales) in the form of cash or Cash Equivalents
including payments in respect of deferred payment obligations when received in
the form of, or stock or other assets when disposed of for, cash or Cash
Equivalents (except to the extent that such obligations are financed or sold
with recourse to the Company or any Restricted Subsidiary) net of:

 

(1)           brokerage
commissions and other reasonable fees and expenses (including, without
limitation, fees and expenses of counsel and investment bankers) related to
such Asset Sale,

 

(2)           provisions
for all taxes payable as a result of such Asset Sale,

 

(3)           except
in the case of Liens ranking junior to the Liens securing the Notes, payments
made to retire Indebtedness where payment of such Indebtedness is secured by
the assets or properties the subject of such Asset Sale,

 

(4)           in
the case of an Asset Sale by a Restricted Subsidiary, distributions and other
payments made to minority shareholders, partners or members of such Restricted
Subsidiary as a result of such Asset Sale,

 

(5)           amounts
required to be paid to any Person (other than the Company or any Restricted
Subsidiary) owning a beneficial interest in the assets subject to the Asset
Sale, and

 

17

 

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

 

(b)           with
respect to any issuance or sale of Subordinated Indebtedness, or Capital Stock,
or debt securities or Capital Stock that have been converted into or exchanged
for Capital Stock as referred to in Section 4.04, the proceeds of such
issuance or sale in the form of cash or Cash Equivalents including payments in
respect of deferred payment obligations when received in the form of, or stock
or other assets when disposed of for, cash or Cash Equivalents (except to the
extent that such obligations are financed or sold with recourse to the Company
or any Restricted Subsidiary), net of attorney’s fees, accountant’s fees and
brokerage, consultation, underwriting and other fees and expenses actually
incurred in connection with such issuance or sale and net of taxes paid or
payable as a result thereof.

 

“Non-recourse
Indebtedness” means, with respect to any Person, Indebtedness of such
Person as to which the Company and any Restricted Subsidiary may not be
directly or indirectly liable (by virtue of the Company or any such Restricted
Subsidiary being the primary obligor on, guarantor of, or otherwise liable in
any respect to, such Indebtedness except for a Lien on the Capital Stock of an
Unrestricted Subsidiary to the creditors thereof which is not recourse to any
other assets of the Company or a Restricted Subsidiary), and which, upon the
occurrence of a default with respect to such Indebtedness, does not result in,
or permit any holder of any Indebtedness of the Company or any Restricted
Subsidiary to declare, a default on such Indebtedness of the Company or any Restricted
Subsidiary or cause the payment of Indebtedness of the Company or any
Restricted Subsidiary to be accelerated or payable prior to its Stated
Maturity.

 

“Non-Guarantor
Restricted Subsidiary” means a Restricted Subsidiary that is designated by
the Company as a Non-Guarantor Restricted Subsidiary, as evidenced by a
resolution of the Company’s Board of Directors.

 

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

 

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

 

“Notes”
means any Note authenticated and delivered under this Indenture including
Initial Notes, Exchange Notes and any Additional Notes.

 

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

 

“Obligations”
means any principal, premium, interest (including any interest accruing
subsequent to the filing of a petition in bankruptcy, reorganization or similar
proceeding at the rate provided for in the documentation with respect thereto,
whether or not such interest is an allowed claim under applicable state,
federal or foreign law), penalties, fees, indemnifications, reimbursements
(including reimbursement obligations with respect to letters of credit and
banker’s acceptances), damages and other liabilities, and guarantees of payment
of such principal, interest, penalties, fees, indemnifications, reimbursements,
damages and other liabilities, payable under the documentation governing any Indebtedness.

 

18

 

“Offering
Memorandum” means the offering memorandum, dated October 1, 2009,
relating to the sale of the Initial Notes.

 

“Officer”
means the chairman of the Board of Directors, the chief executive officer,
chief financial officer, the president, any executive vice president, senior
vice president or vice president, the treasurer or the secretary of the
Company.

 

“Officer’s
Certificate” means a certificate signed on behalf of the Company by an Officer
of the Company, who must be the principal executive officer, the principal
financial officer or the principal accounting officer of the Company, that
meets the requirements set forth in this Indenture.

 

“OID
Legend”  means the legend set forth
in Section 2.06(g)(iv) to be placed on all Notes issued under this
Indenture that have more than a de minimis
amount of original issue discount for U.S. federal income tax purposes.

 

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

 

“Pari
Passu Indebtedness” means any Indebtedness of the Issuers or any Guarantor
that is not contractually subordinated to the Notes or the Guarantees.

 

“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 immediately after giving effect
to the incurrence of such Permitted Additional Pari Passu Obligations, the
Consolidated Total Debt Ratio of the Company and its Restricted Subsidiaries
would be less than or equal to 4.25:1.0; provided that (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 Issuers have designated such
Indebtedness as “Permitted Additional Pari Passu Obligations” under the
Security Agreement.

 

“Permitted
Business” means the business conducted by the Company and its Restricted
Subsidiaries on the Issue Date and any business similar, reasonably related,
complementary, incidental or ancillary thereto, including reasonably related
extensions or expansions thereof.

 

“Permitted
Holders” means (i) each of the Sponsors, (ii) each member of
management of the Issuers who are holders of Capital Stock of the Company and (iii) any
“group” (within the meaning of Section 13(d) or Section 14(d) of
the Exchange Act or any successor provision) of which any of the foregoing
Persons is a member, provided that in the case of such “group” and
without giving effect to the existence of such “group” or any other “group,”
such Sponsors and members of management, collectively, have beneficial
ownership, directly or indirectly, of more than 50% of the total voting power
of the Voting Stock of the Company or any of its direct or indirect parent
entities held by such “group.”  Any
person or group whose acquisition of beneficial ownership constitutes a Change
of Control in respect of which a Change of Control offer is made in accordance
with the requirements of Section 4.09 will thereafter, together with its
Affiliates, constitute a Permitted Holder.

 

19

 

“Permitted
Investment” means:

 

(1)           Investments in the Company or any Restricted Subsidiary (other than a
Securitization Entity and other than a transfer of Notes Priority Collateral to
a Restricted Subsidiary that is not a Guarantor) or any Person which, as a
result of such Investment, (a) becomes a Restricted Subsidiary (other than
a Securitization Entity) or (b) is merged or consolidated with or into, or
transfers or conveys substantially all of its assets to, or is liquidated into,
the Company or any Restricted Subsidiary (other than a Securitization Entity);

 

(2)           Investments in Cash Equivalents;

 

(3)           Investments
acquired by the Company or any Restricted Subsidiary in connection with an
Asset Sale permitted by Section 4.07 to the extent such Investments are
non-cash proceeds as permitted under such covenant;

 

(4)           Investments
by the Company or a Restricted Subsidiary in a Securitization Entity in
connection with a Qualified Securitization Transaction, which Investment is in
the good faith determination of the Company necessary or advisable to effect
such Qualified Securitization Transaction;

 

(5)           (x) Investments
in existence on the Issue Date and (y) an Investment in any Person to the
extent such Investment replaces or refinances an Investment covered by clause (x) above
or this clause (y) in an amount not exceeding the amount of the Investment
being replaced or refinanced; provided, however, that the
Investment under clause (y) is on terms and conditions not materially less
favorable to the Company and its Restricted Subsidiaries taken as a whole than
the Investment being replaced or refinanced;

 

(6)           Investments
acquired in exchange for the issuance of Capital Stock (other than Redeemable
Capital Stock of the Company or a Restricted Subsidiary or Preferred Stock of a
Restricted Subsidiary) or acquired with the net cash proceeds received by the
Company after the Issue Date from the issuance and sale of Capital Stock (other
than Redeemable Capital Stock of the Company or a Restricted Subsidiary or
Preferred Stock of a Restricted Subsidiary); provided that such Net Cash
Proceeds are used to make such Investment within 30 days of the receipt thereof
and the amount of all such Net Cash Proceeds will be excluded from Section 4.04(a)(3)(B);

 

(7)           Investments
in prepaid expenses, negotiable instruments held for collection and lease,
utility and worker’s compensation, performance and other similar deposits
provided to third parties in the ordinary course of business;

 

(8)           loans
or advances to employees of the Issuers for bona fide business purposes of the
Issuers and any Restricted Subsidiaries (including, without limitation, travel,
entertainment and moving expenses) made in compliance with applicable law;

 

(9)           any
Investments received in good faith in settlement or compromise of obligations
of trade creditors or customers that were incurred in the ordinary course of
business, including pursuant to any plan of reorganization or similar
arrangement upon the bankruptcy or insolvency of any trade creditor or customer
or as a result of a foreclosure by the Company or a Restricted Subsidiary with
respect to any secured Investment or other transfer of title with respect to
any secured Investment in default;

 

20

 

 

(10)         other Investments in the aggregate amount
outstanding at any one time not to exceed $20.0 million;

 

(11)         Hedging
Obligations permitted under Section 4.03(b)(6);

 

(12)         guarantees
of Indebtedness permitted under Section 4.03(b)(5);

 

(13)         Investments
consisting of purchases and acquisitions of inventory, supplies, material or
equipment; and

 

(14)         advances
to, or guarantees of Indebtedness of, employees not in excess of $2.5 million
outstanding at any one time, in the aggregate.

 

In
connection with any assets or property contributed or transferred to any Person
as an Investment, such property and assets shall be equal to the Fair Market
Value at the time of Investment.

 

“Permitted
Lien” means:

 

(a)           any
Lien existing as of the Issue Date;

 

(b)           any
Lien with respect to the Credit Agreement or any other Credit Facility so long
as the aggregate principal amount outstanding under the Credit Agreement or any
successor Credit Facility does not exceed the principal amount which could be
borrowed under clause (1) of the definition of “Permitted Indebtedness;”

 

(c)           any
Lien arising by reason of

 

(1)           any
judgment, decree or order of any court, so long as such Lien is promptly
adequately bonded and any appropriate legal proceedings which may have been
duly initiated for the review of such judgment, decree or order shall not have
been finally terminated or the period within which such proceedings may be
initiated shall not have expired;

 

(2)           taxes,
assessments or other governmental charges or claims not yet delinquent or which
are being contested in good faith;

 

(3)           security
for payment of workers’ compensation or other insurance and other social
security legislation;

 

(4)           good
faith deposits in connection with tenders, leases, contracts (other than
contracts for the payment of money);

 

(5)           zoning
restrictions, easements, licenses, reservations, title defects, rights of
others for rights of way, utilities, sewers, electric lines, telephone or
telegraph lines, and other similar purposes, provisions, covenants, conditions,
waivers, restrictions on the use of property or minor irregularities of title
(and with respect to leasehold interests, mortgages, obligations, liens and
other encumbrances incurred, created, assumed or permitted to exist and arising
by, through or under a landlord or owner of the leased property, with or
without consent of the lessee), none of which materially impairs the use of any
parcel of property material to the operation of the business of the Issuers or
any Restricted Subsidiary or the value of such property for the purpose of such
business;

 

21

 

(6)           deposits
to secure public or statutory obligations or levies, or in lieu of surety or
appeal bonds;

 

(7)           operation
of law in favor of mechanics, carriers, warehousemen, landlords, materialmen,
laborers, employees or suppliers, for sums which are not yet delinquent or are
being contested in good faith by negotiations or by appropriate proceedings
which suspend the collection thereof;

 

(8)           receipt
of progress payments and advances from customers in the ordinary course of
business to the extent the same creates a Lien on the related inventory and
proceeds thereof;

 

(9)           operation
of law in favor of customs and revenue authorities to secure the payment of
customs duties in connection with the importation of goods;

 

(10)         operation
of law under Article 4 of the UCC in connection with the collection of
items provided for therein or under Article 2 of the UCC in favor of a
reclaiming seller of goods or buyer of goods; or

 

(11)         consignment
or similar arrangements for the sale by the Company or its Restricted
Subsidiaries of goods through third parties in the ordinary course of business;

 

(d)           any
Lien securing Acquired Indebtedness created prior to (and not created in connection
with, or in contemplation of) the incurrence of such Indebtedness by the
Issuers or any Restricted Subsidiary and which does not extend to any assets
other than the assets acquired;

 

(e)           any
Lien to secure the performance bids, trade contracts, leases (including,
without limitation, statutory and common law landlord’s liens), subleases,
warranty obligations, tenders, liability to insurance carriers, statutory
obligations, surety and appeal bonds, letters of credit and other obligations
of a like nature and incurred in the ordinary course of business of the Issuers
or any Restricted Subsidiary;

 

(f)            any
Lien securing obligations under Interest Rate Agreements, Currency Agreements
and Commodity Price Protection Agreements;

 

(g)           any
Lien securing Capital Lease Obligations or Purchase Money Obligations incurred
in accordance with this Indenture (including, but not limited to, clause (7) of
the definition of “Permitted Indebtedness”);

 

(h)           leases
and subleases of real property which do not materially interfere with the
ordinary conduct of the business of the Issuers or any Restricted Subsidiary;

 

(i)            banker’s
Liens, rights of set-off or similar rights and remedies as to deposit accounts
or other funds maintained with a depositary institution which are within the
general parameters customary in the banking industry;

 

(j)            Liens
on property, assets or shares of stock of a Person at the time such Person
becomes a Restricted Subsidiary; provided, however, that such
Liens are not created, incurred or assumed in connection with, or in
contemplation of, such other Person becoming a Restricted Subsidiary; provided,
further, that any such Lien may not extend to any other property owned
by the Issuers or any Restricted Subsidiary and assets fixed or appurtenant
thereto;

 

22

 

(k)           Liens
securing Indebtedness or other obligations of a Restricted Subsidiary owing to
the Issuers or another Restricted Subsidiary (other than a Securitization
Entity);

 

(l)            Liens
securing the Notes and the Guarantees issued on the Issue Date (and any
exchange notes and related Guarantees issued in exchange therefor);

 

(m)          Liens
on assets transferred to a Securitization Entity or on assets of a
Securitization Entity, in either case incurred in connection with a Qualified
Securitization Transaction;

 

(n)           Liens
on the assets of a Restricted Subsidiary that is not a Guarantor securing
Indebtedness incurred in accordance with Section 4.03;

 

(o)           Liens
securing Permitted Additional Pari Passu Obligations;

 

(p)           any
extension, renewal, refinancing or replacement, in whole or in part, of any
Lien described in the foregoing clauses (a) through (o) and this
clause (p) so long as no additional collateral is granted as security
thereby;

 

(q)           Liens
on property or assets securing Indebtedness used to defease or to satisfy and
discharge the Notes; and

 

(r)            in
addition to the items referred to in clauses (a) through (q) above,
Liens on property or assets of the Issuers or any Restricted Subsidiary
securing obligations in an aggregate amount which, when taken together with the
aggregate amount of all other Liens securing obligations incurred pursuant to
this clause (r) and then outstanding, will not exceed $10.0 million.

 

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

 

“plan
of reorganization” means any plan of reorganization, plan of liquidation,
agreement for composition, or other type of plan of arrangement proposed in or
in connection with any Insolvency or Liquidation Proceeding.

 

“Preferred
Stock” means, with respect to any Person, any Capital Stock of any class or
classes (however designated) which is preferred as to the payment of dividends
or distributions, or as to the distribution of assets upon any voluntary or
involuntary liquidation or dissolution of such Person, over the Capital Stock
of any other class in such Person.

 

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

 

“Purchase
Money Obligation” means any Indebtedness secured by a Lien on assets
related to the business of the Issuers or a Restricted Subsidiary and any
additions and accessions thereto, which are purchased or constructed by the
Issuers or a Restricted Subsidiary at any time after the Issue Date; provided
that:

 

(1)           the
security agreement or conditional sales or other title retention contract
pursuant to which the Lien on such assets is created (collectively a “Purchase
Money Security Agreement”) shall be entered into within 360 days after the
purchase or substantial completion of the

 

23

 

construction
of such assets and shall at all times be confined solely to the assets so
purchased, constructed or acquired, any additions and accessions thereto and
any proceeds therefrom;

 

(2)           at
no time shall the aggregate principal amount of the outstanding Indebtedness
secured thereby be increased, except in connection with the purchase or
construction of additions, improvements and accessions thereto and except in
respect of fees and other obligations in respect of such Indebtedness; and

 

(3)           (A) the
aggregate outstanding principal amount of Indebtedness secured thereby
(determined on a per asset basis in the case of any additions, improvements and
accessions) shall not at the time such Purchase Money Security Agreement is
entered into exceed 100% of the purchase price or cost of construction to the
Issuers or their Restricted Subsidiaries of the assets subject thereto or (B) the
Indebtedness secured thereby shall be with recourse solely to the assets so
purchased or acquired, any additions and accessions thereto and any proceeds
therefrom.

 

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

 

“Qualified
Capital Stock” of any Person means any and all Capital Stock of such Person
other than Redeemable Capital Stock.

 

“Qualified
Securitization Transaction” means any transaction or series of transactions
that may be entered into by the Issuers or any Restricted Subsidiary pursuant
to which (a) the Issuers or any Restricted Subsidiary may sell, convey or
otherwise transfer to a Securitization Entity its interests in Receivables and
Related Assets and (b) such Securitization Entity transfers to any other
Person, or grants a security interest in, such Receivables and Related Assets,
pursuant to a transaction customary in the industry which is used to achieve a
transfer of financial assets under GAAP.

 

“Receivables
and Related Assets” means any account receivable (whether now existing or
arising thereafter) of the Issuers or any Restricted Subsidiary, and any assets
related thereto including all collateral securing such accounts receivable, all
contracts and contract rights 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.

 

“Record
Date” for the interest or Additional Interest, if any, payable on any
applicable Interest Payment Date means the April 1 or October 1
(whether or not a Business Day) immediately preceding such Interest Payment
Date.

 

“Redeemable
Capital Stock” means any Capital Stock that, either by its terms or by the
terms of any security into which it is convertible or exchangeable (at the
option of the holders thereof), is or upon the happening of an event or passage
of time would be, required to be redeemed (at the option of the holders
thereof) prior to the Stated Maturity of the Notes (other than upon a change of
control of or sale of assets by the Issuers or any Restricted Subsidiary in
circumstances where the holders of the notes would have similar rights), or is
convertible into or exchangeable for, debt securities at any time prior to the
Stated Maturity of the Notes at the option of the holder thereof; provided,
however, that (1) only the portion of such Capital Stock which so
matures or is mandatorily redeemable, is so convertible or exchangeable or is
so redeemable at the option of the holder thereof prior to such date shall be
deemed to be Redeemable Capital Stock and (2) with respect to any Capital
Stock issued to any employee or to any plan for the benefit of employees of the
Company or its Subsidiaries or by any such plan to such employees, such Capital
Stock shall not constitute Redeemable Capital Stock solely because it may be
required to be repurchased by the Company or one of its Subsidiaries in order
to satisfy applicable statutory or

 

24

 

regulatory
obligations or as a result of such employees’ terminations, resignation, death
or disability and (3) if any class of Capital Stock of such Person that by
its terms authorizes such Person to satisfy its obligations thereunder by delivery
of Capital Stock that is not Redeemable Capital Stock, such Capital Stock shall
not be deemed to be Redeemable Capital Stock.

 

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

 

“Registration
Rights Agreement” means (1) with respect to the Notes issued on the
Issue Date, the Registration Rights Agreement, to be dated the Issue Date,
among the Issuers, the Guarantors on the Issue Date and the Initial Purchasers
and (2) with respect to any Additional Notes, any registration rights
agreement among the Issuers, the Guarantors and the other parties thereto
relating to the registration by the Issuers and the Guarantors of such
Additional Notes under the Securities Act.

 

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

 

“Regulation
S Global Note” means a Regulation S Temporary Global Note or a Regulation S
Permanent Global Note, as appropriate.

 

“Regulation
S Permanent Global Note”  means a
Global Note substantially in the form of Exhibit A-1 hereto,
bearing the Global Note Legend, the OID 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 Regulation S.

 

“Regulation
S Temporary Global Note” means a temporary Global Note in the form of Exhibit A-2,
bearing the OID Legend, the Private Placement Legend and the Regulation S
Temporary Global Note 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 initially sold in reliance on Rule 903
of Regulation S.

 

“Regulation
S Temporary Global Note Legend” means the legend set forth in Section 2.06(g)(v) to
be placed on the Regulation S Temporary Global Note.

 

“Replacement
Assets” means (1) properties or assets to replace the properties or
assets that were the subject of an Asset Sale, (2) properties and assets
that will be used in businesses of the Issuers or any Restricted Subsidiary, as
the case may be, existing at the time such assets are sold or (3) Capital
Stock of a Person, the principal portion of whose assets consist of such
property or assets; provided that in the case of a sale of Notes
Priority Collateral substantially all of such replacement properties or assets
constitute Notes Priority Collateral.

 

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

 

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

 

25

 

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

 

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

 

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

 

“Restricted
Subsidiary” means any Subsidiary of either the Company (including Tops
Markets) or Tops Markets that has not been designated by the Board of Directors
of the Company by a board resolution delivered to the Trustee as an
Unrestricted Subsidiary pursuant to and in compliance with Section 4.12.

 

“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, a division of The McGraw-Hill Companies, Inc.,
and any successor to its rating agency business.

 

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

 

“Securities
Act” means the Securities Act of 1933, as amended, or any successor
statute, and the rules and regulations promulgated by the SEC thereunder.

 

“Securitization
Entity” means a Subsidiary of the Company to which the Issuers or any
Subsidiary of the Issuers transfers Receivables and Related Assets that engages
in no activities other than in connection with the financing of Receivables and
Related Assets and that is designated by the Company’s Board of Directors (as
provided below) as a Securitization Entity and:

 

(a)           no
portion of the Indebtedness or any other obligations (contingent or otherwise)
of which:

 

(1)           is
guaranteed by the Issuers or any Restricted Subsidiary (excluding guarantees
(other than the principal of, and interest on, Indebtedness) pursuant to
Standard Securitization Undertakings);

 

(2)           is
recourse to or obligates the Issuers or any Restricted Subsidiary (other than
such Securitization Entity) in any way other than pursuant to Standard
Securitization Undertakings; or

 

(3)           subjects
any property or asset of the Issuers or any Restricted Subsidiary (other than
such Securitization Entity), directly or indirectly, contingently or otherwise,
to the satisfaction thereof, other than pursuant to Standard Securitization
Undertakings;

 

(b)           with
which neither the Issuers nor any Restricted Subsidiary (other than such
Securitization Entity) has any material contract, agreement, arrangement or
understanding other

 

26

 

than
on terms not materially less favorable to the Issuers or such Restricted
Subsidiary than those that might be obtained at the time from Persons that are
not Affiliates of the Issuers, other than fees payable in the ordinary course
of business in connection with servicing accounts receivable; and

 

(c)           to
which neither Issuer nor any Restricted Subsidiary (other than such
Securitization Entity) has any obligation to maintain or preserve such entity’s
financial condition or cause such entity to achieve certain levels of operating
results.

 

Any
designation of a Subsidiary as a Securitization Entity shall be evidenced to
the Trustee by delivering to the Trustee a certified copy of the resolution of
the Board of Directors of the Company giving effect to the designation and an
Officer’s Certificate certifying that the designation complied with the
preceding conditions and was permitted by this Indenture.

 

“Securitization
Fees” means reasonable distributions or payments made directly or by means
of discounts with respect to any participation interest issued or sold in
connection with, and other fees paid to a Person that is not a Securitization
Entity in connection with any Qualified Securitization Transaction.

 

“Securitization
Repurchase Obligation” means any obligation of a seller of Receivables and
Related Assets in a Qualified Securitization Transaction to repurchase
Receivables and Related Assets arising as a result of a breach of a
representation, warranty or covenant or otherwise that are customary for an
accounts receivable securitization transaction, including, without limitation,
as a result of a receivable or portion thereof becoming subject to any asserted
defense, dispute, off set or counterclaim of any kind as a result of any action
taken by, any failure to take action by or any other event relating to the
seller.

 

“Security
Agreement” means the Security Agreement, dated as of October 9, 2009,
by and among the Issuers, the Guarantors and the Collateral Agent, as the same
may be amended, modified, restated, supplemented or replaced from time to time
in accordance with its terms.

 

“Security
Documents” means the Security Agreement, the Intercreditor Agreement and
all of the security agreements, pledges, collateral assignments, mortgages,
deeds of trust, trust deeds or other instruments evidencing or creating or
purporting to create any security interests in favor of the Collateral Agent
for its benefit and for the benefit of the Trustee and the holders of the Notes
and the holders of any Permitted Additional Pari Passu Obligations, in all or
any portion of the Collateral, as amended, modified, restated, supplemented or
replaced from time to time.

 

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

 

“Significant
Subsidiary” means, at any time, any Restricted Subsidiary that qualifies at
such time as a “significant subsidiary” within the meaning of Regulation S-X
promulgated by the SEC (as in effect on the Issue Date).

 

“Sponsor
Management Agreement” means the management agreement between certain of the
management companies associated with the Sponsors and the Company or any of its
direct or indirect parent entities.

 

27

 

“Sponsors”
means Morgan Stanley Capital Partners V U.S. Holdco LLC, HSBC Private Equity
Partners USA, LP, HSBC Private Equity Partners II USA, LP, and each of their
respective Affiliates but not including, however, any of their respective
portfolio companies.

 

“Standard
Securitization Undertakings” means representations, warranties, covenants
and indemnities entered into by the Issuers or any Restricted Subsidiary that
are reasonably customary in an accounts receivable securitization transaction,
including without limitation, those relating to the servicing of the assets of a
Securitization Entity; it being understood that any Securitization Repurchase
Obligation that is customary in a Qualified Securitization Transaction shall be
deemed to be a Standard Securitization Undertaking.

 

“Stated
Maturity” means, when used with respect to any Indebtedness or any
installment of interest thereon, the dates specified in such Indebtedness as
the fixed date on which the principal of such Indebtedness or such installment
of interest, as the case may be, is due and payable.

 

“Subordinated
Indebtedness” means Indebtedness of the Issuers or a Guarantor that is
contractually subordinated in right of payment to the Notes or a Guarantee, as
the case may be.

 

“Subsidiary”
of a Person means:

 

(1)           any
corporation more than 50% of the outstanding voting power of the Voting Stock
of which is owned or controlled, directly or indirectly, by such Person or by
one or more other Subsidiaries of such Person, or by such Person and one or
more other Subsidiaries thereof; or

 

(2)           any
limited partnership of which such Person or any Subsidiary of such Person is a
general partner; or

 

(3)           any
other Person in which such Person, or one or more other Subsidiaries of such
Person, or such Person and one or more other Subsidiaries, directly or
indirectly, has more than 50% of the outstanding voting power of the
partnership or similar interests.

 

“Transactions”
means the issuance of the Notes and the borrowings under the Credit Agreement
as in effect on the Issue Date, the repayment of Indebtedness of the Issuers
and any Restricted Subsidiary, the payment of a distribution to the holders of
the Capital Stock of the Company on, or within 30 days of, the Issue Date, as
described in the Offering Memorandum, and any fees and expenses related to any
of the foregoing.

 

“Transfer
Agent” means the Person specified in Section 2.03 as the Transfer
Agent, and any and all successors thereto, to receive on behalf of the
Registrar any Notes or Exchange Notes for transfer or exchange pursuant to this
Indenture.

 

“Treasury
Rate” means, as of any Redemption Date, the yield to maturity as of such
Redemption Date of United States Treasury securities with a constant maturity
(as compiled and published in the most recent Federal Reserve Statistical
Release H.15 (519) that has become publicly available at least two Business
Days prior to the Redemption Date (or, if such Statistical Release is no longer
published, any publicly available source of similar market data)) most nearly
equal to the period from the Redemption Date to October 15, 2012; provided,
however, that if the period from the Redemption Date to October 15,
2012 is less than one year, the weekly average yield on actually traded United
States Treasury securities adjusted to a constant maturity of one year will be
used.

 

28

 

“Trust
Indenture Act” means the Trust Indenture Act of 1939, as amended, or any
successor statute.

 

“Trust
Monies” means all cash and Cash Equivalents:

 

(1)           received
by the Company upon the release of Collateral from the Lien of this Indenture
or the Security Documents in connection with any Asset Sale; provided
that any such cash or Cash Equivalents remaining after consummation of an Offer
pursuant to Section 4.07 shall cease to be Trust Monies; or

 

(2)           received
by the Collateral Agent as proceeds of any sale or other disposition of all or
any part of the Collateral by or on behalf of the Collateral Agent or any
collection, recovery, receipt, appropriation or other realization of or from
all or any part of the Collateral pursuant to this Indenture or any of the
Security Documents;

 

provided, however, that Trust Monies shall in
no event include (i) any property deposited with the Trustee for any
redemption, legal defeasance or covenant defeasance of Notes, for the
satisfaction and discharge of this Indenture or to pay the purchase price of
the Notes and any Permitted Additional Pari Passu Obligations pursuant to an
Offer in accordance with the terms of this Indenture, (ii) any cash
received or applicable by the Trustee in payment of its fees and expenses or, (iii) prior
to the Discharge of ABL Obligations, any amounts attributable to ABL Priority
Collateral.

 

“Trustee”
means U.S. Bank National Association, as trustee, until a successor replaces it
in accordance with Section 7.08 and thereafter means the successor serving
hereunder.

 

“UCC”
means the Uniform Commercial Code as in effect from time to time in the State
of New York; provided, however, that, at any time, if by reason
of mandatory provisions of law, any or all of the perfection or priority of the
Collateral Agent’s security interest in any item or portion of the Collateral
is governed by the Uniform Commercial Code as in effect in a jurisdiction other
that the State of New York, the term “UCC” shall mean the Uniform Commercial
Code as in effect, at such time, in such other jurisdiction for purposes of the
provisions hereof relating to such perfection or priority and for purposes of
definitions relating to such provisions.

 

“Unrestricted
Definitive Note” means one or more Definitive Notes that do not bear and
are not required to bear the Private Placement Legend.

 

“Unrestricted
Global Note” means a permanent Global Note, substantially in the form of Exhibit A
attached hereto, that bears the Global Note Legend and the OID Legend and that
has the “Schedule of Exchanges of Interests in the Global Note” attached
thereto, and that is deposited with or on behalf of and registered in the name
of the Depositary, representing Notes that do not bear the Private Placement
Legend.

 

“Unrestricted
Subsidiary” means any Subsidiary of the Company (other than an Issuer)
designated as such pursuant to and in compliance with Section 4.12.

 

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

 

“Voting
Stock” of a Person means Capital Stock of such Person of the class or
classes pursuant to which the holders thereof have the general voting power
under ordinary circumstances to elect at least a majority of the Board of
Directors, managers or trustees of such Person (irrespective of whether 

 

29

 

or
not at the time Capital Stock of any other class or classes shall have or might
have voting power by reason of the happening of any contingency).

 

Section 1.02              Other Definitions.

