Document:

<PAGE>

                                                                     EXHIBIT 4.4

                                                                  EXECUTION COPY

                       HAIGHTS CROSS COMMUNICATIONS, INC.

                     12 1/2% SENIOR DISCOUNT NOTES DUE 2011

                       ---------------------------------

                                   INDENTURE
                          DATED AS OF FEBRUARY 2, 2004

                       ---------------------------------

                        WELLS FARGO BANK MINNESOTA, N.A.
                                    TRUSTEE
<PAGE>

                             CROSS-REFERENCE TABLE*

<Table>
<Caption>
TRUST INDENTURE
ACT SECTION                                                   INDENTURE SECTION
---------------                                               ------------------
<S>                                                           <C>
310(a)(1)...................................................         7.10
   (a)(2)...................................................         7.10
   (a)(3)...................................................         N.A.
   (a)(4)...................................................         N.A.
   (a)(5)...................................................         7.10
   (b)......................................................         7.10
   (c)......................................................         N.A.
311(a)......................................................         7.11
   (b)......................................................         7.11
   (c)......................................................         N.A.
312(a)......................................................         2.05
   (b)......................................................        11.03
   (c)......................................................        11.03
313(a)......................................................         7.06
   (b)(2)...................................................      7.06; 7.07
   (c)......................................................     7.06; 11.02
   (d)......................................................         7.06
314(a)......................................................  4.03; 11.02; 11.05
   (c)(1)...................................................        11.04
   (c)(2)...................................................        11.04
   (c)(3)...................................................         N.A.
   (e)......................................................        11.05
   (f)......................................................         N.A.
315(a)......................................................         7.01
   (b)......................................................     7.05; 11.02
   (c)......................................................         7.01
   (d)......................................................         7.01
   (e)......................................................         6.11
316(a)(last sentence).......................................         2.09
   (a)(1)(A)................................................         6.05
   (a)(1)(B)................................................         6.04
   (a)(2)...................................................         N.A.
   (b)......................................................         6.07
   (c)......................................................         2.12
317(a)(1)...................................................         6.08
   (a)(2)...................................................         6.09
   (b)......................................................         2.04
318(a)......................................................        11.01
   (b)......................................................         N.A.
   (c)......................................................        11.01
</Table>

---------------

N.A. means not applicable.

*  This Cross Reference Table is not part of the Indenture.
<PAGE>

                               TABLE OF CONTENTS

<Table>
<Caption>
                                                                             PAGE
                                                                             ----
<S>            <C>                                                           <C>
                                   ARTICLE 1.
                          DEFINITIONS AND INCORPORATION
                                  BY REFERENCE
SECTION 1.01   Definitions.................................................   A-1
SECTION 1.02   Other Definitions...........................................  A-18
SECTION 1.03   Incorporation by Reference of Trust Indenture Act...........  A-18
SECTION 1.04   Rules of Construction.......................................  A-18

                                   ARTICLE 2.
                                    THE NOTES
SECTION 2.01   Form and Dating.............................................  A-19
SECTION 2.02   Execution and Authentication................................  A-20
SECTION 2.03   Registrar and Paying Agent..................................  A-20
SECTION 2.04   Paying Agent to Hold Money in Trust.........................  A-20
SECTION 2.05   Holder Lists................................................  A-21
SECTION 2.06   Transfer and Exchange.......................................  A-21
SECTION 2.07   Replacement Notes...........................................  A-31
SECTION 2.08   Outstanding Notes...........................................  A-31
SECTION 2.09   Treasury Notes..............................................  A-31
SECTION 2.10   Temporary Notes.............................................  A-31
SECTION 2.11   Cancellation................................................  A-32
SECTION 2.12   Defaulted Interest..........................................  A-32

                                   ARTICLE 3.
                            REDEMPTION AND PREPAYMENT
SECTION 3.01   Notices to Trustee..........................................  A-32
SECTION 3.02   Selection of Notes to Be Redeemed or Purchased..............  A-32
SECTION 3.03   Notice of Redemption........................................  A-33
SECTION 3.04   Effect of Notice of Redemption..............................  A-33
SECTION 3.05   Deposit of Redemption or Purchase Price.....................  A-33
SECTION 3.06   Notes Redeemed or Purchased in Part.........................  A-34
SECTION 3.07   Optional Redemption.........................................  A-34
SECTION 3.08   Mandatory Redemption........................................  A-35
SECTION 3.09   Offer to Purchase by Application of Excess Proceeds.........  A-35
</Table>

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<Table>
<Caption>
                                                                             PAGE
                                                                             ----
<S>            <C>                                                           <C>

                                   ARTICLE 4.
                                    COVENANTS
SECTION 4.01   Payment of Notes............................................  A-36
SECTION 4.02   Maintenance of Office or Agency.............................  A-36
SECTION 4.03   Reports.....................................................  A-37
SECTION 4.04   Compliance Certificate......................................  A-37
SECTION 4.05   Taxes.......................................................  A-38
SECTION 4.06   Stay, Extension and Usury Laws..............................  A-38
SECTION 4.07   Restricted Payments.........................................  A-38
SECTION 4.08   Dividend and Other Payment Restrictions Affecting
               Subsidiaries................................................  A-40
SECTION 4.09   Incurrence of Indebtedness and Issuance of Preferred
               Stock.......................................................  A-42
SECTION 4.10   Asset Sales.................................................  A-44
SECTION 4.11   Transactions with Affiliates................................  A-45
SECTION 4.12   Liens.......................................................  A-46
SECTION 4.13   Business Activities.........................................  A-46
SECTION 4.14   Corporate Existence.........................................  A-46
SECTION 4.15   Offer to Repurchase Upon Change of Control..................  A-46
SECTION 4.16   Limitation on Sale and Leaseback Transactions...............  A-48
SECTION 4.17   Payments for Consent........................................  A-48
SECTION 4.18   Designation of Restricted and Unrestricted Subsidiaries.....  A-48

                                   ARTICLE 5.
                                   SUCCESSORS
SECTION 5.01   Merger, Consolidation, or Sale of Assets....................  A-48
SECTION 5.02   Successor Corporation Substituted...........................  A-49

                                   ARTICLE 6.
                              DEFAULTS AND REMEDIES
SECTION 6.01   Events of Default...........................................  A-49
SECTION 6.02   Acceleration................................................  A-51
SECTION 6.03   Other Remedies..............................................  A-52
SECTION 6.04   Waiver of Past Defaults.....................................  A-52
SECTION 6.05   Control by Majority.........................................  A-52
SECTION 6.06   Limitation on Suits.........................................  A-52
SECTION 6.07   Rights of Holders of Notes to Receive Payment...............  A-53
SECTION 6.08   Collection Suit by Trustee..................................  A-53
SECTION 6.09   Trustee May File Proofs of Claim............................  A-52
SECTION 6.10   Priorities..................................................  A-53
SECTION 6.11   Undertaking for Costs.......................................  A-54
</Table>

                                       A-ii
<PAGE>

<Table>
<Caption>
                                                                             PAGE
                                                                             ----
<S>            <C>                                                           <C>

                                   ARTICLE 7.
                                     TRUSTEE
SECTION 7.01   Duties of Trustee...........................................  A-54
SECTION 7.02   Rights of Trustee...........................................  A-55
SECTION 7.03   Individual Rights of Trustee................................  A-55
SECTION 7.04   Trustee's Disclaimer........................................  A-55
SECTION 7.05   Notice of Defaults..........................................  A-55
SECTION 7.06   Reports by Trustee to Holders of the Notes..................  A-55
SECTION 7.07   Compensation and Indemnity..................................  A-56
SECTION 7.08   Replacement of Trustee......................................  A-56
SECTION 7.09   Successor Trustee by Merger, etc............................  A-57
SECTION 7.10   Eligibility; Disqualification...............................  A-57
SECTION 7.11   Preferential Collection of Claims Against Company...........  A-57

                                   ARTICLE 8.
                    LEGAL DEFEASANCE AND COVENANT DEFEASANCE
SECTION 8.01   Option to Effect Legal Defeasance or Covenant Defeasance....  A-57
SECTION 8.02   Legal Defeasance and Discharge..............................  A-58
SECTION 8.03   Covenant Defeasance.........................................  A-58
SECTION 8.04   Conditions to Legal or Covenant Defeasance..................  A-58
SECTION 8.05   Deposited Money and Government Securities to be Held in
               Trust;
               Other Miscellaneous Provisions..............................  A-59
SECTION 8.06   Repayment to Company........................................  A-60
SECTION 8.07   Reinstatement...............................................  A-60

                                   ARTICLE 9.
                        AMENDMENT, SUPPLEMENT AND WAIVER
SECTION 9.01   Without Consent of Holders of Notes.........................  A-60
SECTION 9.02   With Consent of Holders of Notes............................  A-61
SECTION 9.03   Compliance with Trust Indenture Act.........................  A-62
SECTION 9.04   Revocation and Effect of Consents...........................  A-62
SECTION 9.05   Notation on or Exchange of Notes............................  A-62
SECTION 9.06   Trustee to Sign Amendments, etc.............................  A-62

                                   ARTICLE 10.
                           SATISFACTION AND DISCHARGE
SECTION 10.01  Satisfaction and Discharge..................................  A-63
SECTION 10.02  Application of Trust Money..................................  A-63
</Table>

                                      A-iii
<PAGE>

<Table>
<Caption>
                                                                             PAGE
                                                                             ----
<S>            <C>                                                           <C>

                                   ARTICLE 11.
                                  MISCELLANEOUS
SECTION 11.01  Trust Indenture Act Controls................................  A-64
SECTION 11.02  Notices.....................................................  A-64
SECTION 11.03  Communication by Holders of Notes with Other Holders of
               Notes.......................................................  A-65
SECTION 11.04  Certificate and Opinion as to Conditions Precedent..........  A-65
SECTION 11.05  Statements Required in Certificate or Opinion...............  A-65
SECTION 11.06  Rules by Trustee and Agents.................................  A-65
SECTION 11.07  No Personal Liability of Directors, Officers, Employees and
               Stockholders................................................  A-65
SECTION 11.08  Governing Law...............................................  A-65
SECTION 11.09  No Adverse Interpretation of Other Agreements...............  A-66
SECTION 11.10  Successors..................................................  A-66
SECTION 11.11  Severability................................................  A-66
SECTION 11.12  Counterpart Originals.......................................  A-66
SECTION 11.13  Table of Contents, Headings, etc............................  A-66

                                    EXHIBITS
EXHIBIT A1     FORM OF NOTE
EXHIBIT A2     FORM OF REGULATION S TEMPORARY GLOBAL NOTE
EXHIBIT B      FORM OF CERTIFICATE OF TRANSFER
EXHIBIT C      FORM OF CERTIFICATE OF EXCHANGE
EXHIBIT D      FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL ACCREDITED
               INVESTOR
</Table>

                                       A-iv
<PAGE>

     INDENTURE dated as of February 2, 2004 between Haights Cross
Communications, Inc., a Delaware corporation (the "Company"), and Wells Fargo
Bank Minnesota, N.A., as trustee (the "Trustee").

     The Company and the Trustee agree as follows for the benefit of each other
and for the equal and ratable benefit of the Holders (as defined) of the 12 1/2%
Senior Discount Notes due 2011 (the "Notes"):

                                   ARTICLE 1.

                         DEFINITIONS AND INCORPORATION
                                  BY REFERENCE

     SECTION 1.01  Definitions.

     "144A Global Note" means a Global Note substantially in the form of Exhibit
A1 hereto bearing the Global Note Legend and the Private Placement Legend and
deposited with or on behalf of, and registered in the name of, the Depositary or
its nominee that will be issued in a denomination equal to the outstanding
principal amount at maturity of the Notes sold in reliance on Rule 144A.

     "Accreted Value" means, as of any date of determination prior to February
1, 2009, the sum of

          (1) the initial offering price of each Note and

          (2) that portion of the excess of the principal amount at maturity of
     each Note over such initial offering price as shall have been accreted on a
     daily basis at the rate of 12 1/2% per annum of the initial offering price
     of the Notes compounded semi-annually on each February 1 and August 1 from
     the date of issuance of the Notes through the date of determination.

     "Acquired Debt" means, with respect to any specified Person:

          (1) Indebtedness of any other Person existing at the time such other
     Person is merged with or into or became a Subsidiary of such specified
     Person, whether or not such Indebtedness is incurred in connection with, or
     in contemplation of, such other Person merging with or into, or becoming a
     Subsidiary of, such specified Person; and

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

     "Additional Notes" means additional Notes (other than the Initial Notes)
issued under this Indenture in accordance with Sections 2.02 and 4.09 hereof, as
part of the same series as the Initial Notes.

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

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

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

     "Asset Sale" means

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

          (2) the issuance of Equity Interests in any of the Company's
     Restricted Subsidiaries or the sale of Equity Interests in any of its
     Subsidiaries.

                                       A-1
<PAGE>

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

          (1) any single transaction or series of related transactions that
     involves assets or Equity Interests having a Fair Market Value of less than
     $1.0 million;

          (2) a transfer of assets between or among the Company and its
     Restricted Subsidiaries;

          (3) an issuance of Equity Interests by a Restricted Subsidiary of the
     Company to the Company or to a Restricted Subsidiary of the Company;

          (4) the sale or lease of products, services, accounts receivable or
     other assets in the ordinary course of business and any sale or other
     disposition of damaged, worn-out or obsolete assets in the ordinary course
     of business;

          (5) the sale or other disposition of cash or Cash Equivalents;

          (6) the licensing of intellectual property for Fair Market Value in
     the ordinary course of business; and

          (7) a Restricted Payment or Permitted Investment that is permitted by
     Section 4.07 hereof.

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

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

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

     "Board of Directors" means:

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

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

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

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

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

     "Business Day" means any day other than a Legal Holiday.

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

                                       A-2
<PAGE>

     "Capital Stock" means:

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

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

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

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

     "Cash Equivalents" means:

          (1) United States dollars;

          (2) securities issued or directly and fully guaranteed or insured by
     the United States government or any agency or instrumentality of the United
     States government (provided that the full faith and credit of the United
     States is pledged in support of those securities) having maturities of not
     more than one year from the date of acquisition;

          (3) certificates of deposit and eurodollar time deposits with
     maturities of one year or less from the date of acquisition, bankers'
     acceptances with maturities not exceeding one year and overnight bank
     deposits, in each case, with any domestic commercial bank having capital
     and surplus in excess of $500.0 million and a Thomson Bank Watch Rating of
     "B" or better;

          (4) repurchase obligations with a term of not more than 30 days for
     underlying securities of the types described in clauses (2) and (3) above
     entered into with any financial institution meeting the qualifications
     specified in clause (3) above;

          (5) commercial paper having one of the two highest ratings obtainable
     from Moody's Investors Service, Inc. or Standard & Poor's Rating Services
     and in each case maturing within one year after the date of acquisition;
     and

          (6) money market funds at least 95% of the assets of which constitute
     Cash Equivalents of the kinds described in clauses (1) through (5) of this
     definition.

     "Change of Control" means

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

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

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

          (4) the Company consolidates with, or merges with or into, any Person,
     or any Person consolidates with, or merges with or into, the Company, in
     any such event pursuant to a transaction in which any of the outstanding
     Voting Stock of the Company or such other Person is converted into or
     exchanged for cash or Cash Equivalents, securities or other property, other
     than any such transaction where the Voting Stock of the Company outstanding
     immediately prior to such transaction is converted into or exchanged for
     Voting Stock (other than Disqualified Stock) of the surviving or transferee
     Person constituting a

                                       A-3
<PAGE>

     majority of the outstanding shares of such Voting Stock of such surviving
     or transferee Person (immediately after giving effect to such issuance); or

          (5) after an initial public offering of the Company or any direct or
     indirect parent of the Company, the first day on which a majority of the
     members of the Board of Directors of the Company are not Continuing
     Directors.

     "Clearstream" means Clearstream Banking, S.A.

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

          (1) an amount equal to any extraordinary loss plus any net loss
     realized by such Person or any of its Restricted Subsidiaries in connection
     with (a) an Asset Sale or (b) the extinguishment of any Indebtedness of
     such Person or any of the Restricted Subsidiaries, in each case, to the
     extent such losses were deducted in computing such Consolidated Net Income;
     plus

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

          (3) the Consolidated Interest Expense of such Person and its
     Restricted Subsidiaries for such period, to the extent that such
     Consolidated Interest Expense was deducted in computing such Consolidated
     Net Income; plus

          (4) depreciation, amortization (including amortization of goodwill and
     other intangibles and amortization of product development expenditures, but
     excluding amortization of prepaid cash expenses that were paid in a prior
     period) and other non-cash expenses (excluding any such non-cash expense to
     the extent that it represents an accrual of or reserve for cash expenses in
     any future period or amortization of a prepaid cash expense that was paid
     in a prior period) of such Person and its Restricted Subsidiaries for such
     period to the extent that such depreciation, amortization and other
     non-cash expenses were deducted in computing such Consolidated Net Income;
     plus

          (5) the non-recurring charge of $2.8 million for the year ended
     December 31, 2002 associated with the Company's management incentive plan,
     the non-recurring restructuring charge in an amount not to exceed $2.0
     million for the year ended December 31, 2003 and $450,000 for the year
     ended December 31, 2004 associated with the Company's warehousing, customer
     service, general ledger and order fulfillment functions and the
     non-recurring restructuring charge in an amount not to exceed $1,250,000
     associated with the consolidation of functions of Chelsea House Publishers,
     LLC into Sundance/Newbridge Educational Publishing, LLC; plus

          (6) any expenses incurred or charges taken in connection with (a) the
     issuance of Notes on the date of this Indenture and the use of proceeds
     therefrom, (b) the issuance of the Haights Cross Senior Notes on August 20,
     2003 and the use of proceeds therefrom, (c) borrowings under the Term Loan
     Agreement on August 20, 2003 and (d) the execution and delivery of the
     Revolving Credit Agreement on August 20, 2003; plus

          (7) an amount equal to any gains or losses realized in connection with
     foreign currency exchange transactions; minus

          (8) non-cash items increasing such Consolidated Net Income for such
     period, other than the accrual of revenue in the ordinary course of
     business and other than the reversal of any non-cash expense to the extent
     that it represented an accrual of or reserve for cash expenses in any
     future period;

     in each case, on a consolidated basis and determined in accordance with
GAAP.

     Notwithstanding the preceding, the provision for taxes based on the income
or profits of, and the depreciation and amortization and other non-cash expenses
of, a Restricted Subsidiary of the Company will be added to Consolidated Net
Income to compute Consolidated Cash Flow of the Company only to the extent

                                       A-4
<PAGE>

that a corresponding amount would be permitted at the date of determination to
be dividended to the Company by such Restricted Subsidiary without prior
governmental approval (that has not been obtained), and without direct or
indirect restriction pursuant to the terms of its charter and all agreements,
instruments, judgments, decrees, orders, statutes, rules and governmental
regulations applicable to that Restricted Subsidiary or its stockholders.

     "Consolidated Indebtedness" means, with respect to any specified Person as
of any date of determination, the sum, without duplication, of:

          (1) the total amount of Indebtedness of such Person and its Restricted
     Subsidiaries; plus

          (2) the total amount of Indebtedness of any other Person, to the
     extent that such Indebtedness has been Guaranteed by the referent Person or
     one or more of its Restricted Subsidiaries; plus

          (3) the aggregate liquidation value of all Disqualified Stock of such
     Person and any of its Restricted Subsidiaries that have Guaranteed the
     Indebtedness of such Person and all preferred stock of the Restricted
     Subsidiaries of such Person,

     in each case, on a consolidated basis and determined in accordance with
GAAP.

     "Consolidated Interest Expense" means, with respect to any specified Person
for any period, the sum, without duplication, of:

          (1) the consolidated interest expense of such Person and its
     Restricted Subsidiaries for such period, whether paid or accrued,
     including, without limitation, amortization of debt issuance costs and
     original issue discount, non-cash interest payments, the interest component
     of any deferred payment obligations, the interest component of all payments
     associated with Capital Lease Obligations, imputed interest with respect to
     Attributable Debt, commissions, discounts and other fees and charges
     incurred in respect of letter of credit or bankers' acceptance financings,
     and net of the effect of all payments made or received pursuant to Hedging
     Obligations in respect of interest rates; plus

          (2) the consolidated interest expense of such Person and its
     Restricted Subsidiaries that was capitalized during such period; plus

          (3) any interest expense on Indebtedness of another Person that is
     Guaranteed by such Person or one of its Restricted Subsidiaries or secured
     by a Lien on assets of such Person or one of its Restricted Subsidiaries,
     whether or not such Guarantee or Lien is called upon; plus

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

     "Consolidated Net Income" means, with respect to any specified Person for
any period, the aggregate of the Net Income of such Person and its Restricted
Subsidiaries for such period, on a consolidated basis, determined in accordance
with GAAP; provided that:

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

          (2) the Net Income of any Restricted Subsidiary will be excluded to
     the extent that the declaration or payment of dividends or similar
     distributions by that Restricted Subsidiary of that Net Income is not at
     the date of determination permitted without any prior governmental approval
     (that has not been obtained) or, directly or indirectly, by operation of
     the terms of its charter or any agreement, instrument,

                                       A-5
<PAGE>

     judgment, decree, order, statute, rule or governmental regulation
     applicable to that Restricted Subsidiary or its stockholders (other than as
     permitted by Section 4.08 hereof);

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

          (4) notwithstanding clause (1) above, the Net Income of any
     Unrestricted Subsidiary will be excluded, whether or not distributed to the
     specified Person or one of its Subsidiaries; and

          (5) any non-cash restructuring or non-cash extraordinary charges taken
     by the specified Person or its Restricted Subsidiaries will be added to Net
     Income in calculating Consolidated Net Income.

     "Consolidated Secured Indebtedness" means, with respect to any specified
Person as of any date of determination, the sum, without duplication, of:

          (1) the total amount of Secured Indebtedness of such Person and its
     Restricted Subsidiaries; plus

          (2) the total amount of Secured Indebtedness of any other Person, to
     the extent that such Indebtedness has been Guaranteed by the referent
     Person or one or more of its Restricted Subsidiaries,

     in each case, on a consolidated basis and determined in accordance with
GAAP.

     "Continuing Directors" means, as of any date of determination, any member
of the Board of Directors of the Company who:

          (1) was a member of such Board of Directors on August 20, 2003;

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

          (3) was nominated by any Principal or Related Party.

     "Corporate Trust Office of the Trustee" will be at the address of the
Trustee specified in Section 11.02 hereof or such other address as to which the
Trustee may give notice to the Company.

     "Credit Facilities" means, one or more debt facilities (including, without
limitation, the Term Loan Agreement and the Revolving Credit Agreement) or
commercial paper facilities, in each case with banks or other institutional
lenders providing for revolving credit loans, term loans, receivables financing
(including through the sale of receivables to such lenders or to special purpose
entities formed to borrow from such lenders against such receivables) or letters
of credit, in each case, as amended, restated, modified, renewed, refunded,
replaced or refinanced (including by means of sales of debt securities to
institutional investors) in whole or in part from time to time, whether with the
original agents and lenders or other agents and lenders or otherwise and whether
provided under the original debt or commercial paper facility or otherwise.

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

     "Debt to Cash Flow Ratio" means, with respect to any specified Person as of
any date of determination, the ratio of (a) the Consolidated Indebtedness of
such Person as of such date to (b) the Consolidated Cash Flow of such Person for
the four most recently ended full fiscal quarters for which internal financial
statements are available immediately prior to such date of determination,
determined on a pro forma basis after giving effect to all acquisitions or
dispositions of assets made by such Person and its Restricted Subsidiaries from
the beginning of such four-quarter period through and including such date of
determination (including any related financing transactions) as if such
acquisitions and dispositions (and related financing transactions) had occurred
at the beginning of such four-quarter period.

     In addition, for purposes of calculating the Debt to Cash Flow Ratio:

          (1) acquisitions that have been made by the specified Person or any of
     its Restricted Subsidiaries, including through mergers or consolidations,
     or any Person or any of its Restricted Subsidiaries acquired by the
     specified Person or any of its Restricted Subsidiaries, and including any
     related financing

                                       A-6
<PAGE>

     transactions and including increases in ownership of Restricted
     Subsidiaries, during the four-quarter reference period or subsequent to
     such reference period and on or prior to the date on which the event for
     which the calculation of the Debt to Cash Flow Ratio is made (the
     "Calculation Date") will be given pro forma effect (in accordance with
     Regulation S-X under the Securities Act) as if they had occurred on the
     first day of the four-quarter reference period and Consolidated Cash Flow
     for such reference period shall be calculated without giving effect to
     clause (3) of the proviso set forth in the definition of Consolidated Net
     Income (it being understood that the accounting principles of the specified
     Person shall be applied to any such acquired Person as if those accounting
     principles had been applied since the first day of the four-quarter
     reference period);

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

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

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

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

          (6) if any Indebtedness bears a floating rate of interest, the
     interest expense on such Indebtedness will be calculated as if the rate in
     effect on the Calculation Date had been the applicable rate for the entire
     period (taking into account any Hedging Obligation applicable to such
     Indebtedness if such Hedging Obligation has a remaining term as at the
     Calculation Date in excess of 12 months).

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

     "Definitive Note" means a certificated Note registered in the name of the
Holder thereof and issued in accordance with Section 2.06 hereof, substantially
in the form of Exhibit A1 hereto except that such Note shall not bear the Global
Note Legend and shall not have the "Schedule of Exchanges of Interests in the
Global Note" attached thereto.

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

     "Disqualified Stock" means any Capital Stock, other than the Series B
Senior Preferred Stock, that, by its terms (or by the terms of any security into
which it is convertible, or for which it is exchangeable, in each case at the
option of the holder of the Capital Stock), or upon the happening of any event,
matures or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise, or redeemable at the option of the holder of the Capital Stock, in
whole or in part, on or prior to the date that is 91 days after the date on
which the Notes mature. Notwithstanding the preceding sentence, any Capital
Stock that would constitute Disqualified Stock solely because the holders of the
Capital Stock have the right to require the Company to repurchase such Capital
Stock upon the occurrence of a change of control or an asset sale will not
constitute Disqualified Stock if the terms of such Capital Stock provide that
the Company may not repurchase or redeem any such Capital Stock pursuant to such
provisions unless such repurchase or redemption complies Section 4.07 hereof.
The amount of Disqualified Stock deemed to be outstanding at any time for
purposes of this Indenture will be the maximum amount that the Company and its
Restricted Subsidiaries may become

                                       A-7
<PAGE>

obligated to pay upon the maturity of, or pursuant to any mandatory redemption
provisions of, such Disqualified Stock, exclusive of accrued dividends.

     "Domestic Subsidiary" means any Restricted Subsidiary of the Company that
was formed under the laws of the United States or any state of the United States
or the District of Columbia or that guarantees or otherwise provides direct
credit support for any Indebtedness of the Company.

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

     "Equity Offering" means any issuance or sale of Equity Interests (other
than Disqualified Stock) of the Company.

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

     "Exchange Act" means the Securities Exchange Act of 1934, as amended.

     "Exchange Notes" means the Notes issued in the Exchange Offer pursuant to
Section 2.06(f) hereof.

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

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

     "Existing Indebtedness" means Indebtedness of the Company and its
Subsidiaries (other than Indebtedness under the Term Loan Agreement or under the
Revolving Credit Agreement) in existence on the date of this Indenture
(including the Haights Cross Senior Notes issued on August 20, 2003), until such
amounts are repaid.

     "Fair Market Value" means the value that would be paid by a willing buyer
to an unaffiliated willing seller in a transaction not involving distress or
necessity of either party, determined in good faith by the Board of Directors of
the Company (unless otherwise provided in this Indenture).

     "Foreign Subsidiary" means any Restricted Subsidiary that is not a Domestic
Subsidiary.

     "GAAP" means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as have been approved by a significant segment of the accounting
profession, which are in effect from time to time.

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

     "Global Notes" means, individually and collectively, each of the Restricted
Global Notes and the Unrestricted Global Notes deposited with or on behalf of
and registered in the name of the Depositary or its nominee, substantially in
the form of Exhibit A1 hereto and that bears the Global Note Legend and that has
the "Schedule of Exchanges of Interests in the Global Note" attached thereto,
issued in accordance with Section 2.01, 2.06(b)(3), 2.06(b)(4), 2.06(d)(2) or
2.06(f) hereof.

     "Government Securities" means direct obligations of, or obligations
guaranteed by, the United States of America, and the payment for which the
United States pledges its full faith and credit.

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

     "Haights Cross" means Haights Cross Operating Company, a Delaware
corporation.

                                       A-8
<PAGE>

     "Haights Cross Senior Notes" means Haights Cross' 11 3/4% Senior Notes due
2011 issued pursuant to the Haights Cross Senior Notes Indenture.

     "Haights Cross Senior Notes Indenture" means the indenture governing the
Haights Cross Senior Notes, dated as of August 20, 2003, among Haights Cross,
the guarantors party thereto and the trustee thereunder.

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

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

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

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

     "Holder" means a Person in whose name a Note is registered.

     "IAI Global Note" means a Global Note substantially in the form of Exhibit
A1 hereto bearing the Global Note Legend and the Private Placement Legend and
deposited with or on behalf of and registered in the name of the Depositary or
its nominee that will be issued in a denomination equal to the outstanding
principal amount at maturity of the Notes sold to Institutional Accredited
Investors.

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

          (1) in respect of borrowed money;

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

          (3) in respect of banker's acceptances;

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

          (5) representing the balance deferred and unpaid of the purchase price
     of any property or services due more than six months after such property is
     acquired or such services are completed; or

          (6) representing any Hedging Obligations,

if and to the extent any of the preceding items (other than letters of credit,
Attributable Debt and Hedging Obligations) would appear as a liability upon a
balance sheet of the specified Person prepared in accordance with GAAP. In
addition, the term "Indebtedness" includes all Indebtedness of others secured by
a Lien on any asset of the specified Person (whether or not such Indebtedness is
assumed by the specified Person) and, to the extent not otherwise included, the
Guarantee by the specified Person of any Indebtedness of any other Person.

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

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

     "Initial Notes" means the first $135,000,000 aggregate principal amount at
maturity of Notes issued under this Indenture on the date hereof.

     "Initial Purchaser" means Bear, Stearns & Co. Inc.

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

     "Investments" means, with respect to any Person, all direct or indirect
investments by such Person in other Persons (including Affiliates) in the forms
of loans (including Guarantees or other obligations),

                                       A-9
<PAGE>

advances or capital contributions (excluding commission, travel and similar
advances to officers and employees made in the ordinary course of business),
purchases or other acquisitions for consideration of Indebtedness, Equity
Interests or other securities, together with all items that are or would be
classified as investments on a balance sheet prepared in accordance with GAAP.
If the Company or any Subsidiary of the Company sells or otherwise disposes of
any Equity Interests of any direct or indirect Subsidiary of the Company such
that, after giving effect to any such sale or disposition, such Person is no
longer a Subsidiary of the Company, the Company will be deemed to have made an
Investment on the date of any such sale or disposition equal to the Fair Market
Value of the Company's Investments in such Subsidiary that were not sold or
disposed of in an amount determined as provided in the final paragraph of
Section 4.07 hereof. The acquisition by the Company or any Subsidiary of the
Company of a Person that holds an Investment in a third Person will be deemed to
be an Investment by the Company or such Subsidiary in such third Person in an
amount equal to the Fair Market Value of the Investments held by the acquired
Person in such third Person in an amount determined as provided in the final
paragraph of Section 4.07 hereof. Except as otherwise provided in this
Indenture, the amount of an Investment will be determined at the time the
Investment is made and without giving effect to subsequent changes in value.

     "Legal Holiday" means a Saturday, a Sunday or a day on which banking
institutions in the City of New York or at a place of payment are authorized by
law, regulation or executive order to remain closed. If a payment date is a
Legal Holiday at a place of payment, payment may be made at that place on the
next succeeding day that is not a Legal Holiday, and no interest shall accrue on
such payment for the intervening period.

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

     "Lien" means, with respect to any asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such asset,
whether or not filed, recorded or otherwise perfected under applicable law,
including any conditional sale or other title retention agreement, any lease in
the nature thereof, any option or other agreement to sell or give a security
interest in and any filing of or agreement to give any financing statement under
the Uniform Commercial Code (or equivalent statutes) of any jurisdiction.

     "Liquidated Damages" means all Liquidated Damages then owing pursuant to
the Registration Rights Agreement.

     "Net Income" means, with respect to any specified Person, the net income
(loss) of such Person, determined in accordance with GAAP and before any
reduction in respect of preferred stock dividends, excluding, however:

          (1) any gain (but not loss), together with any related provision for
     taxes on such gain (but not loss), realized in connection with: (a) any
     Asset Sale; or (b) the disposition of any securities by such Person or any
     of its Restricted Subsidiaries or the extinguishment of any Indebtedness of
     such Person or any of its Restricted Subsidiaries; and

          (2) any extraordinary gain (but not loss), together with any related
     provision for taxes on such extraordinary gain (but not loss).

     "Net Proceeds" means the aggregate cash proceeds received by the Company or
any of its Restricted Subsidiaries in respect of any Asset Sale (including,
without limitation, any cash received upon the sale or other disposition of any
non-cash consideration received in any Asset Sale), net of the direct costs
relating to such Asset Sale, including, without limitation, legal, accounting
and investment banking fees, and sales commissions, and any relocation expenses
incurred as a result of the Asset Sale, taxes paid or payable as a result of the
Asset Sale, in each case, after taking into account any available tax credits or
deductions and any tax sharing arrangements, and amounts required to be applied
to the repayment of Indebtedness, other than Indebtedness under a Credit
Facility, secured by a Lien on the asset or assets that were the subject of such
Asset Sale and any reserve for adjustment in respect of the sale price of such
asset or assets established in accordance with GAAP.

