Document:

Registration Rights Agreement

EXHIBIT 4.3 
 

 
REGISTRATION RIGHTS AGREEMENT 
 
Dated as of April 15, 2003 
 
Among

 
DAN RIVER INC. 
 
and 
 
DEUTSCHE BANK SECURITIES INC., 
WACHOVIA SECURITIES, INC. and FLEET SECURITIES, INC., 
as Initial Purchasers 
 
12- 3/4% Senior Notes due 2009 
 

 
TABLE OF
CONTENTS 
 

	 	  	 	  	 Page

	 1.
	  	 Definitions
	  	 1

	
	 2.
	  	 Exchange Offer
	  	 5

	
	 3.
	  	 Shelf Registration
	  	 9

	
	 4.
	  	 Additional Interest
	  	 10

	
	 5.
	  	 Registration Procedures
	  	 12

	
	 6.
	  	 Registration Expenses
	  	 21

	
	 7.
	  	 Indemnification and Contribution
	  	 22

	
	 8.
	  	 Rules 144 and 144A
	  	 25

	
	 9.
	  	 Underwritten Registrations
	  	 26

	
	 10.
	  	 Miscellaneous
	  	 26

 

i 

 
REGISTRATION
RIGHTS AGREEMENT 
 
This Registration Rights
Agreement (this “Agreement”) is dated as of April 15, 2003, among DAN RIVER INC., a Georgia corporation (the “Company”), and DEUTSCHE BANK SECURITIES INC., WACHOVIA SECURITIES, INC. and FLEET SECURITIES, INC., as
initial purchasers (the “Initial Purchasers”). 
 
This Agreement is entered into in connection with the Purchase Agreement by and among the Company and the Initial Purchasers, dated as of April 1, 2003 (the “Purchase Agreement”), which provides for, among other
things, the sale by the Company to the Initial Purchasers of $157,000,000 aggregate principal amount of the Company’s 12- 3/4% Senior Notes due 2009 (the “Notes”). In order to induce the Initial Purchasers to enter into the Purchase Agreement, the Company has agreed to provide the registration rights set forth in this Agreement for the
benefit of the Initial Purchasers and any subsequent holder or holders of the Notes. The execution and delivery of this Agreement is a condition to the Initial Purchasers’ obligation to purchase the Notes under the Purchase Agreement.

 
The parties hereby agree as follows:

 
1. Definitions. As used in this
Agreement, the following terms shall have the following meanings: 
 
Additional Interest: See Section 4(a) hereof. 
 
Advice: See the last paragraph of Section 5 hereof. 
 
Affiliate: An “affiliate” of, or person “affiliated” with, a specified person, is a person that directly, or
indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the person specified. 
 
Agreement: See the introductory paragraphs hereto. 
 
Applicable Period: See Section 2(b) hereof. 
 
Business Day: Any day that is not a Saturday, Sunday or
a day on which banking institutions in New York are authorized or required by law to be closed. 
 
Company: See the introductory paragraphs hereto. 
 
Effectiveness Date: With respect to (i) the Exchange Offer Registration Statement, the 150th day after
the Issue Date and (ii) any Shelf Registration Statement, the 150th day after the Filing Date with respect thereto; provided, however, that if the Effectiveness 

Date would otherwise fall on a day that is not a Business Day, then the Effectiveness Date shall be the next succeeding Business Day.

 
Effectiveness Period: See Section 3(a)
hereof. 
 
Event Date: See Section 4 hereof.

 
Exchange Act: The Securities Exchange Act
of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder. 
 
Exchange Notes: See Section 2(a) hereof. 
 
Exchange Offer: See Section 2(a) hereof. 
 
Exchange Offer Registration Statement: See Section 2(a) hereof. 
 
Filing Date: (A) If no Registration Statement has been filed by the Company pursuant to this Agreement, the 60th day after the
Issue Date; and (B) in any other case (which may be applicable notwithstanding the consummation of the Exchange Offer), the 60th day after the delivery of a Shelf Notice as required pursuant to Section 2(c) hereof; provided, however,
that if the Filing Date would otherwise fall on a day that is not a Business Day, then the Filing Date shall be the next succeeding Business Day. 
 
Holder: Any holder of a Registrable Note or Registrable Notes. 
 
Indenture: The Indenture, dated as of April 15, 2003, by and among the Company, the Guarantors party
thereto from time to time and HSBC Bank USA, as Trustee, pursuant to which the Notes are being issued, as amended or supplemented from time to time in accordance with the terms thereof. 
 
Information: See Section 5(l) hereof. 
 
Initial Purchasers: See the introductory paragraphs
hereto. 
 
Initial Shelf Registration: See
Section 3(a) hereof. 
 
Inspectors: See
Section 5(l) hereof. 
 
Issue Date: April
15, 2003, the date of original issuance of the Notes. 
 
NASD: See Section 5(p) hereof. 
 
Notes: See the introductory paragraphs hereto. 
 

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Participant: See Section 7(a) hereof. 
 
Participating Broker-Dealer: See Section 2(b) hereof. 
 
Person: An individual, trustee, corporation, partnership, limited liability company, joint stock company, trust, unincorporated association, union, business association, firm or other legal
entity. 
 
Private Exchange: See Section
2(b) hereof. 
 
Private Exchange Notes: See
Section 2(b) hereof. 
 
Prospectus: The
prospectus included in any Registration Statement (including, without limitation, any prospectus subject to completion and a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration
statement in reliance upon Rule 430A under the Securities Act and any term sheet filed pursuant to Rule 434 under the Securities Act), as amended or supplemented by any prospectus supplement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus. 
 
Purchase Agreement: See the introductory paragraphs hereof. 
 
Records: See Section 5(l) hereof. 
 
Registrable Notes: Each Note upon its original issuance and at all times subsequent thereto, each
Exchange Note as to which Section 2(c)(iv) hereof is applicable upon original issuance and at all times subsequent thereto and each Private Exchange Note upon original issuance thereof and at all times subsequent thereto, until, in each case, the
earliest to occur of (i) a Registration Statement (other than, with respect to any Exchange Note as to which Section 2(c)(iv) hereof is applicable, the Exchange Offer Registration Statement) covering such Note, Exchange Note or Private Exchange Note
has been declared effective by the SEC and such Note, Exchange Note or such Private Exchange Note, as the case may be, has been disposed of in accordance with such effective Registration Statement, (ii) such Note has been exchanged pursuant to the
Exchange Offer for an Exchange Note or Exchange Notes that may be resold without restriction under state and federal securities laws, (iii) such Note, Exchange Note or Private Exchange Note, as the case may be, ceases to be outstanding for purposes
of the Indenture, (iv) such Note, Exchange Note or Private Exchange Note, as the case may be, is sold pursuant to Rule 144 under circumstances in which any legend borne by such Note relating to restrictions on transferability thereof, under the
Securities Act or otherwise, is removed by the Company or pursuant to the Indenture, or (v) such Note, Exchange Note or Private Exchange Note, as the case may be, may be resold without restriction pursuant to Rule 144(k) (as amended or replaced)
under the Securities Act. 
 

3 

 
Registration Statement: Any registration statement of the Company that covers any of the Notes, the Exchange Notes or the Private Exchange Notes filed with the SEC under the Securities Act, including the Prospectus, amendments
and supplements to such registration statement, including post-effective amendments, all exhibits, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement. 
 
Rule 144: Rule 144 under the Securities Act.

 
Rule 144A: Rule 144A under the Securities
Act. 
 
Rule 405: Rule 405 under the
Securities Act. 
 
Rule 415: Rule 415 under
the Securities Act. 
 
Rule 424: Rule 424
under the Securities Act. 
 
SEC: The U.S.
Securities and Exchange Commission. 
 
Securities Act: The Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder. 
 
Shelf Notice: See Section 2(c) hereof. 
 
Shelf Registration: See Section 3(b) hereof. 
 
Shelf Registration Statement: Any Registration Statement relating to a Shelf Registration.

 
Subsequent Shelf Registration: See
Section 3(b) hereof. 
 
Suspension Notice:
See the last paragraph of Section 5 hereof. 
 
Suspension Period: See Section 5(j) hereof. 
 
TIA: The Trust Indenture Act of 1939, as amended. 
 
Trustee: The trustee under the Indenture and the trustee (if any) under any indenture governing the Exchange Notes and Private Exchange Notes. 
 
Underwritten registration or underwritten offering: A
registration in which securities of the Company is sold to an underwriter for reoffering to the public. 
 
Except as otherwise specifically provided, all references in this Agreement to acts, laws, statutes, rules, regulations, releases, forms,
no-action letters and other regulatory 

 

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requirements (collectively, “Regulatory Requirements”) shall be deemed to refer also to any amendments thereto and all
subsequent Regulatory Requirements adopted as a replacement thereto; provided that Rule 144 shall not be deemed to amend or replace Rule 144A. 
 
2. Exchange Offer . (a) Unless the Exchange Offer would violate applicable law or any applicable interpretation of the staff of the
SEC, the Company shall file with the SEC, no later than the Filing Date, a Registration Statement (the “Exchange Offer Registration Statement”) on an appropriate registration form with respect to a registered offer (the
“Exchange Offer”) to exchange any and all of the Registrable Notes for a like aggregate principal amount of debt securities of the Company (the “Exchange Notes”), that are identical in all material respects to the
Notes, except that (i) the Exchange Notes shall have been registered pursuant to an effective registration statement under the Securities Act, shall not contain provisions for Additional Interest and shall not contain a restrictive legend thereon
and (ii) interest thereon shall accrue from the last date on which interest was paid on the Notes or, if no such interest has been paid, from the Issue Date, and which are entitled to the benefits of the Indenture or a trust indenture which is
identical in all material respects to the Indenture (other than such changes to the Indenture or any such identical trust indenture as are necessary to comply with the TIA) and which, in either case, has been qualified under the TIA. The Exchange
Offer shall comply with all applicable tender offer rules and regulations under the Exchange Act and any other applicable laws. The Company shall use its reasonable best efforts to (x) cause the Exchange Offer Registration Statement to be declared
effective under the Securities Act on or before the Effectiveness Date; (y) keep the Exchange Offer open for at least 30 days after the date that notice of the Exchange Offer is mailed to Holders (or longer if required by applicable law); and (z)
consummate the Exchange Offer on or prior to the 180th day following the Issue Date. 
 
Each Holder (including, without limitation, each Participating Broker-Dealer) who participates in the Exchange Offer will be required to represent to the Company in writing (which may be contained in
the applicable letter of transmittal) that: (i) any Exchange Notes acquired in exchange for Registrable Notes tendered are being acquired in the ordinary course of business of the Person receiving such Exchange Notes, whether or not such recipient
is such Holder itself; (ii) at the time of the commencement or consummation of the Exchange Offer neither such Holder nor, to the actual knowledge of such Holder, any other Person receiving Exchange Notes from such Holder has an arrangement or
understanding with any Person to participate in the distribution of the Exchange Notes in violation of the provisions of the Securities Act; (iii) neither the Holder nor, to the actual knowledge of such Holder, any other Person receiving Exchange
Notes from such Holder is an “affiliate” (as defined in Rule 405) of the Company or, if it is an affiliate of the Company, it will comply with the registration and prospectus delivery requirements of the Securities Act to the extent
applicable and will provide information to be included in the Shelf Registration Statement in accordance with Section 5 hereof in order to have their Notes included in the Shelf Registration Statement and benefit from the provisions regarding
Additional Interest in Section 4 hereof; 

 

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(iv) neither such Holder nor, to the actual knowledge of such Holder, any other Person receiving Exchange Notes from such Holder is engaging
in or intends to engage in a distribution of the Exchange Notes; (v) it is not acting, to the actual knowledge of such Holders, on behalf of any Person who could not make the representations contained in clauses (i) through (iv) above and (vi) if
such Holder is a Participating Broker-Dealer, such Holder has acquired the Registrable Notes as a result of market-making activities or other trading activities and that it will comply with the applicable provisions of the Securities Act (including,
but not limited to, the prospectus delivery requirements thereunder). Each such Holder shall also have made such other representations as may be reasonably necessary under the applicable SEC rules, regulations or interpretations to render the use of
Form S-4 or another appropriate form under the Securities Act available. Each Holder using the Exchange Offer to participate in a distribution of the Exchange Notes is hereby deemed to acknowledge and is hereby deemed to agree that, if the resales
are of Exchange Notes obtained by such Holder in exchange for Registrable Notes acquired directly from the Company or an affiliate thereof, it (1) could not, under SEC policy as in effect on the date of this Agreement, rely on the position of the
SEC enunciated in Morgan Stanley and Co., Inc. (available June 5, 1991) and Exxon Capital Holdings Corporation (available May 13, 1988), as interpreted in the SEC’s letter to Shearman & Sterling dated July 2, 1993, and similar no-action
letters, and (2) must comply with the registration and prospectus delivery requirements of the Securities Act in connection with a secondary resale transaction and that such secondary resale transaction must be covered by an effective registration
statement containing the selling security holder information required by Item 507 or 508, as applicable, of Regulation S-K of the rules and regulations of the SEC. 
 
Upon consummation of the Exchange Offer in accordance with this Section 2, the provisions of this Agreement
shall continue to apply, mutatis mutandis, solely with respect to Registrable Notes that are Private Exchange Notes, Exchange Notes as to which Section 2(c)(iv) is applicable and Exchange Notes held by Participating Broker-Dealers, and
the Company shall have no further obligation to register Registrable Notes (other than Private Exchange Notes and Exchange Notes as to which clause 2(c)(iv) hereof applies) pursuant to Section 3 hereof. 
 
No securities other than the Exchange Notes shall be included
in the Exchange Offer Registration Statement. 
 