 

	
  Term

  	
   

  	
  Defined
  in

  Section

  	
   

  
	
  “Authentication Order”

  	
   

  	
  2.02

  	
   

  
	
  “Change of Control Offer”

  	
   

  	
  4.09

  	
   

  
	
  “Change of Control Purchase Date”

  	
   

  	
  4.09

  	
   

  
	
  “Change of Control Purchase Notice”

  	
   

  	
  4.09

  	
   

  
	
  “Change of Control Purchase Price”

  	
   

  	
  4.09

  	
   

  
	
  “Covenant Defeasance”

  	
   

  	
  8.03

  	
   

  
	
  “Designation Amount”

  	
   

  	
  4.12

  	
   

  
	
  “DTC”

  	
   

  	
  2.03

  	
   

  
	
  “Event of Default”

  	
   

  	
  6.01

  	
   

  
	
  “Excess Proceeds”

  	
   

  	
  4.07

  	
   

  
	
  “incur”

  	
   

  	
  4.03

  	
   

  
	
  “Legal Defeasance”

  	
   

  	
  8.02

  	
   

  
	
  “Material Indebtedness”

  	
   

  	
  6.01

  	
   

  
	
  “Note Register”

  	
   

  	
  2.03

  	
   

  
	
  “Offer”

  	
   

  	
  4.07

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.03

  	
   

  
	
  “Permitted Indebtedness”

  	
   

  	
  4.03

  	
   

  
	
  “Permitted Payment”

  	
   

  	
  4.04

  	
   

  
	
  “refinancing”

  	
   

  	
  4.04

  	
   

  
	
  “Registrar”

  	
   

  	
  2.03

  	
   

  
	
  “Restricted Payment”

  	
   

  	
  4.04

  	
   

  
	
  “Surviving Entity”

  	
   

  	
  5.01

  	
   

  
	
  “Surviving Guarantor Entity”

  	
   

  	
  5.01

  	
   

  
	
  “Tax Group”

  	
   

  	
  4.04

  	
   

  

 

Section 1.03              Incorporation by Reference of Trust Indenture
Act.

 

Whenever
this Indenture refers to a provision of the Trust Indenture Act, the provision
is incorporated by reference in and made a part of this Indenture.

 

The
following Trust Indenture Act terms used in this Indenture have the following
meanings:

 

“indenture securities” means the Notes;

 

“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 Guarantees means the
Issuers and the Guarantors, respectively, and any successor obligor upon the
Notes and the Guarantees, respectively.

 

30

 

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

 

Section 1.04                                          Rules of Construction.

 

Unless
the context otherwise requires:

 

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

 

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

 

(c)           “or”
is not exclusive;

 

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

 

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

 

(f)            provisions
apply to successive events and transactions;

 

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

 

(h)           unless
the context otherwise requires, any reference to an “Article,” “Section” or “clause”
refers to an Article, Section or clause, as the case may be, of this
Indenture;

 

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

 

(j)            “including”
means “including without limitation.”

 

Section 1.05                                         Acts of Holders.

 

(a)           Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given or taken by Holders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person or
by an agent duly appointed in writing. 
Except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments or record or both are delivered
to the Trustee and, where it is hereby expressly required, to the Issuers.  Proof of execution of any such instrument or
of a writing appointing any such agent, or the holding by any Person of a Note,
shall be sufficient for any purpose of this Indenture and (subject to Section 7.01)
conclusive in favor of the Trustee and the Issuers, if made in the manner
provided in this Section 1.05.

 

(b)           The fact and date of the execution by any Person of any such instrument
or writing may be proved by the affidavit of a witness of such execution or by
the certificate of any notary public or other officer authorized by law to take
acknowledgments of deeds, certifying that the individual signing such
instrument or writing acknowledged to him the execution thereof.  Where such execution is by or on behalf of
any legal entity other than an individual, such certificate or affidavit shall
also constitute

 

31

 

proof
of the authority of the Person executing the same.  The fact and date of the execution of any such
instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner that the Trustee deems sufficient.

 

(c)           The ownership of Notes shall be proved by the Note Register.

 

(d)           Any request, demand, authorization, direction, notice, consent, waiver
or other action by the Holder of any Note shall bind every future Holder of the
same Note and the Holder of every Note issued upon the registration of transfer
thereof or in exchange therefor or in lieu thereof, in respect of any action
taken, suffered or omitted by the Trustee or the Issuers in reliance thereon,
whether or not notation of such action is made upon such Note.

 

(e)           The Issuers may, in the circumstances permitted by the Trust Indenture
Act, set a record date for purposes of determining the identity of Holders
entitled to give any request, demand, authorization, direction, notice,
consent, waiver or take any other act, or to vote or consent to any action by
vote or consent authorized or permitted to be given or taken by Holders.  Unless otherwise specified, if not set by the
Issuers prior to the first solicitation of a Holder made by any Person in
respect of any such action, or in the case of any such vote, prior to such
vote, any such record date shall be the later of 30 days prior to the first
solicitation of such consent or the date of the most recent list of Holders
furnished to the Trustee prior to such solicitation.

 

(f)            Without limiting the foregoing, a Holder
entitled to take any action hereunder with regard to any particular Note may do
so with regard to all or any part of the principal amount of such Note or by
one or more duly appointed agents, each of which may do so pursuant to such
appointment with regard to all or any part of such principal amount.  Any notice given or action taken by a Holder
or its agents with regard to different parts of such principal amount pursuant
to this paragraph shall have the same effect as if given or taken by separate
Holders of each such different part.

 

(g)           Without limiting the generality of the foregoing, a Holder, including
DTC, that is the Holder of a Global Note may make, give or take, by a proxy or
proxies duly appointed in writing, any request, demand, authorization, direction,
notice, consent, waiver or other action provided in this Indenture to be made,
given or taken by Holders, and DTC, as the Holder of a Global Note, may provide
its proxy or proxies to the beneficial owners of interests in any such Global
Note through such depositary’s standing instructions and customary practices.

 

(h)           The Issuers may fix a record date for the purpose of determining the
Persons who are beneficial owners of interests in any Global Note held by DTC
entitled under the procedures of such depositary to make, give or take, by a
proxy or proxies duly appointed in writing, any request, demand, authorization,
direction, notice, consent, waiver or other action provided in this Indenture
to be made, given or taken by Holders. 
If such a record date is fixed, the Holders on such record date or their
duly appointed proxy or proxies, and only such Persons, shall be entitled to
make, give or take such request, demand, authorization, direction, notice,
consent, waiver or other action, whether or not such Holders remain Holders
after such record date.  No such request,
demand, authorization, direction, notice, consent, waiver or other action shall
be valid or effective if made, given or taken more than 90 days after such
record date.

 

32

 

ARTICLE
2

 

THE
NOTES

 

Section 2.01                                         Form and Dating; Terms.

 

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

 

(b)           Global Notes.  Notes issued in global form shall 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 shall be substantially in the form of Exhibit A
attached 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 shall represent such of the
outstanding Notes as shall be specified in the “Schedule of Exchanges of
Interests in the Global Note” attached thereto and each shall provide that it
shall represent up to the aggregate principal amount of 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
applicable, 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 shall 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.

 

Following
the termination of the Restricted Period, beneficial interests in the
Regulation S Temporary Global Note will be exchanged for beneficial interests
in the Regulation S Permanent Global Note pursuant to the Applicable
Procedures.  Simultaneously with the
authentication of the Regulation S Permanent Global Note, the Trustee will
cancel the Regulation S Temporary Global Note. 
The aggregate principal amount of the Regulation S Temporary Global Note
and the Regulation S Permanent Global Note may from time to time be increased
or decreased by adjustments made on the records of the Trustee and the
Depositary or its nominee, as the case may be, in connection with transfers of
interest as hereinafter provided.

 

(c)           Terms.  The aggregate principal amount
of Notes that may be authenticated and delivered under this Indenture is
unlimited.

 

The
terms and provisions contained in the Notes shall constitute, and are hereby
expressly made, a part of this Indenture and the Issuers, the Guarantors and
the Trustee, by their execution and delivery of this Indenture, expressly agree
to such terms and provisions and to be bound thereby.  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.

 

The
Notes shall be subject to repurchase by the Issuers pursuant to an Offer as
provided in Section 4.07 or a Change of Control Offer as provided in Section 4.09.  The Notes shall not be redeemable, other than
as provided in Article 3.

 

Additional
Notes ranking pari passu with the Initial
Notes may be created and issued from time to time by the Issuers without notice
to or consent of the Holders and shall be consolidated with and form a single
class with the Initial Notes and shall have the same terms as to status,
redemption or otherwise (other than with respect to the purchase price thereof
and the date from which the interest accrues)

 

33

 

as
the Initial Notes; provided that the Issuers’ ability to issue Additional
Notes shall be subject to the Issuers’ compliance with Section 4.03 and Section 4.06.  The Notes and any Additional Notes shall be
substantially identical other than the issuance dates, offering price, transfer
restrictions and, if applicable, the date from which interest shall
accrue.  The Additional Notes shall be
secured, equally and ratably with the Notes and any Permitted Additional Pari
Passu Obligations, by the Note Lien on the Collateral.  Except as described under Article 9, the
Initial Notes and any Additional Notes subsequently issued under this Indenture
will be treated as a single class for all purposes under this Indenture,
including waivers, amendments, redemptions and offers to purchase, and shall
vote together with any Exchange Notes. 
Unless the context requires otherwise, references to “Notes” for all
purposes of this Indenture include any Additional Notes that are actually
issued.  Any Additional Notes shall be
issued with the benefit of an indenture supplemental to this Indenture.

 

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

 

Section 2.02                                         Execution and Authentication.

 

At
least one Officer shall execute the Notes on behalf of the Issuers 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 shall nevertheless be valid.

 

A
Note shall not be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose until authenticated substantially in the form
provided for in Exhibit A attached hereto, by the manual signature
of the Trustee.  The signature shall be
conclusive evidence that the Note has been duly authenticated and delivered
under this Indenture.

 

On
the Issue Date, the Trustee shall, upon receipt of the Issuers order (an “Authentication
Order”), authenticate and deliver the Initial Notes.  In addition, at any time, from time to time,
the Trustee shall upon an Authentication Order authenticate and deliver any (i) Additional
Notes and (ii) Exchange Notes or private exchange notes for issue only in
an Exchange Offer or a private exchange, respectively, pursuant to a
Registration Rights Agreement, for a like principal amount of Initial
Notes.  Such Authentication Order shall
specify the amount of the Notes to be authenticated and, in the case of any
issuance of Additional Notes pursuant to Section 2.01, shall certify that
such issuance is in compliance with Section 4.03 and Section 4.06.

 

The
Trustee may appoint an authenticating agent acceptable to the Issuers 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 Issuers.

 

Section 2.03                                         Registrar and Paying Agent.

 

The
Issuers shall 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”),
including an office or agency for such purposes in the City of New York, which
shall initially be the corporate trust office of the Trustee located in the
City of New York.  The

 

34

 

Registrar
shall keep a register of the Notes (“Note Register”) and of their
transfer and exchange.  The Issuers 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 Issuers may change any Paying
Agent or Registrar without prior notice to any Holder.  The Issuers shall notify the Trustee in
writing of the name and address of any Agent not a party to this
Indenture.  If the Issuers fail to
appoint or maintain another entity as Registrar or Paying Agent, the Trustee
shall act as such.  Either Issuer or any
of their Subsidiaries may act as Paying Agent or Registrar.

 

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

 

The
Issuers initially appoint the Trustee to act as the Paying Agent, Registrar and
Transfer Agent for the Notes and the Registrar to act as Custodian with respect
to the Global Notes.

 

Section 2.04                                         Paying Agent to Hold Money in Trust.

 

The
Issuers shall require each Paying Agent other than the Trustee to agree in
writing that the Paying Agent shall hold in trust for the benefit of Holders or
the Trustee all money held by the Paying Agent for the payment of principal, premium,
if any, or Additional Interest, if any, or interest on the Notes, and will
notify the Trustee of any default by the Issuers 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 Issuers 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 (if other than an Issuer or a Subsidiary) shall have no further liability
for the money.  If an Issuer or a
Subsidiary acts as Paying Agent, it shall segregate and hold in a separate
trust fund for the benefit of the Holders all money held by it as Paying
Agent.  Upon any bankruptcy or
reorganization proceedings relating to the Issuers, the Trustee shall serve as
Paying Agent for the Notes.

 

Section 2.05                                         Holder Lists.

 

The
Trustee shall preserve in as current a form as is reasonably practicable the
most recent list available to it of the names and addresses of all Holders and
shall otherwise comply with Trust Indenture Act Section 312(a).  If the Trustee is not the Registrar, the
Issuers shall furnish to the Trustee at least two 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 Issuers
shall otherwise comply with Trust Indenture Act Section 312(a).

 

Section 2.06                                         Transfer and Exchange.

 

(a)           Transfer and Exchange of Global Notes. 
Except as otherwise set forth in this Section 2.06, a Global Note
may be transferred, in whole and not in part, only to another nominee of the
Depositary or to a successor Depositary or a nominee of such successor
Depositary.  A beneficial interest in a
Global Note may not be exchanged for a Definitive Note unless (i) the
Depositary (x) notifies the Issuers that it is unwilling or unable to
continue as Depositary for such Global Note or (y) has ceased to be a
clearing agency registered under the Exchange Act and, in either case, a
successor Depositary is not appointed by the Issuers within 90 days, (ii) there
shall have occurred and be continuing a Default with respect to the Notes or (iii) the
Issuers in their sole discretion execute and deliver an Officer’s Certificate
stating that such Global Note shall be so exchangeable.  Upon the occurrence of any of the preceding
events in (i), (ii) or (iii) above, Definitive Notes delivered in
exchange for any Global Note or beneficial interests therein will be registered
in the names, and issued in any approved denominations, requested by

 

35

 

or
on behalf of the Depositary (in accordance with its customary procedures).  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, except for Definitive
Notes issued subsequent to any of the preceding events in (i), (ii) or (iii) above
and pursuant to Section 2.06(c), (e) or (f).  A Global Note may not be exchanged for
another Note other than as provided in this Section 2.06(a); provided,
however, beneficial interests in a Global Note may be transferred and
exchanged as provided in Sections 2.06(b), (c), (f) and (j).

 

(b)           Transfer and Exchange of Beneficial Interests
in the Global Notes.  The transfer and exchange of beneficial
interests in the Global Notes shall be effected through the Depositary, in
accordance with the provisions of this Indenture and the Applicable Procedures.  Beneficial interests in the Restricted Global
Notes shall 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 shall require compliance with either subparagraph (i) or
(ii) below, as applicable, as well as one or more of the other following
subparagraphs, as applicable:

 

(i)            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 Temporary 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)(i).

 

(ii)           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)(i), the transferor of such beneficial
interest must deliver to the Registrar either (A) (1) 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 (2) instructions
given in accordance with the Applicable Procedures containing information
regarding the Participant account to be credited with such increase or (B) (1) 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 (2) 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; provided that in no
event shall Definitive Notes be issued upon the transfer or exchange of
beneficial interests in the Regulation S Temporary Global Note prior to (A) the
expiration of the Restricted Period and (B) the receipt by the Registrar
of any certificates required pursuant to Rule 903; provided, further,
that in no event shall a beneficial interest in an Unrestricted Global Note be
credited, or an Unrestricted Definitive Note be issued, to a Person who is an
affiliate (as defined in Rule 144) of the Issuers.  Upon consummation of an Exchange Offer by the
Issuers in accordance with Section 2.06(f), the requirements of this Section 2.06(b)(ii) 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.  

 

36

 

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).

 

(iii)          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)(ii) 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; or

 

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

 

(iv)          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)(ii) 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, certifies in the applicable Letter of
Transmittal that it is not (1) a broker-dealer, (2) a Person
participating in the distribution of the Exchange Notes or (3) a Person
who is an affiliate (as defined in Rule 144) of the Issuers;

 

(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;

 

(D)          the
Registrar receives the following:

 

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

 

(2)           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 a beneficial interest in
an Unrestricted Global Note, a certificate from such holder in the form of Exhibit B
hereto, including the certifications in item (4) thereof;

 

37

 

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; or

 

(E)           such transfer is effected pursuant to an automatic exchange in
accordance with Section 2.06(j) of this Indenture.

 

If any such transfer is effected pursuant to
subparagraph (B), (D) or (E) above at a time when an Unrestricted Global
Note has not yet been issued, the Issuers 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), (D) or (E) 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.

 

(i)            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 the occurrence of any of the events in paragraph
(i), (ii) or (iii) of Section 2.06(a) and 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 substantially 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 substantially in the form of 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 substantially in the form of 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 substantially in
the form of Exhibit B hereto, including the certifications in item
(3)(a) thereof;

 

(E)           if such beneficial interest is being
transferred to the Issuers or any of their Restricted Subsidiaries, a
certificate substantially in the form of Exhibit B hereto,
including the certifications in item (3)(b) thereof;

 

38

 

(F)           if
such beneficial interest is being transferred pursuant to an effective
registration statement under the Securities Act, a certificate substantially in
the form of Exhibit B hereto, including the certifications in item
(3)(c) thereof; or

 

(G)           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;

 

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
Issuers shall execute and the Trustee shall authenticate and mail to the Person
designated in the instructions a Definitive Note in the applicable 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 mail 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)(i) shall bear the
Private Placement Legend, the OID Legend and the Regulation S Temporary Global
Note Legend, as applicable, and shall be subject to all restrictions on
transfer contained therein.

 

(ii)           Beneficial Interests in Regulation S
Temporary Global Note to Definitive Notes.  Notwithstanding Sections
2.06(c)(i)(A) and (C), a beneficial interest in the Regulation S Temporary
Global Note may not be exchanged for a Definitive Note or transferred to a Person
who takes delivery thereof in the form of a Definitive Note prior to (A) the
expiration of the Restricted Period and (B) the receipt by the Registrar
of any certificates required pursuant to Rule 903(b)(3)(ii)(B) under
the Securities Act, except in the case of a transfer pursuant to an exemption
from the registration requirements of the Securities Act other than Rule 903
or Rule 904.

 

(iii)          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 upon the occurrence of any of the events in subsection (i), (ii) or
(iii) of Section 2.06(a) and 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 (1) a
broker-dealer, (2) a Person participating in the distribution of the
Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144)
of the Issuers;

 

(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;

 

(D)          the
Registrar receives the following:

 

39

 

(1)           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 substantially in the form of Exhibit C
hereto, including the certifications in item (1)(b) thereof; or

 

(2)           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
substantially 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; or

 

(E)           such
transfer is effected pursuant to an automatic exchange in accordance with Section 2.06(j) of
this Indenture.

 

(iv)          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
the occurrence of any of the events in subsection (i), (ii) or (iii) of
Section 2.06(a) and satisfaction of the conditions set forth in Section 2.06(b)(ii),
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
Issuers shall execute and the Trustee shall authenticate and mail to the Person
designated in the instructions a Definitive Note in the applicable principal
amount.  Any Definitive Note issued in
exchange for a beneficial interest pursuant to this Section 2.06(c)(iv) 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 or through the Depositary and the
Participant or Indirect Participant.  The
Trustee shall mail 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)(iv) shall
not bear the Private Placement Legend.

 

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

 

(i)            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 Note 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 substantially 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 substantially in the form of Exhibit B
hereto, including the certifications in item (1) thereof;

 

40

 

(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 substantially in the form of 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 substantially in the form of Exhibit B hereto,
including the certifications in item (3)(a) thereof;

 

(E)           if
such Restricted Definitive Note is being transferred to the Issuers or any of
their Restricted Subsidiaries, a certificate substantially in the form of Exhibit B
hereto, including the certifications in item (3)(b) thereof; or

 

(F)           if
such Restricted Definitive Note is being transferred pursuant to an effective
registration statement under the Securities Act, a certificate substantially in
the form of Exhibit B hereto, including the certifications in item
(3)(c) thereof,

 

the
Trustee shall cancel the Restricted Definitive Note, increase or cause to be
increased the aggregate principal amount of, in the case of clause (A) above,
the applicable Restricted Global Note, in the case of clause (B) above,
the applicable 144A Global Note and, in the case of clause (C) above, the
applicable Regulation S Global Note.

 

(ii)           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 (1) a broker-dealer, (2) a
Person participating in the distribution of the Exchange Notes or (3) a
Person who is an affiliate (as defined in Rule 144) of the Issuers;

 

(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;

 

(D)          the
Registrar receives the following:

 

(1)           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 substantially in the form of Exhibit C hereto,
including the certifications in item (1)(c) thereof; or

 

(2)           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 substantially in the
form of Exhibit B hereto, including the certifications in item (4) thereof;

 

41

 

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; or

 

(E)           such
transfer is effected pursuant to an automatic exchange in accordance with Section 2.06(j) of
this Indenture.

 

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

 

(iii)          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.  Upon receipt of
a request for such an exchange or transfer, the Trustee shall 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 subparagraph (ii)(B), (ii)(D) or (iii) above
at a time when an Unrestricted Global Note has not yet been issued, the Issuers
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 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 shall register the transfer or exchange of Definitive Notes.  Prior to such registration of transfer or
exchange, the requesting Holder shall 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 shall provide any additional
certifications, documents and information, as applicable, required pursuant to
the following provisions of this Section 2.06(e):

 

(i)            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 to a QIB in accordance with Rule 144A,
then the transferor must deliver a certificate substantially 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; or

 

(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 required by item (3) thereof, if applicable.

 

42

 

(ii)           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 (1) a broker-dealer, (2) a
Person participating in the distribution of the Exchange Notes or (3) a
Person who is an affiliate (as defined in Rule 144) of the Issuers;

 

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

 

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

 

(D)          the
Registrar receives the following:

 

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

 

(2)           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 substantially 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; or

 

(E)           such transfer is effected pursuant to an automatic exchange in
accordance with Section 2.06(j) of this Indenture.

 

(iii)          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 Issuers 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
principal amount of the beneficial interests in the Restricted Global Notes
accepted for exchange in the Exchange Offer. 
Concurrently with the issuance of such Notes, the Trustee shall cause
the aggregate principal amount of the applicable Restricted Global Notes to 

 

43

 

be
reduced accordingly, and the Issuers shall execute and the Trustee shall
authenticate and mail to the Persons designated by the Holders of Definitive
Notes so accepted Unrestricted Definitive Notes in the applicable principal
amount.  Any Notes that remain
outstanding after the consummation of an Exchange Offer, and Exchange Notes
issued in connection with an Exchange Offer, shall be treated as a single class
of securities under this Indenture.

 

(g)           Legends.  The following legends shall
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:

 

(i)           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 therefor)
shall bear the legend in substantially the following form:

 

“THIS NOTE (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 NOTE 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 NOTE
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 NOTE EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE ISSUERS THAT:

 

(A)  SUCH NOTE MAY BE OFFERED, RESOLD,
PLEDGED OR OTHERWISE TRANSFERRED, ONLY:

 

(i)(a)  TO A PERSON WHOM THE SELLER REASONABLY
BELIEVES 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 903 OR 904 UNDER THE SECURITIES ACT, (d) TO AN
INSTITUTIONAL “ACCREDITED INVESTOR” (AS DEFINED IN RULE 501(a)(1),(2),(3) OR
(7) OF THE SECURITIES ACT (AN “INSTITUTIONAL ACCREDITED INVESTOR”)) THAT,
PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING
CERTAIN REPRESENTATIONS AND AGREEMENTS (THE FORM OF WHICH CAN BE OBTAINED
FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL
AMOUNT OF NOTES LESS THAN $100,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE
ISSUERS THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT, OR (e) IN
ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL AND OTHER CERTIFICATIONS
AND DOCUMENTS IF THE ISSUERS SO REQUEST),

 

(ii) TO AN ISSUER, OR

 

44

 

(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 IN EACH CASE SUBJECT TO ANY REQUIREMENT OF LAW THAT THE
DISPOSITION OF THIS NOTE BY THE HOLDER OR BY ANY INVESTOR ACCOUNT OR ACCOUNTS
BE AT ALL TIMES WITHIN ITS OR THEIR CONTROL; AND

 

(B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER
IS REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE NOTE EVIDENCED HEREBY OF
THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE.

 

(B)           Notwithstanding
the foregoing, any Global Note or Definitive Note issued pursuant to
subparagraph (b)(iv), (c)(iii), (c)(iv), (d)(ii), (d)(iii), (e)(ii), (e)(iii), (f) or
(j) of this Section 2.06 (and all Notes issued in exchange therefor
or substitution thereof) shall not bear the Private Placement Legend.

 

(ii)           Global Note Legend.  Each
Global Note shall 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 (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE
REQUIRED PURSUANT TO SECTION 2.06(h) OF THE INDENTURE, (II) THIS
GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF
THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE
FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS
GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR
WRITTEN CONSENT OF THE ISSUERS.  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 ISSUERS OR THEIR AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS 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

 

45

 

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.”

 

(iii)          IAI Note Legend. 
Each Definitive Note held by an Institutional
Accredited Investor shall bear a legend in substantially the following form:

 

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

 

(iv)          OID Legend.  Each Note issued hereunder
that has more than a de minimis
amount of original issue discount for U.S. federal income tax purposes shall
bear a legend in substantially the following form:

 

“THIS
NOTE IS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTION 1271
ET SEQ. OF THE INTERNAL REVENUE CODE.  A
HOLDER MAY OBTAIN THE ISSUE PRICE, AMOUNT OF ORIGINAL ISSUE DISCOUNT,
ISSUE DATE AND YIELD TO MATURITY FOR SUCH NOTES BY SUBMITTING A WRITTEN REQUEST
FOR SUCH INFORMATION TO THE ISSUERS AT THE FOLLOWING ADDRESS: TOPS HOLDING
CORPORATION, PO BOX 1027, BUFFALO, NEW YORK 14240-1027 ATTENTION: CHIEF
FINANCIAL OFFICER.”

 

(v)           Regulation S Temporary Global Note Legend.  Each
temporary Note that is a Global Note issued pursuant to Regulation S shall bear
a legend in substantially the following form:

 

“THIS
GLOBAL NOTE IS A TEMPORARY GLOBAL NOTE FOR PURPOSES OF REGULATION S UNDER
THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED.  NEITHER THIS TEMPORARY GLOBAL NOTE NOR ANY
INTEREST HEREIN MAY BE OFFERED, SOLD OR DELIVERED, EXCEPT AS PERMITTED
UNDER THE INDENTURE REFERRED TO BELOW.

 

NO
BENEFICIAL OWNERS OF THIS TEMPORARY GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE
PAYMENT OF PRINCIPAL OR INTEREST HEREON UNLESS THE REQUIRED CERTIFICATIONS HAVE
BEEN DELIVERED PURSUANT TO THE TERMS OF THE INDENTURE.”

 

(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 canceled in whole and not in
part, each such Global Note shall be returned to or retained and canceled by
the Trustee in accordance with Section 2.11.  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 shall be reduced accordingly and an endorsement
shall be made on such Global Note by the Trustee or by the Depositary at the
direction of 

 

46

 

the
Trustee to reflect such reduction.  If
the beneficial interest is being exchanged for or transferred to a Person who
will take delivery thereof in the form of a beneficial interest in another
Global Note, such other Global Note shall be increased accordingly and an
endorsement shall be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such increase.

 

(i)            General Provisions Relating to Transfers and
Exchanges.

 

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

 

(ii)           No service charge shall 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 Issuers 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 Sections 2.07, 2.10, 3.06, 4.07,
4.09 and 9.05).

 

(iii)          Neither the Registrar nor the Issuers shall be required to register the
transfer of or exchange any Note selected for redemption in whole or in part,
except the unredeemed portion of any Note being redeemed in part.

 

(iv)          All Global Notes and Definitive Notes issued upon any registration of
transfer or exchange of Global Notes or Definitive Notes shall be the valid
obligations of the Issuers, 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.

 

(v)           The Issuers shall not 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 mailing of notice of redemption of Notes
for redemption under Section 3.02 and ending at the close of business on
the day of such mailing, (B) to register the transfer of or to exchange
any Note so 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.

 

(vi)          Prior to due presentment for the registration of a transfer of any
Note, the Trustee, any Agent and the Issuers may deem and treat the Person in
whose name any Note is registered as the absolute owner of such Note for the
purpose of receiving payment of principal of (and premium, if any) and interest
(including Additional Interest, if any) on such Notes and for all other
purposes, and none of the Trustee, any Agent or the Issuers shall be affected
by notice to the contrary.

 

(vii)         Upon surrender for registration of transfer of any Note at the office
or agency of the Issuers designated pursuant to Section 2.03, the Issuers
shall execute, and the Trustee shall authenticate and mail, in the name of the
designated transferee or transferees, one or more replacement Notes of any
authorized denomination or denominations of a like aggregate principal amount.

 

(viii)        At the option of the Holder, Notes may be exchanged for other Notes of
any authorized denomination or denominations of a like aggregate principal
amount upon surrender of the Notes to be exchanged at such office or
agency.  Whenever any Global Notes or
Definitive Notes are so surrendered for exchange, the Issuers shall execute,
and the Trustee shall authenticate and mail, the replacement Global Notes and
Definitive Notes which the Holder making the exchange is entitled to in
accordance with the provisions of Section 2.06.

 

47

 

(ix)           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.

 

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

 

(j)            Automatic Exchange from Restricted Global
Note to Unrestricted Global Note.  At the option of the Issuers
and upon compliance with the following procedures, beneficial interests in a
Restricted Global Note shall be exchanged for beneficial interests in an
Unrestricted Global Note.  In order to
effect such exchange, the Issuers shall provide written notice to the Trustee
instructing the Trustee to (i) direct the Depositary to transfer the
specified amount of the outstanding beneficial interests in a particular
Restricted Global Note to an Unrestricted Global Note and provide the
Depositary with all such information as is necessary for the Depositary to
appropriately credit and debit the relevant Holder accounts and (ii) provide
prior written notice to all Holders of such exchange, which notice must include
the date such exchange is proposed to occur, the CUSIP number of the relevant
Restricted Global Note and the CUSIP number of the Unrestricted Global Note
into which such Holders’ beneficial interests will be exchanged.  As a condition to any such exchange pursuant
to this Section 2.06(j), the Trustee shall be entitled to receive from the
Issuers, and rely upon conclusively without any liability, an Officer’s
Certificate and an Opinion of Counsel, in form and in substance reasonably
satisfactory to the Trustee, to the effect that such transfer of beneficial
interests to the Unrestricted Global Note shall be effected in compliance with
the Securities Act.  The Issuers may
request from Holders such information it reasonably determines is required in
order to be able to deliver such Officer’s Certificate and Opinion of
Counsel.  Upon such exchange of
beneficial interests pursuant to this Section 2.06(j), the Registrar shall
reflect on its books and records the date of such transfer and a decrease and
increase, respectively, in the principal amount of the applicable Restricted
Global Note and the Unrestricted Global Note, respectively, equal to the
principal amount of beneficial interests transferred.  Following any such transfer pursuant to this Section 2.06(j) of
all of the beneficial interests in a Restricted Global Note, such Restricted
Global Note shall be cancelled.

 

Section 2.07                                         Replacement Notes.

