Document:

Exhibit
10.2

 

AMENDMENT
TO EMPLOYMENT AGREEMENT

 

This
Amendment to Employment Agreement (this “Amendment”) is by and between Michael J. Witherill (“Executive”)
and Rivulet Media, Inc., a Delaware corporation (the “Company”).

 

WHEREAS,
the parties entered into that certain Employment Agreement dated August 12, 2020 (the “Employment Agreement”);
and

 

WHEREAS,
the parties desire to amend the Employment Agreement under the terms and conditions set forth herein.

 

NOW
THEREFORE, in consideration of the promises and the mutual agreements, covenants, and provisions contained in this Amendment,
the parties agree as follows:

 

1.       Amendment.
The last sentence of Section 2(b) of the Employment Agreement is replaced in its entirety to read as follows:

 

“Notwithstanding
this Section 2(b), Executive will be permitted (i) to serve as a director of not for profit and for profit businesses that do
not compete with the Company, and (ii) to serve as an officer and director of Chee Corp., a Nevada corporation.”

 

2.       Effective
Date. This Amendment is effective as of September 18, 2020.

 

3.       Employment
Agreement Otherwise Remains in Effect. All other provisions of the Employment Agreement continue in full force and effect.

 

4.       Counterparts.
This Amendment may be executed in two or more counterparts, each of which will be deemed an original and all of which together
will constitute one and the same instrument.

 

5.       Governing
Law. This Amendment will be construed in accord with and any dispute or controversy arising from any breach or asserted breach
of this Amendment will be governed by the laws of the State of Arizona.

 

(Signature
page follows)

    1

     

    

IN
WITNESS WHEREOF, the parties have executed this Amendment as of January 26, 2021.

 

	 	EXECUTIVE
	 	 	 
	 	/s/
    Michael J. Witherill
	 	Michael
    J. Witherill
	 	 
	 	COMPANY
	 	Rivulet
    Media, Inc., a Delaware corporation
	 	 	 
	 	By:	/s/
    Aaron Klusman
	 	 	Aaron
    Klusman, CEO

2ex41vector-indentureexec

  Exhibit 4.1      VECTOR GROUP LTD.  AND EACH OF THE GUARANTORS PARTY HERETO  5.75% SENIOR SECURED NOTES DUE 2029    INDENTURE  Dated as of January 28, 2021    U.S. BANK NATIONAL ASSOCIATION  as Trustee and as Collateral Agent      

 

TABLE OF CONTENTS  Page  ARTICLE 1  DEFINITIONS AND INCORPORATION  BY REFERENCE  Section 1.01 Definitions. ................................................................................................................... 1  Section 1.02 Other Definitions. ....................................................................................................... 23  Section 1.03 Trust Indenture Act Not Applicable. .......................................................................... 23  Section 1.04 Rules of Construction. ................................................................................................ 23  ARTICLE 2  THE NOTES  Section 2.01 Form and Dating. ........................................................................................................ 24  Section 2.02 Execution and Authentication. ................................................................................... 24  Section 2.03 Registrar and Paying Agent. ....................................................................................... 25  Section 2.04 Paying Agent to Hold Money in Trust. ...................................................................... 25  Section 2.05 Holder Lists. ............................................................................................................... 26  Section 2.06 Transfer and Exchange. .............................................................................................. 26  Section 2.07 Replacement Notes. .................................................................................................... 36  Section 2.08 Outstanding Notes. ..................................................................................................... 36  Section 2.09 Treasury Notes. .......................................................................................................... 37  Section 2.10 Temporary Notes. ....................................................................................................... 37  Section 2.11 Cancellation. ............................................................................................................... 37  Section 2.12 Defaulted Interest. ...................................................................................................... 37  ARTICLE 3  REDEMPTION AND PREPAYMENT  Section 3.01 Notices to Trustee. ...................................................................................................... 37  Section 3.02 Selection of Notes to Be Redeemed or Purchased. .................................................... 38  Section 3.03 Notice of Redemption. ............................................................................................... 38  Section 3.04 Effect of Notice of Redemption. ................................................................................ 39  Section 3.05 Deposit of Redemption or Purchase Price. ................................................................. 39  Section 3.06 Notes Redeemed or Purchased in Part........................................................................ 40  Section 3.07 Optional Redemption. ................................................................................................ 40  Section 3.08 Mandatory Redemption; Open Market Purchases. ..................................................... 41  Section 3.09 Offer to Purchase by Application of Excess Proceeds. .............................................. 41  ARTICLE 4  COVENANTS  Section 4.01 Payment of Notes. ...................................................................................................... 43  Section 4.02 Maintenance of Office or Agency. ............................................................................. 43  Section 4.03 Reports. ...................................................................................................................... 44  Section 4.04 Compliance Certificate. .............................................................................................. 45  Section 4.05 Taxes. ......................................................................................................................... 45  Section 4.06 Stay, Extension and Usury Laws. ............................................................................... 46  Section 4.07 Restricted Payments. .................................................................................................. 46  Section 4.08 Dividend and Other Payment Restrictions Affecting Subsidiaries. ........................... 48  Section 4.09 Incurrence of Indebtedness and Issuance of Preferred Stock. .................................... 49  Section 4.10 Asset Sales. ................................................................................................................. 52  

 

Page      Section 4.11 Transactions with Affiliates. ...................................................................................... 54  Section 4.12 Liens. .......................................................................................................................... 55  Section 4.13 Corporate Existence. .................................................................................................. 56  Section 4.14 Offer to Repurchase Upon Change of Control. .......................................................... 56  Section 4.15 Limitation on Sale and Leaseback Transactions. ....................................................... 57  Section 4.16 Payments for Consent. ................................................................................................ 58  Section 4.17 Additional Note Guarantees. ...................................................................................... 58  Section 4.18 Unrestricted Subsidiaries. ........................................................................................... 58  ARTICLE 5  SUCCESSORS  Section 5.01 Merger, Consolidation, or Sale of Assets. .................................................................. 58  Section 5.02 Successor Corporation Substituted. ............................................................................ 60  ARTICLE 6  DEFAULTS AND REMEDIES  Section 6.01 Events of Default. ....................................................................................................... 60  Section 6.02 Acceleration. .............................................................................................................. 62  Section 6.03 Other Remedies. ......................................................................................................... 62  Section 6.04 Waiver of Past Defaults. ............................................................................................. 62  Section 6.05 Control by Majority. ................................................................................................... 63  Section 6.06 Limitation on Suits. .................................................................................................... 63  Section 6.07 Rights of Holders of Notes to Receive Payment. ....................................................... 63  Section 6.08 Collection Suit by Trustee. ......................................................................................... 64  Section 6.09 Trustee May File Proofs of Claim. ............................................................................. 64  Section 6.10 Priorities. .................................................................................................................... 64  Section 6.11 Undertaking for Costs. ............................................................................................... 65  ARTICLE 7  TRUSTEE  Section 7.01 Duties of Trustee. ....................................................................................................... 65  Section 7.02 Rights of Trustee. ....................................................................................................... 66  Section 7.03 Individual Rights of Trustee. ...................................................................................... 67  Section 7.04 Trustee’s Disclaimer................................................................................................... 68  Section 7.05 Notice of Defaults. ..................................................................................................... 68  Section 7.06 [Reserved]. ................................................................................................................. 68  Section 7.07 Compensation and Indemnity. .................................................................................... 68  Section 7.08 Replacement of Trustee. ............................................................................................. 69  Section 7.09 Successor Trustee by Merger, etc. .............................................................................. 70  Section 7.10 Eligibility; Disqualification. ....................................................................................... 70  ARTICLE 8  LEGAL DEFEASANCE AND COVENANT DEFEASANCE  Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance. .................................... 70  Section 8.02 Legal Defeasance and Discharge................................................................................ 70  Section 8.03 Covenant Defeasance. ................................................................................................ 71  Section 8.04 Conditions to Legal or Covenant Defeasance. ........................................................... 71  Section 8.05 Deposited Money and Government Securities to be Held in Trust; Other  Miscellaneous Provisions. .......................................................................................... 72  Section 8.06 Repayment to Company. ............................................................................................ 73  Section 8.07 Reinstatement. ............................................................................................................ 73  

 

Page      ARTICLE 9  AMENDMENT, SUPPLEMENT AND WAIVER  Section 9.01 Without Consent of Holders of Notes. ....................................................................... 73  Section 9.02 With Consent of Holders of Notes. ............................................................................ 74  Section 9.03 [Reserved]. ................................................................................................................. 76  Section 9.04 Revocation and Effect of Consents. ........................................................................... 76  Section 9.05 Notation on or Exchange of Notes. ............................................................................ 76  Section 9.06 Trustee to Sign Amendments, etc. .............................................................................. 76  ARTICLE 10  COLLATERAL AND SECURITY  Section 10.01 Security. ...................................................................................................................... 76  Section 10.02 Equal and Ratable Sharing of Collateral by Holders of Parity Lien Debt. ................. 77  Section 10.03 Release of Liens in Respect of Note Guarantees. ....................................................... 77  Section 10.04 Relative Rights. .......................................................................................................... 78  Section 10.05 Further Assurances. .................................................................................................... 78  Section 10.06 Collateral Agent. ........................................................................................................ 79  Section 10.07 Authorization of Actions to Be Taken. ...................................................................... 80  Section 10.08 Perfection Opinions. ................................................................................................... 81  Section 10.09 Certificates of the Company. ...................................................................................... 81  Section 10.10 [Reserved]. ................................................................................................................. 82  Section 10.11 Environmental Indemnity. .......................................................................................... 82  ARTICLE 11  NOTE GUARANTEES  Section 11.01 Guarantee. .................................................................................................................. 83  Section 11.02 Limitation on Guarantor Liability. ............................................................................. 84  Section 11.03 Execution and Delivery of Note Guarantee................................................................ 84  Section 11.04 Guarantors May Consolidate, etc., on Certain Terms. ............................................... 84  Section 11.05 Releases. ..................................................................................................................... 85  ARTICLE 12  SATISFACTION AND DISCHARGE  Section 12.01 Satisfaction and Discharge. ........................................................................................ 86  Section 12.02 Application of Trust Money. ...................................................................................... 87  ARTICLE 13  MISCELLANEOUS  Section 13.01 [Reserved]. ................................................................................................................. 88  Section 13.02 Notices. ....................................................................................................................... 88  Section 13.03 [Reserved]. ................................................................................................................. 89  Section 13.04 Certificate and Opinion as to Conditions Precedent. .................................................. 89  Section 13.05 Statements Required in Certificate or Opinion. ......................................................... 89  Section 13.06 Rules by Trustee and Agents. ..................................................................................... 89  Section 13.07 No Personal Liability of Directors, Officers, Employees and Stockholders. ............. 89  Section 13.08 Governing Law. .......................................................................................................... 90  Section 13.09 No Adverse Interpretation of Other Agreements. ...................................................... 90  Section 13.10 Successors. ................................................................................................................. 90  Section 13.11 Severability. ................................................................................................................ 90  Section 13.12 Counterpart Originals. ................................................................................................ 90  

 

Page      Section 13.13 Table of Contents, Headings, etc. ............................................................................... 91  Section 13.14 Waiver of Jury Trial. .................................................................................................. 91  Section 13.15 Security Advice Waiver. ............................................................................................ 91  Section 13.16 USA Patriot Act. ........................................................................................................ 91    EXHIBITS  Exhibit A FORM OF NOTE  Exhibit B FORM OF CERTIFICATE OF TRANSFER  Exhibit C FORM OF CERTIFICATE OF EXCHANGE  Exhibit D FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL ACCREDITED  INVESTOR  Exhibit E FORM OF NOTATION OF GUARANTEE  Exhibit F FORM OF SUPPLEMENTAL INDENTURE      

 

  1    INDENTURE dated as of January 28, 2021 among Vector Group Ltd., a Delaware corporation,  the Guarantors (as defined) and U.S. Bank National Association as Trustee (as defined) and as Collateral  Agent (as defined).  The Company, the Guarantors and the Trustee agree as follows for the benefit of each other and  for the equal and ratable benefit of the Holders (as defined) of the 5.75% Senior Secured Notes due 2029  (the “Notes”):  ARTICLE 1  DEFINITIONS AND INCORPORATION  BY REFERENCE  Section 1.01 Definitions.  “100 Maple LLC” means 100 Maple LLC, a Delaware limited liability company.  “144A Global Note” means each Global Note substantially in the form of Exhibit A hereto  bearing the Global Note Legend and the Private Placement Legend and deposited with or on behalf of,  and registered in the name of, the Depositary or its nominee that is issued in an aggregate denomination  equal to the outstanding principal amount of the Notes sold in reliance on Rule 144A.  “ABL Agent” means Wells Fargo Bank, National Association in its capacity as administrative and  collateral agent under the Liggett Credit Agreement, and also includes any successor, replacement or  agent acting on its behalf as ABL Agent for the ABL Secured Parties under the ABL Documents.   “ABL Documents” has the meaning set forth in the Intercreditor Agreement.  “ABL Lender” has the meaning set forth in the Intercreditor Agreement.  “Accelerated Note Conversion” means the conversion in advance of the scheduled conversion by  their terms of any convertible debt securities issued by the Company that are held by Affiliates of the  Company, in exchange for the payment by the Company to such Affiliates of accrued interest and  additional Equity Interests in the Company (other than Disqualified Stock).  “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 Guarantor 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 Guarantor 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  

 

  2    the ownership of voting securities, by agreement or otherwise; provided, however, that beneficial  ownership of 10% or more of the Voting Stock of a Person will be deemed to be control.  For purposes of  this definition, the terms “controlling,” “controlled by” and “under common control with” have  correlative meanings.  “Agent” means any Registrar, co-registrar, Paying Agent or additional paying agent.  “Applicable Premium” means, with respect to any Note on any redemption date, as determined by  the Company, the greater of:  (1) 1.0% of the principal amount of the Note; or   (2) the excess of:  (a) the present value at such redemption date of (i) the redemption  price of the Note at February 1, 2024 (such redemption price being set forth in the table appearing  in Section 3.07 hereof) plus (ii) all required interest payments due on the Note through  February 1, 2024 (excluding accrued but unpaid interest to the redemption date), computed using  a discount rate equal to the Treasury Rate as of such redemption date plus 50 basis points; over  (b) the principal amount of the Note.  Calculation of the Applicable Premium will be made by the Company or on behalf of the Company by  such Person as the Company shall designate; provided, however, that such calculation shall not be a duty  or obligation of the Trustee or Collateral 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,  however, that the sale, lease, conveyance or other disposition of all or substantially all of the  assets of the Company and the Guarantors taken as a whole will be governed by the provisions of  Section 4.14 and/or the provisions of Section 5.01 and not by the provisions of Section 4.10; and  (2) the issuance or sale of Equity Interests in any of the Guarantors.  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 having  a Fair Market Value of less than $3.0 million;  (2) a transfer of assets between or among the Company and the Guarantors;  (3) an issuance of Equity Interests by a Guarantor to the Company or to another  Guarantor;  (4) the sale, lease, sublease, license, sublicense, conveyance or other disposition of  products, services, inventory, or accounts receivable and related assets (including participations  therein) in the ordinary course of business, including leases with respect to facilities that are  temporarily not in use or pending their disposition, and any sale or other disposition of damaged,  

 

  3    worn-out or obsolete assets in the ordinary course of business or any other property that is  uneconomic or no longer useful to the conduct of the business of the Company or the Guarantors;  (5) the sale or other disposition of cash or Cash Equivalents or Investments that are  Permitted Investments;  (6) a Restricted Payment that does not violate the provisions of Section 4.07 or a  Permitted Investment.  (7) the licensing of intellectual property to third Persons on customary terms as  determined in good faith by the Board of Directors of the Company;  (8) to the extent allowable under Section 1031 of the Internal Revenue Code of 1986,  any exchange of like property (excluding any boot thereon) for use in the business of the  Company or its Subsidiaries;  (9) transfers of property subject to casualty or condemnation proceedings; and  (10) the granting of Permitted Liens.  “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    (4) with respect to any other Person, the board or committee of such Person serving a  similar function.  “Business Day” means any day other than a Legal Holiday.  “Capital Lease Obligation” means, at the time any determination is to be made, the amount of the  liability in respect of a capital lease that would at that time be required to be capitalized on a balance sheet  prepared in accordance with GAAP as in effect on January 1, 2019, 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; provided that,  notwithstanding the foregoing, in no event shall any lease that would have been categorized as an  operating lease as determined in accordance with GAAP prior to giving effect to the Accounting  Standards Codification Topic 842, Leases, or any other changes in GAAP subsequent to the date of this  Indenture, be considered a capital lease for purposes of this Indenture.  “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 and, solely for purposes of the definition of “Permitted  Investments,” any national currency of any other country in which the Company or its Guarantors  do business;  (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, time deposits and eurodollar time deposits with maturities  of one year or less from the date of acquisition, bankers’ acceptances with maturities not  exceeding one year and overnight bank deposits, in each case, with any domestic commercial  bank or commercial banking institution that is a member of the Federal Reserve System 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 seven days for underlying  securities of the types described in clauses (2) and (3) above or (7) below entered into with any  financial institution meeting the qualifications specified in clause (3) above or (7) below;  

 

  5    (5) commercial paper having one of the two highest ratings obtainable from  Moody’s or S&P and, in each case, maturing within one year after the date of acquisition;  (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; and  (7) marketable general obligations issued by any state of the United States or any  political subdivision of any such state or any public instrumentality thereof maturing within one  year of the date of acquisition and at the time of acquisition having one of the two highest ratings  obtainable from S&P or Moody’s.  “Change of Control” means the occurrence of any of the following:  (1) any sale, transfer, lease, conveyance or other disposition (in one transaction or a  series of related transactions) of all or substantially all of the Company’s property or assets to any  person or group of related persons (other than to any of the Company’s wholly owned  subsidiaries) as defined in Sections 13(d) and 14(d) of the Exchange Act, including any group  acting for the purpose of acquiring, holding, voting or disposing of securities within the meaning  of Rule 13d-5(b)(1) under the Exchange Act, other than any sale, transfer, lease, conveyance or  other disposition in which (x) persons who, directly or indirectly, are beneficial owners (as  defined in Rule 13d-3 under the Exchange Act) of the Company’s Voting Stock immediately  prior to such transaction, beneficially own, directly or indirectly, immediately after such  transaction at least a majority of the total voting power of the outstanding Voting Stock of the  corporation or entity purchasing such properties or assets in such sale, lease, conveyance or other  disposition and (y) persons who, directly or indirectly, are beneficial owners of the Company’s  Voting Stock immediately prior to such transaction, beneficially own, directly or indirectly,  immediately after such transaction shares of common stock of the corporation or entity  purchasing such properties or assets in such sale, lease, conveyance or other disposition in a  proportion that does not, on the whole, materially differ from such ownership immediately prior  to the transaction;  (2) the adoption of a plan relating to the liquidation or dissolution of the Company;  (3) if any “person” or “group” (as these terms are used for purposes of Sections  13(d) and 14(d) of the Exchange Act) other than the Company, its subsidiaries, and the  Company’s or its subsidiaries’ employee benefit plans becomes the “beneficial owner” (as  defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of more than 50% of the  aggregate ordinary voting power represented by the Company’s issued and outstanding stock; or  (4) the Company consolidates with, or merges with or into, another person or any  person consolidates with, or merges with or into, the Company, other than any consolidation or  merger in which (x) persons who, directly or indirectly, are beneficial owners (as defined in Rule  13d-3 under the Exchange Act) of the Company’s Voting Stock immediately prior to such  transaction, beneficially own, directly or indirectly, immediately after such transaction at least a  majority of the voting power of the outstanding Voting Stock of the continuing or surviving  corporation or entity and (y) persons who, directly or indirectly, are beneficial owners of the  Company’s Voting Stock immediately prior to such transaction beneficially own, directly or  indirectly, immediately after such transaction shares of common stock of the continuing or  surviving corporation or entity in a proportion that does not, on the whole, materially differ from  such ownership immediately prior to the transaction.  

 

  6    “Clearstream” means Clearstream Banking, S.A.  “Collateral” means the Pledged Securities and the properties and assets at any time owned or  acquired by any of the Pledgors as provided in the Collateral Documents and this Indenture other than the  Excluded Assets and except:  (1) any properties and assets in which the Collateral Agent is required to release its  Liens pursuant to the provisions of the Intercreditor Agreement; and  (2) any properties and assets that no longer secure the Note Guarantees or any  Obligations in respect thereof pursuant to the provisions of Section 10.03 hereof,   provided that, if such Liens are required to be released as a result of the sale, transfer or other disposition  of any properties or assets of any of the Guarantors, such assets or properties will cease to be excluded  from the Collateral if any of the Guarantors thereafter acquires or reacquires such assets or properties.  “Collateral Agent” means U.S. Bank National Association, in its capacity as collateral agent  under this Indenture, the Intercreditor Agreement and the Collateral Documents, together with its  successors in such capacity.  “Collateral Documents” means all security agreements, pledge agreements, collateral  assignments, mortgages, deeds of trust, collateral agency agreements or other grants or transfers for  security executed and delivered by any Guarantor creating (or purporting to create) a Parity Lien upon  Collateral in favor of the Collateral Agent for the benefit of the Holders, in each case, as amended,  modified, renewed, restated or replaced, in whole or in part, from time to time.  “Company” means Vector Group Ltd., a Delaware corporation, and any and all successors  thereto.  “Consolidated EBITDA” means for any period the Consolidated Net Income for such period, after  giving pro forma effect to any Investment or acquisition or disposition of a business permitted under this  Indenture as if such Investment, acquisition or disposition occurred on the first day of the relevant period,  in accordance with Regulation S-X, plus, without duplication:  (1) provision for taxes based on income or profits or capital, including state, city and  county income, franchise and similar taxes, foreign withholding taxes and foreign unreimbursed  value added taxes of the Company and the Guarantors for such period, to the extent that such  provision for taxes was deducted in computing such Consolidated Net Income; plus  (2) the Fixed Charges of the Company and the Guarantors (including amortization of  deferred financing fees and changes in fair value of derivatives embedded within convertible  debt) for such period, to the extent that such Fixed Charges were deducted in computing such  Consolidated Net Income; plus  (3) depreciation, amortization (including amortization of intangibles 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 the Company and the Guarantors for such period to the extent that such  depreciation, amortization and other non-cash expenses were deducted in computing such  Consolidated Net Income; plus  

 

  7    (4) any other non-cash charges (including impairment charges, write-offs of assets  and the impact of purchase accounting but excluding any such charge that represents an accrual  or reserve for a cash expenditure for a future period), to the extent that such non-cash charges  were deducted in computing such Consolidated Net Income; plus  (5) any one-time, non-recurring expenses or charges related to any Equity Offering,  Permitted Investment, acquisition, recapitalization or incurrence of Indebtedness permitted to be  incurred under this Indenture (including a refinancing thereof), whether or not consummated, in  each case to the extent such expenses or charges were deducted in computing Consolidated Net  Income; minus  (6) non-cash items increasing such Consolidated Net Income for such period, other  than (a) the accrual of revenue in the ordinary course of business and (b) reversals of prior  accruals or reserves for non-cash items previously excluded from the definition of Consolidated  EBITDA pursuant to clause (3) above, in each case, on a consolidated basis and determined in  accordance with GAAP.  “Consolidated Net Income” means for any period the aggregate of the Net Income of the  Company and the Guarantors 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 Guarantor 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 Company or a Guarantor;  (2) the Net Income of any Guarantor will be excluded to the extent that the  declaration or payment of dividends or similar distributions by that Guarantor 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 or instrument, judgment, decree, order, statute, rule or governmental regulation  applicable to that Guarantor or its stockholders (except to the extent of the amount of dividends or  similar distributions paid in cash to the Company or a Guarantor during such period);  (3) the cumulative effect of a change in accounting principles will be excluded;  (4) any restructuring charge or reserve to the extent that such expenses or charges  were deducted in computing such Consolidated Net Income, including any restructuring costs  incurred in connection with acquisitions after the date of issuance of the Notes and costs related  to the closure and/or consolidation of facilities or work force reduction and severance and  relocation costs incurred in connection therewith, will be excluded;  (5) any unrealized gains and losses due solely to fluctuations in currency values, the  value of Investment Securities or the value of Long-Term Investments, and the related tax effects  according to GAAP will be excluded;  (6) non-cash compensation recorded from grants of stock appreciation or similar  rights, stock options, restricted stock or other rights will be excluded;  (7) after-tax gains and losses attributable to discontinued operations will be  excluded;  

 

  8    (8) the after-tax effect of extraordinary, non-recurring or unusual gains or losses (less  all fees and expenses relating thereto) or expenses, severance costs and curtailments or  modifications or terminations to pension and post-retirement benefit plans will be excluded;  (9) any impairment charge or asset write-off, in each case pursuant to GAAP and the  amortization of intangibles arising pursuant to GAAP will be excluded; and  (10) any deferred financing costs written off and premiums paid in connection with  any early extinguishment of Indebtedness will be excluded.  “Core Investments” means investments, whether as a long or short position, in equity, debt or  derivative securities, including puts, options, warrants or calls, of any Person, including hedge funds,  private equity funds or other investment entities, in the ordinary course of the Company’s or any  Guarantor’s business, but excluding any investment in (i) any Unrestricted Subsidiary of the Company, or  (ii) any joint venture to which the Company, any Guarantor or any Unrestricted Subsidiary is a party.  “Corporate Trust Office of the Trustee” will be at the address of the Trustee specified in Section  13.02 hereof or such other address as to which the Trustee may give notice to the Company.  “Credit Agreement Borrower” means each of Liggett Group LLC, 100 Maple LLC and any other  Guarantor that becomes a borrower under the Liggett Credit Agreement.  “Credit Facilities” means, one or more debt facilities (including the Liggett 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 (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.  “Custodian” means the Trustee, as custodian with respect to the Notes in global form, or any  successor entity thereto.  “Default” means any event that is, or with the passage of time or the giving of notice or both  would be, an Event of Default.  “Definitive Note” means a certificated Note registered in the name of the Holder thereof and  issued in accordance with Section 2.06 hereof, substantially in the form of Exhibit A hereto except that  such Note shall not bear the Global Note Legend and shall not have the “Schedule of Exchanges of  Interests in the Global Note” attached thereto.  “Depositary” means, with respect to the Notes issuable or issued in whole or in part in global  form, the Person specified in Section 2.03 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 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.   