(b) The Company shall include within the Prospectus contained in the Exchange Offer Registration Statement a section entitled “Plan of Distribution,” which shall contain a summary statement of the positions taken or
policies made by the staff of the SEC with respect to the potential “underwriter” status of any broker-dealer that is the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of Exchange Notes received by such
broker-dealer in the Exchange Offer (a “Participating Broker-Dealer”), whether such positions or policies have been publicly disseminated by the staff of the SEC or such positions or policies represent the prevailing views of the
staff of the SEC. Such “Plan of Distribution” 

 

6 

section shall also expressly permit, to the extent permitted by applicable policies and regulations of the SEC, the use of the Prospectus by
all Persons subject to the prospectus delivery requirements of the Securities Act, including, to the extent permitted by applicable policies and regulations of the SEC, all Participating Broker-Dealers, and include a statement describing the means
by which Participating Broker-Dealers may resell the Exchange Notes in compliance with the Securities Act. 
 
The Company shall use its reasonable best efforts to keep the Exchange Offer Registration Statement effective and to amend and supplement
the Prospectus contained therein in order to permit such Prospectus to be lawfully delivered by all Persons subject to the prospectus delivery requirements of the Securities Act for such period of time as is necessary to comply with applicable law
in connection with any resale of the Exchange Notes; provided, however, that such period shall not be required to exceed 90 days or such longer period if extended pursuant to the last paragraph of Section 5 hereof (the
“Applicable Period”). 
 
If, prior
to consummation of the Exchange Offer, the Initial Purchasers hold any Notes acquired by them that have the status of an unsold allotment in the initial distribution, the Company upon the written request of the Initial Purchasers shall
simultaneously with the delivery of the Exchange Notes issue and deliver to the Initial Purchasers, in exchange (the “Private Exchange”) for such Notes held by any such Holder, a like principal amount of notes (the “Private
Exchange Notes”) of the Company, that are identical in all material respects to the Exchange Notes except for the placement of a restrictive legend on such Private Exchange Notes. The Private Exchange Notes shall be issued pursuant to the
same indenture as the Exchange Notes and bear the same CUSIP number as the Exchange Notes if permitted by the CUSIP Service Bureau. 
 
In connection with the Exchange Offer, the Company shall: 
 
(1) mail, or cause to be mailed, to each Holder of record entitled to participate in the
Exchange Offer a copy of the Prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate letter of transmittal and related documents; 
 
(2) utilize the services of a depositary for the Exchange Offer with an address in the
Borough of Manhattan, The City of New York; 
 
(3) permit Holders to withdraw tendered Notes at any time prior to the close of business, New York City time, on the last Business Day on which the Exchange Offer remains open; and 
 
(4) otherwise comply in all material respects
with all applicable laws, rules and regulations. 
 

7 

 
As soon as
practicable after the close of the Exchange Offer and the Private Exchange, if any, the Company shall: 
 
(1) accept for exchange all Registrable Notes validly tendered and not validly withdrawn pursuant to the Exchange Offer
and the Private Exchange, if any; 
 
(2) deliver, or cause to be delivered, to the Trustee for cancellation all Registrable Notes so accepted for exchange; and 
 
(3) cause the Trustee to authenticate and deliver promptly to each Holder, Exchange Notes or Private Exchange Notes, as
the case may be, equal in principal amount to the Notes of such Holder so accepted for exchange; provided that, in the case of any Notes held in global form by a depositary, authentication and delivery to such depositary of one or more
replacement Notes in global form in an equivalent principal amount thereto for the account of such Holders in accordance with the Indenture shall satisfy such authentication and delivery requirement. 
 
The Exchange Offer and the Private Exchange shall not be
subject to any conditions, other than (i) that the Exchange Offer or Private Exchange, as the case may be, does not violate applicable law or any applicable interpretation of the staff of the SEC; (ii) that the Registrable Notes to be exchanged
pursuant to the Exchange Offer or Private Exchange, as the case may be, are validly tendered and not validly withdrawn in accordance with the terms thereof; (iii) that no action or proceeding shall have been instituted or threatened in any court or
by any governmental agency which might materially impair the ability of the Company to proceed with the Exchange Offer or the Private Exchange, and no material adverse development shall have occurred in any existing action or proceeding with respect
to the Company; (iv) that all governmental approvals shall have been obtained, which approvals the Company deems necessary for the consummation of the Exchange Offer or Private Exchange; and (v) the conditions precedent to the Company’s
obligations specified in the second paragraph of Section 2(a) of this Agreement. 
 
The Indenture or such indenture shall provide that the Exchange Notes, the Private Exchange Notes and the Notes shall vote and consent together on all matters as one class and that none of the Exchange
Notes, the Private Exchange Notes or the Notes will have the right to vote or consent as a separate class on any matter. 
 
(c) If, (i) because of any change in law or in currently prevailing interpretations of the staff of the SEC, the Company is not permitted
to effect the Exchange Offer, (ii) the Exchange Offer is not consummated within 180 days of the Issue Date, (iii) the Initial Purchasers or any other holder of Private Exchange Notes so requests in writing to the Company at any time after the
consummation of the Exchange Offer, or (iv) in the case of any Holder that participates in the Exchange Offer, such Holder does not receive Exchange Notes on the date of the exchange that may be sold without restriction under state and federal
securi- 
 

8 

ties laws (other than due solely to the status of such Holder as an affiliate of the Company within the meaning of the Securities Act) and so
notifies the Company within 20 days after such Holder first becomes aware of such restrictions, then in the case of each of clauses (i) to and including (iv) of this sentence the Company shall promptly deliver to the Holders and the Trustee written
notice thereof (the “Shelf Notice”) and shall file a Shelf Registration pursuant to Section 3 hereof. 
 
3. Shelf Registration. 
 
(a) Shelf Registration. If at any time a Shelf Notice is delivered as contemplated by Section 2(c) hereof, then the Company shall
as promptly as practicable after the delivery of such Shelf Notice file with the SEC a Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415 covering all of the Registrable Notes (the “Initial Shelf
Registration”). Following the delivery of such Shelf Notice, the Company shall use its reasonable best efforts to file with the SEC the Initial Shelf Registration on or prior to the applicable Filing Date. The Initial Shelf Registration
shall be on Form S-1 or another appropriate form permitting registration of such Registrable Notes for resale by Holders in the manner or manners designated by them (including, without limitation, one or more underwritten offerings). The Company
shall not permit any securities other than the Registrable Notes to be included in the Initial Shelf Registration or any Subsequent Shelf Registration (as defined below). 
 
The Company shall use its reasonable best efforts to cause the Shelf Registration to be declared effective
under the Securities Act on or prior to the Effectiveness Date and to keep the Initial Shelf Registration continuously effective under the Securities Act until the date that is two years from the Issue Date or such shorter period ending when all
Registrable Notes covered by the Initial Shelf Registration have been sold in the manner set forth and as contemplated in the Initial Shelf Registration or, if applicable, a Subsequent Shelf Registration (the “Effectiveness
Period”); provided, however, that no Holder shall be entitled to be named as a selling securityholder in the Shelf Registration or to use the Prospectus forming a part thereof for resales of Registrable Notes unless such
Holder has provided the Company, within five Business Days after receipt of a request therefor, with the information required by the first two paragraphs which follow Section 5(p), as applicable; and provided, further, however,
that the Effectiveness Period in respect of the Initial Shelf Registration shall be extended to the extent required to permit dealers to comply with the applicable prospectus delivery requirements of Rule 174 under the Securities Act and as
otherwise provided herein and shall be subject to reduction to the extent that the applicable provisions of Rule 144(k) are amended or revised to reduce the two year holding period set forth therein. 
 
(b) Withdrawal of Stop Orders; Subsequent Shelf
Registrations. If the Initial Shelf Registration or any Subsequent Shelf Registration ceases to be effective for any reason at any time during the Effectiveness Period (other than because of the sale of all of the 

 

9 

Notes registered thereunder), the Company shall use its reasonable best efforts to obtain the prompt withdrawal of any order suspending the
effectiveness thereof, and in any event shall within 30 days of such cessation of effectiveness amend such Shelf Registration Statement in a manner to obtain the withdrawal of the order suspending the effectiveness thereof, or file an additional
Shelf Registration Statement pursuant to Rule 415 covering all of the Registrable Notes covered by and not sold under the Initial Shelf Registration or an earlier Subsequent Shelf Registration (each, a “Subsequent Shelf
Registration”). If a Subsequent Shelf Registration is filed, the Company shall use its reasonable best efforts to cause the Subsequent Shelf Registration to be declared effective under the Securities Act as soon as practicable after such
filing and to keep such subsequent Shelf Registration continuously effective for a period equal to the number of days in the Effectiveness Period less the aggregate number of days during which the Initial Shelf Registration or any Subsequent Shelf
Registration was previously continuously effective. As used herein the term “Shelf Registration” means the Initial Shelf Registration and any Subsequent Shelf Registration. 
 
(c) Supplements and Amendments. The Company shall
promptly supplement and amend the Shelf Registration if required by the rules, regulations or instructions applicable to the registration form used for such Shelf Registration, if required by the Securities Act. 
 
4. Additional Interest. 
 
(a) The Company and the Initial Purchasers agree that the
Holders will suffer damages if the Company fails to fulfill its obligations under Section 2 or Section 3 hereof and that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, the Company agrees to pay, as
liquidated damages, additional interest on the Notes (“Additional Interest”) under the circumstances and to the extent set forth below (each of which shall be given independent effect): 
 
(i) if (A) neither the Exchange Offer
Registration Statement nor the Initial Shelf Registration has been filed on or prior to the Filing Date applicable thereto or (B) notwithstanding that the Company has consummated or will consummate the Exchange Offer, the Company is required to file
a Shelf Registration and such Shelf Registration is not filed on or prior to the Filing Date applicable thereto, then, commencing on the day after any such Filing Date, Additional Interest shall accrue on the principal amount of outstanding Notes at
a rate of 0.25% per annum for the first 90 days immediately following such applicable Filing Date, and such Additional Interest rate shall increase by an additional 0.25% per annum at the beginning of each subsequent 90-day period; or 
 
(ii) if (A) neither the Exchange Offer
Registration Statement nor the Initial Shelf Registration is declared effective by the SEC on or prior to the Effectiveness Date applicable thereto or (B) notwithstanding that the Company has consummated or 

 

10 

will consummate the Exchange Offer, the Company is required to file a Shelf Registration and such Shelf Registration is not declared
effective by the SEC on or prior to the Effectiveness Date applicable to such Shelf Registration, then, commencing on the day after such Effectiveness Date, Additional Interest shall accrue on the principal amount of outstanding Notes at a rate of
0.25% per annum for the first 90 days immediately following the day after such Effectiveness Date, and such Additional Interest rate shall increase by an additional 0.25% per annum at the beginning of each subsequent 90-day period; or 
 
(iii) if (A) the Company has not exchanged
Exchange Notes for all Notes validly tendered in accordance with the terms and conditions of the Exchange Offer on or prior to the 180th day after the Issue Date or (B) if applicable, a Shelf Registration has been declared effective and such Shelf
Registration ceases to be effective at any time during the Effectiveness Period (other than such time as all Notes have been disposed of thereunder) and is not declared effective again within 30 days, then Additional Interest shall accrue on the
principal amount of outstanding Notes at a rate of 0.25% per annum for the first 90 days commencing on the (x) 181st day after the Issue Date, in the case of (A) above, or (y) the 31st day after such Shelf Registration ceases to be effective in the
case of (B) above, and such Additional Interest rate shall increase by an additional 0.25% per annum at the beginning of each such subsequent 90-day period; 
 
provided, however, that the Additional Interest rate on outstanding Notes may not accrue under more than one of the foregoing clauses (i)
through (iii) at any one time and at no time shall the aggregate amount of additional interest accruing exceed in the aggregate 0.50% per annum; provided, further, however, that (1) upon the filing of the applicable Exchange
Offer Registration Statement or the applicable Shelf Registration as required hereunder (in the case of clause (i) above of this Section 4(a)), (2) upon the effectiveness of the Exchange Offer Registration Statement or the applicable Shelf
Registration Statement as required hereunder (in the case of clause (ii) of this Section 4(a)), or (3) upon the exchange of the Exchange Notes for all Notes tendered (in the case of clause (iii)(A) of this Section 4(a)), or upon the effectiveness of
the applicable Shelf Registration Statement which had ceased to remain effective (in the case of (iii)(B) of this Section 4(a)), Additional Interest on the Notes in respect of which such events relate as a result of such clause (or the relevant
subclause thereof), as the case may be, shall cease to accrue and the interest rate borne by the Registrable Notes shall be reduced to the original interest rate. 
 
(b) The Company shall notify the Trustee within one Business Day after each and every date on which an event
occurs in respect of which Additional Interest is required to be paid (an “Event Date”). Any amounts of Additional Interest due pursuant to (a)(i), (a)(ii) or (a)(iii) of this Section 4 will be payable in cash semiannually on each
April 15 and October 15 (to the holders of record on the April 1 and October 1 immediately preceding 

 

11 

such dates), commencing with the first such date occurring after any such Additional Interest commences to accrue. The amount of Additional
Interest will be determined by multiplying the applicable Additional Interest rate by the principal amount of the Registrable Notes, multiplied by a fraction, the numerator of which is the number of days such Additional Interest rate was applicable
during such period (determined on the basis of a 360-day year comprised of twelve 30 day months and, in the case of a partial month, the actual number of days elapsed), and the denominator of which is 360. 
 