 

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

 

Every
replacement Note is a contractual obligation of the Issuers and shall be
entitled to all of the benefits of this Indenture equally and proportionately
with all other Notes duly issued hereunder.

 

48

 

Section 2.08                                         Outstanding Notes.

 

The
Notes outstanding at any time are all the Notes authenticated by the Trustee
except for those canceled 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 hereof, 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 Issuers or an Affiliate of
the Issuers 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 bona fide 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 Issuers, 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 shall be
deemed to be no longer outstanding and shall 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 Issuers, or
by any Affiliate of the Issuers, shall be considered as though not outstanding,
except that for the purposes of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Notes that
a Responsible Officer of the Trustee actually knows are so owned shall be so
disregarded.  Notes so owned which have
been pledged in good faith shall not be disregarded if the pledgee establishes
to the satisfaction of the Trustee the pledgee’s right to deliver any such
direction, waiver or consent with respect to the Notes and that the pledgee is
not the Issuers or any obligor upon the Notes or any Affiliate of the Issuers
or of such other obligor.

 

Section 2.10                                         Temporary Notes.

 

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

 

Holders
and beneficial holders, as the case may be, of temporary Notes shall be
entitled to all of the benefits accorded to Holders, or beneficial holders,
respectively, of Notes under this Indenture.

 

Section 2.11                                         Cancellation.

 

The
Issuers at any time may deliver Notes to the Trustee for cancellation.  The Registrar and Paying Agent shall forward
to the Trustee any Notes surrendered to them for registration of transfer,
exchange or payment.  The Trustee or, at
the direction of the Trustee, the Registrar or the Paying Agent and no one else
shall cancel all Notes surrendered for registration of transfer, exchange,
payment, replacement or cancellation and shall dispose of such cancelled Notes
in accordance with its customary 

 

49

 

procedures
(subject to the record retention requirement of the Exchange Act).  The Issuers 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 Issuers default in a payment of interest on the Notes, they shall 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.  The Issuers shall 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, and at the same time the Issuers
shall deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such defaulted interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such defaulted interest as provided in this Section 2.12.  The Trustee shall fix or cause to be fixed
each such special record date and payment date; provided that no such
special record date shall be less than 10 days prior to the related payment
date for such defaulted interest.  The
Trustee shall promptly notify the Issuers of such special record date.  At least 15 days before the special record
date, the Issuers (or, upon the written request of the Issuers, the Trustee in
the name and at the expense of the Issuers) shall mail or cause to be mailed,
first-class postage prepaid, to each Holder a notice at his or her address as
it appears in the Note Register that states the special record date, the
related payment date and the amount of such interest to be paid.

 

Subject
to the foregoing provisions of this Section 2.12 and for greater
certainty, each Note delivered under this Indenture upon registration of
transfer of or in exchange for or in lieu of any other Note shall carry the
rights to interest accrued and unpaid, and to accrue, which were carried by
such other Note.

 

Section 2.13                                          CUSIP and ISIN Numbers

 

The
Issuers in issuing the Notes may use CUSIP and/or ISIN numbers (if then
generally in use) and, if so, the Trustee shall use CUSIP and/or ISIN numbers
in notices of redemption as a convenience to Holders; provided, that any
such notice may state that no representation is made as to the correctness of
such numbers either as printed on the Notes or as contained in any notice of
redemption and that reliance may be placed only on the other identification
numbers printed on the Notes, and any such redemption shall not be affected by
any defect in or omission of such numbers. 
The Issuers will as promptly as practicable notify the Trustee in
writing of any change in the CUSIP or ISIN numbers.

 

ARTICLE
3

 

REDEMPTION

 

Section 3.01                                         Notices to Trustee.

 

If
the Issuers elect to redeem Notes pursuant to Section 3.07, it shall furnish
to the Trustee, at least 15 Business Days (or such shorter period as is agreed
to by the Trustee) before notice of redemption is required to be mailed or
caused to be mailed to Holders pursuant to Section 3.03 but not more than
60 days before a Redemption Date, an Officer’s Certificate setting forth (i) the
paragraph or subparagraph of such Note and/or Section of this Indenture
pursuant to which the redemption shall occur, (ii) the Redemption Date, (iii) the
principal amount of the Notes to be redeemed and (iv) the redemption
price.

 

50

 

Section 3.02           Selection
of Notes to Be Redeemed or Purchased.

 

If
less than all of the Notes are to be redeemed or purchased in an offer to
purchase at any time, the Trustee shall select the Notes to be redeemed or
purchased (a) if the Notes are listed on any national securities exchange,
in compliance with the requirements of the principal national securities
exchange on which the Notes are listed, (b) or otherwise, on a pro rata basis, by lot or by such other
method as the Trustee shall deem fair and reasonable.  In the event of partial redemption or
purchase by lot, the particular Notes to be redeemed or purchased shall be
selected, unless otherwise provided herein, not less than 30 nor more than 60
days prior to the Redemption Date by the Registrar and Paying Agent from the
outstanding Notes not previously called for redemption or purchase.

 

The
Registrar and Paying Agent shall promptly notify the Issuers in writing of the
Notes selected for redemption or purchase and, in the case of any Note selected
for partial redemption or purchase, the principal amount thereof to be redeemed
or purchased.  Notes redeemed in part
shall be redeemed only in integral multiiples of $1,000, and no Notes of $2,000
or less shall be redeemed in part, except that if all of the Notes of a Holder
are to be redeemed, the entire outstanding amount of Notes held by such Holder,
even if not $2,000 or a multiple of $1,000 in excess thereof, shall be
redeemed.  Except as provided in the
preceding sentence, provisions of this Indenture that apply to Notes called for
redemption also apply to portions of Notes called for redemption.

 

Section 3.03              Notice of Redemption.

 

The
Issuers shall mail or cause to be mailed by first-class mail notices of
redemption at least 30 days but not more than 60 days before the Redemption
Date to each Holder of Notes to be redeemed at such Holder’s registered address
or otherwise in accordance with the procedures of the Depository, except that
redemption notices may be mailed more than 60 days prior to a Redemption Date
if the notice is issued in connection with Article 8 or Article 14.  Notices of redemption may not be conditional,
except that any notice of redemption pursuant to Section 3.07(c) may,
at an Issuer’s discretion, be subject to completion of an Equity Offering.

 

The
notice shall identify the Notes to be redeemed (including CUSIP and/or ISIN
numbers) and shall state:

 

(a)           the Redemption Date;

 

(b)           the
redemption price;

 

(c)           if
any Note is to be redeemed in part only, the portion of the principal amount of
that Note that is to be redeemed and that, after the Redemption Date upon
surrender of such Note, a new Note or Notes in principal amount equal to the
unredeemed portion of the original Note representing the same indebtedness to
the extent not redeemed will be issued in the name of the Holder of the Notes
upon cancellation of the original Note;

 

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

 

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

 

(f)            that,
unless the Issuers defaults in making such redemption payment, interest on
Notes called for redemption ceases to accrue on and after the Redemption Date;

 

51

 

(g)           the
paragraph or subparagraph of the Notes and/or Section of this Indenture
pursuant to which the Notes called for redemption are being redeemed; and

 

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

 

At
the Issuers’ request, the Trustee shall give the notice of redemption in the
name of each Issuer and at their expense; provided that the Issuers
shall have delivered to the Trustee, at least 5 Business Days before notice of
redemption is required to be mailed or caused to be mailed to Holders pursuant
to this Section 3.03 (unless a shorter notice shall be agreed to by the
Trustee), an Officer’s Certificate requesting that the Trustee give such notice
and setting forth the information to be stated in such notice as provided in
the preceding paragraph.

 

Section 3.04              Effect of Notice of Redemption.

 

Once
notice of redemption is mailed in accordance with Section 3.03, Notes
called for redemption become irrevocably due and payable on the Redemption Date
at the redemption price.  The notice, if
mailed in a manner herein provided, shall be conclusively presumed to have been
given, whether or not the Holder receives such notice.  In any case, failure to give such notice by
mail or any defect in the notice to the Holder of any Note designated for
redemption in whole or in part shall not affect the validity of the proceedings
for the redemption of any other Note. 
Subject to Section 3.05, on and after the Redemption Date, interest
ceases to accrue on Notes or portions thereof called for redemption.

 

Section 3.05              Deposit of Redemption or Purchase Price.

 

Prior
to 10:00 a.m. (New York City time) on the redemption or purchase date, the
Issuers shall deposit with the Trustee or with the Paying Agent money
sufficient to pay the redemption or purchase price of and accrued and unpaid
interest (including Additional Interest, if any) on all Notes to be redeemed or
purchased on that date.  The Trustee or
the Paying Agent shall promptly return to the Issuers any money deposited with
the Trustee or the Paying Agent by the Issuers in excess of the amounts
necessary to pay the redemption price of, and accrued and unpaid interest on,
all Notes to be redeemed or purchased.

 

If
the Issuers comply with the provisions of the preceding paragraph, on and after
the redemption or purchase date, interest shall cease to accrue on the Notes or
the portions of Notes called for redemption or purchase.  If a Note is redeemed or purchased on or
after a Record Date but on or prior to the related Interest Payment Date, then
any accrued and unpaid interest to the redemption or purchase date shall be
paid to the Person in whose name such Note was registered at the close of
business on such Record Date.  If any
Note called for redemption or purchase shall not be so paid upon surrender for
redemption or purchase because of the failure of the Issuers to comply with the
preceding paragraph, interest shall be paid on the unpaid principal, from the
redemption or purchase date until such principal is paid, and to the extent
lawful on any interest accrued to the redemption or purchase date not paid on
such unpaid principal, in each case at the rate provided in the Notes.

 

Section 3.06              Notes Redeemed or Purchased in Part.

 

Upon
surrender of a Note that is redeemed or purchased in part, the Issuers shall
issue and the Trustee shall authenticate for the Holder at the expense of the
Issuers a new Note equal in principal amount to the unredeemed or unpurchased
portion of the Note surrendered representing the same indebtedness to the
extent not redeemed or purchased; provided that each new Note will be in
a principal amount of $2,000 or an integral multiple of $1,000 in excess
thereof.  It is understood that,
notwithstanding 

 

52

 

anything
in this Indenture to the contrary, only an Authentication Order and not an
Opinion of Counsel or Officer’s Certificate is required for the Trustee to
authenticate such new Note.

 

Section 3.07              Optional Redemption.

 

(a)           At any time prior to October 15, 2012,
the Issuers may redeem all or a portion of the Notes, on not less than 30 nor
more than 60 days’ prior notice, in amounts of $1,000 or an integral multiple
thereof, at a price equal to 100% of the aggregate principal amount of the
Notes to be redeemed plus the Applicable Premium as of, and accrued and unpaid
interest, if any, to (but not including) the Redemption Date, subject to Section 3.05.

 

(b)           On or after October 15, 2012, the Issuers may redeem all or a
portion of the Notes, on not less than 30 nor more than 60 days’ prior notice,
in amounts of $1,000 or an integral multiple thereof, at the following
redemption prices (expressed as percentages of the principal amount), together
with accrued and unpaid interest, if any, to (but not including) the Redemption
Date subject to Section 3.05, if redeemed during the 12-month period
beginning October 15 of the years indicated below:

 

	
  Year

  	
   

  	
  Redemption

  Price

  	
   

  
	
  2012

  	
   

  	
  105.063

  	
  %

  
	
  2013

  	
   

  	
  102.531

  	
  %

  
	
  2014 and thereafter

  	
   

  	
  100.000

  	
  %

  
	
   

  	
   

  	
   

  	
   

  

 

(c)           In addition, at any time prior to October 15,
2012, the Issuers, at their option, may use the net proceeds of one or more
Equity Offerings to redeem up to an aggregate of 35% of the aggregate principal
amount of Notes issued under this Indenture (including any Additional Notes) at
a redemption price equal to 110.125% of the aggregate principal amount of the
Notes redeemed, plus accrued and unpaid interest, if any, to (but not
including) the Redemption Date subject to Section 3.05; provided
that at least 65% of the aggregate principal amount of Notes (calculated after
giving effect to the issuance of any Additional Notes) must remain outstanding
immediately after the occurrence of such redemption and such redemption is
completed within 120 days of the closing of the Equity Offering.

 

(d)           In addition to the Issuers’ rights to redeem the Notes as set forth
above, the Issuers may purchase Notes in open-market transactions, tender
offers or otherwise.

 

Section 3.08              Mandatory Redemption.

 

The
Issuers will not be required to make any mandatory redemption or sinking fund
payments with respect to the Notes.

 

ARTICLE
4

 

COVENANTS

 

Section 4.01              Payment of Principal, Premium and Interest.

 

The
Issuers shall duly and punctually pay the principal of, premium, if any, and
interest on the Notes in accordance with the terms of the Notes and this
Indenture.

 

53

 

Section 4.02              Corporate Existence.

 

Subject
to Section 5.01, the Company shall do or cause to be done all things necessary
to preserve and keep in full force and effect the existence (corporate or
otherwise) and related rights and franchises (charter and statutory) of the
Company and each Restricted Subsidiary; provided, however, that
the Company shall not be required to preserve any such right or franchise or
the existence (corporate or otherwise) of any such Restricted Subsidiary (other
than Tops Markets) if the Board of Directors of the Company shall determine
that the preservation thereof is no longer necessary or desirable in the
conduct of the business of the Company and its Restricted Subsidiaries as a
whole and that the loss thereof could not reasonably be expected to have a
material adverse effect on the ability of the Issuers to perform their
obligations hereunder; and provided, further, however,
that the foregoing shall not prohibit a sale, transfer or conveyance of a
Restricted Subsidiary or any of its assets in compliance with the terms of this
Indenture.

 

Section 4.03              Limitation on Indebtedness.

 

(a)           The Company will not, and will not cause or
permit any of its Restricted Subsidiaries to, create, issue, incur, assume,
guarantee or otherwise in any manner become directly or indirectly liable for,
contingently or otherwise (collectively, “incur”), any Indebtedness
(including any Acquired Indebtedness), unless such Indebtedness is incurred by
an Issuer or any Guarantor or constitutes Acquired Indebtedness of the Company
or a Restricted Subsidiary and, in each case, the Company’s Consolidated Fixed
Charge Coverage Ratio for the most recent four full fiscal quarters for which
internal consolidated financial statements are available immediately preceding
the incurrence of such Indebtedness taken as one period is at least equal to or
greater than 2.0:1.0.

 

(b)           Notwithstanding Section 4.03(a), the Company and the Restricted
Subsidiaries may incur the following (collectively, the “Permitted
Indebtedness”):

 

(1)           Indebtedness
of the Company or any Restricted Subsidiary under any Credit Facility in an
aggregate principal amount at any one time outstanding not to exceed the
greater of:

 

(a)           $85.0 million, less, without duplication, (i) any permanent
repayment thereof or permanent reduction in commitments thereunder from the
proceeds of one or more Asset Sales which are used to repay a Credit Facility
pursuant to Section 4.07(b)(i) and (ii) the amount of
Indebtedness outstanding at the date of determination pursuant to Section 4.03(b)(8);
or

 

(b)           at
the time of any incurrence (i) 85% of accounts receivable of the Company
and its Restricted Subsidiaries (excluding any Receivables and Related Assets
sold, conveyed or otherwise transferred to a Securitization Entity in
connection with a Qualified Securitization Transaction) as of the end of the
most recently ended fiscal quarter for which internal consolidated financial
statements are available, plus (ii) 60% of inventory of the Company and
its Restricted Subsidiaries as of the end of the most recently ended fiscal
quarter for which internal consolidated financial statements are available, in
each case on a pro forma basis to give
effect to any acquisition after such balance sheet date and on or prior to such
date of incurrence;

 

(2)           Indebtedness
pursuant to (A) the Notes (excluding any Additional Notes) and any
Guarantee of the Notes, and (B) any Exchange Notes issued in exchange for
the Notes pursuant to the Registration Rights Agreement and any Guarantee of
the Exchange Notes;

 

54

 

(3)           Indebtedness
of the Company or any Restricted Subsidiary outstanding on the Issue Date
(including, without limitation, under the Issuers’ existing lease with EDS, but
excluding Indebtedness referred to in Section 4.03(b)(1) or (b)(2));

 

(4)           Indebtedness
of the Company or a Restricted Subsidiary owing to the Company or a Restricted
Subsidiary; provided that (i) any Indebtedness of the Issuers or a
Guarantor owing to a Restricted Subsidiary that is not an Issuer or a Guarantor
incurred after the Issue Date is unsecured and is subordinated in right of
payment to the Notes or the Guarantee of such Guarantor, as the case may be,
and (ii) any disposition or transfer of any such Indebtedness to a Person
(other than to an Issuer or a Restricted Subsidiary or any pledge of such
Indebtedness constituting a Permitted Lien) shall be deemed to be an incurrence
of such Indebtedness not permitted by this clause (4);

 

(5)           guarantees
by the Company or any Restricted Subsidiary of Indebtedness of the Company or
any of its Restricted Subsidiaries (other than guarantees by an Issuer or any
Guarantor of Acquired Indebtedness incurred in reliance on Section 4.03(a) of
any Person that does not become a Guarantor that is acquired by the Company or
any Restricted Subsidiary other than guarantees of such Acquired Indebtedness
by any other Person so acquired in connection therewith) which Indebtedness is
permitted to be incurred under this Section 4.03;

 

(6)           Indebtedness
of the Company or any Restricted Subsidiary pursuant to any:

 

(a)           Interest Rate Agreements;

 

(b)           Commodity
Price Protection Agreements; and

 

(c)           Currency
Agreements;

 

(7)           Indebtedness
of the Company or any Restricted Subsidiary represented by Capital Lease
Obligations or Purchase Money Obligations or other Indebtedness in connection
with the acquisition or development of real or personal, movable or immovable,
property, in each case incurred or assumed for the purpose of financing or
refinancing all or any part of the purchase price or cost of construction or
improvement of property used in the business of the Company or such Restricted
Subsidiary, in an aggregate principal amount not to exceed 10% of Consolidated
Net Tangible Assets;

 

(8)           Indebtedness
incurred by a Securitization Entity in connection with a Qualified
Securitization Transaction that is Non-recourse Indebtedness with respect to
the Company and its Restricted Subsidiaries (except for Standard Securitization
Undertakings);

 

(9)           Indebtedness
of the Company or any of its Restricted Subsidiaries (x) in connection
with surety, performance, appeal or similar bonds, completion guarantees, or
similar instruments entered into in the ordinary course of business or from
letters of credit or other obligations in respect of property, casualty or
liability insurance, self-insurance, workers’ compensation obligations or similar
arrangements or (y) consisting of the financing of insurance premiums or
take-or-pay obligations contained in supply arrangements, in each case incurred
in the ordinary course of business;

 

(10)         Indebtedness
of the Company or any of its Restricted Subsidiaries arising from the honoring
by a bank or other financial institution of a check, draft or similar
instrument inadvertently (except in the case of daylight overdrafts such amount
need not be inadvertent) drawn

 

55

 

against
insufficient funds in the ordinary course of business; provided, however,
that such Indebtedness is extinguished within five Business Days of receipt by
the Company or any Restricted Subsidiary of notice of such insufficient funds;

 

(11)         Indebtedness
of the Company or any Restricted Subsidiary arising from agreements for
indemnification or purchase price adjustment obligations or similar
obligations, or from guarantees or letters of credit, surety bonds or
performance bonds securing any obligation of the Company or a Restricted
Subsidiary pursuant to such an agreement, in each case, incurred or assumed in
connection with the acquisition or disposition of any business, assets or
properties;

 

(12)         any
renewals, extensions, substitutions, refundings, refinancing or replacements
(collectively, a “refinancing”) of any Indebtedness incurred pursuant to
Section 4.03(a) and Section 4.03(b)(2), (b)(3) and (b)(15),
including any successive refinancing so long as Indebtedness of the Issuers or
a Guarantor may only be refinanced with Indebtedness of the Issuers or a
Guarantor and the aggregate principal amount of Indebtedness refinanced is not
increased by such refinancing except by an amount equal to the lesser of (a) the
stated amount of any premium or other payment contractually required to be paid
in connection with such a refinancing pursuant to the terms of the Indebtedness
being refinanced or (b) the amount of premium or other payment actually
paid at such time to refinance the Indebtedness, plus, in either case, the
amount of accrued interest, fees and expenses of the Issuers incurred in
connection with such refinancing and (1) in the case of any refinancing of
Indebtedness that is Subordinated Indebtedness, such new Indebtedness is made
subordinated to the Notes at least to the same extent as the Indebtedness being
refinanced and (2) in the case of Pari Passu Indebtedness or Subordinated
Indebtedness, as the case may be, such refinancing does not reduce the Average
Life to Stated Maturity of such Indebtedness;

 

(13)         Indebtedness
of the Company or any of its Restricted Subsidiaries supported by a letter of
credit outstanding in reliance on Section 4.03(b)(1) in a principal
amount not in excess of the stated amount of such letter of credit;

 

(14)         Indebtedness
of the Company and any Restricted Subsidiary to the extent the proceeds of such
Indebtedness are deposited and used to consummate a Legal Defeasance or
Covenant Defeasance pursuant to Article 8 or to discharge the Indenture
pursuant to Article 14;

 

(15)         Indebtedness
of the Company or any Restricted Subsidiaries to officers, directors, employees
and consultants of the Company and its Restricted Subsidiaries, their
respective estates, spouses or former spouses, in each case to finance the
purchase or redemption of Capital Stock of the Company to the extent permitted
by Section 4.04(b)(9) upon termination, disability or death;

 

(16)         Indebtedness
in respect of Franchise Deposits in an aggregate principal amount at any time
outstanding not to exceed the sum of (a) $5.0 million plus (b) the
amount of any Franchise Deposits cash collateralized plus (c) $1.0 million
for each franchise store of the Company or its Restricted Subsidiaries that
becomes a franchise store after the Issue Date; and

 

(17)         Indebtedness
of the Company or any Restricted Subsidiary in addition to that described in Section 4.03(b)(1) through
(16), and any refinancing of such Indebtedness, so long as the aggregate
principal amount of all such Indebtedness shall not exceed $30.0 million
outstanding at any one time.

 

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

 

56

 

(1)           In
the event that an item of Indebtedness meets the criteria of more than one of
the categories of Permitted Indebtedness, or is permitted to be incurred
pursuant to Section 4.03(a), the Company will be permitted to classify all
or a portion of such item of Indebtedness on the date of its incurrence, or
subject to Section 4.03(c)(2), later reclassify all or a portion of such
item of Indebtedness, in any manner that complies with this Section 4.03;

 

(2)           Indebtedness
under the Credit Agreement which is in existence or available on or prior to
the Issue Date will be deemed to have been incurred on such date under Section 4.03(b)(1),
and the Company will not be permitted to reclassify any portion of such
Indebtedness thereafter;

 

(3)           Indebtedness
permitted by this covenant need not be permitted solely by reference to one
provision permitting such Indebtedness but may be permitted in part by one such
provision and in part by one or more other provisions of this Section 4.03
permitting such Indebtedness;

 

(4)           Accrual
of interest, accretion or amortization of original issue discount and the
payment of interest on any Indebtedness in the form of additional Indebtedness
with the same terms, and the payment of dividends on any Redeemable Capital
Stock or Preferred Stock in the form of additional shares of the same class of
Redeemable Capital Stock or Preferred Stock will not be deemed to be an
incurrence of Indebtedness for purposes of this Section 4.03; provided,
in each such case, that the amount thereof as accrued is included in the
Consolidated Fixed Charge Coverage Ratio of the Company;

 

(5)           With
respect to any dollar denominated restriction on the incurrence of Indebtedness
denominated in a foreign currency, the dollar equivalent principal amount of
such Indebtedness incurred pursuant thereto shall be calculated based on the
relevant currency exchange rate in effect on the date that such Indebtedness
was incurred;

 

(6)           The
outstanding principal amount of any particular Indebtedness shall be counted
only once and any obligations arising under any guarantee, Lien, letter of
credit or similar instrument supporting such Indebtedness shall not be double
counted; and

 

(7)           The
amount of Indebtedness issued at a price less than the amount of the liability
thereof shall be determined in accordance with GAAP.

 

Section 4.04              Limitation on Restricted Payments.

 

(a)           The Company will not, and will not cause or
permit any Restricted Subsidiary to, directly or indirectly (each a “Restricted
Payment”):

 

(i)            declare or pay any dividend on, or make any
distribution to holders of, any shares of the Company’s Capital Stock (other
than dividends or distributions payable solely in shares of its Qualified
Capital Stock or in options, warrants or other rights to acquire shares of such
Qualified Capital Stock);

 

(ii)           purchase,
redeem, defease or otherwise acquire or retire for value, directly or
indirectly, shares of the Company’s Capital Stock;

 

(iii)          make
any principal payment on, or repurchase, redeem, defease, retire or otherwise
acquire for value, prior to any scheduled principal payment, sinking fund
payment or maturity, 

 

57

 

any
Subordinated Indebtedness (other than (x) Indebtedness permitted under Section 4.03(b)(4) or
(y) the purchase, repurchase or other acquisition of such Subordinated
Indebtedness purchased in anticipation of satisfying a sinking fund obligation,
principal installment or final maturity, in each case due within one year of
the date of purchase, repurchase or acquisition);

 

(iv)          declare
or pay any dividend or distribution on any Capital Stock of any Restricted
Subsidiary to any Person (other than (a) dividends or distributions
payable solely in shares of Capital Stock of such Restricted Subsidiary or in
options, warrants or other rights to acquire shares of such Capital Stock, (b) to
the Company or any of its Restricted Subsidiaries or (c) dividends or
distributions made by a Restricted Subsidiary on a pro rata basis to all stockholders of such Restricted Subsidiary);
or

 

(v)           make
any Investment (other than any Permitted Investments)

 

(the
amount of any such Restricted Payment, if other than cash, shall be the Fair
Market Value of the assets proposed to be transferred), unless

 

(1)           at
the time of and after giving effect to such proposed Restricted Payment, no
Default or Event of Default shall have occurred and be continuing;

 

(2)           at
the time of and after giving effect to such Restricted Payment, the Company
could incur $1.00 of additional Indebtedness (other than Permitted
Indebtedness) under Section 4.03(a); and

 

(3)           after
giving effect to the proposed Restricted Payment, the aggregate amount of all
such Restricted Payments (other than Permitted Payments described in Section 4.04(b)(2) through
(10) and Section 4.04(b)(12) through (16)) declared (with respect to
dividends) or made after the Issue Date does not exceed the sum of:

 

(A)          50% of the aggregate Consolidated Net Income of the Company accrued on
a cumulative basis during the period beginning on July 12, 2009 and ending
on the last day of the Company’s last fiscal quarter ending prior to the date
of the Restricted Payment for which internal financial statements of the
Company are available (or, if such aggregate cumulative Consolidated Net Income
shall be a loss, minus 100% of such loss);

 

(B)           100%
of the aggregate Net Cash Proceeds and the Fair Market Value of property received
after the Issue Date by the Company either (1) as capital contributions or
(2) from the issuance or sale (other than to any of its Subsidiaries) of
Qualified Capital Stock of the Company or any options, warrants or rights to
purchase such Qualified Capital Stock of the Company (except, in each case, to
the extent such proceeds are used to purchase, redeem or otherwise retire
Capital Stock or Subordinated Indebtedness as set forth in Section 4.04(b)(2) or
(b)(3) and excluding the Net Cash Proceeds from the issuance of Qualified
Capital Stock financed, directly or indirectly, using funds borrowed from the
Company or any Subsidiary until and to the extent such borrowing is repaid);

 

(C)           100%
of the aggregate Net Cash Proceeds received after the Issue Date by the Company
(other than from any of its Subsidiaries) upon the exercise of any options,
warrants or rights to purchase Qualified Capital Stock of the Company
(excluding the Net Cash Proceeds from the exercise of any options, warrants or
rights to purchase Qualified Capital Stock financed, directly or indirectly,
using funds borrowed from the Company or any Subsidiary until and to the extent
such borrowing is repaid);

 

58

 

(D)          the amount of reductions in the consolidated
Indebtedness of the Company and its Restricted Subsidiaries upon conversion or
exchange of any such Indebtedness into or for Qualified Capital Stock of the
Company;

 

(E)           100% of the aggregate amount received in cash and
the Fair Market Value of property received by the Company or a Restricted
Subsidiary by means of (i) the sale or other disposition (other than to
the Company or a Restricted Subsidiary) of Investments (other than Permitted
Investments or to the extent such Investment was a Restricted Payment made in Section 4.04(b)(16)
of the next succeeding paragraph) made by the Company or its Restricted
Subsidiaries and repurchases and redemptions of such Investments from the
Company or its Restricted Subsidiaries and repayments of loans or advances, and
releases of guarantees, which constitute Investments (other than Permitted
Investments or to the extent such Investment was a Restricted Payment made in Section 4.04(b)(16)
of the next succeeding paragraph) by the Company or its Restricted
Subsidiaries, in each case after the Issue Date; or (ii) the sale or other
disposition (other than to the Company or a Restricted Subsidiary) of the stock
of an Unrestricted Subsidiary (other than to the extent the Investment in such
Unrestricted Subsidiary was made by the Company or a Restricted Subsidiary
pursuant to Section 4.04(b)(16) of the next succeeding paragraph or to the
extent such Investment constituted a Permitted Investment) or a dividend or
distribution from an Unrestricted Subsidiary after the Issue Date;

 

(F)           in the case of the redesignation of an Unrestricted
Subsidiary as a Restricted Subsidiary after the Issue Date, the Fair Market
Value of the Investment in such Unrestricted Subsidiary at the time of the redesignation
of such Unrestricted Subsidiary as a Restricted Subsidiary, other than an
Unrestricted Subsidiary to the extent the Investment in such Unrestricted
Subsidiary constituted a Permitted Investment; and

 

(G)           any amount which previously qualified as a
Restricted Payment that was not a Permitted Payment on account of any guarantee
entered into by the Company or any Restricted Subsidiary; provided that
such guarantee has not been called upon and the obligation arising under such
guarantee no longer exists.