                                       A-10
<PAGE>

     "Non-Recourse Debt" means Indebtedness:

          (1) as to which neither the Company nor any of its Restricted
     Subsidiaries (a) provides credit support of any kind (including any
     undertaking, agreement or instrument that would constitute Indebtedness),
     (b) is directly or indirectly liable as a guarantor or otherwise, or (c)
     constitutes the lender;

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

          (3) as to which the lenders have been notified in writing that they
     will not have any recourse to the stock or assets of the Company or any of
     its Restricted Subsidiaries.

     "Non-U.S. Person" means a Person who is not a U.S. Person.

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

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

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

     "Officers' Certificate" means a certificate signed on behalf of the Company
by two Officers of the Company, one of whom must be the principal executive
officer, the principal financial officer, the treasurer or the principal
accounting officer of the Company, that meets the requirements of Section 11.05
hereof.

     "Opinion of Counsel" means an opinion from legal counsel who is reasonably
acceptable to the Trustee, that meets the requirements of Section 11.05 hereof.
The counsel may be an employee of or counsel to the Company, any Subsidiary of
the Company or the Trustee.

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

     "Permitted Business" means the lines of business conducted by the Company
and its Subsidiaries on August 20, 2003 and any businesses similar, related,
incidental or ancillary thereto or that constitutes a reasonable extension or
expansion thereof.

     "Permitted Investments" means:

          (1) any Investment in the Company or in a Restricted Subsidiary of the
     Company;

          (2) any Investment in Cash Equivalents;

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

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

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

          (4) any Investment made as a result of the receipt of non-cash
     consideration from an Asset Sale that was made pursuant to and in
     compliance with Section 4.10 hereof;

                                       A-11
<PAGE>

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

          (6) any Investments received in compromise or resolution of (A)
     obligations of trade creditors or customers that were incurred in the
     ordinary course of business of the Company or any of its Restricted
     Subsidiaries, including pursuant to any plan of reorganization or similar
     arrangement upon the bankruptcy or insolvency of any trade creditor or
     customer; or (B) litigation, arbitration or other disputes with Persons who
     are not Affiliates;

          (7) Investments represented by Hedging Obligations;

          (8) repurchases of the Notes; and

          (9) other Investments in any Person engaged primarily in a Permitted
     Business having an aggregate Fair Market Value (measured on the date each
     such Investment was made and without giving effect to subsequent changes in
     value), when taken together with all other Investments made pursuant to
     this clause (9) that are at the time outstanding not to exceed $10.0
     million less the aggregate Fair Market Value of all Investments made since
     August 20, 2003 through the date of this Indenture pursuant to clause (9)
     of the definition of "Permitted Investments" in the Haights Cross Senior
     Notes Indenture to the extent such Investments remain outstanding.

     "Permitted Liens" means

          (1) Liens securing Indebtedness and other Obligations that was
     incurred pursuant to clauses (1) or (12) of the definition of Permitted
     Debt;

          (2) Liens in favor of the Company or its Restricted Subsidiaries;

          (3) Liens on property of a Person existing at the time such Person is
     merged with or into or consolidated with the Company or any Subsidiary of
     the Company; provided that such Liens were not incurred in contemplation of
     such merger or consolidation and do not extend to any assets other than
     those of the Person merged into or consolidated with the Company or the
     Subsidiary;

          (4) Liens on property (including Capital Stock) existing at the time
     of acquisition of the property by the Company or any Subsidiary of the
     Company; provided that such Liens were not incurred in contemplation of
     such acquisition;

          (5) Liens to secure the performance of statutory obligations, surety
     or appeal bonds, performance bonds or other obligations of a like nature
     incurred in the ordinary course of business;

          (6) Liens existing on the date of this Indenture;

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

          (8) Liens imposed by law, such as carriers', warehousemen's,
     landlord's and mechanics' Liens, in each case, incurred in the ordinary
     course of business;

          (9) survey exceptions, easements or reservations of, or rights of
     others for, licenses, rights-of-way, sewers, electric lines, telegraph and
     telephone lines and other similar purposes, or zoning or other restrictions
     as to the use of real property that were not incurred in connection with
     Indebtedness and that do not in the aggregate materially adversely affect
     the value of said properties or materially impair their use in the
     operation of the business of such Person;

          (10) Liens created for the benefit of (or to secure) the Notes;

                                       A-12
<PAGE>

          (11) Liens to secure any Permitted Refinancing Indebtedness permitted
     to be incurred under this Indenture; provided, however, that:

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

             (b) the Indebtedness secured by the new Lien is not increased to
        any amount greater than the sum of (x) the outstanding principal amount
        or, if greater, committed amount, of the Permitted Referencing
        Indebtedness and (y) an amount necessary to pay any fees and expenses,
        including premiums, related to such refinancings, refunding, extension,
        renewal or replacement;

          (12) Liens securing reimbursement obligations with respect to
     commercial letters of credit that encumber documents and other property
     relating to letters of credit and products and proceeds thereof;

          (13) Liens encumbering deposits made to secure obligations arising
     from statutory, regulatory, contractual or warranty, including rights of
     offset and set-off;

          (14) Liens securing Hedging Obligations, which Hedging Obligations
     relate to Indebtedness that is otherwise permitted under this Indenture;

          (15) leases or subleases granted to others;

          (16) Liens under licensing agreements;

          (17) Liens arising from filing Uniform Commercial Code financing
     statements regarding leases;

          (18) judgment Liens not giving rise to an Event of Default;

          (19) Liens encumbering property of the Company or any of its
     Restricted Subsidiaries incurred in the ordinary course of business in
     connection with workers' compensation, unemployment insurance or other
     forms of governmental insurance or benefits, or to secure performance of
     bids, tenders, statutory obligations, leases and contracts (other than for
     Indebtedness) entered into in the ordinary course of business of the
     Company or any of its Restricted Subsidiaries;

          (20) Liens on deposits made in connection with the legal defeasance,
     covenant defeasance or satisfaction and discharge of the Haights Cross
     Senior Notes in accordance with the Haights Cross Senior Notes Indenture;
     and

          (21) Liens securing other Indebtedness; provided that the Secured Debt
     to Cash Flow Ratio for the Company's most recently ended four full fiscal
     quarters for which internal financial statements are available immediately
     preceding the date on which such Lien is created, incurred or assumed or
     has been first suffered to exist would have been no greater than 2.25 to 1,
     determined on a pro forma basis, as if the Obligations secured by such Lien
     had been incurred at the beginning of such four-quarter period.

     "Permitted Refinancing Indebtedness" means any Indebtedness of the Company
or any of its Restricted Subsidiaries issued in exchange for, or the net
proceeds of which are used to refund, refinance, replace, defease or discharge
other Indebtedness of the Company or any of its Restricted Subsidiaries (other
than intercompany Indebtedness); provided that:

          (1) the principal amount (or accreted value, if applicable) of such
     Permitted Refinancing Indebtedness does not exceed the principal amount (or
     accreted value, if applicable) of the Indebtedness extended, refinanced,
     renewed, replaced, defeased or refunded (plus all accrued interest on the
     Indebtedness and the amount of all expenses and premiums incurred in
     connection therewith);

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

          (3) if the Indebtedness being extended, refinanced, renewed, replaced,
     defeased or refunded is subordinated in right of payment to the Notes, such
     Permitted Refinancing Indebtedness has a final

                                       A-13
<PAGE>

     maturity date later than the final maturity date of, and is subordinated in
     right of payment to, the Notes on terms at least as favorable to the
     Holders of Notes as those contained in the documentation governing the
     Indebtedness being extended, refinanced, renewed, replaced, defeased or
     refunded; and

          (4) such Indebtedness is incurred either by the Company or by the
     Restricted Subsidiary who is the obligor on the Indebtedness being
     extended, refinanced, renewed, replaced, defeased or refunded.

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

     "Principals" means Media/Communications Partners III Limited Partnership
and M/C Investors L.L.C. and Great Hill Partners, LLC and its related investment
funds.

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

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

     "Registration Rights Agreement" means the Registration Rights Agreement,
dated as of February 2, 2004, by and between the Company and the Initial
Purchaser, as such agreement may be amended, modified or supplemented from time
to time and, with respect to any Additional Notes, one or more registration
rights agreements among the Company and the other parties thereto, as such
agreement(s) may be amended, modified or supplemented from time to time,
relating to rights given by the Company to the purchasers of Additional Notes to
register such Additional Notes under the Securities Act.

     "Regulation S" means Regulation S promulgated under the Securities Act.

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

     "Regulation S Permanent Global Note" means a permanent Global Note in the
form of Exhibit A1 hereto bearing the Global Note Legend and the Private
Placement Legend and deposited with or on behalf of and registered in the name
of the Depositary or its nominee, issued in a denomination equal to the
outstanding principal amount at maturity of the Regulation S Temporary Global
Note upon expiration of the Restricted Period.

     "Regulation S Temporary Global Note" means a temporary Global Note in the
form of Exhibit A2 hereto deposited with or on behalf of and registered in the
name of the Depositary or its nominee, issued in a denomination equal to the
outstanding principal amount at maturity of the Notes initially sold in reliance
on Rule 903 of Regulation S.

     "Related Party" means

          (1) any controlling stockholder, 80% (or more) owned Subsidiary, or
     immediate family member (in the case of an individual) of any Principal;

          (2) any trust, corporation, partnership or other entity, the
     beneficiaries, stockholders, partners, owners or Persons beneficially
     holding an 80% or more controlling interest of which consist of any one or
     more Principals and/or such other Persons referred to in the immediately
     preceding clause (1); or

          (3) any trust, corporation, partnership or other entity, the general
     partner of which is controlled, directly or indirectly, by Persons who,
     directly or indirectly, are general partners of a Principal.

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

     "Restricted Definitive Note" means a Definitive Note bearing the Private
Placement Legend.

                                       A-14
<PAGE>

     "Restricted Global Note" means a Global Note bearing the Private Placement
Legend.

     "Restricted Investment" means an Investment other than a Permitted
Investment.

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

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

     "Revolving Credit Agreement" means that certain Revolving Credit Agreement,
dated as August 20, 2003, by and among Haights Cross and the financial
institutions party thereto, providing for revolving credit borrowings, including
any related notes, guarantees, collateral documents, instruments and agreements
executed in connection therewith, and in each case as amended, restated,
modified, renewed, refunded, replaced (whether upon or after termination or
otherwise) or refinanced (including by means of sales of debt securities to
institutional investors) in whole or in part from time to time, whether with the
original agents and lenders or other agents and lenders or otherwise, whether
provided under the original Revolving Credit Agreement or otherwise and whether
Haights Cross or an Affiliate thereof is the borrower.

     "Rule 144" means Rule 144 promulgated under the Securities Act.

     "Rule 144A" means Rule 144A promulgated under the Securities Act.

     "Rule 903" means Rule 903 promulgated under the Securities Act.

     "Rule 904" means Rule 904 promulgated under the Securities Act.

     "SEC" means the Securities and Exchange Commission.

     "Secured Debt to Cash Flow Ratio" means, with respect to any specified
Person as of any date of determination, the ratio of (a) the Consolidated
Secured Indebtedness of such Person as of such date to (b) the Consolidated Cash
Flow of such Person for the four most recently ended full fiscal quarters for
which internal financial statements are available immediately prior to such date
of determination, determined on a pro forma basis after giving effect to all
acquisitions or dispositions of assets made by such Person and its Restricted
Subsidiaries from the beginning of such four-quarter period through and
including such date of determination (including any related financing
transactions) as if such acquisitions and dispositions (and related financing
transactions) had occurred at the beginning of such four-quarter period.

     In addition, for purposes of calculating the Secured Debt to Cash Flow
Ratio:

          (1) acquisitions that have been made by the specified Person or any of
     its Restricted Subsidiaries, including through mergers or consolidations,
     or any Person or any of its Restricted Subsidiaries acquired by the
     specified Person or any of its Restricted Subsidiaries, and including any
     related financing transactions and including increases in ownership of
     Restricted Subsidiaries, during the four-quarter reference period or
     subsequent to such reference period and on or prior to the date on which
     the event for which the calculation of the Secured Debt to Cash Flow Ratio
     is made (the "Secured Debt Calculation Date") will be given pro forma
     effect (in accordance with Regulation S-X under the Securities Act) as if
     they had occurred on the first day of the four-quarter reference period and
     Consolidated Cash Flow for such reference period shall be calculated
     without giving effect to clause (3) of the proviso set forth in the
     definition of Consolidated Net Income (it being understood that the
     accounting principles of the specified Person shall be applied to any such
     acquired Person as if those accounting principles had been applied since
     the first day of the four-quarter reference period);

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

          (3) the Consolidated Interest Expense attributable to discontinued
     operations, as determined in accordance with GAAP, and operations or
     businesses (and ownership interests therein) disposed of prior to the
     Secured Debt Calculation Date, will be excluded, but only to the extent
     that the obligations giving

                                       A-15
<PAGE>

     rise to such Consolidated Interest Expense will not be obligations of the
     specified Person or any of its Restricted Subsidiaries following the
     Secured Debt Calculation Date;

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

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

          (6) if any Indebtedness bears a floating rate of interest, the
     interest expense on such Indebtedness will be calculated as if the rate in
     effect on the Secured Debt Calculation Date had been the applicable rate
     for the entire period (taking into account any Hedging Obligation
     applicable to such Indebtedness if such Hedging Obligation has a remaining
     term as at the Secured Debt Calculation Date in excess of 12 months).

     "Secured Indebtedness" means, with respect to any specified Person, any
Indebtedness of such Person that is secured by a Lien on the assets of such
Person, plus any Indebtedness of any other Person to the extent that such
Indebtedness is secured by a Lien on the assets of the specified Person.

     "Securities Act" means the Securities Act of 1933, as amended.

     "Series B Senior Preferred Stock" means the Series B senior preferred
stock, par value $.001 per share, of the Company.

     "Shelf Registration Statement" means the Shelf Registration Statement as
defined in the Registration Rights Agreement.

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

     "Stated Maturity" means, with respect to any installment of interest or
principal on any series of Indebtedness, the date on which the payment of
interest or principal was scheduled to be paid in the documentation governing
such Indebtedness as of August 20, 2003, and will not include any contingent
obligations to repay, redeem or repurchase any such interest or principal prior
to the date originally scheduled for the payment thereof.

     "Subsidiary" means, with respect to any specified Person:

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

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

     "Term Loan Agreement" means that certain Term Loan Agreement, dated as of
August 20, 2003, by and among Haights Cross and the financial institutions party
thereto, providing for term loan borrowings, including any related notes,
guarantees, collateral documents, instruments and agreements executed in
connection therewith, and in each case as amended, restated, modified, renewed,
refunded, replaced (whether upon or after termination or otherwise) or
refinanced (including by means of sales of debt securities to institutional
investors) in whole or in part from time to time, whether with the original
agents and lenders or other agents and lenders or otherwise, whether provided
under the original Term Loan Agreement or otherwise and whether Haights Cross or
an Affiliate thereof is the borrower.

                                       A-16
<PAGE>

     "TIA" means the Trust Indenture Act of 1939 (15 U.S.C.
sec.sec. 77aaa-77bbbb) as in effect on the date on which this Indenture is
qualified thereunder.

     "Trustee" means the party named as such in the preamble to this Indenture
until a successor replaces it in accordance with the applicable provisions of
this Indenture and thereafter means the successor serving hereunder.

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

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

     "Unrestricted Subsidiary" means any Subsidiary of the Company that is
designated by the Board of Directors as an Unrestricted Subsidiary pursuant to a
Board Resolution, but only to the extent that such Subsidiary:

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

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

        (3) is a Person with respect to which neither the Company nor any of its
Restricted Subsidiaries has any direct or indirect obligation (a) to subscribe
for additional Equity Interests or (b) to maintain or preserve such Person's
financial condition or to cause such Person to achieve any specified levels of
operating results; and

        (4) has not guaranteed or otherwise directly or indirectly provided
credit support for any Indebtedness of the Company or any of its Restricted
Subsidiaries.

     Any designation of a Subsidiary of the Company as an Unrestricted
Subsidiary will be evidenced to the Trustee by filing with the Trustee a
certified copy of the Board Resolution giving effect to such designation and an
Officers' Certificate certifying that such designation complied with the
preceding conditions and was permitted by Section 4.07 hereof. If, at any time,
any Unrestricted Subsidiary would fail to meet the preceding requirements as an
Unrestricted Subsidiary, it will thereafter cease to be an Unrestricted
Subsidiary for purposes of this Indenture and any Indebtedness of such
Subsidiary will be deemed to be incurred by a Restricted Subsidiary of the
Company as of such date and, if such Indebtedness is not permitted to be
incurred as of such date under Section 4.09 hereof, the Company will be in
default of such section. The Board of Directors of the Company may at any time
designate any Unrestricted Subsidiary to be a Restricted Subsidiary;
providedthat such designation will be deemed to be an incurrence of Indebtedness
by a Restricted Subsidiary of the Company of any outstanding Indebtedness of
such Unrestricted Subsidiary and such designation will only be permitted if (1)
such Indebtedness is permitted under Section 4.09 hereof, calculated on a pro
forma basis as if such designation had occurred at the beginning of the
four-quarter reference period; and (2) no Default or Event of Default would be
in existence following such designation.

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

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

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

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

                                       A-17
<PAGE>

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

     SECTION 1.02  Other Definitions.

<Table>
<Caption>
                                                              DEFINED IN
TERM                                                           SECTION
----                                                          ----------
<S>                                                           <C>
"Affiliate Transaction".....................................     4.11
"Asset Sale Offer"..........................................     3.09
"Authentication Order"......................................     2.02
"Change of Control Offer"...................................     4.15
"Change of Control Payment".................................     4.15
"Change of Control Payment Date"............................     4.15
"Covenant Defeasance".......................................     8.03
"DTC".......................................................     2.03
"Event of Default"..........................................     6.01
"Excess Proceeds"...........................................     4.10
"incur".....................................................     4.09
"Legal Defeasance"..........................................     8.02
"Offer Amount"..............................................     3.09
"Offer Period"..............................................     3.09
"Paying Agent"..............................................     2.03
"Payment Default"...........................................     6.01
"Permitted Debt"............................................     4.09
"Purchase Date".............................................     3.09
"Registrar".................................................     2.03
"Restricted Payments".......................................     4.07
"Tax Payments"..............................................     4.07
</Table>

     SECTION 1.03  Incorporation by Reference of Trust Indenture Act.

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

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

     "indenture securities" means the Notes;

     "indenture security Holder" means a Holder of a Note;

     "indenture to be qualified" means this Indenture;

     "indenture trustee" or "institutional trustee" means the Trustee; and

     "obligor" on the Notes means the Company and any successor obligor upon the
Notes.

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

     SECTION 1.04  Rules of Construction.

     Unless the context otherwise requires:

     (1) a term has the meaning assigned to it, and references to the payment of
"principal" of a Note shall mean the payment of Accreted Value prior to February
1, 2009 to the extent applicable;

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

                                       A-18
<PAGE>

     (3) "or" is not exclusive;

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

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

     (6) provisions apply to successive events and transactions; and

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

                                   ARTICLE 2.

                                   THE NOTES

     SECTION 2.01  Form and Dating.

     (a) General.  The Notes and the Trustee's certificate of authentication
will be substantially in the form of Exhibits A1 or A2 hereto. The Notes may
have notations, legends or endorsements required by law, stock exchange rule or
usage. Each Note will be dated the date of its authentication. The Notes shall
be in denominations of $1,000 in principal amount at maturity and integral
multiples thereof.

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

     (b) Global Notes.  Notes issued in global form will be substantially in the
form of Exhibits A1 or A2 attached hereto (including the Global Note Legend
thereon and the "Schedule of Exchanges of Interests in the Global Note" attached
thereto). Notes issued in definitive form will be substantially in the form of
Exhibit A1 attached hereto (but without the Global Note Legend thereon and
without the "Schedule of Exchanges of Interests in the Global Note" attached
thereto). Each Global Note will represent such of the outstanding Notes as will
be specified therein and each shall provide that it represents the aggregate
principal amount at maturity of outstanding Notes from time to time endorsed
thereon and that the aggregate principal amount at maturity of outstanding Notes
represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges and redemptions. Any endorsement of a Global
Note to reflect the amount of any increase or decrease in the aggregate
principal amount at maturity of outstanding Notes represented thereby will be
made by the Trustee or the Custodian, at the direction of the Trustee, in
accordance with instructions given by the Holder thereof as required by Section
2.06 hereof.

     (c) Temporary Global Notes.  Notes offered and sold in reliance on
Regulation S will be issued initially in the form of the Regulation S Temporary
Global Note, which will be deposited on behalf of the purchasers of the Notes
represented thereby with the Trustee, at its New York office, as custodian for
the Depositary, and registered in the name of the Depositary or the nominee of
the Depositary for the accounts of designated agents holding on behalf of
Euroclear or Clearstream, duly executed by the Company and authenticated by the
Trustee as hereinafter provided. The Restricted Period will be terminated upon
the receipt by the Trustee of:

          (1) a written certificate from the Depositary, together with copies of
     certificates from Euroclear and Clearstream certifying that they have
     received certification of non-United States beneficial ownership of 100% of
     the aggregate principal amount at maturity of the Regulation S Temporary
     Global Note (except to the extent of any beneficial owners thereof who
     acquired an interest therein during the Restricted Period pursuant to
     another exemption from registration under the Securities Act and who will
     take delivery of a beneficial ownership interest in a 144A Global Note or
     an IAI Global Note bearing a Private Placement Legend, all as contemplated
     by Section 2.06(b) hereof); and

                                       A-19
<PAGE>

          (2) an Officers' Certificate from the Company.

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

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

     SECTION 2.02  Execution and Authentication.

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

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

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

     The Trustee will, upon receipt of a written order of the Company signed by
at least one Officer (an "Authentication Order"), authenticate Notes for
original issue.

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

     SECTION 2.03  Registrar and Paying Agent.

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

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

     The Company initially appoints the Trustee to act as the Registrar and
Paying Agent and to act as Custodian with respect to the Global Notes.

     SECTION 2.04  Paying Agent to Hold Money in Trust.

     The Company will require each Paying Agent other than the Trustee to agree
in writing that the Paying Agent will hold in trust for the benefit of Holders
or the Trustee all money held by the Paying Agent for the payment of principal,
premium or Liquidated Damages, if any, or interest on the Notes, and will notify
the Trustee of any default by the Company in making any such payment. While any
such default continues, the Trustee may require a Paying Agent to pay all money
held by it to the Trustee. The Company at any time may

                                       A-20
<PAGE>

require a Paying Agent to pay all money held by it to the Trustee. Upon payment
over to the Trustee, the Paying Agent (if other than the Company or a
Subsidiary) will have no further liability for the money. If the Company or a
Subsidiary acts as Paying Agent, it will segregate and hold in a separate trust
fund for the benefit of the Holders all money held by it as Paying Agent. Upon
any bankruptcy or reorganization proceedings relating to the Company, the
Trustee will serve as Paying Agent for the Notes.

     SECTION 2.05  Holder Lists.

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

     SECTION 2.06  Transfer and Exchange.

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

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

          (2) the Company in its sole discretion determines that the Global
     Notes (in whole but not in part) should be exchanged for Definitive Notes
     and delivers a written notice to such effect to the Trustee; provided that
     in no event shall the Regulation S Temporary Global Notes be exchanged by
     the Company for Definitive Notes prior to (x) the expiration of the
     Restricted Period and (y) the receipt by the Registrar of any certificates
     required pursuant to Rule 903(b)(3)(ii)(B) under the Securities Act.

     Upon the occurrence of either of the preceding events in (1) or (2) above,
Definitive Notes shall be issued in such names as the Depositary shall instruct
the Trustee. Global Notes also may be exchanged or replaced, in whole or in
part, as provided in Sections 2.07 and 2.10 hereof. Every Note authenticated and
delivered in exchange for, or in lieu of, a Global Note or any portion thereof,
pursuant to this Section 2.06 or Section 2.07 or 2.10 hereof, shall be
authenticated and delivered in the form of, and shall be, a Global Note. A
Global Note may not be exchanged for another Note other than as provided in this
Section 2.06(a), however, beneficial interests in a Global Note may be
transferred and exchanged as provided in Section 2.06(b), (c) or (f) hereof.

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

          (1) Transfer of Beneficial Interests in the Same Global
     Note.  Beneficial interests in any Restricted Global Notes may be
     transferred to Persons who take delivery thereof in the form of a
     beneficial interest in the same Restricted Global Notes in accordance with
     the transfer restrictions set forth in the Private Placement Legend;
     provided, however, that prior to the expiration of the Restricted Period,
     transfers of beneficial interests in the Regulation S Temporary Global
     Notes may not be made to a U.S. Person or for the account or benefit of a
     U.S. Person (other than the Initial Purchaser). Beneficial interests in any

                                       A-21
<PAGE>

     Unrestricted Global Note may be transferred to Persons who take delivery
     thereof in the form of a beneficial interest in an Unrestricted Global
     Note. No written orders or instructions shall be required to be delivered
     to the Registrar to effect the transfers described in this Section
     2.06(b)(1).

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

             (A) both:

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

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

             (B) both:

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

                (ii) instructions given by the Depositary to the Registrar
           containing information regarding the Person in whose name such
           Definitive Note shall be registered to effect the transfer or
           exchange referred to in (1) above; provided that in no event shall
           Definitive Notes be issued upon the transfer or exchange of
           beneficial interests in the Regulation S Temporary Global Notes prior
           to (A) the expiration of the Restricted Period and (B) the receipt by
           the Registrar of any certificates required pursuant to Rule 903 under
           the Securities Act. Upon consummation of an Exchange Offer by the
           Company in accordance with Section 2.06(f) hereof, the requirements
           of this Section 2.06(b)(2) shall be deemed to have been satisfied
           upon receipt by the Registrar of the instructions contained in the
           Letter of Transmittal delivered by the Holder of such beneficial
           interests in the Restricted Global Notes. Upon satisfaction of all of
           the requirements for transfer or exchange of beneficial interests in
           Global Notes contained in this Indenture and the Notes or otherwise
           applicable under the Securities Act, the Trustee shall adjust the
           principal amount at maturity of the relevant Global Note(s) pursuant
           to Section 2.06(h) hereof.

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

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

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

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

          (4) Transfer and Exchange of Beneficial Interests in a Restricted
     Global Note for Beneficial Interests in an Unrestricted Global Note.  A
     beneficial interest in any Restricted Global Notes may be exchanged by any
     holder thereof for a beneficial interest in an Unrestricted Global Note or
     transferred to

                                       A-22
<PAGE>

     a Person who takes delivery thereof in the form of a beneficial interest in
     an Unrestricted Global Note if the exchange or transfer complies with the
     requirements of Section 2.06(b)(2) above and:

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

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

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

             (D) the Registrar receives the following:

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

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

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

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

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

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

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

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

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

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

                                       A-23
<PAGE>

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

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

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

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

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

          (2) Beneficial Interests in Regulation S Temporary Global Note to
     Definitive Notes.  Notwithstanding Sections 2.06(c)(1)(A) and (C) hereof, a
     beneficial interest in the Regulation S Temporary Global Note may not be
     exchanged for a Definitive Note or transferred to a Person who takes
     delivery thereof in the form of a Definitive Note prior to (A) the
     expiration of the Restricted Period and (B) the receipt by the Registrar of
     any certificates required pursuant to Rule 903(b)(3)(ii)(B) under the
     Securities Act, except in the case of a transfer pursuant to an exemption
     from the registration requirements of the Securities Act other than Rule
     903 or Rule 904.

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

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

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

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

                                       A-24
<PAGE>

             (D) the Registrar receives the following:

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

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

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

          (4) Beneficial Interests in Unrestricted Global Notes to Unrestricted
     Definitive Notes.  If any holder of a beneficial interest in an
     Unrestricted Global Note proposes to exchange such beneficial interest for
     a Definitive Note or to transfer such beneficial interest to a Person who
     takes delivery thereof in the form of a Definitive Note, then, upon
     satisfaction of the conditions set forth in Section 2.06(b)(2) hereof, the
     Trustee will cause the aggregate principal amount at maturity of the
     applicable Global Note to be reduced accordingly pursuant to Section
     2.06(h) hereof, and the Company will execute and the Trustee will
     authenticate and deliver to the Person designated in the instructions a
     Definitive Note in the appropriate principal amount at maturity. Any
     Definitive Note issued in exchange for a beneficial interest pursuant to
     this Section 2.06(c)(4) will be registered in such name or names and in
     such authorized denomination or denominations as the holder of such
     beneficial interest requests through instructions to the Registrar from or
     through the Depositary and the Participant or Indirect Participant. The
     Trustee will deliver such Definitive Notes to the Persons in whose names
     such Notes are so registered. Any Definitive Note issued in exchange for a
     beneficial interest pursuant to this Section 2.06(c)(4) will not bear the
     Private Placement Legend.

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

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

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

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

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

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

             (E) if such Restricted Definitive Note is being transferred to an
        Institutional Accredited Investor in reliance on an exemption from the
        registration requirements of the Securities Act other

                                       A-25
<PAGE>

        than those listed in subparagraphs (B) through (D) above, a certificate
        to the effect set forth in Exhibit B hereto, including the
        certifications, certificates and Opinion of Counsel required by item (3)
        thereof, if applicable;

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

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

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

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

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

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

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

             (D) the Registrar receives the following:

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

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

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

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

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

                                       A-26
<PAGE>

     exchange or transfer, the Trustee will cancel the applicable Unrestricted
     Definitive Note and increase or cause to be increased the aggregate
     principal amount at maturity of one of the Unrestricted Global Notes.

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

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

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

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

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

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

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

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

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

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

             (D) the Registrar receives the following:

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

                (ii) if the Holder of such Restricted Definitive Notes proposes
           to transfer such Notes to a Person who shall take delivery thereof in
           the form of an Unrestricted Definitive Note, a

                                       A-27
<PAGE>

           certificate from such Holder in the form of Exhibit B hereto,
           including the certifications in item (4) thereof;

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

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

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

          (1) one or more Unrestricted Global Notes in an aggregate principal
     amount at maturity equal to the principal amount at maturity of the
     beneficial interests in the Restricted Global Notes accepted for exchange
     in the Exchange Offer by Persons that certify in the applicable Letters of
     Transmittal that (A) they are not Broker-Dealers, (B) they are not
     participating in a distribution of the Exchange Notes and (z) they are not
     affiliates (as defined in Rule 144) of the Company; and

          (2) Unrestricted Definitive Notes in an aggregate principal amount at
     maturity equal to the principal amount at maturity of the Restricted
     Definitive Notes accepted for exchange in the Exchange Offer by Persons who
     made the foregoing certification.

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

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

          (1) Private Placement Legend.

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

"THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND THE SECURITY
EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE
ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER
MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT. THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE
BENEFIT OF THE ISSUER THAT (A) SUCH SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED ONLY (1) (a) IN THE UNITED STATES TO A PERSON WHO THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, (b) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE
WITH RULE 904 UNDER THE SECURITIES ACT, (c) IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (d) TO AN INSTITUTIONAL
                                       A-28
<PAGE>

"ACCREDITED INVESTOR" (AS DEFINED IN RULE 501 (a) (1), (2), (3) OR (7) OF THE
SECURITIES ACT (AN "INSTITUTIONAL ACCREDITED INVESTOR")) THAT, PRIOR TO SUCH
TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS (THE FORM OF WHICH CAN BE OBTAINED FROM THE
TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT AT
MATURITY OF NOTES LESS THAN $250,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE
COMPANY THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT OR (e) IN
ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF THE COMPANY SO
REQUESTS), (2) TO THE COMPANY OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B)
THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER
FROM IT OF THE SECURITY EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN
(A) ABOVE."

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

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

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

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

          (3) Original Issue Discount Legend.  Each Note will bear a legend in
     substantially the following form:

"THIS NOTE WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT UNDER SECTIONS 1272, 1273 AND
1275 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. YOU MAY CONTACT
                                       A-29
<PAGE>

THE CHIEF FINANCIAL OFFICER OF HAIGHTS CROSS COMMUNICATIONS, INC., AT 10 NEW
KING STREET, SUITE 102, WHITE PLAINS, NEW YORK 10604, (914) 289-9420, WHO WILL
PROVIDE YOU WITH ANY REQUIRED INFORMATION REGARDING THE ORIGINAL ISSUE
DISCOUNT."

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

     (i) General Provisions Relating to Transfers and Exchanges.

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

          (2) No service charge will be made to a Holder of a beneficial
     interest in a Global Note or to a Holder of a Definitive Note for any
     registration of transfer or exchange, but the Company may require payment
     of a sum sufficient to cover any transfer tax or similar governmental
     charge payable in connection therewith (other than any such transfer taxes
     or similar governmental charge payable upon exchange or transfer pursuant
     to Sections 2.10, 3.06, 3.09, 4.10, 4.15 and 9.05 hereof).

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

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

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

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

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

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

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

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

                                       A-30
<PAGE>

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

     SECTION 2.07  Replacement Notes.

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

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

     SECTION 2.08  Outstanding Notes.

     The Notes outstanding at any time are all the Notes authenticated by the
Trustee except for those canceled by it, those delivered to it for cancellation,
those reductions in the interest in a Global Note effected by the Trustee in
accordance with the provisions hereof, and those described in this Section 2.08
as not outstanding. Except as set forth in Section 2.09 hereof, a Note does not
cease to be outstanding because the Company or an Affiliate of the Company holds
the Note; however, Notes held by the Company or a Subsidiary of the Company
shall not be deemed to be outstanding for purposes of Section 3.07(a) hereof.