 

  9    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 with  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 the Guarantors may  become 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 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.  “Environmental Claim” means any investigation, notice, notice of violation, claim, action, suit,  proceeding, demand, abatement order or other order or directive (conditional or otherwise), by any  Governmental Authority or any other Person, arising (i) pursuant to or in connection with any actual or  alleged violation of any Environmental Law; (ii) in connection with any Hazardous Material or any actual  or alleged Hazardous Materials Activity; or (iii) in connection with any actual or alleged damage, injury,  threat or harm to health, safety, natural resources or the environment.  “Environmental Laws” means any and all current or future foreign or domestic, federal or state  (or any subdivision of either of them), statutes, ordinances, orders, rules, regulations, judgments,  Governmental Authorizations, or any other requirements of Governmental Authorities relating to (i)  environmental matters, including those relating to any Hazardous Materials Activity; (ii) the generation,  use, storage, transportation or disposal of Hazardous Materials; or (iii) occupational safety and health,  industrial hygiene, land use or the protection of human, plant or animal health or welfare, in any manner  applicable to the Company or any of the Guarantors or any Facility.  “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 public or private sale of common stock or preferred stock of the  Company (excluding Disqualified Stock) or contribution to the capital of the Company, other than:  (1) public offerings with respect to any such Person’s common stock registered on  Form S-8; and  (2) issuances to the Company or any Subsidiary of the Company.  “Euroclear” means Euroclear Bank, S.A./N.V., as operator of the Euroclear system.  “Eve” means Eve Holdings LLC, a Delaware limited liability company.  “Exchange Act” means the Securities Exchange Act of 1934, as amended.  “Excluded Assets” means any property, right or interest in which a security interest may not be  granted under applicable law; real property, other than the Mebane Facility and any real property that has  a Fair Market Value in excess of $12.5 million; equipment subject to purchase money or other financing;  investment property or securities, including securities of Affiliates, other than the Pledged Securities; cash  and deposit accounts; foreign intellectual property and all intent-to-use trademark applications; aircraft,  

 

  10    aircraft engines and motor vehicles; and leasehold interests in real property, each as defined under the  UCC (if applicable).  “Existing Indebtedness” means Indebtedness of the Company and the Guarantors (other than  Indebtedness under the Liggett Credit Agreement) in existence on the date of this Indenture, until such  amounts are repaid.  “Facility” means any real property (including all buildings, fixtures or other improvements  located thereon) now, hereafter or heretofore owned, leased, operated or used by the Company or any of  the Guarantors or any of their respective predecessors or Affiliates.  “Existing Unsecured Notes” means the Company’s outstanding $555.0 million aggregate  principal amount of 10.500% senior notes due 2026, issued pursuant to the Indenture dated as of  November 2, 2018, between the Company, as issuer, and U.S. Bank National Association, as trustee, as  amended, modified, supplemented, renewed, restated, refinanced, replaced or restructured (whether upon  or after termination or otherwise) in whole or in part from time to time.  “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).  “First Priority Debt” has the meaning set forth in the Intercreditor Agreement as in effect on the  date of this Indenture.  “First Priority Lien” means a Lien to the extent it secures First Priority Debt.  “Fixed Charges” means, with respect to the Company and the Guarantors for any period, the sum,  without duplication, of:  (1) the consolidated interest expense of the Company and the Guarantors for such  period, whether paid or accrued, including amortization of debt issuance costs, beneficial  conversion features, derivatives embedded within convertible debt 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 the Company and the Guarantors that was  capitalized during such period; plus  (3) any interest on Indebtedness of another Person that is guaranteed by the  Company or any of the Guarantors or secured by a Lien on assets of the Company or any of the  Guarantors, 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 the Company or any of the Guarantors, other than  dividends on Equity Interests payable solely in Equity Interests of the Company (other than  Disqualified Stock) or to the Company or a Guarantor, times (b) a fraction, the numerator of  which is one and the denominator of which is one minus the then current combined federal, state  

 

  11    and local statutory tax rate of such Person, expressed as a decimal, in each case, determined on a  consolidated basis in accordance with GAAP.  “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 (except for purposes of the definition of “Capital Lease Obligations”) are in effect on  January 1, 2020, and without giving effect to any changes adopted or required to be adopted by the  Company after such date as a result of any actual or proposed update to accounting standards.  “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 A hereto and that bears the Global Note Legend and that  has the “Schedule of Exchanges of Interests in the Global Note” attached thereto, issued in accordance  with Section 2.01, 2.06(b)(3), 2.06(b)(4), 2.06(d)(2) or 2.06(f) 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 by way of a  pledge of assets or through letters of credit or reimbursement agreements in respect thereof, of all or any  part of any Indebtedness (whether arising by virtue of partnership arrangements, or by agreements to  keep-well, to purchase assets, goods, securities or services, to take or pay or to maintain financial  statement conditions or otherwise).  “Guarantors” means each of:  (1) the Liggett Guarantors;  (2) the Domestic Subsidiaries of the Company on the date of this Indenture, other  than (i) the New Valley Subsidiaries, (ii) VT Equipment Leasing LLC, (iii) Multi Solutions II,  Inc. and (iv) Multi Soft II, Inc.; and   (3) any other Subsidiary of the Company that executes a Note Guarantee in  accordance with the provisions of this Indenture,   and their respective successors and assigns, in each case, until the Note Guarantee of such Person has  been released in accordance with the provisions of this Indenture.  “Hazardous Materials” means any chemical, material or substance, exposure to which is  prohibited, limited or regulated by any Governmental Authority or which reasonably could be expected to  pose a hazard to the health and safety of the owners, occupants or any Persons in the vicinity of any  Facility or to the indoor or outdoor environment.  “Hazardous Materials Activity” means any past, current, proposed or threatened activity, event or  occurrence involving any Hazardous Materials, including the use, manufacture, possession, storage,  

 

  12    holding, presence, existence, location, release, threatened release, discharge, placement, generation,  transportation, processing, construction, treatment, abatement, removal, remediation, disposal, disposition  or handling of any Hazardous Materials, and any corrective action or response action with respect to any  of the foregoing.  “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 each Global Note substantially in the form of Exhibit A hereto bearing  the Global Note Legend and the Private Placement Legend and deposited with or on behalf of, and  registered in the name of, the Depositary or its nominee that is issued in an aggregate denomination equal  to the outstanding principal amount 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, except any such balance that constitutes an accrued expense or trade payable arising  in the ordinary course of business and not overdue by more than 90 days; 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  

 

  13    Person) and, to the extent not otherwise included, the Guarantee by the specified Person of any  Indebtedness of any other Person.  “Indemnified Liabilities” means, collectively, any and all liabilities, obligations, losses, damages  (including natural resource damages), penalties, claims (including Environmental Claims), costs  (including the costs of any investigation, study, sampling, testing, abatement, cleanup, removal,  remediation or other response action necessary to remove, remediate, clean up or abate any Hazardous  Materials Activity), expenses and disbursements of any kind or nature whatsoever (including the  reasonable fees and disbursements of counsel for Indemnitees in connection with any investigative,  administrative or judicial proceeding commenced or threatened by any Person, and any fees or expenses  incurred by Indemnitees in enforcing this indemnity), whether direct, indirect or consequential and  whether based on Environmental Laws, on common law or equitable cause or on contract or otherwise,  that may be imposed on, incurred by, or asserted against any such Indemnitee, in any manner relating to  or arising out of any Environmental Claim or any Hazardous Materials Activity relating to or arising  from, directly or indirectly, any past or present activity, operation, land ownership, or practice of the  Company or any of the Guarantors.  “Indenture” means this Indenture, as amended, supplemented, modified, renewed, restated or  replaced, in whole or in part, 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 $875.0 million aggregate principal amount of Notes issued under  this Indenture on the date hereof.  “Initial Purchaser” means Jefferies LLC.  “Institutional Accredited Investor” means an institution that is an “accredited investor” as defined  in Rule 501(a)(1), (2), (3) or (7) under the Securities Act who is not also a QIB.  “Intercreditor Agreement” means that certain Second Amended and Restated Intercreditor and  Lien Subordination Agreement, dated January 28, 2021, by and among Wells Fargo Bank, National  Association, as ABL Agent, U.S. Bank National Association, as Collateral Agent, Liggett Group LLC, as  an initial borrower, 100 Maple LLC, as an initial borrower, and the other borrowers from time to time  party thereto.  “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),  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.  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.  “Investment Securities” means investment securities classified as such under GAAP.  “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  

 

  14    next succeeding day that is not a Legal Holiday, and no interest shall accrue on such payment for the  intervening period.  “Leverage Ratio” means the ratio of (i) the sum of (A) the aggregate outstanding amount of  Indebtedness of the Company and the Guarantors as of the last day of the most recently ended fiscal  quarter for which financial statements are internally available as of the date of calculation on a combined  consolidated basis in accordance with GAAP, less cash, cash equivalents, the Fair Market Value of  Investment Securities and the Fair Market Value of Long-Term Investments of the Company and the  Guarantors, plus (B) the aggregate outstanding amount of Indebtedness incurred in connection with  margining of Core Investments (to the extent not included in Indebtedness under clause (i)(A) above),  plus (C) the aggregate liquidation preference of all outstanding Disqualified Stock of the Company as of  the last day of such fiscal quarter to (ii) the aggregate Consolidated EBITDA of the Company for the last  four full fiscal quarters for which financial statements are internally available ending on or prior to the  date of determination.  Notwithstanding the foregoing, to the extent that Douglas Elliman Realty LLC, or  any successor thereto, is classified on the Company’s or any Guarantor’s balance sheet as a Long Term  Investment, then the book value, rather than the Fair Market Value, of such Long Term Investment will  be used for purposes of the foregoing calculation.  “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.  “Liggett Credit Agreement” means that certain Third Amended and Restated Credit Agreement,  dated as of January 14, 2015, by and among Wells Fargo Bank, National Association, as administrative  agent and collateral agent, Wells Fargo, National Association, as lender, Liggett Group LLC and 100  Maple LLC, as borrowers, 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, modified, supplemented, renewed, restated, refinanced, replaced or restructured  (whether upon or after termination or otherwise) in whole or in part from time to time.  “Liggett Group LLC” means Liggett Group LLC, a Delaware limited liability company.  “Liggett Guarantors” means each of Liggett Group LLC and 100 Maple LLC.  “Long-Term Investments” means long-term investments classified as such under GAAP.  “Mebane Facility” means that certain real property located in Mebane, North Carolina and owned  by 100 Maple LLC.   “Moody’s” means Moody’s Investors Service, Inc.  “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 or loss, together with all fees and expenses related thereto and any  related provision for taxes on such gain or loss, realized in connection with:  

 

  15    (a) any Asset Sale; or  (b) the disposition of any securities or Investments by such Person or any of  the Guarantors or the extinguishment of any Indebtedness of such Person or any of the  Guarantors; and  (2) any extraordinary gain or loss, together with any related provision for taxes on  such extraordinary gain or loss.  “Net Proceeds” means the aggregate cash proceeds received by the Company or any of the  Guarantors in respect of any Asset Sale (including 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 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.  “New Valley Subsidiaries” means New Valley LLC, a Delaware limited liability company, and its  Subsidiaries.  “Non-U.S. Person” means a Person who is not a U.S. Person.  “Note Guarantee” means the Guarantee by each Guarantor of the Company’s obligations under  this Indenture and the Notes, executed pursuant to the provisions of this Indenture.  “Noteholder Documents” means this Indenture, the Notes, the Note Guarantees, and the  Collateral Documents, in each case, as amended, modified, supplemented, renewed, restated or replaced,  in whole or in part, from time to time as provided thereby.  “Notes” has the meaning set forth 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 (including reimbursement obligations with respect to letters of  credit whether or not drawn), interest (including, to the extent legally permitted, all interest accrued  thereon after the commencement of any insolvency or liquidation proceeding at the rate, including any  applicable post-default rate, even if such interest is not enforceable, allowable or allowed as a claim in  such proceeding), premium (if any), fees, indemnifications, reimbursements, expenses 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, any Assistant Secretary, any Executive Vice President,  any Senior Vice President or any Vice President of such Person.  “Officers’ Certificate” means a certificate signed by the Chairman of the Board, the President,  any Executive Vice President, any Senior Vice President or any Vice President, and by the Chief  

 

  16    Financial Officer, the Treasurer, an Assistant Treasurer, the Controller, the Secretary or an Assistant  Secretary, of the Company, that meets the requirements of Section 13.05 hereof.  One of the officers  signing an Officers’ Certificate given pursuant to Section 4.04 shall be the principal executive, financial  or accounting officer of the Company.  “Opinion of Counsel” means an opinion from legal counsel who is reasonably acceptable to the  Trustee, that meets the requirements of Section 13.05 hereof.  The counsel may be an employee of or  counsel to the Company, any Subsidiary of the Company or the Trustee.  “Parity Lien” means a Lien granted under a Collateral Document to the Collateral Agent, at any  time, upon any property of any Guarantor providing security to secure Parity Lien Obligations.  “Parity Lien Debt” means:  (1) the Initial Notes; and  (2) any other Indebtedness of the Company other than intercompany Indebtedness  and Existing Indebtedness (A) pursuant to Additional Notes or (B) otherwise permitted to be  incurred under this Indenture that is, or the Guarantees of which are, secured by the Collateral  equally and ratably with the Notes and the Note Guarantees; provided that, in the case of this  clause (B), an authorized representative of the holders of such Indebtedness shall have entered  into (i) a supplement or joinder to the Intercreditor Agreement and any other documents required  by the Intercreditor Agreement, in each case, to the extent required by the Intercreditor  Agreement, and (ii) a customary intercreditor agreement with the Collateral Agent and any other  documents required by such intercreditor agreement, in each case in this clause (ii) reasonably  satisfactory to the Collateral Agent.  “Parity Lien Obligations” means Parity Lien Debt and all other Obligations in respect thereof.    “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 Investments” means:  (1) any Investment in the Company or in a Guarantor;  (2) any Investment in Cash Equivalents;  (3) any Investment by the Company or any Guarantor in a Person, if as a result of  such Investment:  (a) such Person becomes a Guarantor; 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 Guarantor;  (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.  

 

  17    (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 Guarantor, 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) loans or advances to employees made in the ordinary course of business of the  Company or any Guarantor in an aggregate principal amount not to exceed $1.0 million at any  one time outstanding;  (8) repurchases of the Notes;  (9) any Investment by the Company or any Guarantor in Core Investments;  (10) Investments represented by Hedging Obligations;  (11) Investments consisting of purchases and acquisitions of inventory, supplies,  material or equipment in the ordinary course of business or consistent with past practice;  (12) provision of services to customers, joint ventures in which the Company or a  Guarantor holds or acquires an ownership interest, strategic alliances or Unrestricted Subsidiaries  in the ordinary course of business or consistent with past practice;  (13) Investments existing on the date of this Indenture; and  (14) other Investments in any Person having an aggregate Fair Market Value  (measured on the date each such Investment was made and without giving effect to subsequent  changes in value), when taken together with all other Investments made pursuant to this clause  (14) that are at the time outstanding, not to exceed $10.0 million.  “Permitted Liens” means:  (1) Liens in favor of the ABL Agent securing First Priority Debt;  (2) Liens held by the Collateral Agent equally and ratably securing the Initial Notes  (or the Note Guarantees thereof, as applicable) and all future Parity Lien Debt and other Parity  Lien Obligations;  (3) Liens in favor of the Company or the Guarantors;  (4) Liens on property of a Person existing at the time such Person is merged with or  into or consolidated with the Company or any Guarantor; provided, however, that such Liens  were in existence prior to the 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  Guarantor;  

 

  18    (5) Liens on property (including Capital Stock) existing at the time of acquisition of  the property by the Company or any Guarantor; provided, however, that such Liens were in  existence prior to, and not incurred in contemplation of, such acquisition;  (6) Liens to secure the performance of statutory obligations (including obligations  under worker’s compensation, unemployment insurance or similar legislation), surety or appeal  bonds, performance bonds or other obligations of a like nature incurred in the ordinary course of  business, as well as obligations under the trade contracts and leases (exclusive of obligations for  the payment of borrowed money) and cash deposits in connection with acquisitions otherwise  permitted under this Indenture;  (7) Liens existing on the date of this Indenture;  (8) 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, however, that any reserve or other appropriate  provision as is required in conformity with GAAP has been made therefor;  (9) Liens imposed by law, such as carriers’, warehousemen’s, landlords’ and  mechanics’ Liens, in each case, incurred in the ordinary course of business;  (10) 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;  (11) Liens created for the benefit of (or to secure) the Notes (or the Note Guarantees);  (12) 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 Refinancing Indebtedness and (y) an amount necessary to pay  any fees and expenses (including upfront fees and original issue discount), including  premiums (including tender premiums), related to such renewal, refunding, refinancing,  replacement, defeasance or discharge;  (13) Liens to secure Indebtedness (including Capital Lease Obligations) permitted by  Section 4.09(b)(10) hereof covering only the assets acquired with or financed by such  Indebtedness;  (14) Liens arising by reason of any judgment, decree or order not giving rise to an  Event of Default so long as such Lien is adequately bonded and any appropriate legal proceedings  

 

  19    which may have been duly initiated for the review of such judgment shall not have been finally  terminated or the period within such proceedings may be initiated shall not have expired; and  (15) Liens to secure obligations permitted by Section 4.09(b)(14) hereof; provided  that such Liens do not comprise Liens on any of the Collateral.  “Permitted Prior Liens” means:  (1) Liens described in clauses (1), (4), (5), (7) or (13) of the definition of “Permitted  Liens;” and  (2) Permitted Liens that arise by operation of law and are not voluntarily granted, to  the extent entitled by law to priority over the Liens created by the Collateral Documents.  “Permitted Refinancing Indebtedness” means any Indebtedness of the Company or any Guarantor  issued in exchange for, or the net proceeds of which are used to renew, refund, refinance, replace, defease  or discharge other Indebtedness of the Company or any Guarantor (other than intercompany  Indebtedness); provided, however, that:  (1) the principal amount (or accreted value, if applicable) of such Permitted  Refinancing Indebtedness does not exceed the principal amount (or accreted value, if applicable)  of the Indebtedness renewed, refunded, refinanced, replaced, defeased or discharged (plus all  accrued interest on the Indebtedness and the amount of all fees and expenses (including upfront  fees and original issue discount), including premiums (including tender 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 renewed, refunded, refinanced,  replaced, defeased or discharged;  (3) if the Indebtedness being renewed, refunded, refinanced, replaced, defeased or  discharged is subordinated in right of payment to the Notes, such Permitted Refinancing  Indebtedness has a final 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 renewed, refunded, refinanced,  replaced, defeased or discharged;  (4) such Indebtedness is incurred either by the Company or by the Guarantor who is  the obligor on the Indebtedness being renewed, refunded, refinanced, replaced, defeased or  discharged; and  (5) such Permitted Refinancing Indebtedness, and any guarantee thereof, may only  be secured by a Lien if (a) the Indebtedness renewed, refunded, refinanced, replaced, defeased or  discharged, or any guarantee thereof, was secured by a Lien (the “Original Lien”) and (b) the  Lien securing such Permitted Refinancing Indebtedness (i) does not have a higher priority than  the Original Lien and (ii) is limited to all or part of the same property and assets that secured or,  under the written agreements pursuant to which the Original Lien arose, could secure the Original  Lien (plus improvements and accessions to such property or proceeds or distributions thereof).  