5. Registration Procedures. In connection with the
filing of any Registration Statement pursuant to Section 2 or 3 hereof, the Company shall effect such registrations to permit the sale of the securities covered thereby in accordance with the intended method or methods of disposition thereof, and
pursuant thereto and in connection with any Registration Statement filed by the Company hereunder, the Company shall: 
 
(a) Prepare and file with the SEC prior to the applicable Filing Date a Registration Statement or Registration Statements
as prescribed by Section 2 or 3 hereof, and use its reasonable best efforts to cause each such Registration Statement to become effective and remain effective as provided herein; provided, however, that if (1) such filing is pursuant
to Section 3 hereof or (2) a Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2 hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange
Notes during the Applicable Period relating thereto from whom the Company has received written notice that it will be a Participating Broker-Dealer in the Exchange Offer, before filing any Registration Statement or Prospectus or any amendments or
supplements thereto, the Company shall furnish to with respect to clause (1) above and only if so requested with respect to clause (2) above, and afford the Holders of the Registrable Notes covered by such Registration Statement (with respect to a
Registration Statement filed pursuant to Section 3 hereof) or each such Participating Broker-Dealer (with respect to any such Registration Statement), as the case may be, their counsel and the managing underwriters, if any, a reasonable opportunity
to review copies of all such documents (including copies of any documents to be incorporated by reference therein and all exhibits thereto) proposed to be filed (in each case at least three Business Days prior to such filing or such other date as is
reasonable under the circumstances). The Company shall not file any Registration Statement or Prospectus or any amendments or supplements thereto if the Holders of a majority in aggregate principal amount of the Registrable Notes covered by such
Registration Statement, their counsel, or the managing underwriters, if any, shall reasonably object on a timely basis; provided, however, that if the Company’s failure to file a Registration Statement or Prospectus, or any
amendments or supplements thereto, in the applicable time periods as set forth in Section 4 hereof, is based solely upon such an objection, no Additional Interest shall accrue. 
 

12 

 
(b) Prepare and file with the SEC such amendments and post-effective amendments to each Shelf Registration Statement or Exchange Offer Registration Statement, as the case may be, as may be necessary to keep such Registration
Statement continuously effective for the Effectiveness Period, the Applicable Period or until consummation of the Exchange Offer, as the case may be; cause the related Prospectus to be supplemented by any Prospectus supplement required by applicable
law, and as so supplemented to be filed pursuant to Rule 424; and comply with the provisions of the Securities Act applicable to it with respect to the disposition of all securities covered by such Registration Statement as so amended or in such
Prospectus as so supplemented and with respect to the subsequent resale of any securities being sold by an Participating Broker-Dealer covered by any such Prospectus. 
 
(c) If (1) a Shelf Registration is filed pursuant to Section 3 hereof, or (2) a Prospectus
contained in the Exchange Offer Registration Statement filed pursuant to Section 2 hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period relating
thereto from whom the Company has received written notice that it will be a Participating Broker-Dealer in the Exchange Offer, notify the selling Holders of Registrable Notes who have provided the information to the Company as required by the
paragraphs following Section 5(p) hereof (with respect to a Registration Statement filed pursuant to Section 3 hereof), or each such Participating Broker-Dealer (with respect to any such Registration Statement), as the case may be, their counsel and
the managing underwriters, if any, promptly, and confirm such notice in writing, (i) when a Prospectus or any Prospectus supplement or post-effective amendment has been filed, and, with respect to a Registration Statement or any post-effective
amendment, when the same has become effective under the Securities Act, (ii) of the issuance by the SEC of any stop order suspending the effectiveness of a Registration Statement or of any order preventing or suspending the use of any preliminary
prospectus or the initiation of any proceedings for that purpose, (iii) if at any time when a prospectus is required by the Securities Act to be delivered in connection with sales of the Registrable Notes or resales of Exchange Notes by
Participating Broker-Dealers the representations and warranties of the Company contained in any agreement (including any underwriting agreement) contemplated by Section 5(k) hereof cease to be true and correct, (iv) of the receipt by the Company of
any notification with respect to the suspension of the qualification or exemption from qualification of a Registration Statement or any of the Registrable Notes or the Exchange Notes to be sold by any Participating Broker-Dealer for offer or sale in
any jurisdiction, or the initiation or, if actually known by the Company, threatening of any proceeding for such purpose, (v) of the happening of any event, the existence of any condition or any information becoming known that makes any statement
made in such Registration Statement or related Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in or 

 

13 

amendments or supplements to such Registration Statement, Prospectus or documents so that, in the case of the Registration Statement, it will
not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, and that in the case of the Prospectus, it will not contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and (vi) of the Company’s
determination that a post-effective amendment to a Registration Statement would be appropriate. 
 
(d) Use its reasonable best efforts to prevent the issuance of any order suspending the effectiveness of a Registration
Statement or of any order preventing or suspending the use of a Prospectus or suspending the qualification (or exemption from qualification) of any of the Registrable Notes or the Exchange Notes to be sold by any Participating Broker-Dealer, for
sale in any jurisdiction, and, if any such order is issued, to use its reasonable best efforts to obtain the withdrawal of any such order at the earliest practicable moment. 
 
(e) If a Shelf Registration is filed pursuant to Section 3 and if requested during the
Effectiveness Period by the managing underwriter or underwriters (if any), the Holders of a majority in aggregate principal amount of the Registrable Notes being sold in connection with an underwritten offering or any Participating Broker-Dealer,
(i) as promptly as practicable include in a prospectus supplement or post-effective amendment such information as the managing underwriter or underwriters (if any), such Holders, any Participating Broker-Dealer or counsel for any of them reasonably
request to be included therein, in each case relating solely to such parties, (ii) make all required filings of such prospectus supplement or such post-effective amendment as soon as practicable after the Company has received notification of the
matters to be included in such prospectus supplement or post-effective amendment, and (iii) supplement or make amendments to such Registration Statement. 
 
(f) If (1) a Shelf Registration is filed pursuant to Section 3 hereof, or (2) a Prospectus contained in the Exchange Offer
Registration Statement filed pursuant to Section 2 hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, deliver to each selling Holder of
Registrable Notes who has provided the information to the Company as required by the paragraphs following Section 5(p) hereof (with respect to a Registration Statement filed pursuant to Section 3 hereof), or each such Participating Broker-Dealer
(with respect to any such Registration Statement), as the case may be, their respective counsel, and the underwriters, if any, at the sole expense of the Company, as many copies of the Prospectus or Prospectuses (including each form of preliminary
prospectus) and each amendment or supplement thereto and any docu- 
 

14 

ments incorporated by reference therein as such Persons may reasonably request; and, subject to the last paragraph of this Section 5, the
Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders of Registrable Notes or each such Participating Broker-Dealer, as the case may be, and the underwriters or agents, if any,
and dealers, if any, in connection with the offering and sale of the Registrable Notes covered by, or the sale by Participating Broker-Dealers of the Exchange Notes pursuant to, such Prospectus and any amendment or supplement thereto. 
 
(g) Prior to any public offering of
Registrable Notes or any delivery of a Prospectus contained in the Exchange Offer Registration Statement by any Participating Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, use its reasonable best efforts to register or
qualify, and to cooperate with the selling Holders of Registrable Notes or each such Participating Broker-Dealer, as the case may be, the managing underwriter or underwriters, if any, and their respective counsel in connection with the registration
or qualification (or exemption from such registration or qualification) of such Registrable Notes for offer and sale under the securities or Blue Sky laws of such jurisdictions within the United States as any selling Holder, Participating
Broker-Dealer, or the managing underwriter or underwriters reasonably request in writing; provided, however, that where Exchange Notes held by Participating Broker-Dealers or Registrable Notes are offered other than through an
underwritten offering, the Company agrees to cause its counsel to perform Blue Sky investigations and file registrations and qualifications required to be filed pursuant to this Section 5(g), keep each such registration or qualification (or
exemption therefrom) effective during the period such Registration Statement is required to be kept effective and do any and all other acts or things necessary to enable the disposition in such jurisdictions of the Exchange Notes held by
Participating Broker-Dealers or the Registrable Notes covered by the applicable Registration Statement; provided, however, that the Company shall not be required to (A) qualify generally to do business in any jurisdiction where it is
not then so qualified, (B) take any action that would subject it to general service of process in any such jurisdiction where it is not then so subject or (C) subject itself to taxation in excess of a nominal dollar amount in any such jurisdiction
where it is not then so subject. 
 
(h) Prior to the effective date of the first Registration Statement or if a Shelf Registration is filed pursuant to Section 3 hereof, (i) cooperate with the selling Holders of Registrable Notes and the managing underwriter or
underwriters, if any, to facilitate the timely preparation and delivery of certificates to the Trustee representing Registrable Notes to be sold, which certificates shall not bear any restrictive legends and shall be in a form eligible for deposit
with The Depository Trust Company, (ii) enable such Registrable Notes to be in such denominations (subject to applicable requirements contained in the Indenture) and registered in such names as the managing 

 

15 

underwriter or underwriters, if any, or Holders may request and (iii) provide a CUSIP number for the Registrable Notes. 
 
(i) Use its reasonable best efforts to cause
the Registrable Notes covered by the Registration Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to enable the seller or sellers thereof or the underwriter or underwriters, if any,
to consummate the disposition of such Registrable Notes, except as may be required solely as a consequence of the nature of such selling Holder’s business, in which case the Company will cooperate in all respects with the filing of such
Registration Statement and the granting of such approvals; provided, however, that the Company shall not be required to (A) qualify generally to do business in any jurisdiction where it is not then so qualified, (B) take any action
that would subject it to general service of process in any such jurisdiction where it is not then so subject or (C) subject itself to taxation in excess of a nominal dollar amount in any such jurisdiction where it is not then so subject.

 
(j) If (1) a Shelf Registration
is filed pursuant to Section 3 hereof, or (2) a Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2 hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who seeks to
sell Exchange Notes during the Applicable Period, upon the occurrence of any event contemplated by paragraph 5(c)(v) or 5(c)(vi) hereof, as promptly as practicable prepare and (subject to Section 5(a) hereof) file with the SEC, at the sole expense
of the Company, a supplement or post-effective amendment to the Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, or file any other required document so
that, as thereafter delivered to the purchasers of the Registrable Notes being sold thereunder (with respect to a Registration Statement filed pursuant to Section 3 hereof) or to the purchasers of the Exchange Notes to whom such Prospectus will be
delivered by a Participating Broker-Dealer (with respect to any such Registration Statement), any such Prospectus will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they were made, not misleading. Notwithstanding the foregoing, the Company shall not be required to amend or supplement a Registration Statement, any related Prospectus or
any document incorporated therein by reference, in the event that, and for one or more periods that in the aggregate shall not exceed 60 days in any 365-day period (a “Suspension Period”) if, (i) an event occurs and is continuing as
a result of which the Shelf Registration would, in the Company’s good faith judgment, contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein not misleading, and (ii)(a)
the Company determines in its good faith judgment that the disclosure of such event at such time would have a material adverse effect on the business, operations or prospects of the Company or (b) the disclosure 

 

16 

otherwise relates to a pending material business transaction that has not yet been publicly disclosed. 
 
(k) In connection with any underwritten
offering of Registrable Notes pursuant to a Shelf Registration, enter into an underwriting agreement as is customary in underwritten offerings of debt securities similar to the Notes, and, in such connection, (i) make such representations and
warranties to, and covenants with, the underwriters with respect to the business of the Company (including any acquired business, properties or entity, if applicable), and the Registration Statement, Prospectus and documents, if any, incorporated or
deemed to be incorporated by reference therein, in each case, as are customarily made by issuers to underwriters in underwritten offerings of debt securities similar to the Notes in connection with securities offerings by the Company, and confirm
the same in writing if and when requested; (ii) obtain the written opinions of counsel to the Company, and written updates thereof in form, scope and substance reasonably satisfactory to the managing underwriter or underwriters, addressed to the
underwriters covering the matters customarily covered in opinions reasonably requested in underwritten offerings in connection with securities offerings by the Company; (iii) obtain “cold comfort” letters and updates thereof in form, scope
and substance reasonably satisfactory to the managing underwriter or underwriters from the independent certified public accountants of the Company (and, if necessary, any other independent certified public accountants of the Company, or of any
business acquired by the Company, for which financial statements and financial data are, or are required to be, included or incorporated by reference in the Registration Statement), addressed to each of the underwriters, such letters to be in
customary form and covering matters of the type customarily covered in connection with securities offerings by the Company in “cold comfort” letters in connection with underwritten offerings of debt securities similar to the Notes; and
(iv) if an underwriting agreement is entered into, the same shall contain indemnification provisions and procedures no less favorable to the sellers and underwriters, if any, than those set forth in Section 7 hereof. The above shall be done at each
closing under such underwriting agreement, or as and to the extent required thereunder. 
 
(l) If (1) a Shelf Registration is filed pursuant to Section 3 hereof, or (2) a Prospectus contained in the Exchange Offer
Registration Statement filed pursuant to Section 2 hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, make available for inspection by any
selling Holder of such Registrable Notes being sold who has provided the information to the Company as required by the paragraphs following Section 5(p) hereof (with respect to a Registration Statement filed pursuant to Section 3 hereof), or each
such Participating Broker-Dealer, as the case may be, any underwriter participating in any such disposition of Registrable Notes, if any, and any attorney, accountant or other agent retained by any such selling Holder or each such 

 

17 

Participating Broker-Dealer (with respect to any such Registration Statement), as the case may be, or underwriter (any such Holders,
Participating Broker-Dealers, underwriters, attorneys, accountants or agents, collectively, the “Inspectors”), upon written request, at the offices where normally kept, during normal business hours and upon reasonable advance
notice, all pertinent financial and other records, pertinent corporate documents and instruments of the Company and subsidiaries of the Company (collectively, the “Records”), as shall be reasonably necessary to enable them to
exercise any applicable due diligence responsibilities pursuant to the Securities Act, and cause the officers, directors and employees of the Company and any of its subsidiaries to supply all information (“Information”) reasonably
requested by any such Inspector in connection with such due diligence responsibilities; provided, however, that each Inspector shall agree in writing that it will keep the Records and Information confidential and that it will not
disclose any of the Records or Information that the Company determines, in good faith, to be confidential and notifies the Inspectors in writing are confidential unless (i) the release of such Records or Information is ordered pursuant to a subpoena
or other order from a court of competent jurisdiction (subject to the requirements of such subpoena or other order), (ii) disclosure of such Records or Information is necessary, in the opinion of counsel for any Inspector, in connection with any
action, claim, suit or proceeding directly involving such Inspector and arising out of, based upon, relating to, or involving this Agreement or the Purchase Agreement, or any transactions contemplated hereby or thereby or arising hereunder or
thereunder, or (iii) the information in such Records or Information has been made generally available to the public other than by an Inspector or an “affiliate” (as defined in Rule 405) thereof; provided, however, that prior
notice shall be provided as soon as practicable to the Company of the potential disclosure of any such information by such Inspector pursuant to clause (i) of this sentence to permit the Company to obtain a protective order or take other actions to
prevent the disclosure of such information (or waive the provisions of this paragraph (l)) and that such Inspector shall take such actions as are reasonably necessary to protect the confidentiality of such information (if practicable) to the extent
such action is otherwise not inconsistent with, an impairment of the rights and interests of the Holder or any Inspector. 
 