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

     If the Accreted Value or principal amount, as applicable, of any Note is
considered paid under Section 4.01 hereof, it ceases to be outstanding and
ceases to accrue interest thereon or accrete in value, as the case may be.

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

     SECTION 2.09  Treasury Notes.

     In determining whether the Holders of the required principal amount at
maturity of Notes have concurred in any direction, waiver or consent, Notes
owned by the Company, or by any Person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company, will
be considered as though not outstanding, except that for the purposes of
determining whether the Trustee will be protected in relying on any such
direction, waiver or consent, only Notes that the Trustee knows are so owned
will be so disregarded.

     SECTION 2.10  Temporary Notes.

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

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

                                       A-31
<PAGE>

     SECTION 2.11  Cancellation.

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

     SECTION 2.12  Defaulted Interest.

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

                                   ARTICLE 3.

                           REDEMPTION AND PREPAYMENT

     SECTION 3.01  Notices to Trustee.

     If the Company elects to redeem Notes pursuant to the optional redemption
provisions of Section 3.07 hereof, it must furnish to the Trustee, at least 30
days but not more than 60 days before a redemption date, an Officers'
Certificate setting forth:

          (1) the clause of this Indenture pursuant to which the redemption
     shall occur;

          (2) the redemption date;

          (3) the principal amount at maturity of Notes to be redeemed; and

          (4) the redemption price.

     SECTION 3.02  Selection of Notes to Be Redeemed or Purchased.

     If less than all of the Notes are to be redeemed or purchased in an offer
to purchase at any time, the Trustee will select Notes for redemption or
purchase as follows:

          (1) if the Notes are listed on any national securities exchange, in
     compliance with the requirements of the principal national securities
     exchange on which the Notes are listed; or

          (2) if the Notes are not listed on any national securities exchange,
     on a pro rata basis, by lot or by such method as the Trustee shall deem
     fair and appropriate.

     In the event of partial redemption or purchase by lot, the particular Notes
to be redeemed or purchased will be selected, unless otherwise provided herein,
not less than 30 nor more than 60 days prior to the redemption or purchase date
by the Trustee from the outstanding Notes not previously called for redemption
or purchase.

     The Trustee will promptly notify the Company in writing of the Notes
selected for redemption or purchase and, in the case of any Note selected for
partial redemption or purchase, the principal amount at maturity thereof to be
redeemed or purchased. Notes and portions of Notes selected will be in principal

                                       A-32
<PAGE>

amounts at maturity of $1,000 or whole multiples of $1,000; except that if all
of the Notes of a Holder are to be redeemed or purchased, the entire outstanding
amount of Notes held by such Holder, even if not a multiple of $1,000, shall be
redeemed or purchased. Except as provided in the preceding sentence, provisions
of this Indenture that apply to Notes called for redemption or purchase also
apply to portions of Notes called for redemption or purchase.

     SECTION 3.03  Notice of Redemption.

     Subject to the provisions of Section 3.09 hereof, at least 10 days but not
more than 60 days before a redemption date, the Company will mail or cause to be
mailed, by first class mail, a notice of redemption to each Holder whose Notes
are to be redeemed at its registered address, except that redemption notices may
be mailed more than 60 days prior to a redemption date if the notice is issued
in connection with a defeasance of the Notes or a satisfaction and discharge of
this Indenture pursuant to Articles 8 or 11 hereof.

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

          (1) the redemption date;

          (2) the redemption price;

          (3) if any Note is being redeemed in part, the portion of the
     principal amount at maturity of such Note to be redeemed and that, after
     the redemption date upon surrender of such Note, a new Note or Notes in
     principal amount at maturity equal to the unredeemed portion will be issued
     upon cancellation of the original Note;

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

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

          (6) that, unless the Company defaults in making such redemption
     payment, Accreted Value ceases to increase and interest ceases to accrue,
     as the case may be, on Notes called for redemption on and after the
     redemption date;

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

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

     At the Company's request, the Trustee will give the notice of redemption in
the Company's name and at its expense; provided, however, that the Company has
delivered to the Trustee, at least 45 days prior to the redemption date, an
Officers' Certificate requesting that the Trustee give such notice and setting
forth the information to be stated in such notice as provided in the preceding
paragraph.

     SECTION 3.04  Effect of Notice of Redemption.

     Once notice of redemption is mailed in accordance with Section 3.03 hereof,
Notes called for redemption become irrevocably due and payable on the redemption
date at the redemption price. A notice of redemption may not be conditional.

     SECTION 3.05  Deposit of Redemption or Purchase Price.

     One Business Day prior to the redemption or purchase date, the Company will
deposit with the Trustee or with the Paying Agent money sufficient to pay the
redemption or purchase price of and accrued interest and Liquidated Damages, if
any, on all Notes to be redeemed or purchased on that date. The Trustee or the
Paying Agent will promptly return to the Company any money deposited with the
Trustee or the Paying Agent by the Company in excess of the amounts necessary to
pay the redemption or purchase price of, and accrued interest and Liquidated
Damages, if any, on, all Notes to be redeemed or purchased.

                                       A-33
<PAGE>

     If the Company complies with the provisions of the preceding paragraph, on
and after the redemption or purchase date, Accreted Value will cease to increase
and interest will cease to accrue, as the case may be, on the Notes or the
portions of Notes called for redemption or purchase. If a Note is redeemed or
purchased on or after an interest record date but on or prior to the related
interest payment date, then any accrued and unpaid interest shall be paid to the
Person in whose name such Note was registered at the close of business on such
record date. If any Note called for redemption or purchase is not so paid upon
surrender for redemption or purchase because of the failure of the Company to
comply with the preceding paragraph, interest shall be paid on the unpaid
principal, from the redemption or purchase date until such principal is paid,
and to the extent lawful on any interest not paid on such unpaid principal, in
each case at the rate provided in the Notes and in Section 4.01 hereof.

     SECTION 3.06  Notes Redeemed or Purchased in Part.

     Upon surrender of a Note that is redeemed or purchased in part, the Company
will issue and, upon receipt of an Authentication Order, the Trustee will
authenticate for the Holder at the expense of the Company a new Note equal in
principal amount at maturity to the unredeemed or unpurchased portion of the
Note surrendered.

     SECTION 3.07  Optional Redemption.

     (a) At any time prior to February 15, 2007, the Company may on any one or
more occasions redeem up to 35% of the aggregate principal amount at maturity of
Notes issued under this Indenture at a redemption price of 112.500% of the
Accreted Value thereof, plus accrued and unpaid Liquidated Damages, if any, to
the redemption date, with the net cash proceeds of one or more Equity Offerings
provided that:

          (1) at least 65% of the aggregate principal amount at maturity of
     Notes originally issued under this Indenture (excluding Notes held by the
     Company and its Subsidiaries) remains outstanding immediately after the
     occurrence of such redemption; and

          (2) the redemption must occur within 90 days of the date of the
     closing of such Equity Offering.

     (b) Prior to February 15, 2008, upon the occurrence of a Change of Control,
the Company may redeem the Notes, in whole and not in part, upon not less than
10 nor more than 60 days' prior notice, at a redemption price of 112.500% of the
Accreted Value thereof, plus accrued and unpaid Liquidated Damages, if any, to
the redemption date.

     (c) Except as set forth in Sections 3.07(a) and (b) above, the Notes are
not redeemable at the Company's option prior to February 15, 2008.

     (d) On or after February 15, 2008, the Company may redeem all or a part of
the Notes upon not less than 10 nor more than 60 days' notice, at the redemption
prices (expressed as percentages of principal amount (or, if prior to February
1, 2009, of Accreted Value)) set forth below plus accrued and unpaid interest
and Liquidated Damages, if any, on the Notes redeemed, to the applicable
redemption date, if redeemed during the twelve-month period beginning on
February 15 of the years indicated below:

<Table>
<Caption>
YEAR                                                           PERCENTAGE
----                                                           ----------
<S>                                                            <C>
2008........................................................    106.250%
2009........................................................    103.125%
2010 and thereafter.........................................    100.000%
</Table>

     Unless the Company defaults in the payment of the redemption price,
Accreted Value will cease to increase and interest will cease to accrue, as the
case may be, on the Notes or portions thereof called for redemption on the
applicable redemption date.

     (e) Any redemption pursuant to this Section 3.07 shall be made pursuant to
the provisions of Section 3.01 through 3.06 hereof.

                                       A-34
<PAGE>

     SECTION 3.08  Mandatory Redemption.

     The Company is not required to make mandatory redemption or sinking fund
payments with respect to the Notes.

     SECTION 3.09  Offer to Purchase by Application of Excess Proceeds.

     In the event that, pursuant to Section 4.10 hereof, the Company is required
to commence an offer to all Holders to purchase Notes (an "Asset Sale Offer"),
it will follow the procedures specified below.

     The Asset Sale Offer shall be made to all Holders and all holders of other
Indebtedness that is pari passu with the Notes containing provisions similar to
those set forth in this Indenture with respect to offers to purchase or redeem
with the proceeds of sales of assets to purchase on a pro rata basis the maximum
aggregate Accreted Value or principal amount, as applicable, of Notes and such
other pari passu Indebtedness that may be purchased out of the Excess Proceeds.
The Asset Sale Offer will remain open for a period of at least 20 Business Days
following its commencement and not more than 30 Business Days, except to the
extent that a longer period is required by applicable law (the "Offer Period").
No later than three Business Days after the termination of the Offer Period (the
"Purchase Date"), the Company will apply all Excess Proceeds (the "Offer
Amount") to the purchase of Notes and such other pari passu Indebtedness (on a
pro rata basis, if applicable) or, if less than the Offer Amount has been
tendered, all Notes and other Indebtedness tendered in response to the Asset
Sale Offer. Payment for any Notes so purchased will be made in the same manner
as interest payments are made.

     If the Purchase Date is on or after an interest record date and on or
before the related interest payment date, any accrued and unpaid interest and
Liquidated Damages, if any, will be paid to the Person in whose name a Note is
registered at the close of business on such record date, and no additional
interest will be payable to Holders who tender Notes pursuant to the Asset Sale
Offer.

     Upon the commencement of an Asset Sale Offer, the Company will send, by
first class mail, a notice to the Trustee and each of the Holders, with a copy
to the Trustee. The notice will contain all instructions and materials necessary
to enable such Holders to tender Notes pursuant to the Asset Sale Offer. The
notice, which will govern the terms of the Asset Sale Offer, will state:

          (1) that the Asset Sale Offer is being made pursuant to this Section
     3.09 and Section 4.10 hereof and the length of time the Asset Sale Offer
     will remain open;

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

          (3) that any Note not tendered or accepted for payment will continue
     to accrue interest or accrete in value, as the case may be;

          (4) that, unless the Company defaults in making such payment, any Note
     accepted for payment pursuant to the Asset Sale Offer will cease to accrue
     interest or accrete in value, as the case may be, after the Purchase Date;

          (5) that Holders electing to have a Note purchased pursuant to an
     Asset Sale Offer may elect to have Notes purchased in integral multiples of
     $1,000 in principal amount at maturity only;

          (6) that Holders electing to have a Note purchased pursuant to any
     Asset Sale Offer will be required to surrender the Note, with the form
     entitled "Option of Holder to Elect Purchase" attached to the Note
     completed, or transfer by book-entry transfer, to the Company, a
     Depositary, if appointed by the Company, or a Paying Agent at the address
     specified in the notice at least three Business Days before the Purchase
     Date;

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

                                       A-35
<PAGE>

          (8) that, if the aggregate Accreted Value or principal amount, as
     applicable, of Notes and other pari passu Indebtedness surrendered by
     holders thereof exceeds the Offer Amount, the Company will select the Notes
     and other pari passu Indebtedness to be purchased on a pro rata basis based
     on the aggregate Accreted Value or principal amount, as applicable, of
     Notes and such other pari passu Indebtedness surrendered (with such
     adjustments as may be deemed appropriate by the Company so that only Notes
     in denominations of $1,000 in principal amount at maturity, or integral
     multiples thereof, will be purchased); and

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

     On or before the Purchase Date, the Company will, to the extent lawful,
accept for payment, on a pro rata basis to the extent necessary, the Offer
Amount of Notes or portions thereof tendered pursuant to the Asset Sale Offer,
or if less than the Offer Amount has been tendered, all Notes tendered, and will
deliver or cause to be delivered to the Trustee the Notes properly accepted
together with an Officers' Certificate stating that such Notes or portions
thereof were accepted for payment by the Company in accordance with the terms of
this Section 3.09. The Company, the Depositary or the Paying Agent, as the case
may be, will promptly (but in any case not later than five days after the
Purchase Date) mail or deliver to each tendering Holder an amount equal to the
purchase price of the Notes tendered by such Holder and accepted by the Company
for purchase, and the Company will promptly issue a new Note, and the Trustee,
upon written request from the Company will authenticate and mail or deliver (or
cause to be transferred by book entry) such new Note to such Holder, in a
principal amount at maturity equal to any unpurchased portion of the Note
surrendered. Any Note not so accepted shall be promptly mailed or delivered by
the Company to the Holder thereof. The Company will publicly announce the
results of the Asset Sale Offer on the Purchase Date.

     Other than as specifically provided in this Section 3.09, any purchase
pursuant to this Section 3.09 shall be made pursuant to the provisions of
Sections 3.01 through 3.06 hereof.

                                   ARTICLE 4.

                                   COVENANTS

     SECTION 4.01  Payment of Notes.

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

     The Company will pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal at the rate equal to
1% per annum in excess of the then applicable interest rate on the Notes to the
extent lawful; it will pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest and
Liquidated Damages (without regard to any applicable grace period) at the same
rate to the extent lawful.

     SECTION 4.02  Maintenance of Office or Agency.

     The Company will maintain in the Borough of Manhattan, the City of New
York, an office or agency (which may be an office of the Trustee or an affiliate
of the Trustee, Registrar or co-registrar) where Notes may be surrendered for
registration of transfer or for exchange and where notices and demands to or
upon the Company in respect of the Notes and this Indenture may be served. The
Company will give prompt written notice to the Trustee of the location, and any
change in the location, of such office or agency. If at any time the Company
fails to maintain any such required office or agency or fails to furnish the
Trustee with the address
                                       A-36
<PAGE>

thereof, such presentations, surrenders, notices and demands may be made or
served at the Corporate Trust Office of the Trustee.

     The Company may also from time to time designate one or more other offices
or agencies where the Notes may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations; provided, however,
that no such designation or rescission will in any manner relieve the Company of
its obligation to maintain an office or agency in the Borough of Manhattan, the
City of New York for such purposes. The Company will give prompt written notice
to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency.

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

     SECTION 4.03  Reports.

     (a) Whether or not required by the rules and regulations of the SEC, so
long as any Notes are outstanding, the Company will furnish to the Holders of
Notes or cause the Trustee to furnish to the Holders of Notes, within the time
periods specified in the SEC's rules and regulations:

          (1) all quarterly and annual financial information that would be
     required to be contained in a filing with the SEC on Forms 10-Q and 10-K if
     the Company were required to file such forms, including a "Management's
     Discussion and Analysis of Financial Condition and Results of Operations"
     and, with respect to the annual information only, a report on the annual
     financial statements by the Company's certified independent accountants;
     and

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

     In addition, whether or not required by the SEC, the Company will file a
copy of all of the information and reports referred to in clauses (1) and (2)
above with the SEC for public availability within the time periods specified in
the SEC's rules and regulations (unless the SEC will not accept such a filing)
and make such information available to securities analysts and prospective
investors upon request. The Company will at all times comply with TIA
sec. 314(a).

     (b) If, at any time, the Company is no longer subject to the periodic
reporting requirements of the Exchange Act for any reason, the Company will
nevertheless continue filing the reports specified in the preceding paragraph
with the SEC within the time periods specified above unless the SEC will not
accept such a filing. The Company agrees that it will not take any action for
the purpose of causing the SEC not to accept any such filings. If,
notwithstanding the foregoing, the SEC will not accept the Company's filings for
any reason, the Company will post the reports referred to in the preceding
paragraph on its website within the time periods that would apply if the Company
were required to file those reports with the SEC.

     If the Company has designated any of its Subsidiaries as Unrestricted
Subsidiaries and the aggregate total assets of such Unrestricted Subsidiaries
exceeds $1.0 million, then the quarterly and annual financial information
required by the preceding paragraph will include a reasonably detailed
presentation, either on the face of the financial statements or in the footnotes
thereto, and in Management's Discussion and Analysis of Financial Condition and
Results of Operations, of the financial condition and results of operations of
the Company and its Restricted Subsidiaries separate from the financial
condition and results of operations of the Unrestricted Subsidiaries of the
Company.

     (c) The Company will furnish to the Holders and to securities analysts and
prospective investors, upon their request, the information required to be
delivered pursuant to Rule 144A(d)(4) under the Securities Act.

     SECTION 4.04  Compliance Certificate.

     (a) The Company shall deliver to the Trustee, within 90 days after the end
of each fiscal year, an Officers' Certificate stating that a review of the
activities of the Company and its Subsidiaries during the preceding fiscal year
has been made under the supervision of the signing Officers with a view to
determining whether the Company has kept, observed, performed and fulfilled its
obligations under this Indenture, and
                                       A-37
<PAGE>

further stating, as to each such Officer signing such certificate, that to the
best of his or her knowledge the Company has kept, observed, performed and
fulfilled each and every covenant contained in this Indenture and is not in
default in the performance or observance of any of the terms, provisions and
conditions of this Indenture (or, if a Default or Event of Default has occurred,
describing all such Defaults or Events of Default of which he or she may have
knowledge and what action the Company is taking or proposes to take with respect
thereto) and that to the best of his or her knowledge no event has occurred and
remains in existence by reason of which payments on account of the principal of
or interest, if any, on the Notes is prohibited or if such event has occurred, a
description of the event and what action the Company is taking or proposes to
take with respect thereto.

     (b) So long as not contrary to the then current recommendations of the
American Institute of Certified Public Accountants, the year-end financial
statements delivered pursuant to Section 4.03 above shall be accompanied by a
written statement of the Company's independent public accountants (who shall be
a firm of established national reputation) that in making the examination
necessary for certification of such financial statements, nothing has come to
their attention that would lead them to believe that the Company has violated
any provisions of Article 4 or Article 5 hereof or, if any such violation has
occurred, specifying the nature and period of existence thereof, it being
understood that such accountants shall not be liable directly or indirectly to
any Person for any failure to obtain knowledge of any such violation.

     (c) So long as any of the Notes are outstanding, the Company will deliver
to the Trustee, forthwith upon any Officer becoming aware of any Default or
Event of Default, an Officers' Certificate specifying such Default or Event of
Default and what action the Company is taking or proposes to take with respect
thereto.

     SECTION 4.05  Taxes.

     The Company will pay, and will cause each of its Subsidiaries to pay, prior
to delinquency, all material taxes, assessments, and governmental levies except
such as are contested in good faith and by appropriate proceedings or where the
failure to effect such payment is not adverse in any material respect to the
Holders of the Notes.

     SECTION 4.06  Stay, Extension and Usury Laws.

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

     SECTION 4.07  Restricted Payments.

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

          (1) declare or pay any dividend or make any other payment or
     distribution on account of the Company's or any of its Restricted
     Subsidiaries' Equity Interests (including, without limitation, any payment
     in connection with any merger or consolidation involving the Company or any
     of its Restricted Subsidiaries) or to the direct or indirect holders of the
     Company's or any of its Restricted Subsidiaries' Equity Interests in their
     capacity as such (other than dividends or distributions payable in Equity
     Interests (other than Disqualified Stock) of the Company and other than
     dividends or distributions payable to the Company or a Restricted
     Subsidiary of the Company);

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

          (3) make any payment on or with respect to, or purchase, redeem,
     defease or otherwise acquire or retire for value any Indebtedness of the
     Company that is contractually subordinated to the Notes

                                       A-38
<PAGE>

     (excluding any intercompany Indebtedness between or among the Company and
     any of its Restricted Subsidiaries), except a payment of interest or
     principal at the Stated Maturity thereof; or

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

          (1) no Default or Event of Default has occurred and is continuing or
     would occur as a consequence of such Restricted Payment; and

          (2) the Company would, at the time of such Restricted Payment and
     after giving pro forma effect thereto as if such Restricted Payment had
     been made at the beginning of the applicable four-quarter period, have been
     permitted to incur at least $1.00 of additional Indebtedness pursuant to
     the Debt to Cash Flow Ratio test set forth in Section 4.09(a) hereof; and

          (3) such Restricted Payment, together with the aggregate amount of all
     other Restricted Payments made by the Company and its Restricted
     Subsidiaries after August 20, 2003 (excluding Restricted Payments permitted
     by clauses (2), (3), (4), (6) and (7) of paragraph (b) below), is less than
     the sum, without duplication of:

             (A) 50% of the Consolidated Net Income of the Company for the
        period (taken as one accounting period) from the beginning of the first
        calendar month commencing after August 20, 2003 to the end of the
        Company's most recently ended calendar month for which internal
        financial statements are available at the time of such Restricted
        Payment (or, if such Consolidated Net Income for such period is a
        deficit, less 100% of such deficit); plus

             (B) 100% of the aggregate net proceeds (including the Fair Market
        Value of property other than cash or Cash Equivalents) received by the
        Company since August 20, 2003 as a contribution to its equity capital or
        from the issue or sale of Equity Interests of the Company (other than
        Disqualified Stock) or from the issue or sale of convertible or
        exchangeable Disqualified Stock or convertible or exchangeable debt
        securities of the Company that have been converted into or exchanged for
        such Equity Interests (other than Equity Interests (or Disqualified
        Stock or debt securities) sold to a Subsidiary of the Company); plus

             (C) to the extent that any Restricted Investment that was made
        after August 20, 2003 is sold for cash or otherwise liquidated or repaid
        for cash, the lesser of (i) the cash return of capital with respect to
        such Restricted Investment (less the cost of disposition, if any) and
        (ii) the initial amount of such Restricted Investment; plus

             (D) to the extent that any Unrestricted Subsidiary of the Company
        designated as such after August 20, 2003 is redesignated as a Restricted
        Subsidiary after August 20, 2003, the lesser of (i) the Fair Market
        Value of the Company's Investment in such Subsidiary as of the date of
        such redesignation or (ii) such Fair Market Value as of the date on
        which such Subsidiary was originally designated as an Unrestricted
        Subsidiary after August 20, 2003; plus

             (E) 50% of any dividends received by the Company or a Restricted
        Subsidiary of the Company after August 20, 2003 from an Unrestricted
        Subsidiary of the Company, to the extent that such dividends were not
        otherwise included in Consolidated Net Income of the Company for such
        period.

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

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

          (2) the making of any Restricted Payment in exchange for, or out of
     the net cash proceeds of the substantially concurrent sale (other than to a
     Subsidiary of the Company) of, Equity Interests of the Company (other than
     Disqualified Stock) or from the substantially concurrent contribution of
     common equity capital to the Company; provided that the amount of any such
     net cash proceeds that are utilized for any such Restricted Payment will be
     excluded from clause (3)(B) of the preceding paragraph;
                                       A-39
<PAGE>

          (3) the defeasance, redemption, repurchase or other acquisition of
     Indebtedness of the Company that is contractually subordinated to the Notes
     with the net cash proceeds from a substantially concurrent incurrence of
     Permitted Refinancing Indebtedness;

          (4) the payment of any dividend (or, in the case of any partnership or
     limited liability company, any similar distribution) by a Restricted
     Subsidiary of the Company to the holders of its Equity Interests on a pro
     rata basis;

          (5) so long as no Default has occurred and is continuing or would be
     caused thereby, the repurchase, redemption or other acquisition or
     retirement for value of any Equity Interests of the Company or any
     Restricted Subsidiary of the Company held by any current or former officer,
     director or employee of the Company or any Restricted Subsidiary of the
     Company pursuant to any equity subscription agreement, stock option
     agreement, shareholders' agreement or similar agreement; provided that the
     aggregate price paid for all such repurchased, redeemed, acquired or
     retired Equity Interests may not exceed the sum of (A) $1.0 million in any
     calendar year (with unused amounts in any calendar year being available to
     be so utilized in the immediately succeeding calendar year) and (B) the net
     cash proceeds to the Company from any issuance or reissuance of Equity
     Interests of the Company or any Restricted Subsidiary (other than
     Disqualified Stock) to members of management (which are excluded from the
     calculation set forth in clause (3)(B) of the preceding paragraph) and (C)
     the net cash proceeds to the Company of any "key man" life insurance
     proceeds;

          (6) the repurchase of Equity Interests deemed to occur upon the
     exercise of stock options;

          (7) the declaration and payment of regularly scheduled or accrued
     dividends to holders of any class or series of Disqualified Stock of the
     Company or any Restricted Subsidiary of the Company issued on or after
     August 20, 2003 in accordance with the Debt to Cash Flow Ratio test
     described in Section 4.09 hereof;

          (8) the repurchase by the Company of Series B Senior Preferred Stock,
     and warrants to purchase the Company's Series A preferred stock, par value
     $.001 per share, and warrants to purchase the Company's common stock, par
     value $.001 per share, with $14.0 million of the proceeds received by the
     Company from the sale of the Initial Notes.

     The amount of all Restricted Payments (other than cash) will be the Fair
Market Value on the date of the Restricted Payment of the asset(s) or securities
proposed to be transferred or issued by the Company or such Restricted
Subsidiary, as the case may be, pursuant to the Restricted Payment. The Fair
Market Value of any assets or securities that are required to be valued by this
Section 4.07 will be determined by the Board of Directors of the Company whose
resolution with respect thereto shall be delivered to the Trustee. The Board of
Directors' determination must be based upon an opinion or appraisal issued by an
accounting, appraisal or investment banking firm of national standing if the
fair market value exceeds $10.0 million. Not later than the date of making any
Restricted Payment, the Company will deliver to the Trustee an Officers'
Certificate stating that such Restricted Payment is permitted and setting forth
the basis upon which the calculations required by this Section 4.07 were
computed, together with a copy of any fairness opinion or appraisal required by
this Indenture.

     SECTION 4.08  Dividend and Other Payment Restrictions Affecting
Subsidiaries.

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

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

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

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

                                       A-40
<PAGE>

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

          (1) agreements governing Existing Indebtedness and Credit Facilities
     as in effect on the date of this Indenture and any amendments,
     modifications, restatements, renewals, increases, supplements, refundings,
     replacements or refinancings of those agreements, provided that the
     amendments, modifications, restatements, renewals, increases, supplements,
     refundings, replacements or refinancings are no more restrictive, taken as
     a whole, with respect to such dividend and other payment restrictions than
     those contained in those agreements, as in effect on the date of this
     Indenture;

          (2) this Indenture and the Notes and the Haights Cross Senior Notes
     Indenture, the Haights Cross Senior Notes and the related Guarantees of the
     Haights Cross Senior Notes;

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

          (4) any instrument governing Indebtedness or Capital Stock of a Person
     acquired by the Company or any of its Restricted Subsidiaries as in effect
     at the time of such acquisition (except to the extent such Indebtedness was
     incurred in connection with or in contemplation of such acquisition), which
     encumbrance or restriction is not applicable to any Person, or the
     properties or assets of any Person, other than the Person, or the property
     or assets of the Person, so acquired, provided that, in the case of
     Indebtedness, such Indebtedness was permitted by the terms of this
     Indenture to be incurred;

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

          (6) purchase money obligations for property acquired in the ordinary
     course of business and Capital Lease Obligations that impose restrictions
     on the property purchased or leased of the nature described in clause (3)
     of Section 4.08(a);

          (7) contracts for the sale of assets, including, without limitation,
     any agreement for the sale or other disposition of the assets or Capital
     Stock of a Restricted Subsidiary that restricts distributions by that
     Restricted Subsidiary pending such sale or other disposition;

          (8) Permitted Refinancing Indebtedness; provided that the restrictions
     contained in the agreements governing such Permitted Refinancing
     Indebtedness are not materially more restrictive, taken as a whole, than
     those contained in the agreements governing the Indebtedness being
     refinanced;

          (9) Liens securing Indebtedness otherwise permitted to be incurred
     under the provisions of Section 4.12 hereof that limit the right of the
     debtor to dispose of the assets subject to such Liens;

          (10) provisions with respect to the disposition or distribution of
     assets or property in joint venture agreements, assets sale agreements,
     sale-leaseback agreements, stock sale agreements and other similar
     agreements entered into in the ordinary course of business;

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

          (12) any agreement governing Indebtedness permitted to be incurred
     pursuant to Section 4.09 hereof; provided that either:

             (a) the provisions relating to such encumbrance or restriction
        contained in such Indebtedness, taken as a whole, are no less favorable
        to the Company in any material respect as determined by the Board of
        Directors of the Company in its reasonable and good faith judgment than
        the provisions contained in the Term Loan Agreement, the Revolving
        Credit Agreement, the Haights Cross Senior Notes Indenture or in this
        Indenture, in each case, as in effect on the date of this Indenture; or

             (b) any encumbrance or restriction contained in such Indebtedness
        does not prohibit (except upon a Default or Event of Default thereunder)
        the payment of dividends in an amount sufficient, as determined by the
        Board of Directors of the Company in its reasonable and good faith
        judgment, to make scheduled payments of cash interest on the Notes.
                                       A-41
<PAGE>

     SECTION 4.09  Incurrence of Indebtedness and Issuance of Preferred Stock.

     (a) The Company will not, and will not permit any of its Restricted
Subsidiaries to, directly or indirectly, create, incur, issue, assume, guarantee
or otherwise become directly or indirectly liable, contingently or otherwise,
with respect to (collectively, "incur") any Indebtedness (including Acquired
Debt), and the Company will not issue any Disqualified Stock and will not permit
any of its Restricted Subsidiaries to issue any shares of preferred stock;
provided, however, that (i) the Company may incur Indebtedness (including
Acquired Debt) or issue Disqualified Stock or preferred stock if the Debt to
Cash Flow Ratio for the Company's most recently ended four full fiscal quarters
for which internal financial statements are available immediately preceding the
date on which such additional Indebtedness is incurred or such Disqualified
Stock or such preferred stock, as the case may be, is issued would have been no
greater than 7.0 to 1, and (ii) any Restricted Subsidiary of the Company may
incur Indebtedness (including Acquired Debt) or issue preferred stock if the
Debt to Cash Flow Ratio for such Restricted Subsidiary's most recently ended
four full fiscal quarters for which internal financial statements are available
immediately preceding the date on which such additional Indebtedness is incurred
or such preferred stock is issued would have been no greater than 5.25 to 1, in
each case, determined on a pro forma basis (including a pro forma application of
the net proceeds therefrom), as if the additional Indebtedness had been incurred
or the Disqualified Stock or the preferred stock had been issued, as the case
may be, at the beginning of such four-quarter period.

     (b) The provisions of Section 4.09(a) will not prohibit the incurrence of
any of the following items of Indebtedness (collectively, "Permitted Debt"):

          (1) the incurrence by the Company and any of its Restricted
     Subsidiaries of Indebtedness on August 20, 2003 under the Term Loan
     Agreement less the aggregate amount of all repayments, optional or
     mandatory, of the principal of the Term Loan Agreement (other than
     repayments that are concurrently refunded or refinanced);

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

          (3) the incurrence by the Company of Indebtedness represented by the
     Notes to be issued on the date of this Indenture and the Exchange Notes to
     be issued pursuant to the Registration Rights Agreement;

          (4) the incurrence by the Company or any of its Restricted
     Subsidiaries of Permitted Refinancing Indebtedness in exchange for, or the
     net proceeds of which are used to refund, refinance, replace, defease or
     discharge Indebtedness (other than intercompany Indebtedness) that was
     permitted by this Indenture to be incurred under Section 4.09(a) or clauses
     (2), (3) or (4) of this Section 4.09(b);

          (5) the incurrence by the Company or any of its Restricted
     Subsidiaries of intercompany Indebtedness between or among the Company and
     any of its Restricted Subsidiaries; provided, however, that:

             (A) if the Company is the obligor on such Indebtedness and the
        payee is not the Company, such Indebtedness must be expressly
        subordinated to the prior payment in full in cash of all Obligations
        then due with respect to the Notes; and

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

will be deemed, in each case, to constitute an incurrence of such Indebtedness
by the Company or such Restricted Subsidiary, as the case may be, that was not
permitted by this clause (5);

                                       A-42
<PAGE>

          (6) the issuance by any of the Company's Restricted Subsidiaries to
     the Company or to any of its Restricted Subsidiaries of shares of preferred
     stock; provided, however, that:

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

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

will be deemed, in each case, to constitute an issuance of such preferred stock
by such Restricted Subsidiary that was not permitted by this clause (6);

          (7) the incurrence by the Company or any of its Restricted
     Subsidiaries of Hedging Obligations in the ordinary course of business;

          (8) the guarantee by the Company or any of its Restricted Subsidiaries
     of Indebtedness of the Company or a Restricted Subsidiary of the Company
     that was permitted to be incurred by another provision of this Section
     4.09; provided that if the Indebtedness being guaranteed is subordinated to
     the Notes, then the guarantee shall be subordinated to the same extent as
     the Indebtedness guaranteed;

          (9) the incurrence by the Company or any of its Restricted
     Subsidiaries of Indebtedness in respect of workers' compensation claims,
     health, disability or other employee benefits, property, casualty or
     liability insurance, or self-insurance or other reimbursement-type
     obligations, bankers' acceptances, performance and surety bonds and the
     like in the ordinary course of business;

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

          (11) Indebtedness consisting of customary indemnification, adjustments
     of purchase price or similar obligations, in each case, incurred or assumed
     in connection with the acquisition of any business or assets or otherwise
     in the ordinary course of business; and

          (12) the incurrence by the Company or any of the Restricted
     Subsidiaries of the Company of additional Indebtedness hereunder in an
     aggregate principal amount that, when aggregated with the principal amount
     of all other Indebtedness then outstanding and incurred pursuant to this
     clause (12), does not at any one time outstanding exceed $30.0 million less
     the aggregate principal amount of outstanding Indebtedness incurred since
     August 20, 2003 through the date of this Indenture pursuant to Section
     4.09(b)(12) of the Haights Cross Senior Notes Indenture.