 

  20    “Person” means any individual, corporation, partnership, joint venture, association, joint-stock  company, trust, unincorporated organization, limited liability company or government or other entity.  “Pledged Securities” means all of the Capital Stock of each of Liggett Group LLC and Vector  Tobacco.  “Pledgor” means each of Liggett Group LLC, 100 Maple LLC and Vector Tobacco and any  successor thereto who is required to assume their obligations under this Indenture or the Collateral  Documents.  “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.  “Regulation S” means Regulation S promulgated under the Securities Act.  “Regulation S Global Note” means each Global Note substantially in the form of Exhibit A hereto  bearing the Global Note Legend and the Private Placement Legend and deposited with or on behalf of,  and registered in the name of, the Depositary or its nominee  that is issued in an aggregate denomination  equal to the outstanding principal amount of the Notes sold in reliance on Rule 903 of Regulation S.  “Responsible Officer,” when used with respect to the Trustee, means any officer within the  Corporate Trust 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 with direct responsibility for administering this Indenture, and also means, with  respect to a particular corporate trust matter, any other officer to whom such matter is referred because of  his knowledge of and familiarity with the particular subject.  “Restricted Definitive Note” means a Definitive Note bearing the Private Placement Legend.  “Restricted Global Note” means a Global Note bearing the Private Placement Legend.  “Restricted Investment” means an Investment other than a Permitted Investment.  “Restricted Period” means the 40-day distribution compliance period as defined in Regulation S.  “Rule 144” means Rule 144 promulgated under the Securities Act.  “Rule 144A” means Rule 144A promulgated under the Securities Act.  “Rule 903” means Rule 903 promulgated under the Securities Act.  “Rule 904” means Rule 904 promulgated under the Securities Act.  “S&P” means Standard & Poor’s Ratings Group.  “Sale of Collateral” means any Asset Sale involving a sale or other disposition of Collateral.  “SEC” means the Securities and Exchange Commission.  

 

  21    “Secured Indebtedness” means all Indebtedness of the Company and the Guarantors that is  secured by Liens on any of their assets, including, but not limited to, Indebtedness pursuant to the Liggett  Credit Agreement and the Notes.   “Secured Leverage Ratio” means the ratio calculated in accordance with the definition herein of  “Leverage Ratio” except that “Secured Indebtedness” shall be substituted for all occurrences of  “Indebtedness” in such definition.  “Securities Act” means the Securities Act of 1933, as amended.  “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.  “Springing Maturity Condition” means the condition whereby the entire aggregate principal  amount of the Existing Unsecured Notes (including, for avoidance of doubt, any amendment,  modification, supplement, renewal, restatement, refinancing, replacement or restructuring (whether upon  or after termination or otherwise) thereof)) has not been repurchased (and cancelled), redeemed, defeased,  repaid or satisfied and discharged or refinanced with Indebtedness with a maturity date that is at least 91  days after the maturity date of the Notes in full prior to the Springing Maturity Date.  “Springing Maturity Date” means the date that is 91 days before the final stated maturity date of  the Existing Unsecured Notes.   “Stated Maturity” means, with respect to any installment of interest or principal on any series of  Indebtedness, the date on which the payment of interest or principal was scheduled to be paid in the  documentation governing such Indebtedness as of the date of this Indenture, 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).  “TIA” means the Trust Indenture Act of 1939, as amended (15 U.S.C. §§ 77aaa-77bbbb).  “Treasury Rate” means, as of any redemption date, the yield to maturity as of such redemption  date of United States Treasury securities with a constant maturity (as compiled and published in the most  recent Federal Reserve Statistical Release H.15 (519) that has become publicly available at least two  Business Days prior to the redemption date (or, if such Statistical Release is no longer published, any  publicly available source of similar market data)) most nearly equal to the period from the redemption  

 

  22    date to February 1, 2024, or in the case of a satisfaction and discharge or a defeasance, at least two  Business Days prior to the date on which the Company deposits the amounts required under this  Indenture; provided, however, that if the period from the redemption date to February 1, 2024 is less than  one year, the weekly average yield on actually traded United States Treasury securities adjusted to a  constant maturity of one year will be used.  “Trustee” means U.S. Bank National Association until a successor replaces it in accordance with  the applicable provisions of this Indenture and thereafter means the successor serving hereunder.  “Unrestricted Definitive Note” means a Definitive Note that does not bear and is not required to  bear the Private Placement Legend.  “Unrestricted Global Note” means a Global Note that does not bear and is not required to bear  the Private Placement Legend.  “Unrestricted Subsidiary” means any Subsidiary of the Company other than any Subsidiary that  is a Guarantor and other than any Subsidiary owning or operating the business currently operated by  Liggett Group LLC.  “U.S. Person” means a U.S. Person as defined in Rule 902(k) promulgated under the Securities  Act.  “Vector Tobacco” means Vector Tobacco Inc., a Virginia corporation.  “VGR Holding” means VGR Holding LLC, a Delaware limited liability company.  “Voting Stock” of any specified Person as of any date means the Capital Stock of such Person that  is at the time entitled to vote in the election of the Board of Directors of such Person.  “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the  number of years obtained by dividing:  (1) the sum of the products obtained by multiplying (a) the amount of each then  remaining installment, sinking fund, serial maturity or other required payments of principal,  including payment at final maturity, in respect of the Indebtedness, by (b) the number of years  (calculated to the nearest one-twelfth) that will elapse between such date and the making of such  payment; by  (2) the then outstanding principal amount of such Indebtedness.  “Zoom” means Zoom E-Cigs LLC, a Delaware limited liability company.  

 

  23    Section 1.02 Other Definitions.   Defined in   Term Section  “Affiliate Transaction” ...................................................................................... 4.11  “Asset Sale Offer” .............................................................................................. 3.09  “Authentication Order” ..................................................................................... 2.02  “Change of Control Offer” ................................................................................ 4.14  “Change of Control Payment” ........................................................................... 4.14  “Change of Control Payment Date” .................................................................. 4.14  “Covenant Defeasance” ..................................................................................... 8.03  “DTC” ................................................................................................................ 2.03  “Event of Default” ............................................................................................. 6.01  “Excess Proceeds” ............................................................................................. 4.10  “incur” ............................................................................................................... 4.09  “Interest Payment Date” .................................................................................... Exhibit A  “Legal Defeasance” ........................................................................................... 8.02  “Offer Amount” .................................................................................................. 3.09  “Offer Period” ................................................................................................... 3.09  “Paying Agent” .................................................................................................. 2.03  “Permitted Debt” ............................................................................................... 4.09  “Payment Default”  ............................................................................................ 6.01  “Purchase Date” ................................................................................................ 3.09  “Registrar” ........................................................................................................ 2.03  “Restricted Payments” ....................................................................................... 4.07    Section 1.03 Trust Indenture Act Not Applicable.  This Indenture has not been qualified under the TIA and no provision of the TIA shall be deemed  a part of, or applicable to, this Indenture, except to the extent (and only to the extent) specifically  provided in Section 7.03 hereof.  Section 1.04 Rules of Construction.  Unless the context otherwise requires:  (1) a term has the meaning assigned to it;  (2) an accounting term not otherwise defined has the meaning assigned to it in  accordance with GAAP;  (3) “or” is not exclusive;  (4) words in the singular include the plural, and in the plural include the singular;  (5) “include,” “includes” and “including” shall be deemed to be followed by the  words “without limitation.”  (6) “will” shall be interpreted to express a command;   (7) provisions apply to successive events and transactions; and  

 

  24    (8) 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 Exhibit A hereto.  The Notes may have notations, legends or endorsements required by law,  stock exchange rule or usage.  Each Note will be dated the date of its authentication.  The Notes shall be  in minimum denominations of $2,000 and integral multiples of $1,000 in excess of $2,000.  The terms and provisions contained in the Notes will constitute, and are hereby expressly made, a  part of this Indenture and the Company, the Guarantors and the Trustee, by their execution and delivery  of this Indenture, expressly agree to such terms and provisions and to be bound thereby.  However, to the  extent any provision of any Note conflicts with the express provisions of this Indenture, the provisions of  this Indenture shall govern and be controlling.  (b) Global Notes.  Notes issued in global form will be substantially in the form of Exhibit A  hereto (including the Global Note Legend thereon and the “Schedule of Exchanges of Interests in the  Global Note” attached thereto).  Notes issued in definitive form will be substantially in the form of  Exhibit A hereto (but without the Global Note Legend thereon and without the “Schedule of Exchanges of  Interests in the Global Note” attached thereto).  Each Global Note will represent such of the outstanding  Notes as will be specified therein and each shall provide that it represents the aggregate principal amount  of outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of  outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to  reflect exchanges and redemptions.  Any endorsement of a Global Note to reflect the amount of any  increase or decrease in the aggregate principal amount of outstanding Notes represented thereby will be  made by the Trustee or the Custodian, at the direction of the Trustee, in accordance with instructions  given by the Holder thereof as required by Section 2.06 hereof.  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 stating the CUSIP number,  principal amount, name of Holder and date of authentication for each Note, signed by two Officers (an  “Authentication Order”), authenticate Notes for original issue that may be validly issued under this  Indenture, including any Additional Notes.  The aggregate principal amount of Notes outstanding at any  time may not exceed the aggregate principal amount of Notes authorized for issuance by the Company  pursuant to one or more Authentication Orders, except as provided in Section 2.07 hereof.    

 

  25    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.  None of the Trustee, any Paying Agent or the Registrar shall have any responsibility or liability  for any aspect of the records relating to or payments made on account of beneficial ownership interests of  a Note in global form or for maintaining, supervising or reviewing any records relating to such beneficial  ownership interests.  The Trustee and the Registrar shall be entitled to deal with any Depositary, and any  nominee thereof, that is the Holder of any such Global Note for all purposes of this Indenture relating to  such Global Note (including the payment of principal, premium, if any, and interest the giving of  instructions or directions by or to the owner or holder of a beneficial ownership interest in such Global  Note) as the sole Holder of such Global Note and shall have no obligations to the beneficial owners  thereof.  None of the Trustee, any Paying Agent or the Registrar shall have any responsibility or liability  for any acts or omissions of any such depositary with respect to such Global Note, for the records of any  such Depositary, including records in respect of beneficial ownership interests in respect of any such  Global Note, for any transactions between such Depositary and any participant in such Depositary or  between or among any such Depositary, any such participant and/or any holder or owner of a beneficial  interest in such Global Note or for any transfers of beneficial interests in any such Global Note.  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, 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 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.  

 

  26    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.  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.  Section 2.06 Transfer and Exchange.  (a) Transfer and Exchange of Global Notes.  A Global Note may not be transferred except as  a whole by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the  Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a  successor Depositary or a nominee of such successor Depositary.  All Global Notes will be exchanged by  the 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;   (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; or  (3) there has occurred and is continuing a Default or Event of Default with respect to  the Notes.  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 Note may be transferred to Persons who take delivery thereof in the form  of a beneficial interest in the same Restricted Global Note in accordance with the transfer  restrictions set forth in the Private Placement Legend; provided, however, that prior to the  expiration of the Restricted Period, transfers of beneficial interests in the Regulation S Global  Note may not be made to a U.S. Person or for the account or benefit of a U.S. Person (other than  

 

  27    an Initial Purchaser).  Beneficial interests in any Unrestricted Global Note may be transferred to  Persons who take delivery thereof in the form of a beneficial interest in an Unrestricted Global  Note.  No written orders or instructions shall be required to be delivered to the Registrar to effect  the transfers described in this Section 2.06(b)(1).  (2) All Other Transfers and Exchanges of Beneficial Interests in Global Notes.  In  connection with all transfers and exchanges of beneficial interests that are not subject to Section  2.06(b)(1) above, the transferor of such beneficial interest must deliver to the Registrar either:  (A) both:   (i) a written order from a Participant or an Indirect Participant given  to the Depositary in accordance with the Applicable Procedures directing the  Depositary to credit or cause to be credited a beneficial interest in another Global  Note in an amount equal to the beneficial interest to be transferred or exchanged;  and  (ii) instructions given in accordance with the Applicable Procedures  containing information regarding the Participant account to be credited with such  increase; or   (B) both:  (i) a written order from a Participant or an Indirect Participant given  to the Depositary in accordance with the Applicable Procedures directing the  Depositary to cause to be issued a Definitive Note in an amount equal to the  beneficial interest to be transferred or exchanged; and  (ii) instructions given by the Depositary to the Registrar containing  information regarding the Person in whose name such Definitive Note shall be  registered to effect the transfer or exchange referred to in (1) above;  Upon satisfaction of all of the requirements for transfer or exchange of beneficial interests in Global  Notes contained in this Indenture and the Notes or otherwise applicable under the Securities Act, the  Trustee shall adjust the principal amount of the relevant Global Note(s) pursuant to Section 2.06(h)  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 Global Note, then the transferor must deliver a certificate in the form of  Exhibit B hereto, including the certifications in item (2) thereof; and  

 

  28    (C) if the transferee will take delivery in the form of a beneficial interest in  the IAI Global Note, then the transferor must deliver a certificate in the form of Exhibit B  hereto, including the certifications, certificates and Opinion of Counsel required by item  (3) thereof, if applicable.  (4) Transfer and Exchange of Beneficial Interests in a Restricted Global Note for  Beneficial Interests in an Unrestricted Global Note.  A beneficial interest in any Restricted  Global Note may be exchanged by any holder thereof for a beneficial interest in an Unrestricted  Global Note or transferred to a Person who takes delivery thereof in the form of a beneficial  interest in an Unrestricted Global Note if the exchange or transfer complies with the requirements  of Section 2.06(b)(2) above and the Registrar receives the following:  (A) 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  (B) 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 (4), 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 this subparagraph (4) 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 equal to the aggregate principal amount of beneficial  interests transferred pursuant to this subparagraph (4).  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;  

 

  29    (B) if such beneficial interest is being transferred to a QIB in accordance  with Rule 144A, a certificate to the effect set forth in Exhibit B hereto, including the  certifications in item (1) thereof;  (C) if such beneficial interest is being transferred to a Non-U.S. Person in an  offshore transaction in accordance with Rule 903 or Rule 904, a certificate to the effect  set forth in Exhibit B hereto, including the certifications in item (2) thereof;  (D) if such beneficial interest is being transferred pursuant to an exemption  from the registration requirements of the Securities Act in accordance with Rule 144, a  certificate to the effect set forth in Exhibit B hereto, including the certifications in item  (3)(a) thereof;  (E) if such beneficial interest is being transferred to an Institutional  Accredited Investor in reliance on an exemption from the registration requirements of the  Securities Act other than those listed in subparagraphs (B) through (D) above, a  certificate to the effect set forth in Exhibit B hereto, including the certifications,  certificates and Opinion of Counsel required by item (3) 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 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.  Any Definitive Note issued in exchange for a beneficial interest in a Restricted Global  Note pursuant to this Section 2.06(c) shall be registered in such name or names and in such authorized  denomination or denominations as the holder of such beneficial interest shall instruct the Registrar  through instructions from the Depositary and the Participant or Indirect Participant.  The Trustee shall  deliver such Definitive Notes to the Persons in whose names such Notes are so registered.  Any Definitive  Note issued in exchange for a beneficial interest in a Restricted Global Note pursuant to this Section  2.06(c)(1) shall bear the Private Placement Legend and shall be subject to all restrictions on transfer  contained therein.  (2) Beneficial Interests in Restricted Global Notes to Unrestricted Definitive Notes.   A holder of a beneficial interest in a Restricted Global Note may exchange such beneficial  interest for an Unrestricted Definitive Note or may transfer such beneficial interest to a Person  who takes delivery thereof in the form of an Unrestricted Definitive Note only if the Registrar  receives the following:  (A) 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  

 

  30    (B) 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 (2), 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.  (3) Beneficial Interests in Unrestricted Global Notes to Unrestricted Definitive  Notes.  If any holder of a beneficial interest in an Unrestricted Global Note proposes to exchange  such beneficial interest for a Definitive Note or to transfer such beneficial interest to a Person  who takes delivery thereof in the form of a Definitive Note, then, upon satisfaction of the  conditions set forth in Section 2.06(b)(2) hereof, the Trustee will cause the aggregate principal  amount 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.  Any  Definitive Note issued in exchange for a beneficial interest pursuant to this Section 2.06(c)(3)  will be registered in such name or names and in such authorized denomination or denominations  as the holder of such beneficial interest requests through instructions to the Registrar from or  through the Depositary and the Participant or Indirect Participant.  The Trustee will deliver such  Definitive Notes to the Persons in whose names such Notes are so registered.  Any Definitive  Note issued in exchange for a beneficial interest pursuant to this Section 2.06(c)(3) will not bear  the Private Placement Legend.  (d) Transfer and Exchange of Definitive Notes for Beneficial Interests.  (1) Restricted Definitive Notes to Beneficial Interests in Restricted Global Notes.  If  any Holder of a Restricted Definitive Note proposes to exchange such Note for a beneficial  interest in a Restricted Global Note or to transfer such Restricted Definitive Notes to a Person  who takes delivery thereof in the form of a beneficial interest in a Restricted Global Note, then,  upon receipt by the Registrar of the following documentation:  (A) if the Holder of such Restricted Definitive Note proposes to exchange  such Note for a beneficial interest in a Restricted Global Note, a certificate from such  Holder in the form of Exhibit C hereto, including the certifications in item (2)(b) thereof;  (B) if such Restricted Definitive Note is being transferred to a QIB in  accordance with Rule 144A, a certificate to the effect set forth in Exhibit B hereto,  including the certifications in item (1) thereof;  (C) if such Restricted Definitive Note is being transferred to a Non-U.S.  Person in an offshore transaction in accordance with Rule 903 or Rule 904, a certificate  to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof;  (D) if such Restricted Definitive Note is being transferred pursuant to an  exemption from the registration requirements of the Securities Act in accordance with  

 

  31    Rule 144, a certificate to the effect set forth in Exhibit B hereto, including the  certifications in item (3)(a) thereof;  (E) if such Restricted Definitive Note is being transferred to an Institutional  Accredited Investor in reliance on an exemption from the registration requirements of the  Securities Act other than those listed in subparagraphs (B) through (D) above, a  certificate to the effect set forth in Exhibit B hereto, including the certifications,  certificates and Opinion of Counsel required by item (3) 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 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 the  Registrar receives the following:  (A) 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  (B) 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 (2), if the Registrar so requests or if  the Applicable Procedures so require, an Opinion of Counsel in form reasonably  acceptable to the Registrar to the effect that such exchange or transfer is in compliance  with the Securities Act and that the restrictions on transfer contained herein and in the  Private Placement Legend are no longer required in order to maintain compliance with  the Securities Act.  Upon satisfaction of the conditions of any of the subparagraphs in this Section 2.06(d)(2),  the Trustee will cancel the Definitive Notes and increase or cause to be increased the aggregate  principal amount of the Unrestricted Global Note.  (3) Unrestricted Definitive Notes to Beneficial Interests in Unrestricted Global  Notes.  A Holder of an Unrestricted Definitive Note may exchange such Note for a beneficial  

 

  32    interest in an Unrestricted Global Note or transfer such Definitive Notes to a Person who takes  delivery thereof in the form of a beneficial interest in an Unrestricted Global Note at any time.   Upon receipt of a request for such an exchange or transfer, the Trustee will cancel the applicable  Unrestricted Definitive Note and increase or cause to be increased the aggregate principal amount  of one of the Unrestricted Global Notes.  If any such exchange or transfer from a Definitive Note to a beneficial interest is effected  pursuant to subparagraphs (2) 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 equal to the principal amount of Definitive Notes  so transferred.  (e) Transfer and Exchange of Definitive Notes for Definitive Notes.  Upon request by a  Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section 2.06(e), the  Registrar will register the transfer or exchange of Definitive Notes.  Prior to such registration of transfer  or exchange, the requesting Holder must present or surrender to the Registrar the Definitive Notes duly  endorsed or accompanied by a written instruction of transfer in form satisfactory to the Registrar duly  executed by such Holder or by its attorney, duly authorized in writing.  In addition, the requesting Holder  must provide any additional certifications, documents and information, as applicable, required pursuant to  the following provisions of this Section 2.06(e).  (1) Restricted Definitive Notes to Restricted Definitive Notes.  Any Restricted  Definitive Note may be transferred to and registered in the name of Persons who take delivery  thereof in the form of a Restricted Definitive Note if the Registrar receives the following:  (A) if the transfer will be made pursuant to Rule 144A, then the transferor  must deliver a certificate in the form of Exhibit B hereto, including the certifications in  item (1) thereof;  (B) if the transfer will be made pursuant to Rule 903 or Rule 904, then the  transferor must deliver a certificate in the form of Exhibit B hereto, including the  certifications in item (2) thereof; and  (C) if the transfer will be made pursuant to any other exemption from the  registration requirements of the Securities Act, then the transferor must deliver a  certificate in the form of Exhibit B hereto, including the certifications, certificates and  Opinion of Counsel required by item (3) thereof, if applicable.  (2) Restricted Definitive Notes to Unrestricted Definitive Notes.  Any Restricted  Definitive Note may be exchanged by the Holder thereof for an Unrestricted Definitive Note or  transferred to a Person or Persons who take delivery thereof in the form of an Unrestricted  Definitive Note if the Registrar receives the following:  (A) 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  (B) 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  

 

  33    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 (2), 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) [Reserved].  (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:  THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION  EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS  AMENDED (THE “SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD  OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN  APPLICABLE EXEMPTION THEREFROM.  EACH PURCHASER OF THIS SECURITY IS HEREBY  NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION  FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A  THEREUNDER.  THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF  REPRESENTS THAT IT IS (1) A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE  144A UNDER THE SECURITIES ACT), (2) NOT A U.S. PERSON AND IS ACQUIRING ITS NOTE  IN AN “OFFSHORE TRANSACTION” PURSUANT TO RULE 904 OF REGULATION S UNDER  THE SECURITIES ACT, OR (3) AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE  MEANING OF SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES  ACT.  THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF VECTOR GROUP LTD.  THAT (A) PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES  OF THIS SECURITY UNDER RULE 144(K) UNDER THE SECURITIES ACT (OR ANY  SUCCESSOR PROVISION), THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR  OTHERWISE TRANSFERRED ONLY (I) TO VECTOR GROUP LTD. OR ANY SUBSIDIARY  THEREOF, (II) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A  “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE  SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (III)  PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT  

 

  34    PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (IV) PURSUANT TO OFFERS AND  SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE  MEANING OF REGULATION S UNDER THE SECURITIES ACT, (V) TO AN INSTITUTIONAL  “ACCREDITED INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2), (3) OR (7)  OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS SECURITY FOR ITS  OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL “ACCREDITED  INVESTOR,” FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR  SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT,  (VI) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION  REQUIREMENTS OF THE SECURITIES ACT OR (VII) PURSUANT TO A REGISTRATION  STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, IN  EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE  OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER  IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY OF THE RESALE  RESTRICTIONS REFERRED TO IN CLAUSE (A) ABOVE.  THIS LEGEND WILL BE REMOVED  UPON THE EARLIER OF THE TRANSFER OF THIS SECURITY PURSUANT TO CLAUSE (A)  (VII) ABOVE OR UPON ANY TRANSFER OF THIS SECURITY UNDER RULE 144(K) UNDER  THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION).  THE INDENTURE CONTAINS A  PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER THE TRANSFER OF THIS  SECURITY IN VIOLATION OF THE FOREGOING RESTRICTION.  (B) Notwithstanding the foregoing, any Global Note or Definitive Note  issued pursuant to subparagraphs (b)(4), (c)(2), (c)(3), (d)(2), (d)(3), (e)(2), (e)(3) or (f)  of this Section 2.06 (and all Notes issued in exchange therefor or substitution thereof)  will not bear the Private Placement Legend.  (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 VECTOR GROUP LTD.  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  

 

  35    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.”  (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 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, 4.14 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   

 

  36    (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.  (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, liability or expense that any of them may  suffer if a Note is replaced and subsequently presented or claimed for payment.  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 principal amount of any Note is considered paid under Section 4.01 hereof, it ceases to be  outstanding and interest on it ceases to accrue.  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.  