 

(b)           The provisions
of Section 4.04(a) shall not prohibit the following Restricted
Payments (each a “Permitted Payment”):

 

(1)           the payment of
any dividend or redemption of any Capital Stock or Subordinated Indebtedness
within 60 days after the date of declaration thereof or call for redemption, if
at such date of declaration or call for redemption such payment or redemption
was permitted by the provisions of Section 4.04(a) (the declaration
of such payment will be deemed a Restricted Payment under Section 4.04(a) as
of the date of declaration, and the payment itself will be deemed to have been
paid on such date of declaration and will not also be deemed a Restricted
Payment under Section 4.04(a)) (it being understood that any Restricted
Payment made in reliance on this clause (1) shall reduce the amount
available for Restricted Payments pursuant to Section 4.04(a)(3) above
only once);

 

(2)           Restricted
Payments made in exchange for (including any such exchange pursuant to the
exercise of a conversion right or privilege in connection with which cash is
paid in lieu of the issuance of fractional shares or scrip), or out of the Net
Cash Proceeds of a substantially concurrent issuance and sale for cash (other
than to a Subsidiary) of, Qualified Capital Stock of the Company; provided
that the Net Cash Proceeds from the issuance of such shares of Qualified
Capital Stock are excluded from Section 4.04(a)(3)(B);

 

59

 

(3)           the repurchase,
redemption, defeasance, retirement or acquisition for value or payment of
principal of any Subordinated Indebtedness in exchange for, or out of the Net
Cash Proceeds of, a substantially concurrent issuance and sale for cash (other
than to any Subsidiary) of any Qualified Capital Stock of the Company; provided
that the Net Cash Proceeds from the issuance of such shares of Qualified
Capital Stock are excluded from Section 4.04(a)(3)(B);

 

(4)           the repurchase,
redemption, defeasance, retirement, or acquisition for value or payment of principal
of any Subordinated Indebtedness (other than Redeemable Capital Stock) (a “refinancing”)
in exchange for, or out of the Net Cash Proceeds of, the substantially
concurrent issuance of new Subordinated Indebtedness of the Company; provided
that any such new Subordinated Indebtedness:

 

(a)           shall be in a principal
amount that does not exceed the principal amount so refinanced, plus the amount
of premium or other payment reasonably determined as necessary to refinance the
Indebtedness, plus the amount of accrued interest, fees and expenses of the
Company incurred in connection with such refinancing;

 

(b)           has an Average Life to Stated Maturity equal to or
greater than the remaining Average Life to Stated Maturity of the Subordinated
Indebtedness being refinanced;

 

(c)           has a Stated Maturity for its final scheduled
principal payment no earlier than the Stated Maturity for the final scheduled
principal payment of the Subordinated Indebtedness being refinanced; and

 

(d)           is expressly subordinated in right of payment to the
Notes at least to the same extent as the Subordinated Indebtedness to be
refinanced;

 

(5)           the repurchase
of Capital Stock deemed to occur upon (a) exercise of stock options to the
extent that shares of such Capital Stock represent a portion of the exercise
price of such options and (b) the withholding of a portion of the Capital
Stock granted or awarded to an employee to pay taxes associated therewith;

 

(6)           the payment of
cash in lieu of the issuance of fractional shares or scrip in connection with
the exercise of warrants, options or other securities convertible into or
exercisable for Capital Stock of the Company;

 

(7)           the repurchase,
redemption, or other acquisition or retirement for value of Redeemable Capital
Stock of the Company or a Guarantor made by exchange for, or out of the
proceeds of the sale of, Redeemable Capital Stock;

 

(8)           so long as no
Default or Event of Default exists or would occur, payments or distributions to
stockholders pursuant to appraisal rights required under applicable law in
connection with any consolidation, merger or transfer of assets, that complies
with Section 5.01;

 

(9)           the repurchase,
retirement or other acquisition or retirement for value of Qualified Capital
Stock of the Company, or a Restricted Payment to pay for the repurchase,
retirement or other acquisition or retirement for value of Capital Stock of any
of its direct or indirect parent companies, held by any future, present or
former employee, director or consultant of the Company, any of its Subsidiaries
or any of their respective direct or indirect parent companies pursuant to any
management equity plan or stock option plan or any other management or employee

 

60

 

benefit
plan or agreement; provided, however, that the aggregate
Restricted Payments made under this clause (9) do not exceed in any
calendar year $2.5 million (with unused amounts in any calendar year being
carried over to the next two succeeding calendar years); provided  further
that such amount in any calendar year may be increased by an amount not to
exceed:

 

(a)           the cash proceeds from the
sale of Qualified Capital Stock of the Company and, to the extent contributed
to the capital of the Company, Capital Stock of any of the direct or indirect
parent companies of the Company, in each case to members of management,
directors or consultants of the Company, any of its Subsidiaries or any of
their respective direct or indirect parent companies that occurs after the
Issue Date, to the extent the Net Cash Proceeds from the sale of such Capital
Stock have not otherwise been applied to the payment of Restricted Payments by
virtue of Section 4.04(a)(3); plus

 

(b)           the cash proceeds of key man life insurance policies
received by the Company or any of its Restricted Subsidiaries after the Issue
Date; less

 

(c)           the amount of any Restricted Payments previously
made with the cash proceeds described in clauses (a) or (b) of this
clause (9);

 

and
provided  further that cancellation of Indebtedness owing to the
Company from members of management of the Company and representing non-cash
loans made by the Company to permit members of management to acquire Capital
Stock of the Company, any of its Subsidiaries or its direct or indirect parent
companies in connection with a repurchase of Capital Stock of the Company or
any of the Company’s direct or indirect parent companies will not be deemed to
constitute a Restricted Payment for purposes of this covenant;

 

(10)         payments of
dividends on Redeemable Capital Stock of the Issuers or any Restricted
Subsidiary or Preferred Stock of a Restricted Subsidiary issued in accordance
with Section 4.03;

 

(11)         the declaration
and payment of dividends on the Company’s common stock (or a Restricted Payment
to any direct or indirect parent entity to fund a payment of dividends on such
entity’s common stock), following the first public Equity Offering of such
common stock after the Issue Date, of up to 6% per annum of the Net Cash
Proceeds received by (or, in the case of a Restricted Payment to a direct or
indirect parent entity, contributed to the capital of) the Company in or from
any such public Equity Offering;

 

(12)         Restricted
Payments contemplated by this offering memorandum in connection with the
Transactions;

 

(13)         the repurchase,
redemption or other acquisition or retirement for value of any Subordinated
Indebtedness following an Asset Sale or Change of Control pursuant to
provisions similar to those set forth in Section 4.07 or Section 4.09
at a purchase price not to exceed 100% of the principal amount thereof (or 101%
in the case of an offer as a result of a Change of Control) plus accrued and
unpaid interest to the date of purchase; provided that the Company has
previously made a Change of Control Offer or Asset Sale Offer, as the case may
be, with respect thereto and all Notes tendered by holders in connection
therewith have been repurchased to the extent required by Section 4.07 or Section 4.09,
as applicable;

 

(14)         the declaration
and payment of dividends or the payment of other distributions by the Company
or a Restricted Subsidiary to, or the making of loans or advances to, any of
their respective 

 

61

 

direct
or indirect parents in amounts required for any direct or indirect parent companies
to pay, in each case without duplication,

 

(a)           franchise taxes and other
fees, taxes and expenses of any corporate parent required to maintain its
corporate existence;

 

(b)           for any taxable year in which the Company is a
member of any consolidated, combined or similar income tax group of which any
corporate parent is the common parent (a “Tax Group”), federal, foreign,
state or local income taxes (as applicable) of the Tax Group that are
attributable to the income of the Company and/or any of its Restricted
Subsidiaries; provided that, in each taxable year, the amount of such
payments (when aggregated with the amount of such taxes paid directly by the
Company and its Restricted Subsidiaries) shall not exceed the amount that the
Company and its Restricted Subsidiaries would have been required to pay in
respect of such federal, foreign, state or local income taxes on a standalone
basis;

 

(c)           customary salary, bonus and other benefits payable
to officers and employees of any direct or indirect parent company of the
Company to the extent such salaries, bonuses and other benefits are
attributable to the ownership or operation of the Company and its Restricted
Subsidiaries;

 

(d)           general corporate operating and overhead costs and
expenses of any direct or indirect parent company of the Company to the extent
such costs and expenses are attributable to the ownership or operation of the
Company and its Restricted Subsidiaries;

 

(e)           amounts payable to the Sponsors pursuant to the
Sponsor Management Agreement as in effect on the Closing Date;

 

(f)            fees and expenses related to any equity or debt
offering of such parent entity (whether or not successful); and

 

(g)           cash payments in lieu of issuing fractional shares
in connection with the exercise of warrants, options or other securities
convertible into or exchangeable for Capital Stock of any direct or indirect
parent of the Company;

 

(15)         distributions
or payments of Securitization Fees and purchases of Receivables and Related
Assets pursuant to a Securitization Repurchase Obligation in connection with a
Qualified Securitization Transaction; and

 

(16)         other
Restricted Payments in an amount not to exceed $10.0 million.

 

For
clarity purposes, all payments made pursuant to Section 4.04(b)(2) through
(10) and Section 4.04(b)(12) through (16) shall not reduce the amount
that would otherwise be available for Restricted Payments under Section 4.04(a).

 

Section 4.05                                          Limitation on
Transactions with Affiliates.

 

The
Company will not, and will not cause or permit any of its Restricted
Subsidiaries to, directly or indirectly, enter into any transaction or series
of related transactions (including, without limitation, the sale, purchase,
exchange or lease of assets, property or services) with or for the benefit of
any 

 

62

 

Affiliate
of the Company (other than the Company or a Restricted Subsidiary, including
any Person that becomes a Restricted Subsidiary as a result of such
transaction), unless:

 

(1)           such
transaction or series of related transactions is on terms that are not
materially less favorable to the Company or such Restricted Subsidiary, as the
case may be, than those that would be available in a comparable transaction in
arm’s-length dealings with an unrelated third party;

 

(2)           with respect to
any transaction or series of related transactions involving aggregate value in
excess of $5.0 million, the Company delivers an Officer’s Certificate to the
Trustee certifying that such transaction or series of related transactions
complies with clause (1) above; and

 

(3)           with respect to
any transaction or series of related transactions involving aggregate value in
excess of $15.0 million, either

 

(a)           such transaction or series
of related transactions has been approved by a majority of the Disinterested
Directors of the Board of Directors of the Company, or in the event there is
only one Disinterested Director, by such Disinterested Director, or

 

(b)           the Company delivers to the Trustee a written
opinion of an investment banking firm of national standing or other recognized
independent expert stating that the transaction or series of related
transactions is fair to the Company or such Restricted Subsidiary from a
financial point of view; provided, however, that this provision
shall not apply to:

 

(i)           directors’ fees, consulting fees, employee salaries,
bonuses or employment agreements, incentive arrangements, compensation or
employee benefit arrangements with any officer, director or employee of the
Company or a Subsidiary of the Company, including under any stock option or
stock incentive plans, customary indemnification arrangements with officers,
directors or employees of the Company or a Subsidiary of the Company, in each
case entered into in the ordinary course of business;

 

(ii)           any Restricted
Payments made in compliance with Section 4.04 or any Permitted Investment
in a Person that is an Affiliate solely as a result of the Company’s and its
Restricted Subsidiaries’ Investments in such Person;

 

(iii)          any Qualified
Securitization Transaction;

 

(iv)          any issuance or
sale of Qualified Capital Stock of the Company to Affiliates;

 

(v)           transactions
among the Company and/or any Restricted Subsidiary and/or any entity that is an
Affiliate solely as a result of any Investment by the Company and/or such Restricted
Subsidiary in such entity;

 

(vi)          loans or
advances to employees or consultants of the Company in the ordinary course of
business for bona fide business purposes of the Company and its Restricted
Subsidiaries (including, without limitation, travel, entertainment and moving
expenses) made in compliance with applicable law;

 

63

 

(vii)         any
transactions undertaken pursuant to any agreements (including, without
limitation, pursuant to the Sponsor Management Agreement) in existence on the
Issue Date and described in this offering memorandum and any renewals,
replacements or modifications of such contracts (pursuant to new transactions
or otherwise) on terms not materially less favorable when taken as a whole to
the holders of the Notes than those in effect on the Issue Date;

 

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

 

(ix)           the
Transactions;

 

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

 

(xi)           payments by the
Company or any of its Restricted Subsidiaries to any of the Sponsors made for
any financial advisory, financing, underwriting or placement services or in
respect of other investment banking activities, including, without limitation,
in connection with acquisitions or divestitures which payments are approved in
good faith by Disinterested Directors constituting a majority of such
Disinterested Directors;

 

(xii)          payments or
loans (or cancellation of loans) to employees or consultants of the Company,
any of its direct or indirect parent companies or any Restricted Subsidiary and
employment agreements, severance arrangements, stock option plans and other
similar arrangements with such employees or consultants which, in each case,
are approved by a majority of the Board of Directors of the Company in good
faith; and

 

(xiii)         Investments by
the Sponsors in debt securities of the Company or any of its Restricted
Subsidiaries so long as (x) the Investment is being offered generally to  other investors
on the same or more favorable terms and (y) the Investment constitutes
less than 5.0% of the proposed or outstanding issue amount of such class of
securities.

 

Section 4.06                                          Limitation on
Liens.

 

The
Company will not, and will not permit any of its Restricted Subsidiaries,
directly or indirectly, to enter into, create, incur, assume or suffer to exist
any Liens of any kind, on or with respect to any of its properties other than
Permitted Liens.  Additionally, neither
Issuer will, and will not permit any Guarantor, to grant or suffer to exist any
Lien (other than pursuant to clause (a), (d), (g), (j) or (p) of the
definition of “Permitted Liens”) on any leasehold interest (as lessee) in real
property of an Issuer or any Guarantor for purposes of securing any
Indebtedness for money borrowed unless the Issuers shall 

 

64

 

have
granted a Lien on such leasehold interest to the Collateral Agent for the
benefit of the holders of Notes and the holders of Permitted Additional Pari
Passu Obligations ranking prior to any other Liens.

 

Section 4.07                                          Limitation on
Sale of Assets.

 

(a)           The Company
will not, and will not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly, consummate an Asset Sale unless (1) at least 75%
of the consideration from such Asset Sale is received in cash, Cash Equivalents
or Replacement Assets, (2) the Company or such Restricted Subsidiary
receives consideration at the time of such Asset Sale at least equal to the
Fair Market Value of the shares or assets subject to such Asset Sale, and (3) if
such Asset Sale involves the disposition of Notes Priority Collateral or, after
the Discharge of ABL Obligations, the disposition of ABL Priority Collateral,
the Net Cash Proceeds thereof shall be paid directly by the purchaser of the
Collateral to the Collateral Agent for deposit into the Collateral Account
pending application in accordance with the provisions described below, and, if
any property other than cash or Cash Equivalents is included in such Net Cash
Proceeds, substantially all of such property shall be made subject to the Note
Liens.

 

For
purposes of Section 4.07(a)(1) above, the following will be deemed to
be cash:

 

(A)          the amount of
any liabilities (other than Subordinated Indebtedness) of the Company or any
Restricted Subsidiary that is actually assumed by the transferee in such Asset
Sale and from which the Company and the Restricted Subsidiaries are fully and
unconditionally released (excluding any liabilities that are incurred in
connection with or in anticipation of such Asset Sale and contingent liabilities);

 

(B)           the amount of
any notes, securities or other similar obligations received by the Company or
any Restricted Subsidiary from such transferee that is converted, sold or
exchanged within 180 days of the related Asset Sale by the Company or the Restricted
Subsidiaries into cash in an amount equal to the Net Cash Proceeds realized
upon such conversion, sale or exchange; and

 

(C)           the amount of
any Designated Non-cash Consideration received by the Company or any of its
Restricted Subsidiaries in the Asset Sale; provided that the aggregate
of such Designated Non-cash Consideration received in connection with Asset
Sales (and still held) shall not exceed the greater of (x) $5.0 million
and (y) 1.5% of Consolidated Net Tangible Assets at any one time (with the
Fair Market Value in each case being measured at the time received and without
giving effect to subsequent changes in value).

 

(b)           All or a
portion of an amount equal to the Net Cash Proceeds of any Asset Sale may be
applied by the Company or a Restricted Subsidiary to the extent the Company or
such Restricted Subsidiary elects (or is required by the terms of any
Indebtedness under the Credit Agreement or any Credit Facility):

 

(i)            to the extent
such Net Cash Proceeds constitute proceeds from the sale of (x) ABL
Priority Collateral or assets that are not Collateral, to repay permanently any
Indebtedness under the Credit Agreement or any other Credit Facility then
outstanding as required by the terms thereof (and to effect a permanent
reduction in the availability under the Credit Agreement or any other Credit
Facility) or (y) assets of a Restricted Subsidiary that is not a
Guarantor, to repay Indebtedness of a Restricted Subsidiary that is not a
Guarantor;

 

(ii)           to acquire (or
enter into a legally binding agreement to acquire), all or substantially all of
the assets of, or a majority of the Voting Stock of, a Permitted Business (or
in the case 

 

65

 

of
an Asset Sale of ABL Priority Collateral, to acquire additional Collateral); provided
that to the extent such Net Cash Proceeds are received in respect of Notes
Priority Collateral, such Net Cash Proceeds are applied to acquire assets
substantially all of which constitute Notes Priority Collateral;

 

(iii)          to make a
capital expenditure; provided that to the extent such Net Cash Proceeds
are received in respect of Notes Priority Collateral, such expenditures shall
relate to Notes Priority Collateral; or

 

(iv)          to invest the
Net Cash Proceeds (or enter into a legally binding agreement to invest) in
Replacement Assets; provided that to the extent such Net Cash Proceeds
are received in respect of Notes Priority Collateral, substantially all of such
Replacement Assets constitute Notes Priority Collateral.

 

Pending
the final application of any such Net Cash Proceeds (other than Trust Monies),
the Issuers may temporarily reduce Indebtedness or otherwise invest such Net
Cash Proceeds in any manner that is not prohibited by this Indenture.  If any such legally binding agreement to
invest such Net Cash Proceeds is entered into and the Issuers shall have not
consummated such investment (or a replacement investment) within 180 days of
the date of such binding agreement or within 365 days of such Asset Sale,
whichever is later, such Net Cash Proceeds which were to be invested shall
constitute “Excess Proceeds”.  The
amount of such Net Cash Proceeds not used or invested in accordance with the
preceding clauses (i) through (iv) within 365 days (or such later
number of days as provided in the preceding sentence) of the Asset Sale
constitutes “Excess Proceeds.”

 

When
the aggregate amount of Excess Proceeds exceeds $10.0 million, within 30 days
thereof, or earlier at the option of the Issuers, the Issuers will make an
offer (an “Offer”) to all Holders of Notes and (x) in the case of
Net Cash Proceeds from an Asset Sale of Notes Priority Collateral, to the
holders of any other Permitted Additional Pari Passu Obligations containing
provisions similar to those set forth in this Section 4.07 with respect to
asset sales or (y) in the case of any other Net Cash Proceeds, to all
holders of other Pari Passu Indebtedness containing provisions similar to those
set forth in this Section 4.07 with respect to asset sales, in each case,
equal to the Excess Proceeds.  The offer
price in any Offer will be equal to 100% of the principal amount of the Notes
(and 100% of the principal amount or, if different, the accreted value of any
Permitted Additional Pari Passu Obligations or Pari Passu Indebtedness) plus
accrued and unpaid interest to the date of purchase, and will be payable in
cash.  If any Excess Proceeds remain
after consummation of an Offer, the Issuers may use those Excess Proceeds for
any purpose not otherwise prohibited by this Indenture and such remaining
amount shall not be added to any subsequent Excess Proceeds for any purpose
under this Indenture.  If the aggregate
principal amount of the Notes and principal amount or, if different, accreted
value of other Permitted Additional Pari Passu Obligations (in the case of Net
Cash Proceeds from Notes Priority Collateral) or Notes and other Pari Passu
Indebtedness (in the case of any other Net Cash Proceeds) tendered into such
Offer exceeds the amount of Excess Proceeds, the Trustee will select the Notes
and other Permitted Additional Pari Passu Obligations or other Pari Passu
Indebtedness, as the case may be, to be purchased on a pro rata basis.  Upon
completion of each Offer, the amount of Excess Proceeds will be reset at zero.

 

(c)           The Company shall
determine in good faith whether, and to what extent, an Asset Sale is in
respect of Notes Priority Collateral and to what extent the Net Cash Proceeds
in respect of an Asset Sale of Notes Priority Collateral are used to acquire or
are invested in Notes Priority Collateral taking into account all relevant
factors, including without limitation, the existence of structurally senior
claims against the Notes Priority Collateral and the assets of an entity whose
Capital Stock is subject to such Asset Sale or acquired with such Net Cash
Proceeds.

 

66

 

(d)           The Issuers will comply with
the applicable tender offer rules, including Rule 14e-1 under the Exchange
Act, and any other applicable securities laws or regulations in connection with
an Offer.  To the extent that the
provisions of any securities laws or regulations conflict with this Section 4.07,
the Company, or the applicable Restricted Subsidiary, will comply with the
applicable securities laws and regulations and will not be deemed to have
breached its obligations under this Section 4.07 by virtue of such
conflict.

 

Section 4.08                                          Additional
Guarantees.

 

The
Issuers will cause within ten Business Days any Restricted Subsidiary formed or
acquired after the Issue Date (other than a Foreign Subsidiary, a
Securitization Entity and any Non-Guarantor Restricted Subsidiary if the Fair
Market Value of such Non-Guarantor Restricted Subsidiary, together with the
Fair Market Value of all other Non-Guarantor Restricted Subsidiaries, as of
such date, does not exceed in the aggregate $30.0 million) to execute and
deliver a supplemental indenture in the form of Exhibit D providing
for a Guarantee of the Notes and supplements to the applicable Security
Documents in order to grant a Lien in the Collateral owned by such Restricted
Subsidiary to the extent required by the Security Documents and take all
actions required by the Security Documents to perfect such Lien.  In addition, to the extent the collective
Fair Market Value of the Company’s Non-Guarantor Restricted Subsidiaries, as of
the date of the creation of, acquisition of or Investment in a Non-Guarantor
Restricted Subsidiary, exceeds $30.0 million, the Company shall cause, within
ten Business Days after such date, one or more of such Non-Guarantor Restricted
Subsidiaries to similarly execute and deliver a supplemental indenture in the
form of Exhibit D providing for a Guarantee of the Notes and a
supplement to the applicable Security Documents in order to grant a Lien in the
Collateral owned by such Restricted Subsidiary to the extent required by the
Security Documents such that the collective Fair Market Value of all remaining
Non-Guarantor Restricted Subsidiaries does not exceed $30.0 million and take
all actions required by the Security Documents to perfect such Lien.  In addition, the Company will not permit any
Non-Guarantor Restricted Subsidiary to guarantee the payment of any
Indebtedness of the Company or any other Guarantor unless such Non-Guarantor
Restricted Subsidiary simultaneously delivers a supplemental indenture in the
form of Exhibit D providing for a Guarantee of the Notes by such
Non-Guarantor Restricted Subsidiary and a joinder agreement related to the
Security Documents, providing for a pledge of its assets as Collateral for the
Notes to the extent required by the Security Documents and take all actions
required by the Security Documents to perfect such Lien.

 

Section 4.09                                          Purchase of
Notes upon a Change of Control.

 

(a)           If a Change of
Control occurs, each Holder of Notes will have the right to require that the
Issuers purchase all or any part (in integral multiples of $1,000 except that
no Note will be purchased in part if the remaining principal amount of such
Note would be less than $2,000) of such Holder’s Notes pursuant to the offer
described below (a “Change of Control Offer”).  In the Change of Control Offer, the Issuers
will offer to purchase all of the Notes, at a purchase price (the “Change of
Control Purchase Price”) in cash in an amount equal to 101% of the
principal amount of such Notes, plus accrued and unpaid interest, if any, to
the date of purchase (the “Change of Control Purchase Date”) (subject to
the rights of Holders of record on the relevant Record Date to receive interest
due on an Interest Payment Date).

 

(b)           Unless an Issuer has
previously or concurrently mailed a notice of redemption with respect to all of
the outstanding Notes pursuant to Section 3.03 within 30 days of any
Change of Control or, at the Issuers’ option, prior to such Change of Control
but after it is publicly announced, the Issuers must notify the Trustee and
give written notice (a “Change of Control Purchase Notice”) of the 

 

67

 

Change
of Control to each Holder of Notes, by first-class mail, postage prepaid, at
its address appearing in the Note Register. 
The notice must state:

 

(i)            that a Change of Control has occurred or will occur,
the date of such event, and that such Holder has the right to require the
Issuers to repurchase such Holder’s Notes at the Change of Control Purchase
Price;

 

(ii)           that the Change
of Control Offer is being made pursuant to this Section 4.09 and that all
Notes properly tendered pursuant to the Change of Control Offer will be
accepted for payment at the Change of Control Purchase Price;

 

(iii)          the Change of
Control Purchase Date, which shall be fixed by the Issuers on a Business Day no
earlier than 30 days nor later than 60 days from the date such notice is
mailed, or such later date as is necessary to comply with requirements under
the Exchange Act; provided that the Change of Control Purchase Date may
not occur prior to the Change of Control;

 

(iv)          the Change of
Control Purchase Price;

 

(v)           that the Change
of Control Purchase Price for any Notes which has been properly tendered and
not withdrawn will be paid promptly following the Change of Control Purchase
Date;

 

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

 

(vii)         that Holders
shall be entitled to withdraw their tendered Notes and their election to
require the Issuers to purchase such Notes, provided that the Paying
Agent receives, not later than the close of business on the 30th day following
the date of the Change of Control Purchase Notice, a facsimile transmission or
letter setting forth the name of the Holder of the Notes, the principal amount
of Notes tendered for purchase, and a statement that such Holder is withdrawing
its tendered Notes and its election to have such Notes purchased;

 

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

 

(ix)           that, unless
the Issuers default in the payment of the Change of Control Purchase Price, any
Notes accepted for payment pursuant to the Change of Control Offer shall cease
to accrue interest after the Change of Control Purchase Date.

 

(c)           On the Change
of Control Purchase Date, the Issuers shall, to the extent permitted by law,

 

(i)            accept for payment all Notes issued by it or
portions thereof properly tendered pursuant to the Change of Control Offer;

 

(ii)           deposit with
the Paying Agent an amount equal to the aggregate Change of Control Purchase
Price in respect of all Notes or portions thereof so tendered; and

 

68

 

(iii)          deliver, or
cause to be delivered, to the Trustee for cancellation the Notes so accepted
together with an Officer’s Certificate to the Trustee stating that such Notes
or portions thereof have been tendered to and purchased by the Issuers.

 

(d)           Subject to
applicable escheat laws, the Trustee and the Paying Agent shall return to the
Issuers any cash that remains unclaimed, together with interest or dividends,
if any, thereon, held by them for the payment of the Change of Control Purchase
Price; provided, however, that, (x) to the extent that the
aggregate amount of cash deposited by the Issuers pursuant to clause (ii) of
clause (c) above exceeds the aggregate Change of Control Purchase Price of
the Notes or portions thereof to be purchased, then the Trustee shall hold such
excess for the Issuers and (y) unless otherwise directed by the Issuers in
writing, promptly after the Business Day following the Change of Control
Purchase Date the Trustee shall return any such excess to the Issuers together
with interest, if any, thereon.

 

(e)           The Issuers shall comply, to
the extent applicable, with the applicable tender offer rules, including Rule 14e-1
under the Exchange Act, and any other applicable securities laws or regulations
in connection with a Change of Control Offer. 
To the extent that the provisions of any securities laws or regulations
conflict with this Section 4.09, the Issuers will comply with the
applicable securities laws and regulations and will not be deemed to have
breached their obligations under this Section 4.09 by virtue of such
conflict.

 

(f)            Notwithstanding the
foregoing, the Issuers 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 4.09 applicable to a Change of Control Offer made by
the Issuers and purchases all the Notes validly tendered and not withdrawn
under such Change of Control Offer.

 

(g)           The Issuers’ obligation to
make a Change of Control Offer to repurchase the Notes may be waived or
modified with the written consent of the Holders of a majority in principal
amount of the Notes then outstanding pursuant to Section 9.02.

 

Section 4.10                                          Reserved.

 

Section 4.11                                          Limitation on
Dividend and Other Payment Restrictions Affecting Subsidiaries.

 

(a)           The Company will not, and
will not cause or permit any of its Restricted Subsidiaries to, directly or
indirectly, create or otherwise cause 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;

 

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

 

(3)           make any
Investment in the Company or any other Restricted Subsidiary; or

 

(4)           transfer any of
its properties or assets to the Company or any other Restricted Subsidiary.

 

(b)           Section 4.11(a) will
not prohibit any:

 

69

 

(1)           encumbrance or
restriction pursuant to an agreement or instrument (including, without
limitation, the Credit Agreement (and related security documents), the Notes,
this Indenture, the Guarantees and the Security Documents) in effect on the
Issue Date or any agreement governing Indebtedness that contains encumbrances
and restrictions that are not materially more restrictive then those contained
in this Indenture, the Guarantees, the Credit Agreement and the Security
Documents;

 

(2)           encumbrance or
restriction with respect to a Restricted Subsidiary that is not a Restricted
Subsidiary on the Issue Date, in existence at the time such Person becomes a
Restricted Subsidiary and not incurred in connection with, or in contemplation
of, such Person becoming a Restricted Subsidiary, provided that such
encumbrances and restrictions are not applicable to any Restricted Subsidiary
or the properties or assets of any Restricted Subsidiary other than such
Subsidiary which is becoming a Restricted Subsidiary or such Subsidiary’s
Subsidiaries;

 

(3)           encumbrance or
restriction pursuant to any agreement governing any Indebtedness represented by
Capital Lease Obligations or Purchase Money Obligations permitted to be
incurred under Section 4.03;

 

(4)           encumbrance or
restriction contained in any Acquired Indebtedness or other agreement of any
Person or related to assets acquired (whether by merger, consolidation or
otherwise) by the Company or any Restricted Subsidiaries, so long as such
encumbrance or restriction (A) was not entered into in contemplation of
the acquisition, merger or consolidation transaction, and (B) is not
applicable to any Person, or the properties or assets of any Person, other than
the Person or such Person’s Subsidiaries, or the property or assets of the
Person or such Person’s Subsidiaries, so acquired;

 

(5)           encumbrance or
restriction existing under applicable law, rule, regulation or order or any
requirement of any regulatory body;

 

(6)           in the case of Section 4.11(a)(4),
Liens securing Indebtedness otherwise permitted to be incurred under Section 4.06
that limit the right of the debtor to dispose of the assets subject to such
Liens;

 

(7)           customary
non-assignment provisions in leases, licenses or contracts;

 

(8)           customary
restrictions contained in (A) asset sale agreements that limit the
transfer of such assets pending the closing of such sale and (B) any other
agreement for the sale or other disposition of a Restricted Subsidiary that
restricts distributions by that Restricted Subsidiary pending its sale or other
disposition;

 

(9)           customary
restrictions imposed by the terms of shareholders’, partnership or joint
venture agreements; provided, however, that such restrictions do
not apply to any Restricted Subsidiaries other than the applicable company,
partnership or joint venture;

 

(10)         restrictions
contained in Indebtedness of Restricted Subsidiaries permitted to be incurred
under this Indenture, so long as such restrictions or encumbrances are
customary for Indebtedness of the type incurred and which the Board of
Directors of the Company determines in good faith will not adversely affect the
Issuers’ ability to make payments of principal or interest on the Notes;

 

70

 

(11)         encumbrance or
restriction with respect to a Securitization Entity in connection with a
Qualified Securitization Transaction; provided, however, that
such encumbrances and restrictions are necessary or advisable to effect the
transactions contemplated under such Qualified Securitization Transaction in
the good faith determination of the Company;

 

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

 

(13)         encumbrance or
restriction under any agreement that amends, extends, renews, refinances or
replaces the agreements containing the encumbrances or restrictions in the
foregoing clauses (1) through (12), or in this clause (13); provided
that the terms and conditions of any such encumbrances or restrictions are no
more restrictive in any material respect than those under or pursuant to the
agreement evidencing the Indebtedness so extended, renewed, refinanced or
replaced.