     The Company will not incur any Indebtedness (including Permitted Debt) that
is contractually subordinated in right of payment to any other Indebtedness of
the Company unless such Indebtedness is also contractually subordinated in right
of payment to the Notes on substantially identical terms; provided, however,
that no Indebtedness of the Company shall be deemed to be contractually
subordinated in right of payment to any other Indebtedness of the Company solely
by virtue of being unsecured or by virtue of being secured on a first or junior
Lien basis.

     The accrual of interest, the accretion or amortization of original issue
discount, the payment of interest on any Indebtedness in the form of additional
Indebtedness with the same terms, and the payment of dividends on Disqualified
Stock in the form of additional shares of the same class of Disqualified Stock
will not be deemed to be an incurrence of Indebtedness or an issuance of
Disqualified Stock for purposes of this Section 4.09; provided, in each such
case, that the amount thereof is included in Consolidated Interest Expense of
the Company as accrued. Notwithstanding any other provision of this Section
4.09, the maximum amount of Indebtedness that the Company or any Restricted
Subsidiary may incur pursuant to this Section 4.09 shall not be deemed to be
exceeded solely as a result of fluctuations in exchange rates or currency
values.

                                       A-43
<PAGE>

     The amount of any Indebtedness outstanding as of any date will be:

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

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

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

             (a) the Fair Market Value of such asset at the date of
        determination; and

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

     SECTION 4.10  Asset Sales.

     The Company will not, and will not permit any of its Restricted
Subsidiaries to, consummate an Asset Sale unless:

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

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

             (A) any liabilities, as shown on the Company's most recent
        consolidated balance sheet, of the Company or any Restricted Subsidiary
        (other than contingent liabilities and liabilities that are by their
        terms subordinated to the Notes) that are assumed by the transferee of
        any such assets and for which the Company and all Restricted
        Subsidiaries of the Company have been released by all creditors in
        writing;

             (B) any securities, notes or other obligations received by the
        Company or any such Restricted Subsidiary from such transferee that are
        contemporaneously, subject to ordinary settlement periods, converted by
        the Company or such Restricted Subsidiary into cash, to the extent of
        the cash received in that conversion; and

             (C) any stock or assets of the kind referred to in clauses (2) or
        (4) of the next paragraph of this Section 4.10.

     The 75% limitation referred to in clause (2) above will not apply to any
Asset Sale in which the cash or Cash Equivalents portion of the consideration
received therefrom, determined in accordance with the preceding provision, is
equal to or greater than what the after-tax proceeds would have been had such
Asset Sale complied with the aforementioned 75% limitation.

     Within 365 days after the receipt of any Net Proceeds from an Asset Sale,
the Company (or the applicable Restricted Subsidiary, as the case may be) may
apply such Net Proceeds at its option:

          (1) to repay Indebtedness and other Obligations under any Credit
     Facilities and, if the Indebtedness repaid is revolving credit
     Indebtedness, to correspondingly reduce commitments with respect thereto;

          (2) to repay Indebtedness of the Company's Restricted Subsidiaries
     and, if the Indebtedness repaid is revolving credit Indebtedness, to
     correspondingly reduce commitments with respect thereto;

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

          (4) to make a capital expenditure; or

                                       A-44
<PAGE>

          (5) to acquire other assets that are not classified as current assets
     under GAAP and that are used or useful in a Permitted Business.

     Pending the final application of any Net Proceeds, the Company may
temporarily reduce revolving credit borrowings or otherwise invest the Net
Proceeds in any manner that is not prohibited by this Indenture.

     Any Net Proceeds from Asset Sales that are not applied or invested as
provided in the preceding paragraph will constitute "Excess Proceeds."  When the
aggregate amount of Excess Proceeds exceeds $10.0 million, within five days
thereof, the Company will make an Asset Sale Offer to all Holders of Notes and
all holders of other Indebtedness that is pari passu with the Notes containing
provisions similar to those set forth in this Indenture with respect to offers
to purchase or redeem with the proceeds of sales of assets in accordance with
Section 3.09 hereof to purchase the maximum aggregate Accreted Value or
principal amount, as applicable, of Notes and such other pari passu Indebtedness
that may be purchased out of the Excess Proceeds. The offer price in any Asset
Sale Offer will be equal to 100% of the Accreted Value of the Notes on the date
of purchase plus accrued and unpaid Liquidated Damages thereon, if any (if prior
to February 1, 2009) or 100% of the principal amount of Notes plus accrued and
unpaid interest and Liquidated Damages, if any, to the date of purchase (if on
or after February 1, 2009), in each case which price will be payable in cash. If
any Excess Proceeds remain after consumption of an Asset Sale Offer, the Company
may use such Excess Proceeds for any purpose not otherwise prohibited by this
Indenture. If the aggregate Accreted Value or principal amount, as applicable,
of Notes and such other pari passu Indebtedness tendered into such Asset Sale
Offer exceeds the amount of Excess Proceeds, the Trustee shall select the Notes
and such other pari passu Indebtedness to be purchased on a pro rata basis based
on the Accreted Value or principal amount, as applicable, of Notes and such
other pari passu Indebtedness tendered Upon completion of each Asset Sale Offer,
the amount of Excess Proceeds shall be reset at zero.

     The Company will comply with the requirements of Rule 14e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the
extent such laws and regulations are applicable in connection with each
repurchase of Notes pursuant to an Asset Sale Offer. To the extent that the
provisions of any securities laws or regulations conflict with the provisions of
Sections 3.09 or 4.10 hereof, the Company will comply with the applicable
securities laws and regulations and will not be deemed to have breached its
obligations under Section 3.09 hereof or this Section 4.10 by virtue of such
compliance.

     SECTION 4.11  Transactions with Affiliates.

     (a) The Company will not, and will not permit any of its Restricted
Subsidiaries to, make any payment to, or sell, lease, transfer or otherwise
dispose of any of its properties or assets to, or purchase any property or
assets from, or enter into or make or amend any transaction, contract,
agreement, understanding, loan, advance or guarantee with, or for the benefit
of, any Affiliate of the Company (each an "Affiliate Transaction"), unless:

          (1) the Affiliate Transaction is on terms that are no less favorable
     to the Company or the relevant Restricted Subsidiary than those that would
     have been obtained in a comparable transaction by the Company or such
     Restricted Subsidiary with an unrelated Person; and

          (2) the Company delivers to the Trustee:

             (A) with respect to any Affiliate Transaction or series of related
        Affiliate Transactions involving aggregate consideration in excess of
        $2.5 million, a resolution of the Board of Directors set forth in an
        Officers' Certificate certifying that such Affiliate Transaction
        complies with clause (1) of this Section 4.11(a) and that such Affiliate
        Transaction has been approved by a majority of the disinterested members
        of the Board of Directors; and

             (B) with respect to any Affiliate Transaction or series of related
        Affiliate Transactions involving aggregate consideration in excess of
        $10.0 million, an opinion as to the fairness to the Company or such
        Subsidiary of such Affiliate Transaction from a financial point of view
        issued by an accounting, appraisal or investment banking firm of
        national standing.

                                       A-45
<PAGE>

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

          (1) any employment agreement, employee benefit plan, officer and
     director indemnification agreement or any similar arrangement entered into
     by the Company or any of its Restricted Subsidiaries in the ordinary course
     of business;

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

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

          (4) loans, advances, payment of reasonable fees, indemnification of
     directors, or similar arrangements to or with officers, directors,
     employees and consultants who are not otherwise Affiliates of the Company;

          (5) any issuance of Equity Interests (other than Disqualified Stock)
     of the Company to Affiliates of the Company;

          (6) transactions under (a) the registration rights agreement, dated as
     of December 10, 1999, among the Company, Haights Cross and the stockholders
     of the Company party thereto and (b) the investors agreement, dated
     December 10, 1999, among the Company, Haights Cross and the stockholders of
     the Company party thereto, as the same may be amended, modified or replaced
     from time to time so long as any amendment, modification or replacement is
     no less favorable to the Company and its Restricted Subsidiaries than such
     agreement as in effect on August 20, 2003; and

          (7) Restricted Payments and Permitted Investments that are permitted
     by Section 4.07 hereof.

     SECTION 4.12  Liens.

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

     SECTION 4.13  Business Activities.

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

     SECTION 4.14  Corporate Existence.

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

          (1) its corporate existence, and the corporate, partnership or other
     existence of each of its Subsidiaries, in accordance with the respective
     organizational documents (as the same may be amended from time to time) of
     the Company or any such Subsidiary; and

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

     SECTION 4.15  Offer to Repurchase Upon Change of Control.

     (a) Upon the occurrence of a Change of Control, the Company will make an
offer (a "Change of Control Offer") to each Holder to repurchase all or any part
(equal to $1,000 in principal amount at maturity

                                       A-46
<PAGE>

or an integral multiple of $1,000) of each Holder's Notes at a purchase price
equal to 101% of the Accreted Value of Notes repurchased plus accrued and unpaid
Liquidated Damages, if any, on the Notes repurchased, to the date of purchase
(if prior to February 1, 2009) or 101% of the aggregate principal amount of
Notes repurchased plus accrued and unpaid interest and Liquidated Damages, if
any, on the Notes repurchased, to the date of purchase (if on or after February
1, 2009) (in either case, the "Change of Control Payment"). Within 30 days
following any Change of Control, the Company will mail a notice to each Holder
describing the transaction or transactions that constitute the Change of Control
and stating:

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

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

          (3) that any Note not tendered will continue to accrete in value or
     accrue interest, as the case may be;

          (4) that, unless the Company defaults in the payment of the Change of
     Control Payment, all Notes accepted for payment pursuant to the Change of
     Control Offer will cease to accrete in value or accrue interest, as the
     case may be, after the Change of Control Payment Date;

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

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

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

     The Company will comply with the requirements of Rule 14e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the
extent those laws and regulations are applicable in connection with the
repurchase of the Notes as a result of a Change in Control. To the extent that
the provisions of any securities laws or regulations conflict with the
provisions of Sections 3.09 or 4.15 hereof, the Company will comply with the
applicable securities laws and regulations and will not be deemed to have
breached its obligations under Section 3.09 hereof or this Section 4.15 by
virtue of such compliance.

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

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

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

          (3) deliver or cause to be delivered to the Trustee the Notes properly
     accepted together with an Officers' Certificate stating the aggregate
     principal amount at maturity of Notes or portions of Notes being purchased
     by the Company.

     The Paying Agent will promptly mail to each Holder of Notes properly
tendered the Change of Control Payment for such Notes, and the Trustee will
promptly authenticate and mail (or cause to be transferred by book entry) to
each Holder a new Note equal in principal amount at maturity to any unpurchased
portion of

                                       A-47
<PAGE>

the Notes surrendered, if any; provided that each new Note will be in a
principal amount at maturity of $1,000 or an integral multiple thereof. The
Company will publicly announce the results of the Change of Control Offer on or
as soon as practicable after the Change of Control Payment Date.

     (c) Notwithstanding anything to the contrary in this Section 4.15, the
Company will not be required to make a Change of Control Offer upon a Change of
Control if (1) a third party makes the Change of Control Offer in the manner, at
the times and otherwise in compliance with the requirements set forth in this
Section 4.15 and Section 3.09 hereof and purchases all Notes validly tendered
and not withdrawn under the Change of Control Offer, or (2) notice of redemption
has been given pursuant to Section 3.07 hereof, unless and until there is a
default in payment of the applicable redemption price.

     SECTION 4.16  Limitation on Sale and Leaseback Transactions.

     The Company will not, and will not permit any of its Restricted
Subsidiaries to, enter into any sale and leaseback transaction; provided that
the Company or any Restricted Subsidiary may enter into a sale and leaseback
transaction if:

          (1) the Company or that Restricted Subsidiary, as applicable, could
     have (a) incurred Indebtedness in an amount equal to the Attributable Debt
     relating to such sale and leaseback transaction and (b) incurred a Lien to
     secure such Indebtedness pursuant to the provisions of Section 4.12 hereof;

          (2) the gross cash proceeds of that sale and leaseback transaction are
     at least equal to the Fair Market Value, as determined in good faith by the
     Board of Directors and set forth in an Officers' Certificate delivered to
     the Trustee, of the property that is the subject of that sale and leaseback
     transaction; and

          (3) the transfer of assets in that sale and leaseback transaction is
     permitted by, and the Company applies the proceeds of such transaction in
     compliance with, Section 4.10 hereof.

     SECTION 4.17  Payments for Consent.

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

     SECTION 4.18  Designation of Restricted and Unrestricted Subsidiaries.

     The Board of Directors may designate any Restricted Subsidiary to be an
Unrestricted Subsidiary if that designation would not cause a Default. If a
Restricted Subsidiary is designated as an Unrestricted Subsidiary, the aggregate
Fair Market Value of all outstanding Investments owned by the Company and its
Restricted Subsidiaries in the Subsidiary designated as Unrestricted will be
deemed to be an Investment made as of the time of the designation and will
reduce the amount available for Restricted Payments under Section 4.07 hereof or
under one or more clauses of the definition of Permitted Investments, as
determined by the Company. That designation will only be permitted if the
Investment would be permitted at that time and if the Restricted Subsidiary
otherwise meets the definition of an Unrestricted Subsidiary. The Board of
Directors may redesignate any Unrestricted Subsidiary to be a Restricted
Subsidiary if that redesignation would not cause a Default.

                                   ARTICLE 5.

                                   SUCCESSORS

     SECTION 5.01  Merger, Consolidation, or Sale of Assets.

     (a) The Company may not, directly or indirectly, consolidate or merge with
or into another Person (whether or not the Company is the surviving
corporation), or sell, assign, transfer, convey or otherwise

                                       A-48
<PAGE>

dispose of all or substantially all of the properties or assets of the Company
and its Restricted Subsidiaries taken as a whole, in one or more related
transactions, to another Person; unless:

          (1) either:

             (A) the Company is the surviving corporation; or

             (B) the Person formed by or surviving any such consolidation or
        merger (if other than the Company) or to which such sale, assignment,
        transfer, conveyance or other disposition has been made is a corporation
        organized or existing under the laws of the United States, any state of
        the United States or the District of Columbia;

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

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

          (4) the Company or the Person formed by or surviving any such
     consolidation or merger (if other than the Company), or to which such sale,
     assignment, transfer, conveyance or other disposition has been made will,
     on the date of such transaction after giving pro forma effect thereto and
     any related financing transactions as if the same had occurred at the
     beginning of the applicable four-quarter period, be permitted to incur at
     least $1.00 of additional Indebtedness pursuant to the Debt to Cash Flow
     Ratio test set forth in Section 4.09(a) hereof.

     (b) In addition, the Company may not, directly or indirectly, lease all or
substantially all of its properties or assets, in one or more related
transactions, to any other Person.

     (c) This Section 5.01 will not apply to: (1) a merger of the Company with
an Affiliate solely for the purpose of reincorporating the Company in another
jurisdiction; or (2) any merger or consolidation, or any sale, transfer,
assignment, conveyance, lease or other disposition of assets between or among
the Company and its Restricted Subsidiaries.

     SECTION 5.02  Successor Corporation Substituted.

     Upon any consolidation or merger, or any sale, assignment, transfer, lease,
conveyance or other disposition of all or substantially all of the assets of the
Company in a transaction that is subject to, and that complies with the
provisions of, Section 5.01 hereof, the successor corporation formed by such
consolidation or into or with which the Company is merged or to which such sale,
assignment, transfer, lease, conveyance or other disposition is made shall
succeed to, and be substituted for (so that from and after the date of such
consolidation, merger, sale, lease, conveyance or other disposition, the
provisions of this Indenture referring to the "Company" shall refer instead to
the successor corporation and not to the Company), and may exercise every right
and power of the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein; provided, however, that
the predecessor Company shall not be relieved from the obligation to pay the
principal of and interest on the Notes except in the case of a sale of all of
the Company's assets in a transaction that is subject to, and that complies with
the provisions of, Section 5.01 hereof.

                                   ARTICLE 6.

                             DEFAULTS AND REMEDIES

     SECTION 6.01  Events of Default.

     Each of the following is an "Event of Default":

          (1) the Company defaults in the payment when due of interest on, or
     Liquidated Damages with respect to, the Notes, and such default continues
     for a period of 30 days;

                                       A-49
<PAGE>

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

          (3) the Company or any of its Restricted Subsidiaries fails to comply
     with the provisions of Sections 4.07, 4.09, 4.10, 4.15 or 5.01 hereof, and
     such failure continues for a period of 30 days after notice to the Company
     by the Trustee or the Holders of at least 25% in aggregate principal amount
     at maturity of the Notes then outstanding voting as a single class;

          (4) the Company or any of its Restricted Subsidiaries fails to observe
     or perform any other covenant, representation, warranty or other agreement
     in this Indenture or the Notes, and such failure continues for 60 days
     after notice to the Company by the Trustee or the Holders of at least 25%
     in aggregate principal amount at maturity of the Notes then outstanding
     voting as a single class;

          (5) a default occurs under any mortgage, indenture or instrument under
     which there may be issued or by which there may be secured or evidenced any
     Indebtedness for money borrowed by the Company or any of its Restricted
     Subsidiaries (or the payment of which is guaranteed by the Company or any
     of its Restricted Subsidiaries), whether such Indebtedness or guarantee now
     exists, or is created after the date of this Indenture, if that default:

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

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

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

          (6) a final judgment or final judgments for the payment of money are
     entered by a court or courts of competent jurisdiction against the Company
     or any of its Restricted Subsidiaries, (other than any such judgments that
     are fully covered by insurance, subject to ordinary deductibles) which
     judgment or judgments are not paid, discharged or stayed for a period of 60
     days after such judgment becomes final; provided that the aggregate amount
     of all such undischarged judgments exceeds $20.0 million;

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

             (A) commences a voluntary case,

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

             (C) consents to the appointment of a custodian of it or for all or
        substantially all of its property,

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

             (E) generally is not paying its debts as they become due; or

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

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

             (B) appoints a custodian of the Company or any of its Restricted
        Subsidiaries that is a Significant Subsidiary or any group of Restricted
        Subsidiaries that, taken together, would constitute a Significant
        Subsidiary or for all or substantially all of the property of the
        Company or any of its Restricted Subsidiaries that is a Significant
        Subsidiary or any group of Restricted Subsidiaries that, taken together,
        would constitute a Significant Subsidiary; or

                                       A-50
<PAGE>

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

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

     SECTION 6.02  Acceleration.

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

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

     Subject to the provisions of Section 7.01 hereof, in case an Event of
Default occurs and is continuing, the Trustee will be under no obligation to
exercise any of the rights or powers under this Indenture at the request or
direction of any Holders of Notes unless such Holders have offered to the
Trustee reasonable indemnity or security against any loss, liability or expense.
Except to enforce the right to receive payment of principal, premium (if any) or
interest when due, no Holder of a Note may pursue any remedy with respect to
this Indenture or the Notes unless:

          (1) such Holder has previously given the Trustee notice that an Event
     of Default is continuing;

          (2) Holders of at least 25% in aggregate principal amount at maturity
     of the outstanding Notes have requested the Trustee to pursue the remedy;

          (3) such Holders have offered the Trustee reasonable security or
     indemnity against any loss, liability or expense;

          (4) the Trustee has not complied with such request within 60 days
     after the receipt thereof and the offer of security or indemnity; and

          (5) Holders of a majority in aggregate principal amount at maturity of
     the outstanding Notes have not given the Trustee a direction inconsistent
     with such request within such 60-day period.

     The Holders of a majority in aggregate principal amount at maturity of the
then outstanding Notes by written notice to the Trustee may, on behalf of all of
the Holders, rescind an acceleration or waive any existing Default or Event of
Default and its consequences if the rescission would not conflict with any
judgment or decree and if all existing Events of Default (except nonpayment of
principal, interest or premium or Liquidated Damages, if any, that has become
due solely because of the acceleration) have been cured or waived.

     If an Event of Default occurs on or after February 15, 2008 by reason of
any willful action (or inaction) taken (or not taken) by or on behalf of the
Company with the intention of avoiding payment of the premium that the Company
would have had to pay if the Company then had elected to redeem the Notes
pursuant to Section 3.07 hereof, then, upon acceleration of the Notes, an
equivalent premium shall also become and be immediately due and payable, to the
extent permitted by law, anything in this Indenture or in the Notes to the
contrary notwithstanding. If an Event of Default occurs prior to February 15,
2008 by reason of any willful action (or inaction) taken (or not taken) by or on
behalf of the Company with the intention of avoiding the prohibition on
redemption of the Notes prior to such date, then, upon acceleration of the
Notes, an additional premium shall also become and be immediately due and
payable, to the extent permitted by law, in an amount, for each of the years
beginning on February 15 of the years set forth below, as set forth below

                                       A-51
<PAGE>

(expressed as a percentage of the Accreted Value of the Notes on the date of
payment that would otherwise be due but for the provisions of this sentence):

<Table>
<Caption>
YEAR                                                           PERCENTAGE
----                                                           ----------
<S>                                                            <C>
2004........................................................    12.5000%
2005........................................................    10.9375%
2006........................................................     9.3750%
2007........................................................     7.8125%
</Table>

     Upon becoming aware of any Default or Event of Default, the Company is
required to deliver to the Trustee a statement specifying such Default or Event
of Default.

     SECTION 6.03  Other Remedies.

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

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

     SECTION 6.04  Waiver of Past Defaults.

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

     SECTION 6.05  Control by Majority.

     Holders of a majority in aggregate principal amount at maturity of the then
outstanding Notes may direct the time, method and place of conducting any
proceeding for exercising any remedy available to the Trustee or exercising any
trust or power conferred on it. However, the Trustee may refuse to follow any
direction that conflicts with law or this Indenture that the Trustee determines
may be unduly prejudicial to the rights of other Holders of Notes or that may
involve the Trustee in personal liability.

     SECTION 6.06  Limitation on Suits.

     A Holder of a Note may pursue a remedy with respect to this Indenture or
the Notes only if:

          (1) such Holder has previously given the Trustee notice that an Event
     of Default is continuing;

          (2) Holders of at least 25% in aggregate principal amount at maturity
     of the outstanding Notes have requested the Trustee to pursue the remedy;

          (3) such Holders have offered the Trustee reasonable security or
     indemnity against any loss, liability or expense;

          (4) the Trustee has not complied with such request within 60 days
     after the receipt thereof and the offer of security or indemnity; and

                                       A-52
<PAGE>

          (5) Holders of a majority in aggregate principal amount at maturity of
     the outstanding Notes have not given the Trustee a direction inconsistent
     with such request within such 60-day period.

     SECTION 6.07  Rights of Holders of Notes to Receive Payment.

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

     SECTION 6.08  Collection Suit by Trustee.

     If an Event of Default specified in Section 6.01(1) or (2) occurs and is
continuing, the Trustee is authorized to recover judgment in its own name and as
trustee of an express trust against the Company for the whole amount of
principal of, premium and Liquidated Damages, if any, and interest remaining
unpaid on the Notes and interest on overdue principal and, to the extent lawful,
interest and such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

     SECTION 6.09  Trustee May File Proofs of Claim.

     The Trustee is authorized to file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the
Holders of the Notes allowed in any judicial proceedings relative to the Company
(or any other obligor upon the Notes), its creditors or its property and shall
be entitled and empowered to collect, receive and distribute any money or other
property payable or deliverable on any such claims and any custodian in any such
judicial proceeding is hereby authorized by each Holder to make such payments to
the Trustee, and in the event that the Trustee shall consent to the making of
such payments directly to the Holders, to pay to the Trustee any amount due to
it for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07 hereof. To the extent that the payment of any such compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and
any other amounts due the Trustee under Section 7.07 hereof out of the estate in
any such proceeding, shall be denied for any reason, payment of the same shall
be secured by a Lien on, and shall be paid out of, any and all distributions,
dividends, money, securities and other properties that the Holders may be
entitled to receive in such proceeding whether in liquidation or under any plan
of reorganization or arrangement or otherwise. Nothing herein contained shall be
deemed to authorize the Trustee to authorize or consent to or accept or adopt on
behalf of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder, or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding.

     SECTION 6.10  Priorities.

     If the Trustee collects any money pursuant to this Article 6, it shall pay
out the money in the following order:

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

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

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

                                       A-53
<PAGE>

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

     SECTION 6.11  Undertaking for Costs.

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

                                   ARTICLE 7.

                                    TRUSTEE

     SECTION 7.01  Duties of Trustee.

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

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

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

          (2) in the absence of bad faith on its part, the Trustee may
     conclusively rely, as to the truth of the statements and the correctness of
     the opinions expressed therein, upon certificates or opinions furnished to
     the Trustee and conforming to the requirements of this Indenture. However,
     the Trustee will examine the certificates and opinions to determine whether
     or not they conform to the requirements of this Indenture.

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

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

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

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

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

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

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

                                       A-54
<PAGE>

     SECTION 7.02  Rights of Trustee.

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

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

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

     (d) The Trustee will not be liable for any action it takes or omits to take
in good faith that it believes to be authorized or within the rights or powers
conferred upon it by this Indenture.

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

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

     SECTION 7.03  Individual Rights of Trustee.

     The Trustee in its individual or any other capacity may become the owner or
pledgee of Notes and may otherwise deal with the Company or any Affiliate of the
Company with the same rights it would have if it were not Trustee. However, in
the event that the Trustee acquires any conflicting interest it must eliminate
such conflict within 90 days, apply to the SEC for permission to continue as
trustee (if this Indenture has been qualified under the TIA) or resign. Any
Agent may do the same with like rights and duties. The Trustee is also subject
to Sections 7.10 and 7.11 hereof.

     SECTION 7.04  Trustee's Disclaimer.

     The Trustee will not be responsible for and makes no representation as to
the validity or adequacy of this Indenture or the Notes, 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 this
Indenture, it will not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee, and it will not be
responsible for any statement or recital herein or any statement in the Notes or
any other document in connection with the sale of the Notes or pursuant to this
Indenture other than its certificate of authentication.

     SECTION 7.05  Notice of Defaults.

     If a Default or Event of Default occurs and is continuing and if it is
known to the Trustee, the Trustee will mail to Holders of Notes a notice of the
Default or Event of Default within 90 days after it occurs. Except in the case
of a Default or Event of Default in payment of principal of, premium or
Liquidated Damages, if any, or interest on, any Note, the Trustee may withhold
the notice if and so long as a committee of its Responsible Officers in good
faith determines that withholding the notice is in the interests of the Holders
of the Notes.

     SECTION 7.06  Reports by Trustee to Holders of the Notes.

     (a) Within 60 days after each May 15 beginning with the May 15 following
the date of this Indenture, and for so long as Notes remain outstanding, the
Trustee will mail to the Holders of the Notes a brief report dated as of such
reporting date that complies with TIA sec. 313(a) (but if no event described in
TIA sec. 313(a) has occurred within the twelve months preceding the reporting
date, no report need be transmitted). The
                                       A-55
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Trustee also will comply with TIA sec. 313(b)(2). The Trustee will also transmit
by mail all reports as required by TIA sec. 313(c).

     (b) A copy of each report at the time of its mailing to the Holders of
Notes will be mailed by the Trustee to the Company and filed by the Trustee with
the SEC and each stock exchange on which the Notes are listed in accordance with
TIA sec. 313(d). The Company will promptly notify the Trustee when the Notes are
listed on any stock exchange.

     SECTION 7.07  Compensation and Indemnity.

     (a) The Company will pay to the Trustee from time to time reasonable
compensation for its acceptance of this Indenture and services hereunder. The
Trustee's compensation will not be limited by any law on compensation of a
trustee of an express trust. The Company will reimburse the Trustee promptly
upon request for all reasonable disbursements, advances and expenses incurred or
made by it in addition to the compensation for its services. Such expenses will
include the reasonable compensation, disbursements and expenses of the Trustee's
agents and counsel.

     (b) The Company will 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 Indenture, including the
costs and expenses of enforcing this Indenture against the Company (including
this Section 7.07) and defending itself against any claim (whether asserted by
the Company, 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 negligence
or bad faith. The Trustee will notify the Company promptly of any claim for
which it may seek indemnity. Failure by the Trustee to so notify the Company
will not relieve the Company of its obligations hereunder. The Company will
defend the claim and the Trustee will cooperate in the defense. The Trustee may
have separate counsel and the Company will pay the reasonable fees and expenses
of such counsel. The Company need not pay for any settlement made without its
consent, which consent will not be unreasonably withheld.

     (c) The obligations of the Company under this Section 7.07 will survive the
satisfaction and discharge of this Indenture.

     (d) To secure the Company's payment obligations in this Section 7.07, the
Trustee will have a Lien prior to the Notes on all money or property held or
collected by the Trustee, except that held in trust to pay principal and
interest on particular Notes. Such Lien will survive the satisfaction and
discharge of this Indenture.

     (e) When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.01(8) or (9) hereof 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.

     (f) The Trustee will comply with the provisions of TIA sec. 313(b)(2) to
the extent applicable.

     SECTION 7.08  Replacement of Trustee.

     (a) A resignation or removal of the Trustee and appointment of a successor
Trustee will become effective only upon the successor Trustee's acceptance of
appointment as provided in this Section 7.08.

     (b) The Trustee may resign in writing at any time and be discharged from
the trust hereby created by so notifying the Company. The Holders of a majority
in principal amount at maturity of the then outstanding Notes may remove the
Trustee by so notifying the Trustee and the Company in writing. The Company may
remove the Trustee if:

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

          (2) the Trustee is adjudged a bankrupt or an insolvent or an order for
     relief is entered with respect to the Trustee under any Bankruptcy Law;

          (3) a custodian or public officer takes charge of the Trustee or its
     property; or
                                       A-56
<PAGE>

          (4) the Trustee becomes incapable of acting.

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

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

     (e) If the Trustee, after written request by any Holder who has been a
Holder for at least six months, fails to comply with Section 7.10 hereof, such
Holder may petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee.

     (f) A successor Trustee will deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon, the
resignation or removal of the retiring Trustee will become effective, and the
successor Trustee will have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee will mail a notice of its succession
to Holders. The retiring Trustee will promptly transfer all property held by it
as Trustee to the successor Trustee, provided all sums owing to the Trustee
hereunder have been paid and subject to the Lien provided for in Section 7.07
hereof. Notwithstanding replacement of the Trustee pursuant to this Section
7.08, the Company's obligations under Section 7.07 hereof will continue for the
benefit of the retiring Trustee.

     SECTION 7.09  Successor Trustee by Merger, etc.

     If the Trustee consolidates, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation, the
successor corporation without any further act will be the successor Trustee.

     SECTION 7.10  Eligibility; Disqualification.

     There will at all times be a Trustee hereunder that is a corporation
organized and doing business under the laws of the United States of America or
of any state thereof that is authorized under such laws to exercise corporate
trustee power, that is subject to supervision or examination by federal or state
authorities and that has a combined capital and surplus of at least $100.0
million as set forth in its most recent published annual report of condition.

     This Indenture will always have a Trustee who satisfies the requirements of
TIA sec. 310(a)(1), (2) and (5). The Trustee is subject to TIA sec. 310(b).

     SECTION 7.11  Preferential Collection of Claims Against Company.

     The Trustee is subject to TIA sec. 311(a), excluding any creditor
relationship listed in TIA sec. 311(b). A Trustee who has resigned or been
removed shall be subject to TIA sec. 311(a) to the extent indicated therein.

                                   ARTICLE 8.

                    LEGAL DEFEASANCE AND COVENANT DEFEASANCE

     SECTION 8.01  Option to Effect Legal Defeasance or Covenant Defeasance.

     The Company may, at its option and at any time, elect to have either
Section 8.02 or 8.03 hereof be applied with respect to all outstanding Notes
upon compliance with the conditions set forth below in this Article 8.

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<PAGE>

     SECTION 8.02  Legal Defeasance and Discharge.

     Upon the Company's exercise under Section 8.01 hereof of the option
applicable to this Section 8.02, the Company will, subject to the satisfaction
of the conditions set forth in Section 8.04 hereof, be deemed to have been
discharged from their obligations with respect to all outstanding Notes on the
date the conditions set forth below are satisfied (hereinafter, "Legal
Defeasance"). For this purpose, Legal Defeasance means that the Company will be
deemed to have paid and discharged the entire Indebtedness represented by the
outstanding Notes, which will thereafter be deemed to be "outstanding" only for
the purposes of Section 8.05 hereof and the other Sections of this Indenture
referred to in clauses (1) and (2) below, and to have satisfied all their other
obligations under such Notes and this Indenture (and the Trustee, on demand of
and at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following provisions which will survive
until otherwise terminated or discharged hereunder:

          (1) the rights of Holders of outstanding Notes to receive payments in
     respect of the principal of, or interest or premium and Liquidated Damages,
     if any, on such Notes when such payments are due from the trust referred to
     in Section 8.04 hereof;

          (2) the Company's obligations with respect to such Notes under Article
     2 and Section 4.02 hereof;

          (3) the rights, powers, trusts, duties and immunities of the Trustee
     hereunder and the Company's obligations in connection therewith; and

          (4) this Article 8.

     Subject to compliance with this Article 8, the Company may exercise its
option under this Section 8.02 notwithstanding the prior exercise of its option
under Section 8.03 hereof.

     SECTION 8.03  Covenant Defeasance.