 

  37    Section 2.09 Treasury Notes.  In determining whether the Holders of the required principal amount of Notes have concurred in  any direction, waiver or consent, Notes owned by the Company or any Guarantor, or by any Person  directly or indirectly controlling or controlled by or under direct or indirect common control with the  Company or any Guarantor, will be considered as though not outstanding, except that for the purposes of  determining whether the Trustee will be protected in relying on any such direction, waiver or consent,  only Notes that the Trustee knows are so owned will be so disregarded.  Section 2.10 Temporary Notes.  Until certificates representing Notes are ready for delivery, the 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.  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) in accordance with its customary practices.  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 deliver (including by electronic means) 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 10 days but not more than 60 days before a redemption  date, an Officers’ Certificate setting forth:  

 

  38    (1) the clause of this Indenture pursuant to which the redemption shall occur;  (2) the redemption date;  (3) the principal amount of Notes to be redeemed; and   (4) the redemption price.  Any redemption referenced in such Officers’ Certificate may be cancelled by the Company at any  time prior to notice of redemption being delivered to any Holder and thereafter shall be null and void.  If the redemption price is not known at the time such notice is to be given, the actual redemption  price, calculated as described in the terms of the Notes, will be set forth in an Officers’ Certificate of the  Company delivered to the Trustee no later than two Business Days prior to the redemption date.  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 on a pro rata or by lot basis unless otherwise  required by law, DTC’s procedures or applicable stock exchange requirements.  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 10 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  thereof to be redeemed or purchased.  Notes and portions of Notes selected will be in amounts of $2,000  or whole multiples of $1,000 in excess thereof; 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 deliver (including by electronic means) a notice of redemption to  each Holder whose Notes are to be redeemed, except that redemption notices may be delivered (including  by electronic means) 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  12 hereof.  The notice will identify the Notes to be redeemed and will state:  (1) the redemption date;  (2) the redemption price;  

 

  39    (3) if any Note is being redeemed in part, the portion of the principal amount 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 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, interest  on Notes called for redemption ceases to accrue 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 15 days  prior to the redemption date (or such shorter period as agreed by the Trustee), an Officers’ Certificate  requesting that the Trustee give such notice and a complete form of Notice setting forth the information to  be stated in such notice as provided in the preceding paragraph.  Section 3.04 Effect of Notice of Redemption.  Except as provided in this Section 3.04, once a notice of redemption is delivered in accordance  with Section 3.03 hereof, Notes called for redemption become irrevocably due and payable on the  redemption date at the redemption price.    Notices of redemption may be subject to one or more conditions precedent, including completion  of an Equity Offering. If a redemption is subject to one or more conditions precedent, a notice of  redemption may state, in the Company’s discretion, that the redemption date may be delayed until such  time as all conditions are met, or such redemption may not occur and such redemption notice may be  rescinded in the event any or all of such conditions shall not have been satisfied by the redemption date as  stated in such redemption notice, or by the redemption date as so delayed. The Company will provide  prompt written notice to the Trustee no later than 11:00 a.m. New York City time on the date fixed for  redemption rescinding or extending such redemption in the event that any such condition precedent shall  not have occurred, and such redemption and notice of redemption shall be rescinded and of no force or  effect, or extended, as applicable.  Upon receipt of such notice from the Company rescinding or extending  such redemption, the Trustee will promptly deliver a copy of such notice to the Holders of the Notes to be  redeemed in the same manner in which the notice of redemption was given.  Section 3.05 Deposit of Redemption or Purchase Price.  Prior to 11:00 a.m. (New York City time) on 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 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  

 

  40    Agent by the Company in excess of the amounts necessary to pay the redemption or purchase price of and  accrued interest on all Notes to be redeemed or purchased.  If the Company complies with the provisions of the preceding paragraph, on and after the  redemption or purchase date, interest will cease to accrue on the Notes or the portions of Notes called for  redemption or purchase.  If a Note is redeemed or purchased on or after 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 to the unredeemed or unpurchased portion of the Note  surrendered.  Section 3.07 Optional Redemption.  (a) At any time prior to February 1, 2024, the Company may on any one or more occasions  redeem up to 40% of the aggregate principal amount of Notes issued under this Indenture at a redemption  price of 105.75% of the principal amount thereof, plus accrued and unpaid interest, if any, to the  redemption date, with the net cash proceeds of a sale of common Equity Interests (other than Disqualified  Stock) of the Company; provided that:   (1) at least 60% of the aggregate principal amount 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 occurs within 90 days of the date of the closing of such sale of  Equity Interests.    (b) At any time prior to February 1, 2024, the Company may also redeem all or a part of the  Notes, upon not less than 10 nor more than 60 days’ prior notice, at a redemption price equal to 100% of  the principal amount of Notes to be redeemed plus the Applicable Premium as of, and accrued and unpaid  interest, if any, to, the applicable date of redemption, subject to the rights of Holders on the relevant  record date to receive interest due on the relevant Interest Payment Date.  (c) Except pursuant to Sections 3.07(a), (b) and (e) hereof, the Notes will not be redeemable  at the Company’s option prior to February 1, 2024.  (d) On or after February 1, 2024, 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) set forth below plus accrued and unpaid interest, if any, on the Notes redeemed to the  applicable redemption date, if redeemed during the twelve-month period beginning on February 1 of the  years indicated below, subject to the rights of Holders on the relevant record date to receive interest on  the relevant Interest Payment Date:  

 

  41    Year Percentage  2024 ...............................................................................................................  102.875 %  2025 ...............................................................................................................   101.438 %  2026 and thereafter ........................................................................................  100.000%    Unless the Company defaults in the payment of the redemption price, interest will cease to accrue  on the Notes or portions thereof called for redemption on the applicable redemption date.  (e) In the event that Holders of not less than 90% of the aggregate principal amount of the  outstanding Notes validly tender and do not withdraw such Notes in a Change of Control Offer, Asset  Sale Offer or other tender offer and the Company (or a third party making the offer) purchases all of the  Notes validly tendered and not withdrawn by such Holders, all of the Holders of the Notes that remain  outstanding will be deemed to have consented to a redemption of the Notes on the terms set forth in this  paragraph, and accordingly, the Company or third party offeror, as applicable, will have the right, upon  not less than 10 nor more than 60 days’ prior notice to the Holders and the Trustee, given not more than  30 days following the purchase pursuant to such offer described above, to redeem (in the case of the  Company) or purchase (in the case of a third party offeror) all of the Notes that remain outstanding  following such purchase at a redemption price or purchase price, as the case may be, equal to the price  paid to each other Holder in such offer (which may be less than par) plus, to the extent not included in  such price, accrued and unpaid interest on the Notes that remain outstanding, to but excluding the date of  redemption (subject to the right of Holders of record on the relevant record date to receive interest due on  an Interest Payment Date that is on or prior to the redemption date).  (f) Any redemption pursuant to this Section 3.07 shall be made pursuant to the provisions of  Sections 3.01 through 3.06 hereof.  Section 3.08 Mandatory Redemption; Open Market Purchases.  The Company is not required to make mandatory redemption or sinking fund payments with  respect to the Notes.  The Company may at any time and from time to time purchase Notes in the open  market or otherwise provided any such purchase does not otherwise violate the provisions of this  Indenture.  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.  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 will be paid to the Person in whose name a Note is  

 

  42    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 deliver (including by  electronic means) 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;  (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 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 only in denominations of $2,000 and integral multiples of  $1,000 in excess thereof;  (6) that Holders electing to have Notes 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 Notes 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 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 of the Note the Holder delivered for purchase and a statement that  such Holder is withdrawing his election to have such Note purchased;  (8) that, if the aggregate principal amount 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  principal amount 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 $2,000, or integral multiples of $1,000 in excess thereof, will be purchased); and  (9) that Holders whose Notes were purchased only in part will be issued new Notes  equal in principal amount to the unpurchased portion of the Notes surrendered (or transferred by  book-entry transfer).  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  

 

  43    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) deliver  (including by electronic means) 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 deliver (or cause to be transferred by book entry) such new Note to such Holder, in a principal  amount equal to any unpurchased portion of the Note surrendered.  Any Note not so accepted shall be  promptly delivered (including by electronic means) 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 on, the  Notes on the dates and in the manner provided in the Notes.  Principal, premium, if any, and interest 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 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 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 thereof, such presentations, surrenders, notices and demands  (but not service of process) may be made 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.  

 

  44    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 (including, for the  avoidance of doubt, any extension periods pursuant thereto):  (1) all quarterly and annual reports that would be required to be filed with the SEC  on Forms 10-Q and 10-K if the Company were required to file such reports; and  (2) all current reports that would be required to be filed with the SEC on Form 8-K if  the Company were required to file such reports.    All such reports will be prepared in all material respects in accordance with all of the rules and  regulations applicable to such reports.  Each annual report on Form 10-K will include a report on the  Company’s consolidated financial statements by the Company’s independent accountants.  In addition,  the Company will file a copy of each of the reports referred to in clauses (1) and (2) above with the SEC  for public availability within the time periods specified in the rules and regulations applicable to such  reports (including, for the avoidance of doubt, any extension periods pursuant thereto) (unless the SEC  will not accept such a filing) and will post the reports on its website within those time periods.  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 in the SEC’s rules and regulations (including,  for the avoidance of doubt, any extension periods pursuant thereto) unless the SEC will not accept such a  filing.  The Company 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 (including, for  the avoidance of doubt, any extension periods pursuant to the SEC’s rules and regulations).  (b) To the extent required by the SEC, the quarterly and annual financial information  required by paragraph (a) of this Section 4.03 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 the Guarantors separate from the financial condition and results of operations of the  Unrestricted Subsidiaries of the Company.  (c) For so long as any Notes remain outstanding, if at any time the Company and the  Guarantors are not required to file with the SEC the reports required by paragraphs (a) and (b) of this  Section 4.03, the Company and the Guarantors will furnish to the Holders and to securities analysts and  prospective investors, upon their request, the information required to be delivered pursuant to Rule  144A(d)(4) under the Securities Act.  (d) Delivery of such reports, information and documents to the Trustee is for informational  purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information  contained therein or determinable from information contained therein, including the Company’s  compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on  Officers’ Certificates).  The Trustee is under no duty to examine such reports, information or documents  to ensure compliance with the provisions of this Indenture or to ascertain the correctness or otherwise of  the information or the statements contained therein.  The Trustee is entitled to assume such compliance  

 

  45    and correctness unless a Responsible Officer of the Trustee is informed otherwise. The Trustee shall have  no responsibility for the filing, timeliness or content of reports.  Section 4.04 Compliance Certificate.   (a) The Company and each Guarantor shall deliver to the Trustee, within 90 days after the  end of each fiscal year, commencing with the fiscal year ending December 31, 2021, an Officers’  Certificate stating that:  (1) 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 the Collateral Documents, and further stating, as to each such Officer  signing such certificate, that to the best of his or her knowledge no Default or Event of Default  has occurred and is continuing (or, if a Default or Event of Default has occurred and is  continuing, 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; and  (2) in the opinion of the signing Officers, either (A)(i) action has been taken with  respect to the recording, registering, filing, re-recording, re-registering and re-filing of this  Indenture, financing statements or continuation statements as is necessary to maintain the Liens  of the Collateral Documents and reciting with respect to the security interests in the Collateral the  details of such action or referring to prior Officers’ Certificates in which such details are given,  and (ii) based on relevant laws as in effect on the date of such Officers’ Certificate, all financing  statements and continuation statements have been executed and filed that are necessary as of such  date and during the succeeding 12 months to maintain the Liens of the Collateral Documents and  reciting the details of such actions; or (B) no such action is necessary to maintain such Liens.  (b) 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.  (c) Except with respect to receipt of Note payments when due and any Default or Event of  Default information contained in the Officers’ Certificate delivered to it pursuant to this Section 4.04, the  Trustee shall have no duty to review, ascertain or confirm the Company’s compliance with, or the breach  of, any representation, warranty or covenant made in this Indenture.  (d) The Company shall give prompt written notice to the Trustee if the Springing Maturity  Condition has been satisfied.  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.  

 

  46    Section 4.06 Stay, Extension and Usury Laws.   The Company and each of the Guarantors covenants (to the extent that it may lawfully do so) that  it will not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or  advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force,  that may affect the covenants or the performance of this Indenture; and the Company and each of the  Guarantors (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of  any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the  execution of any power herein granted to the Trustee, but will suffer and permit the execution of every  such power as though no such law has been enacted.  Section 4.07 Restricted Payments.   (a) Neither the Company nor any Guarantor will, directly or indirectly:  (1) declare or pay any dividend or make any other payment or distribution on  account of the Company’s or such Guarantor’s Equity Interests (including any payment in  connection with any merger or consolidation involving the Company or any Guarantor) or to the  direct or indirect holders of the Company’s or any such Guarantor’s 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 any other payments or  distributions payable to the Company or a Guarantor);  (2) purchase, redeem or otherwise acquire or retire for value (including in connection  with any merger or consolidation involving the Company) any Equity Interests 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 or any Guarantor that is  contractually subordinated to the Notes or to any Note Guarantee (excluding any intercompany  Indebtedness between or among the Company and any of the Guarantors), 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) above being  collectively referred to as “Restricted Payments”), unless at the time of such Restricted Payment, the  Company’s Consolidated EBITDA for the most recently ended four full fiscal quarters for which internal  financial statements are available is no less than $75.0 million, provided that the Company shall not be  permitted to make any distribution or dividend of any Equity Interests in, or non-cash assets of, any  Guarantor.  (b) The provisions of Section 4.07(a) will not prohibit:  (1) the payment of any dividend or other distribution or the consummation of any  irrevocable redemption within 60 days after the date of declaration of the dividend or other  distribution or giving of the redemption notice, as the case may be, if at the date of declaration or  notice, the dividend or other distribution or redemption payment would have complied with the  provisions of this Indenture;  (2) so long as no Event of Default has occurred and is continuing or would be caused  thereby, the making of any Restricted Payment in exchange for, or out of the net cash proceeds of  

 

  47    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;  (3) so long as no Event of Default has occurred and is continuing or would be caused  thereby, the repurchase, redemption, defeasance, discharge or other acquisition or retirement for  value of Indebtedness of the Company or any Guarantor that is contractually subordinated to the  Notes or to any Note Guarantee with the net cash proceeds from a substantially concurrent  incurrence of Permitted Refinancing Indebtedness;  (4) the repurchase, redemption, defeasance, discharge or other acquisition or  retirement for value of Disqualified Stock of the Company or a Guarantor with the net cash  proceeds from a substantially concurrent incurrence of other Disqualified Stock;  (5) the payment of any dividend (or, in the case of any partnership or limited liability  company, any similar distribution) by a Guarantor to the holders of its Equity Interests on a pro  rata basis (except for dividends by a Guarantor to the Company or another Guarantor, which may  be made on a non-pro rata basis);  (6) the repurchase of Equity Interests deemed to occur upon the exercise of stock  options, warrants or other convertible or exchangeable securities to the extent such Equity  Interests represent a portion of the exercise price of those stock options, warrants or other  convertible or exchangeable securities, or the reduction in Equity Interests to account for payment  in respect of withholding, income or similar taxes, paid on behalf of the employee recipients or  other qualified recipients;  (7) the repurchase, redemption, defeasance or other acquisition or retirement of  Equity Interests held by any future, present or former officers, directors or employees (or their  transferees, estates or beneficiaries under their estates), upon death, disability, retirement,  severance or termination of employment or pursuant to any management benefit plan or  agreement under which the Equity Interests were issued; provided that the aggregate price paid  for all such Equity Interests repurchased, redeemed, defease or otherwise acquired or retired shall  not exceed $2.5 million in any calendar year (with unused amounts in any calendar year being  carried over to the next succeeding calendar year, but not calendar years subsequent to such next  succeeding calendar year);  (8) so long as no Event of Default has occurred and is continuing or would be caused  thereby, 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 Guarantor issued on or after the  date of this Indenture in accordance with the Leverage Ratio and Secured Leverage Ratio tests  described in Section 4.09(a) hereof; and  (9) the distribution of the Equity Interests of Eve to the Company in order to  contribute such Equity Interests to Vector Tobacco, provided that Eve shall remain a Guarantor.  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 Guarantor, 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 will be delivered to the  Trustee.  The Board of Directors’ determination must be based upon an opinion or appraisal issued by an  

 

  48    accounting, appraisal or investment banking firm of national standing if the Fair Market Value exceeds  $10.0 million.  Section 4.08 Dividend and Other Payment Restrictions Affecting Subsidiaries.   (a) Neither the Company nor any Guarantor will, directly or indirectly, create or permit to  exist or become effective any consensual encumbrance or restriction on the ability of any Guarantor to:  (1) pay dividends or make any other distributions on its Capital Stock to the  Company or any Guarantor, 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 Guarantor;  (2) make loans or advances to the Company or any of the Guarantors; or  (3) sell, lease or transfer any of its properties or assets to the Company or any  Guarantor.  (b) The restrictions in Section 4.08(a) hereof will not apply to encumbrances or restrictions  existing under or by reason of:  (1) agreements governing Existing Indebtedness and Credit Facilities, and any  collateral documents with respect thereto, as in effect on the date of this Indenture and any  amendments, restatements, modifications, renewals, supplements, refundings, replacements or  refinancings of those agreements; provided, however, that the amendments, restatements,  modifications, renewals, supplements, refundings, replacements or refinancings are not materially  more restrictive, taken as a whole, with respect to such dividend and other payment restrictions  than those contained in the more restrictive of (x) those agreements and (y) this Indenture;  (2) this Indenture, the Notes, the Note Guarantees and the Collateral Documents;  (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 the Guarantors as in effect at the time of such acquisition (except to the  extent such Indebtedness or Capital Stock 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, however, 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, leases and licenses entered  into in the ordinary course of business or that restrict the subletting, assignment or transfer of any  property or asset that is subject to a lease, license or similar contract;  (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) hereof;  (7) any agreement for the sale or other disposition of a Guarantor that restricts  distributions by that Guarantor pending the sale or other disposition;  

 

  49    (8) Permitted Refinancing Indebtedness; provided, however, that the encumbrances  and restrictions contained in the agreements governing such Permitted Refinancing Indebtedness  are not materially more restrictive, taken as a whole, than those contained in the more restrictive  of (x) the agreements governing the Indebtedness being refinanced and (y) this Indenture, as  determined in good faith by the Board of Directors of the Company;  (9) Liens 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 limiting the disposition or distribution of assets or property in joint  venture agreements, asset sale agreements, sale-leaseback agreements, stock sale agreements and  other similar agreements entered into with the approval of the Company’s or a Guarantor’s Board  of Directors, which limitation is applicable only to the assets that are the subject of such  agreements;  (11) restrictions on cash or other deposits or net worth imposed by customers under  contracts entered into in the ordinary course of business;  (12) provisions limiting the disposition or distribution of assets in joint venture  agreements entered into (i) in the ordinary course of business or (ii) with the approval of the  Company’s or a Guarantor’s Board of Directors or chief financial officer, which limitation or  prohibition is applicable only to the assets that are the subject of such agreements;  (13) net worth provisions in leases and other agreements entered into by the Company  or any Guarantor in the ordinary course of business; or  (14) agreements governing Indebtedness permitted to be incurred pursuant to Section  4.09 hereof; provided, however, that the Board of Directors of the Company determines in good  faith (such determination to be evidenced by a resolution of the Board of Directors) that such  encumbrances and restrictions are not materially more restrictive, taken as a whole, than those in  the more restrictive of (x) the Liggett Credit Agreement (as in effect on the date of this Indenture)  and (y) this Indenture, and would not reasonably be expected to impair the ability of the  Company to make payments of interest and scheduled payments of principal on the Notes, in each  case as and when due, or to impair any Guarantor’s ability to honor its Note Guarantee.  Section 4.09 Incurrence of Indebtedness and Issuance of Preferred Stock.   (a) Neither the Company nor any Guarantor will, 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 none of the Guarantors will issue any shares of preferred stock;  provided, however, that the Company may incur Indebtedness (including Acquired Debt) or issue  Disqualified Stock, and the Guarantors may incur Indebtedness (including Acquired Debt) or issue  preferred stock, if the Leverage Ratio and the Secured Leverage 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 preferred stock is  issued, as the case may be, would have been no greater than 3.0 to 1.0 in respect of the Leverage Ratio  and 1.5 to 1.0 in respect of the Secured Leverage Ratio, 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 preferred stock had been issued, as the case may be, at the beginning of such  four-quarter period.  