(m) Provide an indenture trustee for the Registrable Notes or the Exchange Notes, as the case may be, and cause the
Indenture or the trust indenture provided for in Section 2(a) hereof, as the case may be, to be qualified under the TIA not later than the effective date of the first Registration Statement relating to the Registrable Notes; and in connection
therewith, cooperate with the trustee under any such indenture to effect such changes (if any) to such indenture as may be required for such indenture to be so qualified in accordance with the terms of the TIA; and execute, and use its reasonable
best efforts to cause such trustee to execute, all documents as may be required to effect such changes, and all other forms and documents required to be filed with the SEC to enable such indenture to be so qualified in a timely manner. 
 

18 

 
(n) Comply with all applicable rules and regulations of the SEC and make generally available to its securityholders with regard to any applicable Registration Statement, a consolidated earning statement satisfying the provisions of
Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the Securities Act) no later than 45 days after the end of any fiscal quarter (or 90 days after the end of any 12-month period if such period is a
fiscal year) (i) commencing at the end of any fiscal quarter in which Registrable Notes are sold to underwriters in a firm commitment or best efforts underwritten offering and (ii) if not sold to underwriters in such an offering, commencing on the
first day of the first fiscal quarter of the Company, after the effective date of a Registration Statement, which statements shall cover said 12-month periods. 
 
(o) Upon consummation of the Exchange Offer or a Private Exchange, if so requested by the
Trustee, obtain an opinion of counsel to the Company, in a form customary for underwritten transactions, addressed to the Trustee for the benefit of all Holders of Registrable Notes participating in the Exchange Offer or the Private Exchange, as the
case may be, that the Exchange Notes or Private Exchange Notes, as the case may be, and the related indenture constitute legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms,
subject to customary exceptions and qualifications. If the Exchange Offer or a Private Exchange is to be consummated, upon delivery of the Registrable Notes by Holders to the Company (or to such other Person as directed by the Company), in exchange
for the Exchange Notes or the Private Exchange Notes, as the case may be, the Company shall mark, or cause to be marked, on such Registrable Notes that such Registrable Notes are being cancelled in exchange for the Exchange Notes or the Private
Exchange Notes, as the case may be; in no event shall such Registrable Notes be marked as paid or otherwise satisfied. 
 
(p) Cooperate with each seller of Registrable Notes covered by any Registration Statement and each underwriter, if any,
participating in the disposition of such Registrable Notes and their respective counsel in connection with any filings required to be made with the National Association of Securities Dealers, Inc. (the “NASD”). 
 
No Holder of Registrable Notes as to which any registration is
being effected may include any such Registrable Notes in any Shelf Registration pursuant to this Agreement unless and until such Holder furnishes to the Company in writing such information regarding such seller and the distribution of such
Registrable Notes as the Company may, from time to time, reasonably request. The Company may exclude from such registration the Registrable Notes of any seller so long as such seller fails to furnish such information within a reasonable time (but no
later than five Business Days) after receiving such request. Each seller as to which any Shelf Registration is being effected agrees to furnish promptly to the Company all 

 

19 

information required to be disclosed in order to make the information previously furnished to the Company by such seller not materially
misleading. 
 
In the event of a Shelf
Registration, in addition to the information required to be provided by each selling Holder in accordance with the preceding paragraph, the Company may require such selling Holder to furnish to the Company such additional information regarding such
selling Holder and such selling Holder’s intended method of distribution of Registrable Notes as may be required in order to comply with the Securities Act. Each such selling Holder agrees to notify the Company as promptly as reasonably
practicable of any inaccuracy or change in information previously furnished by such selling Holder to the Company or of the occurrence of any event in either case as a result of which any prospectus relating to such Shelf Registration contains or
would contain an untrue statement of a material fact regarding such selling Holder or such selling Holder’s intended method of disposition of such Registrable Notes or omits to state any material fact regarding such selling Holder or such
selling Holder’s intended method of disposition of such Registrable Notes required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances under which they were made, and as promptly as
reasonably practicable to furnish to the Company any additional information required to correct and update any previously furnished information or required so that such prospectus shall not contain, with respect to such selling Holder or the
disposition of such Registrable Notes, an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances under which they
were made. 
 
Each Holder of Registrable Notes and
each Participating Broker-Dealer agrees by its acquisition of such Registrable Notes or Exchange Notes to be sold by such Participating Broker-Dealer, as the case may be, that, upon receipt of any notice from the Company of the happening of any
event of the kind described in Section 5(c)(ii), 5(c)(iv), 5(c)(v), or 5(c)(vi) hereof or upon receipt of notice (a “Suspension Notice”) of a Suspension Period, such Holder will forthwith discontinue disposition of such Registrable
Notes covered by such Registration Statement or Prospectus or Exchange Notes to be sold by such Holder or Participating Broker-Dealer, as the case may be, until such Holder’s or Participating Broker-Dealer’s receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 5(j) hereof, or until it is advised in writing (the “Advice”) by the Company that the use of the applicable Prospectus may be resumed. If requested in writing by the
Company, such Holder or Participating Broker-Dealer, as the case may be, will deliver to the Company all copies in its possession, other than permanent file copies then in the possession of such Holder or Participating Broker-Dealer, of the
Prospectus covering such Registrable Notes current at the time of receipt of such notice. If the Company shall give any such notice to suspend the disposition of Registrable Notes pursuant to a Registration Statement as a result of the happening of
any event of the kind described in Section 5(c)(ii), 5(c)(iv), 5(c)(v) or 5(c)(vi) hereof or upon receipt of a Suspension Notice, the Company shall be deemed to have used its reasonable best efforts to keep the Registration Statement effective
during such period of suspension provided 

 

20 

that the Company shall use its reasonable best efforts to file and have declared effective (if an amendment) as soon as practicable an
amendment or supplement to the Registration Statement. In the event that the Company shall give any such notice, each of the Applicable Period and the Effectiveness Period shall be extended by the number of days during such periods from and
including the date of the giving of such notice to and including the date when each seller of Registrable Notes covered by such Registration Statement or Exchange Notes to be sold by such Participating Broker-Dealer, as the case may be, shall have
received (x) the copies of the supplemented or amended Prospectus contemplated by Section 5(j) hereof or (y) the Advice. Each Holder of Registrable Notes agrees that the Company has the right to notify such Holders to discontinue dispositions for
one or more periods that in the aggregate shall not exceed 60 days in any 365-day period if the Board of Directors of the Company determines in good faith that there is a valid purpose for the suspension, and, in connection therewith and upon
receipt of such notice, each Holder agrees not to resell Registrable Notes pursuant to a Registration Statement during such period of suspension. 
 
6. Registration Expenses. All fees and expenses incident to the performance of or compliance with this Agreement by the Company
(other than any underwriting discounts or commissions) shall be borne by the Company, whether or not the Exchange Offer Registration Statement or any Shelf Registration Statement is filed or becomes effective or the Exchange Offer is consummated,
including, without limitation, (i) all registration and filing fees (including, without limitation, (A) fees with respect to filings required to be made with the NASD in connection with an underwritten offering and (B) fees and expenses of
compliance with state securities or Blue Sky laws (including, without limitation, reasonable fees and disbursements of counsel in an amount not to exceed $5,000 in connection with Blue Sky qualifications of the Registrable Notes or Exchange Notes
and determination of the eligibility of the Registrable Notes or Exchange Notes for investment under the laws of such jurisdictions (x) where the holders of Registrable Notes are located, in the case of the Exchange Notes, or (y) as provided in
Section 5(g) hereof, in the case of Registrable Notes or Exchange Notes to be sold by a Participating Broker-Dealer during the Applicable Period)), (ii) printing expenses, including, without limitation, expenses of printing certificates for
Registrable Notes or Exchange Notes in a form eligible for deposit with The Depository Trust Company and of printing prospectuses if the printing of prospectuses is requested by the managing underwriter or underwriters, if any, by the Holders of a
majority in aggregate principal amount of the Registrable Notes included in any Registration Statement or in respect of Registrable Notes or Exchange Notes to be sold by any Participating Broker-Dealer during the Applicable Period, as the case may
be, (iii) reasonable messenger, telephone and delivery expenses relating to the offering, sale or delivery of Registrable Notes, (iv) fees and disbursements of counsel for the Company and, in the case of a Shelf Registration, reasonable fees and
disbursements of one special counsel for all of the sellers of Registrable Notes selected by the Holder of a majority in aggregate principal amount of Registrable Notes covered by such Shelf Registration (exclusive of any counsel retained pursuant
to Section 7 hereof), (v) fees and disbursements of all independent certified public accountants referred to in Section 5(k)(iii) hereof (including, 

 

21 

without limitation, the expenses of any “cold comfort” letters required by or incident to such performance), (vi) Securities Act
liability insurance, if the Company desires such insurance, (vii) fees and expenses of all other Persons retained by the Company, (viii) the expense of any annual audit, (ix) any fees and expenses incurred in connection with the listing of the
securities to be registered on any securities exchange, if applicable, (x) the expenses relating to printing, word processing and distributing all Registration Statements, underwriting agreements, indentures and any other documents necessary in
order to comply with this Agreement and (xi) the fees and expenses of the Trustee and any exchange agent (including the fees and expenses of their counsel). 
 
7. Indemnification and Contribution. (a) The Company agrees, to indemnify and hold harmless each Holder of Registrable Notes and
each Participating Broker-Dealer selling Exchange Notes during the Applicable Period, and each Person, if any, who controls such Person or its affiliates within the meaning of Section 15 of the Act or Section 20 of the Exchange Act (each, a
“Participant”) against any losses, claims, damages or liabilities to which any Participant may become subject under the Securities Act, the Exchange Act or otherwise, insofar as any such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon: 
 
(i) any untrue statement or alleged untrue statement of any material fact contained in any Registration Statement (or any amendment thereto) or Prospectus (as amended or supplemented if the Company
shall have furnished any amendments or supplements thereto) or any preliminary prospectus; or 
 
(ii) the omission or alleged omission to state, in any (A) Registration Statement (or any amendment thereto), a material
fact required to be stated therein or necessary to make the statements therein not misleading or (B) Prospectus (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto) or any preliminary prospectus or
any supplement thereto, a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; 
 
and will reimburse, as incurred, the Participant for any legal or other expenses incurred by the Participant in connection with investigating or defending
against any such loss, claim, damage, liability or action in respect thereof; provided, however, the Company will not be liable in any such case to the extent that any such loss, claim, damage, or liability arises out of or is based
upon any untrue statement or alleged untrue statement or omission or alleged omission (i) made in any Registration Statement (or any amendment thereto) or Prospectus (as amended or supplemented if the Company shall have furnished any amendments or
supplements thereto) or any preliminary prospectus or any supplement thereto in reliance upon and in conformity with written information furnished to the Company by any Participant specifically for use therein or (ii) made in any Prospectus or any
amendment or supplement, if applicable, or 

 

22 

any preliminary prospectus or any amendment or supplement thereto, if a copy of any such Prospectus or preliminary prospectus, as amended or
supplemented, was not delivered by or on behalf of a Participant to the person asserting any claim against such Participant and the untrue statement or alleged untrue statement contained in or omission or alleged omission such Prospectus or
preliminary prospectus or any amendment or supplement thereto was corrected in the Final Memorandum, as amended or supplemented, if applicable. The indemnity provided for in this Section 7 will be in addition to any liability that the Company may
otherwise have to each Participant. The Company shall not be liable under this Section 7 for any settlement of any claim or action effected without its prior written consent, which shall not be unreasonably withheld. No Participant shall, without
the prior written consent of the Company (which shall not be unreasonably withheld), effect any settlement or compromise of any pending or threatened proceeding in respect of which the Company is or could have been a party, or indemnity could have
been sought hereunder by the Company, unless such settlement (A) includes an unconditional release of the Company, in form and substance reasonably satisfactory to the Company, from all liability on claims that are the subject matter of such
proceeding and (B) does not include any statement as to an admission of fault, culpability or failure to act by or on behalf of the Company. 
 
(b) Each Participant, severally and not jointly, agrees to indemnify and hold harmless the Company, its directors, its officers and each
person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act against any losses, claims, damages or liabilities to which the Company or any such director, officer or controlling person may
become subject under the Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) an untrue statement or alleged untrue statement of any material
fact contained in any Registration Statement or Prospectus, any amendment or supplement thereto, or any preliminary prospectus, or (ii) the omission or the alleged omission to state in any Registration Statement, or in any amendment or supplement
thereto, a material fact necessary to make the statements therein, or in the case of a Prospectus only, in light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue
statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information, furnished to the Company by the Participant, specifically for use therein; and subject to the limitation set
forth immediately preceding this clause will reimburse, as incurred, any legal or other expenses incurred by the Company or any such director, officer or controlling person in connection with investigating or defending against any such loss, claim,
damage, liability or action in respect thereof. The indemnity provided for in this Section 7 will be in addition to any liability that the Participants may otherwise have to the Company, its directors, its officers and each person who controls the
Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act. The Participants shall not be liable under this Section 7 for any settlement of any claim or action effected without their consent, which shall not be
unreasonably withheld. The Company shall not, without the prior written consent of such Partici- 

 

23 

pant (which shall not be unreasonably withheld), effect any settlement or compromise of any pending or threatened proceeding in respect of
which such Participant is or could have been a party, or indemnity could have been sought hereunder by such Participant, unless such settlement (A) includes an unconditional written release of such Participant, in form and substance reasonably
satisfactory to such Participant, from all liability on claims that are the subject matter of such proceeding and (B) does not include any statement as to an admission of fault, culpability or failure to act by or on behalf of such Participant.