     Upon the Company's exercise under Section 8.01 hereof of the option
applicable to this Section 8.03, the Company will, subject to the satisfaction
of the conditions set forth in Section 8.04 hereof, be released from each of
their obligations under the covenants contained in Sections 4.07, 4.08, 4.09,
4.10, 4.11, 4.12, 4.13, 4.15, 4.16, 4.17 and 4.18 hereof and clause (4) of
Section 5.01 hereof with respect to the outstanding Notes on and after the date
the conditions set forth in Section 8.04 hereof are satisfied (hereinafter,
"Covenant Defeasance"), and the Notes will thereafter be deemed not
"outstanding" for the purposes of any direction, waiver, consent or declaration
or act of Holders (and the consequences of any thereof) in connection with such
covenants, but will continue to be deemed "outstanding" for all other purposes
hereunder (it being understood that such Notes will not be deemed outstanding
for accounting purposes). For this purpose, Covenant Defeasance means that, with
respect to the outstanding Notes, the Company may omit to comply with and will
have no liability in respect of any term, condition or limitation set forth in
any such covenant, whether directly or indirectly, by reason of any reference
elsewhere herein to any such covenant or by reason of any reference in any such
covenant to any other provision herein or in any other document and such
omission to comply will not constitute a Default or an Event of Default under
Section 6.01 hereof, but, except as specified above, the remainder of this
Indenture and such Notes will be unaffected thereby. In addition, upon the
Company's exercise under Section 8.01 hereof of the option applicable to this
Section 8.03 hereof, subject to the satisfaction of the conditions set forth in
Section 8.04 hereof, Sections 6.01(3) through 6.01(5) hereof will not constitute
Events of Default.

     SECTION 8.04  Conditions to Legal or Covenant Defeasance.

     In order to exercise either Legal Defeasance or Covenant Defeasance under
either Section 8.02 or 8.03 hereof:

          (1) the Company must irrevocably deposit with the Trustee, in trust,
     for the benefit of the Holders of the Notes, cash in U.S. dollars,
     non-callable Government Securities, or a combination of cash in U.S.
     dollars and non-callable Government Securities, in such amounts as will be
     sufficient, in the opinion of a nationally recognized investment bank,
     appraisal firm or firm of independent public accountants to pay the
     principal of, or interest and premium and Liquidated Damages, if any, on
     the outstanding Notes

                                       A-58
<PAGE>

     on the stated date for payment thereof or on the applicable redemption
     date, as the case may be, and the Company must specify whether the Notes
     are being defeased to such stated date for payment or to a particular
     redemption date;

          (2) in the case of an election under Section 8.02 hereof, the Company
     must deliver to the Trustee an Opinion of Counsel confirming that:

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

             (B) since the date of this Indenture, there has been a change in
        the applicable federal income tax law,

        in either case to the effect that, and based thereon such Opinion of
        Counsel will confirm that, the Holders of the outstanding Notes will not
        recognize income, gain or loss for federal income tax purposes as a
        result of such Legal Defeasance and will be subject to federal income
        tax on the same amounts, in the same manner and at the same times as
        would have been the case if such Legal Defeasance had not occurred;

          (3) in the case of an election under Section 8.03 hereof, the Company
     must deliver to the Trustee an Opinion of Counsel confirming that the
     Holders of the outstanding Notes will not recognize income, gain or loss
     for federal income tax purposes as a result of such Covenant Defeasance and
     will be subject to federal income tax on the same amounts, in the same
     manner and at the same times as would have been the case if such Covenant
     Defeasance had not occurred;

          (4) no Default or Event of Default has occurred and is continuing on
     the date of such deposit (other than a Default or Event of Default
     resulting from the borrowing of funds to be applied to such deposit) and
     the deposit will not result in a breach or violation of, or constitute a
     default under, any other instrument to which the Company is a party or by
     which the Company is bound;

          (5) such Legal Defeasance or Covenant Defeasance will not result in a
     breach or violation of, or constitute a default under any material
     agreement or instrument (other than this Indenture) to which the Company or
     any of its Subsidiaries is a party or by which the Company or any of its
     Subsidiaries is bound;

          (6) the Company must deliver to the Trustee an Officers' Certificate
     stating that the deposit was not made by the Company with the intent of
     preferring the Holders of Notes over the other creditors of the Company
     with the intent of defeating, hindering, delaying or defrauding any other
     creditors of the Company or others; and

          (7) the Company must deliver to the Trustee an Officers' Certificate
     and an Opinion of Counsel, which opinion may be subject to customary
     exclusions, each stating that all conditions precedent provided for or
     relating to the Legal Defeasance or the Covenant Defeasance have been
     complied with.

     SECTION 8.05  Deposited Money and Government Securities to be Held in
Trust; Other Miscellaneous Provisions.

     Subject to Section 8.06 hereof, all money and non-callable Government
Securities (including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee, collectively for purposes of this Section 8.05, the
"Trustee") pursuant to Section 8.04 hereof in respect of the outstanding Notes
will be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company acting as Paying Agent) as the
Trustee may determine, to the Holders of such Notes of all sums due and to
become due thereon in respect of principal, premium and Liquidated Damages, if
any, and interest, but such money need not be segregated from other funds except
to the extent required by law.

     The Company will pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the cash or non-callable Government
Securities deposited pursuant to Section 8.04 hereof or

                                       A-59
<PAGE>

the principal and interest received in respect thereof other than any such tax,
fee or other charge which by law is for the account of the Holders of the
outstanding Notes.

     Notwithstanding anything in this Article 8 to the contrary, the Trustee
will deliver or pay to the Company from time to time upon the request of the
Company any money or non-callable Government Securities held by it as provided
in Section 8.04 hereof which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee (which may be the opinion delivered under Section
8.04(1) hereof), are in excess of the amount thereof that would then be required
to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

     SECTION 8.06  Repayment to Company.

     Any money deposited with the Trustee or any Paying Agent, or then held by
the Company, in trust for the payment of the principal of, premium or Liquidated
Damages, if any, or interest on any Note and remaining unclaimed for two years
after such principal, premium or Liquidated Damages, if any, or interest has
become due and payable shall be paid to the Company on its request or (if then
held by the Company) will be discharged from such trust; and the Holder of such
Note will thereafter be permitted to look only to the Company for payment
thereof, and all liability of the Trustee or such Paying Agent with respect to
such trust money, and all liability of the Company as trustee thereof, will
thereupon cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the expense of the
Company cause to be published once, in the New York Times and The Wall Street
Journal (national edition), notice that such money remains unclaimed and that,
after a date specified therein, which will not be less than 30 days from the
date of such notification or publication, any unclaimed balance of such money
then remaining will be repaid to the Company.

     SECTION 8.07  Reinstatement.

     If the Trustee or Paying Agent is unable to apply any United States dollars
or non-callable Government Securities in accordance with Section 8.02 or 8.03
hereof, as the case may be, by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the Company's obligations under this Indenture and the Notes
will be revived and reinstated as though no deposit had occurred pursuant to
Section 8.02 or 8.03 hereof until such time as the Trustee or Paying Agent is
permitted to apply all such money in accordance with Section 8.02 or 8.03
hereof, as the case may be; provided, however, that, if the Company makes any
payment of principal of, premium or Liquidated Damages, if any, or interest on
any Note following the reinstatement of its obligations, the Company will be
subrogated to the rights of the Holders of such Notes to receive such payment
from the money held by the Trustee or Paying Agent.

                                   ARTICLE 9.

                        AMENDMENT, SUPPLEMENT AND WAIVER

     SECTION 9.01  Without Consent of Holders of Notes.

     Notwithstanding Section 9.02 of this Indenture, the Company and the Trustee
may amend or supplement this Indenture, the Notes without the consent of any
Holder of Notes:

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

          (2) to provide for uncertificated Notes in addition to or in place of
     certificated Notes;

          (3) to provide for the assumption of the Company's obligations to the
     Holders of Notes in the case of a merger or consolidation or sale of all or
     substantially all of the Company's assets;

          (4) to make any change that would provide any additional rights or
     benefits to the Holders of Notes or that does not adversely affect the
     legal rights hereunder of any such Holder;

          (5) to comply with requirements of the SEC in order to effect or
     maintain the qualification of this Indenture under the TIA; or
                                       A-60
<PAGE>

          (6) to conform the text of this Indenture or the Notes to any
     provision of the "Description of Notes" section of the Company's Offering
     Memorandum dated January 27, 2004, relating to the initial offering of the
     Notes, to the extent that such provision in that "Description of Notes" was
     intended to be a verbatim recitation of a provision of this Indenture or
     the Notes.

     Upon the request of the Company accompanied by a resolution of its Board of
Directors authorizing the execution of any such amended or supplemental
indenture, and upon receipt by the Trustee of the documents described in Section
7.02 hereof, the Trustee will join with the Company in the execution of any
amended or supplemental indenture authorized or permitted by the terms of this
Indenture and to make any further appropriate agreements and stipulations that
may be therein contained, but the Trustee will not be obligated to enter into
such amended or supplemental indenture that affects its own rights, duties or
immunities under this Indenture or otherwise.

     SECTION 9.02  With Consent of Holders of Notes.

     Except as provided below in this Section 9.02, the Company and the Trustee
may amend or supplement this Indenture (including, without limitation, Section
3.09, 4.10 and 4.15 hereof), and the Notes with the consent of the Holders of at
least a majority in aggregate principal amount at maturity of the Notes
(including, without limitation, Additional Notes, if any) then outstanding
voting as a single class (including, without limitation, consents obtained in
connection with a purchase of, or tender offer or exchange offer for Notes),
and, subject to Sections 6.04 and 6.07 hereof, any existing Default or Event of
Default or compliance with any provision of this Indenture or the Notes may be
waived with the consent of the Holders of a majority in aggregate principal
amount at maturity of the Notes (including, without limitation, Additional
Notes, if any) then outstanding voting as a single class (including, without
limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for Notes).

     Upon the request of the Company accompanied by a resolution of its Board of
Directors authorizing the execution of any such amended or supplemental
indenture, and upon the filing with the Trustee of evidence satisfactory to the
Trustee of the consent of the Holders of Notes as aforesaid, and upon receipt by
the Trustee of the documents described in Section 7.02 hereof, the Trustee will
join with the Company in the execution of such amended or supplemental indenture
unless such amended or supplemental indenture directly affects the Trustee's own
rights, duties or immunities under this Indenture or otherwise, in which case
the Trustee may in its discretion, but will not be obligated to, enter into such
amended or supplemental indenture.

     It is not be necessary for the consent of the Holders of Notes under this
Section 9.02 to approve the particular form of any proposed amendment or waiver,
but it is sufficient if such consent approves the substance thereof.

     After an amendment, supplement or waiver under this Section 9.02 becomes
effective, the Company will mail to the Holders of Notes affected thereby a
notice briefly describing the amendment, supplement or waiver. Any failure of
the Company to mail such notice, or any defect therein, will not, however, in
any way impair or affect the validity of any such amended or supplemental
indenture or waiver. Subject to Sections 6.04 and 6.07 hereof, the Holders of a
majority in aggregate principal amount at maturity of the Notes then outstanding
voting as a single class may waive compliance in a particular instance by the
Company with any provision of this Indenture or the Notes. However, without the
consent of each Holder affected, an amendment or waiver under this Section 9.02
may not (with respect to any Notes held by a non-consenting Holder):

          (1) reduce the principal amount at maturity of Notes whose Holders
     must consent to an amendment, supplement or waiver;

          (2) reduce the principal of or change the fixed maturity of any Note
     or alter the provisions with respect to the redemption of the Notes (other
     than provisions with respect to Sections 3.09, 4.10 and 4.15 hereof);

          (3) reduce the rate of or change the time for payment of interest on
     any Note;

                                       A-61
<PAGE>

          (4) waive a Default or Event of Default in the payment of principal
     of, or premium, or Liquidated Damages, if any, or interest on the Notes
     (except a rescission of acceleration of the Notes by the Holders of at
     least a majority in aggregate principal amount at maturity of the then
     outstanding Notes and a waiver of the payment default that resulted from
     such acceleration);

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

          (6) make any change in the provisions of this Indenture relating to
     waivers of past Defaults or the rights of Holders of Notes to receive
     payments of principal of, or interest or premium or Liquidated Damages, if
     any, on the Notes;

          (7) waive a redemption payment with respect to any Note (other than a
     payment required by Sections 3.09, 4.10 or 4.15 hereof); or

          (8) make any changes to Sections 6.04 or 6.07 hereof or the preceding
     amendment and waiver provisions.

     SECTION 9.03  Compliance with Trust Indenture Act.

     Every amendment or supplement to this Indenture or the Notes will be set
forth in a amended or supplemental indenture that complies with the TIA as then
in effect.

     SECTION 9.04  Revocation and Effect of Consents.

     Until an amendment, supplement or waiver becomes effective, a consent to it
by a Holder of a Note is a continuing consent by the Holder of a Note and every
subsequent Holder of a Note or portion of a Note that evidences the same debt as
the consenting Holder's Note, even if notation of the consent is not made on any
Note. However, any such Holder of a Note or subsequent Holder of a Note may
revoke the consent as to its Note if the Trustee receives written notice of
revocation before the date the waiver, supplement or amendment becomes
effective. An amendment, supplement or waiver becomes effective in accordance
with its terms and thereafter binds every Holder.

     SECTION 9.05  Notation on or Exchange of Notes.

     The Trustee may place an appropriate notation about an amendment,
supplement or waiver on any Note thereafter authenticated. The Company in
exchange for all Notes may issue and the Trustee shall, upon receipt of an
Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

     Failure to make the appropriate notation or issue a new Note will not
affect the validity and effect of such amendment, supplement or waiver.

     SECTION 9.06  Trustee to Sign Amendments, etc.

     The Trustee will sign any amended or supplemental indenture authorized
pursuant to this Article 9 if the amendment or supplement does not adversely
affect the rights, duties, liabilities or immunities of the Trustee. The Company
may not sign an amended or supplemental indenture until the Board of Directors
approves it. In executing any amended or supplemental indenture, the Trustee
will be entitled to receive and (subject to Section 7.01 hereof) will be fully
protected in relying upon, in addition to the documents required by Section
11.04 hereof, an Officers' Certificate and an Opinion of Counsel stating that
the execution of such amended or supplemental indenture is authorized or
permitted by this Indenture.

                                       A-62
<PAGE>

                                  ARTICLE 10.

                           SATISFACTION AND DISCHARGE

     SECTION 10.01  Satisfaction and Discharge.

     This Indenture will be discharged and will cease to be of further effect as
to all Notes issued hereunder, when:

          (1) either:

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

             (b) all Notes that have not been delivered to the Trustee for
        cancellation have become due and payable by reason of the mailing of a
        notice of redemption or otherwise or will become due and payable within
        one year and the Company has irrevocably deposited or caused to be
        deposited with the Trustee as trust funds in trust solely for the
        benefit of the Holders, cash in U.S. dollars, non-callable Government
        Securities, or a combination of cash in U.S. dollars and non-callable
        Government Securities, in such amounts as will be sufficient, without
        consideration of any reinvestment of interest, to pay and discharge the
        entire Indebtedness on the Notes not delivered to the Trustee for
        cancellation for principal, premium and Liquidated Damages, if any, and
        accrued interest to the date of maturity or redemption;

          (2) no Default or Event of Default has occurred and is continuing on
     the date of the deposit (other than a Default or Event of Default resulting
     from the borrowing of funds to be applied to such deposit) and the deposit
     will not result in a breach or violation of, or constitute a default under,
     any other instrument to which the Company is a party or by which the
     Company is bound;

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

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

     In addition, the Company must deliver an Officers' Certificate and an
Opinion of Counsel to the Trustee, which opinion may be subject to customary
assumptions and exclusions, stating that all conditions precedent to
satisfaction and discharge have been satisfied.

     Notwithstanding the satisfaction and discharge of this Indenture, if money
has been deposited with the Trustee pursuant to subclause (b) of clause (1) of
this Section, the provisions of Sections 10.02 and 8.06 hereof will survive. In
addition, nothing in this Section 10.01 will be deemed to discharge those
provisions of Section 7.07 hereof, that, by their terms, survive the
satisfaction and discharge of this Indenture.

     SECTION 10.02  Application of Trust Money.

     Subject to the provisions of Section 8.06 hereof, all money deposited with
the Trustee pursuant to Section 10.01 hereof shall be held in trust and applied
by it, in accordance with the provisions of the Notes and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal (and premium, if any) and interest for whose
payment such money has been deposited with the Trustee; but such money need not
be segregated from other funds except to the extent required by law.

     If the Trustee or Paying Agent is unable to apply any money or Government
Securities in accordance with Section 10.01 hereof by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the
Company's obligations under this Indenture and the Notes shall be revived and
reinstated as though no deposit had occurred pursuant to Section 10.01 hereof;
provided that if the Company has made any payment of principal of, premium, if
any, or interest on any Notes because of the reinstatement of its obligations,
the Company
                                       A-63
<PAGE>

shall be subrogated to the rights of the Holders of such Notes to receive such
payment from the money or Government Securities held by the Trustee or Paying
Agent.

                                  ARTICLE 11.

                                 MISCELLANEOUS

     SECTION 11.01  Trust Indenture Act Controls.

     If any provision of this Indenture limits, qualifies or conflicts with the
duties imposed by TIA sec.318(c), the imposed duties will control.

     SECTION 11.02  Notices.

     Any notice or communication by the Company or the Trustee to the others is
duly given if in writing and delivered in Person or mailed by first class mail
(registered or certified, return receipt requested), telex, telecopier or
overnight air courier guaranteeing next day delivery, to the others' address:

     If to the Company:

     Haights Cross Communications, Inc.
     10 New King Street, Suite 102
     White Plains, New York 10604
     Telecopier No.: (914) 289-9400
     Attention: Chief Financial Officer

     With a copy to:

     Goodwin Procter LLP
     53 State Street
     Exchange Place
     Boston, Massachusetts 02109
     Telecopier No.: (617) 570-1511
     Attention: David F. Dietz, P.C.

     If to the Trustee:

     Wells Fargo Bank Minnesota, N.A.
     213 Court Street, Suite 703
     Middletown, Connecticut 06457
     Telecopier No.: (860) 704-6219
     Attention: Corporate Trust Officer

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

     All notices and communications (other than those sent to Holders) will be
deemed to have been duly given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when answered back, if telexed; when receipt acknowledged,
if telecopied; and the next Business Day after timely delivery to the courier,
if sent by overnight air courier guaranteeing next day delivery.

     Any notice or communication to a Holder will be mailed by first class mail,
certified or registered, return receipt requested, or by overnight air courier
guaranteeing next day delivery to its address shown on the register kept by the
Registrar. Any notice or communication will also be so mailed to any Person
described in TIA sec. 313(c), to the extent required by the TIA. Failure to mail
a notice or communication to a Holder or any defect in it will not affect its
sufficiency with respect to other Holders.

     If a notice or communication is mailed in the manner provided above within
the time prescribed, it is duly given, whether or not the addressee receives it.
                                       A-64
<PAGE>

     If the Company mails a notice or communication to Holders, it will mail a
copy to the Trustee and each Agent at the same time.

     SECTION 11.03  Communication by Holders of Notes with Other Holders of
Notes.

     Holders may communicate pursuant to TIA sec. 312(b) with other Holders with
respect to their rights under this Indenture or the Notes. The Company, the
Trustee, the Registrar and anyone else shall have the protection of TIA
sec. 312(c).

     SECTION 11.04  Certificate and Opinion as to Conditions Precedent.

     Upon any request or application by the Company to the Trustee to take any
action under this Indenture, the Company shall furnish to the Trustee:

          (1) an Officers' Certificate in form and substance reasonably
     satisfactory to the Trustee (which must include the statements set forth in
     Section 11.05 hereof) stating that, in the opinion of the signers, all
     conditions precedent and covenants, if any, provided for in this Indenture
     relating to the proposed action have been satisfied; and

          (2) an Opinion of Counsel in form and substance reasonably
     satisfactory to the Trustee (which must include the statements set forth in
     Section 11.05 hereof) stating that, in the opinion of such counsel, all
     such conditions precedent and covenants have been satisfied.

     SECTION 11.05  Statements Required in Certificate or Opinion.

     Each certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA sec. 314(a)(4)) must comply with the provisions of TIA
sec. 314(e) and must include:

          (1) a statement that the Person making such certificate or opinion has
     read such covenant or condition;

          (2) a brief statement as to the nature and scope of the examination or
     investigation upon which the statements or opinions contained in such
     certificate or opinion are based;

          (3) a statement that, in the opinion of such Person, he or she has
     made such examination or investigation as is necessary to enable him or her
     to express an informed opinion as to whether or not such covenant or
     condition has been satisfied; and

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

     SECTION 11.06  Rules by Trustee and Agents.

     The Trustee may make reasonable rules for action by or at a meeting of
Holders. The Registrar or Paying Agent may make reasonable rules and set
reasonable requirements for its functions.

     SECTION 11.07  No Personal Liability of Directors, Officers, Employees and
Stockholders.

     No director, officer, employee, incorporator or stockholder of the Company,
as such, will have any liability for any obligations of the Company under the
Notes, this Indenture, or for any claim based on, in respect of, or by reason
of, such obligations or their creation. Each Holder of Notes by accepting a Note
waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes. The waiver may not be effective to
waive liabilities under the federal securities laws.

     SECTION 11.08  Governing Law.

     THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO
CONSTRUE THIS INDENTURE, THE NOTES WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

                                       A-65
<PAGE>

     SECTION 11.09  No Adverse Interpretation of Other Agreements.

     This Indenture may not be used to interpret any other indenture, loan or
debt agreement of the Company or its Subsidiaries or of any other Person. Any
such indenture, loan or debt agreement may not be used to interpret this
Indenture.

     SECTION 11.10  Successors.

     All agreements of the Company in this Indenture and the Notes will bind its
successors. All agreements of the Trustee in this Indenture will bind its
successors.

     SECTION 11.11  Severability.

     In case any provision in this Indenture or in the Notes is invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining
provisions will not in any way be affected or impaired thereby.

     SECTION 11.12  Counterpart Originals.

     The parties may sign any number of copies of this Indenture. Each signed
copy will be an original, but all of them together represent the same agreement.

     SECTION 11.13  Table of Contents, Headings, etc.

     The Table of Contents, Cross-Reference Table and Headings of the Articles
and Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part of this Indenture and will in no way
modify or restrict any of the terms or provisions hereof.

                         [Signatures on following page]

                                       A-66
<PAGE>

                                   SIGNATURES
Dated as of February 2, 2004

                                          HAIGHTS CROSS COMMUNICATIONS, INC.

                                          By:      /s/ PAUL J. CRECCA
                                            ------------------------------------
                                            Name: Paul J. Crecca
                                            Title:  Executive Vice President and
                                                    Chief
                                                Financial Officer

                                          WELLS FARGO BANK MINNESOTA, N.A.,
                                          as Trustee

                                          By:    /s/ JOSEPH P. O'DONNELL
                                            ------------------------------------
                                            Name: Joseph P. O'Donnell
                                            Title:  Corporate Trust Officer

                                       A-67
<PAGE>

                                                                      EXHIBIT A1

                                 [Face of Note]
--------------------------------------------------------------------------------

     THIS NOTE WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT UNDER SECTIONS 1272, 1273
AND 1275 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. YOU MAY CONTACT THE
CHIEF FINANCIAL OFFICER OF HAIGHTS CROSS COMMUNICATIONS, INC., AT 10 NEW KING
STREET, SUITE 102, WHITE PLAINS, NEW YORK 10604, (914) 289-9420, WHO WILL
PROVIDE YOU WITH ANY REQUIRED INFORMATION REGARDING THE ORIGINAL ISSUE DISCOUNT.

                                                                      CUSIP/CINS
                                                  ------------------------------

                     12 1/2% Senior Discount Notes due 2011

No. ---------------                                            $ ---------------

                       HAIGHTS CROSS COMMUNICATIONS, INC.

promises to pay to ------------------------- or registered assigns,

the principal sum of DOLLARS

on August 15, 2011.

Interest Payment Dates: February 1 and August 1, commencing August 1, 2009

Record Dates: January 15 and July 15

Dated: --------------- , 200--

                                          HAIGHTS CROSS COMMUNICATIONS, INC.

                                          By:
                                            ------------------------------------

                                            Name:
                                            Title:

This is one of the Notes referred to
in the within-mentioned Indenture:

WELLS FARGO BANK MINNESOTA, N.A.,
as Trustee

By:
    ----------------------------------
           Authorized Signatory
--------------------------------------------------------------------------------

                                       A1-1
<PAGE>

                                 [Back of Note]
                     12 1/2% Senior Discount Notes due 2011

     [Insert the Global Note Legend, if applicable pursuant to the provisions of
the Indenture]

     [Insert the Private Placement Legend, if applicable pursuant to the
provisions of the Indenture]

     Capitalized terms used herein have the meanings assigned to them in the
Indenture referred to below unless otherwise indicated.

          (1) Interest.  No interest will accrue on this Note prior to February
     1, 2009. Instead, the Accreted Value of this Note will increase
     (representing amortization of original issue discount) from the date of
     original issuance to but not including February 1, 2009 at a rate of
     12 1/2% per annum calculated on a semi-annual basis using a 360-day year
     comprised of twelve 30-day months, such that the Accreted Value on February
     1, 2009 will be equal to the full principal amount at maturity of this
     Note. Beginning on February 1, 2009, interest on this Note will accrue at a
     rate of 12 1/2% per annum and will be payable in cash semi-annually in
     arrears on February 1 and August 1 of each year, or if any such day is not
     a Business Day, on the next succeeding Business Day (each, an "Interest
     Payment Date"), and Haights Cross Communications, Inc., a Delaware
     corporation (the "Company"), promises to so pay cash interest on the
     principal amount of this Note at 12 1/2% per annum from February 1, 2009
     until maturity. In addition, the Company shall pay the Liquidated Damages,
     if any, payable pursuant to Section 5 of the Registration Rights Agreement
     referred to below. Interest on this Note will accrue from the most recent
     date to which interest has been paid or, if no interest has been paid, from
     February 1, 2009; provided that if there is no existing Default in the
     payment of interest, and if this Note is authenticated between a record
     date referred to on the face hereof and the next succeeding Interest
     Payment Date, interest shall accrue from such next succeeding Interest
     Payment Date; provided, further, that the first Interest Payment Date shall
     be August 1, 2009. The Company will pay interest (including post-petition
     interest in any proceeding under any Bankruptcy Law) on overdue principal
     and premium, if any, from time to time on demand at a rate that is 1% per
     annum in excess of the rate then in effect; it will pay interest (including
     post-petition interest in any proceeding under any Bankruptcy Law) on
     overdue installments of interest and Liquidated Damages, if any, (without
     regard to any applicable grace periods) from time to time on demand at the
     same rate to the extent lawful. Interest will be computed on the basis of a
     360-day year of twelve 30-day months.

          (2) Method of Payment.  The Company will pay interest on the Notes
     (except defaulted interest) and Liquidated Damages, if any, to the Persons
     who are registered Holders of Notes at the close of business on the January
     15 or July 15 next preceding the Interest Payment Date, even if such Notes
     are canceled after such record date and on or before such Interest Payment
     Date, except as provided in Section 2.12 of the Indenture with respect to
     defaulted interest. The Notes will be payable as to principal, premium,
     Liquidated Damages, if any, and interest at the office or agency of the
     Company maintained for such purpose within or without the City and State of
     New York, or, at the option of the Company, payment of interest and
     Liquidated Damages, if any, may be made by check mailed to the Holders at
     their addresses set forth in the register of Holders; provided that payment
     by wire transfer of immediately available funds will be required with
     respect to the principal of and interest, premium and Liquidated Damages,
     if any, on, all Global Notes and all other Notes the Holders of which will
     have provided wire transfer instructions to the Company or the Paying
     Agent. Such payment will be in such coin or currency of the United States
     of America as at the time of payment is legal tender for payment of public
     and private debts.

          (3) Paying Agent and Registrar.  Initially, Wells Fargo Bank
     Minnesota, N.A., the Trustee under the Indenture, will act as Paying Agent
     and Registrar. The Company may change any Paying Agent or Registrar without
     notice to any Holder. The Company or any of its Subsidiaries may act in any
     such capacity.

          (4) Indenture.  The Company issued the Notes under an Indenture dated
     as of February 2, 2004 (the "Indenture") between the Company and the
     Trustee. The terms of the Notes include those stated in

                                       A1-2
<PAGE>

     the Indenture and those made part of the Indenture by reference to the
     Trust Indenture Act of 1939 (15 U.S. Code sec.sec. 77aaa-77bbbb) as in
     effect on the date on which the Indenture is qualified thereunder. The
     Notes are subject to all such terms, and Holders are referred to the
     Indenture and such Act for a statement of such terms. To the extent any
     provision of this Note conflicts with the express provisions of the
     Indenture, the provisions of the Indenture shall govern and be controlling.
     The Notes are unsecured obligations of the Company.

          (5) Optional Redemption.

     (a) Except as set forth in subparagraphs (b) and (c) of this Paragraph 5,
the Company will not have the option to redeem all or part of the Notes prior to
February 15, 2008. On or after February 15, 2008, the Company will have the
option to redeem all or a part of the Notes upon not less than 10 nor more than
60 days' notice, at the redemption prices (expressed as percentages of principal
amount (or, if prior to February 1, 2009, of Accreted Value)) set forth below
plus accrued and unpaid interest and Liquidated Damages, if any, on the Notes
redeemed, to the applicable redemption date, if redeemed during the twelve-
month period beginning on February 15 of the years indicated below:

<Table>
<Caption>
YEAR                                                           PERCENTAGE
----                                                           ----------
<S>                                                            <C>
2008........................................................    106.250%
2009........................................................    103.125%
2010 and thereafter.........................................    100.000%
</Table>

     Unless the Company defaults in the payment of the redemption price,
Accreted Value will cease to increase and interest will cease to accrue, as the
case may be, on the Notes or portions thereof called for redemption on the
applicable redemption date.

     (b) Prior to February 15, 2008, upon the occurrence of a Change of Control,
the Company may redeem the Notes, in whole and not in part, upon not less than
10 nor more than 60 days' prior notice, at a redemption price of 112.500% of the
Accreted Value thereof, plus accrued and unpaid Liquidated Damages, if any, to
the redemption date.

     (c) Notwithstanding the provisions of subparagraph (a) of this Paragraph 5,
at any time prior to February 15, 2007, the Company may on any one or more
occasions redeem up to 35% of the aggregate principal amount at maturity of
Notes at a redemption price of 112.500% of the Accreted Value thereof, plus
accrued and unpaid Liquidated Damages, if any, to the redemption date with the
net cash proceeds of one or more Equity Offerings; provided that at least 65% in
aggregate principal amount at maturity of the Notes originally issued under the
Indenture (excluding Notes held by the Company and its Subsidiaries) remains
outstanding immediately after the occurrence of such redemption and that such
redemption occurs within 90 days of the date of the closing of such Equity
Offering.

          (6) Mandatory Redemption.  The Company will not be required to make
     mandatory redemption or sinking fund payments with respect to the Notes.

          (7) Repurchase at the Option of the Holder.

     (a) If there is a Change of Control, the Company will be required to make
an offer (a "Change of Control Offer") to repurchase all or any part (equal to
$1,000 in principal amount at maturity or an integral multiple thereof) of each
Holder's Notes at a purchase price equal to 101% of the Accreted Value of Notes
repurchased plus accrued and unpaid Liquidated Damages, if any, on the Notes
repurchased, to the date of purchase (if prior to February 1, 2009) or 101% of
the aggregate principal amount of Notes repurchased plus accrued and unpaid
interest and Liquidated Damages, if any, on the Notes repurchased, to the date
of purchase (if on or after February 1, 2009) (in either case, the "Change of
Control Payment"). Within 30 days following any Change of Control, the Company
will mail a notice to each Holder setting forth the procedures governing the
Change of Control Offer as required by the Indenture.

     (b) If the Company or a Restricted Subsidiary of the Company consummates
any Asset Sales, within five days of each date on which the aggregate amount of
Excess Proceeds exceeds $10.0 million, the Company

                                       A1-3
<PAGE>

will commence an offer to all Holders of Notes and all holders of other
Indebtedness that is pari passu with the Notes containing provisions similar to
those set forth in the Indenture with respect to offers to purchase or redeem
with the proceeds of sales of assets (an "Asset Sale Offer") pursuant to Section
3.09 of the Indenture to purchase the maximum aggregate Accreted Value or
principal amount, as applicable, of Notes (including any Additional Notes) and
other pari passu Indebtedness that may be purchased out of the Excess Proceeds
at an offer price in cash in an amount equal to 100% of the Accreted Value of
the Notes on the date of purchase plus accrued and unpaid Liquidated Damages
thereon, if any (if prior to February 1, 2009), or 100% of the principal amount
of Notes plus accrued and unpaid interest and Liquidated Damages, if any, to the
date of purchase (if on or after February 1, 2009), in each case which price
will be payable in cash, in accordance with the procedures set forth in the
Indenture. To the extent that the aggregate amount of Notes (including any
Additional Notes) and other pari passu Indebtedness tendered pursuant to an
Asset Sale Offer is less than the Excess Proceeds, the Company (or such
Restricted Subsidiary) may use such deficiency for any purpose not otherwise
prohibited by the Indenture. If the aggregate Accreted Value or principal
amount, as applicable, of Notes and other pari passu Indebtedness surrendered by
holders thereof exceeds the amount of Excess Proceeds, the Trustee shall select
the Notes and other pari passu Indebtedness to be purchased on a pro rata basis.
Holders of Notes that are the subject of an offer to purchase will receive an
Asset Sale Offer from the Company prior to any related purchase date and may
elect to have such Notes purchased by completing the form entitled "Option of
Holder to Elect Purchase" attached to the Notes.