 

  50    (b) The provisions of Section 4.09(a) hereof 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 the Guarantors of additional  Indebtedness and letters of credit under Credit Facilities in an aggregate principal amount at any  one time outstanding under this clause (1) (with letters of credit being deemed to have a principal  amount equal to the maximum potential liability of the Company and the Guarantors thereunder)  not to exceed $100.0 million less the aggregate amount of all Net Proceeds of Asset Sales applied  by the Company or any of the Guarantors since the date of this Indenture to repay any term  Indebtedness under a Credit Facility or to repay any revolving credit Indebtedness under a Credit  Facility and effect a corresponding commitment reduction thereunder pursuant to Section 4.10  hereof;  (2) the incurrence by the Company and the Guarantors of the Existing Indebtedness;  (3) the incurrence by the Company and the Guarantors of Indebtedness represented  by the Notes and the related Note Guarantees to be issued on the date of this Indenture;  (4) the incurrence by the Company or any of the Guarantors of Permitted  Refinancing Indebtedness in exchange for, or the net proceeds of which are used to renew,  refund, refinance, replace, defease or discharge any Indebtedness (other than intercompany  Indebtedness) that was permitted by this Indenture to be incurred under Section 4.09(a) hereof or  clauses (2), (3), (4) and (10) of this Section 4.09(b);  (5) the incurrence by the Company or any of the Guarantors of intercompany  Indebtedness between or among the Company and any of the Guarantors; provided, however,  that:  (A) 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 Guarantor and  (B) any sale or other transfer of any such Indebtedness to a Person that is not  either the Company or a Guarantor,  will be deemed, in each case, to constitute an incurrence of such Indebtedness by the Company or  such Guarantor, as the case may be, that was not permitted by this clause (5);  (6) the issuance by any of the Guarantors to the Company or to any of the  Guarantors 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 Guarantor; and  (B) any sale or other transfer of any such preferred stock to a Person that is  not either the Company or a Guarantor,   will be deemed, in each case, to constitute an issuance of such preferred stock by such Guarantor  that was not permitted by this clause (6);  (7) the guarantee by the Company or any of the Guarantors of Indebtedness of the  Company or a Guarantor that was permitted to be incurred by another provision of this Section  

 

  51    4.09; provided, however, that if the Indebtedness being guaranteed is subordinated to or pari  passu with the Notes, then the Guarantee shall be subordinated or pari passu, as applicable, to the  same extent as the Indebtedness guaranteed;  (8) the incurrence by the Company or any of the Guarantors of Indebtedness in  respect of workers’ compensation claims, self-insurance obligations, bankers’ acceptances,  performance and surety bonds, appeal or other similar bonds in the ordinary course of business,  and in any such case any reimbursement obligations in connection therewith;  (9) the incurrence by the Company or any of the Guarantors of Indebtedness arising  from the honoring by a bank or other financial institution of a check, draft or similar instrument  inadvertently drawn against insufficient funds, so long as such Indebtedness is covered within  five Business Days;  (10) the incurrence by the Company or any of the Guarantors of Indebtedness  represented by Capital Lease Obligations, purchase money obligations or other obligations, in  each case incurred for the purpose of financing all or any part of the purchase price, cost or value  of any equipment used in the business of the Company or any of the Guarantors, in an aggregate  principal amount, including all Permitted Refinancing Indebtedness incurred to renew, refund,  refinance, replace, defease or discharge any Indebtedness incurred pursuant to this clause (10),  not to exceed $25.0 million at any time outstanding;  (11) the incurrence by the Company or any of the Guarantors of Hedging Obligations;  (12) Indebtedness of the Company or any of the Guarantors to the extent the net  proceeds thereof are promptly deposited to defease or satisfy and discharge all outstanding Notes  in full as provided in Articles 8 and 12 hereof;  (13) obligations of the Company and any of the Guarantors arising from agreements  of the Company or a Guarantor providing for indemnification, adjustment of purchase price or  similar obligations, in each case incurred or assumed in connection with the disposition of any  business, assets or a Subsidiary of the Company in accordance with the terms of this Indenture,  other than Guarantees by the Company or any Guarantor of Indebtedness incurred by any Person  acquiring all or any portion of such business, assets or a Subsidiary of the Company for the  purpose of financing such acquisition; provided, however, that the maximum aggregate liability in  respect of all such obligations shall not exceed the gross proceeds, including the Fair Market  Value as determined in good faith by the Board of Directors of the Company of non-cash  proceeds (the Fair Market Value of such non-cash proceeds being measured at the time received  and without giving effect to any subsequent changes in value), actually received by the Company  and the Guarantors in connection with such disposition; or  (14) obligations (other than Parity Lien Obligations) of the Company and any of the  Guarantors arising from the entering into, maintaining or disposing of, Core Investments,  including purchasing of any Core Investment on margin, any capital call obligations, make-well  arrangements, hedging obligations of any nature or any obligations regarding a short position in  any of such Core Investments.  The Company will not incur, and will not permit any Guarantor to incur, any Indebtedness  (including Permitted Debt) that is contractually subordinated in right of payment to any other  Indebtedness of the Company or such Guarantor unless such Indebtedness is also contractually  subordinated in right of payment to the Notes and the applicable Note Guarantee on substantially identical  

 

  52    terms; provided, however, that no Indebtedness will 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.  For purposes of determining compliance with this Section 4.09, in the event that an item of  Indebtedness meets the criteria of more than one of the categories of Permitted Debt described in clauses  (1) through (14) above, or is entitled to be incurred pursuant to Section 4.09(a) hereof, the Company will  be permitted to classify such item of Indebtedness on the date of its incurrence, or later reclassify all or a  portion of such item of Indebtedness, in any manner that complies with this Section 4.09.  Indebtedness  under Credit Facilities outstanding on the date on which Notes are first issued and authenticated under  this Indenture will initially be deemed to have been incurred on such date in reliance on the exception  provided by clause (1) of the definition of Permitted Debt.  Indebtedness permitted by this covenant need  not be permitted by reference to one provision permitting such Indebtedness but may be permitted in part  by one such provision and in part by one or more other provisions of this Section 4.09 permitting such  Indebtedness.  The outstanding principal amount of any particular Indebtedness shall be counted only  once such that (without limitation) any obligation arising under any guarantee, Lien, letter of credit or  similar instrument supporting such Indebtedness shall be disregarded. 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, the reclassification of preferred stock as  Indebtedness due to a change in accounting principles, and the payment of dividends on Disqualified  Stock in the form of additional shares of the same class of Disqualified Stock will not be deemed to be an  incurrence of Indebtedness or an issuance of Disqualified Stock for purposes of this Section 4.09.   Notwithstanding any other provision of this Section 4.09, the maximum amount of Indebtedness that the  Company or any Guarantor 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.  (c) The amount of any Indebtedness outstanding as of any date will be:  (1) the accreted value of the Indebtedness, in the case of any Indebtedness issued  with original issue discount;  (2) the principal amount of the Indebtedness, in the case of any other Indebtedness;  and  (3) in respect of Indebtedness of another Person secured by a Lien on the assets of  the specified Person, the lesser of:  (A) the Fair Market Value of such assets at the date of determination; and  (B) the amount of the Indebtedness of the other Person.  Section 4.10 Asset Sales.  Except as set forth in the third paragraph of this Section 4.10, neither the Company nor any  Guarantor will consummate an Asset Sale unless:  (1) the Company or the Guarantor, 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  

 

  53    (2) at least 75% of the consideration received in the Asset Sale by the Company or  such Guarantor is in the form of cash.  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 Guarantor (other than contingent liabilities and  liabilities that are by their terms subordinated to the Notes or any Note Guarantee) that  are assumed by the transferee of any such assets pursuant to a customary novation  agreement that releases the Company or such Guarantor from further liability;  (B) any securities, notes or other obligations received by the Company or any  such Guarantor from such transferee that are, subject to ordinary settlement periods,  converted by the Company or such Guarantor into cash within 90 days of such Asset  Sale, 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.  Within 365 days after the receipt of any Net Proceeds from an Asset Sale, other than a Sale of  Collateral; provided that if during such 365-day period the Company or applicable Guarantor enters into a  definitive binding agreement committing it to apply such Net Proceeds in accordance with the  requirements of clauses (2), (3) or (4) below after such 365th day, such 365th day period will be extended  with respect to the amount of Net Proceeds so committed until such Net Proceeds are required to be  applied in accordance with such agreement (but such extension will in no event be for a period longer  than 180 days) (or, if earlier, the date of termination of such agreement), the Company (or the applicable  Guarantor, as the case may be) may apply such Net Proceeds at its option:  (1) to repay Indebtedness and other Obligations under the Liggett Credit Agreement  and correspondingly reduce commitments with respect thereto;  (2) to acquire all or substantially all of the assets of, or any Capital Stock of, another  business, if, after giving effect to any such acquisition of Capital Stock, the business is or  becomes a Guarantor;  (3) to make a capital expenditure; or  (4) to acquire other assets that are not classified as current assets under GAAP and  that are used or useful in the conduct of the Company’s or any Guarantor’s business.  Notwithstanding the above, the Company may consummate any Asset Sale with respect to assets  other than Equity Interests in, or assets of, any Guarantor without complying with the provisions of this  Section 4.10.  Within 365 days after the receipt of any Net Proceeds from an Asset Sale that constitutes a Sale  of Collateral, the Guarantor that owned those assets may apply those Net Proceeds to purchase other long- term assets that would constitute Collateral or to repay First Priority Debt and, if such First Priority Debt  is revolving credit Indebtedness, to correspondingly reduce commitments with respect thereto; provided  that if during such 365-day period the Company or applicable Guarantor enters into a definitive binding  agreement committing it to apply such Net Proceeds in accordance with this sentence after such 365th  day, such 365-day period will be extended with respect to the amount of Net Proceeds so committed until  such Net Proceeds are required to be applied in accordance with such agreement (but such extension will  

 

  54    in no event be for a period longer than 180 days) (or, if earlier, the date of termination of such  agreement).  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 (other than Asset Sales described in the third paragraph of  this Section 4.10) that are not applied or invested as provided in the second or fourth paragraphs of this  Section 4.10, as applicable, 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 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 the maximum principal amount 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 percentages corresponding to the applicable optional redemption price in effect on the  repurchase date, and for periods prior to February 1, 2024, the first optional redemption price of the  principal amount plus accrued and unpaid interest, if any, to the date of purchase, and will be payable in  cash.  If any Excess Proceeds remain after consummation of an Asset Sale Offer, the Company may use  those Excess Proceeds for any purpose not otherwise prohibited by this Indenture.  If the aggregate  principal amount of Notes and other pari passu Indebtedness tendered into such Asset Sale Offer exceeds  the amount of Excess Proceeds, the Trustee (as directed by the Company) will select the Notes and other  pari passu Indebtedness to be purchased on a pro rata basis.  Upon completion of each Asset Sale Offer,  the amount of Excess Proceeds will 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 Section 3.09 hereof or this  Section 4.10, 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) Except as provided in Section 4.11(c), neither the Company nor any Guarantor will 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 Guarantor than those that would have been obtained in a comparable transaction by  the Company or such Guarantor 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 $3.0 million, a resolution of  the Board of Directors of the Company set forth in an Officers’ Certificate certifying that  such Affiliate Transaction complies with clause (1) of this Section 4.11(a) and that such  

 

  55    Affiliate Transaction has been approved by a majority of the disinterested members, if  any, of the Board of Directors of the Company; 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 Guarantor of such Affiliate Transaction from a  financial point of view issued by an accounting, appraisal or investment banking firm of  national standing.  (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) hereof:  (1) any consulting or employment agreement or arrangement, employee benefit plan,  officer indemnification agreement or any similar arrangement entered into by the Company or  any of the Guarantors and payments pursuant thereto;  (2) transactions between or among the Company and/or the Guarantors;  (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 Guarantor, an Equity Interest in, or controls, such Person;  (4) payment of reasonable directors’ fees (including the issuance of restricted stock)  to directors of the Company and other reasonable compensation, benefits and indemnities paid or  provided by the Company to the directors of the Company in their capacities as directors;  (5) any sale, grant, award or issuance of Equity Interests (other than Disqualified  Stock) of the Company, including the exercise of options and warrants, to Affiliates, officers,  directors or employees of the Company;  (6) Restricted Payments that do not violate Section 4.07 hereof;  (7) loans or advances to employees in the ordinary course of business not to exceed  $1.0 million in the aggregate at any one time outstanding;  (8) Permitted Investments; and  (9) Accelerated Note Conversions.  (c) If on the date of any Affiliate Transaction (other than an Affiliate Transaction between  any of the Liggett Guarantors and any Affiliate of the Company other than the Company or another  Guarantor) the Company’s Consolidated EBITDA for the most recently ended four full fiscal quarters for  which internal financial statements are available is no less than $75.0 million, the provisions of Section  4.11(a) shall not apply to the consummation of such Affiliate Transaction.  Section 4.12 Liens.   Neither the Company nor any Guarantor will, directly or indirectly, create, incur, or assume any  Lien of any kind on any asset now owned or hereafter acquired, except Permitted Liens.  

 

  56    Section 4.13 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 4.14 Offer to Repurchase Upon Change of Control.   (a) Upon the occurrence of a Change of Control, each Holder of Notes will have the right to  require the Company to make an offer (a “Change of Control Offer”) to repurchase all or any part (equal  to $2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Notes at a purchase price in  cash equal to 101% of the aggregate principal amount of Notes repurchased plus accrued and unpaid  interest, if any, on the Notes repurchased to the date of purchase, subject to the rights of Holders on the  relevant record date to receive interest due on the relevant Interest Payment Date (the “Change of Control  Payment”). Within 30 days following any Change of Control, the Company will deliver (including by  electronic means) a notice to each Holder, with a copy to the Trustee, describing the transaction or  transactions that constitute the Change of Control and stating:  (1) that the Change of Control Offer is being made pursuant to this Section 4.14 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 delivered (including by electronic means)  (the “Change of Control Payment Date”);   (3) that any Note not tendered will continue to accrue interest;   (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  accrue interest 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  

 

  57    Control Payment Date, a telegram, telex, facsimile transmission or letter setting forth the name of  the Holder, the principal amount of Notes delivered for purchase, and a statement that such  Holder is withdrawing his election to have the Notes purchased; and  (7) that Holders whose Notes are being purchased only in part will be issued new  Notes equal in principal amount to the unpurchased portion of the Notes surrendered, which  unpurchased portion must be equal to $2,000 in principal amount or an integral multiple of  $1,000 in excess thereof.  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 of Control.  To the extent that the  provisions of any securities laws or regulations conflict with the provisions of Sections 3.09 or 4.14  hereof, the Company will comply with the applicable securities laws and regulations and will not be  deemed to have breached its obligations under Sections 3.09 or 4.14 hereof 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 of Notes or portions  of Notes being purchased by the Company.  The Paying Agent will promptly deliver (including by electronic means) (but in any case not later  than five days after the Change of Control Payment Date) to each Holder of Notes properly tendered the  Change of Control Payment for such Notes, and the Trustee will promptly authenticate and deliver (or  cause to be transferred by book entry) to each Holder a new Note equal in principal amount to any  unpurchased portion of the Notes surrendered, if any.  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 4.14, 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 4.14 and Section 3.09 hereof and purchases all Notes properly 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.  A  Change of Control Offer may be made in advance of a Change of Control, conditional upon such Change  of Control, if a definitive agreement is in place for the Change of Control at the time of the Change of  Control Offer.  Notes repurchased pursuant to a Change of Control Offer will be retired and cancelled.    Section 4.15 Limitation on Sale and Leaseback Transactions.   Neither the Company nor any Guarantor will enter into any sale and leaseback transaction;  provided, however, that the Company or any Guarantor may enter into a sale and leaseback transaction if:  

 

  58    (1) the Company or that Guarantor, as applicable, could have (a) incurred  Indebtedness in an amount equal to the Attributable Debt relating to such sale and leaseback  transaction under the Leverage Ratio and Secured Leverage Ratio tests in Section 4.09(a) hereof  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 of the Company 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 4.16 Payments for Consent.   Neither the Company nor any Guarantor will, directly or indirectly, pay or cause to be paid any  consideration to or for the benefit of any Holder of Notes for or as an inducement to any consent, waiver  or amendment of any of the terms or provisions of this Indenture, the Collateral Documents or the Notes  unless such consideration is offered to be paid and is paid to all Holders of the Notes that consent, waive  or agree to amend in the time frame set forth in the solicitation documents relating to such consent,  waiver or agreement.  Section 4.17 Additional Note Guarantees.   If the Company or any of the Guarantors acquires or creates another Domestic Subsidiary after  the date of this Indenture (i) engaged directly or indirectly in the cigarette businesses or (ii) that is or  becomes a borrower, obligor or guarantor under the Liggett Credit Agreement, then that newly acquired  or created Domestic Subsidiary will become a Guarantor and execute a supplemental indenture and, in the  case of (ii), Collateral Documents consistent with those entered into by the Credit Agreement Borrowers,  and deliver an opinion of counsel satisfactory to the trustee within 15 Business Days of the date on which  it was acquired or created.  The form of such Note Guarantee is attached as Exhibit E hereto.  Section 4.18 Unrestricted Subsidiaries.  In no event may the business operated by Liggett Group LLC on the date of this Indenture be  transferred to or held by an Unrestricted Subsidiary.  ARTICLE 5  SUCCESSORS  Section 5.01 Merger, Consolidation, or Sale of Assets.  The Company shall not, directly or indirectly: (1) consolidate or merge with or into another  Person (whether or not the Company is the surviving corporation); or (2) sell, assign, transfer, convey or  otherwise dispose of all or substantially all of the properties and assets (not including any properties or  assets of, or Equity Interests in, any Unrestricted Subsidiaries) of the Company and the Guarantors taken  as a whole, in one or more related transactions, to another Person, unless:  (1) either:  

 

  59    (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 (i) a corporation organized or existing under the laws of the  United States, any state of the United States or the District of Columbia or (ii) a limited  partnership or limited liability company organized or existing under the laws of the  United States, any state thereof or the District of Columbia that has a wholly-owned  Subsidiary that is a corporation organized or existing under the laws of the United States,  any state of the United States or the District of Columbia, which corporation becomes a  co-issuer of the Notes pursuant to a supplemental indenture duly and validly executed by  the successor Person and the Trustee;  (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 Collateral Documents 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, would, on the date of such transaction after giving pro forma  effect thereto and any related financing transactions as if the same had occurred at the beginning  of the applicable four-quarter period, be permitted to incur at least $1.00 of additional  Indebtedness pursuant to the Leverage Ratio and Secured Leverage Ratio tests set forth in Section  4.09(a) hereof.  In addition, the Company will not, directly or indirectly, lease all or substantially all of the  properties and assets of it and the Guarantors taken as a whole (not including any properties or assets of,  or Equity Interests in, any Unrestricted Subsidiaries), in one or more related transactions, to any other  Person.   The Company shall deliver, or cause to be delivered, to the Trustee an Officers’ Certificate and an  Opinion of Counsel, each to the effect that such consolidation, merger, sale, conveyance, assignment,  transfer, lease or other disposition complies with the requirements of this Indenture and that all conditions  precedent provided for in this Indenture relating to such transaction have been complied with.  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 consolidation or merger, or any sale, assignment, transfer, conveyance, lease  or other disposition of assets between or among the Company and any of the Guarantors that are  not any of the Liggett Guarantors.  For the avoidance of doubt, this Section 5.01 will not apply to any sale, assignment, transfer,  conveyance, lease or other disposition of the properties or assets of, or Equity Interests in, any  Unrestricted Subsidiary.  

 

  60    Notwithstanding anything to the contrary in this Section 5.01, or any other provisions in this  Indenture (including Section 11.04), the Company shall not consolidate or merge with or into any of the  Liggett Guarantors, nor sell, assign, transfer, convey or otherwise dispose of all or substantially all of the  properties and assets of the Company and the Guarantors taken as a whole, in one or more transactions, to  any of the Liggett Guarantors.  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 properties and assets of the Company in a transaction that is  subject to, and that complies with the provisions of, Section 5.01 hereof, the successor Person 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, assignment, transfer, lease, conveyance or  other disposition, the provisions of this Indenture referring to the “Company” shall refer instead to the  successor Person 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) default for 30 days in the payment when due of interest on the Notes;  (2) default in the payment when due (at maturity, upon redemption or otherwise) of  the principal of, or premium, if any, on, the Notes or default in the payment when due of a  Change of Control Payment;  (3) failure by the Company or any of the Guarantors for 30 days after notice to the  Company by the Trustee or the Holders of at least 25% in aggregate principal amount of the  Notes then outstanding voting as a single class to comply with the provisions of Sections 4.07,  4.09 or 4.10 hereof;  (4) failure by the Company or any of the Guarantors for 60 days after notice to the  Company by the Trustee or the Holders of at least 25% in aggregate principal amount of the  Notes then outstanding voting as a single class to comply with any of the other agreements in this  Indenture or the Collateral Documents;  (5) default under any mortgage, indenture or instrument under which there may be  issued or by which there may be secured or evidenced any Indebtedness for money borrowed by  the Company or any of the Guarantors (or the payment of which is guaranteed by the Company or  any of the Guarantors), whether such Indebtedness or Guarantee now exists, or is created after the  date of this Indenture, if that default:  

 

  61    (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 $10.0 million or  more and such acceleration is not annulled within 30 days thereof or such Payment  Default continues for 30 days;  (6) failure by the Company or any of the Guarantors to pay final non-appealable  judgments entered by a court or courts of competent jurisdiction aggregating in excess of  $10.0 million (net of any amounts as to which a reputable and solvent third party insurer has  accepted full coverage), which judgments are not paid, discharged, bonded or stayed for a period  of 60 days;  (7) the Company or any of the Guarantors that is a Significant Subsidiary or any  group of Guarantors 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;  (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 the Guarantors that is a  Significant Subsidiary or any group of Guarantors that, taken together, would constitute a  Significant Subsidiary in an involuntary case;  (B) appoints a custodian of the Company or any of the Guarantors that is a  Significant Subsidiary or any group of Guarantors that, taken together, would constitute a  Significant Subsidiary or for all or substantially all of the property of the Company or any  of the Guarantors that is a Significant Subsidiary or any group of Guarantors that, taken  together, would constitute a Significant Subsidiary; or  (C) orders the liquidation of the Company or any of the Guarantors that is a  Significant Subsidiary or any group of Guarantors that, taken together, would constitute a  Significant Subsidiary;  

 

  62    and the order or decree remains unstayed and in effect for 60 consecutive days;  (9) breach by the Company or any of the Guarantors of any material representation  or warranty or agreement in the Collateral Documents, and such failure shall continue for a period  of 60 days after written notice to the Company by the Trustee, the Collateral Agent or the Holders  of at least 25% in aggregate principal amount of the notes then outstanding voting as a single  class;  (10) the repudiation by the Company or any of the Guarantors of any of its obligations  under the Collateral Documents or the unenforceability of the Collateral Documents against the  Company or any of the Guarantors for any reason; and  (11) except as permitted by this Indenture, any Note Guarantee is held in any judicial  proceeding to be unenforceable or invalid or ceases for any reason to be in full force and effect,  or any Guarantor, or any Person acting on behalf of any Guarantor, denies or disaffirms its  obligations under its Note Guarantee.  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, any Guarantor that is a Significant Subsidiary or any group of Guarantors that,  taken together, would constitute a Significant Subsidiary, all outstanding Notes will become due and  payable immediately without further action or notice.  If any other Event of Default occurs and is  continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the then  outstanding Notes may declare all the Notes to be due and payable immediately.  Upon any such declaration, the Notes shall become due and payable immediately.  The Holders of a majority in aggregate principal amount of the then outstanding Notes by written  notice to the Trustee may, on behalf of all of the Holders, rescind an acceleration 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, if any, that has become due solely because of the  acceleration) have been cured or waived.  Section 6.03 Other Remedies.  If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to  collect the payment of principal, premium, if any, and interest on the Notes or to enforce the performance  of any provision of the Notes 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 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  

 

  63    payment of the principal of, premium, if any, or interest on the Notes (including in connection with an  offer to purchase); provided, however, that the Holders of a majority in aggregate principal amount of the  then outstanding Notes may rescind an acceleration and its consequences, including any related payment  default that resulted from such acceleration.  Upon any such waiver, such Default shall cease to exist, and  any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this  Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right  consequent thereon.  Section 6.05 Control by Majority.  Holders of a majority in aggregate principal amount of the then outstanding Notes may direct the  time, method and place of conducting any proceeding for exercising any remedy available to the Trustee  or exercising any trust or power conferred on it.  However, the Trustee may refuse to follow any direction  that conflicts with law or this Indenture that the Trustee determines may be unduly prejudicial to the  rights of other Holders of Notes (it being understood that the Trustee does not have an affirmative duty to  ascertain whether or not such directions are unduly prejudicial to such Holders) or that may involve the  Trustee in personal liability, loss or expense that is not adequately indemnified in the judgment of the  Trustee.  Section 6.06 Limitation on Suits.  Except to enforce the right to receive payment of principal, premium, if any, or interest, when  due, no Holder may pursue any remedy with respect to this Indenture or the Notes unless:  (1) such Holder gives to the Trustee written notice that an Event of Default is  continuing;  (2) Holders of at least 25% in aggregate principal amount of the then outstanding  Notes make a written request to the Trustee to pursue the remedy;  (3) such Holder or Holders offer the Trustee security or indemnity, satisfactory to the  Trustee, against any loss, liability or expense;  (4) the Trustee does not comply with the request within 60 days after receipt of the  request and the offer of security or indemnity; and  (5) during such 60-day period, Holders of a majority in aggregate principal amount  of the then outstanding Notes do not give the Trustee a direction (which has not been withdrawn)  inconsistent with such request.  A Holder of a Note may not use this Indenture to prejudice the rights of another Holder of a Note  or to obtain a preference or priority over another Holder of a Note.  Section 6.07 Rights of Holders of Notes to Receive Payment.  Notwithstanding any other provision of this Indenture, the right of any Holder of a Note to  receive payment of principal, premium, 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; provided that a Holder shall not have the right to institute any such  suit for the enforcement of payment if and to the extent that the institution or prosecution thereof or the  

 

  64    entry of judgment therein would, under applicable law, result in the surrender, impairment, waiver or loss  of the Lien of this Indenture upon any property subject to such Lien.  Section 6.08 Collection Suit by Trustee.  If an Event of Default specified in Section 6.01(1) or (2) hereof 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, 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 (acting in any capacity), its agents and attorneys for amounts  due hereunder, 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, if any, and interest, ratably, without preference or priority of any kind, according to the  amounts due and payable on the Notes for principal, premium, if any, and interest, respectively;  and  Third: to the Company or to such party as a court of competent jurisdiction shall  direct.  