 

Section 4.12                                          Limitation on
Unrestricted Subsidiaries.

 

The
Issuers may designate after the Issue Date any Subsidiary as an “Unrestricted
Subsidiary” under this Indenture only if:

 

(a)           no Default shall have occurred and be continuing at
the time of or after giving effect to such designation;

 

(b)           either (i) such
Subsidiary has total assets of less than $1,000 or (ii) the Issuers would
be permitted to make an Investment at the time of designation (assuming the
effectiveness of such designation) pursuant to Section 4.04 in an amount
(the “Designation Amount”) equal to the Fair Market Value of the Company’s
and its Restricted Subsidiaries’ Investments in such Subsidiary (including any
guarantee of the obligations of such Unrestricted Subsidiary that will not be
released concurrently with such designation but excluding any amounts
attributable to Investments made prior to the Issue Date);

 

(c)           such
Unrestricted Subsidiary does not own any Capital Stock in any Restricted
Subsidiary which is not simultaneously being designated an Unrestricted
Subsidiary;

 

(d)           such
Unrestricted Subsidiary is not liable, directly or indirectly, with respect to
any Indebtedness other than Non-recourse Indebtedness, provided that an
Unrestricted Subsidiary may provide a Guarantee for the Notes; and

 

(e)           such
Unrestricted Subsidiary is not a party to any agreement, contract, arrangement
or understanding at such time with the Company or any Restricted Subsidiary
unless the terms of any such agreement, contract, arrangement or understanding
are not materially less favorable to the Company or such Restricted Subsidiary
than those that might be obtained at the time from Persons who are not
Affiliates of the Issuers or, in the event such condition is not satisfied, the
value of such agreement, contract, arrangement or understanding to such
Unrestricted Subsidiary from and after the date of designation shall be deemed
a Restricted Payment.

 

In
the event of any such designation, the Issuers shall be deemed to have made an
Investment pursuant to Section 4.04 for all purposes of this Indenture in
an amount equal to the Designation Amount. 
For purposes of the foregoing, the designation of a Subsidiary of an
Issuer as an Unrestricted Subsidiary shall be deemed to be the designation of
all of the Subsidiaries of such Subsidiary 

 

71

 

as
Unrestricted Subsidiaries.  Unless so
designated as an Unrestricted Subsidiary, any Person that becomes a Subsidiary
of an Issuer will be classified as a Restricted Subsidiary.

 

The
Issuers may revoke any designation of a Subsidiary as an Unrestricted
Subsidiary if:

 

(a)           no Default
shall have occurred and be continuing at the time of and after giving effect to
such revocation;

 

(b)           all Liens and
Indebtedness of such Unrestricted Subsidiary outstanding immediately following
such revocation would, if incurred at such time, have been permitted to be
incurred for all purposes of this Indenture; and

 

(c)           unless such
redesignated Subsidiary shall not have any Indebtedness outstanding (other than
Indebtedness that would be Permitted Indebtedness), (x) if prior to such
revocation the Company could incur $1.00 of additional Indebtedness pursuant to
Section 4.03(a) immediately after giving effect to such proposed
revocation, and after giving pro forma
effect to the incurrence of any such Indebtedness of such redesignated
Subsidiary as if such Indebtedness was incurred on the date of the revocation,
the Company could incur $1.00 of additional Indebtedness pursuant to Section 4.03(a) or
(y) if prior to such revocation the Company could not incur $1.00 of
additional Indebtedness pursuant to Section 4.03(a) the Company’s
Consolidated Fixed Charge Coverage Ratio does not decline as a result of such
revocation.

 

All
designations and revocations must be evidenced by a resolution of the Company’s
Board of Directors delivered to the Trustee certifying compliance with the
foregoing provisions.

 

Section 4.13                                          Provision of
Financial Information.

 

(a)           The Company
shall furnish to the Trustee and, upon request, to beneficial owners and
prospective investors of the Notes, a copy of all of the information and
reports referred to in clauses (1) and (2) below within 15 days after
the time periods specified in the SEC’s rules and regulations (assuming
the Notes were registered under Section 13(a) or Section 15(d) of
the Exchange Act):

 

(1)           all quarterly
and annual financial information that would be required to be contained in a
filing with the SEC on Forms 10-Q and 10-K if the Company were required to file
such Forms, including a “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and, with respect to the annual
information only, a report on the annual financial statements by the Company’s
certified independent accountants; provided that, prior to the Exchange
Offer, financial statements may omit the footnote disclosures omitted from the
financial statements included in the Offering Memorandum for periods in such
fiscal years; and

 

(2)           all current
reports that would be required to be filed with the SEC on Form 8-K if the
Company were required to file such reports;

 

provided that if the
Company files such reports electronically with the SEC within such time
periods, the Company shall not be required to furnish such reports as specified
above.

 

(b)           After
consummation of the Exchange Offer, whether or not required by the SEC, the
Company shall comply with the periodic reporting requirements of the Exchange
Act and shall file the reports specified in Section 4.13(a) with the
SEC within the time periods specified in Section 4.13(a) unless the SEC
will not accept such a filing.  If,
notwithstanding the foregoing, the SEC will not accept the Company’s filings
for any reason, the Company shall post the reports referred to in Section 4.13(a) on

 

72

 

its
website within the time periods that would apply if the Company were required
to file those reports with the SEC.

 

(c)           For so long as any Notes are
outstanding, the Company shall also:

 

(1)           within 15
Business Days after filing with the Trustee or the SEC, as the case may be, the
annual and quarterly information required pursuant to the preceding two
paragraphs, hold a conference call for Holders of Notes, prospective investors
and market makers (it being understood that prior to completion of the Exchange
Offer, the Company may limit participants to the extent it determines in good
faith such limitations are prudent to ensure compliance with the Securities Act
and other applicable securities laws) to discuss such reports and the results
of operations for the relevant reporting period; and

 

(2)           employ
commercially reasonable means expected to reach Persons entitled to participate
in such conference calls in accordance with the foregoing paragraph no fewer
than three Business Days prior to the date of the conference call required to
be held in accordance with clause (1) above, to announce the time and date
of such conference call and either including all information necessary to
access the call or directing such Persons to contact the appropriate contact at
the Company to obtain such information.

 

(d)           Notwithstanding
the foregoing, so long as the direct or indirect parent company becomes a
Guarantor, the reports, information and other documents required to be filed
and provided in accordance with clause (a) and (b) above will be
those of such parent, rather than those of the Company, so long as such filings
would satisfy the SEC’s requirements (assuming the Notes were registered under Section (13)(a) or
Section 15(d) of the Exchange Act).

 

(e)           In addition, so long as any
of the Notes remain outstanding, the Issuers will make available to any
prospective purchaser of Notes or beneficial owner of Notes in connection with
any sale thereof the information required by Rule 144A(d)(4) under
the Securities Act, until such time as the Issuers have either exchanged the
Notes for securities identical in all material respects which have been
registered under the Securities Act or until such time as the Holders thereof
have disposed of such Notes pursuant to an effective registration statement
under the Securities Act.

 

Section 4.14                                          Statement by
Officers as to Default.

 

(a)           The Issuers
will deliver to the Trustee, on or before a date not more than 120 days after
the end of each fiscal year of the Issuers, an Officer’s Certificate, as to
compliance herewith, including whether or not, after a review of the activities
of the Issuers during such year and of the Issuers’ and each Guarantor’s
performance under this Indenture, to the best knowledge, based on such review,
of the signers thereof, the Issuers and each Guarantor have fulfilled all of
their respective obligations and are in compliance with all conditions and
covenants under this Indenture throughout such year, as the case may be, and,
if there has been a Default specifying each Default and the nature and status
thereof and any actions being taken by the Issuers and the Guarantors with
respect thereto.

 

(b)           When any Default or Event of
Default has occurred and is continuing, the Issuers shall deliver to the
Trustee by registered or certified mail or facsimile transmission of an Officer’s
Certificate specifying such Default or Event of Default, within five Business
Days after becoming aware of the occurrence of such Default or Event of
Default.

 

73

 

ARTICLE 5

 

SUCCESSORS

 

Section 5.01                                          Consolidation,
Merger or Sale of Assets.

 

(a)           No Issuer will, in a single
transaction or through a series of related transactions, consolidate with or
merge with or into any other Person or sell, assign, convey, transfer, lease or
otherwise dispose of all or substantially all of its properties and assets to
any Person or group of Persons, unless at the time and after giving effect
thereto:

 

(1)           either (a) such
Issuer will be the continuing corporation or (b) the Person formed by or
surviving such consolidation or merger or the Person which acquires by sale,
assignment, conveyance, transfer, lease or disposition all or substantially all
of the properties and assets of such Issuer and their Restricted Subsidiaries
on a consolidated basis (the “Surviving Entity”) (i) shall be a
corporation, limited liability company or partnership duly organized and
validly existing under the laws of the United States of America, any state
thereof or the District of Columbia; provided that there shall be an
obligor or a co-obligor that is a corporation, (ii) shall expressly assume
by a supplemental indenture, in a form reasonably satisfactory to the Trustee,
all the obligations of such Issuer under the Notes and this Indenture and the
Registration Rights Agreement, as the case may be, and the Notes and this
Indenture and the Registration Rights Agreement will remain in full force and
effect as so supplemented (and any Guarantees will be confirmed as applying to
such Surviving Entity’s obligations) and (iii) shall expressly assume the
due and punctual performance of the covenants and obligations of such Issuer
under the Security Documents;

 

(2)           after giving
effect to such transaction, no Default or Event of Default exists;

 

(3)           after giving
effect to such transaction, the Company (or the Surviving Entity if the Company
is not the continuing obligor under this Indenture) could (a) incur $1.00
of additional Indebtedness under the provisions of Section 4.03(a) or
(b) the Consolidated Fixed Charge Coverage Ratio of the Company or the
Surviving Entity is equal to or greater than the Company’s Consolidated Fixed
Charge Coverage Ratio immediately prior to such transaction;

 

(4)           at the time of
the transaction, each Guarantor, if any, unless it is the other party to the
transactions described above, will have by supplemental indenture confirmed
that its Guarantee shall apply to such Person’s obligations under this
Indenture and the Notes;

 

(5)           at the time of
the transaction, such Issuer or the Surviving Entity will have delivered, or
caused to be delivered, to the Trustee, in form and substance reasonably
satisfactory to the Trustee, an Officer’s Certificate and an Opinion of
Counsel, each to the effect that such consolidation, merger, transfer, sale,
assignment, conveyance, transfer, lease or other transaction and the
supplemental indenture in respect thereof comply with this Indenture and that
all conditions precedent provided for in this Section 5.01(a) relating
to such transaction have been complied with;

 

(6)           such Issuer or
the Surviving Entity, as applicable, promptly causes such amendments,
supplements or other instruments to be executed, delivered, filed and recorded,
as applicable, in such jurisdictions as may be reasonably required by
applicable law to preserve and protect the Lien of the Security Documents on
the Collateral owned by or transferred to such Issuer or the Surviving Entity;
and

 

74

 

(7)           the Collateral
owned by or transferred to such Issuer or the Surviving Entity, as applicable,
shall (a) continue to constitute Collateral under this Indenture and the
Security Documents, (b) be subject to the Lien in favor of the Collateral
Agent for the benefit of the Trustee and the holders of the Notes, and (c) not
be subject to any Lien other than Permitted Liens.

 

Notwithstanding
Sections 5.01(a)(2) and (a)(3), (1) either Issuer may consolidate
with, merge into or transfer all or part of its properties and assets to the
other Issuer; (2) any Restricted Subsidiary may consolidate with, merge
into or transfer all or part of its properties and assets to another Restricted
Subsidiary and (3) either Issuer may merge with an Affiliate that has no
significant assets or liabilities and was formed solely for the purpose of
changing such Issuer’s jurisdiction of organization to another state of the
United States.

 

(b)           Each Guarantor will not, and
the Issuers will not permit a Guarantor to, in a single transaction or through
a series of related transactions, consolidate with or merge with or into any
other Person (other than the Issuers or any Guarantor) or sell, assign, convey,
transfer, lease or otherwise dispose of all or substantially all of its
properties and assets to any Person or group of Persons (other than the Issuers
or any Guarantor), unless at the time and after giving effect thereto:

 

(1)           (a) either
(i) the Guarantor will be the continuing corporation or limited liability
company, as the case may be, in the case of a consolidation or merger involving
the Guarantor or (ii) the Person formed by or surviving such consolidation
or merger or the Person which acquires by sale, assignment, conveyance,
transfer, lease or disposition all or substantially all of the properties and
assets of the Guarantor on a consolidated basis (the “Surviving Guarantor
Entity”) will be a corporation, limited liability company, limited
liability partnership, partnership (whether general or limited) or trust duly
organized and validly existing under the laws of the United States of America,
any state thereof or the District of Columbia and such Person (x) expressly
assumes, by a supplemental indenture, in a form reasonably satisfactory to the
Trustee, all the obligations of such Guarantor under its Guarantee of the Notes
and this Indenture and the Registration Rights Agreement and such Guarantee,
Indenture and Registration Rights Agreement will remain in full force and
effect; and (y) shall expressly assume the due and punctual performance of
the covenants and obligations of the applicable Guarantor under the Security
Documents;

 

(b)           after giving
effect to such transaction, no Default or Event of Default exists;

 

(c)           at the time of
the transaction such Guarantor or the Surviving Guarantor Entity will have
delivered, or caused to be delivered, to the Trustee, in form and substance
reasonably satisfactory to the Trustee, an Officer’s Certificate and an Opinion
of Counsel, each to the effect that such consolidation, merger, transfer, sale,
assignment, conveyance, lease or other transaction and the supplemental
indenture in respect thereof comply with this Indenture and that all conditions
precedent therein provided for relating to such transaction have been complied
with;

 

(d)           the Guarantor
or the Surviving Guarantor Entity, as applicable, promptly causes such
amendments, supplements or other instruments to be executed, delivered, filed
and recorded, as applicable, in such jurisdictions as may be reasonably
required by applicable law to preserve and protect the Lien of the Security
Documents on the Collateral owned by or transferred to the Guarantor or the
Surviving Guarantor Entity;

 

(e)           the Collateral
owned by or transferred to the Guarantor or the Surviving Guarantor Entity, as
applicable, shall (i) continue to constitute Collateral under this
Indenture and the Security Documents, (ii) be subject to the Lien in favor
of the Collateral Agent for the benefit of 

 

75

 

the
Trustee and the holders of the Notes, and (iii) not be subject to any Lien
other than Permitted Liens; and

 

(f)            the property
and assets of the Person which is merged or consolidated with or into the
Guarantor or the Surviving Guarantor Entity, as applicable, to the extent that
they are property or assets of the types which would constitute Collateral
under the Security Documents, shall be treated as after acquired property and
the Guarantor or the Surviving Guarantor Entity shall take such action as may
be reasonably necessary to cause such property and assets to be made subject to
the Lien of the Security Documents in the manner and to the extent required in
this Indenture; or

 

(2)           the transaction
is made in compliance with Section 4.07.

 

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

 

Section 5.02                                          Successor
Substituted.

 

Upon
any consolidation or merger, or any sale, assignment, conveyance, transfer,
lease or disposition of all or substantially all of the properties and assets
of any Issuer or any Guarantor, if any, in accordance with Section 5.01,
the successor Person formed by such consolidation or into which such Issuer or
such Guarantor, as the case may be, is merged, or the successor Person to which
such sale, assignment, conveyance, transfer, lease or disposition is made,
shall succeed to, and be substituted for, and may exercise every right and
power of, such Issuer or such Guarantor, as the case may be, under this
Indenture, the Notes and/or the related Guarantee, as the case may be, and the
Registration Rights Agreement, with the same effect as if such successor had
been named as such Issuer or such Guarantor, as the case may be, herein, in the
Notes and/or in the Guarantee, as the case may be, and the Registration Rights
Agreement, and the applicable Issuer or such Guarantor, as the case may be,
shall be discharged from all obligations and covenants under this Indenture and
the Notes or its Guarantee, as the case may be, and the Registration Rights
Agreement; provided that in the case of a transfer by lease, the
predecessor shall not be released from the payment of principal and interest on
the Notes or its Guarantee, as the case may be.

 

ARTICLE 6

 

DEFAULTS AND REMEDIES

 

Section 6.01                                          Events of
Default.

 

An
“Event of Default” wherever used herein, means any one of the following
events:

 

(1)           there shall be
a default in the payment of any interest on any Note when it becomes due and
payable, and such default shall continue for a period of 30 days;

 

(2)           there shall be
a default in the payment of the principal of (or premium, if any, on) any Note
at its Maturity (upon acceleration, optional redemption, required repurchase or
otherwise);

 

76

 

(3)           (a) there
shall be a default in the performance, or breach, of any covenant or agreement
of an Issuer or any Guarantor under this Indenture or any Guarantee (other than
a default in the performance, or breach, of a covenant or agreement which is
specifically dealt with in clause (1) or (2) above or in clause (b), (c) or
(d) of this clause (3)) and such default or breach shall continue for a
period of 60 days after written notice has been given, by certified mail, (1) to
the Issuers by the Trustee or (2) to the Issuers and the Trustee by the
Holders of at least 25% in aggregate principal amount of the outstanding Notes;
(b) there shall be a default in the performance or breach of the
provisions described in Section 5.01; (c) the Issuers shall have
failed to make or consummate an Offer in accordance with the provisions of Section 4.07;
or (d) the Issuers shall have failed to make or consummate a Change of
Control Offer in accordance with the provisions of Section 4.09;

 

(4)           (a) any
default in the payment of the principal or premium, if any, on any Indebtedness
when due under any of the agreements, indentures or instruments under which the
Issuers, any Guarantor or any Restricted Subsidiary then has outstanding
Indebtedness (other than Indebtedness owed to the Issuers or a Restricted
Subsidiary) in excess of $15.0 million (“Material Indebtedness”) and
such default shall have continued after giving effect to any applicable grace
period and shall not have been cured or waived or (b) an event of default
as defined in any of the agreements, indentures or instruments described in
subclause (a) of this clause (4) shall have occurred and the Material
Indebtedness thereunder, if not already matured at its final maturity in
accordance with its terms, shall have been accelerated;

 

(5)           any Guarantee
of any Significant Subsidiary or any group of Restricted Subsidiaries which
collectively (as of the latest audited consolidated financial statements for
the Company) would constitute a Significant Subsidiary shall for any reason
cease to be, or shall for any reason be asserted in writing by any Guarantor or
the Issuers not to be, in full force and effect and enforceable in accordance
with its terms, except to the extent permitted by this Indenture and any such
Guarantee;

 

(6)           one or more
final, non-appealable judgments or orders of any court or regulatory or
administrative agency for the payment of money in excess of $15.0 million (net
of any amounts to the extent that they are covered by insurance), either
individually or in the aggregate, shall be rendered against an Issuer, any
Guarantor or any Restricted Subsidiary which has not been discharged, fully
bonded or stayed for a period of 60 consecutive days;

 

(7)           there shall
have been the entry of a decree or order that remains unstayed and in effect
for 60 consecutive days by a court of competent jurisdiction under any applicable
Bankruptcy Law (a) for relief in an involuntary case or proceeding in
respect of such Issuer, any Significant Subsidiary or any group of Restricted
Subsidiaries which collectively (as of the latest audited consolidated
financial statements for the Company and its Restricted Subsidiaries) would
constitute a Significant Subsidiary or (b) adjudging such Issuer, any
Significant Subsidiary or any group of Restricted Subsidiaries which
collectively (as of the latest audited consolidated financial statements for
the Company and its Restricted Subsidiaries) would constitute a Significant
Subsidiary bankrupt or insolvent or (c) seeking reorganization,
arrangement, adjustment or composition under any applicable federal or state
law of or in respect of such Issuer, any Significant Subsidiary or any group of
Restricted Subsidiaries which collectively (as of the latest audited
consolidated financial statements for the Company and its Restricted
Subsidiaries) would constitute a Significant Subsidiary or (d) appointing
a custodian of such Issuer, any Significant Subsidiary or any group of
Restricted Subsidiaries which collectively (as of the latest audited
consolidated financial statements for the Company and its Restricted
Subsidiaries) would constitute a Significant 

 

77

 

Subsidiary
or of substantially all of the assets of such Issuer or such Significant
Subsidiary, or ordering the winding up or liquidation of their affairs;

 

(8)           such Issuer,
any Significant Subsidiary or any group of Restricted Subsidiaries which
collectively (as of the latest audited consolidated financial statements for
the Company and its Restricted Subsidiaries) would constitute a Significant
Subsidiary (a) commences a voluntary case or proceeding in respect of such
Issuer, such Significant Subsidiary or such group of Restricted Subsidiaries
under any applicable Bankruptcy Law or any other case or proceeding to be
adjudicated bankrupt or insolvent, (b) consents to the entry of a decree
or order for debt relief in respect of such Issuer, such Significant Subsidiary
or such group of Restricted Subsidiaries in an involuntary case or proceeding
under any applicable Bankruptcy Law or to the commencement of any bankruptcy or
insolvency case or proceeding against it, (c) files a petition or answer
or consent seeking reorganization or debt relief in respect of such Issuer,
such Significant Subsidiary or such group of Restricted Subsidiaries under any
Bankruptcy Law or applicable federal or state insolvency law, (d) consents
to the filing of such petition for the appointment of, or taking possession by,
a custodian of such Issuer, such Significant Subsidiary or such group of
Restricted Subsidiaries or of substantially all of the assets of such Issuer or
such Significant Subsidiary, (e) makes an assignment for the benefit of
creditors, (f) admits in writing its inability to pay its debts generally
as they become due or (g) takes any corporate action to authorize any such
actions in this clause (8); or

 

(9)           unless all of
the Collateral has been released from the Note Liens in accordance with the
provisions of the Security Documents, (x) default by the Issuers or any
Subsidiary in the performance of the Security Documents which materially
adversely affects the enforceability, validity, perfection or priority of the
Note Liens on a material portion of the Collateral, (y) the repudiation or
disaffirmation by the Issuers or any Guarantor of its material obligations
under the Security Documents or (z) the determination in a judicial
proceeding that the Security Documents are unenforceable or invalid against the
Issuers or any Guarantor party thereto for any reason with respect to a
material portion of the Collateral and, in the case of any event described in
subclauses (x) through (z), 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 Issuers receive written notice thereof specifying such occurrence
from the Trustee or the Holders of at least 25% of the outstanding principal
amount of the Notes and demanding that such default be remedied.

 

Section 6.02                                          Acceleration.

 

If
an Event of Default (other than as specified in Section 6.01(a)(7) or
(8) with respect to an Issuer) shall occur and be continuing with respect
to this Indenture, the Trustee or the Holders of not less than 25% in aggregate
principal amount of the Notes then outstanding may, and the Trustee at the
request of such Holders shall, declare all unpaid principal of, premium, if
any, and accrued interest on all Notes to be due and payable immediately, by a
notice in writing to the Issuers (and to the Trustee if given by the Holders of
the Notes) and upon any such declaration, such principal, premium, if any, and
interest shall become due and payable immediately.  If an Event of Default specified in Section 6.01(a)(7) or
(8) with respect to an Issuer occurs and is continuing, then all the Notes
shall automatically become and be due and payable immediately in an amount
equal to the principal amount of the Notes, together with accrued and unpaid
interest, if any, to the date the Notes become due and payable, without any
declaration or other act on the part of the Trustee or any Holder.

 

78

 

After
a declaration of acceleration, but before a judgment or decree for payment of
the money due has been obtained by the Trustee, the holders of a majority in
aggregate principal amount of Notes outstanding by written notice to the
Issuers and the Trustee, may rescind and annul such declaration and its
consequences if:

 

(a)           the Issuers have paid or deposited with the Trustee
a sum sufficient to pay (1) all sums paid or advanced by the Trustee under
this Indenture and the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, (2) all overdue interest
on all Notes then outstanding, (3) the principal of, and premium, if any,
on any Notes then outstanding which have become due otherwise than by such
declaration of acceleration and interest thereon at the rate borne by the Notes
and (4) to the extent that payment of such interest is lawful, interest
upon overdue interest at the rate borne by the Notes; and

 

(b)           all Events of
Default, other than the non-payment of principal of, premium, if any, and
interest on the Notes which have become due solely by such declaration of
acceleration, have been cured or waived.

 

No
such rescission shall affect any subsequent default or impair any right
consequent thereon.

 

Section 6.03                                          Other Remedies.

 

If
an Event of Default occurs and is continuing, the Trustee may pursue any
available remedy to collect the payment of principal, premium, if any, and
interest on the Notes or to enforce the performance of any provision of the
Notes, this Indenture or any Security Document.

 

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.

 

The
Holders of not less than a majority in aggregate principal amount of the Notes
outstanding may on behalf of the Holders of all outstanding Notes waive any
past Default under this Indenture and its consequences, except a Default (1) in
the payment of the principal of, premium, if any, or interest on any Note
(which may only be waived with the consent of each Holder of Notes affected) or
(2) in respect of a covenant or provision which under this Indenture
cannot be modified or amended without the consent of the Holder of each Note
affected by such modification or amendment.

 

Section 6.05                                          Control by
Majority.

 

Subject
to the terms of the Security Documents, the Holders of a majority in principal
amount of the then total outstanding Notes may direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee or
of exercising any trust or power conferred on the Trustee.  The Trustee, however, may refuse to follow
any direction that conflicts with law or this Indenture or that the Trustee
determines is unduly prejudicial to the rights of any other Holder of a Note or
that would involve the Trustee in personal liability.

 

79

 

Section 6.06                                          Limitation on
Suits.

 

No
Holder of any of the Notes has any right to institute any proceedings with
respect to this Indenture or any remedy thereunder, unless (a) such Holder
has previously given notice to the Trustee of a continuing Event of Default; (b) the
Holders of at least 25% in aggregate principal amount of the outstanding Notes
have made written request to the Trustee to institute proceedings in respect of
such Event of Default in its own name as trustee under this Indenture and the
Notes; (c) such Holder or Holders have offered to the Trustee indemnity
satisfactory to the Trustee against the costs, expenses and liabilities to be
incurred in compliance with such request; (d) the Trustee has failed to
institute such proceeding within 60 days after receipt of such notice; and (e) the
Trustee, within such 60-day period, has not received directions inconsistent
with such written request by Holders of a majority in aggregate principal
amount of the outstanding Notes.  Such
limitations do not, however, apply to a suit instituted by a Holder of a Note
for the enforcement of the payment of the principal of, premium, if any, or
interest on such Note on or after the respective due dates expressed in such
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, if any, 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 or a Change of Control Offer), or
to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of such
Holder.

 

Section 6.08                                          Collection Suit
by Trustee.

 

If
an Event of Default specified in Section 6.01(1) or (2) occurs
and is continuing, the Trustee is authorized to recover judgment in its own
name and as trustee of an express trust against the Issuers for the whole
amount of principal of, premium, if any, 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, its agents and counsel.

 

Section 6.09                                          Restoration of
Rights and Remedies.

 

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

 

Section 6.10                                Rights and
Remedies Cumulative.

 

Except
as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Notes in Section 2.07, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise.  The assertion or employment
of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

 

80

 

Section 6.11                                          Delay or
Omission Not Waiver.

 

No
delay or omission of the Trustee or of any Holder of any Note to exercise any
right or remedy accruing upon any Event of Default shall impair any such right
or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein.  Every right and
remedy given by this Article or by law to the Trustee or to the Holders
may be exercised from time to time, and as often as may be deemed expedient, by
the Trustee or by the Holders, as the case may be.

 

Section 6.12                                          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 Issuers (or any other obligor upon the Notes including the Guarantors),
their creditors or their property and shall be entitled and empowered to
participate as a member in any official committee of creditors appointed in
such matter and to collect, receive and distribute any money or other property
payable or deliverable 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, 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 6.13                                          Priorities.

 

Subject
to the Security Documents, if the Trustee collects any money pursuant to this Article 6
(including any amounts received from the Collateral Agent), it shall pay out
the money in the following order:

 

(i)            to the Trustee, Paying Agent, Registrar, Transfer
Agent, their 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, Paying Agent, Registrar or Transfer Agent
and the costs and expenses of collection;

 

(ii)           to Holders of
Notes for amounts due and unpaid on the Notes for principal, premium, if any,
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, if any, and Additional Interest, if any, and interest,
respectively; and

 

(iii)          to the Issuers
or to such party as a court of competent jurisdiction shall direct, including a
Guarantor, if applicable.

 

81

 

The
Trustee may fix a record date and payment date for any payment to Holders of
Notes pursuant to this Section 6.13.

 

Section 6.14                                          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 and expenses, against any party litigant in the suit, having due regard to
the merits and good faith of the claims or defenses made by the party
litigant.  This Section 6.14 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 principal amount of the then
outstanding Notes.

 

ARTICLE 7

 

TRUSTEE

 

Section 7.01                                          Duties of
Trustee.

 

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

 

(i)            the duties of the Trustee shall 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

 

(ii)           in the absence
of bad faith on its part, the Trustee may conclusively rely, as to the truth of
the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture.  However,
in the case of any such certificates or opinions which by any provision hereof
are specifically required to be furnished to the Trustee, the Trustee shall examine
the certificates and opinions to determine whether or not they conform to the
requirements of this Indenture (but need not confirm or investigate the
accuracy of mathematical calculations or other facts stated therein).

 

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

 

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

 

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

 

(iii)          the Trustee
shall not be liable with respect to any action it takes or omits to take in
good faith in accordance with a direction received by it pursuant to Section 6.05.

 

82

 

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

 

(e)           The Trustee shall be under
no obligation to exercise any of its rights or powers under this Indenture at
the request or direction of any of the Holders of the Notes unless the Holders
have offered to the Trustee indemnity or security reasonably satisfactory to it
against any loss, liability or expense.

 

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

 

Section 7.02                                          Rights of
Trustee.

 

(a)           The Trustee may
conclusively rely upon 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, but the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee
shall determine to make such further inquiry or investigation, it shall be
entitled to examine the books, records and premises of the Issuers, personally
or by agent or attorney at the sole cost of the Issuers and shall incur no liability
or additional liability of any kind by reason of such inquiry or investigation.

 

(b)           Before the Trustee acts or
refrains from acting, it may require an Officer’s Certificate or an Opinion of
Counsel or both.  The Trustee shall not
be liable for any action it takes or omits to take in good faith in reliance on
such Officer’s Certificate or Opinion of Counsel.  The Trustee may consult with counsel of its
selection and the advice of such counsel or any Opinion of Counsel shall be
full and complete authorization and protection from liability in respect of any
action taken, suffered or omitted by it hereunder in good faith and in reliance
thereon.

 

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

 

(d)           The Trustee shall 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.