          (8) Notice of Redemption.  Notice of redemption will be mailed at
     least 10 days but not more than 60 days before the redemption date to each
     Holder whose Notes are to be redeemed at its registered address, except
     that redemption notices may be mailed more than 60 days prior to a
     redemption date if the notice is issued in connection with a defeasance of
     the Notes or a satisfaction or discharge of the Indenture. Notes in
     denominations larger than $1,000 in principal amount at maturity may be
     redeemed in part but only in whole multiples of $1,000, unless all of the
     Notes held by a Holder are to be redeemed. On and after the redemption date
     Accreted Value ceases to increase and interest ceases to accrue, as the
     case may be, on Notes or portions thereof called for redemption.

          (9) Denominations, Transfer, Exchange.  The Notes are in registered
     form without coupons in denominations of $1,000 in principal amount at
     maturity and integral multiples of $1,000. The transfer of Notes may be
     registered and Notes may be exchanged as provided in the Indenture. The
     Registrar and the Trustee may require a Holder, among other things, to
     furnish appropriate endorsements and transfer documents and the Company may
     require a Holder to pay any taxes and fees required by law or permitted by
     the Indenture. The Company need not exchange or register the transfer of
     any Note or portion of a Note selected for redemption, except for the
     unredeemed portion of any Note being redeemed in part. Also, the Company
     need not exchange or register the transfer of any Notes for a period of 15
     days before a selection of Notes to be redeemed or during the period
     between a record date and the corresponding Interest Payment Date.

          (10) Persons Deemed Owners.  The registered Holder of a Note may be
     treated as its owner for all purposes.

          (11) Amendment, Supplement and Waiver.  Subject to certain exceptions,
     the Indenture or the Notes may be amended or supplemented with the consent
     of the Holders of at least a majority in aggregate principal amount at
     maturity of the then outstanding Notes (including any Additional Notes)
     voting as a single class, and any existing Default or Event of Default or
     compliance with any provision of the Indenture or the Notes may be waived
     with the consent of the Holders of a majority in aggregate principal amount
     at maturity of the then outstanding Notes and Additional Notes, if any,
     voting as a single class. Without the consent of any Holder of a Note, the
     Indenture or the Notes may be amended or supplemented to cure any
     ambiguity, defect or inconsistency, to provide for uncertificated Notes in
     addition to or in place of certificated Notes, to provide for the
     assumption of the Company's obligations to Holders of Notes in case of a
     merger or consolidation or sale of all or substantially all of the
     Company's assets, to make any change that would provide any additional
     rights or benefits to the Holders of Notes or that does not adversely
     affect the legal rights under the Indenture of any such Holder, to comply
     with the requirements of the SEC in order to effect or maintain the
     qualification of the Indenture under the TIA
                                       A1-4
<PAGE>

     or to conform the text of the Indenture or the Notes to any provision of
     the "Description of Notes" section of the Company's Offering Memorandum
     dated January 27, 2004 relating to the initial offering of the Notes, to
     the extent that such provision in that "Description of Notes" was intended
     to be a verbatim recitation of a provision of the Indenture or the Notes.

          (12) Defaults and Remedies.  Events of Default include: (i) the
     Company defaults in the payment when due of interest or Liquidated Damages
     on the Notes, and such default continues for a period of 30 days; (ii) the
     Company defaults in payment when due at maturity, upon redemption or
     otherwise of principal of, or premium, if any, on the Notes; (iii) the
     Company or any of its Restricted Subsidiaries fails to comply with Sections
     4.07, 4.09, 4.10, 4.15 or 5.01 of the Indenture and such failure continues
     for a period of 30 days after notice to the Company by the Trustee or the
     Holders of at least 25% in aggregate principal amount at maturity of the
     Notes then outstanding voting as a single class; (iv) the Company or any of
     its Restricted Subsidiaries fails to observe or perform any other covenant,
     representation, warranty or other agreement in the Indenture or the Notes,
     and such failure continues for 60 days after notice to the Company by the
     Trustee or the Holders of at least 25% in aggregate principal amount at
     maturity of the Notes then outstanding voting as a single class; (v) a
     default occurs under any mortgage, indenture or instrument under which
     there may be issued or by which there may be secured or evidenced any
     Indebtedness for money borrowed by the Company or any of its Restricted
     Subsidiaries (or the payment of which is guaranteed by the Company or any
     of its Subsidiaries) whether such Indebtedness or guarantee now exists, or
     is created after the date of the Indenture, if that default: (a) is caused
     by a failure to pay principal of, or interest or premium, if any, on such
     Indebtedness prior to the expiration of the grace period provided in such
     Indebtedness on the date of such default (a "Payment Default"); or (b)
     results in the acceleration of such Indebtedness prior to its express
     maturity, and, in each case, the principal amount of any such Indebtedness,
     together with the principal amount of any other such Indebtedness under
     which there has been a Payment Default or the maturity of which has been so
     accelerated, aggregates $20.0 million or more; (vi) failure by, the Company
     or any of its Restricted Subsidiaries to pay final judgments aggregating in
     excess of $20.0 million (other than such judgments that are fully covered
     by insurance, subject to ordinary deductibles), which judgments are not
     paid, discharged or stayed for a period of 60 days after such judgment
     becomes final; (vii) certain events of bankruptcy or insolvency with
     respect to the Company or any of its Restricted Subsidiaries that is a
     Significant Subsidiary or any group of Restricted Subsidiaries that, taken
     together, would constitute a Significant Subsidiary. If any Event of
     Default occurs and is continuing, the Trustee or the Holders of at least
     25% in aggregate principal amount at maturity of the then outstanding Notes
     may declare all the Notes to be due and payable immediately.
     Notwithstanding the foregoing, in the case of an Event of Default arising
     from certain events of bankruptcy or insolvency described in subclause
     (viii) above, all outstanding Notes will become due and payable without
     further action or notice. Holders may not enforce the Indenture or the
     Notes except as provided in the Indenture. Subject to certain limitations,
     Holders of a majority in aggregate principal amount at maturity of the then
     outstanding Notes may direct the Trustee in its exercise of any trust or
     power. The Trustee may withhold from Holders of the Notes notice of any
     continuing Default or Event of Default (except a Default or Event of
     Default relating to the payment of principal or interest) if it determines
     that withholding notice is in their interest. The Holders of a majority in
     aggregate principal amount at maturity of the Notes then outstanding by
     notice to the Trustee, may on behalf of all Holders, waive any existing
     Default or Event of Default and its consequences under the Indenture except
     a continuing Defaul t or Event of Default in the payment of interest or
     premium or Liquidated Damages on, or the principal of, the Notes. The
     Company is required to deliver to the Trustee annually a statement
     regarding compliance with the Indenture, and the Company is required upon
     becoming aware of any Default or Event of Default, to deliver to the
     Trustee a statement specifying such Default or Event of Default.

          (13) Trustee Dealings with Company.  The Trustee, in its individual or
     any other capacity, may make loans to, accept deposits from, and perform
     services for the Company or its Affiliates, and may otherwise deal with the
     Company or its Affiliates, as if it were not the Trustee.

                                       A1-5
<PAGE>

          (14) No Recourse Against Others.  A director, officer, employee,
     incorporator or stockholder, of the Company, as such, will not have any
     liability for any obligations of the Company under the Notes or the
     Indenture or for any claim based on, in respect of, or by reason of, such
     obligations or their creation. Each Holder by accepting a Note waives and
     releases all such liability. The waiver and release are part of the
     consideration for the issuance of the Notes.

          (15) Authentication.  This Note will not be valid until authenticated
     by the manual signature of the Trustee or an authenticating agent.

          (16) Abbreviations.  Customary abbreviations may be used in the name
     of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT
     (= tenants by the entireties), JT TEN (= joint tenants with right of
     survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A
     (= Uniform Gifts to Minors Act).

          (17) Additional Rights of Holders of Restricted Global Notes and
     Restricted Definitive Notes.  In addition to the rights provided to Holders
     of Notes under the Indenture, Holders of Restricted Global Notes and
     Restricted Definitive Notes will have all the rights set forth in the
     Registration Rights Agreement dated as of February 2, 2004, between the
     Company and the other parties named on the signature pages thereof or, in
     the case of Additional Notes, Holders of Restricted Global Notes and
     Restricted Definitive Notes will have the rights set forth in one or more
     registration rights agreements, if any, between the Company and the other
     parties thereto, relating to rights given by the Company to the purchasers
     of any Additional Notes (collectively, the "Registration Rights
     Agreement").

          (18) CUSIP Numbers.  Pursuant to a recommendation promulgated by the
     Committee on Uniform Security Identification Procedures, the Company has
     caused CUSIP numbers to be printed on the Notes and the Trustee may use
     CUSIP numbers in notices of redemption as a convenience to Holders. No
     representation is made as to the accuracy of such numbers either as printed
     on the Notes or as contained in any notice of redemption and reliance may
     be placed only on the other identification numbers placed thereon.

     The Company will furnish to any Holder upon written request and without
charge a copy of the Indenture and/or the Registration Rights Agreement.
Requests may be made to:

Haights Cross Communications, Inc.
10 New King Street, Suite 102
White Plains, New York 10604
Attention: Chief Financial Officer

                                       A1-6
<PAGE>

                                ASSIGNMENT FORM

     To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to: ----------------------------
                                           (Insert assignee's legal name)

--------------------------------------------------------------------------------
                 (Insert assignee's soc. sec. or tax I.D. no.)

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
             (Print or type assignee's name, address and zip code)

and irrevocably appoint -------------------------
to transfer this Note on the books of the Company. The agent may substitute
another to act for him.
Date: -------------------------

                                          Your Signature:
                                          -----------------------------------
                                           (Sign exactly as your name appears on
                                                          the face of this Note)

Signature Guarantee*: -------------------------

     * Participant in a recognized Signature Guarantee Medallion Program (or
other signature guarantor acceptable to the Trustee).

                                       A1-7
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Note purchased by the Company pursuant to
Section 4.10 or 4.15 of the Indenture, check the appropriate box below:

                   [ ] Section 4.10          [ ] Section 4.15

     If you want to elect to have only part of the Note purchased by the Company
pursuant to Section 4.10 or Section 4.15 of the Indenture, state the amount you
elect to have purchased:
                          $ -------------------------
Date: --------------------

                                          Your Signature: ---------------
                                           (Sign exactly as your name appears on
                                                          the face of this Note)

                                          Tax Identification No.: ----------
Signature Guarantee*: --------------------

     * Participant in a recognized Signature Guarantee Medallion Program (or
other signature guarantor acceptable to the Trustee).

                                       A1-8
<PAGE>

             SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE*

     The following exchanges of a part of this Global Note for an interest in
another Global Note or for a Definitive Note, or exchanges of a part of another
Global Note or Definitive Note for an interest in this Global Note, have been
made:

<Table>
<Caption>
                                                                PRINCIPAL AMOUNT
                                                               AT MATURITY OF THIS
                   AMOUNT OF DECREASE    AMOUNT OF INCREASE        GLOBAL NOTE          SIGNATURE OF
                   IN PRINCIPAL AMOUNT   IN PRINCIPAL AMOUNT     FOLLOWING SUCH      AUTHORIZED OFFICER
                   AT MATURITY OF THIS   AT MATURITY OF THIS      DECREASE (OR         OF TRUSTEE OR
DATE OF EXCHANGE       GLOBAL NOTE           GLOBAL NOTE            INCREASE)            CUSTODIAN
----------------   -------------------   -------------------   -------------------   ------------------
<S>                <C>                   <C>                   <C>                   <C>
</Table>

 * This schedule should be included only if the Note is issued in global form.
                                       A1-9
<PAGE>

                                                                      EXHIBIT A2

                  [Face of Regulation S Temporary Global Note]
--------------------------------------------------------------------------------

     THIS NOTE WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT UNDER SECTIONS 1272, 1273
AND 1275 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. YOU MAY CONTACT THE
CHIEF FINANCIAL OFFICER OF HAIGHTS CROSS COMMUNICATIONS, INC., AT 10 NEW KING
STREET, SUITE 102, WHITE PLAINS, NEW YORK 10604, (914) 289-9420, WHO WILL
PROVIDE YOU WITH ANY REQUIRED INFORMATION REGARDING THE ORIGINAL ISSUE DISCOUNT.

                                                                      CUSIP/CINS
                                                  ------------------------------

                     12 1/2% Senior Discount Notes due 2011

No. ---------------                                            $ ---------------

                       HAIGHTS CROSS COMMUNICATIONS, INC.

promises to pay to CEDE & CO. or registered assigns,

the principal sum of DOLLARS

on August 15, 2011.

Interest Payment Dates: February 1 and August 1, commencing August 1, 2009

Record Dates: January 15 and July 15

Dated: --------------- , 200--

                                          HAIGHTS CROSS COMMUNICATIONS, INC.

                                          By:
                                            ------------------------------------

                                            Name:
                                            Title:

This is one of the Notes referred to
in the within-mentioned Indenture:

WELLS FARGO BANK MINNESOTA, N.A.
as Trustee

By:
    ----------------------------------
           Authorized Signatory
--------------------------------------------------------------------------------
                                       A2-1
<PAGE>

                  [Back of Regulation S Temporary Global Note]
                     12 1/2% Senior Discount Notes due 2011

     THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL NOTE, AND THE
CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR CERTIFICATED NOTES, ARE AS
SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN). NEITHER THE HOLDER NOR THE
BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL NOTE SHALL BE ENTITLED
TO RECEIVE PAYMENT OF INTEREST HEREON.

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

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

     THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN
A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND THE SECURITY
EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE
ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER
MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT. THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE
BENEFIT OF THE ISSUER THAT (A) SUCH SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED ONLY (1) (a) IN THE UNITED STATES TO A PERSON WHO THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, (b) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE
WITH RULE 904 UNDER THE SECURITIES ACT, (c) IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (d) TO AN INSTITUTIONAL
"ACCREDITED INVESTOR" (AS DEFINED IN RULE 501 (a) (1), (2), (3) OR (7) OF THE
SECURITIES ACT (AN "INSTITUTIONAL ACCREDITED INVESTOR")) THAT, PRIOR TO SUCH
TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
                                       A2-2
<PAGE>

REPRESENTATIONS AND AGREEMENTS (THE FORM OF WHICH CAN BE OBTAINED FROM THE
TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT AT
MATURITY OF NOTES LESS THAN $250,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE
COMPANY THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT OR (e) IN
ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF THE COMPANY SO
REQUESTS), (2) TO THE COMPANY OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B)
THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER
FROM IT OF THE SECURITY EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN
(A) ABOVE.

     Capitalized terms used herein have the meanings assigned to them in the
Indenture referred to below unless otherwise indicated.

          (1) Interest.  No interest will accrue on this Note prior to February
     1, 2009. Instead, the Accreted Value of this Note will increase
     (representing amortization of original issue discount) from the date of
     original issuance to but not including February 1, 2009 at a rate of
     12 1/2% per annum calculated on a semi-annual basis using a 360-day year
     comprised of twelve 30-day months, such that the Accreted Value on February
     1, 2009 will be equal to the full principal amount at maturity of this
     Note. Beginning on February 1, 2009, interest on this Note will accrue at a
     rate of 12 1/2% per annum and will be payable in cash semi-annually in
     arrears on February 1 and August 1 of each year, or if any such day is not
     a Business Day, on the next succeeding Business Day (each, an "Interest
     Payment Date"), and Haights Cross Communications, Inc., a Delaware
     corporation (the "Company"), promises to so pay cash interest on the
     principal amount of this Note at 12 1/2% per annum from February 1, 2009
     until maturity. In addition, the Company shall pay the Liquidated Damages,
     if any, payable pursuant to Section 5 of the Registration Rights Agreement
     referred to below. Interest on this Note will accrue from the most recent
     date to which interest has been paid or, if no interest has been paid, from
     February 1, 2009; provided that if there is no existing Default in the
     payment of interest, and if this Note is authenticated between a record
     date referred to on the face hereof and the next succeeding Interest
     Payment Date, interest shall accrue from such next succeeding Interest
     Payment Date; provided, further, that the first Interest Payment Date shall
     be August 1, 2009. The Company will pay interest (including post-petition
     interest in any proceeding under any Bankruptcy Law) on overdue principal
     and premium, if any, from time to time on demand at a rate that is 1% per
     annum in excess of the rate then in effect; it will pay interest (including
     post-petition interest in any proceeding under any Bankruptcy Law) on
     overdue installments of interest and Liquidated Damages, if any, (without
     regard to any applicable grace periods) from time to time on demand at the
     same rate to the extent lawful. Interest will be computed on the basis of a
     360-day year of twelve 30-day months.

          (2) Method of Payment.  The Company will pay interest on the Notes
     (except defaulted interest) and Liquidated Damages, if any, to the Persons
     who are registered Holders of Notes at the close of business on the January
     15 or July 15 next preceding the Interest Payment Date, even if such Notes
     are canceled after such record date and on or before such Interest Payment
     Date, except as provided in Section 2.12 of the Indenture with respect to
     defaulted interest. The Notes will be payable as to principal, premium,
     Liquidated Damages, if any, and interest at the office or agency of the
     Company maintained for such purpose within or without the City and State of
     New York, or, at the option of the Company, payment of interest and
     Liquidated Damages, if any, may be made by check mailed to the Holders at
     their addresses set forth in the register of Holders; provided that payment
     by wire transfer of immediately available funds will be required with
     respect to the principal of and interest, premium and Liquidated Damages,
     if any, on, all Global Notes and all other Notes the Holders of which will
     have provided wire transfer instructions to the Company or the Paying
     Agent. Such payment will be in such coin or currency

                                       A2-3
<PAGE>

     of the United States of America as at the time of payment is legal tender
     for payment of public and private debts.

          (3) Paying Agent and Registrar.  Initially, Wells Fargo Bank
     Minnesota, N.A., the Trustee under the Indenture, will act as Paying Agent
     and Registrar. The Company may change any Paying Agent or Registrar without
     notice to any Holder. The Company or any of its Subsidiaries may act in any
     such capacity.

          (4) Indenture.  The Company issued the Notes under an Indenture dated
     as of February 2, 2004 (the "Indenture") between the Company and the
     Trustee. The terms of the Notes include those stated in the Indenture and
     those made part of the Indenture by reference to the Trust Indenture Act of
     1939 (15 U.S. Code sec.sec. 77aaa-77bbbb) as in effect on the date on which
     the Indenture is qualified thereunder. The Notes are subject to all such
     terms, and Holders are referred to the Indenture and such Act for a
     statement of such terms. To the extent any provision of this Note conflicts
     with the express provisions of the Indenture, the provisions of the
     Indenture shall govern and be controlling. The Notes are unsecured
     obligations of the Company.

          (5) Optional Redemption.

     (a) Except as set forth in subparagraphs (b) and (c) of this Paragraph 5,
the Company will not have the option to redeem all or part of the Notes prior to
February 15, 2008. On or after February 15, 2008, the Company will have the
option to redeem all or a part of the Notes upon not less than 10 nor more than
60 days' notice, at the redemption prices (expressed as percentages of principal
amount (or, if prior to February 1, 2009, of Accreted Value)) set forth below
plus accrued and unpaid interest and Liquidated Damages, if any, on the Notes
redeemed, to the applicable redemption date, if redeemed during the twelve-
month period beginning on February 15 of the years indicated below:

<Table>
<Caption>
YEAR                                                           PERCENTAGE
----                                                           ----------
<S>                                                            <C>
2008........................................................    106.250%
2009........................................................    103.125%
2010 and thereafter.........................................    100.000%
</Table>

     Unless the Company defaults in the payment of the redemption price,
Accreted Value will cease to increase and interest will cease to accrue, as the
case may be, on the Notes or portions thereof called for redemption on the
applicable redemption date.

     (b) Prior to February 15, 2008, upon the occurrence of a Change of Control,
the Company may redeem the Notes, in whole and not in part, upon not less than
10 nor more than 60 days' prior notice, at a redemption price of 112.500% of the
Accreted Value thereof, plus accrued and unpaid Liquidated Damages, if any, to
the redemption date.

     (c) Notwithstanding the provisions of subparagraph (a) of this Paragraph 5,
at any time prior to February 15, 2007, the Company may on any one or more
occasions redeem up to 35% of the aggregate principal amount at maturity of
Notes at a redemption price of 112.500% of the Accreted Value thereof, plus
accrued and unpaid Liquidated Damages, if any, to the redemption date with the
net cash proceeds of one or more Equity Offerings; provided that at least 65% in
aggregate principal amount at maturity of the Notes originally issued under the
Indenture (excluding Notes held by the Company and its Subsidiaries) remains
outstanding immediately after the occurrence of such redemption and that such
redemption occurs within 90 days of the date of the closing of such Equity
Offering.

          (6) Mandatory Redemption.  The Company will not be required to make
     mandatory redemption or sinking fund payments with respect to the Notes.

          (7) Repurchase at the Option of the Holder.

     (a) If there is a Change of Control, the Company will be required to make
an offer (a "Change of Control Offer") to repurchase all or any part (equal to
$1,000 in principal amount at maturity or an integral multiple thereof) of each
Holder's Notes at a purchase price equal to 101% of the Accreted Value of Notes

                                       A2-4
<PAGE>

repurchased plus accrued and unpaid Liquidated Damages, if any, on the Notes
repurchased, to the date of purchase (if prior to February 1, 2009) or 101% of
the aggregate principal amount of Notes repurchased plus accrued and unpaid
interest and Liquidated Damages, if any, on the Notes repurchased, to the date
of purchase (if on or after February 1, 2009) (in either case, the "Change of
Control Payment"). Within 30 days following any Change of Control, the Company
will mail a notice to each Holder setting forth the procedures governing the
Change of Control Offer as required by the Indenture.

     (b) If the Company or a Restricted Subsidiary of the Company consummates
any Asset Sales, within five days of each date on which the aggregate amount of
Excess Proceeds exceeds $10.0 million, the Company will commence an offer to all
Holders of Notes and all holders of other Indebtedness that is pari passu with
the Notes containing provisions similar to those set forth in the Indenture with
respect to offers to purchase or redeem with the proceeds of sales of assets (an
"Asset Sale Offer") pursuant to Section 3.09 of the Indenture to purchase the
maximum aggregate Accreted Value or principal amount, as applicable, of Notes
(including any Additional Notes) and other pari passu Indebtedness that may be
purchased out of the Excess Proceeds at an offer price in cash in an amount
equal to 100% of the Accreted Value of the Notes on the date of purchase plus
accrued and unpaid Liquidated Damages thereon, if any (if prior to February 1,
2009), or 100% of the principal amount of Notes plus accrued and unpaid interest
and Liquidated Damages, if any, to the date of purchase (if on or after February
1, 2009), in each case which price will be payable in cash, in accordance with
the procedures set forth in the Indenture. To the extent that the aggregate
amount of Notes (including any Additional Notes) and other pari passu
Indebtedness tendered pursuant to an Asset Sale Offer is less than the Excess
Proceeds, the Company (or such Restricted Subsidiary) may use such deficiency
for any purpose not otherwise prohibited by the Indenture. If the aggregate
Accreted Value or principal amount, as applicable, of Notes and other pari passu
Indebtedness surrendered by holders thereof exceeds the amount of Excess
Proceeds, the Trustee shall select the Notes and other pari passu Indebtedness
to be purchased on a pro rata basis. Holders of Notes that are the subject of an
offer to purchase will receive an Asset Sale Offer from the Company prior to any
related purchase date and may elect to have such Notes purchased by completing
the form entitled "Option of Holder to Elect Purchase" attached to the Notes.

          (8) Notice of Redemption.  Notice of redemption will be mailed at
     least 10 days but not more than 60 days before the redemption date to each
     Holder whose Notes are to be redeemed at its registered address, except
     that redemption notices may be mailed more than 60 days prior to a
     redemption date if the notice is issued in connection with a defeasance of
     the Notes or a satisfaction or discharge of the Indenture. Notes in
     denominations larger than $1,000 in principal amount at maturity may be
     redeemed in part but only in whole multiples of $1,000, unless all of the
     Notes held by a Holder are to be redeemed. On and after the redemption date
     Accreted Value ceases to increase and interest ceases to accrue, as the
     case may be, on Notes or portions thereof called for redemption.

          (9) Denominations, Transfer, Exchange.  The Notes are in registered
     form without coupons in denominations of $1,000 in principal amount at
     maturity and integral multiples of $1,000. The transfer of Notes may be
     registered and Notes may be exchanged as provided in the Indenture. The
     Registrar and the Trustee may require a Holder, among other things, to
     furnish appropriate endorsements and transfer documents and the Company may
     require a Holder to pay any taxes and fees required by law or permitted by
     the Indenture. The Company need not exchange or register the transfer of
     any Note or portion of a Note selected for redemption, except for the
     unredeemed portion of any Note being redeemed in part. Also, the Company
     need not exchange or register the transfer of any Notes for a period of 15
     days before a selection of Notes to be redeemed or during the period
     between a record date and the corresponding Interest Payment Date.

     This Regulation S Temporary Global Note is exchangeable in whole or in part
for one or more Global Notes only (i) on or after the termination of the 40-day
restricted period (as defined in Regulation S) and (ii) upon presentation of
certificates (accompanied by an Opinion of Counsel, if applicable) required by
Article 2 of the Indenture. Upon exchange of this Regulation S Temporary Global
Note for one or more Global Notes, the Trustee shall cancel this Regulation S
Temporary Global Note.

                                       A2-5
<PAGE>

          (10) Persons Deemed Owners.  The registered Holder of a Note may be
     treated as its owner for all purposes.

          (11) Amendment, Supplement and Waiver.  Subject to certain exceptions,
     the Indenture or the Notes may be amended or supplemented with the consent
     of the Holders of at least a majority in aggregate principal amount at
     maturity of the then outstanding Notes (including any Additional Notes)
     voting as a single class, and any existing Default or Event of Default or
     compliance with any provision of the Indenture or the Notes may be waived
     with the consent of the Holders of a majority in aggregate principal amount
     at maturity of the then outstanding Notes and Additional Notes, if any,
     voting as a single class. Without the consent of any Holder of a Note, the
     Indenture or the Notes may be amended or supplemented to cure any
     ambiguity, defect or inconsistency, to provide for uncertificated Notes in
     addition to or in place of certificated Notes, to provide for the
     assumption of the Company's obligations to Holders of Notes in case of a
     merger or consolidation or sale of all or substantially all of the
     Company's assets, to make any change that would provide any additional
     rights or benefits to the Holders of Notes or that does not adversely
     affect the legal rights under the Indenture of any such Holder, to comply
     with the requirements of the SEC in order to effect or maintain the
     qualification of the Indenture under the TIA or to conform the text of the
     Indenture or the Notes to any provision of the "Description of Notes"
     section of the Company's Offering Memorandum dated January 27, 2004
     relating to the initial offering of the Notes, to the extent that such
     provision in that "Description of Notes" was intended to be a verbatim
     recitation of a provision of the Indenture or the Notes.

          (12) Defaults and Remedies.  Events of Default include: (i) the
     Company defaults in the payment when due of interest or Liquidated Damages
     on the Notes, and such default continues for a period of 30 days; (ii) the
     Company defaults in payment when due at maturity, upon redemption or
     otherwise of principal of, or premium, if any, on the Notes; (iii) the
     Company or any of its Restricted Subsidiaries fails to comply with Sections
     4.07, 4.09, 4.10, 4.15 or 5.01 of the Indenture and such failure continues
     for a period of 30 days after notice to the Company by the Trustee or the
     Holders of at least 25% in aggregate principal amount at maturity of the
     Notes then outstanding voting as a single class; (iv) the Company or any of
     its Restricted Subsidiaries fails to observe or perform any other covenant,
     representation, warranty or other agreement in the Indenture or the Notes,
     and such failure continues for 60 days after notice to the Company by the
     Trustee or the Holders of at least 25% in aggregate principal amount at
     maturity of the Notes then outstanding voting as a single class; (v) a
     default occurs under any mortgage, indenture or instrument under which
     there may be issued or by which there may be secured or evidenced any
     Indebtedness for money borrowed by the Company or any of its Restricted
     Subsidiaries (or the payment of which is guaranteed by the Company or any
     of its Subsidiaries) whether such Indebtedness or guarantee now exists, or
     is created after the date of the Indenture, if that default: (a) is caused
     by a failure to pay principal of, or interest or premium, if any, on such
     Indebtedness prior to the expiration of the grace period provided in such
     Indebtedness on the date of such default (a "Payment Default"); or (b)
     results in the acceleration of such Indebtedness prior to its express
     maturity, and, in each case, the principal amount of any such Indebtedness,
     together with the principal amount of any other such Indebtedness under
     which there has been a Payment Default or the maturity of which has been so
     accelerated, aggregates $20.0 million or more; (vi) failure by, the Company
     or any of its Restricted Subsidiaries to pay final judgments aggregating in
     excess of $20.0 million (other than such judgments that are fully covered
     by insurance, subject to ordinary deductibles), which judgments are not
     paid, discharged or stayed for a period of 60 days after such judgment
     becomes final; (vii) certain events of bankruptcy or insolvency with
     respect to the Company or any of its Restricted Subsidiaries that is a
     Significant Subsidiary or any group of Restricted Subsidiaries that, taken
     together, would constitute a Significant Subsidiary. If any Event of
     Default occurs and is continuing, the Trustee or the Holders of at least
     25% in aggregate principal amount at maturity of the then outstanding Notes
     may declare all the Notes to be due and payable immediately.
     Notwithstanding the foregoing, in the case of an Event of Default arising
     from certain events of bankruptcy or insolvency described in subclause
     (viii) above, all outstanding Notes will become due and payable without
     further action or notice. Holders may not enforce the Indenture or the
     Notes except as provided in the Indenture. Subject to certain limitations,
     Holders of a majority in aggregate principal amount at maturity of the then
     outstanding Notes may direct the
                                       A2-6
<PAGE>

     Trustee in its exercise of any trust or power. The Trustee may withhold
     from Holders of the Notes notice of any continuing Default or Event of
     Default (except a Default or Event of Default relating to the payment of
     principal or interest) if it determines that withholding notice is in their
     interest. The Holders of a majority in aggregate principal amount at
     maturity of the Notes then outstanding by notice to the Trustee, may on
     behalf of all Holders, waive any existing Default or Event of Default and
     its consequences under the Indenture except a continuing Default or Event
     of Default in the payment of interest or premium or Liquidated Damages on,
     or the principal of, the Notes. The Company is required to deliver to the
     Trustee annually a statement regarding compliance with the Indenture, and
     the Company is required upon becoming aware of any Default or Event of
     Default, to deliver to the Trustee a statement specifying such Default or
     Event of Default.

          (13) Trustee Dealings with Company.  The Trustee, in its individual or
     any other capacity, may make loans to, accept deposits from, and perform
     services for the Company or its Affiliates, and may otherwise deal with the
     Company or its Affiliates, as if it were not the Trustee.

          (14) No Recourse Against Others.  A director, officer, employee,
     incorporator or stockholder, of the Company, as such, will not have any
     liability for any obligations of the Company under the Notes or the
     Indenture or for any claim based on, in respect of, or by reason of, such
     obligations or their creation. Each Holder by accepting a Note waives and
     releases all such liability. The waiver and release are part of the
     consideration for the issuance of the Notes.

          (15) Authentication.  This Note will not be valid until authenticated
     by the manual signature of the Trustee or an authenticating agent.

          (16) Abbreviations.  Customary abbreviations may be used in the name
     of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT
     (= tenants by the entireties), JT TEN (= joint tenants with right of
     survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A
     (= Uniform Gifts to Minors Act).

          (17) Additional Rights of Holders.  In addition to the rights provided
     to Holders of Notes under the Indenture, Holders of this Regulation S
     Temporary Global Note will have all the rights set forth in the
     Registration Rights Agreement dated as of February 2, 2004, between the
     Company and the other parties named on the signature pages thereof or, in
     the case of Additional Notes, Holders thereof will have the rights set
     forth in one or more registration rights agreements, if any, between the
     Company and the other parties thereto, relating to rights given by the
     Company to the purchasers of any Additional Notes (collectively, the
     "Registration Rights Agreement").

          (18) CUSIP Numbers.  Pursuant to a recommendation promulgated by the
     Committee on Uniform Security Identification Procedures, the Company has
     caused CUSIP numbers to be printed on the Notes and the Trustee may use
     CUSIP numbers in notices of redemption as a convenience to Holders. No
     representation is made as to the accuracy of such numbers either as printed
     on the Notes or as contained in any notice of redemption and reliance may
     be placed only on the other identification numbers placed thereon.

     The Company will furnish to any Holder upon written request and without
charge a copy of the Indenture and/or the Registration Rights Agreement.
Requests may be made to:

Haights Cross Communications, Inc.
10 New King Street, Suite 102
White Plains, New York 10604
Attention: Chief Financial Officer

                                       A2-7
<PAGE>

                                ASSIGNMENT FORM

     To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to:----------------------------
                                          (Insert assignee's legal name)

--------------------------------------------------------------------------------
                 (Insert assignee's soc. sec. or tax I.D. no.)

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
             (Print or type assignee's name, address and zip code)

and irrevocably appoint -------------------------
to transfer this Note on the books of the Company. The agent may substitute
another to act for him.
Date: -------------------------

                                          Your Signature:
                                          -----------------------------------
                                           (Sign exactly as your name appears on
                                                          the face of this Note)

Signature Guarantee*: -------------------------

     * Participant in a recognized Signature Guarantee Medallion Program (or
other signature guarantor acceptable to the Trustee).