 

  65    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 aggregate principal amount of the then  outstanding Notes.  ARTICLE 7  TRUSTEE  Section 7.01 Duties of Trustee.  (a) If an Event of Default has occurred of which a Responsible Officer of the Trustee has  actual knowledge 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 (but need not confirm or investigate the accuracy of  mathematical calculations or other facts stated therein).  (c) The Trustee may not be relieved from liabilities for its own 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.  

 

  66    (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 loss, liability or expense for which it is not adequately indemnified in the reasonable judgment  of the Trustee.  The Trustee will be under no obligation to exercise any of its rights and powers under this  Indenture at the request or direction of any Holder, unless such Holder has offered to the Trustee security  and indemnity, satisfactory to the Trustee 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.  In the absence of written investment  direction from the Company, all cash received by the Trustee shall be placed in a non-interest bearing  trust account, and in no event shall the Trustee be liable for the selection of investments or for investment  losses incurred thereon or for losses incurred as a result of the liquidation of any such investment prior to  its maturity date or the failure of the party directing such investment to provide timely written investment  direction, and the Trustee shall have no obligation to invest or reinvest any amounts held hereunder in the  absence of such written investment direction from the Company.  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 security or indemnity reasonably satisfactory to the Trustee against the losses, liabilities and  expenses that might be incurred by it in compliance with such request or direction.  (g) The rights, privileges, protections, immunities and benefits given to the Trustee,  including its rights to be indemnified, are extended to and shall be enforceable by, the Trustee in each of  its capacities hereunder, and each agent, custodian and other Person employed to act hereunder.  

 

  67    (h) The Trustee may request that the Company deliver an Officer’s Certificate setting forth  the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant  to this Indenture, which Officers’ Certificate may be signed by any person authorized to sign an Officers’  Certificate, including any person specified as so authorized in any such certificate previously delivered  and not superseded.  (i) The permissive rights of the Trustee to do certain things enumerated in this Indenture  shall not be construed as a duty and the Trustee shall not be answerable for other than its negligence or  willful default with respect to such permissive rights.  (j) The Trustee shall not be bound to make any inquiry or investigation into the facts or  matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request,  direction, consent, order, bond, note or other paper or document unless requested in writing so to do by  the holders of a majority in aggregate principal amount of the Notes affected then outstanding; provided  however, that if the payment within a reasonable time to the Trustee of the costs and expenses or  liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee,  not reasonably assured to the Trustee by the security conferred upon it by the terms of this Indenture, the  Trustee may require indemnity reasonably satisfactory to the Trustee against such costs, expenses or  liabilities as a condition to so proceeding; and the reasonable expense of such investigation shall be paid  by the Company, or, if paid by the Trustee shall be repaid by the Company upon demand.  (k) The Trustee shall not be responsible or liable for special, indirect, punitive or  consequential loss or damage of any kind whatsoever (including loss or profit) irrespective of whether the  Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action.  (l) The Trustee shall not be required to give any note, bond, or surety in respect of the  execution of the trusts and powers under this Indenture.  (m) The Trustee shall not be responsible or liable for any failure or delay in the performance  of its obligations under this Indenture arising out of or caused, directly or indirectly, by circumstances  beyond its reasonable control, including acts of God; earthquakes; fire; flood; terrorism; wars and other  military disturbances; sabotage; epidemics; riots; interruptions; loss or malfunction of utilities, computer  (hardware or software) or communication services; accidents; labor disputes; act of civil or military  authorities and governmental action.  (n) The Trustee shall not be charged with knowledge of any default or Event of Default  unless either (1) a Responsible Officer of the Trustee shall have actual knowledge of the default or Event  of Default or (2) written notice of such default or Event of Default shall have been given to the Trustee by  the Company or by any Holder and such notice references the Notes and this Indenture and states that it is  a notice of Default.  (o) The Trustee shall not be liable or responsible for any action or inaction of the Depositary  or any other clearinghouse or depositary.  (p) The Trustee shall have no obligation to undertake any calculation hereunder or have any  liability for any calculation performed in connection herewith or the transactions contemplated hereunder.  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  

 

  68    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 or resign.  Any Agent may do the same with like rights and  duties.  The Trustee shall be subject to the provisions of TIA § 311(a), excluding any creditor relationship  listed in TIA § 311(b), as if such provisions were set forth in this Indenture.  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 actually known to the Trustee,  the Trustee will deliver (including by electronic means) 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, 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 [Reserved].  Section 7.07 Compensation and Indemnity.  (a) The Company will pay to the Trustee (acting in any capacity) 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 and the Guarantors will indemnify the Trustee (acting in any capacity)  (including its officers, directors, employees and agents) 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 and the  Guarantors (including this Section 7.07) and defending itself against any claim (whether asserted by the  Company, the Guarantors, any Holder or any other Person) or liability in connection with the exercise or  performance of any of its powers or duties hereunder, except to the extent any such loss, liability or  expense may be attributable to its negligence or willful misconduct as determined by a final non- appealable decision of a court of competent jurisdiction.  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 or any of the Guarantors of their obligations hereunder.  The Company or such  Guarantor 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.  Neither the  Company nor any Guarantor need pay for any settlement made without its consent, which consent will  not be unreasonably withheld.  

 

  69    (c) The obligations of the Company and the Guarantors under this Section 7.07 will survive  the satisfaction and discharge of this Indenture and the resignation or removal of the Trustee.  (d) To secure the Company’s and the Guarantors’ 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 and the resignation or removal of the Trustee.  (e) When the Trustee incurs expenses or renders services after an Event of Default specified  in Section 6.01(7) or (8) 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.  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 aggregate principal amount of the  then outstanding Notes may remove the Trustee by so notifying the Trustee and the Company in writing  at least 30 days prior to such removal.  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  (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 aggregate principal amount 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 aggregate  principal amount of the then outstanding Notes may petition any court of competent jurisdiction for the  appointment of a successor Trustee at the expense of the Company.  (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 deliver (including by electronic means) a notice of its succession to  

 

  70    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.  The retiring or removed Trustee shall have no responsibility or  liability for the action or inaction of any successor Trustee.  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.  ARTICLE 8  LEGAL DEFEASANCE AND COVENANT DEFEASANCE  Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance.  The Company may at any time, at the option of its Board of Directors evidenced by a resolution  set forth in an Officers’ Certificate, elect to have either Section 8.02 or 8.03 hereof be applied to all  outstanding Notes upon compliance with the conditions set forth below in this Article 8.  Section 8.02 Legal Defeasance and Discharge.  Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section  8.02, the Company and each of the Guarantors 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 (including the Note Guarantees) on the date the conditions set forth below are satisfied  (hereinafter, “Legal Defeasance”).  For this purpose, Legal Defeasance means that the Company and the  Guarantors will be deemed to have paid and discharged the entire Indebtedness represented by the  outstanding Notes (including the Note Guarantees), which will thereafter be deemed to be “outstanding”  only for the purposes of Section 8.05 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, the Note Guarantees  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, 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;  

 

  71    (3) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the  Company’s and the Guarantors’ 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 and each of the Guarantors 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, 4.14, 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 and Note Guarantees, the Company and the Guarantors may omit to comply with  and will have no liability in respect of any term, condition or limitation set forth in any such covenant,  whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by  reason of any reference in any such covenant to any other provision herein or in any other document and  such omission to comply will not constitute a Default or an Event of Default under Section 6.01 hereof,  but, except as specified above, the remainder of this Indenture and such Notes and Note Guarantees 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, subject to the satisfaction of the conditions set forth in Section 8.04  hereof, Sections 6.01(3) through 6.01(6) and 6.01(9) through 6.01(11) 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, cash in U.S. dollars, non-callable Government Securities, or a combination  thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized  investment bank, appraisal firm, or firm of independent public accountants, to pay the principal  of, premium, if any, and interest on, the outstanding Notes on the stated date for payment thereof  or on the applicable redemption date, as the case may be, and the 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 to the Trustee confirming that:  (A) the Company has received from, or there has been published by, the  Internal Revenue Service a ruling; or  

 

  72    (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 shall confirm  that, the Holders of the outstanding Notes will not recognize income, gain or loss for  federal income tax purposes as a result of such Legal Defeasance and will be subject to  federal income tax on the same amounts, in the same manner and at the same times as  would have been the case if such Legal Defeasance had not occurred;  (3) in the case of an election under Section 8.03 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 shall have occurred and be continuing on the date  of such deposit (other than a Default or Event of Default resulting from the borrowing of funds to  be applied to such deposit) and the deposit will not result in a breach or violation of, or constitute  a default under, any other instrument to which the Company or any Guarantor is a party or by  which the Company or any Guarantor 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  creditors of the Company or others; and  (7) the Company must deliver to the Trustee an Officers’ Certificate and an Opinion  of Counsel, each stating that all conditions precedent relating to the Legal Defeasance or the  Covenant Defeasance have been complied with.  Section 8.05 Deposited Money and Government 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, 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  

 

  73    hereof or the principal and interest received in respect thereof other than any such tax, fee or other charge  which by law is for the account of the Holders of the outstanding Notes.  Notwithstanding anything in this Article 8 to the contrary, the Trustee will deliver or pay to the  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.  Subject to applicable escheatment laws, 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, if any, or  interest on, any Note and remaining unclaimed for two years after such principal, premium, 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.  Section 8.07 Reinstatement.  If the Trustee or Paying Agent is unable to apply any U.S. 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 and the Guarantors’ obligations under this Indenture and the Notes and  the Note Guarantees will be revived and reinstated as though no deposit had occurred pursuant to Section  8.02 or 8.03 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, 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, and subject to the Intercreditor Agreement, the  Company, the Guarantors and the Trustee may amend or supplement this Indenture, the Collateral  Documents, the Intercreditor Agreement, the Notes or the Note Guarantees 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  (provided that the uncertificated notes are issued in registered form for purposes of Section 163(f)  of the Internal Revenue Code of 1986);  

 

  74    (3) to provide for the assumption of the Company’s or a Guarantor’s obligations to  the Holders of the Notes and Note Guarantees by a successor to the Company or such Guarantor  pursuant to Article 5 or Article 11 hereof;  (4) to make any change that would provide any additional rights or benefits to the  Holders of the Notes or that does not adversely affect the legal rights hereunder of any Holder;  (5) [Reserved];  (6) to conform the text of this Indenture, the Collateral Documents, the Note  Guarantees or the Notes to any provision of the “Description of Notes” section of the Company’s  Offering Memorandum dated January 12, 2021, 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, the Collateral Documents, the Note Guarantees or the Notes;  (7) to provide for the issuance of Additional Notes in accordance with the limitations  set forth in this Indenture as of the date hereof;   (8) to allow any Guarantor to execute a supplemental indenture and/or a Note  Guarantee with respect to the Notes; or  (9) to make, complete or confirm any grant of Collateral permitted or required by  this Indenture or any of the Collateral Documents or any release of Collateral that becomes  effective as set forth in this Indenture or any of the Collateral Documents.  For the avoidance of doubt, no amendment to, or deletion of, any of the covenants contained in  Sections 4.07, 4.08, 4.09, 4.11, 4.12, 4.15, 4.16 4.17, 4.18 or 5.01 hereof shall be deemed to impair or  affect any rights of holders of the notes to receive payment of principal of, or premium, if any, or interest  on, the Notes.  Section 9.02  With Consent of Holders of Notes.  Except as provided below in this Section 9.02, and subject to the Intercreditor Agreement, the  Company and the Trustee may amend or supplement this Indenture (including Section 3.09, 4.10 and 4.14  hereof), the Collateral Documents, the Intercreditor Agreement or the Notes and the Note Guarantees with  the consent of the Holders of at least a majority in aggregate principal amount of the then outstanding  Notes (including Additional Notes, if any) voting as a single class (including consents obtained in  connection with a tender offer or exchange offer for, or purchase of, the Notes), and, subject to Sections  6.04 and 6.07 hereof and subject to the Intercreditor Agreement, any existing Default or Event of Default  (other than a Default or Event of Default in the payment of the principal of, premium, if any, or interest  on, the Notes, except a payment default resulting from an acceleration that has been rescinded) or  compliance with any provision of this Indenture, the Collateral Documents, the Intercreditor Agreement  or the Notes or the Note Guarantees may be waived with the consent of the Holders of a majority in  aggregate principal amount of the then outstanding Notes (including Additional Notes, if any) voting as a  single class (including consents obtained in connection with a tender offer or exchange offer for, or  purchase of, the Notes).  None of this Indenture, the Notes, the Note Guarantees or the Collateral  Documents may be amended, modified or supplemented in any way that would contravene the  Intercreditor Agreement.  Section 2.08 hereof shall determine which Notes are considered to be  “outstanding” for purposes of this Section 9.02.  

 

  75    However, without the consent of each Holder affected or, in the case of clauses (8) and (9) below  only, the consent of Holders of at least 95% in aggregate principal amount of the Notes then outstanding,  an amendment, supplement or waiver under this Section 9.02 may not (with respect to any Notes held by  a non-consenting Holder):  (1) reduce the principal amount of Notes whose Holders must consent to an  amendment, supplement or waiver;  (2) reduce the principal of or change the fixed maturity of any Note or change the  dates or prices or calculations set forth above with respect to Section 3.07 hereof);  (3) reduce the rate of or change the time for payment of interest, including default  interest, on any Note;  (4) waive a Default or Event of Default in the payment of principal of, or premium,  if any, or interest on, the Notes (except a rescission of acceleration of the Notes by the Holders of  at least a majority in aggregate principal amount of the then outstanding Notes and a waiver of  the payment default that resulted from such acceleration);  (5) make any Note payable in money other than that stated in the Notes;  (6) make any change in the provisions of this Indenture relating to waivers of past  Defaults or the rights of Holders of Notes to receive payments of principal of, or interest or  premium, if any, on, the Notes;  (7) waive a redemption payment with respect to any Note (other than a payment  required by Sections 3.09, 4.10 or 4.14 hereof);  (8) release all or substantially all of the Collateral from the Liens securing the Note  Guarantees;  (9) release any Guarantor from any of its obligations under its Note Guarantee or this  Indenture if the assets or properties of that Guarantor constitute all or substantially all of the  Collateral, except in accordance with the terms of this Indenture and the Intercreditor Agreement;  or  (10) make any change in the preceding amendment and waiver provisions.  It is not be necessary for the consent of the Holders of Notes under this Section 9.02 to approve  the particular form of any proposed amendment, supplement or waiver, but it is sufficient if such consent  approves the substance thereof.  After an amendment, supplement or waiver under this Section 9.02 becomes effective, the  Company will deliver (including by electronic means) to the Holders of Notes affected thereby a notice  briefly describing the amendment, supplement or waiver.  Any failure of the Company to deliver 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.    

 

  76    Section 9.03 [Reserved].  Section 9.04 Revocation and Effect of Consents.  Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a  Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note or portion of  a Note that evidences the same debt as the consenting Holder’s Note, even if notation of the consent is not  made on any Note.  However, any such Holder of a Note or subsequent Holder of a Note may revoke the  consent as to its Note if the Trustee receives written notice of revocation before the date the amendment,  supplement or waiver becomes effective.  An amendment, supplement or waiver becomes effective in  accordance with its terms and thereafter binds every Holder.  Section 9.05 Notation on or Exchange of Notes.  The Trustee may place an appropriate notation about an amendment, supplement or waiver on  any Note thereafter authenticated.  The 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.  Upon the request of the Company accompanied by a resolution of its Board of Directors  authorizing the execution of any amended or supplemental indenture authorized or permitted by the terms  of this Indenture, and upon receipt by the Trustee of the documents described in Section 7.02 hereof and,  in the case of any amended or supplemental indenture pursuant to Section 9.02, the filing with the Trustee  of evidence satisfactory to the Trustee of the consent of the Holders of the Notes as set forth therein, the  Trustee will join with the Company and the Guarantors in the execution of such amended or supplemental  indenture and make any further appropriate agreements and stipulations that may be therein contained,  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.  The Company may not sign an amended or supplemental indenture until the Board of Directors of  the Company 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 13.04 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, and that such supplemental indenture is the legal, valid and binding obligation of the  Company, enforceable against it in accordance with its terms.  ARTICLE 10  COLLATERAL AND SECURITY  Section 10.01 Security.  The payment of all amounts due under the Note Guarantees of the Pledgors and the performance  of all Obligations of each of the Pledgors to the Holders will be secured, equally and ratably with any  other Parity Lien Obligations of such Pledgors in respect of the Notes, by Liens on the Collateral of such  

 

  77    Pledgors, subject to Permitted Prior Liens, as provided in the Collateral Documents and the Intercreditor  Agreement.  The payment of all amounts due under the Note Guarantee of VGR Holding and the  performance of all Obligations of VGR Holding to the Holders will be secured, equally and ratably with  any other Parity Lien Obligations of VGR Holding in respect of the Notes, by Liens on the Pledged  Securities as provided in the Collateral Documents. The Collateral Documents shall provide for the grant  by the Pledgors and VGR Holding to the Collateral Agent of security interests in the Collateral securing  their Note Guarantees subject in the case of the Credit Agreement Borrowers to the terms of the  Intercreditor Agreement.  Section 10.02 Equal and Ratable Sharing of Collateral by Holders of Parity Lien Debt.  All Parity Liens granted at any time by the Pledgors or VGR Holding shall secure, equally and  ratably, all present and future Parity Lien Obligations and all proceeds of all Parity Liens granted at any  time by the Pledgors or VGR Holding shall be allocated and distributed equally and ratably on account of  the Parity Lien Debt and other Parity Lien Obligations.   Section 10.03 Release of Liens in Respect of Note Guarantees.  Whether prior to or after the First Priority Debt has been paid in full, assets included in the  Collateral shall be released from the Liens securing the Note Guarantees under any one or more of the  following circumstances:   (a) the sale, lease, sublease, license, sublicense, conveyance or other disposition of products,  services, inventory, or accounts receivable and related assets (including participations therein) in the  ordinary course of business, including leases with respect to facilities that are temporarily not in use or  pending their disposition, and any sale or other disposition of damaged, worn-out or obsolete assets in the  ordinary course of business or any other property that is uneconomic or no longer useful to the conduct of  the business of the Company or the Guarantors, which such transactions are hereby expressly permitted  under this Indenture;   (b) as to any Collateral sold, transferred or otherwise disposed of by a Guarantor to a Person  that is not (either before or after such sale, transfer or disposition) the Company or a Guarantor in a  transaction or other circumstance that complies with the provisions of Section 4.10 hereof and is  permitted by the Noteholder Documents, and, if the First Priority Debt has not been paid in full, the ABL  Documents; provided that such Liens will not be released if such sale or disposition is subject to the  provisions of Section 5.01 hereof;  (c) if any Guarantor is released from its Note Guarantee, that Guarantor’s assets will also be  released from the Liens securing the Note Guarantee;  (d) in whole or in part, with the consent of the Holders of the requisite percentage of Notes in  accordance with Article 9;  (e) if required in connection with certain foreclosure actions, or the exercise of other  remedies in respect of Collateral, by the ABL Agent in respect of First Priority Debt in accordance with  the terms of the Intercreditor Agreement;  (f) upon a Legal Defeasance or Covenant Defeasance of the Notes as set forth under  Article 8;   (g) upon satisfaction and discharge of this Indenture as set forth under Article 12; or  

 

  78    (h)  upon payment in full and discharge of all Notes outstanding under this Indenture and all  Obligations that are outstanding, due and payable under this Indenture at the time the Notes are paid in  full and discharged.  Section 10.04 Relative Rights.  Nothing in the Noteholder Documents or the Intercreditor Agreement shall:   (a) impair, as between the Company and the Holders, the obligation of the Company, which  is absolute and unconditional, to pay principal of, interest and premium, if any, on the Notes in  accordance with their terms or any other obligation of the Company or any Guarantor;   (b)  affect the relative rights of Holders as against any other creditors of the Company or any  Guarantor (other than holders of First Priority Liens, Permitted Prior Liens or other Parity Liens);   (c) restrict the right of any Holder to sue for payments that are then due and owing (but not  enforce any judgment in respect thereof against any Collateral to the extent specifically prohibited under  the Intercreditor Agreement);  (d) restrict or prevent any Holder or the Collateral Agent from exercising any of its rights or  remedies upon a Default or Event of Default not specifically restricted or prohibited by the Intercreditor  Agreement; or   (e) restrict or prevent any Holder or the Collateral Agent from taking any lawful action in an  insolvency or liquidation proceeding not specifically restricted or prohibited by the Intercreditor  Agreement.    Section 10.05 Further Assurances.  The Company and each of the Guarantors providing security for their Note Guarantees will do or  cause to be done all acts and things that may be reasonably required, or that the Collateral Agent from  time to time may reasonably request, to assure and confirm that the Collateral Agent holds, for the benefit  of the holders of Parity Lien Obligations in respect of the Notes, duly created and enforceable and  perfected Parity Liens upon the Collateral (including any categories of property or assets that are included  as Collateral under the Collateral Documents or otherwise become Collateral after the Notes are issued),  in each case, as contemplated by, and with the Lien priority required under, the Intercreditor Agreement  and the Collateral Documents, including the filing of UCC financing and continuation statements and  amendments thereto, and any other filings or recordings necessary or required by the Collateral  Documents to maintain such Liens.  The Collateral Agent hereby authorizes the Company and each of the  Guarantors to file and record any UCC financing and continuation statements and amendments thereto,  and any other filings or recordings necessary or required by the Collateral Documents to maintain such  Liens that are reasonably required in connection with the foregoing.  Upon the reasonable request of the Collateral Agent or the Trustee at any time and from time to  time, the Company and each of the applicable Guarantors will promptly execute, acknowledge and deliver  such security documents, instruments, certificates, notices and other documents, and take such other  actions as shall be reasonably required, or that the Collateral Agent may reasonably request, to create,  perfect, protect, assure or enforce the Liens and benefits intended to be conferred, in each case as  contemplated by the Collateral Documents for the benefit of the holders of Parity Lien Obligations in  respect of the Notes, including any real property acquired by Pledgors in the future that has a Fair Market  Value in excess of $12.5 million.  