 

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

 

(f)            None of the provisions of
this Indenture shall require the Trustee to expend or risk its own funds or
otherwise to incur any liability, financial or otherwise, in the performance of
any of its duties hereunder, or in the exercise of any of its rights or powers
if it shall have reasonable grounds for believing that repayment of such funds
or indemnity satisfactory to it against such risk or liability is not assured
to it.

 

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

 

(h)           In no event shall the
Trustee be responsible or liable for special, indirect, punitive, or
consequential loss or damage of any kind whatsoever (including, but not limited
to, loss of profit) 

 

83

 

irrespective
of whether the Trustee has been advised of the likelihood of such loss or
damage and regardless of the form of action.

 

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

 

(j)            In the event the Issuers are
required to pay Additional Interest, the Issuers will provide written notice to
the Trustee of the Issuers’ obligation to pay Additional Interest no later than
15 days prior to the next Interest Payment Date, which notice shall set forth
the amount of the Additional Interest to be paid by the Issuers.  The Trustee shall not at any time be under
any duty or responsibility to any Holders to determine whether the Additional
Interest is payable and the amount thereof.

 

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

 

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

 

Section 7.03                                          Individual
Rights of Trustee.

 

The
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuers or any Affiliate of the
Issuers 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 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 shall not be responsible for and makes no representation as to the
validity or adequacy of this Indenture or the Notes, it shall not be
accountable for the Issuers’ use of the proceeds from the Notes or any money
paid to the Issuers or upon the Issuers’ direction under any provision of this
Indenture, it shall not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee, and it shall 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 occurs and is continuing and if it is known to the Trustee, the
Trustee shall mail to Holders of Notes a notice of the Default within 90 days
after it occurs.  Except in the case of a
Default relating to the payment of principal, premium, if any, or interest on
any Note, the Trustee may withhold from the Holders notice of any continuing
Default 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.  The Trustee shall not be
deemed to know of any Default unless a Responsible Officer of the Trustee has
actual knowledge thereof or unless written notice of any event which is such a
Default is received by the Trustee at the Corporate Trust Office of the Trustee.

 

84

 

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 shall mail to the Holders of the Notes a brief report dated as of such
reporting date that complies with Trust Indenture Act Section 313(a) (but
if no event described in Trust Indenture Act Section 313(a) has
occurred within the twelve months preceding the reporting date, no report need
be transmitted).  The Trustee also shall
comply with Trust Indenture Act Section 313(b)(2).  The Trustee shall also transmit by mail all
reports as required by Trust Indenture Act Section 313(c).

 

A
copy of each report at the time of its mailing to the Holders of Notes shall be
mailed to the Issuers and filed with the SEC and each stock exchange on which
the Notes are listed in accordance with Trust Indenture Act Section 313(d).  The Issuers shall promptly notify the Trustee
in writing when, if applicable, the Notes are listed on any stock exchange and
of any delisting thereof.

 

Section 7.07                                          Compensation
and Indemnity.

 

The
Issuers and the Guarantors, jointly and severally, shall pay to the Trustee
from time to time such compensation for its acceptance of this Indenture and
services hereunder as the parties shall agree in writing from time to
time.  The Trustee’s compensation shall
not be limited by any law on compensation of a trustee of an express
trust.  The Issuers and the Guarantors,
jointly and severally, shall reimburse the Trustee promptly upon request for
all reasonable disbursements, advances and expenses incurred or made by it in
addition to the compensation for its services. 
Such expenses shall include the reasonable compensation, disbursements
and expenses of the Trustee’s agents and counsel.

 

The
Issuers and the Guarantors, jointly and severally, shall indemnify the Trustee
for, and hold the Trustee harmless against, any and all loss, damage, claims,
liability or expense (including attorneys’ fees and expenses) incurred by it in
connection with the acceptance or administration of this trust and the
performance of its duties hereunder (including the costs and expenses of
enforcing this Indenture against the Issuers or any of the Guarantors
(including this Section 7.07) or defending itself against any claim
whether asserted by any Holder, the Issuers or any Guarantor, or liability in
connection with the acceptance, exercise or performance of any of its powers or
duties hereunder).  The Trustee shall
notify the Issuers promptly of any claim for which it may seek indemnity.  Failure by the Trustee to so notify the
Issuers shall not relieve the Issuers of its obligations hereunder.  The Issuers shall defend the claim and the
Trustee may have separate counsel and the Issuers shall pay the reasonable and
documented fees and expenses of such counsel. 
The Issuers and the Guarantors need not reimburse any expense or
indemnify against any loss, liability or expense incurred by the Trustee
through the Trustee’s own willful misconduct or gross negligence.

 

The
obligations of the Issuers under this Section 7.07 shall survive the
satisfaction and discharge of this Indenture or the earlier resignation or
removal of the Trustee.

 

Notwithstanding
anything contrary in Section 4.06 hereto, to secure the payment
obligations of the Issuers and the Guarantors in this Section 7.07, the
Trustee shall have a Lien prior to the Notes on all money or property held or
collected by the Trustee, except that held in trust to pay principal and
interest on particular Notes.  Such Lien
shall survive the satisfaction and discharge of this Indenture.

 

When
the Trustee 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.

 

85

 

The
Trustee shall comply with the provisions of Trust Indenture Act Section 313(b)(2) to
the extent applicable.  As used in this Section 7.07,
the term “Trustee” shall also include each of the Paying Agent, Registrar, and
Transfer Agent, as applicable.

 

Section 7.08                                          Replacement of
Trustee.

 

A
resignation or removal of the Trustee and appointment of a successor Trustee
shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section 7.08.  The Trustee may resign in writing at any time
and the Registrar, Paying Agent and Transfer Agent may resign with 60 days’
prior written notice and be discharged from the trust hereby created by so
notifying the Issuers.  The Holders of a
majority in principal amount of the then outstanding Notes may remove the
Trustee by so notifying the Trustee and the Issuers in writing and may remove
the Registrar, Paying Agent or Transfer Agent by so notifying such Registrar,
Paying Agent or Transfer Agent, as applicable, with 90 days’ prior written
notice.  The Issuers may remove the
Trustee if:

 

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

 

(b)           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;

 

(c)           a custodian or
public officer takes charge of the Trustee or its property; or

 

(d)           the Trustee
becomes incapable of acting.

 

If
the Trustee resigns or is removed or if a vacancy exists in the office of
Trustee for any reason, the Issuers shall promptly appoint a successor
Trustee.  Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount
of the then outstanding Notes may appoint a successor Trustee to replace the
successor Trustee appointed by the Issuers.

 

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

 

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.

 

A
successor Trustee shall deliver a written acceptance of its appointment to the
retiring Trustee and to the Issuers. 
Thereupon, the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers
and duties of the Trustee under this Indenture. 
The successor Trustee shall mail a notice of its succession to
Holders.  The retiring Trustee shall
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 Issuers’ obligations under Section 7.07 shall continue for the benefit
of the retiring Trustee.

 

As
used in this Section 7.08, the term “Trustee” shall also include each of
the Paying Agent, Registrar and Transfer Agent, as applicable.

 

86

 

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 shall be the successor Trustee.

 

Section 7.10                                          Eligibility;
Disqualification.

 

There
shall at all times be a Trustee hereunder that is a corporation or national
banking association 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 $50,000,000 as set forth in its most recent published annual report of
condition.

 

This
Indenture shall always have a Trustee who satisfies the requirements of Trust
Indenture Act Sections 310(a)(1), (2) and (5).  The Trustee is subject to Trust Indenture Act
Section 310(b).

 

Section 7.11                                          Preferential
Collection of Claims Against Issuers.

 

The
Trustee is subject to Trust Indenture Act Section 311(a), excluding any
creditor relationship listed in Trust Indenture Act Section 311(b).  A Trustee who has resigned or been removed
shall be subject to Trust Indenture Act Section 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
Issuers may, at their option and at any time, elect to have either Section 8.02
or 8.03 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 Issuers’ exercise under Section 8.01 of the option applicable to this Section 8.02,
the Issuers and the Guarantors shall, subject to the satisfaction of the
conditions set forth in Section 8.04, be deemed to have been discharged
from their obligations with respect to all outstanding Notes and Guarantees on
the date the conditions set forth below are satisfied (“Legal Defeasance”).  For this purpose, Legal Defeasance means that
the Issuers shall be deemed to have paid and discharged the entire Indebtedness
represented by the outstanding Notes, which shall thereafter be deemed to be “outstanding”
only for the purposes of Section 8.05 and the other Sections of this
Indenture referred to in (a) and (b) below, and to have satisfied all
its other obligations under such Notes and this Indenture including that of the
Guarantors (and the Trustee, on demand of and at the expense of the Issuers,
shall execute proper instruments acknowledging the same), except for the
following provisions which shall survive until otherwise terminated or
discharged hereunder:

 

(a)           the rights of Holders of Notes to receive payments
in respect of the principal of, premium, if any, and interest on the Notes when
such payments are due;

 

87

 

(b)           the Issuers’
obligations with respect to Notes concerning issuing temporary Notes,
registration of such Notes, mutilated, destroyed, lost or stolen Notes and the
maintenance of an office or agency for payment and money for security payments
held in trust;

 

(c)           the rights,
powers, trusts, duties and immunities of the Trustee; and

 

(d)           this Section 8.02.

 

Subject
to compliance with this Article 8, the Issuers 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 Issuers’ exercise under Section 8.01 of the option applicable to this Section 8.03,
the Issuers and the Guarantors shall, subject to the satisfaction of the
conditions set forth in Section 8.04, be released from their obligations
under the covenants contained in Sections 4.03, 4.04, 4.05, 4.06, 4.07, 4.08,
4.09, 4.11, 4.12, 4.13 and 4.14, clauses (2) through (7) of Section 5.01(a),
and Section 5.01(b) with respect to the outstanding Notes on and
after the date the conditions set forth in Section 8.04 are satisfied (“Covenant
Defeasance”), the Guarantees will be released pursuant to Section 13.06
and the Notes shall thereafter be deemed not “outstanding” for the purposes of
any direction, waiver, consent or declaration or act of Holders (and the
consequences of any default thereof) in connection with such covenants, but
shall continue to be deemed “outstanding” for all other purposes hereunder (it
being understood that such Notes shall not be deemed outstanding for accounting
purposes).  For this purpose, Covenant
Defeasance means that, with respect to the outstanding Notes, the Issuers may
omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or
by reason of any reference in any such covenant to any other provision herein
or in any other document and such omission to comply shall not constitute a
Default or an Event of Default under Section 6.01, but, except as
specified above, the remainder of this Indenture and such Notes shall be
unaffected thereby.  In addition, upon
the Issuers’ 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) (as it relates to the covenants specified above),
6.01(4), 6.01(5), 6.01(6), 6.01(7) (solely with respect to Restricted
Subsidiaries that are Significant Subsidiaries), 6.01(8) (solely with
respect to Restricted Subsidiaries) and 6.01(9) shall not constitute
Events of Default.

 

Section 8.04                                          Conditions to
Legal or Covenant Defeasance.

 

The
following shall be the conditions to the application of either Section 8.02
or 8.03 to the outstanding Notes:

 

(1)           the Issuers
must irrevocably deposit with the Trustee, in trust, for the benefit of the
Holders of the Notes, cash in U.S. dollars, Government Securities, or a
combination thereof, in such amounts as will be sufficient, in the opinion of a
nationally recognized firm of independent public accountants or a nationally
recognized investment banking firm, to pay and discharge the principal of,
premium, if any, and interest due on the outstanding Notes on the Stated
Maturity thereof or, to the extent the Issuers have previously provided a
notice of redemption with respect to the outstanding Notes, on the applicable
Redemption Date;

 

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

 

88

 

(a)           the Issuers have received from, or there has been
published by, the Internal Revenue Service a ruling; or

 

(b)           since the Issue Date, there has been a change in the
applicable U.S. federal income tax law,

 

in
either case to the effect that, and based thereon such Opinion of Counsel from
independent counsel in the United States shall confirm that (subject to
customary assumptions, qualifications and exclusions) the Holders of the
outstanding Notes will not recognize income, gain or loss for U.S. federal income
tax purposes as a result of such Legal Defeasance and will be subject to U.S.
federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Legal Defeasance had not occurred;

 

(3)           in the case of
Covenant Defeasance, the Issuers shall have delivered to the Trustee an Opinion
of Counsel from independent counsel in the United States (subject to customary
assumptions, qualifications and exclusions) confirming that the Holders of the
Notes will not recognize income, gain or loss for U.S. federal income tax
purposes as a result of such Covenant Defeasance and will be subject to such
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;

 

(5)           such Legal
Defeasance or Covenant Defeasance shall not result in a breach or violation of,
or constitute a Default under any other material agreement to which the Issuers
or any Guarantor is a party or by which the Issuers or any Guarantor is bound;
and

 

(6)           the Issuers
shall have delivered to the Trustee an Officer’s Certificate and an Opinion of
Counsel from independent counsel each stating that all conditions precedent
provided for or relating to the Legal Defeasance or the Covenant Defeasance, as
the case may be, have been complied with.

 

Section 8.05                                         Deposited Money
and Government Securities to Be Held in Trust; Other Miscellaneous Provisions.

 

Subject
to Section 8.06, all money and Government Securities (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 shall 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 Issuers or a Guarantor 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
Issuers shall pay and indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against the cash or Government Securities
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.

 

89

 

Anything
in this Article 8 to the contrary notwithstanding, the Trustee shall
deliver or pay to the Issuers from time to time upon the written request of the
Issuers any money or Government Securities 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 may be the opinion delivered under Section 8.04(2)), 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
Issuers.

 

Any
money deposited with the Trustee or any Paying Agent, or then held by the
Issuers, in trust for the payment of the principal of, premium and Additional
Interest, if any, or interest on any Note and remaining unclaimed for two years
after such principal, and premium and Additional Interest, if any, or interest
has become due and payable shall be paid to the Issuers on their request or (if
then held by the Issuers) shall be discharged from such trust; and the Holder
of such Note shall thereafter look only to the Issuers for payment thereof, and
all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Issuers as trustee thereof, shall thereupon
cease.

 

Section 8.07                                         Reinstatement.

 

If
the Trustee or Paying Agent is unable to apply any U.S. dollars or Government
Securities in accordance with Section 8.04 or 8.05, 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
Issuers’ obligations under this Indenture and the Notes shall be revived and
reinstated as though no deposit had occurred pursuant to Section 8.04 or
8.05 until such time as the Trustee or Paying Agent is permitted to apply all
such money in accordance with Section 8.04 or 8.05, as the case may be; provided
that, if the Issuers makes any payment of principal of, premium and Additional
Interest, if any, or interest on any Note following the reinstatement of their
obligations, the Issuers shall 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, the Issuers, any Guarantor, any other obligor under the
Notes and the Trustee and/or Collateral Agent, as applicable, may amend or
supplement this Indenture, any Guarantee, any Security Document or Notes
without the consent of any Holder:

 

(1)           to evidence the
succession of another Person to the Issuers or a Guarantor, and the assumption
by any such successor of the covenants of the Issuers or such Guarantor in this
Indenture, the Notes, any Guarantee and the Security Documents in accordance
with Section 5.01;

 

(2)           to add to the
covenants of the Issuers, any Guarantor or any other obligor upon the Notes for
the benefit of the Holders of the Notes or to surrender any right or power
conferred upon the Issuers or any Guarantor or any other obligor upon the
Notes, as applicable, in this Indenture, the Notes, any Guarantee or any
Security Document;

 

90

 

(3)           to cure any ambiguity,
or to correct or supplement any provision in this Indenture, the Notes, any
Guarantee or any Security Document which may be defective or inconsistent with
any other provision in this Indenture, the Notes, any Guarantee or any Security
Document;

 

(4)           to make any
other provisions with respect to matters or questions arising under this
Indenture, the Notes, any Guarantee or any Security Document; provided
that, in each case, such provisions shall not materially adversely affect the
interest of the Holders of the Notes;

 

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

 

(6)           to add to the
Collateral securing the Notes or to add a Guarantor under this Indenture;

 

(7)           to evidence and
provide the acceptance of the appointment of a successor Trustee or Collateral
Agent under this Indenture or the Security Documents;

 

(8)           to mortgage,
pledge, hypothecate or grant a Lien in favor of the Collateral Agent for the
benefit of the Holders of the Notes (and the holders or lenders of ABL Liens or
Permitted Additional Pari Passu Obligations) as additional security for the
payment and performance of the Issuers’ and any Guarantor’s obligations under
this Indenture, in any property, or assets, including any of which are required
to be mortgaged, pledged or hypothecated, or in which a security interest is
required to be granted to or for the benefit of the Trustee or the Collateral
Agent pursuant to this Indenture, any of the Security Documents or otherwise;

 

(9)           to provide for
the issuance of Additional Notes in accordance with this Indenture;

 

(10)         to provide for
the release of Collateral from the Note Lien and the Security Documents when
permitted or required by any of the Security Documents, the Intercreditor
Agreement or this Indenture;

 

(11)         to secure any
Permitted Additional Pari Passu Obligations under the Security Documents and to
appropriately include the same in the Intercreditor Agreement; or

 

(12)         in the sole
discretion of the Issuers, to conform any provision of this Indenture or the
Security Documents to the provisions of the “Description of the Notes”
contained in the Offering Memorandum to the extent such provision was intended
to be a verbatim recital of a provision contained herein.

 

The
Holders of a majority in aggregate principal amount of the Notes outstanding
may waive compliance with certain restrictive covenants and provisions of this
Indenture.

 

Section 9.02                                         With Consent of
Holders of Notes.

 

Except
as provided below in this Section 9.02, the Issuers, each Guarantor party
thereto, if any, and the Trustee and/or Collateral Agent, as applicable, may
amend or supplement this Indenture, the Notes, the Guarantees and any Security
Document with the consent of the Holders of at least a majority in principal
amount of the Notes (including Additional Notes, if any) then outstanding
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 and Additional 

 

91

 

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 Guarantees, the Security Documents or the Notes may be waived
with the consent of the Holders of a majority in principal amount of the then
outstanding Notes (including Additional Notes, if any) voting as a single class
(including consents obtained in connection with a tender offer or exchange
offer for, or purchase of, the Notes).  Section 2.08
and Section 2.09 shall determine which Notes are considered to be “outstanding”
for the purposes of this Section 9.02.

 

Without
the consent of each affected Holder of Notes, an amendment or waiver under this
Section 9.02 may not (with respect to any Notes held by a non-consenting
Holder):

 

(1)           change the
Stated Maturity of the principal of, or any installment of interest on, or
change to an earlier date any Redemption Date of, or waive a default in the
payment of the principal of, premium, if any, or interest on, any such Note or
reduce the principal amount thereof or the rate of interest thereon or any
premium payable upon the redemption thereof, or change the coin or currency in
which the principal of any such Note or any premium or the interest thereon is
payable, or impair the right to institute suit for the enforcement of any such
payment after the Stated Maturity thereof (or, in the case of redemption, on or
after the Redemption Date) in each case other than the provisions with respect
to Section 4.09 and an Offer pursuant to Section 4.07;

 

(2)           reduce the
percentage in principal amount of such outstanding Notes, the consent of whose
Holders is required for any such supplemental indenture, or the consent of
whose Holders is required for any waiver or compliance with certain provisions
of this Indenture;

 

(3)           modify any of
the provisions relating to supplemental indentures requiring the consent of
Holders or relating to the waiver of past defaults or relating to the waiver of
certain covenants, except to increase the percentage of such outstanding Notes
required for such actions or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holder of
each such Note affected thereby;

 

(4)           amend or modify
any of the provisions of this Indenture in any manner which subordinates the
Notes issued thereunder in right of payment to any other Indebtedness of the
Issuers or which subordinates any Guarantee in right of payment to any other
Indebtedness of the Guarantor issuing any such Guarantee; or

 

(5)           release any
Guarantee of a Significant Subsidiary except in compliance with the terms of
this Indenture.

 

In
addition, any amendment to, or waiver of, the provision of this Indenture or
any Security Document that has the effect of releasing all or substantially all
of the Collateral from the Note Liens will require consent of the Holders of at
least 75% in aggregate principal amount of the Notes then outstanding
(including consents obtained in connection with a tender offer or exchange
offer for the Notes).

 

Section 9.03                                         Compliance with
Trust Indenture Act.

 

Every
amendment or supplement to this Indenture or the Notes shall be set forth in an
amended or supplemental indenture that complies with the Trust Indenture Act as
then in effect.

 

92

 

Section 9.04                                         Effect of
Consents.

 

An
amendment, supplement or waiver becomes effective in accordance with its terms
and thereafter binds every Holder; provided that any amendment or waiver that
requires the consent of each affected Holder shall not become effective with
respect to any non-consenting Holder.

 

The
Issuers may, but shall not be obligated to, fix a record date for the purpose
of determining the Holders entitled to consent to any amendment, supplement, or
waiver.  If a record date is fixed, then,
notwithstanding the preceding paragraph, those Persons who were Holders at such
record date (or their duly designated proxies), and only such Persons, shall be
entitled to consent to such amendment, supplement, or waiver, whether or not
such Persons continue to be Holders after such record date.

 

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 Issuers 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 shall not affect the
validity and effect of such amendment, supplement or waiver.

 

Section 9.06                                         Trustee to Sign
Amendments, Etc.

 

The
Trustee shall sign any amendment, supplement or waiver authorized pursuant to
this Article 9 if the amendment or supplement does not adversely affect
the rights, duties, liabilities or immunities of the Trustee.  The Issuers may not sign an amendment,
supplement or waiver until the Board of Directors approves it.  In executing any amendment, supplement or
waiver, the Trustee shall receive and (subject to Section 7.01) shall be
fully protected in conclusively relying upon, in addition to the documents
required by Section 15.04, 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 and that such amendment, supplement
or waiver is the legal, valid and binding obligation of the Issuers and any
Guarantors party thereto, enforceable against them in accordance with its
terms, subject to customary exceptions, and complies with the provisions hereof
(including Section 9.03). 
Notwithstanding the foregoing, no Opinion of Counsel will be required
for the Trustee to execute any amendment or supplement adding a new Guarantor
under this Indenture.

 

It
shall not be necessary for the consent of the Holders of Notes under this Article 9
to approve the particular form of any proposed amendment or waiver, but it
shall be sufficient if such consent approves the substance thereof.  The consent of the Collateral Agent shall not
be necessary for any amendment, supplement or waiver to this Indenture, except
for any amendment, supplement or waiver to Article 10 or 11 or as to this
sentence.

 

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

 

93

 

ARTICLE 10

 

INTERCREDITOR AGREEMENT

 

Section 10.01                                   Intercreditor Agreement.

 

Each
Holder by accepting a Note agrees that the Note Liens are subject to the terms
of the Intercreditor Agreement.  The
Holders by accepting a Note hereby authorize 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.

 

Additionally,
provided that, no Event of Default has occurred and is continuing, the Trustee
shall, upon written request of the Company enter into and direct the Collateral
Agent to enter into amendments to the Intercreditor Agreement or an additional
intercreditor agreement with the agent for the holders of any ABL Obligations
on terms and conditions that, in the good faith determination of the Company,
are not less favorable, taken as a whole, to the Holders of Notes than the
terms of the Intercreditor Agreement and thereafter such amended or new
intercreditor agreement shall be deemed to be the Intercreditor Agreement for
all purposes of this Indenture.

 

ARTICLE 11

 

COLLATERAL

 

Section 11.01                                   Security
Documents.

 

The
Indenture Obligations are secured as provided in the Security Documents and
will be secured by Security Documents hereafter.  The Issuers 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 Issuers 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.

 

Section 11.02                                   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 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, perfection,
priority, sufficiency or protection of any Note Liens, 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:

 

94

 

(i)            to act upon directions purported to be delivered to
it by any Person, except in accordance with the Security Documents;

 

(ii)           to foreclose
upon or otherwise enforce any Note Lien; or

 

(iii)          to take any
other action whatsoever with regard to any or all of the Note Liens, Security
Documents or Collateral.

 

Section 11.03                                   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 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, 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:

 

(i)            foreclose upon or otherwise enforce any or all of
the Note Liens;

 

(ii)           enforce any of
the terms of the Security Documents to which the Collateral Agent is a party;
or

 

(iii)          collect and
receive payment of any and all Obligations.

 

Subject
to the Intercreditor Agreement and at the Issuers’ 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 Issuers’ 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.

 

95

 

Section 11.04                                   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.  In addition, the Issuers 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 Issuers’ sole cost and expense, under any one or more of
the following circumstances without the need for any further action by any
Person:

 

(1)           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;

 

(2)           in whole upon (a) satisfaction
and discharge of this Indenture in accordance with Article 14 or (b) a
Legal Defeasance or Covenant Defeasance under Article 8;

 

(3)           in part, as to
any property that (a) is sold, transferred or otherwise disposed of by an
Issuer or any Guarantor (other than to an 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 13.06,
concurrently with the release of such Guarantee or (c) is Excluded
Property;

 

(4)           as to property
that constitutes all or substantially all of the Collateral securing the Notes,
with the consent of Holders of at least 75% in aggregate principal amount of
the Notes then outstanding;

 

(5)           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; or

 

(6)           in part, in
accordance with the applicable provisions of the Security Documents.

 

Section 11.05                                   Filing,
Recording and Opinions.

 

(a)           The Issuers
will comply with the provisions of Trust Indenture Act Sections 314(b) and
314(d), in each case following qualification of this Indenture pursuant to the
Trust Indenture Act, except to the extent not required as set forth in any SEC
regulation or interpretation (including any no-action letter issued by the
Staff of the SEC, whether issued to the Issuers or any other Person).  Following such qualification, to the extent
the Issuers are required to furnish to the Trustee an Opinion of Counsel
pursuant to Trust Indenture Act Section 314(b)(2), the Issuers will
furnish such opinion not more than 60 but not less than 30 days prior to each September 30.

 

(b)           Any release of Collateral
permitted by Section 11.04 will be deemed not to impair the Liens under
this Indenture and the Security Documents in contravention thereof and any
person that is required to deliver any certificate or opinion pursuant to Section 314(d) of
the Trust Indenture Act shall be entitled to rely upon the foregoing as a basis
for delivery of such certificate or opinion. 
The Trustee shall, to the extent permitted by Sections 7.01 and 7.02,
accept as conclusive evidence of compliance with the foregoing provisions the
appropriate statements contained in such certificate or opinion.

 

96

 

(c)           If any Collateral is
released in accordance with this Indenture or any Security Document, the
Trustee will determine whether it has received all documentation required by
Trust Indenture Act Section 314(d) in connection with such release
and, based on such determination will, upon request, deliver a certificate to
the Collateral Agent and the Issuers setting forth such determination.

 

Section 11.06                                   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 11 upon the
Issuers 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 Issuers or a Guarantor or of any officer or
officers thereof required by the provisions of this Article 11; 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 11.07                                   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.

 

ARTICLE 12

 

APPLICATION OF TRUST MONIES

 

Section 12.01                                   Collateral
Account.

 

No
later than 30 days following the first date on which the Issuers or any Guarantor
receives any Trust Monies, 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 Account.  The Collateral 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 Account, and Trust Monies shall include only cash and cash
equivalents required to be deposited into the Collateral Account pursuant to
the terms of this Indenture.  The Issuers
shall cause all Trust Monies to be deposited in the Collateral 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.

 

Section 12.02                                   Withdrawal of
Net Cash Proceeds in Connection with Reinvestments.

 

To
the extent that any Trust Monies consist of Net Cash Proceeds of an Asset Sale,
such Trust Monies may be withdrawn by the Issuers and shall be paid by the
Collateral Agent (upon the direction of the Trustee) to reimburse the Issuers
or Guarantor for expenditures made, or to pay costs to be incurred, by the
Issuers or such Guarantor in connection with a reinvestment of such Net Cash
Proceeds or 

 

97

 

repayment
of Indebtedness with such Net Cash Proceeds, in each case complying with Section 4.07,
upon receipt by the Trustee and the Collateral Agent of the following:

 

An Officer’s Certificate, dated not more than 30 days prior to the date
of the application for the withdrawal and payment of such Trust Monies to the
effect that:

 

(A)          such Net Cash Proceeds that
have been (or will be within thirty (30) Business Days of the requested date of
release) applied in compliance with the requirements of Section 4.07; and

 

(B)           to the extent required by Section 4.07 the
Issuers have taken (or will take not later than thirty (30) Business Days
following the application of such Net Cash 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 Cash
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 4.07).

 

Upon
compliance with the foregoing provisions of this Section 12.02, the
Collateral Agent shall, upon receipt of a written request by the Company (which
may be contained in the Officer’s Certificate), pay an amount of Net Cash
Proceeds constituting Trust Monies equal to the amount specified in the Officer’s
Certificate required by clause (a) of this Section 12.02 as directed
by the Company.

 

Section 12.03                                   Withdrawal of
Net Cash Proceeds to Fund an Offer or Release Following an Offer.

 

To
the extent that any Trust Monies consist of Net Cash Proceeds received by the
Collateral Agent pursuant to the provisions of Section 4.07 and an Offer
has been made in accordance therewith, such Trust Monies may be withdrawn by
the Issuers and shall be paid by the Trustee to the Paying Agent for
application in accordance with Section 4.07 upon receipt by the Trustee
and the Collateral Agent of the following:

 

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 Offer and
the date on which Notes and Permitted Additional Pari Passu Obligations are to
be purchased, and to the effect that:

 

(A)          (x) such Trust Monies
constitute Net Cash Proceeds and (y) pursuant to and in accordance with Section 4.07,
the Issuers have made an Offer; and

 

(B)           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 12.03, the
Collateral Agent shall apply the Trust Monies as directed and specified by the
Issuers, subject to Section 4.07 (including to return to the Issuers any
such amount of Excess Proceeds that are subject to the Offer and which are not
required to be applied to the purchase of Notes, Permitted Additional Pari
Passu Obligations or other Indebtedness pursuant to Section 4.07).

 

98

 

Section 12.04                                    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 Company 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 Company specifying the particular Cash Equivalent to
be sold.  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 Issuers. 
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 its own grossly negligent action, its own grossly
negligent failure to act or its own willful misconduct in complying with this Section 12.04.

 

Section 12.05                                   Application of
Other Trust Monies.

 

The
Collateral Agent shall return all Trust Monies to the Issuers upon any Legal
Defeasance, Covenant Defeasance or satisfaction and discharge of this Indenture
under Section 14.01.  The Collateral
Agent shall have all rights and remedies with respect to the Collateral Account
and any Trust Monies as provided in the Security Documents.

 

ARTICLE 13

 

GUARANTEES

 

Section 13.01                                   Guarantee.

 

Subject
to this Article 13, each of the Guarantors hereby, jointly and severally,
guarantees to each Holder of a Note authenticated and delivered by the Trustee
and to the Trustee and its successors and assigns, irrespective of the validity
and enforceability of this Indenture, the Notes or the obligations of the
Issuers hereunder or thereunder, that: (a) the principal of, interest,
premium and Additional Interest, if any, on the Notes shall 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 Issuers to the Holders or the Trustee
hereunder or thereunder shall be promptly paid in full or performed, all in
accordance with the terms hereof and thereof; and (b) in case of any
extension of time of payment or renewal of any Notes or any of such other
obligations, that same shall 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 shall 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.