                                       A2-8
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Note purchased by the Company pursuant to
Section 4.10 or 4.15 of the Indenture, check the appropriate box below:

                   [ ] Section 4.10          [ ] Section 4.15

     If you want to elect to have only part of the Note purchased by the Company
pursuant to Section 4.10 or Section 4.15 of the Indenture, state the amount you
elect to have purchased:
                          $ -------------------------
Date: --------------------

                                          Your Signature: ---------------
                                           (Sign exactly as your name appears on
                                                          the face of this Note)

                                          Tax Identification No.: ----------
Signature Guarantee*: --------------------

     * Participant in a recognized Signature Guarantee Medallion Program (or
other signature guarantor acceptable to the Trustee).

                                       A2-9
<PAGE>

          SCHEDULE OF EXCHANGES OF REGULATION S TEMPORARY GLOBAL NOTE

     The following exchanges of a part of this Regulation S Temporary Global
Note for an interest in another Global Note, or exchanges of a part of another
other Restricted Global Note for an interest in this Regulation S Temporary
Global Note, have been made:

<Table>
<Caption>
                                                                    PRINCIPAL AMOUNT
                                                                   AT MATURITY OF THIS
                       AMOUNT OF DECREASE    AMOUNT OF INCREASE        GLOBAL NOTE          SIGNATURE OF
                       IN PRINCIPAL AMOUNT   IN PRINCIPAL AMOUNT     FOLLOWING SUCH      AUTHORIZED OFFICER
                       AT MATURITY OF THIS   AT MATURITY OF THIS      DECREASE (OR         OF TRUSTEE OR
DATE OF EXCHANGE           GLOBAL NOTE           GLOBAL NOTE            INCREASE)            CUSTODIAN
----------------       -------------------   -------------------   -------------------   ------------------
<S>                    <C>                   <C>                   <C>                   <C>
</Table>

                                      A2-10
<PAGE>

                                                                       EXHIBIT B

                        FORM OF CERTIFICATE OF TRANSFER

Haights Cross Communications, Inc.
10 New King Street, Suite 102
White Plains, New York 10604

Wells Fargo Bank Minnesota, N.A.
213 Court Street, Suite 703
Middletown, Connecticut 06457

     Re: 12 1/2% SENIOR DISCOUNT NOTES DUE 2011

     Reference is hereby made to the Indenture, dated as of February 2, 2004
(the "Indenture"), between Haights Cross Communications, Inc., as issuer (the
"Company"), and Wells Fargo Bank Minnesota N.A., as trustee. Capitalized terms
used but not defined herein shall have the meanings given to them in the
Indenture.

     -----------------------------------, (the "Transferor") owns and proposes
to transfer the Note[s] or interest in such Note[s] specified in Annex A hereto,
in the principal amount at maturity of $     in such Note[s] or interests (the
"Transfer"), to
------------------------------ (the "Transferee"), as further specified in Annex
A hereto. In connection with the Transfer, the Transferor hereby certifies that:

                             [CHECK ALL THAT APPLY]

     1. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN
THE 144A GLOBAL NOTE OR A RESTRICTED DEFINITIVE NOTE PURSUANT TO RULE 144A.  The
Transfer is being effected pursuant to and in accordance with Rule 144A under
the Securities Act of 1933, as amended (the "Securities Act"), and, accordingly,
the Transferor hereby further certifies that the beneficial interest or
Definitive Note is being transferred to a Person that the Transferor reasonably
believes is purchasing the beneficial interest or Definitive Note for its own
account, or for one or more accounts with respect to which such Person exercises
sole investment discretion, and such Person and each such account is a
"qualified institutional buyer" within the meaning of Rule 144A, in a
transaction meeting the requirements of Rule 144A and such Transfer is in
compliance with any applicable blue sky securities laws of any state of the
United States. Upon consummation of the proposed Transfer in accordance with the
terms of the Indenture, the transferred beneficial interest or Definitive Note
will be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the 144A Global Note and/or the Restricted
Definitive Note and in the Indenture and the Securities Act.

     2. [ ] [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST
IN THE REGULATION S TEMPORARY GLOBAL NOTE, THE REGULATION S PERMANENT GLOBAL
NOTE OR A RESTRICTED DEFINITIVE NOTE PURSUANT TO REGULATION S.  The Transfer is
being effected pursuant to and in accordance with Rule 903 or Rule 904 under the
Securities Act and, accordingly, the Transferor hereby further certifies that
(i) the Transfer is not being made to a Person in the United States and (x) at
the time the buy order was originated, the Transferee was outside the United
States or such Transferor and any Person acting on its behalf reasonably
believed and believes that the Transferee was outside the United States or (y)
the transaction was executed in, on or through the facilities of a designated
offshore securities market and neither such Transferor nor any Person acting on
its behalf knows that the transaction was prearranged with a buyer in the United
States, (ii) no directed selling efforts have been made in contravention of the
requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities
Act , (iii) the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act and (iv) if the proposed
transfer is being made prior to the expiration of the Restricted Period, the
transfer is not being made to a U.S. Person or for the account or benefit of a
U.S. Person (other than the Initial Purchaser). Upon consummation of the
proposed transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will be subject to the restrictions on
Transfer enumerated in the Private Placement Legend printed on the Regulation S
Permanent Global Note, the Regulation S Temporary Global Note and/or the
Restricted Definitive Note and in the Indenture and the Securities Act.

                                       B-1
<PAGE>

     3. [ ] CHECK AND COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL
INTEREST IN THE IAI GLOBAL NOTE OR A DEFINITIVE NOTE PURSUANT TO ANY PROVISION
OF THE SECURITIES ACT OTHER THAN RULE 144A OR REGULATION S. The Transfer is
being effected in compliance with the transfer restrictions applicable to
beneficial interests in Restricted Global Notes and Restricted Definitive Notes
and pursuant to and in accordance with the Securities Act and any applicable
blue sky securities laws of any state of the United States, and accordingly the
Transferor hereby further certifies that (check one):

          (a) [ ] such Transfer is being effected pursuant to and in accordance
     with Rule 144 under the Securities Act;

                                       or

          (b) [ ] such Transfer is being effected to the Company or a subsidiary
     thereof;

                                       or

          (c) [ ] such Transfer is being effected pursuant to an effective
     registration statement under the Securities Act and in compliance with the
     prospectus delivery requirements of the Securities Act;

                                       or

          (d) [ ] such Transfer is being effected to an Institutional Accredited
     Investor and pursuant to an exemption from the registration requirements of
     the Securities Act other than Rule 144A, Rule 144, Rule 903 or Rule 904,
     and the Transferor hereby further certifies that it has not engaged in any
     general solicitation within the meaning of Regulation D under the
     Securities Act and the Transfer complies with the transfer restrictions
     applicable to beneficial interests in a Restricted Global Note or
     Restricted Definitive Notes and the requirements of the exemption claimed,
     which certification is supported by (1) a certificate executed by the
     Transferee in the form of Exhibit D to the Indenture and (2) if such
     Transfer is in respect of a principal amount at maturity of Notes at the
     time of transfer of less than $250,000, an Opinion of Counsel provided by
     the Transferor or the Transferee (a copy of which the Transferor has
     attached to this certification), to the effect that such Transfer is in
     compliance with the Securities Act. Upon consummation of the proposed
     transfer in accordance with the terms of the Indenture, the transferred
     beneficial interest or Definitive Note will be subject to the restrictions
     on transfer enumerated in the Private Placement Legend printed on the IAI
     Global Note and/or the Restricted Definitive Notes and in the Indenture and
     the Securities Act.

     4. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN
AN UNRESTRICTED GLOBAL NOTE OR OF AN UNRESTRICTED DEFINITIVE NOTE.

     (a) [ ] CHECK IF TRANSFER IS PURSUANT TO RULE 144.  (i) The Transfer is
being effected pursuant to and in accordance with Rule 144 under the Securities
Act and in compliance with the transfer restrictions contained in the Indenture
and any applicable blue sky securities laws of any state of the United States
and (ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act. Upon consummation of the proposed Transfer in accordance with
the terms of the Indenture, the transferred beneficial interest or Definitive
Note will no longer be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the Restricted Global Notes, on Restricted
Definitive Notes and in the Indenture.

     (b) [ ] CHECK IF TRANSFER IS PURSUANT TO REGULATION S.  (i) The Transfer is
being effected pursuant to and in accordance with Rule 903 or Rule 904 under the
Securities Act and in compliance with the transfer restrictions contained in the
Indenture and any applicable blue sky securities laws of any state of the United
States and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act. Upon consummation of the proposed Transfer in accordance
with the terms of the Indenture, the transferred beneficial interest or
Definitive Note will no longer be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global
Notes, on Restricted Definitive Notes and in the Indenture.

                                       B-2
<PAGE>

     (c) [ ] CHECK IF TRANSFER IS PURSUANT TO OTHER EXEMPTION.  (i) The Transfer
is being effected pursuant to and in compliance with an exemption from the
registration requirements of the Securities Act other than Rule 144, Rule 903 or
Rule 904 and in compliance with the transfer restrictions contained in the
Indenture and any applicable blue sky securities laws of any State of the United
States and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act. Upon consummation of the proposed Transfer in accordance
with the terms of the Indenture, the transferred beneficial interest or
Definitive Note will not be subject to the restrictions on transfer enumerated
in the Private Placement Legend printed on the Restricted Global Notes or
Restricted Definitive Notes and in the Indenture.

     This certificate and the statements contained herein are made for your
benefit and the benefit of the Company.
                                        ----------------------------------------
                                               [Insert Name of Transferor]

                                          By:
                                            ------------------------------------
                                            Name:
                                            Title:
Dated: -------------------------

                                       B-3
<PAGE>

                       ANNEX A TO CERTIFICATE OF TRANSFER

     1. The Transferor owns and proposes to transfer the following:
                           [CHECK ONE OF (a) OR (b)]

          (a) [ ] beneficial interest in the:

             (i) [ ] 144A Global Note (CUSIP
           -----------------------------------------), or

             (ii) [ ] Regulation S Global Note (CUSIP
           -----------------------------------------), or

             (iii) [ ] IAI Global Note (CUSIP
           -----------------------------------------); or

          (b) [ ] a Restricted Definitive Note.

     2. After the Transfer the Transferee will hold:

                                  [CHECK ONE]

          (a) [ ] a beneficial interest in the:

             (i) [ ] 144A Global Note (CUSIP
           -----------------------------------------), or

             (ii) [ ] Regulation S Global Note (CUSIP
           -----------------------------------------), or

             (iii) [ ] IAI Global Note (CUSIP
           -----------------------------------------); or

             (iv) [ ] Unrestricted Global Note (CUSIP
           -----------------------------------------); or

          (b) [ ] a Restricted Definitive Note; or

          (c) [ ] an Unrestricted Definitive Note,

          in accordance with the terms of the Indenture.

                                       B-4
<PAGE>

                                                                       EXHIBIT C

                        FORM OF CERTIFICATE OF EXCHANGE

Haights Cross Communications, Inc.
10 New King Street, Suite 102
White Plains, New York 10604

Wells Fargo Bank Minnesota, N.A.
213 Court Street, Suite 703
Middletown, Connecticut 06457

     Re: 12 1/2% SENIOR DISCOUNT NOTES DUE 2011

                                     (CUSIP
                        ------------------------------)

     Reference is hereby made to the Indenture, dated as of February 2, 2004
(the "Indenture"), between Haights Cross Communications, Inc., as issuer (the
"Company"), and Wells Fargo Bank N.A., as trustee. Capitalized terms used but
not defined herein shall have the meanings given to them in the Indenture.

     -----------------------------------, (the "Owner") owns and proposes to
exchange the Note[s] or interest in such Note[s] specified herein, in the
principal amount at maturity of $
------------------------------ in such Note[s] or interests (the "Exchange"). In
connection with the Exchange, the Owner hereby certifies that:

     1. EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN A
RESTRICTED GLOBAL NOTE FOR UNRESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS
IN AN UNRESTRICTED GLOBAL NOTE

     (a) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED
GLOBAL NOTE TO BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE.  In
connection with the Exchange of the Owner's beneficial interest in a Restricted
Global Note for a beneficial interest in an Unrestricted Global Note in an equal
principal amount at maturity, the Owner hereby certifies (i) the beneficial
interest is being acquired for the Owner's own account without transfer, (ii)
such Exchange has been effected in compliance with the transfer restrictions
applicable to the Global Notes and pursuant to and in accordance with the
Securities Act of 1933, as amended (the "Securities Act"), (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the beneficial interest in an Unrestricted Global Note is being
acquired in compliance with any applicable blue sky securities laws of any state
of the United States.

     (b) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED
GLOBAL NOTE TO UNRESTRICTED DEFINITIVE NOTE.  In connection with the Exchange of
the Owner's beneficial interest in a Restricted Global Note for an Unrestricted
Definitive Note, the Owner hereby certifies (i) the Definitive Note is being
acquired for the Owner's own account without transfer, (ii) such Exchange has
been effected in compliance with the transfer restrictions applicable to the
Restricted Global Notes and pursuant to and in accordance with the Securities
Act, (iii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act and (iv) the Definitive Note is being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

     (c) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO BENEFICIAL
INTEREST IN AN UNRESTRICTED GLOBAL NOTE.  In connection with the Owner's
Exchange of a Restricted Definitive Note for a beneficial interest in an
Unrestricted Global Note, the Owner hereby certifies (i) the beneficial interest
is being acquired for the Owner's own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to Restricted Definitive Notes and pursuant to and in accordance with
the Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the beneficial interest is being
acquired in compliance with any applicable blue sky securities laws of any state
of the United States.

     (d) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO
UNRESTRICTED DEFINITIVE NOTE.  In connection with the Owner's Exchange of a
Restricted Definitive Note for an Unrestricted Definitive Note,
                                       C-1
<PAGE>

the Owner hereby certifies (i) the Unrestricted Definitive Note is being
acquired for the Owner's own account without transfer, (ii) such Exchange has
been effected in compliance with the transfer restrictions applicable to
Restricted Definitive Notes and pursuant to and in accordance with the
Securities Act, (iii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the Unrestricted Definitive Note is
being acquired in compliance with any applicable blue sky securities laws of any
state of the United States.

     2. EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN
RESTRICTED GLOBAL NOTES FOR RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS
IN RESTRICTED GLOBAL NOTES

     (a) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED
GLOBAL NOTE TO RESTRICTED DEFINITIVE NOTE.  In connection with the Exchange of
the Owner's beneficial interest in a Restricted Global Note for a Restricted
Definitive Note with an equal principal amount at maturity, the Owner hereby
certifies that the Restricted Definitive Note is being acquired for the Owner's
own account without transfer. Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the Restricted Definitive Note
issued will continue to be subject to the restrictions on transfer enumerated in
the Private Placement Legend printed on the Restricted Definitive Note and in
the Indenture and the Securities Act.

     (b) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO BENEFICIAL
INTEREST IN A RESTRICTED GLOBAL NOTE.  In connection with the Exchange of the
Owner's Restricted Definitive Note for a beneficial interest in the [CHECK ONE]
[ ]144A Global Note, [ ]Regulation S Global Note, [ ]IAI Global Note with an
equal principal amount at maturity, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner's own account without
transfer and (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to the Restricted Global Notes and pursuant to
and in accordance with the Securities Act, and in compliance with any applicable
blue sky securities laws of any state of the United States. Upon consummation of
the proposed Exchange in accordance with the terms of the Indenture, the
beneficial interest issued will be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the relevant Restricted
Global Note and in the Indenture and the Securities Act.

     This certificate and the statements contained herein are made for your
benefit and the benefit of the Company.
                                        ----------------------------------------
                                               [Insert Name of Transferor]

                                          By:
                                            ------------------------------------
                                            Name:
                                            Title:
Dated: -------------------------

                                       C-2
<PAGE>

                                                                       EXHIBIT D

                            FORM OF CERTIFICATE FROM
                  ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

Haights Cross Communications, Inc.
10 New King Street, Suite 102
White Plains, New York 10604

Wells Fargo Bank Minnesota, N.A.
213 Court Street, Suite 703
Middletown, Connecticut 06457

     Re: 12 1/2% SENIOR DISCOUNT NOTES DUE 2011

     Reference is hereby made to the Indenture, dated as of February 2, 2004
(the "Indenture"), between Haights Cross Communications, Inc., as issuer (the
"Company"), and Wells Fargo Bank Minnesota N.A., as trustee. Capitalized terms
used but not defined herein shall have the meanings given to them in the
Indenture.

     In connection with our proposed purchase of $
     ----------------------------------- aggregate principal amount at maturity
of:

     (a) [ ] a beneficial interest in a Global Note, or

     (b) [ ] a Definitive Note,

     we confirm that:

     1. We understand that any subsequent transfer of the Notes or any interest
therein is subject to certain restrictions and conditions set forth in the
Indenture and the undersigned agrees to be bound by, and not to resell, pledge
or otherwise transfer the Notes or any interest therein except in compliance
with, such restrictions and conditions and the Securities Act of 1933, as
amended (the "Securities Act").

     2. We understand that the offer and sale of the Notes have not been
registered under the Securities Act, and that the Notes and any interest therein
may not be offered or sold except as permitted in the following sentence. We
agree, on our own behalf and on behalf of any accounts for which we are acting
as hereinafter stated, that if we should sell the Notes or any interest therein,
we will do so only (A) to the Company or any subsidiary thereof, (B) in
accordance with Rule 144A under the Securities Act to a "qualified institutional
buyer" (as defined therein), (C) to an institutional "accredited investor" (as
defined below) that, prior to such transfer, furnishes (or has furnished on its
behalf by a U.S. broker-dealer) to you and to the Company a signed letter
substantially in the form of this letter and, if such transfer is in respect of
a principal amount at maturity of Notes, at the time of transfer of less than
$250,000, an Opinion of Counsel in form reasonably acceptable to the Company to
the effect that such transfer is in compliance with the Securities Act, (D)
outside the United States in accordance with Rule 904 of Regulation S under the
Securities Act, (E) pursuant to the provisions of Rule 144(k) under the
Securities Act or (F) pursuant to an effective registration statement under the
Securities Act, and we further agree to provide to any Person purchasing the
Definitive Note or beneficial interest in a Global Note from us in a transaction
meeting the requirements of clauses (A) through (E) of this paragraph a notice
advising such purchaser that resales thereof are restricted as stated herein.

     3. We understand that, on any proposed resale of the Notes or beneficial
interest therein, we will be required to furnish to you and the Company such
certifications, legal opinions and other information as you and the Company may
reasonably require to confirm that the proposed sale complies with the foregoing
restrictions. We further understand that the Notes purchased by us will bear a
legend to the foregoing effect.

     4. We are an institutional "accredited investor" (as defined in Rule
501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and have
such knowledge and experience in financial and business

                                       D-1
<PAGE>

matters as to be capable of evaluating the merits and risks of our investment in
the Notes, and we and any accounts for which we are acting are each able to bear
the economic risk of our or its investment.

     5. We are acquiring the Notes or beneficial interest therein purchased by
us for our own account or for one or more accounts (each of which is an
institutional "accredited investor") as to each of which we exercise sole
investment discretion.

     You and the Company are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceedings or official inquiry with
respect to the matters covered hereby.
                                        ----------------------------------------
                                           [Insert Name of Accredited Investor]

                                          By:
                                            ------------------------------------
                                            Name:
                                            Title:
Dated: -------------------------

                                       D-2<PAGE>

                                                                     EXHIBIT 4.6

                                                                  EXECUTION COPY
--------------------------------------------------------------------------------

                         REGISTRATION RIGHTS AGREEMENT

                          DATED AS OF FEBRUARY 2, 2004
                                 BY AND BETWEEN

                       HAIGHTS CROSS COMMUNICATIONS, INC.

                                      AND

                            BEAR, STEARNS & CO. INC.

--------------------------------------------------------------------------------
<PAGE>

     This Registration Rights Agreement (this "AGREEMENT") is made and entered
into as of February 2, 2004, by and between Haights Cross Communications, Inc.,
a Delaware corporation (the "COMPANY") and Bear, Stearns & Co. Inc. (the
"INITIAL PURCHASER"), who has agreed to purchase the Company's 12 1/2% Senior
Discount Notes due 2011 (the "INITIAL NOTES") pursuant to the Purchase Agreement
(as defined below).

     This Agreement is made pursuant to the Purchase Agreement, dated January
27, 2004 (the "PURCHASE AGREEMENT"), by and between the Company and the Initial
Purchaser. In order to induce the Initial Purchaser to purchase the Initial
Notes, the Company has agreed to provide the registration rights set forth in
this Agreement. The execution and delivery of this Agreement is a condition to
the obligations of the Initial Purchaser set forth in Section 8 of the Purchase
Agreement. Capitalized terms used herein and not otherwise defined shall have
the meanings assigned to them in the Indenture, dated as of February 2, 2004,
between the Company and Wells Fargo Bank Minnesota, N.A., as trustee, relating
to the Initial Notes and the Exchange Notes (the "INDENTURE").

     The parties hereby agree as follows:

     SECTION 1.  DEFINITIONS

     As used in this Agreement, the following capitalized terms shall have the
following meanings:

     ACT:  The Securities Act of 1933, as amended.

     AFFILIATE:  As defined in Rule 144 of the Act.

     BROKER-DEALER:  Any broker or dealer registered under the Exchange Act.

     CLOSING DATE:  The date hereof.

     COMMISSION:  The Securities and Exchange Commission.

     CONSUMMATE:  An Exchange Offer shall be deemed "Consummated" for purposes
of this Agreement upon the occurrence of (a) the filing and effectiveness under
the Act of the Exchange Offer Registration Statement relating to the Exchange
Notes to be issued in the Exchange Offer, (b) the maintenance of the continuous
effectiveness of such Exchange Offer Registration Statement and the keeping of
the Exchange Offer open for a period not less than the period required pursuant
to Section 3(b) hereof and (c) the delivery by the Company to the Registrar
under the Indenture of Exchange Notes in the same aggregate principal amount at
maturity as the aggregate principal amount at maturity of Initial Notes tendered
by Holders thereof pursuant to the Exchange Offer.

     CONSUMMATION DEADLINE:  As defined in Section 3(b) hereof.

     EFFECTIVENESS DEADLINE:  As defined in Sections 3(a) and 4(a) hereof.

     EXCHANGE ACT:  The Securities Exchange Act of 1934, as amended.

     EXCHANGE NOTES:  The Company's 12 1/2% Senior Discount Notes due 2011 to be
issued pursuant to the Indenture: (i) in the Exchange Offer or (ii) as
contemplated by Section 4 hereof.

     EXCHANGE OFFER:  The exchange and issuance by the Company of a principal
amount at maturity of Exchange Notes (which shall be registered pursuant to the
Exchange Offer Registration Statement) equal to the outstanding principal amount
at maturity of Initial Notes that are tendered by such Holders in connection
with such exchange and issuance.

     EXCHANGE OFFER REGISTRATION STATEMENT:  The Registration Statement relating
to the Exchange Offer, including the related Prospectus.

     FILING DEADLINE:  As defined in Sections 3(a) and 4(a) hereof.

     HOLDERS:  As defined in Section 2 hereof.

     PROSPECTUS:  The prospectus included in a Registration Statement at the
time such Registration Statement is declared effective, as amended or
supplemented by any prospectus supplement and by all other
<PAGE>

amendments thereto, including post-effective amendments, and all material
incorporated by reference into such Prospectus.

     RECOMMENCEMENT DATE:  As defined in Section 6(d) hereof.

     REGISTRATION DEFAULT:  As defined in Section 5 hereof.

     REGISTRATION STATEMENT:  Any registration statement of the Company relating
to (a) an offering of Exchange Notes pursuant to an Exchange Offer or (b) the
registration for resale of Transfer Restricted Securities pursuant to the Shelf
Registration Statement, in each case, (i) that is filed pursuant to the
provisions of this Agreement, (ii) including the Prospectus included therein,
and (iii) including all amendments and supplements thereto (including
post-effective amendments) and all exhibits and material incorporated by
reference therein.

     RULE 144:  Rule 144 promulgated under the Act.

     SHELF REGISTRATION STATEMENT:  As defined in Section 4 hereof.

     SUSPENSION NOTICE:  As defined in Section 6(d) hereof.

     TIA:  The Trust Indenture Act of 1939 (15 U.S.C. Section 77aaa-77bbbb) as
in effect on the date of the Indenture.

     TRANSFER RESTRICTED SECURITIES:  Each Initial Note until the earliest to
occur of (a) the date on which such Initial Note has been exchanged in the
Exchange Offer by a Person other than a Broker-Dealer for an Exchange Note
entitled to be resold to the public by the Holder thereof without complying with
the prospectus delivery requirements of the Act, (b) following the exchange by a
Broker-Dealer in the Exchange Offer of an Initial Note for an Exchange Note, the
date on which such Exchange Note is sold to a purchaser who receives from such
Broker-Dealer on or prior to the date of such sale a copy of the Prospectus
contained in the Exchange Offer Registration Statement, (c) the date on which
such Initial Note has been effectively registered under the Act and disposed of
in accordance with the Shelf Registration Statement (and the purchasers thereof
have been issued Exchange Notes) or (d) the date on which such Initial Note is
distributed to the public pursuant to Rule 144.

     SECTION 2.  HOLDERS

     A Person is deemed to be a holder of Transfer Restricted Securities (each,
a "HOLDER") whenever such Person owns Transfer Restricted Securities.

     SECTION 3.  REGISTERED EXCHANGE OFFER

     (a) Unless the Exchange Offer shall not be permitted by applicable law or
Commission policy (after the procedures set forth in Section 6(a)(i) below have
been complied with), the Company shall (i) cause the Exchange Offer Registration
Statement to be filed with the Commission no later than 90 days after the
Closing Date (such 90th day being the "FILING DEADLINE"), (ii) use all
commercially reasonable efforts to cause such Exchange Offer Registration
Statement to become effective no later than 180 days after the Closing Date
(such 180th day being the "EFFECTIVENESS DEADLINE"), (iii) in connection with
the foregoing, (A) file all pre-effective amendments to such Exchange Offer
Registration Statement as may be necessary in order to cause it to become
effective, (B) file, if applicable, a post-effective amendment to such Exchange
Offer Registration Statement pursuant to Rule 430A under the Act and (C) cause
all necessary filings, if any, in connection with the registration and
qualification of the Exchange Notes to be made under the Blue Sky laws of such
jurisdictions as are necessary to permit Consummation of the Exchange Offer, and
(iv) upon the effectiveness of such Exchange Offer Registration Statement,
commence and Consummate the Exchange Offer. The Exchange Offer shall be on the
appropriate form permitting (i) registration of the Exchange Notes to be offered
in exchange for the Initial Notes that are Transfer Restricted Securities and
(ii) resales of Exchange Notes by Broker-Dealers that tendered into the Exchange
Offer Initial Notes that such Broker-Dealer acquired for its own account as a
result of market-making activities or other trading activities (other than
Initial Notes acquired directly from the Company or any of its Affiliates) as
contemplated by Section 3(c) below.
                                        2
<PAGE>

     (b) The Company shall use all commercially reasonable efforts to cause the
Exchange Offer Registration Statement to be effective continuously, and shall
keep the Exchange Offer open for a period of not less than the minimum period
required under applicable federal and state securities laws to Consummate the
Exchange Offer; provided, however, that in no event shall such period be less
than 20 Business Days. The Company shall cause the Exchange Offer to comply with
all applicable federal and state securities laws. No securities other than the
Exchange Notes shall be included in the Exchange Offer Registration Statement.
The Company shall use all commercially reasonable efforts to cause the Exchange
Offer to be Consummated no later than 30 Business Days, or longer, if required
by the federal securities laws, after the date on which the Exchange Offer
Registration Statement has become effective (such 30th day, or such later date
required by the federal securities laws, being the "CONSUMMATION DEADLINE").

     (c) The Company shall include a "Plan of Distribution" section in the
Prospectus contained in the Exchange Offer Registration Statement and indicate
therein that any Broker-Dealer who holds Transfer Restricted Securities that
were acquired for the account of such Broker-Dealer as a result of market-making
activities or other trading activities (other than Initial Notes acquired
directly from the Company or any Affiliate of the Company) may exchange such
Transfer Restricted Securities pursuant to the Exchange Offer. Such "Plan of
Distribution" section shall also contain all other information with respect to
such sales by such Broker-Dealers that the Commission may require in order to
permit such sales pursuant thereto, but such "Plan of Distribution" shall not
name any such Broker-Dealer or disclose the amount of Transfer Restricted
Securities held by any such Broker-Dealer, except to the extent required by the
Commission as a result of a change in policy, rules or regulations after the
date of this Agreement. See the Shearman & Sterling no-action letter (available
July 2, 1993).

     Because such Broker-Dealer may be deemed to be an "underwriter" within the
meaning of the Act and must, therefore, deliver a prospectus meeting the
requirements of the Act in connection with its initial sale of any Exchange
Notes received by such Broker-Dealer in the Exchange Offer, the Company shall
permit the use of the Prospectus contained in the Exchange Offer Registration
Statement by such Broker-Dealer to satisfy such prospectus delivery requirement.
To the extent necessary to ensure that the Prospectus contained in the Exchange
Offer Registration Statement is available for sales of Exchange Notes by
Broker-Dealers, the Company agrees to use all commercially reasonable efforts to
keep the Exchange Offer Registration Statement continuously effective,
supplemented, amended and current as required by and subject to the provisions
of Sections 6(a) and (c) hereof and in conformity with the requirements of this
Agreement, the Act and the policies, rules and regulations of the Commission as
announced from time to time, for a period of 180 days from the Consummation
Deadline or such shorter period as will terminate when all Transfer Restricted
Securities covered by such Registration Statement have been sold pursuant
thereto. The Company shall provide sufficient copies of the latest version of
such Prospectus to such Broker-Dealers, promptly upon request, and in no event
later than one day after such request, at any time during such period.

     SECTION 4.  SHELF REGISTRATION

     (a) Shelf Registration. If (i) the Company is not (A) required to file the
Exchange Offer Registration Statement or (B) permitted to Consummate the
Exchange Offer because the Exchange Offer is not permitted by applicable law or
Commission policy (after the Company has complied with the procedures set forth
in Section 6(a)(i) below) or (ii) any Holder of Transfer Restricted Securities
shall notify the Company prior to 20 Business Days following Consummation of the
Exchange Offer that (A) such Holder was prohibited by law or Commission policy
from participating in the Exchange Offer, (B) such Holder may not resell the
Exchange Notes acquired by it in the Exchange Offer to the public without
delivering a prospectus and the Prospectus contained in the Exchange Offer
Registration Statement is not appropriate or available for such resales by such
Holder or (C) such Holder is a Broker-Dealer and holds Initial Notes acquired
directly from the Company or any of its Affiliates, then the Company shall:

     (x) use all commercially reasonable efforts on or prior to the later of (i)
the Filing Date for the Exchange Offer Registration Statement and (ii) 30 days
after the earlier of (A) the date as of which the Company determines that the
Exchange Offer Registration Statement will not be or cannot be, as the case may
be, filed as a result of clause (a)(i) above and (B) the date on which the
Company receives the notice

                                        3
<PAGE>

specified in clause (a)(ii) above (such later date, the "FILING DEADLINE"), to
file a shelf registration statement pursuant to Rule 415 under the Act (which
may be an amendment to the Exchange Offer Registration Statement (the "SHELF
REGISTRATION STATEMENT")), relating to all Transfer Restricted Securities, and

     (y) shall use all commercially reasonable efforts to cause such Shelf
Registration Statement to become effective on or prior to 60 days after the
Filing Deadline for the Shelf Registration Statement (such 60th day the
"EFFECTIVENESS DEADLINE").

     If, after the Company has filed an Exchange Offer Registration Statement
that satisfies the requirements of Section 3(a) above, the Company is required
to file and make effective a Shelf Registration Statement solely because the
Exchange Offer is not permitted under applicable federal law (i.e., clause
(a)(i)(B) above), then the filing of the Exchange Offer Registration Statement
shall be deemed to satisfy the requirements of clause (x) above; provided that,
in such event, the Company shall remain obligated to meet the Effectiveness
Deadline set forth in clause (y).

     To the extent necessary to ensure that the Shelf Registration Statement is
available for sales of Transfer Restricted Securities by the Holders thereof
entitled to the benefit of this Section 4(a) and the other securities required
to be registered therein pursuant to Section 6(b)(ii) hereof, the Company shall
use all commercially reasonable efforts to keep any Shelf Registration Statement
required by this Section 4(a) continuously effective, supplemented, amended and
current as required by and subject to the provisions of Sections 6(b) and (c)
hereof and in conformity with the requirements of this Agreement, the Act and
the policies, rules and regulations of the Commission as announced from time to
time, for a period of at least two years (as extended pursuant to Section 6(d))
following the Closing Date, or such shorter period as will terminate when all
Transfer Restricted Securities covered by such Shelf Registration Statement have
been sold pursuant thereto.

     (b) Provision by Holders of Certain Information in Connection with the
Shelf Registration Statement. No Holder of Transfer Restricted Securities may
include any of its Transfer Restricted Securities in any Shelf Registration
Statement pursuant to this Agreement unless and until such Holder furnishes to
the Company in writing, within 20 days after receipt of a request therefor, the
information specified in Item 507 or 508 of Regulation S-K, as applicable, of
the Act for use in connection with any Shelf Registration Statement or
Prospectus or preliminary prospectus included therein. No Holder of Transfer
Restricted Securities shall be entitled to liquidated damages pursuant to
Section 5 hereof unless and until such Holder shall have provided all such
information by such deadline. Each selling Holder agrees to promptly furnish
additional information required to be disclosed in order to make the information
previously furnished to the Company by such Holder not materially misleading.