 
(c) Promptly after receipt by an indemnified
party under this Section 7 of notice of the commencement of any action for which such indemnified party is entitled to indemnification under this Section 7, such indemnified party will, if a claim in respect thereof is to be made against the
indemnifying party under this Section 7, notify the indemnifying party of the commencement thereof in writing; but the omission to so notify the indemnifying party (i) will not relieve it from any liability under paragraph (a) or (b) above unless
such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification
obligation provided in paragraphs (a) and (b) above. In case any such action is brought against any indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein
and, to the extent that it may wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party; provided, however, that if the defendants
in any such action include both the indemnified party and the indemnifying party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them, then, in each such case, the
indemnifying party shall not have the right to direct the defense of such action on behalf of such indemnified party or parties and such indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of
such indemnified party or parties; provided, however, that, in said event, the indemnifying party will not liable for the expenses of more than one separate counsel (in addition to any necessary local counsel). After notice from the
indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party will not be liable to such indemnified party under this Section 7 for any legal or other expenses, other than reasonable costs of
investigation, subsequently incurred by such indemnified party in connection with the defense thereof, unless (i) the indemnified party shall have employed separate counsel in accordance with the proviso to the immediately preceding sentence (it
being understood, however, that in connection with such action the indemnifying party shall not be liable for the expenses of more than one separate counsel (in addition to necessary local counsel) in any one action or separate but substantially
similar actions in the same jurisdiction arising out of the same general allegations or circumstances, reasonably satisfactory to the Participants who sold a majority in interest of the Registrable Notes and Exchange Notes sold by all such
Participants in the case of paragraph (a) of this Section 7 or reasonably satisfactory to the Company in the case of paragraph (b) of this Section 7, representing the indemnified parties 

 

24 

under such paragraph (a) or paragraph (b), as the case may be, who are parties to such action or actions) or (ii) the indemnifying party has
authorized in writing the employment of counsel for the indemnified party at the expense of the indemnifying party. All fees and expenses reimbursed pursuant to this paragraph (c) shall be reimbursed as they are incurred. 
 
(d) In circumstances in which the indemnity agreement provided
for in the preceding paragraphs of this Section 7 is unavailable to, or insufficient to hold harmless, an indemnified party in respect of any losses, claims, damages or liabilities (or actions in respect thereof), each indemnifying party, in order
to provide for just and equitable contribution, shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate
to reflect the relative fault of the indemnifying party or parties on the one hand and the indemnified party on the other in connection with the statements or omissions or alleged statements or omissions that resulted in such losses, claims, damages
or liabilities (or actions in respect thereof). The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the Company on the one hand, or the Participants on the other, the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission or
alleged statement or omission, and any other equitable considerations appropriate in the circumstances. The parties agree that it would not be equitable if the amount of such contribution were determined by pro rata or per capita allocation or by
any other method of allocation that does not take into account the equitable considerations referred to in the first sentence of this paragraph (d). Notwithstanding any other provision of this paragraph (d), no Participant shall be obligated to make
contributions hereunder in excess of the amount by which proceeds received by such Participant in connection with the sale of the Registrable Notes and Exchange Notes, as the case may be, exceeds the aggregate amount of any damages that such
Participant has otherwise been required to pay by reason of such untrue or alleged untrue statements or omissions or alleged omissions to state a material fact, and no person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this paragraph (d), each person, if any, who controls a Participant within the meaning of Section 15 of the
Act or Section 20 of the Exchange Act shall have the same rights to contribution as the Participants, and each director of the Company, each officer of the Company and each person, if any, who controls the Company within the meaning of Section 15 of
the Act or Section 20 of the Exchange Act, shall have the same rights to contribution as the Company. 
 
8. Rules 144 and 144A. The Company covenants and agrees that it will file the reports required to be filed by it under the
Securities Act and the Exchange Act in a timely manner in accordance with the requirements of the Securities Act and the Exchange Act and, if at any time the Company is not required to file such reports, the Company will, 

 

25 

upon the written request of any Holder or beneficial owner of Registrable Notes, make available such information necessary to permit sales
pursuant to Rule 144A. The Company further covenants and agrees, for so long as any Registrable Notes remain outstanding, that it will take such further action as any Holder of Registrable Notes may reasonably request, all to the extent required
from time to time to enable such holder to sell Registrable Notes without registration under the Securities Act within the limitation of the exemptions provided by Rule 144(k) under the Securities Act and Rule 144A. 
 
9. Underwritten Registrations. If any of the
Registrable Notes covered by any Shelf Registration are to be sold in an underwritten offering, the investment banker or investment bankers and manager or managers that will manage the offering will be selected by the Holders of a majority in
aggregate principal amount of such Registrable Notes included in such offering and shall be reasonably acceptable to the Company. 
 
No Holder of Registrable Notes may participate in any underwritten registration hereunder unless such Holder (a) agrees to sell such
Holder’s Registrable Notes on the basis provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements and (b) completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents required under the terms of such underwriting arrangements. 
 
10. Miscellaneous. 
 
(a) No Inconsistent Agreements. The Company has not, as of the date hereof, and the Company shall not, after the date of this
Agreement, enter into any agreement with respect to any of its securities that is inconsistent with the rights granted to the Holders of Registrable Notes in this Agreement or otherwise conflicts with the provisions hereof; provided, however, that
the parties hereto acknowledge the existence of, and the Company’s obligations under, the Registration Rights Agreement dated as of September 3, 1991 between the Company, the Senior Management Investors named therein and the Holders named
therein. The rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent with the rights granted to the holders of the Company’s other issued and outstanding securities under any such agreements.

 
(b) Amendments and Waivers. The
provisions of this Agreement may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, otherwise than with the prior written consent of (I) the Company, and (II)(A) the Holders
of not less than a majority in aggregate principal amount of the then outstanding Registrable Notes affected by such amendment, modification, supplement, waiver or consent to departures from the provisions hereof and (B) in circumstances that would
adversely affect the Participating Broker-Dealers, the Participating Broker-Dealers holding not less than a majority in aggregate principal amount of the Exchange Notes held by all Participating Broker-Dealers; provided, however, no
amendment, modification, supple- 

 

26 

ment, waiver or consent to departures from the provisions of Section 7 and this Section 10(b) shall be effective against any Holder of
Registrable Notes unless consented to by such Holder. Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders of Registrable Notes whose
securities are being sold pursuant to a Registration Statement and that does not directly or indirectly affect, impair, limit or compromise the rights of other Holders of Registrable Notes may be given by Holders of at least a majority in aggregate
principal amount of the Registrable Notes being sold pursuant to such Registration Statement and with the consent of the Company. 
 
(c) Notices. All notices and other communications (including, without limitation, any notices or other communications to the
Trustee) provided for or permitted hereunder shall be made in writing by hand-delivery, registered first-class mail, next-day air courier or facsimile: 
 
(i) if to a Holder of the Registrable Notes or any Participating Broker-Dealer, at the most current address of such Holder
or Participating Broker-Dealer, as the case may be, set forth on the records of the registrar under the Indenture, with a copy in like manner to the Initial Purchasers as follows: 
 
Deutsche Bank Securities Inc. 
31 West 52nd Street 
New York, New York 10019 
Facsimile No.: (646) 324-7467

Attention: Corporate Finance Department 
 
with a copy to: 
 
Cahill Gordon & Reindel 
80 Pine Street 
New York, New York 10005 
Facsimile No.: (212) 269-5420

Attention: John A. Tripodoro, Esq. 
 

	 	(ii)	 	if to the Initial Purchasers, at the address specified in Section 10(c)(i); 

 

	 	(iii)	 	if to the Company, at the address as follows: 

 
Dan River Inc. 
2291 Memorial Drive 
Danville, Virginia 24541 
Facsimile No.: (434) 799-7699 
Attention: Joseph Lanier, Jr. 
 

27 

 
with a copy to: 
 
King & Spalding LLP 
1185 Avenue of the Americas 
New York, New York 10036 
Facsimile No.: (212) 556-2222 
Attention: Mary A. Bernard,
Esq. 
 
All such notices and communications shall
be deemed to have been duly given: when delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; one Business Day after being timely delivered to a next-day air courier; and upon
written confirmation, if sent by facsimile. 
 
Copies of all such notices, demands or other communications shall be concurrently delivered by the Person giving the same to the Trustee at the address and in the manner specified in such Indenture. 
 
(d) Successors and Assigns. This Agreement shall inure
to the benefit of and be binding upon the successors and assigns of each of the parties hereto, the Holders and the Participating Broker-Dealers; provided, however, that nothing herein shall be deemed to permit any assignment, transfer
or other disposition of Registrable Notes in violation of the terms of the Purchase Agreement or the Indenture. If any transferee of any Holder shall acquire Registrable Notes, whether by operation of law or otherwise, such Registrable Notes shall
be held subject to all of the terms of this Agreement, and by taking and holding such Registrable Notes, such person shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement,
including the restrictions on resale set forth in this Agreement and, if applicable, the Purchase Agreement, and such person shall be entitled to receive the benefits hereof. 
 
(e) Counterparts. This Agreement may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 
 
(f) Headings. The headings in this Agreement are for convenience of reference only and shall not limit
or otherwise affect the meaning hereof. 
 
(g)
Governing Law. THE VALIDITY AND INTERPRETATION OF THIS AGREEMENT, AND THE TERMS AND CONDITIONS SET FORTH HEREIN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
 

28 

 
(h)
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set
forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same
result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without
including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 
 
(i) Notes Held by the Company or Its Affiliates. Whenever the consent or approval of Holders of a specified percentage of Registrable Notes is required hereunder, Registrable Notes held by the
Company or its Affiliates shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage. 
 
(j) Third-Party Beneficiaries. Holders of Registrable Notes and Participating Broker-Dealers are intended third-party beneficiaries
of this Agreement, and this Agreement may be enforced by such Persons. 
 
(k) Entire Agreement. This Agreement, together with the Purchase Agreement and the Indenture, is intended by the parties as a final and exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein and therein and any and all prior oral or written agreements, representations, or warranties, contracts, understandings, correspondence, conversations and memoranda between the Holders on the one hand
and the Company on the other, or between or among any agents, representatives, parents, subsidiaries, affiliates, predecessors in interest or successors in interest with respect to the subject matter hereof and thereof are merged herein and replaced
hereby. 
 

29 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

  

	DAN RIVER INC.
		
	 By:
	 	 /S/    DENISE LAUSSADE

	 	 	 Name: Denise Laussade
 Title: Vice President, Finance

  

 S-1 

	
	 The foregoing Agreement is hereby
 confirmed and accepted as of the date
 first above written.

	
	DEUTSCHE BANK SECURITIES INC.
	WACHOVIA SECURITIES, INC.
	FLEET SECURITIES, INC.
		
	 By:
	 	 Deutsche Bank Securities Inc.

		
	 By:
	 	 /S/    GARRY HERDLER

	 	 	Name: Garry Herdler
	 	 	Title: Director
		
	 By:
	 	 /S/    AMELIA SILVER

	 	 	Name: Amelia Silver
	 	 	Title: Managing Director

  

 S-2Security Agreement

EXHIBIT 4.4 
 
SECURITY AGREEMENT 
 
This SECURITY AGREEMENT, dated as of April 15, 2003 (as amended, restated, supplemented or otherwise
modified, this “Agreement”), is between DAN RIVER INC., a Georgia corporation (the “Company”), the Guarantors of the Company party hereto from time to time (together with the Company, the
“Grantors”) and HSBC BANK USA, a New York banking corporation and trust company, as trustee (the “Trustee”) pursuant to the Indenture (as hereinafter defined). 
 
RECITALS 
 
WHEREAS, pursuant to that certain Indenture dated as of
April 15, 2003, by and between the Company, the Guarantors, if any, and the Trustee (as amended, restated, supplemented or otherwise modified from time to time, the “Indenture”), pursuant to which the Company has issued its 12-3/4%
Senior Notes due 2009 (the “Senior Notes”); 
 
WHEREAS, it is contemplated that the Company may, after the date hereof, issue Exchange Notes and Additional Notes (each as defined in the Indenture; the Exchange Notes and the Additional Notes, together with the Senior Notes,
the “Notes”), in each case, pursuant to the provisions of the Indenture; 
 
WHEREAS, the Grantors are or will be the legal owners of or have or will have rights in the Collateral (as hereinafter defined); and 
 
WHEREAS, in order to induce the Trustee to enter into the Indenture for the benefit of itself and the
Holders, the Grantors have agreed to grant Note Liens on the Collateral during any Secured Period to secure the payment and performance of all of the Obligations (as hereinafter defined). 
 
NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained and for
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 
1. Defined Terms. Unless otherwise defined herein, terms defined in the Indenture are used herein as therein defined
(including the rules of construction set forth in Section 1.4 of the Indenture) and the following shall have (unless otherwise provided elsewhere in this Agreement) the following respective meanings (such meanings being equally applicable to both
the singular and plural form of the terms defined): 
 
“Agent” means the Agent under the Credit Agreement. 
 
“Bankruptcy Proceeding” has the meaning assigned thereto in the Credit Agreement. 
 
“Collateral Account” has the meaning assigned thereto in the Indenture. 

 
“Credit Agreement” means (i) the Credit Agreement dated as of April 15, 2003, by and among (among others) the Company, Deutsche Bank Trust Company Americas and the lenders from time to time a party thereto,
and (ii) any Future First-Lien Credit Facility (as defined in the Intercreditor Agreement). 
 
“Deposit Accounts” means all “deposit accounts,” as such term is defined in the UCC. 
 