 

  79    The Company and the applicable Guarantors will:  (1) keep their properties adequately insured at all times by financially sound and  reputable insurers;  (2) maintain such other insurance, to such extent and against such risks (and with  such deductibles, retentions and exclusions), including fire and other risks insured against by  extended coverage and coverage for acts of terrorism, as is customary with companies in the same  or similar businesses operating in the same or similar locations, including public liability  insurance against claims for personal injury or death or property damage occurring upon, in,  about or in connection with the use of any properties owned, occupied or controlled by them;  (3) maintain such other insurance as may be required by law;  (4) maintain title insurance on all real property Collateral insuring the Collateral  Agent’s Parity Lien on that property, subject only to Permitted Prior Liens and other exceptions  to title approved by the Collateral Agent; and  (5) maintain such other insurance as may be required by the Collateral Documents.  Upon the request of the Collateral Agent, the Company and the Guarantors will furnish to the  Collateral Agent full information as to their property and liability insurance carriers.  Holders of Parity  Lien Obligations in respect of the Notes, as a class, will be named as additional insureds, with a waiver of  subrogation, on all insurance policies of the applicable Guarantors and the Collateral Agent will be named  as loss payee, with 30 days’ notice of cancellation or material change, on all property and casualty  insurance policies of the applicable Guarantors.   Subject to Section 7.01, neither the Trustee nor the Collateral Agent nor any of their respective  officers, directors, employees, attorneys or agents will be responsible or liable for the existence,  genuineness, value or protection of any Collateral, for the legality, enforceability, effectiveness or  sufficiency of the Collateral Documents,  for the obtaining or maintaining insurance on any Collateral, for  the creation, perfection, priority, sufficiency or protection of any Lien, or any defect or deficiency as to  any such matters.  Section 10.06 Collateral Agent.  (a) The Company has appointed U.S. Bank National Association to serve as Collateral Agent  under the Intercreditor Agreement and the Collateral Documents, for the benefit of the Holders of the  Notes.  (b) The Collateral Agent is authorized and empowered to appoint one or more co-collateral  agents as it deems necessary or appropriate.  (c) The Collateral Agent (directly or through co-trustees, agents or sub-agents) will hold, and  will be entitled to enforce, all Liens on the Collateral.  (d) The Collateral Agent will be subject to such directions as may be given it by the Trustee  from time to time as required or permitted by this Indenture.  Except as directed by the Trustee and as  required or permitted by this Indenture, the Intercreditor Agreement or as directed by the Holders with the  requisite consent of such Holders, the Collateral Agent will not be obligated to:  

 

  80    (1) act upon directions purported to be delivered to it by any other Person;  (2) foreclose upon or otherwise enforce any Lien; or  (3) take any other action whatsoever with regard to any or all of the Collateral  Documents, the Liens created thereby or the Collateral.  The Company shall do or cause to be done all such acts and things as may be necessary or proper,  or as may be required by the provisions of the Intercreditor Agreement and the Noteholder Documents, to  assure and confirm to the Trustee and the Collateral Agent the security interest in the Collateral  contemplated hereby, by the Intercreditor Agreement, the Noteholder Documents or any part thereof, as  from time to time constituted, so as to render the same available for the security and benefit of this  Indenture and of the Guarantees secured thereby, according to the intent and purposes herein and therein  expressed.  (e) The Collateral Agent will be accountable only for amounts that it actually receives as a  result of the enforcement of Liens created by the Collateral Documents.  (f) In acting as Collateral Agent, the Collateral Agent may rely upon and enforce each and  all of the rights, powers, protections, immunities, indemnities and benefits of the Trustee under Article 7  mutatis mutandis, and, in connection therewith, references to the Trustee shall be deemed to include the  Collateral Agent and references to this Indenture shall be deemed to include the Collateral Documents  and references to negligence with respect to the Trustee will be deemed to be gross negligence with  respect to the Collateral Agent.  (g) Each successor Trustee will become the successor Collateral Agent as and when the  successor Trustee becomes the Trustee.  Section 10.07 Authorization of Actions to Be Taken.    (a) Each Holder of Notes, by its acceptance thereof, consents and agrees to the terms of each  Collateral Document and the Intercreditor Agreement, as originally in effect and as amended,  supplemented or replaced from time to time in accordance with its terms or the terms of this Indenture,  authorizes and directs the Trustee and the Collateral Agent to enter into the Collateral Documents,  authorizes and empowers the Trustee and the Collateral Agent to execute and deliver the Intercreditor  Agreement, and authorizes and empowers each of the Trustee and the Collateral Agent to bind the  Holders of Notes as set forth in the Collateral Documents and the Intercreditor Agreement and to perform  its obligations and exercise its rights and powers thereunder.  (b) The Collateral Agent and the Trustee are authorized and empowered to receive for the  benefit of the Holders any funds collected or distributed under the Collateral Documents or the  Intercreditor Agreement and to make further distributions of such funds to the Holders according to the  provisions of this Indenture.  (c) Subject to the provisions of Sections 7.01, 7.02 and 10.03 and the terms of the  Intercreditor Agreement, the Trustee may, upon an Event of Default, in its sole discretion and without the  consent of the Holders of Notes, direct, on behalf of the Holders, the Collateral Agent to take all actions it  deems necessary or appropriate in order to:  (1) foreclose upon or otherwise enforce any or all of the Liens on the Collateral;  

 

  81    (2) enforce any of the terms of the Collateral Documents or Intercreditor Agreement;  or  (3) collect and receive payment of any and all Obligations of the Pledgors and VGR  Holding.  The Trustee will have power to (and to instruct the Collateral Agent to) institute and maintain  such suits and proceedings as it may deem expedient to prevent any impairment of the Collateral by any  acts that may be unlawful or in violation of the Collateral Documents, the Intercreditor Agreement or this  Indenture, and such suits and proceedings as the Trustee may deem expedient to preserve or protect its  interests and the interests of the Holders in the Collateral (including power to (and to instruct the  Collateral Agent to) institute and maintain suits or proceedings to restrain the enforcement of or  compliance with any legislative or other governmental enactment, rule or order that may be  unconstitutional or otherwise invalid if the enforcement of, or compliance with, such enactment, rule or  order would impair the security interest hereunder or be prejudicial to the interests of the Holders, the  Trustee or the Collateral Agent).  Section 10.08 Perfection Opinions.  The Company will furnish to the Collateral Agent and the Trustee no later than the fifth  anniversary of the date hereof and on or prior to each fifth anniversary thereafter, an Opinion of Counsel,  dated as of such date: (1) (A) stating that, in the opinion of such counsel, action has been taken with  respect to the recording, registering, filing, re-recording, re-registering and re-filing of this Indenture,  financing statements or continuation statements as is necessary to maintain the Liens of the Collateral  Documents and reciting with respect to the security interests in the Collateral the details of such action or  referring to prior Opinions of Counsel in which such details are given, and (B) stating that, in the opinion  of such counsel, based on relevant laws as in effect on the date of such Opinion of Counsel, all financing  statements and continuation statements have been executed and filed that are necessary as of such date  and during the succeeding 12 months to maintain the Liens of the Collateral Documents and reciting the  details of such actions; or (2) stating that, in the opinion of such counsel, no such action is necessary to  maintain such Liens.  Section 10.09 Certificates of the Company.  The Company will furnish to the Trustee and the Collateral Agent, prior to each proposed release  of Collateral pursuant to the Collateral Documents (other than with respect to Collateral released pursuant  to Section 10.03(a) of this Indenture):  (1) an Officers’ Certificate identifying the Collateral to be released, the applicable  provisions of this Indenture and the Collateral Documents that authorize such release and stating  that the conditions precedent to such release have been satisfied; and  (2) an Opinion of Counsel stating that the conditions precedent to such release have  been satisfied.  Upon receipt of such Officers’ Certificate and Opinion of Counsel and any necessary or proper  instruments of termination, satisfaction or release, the Trustee shall, or shall cause the Collateral Agent, to  promptly execute, deliver or acknowledge (at the Company’s expense and without recourse,  representation or warranty) such instruments or releases to evidence the release of any Collateral  permitted to be released pursuant to this Indenture or the Collateral Documents.  Neither the Trustee nor  the Collateral Agent shall be liable for any such release undertaken in good faith in reliance upon any  

 

  82    such Officers’ Certificate or Opinion of Counsel.  For the avoidance of doubt, the release of Liens on the  Collateral pursuant to Section 10.03(a) shall be automatic.  All purchasers and grantees of any property or  rights purporting to be released herefrom shall be entitled to rely upon any release executed by the  Collateral Agent hereunder as sufficient for the purpose of this Indenture and as constituting a good and  valid release of the property therein described from the Lien of this Indenture or the Noteholder  Documents.  No purchaser or grantee of any property or rights purporting to be released herefrom shall be  bound to ascertain the authority of the Trustee or the Collateral Agent to execute the release or to inquire  as to the existence of any conditions herein prescribed for the exercise of such authority; nor shall any  purchaser or grantee of any property or rights permitted by this Indenture to be sold or otherwise disposed  of by the Company be under any obligation to ascertain or inquire into the authority of the Company to  make such sale or other disposition.  Each Holder, by its acceptance of the Notes, consents to and  authorizes the Collateral Agent to enter into any documentation as contemplated by this Section 10.09.  Section 10.10 [Reserved].  Section 10.11 Environmental Indemnity.  (a) Each of the Company and the Guarantors jointly and severally agrees to defend (subject  to Indemnitees’ selection of counsel), indemnify, pay and hold harmless the Trustee and each Holder and  each of their respective Affiliates and each and all of the directors, officers, partners, trustees, employees,  attorneys and agents, and (in each case) their respective heirs, representatives, successors and assigns  (each of the foregoing, an “Indemnitee”) from and against any and all Indemnified Liabilities; provided  that no Indemnitee shall be entitled to indemnification hereunder with respect to any Indemnified  Liability to the extent such Indemnified Liability is found by a final and nonappealable decision of a court  of competent jurisdiction to have resulted directly and primarily from the gross negligence or willful  misconduct of such Indemnitee.   (b) All amounts due under Section 10.11(a) hereof shall be payable not later than 10 days  after written demand therefor.   (c) To the extent that the undertakings to defend, indemnify, pay and hold harmless set forth  in Section 10.11(a) hereof may be unenforceable in whole or in part because they are violative of any law  or public policy, each of the Company and Guarantors shall contribute the maximum portion that it is  permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified  Liabilities incurred by Indemnitees or any of them.    (d) Neither the Company nor any Guarantor shall ever assert any claim against any  Indemnitee, on any theory of liability, for any lost profits or special, indirect or consequential damages or  (to the fullest extent lawful) any punitive damages arising out of, in connection with, or as a result of, this  Indenture or any other Noteholder Document or any agreement or instrument or transaction contemplated  hereby or relating in any respect to any Indemnified Liability, and each of the Company and Guarantors  hereby forever waives, releases and agrees not to sue upon any claim for any such lost profits or special,  indirect, consequential or (to the fullest extent lawful) punitive damages, whether or not accrued and  whether or not known or suspected to exist in its favor.   (e) The agreements in this Section 10.11 shall survive repayment of the Notes and all other  amounts payable hereunder and the resignation and removal of the Trustee or Collateral Agent.    

 

  83    ARTICLE 11  NOTE GUARANTEES  Section 11.01 Guarantee.  (a) Subject to this Article 11, each of the Guarantors hereby, jointly and severally,  unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee and to the  Trustee and its successors and assigns, irrespective of the validity and enforceability of this Indenture, the  Notes or the obligations of the Company hereunder or thereunder, that:  (1)  the principal of, premium, if any, and interest on, the Notes will be promptly  paid in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest  on the overdue principal of and interest on the Notes, if any, if lawful, and all other obligations of  the Company to the Holders or the Trustee hereunder or thereunder will be promptly paid in full  or performed, all in accordance with the terms hereof and thereof; and   (2) in case of any extension of time of payment or renewal of any Notes or any of  such other obligations, that same will be promptly paid in full when due or performed in  accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration  or otherwise.  Failing payment when due of any amount so guaranteed or any performance so guaranteed for  whatever reason, the Guarantors will be jointly and severally obligated to pay the same immediately.   Each Guarantor agrees that this is a guarantee of payment and not a guarantee of collection.  (b) The Guarantors hereby agree that their obligations hereunder are unconditional,  irrespective of the validity, regularity or enforceability of the Notes or this Indenture, the absence of any  action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any  provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the  same or any other circumstance which might otherwise constitute a legal or equitable discharge or  defense of a guarantor.  Each Guarantor hereby waives diligence, presentment, demand of payment, filing  of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a  proceeding first against the Company, protest, notice and all demands whatsoever and covenant that this  Note Guarantee will not be discharged except by complete performance of the obligations contained in  the Notes and this Indenture.  (c) If any Holder or the Trustee is required by any court or otherwise to return to the  Company, the Guarantors or any custodian, trustee, liquidator or other similar official acting in relation to  either the Company or the Guarantors, any amount paid by either to the Trustee or such Holder, this Note  Guarantee, to the extent theretofore discharged, will be reinstated in full force and effect.  (d) Each Guarantor agrees that it will not be entitled to any right of subrogation in relation to  the Holders in respect of any obligations guaranteed hereby until payment in full of all obligations  guaranteed hereby.  Each Guarantor further agrees that, as between the Guarantors, on the one hand, and  the Holders and the Trustee, on the other hand, (1) the maturity of the obligations guaranteed hereby may  be accelerated as provided in Article 6 hereof for the purposes of this Note Guarantee, notwithstanding  any stay, injunction or other prohibition preventing such acceleration in respect of the obligations  guaranteed hereby, and (2) in the event of any declaration of acceleration of such obligations as provided  in Article 6 hereof, such obligations (whether or not due and payable) will forthwith become due and  payable by the Guarantors for the purpose of this Note Guarantee.  The Guarantors will have the right to  

 

  84    seek contribution from any non-paying Guarantor so long as the exercise of such right does not impair the  rights of the Holders under the Note Guarantee.  Section 11.02 Limitation on Guarantor Liability.  Each Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is the  intention of all such parties that the Note Guarantee of such Guarantor not constitute a fraudulent transfer  or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform  Fraudulent Transfer Act or any similar federal or state law to the extent applicable to any Note Guarantee.   To effectuate the foregoing intention, the Trustee, the Holders and the Guarantors hereby irrevocably  agree that the obligations of such Guarantor will be limited to the maximum amount that will, after giving  effect to such maximum amount and all other contingent and fixed liabilities of such Guarantor that are  relevant under such laws, and after giving effect to any collections from, rights to receive contribution  from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other  Guarantor under this Article 11, result in the obligations of such Guarantor under its Note Guarantee not  constituting a fraudulent transfer or conveyance.  Section 11.03 Execution and Delivery of Note Guarantee.  To evidence its Note Guarantee set forth in Section 11.01 hereof, each Guarantor hereby agrees  that a notation of such Note Guarantee substantially in the form attached as Exhibit E hereto will be  endorsed by an Officer of such Guarantor on each Note authenticated and delivered by the Trustee and  that this Indenture will be executed on behalf of such Guarantor by one of its Officers.  Each Guarantor hereby agrees that its Note Guarantee set forth in Section 11.01 hereof will  remain in full force and effect notwithstanding any failure to endorse on each Note a notation of such  Note Guarantee.  If an Officer whose signature is on this Indenture or on the Note Guarantee no longer holds that  office at the time the Trustee authenticates the Note on which a Note Guarantee is endorsed, the Note  Guarantee will be valid nevertheless.  The delivery of any Note by the Trustee, after the authentication thereof hereunder, will constitute  due delivery of the Note Guarantee set forth in this Indenture on behalf of the Guarantors.  In the event that the Company acquires any Domestic Subsidiary after the date of this Indenture,  if required by Section 4.17 hereof, the Company will cause such Domestic Subsidiary to comply with the  provisions of Section 4.17 hereof and this Article 11, the extent applicable.  Section 11.04 Guarantors May Consolidate, etc., on Certain Terms.  Except as otherwise provided in Section 11.05 hereof, no Guarantor may sell or otherwise dispose  of all or substantially all of its assets to, or consolidate with or merge with or into (whether or not such  Guarantor is the surviving Person) another Person, other than the Company or another Guarantor, unless:  (1) immediately after giving effect to such transaction, no Default or Event of  Default exists; and  (2) either:  

 

  85    (A) subject to Section 11.05 hereof, the Person acquiring the property in any  such sale or disposition or the Person formed by or surviving any such consolidation or  merger unconditionally assumes all the obligations of that Guarantor under this  Indenture, any applicable Collateral Documents and its Note Guarantee on the terms set  forth herein or therein, pursuant to a supplemental indenture and appropriate Collateral  Documents in form and substance reasonably satisfactory to the Trustee; or  (B) the Net Proceeds of such sale or other disposition are applied in  accordance with the applicable provisions of this Indenture, including Section 4.10  hereof.  In case of any such consolidation, merger, sale or conveyance and upon the assumption by the  successor Person, by supplemental indenture, executed and delivered to the Trustee and satisfactory in  form to the Trustee, of the Note Guarantee endorsed upon the Notes and the due and punctual  performance of all of the covenants and conditions of this Indenture to be performed by the Guarantor,  such successor Person will succeed to and be substituted for the Guarantor with the same effect as if it  had been named herein as a Guarantor.  Such successor Person thereupon may cause to be signed any or  all of the Note Guarantees to be endorsed upon all of the Notes issuable hereunder which theretofore shall  not have been signed by the Company and delivered to the Trustee.  All the Note Guarantees so issued  will in all respects have the same legal rank and benefit under this Indenture as the Note Guarantees  theretofore and thereafter issued in accordance with the terms of this Indenture as though all of such Note  Guarantees had been issued at the date of the execution hereof.  Except as set forth in Articles 4 and 5 hereof, and notwithstanding clauses 2(a) and (b) above,  nothing contained in this Indenture or in any of the Notes will prevent any consolidation or merger of a  Guarantor with or into the Company or another Guarantor, or will prevent any sale or conveyance of the  property of a Guarantor as an entirety or substantially as an entirety to the Company or another Guarantor.  Section 11.05 Releases.  (a) In the event of any sale or other disposition of:  (1) all or substantially all of the assets of any Guarantor (including by way of merger  or consolidation) in a manner that does not violate the provisions of Section 4.10 or Section 5.01  hereof; or  (2) all of the Capital Stock of any Guarantor to a Person that is not (either before or  after giving effect to such transaction) the Company or a Guarantor in a manner that does not  violate the provisions of Section 4.10 hereof,   then, in the case of each of the foregoing clauses (1) and (2), such Guarantor will automatically  be released and relieved of any obligations under its Note Guarantee.  Upon delivery by the  Company to the Trustee of an Officers’ Certificate and an Opinion of Counsel to the effect that  such sale or other disposition was made by the Company in accordance with the provisions of  Section 4.10 or 5.01 hereof, as applicable, the Trustee will execute any documents reasonably  required in order to evidence the release of any Guarantor from its obligations under its Note  Guarantee (it being understood that such release will occur automatically, regardless of when or if  the Trustee executes any such documents in order to evidence such release).  (b) In the event of any dissolution or liquidation of any Guarantor in a manner permitted  under this Indenture, such Guarantor will automatically be released and relieved of any obligation under  

 

  86    its Note Guarantee.  Upon delivery by the Company to the Trustee of an Officers’ Certificate and an  Opinion of Counsel to the effect that such dissolution or liquidation was permitted under this Indenture,  the Trustee will execute any documents reasonably required in order to evidence the release of any  Guarantor from its obligations under its Note Guarantee (it being understood that such release will occur  automatically, regardless of when or if the Trustee executes any such documents in order to evidence such  release).  (c) In the case of Zoom, if at any time Zoom ceases to be a guarantor of the Existing  Unsecured Notes (including any renewal, refinancing or replacement thereof), Zoom will automatically  be released and relieved of any obligation under its Note Guarantee; provided that at such time, Zoom  owns no material assets and has no material operations.  Upon delivery by the Company to the Trustee of  an Officers’ Certificate and an Opinion of Counsel to the effect that such release was made in accordance  with this clause (c), the Trustee will execute any documents reasonably required in order to evidence the  release of Zoom from its obligations under its Note Guarantee (it being understood that such release will  occur automatically, regardless of when or if the Trustee executes any such documents in order to  evidence such release).  (d) Upon Legal Defeasance in accordance with Article 8 hereof or satisfaction and discharge  of this Indenture in accordance with Article 12 hereof, each Guarantor will automatically be released and  relieved of any obligations under its Note Guarantee.  Upon delivery by the Company to the Trustee of an  Officers’ Certificate and an Opinion of Counsel to the effect that such Legal Defeasance or satisfaction  and discharge has occurred under this Indenture, the Trustee will execute any documents reasonably  required in order to evidence the release of any Guarantor from its obligations under its Note Guarantee  (it being understood that such release will occur automatically, regardless of when or if the Trustee  executes any such documents in order to evidence such release).  (e) Any Guarantor not released from its obligations under its Note Guarantee as provided in  this Section 11.05 will remain liable for the full amount of principal of and interest and premium, if any,  on the Notes and for the other obligations of any Guarantor under this Indenture as provided in this  Article 11.  ARTICLE 12  SATISFACTION AND DISCHARGE  Section 12.01 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 theretofore been  irrevocably 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 delivery (including by electronic means) of a notice of  redemption or otherwise or will become due and payable within one year and the Company or  any Guarantor has irrevocably deposited or caused to be deposited with the Trustee as trust funds  in trust solely for the benefit of the Holders, cash in U.S. dollars, non-callable Government  

 

  87    Securities, or a combination thereof, in such amounts as will be sufficient, without consideration  of any reinvestment of interest, to pay and discharge the entire Indebtedness on the Notes not  delivered to the Trustee for cancellation for principal, premium, 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 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 or any Guarantor is a party or by  which the Company or any Guarantor is bound;  (3) the Company or any Guarantor 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 on 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 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 12.01, the provisions of Sections  12.02 and 8.06 hereof will survive.  In addition, nothing in this Section 12.01 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 12.02  Application of Trust Money.  Subject to the provisions of Section 8.06 hereof, all money deposited with the Trustee pursuant to  Section 12.01 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 12.01 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 and any Guarantor’s obligations under this Indenture and the Notes shall be  revived and reinstated as though no deposit had occurred pursuant to Section 12.01 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 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.  

 

  88    ARTICLE 13  MISCELLANEOUS  Section 13.01  [Reserved].  Section 13.02 Notices.  Any notice or communication by the Company, any Guarantor or the Trustee to the others is duly  given if in writing and delivered in Person or by first class mail (registered or certified, return receipt  requested), facsimile transmission or overnight air courier guaranteeing next day delivery, to the others’  address:  If to the Company and/or any Guarantor:    Vector Group Ltd.  4400 Biscayne Blvd. 10th Floor  Miami, Florida 33137  Attention:  Marc N. Bell, Esq.  Facsimile No.:  (305) 579-8016  With a copy to:  Sullivan & Cromwell LLP  125 Broad Street  New York, New York 10004  Attention: Inosi Nyatta  Facsimile No.: (212) 558-3588  If to the Trustee:    U.S. Bank National Association,  Global Corporate Trust Services  60 Livingston Avenue  EP-MN-WS3C  St. Paul, MN 55107-2292  Attention:  Joshua A. Hahn  Facsimile No.:  (651) 466-7430  The Company, any Guarantor 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 receipt acknowledged, if transmitted by facsimile;  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 delivered by electronic means or 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.  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.  