 

The
Guarantors hereby agree that their obligations hereunder shall be
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 

 

99

 

hereof
or thereof, the recovery of any judgment against the Issuers, 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 Issuers, any right to require a proceeding
first against the Issuers, protest, notice and all demands whatsoever and
covenants that this Guarantee shall not be discharged except by complete
performance of the obligations contained in the Notes and this Indenture.

 

Each
Guarantor also agrees to pay any and all costs and expenses (including
reasonable attorneys’ fees and expenses) incurred by the Trustee or any Holder
in enforcing any rights under this Section 13.01.

 

If
any Holder or the Trustee is required by any court or otherwise to return to
the Issuers, the Guarantors or any custodian, trustee, liquidator or other
similar official acting in relation to either the Issuers or the Guarantors,
any amount paid either to the Trustee or such Holder, this Guarantee, to the
extent theretofore discharged, shall be reinstated in full force and effect.

 

Each
Guarantor agrees that it shall not be entitled to any right of subrogation in
relation to the Holders in respect of any obligations guaranteed hereby until
payment in full of all obligations guaranteed hereby.  Each Guarantor further agrees that, as
between the Guarantors, on the one hand, and the Holders and the Trustee, on the
other hand, (x) the maturity of the obligations guaranteed hereby may be
accelerated as provided in Article 6 for the purposes of this Guarantee,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby, and (y) in the
event of any declaration of acceleration of such obligations as provided in Article 6,
such obligations (whether or not due and payable) shall forthwith become due
and payable by the Guarantors for the purpose of this Guarantee.  The Guarantors shall have the right to seek
contribution from any non-paying Guarantor so long as the exercise of such
right does not impair the rights of the Holders under the Guarantees.

 

Each
Guarantee shall remain in full force and effect and continue to be effective
should any petition be filed by or against the Issuers for liquidation or
reorganization, should the Issuers become insolvent or make an assignment for
the benefit of creditors or should a receiver or trustee be appointed for all
or any significant part of the Issuers’ assets, and shall, to the fullest
extent permitted by law, continue to be effective or be reinstated, as the case
may be, if at any time payment and performance of the Notes are, pursuant to
applicable law, rescinded or reduced in amount, or must otherwise be restored
or returned by any obligee on the Notes or Guarantees, whether as a “voidable
preference,” “fraudulent transfer” or otherwise, all as though such payment or
performance had not been made.  In the
event that any payment or any part thereof, is rescinded, reduced, restored or
returned, the Notes shall, to the fullest extent permitted by law, be
reinstated and deemed reduced only by such amount paid and not so rescinded,
reduced, restored or returned.

 

In
case any provision of any Guarantee shall be invalid, illegal or unenforceable,
the validity, legality, and enforceability of the remaining provisions shall
not in any way be affected or impaired thereby.

 

Each
payment to be made by a Guarantor in respect of its Guarantee shall be made
without set-off, counterclaim, reduction or diminution of any kind or nature.

 

As
used in this Section 13.01, the term “Trustee” shall also include each of
the Paying Agent, Registrar and Transfer Agent, as applicable.

 

100

 

Section 13.02                                   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 Guarantee of such Guarantor not
constitute a fraudulent transfer or conveyance for purposes of 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
Guarantee.  To effectuate the foregoing
intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree
that the obligations of each Guarantor shall be limited to the maximum amount
as 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 13, result in the
obligations of such Guarantor under its Guarantee not constituting a fraudulent
conveyance or fraudulent transfer under applicable law.  Each Guarantor that makes a payment under its
Guarantee shall be entitled upon payment in full of all guaranteed obligations
under this Indenture to a contribution from each other Guarantor in an amount
equal to such other Guarantor’s pro rata
portion of such payment based on the respective net assets of all the
Guarantors at the time of such payment determined in accordance with GAAP.

 

Section 13.03                                   Execution and
Delivery.

 

To
evidence its Guarantee set forth in Section 13.01, each Guarantor hereby
agrees that this Indenture shall be executed on behalf of such Guarantor by the
Chief Executive Officer, the President, the Chief Financial Officer, the
Treasurer, the Controller, any Executive Vice President, any Senior Vice
President, any Vice President, the Secretary or any Assistant Secretary of the
Guarantor or the sole member of the Guarantor, as the case may be, or any other
officers of such Guarantor or such sole member, as the case may be, acting at
the direction of any such foregoing officer. 
Each Guarantor hereby agrees to execute a Notation of Guarantee
substantially in the form included in Exhibit A hereto on each Note
authenticated and delivered by the Trustee.

 

Each
Guarantor hereby agrees that its Guarantee set forth in Section 13.01
shall remain in full force and effect notwithstanding the absence of the
endorsement of any notation of such Guarantee on the Notes.

 

If
an Officer whose signature is on this Indenture no longer holds that office at
the time the Trustee authenticates the Note, the Guarantee shall be valid
nevertheless.

 

The
delivery of any Note by the Trustee, after the authentication thereof hereunder,
shall constitute due delivery of the Guarantee set forth in this Indenture on
behalf of the Guarantors.

 

Section 13.04                                   Subrogation.

 

Each
Guarantor shall be subrogated to all rights of Holders of Notes against the
Issuers in respect of any amounts paid by any Guarantor pursuant to the
provisions of Section 13.01; provided that, if an Event of Default
has occurred and is continuing, no Guarantor shall be entitled to enforce or
receive any payments arising out of, or based upon, such right of subrogation
until all amounts then due and payable by the Issuers under this Indenture or
the Notes shall have been paid in full.

 

101

 

Section 13.05                                   Benefits
Acknowledged.

 

Each
Guarantor acknowledges that it will receive direct and indirect benefits from
the financing arrangements contemplated by this Indenture and that the
guarantee and waivers made by it pursuant to its Guarantee are knowingly made
in contemplation of such benefits.

 

Section 13.06                                   Release of
Guarantees.

 

Notwithstanding
any other provision of this Indenture, any Guarantee by a Restricted Subsidiary
(and all Liens securing the same) shall be automatically and unconditionally
released and discharged upon:

 

(1)           satisfaction
and discharge of this Indenture in compliance with Article 14;

 

(2)           a Legal
Defeasance or Covenant Defeasance of this Indenture;

 

(3)           such Subsidiary
ceasing to constitute a Restricted Subsidiary in a transaction that complies
with this Indenture (whether upon a sale, exchange, transfer or disposition of
Capital Stock in such Restricted Subsidiary (including by way of merger or
consolidation), or the designation of such Restricted Subsidiary as an
Unrestricted Subsidiary or the sale or disposition of all of the assets of such
Guarantor made in compliance with this Indenture);

 

(4)           the merger or
dissolution of a Guarantor into the Issuers or another Guarantor or the
transfer or sale of all or substantially all of the assets of a Guarantor to
the Issuers or another Guarantor; or

 

(5)           in the case of
any Guarantee provided pursuant to the last sentence of Section 4.08 such
Subsidiary no longer guaranteeing the payment of any Indebtedness of the
Company or any other Guarantor.

 

ARTICLE 14

 

SATISFACTION AND DISCHARGE

 

Section 14.01                                   Satisfaction
and Discharge.

 

This
Indenture shall be discharged and shall cease to be of further effect (except
as to any surviving rights of registration of transfer or exchange of the Notes
as is herein expressly provided) as to all Notes, when:

 

(1)           either (A) all
such Notes theretofore authenticated and delivered (except lost, stolen or
destroyed Notes which have been replaced or paid or Notes whose payment has
been deposited in trust or segregated and held in trust by the Issuers and
thereafter repaid to the Issuers or discharged from such trust as provided for
in this Indenture) have been delivered to the Trustee for cancellation or (B) all
Notes not theretofore delivered to the Trustee for cancellation (a) have
become due and payable, (b) will become due and payable at their Stated
Maturity within one year, or (c) are to be called for redemption within
one year under arrangements satisfactory to the Trustee for the giving of
notice of redemption by the Trustee in the name, and at the expense, of the
Issuers; or

 

102

 

(2)           the Issuers or
any Guarantor has irrevocably deposited or caused to be deposited with the
Trustee as trust funds in trust an amount in United States dollars or
Government Securities or a combination thereof sufficient to pay and discharge
the entire indebtedness on the Notes not theretofore delivered to the Trustee
for cancellation, including principal of, premium, if any, and accrued interest
at such Maturity, Stated Maturity or Redemption Date;

 

(3)           after giving
effect thereto, no Default or Event of Default shall have occurred and be
continuing under any Indebtedness of the Issuers or any Restricted Subsidiary
on the date of such deposit;

 

(4)           such
satisfaction and discharge will not result in a breach or violation of, or
constitute a default under any other material agreement or instrument to which
the Issuers or any Restricted Subsidiary is a party or by which the Issuers or
any Restricted Subsidiary is bound;

 

(5)           the Issuers or
any Guarantor has paid or caused to be paid all other sums payable under this
Indenture by the Issuers; and

 

(6)           the Issuers
have delivered to the Trustee an Officer’s Certificate and an Opinion of
Counsel from independent counsel, each stating that all conditions precedent
under this Section 14.01 relating to the satisfaction and discharge of
such Indenture have been complied with.

 

Notwithstanding
the satisfaction and discharge of this Indenture, if money shall have been
deposited with the Trustee pursuant to clause (2) of this Section 14.01,
the provisions of Section 14.02 and Section 8.06 shall survive.

 

Section 14.02                                   Application of
Trust Money.

 

Subject
to the provisions of Section 8.06, all money or Government Securities
deposited with the Trustee pursuant to Section 14.01 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 Issuers acting as their 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
Securities in accordance with Section 14.01 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
Issuers’ 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 14.01;
provided that if the Issuers have made any payment of principal of,
premium and Additional Interest, if any, or interest on any Notes because of
the reinstatement of their obligations, the Issuers shall be subrogated to the
rights of the Holders of such Notes to receive such payment from the money or
Government Securities held by the Trustee or Paying Agent.

 

103

 

ARTICLE 15

 

MISCELLANEOUS

 

Section 15.01                                   Trust Indenture
Act Controls.

 

If
any provision of this Indenture limits, qualifies or conflicts with the duties
imposed by Trust Indenture Act Section 318(c), the imposed duties shall
control.

 

Section 15.02                                   Notices.

 

Any
notice or communication by the Issuers, any Guarantor, the Collateral Agent or
the Trustee to the others is duly given if in writing and delivered in person
or mailed by first-class mail (registered or certified, return receipt
requested), fax or overnight air courier guaranteeing next day delivery, to the
others’ address:

 

If to the Issuers and/or any Guarantor:

 

c/o Tops Holding Corporation

PO Box 1027

Buffalo, New York  14240-1027

Facsimile:  (716) 635-5102

Attention:  Kevin Darrington

 

If to the Trustee:

 

U.S. Bank National
Association

100 Wall Street

Suite 1600

New York, New York  10005

Fax No.:  (212) 509-3384

Attention:  Beverly A. Freeney

 

If to the Collateral Agent:

 

U.S. Bank National
Association

100 Wall Street

Suite 1600

New York, New York  10005

Fax No.:    (212) 509-3384

Attention:  Beverly A. Freeney

 

The
Issuers, 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) shall be deemed
to have been duly given: at the time delivered by hand, if personally
delivered; five calendar days after being deposited in the mail, postage
prepaid, if mailed by first-class mail; when receipt acknowledged, if faxed;
and the next Business Day after timely delivery to the courier, if sent by
overnight air courier guaranteeing next day delivery; provided that any
notice or communication delivered to the Trustee shall be deemed effective upon
actual receipt thereof.

 

104

 

Any
notice or communication to a Holder shall be mailed by first-class mail,
certified or registered, return receipt requested, or by overnight air courier
guaranteeing next day delivery to its address shown on the register kept by the
Registrar.  Any notice or communication
shall also be so mailed to any Person described in Trust Indenture Act Section 313(c),
to the extent required by the Trust Indenture Act.  Failure to mail a notice or communication to
a Holder or any defect in it shall not affect its sufficiency with respect to
other Holders.

 

If
the Issuers mails a notice or communication to Holders, it shall mail a copy to
the Trustee and each Agent at the same time.

 

Section 15.03                                   Communication
by Holders of Notes with Other Holders of Notes.

 

Holders
may communicate pursuant to Trust Indenture Act Section 312(b) with
other Holders with respect to their rights under this Indenture or the
Notes.  The Issuers, the Trustee, the
Registrar and anyone else shall have the protection of Trust Indenture Act Section 312(c).

 

Section 15.04                                   Certificate and
Opinion as to Conditions Precedent.

 

Upon
any request or application by the Issuers or any of the Guarantors to the
Trustee to take any action under this Indenture, the Issuers or such Guarantor,
as the case may be, shall furnish to the Trustee:

 

(a)           an Officer’s Certificate in form and substance
reasonably satisfactory to the Trustee (which shall include the statements set
forth in Section 15.05) 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

 

(b)           an Opinion of
Counsel in form and substance reasonably satisfactory to the Trustee (which
shall include the statements set forth in Section 15.05) stating that, in
the opinion of such counsel, all such conditions precedent and covenants have
been satisfied.

 

Section 15.05                                   Statements
Required in Certificate or Opinion.

 

Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (other than a certificate provided pursuant to
Trust Indenture Act Section 314(a)(4)) shall comply with the provisions of
Trust Indenture Act Section 314(e) and shall include:

 

(a)           a statement that the Person making such certificate
or opinion has read such covenant or condition;

 

(b)           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;

 

(c)           a statement
that, in the opinion of such Person, he or she has made such examination or
investigation as is necessary to enable him to express an informed opinion as
to whether or not such covenant or condition has been complied with (and, in
the case of an Opinion of Counsel, may be limited to reliance on an Officer’s
Certificate as to matters of fact); and

 

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

 

105

 

Section 15.06                                   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 15.07                                   No Personal
Liability of Directors, Officers, Employees and Stockholders.

 

No
director, officer, employee, member or stockholder of the Issuers or any
Guarantor, as such, will have any liability for any obligations of the Issuers
or the Guarantors under the Notes, this Indenture, the Guarantees, 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.

 

Section 15.08                                   Governing Law;
Waiver of Jury Trial.

 

THIS
INDENTURE, THE NOTES AND ANY GUARANTEE WILL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

EACH
OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE
TRANSACTION CONTEMPLATED HEREBY.

 

Section 15.09                                   Force Majeure.

 

In
no event shall the Trustee, Paying Agent, Registrar or Transfer Agent be
responsible or liable for any failure or delay in the performance of its
obligations under this Indenture arising out of or caused by, directly or
indirectly, forces beyond its reasonable control, including without limitation
strikes, work stoppages, accidents, acts of war or terrorism, civil or military
disturbances, nuclear or natural catastrophes or acts of God, and
interruptions, loss or malfunctions of utilities, communications or computer
(software or hardware) services.

 

Section 15.10                                   Successors.

 

All
agreements of the Issuers in this Indenture and the Notes shall bind its
successors.  All agreements of the
Trustee and the Paying Agent, Registrar and Transfer Agent in this Indenture
shall bind their respective successors. 
All agreements of each Guarantor in this Indenture shall bind its
successors, except as otherwise provided in Section 13.06.  The provisions of Article 11 referring
to the Collateral Agent shall inure to the benefit of such Collateral Agent.

 

Section 15.11                                   Severability.

 

In
case any provision in this Indenture or in the Notes shall be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

Section 15.12                                   Counterpart
Originals.

 

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

 

106

 

a
signature page to this Indenture by facsimile, email or other electronic
means shall be effective as delivery of a manually executed counterpart of this
Indenture.

 

Section 15.13                                   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 shall in no way
modify or restrict any of the terms or provisions hereof.

 

Section 15.14                                   Qualification
of Indenture.

 

The
Issuers and the Guarantors shall qualify this Indenture under the Trust
Indenture Act in accordance with and to the extent required by the terms and
conditions of the Registration Rights Agreement and shall pay all reasonable
costs and expenses (including attorneys’ fees and expenses for the Issuers, the
Guarantors and the Trustee) incurred in connection therewith, including, but
not limited to, costs and expenses of qualification of this Indenture and the
Notes and printing this Indenture and the Notes.  The Trustee shall be entitled to receive from
the Issuers and the Guarantors any such Officer’s Certificates, Opinions of
Counsel or other documentation as it may reasonably request in connection with
any such qualification of this Indenture under the Trust Indenture Act.

 

Section 15.15                                    USA Patriot Act

 

The
parties hereto acknowledge that in accordance with Section 326 of the USA
Patriot Act the Trustee and Agents, like all financial institutions and in
order to help fight the funding of terrorism and money laundering, are required
to obtain, verify, and record information that identifies each person or legal
entity that establishes a relationship or opens an account.  The parties to this agreement agree that they
will provide the Trustee and the Agents with such information as they may
request in order to satisfy the requirements of the USA Patriot Act.

 

[Signatures on following pages]

 

107

 

	
   

  	
   

  	
  TOPS
  HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Eric J. Kanter

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Eric
  J. Kanter

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TOPS
  MARKETS, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Frank Curci

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Frank
  Curci

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  

 

Signature
Page to Indenture

 

 

 

	
   

  	
  ARP
  BRADFORD LLC

  
	
   

  	
   

  
	
   

  	
  By:    Tops
  Markets, LLC, its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Frank Curci

  
	
   

  	
   

  	
  Name:

  	
  Frank
  Curci

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BATH
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Tops
  Markets, LLC, its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Frank Curci

  
	
   

  	
   

  	
  Name:

  	
  Frank
  Curci

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TOPS
  GIFT CARD COMPANY, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Frank Curci

  
	
   

  	
   

  	
  Name:

  	
  Frank
  Curci

  
	
   

  	
   

  	
  Title:

  	
  President

  

 

Signature
Page to Indenture

 

 

	
   

  	
   

  	
   

  
	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION, as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Beverly A. Freeney

  
	
   

  	
   

  	
  Name:

  	
  Beverly
  A. Freeney

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION, as Collateral 

  Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Beverly A. Freeney

  
	
   

  	
   

  	
  Name:

  	
  Beverly
  A. Freeney

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
					

 

EXHIBIT A-1

 

[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 IAI 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-1-1

 

CUSIP  [                                ]

 

ISIN  [                                ](1)

 

[RULE 144A][REGULATION S] GLOBAL NOTE

10.125% Senior Secured Notes due 2015

 

	
  No.             

  	
   

  	
  [$                            ]

  

 

TOPS HOLDING CORPORATION

and

TOPS MARKETS, LLC

 

promise
to pay to CEDE & CO. or registered assigns, the principal sum [set
forth on the Schedule of Exchanges of Interests in the Global Note attached
hereto] [of
                                                
United States Dollars] on October 15, 2015.

 

Interest
Payment Dates:  April 15 and October 15

 

Record
Dates:  April 1 and October 1

 

(1)                                  Rule 144A Note
CUSIP:  89078W AA7

Rule 144A Note ISIN:  US89078WAA71

Regulation S Note CUSIP:  U89095 AA8

Regulation S Note ISIN:  USU89095AA83

Exchange Note CUSIP:  89078W AB5

Exchange Note ISIN:  US89078WAB54

 

A-1-2

 

	
  IN WITNESS HEREOF, the Issuers have caused this instrument to be duly
  executed.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TOPS
  HOLDING CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TOPS
  MARKETS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

A-1-3

 

	
  This
  is one of the Notes referred to in the within-mentioned Indenture:

  
	
   

  
	
  Dated: 
  [               ]

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION, as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signatory

  

 

A-1-4

 

[Back of Note]

 

10.125% Senior Secured Notes due 2015

 

Capitalized
terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

 

1.             INTEREST.  Tops Holding Corporation, a Delaware
corporation (the “Company”) and Tops Markets, LLC, a New York limited
liability company (“Tops Markets” and, together with the Company, the “Issuers”),
promise to pay interest on the principal amount of this Note at 10.125% per
annum from October 9, 2009 until maturity and shall pay the Additional
Interest, if any, payable pursuant to the Registration Rights Agreement
referred to below.  The Issuers 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 date of issuance; provided that the first Interest
Payment Date shall be April 15, 2010. 
The Issuers 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 interest rate on the Notes; they shall 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 interest rate on the Notes. 
Interest will be computed on the basis of a 360-day year comprised of
twelve 30-day months.

 

2.             METHOD OF PAYMENT.  The Issuers will pay interest on the Notes
and Additional Interest, if any, to the Persons who are registered Holders of
Notes at the close of business on the April 1 or October 1 (whether
or not a Business Day), as the case may be, immediately preceding the Interest
Payment Date, even if such Notes are canceled after such record date and on or
before such Interest Payment Date, except as provided in Section 2.12 of
the Indenture with respect to defaulted interest.  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 Issuers 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.             PAYING AGENT AND
REGISTRAR.  Initially, U.S. Bank National
Association, will act as Paying Agent and Registrar.  The Issuers may change any Paying Agent or
Registrar without notice to the Holders. 
The Issuers or any of their Subsidiaries may act in any such capacity.

 

4.             INDENTURE.  The Issuers issued the Notes under an
Indenture, dated as of October 9, 2009 (the “Indenture”), among the
Issuers, the Guarantors named therein, the Trustee and the Collateral
Agent.  This Note is one of a duly
authorized issue of notes of the Issuers designated as their 10.125% Senior
Secured Notes due 2015.  The Issuers
shall be entitled to issue Additional Notes pursuant to Section 2.01 of
the Indenture.  The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939, as amended (the “Trust
Indenture Act”).  The Notes are
subject to all such terms, and Holders are referred to the Indenture and such
Act for a statement of such terms.  To
the extent any provision of this Note conflicts with the express provisions of
the Indenture, the provisions of the Indenture shall govern and be controlling.

 

A-1-5

 

5.             OPTIONAL REDEMPTION.

 

(a)           At any time prior to October 15,
2012, the Issuers may redeem all or a portion of the Notes, on not less than 30
nor more than 60 days’ prior notice, in amounts of $1,000 or an integral
multiple thereof, at a price equal to 100% of the aggregate principal amount of
the Notes to be redeemed plus the Applicable Premium as of, and accrued and
unpaid interest, if any, to (but not including) the Redemption Date, subject to
the rights of holders of record on relevant Record Dates to receive interest
due on an Interest Payment Date.

 

(b)           On or after October 15,
2012, the Issuers may redeem all or a portion of the Notes, on not less than 30
nor more than 60 days’ prior notice, in amounts of $1,000 or an integral multiple
thereof, at the following redemption prices (expressed as percentages of the
principal amount), together with accrued and unpaid interest, if any, to (but
not including) the Redemption Date subject to the rights of holders of record
on relevant Record Dates to receive interest due on an Interest Payment Date,
if redeemed during the 12-month period beginning October 15 of the
years indicated below:

 

	
  Year

  	
   

  	
  Redemption

  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2012

  	
   

  	
  105.063

  	
  %

  
	
  2013

  	
   

  	
  102.531

  	
  %

  
	
  2014 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(c)           In addition, at any time
prior to October 15, 2012, the Issuers, at their option, may use the net
proceeds of one or more Equity Offerings to redeem up to an aggregate of 35% of
the aggregate principal amount of Notes issued under this Indenture (including any
Additional Notes) at a redemption price equal to 110.125% of the aggregate
principal amount of the Notes redeemed, plus accrued and unpaid interest, if
any, to (but not including) the Redemption Date subject to the rights of
holders of record on relevant Record Dates to receive interest due on an
Interest Payment Date; provided that at least 65% of the aggregate
principal amount of Notes (calculated after giving effect to the issuance of
any Additional Notes) must remain outstanding immediately after the occurrence
of such redemption and such redemption is within 120 days of the closing of the
Equity Offering.

 

(d)           If less than all of the
Notes are to be redeemed, the Trustee shall select the Notes to be redeemed in
compliance with the requirements of the principal national security exchange,
if any, on which the Notes are listed, or if the Notes are not listed, on a pro
rata basis, by lot or by any other method the Trustee shall deem fair and
reasonable.  Notes redeemed in part must
be redeemed only in integral multiples of $1,000 and no Note with a principal
amount of less than $2,000 will be redeemed in part.

 

(e)           In addition to the Issuers’
rights to redeem the Notes as set forth above, the Issuers may purchase Notes
in open-market transactions, tender offers or otherwise

 

6.             MANDATORY REDEMPTION.  The Issuers shall not be required to make
mandatory redemption or sinking fund payments with respect to the Notes.

 

7.             NOTICE OF REDEMPTION.  Subject to Section 3.03 of the
Indenture, notice of redemption will be mailed by first-class mail at least 30
days but not more than 60 days before the Redemption Date (except that
redemption notices may be mailed more than 60 days prior to a Redemption Date
if the notice is issued in connection with Article 8 or Article 14 of
the Indenture) to each Holder whose Notes are to be redeemed at its registered
address.  Notes in denominations larger
than $2,000 may 

 

A-1-6

 

be
redeemed in part but only in whole multiples of $1,000 in excess thereof,
unless all of the Notes held by a Holder are to be redeemed.  On and after the Redemption Date interest
ceases to accrue on Notes or portions thereof called for redemption.

 

8.             OFFERS TO REPURCHASE.

 

(a)           If a Change of Control
occurs, each Holder of Notes will have the right to require the Issuers to
purchase all or any part (in integral multiples of $1,000 except that no
purchase will be permitted that would result in a Note having a remaining
principal amount of less than $2,000) of such Holder’s Notes pursuant to a
Change of Control offer.  In the Change
of Control offer, the Issuers will offer to purchase all of the Notes, at a
purchase price in cash in an amount equal to 101% of the principal amount of such
Notes, plus accrued and unpaid interest, if any, to (but not including) the
date of purchase (subject to the rights of Holders of record on relevant Record
Dates to receive interest due on an Interest Payment Date).  The Change of Control offer shall be made in
accordance with Section 4.09 of the Indenture.

 

(b)           Under certain circumstances
described in the Indenture, the Issuers will be required to apply the proceeds
of Asset Sales to the repayment of the Notes and Permitted Additional Pari
Passu Indebtedness.  The offer shall be
made in accordance with Section 4.07 of the Indenture

 

9.             DENOMINATIONS, TRANSFER,
EXCHANGE.  The Notes are in registered
form without coupons in denominations of $2,000 and integral multiples of
$1,000 in excess thereof.  The transfer of
Notes may be registered and Notes may be exchanged as provided in the
Indenture.  The Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements
and transfer documents and the Issuers may require a Holder to pay any taxes
and fees required by law or permitted by the Indenture.  The Issuers need not exchange or register the
transfer of any Notes or portion of Notes selected for redemption, except for
the unredeemed portion of any Notes being redeemed in part.  Also, the Issuers need not exchange or
register the transfer of any Notes for a period of 15 days before the mailing
of a notice of redemption of Notes to be redeemed.

 

10.           PERSONS DEEMED OWNERS.  The registered Holder of a Note may be
treated as its owner for all purposes.

 

11.           AMENDMENT, SUPPLEMENT AND
WAIVER.  The Indenture, the Guarantees or
the Notes may be amended or supplemented as provided in the Indenture.

 

12.           DEFAULTS AND REMEDIES.  The Events of Default relating to the Notes
are defined in Section 6.01 of the Indenture.  If any Event of Default (other than as
specified in Section 6.01(7) or 6.01(8) of the Indenture with
respect to an Issuer) shall occur and be continuing with respect to the
Indenture, the Trustee or the Holders of not less than 25% in aggregate principal
amount of the Notes then outstanding may, and the Trustee at the request of
such Holders shall, declare all unpaid principal of, premium, if any, and
accrued interest on all Notes to be due and payable immediately, by a notice in
writing to the Issuers (and to the Trustee if given by the holders of the
Notes) and upon any such declaration, such principal, premium, if any, and
interest shall become due and payable immediately.  Notwithstanding the foregoing, in the case of
an Event of Default as specified in Section 6.01(7) or 6.01(8), with
respect to an Issuer occurs and is continuing, then all the Notes shall
automatically become and be due and payable immediately in an amount equal to
the principal amount of the Notes, together with accrued and unpaid interest,
if any, to the date the Notes become due and payable, without any declaration
or other act on the part of the Trustee or any holder.  Holders may not enforce the Indenture, the
Notes or the Guarantees except as provided in the Indenture.  Subject to certain limitations, Holders of a
majority in aggregate principal amount of the then outstanding Notes may direct
the Trustee in its exercise of any trust or 

 

A-1-7

 

power.  The Trustee may withhold from Holders of the
Notes notice of any continuing Default (except a Default relating to the
payment of principal, premium, if any, Additional Interest, if any, or
interest) if it determines that withholding notice is in their interest.  The Holders of a majority in aggregate
principal amount of the Notes then outstanding by notice to the Trustee may on
behalf of the Holders of all of the Notes waive any existing Default or and its
consequences under the Indenture except a continuing Default in payment of the
principal of, premium, if any, Additional Interest, if any, or interest on, any
of the Notes held by a non-consenting Holder. 
The Issuers and each Guarantor (to the extent that such Guarantor is so
required under the Trust Indenture Act) are required to deliver to the Trustee
annually a statement regarding compliance with the Indenture, and the Issuers
are required within five (5) Business Days after becoming aware of any
Default, to deliver to the Trustee a statement specifying such Default and what
action the Issuers propose to take with respect thereto.

 

13.           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.

 

14.           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 forth in the Registration Rights
Agreement, including the right to receive Additional Interest (as defined in
the Registration Rights Agreement).

 

15.           GOVERNING LAW.  THIS INDENTURE, THE NOTES AND ANY GUARANTEE
WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK.

 

16.           CUSIP/ISIN NUMBERS.  Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Issuers have
caused CUSIP/ISIN numbers to be printed on the Notes and the Trustee may use
CUSIP/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.

 

The
Issuers 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 Issuers at the
following address:

 

Tops Holding Corporation

PO Box 1027

Buffalo, New York  14240-1027

Facsimile:  (716) 635-5102

Attention:  Kevin Darrington

 

A-1-8

 

ASSIGNMENT FORM

 

To
assign this Note, fill in the form below:

 

	
  (I) or
  (we) assign and transfer this Note to:

  	
   

  
	
   

  	
  (Insert assignee’ 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 Issuers. 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-1-9

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If
you want to elect to have this Note purchased by the Issuers pursuant to Section 4.07
or 4.09 of the Indenture, check the appropriate box below:

 

	
  o
  Section 4.07

  	
   

  	
  o Section 4.09

  

 

If
you want to elect to have only part of this Note purchased by the Issuers
pursuant to Section 4.07 or Section 4.09 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-1-10

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE 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:

 

	
  Date
  of

  Exchange

  	
   

  	
  Amount of

  decrease in

  Principal Amount

  of this Global Note

  	
   

  	
  Amount of increase

  in Principal

  Amount of this

  Global Note

  	
   

  	
  Principal Amount of

  this Global Note

  following such

  decrease or increase

  	
   

  	
  Signature of

  authorized signatory

  of Trustee or

  Notes Registrar

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

*This
schedule should be included only if the Note is issued in global form.