“Discharge of Senior Lender Claims” has the meaning assigned thereto in the
Intercreditor Agreement. 
 
“Domestic” means, with reference to any corporation or other entity, that such entity is organized under the laws of the United States or any state of the United States or the District of Columbia.

 
“Equipment” means, with
respect to any Person, (a) all of such Person’s “equipment” as such term is defined in the UCC, whether existing now or in the future, and (b) all of the following (regardless of how classified in the UCC): machinery, equipment,
furniture, furnishings, fixtures, and other tangible personal property (except Inventory), including embedded software, motor vehicles, aircraft, dies, tools, jigs, molds and office equipment, as well as all of such types of property leased by such
Person and all of such Person’s rights and interests with respect thereto under such leases (including, without limitation, options to purchase); together with all present and future additions and accessions thereto, replacements thereof,
component and auxiliary parts and supplies used or to be used in connection therewith, and all substitutes for any of the foregoing, and all manuals, drawings, instructions, warranties and rights with respect thereto; wherever any of the foregoing
is located. 
 
“Indenture
Documents” means (1) the Indenture, (2) the Security Documents (as defined in the Indenture), (3) this Agreement, (4) the Notes and (5) all amendments, modifications, restatements, supplements, consolidations, extensions, renewals and
replacements of the foregoing. 
 
“Intellectual Property” means, with respect to any Person, all of such Person’s now owned and hereafter arising or acquired (whether in the United States or any other country): patents; trademarks;
copyrights; intellectual property licenses; all rights to sue for past, present and future infringement of any of the foregoing; formulae, processes, compounds, drawings, designs, blueprints, surveys, reports, manuals, and operating standards;
goodwill (including any goodwill associated with any trademark or the license of any trademark); customer and other lists in whatever form maintained; domain names and domain name registrations; and Software and contract rights relating to software,
in whatever form created or maintained. 
 
“Inventory” means, with respect to any Person: (a) all of such Person’s “inventory” as such term is defined in the UCC, whether existing now or in the future, and (b) all of the following
regardless of how classified under the UCC: (i) all raw materials, work in process, parts, components, assemblies, supplies and materials used or consumed in such Person’s business; (ii) all goods, wares and merchandise, finished or unfinished,
held for sale or lease or 

 

2 

leased or furnished or to be furnished under contracts of service; and (iii) all goods returned or repossessed by such Person. 
 
“Mortgage” has the meaning assigned
thereto in the Indenture. 
 
“Mortgaged
Property” has the meaning assigned thereto in each Mortgage. 
 
“Net Cash Proceeds” has the meaning assigned thereto in the Indenture. 
 
“Net Insurance/Condemnation Proceeds” means any cash payments or proceeds received by any Grantor or any of its
Subsidiaries or the Trustee (a) under any business interruption or casualty insurance policy in respect of a covered loss thereunder or (b) as a result of the taking of any assets of such Grantor or any of its Subsidiaries by any Person pursuant to
the power of eminent domain, condemnation or otherwise, or pursuant to a sale of any such assets to a purchaser with such power under threat of such a taking, in each case net of any actual and reasonable documented costs incurred by such Grantor or
any of its Subsidiaries in connection with the adjustment or settlement of any claims of such Grantor or such Subsidiary in respect thereof. 
 
“Obligations” means all obligations (whether or not constituting future advances, obligatory or otherwise) of any
Grantor from time to time arising under or in respect of this Agreement and the other Indenture Documents (including, without limitation, the obligations to pay principal, interest and all other charges, fees, expenses, commissions, reimbursements,
premiums, indemnities and other payments related to or in respect of the obligations contained in this Agreement and the other Indenture Documents), in each case whether (i) such obligations are direct or indirect, secured or unsecured, joint or
several, absolute or contingent, due or to become due whether at stated maturity, by acceleration or otherwise, (ii) arising in the regular course of business or otherwise, (iii) for payment or performance and/or (iv) now existing or hereafter
arising (including, without limitation, interest and other obligations arising or accruing after the commencement of any bankruptcy, insolvency, reorganization or similar proceeding with respect to any Grantor, any Guarantor or any other Person, or
which would have arisen or accrued but for the commencement of such proceeding, even if such obligation or the claim therefor is not enforceable or allowable in such proceeding). 
 
“Secured Parties” means the Trustee and the Holders. 
 
“Senior Lender Claims” has the meaning
assigned thereto in the Intercreditor Agreement. 
 
“Shared Collateral Proceeds Deposit Accounts” means all Deposit Accounts, now or hereafter held in the name of any Grantor, into which Net Insurance/Condemnation Proceeds arising out of any sale, casualty,
condemnation or other occurrence relating to the Collateral and Net Cash Proceeds from any sale of Collateral shall be deposited pending disbursement in accordance with the Indenture and the Intercreditor Agreement. 
 
“UCC” means the Uniform Commercial
Code as in effect from time to time in the State of New York; provided that if, with respect to any financing statement or by reason of any provisions of law, the perfection or the effect of perfection or non-perfection of the Liens granted

 

3 

to the Trustee pursuant to the applicable Indenture Document is governed by the Uniform Commercial Code as in effect in a jurisdiction of the
United States other than the State of New York. “UCC” shall mean the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions of this Agreement, each Indenture Document and any
financing statement relating to such perfection or effect of perfection or non-perfection. 
 
All other undefined terms contained in this Agreement, unless the context indicates otherwise, have the meanings provided for by the UCC to the extent the same are used or defined therein.

 
Each reference in this Agreement to matters
requiring compliance with the provisions of the Credit Agreement shall at any time after Discharge of Senior Lender Claims be deemed to be a reference to the applicable provisions of the Credit Agreement as in effect on the date immediately
preceding such discharge. 
 
2. Grant of
Lien. 
 
(a) As of the
date of this Agreement and during any Unsecured Period, the Trustee and the other Secured Parties shall not be entitled to nor have any lien on the Collateral. As security for all Obligations, each Grantor hereby grants to the Trustee during any
First Priority Period, for the benefit of the Secured Parties, a continuing security interest in, lien on, assignment of and right of set-off against, the Collateral Account. As security for all Obligations, each Grantor hereby grants to the Trustee
during any Secured Period and subject to the Intercreditor Agreement, for the benefit of the Secured Parties, a continuing security interest in, lien on, assignment of and right of set-off against, all of the following property and assets of such
Grantor, whether now owned or existing or hereafter acquired or arising, regardless of where located, which lien and security interest shall, subject to Permitted Liens, (1) during any Second Priority Period be subject and subordinate to the lien
granted to the First Priority Creditors securing the First Priority Indebtedness and (2) during any First Priority Period be a first-ranking lien: 
 
(i) all Equipment; 
 
(ii) Shared Collateral Proceeds Deposit Accounts; 
 
(iii) all accessions to, substitutions for and replacements, products and proceeds of the
foregoing, including, but not limited to, proceeds of any insurance policies, claims against third parties, and condemnation or requisition payments with respect to all or any of the foregoing. 
 
The Collateral Account (during any First Priority Period) and all of the
foregoing, together with the Mortgaged Property covered by the Mortgages and all other property of the Grantors in which the Trustee may at any time be granted a Lien as collateral for the Obligations, are herein collectively referred to as the
“Collateral.” 
 
(b) All of the Obligations shall be secured by all of the Collateral. 
 

4 

 
3.
Perfection and Protection of Security Interest. 
 
(a) Subject to the continuing requirements of the Intercreditor Agreement, the Grantors shall, at the Company’s expense, perform all steps required or otherwise reasonably requested by the Trustee
at any time to perfect, maintain, protect, and enforce the Trustee’s Note Liens on the Collateral during any Secured Period, including, without limitation: (i) executing, delivering and/or filing and recording of the Mortgages and authorizing
the filing of financing or continuation statements, and amendments thereof, in form and substance reasonably satisfactory to the Trustee, or documents to similar effect under any applicable foreign law; and (ii) taking such other steps as are deemed
necessary or desirable by the Trustee to maintain and protect the Trustee’s Note Liens. 
 
(b) Subject to the Intercreditor Agreement, the Grantors hereby irrevocably authorize the Trustee and its agents at any
time and from time to time during any Secured Period to file in any filing office in any Uniform Commercial Code jurisdiction any initial financing statements and amendments thereto that (a) describe the Collateral and (b) contain any other
information required by part 5 of Article 9 of the UCC of the State of New York for the sufficiency or filing office acceptance of any financing statement or amendment, including (i) whether each Grantor is an organization, the type of organization
and any organization identification number issued to such Grantor, and (ii) in the case of a financing statement filed as a fixture filing or indicating Collateral as as-extracted collateral or timber to be cut, a sufficient description of real
property to which the Collateral relates. Each Grantor agrees to furnish any such information reasonably requested by the Trustee to the Trustee promptly, but in any event within ten (10) days, after written request therefor from the Trustee.

 
(c) From time to time during
any Secured Period, each Grantor shall, upon the Trustee’s reasonable request, execute and deliver confirmatory written instruments pledging to the Trustee, for the ratable benefit of the Secured Parties, the Collateral, but any Grantor’s
failure to do so shall not affect or limit any security interest or any other rights of the Secured Parties in and to the Collateral with respect to such Grantor. So long as the Indenture is in effect and until all Obligations have been fully
satisfied, the Trustee’s Note Liens shall continue in full force and effect on all Collateral except as provided in the Indenture and the Intercreditor Agreement. 
 
(d) Without limiting the prohibitions on mergers involving the Grantors contained in the
Indenture, no Grantor shall reincorporate or reorganize itself under the laws of any jurisdiction other than the jurisdiction in which it is incorporated or organized as of the date hereof or change its name or type of entity as identified on
Schedule 1, unless it gives the Trustee at least thirty (30) days’ prior written notice thereof and, during any Secured Period, executes any and all financing statements and other documents that the Trustee reasonably requests in
connection therewith. 
 
(e) Each
Grantor acknowledges that it is not authorized to file any financing statement or amendment or termination statement during any First Priority Period with respect to any financing statement relating to the Collateral without the prior written
consent of the Trustee and agrees that it will not do so without the prior written consent of the Trustee, subject to such Grantor’s rights under Section 9-509(d)(2) of the UCC and subject in all cases to the provisions of the Intercreditor
Agreement. 
 

5 

 
(f) Each Grantor shall preserve and protect any security interest and priority created by this Agreement and the Indenture Documents (in each case to the extent provided in the Intercreditor Agreement) and shall defend such security
interest and priority, if any, against the claims and demands of all Persons whomsoever other than Permitted Liens. 
 
4. Location of Collateral. Each Grantor represents and warrants to the Trustee and the other Secured Parties that the
Collateral will be maintained at the locations described in the Credit Agreement and at additional locations as provided in the Credit Agreement or at such other locations of which the Trustee and the Deposit Agent shall be notified as provided in
the Indenture Documents. 
 
5. Jurisdiction
of Organization. Schedule 1 hereto identifies each Grantor’s exact name as of the Closing Date as it appears in official filings in the state of its incorporation or other organization, the type of entity of the Grantor
(including corporation, partnership, limited partnership or limited liability company), organizational identification number issued by such Grantor’s state of incorporation or organization or a statement that no such number has been issued and
the jurisdiction in which such Grantor is incorporated or organized. Each Grantor has only one state of incorporation or organization. 
 
6. Title to, Liens on, and Sale and Use of Collateral. Each Grantor represents and warrants to the Trustee and the other
Secured Parties and agrees with the Trustee and the other Secured Parties that: (a) such Grantor has rights in and the power to transfer all of the Collateral free and clear of any liens, claims or interests, except Permitted Liens, and (b) such
Grantor will, during any First Priority Period, maintain the Collateral in accordance with the requirements of the Indenture. 
 
7. Equipment. 
 
(a) Each Grantor represents and warrants to the Secured Parties and agrees with the Trustee and the other Secured Parties
that, during any Secured Period, all of the Equipment owned by such Grantor is and will be used or held for use in such Grantor’s business, and is and will be fit for such purposes. Each Grantor shall, during any Secured Period, keep and
maintain its Equipment in good operating condition and repair (ordinary wear and tear excepted) in accordance with past operating practices and shall make all necessary replacements thereof. 
 
(b) Each Grantor shall not, during any
Secured Period, permit any Equipment to become a fixture with respect to real property or to become an accession with respect to other personal property with respect to which real or personal property the Trustee does not have a Lien. During any
Secured Period, no Grantor will, without the Trustee’s prior written consent, alter or remove any identifying symbol or number on any of such Grantor’s Equipment constituting Collateral. 
 
8. Right to Cure. Upon the occurrence of any
Default during any Secured Period which is then continuing, the Trustee may, subject to the provisions of the Indenture and the Intercreditor Agreement, pay any amount or do any act required of the Grantors hereunder or under any other Indenture
Document in order to preserve, protect, maintain or enforce the Obligations, the Collateral or the Trustee’s Liens therein, and which the Grantors fail to pay or do, 

 

6 

including payment of any judgment against any Grantor, any insurance premium, any landlord’s or bailee’s claim, and any other Lien
upon or with respect to the Collateral. All reasonable payments that the Trustee makes under this Section 8 and all out-of-pocket costs and expenses that the Trustee pays or incurs in connection with any action taken by it hereunder shall be
reimbursed to the Trustee by the Grantors. Any payment made or other action taken by the Trustee under this Section 8 shall be without prejudice to any right to assert an Event of Default hereunder and to proceed thereafter as herein
provided. 
 