     SECTION 5.  LIQUIDATED DAMAGES

     If (i) any Registration Statement required by this Agreement is not filed
with the Commission on or prior to the applicable Filing Deadline, (ii) any such
Registration Statement has not been declared effective by the Commission on or
prior to the applicable Effectiveness Deadline, (iii) the Exchange Offer has not
been Consummated on or prior to 30 Business Days after the Effectiveness
Deadline with respect to the Exchange Offer Registration Statement or (iv) any
Registration Statement required by this Agreement is filed and declared
effective but shall thereafter cease to be effective or usable for its intended
purpose during the periods such Registration Statement is required to be
effective or usable (each such event referred to in clauses (i) through (iv), a
"REGISTRATION DEFAULT"), then the Company agrees to pay to each Holder of
Transfer Restricted Securities affected thereby liquidated damages in an amount
equal to $.05 per week per $1,000 in principal amount at maturity of Transfer
Restricted Securities held by such Holder for each week or portion thereof that
the Registration Default continues for the first 90-day period immediately
following the occurrence of such Registration Default. The amount of the
liquidated damages shall increase by an additional $.05 per week per $1,000 in
principal amount at maturity of Transfer Restricted Securities with respect to
each subsequent 90-day period until all Registration Defaults have been cured,
up to a maximum amount of liquidated damages of $.50 per week per $1,000 in
principal amount at maturity of Transfer Restricted Securities; provided that
the Company shall in no event be required to pay liquidated damages for more
than one Registration Default at any given time. Notwithstanding anything to the
contrary set forth herein, (1) upon filing of the Exchange Offer Registration
Statement (and/or, if applicable, the Shelf Registration
                                        4
<PAGE>

Statement), in the case of (i) above, (2) upon the effectiveness of the Exchange
Offer Registration Statement (and/or, if applicable, the Shelf Registration
Statement), in the case of (ii) above, (3) upon Consummation of the Exchange
Offer, in the case of (iii) above, or (4) upon the filing of a post-effective
amendment to the Registration Statement or an additional Registration Statement
that causes the Exchange Offer Registration Statement (and/or, if applicable,
the Shelf Registration Statement) to again be declared effective or made usable,
in the case of (iv) above, the liquidated damages payable with respect to the
Transfer Restricted Securities as a result of such clause (i), (ii), (iii) or
(iv), as applicable, shall cease.

     All accrued liquidated damages shall be paid to the Holders entitled
thereto, in the manner provided for the payment of interest in the Indenture, on
each Interest Payment Date, as more fully set forth in the Indenture and the
Notes. Notwithstanding the fact that any securities for which liquidated damages
are due cease to be Transfer Restricted Securities, all obligations of the
Company to pay liquidated damages with respect to securities shall survive until
such time as such obligations with respect to such securities shall have been
satisfied in full.

     SECTION 6.  REGISTRATION PROCEDURES

     (a) Exchange Offer Registration Statement. In connection with the Exchange
Offer, the Company shall (x) comply with all applicable provisions of Section
6(c) below, (y) use all commercially reasonable efforts to effect such exchange
and to permit the resale of Exchange Notes by Broker-Dealers that tendered in
the Exchange Offer Initial Notes that such Broker-Dealer acquired for its own
account as a result of its market-making activities or other trading activities
(other than Initial Notes acquired directly from the Company or any of its
Affiliates) being sold in accordance with the intended method or methods of
distribution thereof, and (z) comply with all of the following provisions:

          (i) If, following the date hereof there has been announced a change in
     Commission policy with respect to exchange offers such as the Exchange
     Offer, that in the reasonable opinion of counsel to the Company raises a
     substantial question as to whether the Exchange Offer is permitted by
     applicable federal law, the Company hereby agrees to seek a no-action
     letter or other favorable decision from the Commission allowing the Company
     to Consummate an Exchange Offer for such Transfer Restricted Securities.
     The Company hereby agrees to pursue the issuance of such a decision to the
     Commission staff level but shall not be required to take commercially
     unreasonable actions in connection therewith. In connection with the
     foregoing, the Company hereby agrees to take all other commercially
     reasonable actions as may be requested by the Commission or otherwise
     required in connection with the issuance of such decision, including
     without limitation (A) participating in telephonic conferences with the
     Commission, (B) if practicable, delivering to the Commission staff an
     analysis prepared by counsel to the Company setting forth the legal bases,
     if any, upon which such counsel has concluded that such an Exchange Offer
     should be permitted and (C) diligently pursuing a resolution (which need
     not be favorable) by the Commission staff.

          (ii) As a condition to its participation in the Exchange Offer, each
     Holder of Transfer Restricted Securities (including, without limitation,
     any Holder who is a Broker-Dealer) shall furnish, upon the request of the
     Company, prior to the Consummation of the Exchange Offer, a written
     representation to the Company (which may be contained in the letter of
     transmittal contemplated by the Exchange Offer Registration Statement) to
     the effect that (A) it is not an Affiliate of the Company, (B) it is not
     engaged in, and does not intend to engage in, and has no arrangement or
     understanding with any person to participate in, a distribution of the
     Exchange Notes to be issued in the Exchange Offer and (C) it is acquiring
     the Exchange Notes in its ordinary course of business. As a condition to
     its participation in the Exchange Offer each Holder using the Exchange
     Offer to participate in a distribution of the Exchange Notes shall
     acknowledge and agree that, if the resales are of Exchange Notes obtained
     by such Holder in exchange for Initial Notes acquired directly from the
     Company or an Affiliate thereof, it (1) could not, under Commission policy
     as in effect on the date of this Agreement, rely on the position of the
     Commission enunciated in Morgan Stanley and Co., Inc. (available June 5,
     1991) and Exxon Capital Holdings Corporation (available May 13, 1988), as
     interpreted in the Commission's letter to Shearman & Sterling dated July 2,
     1993, and similar no-action letters (including, if applicable, any no-

                                        5
<PAGE>

     action letter obtained pursuant to clause (i) above), and (2) must comply
     with the registration and prospectus delivery requirements of the Act in
     connection with a secondary resale transaction and that such a 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.

          (iii) Prior to effectiveness of the Exchange Offer Registration
     Statement, the Company shall provide a supplemental letter to the
     Commission (A) stating that the Company is registering the Exchange Offer
     in reliance on the position of the Commission enunciated in Exxon Capital
     Holdings Corporation (available May 13, 1988), Morgan Stanley and Co., Inc.
     (available June 5, 1991) as interpreted in the Commission's letter to
     Shearman & Sterling dated July 2, 1993, and, if applicable, any no-action
     letter obtained pursuant to clause (i) above, (B) including a
     representation that the Company has not entered into any arrangement or
     understanding with any Person to distribute the Exchange Notes to be
     received in the Exchange Offer and that, to the best of the Company's
     information and belief, each Holder participating in the Exchange Offer is
     acquiring the Exchange Notes in its ordinary course of business and has no
     arrangement or understanding with any Person to participate in the
     distribution of the Exchange Notes received in the Exchange Offer and (C)
     any other undertaking or representation required by the Commission as set
     forth in any no-action letter obtained pursuant to clause (i) above, if
     applicable.

     (b) Shelf Registration Statement. In connection with the Shelf Registration
Statement, the Company shall:

          (i) comply with all the provisions of Section 6(c) below and use all
     commercially reasonable efforts to effect such registration to permit the
     sale of the Transfer Restricted Securities being sold in accordance with
     the intended method or methods of distribution thereof (as indicated in the
     information furnished to the Company pursuant to Section 4(b) hereof), and
     pursuant thereto the Company will prepare and file with the Commission a
     Registration Statement relating to the registration on any appropriate form
     under the Act, which form shall be available for the sale of the Transfer
     Restricted Securities in accordance with the intended method or methods of
     distribution thereof within the time periods and otherwise in accordance
     with the provisions hereof, and

          (ii) issue, upon the request of any Holder or purchaser of Initial
     Notes covered by any Shelf Registration Statement contemplated by this
     Agreement, Exchange Notes having an aggregate principal amount at maturity
     equal to the aggregate principal amount at maturity of Initial Notes sold
     pursuant to the Shelf Registration Statement and surrendered to the Company
     for cancellation; the Company shall register Exchange Notes on the Shelf
     Registration Statement for this purpose and issue the Exchange Notes to the
     purchaser(s) of securities subject to the Shelf Registration Statement in
     the names as such purchaser(s) shall designate.

     (c) General Provisions. In connection with any Registration Statement and
any related Prospectus required by this Agreement, the Company shall:

          (i) use all commercially reasonable efforts to keep such Registration
     Statement continuously effective and provide all requisite financial
     statements for the period specified in Section 3 or 4 of this Agreement, as
     applicable. Upon the occurrence of any event that would cause any such
     Registration Statement or the Prospectus contained therein (A) to contain
     an untrue statement of material fact or omit to state any material fact
     necessary to make the statements therein not misleading or (B) not to be
     effective and usable for resale of Transfer Restricted Securities during
     the period required by this Agreement, the Company shall file promptly an
     appropriate amendment to such Registration Statement curing such defect,
     and, if Commission review is required, use all commercially reasonable
     efforts to cause such amendment to be declared effective as soon as
     practicable.

          (ii) prepare and file with the Commission such amendments and
     post-effective amendments to the applicable Registration Statement as may
     be necessary to keep such Registration Statement effective for the
     applicable period set forth in Section 3 or 4 hereof, as the case may be;
     cause the Prospectus to be supplemented by any required Prospectus
     supplement, and as so supplemented to be filed pursuant to

                                        6
<PAGE>

     Rule 424 under the Act, and to comply fully with Rules 424, 430A and 462,
     as applicable, under the Act in a timely manner; and comply with the
     provisions of the Act with respect to the disposition of all securities
     covered by such Registration Statement during the applicable period in
     accordance with the intended method or methods of distribution by the
     sellers thereof set forth in such Registration Statement or supplement to
     the Prospectus;

          (iii) advise promptly (x) each Holder of Transfer Restricted
     Securities included in any Shelf Registration Statement (each, a "SHELF
     HOLDER") and (y) each Holder that is a Broker-Dealer that tendered into the
     Exchange Offer Initial Notes acquired by such Broker-Dealer for its own
     account as a result of market-making activities or other trading
     activities, and, if requested by any such Holder, confirm such advice in
     writing, (A) when the Prospectus or any Prospectus supplement or
     post-effective amendment has been filed, and, with respect to any
     applicable Registration Statement or any post-effective amendment thereto,
     when the same has become effective, (B) of any request by the Commission
     for amendments to the Registration Statement or amendments or supplements
     to the Prospectus or for additional information relating thereto, (C) of
     the issuance by the Commission of any stop order suspending the
     effectiveness of the Registration Statement under the Act or of the
     suspension by any state securities commission of the qualification of the
     Transfer Restricted Securities for offering or sale in any jurisdiction, or
     the initiation of any proceeding for any of the preceding purposes, and (D)
     of the existence of any fact or the happening of any event that makes any
     statement of a material fact made in the Registration Statement, the
     Prospectus, any amendment or supplement thereto or any document
     incorporated by reference therein untrue, or that requires the making of
     any additions to or changes in the Registration Statement in order to make
     the statements therein not misleading, or that requires the making of any
     additions to or changes in the Prospectus in order to make the statements
     therein, in the light of the circumstances under which they were made, not
     misleading. If at any time the Commission shall issue any stop order
     suspending the effectiveness of the Registration Statement, or any state
     securities commission or other regulatory authority shall issue an order
     suspending the qualification or exemption from qualification of the
     Transfer Restricted Securities under state securities or Blue Sky laws, the
     Company shall use all commercially reasonable efforts to obtain the
     withdrawal or lifting of such order at the earliest possible time;

          (iv) subject to Section 6(c)(i), if any fact or event contemplated by
     Section 6(c)(iii)(D) above shall exist or have occurred, prepare a
     supplement or post-effective amendment to the Registration Statement or
     related Prospectus or any document incorporated therein by reference or
     file any other required document so that, as thereafter delivered to the
     purchasers of Transfer Restricted Securities, the Prospectus will not
     contain an untrue statement of a material fact or omit to state any
     material fact necessary to make the statements therein, in the light of the
     circumstances under which they were made, not misleading;

          (v) furnish to each Shelf Holder in connection with such registration
     or sale, if any, before filing with the Commission, copies of any Shelf
     Registration Statement or any Prospectus included therein or any amendments
     or supplements to any such Shelf Registration Statement or Prospectus
     (including all documents incorporated by reference after the initial filing
     of such Shelf Registration Statement), which documents will be subject to
     the review and comment of such Shelf Holders in connection with such sale,
     if any, for a period of at least three Business Days, and the Company will
     not file any such Shelf Registration Statement or Prospectus or any
     amendment or supplement to any such Shelf Registration Statement or
     Prospectus (including all such documents incorporated by reference) to
     which such Shelf Holders shall reasonably object within three Business Days
     after the receipt thereof. A Holder shall be deemed to have reasonably
     objected to such filing if such Shelf Registration Statement, amendment,
     Prospectus or supplement, as applicable, as proposed to be filed, contains
     an untrue statement of a material fact or omits to state any material fact
     necessary to make the statements therein not misleading or fails to comply
     with the applicable requirements of the Act;

          (vi) upon request, prior to the filing of any document that is to be
     incorporated by reference into a Shelf Registration Statement or Prospectus
     in connection with such registration or sale, if any, provide copies of
     such document to each Shelf Holder;
                                        7
<PAGE>

          (vii) make available upon reasonable request, at reasonable times, for
     inspection by each Shelf Holder and any attorney or accountant retained by
     such Shelf Holders (provided that there shall not be more than one attorney
     and not more than one accountant retained by all Shelf Holders for this
     purpose), all financial and other records, pertinent corporate documents of
     the Company and cause the Company's officers, directors and employees to
     supply all information reasonably requested by any such Shelf Holder,
     attorney or accountant in connection with such Shelf Registration Statement
     or any post-effective amendment thereto subsequent to the filing thereof
     and prior to its effectiveness;

          (viii) if requested by any Holders in connection with such exchange,
     registration or sale, promptly include in any Registration Statement or
     Prospectus, pursuant to a supplement or post-effective amendment if
     necessary, such information as such Holders may reasonably request in
     writing to have included therein that is required by the federal securities
     laws to be so included, including, without limitation, information relating
     to the "Plan of Distribution" of the Transfer Restricted Securities; and
     make all required filings of such Prospectus supplement or post-effective
     amendment as soon as practicable after the Company is notified of the
     matters to be included in such Prospectus supplement or post-effective
     amendment;

          (ix) upon request, furnish to each Shelf Holder in connection with
     such registration or sale, without charge, at least one copy of the Shelf
     Registration Statement, as first filed with the Commission, and of each
     amendment thereto, including all documents incorporated by reference
     therein and all exhibits (including exhibits incorporated therein by
     reference);

          (x) deliver to each Holder without charge, as many copies of the
     Prospectus (including each preliminary prospectus) and any amendment or
     supplement thereto as such Persons reasonably may request; the Company
     hereby consents to the use (in accordance with law) of the Prospectus and
     any amendment or supplement thereto by each selling Holder in connection
     with the offering and the sale of the Transfer Restricted Securities
     covered by the Prospectus or any amendment or supplement thereto;

          (xi) in connection with a Shelf Registration Statement, upon the
     request of any Shelf Holder, enter into such agreements (including
     underwriting agreements in connection with any underwritten offering in the
     event the Company effects an underwritten offering) and make such
     representations and warranties and take all such other actions in
     connection therewith in order to expedite or facilitate the disposition of
     the Transfer Restricted Securities pursuant to any Shelf Registration
     Statement contemplated by this Agreement as may be reasonably requested by
     any Shelf Holder in connection with any sale or resale pursuant to any
     Shelf Registration Statement. In such connection, the Company shall:

             (A) upon request of any Shelf Holder, furnish to each Shelf Holder
        upon the effectiveness of the Shelf Registration Statement a
        certificate, dated such date, signed on behalf of the Company by (x) the
        President or any Vice President and (y) a principal financial or
        accounting officer of the Company, confirming, as of the date thereof,
        such matters as such Shelf Holders may reasonably request; and

             (B) deliver such other documents and certificates as may be
        reasonably requested by the Shelf Holders to evidence compliance with
        the matters covered in clause (A) above and with any customary
        conditions contained in any agreement entered into by the Company
        pursuant to this clause (xi);

          (xii) prior to any public offering of Transfer Restricted Securities
     pursuant to a Shelf Registration Statement, cooperate with the Shelf
     Holders and their counsel in connection with the registration and
     qualification of the Transfer Restricted Securities under the securities or
     Blue Sky laws of such jurisdictions as such Shelf Holders may request and
     do any and all other acts or things necessary or advisable to enable the
     disposition in such jurisdictions of the Transfer Restricted Securities
     covered by the Shelf Registration Statement; provided, however, that the
     Company shall not be required to register or qualify as a foreign
     corporation where it is not now so qualified or to take any action that
     would subject it to the service of process in suits or to taxation, other
     than as to matters and transactions relating to the Shelf Registration
     Statement, in any jurisdiction where it is not now so subject;

                                        8
<PAGE>

          (xiii) in connection with any sale of Transfer Restricted Securities
     that will result in such securities no longer being Transfer Restricted
     Securities, cooperate with the Holders to facilitate the timely preparation
     and delivery of certificates representing Transfer Restricted Securities to
     be sold and not bearing any restrictive legends; and to register such
     Transfer Restricted Securities in such denominations and such names as such
     selling Holders may request in writing at least two Business Days prior to
     such sale of Transfer Restricted Securities;

          (xiv) use all commercially reasonable efforts to cause the disposition
     of the Transfer Restricted Securities covered by the Registration Statement
     to be registered with or approved by such other governmental agencies or
     authorities as may be necessary to enable the seller or sellers thereof to
     consummate the disposition of such Transfer Restricted Securities, subject
     to the proviso contained in clause (xii) above;

          (xv) provide a CUSIP number for all Transfer Restricted Securities not
     later than the effective date of a Registration Statement covering such
     Transfer Restricted Securities and provide the Trustee under the Indenture
     with printed certificates for the Transfer Restricted Securities which are
     in a form eligible for deposit with the Depository Trust Company;

          (xvi) otherwise use all commercially efforts to comply with all
     applicable rules and regulations of the Commission, and make generally
     available to its security holders with regard to any applicable
     Registration Statement, as soon as practicable, a consolidated earnings
     statement meeting the requirements of Rule 158 under the Act (which need
     not be audited) covering a twelve-month period beginning after the
     effective date of the Registration Statement (as such term is defined in
     paragraph (c) of Rule 158 under the Act); and

          (xvii) cause the Indenture to be qualified under the TIA not later
     than the effective date of the first Registration Statement required by
     this Agreement and, in connection therewith, cooperate with the Trustee and
     the Holders to effect such changes to the Indenture as may be required for
     such Indenture to be so qualified in accordance with the terms of the TIA;
     and execute and use its commercially reasonable efforts to cause the
     Trustee to execute, all documents that may be required to effect such
     changes and all other forms and documents required to be filed with the
     Commission to enable such Indenture to be so qualified in a timely manner.

     (d) Restrictions on Holders. Each Holder agrees by acquisition of a
Transfer Restricted Security that, upon receipt of the notice referred to in
Section 6(c)(iii)(C) or any notice from the Company of the existence of any fact
of the kind described in Section 6(c)(iii)(D) hereof (in each case, a
"SUSPENSION NOTICE"), such Holder will forthwith discontinue disposition of
Transfer Restricted Securities pursuant to the applicable Registration Statement
until (i) such Holder has received copies of the supplemented or amended
Prospectus contemplated by Section 6(c)(iv) hereof, or (ii) such Holder is
advised in writing by the Company that the use of the Prospectus may be resumed,
and has received copies of any additional or supplemental filings that are
incorporated by reference in the Prospectus (in each case, the "RECOMMENCEMENT
DATE"). Each Holder receiving a Suspension Notice hereby agrees that it will
either (i) destroy any Prospectuses, other than permanent file copies, then in
such Holder's possession which have been replaced by the Company with more
recently dated Prospectuses or (ii) deliver to the Company (at the Company's
expense) all copies, other than permanent file copies, then in such Holder's
possession of the Prospectus covering such Transfer Restricted Securities that
was current at the time of receipt of the Suspension Notice. The time period
regarding the effectiveness of such Registration Statement set forth in Section
3 or 4 hereof, as applicable, shall be extended by a number of days equal to the
number of days in the period from and including the date of delivery of the
Suspension Notice to the Recommencement Date.

     SECTION 7.  REGISTRATION EXPENSES

     (a) All expenses incident to the Company's performance of or compliance
with this Agreement will be borne by the Company, regardless of whether a
Registration Statement becomes effective, including without limitation: (i) all
registration and filing fees and expenses; (ii) all fees and expenses of
compliance with federal securities and state Blue Sky or securities laws; (iii)
all expenses of printing (including printing

                                        9
<PAGE>

certificates for the Exchange Notes to be issued in the Exchange Offer and
printing of Prospectuses), messenger and delivery services and telephone; (iv)
all fees and disbursements of counsel for the Company; and (v) all fees and
disbursements of independent certified public accountants of the Company
(including the expenses of any special audit and comfort letters required by or
incident to such performance).

     The Company will, in any event, bear its internal expenses (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expenses of any annual audit and the
fees and expenses of any Person, including special experts, retained by the
Company.

     (b) In connection with any Shelf Registration Statement required by this
Agreement, the Company will reimburse the Holders of Transfer Restricted
Securities who are selling or reselling Initial Notes or Exchange Notes pursuant
to the "Plan of Distribution" contained in the Shelf Registration Statement for
the reasonable fees and disbursements of not more than one counsel, who shall be
Latham & Watkins LLP, unless another firm shall be chosen by the Holders of a
majority in principal amount at maturity of the Transfer Restricted Securities
for whose benefit such Shelf Registration Statement is being prepared.

     SECTION 8.  INDEMNIFICATION

     (a) The Company agrees to indemnify and hold harmless each Holder, its
directors, officers and each Person, if any, who controls such Holder (within
the meaning of Section 15 of the Act or Section 20 of the Exchange Act), from
and against any and all losses, claims, damages, liabilities, judgments,
(including without limitation, any legal or other expenses incurred in
connection with investigating or defending any matter, including any action that
could give rise to any such losses, claims, damages, liabilities or judgments)
caused by any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement, preliminary prospectus or Prospectus
(or any amendment or supplement thereto), or caused by any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, except insofar as such
losses, claims, damages, liabilities or judgments are caused by an untrue
statement or omission or alleged untrue statement or omission that is based upon
information relating to any of the Holders furnished in writing to the Company
by any of the Holders.

     (b) Each Holder of Transfer Restricted Securities agrees, severally and not
jointly, to indemnify and hold harmless the Company and its directors and
officers, and each person, if any, who controls (within the meaning of Section
15 of the Act or Section 20 of the Exchange Act) the Company, to the same extent
as the foregoing indemnity from the Company set forth in section (a) above, but
only with reference to information relating to such Holder furnished in writing
to the Company by such Holder expressly for use in any Registration Statement.
In no event shall any Holder, its directors, officers or any Person who controls
such Holder be liable or responsible for any amount in excess of the amount by
which the total amount received by such Holder with respect to its sale of
Transfer Restricted Securities pursuant to a Registration Statement exceeds (i)
the amount paid by such Holder for such Transfer Restricted Securities and (ii)
the amount of any damages that such Holder, its directors, officers or any
Person who controls such Holder has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission.

     (c) In case any action shall be commenced involving any person in respect
of which indemnity may be sought pursuant to Section 8(a) or 8(b) (the
"INDEMNIFIED PARTY"), the indemnified party shall promptly notify the person
against whom such indemnity may be sought (the "INDEMNIFYING PERSON") in writing
and the indemnifying party shall assume the defense of such action, including
the employment of counsel reasonably satisfactory to the indemnified party and
the payment of all fees and expenses of such counsel, as incurred (except that
in the case of any action in respect of which indemnity may be sought pursuant
to both Sections 8(a) and 8(b), a Holder shall not be required to assume the
defense of such action pursuant to this Section 8(c), but may employ separate
counsel and participate in the defense thereof, but the fees and expenses of
such counsel, except as provided below, shall be at the expense of the Holder).
Any indemnified party shall have the right to employ separate counsel in any
such action and participate in the defense thereof, but the fees and expenses of
such counsel shall be at the expense of the indemnified party unless (i) the
employment of such counsel shall have been specifically authorized in writing by
the indemnifying party, (ii) the indemnifying party shall have failed to assume
the defense of such action or employ counsel reasonably satisfactory to the
indemnified party or (iii) the named parties to any such action (including any
                                        10
<PAGE>

impleaded parties) include both the indemnified party and the indemnifying
party, and the indemnified party shall have been advised by such counsel that
there may be one or more legal defenses available to it which are different from
or additional to those available to the indemnifying party (in which case the
indemnifying party shall not have the right to assume the defense of such action
on behalf of the indemnified party). In any such case, the indemnifying party
shall not, in connection with any one action or separate but substantially
similar or related actions in the same jurisdiction arising out of the same
general allegations or circumstances, be liable for the fees and expenses of
more than one separate firm of attorneys (in addition to any local counsel) for
all indemnified parties and all such fees and expenses shall be reimbursed as
they are incurred. Such firm shall be designated in writing by a majority of the
Holders, in the case of the parties indemnified pursuant to Section 8(a), and by
the Company, in the case of parties indemnified pursuant to Section 8(b). The
indemnifying party shall indemnify and hold harmless the indemnified party from
and against any and all losses, claims, damages, liabilities and judgments by
reason of any settlement of any action (i) effected with its written consent or
(ii) effected without its written consent if the settlement is entered into more
than twenty Business Days after the indemnifying party shall have received a
request from the indemnified party for reimbursement for the fees and expenses
of counsel (in any case where such fees and expenses are at the expense of the
indemnifying party) and, prior to the date of such settlement, the indemnifying
party shall have failed to comply with such reimbursement request. No
indemnifying party shall, without the prior written consent of the indemnified
party, effect any settlement or compromise of, or consent to the entry of
judgment with respect to, any pending or threatened action in respect of which
the indemnified party is or could have been a party and indemnity or
contribution may be or could have been sought hereunder by the indemnified
party, unless such settlement, compromise or judgment (i) includes an
unconditional release of the indemnified party from all liability on claims that
are or could have been the subject matter of such action and (ii) does not
include a statement as to or an admission of fault, culpability or a failure to
act, by or on behalf of the indemnified party.

     (d) To the extent that the indemnification provided for in this Section 8
is unavailable to an indemnified party in respect of any losses, claims,
damages, liabilities or judgments referred to therein, then each indemnifying
party, in lieu of indemnifying such indemnified party, shall contribute to the
amount paid or payable by such indemnified party as a result of such losses,
claims, damages, liabilities or judgments (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company, on the one
hand, and the Holders, on the other hand, from their sale of Transfer Restricted
Securities or (ii) if the allocation provided by clause 8(d)(i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause 8(d)(i) above but also the
relative fault of the Company, on the one hand, and of the Holder, on the other
hand, in connection with the statements or omissions which resulted in such
losses, claims, damages, liabilities or judgments, as well as any other relevant
equitable considerations. The relative fault of the Company, on the one hand,
and of the Holder, on the other hand, shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to
information supplied by the Company, on the one hand, or by the Holder, on the
other hand, and the parties' relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.

     The Company and each Holder agree that it would not be just and equitable
if contribution pursuant to this Section 8(d) were determined by pro rata
allocation (even if the Holders were treated as one entity for such purpose) or
by any other method of allocation which does not take account of the equitable
considerations referred to in the immediately preceding paragraph. The amount
paid or payable by an indemnified party as a result of the losses, claims,
damages, liabilities or judgments referred to in the immediately preceding
paragraph shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses reasonably incurred by such indemnified party
in connection with investigating or defending any matter, including any action
that could have given rise to such losses, claims, damages, liabilities or
judgments. Notwithstanding the provisions of this Section 8, no Holder, its
directors, its officers or any Person, if any, who controls such Holder shall be
required to contribute, in the aggregate, any amount in excess of the amount by
which the total received by such Holder with respect to the sale of Transfer
Restricted Securities pursuant to a Registration Statement exceeds (i) the
amount paid by such Holder for such Transfer Restricted Securities and (ii) the
amount of any damages which such Holder has otherwise
                                        11
<PAGE>

been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The Holders' obligations to contribute pursuant to this
Section 8(d) are several in proportion to the respective principal amount at
maturity of Transfer Restricted Securities held by each Holder hereunder and not
joint.

     SECTION 9.  RULE 144A AND RULE 144

     The Company agrees with each Holder, for so long as any Transfer Restricted
Securities remain outstanding and during any period in which the Company (i) is
not subject to Section 13 or 15(d) of the Exchange Act, to make available, upon
request of any Holder, to such Holder or beneficial owner of Transfer Restricted
Securities in connection with any sale thereof and any prospective purchaser of
such Transfer Restricted Securities designated by such Holder or beneficial
owner, the information required by Rule 144A(d)(4) under the Act in order to
permit resales of such Transfer Restricted Securities pursuant to Rule 144A
under the Act, and (ii) is subject to Section 13 or 15 (d) of the Exchange Act,
to make all filings required thereby in a timely manner in order to permit
resales of such Transfer Restricted Securities pursuant to Rule 144.

     SECTION 10.  MISCELLANEOUS

     (a) Remedies. The Company acknowledges and agrees that any failure by the
Company to comply with its obligations under Sections 3 and 4 hereof may result
in material irreparable injury to the Initial Purchaser or the Holders for which
there is no adequate remedy at law, that it will not be possible to measure
damages for such injuries precisely and that, in the event of any such failure,
the Initial Purchaser or any Holder may obtain such relief as may be required to
specifically enforce the Company's obligations under Sections 3 and 4 hereof.
The Company further agrees to waive the defense in any action for specific
performance that a remedy at law would be adequate.

     (b) No Inconsistent Agreements. The Company will not, on or after the date
of this Agreement, enter into any agreement with respect to its securities that
is inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof. The Company has not previously
entered into, nor is currently a party to, any agreement granting any
registration rights with respect to its securities to any Person that would
require such securities to be included in any Registration Statement filed
hereunder. 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 securities under any agreement in effect on the date hereof.

     (c) Amendments and Waivers. The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to or departures from
the provisions hereof may not be given unless (i) in the case of Section 5
hereof and this Section 10(c)(i), the Company has obtained the written consent
of Holders of all outstanding Transfer Restricted Securities and (ii) in the
case of all other provisions hereof, the Company has obtained the written
consent of Holders of a majority of the outstanding principal amount at maturity
of Transfer Restricted Securities (excluding Transfer Restricted Securities held
by the Company or its Affiliates). Notwithstanding the foregoing, a waiver or
consent to departure from the provisions hereof that relates exclusively to the
rights of Holders whose Transfer Restricted Securities are being tendered
pursuant to the Exchange Offer, and that does not affect directly or indirectly
the rights of other Holders whose Transfer Restricted Securities are not being
tendered pursuant to such Exchange Offer, may be given by the Holders of a
majority of the outstanding principal amount at maturity of Transfer Restricted
Securities subject to such Exchange Offer.

     (d) Third Party Beneficiary. The Holders shall be third party beneficiaries
to the agreements made hereunder between the Company, on the one hand, and the
Initial Purchaser, on the other hand, and shall have the right to enforce such
agreements directly to the extent they may deem such enforcement necessary or
advisable to protect its rights or the rights of Holders hereunder.

                                        12
<PAGE>

     (e) Notices. All notices and other communications provided for or permitted
hereunder shall be made in writing by hand-delivery, first-class mail
(registered or certified, return receipt requested), telex, telecopier or air
courier guaranteeing overnight delivery:

          (i) if to a Holder, at the address set forth on the records of the
     Registrar under the Indenture, with a copy to the Registrar under the
     Indenture; and

          (ii) if to the Company:

     Haights Cross Communications, Inc.
     10 New King Street
     White Plains, New York 10604
     Telecopier No.: (914) 289-9401
     Attention: Chief Financial Officer

     With a copy to:

     Goodwin Procter LLP
     53 State Street
     Exchange Place
     Boston, Massachusetts 02109
     Telecopier No.: (617) 523-1231
     Attention: David F. Dietz, P.C.

     All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five Business
Days after being deposited in the mail, postage prepaid, if mailed; when receipt
acknowledged, if telecopied; and on the next Business Day, if timely delivered
to an air courier guaranteeing overnight delivery.

     Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee at the
address specified in the Indenture.

     (f) Successors and Assigns. This Agreement shall inure to the benefit of
and be binding upon the successors and assigns of each of the parties, including
without limitation and without the need for an express assignment, subsequent
Holders; provided that nothing herein shall be deemed to permit any assignment,
transfer or other disposition of Transfer Restricted Securities in violation of
the terms hereof or of the Purchase Agreement or the Indenture. If any
transferee of any Holder shall acquire Transfer Restricted Securities in any
manner, whether by operation of law or otherwise, such Transfer Restricted
Securities shall be held subject to all of the terms of this Agreement, and by
taking and holding such Transfer Restricted Securities 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.

     (g) 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.

     (h) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

     (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE
CONFLICT OF LAW RULES THEREOF.

     (j) Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

                                        13
<PAGE>

     (k) Entire Agreement. This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein
with respect to the registration rights granted with respect to the Transfer
Restricted Securities. This Agreement supersedes all prior agreements and
understandings between the parties with respect to such subject matter.

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

                                          HAIGHTS CROSS COMMUNICATIONS, INC.

                                          By:      /s/ PAUL J. CRECCA
                                            ------------------------------------

                                          Name:          Paul J. Crecca
                                          --------------------------------------
                                           Title: Executive Vice President and
                                                 Chief Financial Officer

                                          BEAR, STEARNS & CO. INC.

                                          By:        /s/ JOHN FARGIS
                                            ------------------------------------

                                          Name:            John Fargis
                                          --------------------------------------
                                            Title: Senior Managing Director

                                        14

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