 

A-1-11

 

Notation of Guarantee

 

Pursuant
to the Indenture, dated as of October 9, 2009 (the “Indenture”),
among Tops Holding Corporation (the “Company”), Tops Markets, LLC (“Tops
Markets” and, together with the Company, the “Issuers”), the
Guarantors named therein, the Trustee and the Collateral Agent, each Guarantor,
subject to the provisions of Article 13 of the Indenture, hereby, jointly
and severally, guarantees to each Holder of a Note authenticated and delivered
by the Trustee and to the Trustee and its successors and assigns, irrespective
of the validity and enforceability of the Indenture, the Notes or the obligations
of the Issuers thereunder, that: (a) the principal of, interest, premium
and Additional Interest, if any, on the Notes shall 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 Issuers to the Holders or the Trustee
hereunder or thereunder shall be promptly paid in full or performed, all in
accordance with the terms hereof and thereof; and (b) in case of any
extension of time of payment or renewal of any Notes or any of such other
obligations, the same shall be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, 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 shall 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.

 

 

	
   

  	
   

  	
  [                                                  ]

  
	
   

  	
   

  	
  as
  Guarantors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

A-1-12

EXHIBIT A-2

 

[Face of Regulation S Temporary Note]

 

[Insert
Regulation S Temporary Global Note Legend]

 

[Insert
the Global Note Legend]

 

[Insert
the Private Placement Legend]

 

[Insert
the OID Legend]

 

[Insert
the IAI Note Legend, if applicable, pursuant to the provisions of the
Indenture]

 

A-2-1

 

CUSIP  U89095 AA8

ISIN  USU89095AA83

 

[TEMPORARY REGULATION S] 

10.125% Senior Secured Notes due 2015

 

	
  No.               

  	
   

  	
  [$                            ]

  

 

TOPS HOLDING CORPORATION

and

TOPS MARKETS, LLC

 

promise
to pay to CEDE & CO. or registered assigns, the principal sum [set
forth on the Schedule of Exchanges of Interests in the Regulation S Temporary
Global Note attached hereto] [of
                                                
United States Dollars] on October 15, 2015.

 

Interest
Payment Dates:  April 15 and October 15

 

Record
Dates:  April 1 and October 1

 

A-2-2

 

	
  IN WITNESS HEREOF, the Issuers have caused this instrument to be duly
  executed.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TOPS
  HOLDING CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TOPS
  MARKETS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

A-2-3

 

	
  This
  is one of the Notes referred to in the within-mentioned Indenture:

  
	
   

  
	
  Dated: 
  [               ]

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION, as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signatory

  

 

A-2-4

 

[Back of Note]

 

10.125% Senior Secured Notes due 2015

 

Capitalized
terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

 

1.             INTEREST.  Tops Holding Corporation, a Delaware
corporation (the “Company”) and Tops Markets, LLC, a New York limited
liability company (“Tops Markets” and, together with the Company, the “Issuers”),
promise to pay interest on the principal amount of this Note at 10.125% per
annum from October 9, 2009 until maturity and shall pay the Additional
Interest, if any, payable pursuant to the Registration Rights Agreement
referred to below.  The Issuers 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 date of issuance; provided that the first Interest
Payment Date shall be April 15, 2010. 
The Issuers 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 interest rate on the Notes; they shall 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 interest rate on the Notes. 
Interest will be computed on the basis of a 360-day year comprised of
twelve 30-day months.

 

Until
this Regulations S Temporary Global Note is exchanged for one or more
Regulation S Permanent Global Notes, the Holder hereof shall not be entitled to
receive payments of interest hereon; until so exchanged in full, this
Regulation S Temporary Global Note shall in all other respects be entitled to
the same benefits as the other Notes under the Indenture.

 

2.             METHOD OF PAYMENT.  The Issuers will pay interest on the Notes
and Additional Interest, if any, to the Persons who are registered Holders of
Notes at the close of business on the April 1 or October 1 (whether
or not a Business Day), as the case may be, immediately preceding the Interest
Payment Date, even if such Notes are canceled after such record date and on or
before such Interest Payment Date, except as provided in Section 2.12 of
the Indenture with respect to defaulted interest.  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 Issuers 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.             PAYING AGENT AND
REGISTRAR.  Initially, U.S. Bank National
Association, will act as Paying Agent and Registrar.  The Issuers may change any Paying Agent or
Registrar without notice to the Holders. 
The Issuers or any of their Subsidiaries may act in any such capacity.

 

4.             INDENTURE.  The Issuers issued the Notes under an
Indenture, dated as of October 9, 2009 (the “Indenture”), among the
Issuers, the Guarantors named therein, the Trustee and the Collateral
Agent.  This Note is one of a duly
authorized issue of notes of the Issuers designated as their 10.125% Senior
Secured Notes due 2015.  The Issuers
shall be entitled to issue Additional Notes pursuant to Section 2.01 of
the Indenture.  The terms of the Notes
include those stated in the Indenture and those 

 

A-2-5

 

made
part of the Indenture by reference to the Trust Indenture Act of 1939, as
amended (the “Trust Indenture Act”). 
The Notes are subject to all such terms, and Holders are referred to the
Indenture and such Act for a statement of such terms.  To the extent any provision of this Note
conflicts with the express provisions of the Indenture, the provisions of the
Indenture shall govern and be controlling.

 

5.             OPTIONAL REDEMPTION.

 

(a)           At any time prior to October 15,
2012, the Issuers may redeem all or a portion of the Notes, on not less than 30
nor more than 60 days’ prior notice, in amounts of $1,000 or an integral
multiple thereof, at a price equal to 100% of the aggregate principal amount of
the Notes to be redeemed plus the Applicable Premium as of, and accrued and
unpaid interest, if any, to (but not including) the Redemption Date, subject to
the rights of holders of record on relevant Record Dates to receive interest
due on an Interest Payment Date.

 

(b)           On or after October 15,
2012, the Issuers may redeem all or a portion of the Notes, on not less than 30
nor more than 60 days’ prior notice, in amounts of $1,000 or an integral
multiple thereof, at the following redemption prices (expressed as percentages
of the principal amount), together with accrued and unpaid interest, if any, to
(but not including) the Redemption Date subject to the rights of holders of
record on relevant Record Dates to receive interest due on an Interest Payment
Date, if redeemed during the 12-month period beginning October 15 of
the years indicated below:

 

	
  Year

  	
   

  	
  Redemption

  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2012

  	
   

  	
  105.063

  	
  %

  
	
  2013

  	
   

  	
  102.531

  	
  %

  
	
  2014 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(c)           In addition, at any time
prior to October 15, 2012, the Issuers, at their option, may use the net
proceeds of one or more Equity Offerings to redeem up to an aggregate of 35% of
the aggregate principal amount of Notes issued under this Indenture (including
any Additional Notes) at a redemption price equal to 110.125% of the aggregate
principal amount of the Notes redeemed, plus accrued and unpaid interest, if
any, to (but not including) the Redemption Date subject to the rights of
holders of record on relevant Record Dates to receive interest due on an
Interest Payment Date; provided that at least 65% of the aggregate
principal amount of Notes (calculated after giving effect to the issuance of
any Additional Notes) must remain outstanding immediately after the occurrence
of such redemption and such redemption is within 120 days of the closing of the
Equity Offering.

 

(d)           If less than all of the
Notes are to be redeemed, the Trustee shall select the Notes to be redeemed in
compliance with the requirements of the principal national security exchange,
if any, on which the Notes are listed, or if the Notes are not listed, on a pro
rata basis, by lot or by any other method the Trustee shall deem fair and
reasonable.  Notes redeemed in part must
be redeemed only in integral multiples of $1,000 and no Note with a principal
amount of less than $2,000 will be redeemed in part.

 

(e)           In addition to the Issuers’
rights to redeem the Notes as set forth above, the Issuers may purchase Notes
in open-market transactions, tender offers or otherwise

 

6.             MANDATORY REDEMPTION.  The Issuers shall not be required to make
mandatory redemption or sinking fund payments with respect to the Notes.

 

A-2-6

 

7.             NOTICE OF REDEMPTION.  Subject to Section 3.03 of the
Indenture, notice of redemption will be mailed by first-class mail at least 30
days but not more than 60 days before the Redemption Date (except that
redemption notices may be mailed more than 60 days prior to a Redemption Date
if the notice is issued in connection with Article 8 or Article 14 of
the Indenture) to each Holder whose Notes are to be redeemed at its registered
address.  Notes in denominations larger
than $2,000 may be redeemed in part but only in whole multiples of $1,000 in
excess thereof, unless all of the Notes held by a Holder are to be
redeemed.  On and after the Redemption
Date interest ceases to accrue on Notes or portions thereof called for
redemption.

 

8.             OFFERS TO REPURCHASE.

 

(a)           If a Change of Control
occurs, each Holder of Notes will have the right to require the Issuers to
purchase all or any part (in integral multiples of $1,000 except that no
purchase will be permitted that would result in a Note having a remaining
principal amount of less than $2,000) of such Holder’s Notes pursuant to a
Change of Control offer.  In the Change
of Control offer, the Issuers will offer to purchase all of the Notes, at a
purchase price in cash in an amount equal to 101% of the principal amount of such
Notes, plus accrued and unpaid interest, if any, to (but not including) the
date of purchase (subject to the rights of Holders of record on relevant Record
Dates to receive interest due on an Interest Payment Date).  The Change of Control offer shall be made in
accordance with Section 4.09 of the Indenture.

 

(b)           Under certain circumstances
described in the Indenture, the Issuers will be required to apply the proceeds
of Asset Sales to the repayment of the Notes and Permitted Additional Pari
Passu Indebtedness.  The offer shall be
made in accordance with Section 4.07 of the Indenture

 

9.             DENOMINATIONS, TRANSFER,
EXCHANGE.  The Notes are in registered
form without coupons in denominations of $2,000 and integral multiples of
$1,000 in excess thereof.  The transfer of
Notes may be registered and Notes may be exchanged as provided in the
Indenture.  The Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements
and transfer documents and the Issuers may require a Holder to pay any taxes
and fees required by law or permitted by the Indenture.  The Issuers need not exchange or register the
transfer of any Notes or portion of Notes selected for redemption, except for
the unredeemed portion of any Notes being redeemed in part.  Also, the Issuers need not exchange or
register the transfer of any Notes for a period of 15 days before the mailing
of a notice of redemption of Notes to be redeemed.

 

10.           PERSONS DEEMED OWNERS.  The registered Holder of a Note may be
treated as its owner for all purposes.

 

11.           AMENDMENT, SUPPLEMENT AND
WAIVER.  The Indenture, the Guarantees or
the Notes may be amended or supplemented as provided in the Indenture.

 

12.           DEFAULTS AND REMEDIES.  The Events of Default relating to the Notes
are defined in Section 6.01 of the Indenture.  If any Event of Default (other than as
specified in Section 6.01(7) or 6.01(8) of the Indenture with
respect to an Issuer) shall occur and be continuing with respect to the
Indenture, the Trustee or the Holders of not less than 25% in aggregate principal
amount of the Notes then outstanding may, and the Trustee at the request of
such Holders shall, declare all unpaid principal of, premium, if any, and
accrued interest on all Notes to be due and payable immediately, by a notice in
writing to the Issuers (and to the Trustee if given by the holders of the
Notes) and upon any such declaration, such principal, premium, if any, and
interest shall become due and payable immediately.  Notwithstanding the foregoing, in the case of
an Event of Default as specified in Section 6.01(7) or 6.01(8), with
respect to an Issuer occurs and is continuing, then all the Notes shall
automatically become and be due and 

 

A-2-7

 

payable
immediately in an amount equal to the principal amount of the Notes, together
with accrued and unpaid interest, if any, to the date the Notes become due and
payable, without any declaration or other act on the part of the Trustee or any
holder.  Holders may not enforce the
Indenture, the Notes or the Guarantees except as provided in the
Indenture.  Subject to certain
limitations, Holders of a majority in aggregate principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or
power.  The Trustee may withhold from
Holders of the Notes notice of any continuing Default (except a Default
relating to the payment of principal, premium, if any, Additional Interest, if
any, or interest) if it determines that withholding notice is in their
interest.  The Holders of a majority in
aggregate principal amount of the Notes then outstanding by notice to the
Trustee may on behalf of the Holders of all of the Notes waive any existing
Default or and its consequences under the Indenture except a continuing Default
in payment of the principal of, premium, if any, Additional Interest, if any,
or interest on, any of the Notes held by a non-consenting Holder.  The Issuers and each Guarantor (to the extent
that such Guarantor is so required under the Trust Indenture Act) are required
to deliver to the Trustee annually a statement regarding compliance with the
Indenture, and the Issuers are required within five (5) Business Days
after becoming aware of any Default, to deliver to the Trustee a statement
specifying such Default and what action the Issuers propose to take with
respect thereto.

 

13.           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.

 

14.           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 forth in the Registration Rights
Agreement, including the right to receive Additional Interest (as defined in
the Registration Rights Agreement).

 

15.           GOVERNING LAW.  THIS INDENTURE, THE NOTES AND ANY GUARANTEE
WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK.

 

16.           CUSIP/ISIN NUMBERS.  Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Issuers have
caused CUSIP/ISIN numbers to be printed on the Notes and the Trustee may use
CUSIP/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.

 

A-2-8

 

The
Issuers 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 Issuers at the
following address:

 

Tops Holding Corporation

PO Box 1027

Buffalo, New York  14240-1027

Facsimile:  (716) 635-5102

Attention:  Kevin Darrington

 

A-2-9

 

ASSIGNMENT FORM

 

To
assign this Note, fill in the form below:

 

	
  (I) or
  (we) assign and transfer this Note to:

  	
   

  
	
   

  	
  (Insert assignee’ 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 Issuers.  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-2-10

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If
you want to elect to have this Note purchased by the Issuers pursuant to Section 4.07
or 4.09 of the Indenture, check the appropriate box below:

 

	
  o
  Section 4.07

  	
   

  	
  o Section 4.09

  

 

If
you want to elect to have only part of this Note purchased by the Issuers
pursuant to Section 4.07 or Section 4.09 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-2-11

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE REGULATION S TEMPORARY GLOBAL
NOTE*

 

The
initial outstanding principal amount of this Regulation S Temporary Global Note
is
$                    .  The following exchanges of a part of this
Regulation S Temporary Global Note for an interest in another Regulation S
Temporary Global Note or for a Definitive Note, or exchanges of a part of
another Regulation S Temporary Global or Definitive Note for an interest in
this Regulation S Temporary Global Note, have been made:

 

	
  Date of

  Exchange

  	
   

  	
  Amount
  of

  decrease in

  Principal Amount

  of this Regulation

  S Temporary

  Global Note

  	
   

  	
  Amount
  of increase

  in Principal

  Amount of this

  Regulation S Temporary Global Note

  	
   

  	
  Principal
  Amount of

  this Regulation S

  Temporary Global

  Note

  following such

  decrease or increase

  	
   

  	
  Signature
  of

  authorized signatory

  of Trustee or 

  Notes Registrar

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

*This
schedule should be included only if the Note is issued in global form.

 

A-2-12

 

Notation of Guarantee

 

Pursuant
to the Indenture, dated as of October 9, 2009 (the “Indenture”),
among Tops Holding Corporation (the “Company”), Tops Markets, LLC (“Tops
Markets” and, together with the Company, the “Issuers”), the
Guarantors named therein, the Trustee and the Collateral Agent, each Guarantor,
subject to the provisions of Article 13 of the Indenture, hereby, jointly
and severally, guarantees to each Holder of a Note authenticated and delivered
by the Trustee and to the Trustee and its successors and assigns, irrespective
of the validity and enforceability of the Indenture, the Notes or the
obligations of the Issuers thereunder, that: (a) the principal of,
interest, premium and Additional Interest, if any, on the Notes shall 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 Issuers to
the Holders or the Trustee hereunder or thereunder shall be promptly paid in
full or performed, all in accordance with the terms hereof and thereof; and (b) in
case of any extension of time of payment or renewal of any Notes or any of such
other obligations, the same shall be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, 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 shall 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.

 

 

	
   

  	
   

  	
  [                                                  ]

  
	
   

  	
   

  	
  as
  Guarantors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

A-2-13

EXHIBIT B

 

FORM OF CERTIFICATE OF TRANSFER

 

Tops
Holding Corporation

PO
Box 1027

Buffalo, New York  14240-1027

Facsimile:  (716) 635-5102

Attention:  Kevin Darrington

 

U.S.
Bank National Association

100 Wall Street — Suite 1600

New York, New York  10005

Fax No.:  (212) 509-3384

Attention:  Beverly A. Freeney

 

Re:  10.125% Senior Secured Notes due 2015

 

Reference
is hereby made to the Indenture, dated as of October 9, 2009 (the “Indenture”),
among Tops Holding Corporation, Tops Markets, LLC, the Guarantors named
therein, the Trustee and the Collateral Agent. 
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 DEFINITIVE NOTE PURSUANT TO RULE 144A. 
The Transfer is being effected pursuant to and in accordance with Rule 144A
under the United States 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.

 

2.             o CHECK IF
TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE REGULATION S
TEMPORARY GLOBAL NOTE, THE REGULATION S PERMANENT GLOBAL NOTE OR A 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 

 

B-1

 

facilities
of a designated offshore securities market and neither such Transferor nor any
Person acting on its behalf knows that 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 (iii) the transaction is not part of
a plan or scheme to evade the registration requirements of the Securities Act
and (iv) if the proposed transfer is being made prior to the expiration of
the Restricted Period, the transfer is not being made to a U.S. Person or for
the account or benefit of a U.S. Person (other than an Initial Purchaser).  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 Temporary Global
Note, the Regulation S Permanent Global Note and/or the Restricted Definitive
Note Indenture and the Securities Act.

 

3.             o CHECK AND
COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN A GLOBAL
NOTE OR A 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 Issuers 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 B-1
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 $100,000, 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 Restricted Definitive Notes and in the Indenture and the
Securities Act.

 

B-2

 

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 to a Person who is not an
affiliate (as defined in Rule 144) of the Issuers 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.

 

(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 to a Person who is not an affiliate (as defined in Rule 144)
of the Issuers 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 to a Person who is not
an affiliate (as defined in Rule 144) of the Issuers 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.

 

5.             o CHECK IF
TRANSFEROR IS AN AFFILIATE OF THE ISSUERS.

 

6.             o CHECK IF
TRANSFEREE IS AN AFFILIATE OF THE ISSUERS.

 

B-3

 

This
certificate and the statements contained herein are made for your benefit and
the benefit of the Issuers.

 

	
   

  	
   

  	
  [Insert
  Name of Transferor]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
					

 

B-4

 

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

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (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 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-5

EXHIBIT B-1

 

FORM OF CERTIFICATE FROM

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

 

Tops
Holding Corporation

PO
Box 1027

Buffalo, New York  14240-1027

Facsimile:  (716) 635-5102

Attention:  Kevin Darrington

 

U.S.
Bank National Association

100 Wall Street — Suite 1600

New York, New York  10005

Fax No.:  (212) 509-3384

Attention:  Beverly A. Freeney

 

Re:  10.125% Senior Secured Notes due 2015

 

Reference
is hereby made to the Indenture, dated as of October 9, 2009 (the “Indenture”),
among Tops Holding Corporation, Tops Markets, LLC, the Guarantors named
therein, the Trustee and the Collateral Agent. 
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 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 Issuers, (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 Issuers 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 $100,000, an
Opinion of Counsel in form reasonably acceptable to the Issuers 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 an effective registration statement under
the Securities Act, (F) in accordance with Rule 144 under the
Securities Act or (G) in accordance with another exemption from the
registration requirements of the Securities 

 

B-1-1

 

Act,
and we further agree to provide to any Person purchasing the Definitive Note
from us in a transaction meeting the requirements of clauses (A) through (G) 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 Issuers such certifications, legal opinions
and other information as you and the Issuers 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 Issuers 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:

  	
   

  	
   

  	
   

  	
   

  
					

 

B-1-2

EXHIBIT C

 

FORM OF CERTIFICATE OF EXCHANGE

 

Tops
Holding Corporation

PO
Box 1027

Buffalo, New York  14240-1027

Facsimile:  (716) 635-5102

Attention:  Kevin Darrington

 

U.S.
Bank National Association

100 Wall Street — Suite 1600

New York, New York  10005

Fax No.:  (212) 509-3384

Attention:  Beverly A. Freeney

 

Re:  10.125% Senior Secured Notes due 2015

 

Reference
is hereby made to the Indenture, dated as of October 9, 2009 (the “Indenture”),
among Tops Holding Corporation, Tops Markets, LLC, the Guarantors named
therein, the Trustee and the Collateral Agent. 
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)             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 United States 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, (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 and (v) the
Owner is not an affiliate (as defined in Rule 144) of the Issuers.

 

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 

 

C-1

 

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 Act, (iv) the Definitive Note is being acquired in
compliance with any applicable blue sky securities laws of any state of the
United States and (v) the Owner is not an affiliate (as defined in Rule 144)
of the Issuers.

 

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, (iv) the
beneficial interest is being acquired in compliance with any applicable blue
sky securities laws of any state of the United States and (v) the Owner is
not an affiliate (as defined in Rule 144) of the Issuers.

 

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, (iv) the Unrestricted Definitive Note
is being acquired in compliance with any applicable blue sky securities laws of
any state of the United States and (v) the Owner is not an affiliate (as
defined in Rule 144) of the Issuers.

 

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 

 

C-2

 

in
the [CHECK ONE]  [  ] 144A Global Note  [  ]
Regulation S 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.

 

3)             o CHECK IF OWNER
IS AN AFFILIATE OF THE ISSUERS.

 

4)             o CHECK IF OWNER
IS EXCHANGING THIS NOTE IN CONNECTION WITH AN EXPECTED TRANSFER TO AN AFFILIATE
OF THE ISSUERS.

 

This
certificate and the statements contained herein are made for your benefit and
the benefit of the Issuers and are dated
                                            .

 

 

	
   

  	
   

  	
  [Insert
  Name of Transferor]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
					

 

C-3

EXHIBIT D

 

[FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS]

 

Supplemental
Indenture (this “Supplemental Indenture”), dated as of
                    ,
among
                                    
(the “Guaranteeing Subsidiary”), a subsidiary of Tops Holdings
Corporation, a Delaware corporation (the “Company”), and/or Tops
Markets, LLC, a New York limited liability company (“Tops Markets” and,
together with the Company, the “Issuers”), U.S. Bank National
Association, a national banking association organized and existing under the
bank of the United States of America, as trustee (the “Trustee”) and
U.S. Bank National Association, a national banking association organized and
existing under the bank of the United States of America, as Collateral Agent
(the “Collateral Agent”).

 

W I T N E S S E T H

 

WHEREAS,
each of the Company, Tops Markets and the Guarantors (as defined in the
Indenture referred to below) have heretofore executed and delivered to the
Trustee an indenture (the “Indenture”), dated as of October 9,
2009, providing for the issuance of an unlimited aggregate principal amount of
10.125% Senior Secured Notes due 2015 (the “Notes”);

 

WHEREAS,
the Indenture provides that under certain circumstances the Guaranteeing
Subsidiary shall execute and deliver to the Trustee a supplemental indenture
pursuant to which the Guaranteeing Subsidiary shall unconditionally guarantee
all of the Issuers’ Obligations under the Notes and the Indenture on the terms
and conditions set forth herein and under the Indenture (the “Guarantee”);
and

 

WHEREAS,
pursuant to Section 9.01 of the Indenture, the Trustee is authorized to
execute and deliver this Supplemental Indenture.

 

NOW
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties
mutually covenant and agree for the equal and ratable benefit of the Holders of
the Notes as follows:

 

(1)           Capitalized Terms.  Capitalized terms used herein without
definition shall have the meanings assigned to them in the Indenture.

 

(2)           Agreement to be Bound.  The Guaranteeing Subsidiary hereby becomes a
party to the Indenture as a Guarantor and as such will have all of the rights
and be subject to all of the obligations and agreements of a Guarantor under
the Indenture.

 

(3)           Guarantee.  The Guaranteeing Subsidiary agrees, on a
joint and several basis with all the existing Guarantors, to Guarantee to each
Holder of the Notes and the Trustee the Indenture Obligations pursuant to Article 13
of the Indenture.

 

(4)           No Recourse Against Others.  No director, officer, employee, incorporator
or stockholder of the Guaranteeing Subsidiary shall have any liability for any
obligations of the Issuers or the Guarantors (including the Guaranteeing
Subsidiary) under the Notes, any Guarantees, the Indenture or this Supplemental
Indenture or for any claim based on, in respect of, or by reason of, such
obligations or their creation.  Each
Holder by accepting Notes waives and releases all such liability.  The waiver and release are part of the
consideration for issuance of the Notes and the Guarantees.

 

D-1

 

(5)           Governing Law.  THIS SUPPLEMENTAL INDENTURE WILL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

(6)           Counterparts.  The parties may sign any number of copies of
this Supplemental Indenture.  Each signed
copy shall be an original, but all of them together represent the same
agreement.

 

(7)           Effect of Headings.  The Section headings herein are for
convenience only and shall not affect the construction hereof.

 

(8)           The Trustee.  The Trustee shall not be responsible in any
manner whatsoever for or in respect of the validity or sufficiency of this
Supplemental Indenture or for or in respect of the recitals contained herein,
all of which recitals are made solely by the Guaranteeing Subsidiary.

 

(9)           Benefits Acknowledged.  The Guaranteeing Subsidiary’s Guarantee is
subject to the terms and conditions set forth in the Indenture.  The Guaranteeing Subsidiary acknowledges that
it will receive direct and indirect benefits from the financing arrangements
contemplated by the Indenture and this Supplemental Indenture and that the
guarantee and waivers made by it pursuant to this Guarantee are knowingly made
in contemplation of such benefits.

 

(10)         Successors.  All agreements of the Guaranteeing Subsidiary
in this Supplemental Indenture shall bind its successors, except as otherwise
provided in the Indenture.  All
agreements of the Trustee in this Supplemental Indenture shall bind its
successors.

 

D-2

 

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

 

	
   

  	
   

  	
  [GUARANTEEING
  SUBSIDIARY]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION as Collateral

  Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

D-3Exhibit 4.2

 

EXECUTION VERSION

 

Supplemental Indenture (this “Supplemental
Indenture”), dated as of January 29, 2010, among Tops PT, LLC, a New
York limited liability company (the “Guaranteeing Subsidiary”), a
subsidiary of Tops Holdings Corporation, a Delaware corporation (the “Company”),
and/or Tops Markets, LLC, a New York limited liability company (“Tops
Markets” and, together with the Company, the “Issuers”), U.S. Bank
National Association, a national banking association organized and existing
under the bank of the United States of America, as trustee (the “Trustee”)
and U.S. Bank National Association, a national banking association organized
and existing under the bank of the United States of America, as Collateral
Agent (the “Collateral Agent”).

 

W I T N E S S E T H

 

WHEREAS, each of the Company, Tops Markets and the
Guarantors (as defined in the Indenture referred to below) have heretofore
executed and delivered to the Trustee an indenture (the “Indenture”),
dated as of October 9, 2009, providing for the issuance of an unlimited
aggregate principal amount of 10.125% Senior Secured Notes due 2015 (the “Notes”);

 

WHEREAS, the Indenture provides that under certain
circumstances the Guaranteeing Subsidiary shall execute and deliver to the
Trustee a supplemental indenture pursuant to which the Guaranteeing Subsidiary
shall unconditionally guarantee all of the Issuers’ Obligations under the Notes
and the Indenture on the terms and conditions set forth herein and under the
Indenture (the “Guarantee”); and

 

WHEREAS, pursuant to Section 9.01 of the
Indenture, the Trustee is authorized to execute and deliver this Supplemental
Indenture.

 

NOW THEREFORE, in consideration of the foregoing and
for other good and valuable consideration, the receipt of which is hereby acknowledged,
the parties mutually covenant and agree for the equal and ratable benefit of
the Holders of the Notes as follows:

 

(1)           Capitalized Terms.  Capitalized terms used herein without
definition shall have the meanings assigned to them in the Indenture.

 

(2)           Agreement to be Bound.  The Guaranteeing Subsidiary hereby becomes a
party to the Indenture as a Guarantor and as such will have all of the rights
and be subject to all of the obligations and agreements of a Guarantor under
the Indenture.

 

(3)           Guarantee.  The Guaranteeing Subsidiary agrees, on a
joint and several basis with all the existing Guarantors, to Guarantee to each
Holder of the Notes and the Trustee the Indenture Obligations pursuant to Article 13
of the Indenture.

 

(4)           No Recourse Against Others.  No director, officer, employee, incorporator
or stockholder of the Guaranteeing Subsidiary shall have any liability for any
obligations of the Issuers or the Guarantors (including the Guaranteeing
Subsidiary) under the Notes, any Guarantees, the Indenture or this Supplemental
Indenture or for any claim based on, in respect of, or by reason of, such
obligations or their creation.  Each
Holder by accepting Notes waives and releases all such liability.  The waiver and release are part of the
consideration for issuance of the Notes and the Guarantees.

 

 

(5)           Governing Law.  THIS SUPPLEMENTAL INDENTURE WILL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

(6)           Counterparts.  The parties may sign any number of copies of
this Supplemental Indenture.  Each signed
copy shall be an original, but all of them together represent the same agreement.

 

(7)           Effect of Headings.  The Section headings herein are for
convenience only and shall not affect the construction hereof.

 

(8)           The Trustee.  The Trustee shall not be responsible in any
manner whatsoever for or in respect of the validity or sufficiency of this
Supplemental Indenture or for or in respect of the recitals contained herein,
all of which recitals are made solely by the Guaranteeing Subsidiary.

 

(9)           Benefits Acknowledged.  The Guaranteeing Subsidiary’s Guarantee is
subject to the terms and conditions set forth in the Indenture.  The Guaranteeing Subsidiary acknowledges that
it will receive direct and indirect benefits from the financing arrangements
contemplated by the Indenture and this Supplemental Indenture and that the
guarantee and waivers made by it pursuant to this Guarantee are knowingly made
in contemplation of such benefits.

 

(10)         Successors.  All agreements of the Guaranteeing Subsidiary
in this Supplemental Indenture shall bind its successors, except as otherwise
provided in the Indenture.  All
agreements of the Trustee in this Supplemental Indenture shall bind its
successors.

 

[signature
page follows]

 

2

 

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

 

	
   

  	
   

  	
  TOPS
  PT, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Frank Curci

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Frank
  Curci

  
	
   

  	
   

  	
   

  	
  Title:

  	
  President
  and Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION, as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Beverly A. Freeney

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Beverly
  A. Freeney

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION, as Collateral Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Beverly A. Freeney

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Beverly
  A. Freeney

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice
  President

  

 

Supplemental Indenture

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]