9. Power of Attorney.
Each Grantor hereby appoints the Trustee and the Trustee’s designee as such Grantor’s attorney during any Secured Period, subject in any case to the provisions of the Intercreditor Agreement, with power: (a) if such Grantor fails or
refuses to do so after notice, to sign such Grantor’s name on any notices of assignment, financing statements and other public records and to file any such financing statements by electronic means with or without a signature as authorized or
required by applicable law or filing procedure; (b) to the extent that such Grantor’s authorization given in Section 3(b) of this Agreement is not sufficient, to file such financing statements with respect to this Agreement, with or
without such Grantor’s signature, or to file a photocopy of this Agreement in substitution for a financing statement, as the Trustee may deem appropriate and to execute in such Grantor’s name such financing statements and amendments
thereto and continuation statements which may require such Grantor’s signature; and (c) to do all things necessary or advisable to carry out the Indenture, this Agreement, and the other Indenture Documents. Each Grantor ratifies and approves
all acts of such attorney. None of the Secured Parties nor their attorneys will be liable for any acts or omissions or for any error of judgment or mistake of fact or law except for their willful misconduct. This power, being coupled with an
interest, is irrevocable during any Secured Period, subject in any case to the provisions of the Intercreditor Agreement until the Indenture has been terminated and the Obligations have been fully satisfied. 
 
10. The Trustee’s Rights, Duties and
Liabilities. 
 
(a) The
Grantors assume all responsibility and liability arising from or relating to the use, sale, license or other disposition of the Collateral. The Obligations shall not be affected by any failure of the Trustee to take any steps to perfect the
Trustee’s Liens or to collect or realize upon the Collateral, nor shall loss of or damage to the Collateral release any Grantor from any of the Obligations. Following the occurrence and during the continuation of an Event of Default during any
Secured Period, subject in all cases to the Intercreditor Agreement the Trustee may (but shall not be required to), without notice to or consent from the Grantors, sue upon or otherwise collect, extend the time for payment of, modify or amend the
terms of, compromise or settle for cash, credit, or otherwise upon any terms, grant other indulgences, extensions, renewals, compositions, or releases, and take or omit to take any other action with respect to the Collateral, any security therefor,
any agreement relating thereto, any insurance applicable thereto, or any Person liable directly or indirectly in connection with any of the foregoing, without discharging or otherwise affecting the liability of the Grantors for the Obligations or
under the Indenture or any other agreement now or hereafter existing between the Trustee and the Grantors. 
 
(b) It is expressly agreed by the Grantors that, anything herein to the contrary notwithstanding, each Grantor shall
remain liable under each of its contracts (including, without 

 

7 

limitation, any partnership agreements or limited liability company agreements relating to any Collateral) and each of its licenses to
observe and perform all the conditions and obligations to be observed and performed by it thereunder. None of the Secured Parties shall have any obligation or liability under any contract or license by reason of or arising out of this Agreement or
the granting herein of a Lien thereon or the receipt by the Trustee of any payment relating to any contract or license pursuant hereto. None of the Secured Parties shall be required or obligated in any manner to perform or fulfill any of the
obligations of any Grantor under or pursuant to any contract or license, or to make any payment, or to make any inquiry as to the nature or the sufficiency of any payment received by it or the sufficiency of any performance by any party under any
contract or license, or to present or file any claims, or to take any action to collect or enforce any performance or the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times. 
 
11. Indemnification. In any suit, proceeding or
action brought by any Secured Party relating to any Collateral for any sum owing with respect thereto or to enforce any rights or claims with respect thereto, each Grantor will save, indemnify and keep each Secured Party harmless from and against
all reasonable expense (including reasonable attorneys’ fees and expenses), loss or damage suffered by reason of any defense, setoff, counterclaim, recoupment or reduction of liability whatsoever of the account debtor or other Person obligated
on the Collateral, arising out of a breach by such Grantor of any obligation thereunder or arising out of any other agreement, indebtedness or liability at any time owing to, or in favor of, such obligor or its successors from such Grantor, except
in the case of any Secured Party, to the extent such expense, loss, or damage is attributable solely to the gross negligence or willful misconduct of such Secured Party as finally determined by a court of competent jurisdiction. All such obligations
of each Grantor shall be and remain enforceable against and only against such Grantor and shall not be enforceable against any Secured Party. 
 
12. Limitation on Liens on Collateral. The Grantors will not create, permit or suffer to exist, and will defend the
Collateral against, and take such other action as is reasonably necessary to remove, any Lien on the Collateral except Permitted Liens, and will defend the right, title and interest of the Secured Parties in and to any of the Grantors’ rights
under the Collateral against the claims and demands of all Persons whomsoever other than holders of Senior Lender Claims, subject in all cases to the Intercreditor Agreement. 
 
13. Notice Regarding Collateral. During any Secured Period, the Grantors will advise the
Trustee promptly, but in any case not later than 20 days after learning of the existence thereof (or after the commencement of such Secured Period, if later), in reasonable detail, of any Lien (other than Permitted Liens) or claim made or asserted
against any of the Collateral. 
 
14.
Remedies; Rights Upon Default. 
 
(a) In addition to all other rights and remedies granted to it under this Agreement, the Indenture, the other Indenture Documents and under any other instrument or agreement securing, evidencing or relating to any of the Obligations,
if any Event of Default shall have occurred and be continuing during any First Priority Period, the Trustee may, during any First Priority Period, exercise all rights and remedies of a secured party under the UCC or otherwise available to it at law
or in equity. Without limiting the generality of the foregoing, each Grantor 

 

8 

expressly agrees that in any such event during any First Priority Period, the Trustee, without demand of performance or other demand,
advertisement or notice of any kind (except the notice specified below of time and place of public or private sale) to or upon such Grantor or any other Person (all and each of which demands, advertisements and notices are hereby expressly waived to
the maximum extent permitted by the UCC and other applicable law), may forthwith enter upon the premises of such Grantor constituting Collateral or where any Collateral is located through self-help, without judicial process, without first obtaining
a final judgment or giving such Grantor or any other Person notice and opportunity for a hearing on the Trustee’s claim or action and may during any First Priority Period collect, receive, assemble, process, appropriate and realize upon the
Collateral, or any part thereof, and may forthwith sell, lease, license, assign, give an option or options to purchase, or sell or otherwise dispose of and deliver said Collateral (or contract to do so), or any part thereof, in one or more parcels
at a public or private sale or sales, at any exchange at such prices as it may deem acceptable, for cash or on credit or for future delivery without assumption of any credit risk. During any First Priority Period, each Secured Party shall have the
right upon any such public sale or sales and, to the extent permitted by law, upon any such private sale or sales, to purchase for the benefit of the Secured Parties, the whole or any part of said Collateral so sold, free of any right or equity of
redemption, which equity of redemption each Grantor hereby releases. Such sales may be adjourned and continued from time to time with or without notice. The Trustee shall have the right to conduct such sales on each Grantor’s premises or
elsewhere and shall have the right to use each Grantor’s premises without charge for such time or times as the Trustee deems necessary or advisable. 
 
(b) Each Grantor further agrees, at the Trustee’s request during any First Priority Period, to assemble the
Collateral and make it available to the Trustee at a place or places designated by the Trustee which are reasonably convenient to the Trustee and such Grantor, whether at such Grantor’s premises or elsewhere. During any First Priority Period,
until the Trustee is able to effect a sale, lease, or other disposition of Collateral, the Trustee shall have the right to hold or use Collateral, or any part thereof, to the extent that it deems appropriate for the purpose of preserving Collateral
or its value or for any other purpose deemed appropriate by the Trustee. The Trustee shall have no obligation to any Grantor to maintain or preserve the rights of such Grantor as against third parties with respect to Collateral while Collateral is
in the possession of the Trustee. During any First Priority Period, the Trustee may, if it so elects, seek the appointment of a receiver or keeper to take possession of Collateral and to enforce any of the Trustee’s remedies (for the benefit of
the Secured Parties), with respect to such appointment without prior notice or hearing as to such appointment. The Trustee shall apply the net proceeds of any such collection, recovery, receipt, appropriation, realization or sale, as provided under
the Indenture and only after so paying over such net proceeds, and after the payment by the Trustee of any other amount required by any provision of law, need the Trustee account for the surplus, if any, to the Grantors. To the maximum extent
permitted by applicable law, each Grantor waives all claims, damages and demands against any Secured Party arising out of the repossession, retention or sale of the Collateral except such as arise solely out of the gross negligence or willful
misconduct of the Trustee or such other Secured Party as finally determined by a court of competent jurisdiction. Each Grantor agrees that ten (10) days prior notice by the Trustee of the time and place of any public sale or of the time after which
a private sale may take place is reasonable notification of such matters. The Grantors shall remain liable for any deficiency if the proceeds of any sale or disposition of the Collateral are insufficient to pay all Obligations, in- 

 

9 

cluding any attorneys’ fees or other expenses incurred by any Secured Party to collect such deficiency. 
 
(c) Except as otherwise specifically provided
herein, each Grantor hereby waives presentment, demand, protest or any notice (to the maximum extent permitted by applicable law) of any kind in connection with this Agreement or any Collateral. 
 
(d) To the extent that applicable law imposes
duties on the Trustee to exercise remedies in a commercially reasonable manner, each Grantor acknowledges and agrees that it is not commercially unreasonable for the Trustee (i) to fail to incur expenses reasonably deemed significant by the Trustee
to prepare Collateral for disposition, (ii) to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain governmental or third party consents for the collection
or disposition of Collateral to be collected or disposed of, (iii) to fail to exercise collection remedies against account debtors or other Persons obligated on Collateral or to remove Liens on or any adverse claims against Collateral, (iv) to
exercise collection remedies against account debtors and other Persons obligated on Collateral directly or through the use of collection agencies and other collection specialists, (v) to advertise dispositions of Collateral through publications or
media of general circulation, whether or not the Collateral is of a specialized nature, (vi) to contact other Persons, whether or not in the same business as the Grantor, for expressions of interest in acquiring all or any portion of such
Collateral, (vii) to hire one or more professional auctioneers to assist in the disposition of Collateral, whether or not the Collateral is of a specialized nature, (viii) to dispose of Collateral by utilizing internet sites that provide for the
auction of assets of the types included in the Collateral or that have the reasonable capacity of doing so, or that match buyers and sellers of assets, (ix) to dispose of assets in wholesale rather than retail markets, (x) to disclaim disposition
warranties, such as title, possession or quiet enjoyment or (xi) to the extent deemed appropriate by the Trustee, to obtain the services of other brokers, investment bankers, consultants and other professionals to assist the Trustee in the
collection or disposition of any of the Collateral. Each Grantor acknowledges that the purpose of this Section 14(d) is to provide non-exhaustive indications of what actions or omissions by the Trustee would not be commercially unreasonable
in the Trustee’s exercise of remedies against the Collateral and that other actions or omissions by the Trustee shall not be deemed commercially unreasonable solely on account of not being indicated in this Section 14(d). Without
limitation of the foregoing, nothing contained in this Section 14(d) shall be construed to grant any rights to the Grantors or to impose any duties on the Trustee that would not have been granted or imposed by this Agreement or by applicable
law in the absence of this Section 14(d). 
 
15. Limitations on the Trustee’s Duty in Respect of Collateral. The Trustee shall use reasonable care with respect to the Collateral in its possession or under its control. The Trustee shall have no other duty as
to any Collateral in its possession or control or in the possession or control of any agent or nominee of the Trustee, or any income thereon or as to the preservation of rights against prior parties or any other rights pertaining thereto other than
to act reasonably and in good faith and to take such actions and exercise such care with respect to such Collateral in its possession as the Trustee would take with respect to similar property for which it is the owner. 
 

10 

 
16.
Grant of License to Use Intellectual Property. For the purpose of enabling the Trustee to exercise rights and remedies under Section 14 hereof during any First Priority Period (including, without limiting the terms of Section
14 hereof, in order to take possession of, hold, preserve, prepare for sale, market for sale, sell or otherwise dispose of Collateral) at such time as the Trustee shall be lawfully entitled to exercise such rights and remedies hereunder, the
Grantor hereby grants to the Trustee, for the benefit of the Secured Parties, an irrevocable, nonexclusive license during any First Priority Period (exercisable without payment of royalty or other compensation to the Grantor) to use, license or
sublicense any Intellectual Property now owned or hereafter acquired by the Grantor relating to the operation of the Collateral, and wherever the same may be located, and including in such license access to all media in which any of the licensed
items may be recorded or stored and to all computer software and programs used for the compilation or printout thereof other than any Intellectual Property which is the subject of an exclusive license in favor of any third party that would otherwise
prohibit such grant. 
 
17.
Miscellaneous. 
 
(a) Reinstatement. This Agreement shall remain in full force and effect and continue to be effective should any Bankruptcy Proceeding be filed by or against any Grantor for liquidation or reorganization, should any
Grantor become insolvent or make an assignment for the benefit of any creditor or creditors or should a receiver or trustee be appointed for all or any significant part of any Grantor’s assets, and shall continue to be effective or be
reinstated, as the case may be, if at any time payment and performance of the Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the
Obligations, whether as a “voidable preference,” “fraudulent conveyance,” 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 Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned. 
 
(b) Notices. Except as otherwise provided herein, whenever it is provided herein that any notice, demand,
request, consent, approval, declaration or other communication shall or may be given to or served upon any of the parties by any other party, or whenever any of the parties desires to give and serve upon any other party any communication with
respect to this Agreement, each such notice, demand, request, consent, approval, declaration or other communication shall be in writing and shall be given in the manner, and deemed received, as provided for in the Indenture. 
 
(c) Severability. Whenever
possible, each provision of this Agreement shall be interpreted in a manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Agreement. This Agreement is to be read, construed and applied together with the Indenture and the
other Indenture Documents which, taken together, set forth the complete understanding and agreement of the Trustee and the Grantors with respect to the matters referred to herein and therein. 
 

11 

 
(d) No Waiver; Cumulative Remedies. Neither the Trustee nor any other Secured Party shall by any act, delay, omission or otherwise be deemed to have waived any of its rights or remedies hereunder, and no waiver shall be
valid unless in writing, signed by the Trustee and then only to the extent therein set forth. A waiver by the Trustee of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which the Trustee would
otherwise have had on any future occasion. No failure to exercise nor any delay in exercising on the part of the Trustee or any other Secured Party, any right, power or privilege hereunder, shall operate as a waiver thereof, nor shall any single or
partial exercise of any right, power or privilege hereunder preclude any other or future exercise thereof or the exercise of any other right, power or privilege. The rights and remedies hereunder provided are cumulative and may be exercised singly
or concurrently, and are not exclusive of any rights and remedies provided by law. None of the terms or provisions of this Agreement may be waived, altered, modified or amended except by an instrument in writing, duly executed by the Trustee and the
Company. 
 