 

  89    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.  If the Company delivers (including by electronic means) or mails a notice or communication to  Holders, it will deliver (including by electronic means) or mail a copy to the Trustee and each Agent at  the same time.  Section 13.03 [Reserved].  Section 13.04 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 13.05 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 13.05 hereof) stating that, in the  opinion of such counsel, all such conditions precedent and covenants have been satisfied;  provided, however, that such opinion shall not be required in connection with issuance of the  Initial Notes.  Section 13.05 Statements Required in Certificate or Opinion.  Each certificate or opinion with respect to compliance with a condition or covenant provided for  in this Indenture must include:  (1) a statement that the Person making such certificate or opinion has read such  covenant or condition;  (2) a brief statement as to the nature and scope of the examination or investigation  upon which the statements or opinions contained in such certificate or opinion are based;  (3) a statement that, in the opinion of such Person, he or she has made such  examination or investigation as is necessary to enable him or her to express an informed opinion  as to whether or not such covenant or condition has been satisfied; and  (4) a statement as to whether or not, in the opinion of such Person, such condition or  covenant has been satisfied.  Section 13.06 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 13.07 No Personal Liability of Directors, Officers, Employees and Stockholders.  No past, present or future director, officer, employee, incorporator or stockholder of the Company  or any Guarantor, as such, will have any liability for any obligations of the Company or the Guarantors  

 

  90    under the Notes, this Indenture, the Note Guarantees, the Collateral Documents or for any claim based on,  in respect of, or by reason of, such obligations or their creation.  Each Holder of Notes by accepting a  Note waives and releases all such liability.  The waiver and release are part of the consideration for  issuance of the Notes.  The waiver may not be effective to waive liabilities under the federal securities  laws.  Section 13.08 Governing Law.  THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED  TO CONSTRUE THIS INDENTURE, THE NOTES AND THE NOTE GUARANTEES 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.  Section 13.09 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 13.10 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.  All agreements of each Guarantor in  this Indenture will bind its successors, except as otherwise provided in Section 11.05 hereof.  Section 13.11 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 13.12 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.  Notwithstanding anything to the contrary  in this Indenture, the words “execution,” “executed,” “signed,” “signature,” “delivery” and words of like  import in or relating to this Indenture or any document to be signed in connection with this Indenture  shall be deemed to include electronic signatures (including digital signatures provided by DocuSign (or  such other digital signature provider as agreed by the Company and the Trustee from time to time),  deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect,  validity or enforceability as a manually or facsimile executed signature, physical delivery thereof or the  use of a paper-based recordkeeping system, as the case may be, and the parties hereto consent to conduct  the transactions contemplated hereunder by electronic means.  The exchange of copies of this Indenture  and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery  of this Indenture as to the parties hereto and may be used in lieu of the original Indenture for all purposes.  

 

  91    Section 13.13 Table of Contents, Headings, etc.  The Table of Contents, Cross-Reference Table and Headings of the Articles and Sections of this  Indenture have been inserted for convenience of reference only, are not to be considered a part of this  Indenture and will in no way modify or restrict any of the terms or provisions hereof.  Section 13.14 Waiver of Jury Trial.  EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY  WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND  ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR  RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION  CONTEMPLATED HEREBY.  Section 13.15 Security Advice Waiver.  The Company acknowledges that regulations of the Comptroller of the Currency might  grant the Company the right to receive brokerage confirmations of the security transactions as  they occur.  The Company specifically waives such notification to the extent permitted by law  and will receive periodic cash transaction statements that will detail all investment transactions,  if any.  Section 13.16 USA Patriot Act.  The parties hereto acknowledge that in accordance with the U.S.A. Patriot Act, the  Trustee, like all financial institutions and in order to help fight the funding of terrorism and  money laundering, is required to obtain, verify, and record information that identifies each  person or legal entity that establishes a relationship or opens an account with the Trustee. The  parties hereto agree that they will provide the Trustee with such information as it may request in  order for the Trustee to satisfy the requirements of the U.S.A. Patriot Act.    [Signatures on following page]  

 

  (Signature page to Indenture)  IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written  above.  Very truly yours,  The Company:    VECTOR GROUP LTD.      By: /s/ James B. Kirkland III  Name: James B. Kirkland III   Title:  Senior Vice President, Chief   Financial Officer, Treasurer and Assistant   Secretary    Guarantors:    VGR HOLDING LLC      By: /s/ James B. Kirkland III  Name: James B. Kirkland III  Title: Senior Vice President, Treasurer and Chief    Financial Officer      LIGGETT GROUP LLC      By: /s/ Nicholas P. Anson  Name: Nicholas P. Anson  Title: President and Chief Operating Officer      LIGGETT VECTOR BRANDS LLC      By: /s/ Nicholas P. Anson  Name: Nicholas P. Anson  Title:  President and Chief Operating Officer      VECTOR TOBACCO INC.      By: /s/ Marc N. Bell  Name:  Marc N. Bell  Title: Senior Vice President, General Counsel   and Secretary    

 

  (Signature page to Indenture)  LIGGETT & MYERS HOLDINGS INC.      By: /s/ James B. Kirkland III  Name:  James B. Kirkland III  Title:  Senior Vice President and Treasurer       100 MAPLE LLC      By: /s/ Victoria Spier Evans  Name:  Victoria Spier Evans  Title:  Secretary       VGR AVIATION LLC      By: /s/ Robert O. Plunket  Name:  Robert O. Plunket  Title: President      EVE HOLDINGS LLC      By: /s/ Nicholas P. Anson  Name:  Nicholas P. Anson  Title: President and Chief Operating Officer      ZOOM E-CIGS LLC      By: /s/ Nicholas P. Anson  Name:  Nicholas P. Anson  Title:    President  

 

  (Signature page to Indenture)  Trustee:  U.S. BANK NATIONAL ASSOCIATION  By: /s/ Joshua A. Hahn  Name: Joshua A. Hahn  Title: Vice President    

 

EXHIBIT A     A-1    [Face of Note]    CUSIP/CINS ____________  5.75% Senior Secured Notes due 2029  No. ___ $____________  VECTOR GROUP LTD.  promises to pay to [              ] or registered assigns,   the principal sum of __________________________________________________________ DOLLARS  on (x) if the Springing Maturity Condition does not apply, February 1, 2029, or (y) if the Springing  Maturity Condition does apply, the Springing Maturity Date.  Interest Payment Dates:  February 1 and August 1  Record Dates:  January 15 and July 15  Dated:  _______________, 20__  VECTOR GROUP LTD.      By:     Name:     Title:   This is one of the Notes referred to  in the within-mentioned Indenture:    U.S. BANK NATIONAL ASSOCIATION,    as Trustee      By:      Name:  Title:    

 

  A-2      [Back of Note]  5.75% Senior Secured Notes due 2029  [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.  Vector Group Ltd., a Delaware corporation (the “Company”),  promises to pay interest on the principal amount of this Note at 5.75% per annum from  ________________, 20__  until maturity on (x) if the Springing Maturity Condition does not  apply, February 1, 2029, or (y) if the Springing Maturity Condition does apply, the Springing  Maturity Date.  The Company will pay interest, if any, 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”).  Interest on the Notes will accrue from the  most recent date to which interest has been paid or, if no interest has been paid, from the date of  issuance; provided that 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 _____________, 20__.  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 to the extent lawful; it will pay  interest (including post-petition interest in any proceeding under any Bankruptcy Law) on  overdue installments of interest (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) to the Persons who are registered Holders of Notes at the close of business on  the February 1 or August 1 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, 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 may be made by check mailed to the Holders at their addresses set forth in the  register of Holders; provided that payment by wire transfer of immediately available funds will be  required with respect to principal of and interest, premium, 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, U.S. Bank National Association, 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 AND COLLATERAL.   

 

  A-3    (a) The Company issued the Notes under an Indenture dated as of January 28,  2021 (the “Indenture”) among the Company, the Guarantors and the Trustee.  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 Indenture does  not limit the aggregate principal amount of Notes that may be issued thereunder.    (b) The payment of all amounts due under the Note Guarantees of the Pledgors  and the performance of all Obligations of each of the Pledgors to the Holders will be secured,  equally and ratably with any other Parity Lien Obligations of such Pledgors in respect of the  Notes, by Liens on the Collateral of such Pledgors as provided in the Collateral Documents and  the Intercreditor Agreement.  The payment of all amounts due under the Note Guarantee of VGR  Holding and the performance of all Obligations of VGR Holding to the Holders will be secured,  equally and ratably with any other Parity Lien Obligations of VGR Holding in respect of the  Notes, by Liens on the Pledged Securities as provided in the Collateral Documents. The  Collateral Documents shall provide for the grant by the Pledgors and VGR Holding to the  Collateral Agent of security interests in the Collateral securing their Note Guarantees subject,  where applicable, to the terms of the Intercreditor Agreement.   (5) OPTIONAL REDEMPTION.  (a)  At any time prior to February 1, 2024, the Company may on any one or  more occasions redeem up to 40% of the aggregate principal amount of Notes issued under the  Indenture at a redemption price of 105.75% of the principal amount thereof, plus accrued and  unpaid interest, if any, to the redemption date, with the net cash proceeds of a sale of common  Equity Interests (other than Disqualified Stock) of the Company; provided, however,  that:   (i) at least 60% of the aggregate principal amount of 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   (ii) the redemption occurs within 90 days of the date of the closing  of such sale of Equity Interests.  (b)  At any time prior to February 1, 2024, the Company may also redeem all or  a part of the Notes, upon not less than 10 nor more than 60 days’ prior notice, at a redemption  price equal to 100% of the principal amount of Notes to be redeemed plus the Applicable  Premium as of, and accrued and unpaid interest, if any, to the applicable date of redemption,  subject to the rights of Holders on the relevant record date to receive interest due on the relevant  Interest Payment Date.  (c)  Except pursuant to paragraphs (a) and (b) above and paragraph (e) below,  the Notes will not be redeemable at the Company’s option prior to February 1, 2024.  

 

  A-4    (d)  On or after February 1, 2024, 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) set forth below plus accrued and unpaid interest, if any, on the  Notes redeemed to the applicable redemption date, if redeemed during the twelve-month period  beginning on February 1 of the years indicated below, subject to the rights of Holders on the  relevant record date to receive interest on the relevant Interest Payment Date:  Year Percentage  2024 ...............................................................................................................  102.875%  2025 ...............................................................................................................  101.438%  2026 and thereafter ........................................................................................  100.000%    Unless the Company defaults in the payment of the redemption price, interest will cease  to accrue on the Notes or portions thereof called for redemption on the applicable redemption  date.  (e) In the event that Holders of not less than 90% of the aggregate principal  amount of the outstanding Notes validly tender and do not withdraw such notes in a Change of  Control Offer, Asset Sale Offer or other tender offer and the Company (or a third party making  the offer) purchases all of the Notes validly tendered and not withdrawn by such Holders, all of  the Holders of the Notes that remain outstanding will be deemed to have consented to a  redemption of the Notes on the terms set forth in this paragraph, and accordingly, the Company or  third party offeror, as applicable, will have the right, upon not less than 10 nor more than 60 days’  prior notice to the Holders and the Trustee, given not more than 30 days following the purchase  pursuant to such offer described above, to redeem (in the case of the Company) or purchase (in  the case of a third party offeror) all of the Notes that remain outstanding following such purchase  at a redemption price or purchase price, as the case may be, equal to the price paid to each other  Holder in such offer (which may be less than par) plus, to the extent not included in such price,  accrued and unpaid interest on the Notes that remain outstanding, to but excluding the date of  redemption (subject to the right of Holders of record on the relevant record date to receive interest  due on an Interest Payment Date that is on or prior to the redemption date).  (6) MANDATORY REDEMPTION.  The Company is not be required to make mandatory  redemption or sinking fund payments with respect to the Notes.   (7) REPURCHASE AT THE OPTION OF HOLDER.  (a) Upon the occurrence of a Change of Control, each Holder of Notes will have  the right to require the Company to make an offer (a “Change of Control Offer”) to repurchase all  or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s  Notes at a purchase price in cash equal to 101% of the aggregate principal amount of Notes  repurchased plus accrued and unpaid interest, if any, on the Notes repurchased to the date of  purchase, subject to the rights of Holders on the relevant record date to receive interest due on the  relevant Interest Payment Date (the “Change of Control Payment”). Within 30 days following  any Change of Control, the Company will deliver (including by electronic means) a notice to each  Holder, with a copy to the Trustee, describing the transaction or transactions that constitute the  Change of Control as required by the Indenture.  (b) If the Company or a Guarantor 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  

 

  A-5    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 and 4.10 of the Indenture to purchase the maximum principal  amount of Notes (including any Additional 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 percentages corresponding to the applicable optional redemption price in effect on the  repurchase date, and for periods prior to February 1, 2024, the first optional redemption price of  the principal amount plus accrued and unpaid interest, if any, to the date of purchase, and 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 Guarantor) may use such deficiency for any purpose not otherwise prohibited  by the Indenture.  If the aggregate principal amount of Notes and 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.   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 delivered (including by  electronic means) 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 delivered (including by electronic means) 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 $2,000 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.    (9) DENOMINATIONS, TRANSFER, EXCHANGE.  The Notes are in registered form  without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof.   The transfer of Notes may be registered and Notes may be exchanged as provided in the  Indenture.  The Registrar and the Trustee may require a Holder, among other things, to furnish  appropriate endorsements and transfer documents and the 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 the Intercreditor Agreement,  the Indenture, the Notes, the Note Guarantees or the Collateral Documents may be amended or  supplemented as provided in the Indenture and the Collateral Documents, as applicable.  (12) DEFAULTS AND REMEDIES.  Events of Default and remedies in respect thereof are  as provided in the Indenture.  (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  

 

  A-6    Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the  Trustee.  (14) NO RECOURSE AGAINST OTHERS.  No past, present or future director, officer,  employee, incorporator or stockholder of the Company or any of the Guarantors, as such, will not  have any liability for any obligations of the Company or the Guarantors under the Notes, the Note  Guarantees, the Collateral Documents 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) 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.  (18) GOVERNING LAW.  THE INTERNAL LAW OF THE STATE OF NEW YORK  WILL GOVERN AND BE USED TO CONSTRUE THE INDENTURE, THIS NOTE AND THE  NOTE GUARANTEES 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.  The Company will furnish to any Holder upon written request and without charge a copy of the  Indenture.  Requests may be made to:  Vector Group Ltd.  4400 Biscayne Blvd. 10th Floor  Miami, Florida 33137  Attention:  Marc N. Bell, Esq.    

 

  A-7    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).  

 

  A-8    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 4.14  of the Indenture, check the appropriate box below:  ¬Section 4.10  ¬Section 4.14  If you want to elect to have only part of the Note purchased by the Company pursuant to Section  4.10 or Section 4.14 of the Indenture, state the amount you elect to have purchased:  $_______________    Date:  _______________  Your Signature:     (Sign exactly as your name appears on the face of this Note)  Tax Identification No.:       Signature Guarantee*:  _________________________    * Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor  acceptable to the Trustee).    

 

  A-9    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:    Date of Exchange  Amount of decrease in  Principal Amount   of   this Global Note  Amount of increase in  Principal Amount   of   this Global Note  Principal Amount   of this Global Note  following such  decrease   (or increase)  Signature of authorized  officer of Trustee or  Custodian                                                                              * This schedule should be included only if the Note is issued in global form.   

 

EXHIBIT B     B-1    FORM OF CERTIFICATE OF TRANSFER  [Company address block]  [Registrar address block]  Re:  5.75 Senior Secured Notes due 2029  Reference is hereby made to the Indenture, dated as of January 28, 2021 (the “Indenture”), among  Vector Group Ltd., as issuer (the “Company”), the Guarantors party thereto and U.S. Bank National  Association, as trustee.  Capitalized terms used but not defined herein shall have the meanings given to  them in the Indenture.  ___________________, (the “Transferor”) owns and proposes to transfer the Note[s] or interest  in such Note[s] specified in Annex A hereto, in the principal amount of $___________ in such Note[s] or  interests (the “Transfer”), to  ___________________________ (the “Transferee”), as further specified in  Annex A hereto.  In connection with the Transfer, the Transferor hereby certifies that:  [CHECK ALL THAT APPLY]  1.     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  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 an Initial Purchaser). Upon consummation of the proposed transfer in accordance  with the terms of the Indenture, the transferred beneficial interest or Definitive Note will be subject to the  

 

  B-2  restrictions on Transfer enumerated in the Private Placement Legend printed on the Regulation S Global  Note and/or the Restricted Definitive Note and in the Indenture and the Securities Act.  3.     Check and complete if Transferee will take delivery of a beneficial interest in the IAI  Global Note or a Restricted Definitive Note pursuant to any provision of the Securities Act other  than Rule 144A or Regulation S.  The Transfer is being effected in compliance with the transfer  restrictions applicable to beneficial interests in Restricted Global Notes and Restricted Definitive Notes  and pursuant to and in accordance with the Securities Act and any applicable blue sky securities laws of  any state of the United States, and accordingly the Transferor hereby further certifies that (check one):  (a)    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 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  

 

  B-3  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.  (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-4  ANNEX A TO CERTIFICATE OF TRANSFER  1. The Transferor owns and proposes to transfer the following:  [CHECK ONE OF (a) OR (b)]  (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  (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.  

 

  EXHIBIT C   C-1    FORM OF CERTIFICATE OF EXCHANGE  [Company address block]  [Registrar address block]  Re:  5.75% Senior Secured Notes due 2029  (CUSIP ____________)  Reference is hereby made to the Indenture, dated as of January 28, 2021 (the “Indenture”), among  Vector Group Ltd. as issuer (the “Company”), the Guarantors party thereto and U.S. Bank National  Association as trustee.  Capitalized terms used but not defined herein shall have the meanings given to  them in the Indenture.  __________________________, (the “Owner”) owns and proposes to exchange the Note[s] or  interest in such Note[s] specified herein, in the principal amount of $____________ in such Note[s] or  interests (the “Exchange”).  In connection with the Exchange, the Owner hereby certifies that:  1. 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, 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  

 

    C-2    (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, 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, 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, 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:  ______________________  

 

  EXHIBIT D   D-1  FORM OF CERTIFICATE FROM  ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR  [Company address block]  [Registrar address block]  Re:  5.75% Senior Secured Notes due 2029  Reference is hereby made to the Indenture, dated as of January 28, 2021 (the “Indenture”), among  Vector Group Ltd. as issuer (the “Company”), the Guarantors party thereto and U.S. Bank National  Association as trustee.  Capitalized terms used but not defined herein shall have the meanings given to  them in the Indenture.    In connection with our proposed purchase of $____________ aggregate principal amount of:  (a)   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 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.  

 

    D-2  4. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7)  of Regulation D under the Securities Act) and have such knowledge and experience in financial and  business matters as to be capable of evaluating the merits and risks of our investment in the Notes, and we  and any accounts for which we are acting are each able to bear the economic risk of our or its investment.  5. We are acquiring the Notes or beneficial interest therein purchased by us for our own  account or for one or more accounts (each of which is an institutional “accredited investor”) as to each of  which we exercise sole investment discretion.  You and the 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:  _______________________  

 

  EXHIBIT E  E-1    [FORM OF NOTATION OF GUARANTEE]  For value received, each Guarantor (which term includes any successor Person under the  Indenture) has, jointly and severally, unconditionally guaranteed, to the extent set forth in the Indenture  and subject to the provisions in the Indenture dated as of January 28, 2021 (the “Indenture”) among  Vector Group Ltd. (the “Company”), the Guarantors party thereto and U.S. Bank National Association as  trustee (the “Trustee”), (a) the due and punctual payment of the principal of, premium, if any, and interest  on, the Notes, whether at maturity, by acceleration, redemption or otherwise, the due and punctual  payment of interest on overdue principal of and interest on the Notes, if any, if lawful, and the due and  punctual performance of all other obligations of the Company to the Holders or the Trustee all in  accordance with the terms of the Indenture and (b) in case of any extension of time of payment or renewal  of any Notes or any of such other obligations, that the same will be promptly paid in full when due or  performed in accordance with the terms of the extension or renewal, whether at stated maturity, by  acceleration or otherwise.  The obligations of the Guarantors to the Holders of Notes and to the Trustee  pursuant to the Note Guarantee and the Indenture are expressly set forth in Article 11 of the Indenture and  reference is hereby made to the Indenture for the precise terms of the Note Guarantee.  Capitalized terms  used but not defined herein have the meanings given to them in the Indenture.  [NAME OF GUARANTOR(S)]       By:     Name:   Title:  

 

  EXHIBIT F     F-1    [FORM OF SUPPLEMENTAL INDENTURE  TO BE DELIVERED BY SUBSEQUENT GUARANTORS]  SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of ________________,  20__, among __________________ (the “Guaranteeing Subsidiary”), a subsidiary of Vector Group Ltd.  (or its permitted successor), a Delaware corporation (the “Company”), the Company, the other Guarantors  (as defined in the Indenture referred to herein) and ____________________, as trustee under the  Indenture referred to below (the “Trustee”).  W I T N E S E T H  WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the  “Indenture”), dated as of January 28, 2021 providing for the issuance of 5.75% Senior Secured Notes due  2029 (the “Notes”);  WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary  shall execute and deliver to the Trustee a supplemental indenture pursuant to which the Guaranteeing  Subsidiary shall unconditionally guarantee all of the Company’s Obligations under the Notes and the  Indenture on the terms and conditions set forth herein (the “Note Guarantee”); and  WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and  deliver this Supplemental Indenture.  NOW, THEREFORE, in consideration of the foregoing and for other good and valuable  consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary and the Trustee  mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:  1. CAPITALIZED TERMS.  Capitalized terms used herein without definition shall have the  meanings assigned to them in the Indenture.  2. AGREEMENT TO GUARANTEE.  The Guaranteeing Subsidiary hereby agrees to provide an  unconditional Guarantee on the terms and subject to the conditions set forth in the Note Guarantee and in  the Indenture including Article 11 thereof.  4. NO RECOURSE AGAINST OTHERS.  No past, present or future director, officer, employee,  incorporator, stockholder or agent of the Guaranteeing Subsidiary, as such, shall have any liability for any  obligations of the Company or any Guaranteeing Subsidiary under the Notes, any Note Guarantees, the  Collateral Documents, the Indenture or this Supplemental Indenture or for any claim based on, in respect  of, or by reason of, such obligations or their creation.  Each Holder of the 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.  Such waiver may not be effective to waive liabilities under the federal securities laws and it is  the view of the SEC that such a waiver is against public policy.  5. NEW YORK LAW TO GOVERN.  THE INTERNAL LAW OF THE STATE OF NEW  YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE  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.  6. COUNTERPARTS.  The parties may sign any number of copies of this Supplemental  Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.  

 

      F-2    7. EFFECT OF HEADINGS.  The Section headings herein are for convenience only and shall  not affect the construction hereof.  8. THE TRUSTEE.  The Trustee shall not be responsible in any manner whatsoever for or in  respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals  contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary and the Company.  

 

      F-3    IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly  executed and attested, all as of the date first above written.  Dated:  _______________, 20___  [GUARANTEEING SUBSIDIARY]    By:  _______________________________   Name:   Title:  VECTOR GROUP LTD.  By:  _______________________________   Name:   Title:  [EXISTING GUARANTORS]  By:  _______________________________   Name:   Title:  [TRUSTEE],    as Trustee  By:  _______________________________   Authorized Signatory

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