(e) Limitation
by Law. All rights, remedies and powers provided in this Agreement may be exercised only to the extent that the exercise thereof does not violate any applicable provision of law, and all the provisions of this Agreement are intended to be
subject to all applicable mandatory provisions of law that may be controlling and to be limited to the extent necessary so that they shall not render this Agreement invalid, unenforceable, in whole or in part, or not entitled to be recorded,
registered or filed under the provisions of any applicable law. 
 
(f) Termination of This Agreement. Subject to Section 17(a) hereof, this Agreement shall terminate upon the payment in full of all Obligations (other than indemnification
Obligations as to which no claim has been asserted). 
 
(g) Successors and Assigns. This Agreement and all obligations of each Grantor hereunder shall be binding upon the successors and assigns of the Grantor (including any debtor-in-possession on behalf of such
Grantor) and shall, together with the rights and remedies of the Trustee, for the benefit of the Secured Parties, hereunder, inure to the benefit of the Secured Parties, all future holders of any instrument evidencing any of the Obligations and
their respective successors and assigns. No sales of participations, other sales, assignments, transfers or other dispositions of any agreement governing or instrument evidencing the Obligations or any portion thereof or interest therein shall in
any manner affect the Lien granted to the Trustee, for the benefit of the Secured Parties, hereunder. No Grantor may assign, sell, hypothecate or otherwise transfer any interest in or obligation under this Agreement. 
 
(h) Counterparts. This
Agreement may be authenticated in any number of separate counterparts, each of which shall collectively and separately constitute one and the same agreement. This Agreement may be authenticated by manual signature, facsimile or, if approved in
writing by the Trustee, electronic means, all of which shall be equally valid. 
 
(i) Governing Law. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN ANY OF THE INDENTURE DOCUMENTS, IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS
AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE 

 

12 

OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE, AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. EACH GRANTOR
HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN NEW YORK COUNTY, CITY OF NEW YORK, SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN ANY GRANTOR AND THE SECURED PARTIES PERTAINING TO THIS
AGREEMENT OR ANY OF THE OTHER INDENTURE DOCUMENTS OR TO ANY MATTER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER INDENTURE DOCUMENTS, PROVIDED THAT THE SECURED PARTIES AND THE GRANTORS ACKNOWLEDGE THAT ANY APPEALS FROM THOSE
COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF NEW YORK COUNTY, CITY OF NEW YORK, AND PROVIDED, FURTHER, THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE THE TRUSTEE FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN
ANY OTHER JURISDICTION TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE SECURED PARTIES. EACH GRANTOR EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION
IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH GRANTOR HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR
EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT. EACH GRANTOR HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER PROCESS
MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH GRANTOR AT THE ADDRESS SET FORTH IN SECTION 14.2 OF THE INDENTURE AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER
DEPOSIT IN THE U.S. MAILS, PROPER POSTAGE PREPAID. 
 
(j) Waiver of Jury Trial. BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH
APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT DISPUTES ARISING HEREUNDER OR RELATING HERETO BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE
BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, AMONG THE TRUSTEE, THE
HOLDERS, AND THE GRANTORS ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED IN CONNECTION WITH, THIS SECURITY AGREEMENT OR ANY OF THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS RELATED HERETO OR THERETO.

 

13 

 
(k) Section Titles. The section titles contained in this Agreement are and shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto.

 
(l) No Strict
Construction. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly
by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement. 
 
(m) Advice of Counsel. Each of the parties hereto represents to each other
party hereto that it has discussed this Agreement and, specifically, the provisions of Section 17(i) and Section 17(j), with its counsel. 
 
(n) Benefit of the Holders. All Liens granted or contemplated hereby shall be for the benefit of the Secured
Parties, and all proceeds or payments realized from Collateral in accordance herewith shall be applied (i) during any First Priority Period, to the Obligations in accordance with the terms of the Indenture and this Agreement and (ii) during any
Second Priority Period, in accordance with the provisions of the Intercreditor Agreement. 
 
(o) Additional Guarantors. The Company shall cause each Guarantor under the Indenture and each Qualified
Subsidiary (as defined in the Credit Agreement) to execute and deliver to the Trustee a joinder agreement substantially in the form of Exhibit 1 annexed hereto and such other documents as the Trustee shall request, in each case, within five
Business Days of the date of such transfer of assets, upon such execution and delivery, such Qualified Subsidiary or Guarantor shall constitute a “Grantor” for all purposes hereunder with the same force and effect as if originally named as
a Grantor herein. The execution and delivery of such joinder agreement shall not require the consent of any existing Grantor hereunder. The rights and obligations of each existing Grantor hereunder shall remain in full force and effect
notwithstanding the addition of any new Grantor as a party to this Agreement. 
 
(p) Intercreditor Agreement. Notwithstanding anything herein to the contrary, the lien and security interest granted to the Trustee pursuant to this Agreement and the exercise of any
right or remedy by the Trustee hereunder are subject to the provisions of the Intercreditor Agreement. In the event of any conflict between the terms of the Intercreditor Agreement and this Agreement, the terms of the Intercreditor Agreement shall
govern. 
 
18. Trustee. 
 
(a) Indemnity. No provision of
this Agreement shall require the Trustee to expend or risk its own funds or incur any liability. The Trustee shall be under no obligation to exercise any of its rights and powers under this Agreement at the request of any Holder, pursuant to the
provisions of this Agreement, unless such Holder shall have offered to the Trustee security and indemnity reasonably satisfactory to it against any loss, liability or expense which might be incurred by it in compliance with such request or
direction. 
 

14 

 
(b) Reliance. The Trustee may conclusively rely and shall be protected in acting or refraining from acting 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. 
 
(c) Officers’ Certificate; Opinion of Counsel. Before the Trustee acts or refrain from acting, it may require an Officers’ 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 Officers’ Certificate or Opinion of Counsel. The Trustee may consult with counsel and the written advice of such counsel and Opinions 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. 
 
(d) Agents of Trustee. The Trustee may act through its attorneys, accountants,
experts and such other professionals as the Trustee deems necessary, advisable or appropriate and shall not be responsible for the misconduct or negligence of any attorney, accountant, expert or other such professional appointed with due care.

 
(e) Liability.
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 Agreement. 
 
(f) Order. Unless otherwise
specifically provided herein, any demand, request, direction or notice from the Company shall be sufficiently evidenced by a written order signed by two Officers of the Company. 
 
(g) Knowledge of Default. The Trustee shall not be charged with knowledge of
any Default or Event of Default under Section 6.1 of the Indenture (other than under Section 6.1(a) of the Indenture (subject to the following sentence) or Section 6.1(b) of the Indenture) unless either (i) a Responsible Officer shall have actual
knowledge thereof, or (ii) the Trustee shall have received notice thereof in accordance with Section 14.2 of the Indenture from the Company or any Holder. The Trustee shall not be charged with knowledge of the Company’s obligation to pay
Additional Interest, or the cessation of such obligation, unless the Trustee receives written notice thereof from the Company or any Holder. 
 
(h) Disclaimer of Certain Duties. The Trustee shall have no duty (i) to cause the maintenance of any
insurance, (ii) to see to the payment or discharge of any tax, charge or Lien levied against any part of the Collateral, or (iii) to see to the filing or refiling of any Security Documents. 
 
19. Trustee’s Disclaimer. 
 
The Trustee shall not be responsible for and makes no
representation as to the validity or adequacy of this Agreement, the Indenture, the other Indenture Documents, the Collateral or the Notes, it shall not be accountable for the Company’s use of the proceeds from the Notes or any money paid to
the Company or upon the Company’s direction under any provision of the Indenture or this Agreement, it shall not be responsible for the use or application of any 

 

15 

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. 
 
20. Compensation, Reimbursement and Indemnity of Trustee. 
 
The Company shall pay to the Trustee from time to time
reasonable compensation for its acceptance of this Agreement and the rendering by it of the services required hereunder. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The Company
shall reimburse the Trustee promptly upon request for all reasonable disbursements, advances and expenses incurred or made by or on behalf of it in addition to the compensation for its services. Such expenses shall include the reasonable
compensation, disbursements and expenses of the Trustee’s attorneys, accountants, experts and such other professionals as the Trustee deems necessary, advisable or appropriate. 
 
The Company shall indemnify the Trustee against any and all losses, liabilities or expenses incurred by it
arising out of or in connection with the acceptance or administration of its duties under this Agreement, including the costs and expenses of enforcing this Agreement against the Company or a Guarantor and defending itself against or investigating
any claim (whether asserted by the Company, any Guarantor, any Holder or any other Person) or liability in connection with the exercise or performance of any of its powers or duties hereunder, except to the extent any such loss, liability or expense
may be attributable to its gross negligence or willful misconduct. The Trustee shall notify the Company promptly of any claim for which it may seek indemnity. Failure by the Trustee to so notify the Company shall not relieve the Company of its
obligations hereunder. The Company shall defend any claim or threatened claim asserted against the Trustee, and the Trustee shall cooperate in the defense. The Trustee may have separate counsel and the Company shall pay the reasonable fees and
expenses of such counsel. The Company need not pay for any settlement made without its consent, which consent shall not be unreasonably withheld. 
 
The obligations of the Company under this Section 20 shall survive the resignation or removal of the Trustee, the satisfaction and
discharge of the Indenture and this Agreement and the termination of the Indenture and this Agreement. 
 
To secure the Company’s payment obligations in this Section 20, the Trustee shall have a Lien prior to the Notes (but subject to the
Intercreditor Agreement) on all money or property held or collected by the Trustee, except that held in trust to pay principal, Redemption Price or Purchase Price of or Additional Interest, if any, or interest on, particular Notes. Such Lien shall
survive the resignation or removal of the Trustee, the satisfaction and discharge of the Indenture and this Agreement and the termination of the Indenture and this Agreement. 
 
When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.1(f) or
(g) of the Indenture 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. 
 
[Signature Page Follows] 
 

16 

 IN WITNESS WHEREOF, each of the parties hereto has caused this Security Agreement to be executed and
delivered by its duly authorized officer as of the date first set forth above. 
  

	 GRANTOR:

	
	 DAN RIVER INC.,
 a Georgia corporation, as the Company and
 as a Grantor

		
	By:	 	 /S/    DENISE
LAUSSADE

	 	 	Name:	 	 Denise Laussade

	 	 	Title:	 	 Vice President, Finance

	
	 TRUSTEE:

	
	 HSBC BANK USA,
 as the Trustee

		
	  
 By:
	 	 /S/    FRANK
GODINO

	 	 	Name:	 	 Frank Godino

	 	 	Title:	 	 Vice President

  

 
SCHEDULE 1

to 
SECURITY AGREEMENT 
 
JURISDICTION OF ORGANIZATION 
 

	 A.
	  	 the Grantor’s official name: Dan River Inc.

	
	 B.
	  	 Type of entity (i.e. corporation, partnership, limited partnership, limited
liability company): Corporation

	
	 C.
	  	 Organizational identification number issued by the Grantor’s state of incorporation or organization or a
statement that no such number has been issued: J915881

	
	 D.
	  	 State of Incorporation or Organization: Georgia

 

EXHIBIT 1 
 
FORM OF JOINDER AGREEMENT 
 
[Name of New Grantor] 
[Address of New Grantor] 
 
[Date] 
 

	

	

	

	

 
Ladies and Gentlemen:

 
Reference is made to that certain security
agreement (as amended, restated, supplemented or otherwise modified from time to time, the “Security Agreement”; capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Security
Agreement), dated as of April 15, 2003, between Dan River Inc. (the “Company”), the Subsidiaries of the Company from time to time party thereto by execution of a joinder agreement, and HSBC Bank USA, as Trustee (in such capacity and
together with any successors in such capacity, the “Trustee”). 
 
This letter supplements the Security Agreement and is delivered by the undersigned
                     (the “New Grantor”), pursuant to Section 18(o) of the Security Agreement. The New Grantor hereby
agrees to be bound as a Grantor by all of the terms, covenants and conditions set forth in the Security Agreement to the same extent that it would have been bound if it had been a signatory to the Security Agreement on the execution date of the
Security Agreement and without limiting the generality of the foregoing, hereby grants to the Trustee, as collateral security for the full, prompt and complete payment and performance when due (whether at stated maturity, by acceleration or
otherwise) of the Obligations, a lien on and security interest in, all of its right, title and interest in, to and under the Collateral and expressly assumes all obligations and liabilities of a Grantor thereunder. The New Grantors hereby makes each
of the representations and warranties and agrees to each of the covenants applicable to the Grantors contained in the Security Agreement. 
 
Attached hereto are supplements to each of the Schedules to the Security Agreement with respect to the New Grantor. Such supplements shall
be deemed to be part of the Security Agreement. 
 
This agreement and any amendments, waivers, consents or supplements hereto may be executed in any number of counterparts and by different parties hereto in separate coun- 

terparts, each of which when so executed and delivered shall be deemed to be an original, but all such counterparts together shall constitute
one and the same agreement. 
 
THIS AGREEMENT AND
THE RIGHTS AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE, AND ANY APPLICABLE LAWS OF THE UNITED
STATES OF AMERICA, BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF A LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 
 

2 

 
IN WITNESS
WHEREOF, the New Grantor has caused this letter agreement to be executed and delivered by its duly authorized officer as of the date first above written. 
 
 

	 [NEW GRANTOR]

	
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

 
AGREED TO AND ACCEPTED: 
 

	 [                                     
                       ],

	 as Trustee

 

	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

 
[Schedules to be attached] 
 

3

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